5 reasons working from home (or Starbucks) is a bad idea

(Editor’s note: James Reinhart is a serial entrepreneur and co-founder of thredUP. He submitted this column to VentureBeat.)

So you’ve got this idea for a product. You pull a few friends in and you start working at the local coffee shops – or, if you’re frugal, your home office. You plug in your Mac and camp out all day drinking the free refills and bumming the wifi. You’re nimble. Not tied down to a space, free to enjoy the flexibility that comes with being an entrepreneur. Cool!You and your team check-in regularly on Skype, you use Basecamp and Pivotal Tracker and you get together a couple times a week on a video conference or in-person. You’re saving a fortune by not having an office, right? You’re doing everything right to bootstrap, right?

Wrong.

The “working from home/working from Starbucks” bootstrap is one of the great fallacies of start-up life. Here are five reasons why your start-up needs to find some proper office space right now:

Productivity – You’re functioning at about 75 percent productivity in a coffee shop or at home. The distractions are everywhere. At the coffee shop it’s the annoying person on the phone; at home it’s the cat, the dog, the neighbor, the internet is down, the TV is on…

The fact is you’re not at “the office” so your time is more malleable.  You can “meet for lunch” or “wait for the FedEx guy” or whatever excuse you prefer. No one is holding you accountable.

You may technically work long hours, but you’d need to work a 16-hour day to overcome the productivity gap. And despite the blasé use of the phrase “100-hour work week” the fact is very few entrepreneurs work those hours regularly, if ever (that’s 7 days a week, 15 hours a day – pretty tough).

Space to think – If you’re serious about building a company –a real company, not an app or a feature – than you’re going to need space.  You’re going to need whiteboards and desks and printers and stable Internet service and phone booths and meeting space.

A 30,000 ft approach tends to work at the earliest of stages (hence the well-worn “conceived on a napkin” cliché), but unpacking the intricacies of customer service or mapping out hypotheses about your product iterations are awfully hard without disposable surface area.

Yes, there are virtual tools for all of this, but the reality is that these tools are largely poor substitutes for real-life problem solving and company building.  The virtual tools are designed as supplements, not as replacements.  One of the reasons why incubators (Techstars, YC, etc.) exist is for the energy and the space.

Don’t lose that third space – Without space, your boundaries between work and play dissolve to the point that you don’t know how to work and how to play.  When you live in coffee shops or work at home you tend to go at one speed, whether you’re crushed for time or not. When you have an office with a product deadline looming, you stay there until it’s done.

When you miss deadlines at Starbucks it’s so much easier to write them off because you’re working remotely and “these things take time” and “hey, look how much money you’re saving by NOT having an office.” And if you’re the kind of person who used to have the coffee shop as a place to go and clear your head while pounding out some element of the business, that’s no longer the case.

World-class teams don’t work from home – For a little while you can get away with attracting people to your kitchen table, but very soon you’ll be competing with other start-ups for talent – and your French-Press and Brita is not going to get it done.

People want to be part of something – especially early in a company’s life – and that “something” needs to feel like an inspiring space to work. This place needs to (in some small way) say “we’re building a great company here and you should stick around.” Without even a small space with a shingle that says “here’s where we grind and make magic happen” it’s just too easy for folks to go work somewhere else.

Space is cheap – Office space is cheap and plentiful assuming you don’t need super nice digs. It’s also surprisingly cheaper than you think when you do a fully loaded cost analysis. When you’re not at the office, the chances of you bringing your lunch are probably lower and the coffee is definitely more expensive.

The price of a small, fully-functional office for three people in Cambridge right now runs about $800 all in.  For almost a year, we had 7 people in roughly 550 square feet. In our new San Francisco office, we have 2,000 feet and don’t pay too much more than we did in Cambridge. If you really think you have a company – a real company, remember – put up the $2,500 for 3 months of rent and start building.

I am a notorious stickler for keeping the burn rate low, but I realize it’s important to know where to turn the dials  Lean, bootstrapped offices help you quickly discover whether you have just another good idea or the capacity to deliver something people want.

And if your company isn’t worth a few hundred bucks a month in rent, then maybe you need to think hard about whether you’re working on the right really big opportunity.

