Traditional office or Serviced office space: Which is the best fit for your business?
Your new venture might have first started its operations in the comfort of your own home, but most businesses would eventually need to move into an office. The a vast option of offices available is overwhelming, which causes the process of choosing an office to be quite daunting and intimidating.
With that, we’ve summarized a comparison between the conventional lease and the serviced office option.
Serviced offices are fully equipped and managed by a facility management company, offering relatively flexible and simple rental agreements. Serviced offices have the added advantage of having all essential amenities in place i.e.: phone lines, internet connections & furniture.
A traditional office would involve leasing the space from a commercial landlord, generally involving a medium to long contract of at least three years. You will have full control of the space, but held responsible for its upkeep.
Although both options may not look different from the other, there are key differences between them both.
Here are some questions to ask yourself to help you weigh which office space best fits your business:
WHAT’S YOUR BUDGET?
Given that the cost of office spaces is higher than ever, one of the first questions to ask is: what will the damage be in terms of rent? Depending on the location, traditional leased offices are generally the cheaper alternative.
The rental for serviced offices include the luxury of having everything taken care of. You will only have to pay one all inclusive fee monthly. This fee covers all internet and phone bills, cleaning, lighting, reception, security and maintenance, and any bill that comes up in the maintenance of the building.
Although it might seem like you would be paying more, companies would enjoy the flexible nature of contracts with serviced offices. Additionally, there are little to no startup costs involved in moving into a serviced office.
WHAT DO YOU HAVE MORE OF: TIME OR MONEY?
A leased office space would require more hassle and time than that of serviced offices. Prior to moving in, there would already be a process for the preparation of paperwork and the consultation of legal advice. In addition, phone lines, internet, electricity and other utilities need to be sourced alongside the arrangements for contractors for renovations. Now, after you’re all set up; you would still need to set some time aside for general upkeep. Tenants have full control of the space. However, this means they are responsible for the upkeep. Thus, if something goes wrong, time has to spent to resolve the matter.
On the other hand, serviced offices would already have all of the necessities above ready by the time you move in. This allows you to concentrate your time and energy on your business.
WHAT STAGE IS YOUR BUSINESS AT?
Do you foresee change or growth in the near future?
If you’re a start-up or small business, the short-term nature of a serviced office space would cater to the uncertainty of the future of the business. An expansion would simply mean acquiring a larger suite and don’t be shy to ask for a smaller suite if needed when downsizing.
A traditional leased office is best for businesses that have secured and established future plans. 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. This is generally the primary reason why people decide on traditional l
eased office space.
Nonetheless, a serviced office can help build a professional image for smaller businesses with the added advantage of reception services and overall layout creating an impressive presentation.
Its no more just the simple case of looking at your budget.
We must also consider making the transition between offices to be as smooth as possible.So that the chosen option demands little of our time while being the most efficient. Factor in the stages of business and the growth plans as well as the identity you wish to present.
With that, weighing all these factors will allow you to find the most suitable home for your business.