Is it worth moving to business premises?

[citycm]

My fiancee and I run a web design business from home and I also work for 2 companies (part-time) doing their web development. We are now considering moving to a small office (either above a shop or in a cheap business park) but wondering if this really is something we should consider. We've found a couple of units in a business centre locally for £50+Vat per week which include business rates for the 1st year.

On the one hand, it might look better to potential customers if we have a proper business location (and somewhere clients can come for consultations, etc). What do others think of this? Am I wrong?

On the other hand, we're not so overworked that we couldn't continue to work from home so are there any other advantages to having business premises along with associated costs such as business rates/phone lines/etc?

Thanks in advance.

 

[saxondale]

the idea this year is to cut costs to the bone - no offices

 

[citycm]

the idea this year is to cut costs to the bone - no offices

Bit of a generic comment don't you think?

Something worth considering is I'm not 100% sure where we stand running a business from home as it's a rented house.

 

[saxondale]

Bit of a generic comment don't you think?

Something worth considering is I'm not 100% sure where we stand running a business from home as it's a rented house.

you asked a generic question.

 

[citycm]

you asked a generic question.

I'm looking for some advice which is what these forums are for. 'Cut costs - no offices' doesn't work for everyone but thanks, I'll keep it in mind.

 

[saxondale]

advice?



one assumes you own the .co.uk of your user name - you need to get your address on there.

if not, search round the forum for "passing off"

 

[citycm]

advice?



one assumes you own the .co.uk of your user name - you need to get your address on there.

if not, search round the forum for "passing off"

I don't want to openly advertise my home address on the website.

Besides, who would I be accused of 'passing off' as? This has nothing to do with having the address of the website or not.

 

[saxondale]

I don't want to openly advertise my home address on the website.

Besides, who would I be accused of 'passing off' as? This has nothing to do with having the address of the website or not.

yes it does, see it has everything to do with the legal requirement to put your trading status and contact details (including address) on your website - you don`t have a choice in the matter, hence why we have an office even if we can`t afford one.

level playing field and all that.

 

[vinnyjones]

its looks better so i would do it!

 

[popunder]

I don't think anyone would expect a one/two-person web business to necessarily have an office, you'd probably want to do consultations at the clients' premises anyway (they'd probably expect you to go to them). If you really need to you can rent serviced office meeting spaces in most towns by the hour or half-day, so I wouldn't take on the fixed costs of an office just yet. You're fine running a web business from home, rented or not.

 

[citycm]

yes it does, see it has everything to do with the legal requirement to put your trading status and contact details (including address) on your website - you don`t have a choice in the matter, hence why we have an office even if we can`t afford one.

level playing field and all that.

Thanks - that's the kind of advice I was looking for. However, as I understand it, 'Passing Off' is benefiting from another's goods or business
reputation. Looks like we'll be getting an office afterall.

 

[Esk247]

I also run a web design business as well as a few other mini-businesses and they are all operated from the one premises. Ok so we have the benefit of offices on the ground floor but from the outside it looks like a residential property on a residential street.

There is no problem advertising your private home on your website in the contact section. I have done it since 2005 and never had an issue.

If you are expecting customers to come round a lot then you may have a different problem but for home office use, a normal home is fine.

Check your home insurance. Make sure your computers are covered.

 

[Esk247]

you want to have an office just so you can stick the address on your websites?

get a p.o. box...looks less authentic but its cheaper.

 

[popunder]

Is it really worth £260 per month to avoid putting your home address on your website?

 

[citycm]

Is it really worth £260 per month to avoid putting your home address on your website?

Well obviously that wouldn't be the only reason so that £260 would obviously give me office space so we'd have lower utility bills at home (at utilities are included in the price of the offices we're looking at) and we'd get our additional bedroom back.

It all depends what our tenancy agreement at home says I guess.

 

[estwig]

I done working form home, then got an office and now back at home with an office in the garden. Clients like the fact they know where I live, they accept the fact I am a one man band and don't need premises, the respect my honesty when I tell them. It works for me.

I had my home address and phone number all over the intertubes for many, many years, not once had a problem.

 

[Lee Jones Jnr]

the idea this year is to cut costs to the bone - no offices

One size doesn't fit all.

 

[citycm]

Having just found my tenancy agreement for my house, it says "Not carry on at the property any profession, trade or business whatsoever but use as a private residency" so looks like we have no option really.

 

[Lee Jones Jnr]

Wether or not you would benefit from dedicated business premesis is a question only you can really answer.
Do you now or do you soon intend to have clients visit you?
Do you need or want the space at home back?
I realise that the costs involved are very small, but is it affordable in your particular circumstances?
Would you benefit from physically 'going to work' as motivation, in much the same way that going to the gym helps some people to get in the mood to exercise rather than training at home?

