CUSTOMERS WILL TAKE YOU LESS SERIOUSLY IF YOU SHARE AN OFFICE
There’s no denying that current conditions make it challenging to be a small business owner. Interest rates are up, the stock market is down (or flat at best), unemployment is super low and no one wants to work, so where can you trim some expenses to better protect your cash flow? Maybe you’ve entertained the idea of sharing an office space for the sake of decreasing your overhead. If you have, it’s a creative idea…but don’t do it. The cash you save is not worth the value you’re forfeiting.
5 REASONS NOT TO SHARE AN OFFICE
1. CREDIBILITY:
When you share an office you’re sharing more than just the space. You’re sharing your credibility and you’re asking all of your potential clients to ignore the reality of your not being able to stand alone on your own. Your first impression is not one that shouts confidence and success…it’s one that solicits questions and distrust. Like…if Baskin-Robbins’ 31 flavors are so great…why are they sharing stores with Dunkin’ Donuts?…it’s likely because of shared ownership, but nonetheless, it’s enough to send me to the local creamery run by a bunch of teenagers instead. I never think…”oooh, finally I can get ice cream with my coffee…I think what’s wrong with this place that it can’t stand on its own?”
2. PRIVACY:
As a property management company, we have clients coming in and talking about the ins and outs of their most valuable assets regularly. They’re talking about their financial situations and ambitions with honesty in an environment that breeds trust…but how do you do that in a shared office? Retirement plans and monthly cash flow are not topics meant for a public audience.
[LEARN MORE: HOW BEST TO INVEST: REAL ESTATE VS. THE STOCK MARKET]
3. IMAGE, BRANDING, AND COMPETITIVE EDGE:
When you share an office you are relegated to partner status. You are hamstrung in your objective of creating an identity and brand that will help you grow and become successful. It is imperative in today’s market that you have an identity and that begins with your physical environment: your office. In a world where barriers of entry have decreased substantially and competition increases accordingly, you need something that separates you from the rest.
Two anecdotes to hit this home:
First, a couple years ago a delivery man came into Nexus’ Franchise headquarters in Pawtucket and while waiting for the obligatory signatures post parcel delivery, he took to looking around. He followed up with, “man, this place is really nice…I feel like I should be signing a record deal or something.” As Seth Godin says often, to be remarkable means people remark about what you’re doing. There’s no doubt we’ve had success because of what our offices say to those who enter them, regardless of the reason.
That leads to story two. In one of our offices, we had a real estate professional come in and apply for a job (which we weren’t even hiring for) just because he was walking by and got the feel that this was the right spot for him based on that physical first impression. It might not seem like a big deal, but the evidence over the years suggests otherwise.
[LEARN MORE: THE IMPORTANCE OF BRANDING IN BUSINESS]
4. PERCEIVED PRIORITIES MATTER:
If I’m a client for a company in a shared office my immediate thought is that the attention of this office is not entirely directed toward me or my needs. There is a misalignment of priorities and the only real priority I can see is an owner looking to decrease his or her spending. If your office is shared, so is your attention.
[LEARN MORE: THE POWER (AND IMPORTANCE) OF ALIGNED INTERESTS]
5. UNINTENTIONALLY DECREASING YOUR SPHERE OF INFLUENCE:
Part of successfully owning and running a company is your ability to get things done for your clients. By creating consistent value, you work to create and cement your reputation. This is a focal point of all of your efforts and you control this as much as possible for the good of your company. But…you can’t control the person or company you’re sharing with…at all…so why enter into that relationship? You risk your reputation by proximity…for the sake of saving a couple hundred bucks on rent…NOT WORTH IT.
[LEARN MORE: 7 TIPS TO HELP IMPROVE YOUR SPHERE OF INFLUENCE]
FIND A BUSINESS MODEL WITH SCALE
If you’re looking to save money on overhead, look into companies that naturally scale well. You might be able to start with less employees, which is typically a larger expense, and then grow organically as you become more and more successful and profitable.
Nexus Property Management® franchises fit that model. Our franchisees typically open and begin operations with just one or two employees, including themselves. Within a couple months, their clientship increases to the point where they need to add a team member or two, and they do so at that time, when demand makes it necessary and profits can support it. Look for a company that scales in a similar way and you can avoid skimping on building your identity. Learn more about the Nexus franchise model and opportunities by accessing the link below.
[LEARN MORE: THE NEXUS PROPERTY MANAGEMENT® FRANCHISE MODEL]
NEXT OPPORTUNITY:
Speaking of franchise opportunities and growth, we are pleased to announce that our Fall River office will be opening soon and our sales team has highlighted New Haven, Connecticut as the best place in New England for the next Nexus franchise. Contact our team to inquire about joining our team or to learn more.
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Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.
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