Photo by Ben McLeod via Flickr

  • technovegas

    Many successful companies would beg to differ. Working from home:- controlled environment. The distractions are not a problem if you set expectations.- controlled interruptions from colleagues (have you tried coding with people coming to your desk every hour?). Switch off phone and email, complete isolation ensues.- cheap. Burn rate is king.- distributed teams work, and allow you to pick great talent

  • http://joshcaza.com Joshua Chase

    Very intriguing article. We started our company about a year and a half ago and we use Co-Working spaces in Atlanta. Currently at Strong Box West and I have to say it does separate home from work and maintain that much needed work life balance.

  • technovegas

    Ps your last sentence was pretty shitty. Your logic seems to be, office rental = you have a big opportunity. Working from home = you don't have a big opportunity. Did you put that in your pitch deck?

  • revolutionproductions

    While I tend to agree with most of the points in this article I think it depends on the overall layout and environment you can create in your home as an office. I used to rent an office in the center of town. While it was great separating my home and work/life. It felt like I was an employee still travelling 40 mins in the subway and the crowded busy streets. Most of the office spaces near to me were very expensive. In the end I moved the office back to my home and converted on room into a proper style office. I feel much more relaxed and productive as every before and feel more motivated. Whereas before I was wasting time travelling on transport. But yes working in starbucks is the worst idea you can every have to do your business…

  • http://twitter.com/brianvosburgh Brian Vosburgh

    Assuming you're capitalized well enough to take down some rent, sure, but not every startup is headed by single 21 year olds able to live on Ramen. Some of us have other ventures, mortgages and kids, so we're working on building revenues and looking for financing/funding… But yes, as someone who has worked from home/Starbucks for the last 5 years you've nailed the distractions and the eventual normalization of every minutes of the day basically tasting the same. I look forward to an offfice and daily interaction with people, but sometimes you gotta take what ya got. It's about survival and tenacity more than anything….

  • http://austintechgeeks.com Ricardo

    I agree partially with this post, only the part about getting proper space IF and only IF you have more than just a few people and they are all in town and they all agree to it – it just makes sense! However, if you are the only person working in your startup, working from home or a coffee shop is highly productive, yes there are some distractions but you can control them. If you are at the coffee shop you can just put on your headphones and code away, if you're at home then just find a room and make it your office. In the other side, when you are in an office environment, people would come to you often and interrupt you, it is just very easy to do. Also, I tend to believe than when you are in an office environment people like to have meetings all too often, again, it is just very easy but most of the times those meetings aren't productive and they last too long!

  • bmulford

    WFH (working from home) seems to be one of those polarizing topics. I believe it largely depends on your work-style and personality. Some people are as effective from home as they are on a plane (given equal accessibility).Working from Starbucks? For some headphones+latte+laptop is more than enough to concentrate. For others its a relief from home-life interruptions. I personally can't do it, but known folks who could. Its like reading technical documentation online. Some people can absorb from reading a PDF and others have to print it out and annotate the page with a pen to retain information. One is not inherently better than another, just different.Where I depart from the author is in the notion that office space = productivity. He's confused his personal opinion for fact then compounded the mistake by framing it as a virtue.

  • dontfeedthealligators

    All my life I thought it would be heaven to work from home. Now I do.From morn till midnight, wife, toddler, mother-in-law, housekeeper, builders, and three phones.Thing is, I know when I'm finished for the day. The wife, totally different idea. Heaven.

  • http://twitter.com/GregCott GregCott

    Couldn't disagree more. Love to know where you arrive at the 75%productivity number—personally I get alot more down working from home.Some people need the social interaction and the peer pressure /oversight to work so they need a 'setting; to do so. Others are adults :)

  • http://twitter.com/shedworking shedworking

    Productivity – all surveys show that homeworkers get more done than those in 'traditional' office environmentsSpace – the idea that we should work in factory-sized spaces is relatively new, dating from the Industrial Revolution. Cottage industries are the more natural human work spaceThird Space – boundaries between work and life are already very blurred. The idea that you only work in an office is outdated, as a younger generation of workforce will tell youSpace is cheap – It's not terribly expensive but it's simply unnecessary for many companiesWorld Class – the list of creative minds working from home is too vast to detail but would include Gustav Mahler, Henry Moore, Trevor Bayliss, Peter Gabriel, Roald Dahl, etc

  • http://austintechgeeks.com Ricardo

    I couldn't agree more with your last sentence… “Others are adults” Yes!

