There comes a point in any business venture where you have two options. When it comes to contemplating them, neither can seem that attractive.
Option One: You remain at the point you are at. This may even involve turning down new customers or business because you don’t have space or time to meet new requirements.
You’re accurately aware that you’re losing money, but you’re just not sure you can expand.
Option Two: Take the risk and expand. This can feel like a jump into the dark. You’re acutely aware that eight out of ten businesses fail, and you don’t want to be another statistic.
This is an issue most commonly faced by lifestyle businesses. It’s a business you have been running from home. You offer services online via an internet connection while your cat sleeps at your feet. Or perhaps you make your own products, and you wrap them in front of the TV with a mug of coffee in hand. If you’re good at it, soon, you find yourself facing the question of whether you need premises.
As with most things to do in life, the best solution is to go through the pros and the cons. Only if you are honest about the situation can you see the way forward. Taking on premises is a huge expense, and contracts can be committed to that you’d still be required to honor even if you lost money. So let’s crunch the facts of expanding your lifestyle business out of home.
Pro: You Instantly Become More Professional
Having an office address and a location to meet clients or customers immediately makes you seem abler. Some buyers may not trust the idea that you work from home, judging it as more of a hobby for you than a real business venture. This is flawed thinking, but you can’t control it – you just have to be ready for it.
Con: It’s Expensive
There’s no doubt that office fit out costs can be high, not to mention the initial rent of premises and other expenses like insurance. You’re going to have to have either the money in the bank or reliable capital. Don’t be tempted to borrow against your home. This is a grave error, and if your businesses fails, your home could go with it.
Pro: You Can Separate Work and Life
One of the major downsides of working from home is that you never really know when you’re finished. By having a specialist space, you can create a proper balance and reclaim your home as a sanctuary.
Con: The Upheaval Can Impact Your Business
It all depends on how tight your profit margins are. Can you afford a couple of weeks to move into new premises? During this time you are unlikely to be able to offer services and products at the same level. You don’t want to annoy customers by not being available, so if you do go down this route, make sure all regulars are well aware of what is happening.
It can seem like a huge jump, but if you’re serious about your business, it might just be one you have to take. So long as you are sensible about the financial aspects, this is a vital way for your business to grow.