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Starting a High Tech Business: Get a Clubhouse
I’m starting a new business called Kynetx (nothing to see there yet). As I go through some of the things I do, I’m planning to blog them. The whole series will be here. This is the third installment. You may find my efforts instructive. Or you may know a better way—-if so, please let me know!
One of the things I realized pretty quick after getting serious about a new startup was that you need a clubhouse. It’s fine to work from home, meet in coffee shops, and go cheap at first, but eventually you want to get real work done. For me, that means a place to go that is specifically about that effort.
This may seem like an unnecessary expense that can wait until you have more funding that your credit card, but I find it well worth the money.
First, if there’s more than one of you in the startup, it’s a place to show up every day, discuss what needs to be done, and help keep each other motivated. Second, I find it very encouraging to have “an office” for the company; it’s a big step and makes the venture seem more real to me and everyone else.
I’ve found that you can rent 200-300 square feet (one medium office that you can squeeze 2 desk into) for well south of $750/month in Utah and I suspect that’s true in many markets. Call in favors. Do you know someone with a spare conference room? I’m lucky to have pretty good contacts, but still worked my way through several friends looking for a deal and I finally found one.
I’m on the advisory board for Canyon Park Technology Center in Orem (the former WordPerfect campus) and I got some space there. That’s not a deal they did just for me—they regularly do incubation deals and are easy to work with. Novell has a similar deal on their campus at the Open Source Business Center. Many cities have economic development centers that offer incubation space. Look around…you’ll find something.
Another option is a co-working space like the one Sean O’ Steen describes. There are some formal tenants who have keys, permanent desks, and so on. I see this as less than ideal since it won’t feel like it’s “yours” but is better than working at Starbucks.
My minimum requirements:
- Internet connection—most incubation spaces will throw it in. If not, you’ll need a DSL line and you’ll probably get stuck with the high “business” DSL charge even though you won’t get anymore out of it.
- Comfortable chair—I don’t like to skimp here. I’ll be sitting in it all day.
- Desk—No need to go fancy; a door on two saw horses will suit most needs.
- Whiteboard—two if possible. I love whiteboards for planning, keeping notes, and serving as the centerpiece for discussion.
- Refrigerator—gotta keep the diet coke cold. :-)
- Large monitor—if you’re writing code don’t skimp on this either.
Kynetx nameplate on office in Canyon Park TC (click to enlarge) |
Most landlords have old furniture from previous tenants, so be sure to ask if they’ve got any spare chairs, desks, whiteboards, etc. that they’d be willing to throw into the deal. Many will. There are also some great deals around from time to time. We found a few great little desks at Office Depot for $125. Not bad.
You can get away without a phone and just use cells. I happened to have a Polycom and a spare Vonage line from an earlier venture, so I moved that in for conference calls—that’s come in handy a few times when I have to be on a call.
I’ve left computer off the list above since I live on a laptop that I take almost everywhere. Obviously if you don’t have something suitable, you’d need that too. There are lots of cheap places to find serviceable computers. BYU has a surplus computer sale regularly where you can pick up something that will run XP or Linux just fine for under $100. Given the choice of fast computer or a big monitor, I’ll pick a big monitor every time.
I took a few photos of our set up in case you’re curious. All in all it a pleasant place to get meet and to work. I’m pretty happy with it.
Now you’ve got a place for your new business to call home. Invite some friends and colleagues over and talk about your company. I think you’ll find that it feels good and focuses you on the business in a way that few things will. Now, to get to work…
Posted by windley on October 25, 2007 8:34 AM



Comment from John at October 25, 2007 4:57 PM
I like the name "clubhouse" - and see the merit. As kids we all had one, and they worked - it builds some spirit, passion. But what I see in the photos are pretty fancy digs - maybe $1-2k in furniture, maybe $750+/mo in rent ($9k/yr) and maybe you did get a pretty special deal just to pay "only" that. With fancy diggs employees just naturally expect other nice things, soon it's the Olympus water guy and so forth and soon the costs rise. Kind of trap we fell into - now wish we went cheap (I mean < $100/mo) clubhouse concept.
There are some lower price finds in industrial / flex areas - we had some hangar space close to Boulder, low price, close to university for interns. Frankly, a walk out basement room or room above garage or in barn is ideal and avoids all the business rate stuff.
With failure rate so high, best to spend virtually no money until a prototype or beta product is out the door and starts selling.
Comment from Sean O'Steen at October 25, 2007 9:18 PM
I think a coworking space provides much of the clubhouse spirit. With the right crowd, assistance and motivation are inherent in the community. However, coworking has one shortcoming that a private office can provide for a startup venture. That would be the private part. I'm also working on a startup with several partners and I've found myself using the courtyard outside or my car to conduct some of the sensitive ($$$) conversations.
Thanks for the woofie Phil!
Comment from Travis HeavyInk at October 31, 2007 8:16 PM
Our two startups (SmartFlix.com and HeavyInk.com) are run out of a 1,000 square foot space, in a beat up old brick building. Our space is actually what used to be the men's cell block in a jail!
It's awesome space, and it's much much much better than working out of a spare bedroom.
We pay $2 k / month for 1k ft^2, just outside of Boston.
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