Surging energy prices, increased living costs and an uptick in office rental fees have put the squeeze on employers and employees. To make matters worse, economists are predicting a prolonged period of stagflation to hit the UK in the second half of 2022.
Utility bills have already increased by 66% since October 2021. If proposed plans to add a further increase of 40-50% this coming October go through, the average cost of household energy bills will hit over £3600 a year. That’s more than double the cost of pre-pandemic energy prices.
The economic slowdown could have a devastating effect on small-to-medium-sized businesses. In the current climate, business owners will need to find solutions that enable them to reduce overheads and free up cash flow.
In times of economic pressure, cutting costs is always the first course of action. The unfortunate tool is to wield the axe on employees to ease the wage bill.
However, reducing your workforce also means you reduce your levels of production and, presumably, your revenue. Rather than slashing your wage bill, consider eliminating overheads associated with office rentals and rising utilities.
Cost-Effective Coworking Spaces
When you rent office space, you typically pay a ‘business rate’ for the lease which includes a property tax. On top of that, you are responsible for utility bills, maintenance, facilities and office running costs.
In addition, you typically have to rent out an entire office or floor, regardless of whether you’re using the space in its entirety. Oftentimes, businesses are paying for space they’re not even using.
If you’ve adopted a hybrid working model, paying for space you’re not using is noticeable. Furthermore, there may be a cost-effective solution with coworking office providers that charge you for the space you use when you use it.
Coworking spaces allow you to book offices and meeting rooms by the hour. This enables you to manage your costs and save money that is ordinarily wasted if you’re leasing office space via traditional methods.
Avoid the Costs of Downsizing
It’s understandable that some businesses are contemplating downsizing to a smaller office right now. But downsizing still involves unnecessary costs that can be avoided.
Searching for new premises, hiring movers, decorating and potentially paying crossover monthly rental and utility fees quickly racks up costs you could put to better use elsewhere in your business.
There’s a strong chance that the initial outlay of moving into a coworking space will be significantly lower than relocating.
Coworking Space Contracts
Some coworking space providers lock you into monthly or annual contracts. This typically involves paying for space and facilities that you may not need. Consequently, you may not reduce your costs as much as you hoped.
BluDesks give you the opportunity to book space by the hour. This means that you avoid overpaying for space you don’t need. It also allows you to set a monthly budget aside and manage your spending.
Furthermore, we have hundreds of coworking spaces for you to choose from. This makes it easier for your employees to find a coworking space that is conveniently located close to their homes.
As a result, your employees will reduce the costs involved in getting to work in the city and use less energy at home.
Contact us today and find out if we can help you lower your business overheads.