For small and medium-sized enterprises (SMEs) operating in a difficult economic climate, every penny counts.
Such companies have limited funds for investing in marketing, sales and product development, and employing the people they need to achieve growth.
So the importance of keeping overhead costs low cannot be underestimated. If businesses are able to spend less on work premises, the savings can be used for investment in other areas.
This is one of the reasons an increasing number of SMEs are taking advantage of serviced office space.
Embracing this model enables businesses to take advantage of high-quality premises without the associated capital expenditure.
Indeed, businesses can reduce office costs by almost two-thirds by taking out serviced space – they can gain access to an office at a prestigious postcode without breaking the bank.
Ordinarily when a business sets up an office, they need to spend significant sums of money making the work areas and meeting rooms usable and inhabitable.
This means setting money aside for office furniture, a reception, telephone and internet connections and much more – so the costs quickly mount.
But when a business adopts a serviced office, these features are already present when the company moves in.
They are owned by the serviced office provider, but accessible to the business user during their period on the premises.
Companies also gain greater flexibility to upgrade or downscale their operations according to demand.
Moving offices can be a costly and time-consuming process, and the company may be constrained by the terms of a lengthy tenancy.
But serviced office tenants benefit from the extra agility and flexibility conferred by short-term leases.