When Commercial Space Is a Good Move

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I am contemplating moving my business from a home office to a commercial office space. What pros and cons should I weigh? Any tips on making the transition?

—D.B., Dallas

Once you've decided to take the plunge and move your home-based business to a commercial office space (see BusinessWeek.com, 1/22/07, "Home Office or Commercial Space?"), there are a number of decisions you'll have to make. First, where will you go and what facilities will you need?

Taking an office close to your home and your employees' homes is always a good bet, as it will cut down both on gas costs and on driving time. An office outside the home should provide a comfortable space—such as a conference room—where you can meet with customers and employees, particularly if one of your motivations for leaving home is to impress clients and appear more professional.

A real estate agent who works with business clients should be able to help you determine what square footage you will need. Space for a service business is usually easier to calculate than that needed for a company that produces a product, says Robin Lasher, a consultant with the Tarrant County College Small Business Development Center in Fort Worth.

An Eye Toward Growth

"A consultant may need no more than a small office with furnishings to create the desired image with clients, whereas a company that manufactures a product and has outgrown the garage may also outgrow commercial space sooner than expected," she notes. "However, even a service business that starts with 300 sq. ft. may find it a tight squeeze if an administrative assistant is hired."

So be cautious about the length of the lease you sign, Lasher advises, no matter how good a deal a landlord offers you on a long-term lease. "Try to negotiate a one-year lease with a one- or two-year option if you have any reservations about your move or whether the space will meet your future needs. If you're two years into a three-year lease with no immediate space available for expansion, you may have no choice but to stunt your growth until the lease expires, try to sublease your current location, or operate from two locations by leasing additional space elsewhere, which usually creates logistical problems," she says.

Jeffrey Landers, a serial entrepreneur and the owner of Offices2share.com, agrees. "The most common and often the most fatal mistake made by fledgling businesses is signing a multiyear lease which can require a financial obligation that may outlive the business itself," he says.

Call Your Lawyer

As long as you're looking for space, why not try to find an office location that has some prestige or local prominence? "Many prestigious office locations have some small spaces available as a result of dividing up larger spaces," notes Robert Donnelly, an entrepreneurial consultant and author.

"Negotiate for a reasonable rent," he adds. "You're doing the landlord a favor by taking a space that usually is not attractive to larger prospective tenants." It doesn't hurt to get your attorney involved in these negotiations. Commercial leases can be notoriously one-sided, and a savvy attorney should be able to help you get much better terms.

Once you've settled on a location, draw up a list of costs to include in your budget. You should include one-time costs associated with the move and the purchase of new furniture and equipment, as well as ongoing fixed costs, such as rent, insurance, and utilities. Will the building provide adequate parking for you and your employees? Make sure you include parking costs in your budget.

A final expense will be changing your business address to reflect your new location and revising all your marketing materials. Good luck!

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.

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Choosing a Web Designer the Easy Way

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Choosing a Web Designer

When you choose a web designer, there are many things that you need to be aware of and that need to be taken into consideration before you make a decision.

To some extent, the ability to work successfully with your web designer is sometime as important as their actual skill in being able to deliver the project.

A web designer that is skilled in what they do but is a pain to deal with can make the whole process frustrating and not worth the money being spent, especially if you have an emotional attachment to the project (which you should have being the one supplying the money and motivation)

That relationship can be worth a large proportion of the contract.

However, there are some key things you need to consider.

Be careful in what you get for your money. Some possible pitfalls you may want to check on:

Obviously what do you get for your money

What is included? Design, Content, Search Engine Submission, Search Engine Optimization (SEO), Graphic Design, Updates? You need to get these details so you can compare your quotes against each other. You also need to quantify some of these things in terms of quantity, hours, numbers search engines submitted to etc.

What are the ongoing costs?

All websites have ongoing costs. Web Hosting, Domain Names and updates are the main three. Make sure you know the total cost of your investment. Some companies offer lower up front costs to lock you into higher ongoing costs that end up costing you more. Some other things are SSL certificate costs, more bandwidth and web space.

How easy is it to incorporate your branding

Some template sites are hard to blend a logo or colours into them, be wary of template driven website companies, some of these people are skilled enough only to change the text on a template. Some designers design their sites from the ground up incorporating all of you design elements in their design. These companies offer the most flexibility.

How reliable is the services provided

With hosting and email, too much down time can make the whole experience unworkable. You don't want to have to change hosts after six months because your designer has provided you with a poor host. Some people rely heavily on email and these are the people that need to choose carefully so their business inst impacted.

