When starting a new business there are a lot of things to consider, like what type of operational structure and how you are going to put your new product or service in front of your target market.
These days though, there is another thing to consider, and that is whether you are going to open a physical office location or operate on a remote basis. Now, it’s not for everyone but a remote setup offers a lot of benefits, especially to those just starting out.
Years ago a company was deemed untrustworthy if they operated remote and didn’t have a physical location that housed the entire team. Why is that? Well, it was just such a new concept that many wrote it off. They simply didn’t understand it.
But now that it’s accepted and more larger companies are shifting to this structure, lets’ dive into some reasons why operating remote can be very attractive to a new business.
They Eliminate Costly Office Rent
When it comes to renting an office not only do you have to factor in the actual monthly rent, but then you also have utilities, property tax and maintenance, etc. — not to mention a long term lease.
“Most commercial properties require that you sign at least a 5 year term. That is 60 months of being locked in. That can add a lot of stress and pressure, because if the business fails the owner is going to be personally liable for that lease,” offers Chris Rush of custom sub box company HiFi Sound Connection.
But think about the other side of this — what if the business is wildly successful and you need to expand the team after just one year and you outgrow the first office. Well, you are often going to be stuck with that lease or forced to find a new renter in order to get out of it.
With a remote team you never have to worry about outgrowing your current location. You can scale a remote team as quickly as needed. There are no barriers. Not to mention the saved money each month can be rolled into marketing and advertising, which will contribute to faster growth.
You Can Hire Based on Talent – Not Location
With a physical office location you can only hire within a certain radius. You might find someone 200 miles away that is perfect for a position, but they don’t want to commute that far and they don’t want to relocate.
You will have a much smaller talent pool to pick from when you have a physical office location. While it’s still possible to get team members to relocate, that in itself is an added expense.
“With a remote business model you have the ability to hire anyone all over the world,” says Chris Moberg of Slumber Search. It really opens up the talent pool and allows you to hire based on qualifications and fit with no barrier getting in the way.
Team Collaboration Tools Keep Everyone Accountable
There have been so many tools to hit the market in recent years, built around helping remote teams succeed.
“Slack is hands down one of the most helpful tools a remote team can use. It allows everyone to see what is happening at all times and easy communicate as a team on projects,” says Darryl Howard, a non surgical nose job specialist. It’s much better than back and forth emails.
There are also several video conference tools that help you conduct team meetings in a more personal manner. No matter where everyone is located it makes them feel like they are all in the same room.