smallbusiness.co.uk: Helping your business think big

Office space costs can often leave companies with little room to breathe. Here SmallBusiness.co.uk and John Spencer, CEO of MWB Business Exchange, outline the potential benefits of serviced offices.

Being tied in to a long-term conventional lease can harm a business because of the lack of flexibility and unexpected costs posed, but with serviced offices you only pay for the space you use, and can expand, or contract, at very short notice.

While there may be good deals available with conventional office leases – for example, you might be able to get a substantial discount on the last five years of someone else’s lease – there are still a number of costs that could reduce flexibility and damage cash flow.

Conventional leases can come with high start-up costs and additional services and facilities need to be added to the final bill – such as receptionists and security. Even a relatively short lease (five years) could reduce flexibility should the company want to expand or contract.

Measurable costs

Being ‘all-inclusive’ is a big benefit of serviced offices as the tenant pays a fixed monthly cost and no administrative charges. It is the centre manager who is responsible for the running of the offices, leaving the tenant free to concentrate on the core business.

A monthly fee can also help small businesses with their cash flow management, as companies using serviced offices can arguably budget more easily.

What’s included

With serviced offices the IT infrastructure is provided for you. While most tenants will need to provide their own computers, it is the serviced office providers who are responsible for managing and maintaining the IT network.

Furniture is usually included as part of your rental package, but if you have your own (possibly left from a previous office) or require specific designs (such as more traditional or more modern furniture) this can often be accommodated.

Most office providers are flexible in terms of how you arrange the space you use and will work with you to design the space, whether you prefer an open-plan arrangement of desks or require smaller closed offices for private meetings.

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