How I budgeted to afford office space

Overview

I started this business from home, but later on was faced with the challenge of having somewhere that could be a main base to meet with clients. It was proving difficult for the business meeting with clients in different venues that didn't represent the business. I had to move into an office - but that meant more running expenses, and I didn't know how I could afford it.

The challenge

Like many businesses, I approached the bank for working capital funding and was unsuccessful. At this point I had a couple of clients lined up, but they were clients who would rather meet at an office - so there was no turning back with the idea of renting an office.

The solution

I searched around and found an office that was a compromise on what I was looking for initially. I opened a credit account for all my office furnishing with one office supplier. I bought most of the electronics on eBay - which meant spending about a week keeping an eye on auctioned computers and printers! I then paid off the credit account as soon as I could.

Key lesson

The biggest lesson I learned was that when I was rejected from bank funding I learned to compromise and ended up with a better office - fully functional and furnished with no debts attached to it. When we are visualising we tend not to see the alternatives. For example, I didn't think of buying in an auction before or buying on a business credit account but was thinking of buying all my office equipment directly from mainstream suppliers. Today all the business income that is coming in is free from debts.

Top tip

Try to avoid financial commitment as much as possible when starting out, as any debts you take at the beginning will reduce your work motivation later on if most of your income is going on paying debts.

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