One of the first things to do when starting a new business is to find the perfect office space. However, it can be both time-consuming and expensive. If time is an issue, then you do not want to spend months sourcing the ideal workspace, and it’s very easy to fall back into traditional notions of what your needs are.
Ongoing office costs can have a substantial impact on your expenses, and with the wide variety of requirements, it can be easy to misjudge your needs and commit to an unsuitable solution. If you want to save money and establish an office that works for your business, we’ve pulled together the cost considerations you need to be aware of.
Location and Business Suitability
The closer to the city centre, the higher your costs are going to be. There is a high demand for office property in big cities, and the cost of renting in a central location is going to be noticeably higher than a more suburban office space. You will need to assess your need to have local amenities and transport links close by, and the ongoing costs that you may not have considered. These include:
- Insurance costs
- Service charges for building maintenance
- Business rates
- Energy bills
Factor these into your budget no matter where your business is going to be located. It’s also important to bear in mind that the more significant your office requirements, the more you’ll pay. When offices are rented or leased according to metres squared, those costs can soon add up.
Not every business benefits from having a permanent base. The rise of the serviced office has taken many in the business world by surprise. The flexibility of a shared office space can seriously reduce your outgoings, as the cost to rent an office that is serviced requires a much smaller initial outlay. Combined with the added bonuses of a central city business address and the ability to relocate easily, it’s no wonder that all business types are adopting the use of shared offices to reduce their office space prices. As shared office spaces charge by the desk rather than the overall square metre size of a property, costs can be drastically lowered. If you’re looking for new office premises, book a tour through the shared offices of Clockwise before you commit to long lease agreements.
As well as the property and the legal requirements that you should expect to include in your budget, there are always going to be additional expenses that you may not consider until the bill comes in. Extras like broadband costs, the high prices of printers and printer ink, and parking fees will all have to be paid for. Like the property itself, these charges will be largely dependant on your location, and your costs will be higher if you require a city centre office in Glasgow, for example. Always do a full cost analysis before committing to any form of long-term contract. Co-working spaces are increasingly popular because they avoid those unexpected bills and provide you with the infrastructure you need from the moment you sit at your desk.
The price that you pay for your office will depend on location and your budget. Always look for ways to cut the costs without negatively impacting your requirements and needs. In the digital age, there is a wide range of options that remove the need for an expensive traditional office, so asses whether that two-year lease agreement is going to give you the space to grow.