Startups are like newborn babies, where the baby requires utmost care and attention. Among many differences, one of the differences between babies and startups is that startups are way more expensive than catering to babies. In many cases, entrepreneurs aren’t even 100% certain of the expected returns for their startups.
To ensure a safe start-up, it is critical to understand the pros and cons of making your investments in a startup project. Would it be better to buy a whole new place or to work from home? Should I get Apartments for rent in San Jose a place or do I get a co-working space nearby? These decisions make a huge impact on the success of the startup. Here are some facts that will help you decide the fate of your startup.
Working Remotely vs Renting An Office For Startup
Working remotely has never been easier for management. However, modern work environments are now offering healthy work-life balance within modern work environments. If recent times have taught us one thing, it’s that working remotely is a feasible option for businesses of all sizes. The rapid adoption of video-conferencing and remote working tools like Zoom, Skype, Google Hangout, Microsoft Teams, and Slack has facilitated this boom. This adoption has led the Co-Working Spaces to make space for conference rooms. There’s also a growing hunger amongst the workforce for a more flexible work environment.
For startups, there’s less pressure to get an office straightaway as teams are more comfortable with working remotely. But, renting an office space is probably an essential part of your startup journey. Whilst putting roots down might feel daunting, an office is a worthwhile investment. Not only is it conducive to happy and flexible working life, but it will also bring more structure to your organization whilst making your teams more accountable. It’s the key to taking your business to the next level, you just need to decide whether now is the right time to take that step.
The Communication Barriers In Startups
In order for your startup to be successful, it is crucial to building a strong team. As they say, a person is only as good as the company that he or she keeps. Some of this team building can be accomplished online, along with impromptu face-to-face interactions occurring as a result of the power of technology. You will also be able to tap into more diverse teams that would otherwise not be able to work for your company, due to accessibility or geographical barriers.
It has been proven that socializing has a holistic effect on making your teams happier. As social animals, humans are by nature social animals that rely on social interactions in order to survive and thrive. Social connection for survival has been proven by a multitude of studies that have found that social relationships are as important as food and shelter for human survival. In spite of the fact that technology has enabled us to collaborate remotely, our biology has not changed. Due to this reason, most startups look for a good co-working space or a facility that they can use to lease out desks to their team. Not only does this save the startups some money, but it also keeps them connected and protected with hands-on technology.
Easy To Recruit New Talent
In addition to having a physical space or some desks for your team, you will also have more room for expansion. The flexibility of our office spaces means that as your team grows, you’ll have the option to add more desks to the space as well. Although having a physical office is a helpful recruitment tool as it says a lot about a startup’s financial health and shows that the company is going to be around for a long period of time. In order for prospective employees to have job security, both of these factors must be present. When you hire the most talented and brightest employees in your company, you will generate revenue that will be much higher than the cost of renting an office.
More Capital Means More Privacy
The advantage of working from a private location is that you can have private meetings without worrying about prying eyes or ears. There is probably a greater likelihood that your clients will feel more comfortable discussing sensitive information in a private area. Moreover, you will be able to keep all your private information, whether it is hard copies or electronic copies, protected from loss, theft, and tampering, as well. All these free privacy features become costly, however, when a private office has more seats than can be accommodated. The reason why co-working spaces with conference rooms and meeting rooms are open to co-workers is in order to facilitate communication between them.
As well, the co-working spaces grant their customers access to rooms that are no longer assigned to a specific organization but can instead be used by any organization. It is possible to use these rooms for many different purposes, including hiring more talent, meeting with clients, etc. Therefore, ensuring the success of the brand as well as the smooth running of the startup process is of the utmost importance.
Scaling Up For Own Office?
Premature scaling has been identified as one of the top causes of startup failure according to recent research. You might want to reconsider your move if you are expecting sudden growth or downsizing. As much as possible, you want to invest time and money into buildings that are long-term investments rather than short-term investments. In order to help you avoid going downhill in vain, it is completely out of the question to buy one.
It could take more than twice the length of time to close a commercial real estate deal as it might close a residential deal. There will be times when you need to take time away from your work to attend to things such as the search for a building, the negotiation process, and the loan approval. Will your staff be able to assist you while you are gone? However, if you work from a coworking space, you can have realtors visit your office and you can even have meetings right where you do your work. This way, you are able to streamline your startup’s workflow.
