As your business grows, you’ll need to start scaling up your operations. Taking on employees and growing your customer or client base could mean that you soon need to think bigger.
Renting a physical office can expand the possibilities of your business, but it’s also expensive. You’ll need to think carefully about whether it’s necessary for your company before rushing into a long lease.
In this article, we’ll run through the pros and cons of renting office space for your small business so that you can make the right decision.
The Pros of Renting an Office
Firstly, renting an office can often equal lucrative networking opportunities. If your office is in a large building or coworking hub, you’ll have the chance to meet other business owners and workers. Not only can they offer guidance, but you may also discover valuable business opportunities.
Renting an office can also make your business seem more professional. If you frequently need to meet clients or want to start taking on more customers, having a physical place to have meetings will be good for your reputation.
Finally, an office will give you a place to meet your employees face-to-face. If you’re used to online meetings, you might find that in-person conversations spark inspiration and make you and your team feel more driven.
The Cons of Renting an Office
Unfortunately, renting an office can be expensive. Though some leases are flexible–especially in coworking spaces–you might discover that you can’t really afford the cost. As a result, you may have to sacrifice other elements of expanding your business, such as investing in marketing or expanding your product range.
If you’re committed to going to your new office four or five days a week, you’ll also have to factor in commuting time. This might be challenging for your existing employees, who are used to remote work or don’t want to relocate to your new office.
Finally, after working from home for so long, you might find adjusting to office work difficult. Do you often work unconventional hours, like early in the morning or late at night? Then sticking to opening hours for your building might prove challenging and disrupt your workflow.
Our Advice
Renting an office can be a great opportunity for your small business. However, don’t rush into this decision: evaluate your future goals and where your business currently sits to determine if it’s the right choice.
If you can’t afford private office space but still need to expand, there are other options. For example, coworking spaces often have flexible private office arrangements, or you might consider hot-desking with your employees instead.
