By Jody Grunden
With a brick-and-mortar company, there are a number of standard costs that you would expect to have, such as rent or mortgage, utilities, building repairs, furniture, technology, etc. The total amount of these kinds of costs typically falls in the range of 3-4 percent of the company’s annualized revenue. That amount can be pretty significant for a lot of companies.
MORE: How to Run Effective Leadership Team Meetings | Toss the Org Chart for an Accountability Chart | How Core Values Affect Remote Work Culture | How ‘Tech Stacks’ Can Help You Standardize | Ready To Be a Virtual CFO?
Exclusively for PRO Members. Log in here or upgrade to PRO today.
Some business owners may think they can save the company all of that money by going remote, but I personally believe that’s a terrible idea. While it’s true that a distributed company doesn’t have the costs that come with having a physical space, the very nature of a remote work environment results in a completely different and unique set of needs that should be considered in the company’s annual budget.