A few things I need to decide this week:
#1. Should I consolidate my office into a “home office”? I’ve been in this building for over 2 years now. My office space is a good deal, but with only 2 full time employees (myself included) and one part-timer, shouldn’t I work from home? I’m looking at a place tomorrow that would be larger than my current office (yet also provide a “real” place to live. ahh….a real mattress!).
#2. Can I file Chapter 7 Bankruptcy? We are getting to crunch time now on the BK filing. If I’m going to do it (I have to at this point, it’s the only thing that makes sense all around) I need to get it all figured out this week. I made more progress on the paperwork today, but it’s difficult finding time when my employees are not around (and I have a friend visiting from out of town! yikes…)
#3. Can I win the contest at DCC? (go here to vote for me, please leave a comment too!) If I can win that contest I may just have enough money to get a place I’m looking at that could hold both myself and my business! (for only $200 more. IE, with no business lease @ $800/month this place would only cost me 1K/month, and allow a place for my business and personal life!). Obviously I’m hoping I can win this contest!
#4. Will I ever be back to my “old self”? I don’t think so. I don’t think I want to be. As I slowly shed every piece of my former life (big house, lots of crap, fake relationships, fancy office?), I’m feeling more and more genuine and real and honest…and it’s wonderful.
#5. Will I ever make it out of this hole? I don’t know. I’m still so right on the edge right now….
What do you think?
Should I ditch my fancy office (none of my clients are local, all my workers mostly sit at a desk all day and work on the computer and talk to clients over the phone)? I’m leaning towards yes here…if I can find the right place (and come up with the money).
{ 17 comments… read them below or add one }
I would NOT recommend trying to run a real business from a SOHO type arrangement – particularly if you have employees. You need to have a place that is clearly work oriented for max productivity – for you and your people in my experience.
Seems like you already have your mind made up… I don’t know why you need the affirmation of strangers on the internet. However. That being said, like pmspms said I know from first hand experience it’s incredibly difficult to keep up with the strict responsibility a home office requires.
Be careful. You have a good head on your shoulders though debt kid. Xo.
Would your other two employees be working from their homes or come to yours?
I agree with above, of course there are exclusions to every thing.
If you live in a city, like Chicago and Suburbs – there are often store fronts, with appartments behind or above. This may prove useful to you.
Then, you need to look at your business from all angles. Do you have a large customer base that comes through your front door? Impressions, sometimes play a larger part then we think. To take a step, in what would appear to the customer as, backwards – could hurt you in the long run. And without your business – what?
I work from a home office. Thankfully, my home is such that my office has it’s own space and separation from the rest of the home. With easy access and quick access from the door. About 3 steps. When I need to meet for business, I can rent a meeting space with a local co-op office space. Would you have this available?
It may be more logical, to rent a room from someone in the area, with a set weekly or monthly fee. Keep your options open. Take the one that does the least damage and offers the most opportunity for your business.
It’s a bit of a toss up if you can maintain a 100% professional environment then bring it into the house/home office. I’ve dealt with numerous businesses that have done it and done it very sucessfully.
As for your list, I like #4 – its important to know who you are.
You might want to talk to your accountant about moving to a home office thing. There might be tax implications as to how much rent/electric/etc you can deduct. The IRS is much fussier about home offices. Just FYI.
Barbara
Looks like you are in first place as of right now. Congrats!
Uh… aren’t you already working in a “home office” right now (think about it… you are!)?
If the move would save you money in the here and now, I’d consider it. You can always move the business back out later. I do like the suggestion to have a meeting space you could rent when needed, that makes sense.
I think go for the home office keeping in mind the good advice above about maintaining a professional workplace, but I think you have what it takes to manage that. It would save you a lot of money and it does not need to be forever, you can always review it down the track as things improve. renting a meeting space for clients, or meeting them at thier workplace is a good option, often clients appreciate you going to them, depending on the nautre of the business. good luck and keep chipping away at it, you are doing great.
07/24/07
One consideration is, do you have a lease on the suite you’re in? What is the cancellation clause? In some areas, there are strict rules against home businesses. Would customers/vendors have reservations against going into someone’s home? What about your employees? Are you certain your business will be able to move forward in its present form, based on your facing insolvency.
Thanks for all the advice. My lease at my current office is month to month. I would have to give them 30 days notice. So, if I decide to consolidate my office into a SOHO, I need to decide by the end of the month.
I spoke with my Dad about this today. And I just got back from looking at the 1K/month place. I didn’t get to see all of it (current tenant was there), but it looks pretty good and is in a nice location.
My business has not had a “client” or even vendor come into our office for months. All our business is done over the phone and internet. My employees are college students mostly, so I think the basement office would work for them.
The place is available Aug. 1st. So, financially, I would have an overlap with my existing office space. But, on the good side, this would give me a month to sell a few things in the office and slowly transition everything (internet/phones) into the new place. And file bankruptcy this week. Yikes, I love my life!
I don’t know. If it is in a house and you’d set up the office in basement, then maybe. If you were trying to do it from an apartment (with a bedroom dedicated to the “office”) then I would say no way.
One thing that you need to consider is how much of a hassle it would be. Do you receive much mail? How many clients would need an updated physical address? Do you have a P.O. Box? If not, and you decide to do the move, you should go ahead and get one (they’re only like $60 a year for a small one). That way you won’t have to tell everybody your new address again when you eventually move the office out of the house.
Also, consider expansion. What if your new ideas take off, and you need to hire 3 new employees? Could you do it at your current office? Could you do it at the new place?
I worked for a guy for a while who ran his business out of his home. It never felt right; it never felt official; it always seemed like I was just visiting his house instead of working, and in fact it seemed kind of creepy. I didn’t like it. Later we got a real office and things were much better. From your standpoint it’s probably a good money-saving idea, assuming you can keep the accounts (personal and business) straight; but from the employees’ standpoint I vote for “suckage.”
Louise is right. Downsizing is scary. Fear of the unknown is always a big deal. I recently went from an office of 16 to one of 7. And it;s tight. But the change actually improved things for everyone left. Including me. Sounds awful, but those whio left us are now all employed again (worked hard on that and gave references, suggested agencies, etc).
The increase in expenditure will repay itself. You will be more productive (after settling in).
I’m from the UK, but we now meet our clients in a Starbucks or other equlivalent aroundthe corner should we ever need to meet a client. Don’t pay for office space when you meet clients rarely.
Spend the infrequent expense on them – a side order is far less than the extra rent.
Works for us – and very well too. By the way, our clients are local.
Just some things to think about:
1. Have you looked into how much the appropriate insurance might cost? You’re going to need it, in case anyone gets injured.
2. Have you made sure that your potential landlord is okay with your having employees come to your place? He/she may have problems if you have employees taking up parking spaces and/or adding to wear and tear.
3. Think about what would happen if you got sick or had to go out of town for some reason. If you’re having your employees work out of your home, would you be comfortable with them working in the basement(or wherever) while you were lying down with a fever or dealing with a stomach virus? Would you be comfortable with them letting themselves in while you were gone? Or would you be okay with all business stopping during those times?
I think you’re a nut looking for a book deal like Casey Serin.
Yikes! Some not so nice comments as of late. But no, I am not looking for a book deal. Are you serious? What a waste of time that would be. Most books barely make (if any) money with a huge amount of time commitment that I don’t have. Plus, what would I write about? I write here because its fun and I get (mostly) helpful feedback.