Owning your own office or commercial space may seem like a step in the right direction. But what if your office is the very thing that is hindering the growth of your business?
The need, and ability, to adapt to a changing market is important for modern businesses, especially startups and small businesses. Serviced offices offer the versatility that many business can benefit from. Not convinced? Here are four reason to rent instead of buy:
- Be at the forefront of modern working
It’s hardly surprising that people like the idea of escaping the office every now and then, however, more surprising is that 38% of employees would prefer flexible working hours to a pay rise. Not only can adopting flexible working save businesses money on the cost of an office, it can also result in better communication and a happier workforce. And according to research by Lancaster University, 70% of organizations will have embraced flexible working by 2020.
So why does this mean you can save on purchasing an office? According to research conducted by flexibility.co.uk, desks go unused over 50% of the time. They suggest by adopting flexible working you can use just 7 desks for every 10 employees, saving 30% of desk space. This not only allows you to rent a smaller office, but keep your workforce happy and productive.
- Be flexible with your office space, literally
Unlike with buying office space, you can rent offices which grow as your business grows. Serviced offices in particular are beneficial as not only are you renting a space, you are renting from a serviced office provider who can help you move into smaller and larger spaces within their portfolio as you need.
For example, some serviced offices come equipped with moving walls, therefore allowing businesses to literally expand their workplace as and when it suits them.
Being economic with space is also advantageous for companies when paying business rates. The size of your commercial property is one of the factors taken into account when calculating the rateable value of your business. This is particularly important as the forthcoming 2017 business rates review has experts worried that the changes will be incredibly burdensome to ratepayers.
- There are many different lease lengths available to you
A lengthy commitment at a time where markets are incredibly volatile.
Businesses looking to rent need to know the difference between flexible and conventional leases. The main difference is the length of the lease. Conventional leases are far longer and require a far greater commitment, as the average contract in the UK is 6.8 years. On the other hand, flexible leases can leave you free to rent an office for little as a few months.
It’s also likely that conventional leases will be for completely unfurnished spaces, meaning that your business will suffer numerous costs that could hamper your business’s growth. Serviced offices on the other hand usually come fully equipped and furnished, therefore allowing you to get to work immediately.
- Prestigious postcodes without the price
One benefit of owning a traditional office in a good location is the prestige that often goes along with it. However, for many small and/or young businesses, the costs that go along with an office located in a desirable area outweigh the positives. Hence, the rise of virtual offices.
Using a virtual office allows companies to have their calls answered and mail received from any given location, but without having to set foot into, much less pay for, a traditional office. This frees up time and money which can now be spent on growing the businesses rather than tying it down to a permanent workspace.