Small Business Owners - Should I rent an office?

I run a small architectural practice out of my basement. For three years, it's worked well enough.

I recently found a business who have a whole floor of an office building, and they rent one room office spaces at a fairly low rate.

Common photocopy, fax, coffee, boardroom.

The office is a fourth floor office, the same size as my home office occupies now, but with wall to wall, floor to ceiling winodws.

I really need to see the sky.

I could suffer the cost, if I didn't recoup it in jobs, and it wouldn't break me.

What costs am I missing?
-lost time moving and setting back up.
-additional insurance
-moving to a full time unlimited cell phone plan
-new furniture if needed (might get away without) space comes furnished with two traditional desks and two chairs. I have my own good chairs I'd use.

I gain the use of a board room and the freedom to meet clients and consultants at my office instead of a coffee shop, or amongst my kids' lego.
I get to see the sky, and other human beings who aren't my family.

Downside might be sitting at an office building at 10pm, often. At least when I'm working late, now, I can go up and bug my wife, or take 20 minutes to harass the kids.

I get to see the sky, and other human beings who aren't my family.

I think the most important question here is: What does your wife think? Otherwise the first question from her will be: Who is DaSky? And what does she have that I don't?!

Personally? And I say this as an office-slave with temp 'work' spaces in four different buildings. Go for the space, but make sure you can work in both spaces. Keep regular office hours and enforce them. Strictly. Any overtime gets done at home come hell or high water. Figure that out. Plan your work day accordingly. Don't skimp on family breaks when you're working in the basement, and (if your children are well behaved) let them build lego towers next to your awesome windows from time to time.

I'm impressed you managed to have clients tolerant enough to meet with you in the situations you describe. I can't imagine a lot of our clients putting up with that, and we're not even into high end work. Do the office with home time for overtime like Rezzy suggests.

I am going over something similar. I am working to get a small law practice set up.

The clinic I am volunteering at presently has a conversion van and a Winnebago that were converted into offices. We take these out to shelters and events.

I am thinking of doing something similar, at least initially. I am inspired by that, and the new wave of mobile restaurants. With power, I can get set up with a printer, a scanner, and a copier-all in one. I can have a laptop or other computer. Even without remodeling, there will be a table to work at, with comfy seating. I can tether a cell phone, or buy a satelite dongle for my laptop or do a 3G netbook/tablet. And the cost of gasing and maintaining a van or RV actually works out to less than the costs of renting, heating, powering rental office space. And I get a pretty fat tax refund for the cost of gas and maintenance of the van or RV.

There is also an added convenience bonus of bringing the office to clients.

So in short. Does it have to be an office?

Instead of getting into a business lease, have you looked into joining a "co-work" locations? We have a few here in Cleveland for people who need an office location on-demand. Usually you pay a per-use or monthly fee ($50 - $100 / month) and they give you a reserved space to use, storage and the ability to reserve meeting rooms or other facilities. A lot of our startup incubators / accelerators offer this sort of thing and it's pretty cheap when compared to a lease. If you don't like it, just try out another one next month.

We have an accelerator near my house that offers "Freebie Friday" co-working as well and I'm tempted to check them out tomorrow. They offer all the usual office amenities as well as windows and people. They also offer potluck lunches too.

Is your business just you?

If you are meeting potential clients frequently I think it will certainly be a benefit depending a bit on the type of architecture you do. Depending on the quality of the space it will add to a sense of professionalism during people's first impressions.

LockAndLoad's suggestion is a good one as well to give you a sense of whether or not it's a good work / home balance option for you.

Another plus is it generally makes it clearer to the IRS your expenses for the workspace vs a home office so the net cost difference might be less than you think.

Downsides include a likely minimum lease if you are worried about a downturn. Other costs might include cleaning and internet if that's not included. Compared to your house, commuting and parking can add up as well.

Good luck.

mrtomaytohead wrote:

I'm impressed you managed to have clients tolerant enough to meet with you in the situations you describe. I can't imagine a lot of our clients putting up with that, and we're not even into high end work. Do the office with home time for overtime like Rezzy suggests.

I've never actually met a client at my house. Well, once a potential client pulled a cold call / walk-in, but he was a construction company owner I had worked with before, at a firm. Thankfully, the house was in good shape that day.

Usually, I meet at other offices, or coffee shops. I don't have a lot of meetings, but I've put some down. I'd love to be able to look professional about meetings.

I think this facility is like a co-work arrangement.
The reception desk, takes and sorts your mail, will answer your phone line if you get one hooked up, manages the common copy / fridge room.
It looked like there was a one person financial advisor, another two person operation. Most of the other doors were closed.

The professionalism thing is a big one. The building is quite nice. The hallway and reception desk are B rating though. The office itself is nice enough. Your basic greyish walls and blueish carpet with ceiling tile. It's pretty typical of when you go to a dentist or lawyer, or optometrist, in an office building. The halls are nice enough, but kind of plain; really just a lot of doors and signs.

It is only me. I'll likely use contractors until I'm loaded enough that I can employ. Then I'll worry about more space. It could fit two, but it would be cozy.

It may also be month to month, which would make the commitment low.

I also think that the psychological break of home/office will help me out. It's too easy now to stop at 4pm to go for a run, and make up the rest of the work later at 9pm.