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Serial Entrepreneur and Go BIG
Founder Wil Schroter's Blog!
What a Startup Office Really Looks Like
Author: Wil Schroter
Tuesday, April 10, 2007

After tearing through Jessica Livingston's new book, Founders at Work, I was happy to see that of the 30+ companies that were profiled, just about all of them pointed out that they started off in crappy offices.

Livingston interviewed the founders of companies like Apple, PayPal, and ViaWeb, among many others.  In just about every case they mentioned how they were working out of their apartments or makeshift offices, nothing like the big glass palaces of the corporate behemoths.

I think many startup founders think that startup companies need to look and feel like big companies.  They think about what the workers of GE and IBM would have worn in the 80's and therefore don the shirt, tie or skirt-suit. 

The truth is that startup offices are meant to be old, crappy, and cheap.  They are meant to be makeshift hovels that serve one purpose - to provide power and an Internet connection.  Anything else is just frivolous.

Go BIG is still in it's startup phases, as we're in year two of operations.  We're very lucky, though.  We're holed up in the Business Technology Center in Columbus, Ohio which is an incubator for startup companies.  We've got well-equipped Class-A space with about 30 other companies here.  And it's really cheap. 

In the past this wasn't always the case.

When I started my first company, Blue Diesel, the only office space we could find was an old hippie clothing store on the Ohio State campus.  It had no heat, no A/C, and no functional bathroom.  But it was across the street from our dorms, and since no one had cars, it did the trick.

We outfitted that office with about $500 of furniture and supplies, most of which came from salvage or stuff we built from scratch.  It didn't matter though.  We had power and an Internet connection - we were off to the races.

Later on, like many companies, we went out of our way to pay for and create "really nice office space" so that we could look like a big company.  So we went out and leased nicer space, bought nicer furniture, and picked up a few plants, because that's what big companies have - plants.

The change to our space did nothing.  Revenues didn't go up, clients didn't care, and our overall demeanor toward the business didn't change a bit.  The only thing we accomplished was creating more cost and a big distraction with moving and buying more stuff we didn't need.

Our original space was better.  We were a struggling company and the space reflected it.  I think what startups need is a space that reflects their condition, not a space that provides an illusion of what they are not. 

If you're in a service business and you need to meet with clients, find a way to do it anywhere but your own offices.  And if push comes to shove don't be afraid to say that you spend next to nothing on your offices - that's why you can be so competitive in your pricing.  There's no shame in humility.

If you're a startup company and your space sucks, keep it that way.  It's what a startup office is supposed to look like!




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Comments About this story
Hi Will,

While I agree with you that start up costs should be kept to a minimum, the idea of cheap office space goes out the window when starting up a retail or hospitality business (like my dayspa). In fact, in order to be as competitive as possible and create an atmosphere that not only puts customers at ease but encourages them to spend more money, the biggest expense by far is the FF&E (i.e. buildout). When the average spa costs $200 or more per sq.ft. to build and the majors are throwing millions into the sector, we easily could have spent more but after 5 years and 4 relocations due to bad landlords and expansion requirements we have $0 debt, 25 employees, good cash flow and no partners. And we didn't have more than $10k to start with. If you have the desire (and just plain refuse to be defeated) you can get pretty much anything done as long as you have a good product.

Eva Sztupka-Kerschbaumer
ESSpa Kozmetika Skincare
Provider of Spa Services to Special Guests of the 2007 US Open Golf Championship
Posted by: Eva 4/11/2007 at 10:07 AM

I agree with all you say. But the problem is when your an agent for some snobby individual or a prominent blue chip firm. In my case we were super-successful in  obtaining subscriptions for Time Life Warner cable TV. So successful that it rang alarms bells at the head office, 500 - 700 orders per week. They sent a security officer to check us out, once he saw our premises situated in a outdated shopfront, in a run down area,  he naturally assumed the worst, he thought the orders were false, false by taking details out of phone books. It took 2 days of intensive checking to discover we were 100% legit. In another real estate business we had great offices in a modern building, but some clients wanted a big bucks bank image, with glamour staff. To overcome this is simple - ignore it. Get on with what you're doing and worry about other things. 10 hours effort finding sales beats 1 hour of worry .
Posted by: BOBCHICK 5/19/2007 at 3:32 AM



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