Sharing Office Space Having an office mate can help your business--just make sure you choose wisely.
By Gerald Kinro
Opinions expressed by Entrepreneur contributors are their own.
Kevin Yen thought he was done with having roommates. Then, in1998, he opened Designer Body, a food supplement store catering tothe fitness-minded. The location he found on a busy street inKaneohe, Hawaii, seemed ideal. There was a problem, however: Thespace was too big, and the rent too high. Easy solution: Yenapproached a friend, Joey Aukai, 35, who was looking for a locationto practice physical therapy. Aukai agreed to share the space andrelated expenses.
Although Yen moved out of the space in January, both partiesagree the time spent sharing an office was beneficial to bothbusinesses. Designer Body's customers, because of theirinclination toward physical activity, often get injured, so whenthey learned there was a physical therapist on-site, they becameinterested: "Many [ended] up seeking treatment fromJoey," says Yen. The reverse was also true: Aukai'spatients or their family and friends often became DesignerBody's regular customers.
Furthermore, since the companies kept different hours, theycovered for one another during absences by answering questions andtaking names of prospective clients. "This cuts staffingrequirements," says Aukai.
It's Not Just for the Money
"This synergy from sharing space is a benefit often moreimportant than the actual expenses saved," suggests businessand economic consultant Chuck Wolfe, principal of Claggett WolfeAssociates in Auburn, California. Wolfe's firm shares spacewith an affiliate, fellow business and economic consulting firmAgricultural and Community Development Services (ACDS), based inJessup, Maryland. By having phone lines in each other's homebase and sharing other facilities, they're able to bring eachother work and collaborate on projects. Whereas ACDS specializes inrural communities, Claggett Wolfe covers a broader market andrelies on ACDS for its expertise in agribusiness.
"Sharing can give a small business the same benefits of alarger and more diverse one," says Duke Burruss of ACDS."Claggett Wolfe is across the continent. By sharing, ournetwork develops and allows us to act like a larger, more diverseentity 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 andhabits. One person might like carpet, while the other likes tile.Or, on a grander scale, there's the potential for completeincompatibility-making it very important to carefully choosethe person you share office space with. Should one party decide tomove out, that could cause a sudden drain of funds for the oneremaining. Aukai and Designer Body solved this problem by agreeingto give one another three months' notice before leaving."This gives the other party time to find someone else or toprepare in other ways," says Aukai.
All told, however, sharing office space can be ideal, as long asyou adhere to these principles:
- Synergy. Businesses that naturally complement each otherwork best.
- Respect. Try to tolerate differences and communicateopenly. Keep business and personal relationships separate.
- Compatibility. Besides the obvious personalcompatibility, you need ethical compatibility. "Therelationship cannot violate the privacy and other rights of mypatients or ethics of my profession," says Aukai. Forinstance, Aukai does not make dietary recommendations; heappropriately referred such queries to Yen when they sharedspace.
- Responsibility. Understand and uphold all agreements.All responsibilities, even the most simple and obvious, must beclearly defined and followed.
"The bottom line is that we must communicate and work itout," says Aukai. "It's hard work but worthit-like having a roommate or being married."
Gerald Kinro lives in Kaneohe, Hawaii, where he writes andgrows grass-he's a horticulturist with an interest inturf.
