Investing in an Office- Yay or Nay?

[sparklyshadows]

Hello Fastlaners!

Some Background: I'm a 19 year old aspiring entrepreneur. I decided to forgo college as I feel that college has no use for me. My income is between $500-$1000/month and all of that comes from doing private guitar lessons, chess lessons, tutoring, babysitting etc. It's a means to cover my expenses and support myself.

I've had an idea for a while (my boyfriend actually gave me the idea. He's the one that got me to read a bunch of business books including TMFL and introduced me to this forum.) and I've made flyers and distributed them and listed my offline service-based business on all the major local business sites. I've gotten a couple of calls (by couple I mean 3-4) as well. It's a unique idea and this actually doesn't exist (which can be a good or bad thing based on my execution!) and I've supplemented it with a service that does already exist (Kind of like the saying, "Give people what they want, Sell 'em what they need.")

The Situation: I've been working from home all this time, however I just feel like I'm not doing everything up to my full potential. I'm currently working on mindset and fitness and I'm working my way towards the point where the ideal entrepreneurial mindset will be second nature to me. But anyways, I'm seriously thinking of getting an office.

I saw an amazing and cheap office about a year ago and tried to convince my boyfriend to rent it with me at the time, but not only did he not agree, but he talked me out of the idea too. Once again, the same office is up and I've talked to the guy and he's willing to be flexible with me on a lot of terms (Eg, monthly lease, discounted security deposit) and I've set an appointment with him for tomorrow.

I feel like if I get an office, I'll automatically work harder and make it work since the pressure will be on me to recover the money which will initially come from my savings. I talked to my boyfriend and he put doubts in my head again and I'm just looking for some advice regarding this move from some fellow fastlaners.

What do you guys think? Should I go all in and get an office? Do you think that's a good move? I would really appreciate all input! I apologize if my post was too long. Thanks

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[BigRomeDawg]

if you're just looking for motivation to work harder, join a local entrepreneur meet up group or something

 

[Kyle Tully]

Personally I would work on your mindset issues and get a few clients before adding extra outgoings into the equation.

The "I'll automatically work harder" thing sounds good in theory but often working harder isn't the answer

 

[Jakeeck]

It sounds like you really want the office if you had all this time in between when it was being rented, and you still want it enough to talk to the owner after seeing that it's vacant. Do what you think is right, and if it turns to be a bad idea down the road, then oh well, you learned something at least.

Just do what you feel is right, it's what I've been doing recently, and although my family has told me to get my head checked, it's been great!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[healthstatus]

Unless you have a HUGE number of distractions at your office, do not get an office until you need it. Because once you get an office, you have to decorate it, get signs, insurance, and more that are all TIME and MONEY SUCKING. Take your laptop to the library, the park, or some other business friendly environment if you just want to get out of the house.

 

[Yury]

How hard will you suffer if you'll try and that won't work? If that won't hurt you much, why not to give it a try?

Some of my friends who could work from literally anywhere prefer to rent a little office (or at least a place in a co-working space etc), and they really are way more productive there.

So if the terms are fine and it won't be too much of a strain for you, probably you should just go and try it out yourself

 

[BigRomeDawg]

It sounds like you really want the office if you had all this time in between when it was being rented, and you still want it enough to talk to the owner after seeing that it's vacant. Do what you think is right, and if it turns to be a bad idea down the road, then oh well, you learned something at least.

Just do what you feel is right, it's what I've been doing recently, and although my family has told me to get my head checked, it's been great!

come on, it's not about feelings it's about math.. why sacrifice such a big chunk of your bottom line when revenue is scarce and you have no startup capital? Business decisions need to be calculated not just made because they feel right. If you don't have employees and especially if you don't have sales, you don't need an office

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Jakeeck]

come on, it's not about feelings it's about math.. why sacrifice such a big chunk of your bottom line when revenue is scarce and you have no startup capital? Business decisions need to be calculated not just made because they feel right. If you don't have employees and especially if you don't have sales, you don't need an office

If she thinks an office will make her work hard enough to make it worth it, then why not?

