Your new venture must have started its operations at the comfort of your own home like most of the startup’s out there. However, eventually most of them move into an office due to several reasons.
Lack of productivity is one of the most important reasons why business owners move out of their homes. The realization that their efficiency is been compromised kicks in only after a little while. Most people to save some bucks start off from their bedrooms.
They underestimate the amount of discipline it takes to work from home and miss to be as productive as you would in an office environment.
Once the decision is made to move, they get overwhelmed by seeing the vast options available, which causes the process of choosing an office to be quite daunting and intimidating.
For business owners out there who are in the search of their new office space, we have summarized a comparison between a traditional office setup, a co-working space and a serviced office setup, so that you could choose what fits best for you.
Serviced offices and co-working space are fully equipped and managed by a dedicated team offering flexible and non-complex rental agreements. These plug and play offices have the added benefit of having all services and amenities readily available. i.e furniture, internet services, House-keeping, receptionists, security etc. All of this comes with the package.
Traditional offices involve leasing and all of the interiors and amenities need to be built by you before you can start working.
Here are some questions you need to ask yourself, to weigh which approach works best for your business.
What is your Initial Budget?
Considering the cost of setting up an office space is higher than ever, the first question you need to ask yourself is: How much are you willing to invest initially?
For Traditional offices, in addition to the agreed lease/rent amount, huge capital investment is required as you would be leasing an empty space like the below one and would need to build it up from scratch.
However, if you are an established business and can afford to raise the initial funds, it would work as an advantage because you can brand and decorate the office the way you want. You have more control over how to use the space.
For a serviced office or co-working space, there is Zero capital investment as they include the luxury of having everything already available in the office space. There would be a monthly rent you have to pay and that would cover all facilities like; internet and phone bills, cleaning, electricity bills, reception, security and maintenance, and any bill that comes up in the maintenance of the building. In most offices beverages (coffee, tea) also would be offered as complimentary.
Coworking is the most economical choice when compared with the three office types. Although coworking spaces does not offer as much privacy as serviced offices, they are preferred by freelancers and solopreneur because of direct access to enormous networking opportunities and being able to enjoy the perks and amenities the office offers.
Leasing terms of the three vary as well.
Coworking has a flexible payment term with a monthly, daily, and even an hourly rate. On the other hand, an initial contract for a serviced office is usually for 12 months, while a traditional office lease can run for a minimum of three years.
Long-term lease is more suitable for a stable company. But if you’re just starting out, or you’re not sure of your business’s stability or you just want to control your expenditures, a coworking space or serviced office is a smart choice for you.
Connected to this, is another question you definitely need to consider answering;
Where do you want your office space to be located?
This question is important because when you calculate your expenses per month, In case you are leasing a traditional office space the rents are going to be on the high side if you want to be located in the business hub of the state. Also most business owners want their offices to be located in areas that are easily accessible. It sometimes get difficult to find the right amount of space you need around the location you prefer.
Coworking spaces and serviced offices located strategically gives you an added advantage of having a good business address for your company.
Do you have the time and resource to invest during the setup phase?
Traditional offices would unarguably take more time and hassle to setup when compared to serviced or shared office spaces. Before moving in, there would be a whole lot of process to complete. The legal paperworks, government registrations, arrangements of the contractors to build up the place; phone lines, internet, electricity and other utilities need to be sourced alongside.
Now even after all this is completed you need to take care of the upkeep of the space. When tenants have full control of the space that means they are responsible for the upkeep. Thus when something goes wrong time and resource have to be spent to rectify it.
On the other hand, a totally hassle free approach is partnering with a serviced office or a co-working space. They have all the necessities mentioned above by the time you have decided to move in. You just have to register with a coworking company and start working right away. Moreover, the facilities and utilities are managed by the host and you wouldn’t even have to worry a bit about anything other than your core business.
What stage is your business at? Do you foresee change or growth in the near future?
The flexibility offered by serviced offices or coworking spaces caters well for both small and established businesses. An expansion would simply mean acquiring a larger suite and don’t have to shy away to ask for a smaller one when downsizing. A movement to a different location is an easy task; just serve the notice period for 1-2 months and leave the place with your belongings with no strings attached.
A traditional leased office is best for businesses that have secured and established future plans in the area where their office is situated. This being said, it is important to factor in plans for growth when choosing an office space.
Where will best suit your brand’s image and identity?
Your office should reflect the character of your business. Although you would have more responsibility over a traditional leased office, the full control would allow for freedom to make the space your own; Branding your product or service with confidence and liberty is your right. This is generally the primary reason why people decide on traditional leased office space.
Nonetheless, a serviced office can help build a professional image for businesses with the added advantage of reception services and overall layout creating an impressive presentation.
So, to bottom line this, it all depends on your budget. Also you need to consider making smooth transitions between offices so that the choice you make does not demand more of your time and energy. Each stages of business require you to present your companies identity differently.
With that, weighing all these factors will allow you to find the most suitable home for your business.