Kevin Yen thought he was done with having roommates. Then, in
1998, he opened Designer Body, a food supplement store catering to
the fitness-minded. The location he found on a busy street in
Kaneohe, Hawaii, seemed ideal. There was a problem, however: The
space was too big, and the rent too high. Easy solution: Yen
approached a friend, Joey Aukai, 35, who was looking for a location
to practice physical therapy. Aukai agreed to share the space and
related expenses.
Although Yen moved out of the space in January, both parties
agree the time spent sharing an office was beneficial to both
businesses. Designer Body's customers, because of their
inclination toward physical activity, often get injured, so when
they learned there was a physical therapist on-site, they became
interested: "Many [ended] up seeking treatment from
Joey," says Yen. The reverse was also true: Aukai's
patients or their family and friends often became Designer
Body's regular customers.
Furthermore, since the companies kept different hours, they
covered for one another during absences by answering questions and
taking names of prospective clients. "This cuts staffing
requirements," says Aukai.
It's Not Just for the Money
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"This synergy from sharing space is a benefit often more
important than the actual expenses saved," suggests business
and economic consultant Chuck Wolfe, principal of Claggett Wolfe
Associates in Auburn, California. Wolfe's firm shares space
with an affiliate, fellow business and economic consulting firm
Agricultural and Community Development Services (ACDS), based in
Jessup, Maryland. By having phone lines in each other's home
base and sharing other facilities, they're able to bring each
other work and collaborate on projects. Whereas ACDS specializes in
rural communities, Claggett Wolfe covers a broader market and
relies on ACDS for its expertise in agribusiness.
"Sharing can give a small business the same benefits of a
larger and more diverse one," says Duke Burruss of ACDS.
"Claggett Wolfe is across the continent. By sharing, our
network develops and allows us to act like a larger, more diverse
entity with a greater presence."
Whose Turn is It to Mop?
There are disadvantages to sharing—as with a roommate,
you've got to tolerate certain differences of opinion and
habits. One person might like carpet, while the other likes tile.
Or, on a grander scale, there's the potential for complete
incompatibility—making it very important to carefully choose
the person you share office space with. Should one party decide to
move out, that could cause a sudden drain of funds for the one
remaining. Aukai and Designer Body solved this problem by agreeing
to give one another three months' notice before leaving.
"This gives the other party time to find someone else or to
prepare in other ways," says Aukai.
All told, however, sharing office space can be ideal, as long as
you adhere to these principles:
- Synergy. Businesses that naturally complement each other
work best.
- Respect. Try to tolerate differences and communicate
openly. Keep business and personal relationships separate.
- Compatibility. Besides the obvious personal
compatibility, you need ethical compatibility. "The
relationship cannot violate the privacy and other rights of my
patients or ethics of my profession," says Aukai. For
instance, Aukai does not make dietary recommendations; he
appropriately referred such queries to Yen when they shared
space.
- Responsibility. Understand and uphold all agreements.
All responsibilities, even the most simple and obvious, must be
clearly defined and followed.
"The bottom line is that we must communicate and work it
out," says Aukai. "It's hard work but worth
it—like having a roommate or being married."
Gerald Kinro lives in Kaneohe, Hawaii, where he writes and
grows grass—he's a horticulturist with an interest in
turf.