Running a business without a premises

Depending on the nature of your business, it is possible for some business startups to get their companies off the ground without actually having to buy or lease permanent office space. 

If you’re running something like a coffee shop or snack bar, it is naturally not possible for you to operate without somewhere to physically produce and sell your goods. However, if your business is office or computer-based, it is completely feasible to run your entire operation remotely.

Here we look at how to facilitate a business plan for startups wanting to operate without their own permanent address.

Does not having a business premises look unprofessional?

Many larger companies tend to own their properties for a number of reasons. Other than making operations easier to carry out, another main reason is that premises can help your company appear profitable and help impress potential investors or clients.

Functioning without your own premises will not make you appear unprofessional, however. In 2018, 16% of all companies globally worked fully remotely, whilst 56% of companies were either fully remote or allowed hybrid working systems where staff could work from home at times and didn’t have to go into the office every working day.

This model is clearly popular and successful, and just because you choose not to own or lease your own premises does not mean to say that you cannot access professional office space if a situation arises where you do want to get your team together in one room or invite a potential investor or client to a presentation where you can impress them. For such occasions, renting temporary meeting space is always a viable and affordable option.

Will working remotely save your company money?

Working remotely can save your company thousands of pounds in overheads each year. Office space can cost anything up to about £1,400 per person per month in cities like London. For a company of just 10 employees, this would work out at £168,000 a year full time. 

Alternatively, requesting that your employees work from home can be far more cost-efficient. Supplying each of these same 10 staff with a top of the range Apple Macbook laptop would cost you just £32,990 in comparison, making you a potential saving of £135,010.

As well as cutting your overheads on-premises, internet and phone bills and electricity and heating, some research by Owl Labs even found that “45% of office workers are willing to take a pay cut in order to continue working from home in the long-term”. It seems there is even the possibility you could save money on your employees’ wages as they often prefer to work from home and see this as such a plentiful incentive that it could even be worth forgoing some of their wage packets.

However, Owl Labs also found that “74% believe their company should pay for, or provide, office technology equipment (including laptops, printers, and extra screens) when they work from home”. Although you might save money on-premises and bills by asking your workforce to work remotely, it is also worth considering whether or not you will provide your staff with necessary office equipment for their homes, or perhaps consider reimbursing them for purchases of things such as office chairs and desks.

If working remotely at all times doesn’t suit your business, you could even consider renting temporary meeting rooms annually or once a quarter to get all of your team together. This is easy to do, and office spaces are available at prices that best suit you and in locations that best suit you right across the globe.

Other business startup tips

Running a company without your own premises comes with many advantages. You and your employees can easily avoid the morning and evening commute, giving you more time with friends and family and doing activities you enjoy. 

The other main advantage of running your business remotely is that you and your worker's can (depending on the nature of your industry) have the chance to work flexible hours. This can greatly benefit families with children or individuals with other caregiving responsibilities, perhaps for older relatives. 

As a startup, offering staff advantages like these is a sure way to incentivise your staff and help you find a competitive pool of applicants when you advertise job roles. Incentivising your workers is a great way to motivate them, which can sometimes be a challenge when your business operates remotely.

In one study, 55% of those asked claimed they work more hours when working from home than at the office, whilst 75% of people have expressed concerns about their employer monitoring their productivity by using video tracking technology.

RELATED: Coronavirus: Businesses without premises and the Small Business Grant Scheme

Now that you have some idea about the potential benefits of starting up and running a remote business, you might be curious about the first steps to help get your company up and running. 

You could invest in a professional-looking website, consider marketing your product or services over digital channels such as social media platforms or Google Ads, or embark on a networking quest to help get your brand’s message out there.