In every new business, the inevitable happens: you must face the reality that you need more space. Whether it’s more room for new ideas, your growing team of employees, or equipment to meet the rising demand of your start-up, you need a cost-effective headquarters that fits your workflow requirements and your budget.
Luckily, there are budget-friendly alternatives to traditional office leases, which are notorious for inflexible, long-term contracts. Consider the following tips to cut down on office rental costs as you venture into your next step as an entrepreneur.
How is office space price calculated?
In the process of searching for affordable office space for rent, let’s first look at the three starting factors that affect office rental prices:
● Location: A rule of thumb is that commercial office space is the most expensive in central business districts, no matter which city you’re in. Office rentals on the borders of these business areas are more affordable, and once you reach outskirt areas with less transport connectivity, the prices drop considerably.
● Building grade: Commercial real estate follows a widely accepted tier classification to rate overall quality and key features. Buildings can be ranked as Class or Grade A, B, or C: Grade A indicates high-end construction and renovation, grand architecture, an array of building amenities, and updated technology. Grade C properties indicate older, out-of-date construction and furnishings, a lack of amenities, and/or poor maintenance.
● Number of employees: Your headcount, i.e. the black and white of how much square footage you’ll need, is another essential factor that determines your office space rent.
Consider if you need a physical office
Before you commit to a space that stretches your margins thin, it’s worth asking if you really need an office space yet for your entrepreneurial venture. An affordable virtual office may suit your current needs better, especially if you want the flexibility of keeping the team remote or working while travelling. Also called a virtual address for business, with this service, you get:
● Business address
● Mail handling
● Company phone number
● Call answering and call forwarding by a receptionist team
● IT solutions
● Access to other value-added business services like meeting rooms, copying, printing
Opt for flexible office space
One of the most cost-effective options for flexible office space is serviced offices. These business centres offer private offices with shared common space, and their biggest draws are the included amenities and fuss-free contract terms. Compass Offices offers serviced office rentals starting from as convenient as one month, which include:
● Meeting rooms
● Third-space networking lounges
● Cleaning and maintenance services
● Printing, copying, and other business services
Day desks/shared office space
A day desk in a shared office is a great way to benefit from the professionalism of a formal, fitted out workspace without committing to a contract. Our U-Desk gives you a dedicated desk at one of our Compass Offices business centres for an entire day, with complimentary beverages and administrative services (supplementary fees apply to the latter).
Companies in their beginning stages don’t usually need compartmentalised offices yet; co-working space is highly affordable and perfect for these start-ups or agencies who are also looking for networking opportunities with like-minded entrepreneurs. This affordable shared office space comes with access to common areas like meeting rooms and lounges in certain Compass Offices locations.
Smart space planning
Possibly one of the simplest ways to snag affordable office space is to find a smaller workspace and do some smart space planning. With an open-plan office, you can more effectively utilise the floor plan.
Combine this with a flexible work culture where teams are encouraged to work remotely for certain days of the week, and this will have the additional benefit of upping employee satisfaction and well-being.
Business accelerators or business incubators are programmes that provide mentorship and practical resources to start-ups in their early stages. These programmes typically last three to six months. On top of receiving venture capital funding and training in an entrepreneurial accelerator, start-ups can also receive office space. These types of affordable office space can be a good opportunity to cut costs and network with other new, exciting businesses at the same time.
If you’re ready for the next phase of growing your business but unsure what type of affordable office space is best, contact our team. As a leading office rental provider in APAC, we’re your partner in securing flexible offices or custom workspace with a lease term that makes the most sense for your company.