On the move - is it time to get your first 'proper office'?

Many small business owners successfully run their operations from their spare room or kitchen table and that suits them. A lack of space and homely image, however, often prompts owners to look for their first ‘proper’ office.

Peter Gradwell, who started up his internet services business in his university bedroom in 1998, says it’s often a matter of having the right facilities in the home office that make the difference.

“Some businesses are well suited to being run from the spare room; it’s cheaper than renting an office and if it’s just you and maybe one member of staff then it can work well. I moved into offices because I was employing more people and didn’t want them crowding my flat!”

As well as personal space it’s also worth considering whether your home office is equipped to run your business. There is the technology available, however, to support unwilling movers, and a well equipped home office can save you the cost of renting office space. Alastair Carnegie, who runs commercial energy brokers Total Energy Solutions from his home office in Cornwall, uses Gradwell’s Voice over Internet Protocol (VoIP). He said:

“I’m reasonably tech savvy anyway, so I knew there were other options to having a huge phone bill every month. Using VoIP means call costs are cheaper and because it’s bundled in with my internet, it keeps a lot of my running costs together and fairly consistent. Another great benefit is that you don’t have to keep adding expensive phone lines as you expand and calls are free between offices, overall a really good option”

As well as keeping the cost of calls down, many business owners find that home broadband does not have enough capacity to support the amount of information they need to send and receive the information required to keep the business going. Home broadband can also be problematic if there’s a fault on the line or when other users start to use the internet elsewhere in the house:

“For home broadband users that only need the internet for leisure,” Peter explains, “it’s just an inconvenience if the line is faulty and the internet slows down, but for businesses it means a loss of working hours and, potentially, new business.”

One of the solutions to this is Ethernet First Mile broadband (or EFM), which is made up of up to four copper lines that carry the data, rather than one with home broadband. This means that if there’s a fault on one line you experience a slight slowdown of the internet as the others carry on working, rather than a complete loss of connection.

Judith Ludovino, who runs her PA business from her home office, has recently had EFM installed. She said:

“My business relies heavily on my phone system and having a good internet connection. If I can’t get messages to my clients promptly then I’m not doing a good job and that has a direct effect on my business, particularly as I rely on word of mouth and recommendations to grow.”

Peter Gradwell’s top tips when considering moving into a ‘proper’ office are:

• Do you need the space? Think about your staff (if you have any) and whether the extra space is worth the cost.

• Can you afford it? Having to pay rent every month is a commitment and could put pressure on the business. Don’t forget the service charge, cleaning costs, utilities and furniture costs – they all mount up!

• What image do you want to portray? If you are dealing in professional services clients will expect a polished meeting space; no matter how tidy your kitchen is it doesn’t scream ‘professional’. If you’re a creative type or you don’t meet your customers face to face very often then it may not be necessary.

• Where do you want to be? When I moved into my offices in Bath I needed quite a lot of space but the nature of my business meant I didn’t need a shop front, so now we have fairly spacious offices in a quieter area of a beautiful city. It’s all about weighing up your priorities.

• Be prepared for a stricter working day. If you’re working from home it’s easy to pop into the kitchen for a break or to take a longer lunch if business is quiet, but sitting in an office with a team of staff means you’re supposed to set an example!