When you think of starting up a business, one of the first things that may come to mind is having a huge room all to yourself with your name engraved on the door. Although this may be the reality of some, it may not be ideal in the initial stages of trying to grow your business. Your primary objective should be to be as financially efficient as possible, so that you don’t end up filing for bankruptcy. Although, in some instances, a physical office is essential, where it isn’t there are several benefits of choosing not to have one. On that note, three key reasons will be discussed in the following article.
Eliminates Office Expenses
Having a physical office can incur a number of recurring costs. Some of these include paying rent, salaries, office maintenance, and security if you need any just to mention a few. These recurring monthly costs can be crippling if you’re a new start-up or a small business. However, deciding to ditch the office space could mean that you save significantly and can reinvest that money into other aspects of your business. If you happen to be managing a business that requires a lot of equipment and products, why not consider using the likes of a self-storage service in Leicester such as Storage Giant to store your items? This would save you a considerable amount in comparison to what you’d spend on managing an office every year.
By taking out the need for yourself and staff to commute to an office every day, you could potentially increase productivity. You may not notice, but the amount of time that is used to get ready in the morning and travel to work, as well as the time that is used to travel home, adds up. This is more or less valuable work time that is lost every week that could be used to help grow your business. It has been found that employees who are able to work from home are up to thirteen percent more productive than those who actually work in an office. This is, therefore, one of many reasons you should consider not having an office space.
You Save on Overhead Costs
The number of businesses in the UK was said to have hit an all-time high in 2016 with 5.5 million private sector businesses at the start of 2016. This means that there is much more competition arising for new and existing businesses. To face this competition head-on and survive as a business, why not invest more funds into the marketing and strategy aspects of your business as opposed to spending on overhead costs? These costs which include accounting fees, insurance, legal fees, telephone bills, travel expenditures, supplies and much more can be dramatically reduced when you don’t have a physical office. This is a competitive time for businesses in the UK, so it may be a good idea to focus your efforts on remaining relevant and cut unnecessary costs.
Whether you already have an office, or you were considering renting one, you should consider these reasons before continuing to fork out money for maintenance or begin spending unnecessary money. Hopefully, this article has convinced you that there are sometimes better ways to invest your resources as a business than on maintaining an office that isn’t an absolute necessity.