I have come to an understanding that clients were reluctant to come to me as I was a 'bedroom business' therefore have decided to take a big risk by renting out a city centre office.
The costs are very high - but I had to take the risk and see if it pays off - for my sake I hope it does
I've looked at office space a few times, but I cant justify it right now. I don't think anyone has ever chosen not to deal with me because I work from home, but how would I know? I can see how you may get more 'passing trade' having a shop front, but for me it's not essential at the moment. We're seeing more and more high street stores going into receivership, and with many small businesses living hand to mouth, why have that extra pressure of extra expenses, not only the rent but all the other costs like phone, alarms, insurance, utilities, staff to keep the office open business hours, etc.
I tend to meet clients at their place of work or a local hotel.
The best way of working is the way that suits you.
I work from offices and it does seem to pay it's own cost in saved advertising revenue and increased professional image.
Not sure if I could cover city centre type costs though. Mine are just offices on the first floor in a provincial town. Then again, footfall will be higher for you and I assume that you will be able to charge higher rates for your work.
Thinking about it now I wish that I had made the move sooner on two fronts.
1) You give a more professional image to others
2) You feel as though it's a work environment where your home will, at the end of the day, always be your home.
I don't know about you but my house was never as clean and tidy as when I was supposed to be working in it!
My rent covers all utilities except council tax and phone lines. Council tax I get free as a small business (don't forget to apply for your small business rebate).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I totally agree with you on point 1 and 2. When working from home - my house never quite felt like a proper working environment plus you were able to get distracted easily, in the office you are alot more disciplined.
I only pay rent for the office space I have taken - the rent includes all utilities costs and council tax - the only thing extra I pay for is Broadband connection.
Regarding affordability - even now I don't think I can - but in the long run I beleive it will pay off - The day I moved in, I got my first client who works next door I hope it gets better from now onwards
Who said business was easy - I am currently doing about 16 hours a day, but I live in hope that it will get better and easier
-- Edited by NA_AA on Monday 2nd of January 2012 11:23:54 PM
Like Kris and probably many others on here I have often looked at the possibility of moving to a office rather than the converted room at home that I have now, and like many it is the cost that stops me doing it.
Whilst in Plymouth we have many offices that offer flexible and quite cheap rents I have seen in other towns and cities they offer very low cost 'hot desk' offices where you can rent a desk for a short term and these seem quite attractive as you do have the advantage of meeting other people
I have been quite lucky and found an out of town office at a great price so it makes sense for me. Prior to that I worked from home for two years; however, did have a separate office space, which is the biggest factor.
One thing about being a bookkeeper and working from home is that you can use this as a selling tool. I.e. by offering a service where you go and visit them. It is amazing how much clients appreciate this. Even if it is just to drop off and collect records.
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Phil Hendy, The Accountancy Mentor
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If so a mentor may be the way forward - feel free to get in touch and see how I can assist you.
I set up the business whilst I was still in employment - I have only been working in the business full time for 3 months - 4 clients. Note that this is is very minimum marketing
Note that I have other business investments which is what is helping me - I think living off book-keeping work from 4 clients won't carry me far
-- Edited by NA_AA on Tuesday 3rd of January 2012 09:07:46 PM
I rent a shop on one of the main roads into St Albans. We've got space for three desks and filing space and, most importantly, our own loo! It's in a very busy thoroughfare with lots of small shops, a Morrisons and lots of free parking.
It costs £400 per month all in. It's been well worth it and I've been there two and a half years. Lots of window advertising space and a great big sign above the window ensures a fair amount of passing trade too.
-- Edited by Mad Liz on Wednesday 4th of January 2012 08:51:24 AM
Do you employ someone now to help with your business? If so has that helped spread the workload? This is something I have considered but I work from home at the mo and can't really justify the rent etc on an office plus with 2 children (older sch age), its nice to be around after school, although the oldest one doesn't need me now except for being a taxi!
It all depends what suits. I personally can't justify office space as I live about 30 seconds walk from the main town centre. A bedroom didn't work for me, far too easy to wander in and find something on TV, so I spent £12,000 converting an old rundown stable at the back of my house. People still have to traipse through a usually untidy house with kids, but the office is my own space away from family life. Once people get inside they comment on how great a setup it is, here I feel like I'm at work, even though I'm just 10 seconds away from home. I specialise in the SME, so a lot of my clients are based from home as well, therefore are a bit more understanding of the situation.
Granted, I don't have the advertising, and maybe not as professional as a town centre office, but the cheapest office I could get round here were 2 dirty rooms, up 5 floors (no lift), shared toilet/kitchen for £120 per week with no amenities included so my investment has more then paid for itself.
An accountant friend started from home, he now has bought his own offices, has 8 staff but is not making really much more of a net profit than what he did when he started out. Considering the extra pressure when running a team, HR issues etc etc (been there, done that), I really don't think it is worth it, but then, like I say, depends what suits, he didn't like working on his own, I prefer it.
Thats interesting that you said you converted a stable, one thought is to move house, so either can convert say a double garage or build something in the garden to suit. I agree that being away from the house is better, I'm currently working our of the spare bedroom and although its not a bad size (certainly not a box room), I feel that with personal paperwork and other peoples' paperwork I'm lacking on the storage front!
