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Posted 22/07/2019 in Coworkers

What’s All the Hype About Serviced Offices?


What’s All the Hype About Serviced Offices?

Serviced offices are the perfect compromise for entrepreneurs looking for an office space without the high rental costs. 

They are flexible, cost-effective alternatives to traditional offices and have been “growing at an annual rate of 73 percent globally.” 

Serviced offices are often also called coworking spaces because they essentially offer a pay-as-you-go service. The office is fully equipped and managed by the owners who rent spaces to companies on an as needed basis.

Whether you are a seasoned entrepreneur or a newbie, a serviced office space offers 6 important benefits that can work wonders for your bottom line.

Test New Locations

Committing to a lease agreement is risky. 

You never know how well your business will perform in an area even if you have done extensive market research. 

A serviced office allows you to rent an office space for shorter time periods so that you can test the waters.

This testing strategy can also be used to test locations within the same city. 

You can rent a serviced office for a few months in one area and then another office for a few months in a different part of the city. 

Therefore, you compare the response in both locations to determine the best place to set up a permanent office.

Ready-to-Go

Serviced offices are already fully-equipped with all the office equipment needed by a entrepreneur. 

Therefore, you won’t have to purchase equipment that you probably will only use occasionally or wait several weeks to get the equipment needed to make your business function effectively.  

The equipment is also typically some of the best on the market and is well maintained.

There are also staff on hand at serviced offices who can assist with the administrative and clerical work your business needs. 

This reduces your payroll costs since you wouldn’t need to hire permanent staff for these tasks.

Licenses Versus Leases

This was alluded to earlier but it’s such an important point that it deserves its own discussion. 

Serviced offices offer great flexibility to entrepreneurs who don’t want to commit to long-term lease arrangements.

A serviced office license allows clients to commit to monthly payments instead of the quarterly or annual payments of a lease agreement. 

Additionally, the license agreement documents are usually short and, therefore, reduce the associated legal fees when compared with the legal fees required for leases.

Only Use Rooms When Needed

Have you ever walked past conference rooms in some offices that seem to frequently be empty? 

Rarely used spaces are a waste of office space and can become sunk costs. 

A serviced office allows you to rent meeting rooms, and other infrequently used spaces, on an as-needed basis. 

You won’t have to worry about equipping the room with furniture and paying for a hardly used space as part of a lease agreement.

A Networking Haven

The beauty of serviced offices is that multiple businesses can use the same general space.

In other words, there are several offices in the area which are each rented to a different business. 

However, the meeting rooms, collaboration spaces, and lunch and coffee areas will be shared.  

A serviced office is, therefore, a great way to meet new people and learn about other business in the area. It fosters B2B relationships.

Expand or Contract Office Size

A traditional office space leaves entrepreneurs with the same amount of space regardless of how big or small the business gets. 

The same rent must be paid if the business isn’t doing so well and the business will have to rent another office space if it’s bursting at the seams.

Serviced offices offer the flexibility of expanding and contracting office sizes according to workflows. 

Recall that entrepreneurs pay a monthly rental fee for a serviced office. 

Therefore, the serviced office space used can change from one month to the next.  

This will help you as an entrepreneur control your overhead costs.

Is a Serviced Office Right for My Business?

The answer to this question depends on the type of business and what you’re hoping to achieve by using a serviced office. 

For instance, a business embarking on a short-term project in an area would not want to commit to a 3 to 5-year lease agreement. 

A serviced office license would be more convenient. Look at the benefits a serviced office provides and determine if those benefits suit your needs.

Last updated: July 22, 2019


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