Sunday, 26 January 2014

Why you should pay for your office space

It may seem contradictory to say that you should pay for something even if it is offered for next to nothing. Generally, I would tell businesses that this is a good idea but for startups it's a bad idea. I will explain in detail what the difference is between a startup and a business. 

You should pay for your office space because it gives you a motivator to be profitable. If you haven't seen my last post about not spending venture capital on trend office spaces, then you should go check it out. 

When you have to pay for office space in someway shape or form you have to find a way to become profitable and fast. Bills come in on a monthly basis so you should start to find a way to make income on a monthly basis. That way you do not go into debt. 

Certain business models favor the monthly income and others do not. If you want to make a AAA game you are going to have to find the funding for several years of development. If you want to make a website that sells good you can start selling very quickly. Of course anything with a membership is great because you get the money at a fixed time interval whether it be a month, a quarter or a year. 

Some of you might be reading this and wondering where on earth would you get free office space. Well, depending on the city you are in it could be sponsored by the government in some way or it could be donated by a larger corporation. Either way, it does exist. Sometimes these places will have very inexpensive office spaces. This is much better for you because at least you are paying something.

If you live at home and you get the parental discount move out immediately. It sounds so counter intuitive but you should really try and make it on your own. Among millennials there seems to be this idea that if you do not get a good job you shouldn't settle for a regular job so because "I" am so awesome, "I" am going to start a startup. 

That should be a whole other topic but if you really want to make it on your own then you should move out of your parents house and enter the real world. 

When you start paying rent on a monthly basis you start to think profitability on a monthly basis.  

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