My Lease is Up! Time for a Fresh Look at Overhead.

You've seen me post previously about renting too much or too nice of an office.  That was a BIG mistake of mine.  Worse yet, I had an escape clause that I could have exercised after either of the first two years of the lease, and I decided each time not to exercise it.  Dumb.

At the end of the first year, I figured I still needed the nice space to impress those clients that were going to walk through the door "any day now."  After all, it had only been a year, and everything I'd read told me I was supposed to still be losing money (which I was), so I thought I'd take it another year.  The two-year point was the pint, after all, at which I was supposed to start making money.

So another year went by, time to either get out of the lease or stick it out for the full three-year ride.  To tell you the truth, I can't really remember why I didn't exercise the early termination clause.  I know it was a conscious decision (i.e., that I didn't just forget and miss the deadline), but I can't remember why I made it.  Could be that I had a burst of business at the time that both made it inconvenient to move and convinced me that prosperity was around the corner.  Could be I was just stubborn and wasn't willing to admit that I had bitten off more than I could chew.  After all, I still had money in the bank back then.  Whatever the reason, I stayed in the for the long haul.

Now, the three years is up, and none too soon.  Beautiful building, great landlord, nice location, even fair rent -- but even the fair rent is more than I can afford right now.  So I am downsizing quite a bit.  A home office wasn't practical, so I still had to rent space, but at only about 36% of the rent I've been paying for the last year.  That ought to help.

A friend of mine helped me move some of my office furniture into storage (another expense, but I'm hoping I'll need it again in another year or so, and storing it is much cheaper than buying the same quality all over again).  He said to me as we were carrying something down to the truck, "I don't mean to sound callous, but I remember asking you as you were moving in (he helped with that, too), 'Are you sure you need all this space and this nice of an office?'"  I remembered that very clearly . . . damn!.

The change in office is a good opportunity to reevaluate all of my overhead.

Phone lines and Internet ISP?  Gone!  It will be less expensive for me to use cell phone for voice, Sprint wireless broadband for Internet, MyFax for Internet faxing.  With the wireless broadband, I can drop my ISP.  No hard feelings towards any of my vendors.  The AT&T service was fine, and I would happily recommend DSL Extreme, which was great.  But money is money.

Westlaw subscription?  That $500-a-month monkey on my back is over in about three more months, and I'm letting it drop.  I actually love the service, but handy as it has proven to be (working on those briefs and memoranda late at night, after the law library closes), my client load was never consistent enough for me to be sure I'd have clients to pass the cost through to every month.  I ate a lot of it out of my pocket.  Doing without will require two things: (1) a satisfactory, low-cost alternative (Loislaw, maybe) and (2) the discipline to adjust my work habits so I'm not doing late-night work and can get heavy-duty research done at the library (which happens to make Westlaw available to its patrons) during the day.

(You may be wondering why I have to work late at night when business has generally been slow.  Two reasons: (1) when I got business, it was in spurts, and (2) ADD [I think].)

The combined savings in rent, phone, Internet, and Westlaw will be around $1300 per month.  Yeah!

In any event, I'm sure happy for these changes.  Combined with a recent uptick in business, they are giving me reason to hope -- for around the 10th time or so since I opened my practice, I'm afraid --  that prosperity is right around the corner.

Here I go!