Office space near me is very expensive, so can't really justify it. Although where I live there are loads of small businesses so working from home doesn't put people off luckily.
thanks
-- Edited by Amanda on Wednesday 4th of January 2012 06:41:36 PM
Do you employ someone now to help with your business? If so has that helped spread the workload? This is something I have considered but I work from home at the mo and can't really justify the rent etc on an office plus with 2 children (older sch age), its nice to be around after school, although the oldest one doesn't need me now except for being a taxi!
thanks,
Hi Amanda. I've employed someone part-time for exactly the same length of time that I've had the office. However, I think she'll be going full-time soon.
I was looking into office space for my new bookkeeping business, however could afford it. Im currently in employment but looking to go self employed as my employment is dependent on funding so come March dont know where i will stand.
i have rented a office address from regus at £54 a month which i can use on my publicity, it gives a professional image and i can go to meet clients at their business place which is okay at present as i ahve only just started out so many fo the businesses i am approaching are sort of known to me. Once it picks up i will see the best way forward.
however within the current climate everything is so expensive, so it really all depends on what you can afford.
I think there is no issue that you are working at office or home but main thing is to manage work?and how you satisfy your clients?because client did not take interest in where you work?they take only interest in their work.
From my experience I have to disagree totally with that statement.
Clients seem to consider their financial representatives as having more credence if working from premises.
I was having a discussion with someone in relation to this the other day. Admitedly they were sitting accross the desk in my offices.
The gist of the conversation was that they had used a bookkeeper previously who seemed to have been doing a good job and then just disappeared without a trace.
To my mind the issue there is more to do with professionalism than location but the gist of this thread is about client perceptions and this client stated categorically that they would not use a bookkeeper or accountant again who did not have substance to their business.
He stated that he came to me for three reasons (not sure the priority that he gave each point but...).
1) Personal recomendation from an accountant that we both know.
2) that I am a limited company with 22 years history.
3) That my business has town centre dedicated premises.
This client is not alone in his beliefs and I would say that the bulk of the interest that I have receieved has been down to the impression given by the location rather than any other factor as all other things being equal I'm sure that there's very little difference in the service that clients get from me and other local professionals.
All in all the belief that I am coming to is that the more professional image that you portray then the more clients will come to you. Of course keeping clients is then purely down to one's skill as a financial professional for which it is immaterial whether you work from a cardboard box or top floor offices in canary wharf.
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Shaun
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Of those of you that work from home can i just ask, how big is your dedicated office space? I have room to wall off a space in my garage which will give me approx 8ftx13ft and i already have two office desks, 1 with a very large PC, printer and wall mounted 22inch monitor (desk about 4ft long) and 1 desk (6ft) is empty which i use for studying during the warmer weather. I own 2 tall filing cabinets and would have ample wall space for shelves. These are already positioned within the imaginary walls. Shredder and waste paper basket under the desk. This is intended to be a multipurpose small office as i intend to work within a company but i just wondered if any of you had really cramped working space?.
I disagree Shaun, are you suggesting if you had the presonal recommendation and the limited company status for 22 years, but worked from a home office that this guy would have passed you by? Theres an old saying that "It's nae the clothes that mak the man". The same could be said about a shop front. I accept that it will attract a different client group, but there are still more than a few clients out there who perceive that someone working from home will offer more value than those who have a building to pay for.
Neil, my office is a wooden lodge in the garden. It's 11ft x 10ft. Because it only houses me theres more than enough space. I have an L shaped desk and big comfy chair, 2 bookcases, a locakable metal cupboard, 2 printers, my pc with 2 monitors, phone, bin and shreader. I am purposely putting off getting a filing cabinet because I am doing all I can to run a paperless business. I've managed to get a great CRM package to keep all my client details along with copies of ID, letter of engagement and any letters from them or HMRC etc.
I did look at moving into a shop front office, but once I calculated the costs it wasnt worth while, then I realised that I can use working from home as a marketing strength.
So my space isn't too small then, like i said it will only be for general purpose and i don't intend to run a business from it but never say never, there will only ever be me using this space.
I just think that having a dedicated room away from the house that looks official will help me study better and also keep things tidy.
mines about 10ft x 8ft and I have out grown it already and not sure what to do next!!!! When I get rid of someones paperwork and then can see the floor again, someone rings me up and says so and so gave me your number can you help me help!!!
Unfortunately I always like to help especially on a recommendation so end up with more!!!!
I am purposely putting off getting a filing cabinet because I am doing all I can to run a paperless business. I've managed to get a great CRM package to keep all my client details along with copies of ID, letter of engagement and any letters from them or HMRC etc.
Kris
Would you mind telling me a bit about your CRM package please Kris? I've been looking into this and am not sure what direction to go in!
It's called Amphis Customer. I tried a lot of the free ones, and the expensive ones but none of them seemed to do what I wanted, or they were too complex. It's only £99 and has a free trial period (http://www.amphis-software.com/products.htm). It can deal with invoices and quotes as you'd expect, but you can also scan documents and assign them to clients, or record emails and telephone calls. I think it's great for my business.
They also have a free time tracking software in case you charge by the hour.
I try to work from clients premises as much as possible, as Phil mentioned it works really well for a lot of my clients. The problem I have when I have to work from home is that my work area is in my living room (i live in a modest 3 bed and have 2 two teenage sons). Inevitably it can be hard to "switch-off" of an evening / weekend because I can see my workspace which is a constant reminder.
I'm in the process of sorting an office because I need someone to work with me part-time and I need the space. So to answer the OP, I don't think there's a right or wrong answer and will very much depend on your circumstances and access to finance .
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Tony
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I hope it gets better from now onwards