  • http://www.bigjobsboard.com Steve Jobs

    If your idea of having a company and apply for funding at VCs then you need a working office space. But for some small companies that does not need funding and just for having an extra income, a home office is enough. Also, working from home is best for people who have self discipline.

  • caseyschorr

    Speaking from the experience of starting up like you say (with an office), and then getting rid of our office, I totally disagree. At least for a somewhat established startup. Once you've got a core team that works well together I think you can get more done working from home, or at least having the midset of a virtual company even if you do maintain a small office space for meetings and whatnot.There's a huge difference between an office culture and a “work anywhere” culture even if you do have an office. I'm WAY more productive at home in my separate room that's a dedicated office. I shut my door when I don't want the girlfriend or anyone to bother me. When I actually need to have a meeting, I think twice about it because it means getting in my car and driving somewhere. If we're in the middle of a big release we can get together daily. But the other 3 weeks of the month when we're just doing our thing I don't waste 1 minute commuting somewhere.Regarding 75% productivity, did you factor in all of your employees that have hour-plus commutes, plus the productivity you're loosing by not being able to hire people who are awesome but won't relocate just so they can show up at your startup's office?I recently wrote about the 7 key reason we got rid of our office and took our startup virtual: http://blog.printfection.com/2010/10/7-reasons-we-ditched-the-office-and-started-working-from-home.html

  • http://twitter.com/pickshit pickshit

    Or maybe office space for a small startup is a waste of money?The startup world doesn't entirely hinge on Venture Capitalists footing the bill for office space, phone lines, and other crap. Many startups are bootstrapped by their founders, who are wise to reinvest in marketing their stuff rather than dumping cash into the money pit that is office space.Being smart with finances makes your company go farther, and also keeps the barrier to market entry low.

  • http://twitter.com/NormanTajudin Norman Tajudin

    I would add a 6th. People with voyeuristic or unsavory intentions using applications like Fire Sheep to peak into your unsecured online activity… Lock down those devices folks!!!

  • SpaceonTap

    Recent research has suggested that people who create their own working environment are more productive than those that don't. A vote for the home office?Run a business from home for improved productivity, reduced costs and maximum flexibility but make sure you have the perfect external workspace available on tap when you need it. Coffee shops are great for a change of scene and for informal catch-ups, but there are also a whole range of private spaces available for occasional use, from business centres to community centres, libraries to cinemas and most can be booked for an hour plus. Why stick to one place – variety is the spice of life! http://spaceontap.blogspot.com/2010/08/external-workspace-makes-home-working.html

  • http://www.tvinx.com Davor

    For the everyday business tasks it's quite ok to have office atmosphere. But for really creative and strategic thinking, isolated home spot is a king. There is no way you will envision some great innovative service in office: distractions and lack of creative focus are too high.

  • http://twitter.com/Krazy_Kris Kris M O'Connor

    Sorry – I strongly disagree especially with the “productivity” argument… Granted, not everyone is the type of person/worker that can be productive/motivated on one's own (i.e., they NEED to go to an office). But for the others, a place with a whiteboard won't make a difference.

  • http://twitter.com/kameraad52 Flexkantoor Kamer52

    @Joshua Chase: I used coworking spaces in Atlanta for years, also used city clubs from time to time as image need demanded. I couldn't agree with the article more — working at home was for me and my team a bad option, and the notion of working in a Starbucks on an unsecured wifi connection just did not do it for me absent a VPN or something similar. The only real difference I have with the author is that he presents only two options: rent your own office or work from home. This does not do justice to the other options (including, ahem, my own) which are worth looking into. It isn't any harder than looking for traditional office space, and it is pretty easy to decide if something “clicks”. Not to mention, with shared office space it really is a matter of a couple hundred bucks for office space, not a couple hundred bucks a month for office space, and then some more hundred bucks for utilities, cleaning, repair and maintenance, decoration, furniture (you know, those white boards don't grow on trees). When you find one you like it really is like coming home. Honestly, unless I had more than 15 salaried employees I think I would keep using coworking and shared space options. The advantages just keep on piling up.

