Serviced offices have become immensely popular in recent times, with an astonishing 157% increase in
With so many other businesses making the move to serviced offices, it could be very tempting for your own startup to jump on the bandwagon. However, before rushing into anything, it is important to consider the factors we’ve listed below to ensure you’re making the right decision.
Is a serviced office right for your business?
It’s true that serviced offices can be ideal for your startup for all kinds of reasons. Unlike traditional models, serviced offices are fully furnished and work ready, giving you access to all the services you need from a workspace. They are characterised by their flexible leases, which Landmark points out mean “no long-term commitment” is required.
This allows you to easily and quickly upsize and downsize. This also enables you to save money by virtue of not being tied down to a long-term lease. All of these advantages come together to make serviced offices an extremely convenient option for many.
However, they do come with some drawbacks. For instance, it’s often the case that there are limited opportunities to revamp the office to reflect your brand, which could be a stumbling block in creating your dream company culture or projecting your brand’s ideals to others.
Additionally, whilst a flexible lease could be suitable for some, you may actually prefer the security of a longer term lease. It’s
Where do you want your business to be located?
The importance of location shouldn’t be overstated. If you cannot find a serviced office in an ideal location for your business, then it may not be worth moving to one at all. You need to consider a number of different factors when it comes to pinpointing the perfect business location, and try and find a serviced office that fits the bill.
Firstly, is the office you’re looking at serviced by good transport links? You don’t want to make it difficult for staff and clients to get there. Secondly, you want to be in a desirable location, as this is vital for pulling in the right calibre of staff and clients in the future. Reputation matters—having a high-class address can make a huge difference in how people view your company.
Finally, you need to take into consideration the surrounding area. Is the office near amenities or not? You want your employees to have places to eat lunch and go for after-work drinks—this is so important for staff morale. Think carefully about each of these factors when looking at serviced offices.
Will there be enough space and is it cost-effective?
Serviced office suite capacities typically range from 1 to 100 people. If your startup employs more people than this, then this is obviously not a viable solution. Even if it is, it is worth bearing in mind that most are rented by workstation, meaning unlike traditional offices, which are priced per square feet, serviced offices rents are worked out on a per person basis. This can make a serviced office more expensive, although it is important to note that a conventional office has many hidden costs, such as internet, fit out and maintenance.
In addition, you need to look at what is actually included in any serviced offices that you look at, and again work out whether this makes renting the space financially prudent or not. Many serviced offices have hidden costs themselves, such as telephone access and internet usage fees, which can push up the price. Overall, make sure to carefully consider the price difference between renting a serviced and traditional office before making a decision—don’t assume one is cheaper than the other.
Whilst you may be mulling over moving to a serviced office, you should think and long hard about whether this is the best move for your startup. Factors like suitability, space and cost are extremely important to bear in mind before making such a leap.