For decades, the “office” has been the cornerstone of the American workplace. It has been an iconic representation of the brand that manages it, a gathering place for all employees, supervisors, and clients, and a home base of operations for major deals and expansions.
But things are starting to change. The office is becoming less of a necessity for gatherings. After all, there are a hundred ways you can contact someone instantly, no matter where they are. They’re less necessary for visibility, too, thanks to the ubiquity of the internet, and since so many businesses can operate virtually, there’s no need for a physical “home base” to expand. In fact, statistics from the Bureau of Labor show that more than 23 percent of employees do at least some work remotely, and more and more businesses are pursuing “remote work” policies.
The trend is even more striking in millennials, who have grown up with internet access and a preference for working from home—85 percent of millennials want to telecommute 100 percent of the time, with 54 percent wanting flexible or alternative schedules. And they’re taking that desire into their own hands, building businesses that rely on employees working remotely most—or all—of the time.
Reasons to Go Full Remote
Thinking of starting a business yourself? Don't just go remote because it's trendy. Here are seven reasons why owning a business with no central office is beneficial to everything from your budget to reputation:
1. Fewer startup costs.
Cash is always a problem for new startups, and finding an office is one of the biggest new costs you’re going to face. Not only will you have to spend time and money searching for a place, you’ll also have to make a down payment, and you’ll likely spend thousands of dollars (or more) filling it with furniture. If you can operate just as efficiently without this startup cost, you can take that money and invest it in something more worthwhile, like sourcing better talent or building up your infrastructure.
2. Lower overhead.
Offices also cost a ton of money to keep running. Rent in most cities is thousands of dollars a month for even a modest business space, and on top of that, you’ll be paying for utilities, supplies like computers, paper, and break room supplies, and of course, business internet—which can be a killer. With that line item gone from your budget, you can reallocate your resources to more effective areas.
3. Easier travel arrangements.
Having a remote office makes it easier to book travel arrangements and not worry about what’s happening back home. For example, if you wanted to book a hotel in Las Vegas, you wouldn’t have to worry about scheduling the trip in line with your physical office meetings, and you wouldn’t have to worry about your employees’ schedules either. However, with rooms ranging anywhere from $101 to $1150, you’d want to book your trip well in advance – prices could shift at any time. You could also find and execute routes to your destinations without having to worry about rush hour, since you’ll have more flexibility with work hours and timing. It’s a relief, especially if you plan on doing a lot of traveling as an entrepreneur.
4. Less commute time.
The average American spends about an hour every day commuting, but that doesn’t have to be the case. You can free up several hours a week—and hundreds of hours a year—just by eliminating that commute time. You’ll do this for yourself as well as your staff.
5. More appeal for hires.
Most people like the idea of working from home which means your exclusively remote office will be more appealing to potential hires. You’ll have an easier time finding the talent you need to fill your key positions, and you’ll be more likely to retain them indefinitely into the future.
6. Wide range of hires.
Hiring people remotely means you won’t restrict yourself only to candidates currently in or willing to move to your city. Instead, you’ll have free reign to hire anybody you want, no matter where they are. This greatly opens up your talent pool and should point you in the direction of better, cheaper candidates who are better fits for your brand.
7. Reputation benefits.
Opting for a remote office can also help your brand seem like it’s more cutting-edge or forward-thinking. Depending on your key demographics and what type of brand you want to develop, this could be enormously beneficial. For tech companies or other startups that pride themselves on progression and future-orientation, this is indispensable.
How to Execute a Remote Office Practically
If you’re in the final stages of making your decision, keep these considerations in mind to execute your remote office practically and effectively:
- Know that remote businesses aren’t for everyone. Some businesses will only survive with a physical location. Some people aren’t productive working from home. Some brands need the extra physical visibility. Many businesses can survive these days without an office, but not all of them.
- Have a way to track productivity. Productivity can be an issue for remote offices, but only if you’re in the dark about what people are doing. Use project management or time tracking software to keep tabs on yourself and your staff.
- Optimize a home office. Even if you’re working remotely, you need a reliable place to do your work. Make sure you have a home office where you’re not only comfortable but productive, which is easier said than done. Eliminate distractions and make sure you have a designated space for “work” to get yourself in the right mentality.
- Create clear standards for communication. Communication is one of the biggest issues in a remote office setting. Be proactive and clear about the communication standards you’re going to create and enforce; it will save you lots of trouble in the long run.
Remote offices aren’t perfect, and they aren’t for every business, but they are viable opportunities worth considering for your startup. If you want to learn more, find a mentor or peer entrepreneur who’s currently using the model and talk to them about their experience. Do your research proactively, think carefully about your needs, logistics, and desires, and make the decision that’s right for your startup.