  • martinsnyder

    Whats a phone booth ?

  • samtitle

    5 reasons why I think this “5 reasons working from home (or Starbucks) is a bad idea” article is off baseI’d like to offer my perspective on why working from a coffee shop (a Coffice) is actually a very viable option! I wrote this from a Coffice while about 30 people were blabbering around me (many of whom are Cofficers themselves), the espresso maker was shooshing away and baristas were calling out orders – I think I more than managed.Before I get into my response, I’d like folks to understand that where and how you work is a VERY personal issue. Please keep this in mind – especially when reading an article like Mr. Reinhart’s. There is no absolute solution to your office preference conundrum.ProductivityI’d be fascinated to know the origins of the “75 percent productive” statistic. From where I’m sitting – a local Starbucks, if you must know – my productivity is great! I’ve done the downtown cubicle. I’ve tried my best to work from home. And now I’m choosing to be a Cofficer; I’ve never been more productive than I am here. It certainly takes some getting used to, sprinkled with a degree of self-discipline; but once you’ve done it a while, the noise fades in the distance.Sure, I get shiny ball syndrome from time to time. But who doesn’t in ANY work environment. An open concept office with cubicle walls or your buddy listening to music too loud while drumming on his desk with a pen at the desk in front of you can be just as, if not more, distracting than a Coffice. Part of the reason I decided on this work environment is because I’m accountable to one person – me. Well…also to my clients, suppliers, vendors and others. But they couldn’t care less where I work.I have all the tech tools I need in a day to do what I do. In fact, I may have more than you office dwellers because I don’t have an I.T. person wagging a finger at me for downloading a new application for trial. I just do it. I am my own I.T. guy.Space to thinkI’m not sure why Mr. Reinhart chose to trivialize the talented folks who create apps or “features”. What kind of smart phone does he use? Is he certain that his company’s website and its features weren’t 100 percent coded from a home office or Coffice? Would he care? I wouldn't. The site looks great!My Coffice has plenty of space to think, work and collaborate. I chose it because of its size (among other reasons). Technology has allowed me to work collaboratively AND remotely with others. I don’t need a boardroom table and a whiteboard to do what I do. Moreover, as an independent consultant, I consider my company real – so does the government, because they keep taking some of my income. I provide a real service with real results for real clients. The size or location of my workspace has very little to do with any of that.Don’t lose that third spaceThis one’s easy. If I have a deadline for a client, I stick to it. If I’m working from Starbucks or Panera, a deadline is a deadline. If I miss it, my client gets angry, takes her business elsewhere and there goes my income, not to mention my credibility. Why would an office situation be any different? An excuse sounds the same no matter where you give it. Oh! And I know how to play and work AND separate the two. Sometimes I wish they were the same thing.World-class teams don’t work from homeQuite the sweeping generalization here. It’s likely that Don Tapscott and Anthony D. Williams (co-authors of “Wikinomics” and Macrowikinomics) would have a hard time swallowing it; so, too, would outspoken media consultant Chris Brogan, co-editor of Workshifting.com. Chris proudly works from a Coffice.Mass collaboration is becoming more and more commonplace; yet the rules governing where folks need to be collaborating from aren’t written in stone. Any quick search on Google will produce thousands of links to sources, articles, statistics, tips, tricks and other information in support of telecommuting, teleworking and workshifting. A world-class team doesn’t get to be world class because of the cubicles they’re in, but because of the world-class work they’ve done.Space is cheapMath isn’t exactly my strongest skill set. Ok…it’s downright embarrassing. But according to my calculator, if I bought two $2 cups of coffee every day each month ($124 in 31 days), it’s still cheaper than any rent check I’d see myself cutting for the luxury of office space. I think if I added a bought lunch every day, it could add up. But for me, a daily bought lunch is financially unrealistic and a line in my budget I refuse to add. In re-reading Mr. Reinhart’s piece and then reviewing my own response, the thought of having my own office space just seems ludicrous and a waste. I have the self-discipline to work from a Coffice. I also have everything I need here: a table, chair, wifi, power outlets, my own laptop bag of tricks, daily potential networking opportunities, great coffee (and snacks) and the motivation to prove to the uninformed that working from a Coffice is a viable option for anyone in business and beyond.Sam TitleChief Executive Cofficertwitter.com/thecofficefacebook.com/thecoffice

