Office Space, Thinking Outside the Box

Office space can be a drain on resources for start-up companies. Most landlords and commercial real estate brokers demand 3-5 year lease terms and personal guarantees when securing an office. This is usually not an ideal requirement for new companies who are looking to grow and avoid extra liabilities. I recommend thinking creatively about what your office space needs are and what they might be. I’ve found that thinking ahead and identifying creative approaches to office space can be a great way to save time and money.

As I mentioned in an earlier post, the first way to creatively deal with the need for office space is to examine staff. Minimizing the workforce for my companies through independent contractor agreements, internships, and sweat-equity arrangements reduced the need for lots of office space.

Another great technique is finding co-working space, which are flexible and allow you to rent by the day, month, or year. With the increase of digitally-based companies, co-working environments can be great solution for start-ups that don’t have a big footprint and want to interact with other like-minded people. The key to co-working spaces is that they foster collaboration. FastCompany recently published a great article on the benefits of these types of arrangements.

Shared office space also is yet another great alternative to leasing that encourages collaboration and provides opportunities to share your ideas with others. There are dozens of way to take advantage of sharing office space with other companies. For example, as they’ve cut back during tough economic times many companies have more office space than they need. They are losing money on that excess space and are often willing to sublet the space. That is why companies like PivotDesk got started. PivotDesk was designed to match small businesses with larger companies that have more space than they actually need. You essentially get to rent a desk or a cubicle for a flat fee. The nice thing about the arrangement is that is can be done with the click of just a few buttons.

Actual shared office space companies are another approach. Companies like Regus have a global footprint that allows small companies to lease individual offices. This cuts down on the time needed to find space, set up internet, hook up phone lines, and maintain these services because everything is included in an office package. You have access to a receptionist, conference rooms, kitchens, and everything you need to just set up your computer and get started.

Another topic I covered in a previous post also can be used to find office space: bartering. The art of bartering is making a comeback when it comes to shared office space. Platforms like Craigslist give start-ups the opportunity to reach out to companies who have space and are willing to allow people to use it for a service in exchange. I ran across a great Craigslist posting recently in Philadelphia where someone who had just started a new counseling practice was willing to offer administrative services in exchange for free space. Depending on the type of business you have, you could also ask a client or vendor if they have excess space. Barter for use of a boat, timeshare or other asset / access you may have. Bartering is fun because it is only limited by your imagination.

Even though there are lots of options, sometimes you have to think really outside of the box. When I launched GetLoaded.com, I had a tough time finding space that didn’t require at least a three year lease. Also at the time, the cost per square foot for commercial space was very inflated. So instead of renting office space, I rented a house. It was ideal because I could rent the house on an annual basis at a much lower cost per square foot and the layout of the house was ideal for desks and a conference room table. This setup got even better when one of the programmers had to move from North Carolina. Instead of him renting an apartment I offered him the upstairs in exchange for a smaller salary. He took it and the arrangement worked out perfectly.

There is no one solution for office space needs and I encourage you to be creative when thinking about office space. Saddling a start-up business with a huge liability like a 3-5 year lease can be tough when resources are limited. Especially when there are so many alternative solutions available.

Do you have a unique office space story? Feel free to share it in the comments section.

Source: Forbes