Locate the right co-working space for your startup
Locating the correct office space for a new business can be a challenge for any business owner. Firstly, it will require the business owner to get their financial documents in order, particularly if it is their wish to obtain a business lease for a private office space. As a start up business, it may be hard to provide adequate financial documentation to guarantee that the business can meet the requirements for a twelve-month lease.
With that in mind it is important to constantly review the business’ finances and keep track of where the business is sitting financially. This is crucial for both new and existing businesses, however when you are a start-up business keeping track of your overheads is critical, as it can affect the longevity of your business, and its financial security. Business start-ups should be careful not to overextend their financial obligations. Rather than becoming a personal guarantor for a business, it may be less risky to consider co-working offices.
Office spaces can be expensive, therefore as a business owner you need to consider what type of office space you require to grow your start-up, and what financial implications will be linked to the chosen office space.
When deciding on an office space the business owner needs to consider what facilities and features their business requires. Although it may be beneficial for the business to become a sole occupier of an office, the costs should be considered and analysed accordingly. While a business may wish to contemplate the future growth and size of a business, it can be expensive to rent an office space that is larger than required for the day-to-day running of a business.
The overheads which include but aren’t limited to the rent of a commercial space, a receptionist, secretarial and IT support can quickly add up. These costs will need to be taken into account when forecasting for the year ahead. Mandatories and nice to haves can easily become blurred in the heat of contractual discussions, and as a business owner you need to make sure that any rental contract signed is the most appropriate solution for your business’ needs.<
Growth of a new business can directly add to its success, therefore the business space needs to take into account a great deal more than just the location or whether your office projects the image you require. By renting a shared office space it not only reduces the costs associated with the work space, but having existing office solutions in place will also save your business time, and lead to better productivity. For example Servcorp Serviced Office have highly trained shared receptionists and administration staff. Allowing a business to work out of a prestigious office front, and simultaneously helping to reduce their overheads, as office costs are shared across all occupants.
Flexible contracts and the ease of setting up a new office can really help new businesses to grow without having locked in contracts and therefore reducing the risk. Not to mention the support the business can receive and the first class service provided can only strengthens the business offering.
Starting a business can be an extremely stressful time; by utilising serviced office spaces can give you the base and structure to focus on growing the business and investing time and money in building your business’ client database. By doing so your business relationships with key stakeholders can only benefit the business and give it the support needed to grow.
By taking the time to consider the pros and cons of both a sole occupancy and a shared working space depending on your business requirements. If you do decided on a sole occupancy then it is beneficial to seek advice from a tenant broker. As there can be hidden costs in tenancy agreements, and a broker will help business owners to negotiate these costs.