How Office Sharing Can Save Money for Startups

How Office Sharing Can Save Money for Startups

Why do I need office sharing?

Businesses in early stage always look into how to spend less to achieve more. Leveraging on number is what many startups and SMEs are yet to fully tap into. There are lot of burdens that startups can share with other businesses in order to reduces the cost of running their businesses. One of these burdens is office space.Office sharing helps in many ways, some of which we will look into here.

When your business is still small and you have less than 10 employees, it might not be so necessary to rent a whole floor or apartment to start out your business. So much expenses come with running an office all on your own, especially when you are still running the startup with your savings or soft loans from friends, families or early adopters. Such expenses could be toxic for your finance and might reduce how much left to re-invest into the business in order to expedite growth.

What do I benefit from office sharing?

Start with a lean team and grow big over time:

By sharing office space with other businesses, startups can avoid toxic expenses that will put pressure on their humble budgets. Talking about those who have to be physically present at your office at the beginning, you might not necessarily need every of your employees to be on ground 24/7 when you can’t afford a big office complex yet.You could look into the roles of some of your employees, and see those who could do most of their jobs remotely.

Though, you have to be sure you employ an individual who could work with less supervision for such roles. If some of your employees work from home for a start, you won’t be bothered with the cost of buying and running some equipment they would use if they were physically present.

Reduce stress and cost of power generation:

In Nigeria of today where power generation and supply is still escalating, fuel for running generators is expensive, cost of internet connection is relatively high, startups or people considering going into running small businesses should consider office sharing for faster growth of their startups. There is even the concept of virtual office which is not very common yet.

Sometimes, you have a business opportunity in locations you do not have physical presence or places you do not frequently do business, Regus, is one of the reputable companies that could quickly ‘fix’ an office for you. Regus has various office locations where they could arrange for you to have your business meetings, presentations or transactions in serene, secured environs that leave great impression on your clients.

Save Overhead cost:

Overhead cost refers to all non-labor expenses required to operate your business. Overhead cost could be fixed or variable. Fixed cost are rent, depreciation on fixed assets like cars and office equipment, salaries, insurance, membership dues and subscriptions, and legal and accounting costs. These expenses re-occur, whether a company’s revenue increases or decreases.

Variable overhead cost has to do with those expenses that fluctuate from time to time, with regards to sales and other factors, such as promotional efforts, change of season, and differences in the prices of supplies and services. In this category are telephone, office supplies, printing, packaging, mailing, advertising, and promotion.

Some of these expenses can be avoided if a startup decides to share office space with other businesses while the startup grows. Office sharing companies bear the cost of some basic equipment, telephone bills and customer service, receiving and sending mails on your behalf. You could even have access to meeting rooms equipped with sophisticated IT and visual communication devices that could have cost your upcoming startup a fortune to acquire and maintain.

Paying a token to an office sharing company to take care of these toxic expenses while you focus on what are very important for the growth of your startup will go a long way to help bootstrap your business. With this, you could pay less to achieve more.

Security and Space:

These might look trivia but from customer’s perspective, safety of a business environment is quite important. Ensuring the security of lives and properties of those who come to do business with you will be added advantage for you. I remember those days when fast food outlets were the hottest thing in town. Those with small parking space suffered a lot as many customers who could not get enough and secure place to park their cars chose to go where the felt secured.

As a startup, employing security men, installing CCTV cameras or topnotch security systems in case you deal with sensitive information could be as well be a heavy financial burden. But office sharing already made arrangement for security of lives and property within their vicinity. Securing their investment is paramount to them, so you can be sure they will do well enough to provide security for your business environs.

Flexibility:

Perfect plans don’t always turn out perfect. As a startup grows, some changes happen to the business plan, business model or approach to the market. Office and equipment sharing makes it very easy to change your business environment to accommodate such changes. If you have bought everything you thought you would need from the beginning but you find out over time that you will seldom use some equipment or device, you would have paid so much for what you rarely need and may not be liquid enough to acquire what you need more.

Office sharing allows you to change your office settings as the situation may require. Until you reach some level of stable growth, it is advisable for startups to go for office sharing services.

Networking:

Guess you never thought about this. Office sharing offers you opportunity to network with other businesses. While you seek to recruit early adopters for your product or you need to conduct low-budget product test, your corporate neighbors could be your go-to resource for these. When you need to trade service for service in order to get things done, office sharing naturally brings you in touch with businesses you could start out with.

Running a startup in a hub where there is a symbiotic relationship is good for your health! LOL Here a list of office sharing companies in Nigeria for your perusal.

“Business can be tough, running one can be tougher. Sometimes all you need is to share your experience with others that are going through the same thing and the sense of community that comes with a shared office space helps to facilitate such conversations.” –hotdesk.net

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