  • http://twitter.com/LynxTS Lynx Tech Solutions

    I both agree and disagree with many of the points. But in the end it all comes down to what your 'product' is, how many people are involved and how much face to face time you need with your customers. Not to mention what your personal preference is, regarding work environments.The main reason why I have so many distractions at home is that I am still watching over my youngest, who is not in school yet. So I do not sit down for more than 15 minutes straight. It also allows me to plan dinners ahead of time, and run errands during the day.One day however, I would like to return to the office, and be able to speak with adults on a more regular basis. :)

  • http://www.stephenbelanger.com Stephen Belanger

    I think this article generalizes far too much. It really depends on the people, the situation and the overall workload of the company as a whole. Having worked in both situations, I'd say I get far less done working on a set schedule at an office somewhere than at home on my own time.When I'm working in an office it's not very comfortable to me and there tends to be an excessive number of meetings and questions of little importance eating up my available work time. Then there is the issue of time needed to time available; in an office you tend to take lunch at a specific time and go home at a specific time, whether you are done your current task or not. Sometimes you leave something half done and have to waste 15 minutes the next day sorting out where you were before jumping back into it. Sometimes you finish a task, but you only have 5 or 10 minutes before it's time to go home. There is a tremendous amount of time lost to setting a schedule like that and a tendency to get distracted with over-planning.When I'm at home I can far more easily get “in the zone” and get some serious work done. I shut the door, put on some loud music and let the code flow out of me. It's like I've shut off the rest of the world and all that matters is what is in front of me. I can do in a day what would have taken me a week in an office, because I'm not being constantly bombarded with distractions when I'm trying to get my work done.If I really need to communicate with the team, I have Skype. It doesn't take any more time to type my question than to say it in person, and with text messages being logged and staying there until they are read, they can answer when they are ready, rather than getting distracted when they are in the middle of something important. Plus, explaining code or exchanging snippets is infinitely easier in writing than in person. Instant Messaging doesn't necessarily require an “instant” response; it makes for an excellent message queue, like email but faster and more fluid.There is many successful remote businesses. You even named a rather notable one right in your article. 37 Signals, the creators of Basecamp, are largely crowd-sourced, with programmers all over the map. They seem to be doing pretty okay regardless of that supposed weakness. How about Mozilla, they've got people all over the map too, but they manage just fine. In fact, I would argue that Mozilla couldn't possibly be as productive as they are if they worked out of one location. You can't find that much talent in one place. It's just not possible without some serious pull. Until you are the next Google, you have to take what talent you can get, and if that means making a choice between that rock star programmer from out of town or some local programmer that has a basic understanding of what you are doing you should totally go for the rock star.

  • boece

    Too bad this article didn't have any verifiable research to back up its wild claims about productivity and that “no” world-class teams work from home, both of which are demonstrably false. The author should have rephrased the article to “Why I prefer working in an office and not at home” rather than setting it up as an attempt to bait a whole host of responders into disagreeing with him about his silly claims. Many companies these days build large teams who are almost entirely virtual – and they still manage to be quite successful. All that aside my opinion is that it really depends. I worked at home almost 2 years for a Fortune 500 company that had a very active telecommuting program, especially for IT employees. The drawback was I didn't really have an ideal work space – our detached garage – which was usually too hot or too cold. It also didn't help that the garage was chaos personified – i.e., all of massive piles of junk were piled up around my so-called “office.” Now, if I had had a real home office with four walls where I could maintain some order I would likely have a different opinion of telecommuting but if you're like me and have a bunch of kids – a baby and two kids that at that time were both being homeschooled and thus were home all the time – and can't work in the house effectively then telecommuting isn't necessarily the best option.

  • http://sisyph.us/ ErikSchwartz

    It totally depends on your personal working style, what your role is, and the specific task you're working on.Some people do not have the maturity or discipline to work outside the office. Clearly the author does not.

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