It's the same reason why people move away from home even though they can live under the comfort of their parent's roof. Some people need to have a slowly bleeding bank account as something chomping at their a$$ to get something done. Impending doom is the only way for some people to stay motivated.

 

[Guest3722A]

Hello Fastlaners!

Some Background: I'm a 19 year old aspiring entrepreneur. I decided to forgo college as I feel that college has no use for me. My income is between $500-$1000/month and all of that comes from doing private guitar lessons, chess lessons, tutoring, babysitting etc. It's a means to cover my expenses and support myself.

I've had an idea for a while (my boyfriend actually gave me the idea. He's the one that got me to read a bunch of business books including TMFL and introduced me to this forum.) and I've made flyers and distributed them and listed my offline service-based business on all the major local business sites. I've gotten a couple of calls (by couple I mean 3-4) as well. It's a unique idea and this actually doesn't exist (which can be a good or bad thing based on my execution!) and I've supplemented it with a service that does already exist (Kind of like the saying, "Give people what they want, Sell 'em what they need.")

The Situation: I've been working from home all this time, however I just feel like I'm not doing everything up to my full potential. I'm currently working on mindset and fitness and I'm working my way towards the point where the ideal entrepreneurial mindset will be second nature to me. But anyways, I'm seriously thinking of getting an office.

I saw an amazing and cheap office about a year ago and tried to convince my boyfriend to rent it with me at the time, but not only did he not agree, but he talked me out of the idea too. Once again, the same office is up and I've talked to the guy and he's willing to be flexible with me on a lot of terms (Eg, monthly lease, discounted security deposit) and I've set an appointment with him for tomorrow.

I feel like if I get an office, I'll automatically work harder and make it work since the pressure will be on me to recover the money which will initially come from my savings. I talked to my boyfriend and he put doubts in my head again and I'm just looking for some advice regarding this move from some fellow fastlaners.

What do you guys think? Should I go all in and get an office? Do you think that's a good move? I would really appreciate all input! I apologize if my post was too long. Thanks

I like the "burn the bridge" mentality alot. Its what forced me to fight for success. However, in your situation it doesn't sound like you have a set model to copy, where someone else is doing your idea and requires the use of commercial space to be effective. Nor does it sound like you have enough personal income to support something like this while you're building.

Getting an office requires insurance, utilities and city inspections that will lead to an occupancy permit. All of which cost money above and beyond the monthly lease payments.

I don't know what you have saved either, but if its not a comfortable enough amount of cushion, and your plan isn't concrete enough to show how these additional costs will be covered, I would definitely have to say no at this point in the game. In my opinion, a solid idea of how to connect the dots, pre-orders or a waiting list of some sort AND an adequate cushion of savings to support this type of move comfortably should be in place first. And after all that, then decide if this is something that is truly needed for you idea to grow.

 

[sparklyshadows]

Because once you get an office, you have to decorate it, get signs, insurance, and more that are all TIME and MONEY SUCKING.

It's an office in a building, so I won't have to get any signs. Also, since I don't intend on having any valuables there, I won't need insurance either. As far as decorating goes, I just intend on getting free furniture off of craigslist (I live in a city where people often give away good quality furniture in good condition for free.)

Just do what you feel is right, it's what I've been doing recently, and although my family has told me to get my head checked, it's been great!

Thanks for the insight!

Some people need to have a slowly bleeding bank account as something chomping at their a$$ to get something done. Impending doom is the only way for some people to stay motivated.

This is exactly it! I think I do better when I'm under pressure It motivates me to try harder. I've always done my best work under pressure. Plus, I feel like, personally, I tend to slack off when I'm not accountable and the money invested will be a way to be accountable to myself. But then at the same time, I'm just apprehensive of the possibilities, both good and bad, which is why I'm asking for more opinions on here...

