Business has changed dramatically over the past decade. It wasn’t that long ago that if you wanted to run a business you needed a dedicated office. Over the past few years technology has completely changed where, when and even how you run a business. Gone is the need for an office and everything in it. You no longer have to run back to the office to send a fax or check your voicemails. It is almost commonplace to scan something through your phone or use an app to sign a document. Having a corporate address to put on your business card may sound attractive but it is no longer necessary. There is healthy debate on whether or not you should have an office but what is unanimous is that you can succeed without one. Here are a few benefits of not having a dedicated office space.
- Work Anywhere. The ability to work anywhere cannot be understated. Even if you split time between the office and working from home you are still ahead of the game. By paying rent for an office you are more inclined to work there even if it isn’t necessary. Working mobile allows you to work wherever and whenever you want. You don’t need to drive into the office to grab a file if you are on the other side of town. You can take weekend trips or long vacations and still squeeze in some work if you like. You can work first thing in the morning or late at night if inspiration strikes. The bottom line is that by not being bound to the office you have greater flexibility to your schedule and can work anywhere you like.
- Financial Benefit. The biggest reason to avoid having an office is the rental payment. Some may argue that an office is just part of doing business. For some businesses this is true but not for the real estate business. Real estate can be performed just fine without an office. For what you pay for rent you are not getting an equal return on your money. Are you getting any extra business strictly because you have an office? It may be great to meet people and sign documents but you probably haven’t gotten a deal because of it. That being said you are essential wasting money that could be better allocated to other areas of your business. Since most leases are for at least a year you are on the hook for the payment for some time. Another financial factor that can’t be overlooked is the commute. By not having an office you avoid the daily commute. The cost of gas and wear and tear on your car driving thirty minutes to and from an office may not seem like much but can add up over the year.
- Increased Focus. For the right person not having a dedicated office is the best thing they can do to increase productivity. Even if you in the office by yourself you probably share it with other tenants. At some point you will catch yourself talking to other people and taking time away from your work. The alternative is isolating yourself in a remote location. This doesn’t mean you have to lock yourself in a dark room all day without any outside communication. But by working from your home you can get whatever you need to get done free of distraction. Instead of working eight hours at an office you can get more done in half the time. The increase in productivity allows you to spend time on other aspects of your business.
- Flexibility. Having a mobile office means that you can run your office as you please. If you are someone who works best with some noise or a TV on in the background you can make this happen. If you like the lights or your laptop a certain way you can do that as well. You can tailor your work space so that you are most efficient and productive. The alternative is to sit in an office that is in most cases without any option for modification. You cannot move your desk or make any changes to the space. This will end up making you frustrated and can impact how you work. The real estate business is hard enough without having other things to worry about.
- Balance. When you work mobile you can make your own schedule. This is something you may be able to do with an office but you can control the commute. If you need to take your kids to a doctor’s appointment or a school function you can do so knowing that you are not paying for rent. You will not have to worry about leaving early to beat traffic or if you will be home in time for your family. This flexibility will improve your work/life balance and ultimately make you happier. If you are happier you tend to be more motivated to work harder which will improve your bottom line.
Like most everything else in real estate there are two sides to every coin. A fellow investor you talk to may love going to an office every day. Others will say they haven’t had an office in years and see no need for it. You need to take some self-inventory to determine what is best for you.
