Getting a new business off the ground is hard work. The decisions you make while developing your product, building a client base and expanding your team will have a profound effect on how your business evolves over the subsequent years.
Finding somewhere to call home can be one of the biggest challenges a growing business faces. You have to consider how your team will evolve over the years to come and weigh this up against the overheads associated with a long term lease. While a great deal on your dream office may seem like the right idea at the time, it may also hinder your ability to adapt to change as fluently as you’d like.
For many new businesses, the lengthy term of a typical lease is a huge barrier to commitment, and understandably so. As a result, many turn to serviced offices as a way to reduce risk and ensure flexibility.
When considering serviced offices, you’ll want to make sure you’re comparing apples with apples. To take some of the stress out of your decision, we’ve put together a list of things to look out for when weighing up different serviced office providers.
Find the right deal
Much of the immediate value of a serviced office is in the price. Getting a good deal will be your first order of business. But beware, in the serviced office market, there can be more to pricing than meets the eye. When researching your options, be clear as to whether you’re being quoted the invoice price or average rate.
If you’ve enlisted the skills of a broker or an agent to find a serviced office space for you, keep in mind that many have their preferred providers. Discuss this openly with your broker and make sure you’re satisfied with the pricing structure of the providers they’re recommending.
Know what’s included
When it comes to serviced offices, not all are created equal. Some providers include facilities and services such as meeting rooms, reception services and kitchen facilities as part of their monthly office fees where others will charge for them separately. It’s important to understand these inclusions and how they will meet the needs of your business while keeping within your budget.
No one knows your company like you do, and the last thing you want from a serviced office is to be caught out by assumptions. Ensuring your package has the right inclusions at the right price will help to keep your overheads manageable. Think about where your business is today, where it will be tomorrow and how your office needs will change over time.
Once you know what’s included, start looking at quality. Is the internet service up to scratch for your usage? Is the furniture suitable for your needs? Will the meeting rooms and other amenities portray a professional image to your clients?
Beware the hidden fee
Once you’ve determined that a serviced office package has all the inclusions you need, be sure to quantify any extra costs and hidden fees to ensure you’re getting a deal that makes sense financially.
Some serviced offices charge setup or similar fees upon commencement. Hidden fees at the wrong time can be an unnecessary hindrance, especially for a small business needing to gain momentum and financial stability.
Prepare for your departure
Ensuring you get your bond back at the end of your contract is an important part of managing your cashflow. Be aware of office restoration or make good fees that are enforced at the end of your contract and deducted from your bond. These are usually charged at a rate per square metre of office space and can quickly add up for medium to large offices.
When it’s time to move on from your serviced office, making a clean break is vital to avoiding unnecessary downtime. Some providers have auto-renewal clauses that require you to notify of your intent to leave up to three months before your contract end date or risk being renewed automatically.
In certain cases, auto-renewal clauses may even force you into a mandatory “exit virtual office” agreement, resulting in your mail delivery and phone calls being directed back to your former premises – not something you need to deal with as you try to grow your business and keep your clients happy. Be aware of these types of clauses and prepare yourself to navigate them appropriately if they are part of your contract.
You know your business better than anyone so give it every chance to thrive with an office environment that can evolve with you. By knowing what to look for in a serviced office you can leave the worries behind and get on with doing what you do best.