 

[citycm]

Wether or not you would benefit from dedicated business premesis is a question only you can really answer.
Do you now or do you soon intend to have clients visit you?
Do you need or want the space at home back?
I realise that the costs involved are very small, but is it affordable in your particular circumstances?
Would you benefit from physically 'going to work' as motivation, in much the same way that going to the gym helps some people to get in the mood to exercise rather than training at home?

Thanks for the questions. Definately made me think.

In all honesty, as others have said, we're more likely to visit clients rather than them visiting us.

We don't need the space back at home but it would be nice (or we could downsize to a smaller, more affordable rental house).

An office at £50+vat per week would be affordable in our current circumstances and yes, would definately help with motivation and distractions, etc.

 

[Matt1959]

IMO theres a few people out there who persuade themselves that having seperate business premises automatically makes them a proper business that will earn more money overnight. Its the profit you make that counts and the cost of an office rent/ rates/ electric/phone/heat/insurance/ commuting all add up to much more than the headline rent.

 

[blacklove]

I dont think you need an office, it's it's only your site your building, then you can always do it at home,

 

[JohnnyCash]

You say it will give you a room back... if you are wary of taking on extra costs but want to separate the office environment from the home why not rent the unit for work, and rent out the room at home to a friend if you can? Even if you had to take a reduced rate for it.

I might be wrong, but I think the income from renting the room out would be tax free, whereas the money you spent on the office rental would be tax deductible.

 

[saxondale]

One size doesn't fit all.

yawn - go on then, justify this statement ..............

 

[Drpepper]

If it helps, there is a very large mutual society who have some 300 odd local offices around the country, many of these were (I say were because this was about ten years ago so it may have changed) in anything from a caravan in a back garden to a spare room office. Many were also in business parks, High Streets as well.

If you are working from home though, please don't name your house something like "web design house" - just looks bleedin' ridiculous when you clients turn up to a three bed semi in suburbia!

 

[ecenica]

On the other hand, we're not so overworked that we couldn't continue to work from home.

The quote above says it all.

I would not rent an office until you really need it. if you're questioning the need, then you most likely are not at that stage.

From experience I know that the wrong office, in the wrong location can kill creativity dead. And creativity is ultimately what people pay web designers for.

If you're worried about what the address says to your would-be clients I would consider a virtual address. Cheaper, more prestigious and you can still work from home.

That said, does the address even matter to a company's brand these days? For example, how many of the 500 million people who have trusted their email address to Facebook actually know where their office is?

 

[Chris Ashdown]

Some people find it easier to settle down and work in a office away from home and the distractions home life can bring, It's the mentality of leaving Home and going to and from home

The costs of a little office can be tiny, we were paying £3000 per year for a old 1500 sq ft place with 750 ft of storage and the rest 5 offices so look around, councils often have a list of starter offices on their web sites

As others have said you will probably be required to go out to your customers rather than them coming to you

Good luck

 

[WaterCoolersDirect]

Hi,

Really good to hear you have started a successful business from home - it is very rewarding this way and great when you achieve success, we ourselves started in a loft conversion eight years ago progressing to owning our own eight thousand square feet of warehouse and office space.

That said, ours is a water cooler distribution business with a strong regional and UK wide base of customers so our business depends on our profile and service competence which stem from having the right people in the right premises.

I would therefore suggest the following questions to you in order that you can better make a judgement on renting new business premises:

1.Will your business shortly need to to hire more talent to fulfil new clients projects and commissions?

2.If so will this require you to find more space?

3Having a low overhead consultancy can impress clients in as much as they will be potentially benefiting from reduced fees? Will this change with the new premises. will the quality of your work in the new environment make up for this?

4.Finally Will your business growth man that a business premises could assist you to win significant more business?

Good luck with your decision

Best Regards


Fred

 

[GGGSurrey]

There are pros and cons - as described above - to moving from home office to working office.

However if the decision is to rent a separate office, then I would make sure you have flexibility. Be happy to pay a little extra per month for the convenience of not having to sign up for a 2 year agreement for example.

 

[citycm]

Thanks for all the great advice. I've spoken to the landlady and she's definately not happy with the idea of us running any type of business from the house. The previous tenants ran a LTD company from the house and left with a significant amount of debt in the business name so that's probably why.

I have found a virtual office that will allow us to receive a small amount of post per week for £25+VAT per month. Does that price sound about right?

 

[gmoto]

What about something like Regus (previous company I worked for was based in one) - from what I understand they can do the the 'virtual office' stuff, but they can also rent you out a meeting room on a 'pay as you go' basis. You may even get a plaque in the list of companies in the entrance hall with the right package.
The receptionists at least are pretty professional so your clients won't know that you don't actually have an entire floor there or whatever .

 

[Lee Jones Jnr]

yawn - go on then, justify this statement ..............

You have shown on other threads that you are an intelligent boy/girl so I'm sure you don't REALLY need me to explain why every business doesn't have the same requirements.

 

[Drpepper]

Thanks for all the great advice. I've spoken to the landlady and she's definately not happy with the idea of us running any type of business from the house. The previous tenants ran a LTD company from the house and left with a significant amount of debt in the business name so that's probably why.