So if the terms are fine and it won't be too much of a strain for you, probably you should just go and try it out yourself

The terms are monthly and the office will only be $400/month. Also, I was thinking I could sub-let the office to someone else a couple days a week maybe to recover costs. So, even if this idea ends up being a complete failure, I'll only lose out on a couple hundred dollars.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[healthstatus]

I don't intend on having any valuables there, I won't need insurance either.

Sorry, but if the mailman trips on your doorjamb at your business and gets hurt, your business is responsible, if you start a fire by accident or set off the sprinklers, and burn up a floor or two, you will have to pay.

The terms are monthly and the office will only be $400/month.

most times, they want first and last month rent and a security deposit, have you checked the terms. Many places restrict sub-leases. Check it out before you sign anything.

 

[oldscool]

...so you make 500-1000 a month and want to spend on office space? I think you were given an excellent idea. Hack environments that others have already created infrastructure for you. Libraries, coffee shops, and, the like. What you really want is comfort. You can get that on someone elses dime. Now, when one day you become a mogul, then, if you want an office with a theatre screen, and, google multi complex centers feel free to knock yourself out. In the meantime, save for these lean times

 

[Travis.I]

How will the office increase productivity?

To me, it looks like it will just give you the feeling of somewhat like a entrepreneur. In an office. I think. .

IMO, your income is rather low, and this office isn't going to make production any faster its self. I around the beginning of a new ear in marketing for me, I wanted a office n shit. I was getting into things that were just useless as F*ck at the time. I was starting a CPA network, and still while the scripts were being created, I was getting way ahead of myself thinking about offices, business cards, etc. Just a lot of things that weren't exactly needed.


Let's say my income was about $900 a month at the time. Things didn't go as planned because of a few "errors" along the line. Can't be bothered to write it right now...

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[sparklyshadows]

I around the beginning of a new ear in marketing for me, I wanted a office n shit. I was getting into things that were just useless as F*ck at the time. I was starting a CPA network, and still while the scripts were being created, I was getting way ahead of myself thinking about offices, business cards, etc. Just a lot of things that weren't exactly needed.

Thanks for sharing your experience! Perhaps, I'm just jumping the gun in getting an office.

I'm going to go meet the guy to further discuss the terms to just get a good idea about all the other possible expenses if there are any (like some of you have mentioned insurance and the like) and I think I'll make a final decision by the end of today. I really appreciate all your guy's input and giving me all these different perspectives to consider!

 

[ZCP]

point 1 ...... (and all business decisions should go through this screen) ........ what value does this provide to the end client?

point 2 ..... how many sales have you landed while worrying about an office?

point 3 ..... if it is purely for your own motivation, then easy.....use that as an advantage. Write this on a piece of paper and hang it where you can see it while working......I will obtain my office after my 5th sale and completed project.

Now get back to providing value!

 

[sparklyshadows]

Alright, so I actually ended up looking at 2 offices! The business I'm starting is in the education field and is related to a service that doesn't exist. To reel people in with something they already want before offering my service, I decided to offer tutoring as well.

So, the second office I looked at, happens to be literally opposite to a high school. You basically cross the street and you end up at the high school. Furthermore, to the left, there is a christian K-12 school. This is one of the most busy streets in the city and 25K people drive past this location on a daily basis. The landlord already has insurance covering all the offices in the building so he assured me I wouldn't need my own. Plus, since it's education related, I can always have parents sign waivers (Yes, I know waivers often don't do shit if someone decides to sue you, however, I worked for two tutoring company's in the past, and both of them used this as an added measure.)

This second office is willing to provide all the furniture for free and even allows you to put up signs out front (I looked into how much signs cost and it's only $30-$40 bucks for a decent sized vinyl sign. I design all my own stuff so I'll only have to pay for printing. Also, I thought about it and it's not like I have to immediately bombard the place with signs. I can always get one to start off with.

The best part, it's only $350/month.

what value does this provide to the end client?

