When you consider the average overhead costs of your operations and think of an alternative way to run your business cost-effectively, you will most likely assume that office spaces make up the most of your expenses. Whilst rental and energy costs increase, you still need to ensure that your office space will provide for the needs of your company. Serviced offices and leased spaces have their differences, and it is important to know which one is perfect for your business.
Choosing between a serviced office and a conventional lease is not that easy – there are a lot of things to consider before making an investment for your company’s growth. Here are a few points to help you create a workplace better suited to your business needs:
Lease or rental terms. Startup businesses usually choose a serviced office since their returns on investment are uncertain and the lease for a serviced office can only last for a few months. Serviced offices are more budget-friendly because of its manageable monthly payment plans that include facilities and maintenance. On the other hand, companies that have been around the block normally invest in a conventional lease since they are more familiar in responding to the demands of the market with their resources. Take note that serviced offices are not only for startups. large corporations also find it more feasible to use serviced offices especially if you want to expand your area without having to out a large amount of money.
Maintenance. If you are more comfortable in outsourcing the cleaning staff and security personnel then having a traditional office will better suit your preferences. But if hiring a service personnel is not part of your budget, a serviced office is the right place to start. In a serviced office, the management is mandated to provide security and a maintenance crew as part of the monthly fee. A serviced office is complete with all administrative needs necessary to maintain a clean and well-serviced space. This is great if you want to lower your long-term costs and overheads.
Facilities. Both established businesses and startups would want to set up an office with complete facilities from air-conditioning to computer systems. But making huge financial investments is not advisable for all companies. If you have your own office design and layout, conventional office space will give you an opportunity to create a customized workplace that defines your company theme. However, serviced offices come with standard business furniture and amenities such as conference rooms and telecom systems , this will give you more control over operational costs. The facilities that you are allowed to access are clearly stated in the contract, so cost transparency is not an issue.
Working environment. Having an excellent business community is one of the goals of every company, may it be a startup or a large-scale business. Although traditional offices are known for having a flexible working environment, serviced offices provide a healthy sense of community. Due to the diversity of businesses residing in the area, networking opportunities are right in front of your desk. The staff who handle the area and the other occupants can easily be recruited as business partners.
Now that you’ve been briefed about all the necessary considerations in choosing the right office space, you can carefully consider which option is tailored to your business. Keep in mind that both the traditional and serviced office setting has their perks, but signing a short-term contract on a serviced office lets you explore new markets without risking your investment.