Forums: Discussions for entrepreneurs and small business.

I am considering renting my first office space.  I see tons of benefits to this but am some what apprehensive about the amount of financial responsibility.

Background:  I run a language services location and most of our work is done at the location of the client, but there is huge potential and need to have a central location where our instructors and clients can meet.

Pros:
- Stabilizing effect for instructor turnover
- Increased Visibility and Traffic
- Increase in the amount of services I am able to offer which in turns increases my revenue.
  - Also, Multiple purchases per customer will increase
- Customer Confidence
  - Higher conversion rate on sales leads

Cons:
- Financial Risk
- Initial Investment

I expect that there will be some tight first months, but believe that with hard work and intelligent planning that we can be profitable in a short period of time. 
In your experience is opening a Retail location or Office worth the risk?  Secondly, I know location, location, location but in your opinion do you believe that this rule applies to my type of service?  When I speak of location I mean: visibility in a high traffic area, and region that is central to our demographic.

Please chime in.
-

Aaron,
From  what it seems you already have a clients, my suggestion would be, open an office.. I don`t see where the Financial risk would be since you are going to have to do it sooner or later (plus you already have clients)
I think your only risk at this point would be "Not taking the risk" and opening an office.
I know "many years ago location, location, location" was very important, and it was crucial to any business. With advances in technology and the intenet... It doesn`t matter whether your customers` are in Washington State or Washington D.C. They are only a "click away"
I think with a strong Marketing Campaign and a grand opening party..
You will do good.

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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

To clarify location would still be important for us because we would having language instruction at our location.  Providing group and private langauge instruction at our location would be part of the reason to get an office.

Secondly,  we do no have enough customers at this time to sustain an office.  However our client base is growing rapidly and one of our problems at this time is having enough instructors to meet the demand.  I feel that have an office that is central to our clients and instructors would stabalize our instructor problem.   

Let me know what you think with this updated info

First: Congratulations on your decision, but I would suggest that you are really excited about leasing. More than any other factor - I believe if you aren`t truly happy with the arrangement than it is not worth the investment(what kind of facility do you really want? - do you know?). If you find yourself awaking in the morning and thinking how great the day will be from the viewpoint of your space, than I would say that you made a wise decision. afterall, aren`t you the one signing the check?

When I acquired an office space, I was really excited! and, that alone could make a significant difference in how you are able to settle the costs at the end-of-the-month. I used part of my retiremement saving so I could work more happily. Unfortunately, things didn`t work out well and I lost $60,000 that year(s). But, I encourage you to use your instincts and do what you do best - `know what you what.` It will workout through some way that you hvn`t anticipated anyway(doesn`t life!!).

Find a place where you like the landlord, and keep the relationship cool!!

Location is important if people cannot find you. hopefully, you`ll cash-in and find more time for sitting by the Pool front.

(this is my opinion - do what you want-to-do!! this opinion is mine and not of startupnation website)

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I am no longer posting on this forum. A fellow citizen here suggested that I should Think before I add commitary to my postings. I thought he was wrong, but I am mistaked(not everyone digs Mr.Wicks) E

Hi Aaron - I just spent the last 30 minutes writing my suggestions for you, but when I tried to submit my response, it just disappeared - I`m not sure what went wrong.

But since it`s now after Midnight, I`m taking the easy way out.

If you send an email to tips@offices2share.com you will immediately be sent by our autoresponder a .pdf of the free booklet that I wrote called "Selecting The Right Office Space For Your Small Business".  That should answer a lot of your questions.

If you have more questions, just call me next week at 212-867-1888.

I`ve been in the commercial real estate business for 32 years and I think I can point you in the right direction.

Thanks - Jeff.

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Offices2share.com® operates a Web site that focuses exclusively on short-term, ready-to-use office space nationwide, featuring thousands of offices in hundreds of American cities.

Just as an add-on - I went to many locations before settling-in on my first space. When the bill (rent) was due, my stress level increased that day! I like paying my bills but that office expense can be emotional. That was the hardest part - call you lawyer - he can make a good friend. You can send msg. through StartupNation to me if you need one. Have-fun!

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I am no longer posting on this forum. A fellow citizen here suggested that I should Think before I add commitary to my postings. I thought he was wrong, but I am mistaked(not everyone digs Mr.Wicks) E

Have you thought about the shared office spaces available? Like HQ. It is a lot cheaper and you have space available when you need to look professional. You also don`t have to lock your self into a 5 year commercial lease.

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John Herman
Succeeding Steps LLC - http://www.succeedingsteps.com
Marketing and Operations Consulting for Small and Growing Businesses

don`t sign anything across state lines. the contract is the legal - play into another state is legal death if you default.

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I am no longer posting on this forum. A fellow citizen here suggested that I should Think before I add commitary to my postings. I thought he was wrong, but I am mistaked(not everyone digs Mr.Wicks) E

We`ve organized five different independent businesses in one office space; none of us have any clientele in common.  The office space has window offices for two professionals, a smaller office for an assistant, a conference room, and a store room in which each of the five businesses has a filing cabinet.  In theory, two of us could use it simultanously while the other three would have to work in the conference room or at home. 

We book out time whenever we need it for meetings on a first-come-first-serve basis, and we have a formula for figuring out rent at the end of each month (roughly the number of hours you`ve used the office divided by the total number of hours the office was used, multiplied by the rent or other expense).  Everyone must use the office at least one hour each month.  There are online "matchmaking" or "dating" -type computer services that let small businesses find others that can time-share like this (you don`t want to share office space with a loud business if your business isn`t loud).

I thought I would share my experience.  For the first 8 years I ran my successful tax and accounting business through my home. I had lots of happy customers. Things were going great, however, I personally had a hard time separating work and personal life.   So I rented a small, one room office in a mid-level office building. Nothing fancy. No receptionist, shared bathroom. Basically a room, a desk, a computer and a phone!

Then a funny thing happened. People thought I was a better accountant/tax preparer just because I had an office.  Even existing customers who had been with me for years seemed to think I was suddenly "better". I began getting more referrals and more of my proposals were accepted.  In the end I got enough new business to more than pay for that office.

I think your business may be the same. Good luck!

Kathleen