Member Article

Selecting the right property for your business is vital for success, and likely to be your biggest expense after staffing costs. So in the current market, flexible office space may be a wise alternative to a traditional leasing commitment.

Three principal models are available: serviced offices, ‘drop-in offices', and virtual offices.

Serviced

• Equipped, furnished offices, ‘hot desks', meeting rooms, secretarial and support services within a business environment.
• Leasing on a short, medium or long-term basis enabling your business to manage change.
• Transparent costs which typically include building, servicing and energy costs, furniture, refreshment areas and meeting room rental. Telephone, broadband and postal/fax services are typically charged by usage.
• Readily available, often within 24 hours, without the need to furnish or fit-out.
• Freedom to concentrate on your business without the need to worry about office administration.

However, you should bear in mind that:

• Daily rates may be more than a ‘traditional office'.
• Resulting costs are often dependent on the length of term. Calculate the total costs to ensure there are none ‘hidden'.
• You may need to pay a deposit. If so, on what terms will this be returnable?
• The office space is unlikely to be customised to your business, with controls on branding and signage.
• You will have no control over the employment of staff, for example receptionists, who will be making a first impression on your behalf. 
• Meeting rooms are available to hire, subject to availability. Arranging last- minute meetings may be difficult.

Drop-in

• Pay-by-the-hour or pay-by-the-day flexibility with no term.
• Fully operational workplace with high specification services and support needed when ‘on the move'.
• The flexibility to maintain productivity and minimise ‘dead time'.
• Costs charged on a set fee per visit or a set fee per hour.
• A solution midway between serviced offices and a ‘virtual office' solution.

If considering this option, bear in mind:

• It is only suitable for occasional use and is not cost-effective for regular use.
• You will need alternative premises as a permanent location for your business.
• Office space may not be available when it is required.
• Again, be alert to the total costs involved and appreciate that the premises will not be customised to your business.

Virtual

• This solution is most suited to start up businesses looking to move from home working in order to  promote and establish themselves on a more professional level. 
• Use of a business address, personalised telephone answering, post handling and forwarding as well as, in some instances, the use of private offices and facilities on an ad hoc basis.
• An instant and flexible solution which is cost effective.
• Use of a virtual assistant as and when required.
• Costs on a ‘pay as you use' basis.

But bear in mind that this option:

• Entails no change in the physical environment. It is a service-focused option, not a location- focused option.
• Facilitates no interaction with other parties involved in the business.
• Not suitable for client meetings.
• Does not address the need for extra space.

Flexible business choices have become increasingly available over a number of years. Whether or not your business is tied into an existing arrangement, it is wise to be aware of the alternatives on offer, and how they could either complement what you have or provide an attractive alternative.

 

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