As you prepare to start your small business in earnest, you’re probably thinking about all the things you need to spend your startup capital on. Hiring employees and buying equipment and inventory are common expenses for startups. But what about office space? Does your small business really need a physical office?
It depends on the type of business you’re doing. In recent years, many business owners have learned that they can operate just fine with a remote setup. Let’s discuss further whether a physical office is a wise use of your startup funds.
Some types of businesses genuinely do perform best with an in-person office. Physical office space is a good investment if you need a professional space to meet with clients in person. In some industries, video calls and Zoom meetings can only do so much.
If your client relationships depend at least partially on in-person meetings, use 401(k) business financing to secure an office space and transform it into a welcoming space for clients.
You know your team and how they prefer to work. Many workers report that they are happiest and most productive when working from home. If your employees can perform the essential functions of their job from a home office, you can save money by forgoing the in-person office.
However, it’s not necessarily an all-or-nothing decision. You can rent a smaller office space and implement a hybrid work model. That way, employees who prefer to work in an office environment can commute, while home office workers can keep their remote arrangements.
Securing an office space, renovating, and purchasing furniture can eat into your startup funds. It can be a worthwhile investment in the long run—or it can turn into a waste of money. Remember that you must pay monthly utility bills to keep that office up and running.
Ask your employees how they feel about working in the office. Their answers can make the decision easy for you. If most of them are more comfortable working from home, save money by running your business remotely.
If a few of your employees do perform better in an office environment, consider renting a smaller office space. You’ll still save money while providing your staff with a productive workspace.
As you consider whether your business needs a physical office, think about the type of work you’re doing and the general work styles of your employees. It doesn’t have to be an all-or-nothing choice! Budget for the office solution that will help your business grow at a steady pace.
Wondering how to secure funding for startup expenses like renting an office? Take advantage of Pango Financial’s funding solutions tool today.