Is it Time for Your Office to Leave Home?

Ann Garrett had a beautiful vision—to provide a collection of collaborative marketing resources and strategies to help companies build their businesses around their customers. And thus The Marketing Studio was born.

The only thing missing from Garrett’s picture was a professional operating space. Somehow, working from home and juggling conference calls with the demands of kids at home and a dog running through the living room in the background wasn’t ideal. And as the business grew, she needed room for an employee or two.

Knowing when to move from home-sweet-home to official office space isn’t easy, but making that leap is the most effective way to gain instant credibility for your business. It also gets you out of the live-at-home, work-at-home rut.

“The main thing for me was that I needed a space to really be creative and free,” says Garrett. “With a home office, it’s hard to focus and hard for family members to understand that you’re actually working even though you’re at home.”

Garrett chose an executive suite operation for The Marketing Studio. An executive office provided just the right image for her hip new firm and plenty of room to bring in new employees. She also enjoys the use of a conference room shared with the building’s other tenants.

The Energy of Synergy

For Tac Anderson of MenloPrk.com, the draw of working downtown was the stimulation of a professional atmosphere and having other business people around. So, he decided to think big. Instead of simply renting an office, he developed an idea for an innovative center similar to a business incubator, an open office environment where start-ups and small companies could rent inexpensive space, leverage and share resources, and collaborate with each other.

Anderson approached a developer, who got the concept immediately. They began working on an empty downtown warehouse building, transforming it into “The Watercooler.” MenloPrk.com was one of the first tenants.

Anderson chose his location to take advantage of all the networking opportunities that the downtown offers, and as a bonus, he actually drives less by commuting to work even though he lives quite a distance from the office. “Most of my meetings are downtown,” he points out, “So now I only have to make that drive once a day instead of all those trips back and forth.”

Drawing the Line

One of the critical benefits of an office away from home is the way it helps separate home from business. Business owners are hard-diving types who are especially susceptible to burnout if they don’t take time to recharge and recreate. When your house is your office, it’s easy to fall into the habit of working almost all the time. Having an outside office makes it easier to stick to a schedule and be clear with yourself and your clients about when you’re available and when you’re not.

An outside office also makes accounting and tax planning less complicated and less risky. “You really need to be careful about blurring the lines between home and business for tax purposes,” Garrett advises. “It makes sense fiscally to keep them separate.”

Making the Deal

Timing is everything, and whether it’s time for your business to move depends mainly on the bottom line. Leases typically run from 12 months to 3 years, and costs for a 1-4 person office in range from $500 - $3000 per month, depending on location, square footage, and the quality of the building.

For the novice or first-time office user, determining which parts of an office lease are standard and which parts are negotiable can be overwhelming. Your best bet is to work with a reputable commercial real estate broker to help you find the right space and navigate the lease documents for your top-choice properties. A savvy broker will help you negotiate the most competitive terms for your business needs and budget and make sure your best interests are protected.

Checklist for Determing if Your Business Ready for the Office?

 The distractions of working from home are affecting your productivity.
 A professional image is critical to your clients or customers.
 A dedicated professional space would enhance your focus and creativity.
 You’re about to hire one or more employees.
 Moving to an outside office would boost your revenue and profits.
 Your business is generating enough revenue to cover leasing costs for up to three years.
 Your client meetings require privacy.
 You need to sharpen the distinction between home and work.