Friday, August 19, 2011

Commercial Real Estate Blog ? PropertyBlast.com | Commercial ...

It?s comparison time. Home offices are simple to start with. It?s the lower cost alternative. But it is definitely not free. There are hidden costs start ups often don?t consider,eg adding a hard wired phone line or upgrading Web access.

Then there are the less obvious ones, such as the time, energy and cost of meeting people away from home. If you?re like most startups, you just meet at a coffee shop. You should to factor in the expenses (mileage, coffee for one or maybe two round-trip travel time, etc.) connected with the 10 to 15 trips you make every month. You could easily spend $100 a month on satellite meetings that may be held at your office, if you had one.

Next, allow for the possibility of sending a false message to a prospective customer who calls your business and the phone is answered by a 2-year-old. Or the dog is barking in the background while you try and work the deal. What is the cost of lost business because a customer gets the wrong impression about your capabilities?

Keep in mind that 1st impressions are everything. By not having a business space to meet and work from, you likely may be sending mixed messages about your capabilities. Most people I meet that are coming from a home office let me know a similar thing; it is so difficult to work from home because of the various distracting scenarios. Also consider that meeting at coffee bars is likely to be just as bad. While being an inexpensive option, cafe?s are generally pretty tiny and when filled to capacity have a lot of background chit chat that may be awfully distracting.

The base line idea is that it makes better sense to spend $300 a month on a small office, than to try and save the money by staying home and working from coffee shops. You?ll find that after you factor the costs and time expended commuting to meeting places, you?ll likely save more money and time by leasing a one room office space. This way you can stay put saving on gas and the cost of coffee for 2. You?ll also avoid commuting which is time that can be spent doing income-producing work.

We have been aiding businesses in the Minneapolis Commercial Real Estate market for several years now, and in my experience step one to a successful business is getting out of the nest and surrounding yourself in a formal and synergistic business environment. Obtaining office space is the 1st part of this process.

Elias J. Russell is a leasing agent and partner with JGM Properties in Bloomington MN. JGM Properties has 200 tenants from 150 square feet to 30,000 Sq in 10 office properties with over 1 million sq. feet. The buildings are in Bloomington, Brooklyn Center, Eagan, Eden Prairie, New Hope, Plymouth, Woodbury and Waseca MN. For more in-depth info about common questions in reference to office, warehouse, and retail space for rent, check our FAQ page. If you want additional info our site has a lot of info regarding the Minneapolis Office Space market.

Source: http://propertyblast.com/blog/when-on-the-lookout-for-office-space-consider-concealed-costs/

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