As a startup one of your biggest expenses will be renting your own office space. It’s a big step for most as signing a lease contract is a huge commitment since you may be unsure what the future is for your company. Will you grow fast or slow? Will you get that series a funding that you were expecting? How many people do you plan on hiring? Is leasing office space the best thing for your company right now?
Alternatives to Leasing your Own Office Space
Before getting your own office space you might consider the alternatives first. Most startups don’t lease their own office space when just getting started. They typically start small and cheap and then increase their commitment to space as the company stabilizes.
1. Your Home Office
The least expensive way to have office space is to work from home. Apple Computer’s, Steve Jobs did this in 1976. No rent payments and no commuting is nice however working from home can get boring sometimes. However as you grow and hire employees it’s probably not the best fit.
Coworking facilities have taken off the last few years and these are great options for startup companies. Most have open spaces with plenty of seating as well as conference rooms and private offices to take those phone calls. They are also great places to meet other like minded entrepreneurs, freelancers, and startups. They are typically membership type agreements where you pay on average $150 to $250 per month.
3. Executive Suites
There are a lot of companies like Regus and Business Suites that offer temporary and/or virtual executive office spaces that can be rented by the hour, month, or year. These are typically found in Class A office buildings in some of the best locations in town.
4. Share Office Space
Some startups or companies share office space. The benefits of doing this is that you can share the cost of some back end operations such as phone, administrative, supplies, furniture, and other costs. This is also a great way to work with others who compliment your services……meaning you are able to refer clients back and forth to each other.
5. Lease Your Own Office Space
You have grown up, the company has positive cash flow, you have a solid plan for current and future growth, and your hiring new people! This is the perfect time to explore leasing your own office space. Now you are able to build out the space the way you want and what works for your culture.