Financial Insights, How to Start a Business | May 6, 2013
Since starting a consulting company three years ago, we have always opted to have space. While working at home and in coffee shops can be convenient – saving time and money – a decision was made to have a small and modest office that was close to prospective clients and business partners. In addition to the perceived credibility of actually having an office, there was an impetus for the team to have a creative and collaborative working environment. Skype can only take you so far, and the constant grinding of coffee machines limits productivity and professionalism – especially when you are trying to have calls with clients.
That being said, as a new business there are several options to have workspace and not destroy any working capital you might have on costly rent and insurance requirements for an office. A few include:
At the end of the day, you need to decide what works well for you and your business. That being said, take a measured approach to leasing space, particularly if you are in your early stages of your business where working capital is tight and you still need to get paid. Signing on to a 3-5 year lease, plus insurance, utilities, internet, phone and more can be very expensive.
By Bryan Santone, H Two Consulting Inc., Toronto, ON