To buy, to rent, or to co-work?—the one dilemma that haunts all founders at some point. With this comes a volley of other questions and speculations. To make your decision quicker and your sleep sounder, we have created a list of pros and cons for each of these options along with the requirements they are best suited to. Take a look!
The days when work was confined to the four walls of an office are history. Give us a laptop and an Internet connection, and we can work from anywhere in the world.
The rise in self-employment and micro-businesses has made co-working a popular option.
- Fosters a positive and productive working environment surrounded by like-minded people
- Presents an abundance of networking opportunities
- Helps avoid traditional startup costs, such as office furniture, Internet, and telephones
- Provides all the perks of a big office—well-equipped conference rooms, chic cafeterias, recreational spaces, and more.
- Offers optimum flexibility: purchase an hourly, monthly, or yearly subscription
- Maintaining focus can be challenging for those who struggle to concentrate
- Privacy can be an issue owing to the open space
You should be looking at a co-working space if:
- You have a small team
- You have specific, short-term goals
- You need a well-furnished workspace that won’t cost a lot
- You don’t have the budget for a lease and the accompanying expenses
- Growth is your priority
- You are disciplined
When your business has outgrown your living room or co-working space, and you’ve rowed out the treacherous waters of establishing your business, it’s time to think of something steadier—your own rented office!
- Offers the option to pick an office in a preferable location
- Provides space for current as well as future requirements
- Facilitates refundable deposit and turns cash flow into working capital
- Annual flexibility enables you to move in and out conveniently
- High upfront cost and long lease lengths
- Variable costs like higher costs when your lease expires and annual rent increase
Renting is right when:
- Your business is steadily gaining impetus and your workforce is expanding
- You want to indicate financial health
- Your business leans heavily on location. E.g. retail or restaurants
- You have investment backing
This is a onetime investment option best suited to businesses that have signed non-disclosure agreements with clients. Buying an office displays confidence in the business and says, “I have a long-term plan and I intend to stick around.”
- Offers more privacy
- Offers more security—enables installation of physical security as required by the business. E.g. video surveillance and data security firewall.
- Gives your business clear, fixed costs
- Provides tax deductions by way of property taxes, debt interest, etc.
- Heavy on the pocket owing to large initial down payment, property improvement, and maintenance.
- Incurs various “hidden costs,” including service charges, and utility bills.
- There’s a lack of flexibility for accommodating unexpected needs—owned office space may become inadequate for a growing business
Think of buying only when:
- Confidentiality and security of data takes priority over conserving cash
- Your business is thriving and you’re earning enough
- Your priority is projecting a positive image for your stakeholders
- You need to have control of your workspace in terms of what it looks like—structure, signage, storage facilities, etc.
Choosing where to work isn’t all about the lifestyle; it must add value to your business, whether it’s monetary or otherwise.
Experience our coworking space in