I have found a virtual office that will allow us to receive a small amount of post per week for £25+VAT per month. Does that price sound about right?

How would a virtual office help with the fact your not allowed to work from home? It's virtual, you can't actually work there :|

 

[Graemem]

How would a virtual office help with the fact your not allowed to work from home? It's virtual, you can't actually work there :|

If they form as a LTD using the virtual address then that removes the landladys problem? The business isn't actually associated with the address, though the work is carried out there? I think/assume this is ok...

 

[Drpepper]

If they form as a LTD using the virtual address then that removes the landladys problem? The business isn't actually associated with the address, though the work is carried out there? I think/assume this is ok...

That makes sense, but the op says the landlady doesn't want "any" sort of business run from the property, so I'm guessing that would mean actually working from home as well as there would be insurance and rates issues.

Then again I may be overcomplicating the issue

 

[Working First Aid]

Nearly all private rent contracts include the clause to prevent private businesses operating from your private home. This is there to prevent operations such as second hand car sales, which normally convert the front garden in to a show room.

An operation such as a home office, where clients will 99.9% of the time NOT be attending the property, should be ok. Just ask the land lady straight up, explain to her what you would like to do and assure her that the house will to all intents and purposes remain a private dwelling. She would most likely be fine with that.

You would need to double check your house hold insurance cover though to make sure you are covered, unless the office equipment is so limited that in the event of an incident you could argue it was all personal stuff.

Then, use a virtual office service as your business address. If you are a ltd company, just find a company offers registered address services. Your accountant should offer this, but others do too. Your address at home is protected this way, and you would probally end up paying half the monthly costs that you are currently looking at with a £50 p/w office you don't seem to really need.

That's just my 2c, no guarantees with any of it but see no reason why it wouldn't suit your business.

Shaun

 

[citycm]

Thanks again for all the replies so far.

What about something like Regus (previous company I worked for was based in one) - from what I understand they can do the the 'virtual office' stuff, but they can also rent you out a meeting room on a 'pay as you go' basis. You may even get a plaque in the list of companies in the entrance hall with the right package.
The receptionists at least are pretty professional so your clients won't know that you don't actually have an entire floor there or whatever .

I looked at Regus some time ago and they don't have anything close enough to where we want to be seen as being based - we're not after a prestigious location, we want to be 'local' (if that makes sense).

How would a virtual office help with the fact your not allowed to work from home? It's virtual, you can't actually work there :|

The idea of a virtual office would a) mean we don't have our home address on our website and b) as that would be our 'advertised address' there'll be no attention drawn to the house (either by the landlady or anyone else).

Nearly all private rent contracts include the clause to prevent private businesses operating from your private home. This is there to prevent operations such as second hand car sales, which normally convert the front garden in to a show room.

An operation such as a home office, where clients will 99.9% of the time NOT be attending the property, should be ok. Just ask the land lady straight up, explain to her what you would like to do and assure her that the house will to all intents and purposes remain a private dwelling. She would most likely be fine with that.

You would need to double check your house hold insurance cover though to make sure you are covered, unless the office equipment is so limited that in the event of an incident you could argue it was all personal stuff.

Then, use a virtual office service as your business address. If you are a ltd company, just find a company offers registered address services. Your accountant should offer this, but others do too. Your address at home is protected this way, and you would probally end up paying half the monthly costs that you are currently looking at with a £50 p/w office you don't seem to really need.

That's just my 2c, no guarantees with any of it but see no reason why it wouldn't suit your business.

Shaun

As I said, I have spoken to the landlady and she has stated that she's not prepared to allow us to run any business from the house. However, as has been said before, she can't really control whether we simply 'work from home' for a business that is registered elsewhere.

We're not a LTD company and don't plan on being for some time yet as the paperwork then starts to get ugly but as I say, there are a couple of local providers that can offer us virtual office space for £25+vat per month so seems ok as long as we can get away with doing it this way.

 

[saxondale]

You have shown on other threads that you are an intelligent boy/girl so I'm sure you don't REALLY need me to explain why every business doesn't have the same requirements.

no, go on - seriously. You said not everyone has to count the pennies ...... how come?

 

[Lee Jones Jnr]

no, go on - seriously. You said not everyone has to count the pennies ...... how come?

Actually what I said was that a one size fits all generalisation isn't much use as the same solutions do not work for every business.

Not all businesses are struggling for example. Some are expanding and can better spend their time increasing sales than saving a few pence on stationary etc.

Whilst nobody ever wants to have unnecessary expenses some avoidable costs can actually be of benefit.

 

[saxondale]

Actually what I said was that a one size fits all generalisation isn't much use as the same solutions do not work for every business.

Not all businesses are struggling for example. Some are expanding and can better spend their time increasing sales than saving a few pence on stationary etc.

Whilst nobody ever wants to have unnecessary expenses some avoidable costs can actually be of benefit.

yes you said that - an example would be nice by about now!