All smart entrepreneurs aim to trim unnecessary expenses as much as possible, especially in extremely competitive industries. An often overlooked expense is one of the most common: maintaining your own office space.
Initially, an office may seem necessary. In reality, if you think about how often you use it, then add in maintenance costs, you may realize a long-term lease is not cost efficient for your business. Instead, a serviced office provides a better option. This is an office coming fully equipped, prepared for immediate occupation, and managed by another company. As a business owner who intends to reduce operational costs, here are three ways that serviced offices can increase your profits through reduced operational costs.
Elimination of Long-Term Contracts and Bond Costs
When leasing your own office space, you must pay for a tenancy/lease bond and the lease. These expenses tend to be overlooked, but they compose a large chunk of the fundamental startup costs, and soon, regular costs when agreements are renewed or extended. Add inflation rates and increases in lease payments and you start to encounter expenses extending way beyond your budget. Conversely, if you lease a service office, you eliminate paying for expensive, long-term agreements and bonds. You can use your savings to invest in people or technology. This will produce direct ROI benefits, such as an experienced marketing manager.
Deduction of Utilities and Internet Expenses
A regular office space requires budgeting for utilities such as electricity, water, gas, and internet services. Together, they create costs that can easily suck out your profits. With serviced offices, however, utility bills are already included in your rent. If you only need your office space periodically, you save even more than if you operated a long-term-lease facility, which requires some utilities even while you are absent from the office. You can arrange to use a serviced office once a week or month if desired.
Avoid Maintenance Problems
In the long run, office spaces require repairs, upgrades, and cleaning services. Facility repairs and equipment upgrades can cost hundreds of dollars, such as an average of $200 for repairing ceiling damages and $140 to $600 for plastering and patching holes. Don’t forget that an office needs printers, copiers, paper, furniture, and other necessary equipment. These are initial costs that later require upgrades or maintenance. You share the recurring costs of such equipment and its repair with others when you enter into a serviced office agreement. Furthermore, office space entails cleaning cost. Thankfully, this is something that you don’t need to worry about with a serviced office as it’s also already incorporated to your rent.
Serviced offices don’t just save you money, they save you from the troubles and headaches of maintaining and running your space. By saving your energy on these operational tasks, you can focus more of your attention to core-management matters and profits.
10 Hidden Costs Of Running A Small Business, WaspBarCode.com
Calculating your costs when starting a business, Business.Qld.Gov.Au
How Much Does a Handyman Cost? HomeImprovementPages.com.au
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