Every penny counts when starting a small business in a dire economy. Lending is limited, consumer spending is at a standstill, and an already slow start to the road to profit moves at an even slower pace. Therefore, success is greatly measured by one’s ability to streamline systems and minimize overhead.
Young entrepreneurs must understand this before they ever think about opening an office. In fact, modern entrepreneurs ought to consider how skipping an office, or any brick and mortar component of their business, could be the smartest way to cut costs and maximize profits in those tumultuous first few months.
The following are a series of reasons why the traditional office is something that most startups can do without:
The Cloud Connects
Inter-employee communication, access to data, and real time progress updates can all be executed and determined via cloud service technology. Whether it’s through a well designed independent site or through cloud services, what used to require a physical office can now be achieved via digital means. But bear in mind that if you’re using cloud computing for your virtual business, you’ll need server security to protect your information and identify threats.
The Salary is Lower
When you formulate a fair salary, the costs of commuting ought to be factored into your final figure. If your company can operate through remotely placed workers, smaller salaries can be offered at the start. Several thousand dollars worth of payroll can be cut as a result and instead reinvested into other aspects of the company.
Your first reaction here is probably to say, “There’s no way my employees will take lower salaries.” But the reality is, many of them will. And even if you don’t decide to alter existing employees’ salaries, you can implement this new scale for future employees hired to work remotely.
The Overhead is Eliminated
Rent, utilities, and everything from desks to paper towels can be skipped if your business can exist without an office. This equates to astronomical savings in both the short-term and the long run. While not every ounce of overhead can truly be removed, the “necessities” of running an office are far from a requirement in the modern age.
The Culture is More Productive
Several studies and surveys have shown that workers are much more satisfied with not having to report to an office every day. As obvious as this sounds, what may sound surprising is the fact that these same studies also reveal that remote workers are ultimately more productive as a result of this boost in happiness. Meetings can always take place via Skype or the local coffee shop – otherwise it seems safe to say that giving your workers more freedom serves as a benefit, not a detriment, to your business.
Few options exist in terms of saving money on a startup. While not every young enterprise has the luxury of working outside the confines of the office, those that can ought to do so for the simple sake of savings. The risks are minimal while the rewards are plenty. At a time when starting a business couldn’t be any harder, young startups couldn’t ask for anything more.