My clients will have a set location to go to. The location will be super convenient for them as it's right across the schools where I'll probably be getting most of my business from. It will also instill a level of trust in them if I have an actual location.

if it is purely for your own motivation, then easy.....use that as an advantage. Write this on a piece of paper and hang it where you can see it while working......I will obtain my office after my 5th sale and completed project.

That's a great idea! However, I feel as if not having an office is actually acting as an impediment to me not getting clients. If it was a retail business, I wouldn't even want to get an office since it would be a waste, but since it's a service based business, I think it's just making things harder.

So what do you guys think based on this new information?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Lagron]

Impending doom is the only way for some people to stay motivated.

I agree with this... it is when a person is at his or her lowest point, that leads to them making drastic and important changes, because not doing so would lead to catastrophic outcomes, financially, mentally etc.

Get the office, if you don't get sales, you lose the place etc... I don't think you want to suffer that humiliation, that defeat. So you better work- And so you will work and so you will succeed.

 

[DennisD]

Impending doom is the only way for some people to stay motivated.

If she thinks an office will make her work hard enough to make it worth it, then why not?

The same reason couples shouldn't try to have a kid because they think it'll fix their marriage.
Renting an office will NOT make you work harder or change your mindset.

It's an external factor not tied into primary survival instincts.
Impending doom only works when it's immediate, not 3 steps removed.
The worse that will happen is: you lose the office, which isn't enough of an "impending doom" to noticeably change your behavior.

The best part, it's only $350/month.

That's not a lot of money. What you should do is draw a metaphorical line in your income.
Once you make $500/month ON TOP OF what you're making now, get the office.

I promise that setting up such a goal and rewarding yourself for it in this way will be beneficial in MANY more ways than you've got your mind on right now.

 

[The-J]

$1000/mo? No.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[DennisD]

That's a great idea! However, I feel as if not having an office is actually acting as an impediment to me not getting clients. If it was a retail business, I wouldn't even want to get an office since it would be a waste, but since it's a service based business, I think it's just making things harder.

This is a rationalization by you to justify your emotional need to go "all in" and get the office.

Your client losses are potential, not actual.
You believe that if you had an office you'd get MORE clients, which may or may not be true. However, the lack of an office isn't acting adversely to your ability to get clients now.

Once you have a client say "If I can't come to YOU, I don't want to do business with you."... THAT's the point at which it's negatively impacting your biz.

But if a customer had said that to you, I think you would have lead with that.
And I don't think this thread would exist.

 

[BeingChewsie]

The landlord already has insurance covering all the offices in the building so he assured me I wouldn't need my own. Plus, since it's education related, I can always have parents sign waivers (Yes, I know waivers often don't do shit if someone decides to sue you, however, I worked for two tutoring company's in the past, and both of them used this as an added measure.)

Those waivers mean nothing. Nothing. Less than nothing. My husband is an attorney, he would froth at hearing a business had no insurance if somebody got hurt, that is money in the bank. You can't run a business that people will come in and out of without insurance. OMG. Don't even think about it. Trust me. Little Jonny will trip and you'll get sued. They will get a judgement and you'll be doing indentured servitude to pay it off. You'll get in an accident going to or from your office, you'll be at fault and the attorney for the other side will go after your business...and get it. Scary. Some risks in business are worth taking, that is not one.

Unless, your landlord's policy includes you and your business as "additionally named insured" then the insurance policy likely covers him and not you. Be sure to check on that too.

Remember decisions you make today can have profound effects even decades from now.

. My income is between $500-$1000/month

You can't run the business out of your house until you grow a little? I'd hold off on the office for a while.

You don't have to share your business, but my husband sold an ed-tech/online tutoring company late last year, so if I can be any help in the K-12 education space please let me know. Feel free to PM me.

 

[Vagabond 007]

I don't understand why you are even considering an office. The math is TERRIBLE.

You make between $500-$1000 a month and want to spend 35+% of that on something you don't need.

An office MAY make you more money. But you don't know that, you're just doing some wishful thinking. An office WILL take a third of your monthly income. That is a fact.

As others have said, go make some more money and then look into it again down the road.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.