Making The Mover From Home Office To Renting A Space.

ultimatetouch

I feel like renting a store front would greatly seperate business from home. Especially with 2 kids running around the house and a crying baby.
How many of you guys have store space or a seperate office outside the home. What are the pros and cons? I could imagine the overhead is a con. The image and job adress certainly adds credability. I usally like having my address on as little as possible since its my home. I would think you could make some money off the signage on windows depending on the location.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

KillerToiletSpider

My boss has an office/ warehouse in a new building near an expressway, one that he bought cheap before they expanded the expressway, it is worth twice what he paid for it now. I have an office there, I occasionally visit it to use the copy machine. We have no signage, but we gain the storage that would exceed both my bosses and my garages capacity, though we both have spillover in our garages anyway. My boss has a secretary to answer the phones, handle payroll, and track material deliveries, so the office makes sense for us.

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dougchips

I have a office about 5 minutes from my house.

PROS:
Business image- A real business has a business location, not a basement room or corner of the garage.

Meeting place- a place to meet vendors, interview subs....... I do not want these people at my home.

Quiet workplace- a place to work and conduct business without the "home' background noise. I have a 18 month old that loves to scream, she is not at my office.

Cons:

Monthly Rent

A separate internet connection

Not having a fax line at home anymore ( I still need to get internet fax)

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knothead

If you only need a "office" then try and see if there are any virtual offices around basically its a large office space that rents out a office provides a deck phone and reception are as well boardrooms. We have them here in Bc and can be rented out for $250 a month. of course most are downtown in the core but thre are some outside the core in the burbs that are available It can give you a cheap place to hang your hat while doing paperwork.

daArch

I doubt I will ever be in need of outside office. BUT, one thing a contractor should consider - zoning.

Do you have lots of traffic into your home - either deliveries or workers? Do you have clientelle visiting you? Truck traffic? Keep heavy equipment at your home ? Store any hazardous materials? Are your business activities noticiable and in the least bit annoying to the neighborhood? If any of these issues are applicable, they would be good reasons to move to a business or industrial zoned area.

My brother is a single person finish carpenter/cabinet maker/furniture repairer. When he operated out of his home he would work in the evenings or even late at night. He finally realized for safety sake he needed to get the shop out of the house.

At some point a business becomes big enough to warrant and even necessitate a move to a dedicated location.

If you are at that point, do it and good luck.

It's also a good way to separate work from family, which is a must for most of us.

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Teetorbilt

Here, commercial zoning is fine. Most expenses, if not all, are tax deductable.

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send_it_all

I signed a 1 year lease on a warehouse space last March. I thought it would be great to have a place to store my tools as well as a place to work on my project car. The original plan was that my dad was also going to get a project car and we would share the space and work on cars together. Sounded great. I leased the space ($1130/month) and my Dad suddenly lost interest in cars. So now I'm footing the bill alone for a space I COULD live without. It is nice to have a place to keep my tools and some supplies, but I will be moving out as soon as the lease is up. Of course a couple of months after I lease it, work comes to a screeching halt. So now It is pretty much eating all of the overhead money that I bid into jobs. I have raised my prices a bit, but I can' realistically recoupe all of the burden on the little jobs I am doing.

Long story short...(I know..too late) I would urge anyone to stay in the home office unless you know for certain that you can swing the bill or the shop will increase your business enough to pay for itself...even in slow times. I can't wait to get rid of that monthly expense.

Flacan

Words of wisdom.

Another thing to consider: if you spend all you time doing office/sales work, and if you have other guys working for you, then chances are your operation is large enough to support the added expense of an office/warehouse space.

If you're a one-man show (unless you build cabinets, awnings, etc), an office may be just an unnecessary added expense.

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ruskent

Does anyone find that once they added a office outside the home they were acctually able to go to the office and get more work done then they ever did at home?

Mike Finley

Have any of you guys heard or or maybe you have them in your area, these "condo" warehouses? Instead of renting you purchase and own the space? I'm dying to get one, but not positive about taking on such an expense yet. One of the bigger issues with them is I don't think conventional finacing is available for esentially a 'garage'. Seems like they will finace them but it's ony for 10 years so the payments are pretty high.

But they are heated, lighted, set up for phones, high speed internet, 14 " doors and such and as big as 1500 sq feet. The units sell out usually during the construction of each one of these places across the country. Seems like they would be a great investment instead of throwing away rent money each month.

Ed the Roofer

I have owned my own office and storage yard for about 20 years now.

It is nice to be able to go home and leave work at the office.

Consider the possible ROI down the road too. My place cost $ 82,000.00 back in 1988 and is appraised at just under $ 300,000.00 currently.

When and if I ever retire, this and my apartment building will be an added income for the later years.

Taxes cost just under $ 5,000.00 per year and don't forget the utilities and the additional internet hook up and the city building inspections. Such as Fire Department conformance and back flow prevention inspections and always having guys in their spare time cleaning up the storage yard to not get cited by the building department.

Buy a farm and a large barn and remodel it, if you can afford it.

I love being able to get things done when there are no distractions around.

Ed

ultimatetouch

I love the idea of owning the building. I prefer owning the building with some apartments above it. I am just outside chicago Ed where do a get a farm around here

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

ultimatetouch

Doug I really dont like subs coming to my house. Or people meeting out in front of my house. We look like a gang of guys to the neibors at times Im sure. Do any of you guys feel like it took you to the next level to have the office away from home?

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

Ed the Roofer

Cool! I finally figured out how some guys have done that multi-quote thingie!

1 farm property still around Schaumburg, I believe.

Lots out West of Elgin and one on my way home on Rt 31 between West Dundee and Algonquin.

You have got to get out in the sticks to find one that hasn't already sold the rights to a developer though.

How does Sycamore or DeKalb grab you?

A friend of mine in Eagle, WI did the barn rehab for his roofing business and it was the bomb.


Also yes, it seemed like a bunch of hoodlums waiting on my home doorstep on payday when I was running late.

I absolutely love having my own shop and office. I would not want to do without it now that I have gotten myself spoiled.

Ed

woodmagman

Mike, I see nothing about a biff, is this a case of new installs for a discounted purchase rate. And that door could cause a major draft while testing out the show room products....

woodmagman

You need to think it over very carefully, sometimes a converted garage or new basement entry will facilitate....with no entry from the house. If you just open the door and walk into the bedroom from the office it is a little bit of a put off. Keep it proffesional looking. You can spend twenty grand and have an asset or spend twenty grand and have a deduction....

ruskent

Evern if you rent a place for 1500 a month, its not to hard to make up for it in your overhead. At 20 working days a month its 75 bucks a day. With 4 guys working for you its under 2 bucks a man hour.


I really want to get a place next year. I think its some kind of pyscholoical thing. I mean i could never lift weights at home, but once i joined the gym i really started to put on the muscle!

woodmagman

If your paying your men $15-$20 That is a 14-20% increase in wages. That cuts into the profits real fast..or puts you on a different bidding scale with your customers.

Grumpy

I posted a little while back something about "questions to ask when renting office space" do a search on this forum.

Overhead is minimal. I pay $680 a month for a store front with electric/heat/water included. For me that's one roof sold per month going to rent.

I am interestedi n buyign one of those condo warehouses that Mike spoke of above. There are a few in my area. However financially I can't yet afford it and I am on a 2 year lease (for controlled growth). I should be stable enough in 2 years to buy one. Hopefully anyways.

Ed the Roofer

Grumpy,

Your post about renting office space is also in the articles section. It is very good advice.

Ed