Do I hire another employee or get a new office?

Dear Aunty B,
 
I’ve got a dilemma that I just can’t sort out. We’ve had a great start to the business – we help big corporates with OH&S training – and we are simply flat out. I need to hire, but I’ve got a problem – we’ve got nowhere for the new staff member to sit. We’re are all on top of each other as it is – I’ve been sharing an office with my PA for 10 months – and we simply can’t keep going without moving to a bigger, better office.
 
I’ve found a good spot, but it’s going to cost about $50,000 for the fit out. And that’s exactly the amount I need for my new hire.
 
So which should it be – the office or the new hire?
 
Squashed,
Perth
 
Dear Squashed,
 
It’s a tough one. Normally I’d always be in favour of the new staff member (you can almost always find a new desk somewhere) but the fact that you’re selling to big companies makes me think again.
 
These big companies tend to be most comfortable dealing with other big companies – or at least other companies that look big enough. There does come a time when you need premises where you are actually proud to hold client meetings.
 
So here’s the plan. Lease the new offices, do the fit-out and hold a big office-warming party with all your clients. When they see how swanky your new digs are, they’ll be happy to send more work your way and you’ll be able to hire that new staff member in no time.
 
Oh, and make sure the new office has got some room to grow. Sounds like you’ll need it.
 
Good luck,
Your Aunty B