3 ms·

I think this is something that is highly variable - based on personal requirements, cost of living in your country and your acceptable minimum standards of comf

I think this is something that is highly variable - based on personal requirements, cost of living in your country and your acceptable minimum standards of comfort. I think techniques to minimise burn would be more interesting than actual rates. One tip from my startup: I think a lot of people think getting employees and office space should happen at around the same time. I don't think office space is worth the premium you pay for it until you have more than a couple employees. We have one already and will probably only move after we have employed at least three more. Obviously a caveat here is that the house must be sufficiently pleasant for work and living and that your work is not something that requires client facing offices.

deleted 16y ago
[deleted]
tyrelb 16y ago
We minimize the burn by: - keeping a highly active role with the outside developers - ramping down costs in all areas except development and minor ($1,000 per mo) G&A - minimal salaries - pay the first employees "rent money", with a quick rampup in salaries once cash-flow positive - pull in less money - and gives you incentive to figure out how to do things with less money - keep the 'thinking' in-house as much as possible - don't hire the wrong people - so that you don't waste time/money with the wrong people - PLAN - plan your launches, align your strategy and spending, etc.
tyrelb 16y ago
Agree with office idea! Don't sign any long-term leases (over 6 months), and keep it month-to-month. If you start to take off, your damn lease will come back to haunt you... this is a burnt-out economy - grind those leasing agents down, get them to throw in free furniture, free rent, renovations, etc. with the promise that you'll expand out in a couple months with a larger space in the same building. When you get office space - you'll likely need insurance, phone setup, internet, etc... so get the landlord or phone company to throw all these things in for free. REPEAT: no long-term lease, nothing more than 6 months, and better month-to-month. And nothing beats the kitchen table with a few guys around it.
- blackswan 16y ago
  I agree with what you write re: bargaining with the leasing agent - a couple of my friends have got really good deals recently by simply saying "I'll take it now if you include 3 parking bays and give us a shorter-term lease" or equivalent. Now is actually a really good time to lease space if you are certain that it's the right thing cash flow wise.
  - redrobot5050 16y ago
    Another idea is to sub-lease un-used space of a business. A couple investment banking firms in Manhattan that have significantly downsized have rented out floors to start-ups. You get free phones and private WiFi as part of the deal. My friend's start up is doing this and its pretty nice. There are a couple of micro-startups (3-5 employees) on the same floor with his company right now, so it got that "incubation" feel.
jasonkester 16y ago
Here's my take on the whole office expense thing: http://www.expatsoftware.com/articles/2006/12/chamonix-branch-office.html http://www.expatsoftware.com/articles/2006/12/chamonix-branc... If you're going to spend money on a building with room for developers and a fast internet connection, there are much cheaper places to find that building than an office park in the suburbs. Kalymnos, for instance, has apartments you can rent for $20/day in the off season, which is why you'll find me there this fall.

deleted 16y ago

[deleted]

tyrelb 16y ago

We minimize the burn by: - keeping a highly active role with the outside developers - ramping down costs in all areas except development and minor ($1,000 per mo) G&A - minimal salaries - pay the first employees "rent money", with a quick rampup in salaries once cash-flow positive - pull in less money - and gives you incentive to figure out how to do things with less money - keep the 'thinking' in-house as much as possible - don't hire the wrong people - so that you don't waste time/money with the wrong people - PLAN - plan your launches, align your strategy and spending, etc.

tyrelb 16y ago

Agree with office idea! Don't sign any long-term leases (over 6 months), and keep it month-to-month. If you start to take off, your damn lease will come back to haunt you... this is a burnt-out economy - grind those leasing agents down, get them to throw in free furniture, free rent, renovations, etc. with the promise that you'll expand out in a couple months with a larger space in the same building. When you get office space - you'll likely need insurance, phone setup, internet, etc... so get the landlord or phone company to throw all these things in for free. REPEAT: no long-term lease, nothing more than 6 months, and better month-to-month. And nothing beats the kitchen table with a few guys around it.

blackswan 16y ago
I agree with what you write re: bargaining with the leasing agent - a couple of my friends have got really good deals recently by simply saying "I'll take it now if you include 3 parking bays and give us a shorter-term lease" or equivalent. Now is actually a really good time to lease space if you are certain that it's the right thing cash flow wise.
- redrobot5050 16y ago
  Another idea is to sub-lease un-used space of a business. A couple investment banking firms in Manhattan that have significantly downsized have rented out floors to start-ups. You get free phones and private WiFi as part of the deal. My friend's start up is doing this and its pretty nice. There are a couple of micro-startups (3-5 employees) on the same floor with his company right now, so it got that "incubation" feel.

jasonkester 16y ago

Here's my take on the whole office expense thing: http://www.expatsoftware.com/articles/2006/12/chamonix-branch-office.html http://www.expatsoftware.com/articles/2006/12/chamonix-branc... If you're going to spend money on a building with room for developers and a fast internet connection, there are much cheaper places to find that building than an office park in the suburbs. Kalymnos, for instance, has apartments you can rent for $20/day in the off season, which is why you'll find me there this fall.