What are the costs for making changes later on?

Updates and maintenance on your site is something that will eventually happen, even if you don't change the content frequently (see the Making Your Site Super Sticky Article for the benefits of this) you will eventually change some content and so you need to know what it will cost over a year.

Hidden costs

Make sure common things (like search engine submissions) are either not included or are an extra cost. Some key things can be omitted to keep the price down. Make sure you don't get sold short. An important one...is the web designer doing the job part time Are your web designers doing this as a full time job? Some designers are working during the day and then web designing at night. A lot of designers started out this way, but it can cause issues when you need something done and they don't do the job from 9-5.

If all these things check out then you have found someone who you can work with and provide you with a service that will get you your desired result.

Remember; choose a designer with the right skills, but also one you believe you can work with on an ongoing basis. Build a working relationship that will benefit you both and your web project will benefit as well.

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About the Author: Steven Gardner runs DeepWeb Web Design, a web design business that caters to all businesses looking to get an edge with their presence on the Web, providing web design, maintenance and consulting services. You can find him at www.deepweb.co.nz.

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Managing a Satellite Staff

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Mergers and acquisitions, plus flexible time and multiple work sites, have created the need for alternative work situations--and in many cases this means offsite teams. In the electronic age, employees at different sites can be connected by e-mail, fax, telephone and web conferencing. Whether your employees are working at a different plant, factory, office building or simply from home, addressing the issue of satellite staffs is vital to your business’s success.

What type of employee is best suited for off-site work? Specifically, employees must be independent self-starters who do not need an on-site supervisor. They need to be assertive enough to speak up, state views and ask for assistance before situations become critical. In addition, they must be self-critical workers who can evaluate their own work and know when input from others is needed. They must voluntarily seek advice and counsel from others without fear of appearing inadequate, unconfident or unprofessional. And most importantly, they must be able to create their own work day and schedule without the structure of a formal, eight-hour day.

But what problems can arise in a satellite or home office? First, off-siters sometimes complain that they don’t feel like part of the team, that an esprit de corps doesn’t exist because of the physical separation between offices. Also, developing a rapport between supervisee and supervisor can be difficult since the latter isn’t on-site. As a result, it’s easy for milestones and deadlines to go unmet. Unsupervised work can become distracted, off-course and less than optimal. A related issue is “out of sight, out of mind”: An off-siter’s work may not be considered or valued as highly as that of on-siters. And finally, without an externally imposed structured day, work performance can suffer.

So what can you do to ensure that your offsite employees’ productivity and success don’t falter? First, you must clearly communicate your expectations of remote workers, including key milestones and deadlines. The milestones should be firm and short term to ensure that work is acceptable, timely and coordinated with on-site employees. Feedback on progress should be specific, measurable, timely and action-oriented. Above all, your remote workers should feel that they can easily seek out a supervisor for advice, counsel and input.

To further ensure accountability, goals must be clearly stated and written to guarantee agreement between all parties. An oft-stated truism applies here: “If you don’t know where you’re going, you’ll probably end up somewhere else.” Starting off on the wrong foot or in an inappropriate direction can spell disaster, especially when working at different sites. In addition to goals, agreed-upon standards and level of quality will help eliminate any doubt about what’s required. Reporting relationships also should be outlined; each employee must clearly understand to whom he or she reports. Having the line of authority and responsibility clear greatly improves the intensity, effectiveness and quality of the reporting relationship.

The final aspect of off-site management to consider is communication. Often, e-mail is the easiest and the quickest way to communicate, but it can make expressing emotion difficult and can lead to misinterpretation. Someone who is always succinct in e-mails may come across as rude to a friendlier co-worker, while a good-natured joke might lose its intended humor and be read as an insult by the recipient.

The most effective means of sending and receiving messages is a combination of e-mail, faxes, regularly scheduled telephone conference calls, and video and web conferencing. The latter are particularly important since they contain the all-important aspect of seeing the people with whom you are speaking. While this visual component can help facilitate personal relationships, nothing can replace the quality of a face-to-face meeting. To maximize interpersonal interaction, create rapport between employees, and improve working and personal relationships, in-person meetings should be scheduled at least quarterly.

David G. Javitch, Ph.D., is Entrepreneur.com's "Employee Management" columnist and an organizational psychologist and president of Javitch Associates, an organizational consulting firm in Newton, Massachusetts. With more than 20 years of experience working with executives in various industries, he's an internationally recognized author, keynote speaker and consultant on key management and leadership issues.

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