At What Level of Gross Revenue Should a Business Be Earning to Consider Leasing Office Space?

Like many of us, you are probably reading this blog post from the local coffee shop, the couch, your bedroom or even in the car at a stop light (Yes, I know it’s a horrible habit but we ALL do it!) Pretty much anywhere but your office space.

Why? Most reasons can be summed up by, It costs too much to have office space.” Not many pet businesses I know have an office, but it is becoming more and more popular.

So the logical question has come up…. When is the right time to get office space? andHow big does my business have to be before I do this?  Take a step back and refer to the title of this blog inspired by one of you:

At What Level of Gross Revenue Should a Business Be Earning to Consider Leasing Office Space?jump-pricing-strategy

Answer: Gross Revenue doesn’t matter. How much can you afford?  (a.k.a. does your business have enough profit to afford this space)

Admittedly, everyone’s comfort cushion is different.

Let’s dive deeper examine the benefits and pitfalls to having office space in your pet business:

The Benefits To Getting An Office Space

Office space can really help a business owner separate their work from their personal life. Ever have those times when you are trying to work but the kids come barging in? Husband or wife asks a question? or… that distraction is just too tempting to you (tv, nap, project, cleaning) that you forget about work and then end up further behind than you already were? Honey Perry Boardman says, “There are too many distractions at home!” So she got office space for AHB Pet & Home Care

 

office space pet sitting

An office space can be your quiet (or loud if you prefer) hideaway that is just for you to work on the business. Sometimes, it can even be right on the street, so you get walkers seeing your branding on the front of your office.

Office space can also offer a space to be productive. For the same reasons listed above, you can uninterruptedly work on and finish that blog you have been trying to get out. You can decorate the space that is motivating and productive for you. You can feel “official.” You can keep everything in one place and have the energy of their business around them.

There are spaces where you can share office space with someone else, or a sub-let an area. You can make a room in your house an office and put a lock on the door like Karla with Karla’s Pet Care did! 🙂 (Check with your accountant but normally you can get a good tax write off for that!)

Office Space Karla

 

An office space is a place where you can meet with your staff, have an office manager work from, have keys picked up and dropped off, and even do interviews. This helps give your business a stronger presence in the community and gives you an aspect of brick and mortar you wouldn’t normally have.

With an office, you can have a business address, this providing you more anonymity and privacy to you and your company. Look at this beautiful space from Paws Pet Care!

office space paws

The Pitfalls of Getting Office Space:

The most obvious draw back to getting office space is the financial side of things. On average, I see “renting” an office running at between $200-$1000 a month.  Depending on how productive you are, this can be a drain of your expense budget. Although, there are quite a few office sharing spaces… just google in your local community. You might be suprised what you find!

Sometimes having office space makes you commute to go to work and many people don’t like that. They feel like they are wasting time getting there or it doesn’t enable them to multitask like watch the kids and work at the same time.

Last, if you have office space, you might need access to things that you can only get “at the office” so you are limited to what you can accomplish when not in the office. But isn’t that what having an office is for? To separate your business and life? 🙂

So How Much Revenue Do You Need?

I don’t think I could actually answer that question. It comes down to how is not having an office affecting your life? How could it improve it and do you have the money in the business expenses budget for one?  I don’t believe having an office space could ever hurt a business, only help create more productivity and provide a constant meeting space rather than coffee shops and restaurants! 🙂

What Do You Think?

 

Do you have an office space? What do you like or dislike about it? Or maybe you have been thinking of getting one? What type of debate has been going back and forth in your head about it? Discuss below!

 

3 replies
  1. Robyn
    Robyn says:

    Depends why you need/ want the space, as you touched on. For concentrated occasional office space I love the ones where it’s a $10/day drop in. No commitment – all the benefits of an office. Printers, wifi, social options, and out-of-the-house-ness.

    Reply

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