There will come a time for most business owners when finding a new office space will become a priority. Whether you’re running a start-up and require your very first premises, or your business has expanded beyond the boundaries of your current location, you will probably come across the following question; should you lease your own office, or share space (and costs) with another business?
Term requirements
Your business may have special term requirements; for instance, if you are looking for a short-term lease, say six months, you may not be able to acquire office space without a more fixed-term contract. Many leases have a minimum one-year contract. For sheer flexibility, you may find your requirements are more easily met when opting for shared office space.
Costs
Probably one of the largest determining factors when selecting an office space really comes down to your budget. With shared office space, you’ll find affordable rent for between $700 and $2000 per month, and you will save on other costs such as property management, mentioned below. For 3 quick tips on cash management, check out our previous post. However, if your business is ready for expansion and you feel you’ll need the extra room, making the investment now would probably be wise.
Property management
Leasing your own office space often comes with extra responsibilities, such as cleaning, maintenance, water bills, taxes, HVAC and electrical systems. Other common systems management areas include phones, internet, coffee and other typical running costs youn would find having a traditional office. With shared space, these costs are typically part of your monthly rent.
Control
With these extra responsibilities also comes a major benefit; you’ll have more control over your work space, and exactly how you want to use it. You’ll get to decide how things should be run, where things should be placed, and general perks that come with having a space to yourself, with no other company or network to get in the way.
Space
If you have a small, set number of employees, and do not plan on rapidly expanding over the next few years, then why take up a large leased office space when you’ll be rocking about with more room than you need? In such cases, it makes perfect sense to share a space within a shared office provider, as well as lowering your overheads. However, if you have a large, or growing company, and your plans include hiring a number of new employees over the next few months, never mind years, then thinking about the future now is definitely essential. Your own office space may be costlier, but it could also easily accommodate your needs where a shared space may not.
Identity
If you are expecting to host many clients and new potential clients, you will want to give them the best impression as the hub, and face, of your brand identity. Having your own office space can inspire confidence and often allow extra space for private meeting rooms, rather than having to share with another company. However, if you will be dealing with most of your clients or customers over the phone, and tend to favor your online presence, then sharing office space makes more sense.
When thinking about which office space solution is right for you, you must consider your individual business requirements and needs. For instance, how many staff members do you currently have? Do you expect your business to grow even more over the next five years? Do you expect to have many client visits to your premises? Think about how each scenario would work for your business, and how you could figure the best solution into your budget.