Office Space for the Experienced IEC
So you suspect that you may have outgrown your coworking space, but the next steps aren’t as clear.
(If you’re skipping directly from a home office to a permanent office space of your own, I would encourage you to take a step back and make sure you aren’t moving too quickly. This would also be a great topic to cover together in a Strategy Session.)
Assuming you tested out the coworking waters, you likely saw how quickly your coworking space paid for itself. Perhaps you’re ready to scale, or you’re tired of noisy neighbors, or maybe you just want a more professional look that comes with your OWN space.
You might even be feeling confident when it comes to a larger investment because you know exactly what you can afford to spend, thanks to Profit First. On the other hand, a larger investment comes with greater risk, and you might be experiencing analysis paralysis about how to proceed.
Well, it’s not an easy decision, but you’re in the right place! Let’s consider your options.
Entry-Level Office Setup: Sole Practitioner Space in a Shared Building
Think of this almost like a bedroom in your home. Your client walks into an office building and heads down the hallway. She opens a door that has a placard on the front with your business name on it, and she’s right there in your space. One room. That’s it. No waiting area. You can find these within the confines of a larger coworking space, or (more typically) in a Class C building.
PROS:
This is likely your least expensive way to break out of coworking. Even in a high-cost area, your rent will be pretty low when compared to other options.
You are maximizing every square foot. Everything is usable. No wasted space at all.
When compared to traditional coworking, your clients will be able to see that you have a more established presence. They will notice and appreciate the consistency of meeting in the same room each time.
You will likely appreciate it even more than your clients - no more toting your stuff all over the place! You can find a permanent home for all of your files, your books, your computer - hey, you can even move from a laptop to a desktop now!
You won’t have to deal with the hassle of booking conference space in advance with a coworking space. This is HUGE! No more fees when your clients cancel. No more kicking clients out at the end of the allocated time slot, even if you both wanted to stay late.
CONS:
If you have a sole practitioner office within the confines of a larger coworking space, you are going to be paying up the wazoo. You might be able to get a whole suite somewhere else for the cost of your solo office.
If you rent your sole practitioner office in a Class C (or similar) building, you’re almost certainly going to have to pay for internet. Business internet is generally more expensive than residential, because the cable companies can get away with it. This is especially the case when certain buildings have agreements with one cable provider and you aren’t able to shop around.
The cost of your internet may represent a surprisingly large percentage of your overall monthly costs because your space is so cheap and the internet costs are fixed. In the DC area, you can find a room like this in a Class C space for about $500/month. $150/mo internet on top of $500/mo rent “hurts” a little more than $150/mo internet on top of $2000/mo rent.
The biggest one: your clients will not have a waiting room. Do not underestimate the importance of a waiting room! Without one, you will not be able to schedule back-to-back clients. You will also likely still run into issues from time to time if clients come early, or if a parent doesn’t pick up a student on time. What happens if a younger sibling accompanies a family to an initial consult? Make sure you think this through.
Mid-Level Office Setup: Shared Suite with Other Similar Practitioners
Think about therapists. Have you ever been to a therapy office? You typically walk into the suite and find yourself in a waiting room, and each therapist has his own office either attached to the waiting room or down the hall. These can range from being “okay” to actually being very nice and high-end.
There’s two ways to approach this kind of office setup: you can either sublet an office from an existing therapy practice or partner up with a therapist or two to rent a space together. It will likely be a little cheaper if you are on the lease.
PROS:
This is a great way to enjoy the benefits of something nicer than you could comfortably afford on your own without over-extending yourself financially. You are also able to split the costs of utilities, waiting room snacks, and so forth.
Life as a solo IEC can become lonely and it’s nice to have another adult around to chat with! Along the same lines, it can be nice to have more people around from a safety perspective as well.
If you find the right person (or group of people), you could have a built-in referral network, plus great visibility to a potential client base. Think a therapist that deals with adolescents, a test prep tutor, etc. This could actually be a tremendous benefit, especially if you are at the point in your practice where you need to find more clients.
You may be able to find a space that has two separate entrances, which would give you the feel of having your own space. When I shared a space with a therapist, it had two separate waiting rooms and two separate entrances: a great setup for me!
CONS:
You are ultimately dependent on the decisions of another person, perhaps more so than you’d like. I was subletting space from a therapist who told me that she needed my space back when I was 35+ weeks pregnant. I wasn’t upset (business is business) but you have to think about the ramifications of someone else having that much control.
In general, you have to remember that you are sharing space with another person and have to go out of your way to be a courteous suite-mate - for example, I’m rocking out to “90s on 9” on Sirus as I type right now (#nojudgment) and it would be difficult to do that with an office-mate!
You have to put up with the other person’s client base, whether they are loud or otherwise obnoxious. Along the same lines, they have to put up with yours. If it will stress you out to worry about your clients making a mess or being too loud because of how the situation might disrupt the other person, that may be a factor to consider.
You have to concede to the other person’s taste - again, this is all part of being a good suite-mate. If you have specific taste and want everything “just so” in the public spaces of your office environment, this may not be the option for you.
Expansion is much harder if you don’t have any extra space, which is more likely if the office is being shared. What if you decide you’d like to take on a team member? That will likely involve moving.
High-Level Office Setup: Your Own Suite
Whether it is located in a Class A, B, or C building, your own suite is your own suite! Your clients will enter your waiting room either directly from the street or from an internal building hallway, and you will have a separate office. Suites can run the gamut from having kitchens or kitchenettes, bathrooms, storage spaces, additional offices, and so on. My current suite has two large offices that open to the (nice-sized) waiting room, as well as a large storage closet. My lease is up on 12/31 and I’m trying to figure out if I can move to a larger suite in my current building, or if I
PROS:
As the only decision-maker, you have a ton of flexibility to do what you want, when you want to do it. If I want to host fellow business owners for a monthly coffee in the waiting room, I can. I am an independent person and I really enjoy not having to check with anyone or plan my schedule around them.
Along the same lines, you can build your environment to be exactly the way you want it. If I want to redecorate on a whim, I can. My office is bright and cheery, and it makes me feel happy. I hope it makes my clients feel happy too.
You will likely have some flexibility in terms of space, which will make it easier to scale when you are ready. Because commercial lease terms are often long, it’s so helpful to have that room for growth. My business is in a wildly different place right now than it was when I signed this lease three years ago, but I would not have been able to grow if I didn’t have the space.
I personally think that having your own suite gives off the most professional image to potential clients, although I do realize that this is subjective. At the least, it definitely shows that you have reached a level of financial success that allows you to be in your own space.
CONS:
You are signing a lease that will likely be a minimum of three years, but it might be even more. Some might feel trapped by this - it limits your options. A LOT can happen in three years! If you are the kind of person that doesn’t love being tied down, it can be scary to know that you are financially responsible for a long-term lease.
A suite of your own is the most expensive option of all. You are financially responsible for everything: the rent, some utilities (depending on your lease agreement), the snacks, the furniture, the magazine subscriptions in the waiting room - it all adds up!
It can be very difficult to find the “right” space since so many commercial spaces are much larger than an IEC would need, even one with a sizeable practice. It can be tempting to overpay for more than you need - but don’t be tempted!
Ultimately, there’s no right choice, and you have to be happy with the decision you make. Remember that the space you have today is not the space you will have forever - don’t overextend yourself. Slow and steady wins the race!