In today’s competitive business world cost management is becoming a crucial concept for successful businesses. Specifically, office spaces take up a large investment and ongoing expenses in terms of maintenance for businesses, which greatly impacts a firm’s cost-management attempts.
Even renting office space is an unavoidable recurring cost. On average, an office space per person can start from $300 per month. This average figure can go up depending on the number of employees, location of the space, view from it, and the proximity to other metro areas. Not to mention, when renting a space, the price is set exclusively for the property only and comes unequipped. So furnishing, adding other amenities, and maintaining will cost more than the monthly rent. This high-cost influence by conventional office spaces has made serviced offices a cost-effective alternative for modern businesses.
How Serviced Offices Work?
A serviced office is a concept of workspace that contrasts to a traditional conventional office space in different ways. While most of these differences favor cost-effectiveness, some enhance the flexibility, convenience, and enthusiasm among employees. This thereby boosts both the quality and performance of an organization. In simple terms, a serviced office space is a fully furnished and equipped workspace that is usually managed by a company that offers businesses the ability to rent out individual rooms or floors for business operations.
The primary concept of a serviced office space as the word says is that they are “serviced”. This means that they typically include certain services and amenities as follows,
- Furniture such as racks, lights, chairs, tables, or whiteboards
- Fully trained front desk staffs such as receptionists
- Fully equipped conference or meeting rooms
- Kitchen with a fridge and a pantry, coffee and tea making facilities, and dinnerware
- Cleaning and maintaining services
- Internet connection
- Administrative or stationary support such as faxing, mail delivery, and printing
- Assured security using CCTV or a security officer for the property
- Telecom services such as webcams, phones, and televisions
- Reserved recreational places, games, or other breakout spaces where employees can casually gather.
These services and amenities may vary depending on the property manager, facility Management Company, or office provider. However, as it’s clear in a conventional office space or when renting office spaces, the “servicing” concept of the workspace should be financed independently in addition to the rent or maintenance cost.
Here are 3 reasons why serviced offices are a cost-effective alternative for modern businesses with that background set up.
Cost Saving
The first or perhaps the most important feature that makes serviced offices a cost-effective option for business is their ability to support cost-saving. As serviced offices are fully equipped and furnished along with other amenities, a business will not have to spend on these separately in addition to the rent. The monthly or lease payment a business makes for a serviced office includes all the amenities and services it provides along with it, including maintenance.
On the other hand, if a business has its own office, not paying rent is the only cost-saving option it can have. Cleaning, maintaining, repairs, and paying front-line staff are all still an unavoidable monthly cost. With serviced offices, a business incurs’ monthly expense is inclusive of all these services and amenities, supporting a substantial cost saving.
Moreover, with each growing stage of a business, the requirement of an office space varies. With growth, businesses may expand their employee base, customer base, and even branches. For example, some businesses may have to expand to new cities to reach new customers. In such situations purchasing or renting a new property when expanding across the country can be a hassle unless it’s a large organization. Doing this can be equally costly with the installation expenses, furniture acquisition, equipment, and other amenities, and maintenance. With a serviced office, a business can do business expansions without a hassle.
Reduce Risks
Business risks are inevitable, especially for startups and freelance operations. In such cases, serviced offices reduce the risk of businesses owning or renting office spaces with the additional installation and amenity cost while carrying the unpredictability of making a profit. When businesses own or rent spaces, it becomes an obligation to either maintain or pay rent despite the success of a business operation. In truth, such risks can reduce the potential success of a business, especially for startups, with the complexities involved in managing costs.
With the flexible lease-agreement serviced offices offer, it’s easy to rent out office space with all services and amenities included only when it’s necessary. So it’s unlikely that business will be tied into a yearlong agreement when it’s still picking up or working to establish itself.
Businesses can rent serviced office spaces for a few weeks or even a day, making it a welcoming offer for freelancers. So freelance business operations like photography, videography, film making can also reduce the high-cost risk involved with renting or owning office spaces and amenities only to be used occasionally or for on and off projects. Also, having a serviced office space fully equipped to be rented easily for a day or few weeks reduces the risks freelancers will have to face in missing urgent yet profitable projects.
High Efficiency
In an office, most of the spaces are infrequently used. This includes spaces like the pantry, conference, and meeting rooms. With serviced offices, businesses have the option of paying on a “pay-per-use” basis. It is far more efficient and cost-effective than owning meeting rooms occasionally used or paying monthly for rents and utilities when needed only for a few hours per week.
Apart from this, serviced offices come ready to go, which means that serviced offices are well-equipped for a business to start operations straightaway at the point of renting, which avoids setting up time. When businesses own or rent office spaces, they call for certain installation and other setup costs. This setup time can result in businesses missing calls and deals from potential clients amidst the stress of moving or setting up.
Some businesses recruit professionals to organize meetings, conferences, and other formal events, to ensure efficiency. With a serviced office in place, the cost of such professional recruitments can also be cut down easily. Overall, high efficiency induced through a serviced office can support organizational productivity, which will benefit the overall financial performance.
Those who are looking to make a switch to a serviced office get in contact with The Executive Centre, for exclusive workspaces catered for all business needs.
