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  1. #1

    [looking ahead] Office Space

    This is only to get a good idea on office space and the such. but what do you do to get a building for your company? Such as an office in LA, or an office in Chicago, New York, or the likes?

    -steve

    thanks, really appreciate.

  2. #2
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    There are areas where you can rent/lease out office space in a nice building.

    Down here in Miami, a 2 room office runs for aout $1,000 a month.

  3. #3
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    It will be more costly in places like LA, NY, Miami and such than others.

  4. #4
    If you're going to get office space in any of those places, you're going to have to seriously raise your prices.

    New York and Chicago have extremely high costs. L.A. isn't quite so high, but still way up there.
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  5. #5
    Do you know of some websites I could go to in order to see what pricing is like? I really dont want to fly to Chicago, New York, or LA...

    -steve

  6. #6
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    Indianapolis, IN
    Why not just rent a place where you're at?
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  7. #7
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    Originally posted by Coach
    If you're going to get office space in any of those places, you're going to have to seriously raise your prices.

    New York and Chicago have extremely high costs. L.A. isn't quite so high, but still way up there.
    ^^^ exactly what he said.
    EIRCA Ltd, home of The Genius Network™.

  8. #8
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    Is there a reason why you picked those cities? You can run your hosting business from just about anywhere...

  9. #9
    Originally posted by Nathan Allen
    Is there a reason why you picked those cities? You can run your hosting business from just about anywhere...
    Yea, I was just wondering how you get space there. thats all

    -steve

  10. #10
    Contact a commercial real estate agent... that is what they do all day, every day.
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  11. #11
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    Drive around in the area that you want to rent in. Find a building and go in and ask some of their tennants if they are happy with their landlord and, if so, ask for contact info.

    That's how we found our new office...the current tennants couldn't say enough good things about them. So far, our experience has been amazing as well.
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  12. #12
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    Why go in such a high-rent place? I'm sure with a business like hosting, it doesn't matter what type of place you work in.

    Find cheap space that has connectivity, electricity, security, and your set.

  13. #13
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    Originally posted by ImGeek
    Why go in such a high-rent place? I'm sure with a business like hosting, it doesn't matter what type of place you work in.

    Find cheap space that has connectivity, electricity, security, and your set.
    Why doesn't it matter with "a business like hosting"?
    Could you also indulge on what your description of the hosting business is?

    Hosting is like any business, and actually with the internet still seen as "murky water" for some people, it's certainly a huge plus to local business that you land yourself a nice office.

    I wouldn't say the hosting business is different to any other, with regards to the standards you should keep.
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  14. #14
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    Hosting requires nearly no physical contact with customers. (In most cases).

    So, why go for an expensive place when for the most part, it will be seen only by a handful of staff?

    Afterall, many hosting businesses can be run by one or two people.

  15. #15
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    Hosting requires a lot of physical contact, in most cases.

    Don't take WHT as a norm for the web hosting industry, as the R&O forums show quite clearly.

    Most hosting business' start up by hitting the local market ( if they don't..they should).

    Now, that in mind, wouldn't you feel a little more comfortable when dealing with a business that has a genuine business look and feel to it, rather than dealing with a company that greets you at the door of a run-down shed like office?

    Speaking from the financial side of things, it is actually more advantageous to a business to have an office, as opposed to running it from home, or something along those lines.

    Granted, maybe not many WHT based companies even realise the tax applies to them, but to the genuine company owners ( of which WHT has many), they'll acknowledge the major benefits of having an office that "Joe Public", if he wanted, could drop into when he pleased.
    EIRCA Ltd, home of The Genius Network™.

  16. #16
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    You make a good point, but I've always assumed the norm in hosting is young people, low investment, etc. (Usually rented servers from datacenters).

    I think very few of the thousands of hosting companies are what you describe.

  17. #17
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    Originally posted by ImGeek
    You make a good point, but I've always assumed the norm in hosting is young people, low investment, etc. (Usually rented servers from datacenters).

    I think very few of the thousands of hosting companies are what you describe.
    That is a big assumption that is made. It is due to the fact that there are so many "hosts" who start and close after a month or so (because of 13 or 14 year olds running a "company").

    I think you'll find a variety of different hosts, yes some do rent servers, but some also co-locate, and there are some bigger hosts who run their own datacenter (i.e. Mediatemple).

    I think there is some confusion as well. Having a commercial location is advantageous. One, it is an office and a store at the same time. People can come in and ask about the host's services and maybe even become clients. Serving as an office, it allows employees a physical place where they can work, and for the owners a place where they can store all business related items as not to lose them in a home environment.

