Consulting requires linear increase of resources. Software product requires logarithmic increase of resources. Therefore product business is more efficient to scale than consulting.
Yep. And the way the developers--on Bravo's Million-Dollar Listing--think, they not only want market price but also to set a new record for market price (per square foot).
Of course they want that; who wouldn't want more money for their business? But competition can drive the price down just like any other sector, and allowing for more housing to be built means more competition.
In the early days, we were all about making a great place to be a software developer in New York City.
Yep, that was all there was to it...
I...decided to start a company with my buddy Michael Pryor. Making a nice place to work was our primary objective. We had private offices, flew first class, worked 40 hour weeks...
The tagline was “building the company where the best software developers want to work.”
Regarding coworking reimbursement, what are the bounds? It's possible that you could easily go over your prior office expense of 7k/mo.
The average WeWork space is 600-900 USD/month for a single-person office in NYC and SF. And there is a lot of turnover amongst coworking businesses that offer space for any cheaper. So, below 600/mo does not seem to be viable, at least in these two markets.
If you offer to reimburse all employees' coworking leases, at an average of 600-900/mo, then your total office expense would exceed your prior 7k/mo after about 10 employees.
Automattic, another distributed company, offers a stipend of 250/mo toward coworking rent. Basecamp (aka 37signals) offers 100/mo. In both cases, these are certainly better than nothing but are only a fraction of the market rate.
Quite the opposite. Comparing anything with net pay is pretty pointless. Your total tax rate depends on many factors: total household income, number of kids, deductibles, filling jointly or separately, etc. Plus, the exact amount varies over the year, depending on how much you've already contributed in sales and federal taxes. On the other hand, gross pay is a single, round, fixed number.
I understand this may sound a weird concept for people in some countries outside the US, but it's a much simpler concept once you get used to it.
To continue off of what guiambros said, unless you get no refund or bill come tax time every April, you don't know what your net pay is until Q2 of the following year.
Perhaps those numbers are average or even below average for the Bay Area. Furthermore remember those are global caps, so unless you are in the top pay grade in the company, you'd likely make less, I assume.
Yeah, actually I was looking in Jersey City and they were $1500, $4500 is insane to me. I'm from the NY tri-state area but I never bothered trying to live in NYC.
Consulting requires linear increase of resources. Software product requires logarithmic increase of resources. Therefore product business is more efficient to scale than consulting.