Shared office spaces are quickly becoming a preferred option for many new entrepreneurs. Although they go by many different names, including executive suites, co-offices, business centers, etc. the bottom line is the same. They allow business owners to spread the costs generally associated with commercial office space rental across several different business tenants.
Whether you chalk their recent rise in popularity to a general embrace of the sharing economy or whether you feel it reflects the state of our economic situation as a whole, one thing is for sure. Shared office spaces are here to stay. Here’s what you need to know about shared office spaces.
Key items to look at when considering a shared office space
- Make sure it has sufficient parking for your staff and visitors.
Shared spaces usually come with fully equipped cabins. It should be located in a place that is easily accessible to your team. Calculate the per-head cost of renting the space. You can rent it for any duration.
- Watch out for your neighbors in the campus.
Of course, another thing that you want to look for in a co-sharing facility is the option to pay only for the features or amount of time that you use in the office.
Fully furnished office space
Usually, the shared office spaces are fully furnished with all the necessary equipment. You can directly move in with your staff and start working. It is popularly called plug and play office spaces. Some of them are even equipped with computers and Internet connection. Along with these, you can also have access to projectors, printers and a dedicated telephone line for your business. In some office spaces, you will even get a separate entry for your office, which is secured with swiping access. However, not every shared space will have all these facilities, and you have to check the premises before you get into it.
Parking space matters
Remember that you will also be sharing the parking space with other offices in the complex. In this regard, it is essential to have the parking space reserved for your office. It depends on the available space for parking in the business center, and you can negotiate these terms when you sign the contract with the owner. You will be charged even for the parking space within the compound. In most cases, it will be included in the contract.
Choose a centrally located place
It is important that you choose a centrally located place that is easily accessible for your staff and clients. If you move into a location that is far away from the business hubs in town, it will become difficult for your staff to come in time and even your clients will have trouble visiting you at the office. Every city will have such spaces in the popular business areas, and it should not be difficult for you to get one for your business.
Calculate the per-head cost
- Initial Cost Savings – When you move into a shared office space, it will save you a lot of money in the initial phase as you need not invest money in buying all the equipment.
- Cost Per Square Feet Consideration – When compared to choosing an empty office space, you will likely pay a higher rate of rent.
- Identify the Advantages and Disadvantages – In this regard, there are a few advantages and few disadvantages associated with sharing the space.
- Keep You can easily compare the cost of renting such spaces with the regular ones by dividing the total rent by the number of seats you will occupy in the office.
- Per-Head Cost Matters – When you have the per-head cost of rent, it will be easy to make the comparison.
- Determining Whether It’s Worth It – You can also compare this cost with the average salary you pay for your staff and see if it is worth renting such a place for your business.
- Key Ratios – In ideal terms, the per-head cost of the rent should not exceed one-fifth of your staff salary.
Rent it for any duration
Remember that you can rent it for any duration of your choice. It can be as less as a month too many years. Everything depends on the contract you enter with the landlord. You may, however, get a better rate when you choose a longer lease term. If you are just starting out, it is better to rent the space for a few months and see how it suits your business. Once you are satisfied with all the facilities at the location, you can extend your lease for a longer duration.
Find out which other companies are in the business center
You can see if any well-known companies have offices in the compound; this will add to the value of the complex, and your business may also benefit from positive name recognition if you’re associated with such a business center. If you have any competitor companies in the same complex, you must avoid getting into such shared spaces. Remember that there can be many companies sharing the same office space.
Pay only for what you use
Perhaps the biggest advantage of using a shared office space for your business is that you only have to pay for what you use. You can have access to every facility, including a conference room, projector, and printer. However, you will be paying for them only when you use them and if you use them. If you do not use them, you need not have to pay for such facilities; this will save you a lot of money as you will not use them on a daily basis. In this regard, you need not make a substantial investment to buy such equipment for your office.
Commercial office space can be expensive, restrictive, and difficult to find. Of course, the good news is that times are changing and shared offices are helping to meet the demand for flexible and affordable office space. Heed the tips in this article and you should be well on your way to finding a shared space solution to meet your needs.