Today’s business owner can choose between a home
office, shared rented space, leased space, purchased
space, or a virtual office. The best choice depends on
the nature of the business, the developmental stage of
the business and the budget.
The home office is best for the sole proprietor or
multi-level marketer who simply needs a place to work,
a computer, a high speed Internet connection and a phone
line. The great advantage is simplicity and low cost. The downside is the lack
of boundaries between home and work. Along with employees and visiting clients
come complications and invasion of family privacy.
Shared rented space, such as executive office space,
is a good choice for someone who needs the physical separation
of “going to the office,” along
with conference space. As long as the business is small, this is a realistic
and affordable choice.
When a service business starts to grow and with a retail
business from the start, leased office or store space
is appropriate. Short-term leases are
hard to find,
so the commitment is significant. You can no longer compete on price with
sole proprietors in the same business. You must compete on quality and
credibility. When signing a lease, consider all the costs,
including the CAM (common area
maintenance).
Once a business becomes very successful, leased space
may no longer make sense. Instead putting monthly payments
into building equity is preferable.
There
may also be the option of leasing space to others. But buying a building
usually requires a significant down payment and financial stability sufficient
to support
a loan. Avoid the all-too-common mistake of buying improperly zoned property
with the hope of having it “up-zoned.” These changes in Anne Arundel
County are rare!
With the advent of the Internet, more and more businesses
are going virtual, even with many employees. While there
is the obvious downside of loss
of employee control, there is also the
