A guide for start-ups: Why serviced offices are ideal for new companies
Starting out with your new business venture is an exciting time, but a period when you must be prudent in your decision making if you’re going to be a success. That’s why a serviced office could be the ideal option for your new company…
Keeping set up costs down
If, like most, you don’t have a never-ending pot of initial capital, then making sure your set-up costs don’t spiral out of control must be priority number one.
Lease deposits, legal fees, furniture costs – they all add up.
A serviced office gives you an alternative to handing over all your cash before you’ve had chance to make any, as there are no up-front fees and all the digital infrastructure and furniture are provided.
With just one monthly fee, having a serviced office is a leading alternative if you’re looking for a ready-made office without having to squander your seed money and potentially cause cash-flow problems that will make it difficult to stay in the black.
Keeping overheads low
London is one of the most economically vibrant and innovatively progressive cities in the world, and that’s probably why people voted it as the number one European city to do business in the 2017 Ipsos Cities Index.
When starting out, however, you’ll have to have a hefty sum in your new business account – or start accruing revenues pretty quickly – if you’re going to afford a commercial lease in the capital.
Business rates for a micro company (fewer than 10 people) are on average £17,000 per annum for 2017/18, and the rising costs of utilities – electricity, heating, phone lines and wifi – are considerable.
All things considered, running an office in London can cost you £90 per square foot on average, equating to £4,500 for a small office, according to industry experts.
Depending on the location and size of the working space you’re looking for, a serviced office can save you 80% a month on your overheads. These savings can be invested in other areas of your business to give you the best chances of success.
How much gas or electricity you use, or how many phone calls you make, will change the amount you pay each month. Unlike variable utility bills, a serviced office combines all these fees into one fixed figure, and they don’t change month to month.
Having all your overheads rolled into one pre-determined monthly sum will give you the peace of mind that there will be no big expenses when it comes to paying the bills.
Giving flexibility to expand
According to the Federation of Small Businesses, small companies account for 99.3% of all private sector businesses and 76% of businesses don’t employ anyone aside from the owner.
But even the most successful businesses in the world, typically start with one person, and it’s the ability to change and grow with demand and market conditions that propels their success.
That’s why having a serviced office should be a significant factor of your business plan. There are no long-term commitments, and if you find after three months you need to employ 10 more people, you’re not tied into any contracts that could make it financially or logistically unviable.
The flexibility that comes with a serviced office allows you to organically grow without limits.
Meeting new people
When starting out with your new company, you’ll have a lot of questions. Some you’ll be able to Google, and others your accountant may answer.
However, there are probably some questions you wouldn’t think to ask. But rather than finding out when it’s too late, being around like-minded entrepreneurs could be just the answer.
Sharing ideas, offering tips and discussing experiences as a start-up, are all prime benefits from working in a shared office space.
Having a varied hub of “colleagues” can even provide some company to keep your social skills perfectly honed.
Raise your profile
You’re a new business and you want to make a great first impression with a premium, London address. But budgetary constraints may restrict how much of an impression you can leave.
Rather than stretching beyond your means or setting up in a dodgy part of town, opting for a serviced office can give you a premium company address that will project a better first impression of your business.
Shared office spaces also come with reception staff and security personnel, so you can really wow your clients and reflect the best possible image of your new company.
Are you an entrepreneur looking to take advantage of the all the benefits that come with a serviced office? Get a bespoke quote now.