One of the challenges that a start-up company faces is the transition from being a home or garage-based business to becoming an established business. A crucial part of making this transition is moving into one’s own space. For most new firms, the challenge that accompanies such a move is the considerable cost of renting offices. In a densely populated city like London, dedicated office space is usually outside the financial reach of a start-up company. Consequently, serviced start-up business sites are lucrative opportunities for start-ups to enjoy the benefits of an office location without a large, burdensome investment.
Features of Serviced Offices that Benefit Start-ups
Most start-ups rely on angel investors or venture capitalists to make the initial investments that power their daily operations. Office and infrastructural costs can sap profits and lock up capital for long periods of time. Serviced office space and managed offices have significant short-term and long-term benefits:
1. Serviced offices offer a start-up the option of no-lease or limited lease contracts that permit a monthly payment for a package that includes fully furnished offices, electricity, water, air conditioning, power backup, telephony, shared internet, logo placement, meeting rooms, conference facilities, housekeeping and security. Hiring these individual services from the city or from private contractors can be expensive and an affordable monthly fee for a service package greatly benefits the start-up.
2. Several start-ups budget for high infrastructure costs and are able to use several value-added services such as dedicated internet lines, secretarial services, videoconferencing, document services, office supplies, in-house technical support, ticketing assistance and access to business lounges. These additional services are designed for growing start-ups who are experiencing rapid growth.
3. Serviced locations allow new businesses to establish their corporate identity by renting offices in some of the city’s top locations without having to wrangle with complicated lease agreements or tenancy requirements. Firms may place their logos on the office premises and have reception services answer incoming calls in the company or business name – additional touches that go a long way in establishing a start-up brand.
Managing Serviced Business Infrastructure
While serviced and managed offices provide start-ups with the benefits of a physical location and white-label offices for an affordable monthly charge, it becomes important for the providers of service office solutions to manage these services in a manner that accounts for the growth and expansion of these companies. Successful start-ups that do not find room to expand tend to move to facilities that offer ‘modular’ service packages that allow companies to pay for the services and space they use. The effective management of a serviced business area retains clients and results in a mutually beneficial partnership between the service provider and the start-up.
The Bottom Line
In a period of rising operational and real estate costs, managed offices offer start-ups an economically viable alternative to spending money on fixed office spaces and fragmented services. As a result, these businesses have the freedom to use their profits to focus on their core business and expand rapidly. Serviced office areas provide a company with a premises they can call their own, the first step on the long road to business success.