HOW FLEXSPACE CUTS COSTS FOR SETTING UP A NEW OFFICE

HOW FLEXSPACE CUTS COSTS FOR SETTING UP A NEW OFFICE

Article updated in August 2020.

Setting up a new office is a major cost for any business, but using a serviced office provides companies with greater flexibility and efficiency

The cost of setting up a new office is one of the largest expenses a company will ever incur. In current times, most businesses will be hesitant to even think about setting up a new HQ or a new regional division. According to one report, the price of just equipping a new office can be anywhere between $10-125k, while simply renting the space itself can come in anywhere between $100-$1,000 per employee, per month, making these costs the first and third biggest expenses respectively.

The range of potential costs involved is extensive, and many aren’t immediately obvious. In addition to the initial outlay for items such as computing equipment, desks and business stationery, for example, there are also ongoing expenses such as insurance, heating and electricity, as well as keeping the place clean. Then, include the additional costs of physical distancing requirements and preparations made to adhere to safety measures.  

According to some estimates, setting up a new office branch of a company in somewhere such as Japan for example, can cost more than £38,000, with initial expenses such as real-estate brokerage fees and office equipment contributing to the initial outlay

For example, an office which is completely empty to start with will need the very basics from the outset – desks and chairs, storage such as filing cabinets for example. Visitors and clients will also visit the office, so a reception space with comfortable seating and additional space for distancing might be required.

Once the basics are in place, then comes the equipment needed to make any modern office tick. Computers, phones, broadband infrastructure, printers, and maybe even servers depending on the scale of the operation.

Another issue for businesses is choice of location. The best facilities may not always be for rent or sale when the company needs them. It’s important for companies to be able to access workspace and meeting facilities that are convenient and lend themselves to strong business relations – and finding a site in the right zip or post code can make all the difference. How close do you need to be to suppliers and prospective clients? And is brand visibility important to you? If so, will you need to be at the centre of town or the business district? Or would your business fare better in a suburban area, to reduce commutes?

One crucial factor is how your staff feel about working in a given location. For Millennials, this is a huge factor, and being well situated can be an enormous help in terms of attracting talent. Millennials want a better work/life balance, which can be achieved by locating your office where there are great facilities and a buzzing atmosphere with bars, restaurants and parks, or where their commute is more practical and affordable for them.

Running costs can also be a major headache for businesses because, even once the office is up and running, there can be the constant worry of finding the funds to keep everything running smoothly – especially in times of financial uncertainty. All it takes is one big repair job, another lockdown or an IT catastrophe to put a hole in the budget.

Size matters and setting up an office can often provide a headache for growing businesses because, if their growth outpaces expectations, they could wind up with that new office they’ve just splashed out on soon being too small for them. In these circumstances they have to go back to the drawing board, go on the hunt for bigger premises and again expend unnecessary capital on one-off fees, brokerage and moving costs.

The new world of work requires flexible workspaces, open, pleasant office environments – all elements that the flexible workspace model embraces. Above all, the comfort, safety and happiness of staff must be well catered for, and facilities such as a communal kitchen, business lounges and breakout areas can help create a sense of community and drive productivity among employees – whilst providing a safe place to meet and work together.

Find out how we could help your business cut its office costs


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