Working from home had become a norm during the pandemic. However, now that the world is switching back to in-office work mode, getting an office space becomes your priority as a business owner. Needless to say, a great office space can significantly increase employee motivation, productivity, and efficiency. It not only creates a conducive environment to bring out the best in them, but it is also a huge step in expanding your business.
Investing in office expenditure involves thorough research, and consideration and is time-consuming. Numerous business owners end up settling for spaces that aren’t the right fit for them and incur huge losses in the process.
Thus, we have carefully compiled a list of 6 things you should know before investing in office expenditure to avoid unnecessary hassles.
- Team Size
- Office Customisation
Choosing the right location for your office is non-negotiable and should be on your priority list. A good site serves your business needs while being convenient for your employees.
Here are three crucial questions that you should keep in mind while choosing a location –
- Can my clients reach there without an issue?
- Is the location convenient enough for my employees to commute?
- Are the business facilities in its vicinity?
Settling for an office in rural areas or outskirts will put you in a position that is unfavourable for your business and inconvenient for your clients and employees.
Whereas choosing an office space in the middle of a city where most of your business requirements are in the vicinity will cost you a hefty amount.
So, while looking for an office space, ensure that you can balance your business needs, employee convenience and budget – all at the same time.
2. Team Size
The size and layout of the office space vary depending on the number of employees your organisation has and the nature of your business. However, while settling for an office space, keep in mind the growing demands of your business.
Businesses grow exponentially; before you realise it, you have twelve employees instead of five. Getting a new space to accommodate them all, shifting the entire setup and dislocating your employees is not a favourable choice – for your business or your clients.
Thus, if you are at a stage where you expect a drastic growth in the employee headcount, choose a vast space and account for facilities like equipment, furniture and parking areas to accommodate them all.
To have some clarity ask yourself these questions –
- Will we need to hire aggressively to cater to the growing demands?
- Does this office space have an option to accommodate our growing needs?
- Does it have enough facilities, utilities and parking spaces for all?
As a business, your primary motive is to increase your profit margins. Getting an office space is not only a considerable investment, but it is also a huge commitment. Once you plan to set up a physical office, you will incur expenses like – rent, laptops/computers, equipment, utilities, software, cafeteria, stationary etc., to name a few.
You will need to cater to the needs of each employee. A traditional space would need individual units for each room and table.
Each of these expenses can pile up, and before you realise it, you would have already spent a massive chunk of your profits on arranging these.
Thus, it’s good to allocate a budget when looking for space so you don’t end up overspending on your office.
Depreciation starts the moment you buy something tangible. Needless to say, you need equipment, furniture, and other essential utilities to run your business successfully—the costs, whether a computer, printer or machine, add up pretty fast. Over time, these assets depreciate and lose value.
Thus, keeping an estimated depreciation rate in mind before investing in office expenditure is crucial to having a fair idea of your expenditure.
Getting an office space for your business can be exciting and nerve-wracking at the same time. It is a big step for your business. However, things don’t go as per plan all the time. You cannot predict if the company will grow as expected. Some unforeseeable market fluctuations may stunt your growth, and you may not grow at the rate you thought you would. In either case, your office space will become more of a liability than an asset.
If you have signed a multi-year lease for the office space, you would need to pay the lease even if you run out of business which can be an absolute nightmare. On the other hand, if you scale up faster than you thought, you will need to upscale and still pay for the smaller space you had chosen previously.
Thus, it is prudent to be highly cautious while signing a multi-year lease.
6. Office Customisation
As business owners, we all fancy what our dream office space would look like. For some, it is luxurious. For some, it is classy, minimalist and modern. The best part about getting a traditional office space is the ability to customise the setup as per your goals and vision.
However, our opinions and preferences change constantly and revamping the entire office will be like burning money. Thus, it is advisable to be sure about how you want your office space to look when it’s final. Make sure you consider your employee’s preferences as well because, in the end, happy employees mean a thriving business.
Investing in office expenditure is daunting and overwhelming, to say the least. While there are numerous pros to getting a traditional office space, extra caution is required to make a decision that aligns with your business goals and employee expectations.
In case, you are looking for a set up where your employees get the office ambience and environment without having to dislocate from their homes, a working space that can easily accommodate all your growing needs, saves you from depreciating equipment, let’s you cancel your subscription any time and choose a space that keeps up with your constantly changing preferences – you should consider subscribing to a co-working space.