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Advanced technology has made it possible for many businesses to operate without a physical office address. Business executives can hold virtual meetings or meet in recreational centers with free internet instead of holding office meetings. The possibilities and convenience that modern technology offers have led to many startups with no physical locations.
You may think of following the trend if you are about to start a business or running a startup with limited capital. You save on the monthly rent expense and maximize profits. However, the benefits of having a physical office outweigh the benefits of operating without one. Here are the top reasons why you should consider acquiring office space for your startup.
1. Giving the Right Impression to Clients and Investors
Modern communication technology enables entrepreneurs to interact with investors and clients online. However, most clients and investors trust brands with physical offices. You can hold all your meetings with investors in social settings but occasional office meetings are important to give the right impression.
A physical office is particularly important when you are selling professional services to new clients. Since you’re likely to have few referrals and testimonials when starting such a business, a well-designed and organized office space will enhance your client’s trust in your services or brand.
2. Encouraging Teamwork
Your employees can work from any location and at any time online. Technology enables you to hold discussions online and assess their performance without physical meetings. Working online is convenient, but it kills the whole team ethos. This limits camaraderie, competitiveness within the work place, and even hinders such basic business tasks as brainstorming.
Most employees work at their pace and at the most convenient time when working from home. The physical interactions in an office setting encourage teamwork. Sometimes employees require immediate feedback or assistance from a teammate to complete a task.
Creating a platform for physical interactions improves your employees’ performance as individuals and as a team. In addition, a controlled work environment eliminates distractions that can affect performance.
3. Hiring Top Talent
Hiring the best talent in your field must be among your top business objectives. To attract this talent, you need to provide job security, and physical interactions gives job candidates confidence in your business.
This does not mean that you cannot hire top talent online. Some of the most talented professionals prefer to work as virtual employees for several employers. However, if you want to attract and retain such talent, consider creating a comfortable working environment for them.
4. Achieving Work-Life Balance
The current generation of employees prefers work schedules that enable them to balance their work with their home lives. Work-life balance is not only important for your employees but for you as well. It’s almost impossible to achieve this balance when working from a home office. Most people who work from home tend to work for long hours every day.
With so many distractions at home, it’s difficult to have strict working hours. Employers with virtual employees tend to engage them even past the normal working hours. A physical office defines the working hours and enables your employees to separate work from other activities.
5. Holding Meetings on Time
It’s easy to start and end every meeting on time when all your employees work from a physical office. Convening an urgent meeting is equally fast. You can hold meetings on social platforms with your employees or investors, but you must be prepared for occasional lateness. The degree of connectivity varies across individuals and locations.
You must also be prepared for disruptions when some team members or attendees lose their connection. A meeting that would normally take a few minutes in an office can take an hour as you try to get everyone online at the same time.
6. Effective Communication
The importance of physical interactions in team building has been discussed above. The other major reason why your teams need physical interaction is effective communication. Facial expressions and body movements are important for effective communication.
Face-to-face interactions also enable individuals to express their emotions even without words. The elements of communication are lost in online interactions. Even with live meetings and discussions, people do not express their thoughts and feelings fully when interacting online.
7. Enhancing Accountability
One of the major challenges of hiring virtual employees is that you cannot control their work schedule. You cannot determine if they are working on their assigned projects or enjoying their favorite games. The best way to encourage your staff to be accountable for their time is to create a shared workspace.
A physical office is important when paying your employees per hour. The team leader or manager can monitor their activities and determine if they spend their time in the office working on their tasks.
It’s cheaper to start and run a business without a physical office. However, a physical location has multiple benefits for your business. You can attract and retain top clients, investors, and talent with a physical office. If you’re concerned about the costs, consider starting your business in a shared office space.