    I once worked for an internet services company that did web design, eBay auctioning, and web hosting run out of a commercial office space. It was small, but we were able to secure a T1 connection and ran a couple of Cobalt RAQ servers directly from the office for a redundant backup and internal network.

    The only issue really is location and cost.

    Regards,
    Mark

  18. #18
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    Originally posted by IHSL
    Hosting requires a lot of physical contact, in most cases.

    Don't take WHT as a norm for the web hosting industry, as the R&O forums show quite clearly.

    Most hosting business' start up by hitting the local market ( if they don't..they should).

    Now, that in mind, wouldn't you feel a little more comfortable when dealing with a business that has a genuine business look and feel to it, rather than dealing with a company that greets you at the door of a run-down shed like office?

    Speaking from the financial side of things, it is actually more advantageous to a business to have an office, as opposed to running it from home, or something along those lines.

    Granted, maybe not many WHT based companies even realise the tax applies to them, but to the genuine company owners ( of which WHT has many), they'll acknowledge the major benefits of having an office that "Joe Public", if he wanted, could drop into when he pleased.

    Very well said. I can't add anymore to that...erm...except to say "Very well said."

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  19. #19
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    Originally posted by ImGeek
    You make a good point, but I've always assumed the norm in hosting is young people, low investment, etc. (Usually rented servers from datacenters).

    I think very few of the thousands of hosting companies are what you describe.
    You need to separate TRUE HOSTING COMPANIES from KIDS WITH A HOBBY WHO DON'T FILE TAXES OR PAY THEIR OWN LIVING EXPENSES.

    What he described to you are true hosting companies.

    --Tina
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  20. #20
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    You make very a good point.

  21. #21
    Originally posted by AffordableHost
    Very well said. I can't add anymore to that...erm...except to say "Very well said."

    --Tina
    I really appreciate everyone's post. I think these are giving me more insight on what to do if xeoHosting expands. I really dont think that the new hosts have purchased office space right off the bat (unless they take out a loan) so that is why

    I really appreciate the thoughts and comments, all helpful to me gaining more of an understanding.

    thanks,
    steve

  22. #22
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    You may want to try some of these sites:
    http://www.officeseeker.com
    http://www.officefinder.com
    and google for yet others.

    Also keep in mind:

    1) Lease terms - make sure to negotiate these carefully. If you are not sure how long you are going to stay at a certain premise, don't sign up for a three year contract, for instance, if you can avoid it.

    2) Expandability - it is ideal to find an office space that is expandable for the future. Ask about this when you interview
    various locations.

    3) Extra costs - make sure to budget in the cost of setting up
    the office plus the monthly costs. Every little thing adds up -
    from the office water cooler to the DSL or T1 to the individual
    PC's for the new staff, the phone system, the electricity, any
    utilities, etc.

    4) Manager - make sure that you will either be able to run the
    office yourself OR that you have a partner or trusted manager
    to run the office.

    Best of luck with your expansion!
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  23. #23
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    We pay about $40 per square feet for our office. We are located in a prime business location in Toronto. Price varies on location and premisis features (such as built out, open space, etc).
    Kaumil P.

  24. #24
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    Wow, we're paying about $1.50 per sq. ft...not in prime area, but nice business district.
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  25. #25
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    Then again, we're in an office tower, in TORONTO. So that speaks for it self.
    Kaumil P.

  26. #26
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    We're in the Renesance (spelling?) area of downtown Grand Rapids, Michigan.
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  27. #27
    Originally posted by AffordableHost
    Wow, we're paying about $1.50 per sq. ft...not in prime area, but nice business district.
    I would assume that is per month? And, his $40 was per year.....

  28. #28
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    Originally posted by IHSL
    Hosting requires a lot of physical contact, in most cases.

    Don't take WHT as a norm for the web hosting industry, as the R&O forums show quite clearly.

    Most hosting business' start up by hitting the local market ( if they don't..they should).

    Now, that in mind, wouldn't you feel a little more comfortable when dealing with a business that has a genuine business look and feel to it, rather than dealing with a company that greets you at the door of a run-down shed like office?

    Speaking from the financial side of things, it is actually more advantageous to a business to have an office, as opposed to running it from home, or something along those lines.

    Granted, maybe not many WHT based companies even realise the tax applies to them, but to the genuine company owners ( of which WHT has many), they'll acknowledge the major benefits of having an office that "Joe Public", if he wanted, could drop into when he pleased.
    I see limited benefits [to us] of having a traditional office presence. Yes, I've been there, done that, bought the T-shirt. Doesn't interest me in the least. I am fortunate to work from my home office, as is my staff. We're the envy of most office workers, and technology gives us this opportunity, so we take full advantage of it.

