It’s neither a cliche nor an exaggeration to say that the world of business is changing rapidly, and the old world of companies leasing their own office spaces while footing all the costs and labour required to put it together is one of the many old practices that are disappearing. Traditional offices are fast being replaced by the concept of a serviced office.
In case you’re unaware, a serviced office is a workspace with the essentials every office needs already built in: furniture, high-speed Internet, reception, meeting rooms, conference facilities and more. All the user has to do is pay for use of the office and move right in. It’s not exactly a brand-new idea, but the increasing demand for more flexibility among startups has seen the sector boom.
Below are some of the best reasons that businesses large and small are deciding to invest in serviced offices:
1. Costs
Even though many serviced offices look fancier and come with more prestigious addresses than offices a company might choose to rent for itself, the overall cost is actually cheaper than most expect. The main reason for lower costs is that businesses can choose exactly how much office space they need at that particular time, and not have to speculate on the future.
Further savings are made by not having to invest any capital in the costs of setting up such as Internet, phone lines, and utilities. These are simply built into the rate of the office. This is great for businesses because it means that rather than investing in their own office that could have further hidden costs, they can invest in office space where what they are quoted is what they will really pay.
2. Flexibility to Grow and Contract
Following on from the previous point, when companies are small but in need of office space, they face a difficult choice. Should they sign up for a lease on a small but affordable space now that they may struggle to grow into? Or should they take a chance on a larger office lease that will cost more initially, but that they can grow into as their revenue grows and more staff are needed?
Serviced offices eliminate this dilemma completely, allowing companies to take on exactly the amount of space they need at any given time. Leases come in short- and long-term formats, meaning your office space can grow and contract as your company does.
3. Location
Serviced offices are invariably located in some of the most prestigious CBD buildings in cities across the world. Where previously it was hard for small businesses and startups to get their hands on impressive-looking premises, serviced offices make that possible. It helps to make a good impression when attracting new clients, and also means you can put yourself in great central locations that are easy for all of your team members to access via public transport if needed.
4. Risk Reduction
In the second point we discussed the flexibility of serviced office contracts. This ability to expand or contract your office space with your company is just one of the important ways that these office spaces help to eliminate risk. If you know that you have the option to retreat into smaller offices to reduce overhead if and when business turns sour, it makes investment in your expansion far less risky.
5. Allows More Investment to Be Used on Critical Areas
Finally, if you’re running a business into which you, your partners, and possibly outside investors (including family and friends) have invested serious money, then it’s always pleasing to see that money spent on areas that will deliver real, measurable growth for the business. Spending it on an office space seems wasteful when it could be better used for marketing, lead generation and hiring talented people instead!
