Considering your first office space? Discover the pros, cons, and tips from Launch Kit's journey to help you decide when the time is right for your business.
POV - Your business is developing, and you're on the verge of considering getting your first official office space. Should you do it? What are the pros and cons? Welcome to this week's article.
Disclaimer: This article is totally subjective. I don't use AI to write these because I want to keep it personal and share my thoughts/experiences. Take my opinions with a grain of salt; there's more than one way to build a business. This is just how I did it.
Pros:
Cons:
In 2021, Launch Kit was in the position. I was running the business in my one-bedroom apartment in downtown Grand Rapids (I lived at 20 Fulton East.) Things were going well. I had projects to work on. Brand development, web design, and photo/video were our core services at the time. I was fulfilling most of these services myself. I was having an internal debate with myself about whether I should hire an employee or get an office. (I have many more thoughts on this topic; when I write an article on it, I'll link it here.)
I decided to hire Launch Kit's first staff. It was the right move because it allowed us to generate additional revenue and afford office space comfortably.
When you want to begin hiring staff, building a company culture, and conducting meetings with clients/customers, it's the right time to go for the office.
If those items aren't relevant to you, I recommend saving the money and enjoying going to local coffee shops instead.
In my mind, getting that first office space put Launch Kit on the map. Quite literally, it did. We were able to have a Google Maps listing. But figuratively speaking, this was a stamp of this business being my total focus. I was all in. I wanted to transition from being a solopreneur providing a service to a business owner building a company.
I had hired my first staff, Michael (our graphic designer.) We worked from my one-bedroom apartment, coffee shops, and co-working spaces.
When we'd meet with clients, I would have them come to my apartment building, where I'd have meetings in the common area lobby. This was a great bridge that allowed me to conduct business in the early days, but I craved our own space where we had more control over the environment and client experience.
In a post-COVID era where much work was going on remotely, I still craved an office to call home. I have always admired how companies like Google, Steelcase, and LinkedIn have created office environments that foster creativity and collaboration. I wanted that for Launch Kit.
When you work from a coffee shop, you're taking on the culture of that shop, which can be great, but if you want to build your vibe, you need your own environment.
I believe that successful businesses and brands have a personality. They're the ones where you recognize their commercial without even seeing their logo. I had seen brands achieve this distinct personality but needed help figuring out how to get that.
Today, I can tell you that having your own space really helps with this. You're bringing your vision to life via the environment you create. That environment embodies your brand's personality. People walk into the Launch Kit office and say, "Wow, it looks just like I'd expect it to."
First and foremost, you need a business model that generates consistent cash flow. This cash flow is necessary to ensure you can pay rent. If you're struggling to pay rent, you won't be in the head space to think about growing your business.
I recognize this isn't necessarily a con; I just wanted to point out that cash flow is critical. Ensure you're building a business model that isn't too volatile on how/when you collect payments.
This is the necessary evil of getting office space. You're going to take on additional expenses besides just your lease. To name a few that we budget for at Launch Kit:
These are all great/necessary expenses. I just wanted to share some insight into the additional expenses you will incur along with your lease.
If things go well over the next year or so, you'll likely have to move/expand. It is a great problem to have; it's just a time expense on your calendar, though. Writing this on Jun 18, 2024, this is currently where Launch Kit is at. We've been in our first office space for three years; it's been great; it'd pick it up again in a heartbeat. But now that we have five full-time staff and more coming soon, we need to start looking at space that can accommodate the team.
I'm really enjoying the process of touring new spaces, but it does take up time and mental energy. Also, thinking about the process of having to move our furniture, update addresses, and update clients is going to be work that will take a significant amount of time/effort.
To wrap this up in one sentence: Hire the first staff, generate consistent cash flow, and then go for the office space. It's the choice I made and I would make it again.
My final tip is to start small. I know I said having to expand and move is a time burden, but losing sleep over being able to pay rent is far worse. When you select a small space, you can still get the benefits of conducting meetings, building culture, and putting your business on the map. The beauty of a small space is that it will be cheaper to furnish, and your renter's insurance and utilities will be less. Launch Kit's first office is 700 square feet, and we easily fit five full-size desks, a workshop table, and a soft space area.
Bonus tip - Bridging the gap
If you're still reading and still on the fence, check out a co-working space. Before leasing 89 Ionia Ave Ste 100, Launch Kit had memberships at Start Garden and Worklab. I would go there to work during the day and have some meetings there. This helped give me the fulfillment of getting dressed and "going to work." These memberships were around $200/mo, so it was an excellent stepping stone to leasing a space.