    It's working extremely well, although I'm not ruling out certian opportunities that are arising now. Just taking things as they come and can't be happier at the moment. Who knows, maybe in a year or 2 we'll have a nice little office in NAC? Stranger things have happened.
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  29. #29
    Ya, make sure that when you are talking to the broker that the pricing they tell you is either monthly or yearly. Everyone states it differently. So, one person might say $1.00/Sq ft and another would say $12/Sq ft. If the first person means monthly and the second means annually, it's the same price.

  30. #30
    Originally posted by derek1622
    Ya, make sure that when you are talking to the broker that the pricing they tell you is either monthly or yearly. Everyone states it differently. So, one person might say $1.00/Sq ft and another would say $12/Sq ft. If the first person means monthly and the second means annually, it's the same price.
    Thank you for telling me that.
    Really helps
    -steve

  31. #31
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    Originally posted by Incognito
    I would assume that is per month? And, his $40 was per year.....
    Yes, you are correct. Sorry. I forgot to mention that it was $40 per year. Which works out to $3.30 per squre foot Canadian.
    Kaumil P.

  32. #32
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    Also, you need Insurance to be able to get into the space. "Errors and Ommission & Commercial Liability." It's a headache, but it pays off in the end when you have a nice place to work. Clients will take you more seriously.

    We started out as a home based business as well, nothing beats the home!
    Kaumil P.

  33. #33
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    Originally posted by hostingplex
    . . . We started out as a home based business as well, nothing beats the home!
    HTTPme started from a downtown office, then I moved it all back to my home office. Whatever works.
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  34. #34
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    Right...
    Kaumil P.

  35. #35
    Originally posted by Aussie Bob
    HTTPme started from a downtown office, then I moved it all back to my home office. Whatever works.
    yea, but the problem here is xeoHosting doesnt have enough funds, nor wants to take out a loan for an office. That is why. Anyways, so I was looking around for what you do when the time comes (title is [looking ahead])

    -steve

  36. #36
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    Heck, I'd run it all from an handheld XDAII on the back of a 65ft boat if I could.

    Comes down to lifestyle too. We're fortunate enough to be in the position to choose, and I choose the home office. If you have a growing family, and a growing business, it's nice that you can be in the same location as both.

    My 9yr old son asks me if I wanted to have a quick game of cricket, a couple of days ago. So for the next 20 minutes I'm playing cricket with my son. Of course, the other 4 kids all joined in too. Finish up the game, come back inside for a drink from the kitchen and then I get back to business. Good balance.

    I'm a strong advocate for home offices, because I believe they offer a good balance of work and family, without making sacrifices to either. Technology is making this more effecient and feasible. I believe the next generation or 2, we'll see more folks working from home offices, than current traditional offices. It just makes sense, imo.
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  37. #37
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    Originally posted by steveTobb
    yea, but the problem here is xeoHosting doesnt have enough funds, nor wants to take out a loan for an office. That is why. Anyways, so I was looking around for what you do when the time comes (title is [looking ahead])

    -steve
    It's all about choices and finding what works for you, and running with that. If you have the cashflow to afford an office, and you think your business would be best suited located from there, then do it. Choices.
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  38. #38
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    I agree Bob, but keep in mind that when a company/owner has a choice of either an office, or a home base, then the situation becomes different.

    What you come across then is most probably a sterling office, sprouting from home.

    The difference between you, and some other hosts that run from home, in my opinion is the fact that if you are forced to run from home, because you cannot afford an office, then the home office is probably going to be merely a basement, or bedroom.

    On the other hand, when you have the choice, and therefore monetary backing for either, the home office is probably a very spruce looking actual office, that people could come and chat with you, feeling both comfortable, and that they are in the presence of a professional. Whereas the same, in most cases cannot be said about a bedroom/basement.
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  39. #39
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    I'm a strong advocate for home offices, because I believe they offer a good balance of work and family, without making sacrifices to either. Technology is making this more effecient and feasible. I believe the next generation or 2, we'll see more folks working from home offices, than current traditional offices. It just makes sense, imo.
    Bob makes some very good points for having a home office. I have choosen an office intead of working for home. I don't have a family yet, and my clients are about 50% local. I've discovered from previous experiences that when you run a home office a certain number of clients assume you are open 24/7 and show up at your house at all hours of the night

  40. #40
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    Originally posted by Reality Hosting
    . . . and my clients are about 50% local . . .
    If your clients are local [which imo is a sweet market ], then you'll really need some kind of traditional office, imo.
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