Whilst the economic future looks uncertain, some UK businesses have the opportunity to capitalise on a market downturn. Every recession presents business opportunities.
As Del Boy would say, ‘he who dares, Rodney, he who dares.’
The increasing shift to digitalisation and mobile payment gateways, in particular, indicates the coming years will be lucrative in the fintech space and insurance companies.
But decisions need to be made to navigate the rocky ground. Growing a business in fast-paced markets requires foresight. One consideration that shouldn’t be overlooked is how your company will scale.
The obvious option is to lease office space that enables you quickly increase your workforce. But in the meantime, you’re paying for space that you’re not using. And if resources need to be carefully managed, you could be spending that money more effectively in other areas of your business.
The alternative to a fixed-term office lease is to rent coworking space. Shared offices give you the flexibility your workforce demands whilst enabling you to manage your overheads.
Low Start-Up Costs
Whether you’ve been up and running for several years or looking to establish your brand as a key player in the fintech space, being visible to clients is critical.
Whilst finch companies can work remotely, adopting office space for your headquarters projects a professional image and helps to build trust with consumers.
Yet the cost of leasing office space in London is through the roof. Quotes range from £40 per sq. metre to £85 per sq.m. The Financial Times reports that London’s office leasing market is 8.2 per cent higher than in December 2021.
On top of that, growing companies require continuous investment in office furniture, computers, air-conditioning, photocopiers and a raft of other amenities that are typically associated with a fully-functioning office.
Moving into a coworking space enables you to lower your running costs and free up cash flow significantly. Moreover, you can set a monthly budget to one side so that always know what your outgoings are for office space and meeting rooms.
Avoid Long-Term Financial Commitments
Whilst most coworking spaces will enable you to save money, it should be noted that every company has a different model where terms and conditions apply.
You will find that most coworking spaces tie you to fixed long-term contracts – usually 12 months. This is not an arrangement that will work for a growing business that needs to scale quickly to accommodate more staff.
The alternative option is to go with a coworking space provider that enables you to rent office space out by the hour. Not only does this avoid being pulled into a long-term commitment that stifles growth, but it also enables you to cut down on your monthly expenses so that you can grow even quicker.
Facilitates Flexible Hours
The modern workforce wants flexible working arrangements. A study published by Gallup indicates the preferred choice of business model is to switch to hybrid working.
The hybrid model means most offices will only have a skeleton staff. Leasing office space or tying yourself into fixed, long-term contracts waste money you don’t need to spend.