9 Leverage Points Created By An Outside Office
Written by Ross Rains
Perception. Professionals who can be found in a convenient, central location with great parking will have clients assess your business differently than if they are driving up to a home. You only have seconds to make a good first impression, and it begins with your address, whether that is found on your business card or website!
Focus. Your ability to produce at the highest level is a function of your ability to focus. Most home office workers find that distractions are more frequent than they think. The home phone, children, the family pet, spouse, mail, etc. have priority in the home as it should be. When a need arises, one’s focus can be broken quickly and either lost or takes several minutes to regain.
Revenue. An outside office shows that you are “in business,” not simply trying to save a buck but to generate greater value to more clients and build a great business with great revenue streams. Business is about 5 things: Value Creation. Value Delivery. Sales. Marketing. High Profits. An outside office shows that you are working “on” the business, not just “in” the business.
Company growth. If you wish to grow your company, how many other staff can you fit into your home office? How will the family think of that? Are they using the family washroom, creating congestion in your street with parking, etc.? Will a professional associate want to come to your home to work ... are the optics right and professional? Is the goal in having a home-based business to save money as a higher value than scaling the business and creating residual income long term?
Separation. In your own work patterns, is it better for you to be able to ‘leave work at the office’ so you can be more focused with the family at home? What value do you place on that?
ROI. Does an outside office provide you with growth to add new services, products and/or personnel? Most businesses that rent outside offices get a real ‘multiplier benefit’ the more space they productively use! i.e. rent cost as a percentage of gross revenue declines over time!
Networking. By being out in the marketplace you will naturally meet more client prospects.
Tax Benefits. You can still have a home office and claim deductions for valid use on an ongoing basis, as well as have an outside office. You can do more private work at home, but meet clients and associates in the outside office! As a result, a smaller office is all that you might need.
Succession. An outside office feeds directly into succession planning. If you sell your business, would you still want it to operate out of your home? An office that is functioning and intact provides the business successors a chance to visualize the company coming into their hands with no need of a move in the transition. This has huge perceived value to a buyer. It elevates the perceived worth of your business and it provides the natural context for its continuity under new leadership.
Ross Rains leads a family run business that provides office facilities to over 100+ businesses and professional in the London – St. Thomas area, through 100,000+ sf of owned commercial office facilities. He is also the President of Tier1 Exec Corporation and coaches Entrepreneurs and CEOs in how to take their businesses to the next level.