Setting up a shared office space as a side business
September 2, 2007 12:48 PM Subscribe
Setting up a shared office/office business center as a side business: Next to my house is an empty store in fair condition. It used to be a grocery store, but small grocery stores are not viable anymore in my area, so it's empty and for sale. I'm thinking about buying it and converting it into a shared office space with about ten separate offices. Is it really viable to manage this as a side business? I have a day job to take care of.
I'm not going to hire a receptionist, but I would put in sanitary facilities, a small tea kitchen, a shared eating space and Internet access and arrange for cleaning. To purchase I would have to up the mortgage on my house, so the investment would be a really big deal for the family economy. I know I will have to make a reasonable business plan and all, but what I need in addition is some input from someone with knowledge about this particular line of work. Is it possible to set this up and only occasionally need to take time of from my day job to handle small emergencies and such? I imagine it to be a pretty low-maintenance operation, but I could be wrong... I don't plan to get rich, but to have a nice, semi-steady source of extra income.
I'm not going to hire a receptionist, but I would put in sanitary facilities, a small tea kitchen, a shared eating space and Internet access and arrange for cleaning. To purchase I would have to up the mortgage on my house, so the investment would be a really big deal for the family economy. I know I will have to make a reasonable business plan and all, but what I need in addition is some input from someone with knowledge about this particular line of work. Is it possible to set this up and only occasionally need to take time of from my day job to handle small emergencies and such? I imagine it to be a pretty low-maintenance operation, but I could be wrong... I don't plan to get rich, but to have a nice, semi-steady source of extra income.
It's impossible to say whether it's viable without some research about your particular area, the facility itself, the demand for such a thing, etc. I am in the US so I have no clue about any of that where you are.
I will say this, however: Don't risk your house! If you move forward, get a mortgage on the building itself. If it fails, you lose the building. If you mortgage your house, and the business fails, and you can't pay back the loan, you will lose your house. That's not the way to go!
posted by The Deej at 12:59 PM on September 2, 2007
I will say this, however: Don't risk your house! If you move forward, get a mortgage on the building itself. If it fails, you lose the building. If you mortgage your house, and the business fails, and you can't pay back the loan, you will lose your house. That's not the way to go!
posted by The Deej at 12:59 PM on September 2, 2007
Response by poster: Thanks for the concern. I will of course mortgage as much as possible on the building itself.
I'm not really looking for advice wether it's financially viable, as I can probably put together a business plan with my economist wife, but wether the time required to run such a business is incompatible with a day job (which in my case is quite flexible if I need to take a few hours off from time to time).
posted by Harald74 at 1:28 PM on September 2, 2007
I'm not really looking for advice wether it's financially viable, as I can probably put together a business plan with my economist wife, but wether the time required to run such a business is incompatible with a day job (which in my case is quite flexible if I need to take a few hours off from time to time).
posted by Harald74 at 1:28 PM on September 2, 2007
From my experience in working in that kind of place, there needs to be someone there representing the Office Management 9-5 most days, it's simple things like toilets overflowing, deliveries needing to be signed for, chairs breaking etc
posted by lloyder at 2:44 PM on September 2, 2007
posted by lloyder at 2:44 PM on September 2, 2007
Might want to check in with the folks at the Coworking initiative to see people's experiences. I'm not sure if anyone goes into this to make a pot load of money, but that page (and the discussion group) they've got might help clear up questions.
posted by rmm at 5:13 PM on September 2, 2007
posted by rmm at 5:13 PM on September 2, 2007
I know someone who runs a very similar business to what you are contemplating (more of an industrial space than office space). They don't provide furniture, and don't allow tenants to receive mail at the building address, so some of what lloyder mentions does not apply. They don't seem to usually be very busy with it during the day, although they have a fairly flexible schedule, and recently took a week+ vacation.
Whether this would work well with a day job depends a lot on the structure of your day job. Sometimes you might need to only go in during the day for a few minutes, obviously this is easier if your job is close by. There will be some times that you need to devote more time to getting tenants, doing repairs, etc. You might be able to give a tenant low/no rent in exchange for help with some of this. A bad tenant will end up suddenly taking a lot more time than usual, and this is not an "If", this is a "when".
To purchase I would have to up the mortgage on my house
You need to look at rents/vacancies/lots of other things in your local area, and discuss with your family if losing your house is an acceptable risk. Don't do this unless you have extra funds to cover your payments and pay for major repairs during a lull in tenants. Don't do this if you are looking for something low stress (financially speaking).
posted by yohko at 9:19 PM on September 2, 2007
Whether this would work well with a day job depends a lot on the structure of your day job. Sometimes you might need to only go in during the day for a few minutes, obviously this is easier if your job is close by. There will be some times that you need to devote more time to getting tenants, doing repairs, etc. You might be able to give a tenant low/no rent in exchange for help with some of this. A bad tenant will end up suddenly taking a lot more time than usual, and this is not an "If", this is a "when".
To purchase I would have to up the mortgage on my house
You need to look at rents/vacancies/lots of other things in your local area, and discuss with your family if losing your house is an acceptable risk. Don't do this unless you have extra funds to cover your payments and pay for major repairs during a lull in tenants. Don't do this if you are looking for something low stress (financially speaking).
posted by yohko at 9:19 PM on September 2, 2007
Do you have a starbucks/borders/*wireless+services* any where near you?
If so, I won't bother, but that would be part of your marketing research. Office hotel space is fairly common these days, so attracting the hardcore portable office person would be your main clientèle and are there enough of them?
Can you do this while doing your other job? Your business would have to be attended to, meaning someone in house to assist your customers. Now you have added to your monthly overhead. It goes back to my first question - consider thinking about the decision at your nearest Starbucks.
posted by fluffycreature at 8:30 AM on September 3, 2007
If so, I won't bother, but that would be part of your marketing research. Office hotel space is fairly common these days, so attracting the hardcore portable office person would be your main clientèle and are there enough of them?
Can you do this while doing your other job? Your business would have to be attended to, meaning someone in house to assist your customers. Now you have added to your monthly overhead. It goes back to my first question - consider thinking about the decision at your nearest Starbucks.
posted by fluffycreature at 8:30 AM on September 3, 2007
This thread is closed to new comments.
posted by Harald74 at 12:49 PM on September 2, 2007