When you think about a start-up, do you envision an office with a handful of diligently working people on brainstorming and growing a company? This is probably what you would have anticipated at one point in time, but that is no longer the case. In this day and age, most businesses do not start in an office space. With the gift of modern technology, companies have discovered how easy it is to thrive without ever even opening a physical space.
So, if businesses can be run virtually, why should you move your start-up to a physical location? The answer is simple. Follow along, and we will break down the eight benefits linked to having a physical location for your start-up.
8 Benefits of Having a Physical Location for Your Start-Up
1. A Physical Location Means Having a Corporate Headquarters
How your company presents itself speaks volumes, especially regarding how they can influence people’s perception regarding your business’s quality. With that said, there are wonderful benefits to having a centralized office space, such as calling it your corporate headquarters. That sounds fancy. This physical space works to show your clients legitimacy and help you gain respect from even your earliest clients.
Positioning has always been an essential element in business. Your success as a business depends on how well you are positioned to be found. With that said, a business’s physical location can increase your brand visibility and help you grow.
2. An Office Space Allows for Face-to-Face Interactions
Data shows that face-to-face communication is more successful than other forms of interactions, especially in a business environment. When you have an office space, it naturally gives you the advantage of connecting with your clients in person, which is an excellent way to close deals.
However, if your business is primarily online, there may be no point in having a physical location to meet your customers. Should your business start to transition into a more local-focused business with a higher number of face-to-face interactions, having somewhere to meet your customers that is not a local coffee shop is ideal.
3. A Physical Business Location Means Local Employees and Having a Space to Train Them
At first, many companies get by contracting other companies to do services for them, such as using accounting software or hiring a freelancer to handle all your marketing for you. But as you begin to look for local staff to hire, you will need somewhere for those individuals to work. An office space begins the right place to train new employees and ensure they guide your business on the right path.
4. Office Spaces Provide Accountability for Your Employees
Accountability issues happen in the workplace all the time. At iStart, we use Microsoft Teams to collaborate and our start-ups, even when we are in the office together. If you send a message to a coworker and have a red dot or yellow dot by their name, they may not respond. In this scenario, you may question if they are even working or maybe they are choosing to sunbathe on their patio. Though we always hope our employees will be honest about their time and energy, having them in-person ensures that they stick to their word and the no-show issues seem to lessen.
Your staff is diverse and has different hobbies and interests, which is fantastic. Their ability to pursue their hobbies and interests keeps them happy and productive. However, having an office space ensures that they follow those passions on their time instead of yours.
5. Individuals Who Work in Office Spaces are Healthier
Studies show that a healthy team makes for a productive team. One study found that employees who eat healthily are 25 percent more likely to have higher job performance. The same survey also found that employees who exercise for at least 30 minutes, three times a week, are 15 percent more likely to have a higher job performance. In contrast, overweight employees cost their employers $73.1 billion a year and file twice the number of worker compensation claims.
When you are an employer, you have the opportunity to play a significant role in your team’s performance by making sure the pantry is stocked with healthy foods for your employees to eat throughout the day. Often, the healthy foods you put in your employees’ office may be healthier than what they keep at home. And communicating to an office typically involves more steps than those who pull-on sweats and make their way from the bed to the computer in their home. It is safe to say that office life isn’t without its health benefits.
6. Physical Business Locations Offer Exposure to Diversity
Improving diversity within your company is no longer a strategy; it’s a necessity. Choosing to neglect diversity on your checklist ultimately means your company is neglecting revenue and profit. With that said, no matter what industry your line of work is in, exposure to different viewpoints, skill sets, levels of experience, and personal history is healthy for your team to experience. Having a place for your employees to go ensures that they are exposed to this type of environment. A company will only be as successful as its talent, and a diverse workforce means diversity in ideas, innovation, and a more profitable bottom line.
7. Collaborating from An Office is Easier
The value that comes with physical togetherness in an office is notable when compared to working from home. More than 55% of workers feel that collaborating with others is harder also. Nicholas Bloom, an economist known for his research that shows the benefits of working from home, said, “In-person collaboration is necessary for creativity and innovation.” His research has shown that face-to-face meetings are essential for developing new ideas and keep staff motivated and focused. He went on to say, “I fear this collapse in-office face time will lead to a slump in innovation.”
8. A Physical Location Leads to More Business Asset Security
The security of your business is paramount. Data protection and security is an ever-present concern for companies. If your business deals with client’s sensitive data, a virtual workforce can be a serious safety concern for your operations. In addition to that, when you allow your employees to work remotely, you are not guaranteed that your assets are safe. Devices such as laptops and work phones can easily be lost and accessed by third parties. Having a physical office space ensures that you can provide each worker with a designated computer and somewhere to store sensitive company data on-site.
Securing an office space for your company is not a decision that should be made lightly. It is guaranteed to be one of your most significant expenses and typically requires a 3–5-year commitment. Are you not sure if your business is ready for a physical location? The experts at iStart would love to help you decide if it is time to start looking. After all, a physical location may be just what your business needs to use as a launchpad for this next phase of growth!
Contact us today to set up your consultation!
As an experienced entrepreneur deeply immersed in the startup ecosystem, I've witnessed firsthand the evolving dynamics of business operations in the digital age. My expertise extends to the core principles of launching and scaling startups, including the critical decision of whether to operate virtually or establish a physical presence. The evidence supporting my insights comes from actively participating in the growth of businesses, utilizing modern technology, and understanding the nuanced advantages associated with physical locations.
Now, let's delve into the key concepts presented in the article:
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Corporate Headquarters for Brand Legitimacy:
- A physical location serves as a corporate headquarters, enhancing the perceived legitimacy of a business.
- The article emphasizes the impact of positioning on brand visibility and growth.
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Face-to-Face Interactions:
- Face-to-face communication is highlighted as more successful in a business environment.
- The advantage of connecting with clients in person for closing deals is underscored.
- The relevance of a physical office space for local-focused businesses with increased face-to-face interactions is acknowledged.
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Local Employees and Training Space:
- The need for a physical location when transitioning to hiring local staff is discussed.
- An office space is considered an ideal place to train new employees and guide the business effectively.
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Accountability for Employees:
- The challenges of accountability in virtual workspaces are addressed.
- The benefits of in-person interactions for ensuring employees stick to their commitments are highlighted.
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Employee Health and Productivity:
- The positive correlation between a healthy team and increased productivity is mentioned.
- Employers' role in promoting a healthy work environment, including stocked pantries, is discussed.
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Exposure to Diversity:
- The necessity of improving diversity within companies is emphasized.
- A physical office space is presented as a means to expose employees to diverse viewpoints, skill sets, and experiences.
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Collaboration in an Office Setting:
- The article argues that collaborating in an office is easier compared to remote work.
- The value of in-person collaboration for creativity, innovation, and motivation is supported by Nicholas Bloom's research.
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Business Asset Security:
- Concerns about data protection and security in a virtual workforce are addressed.
- The article emphasizes the safety advantages of having a physical office space, including designated computers and on-site data storage.
In conclusion, the decision to have a physical location for a startup involves weighing these multifaceted considerations, and my expertise in the field underscores the nuanced nature of this decision-making process.
