When you start a business, it is essential that you find the right office space to operate from, as this can make the difference between failure and success. Turner Little outlines the key considerations of choosing your business’ first office space.
Find a good location
It is vital that you opt for space in a good location. By pursuing this strategy, you will ensure that your employees can travel to work easily, increasing your chances of attracting top talent. A study cited by Start-Up Donut shows that the most popular areas for London-based small to medium-sized enterprises (SMEs), for instance, are SE1 and NW1, because they provide easy access to commuters.
When considering location, you should always keep your target consumer in mind. Where should you base your company, in order to tap into your desired market easily, or put yourself at the consumer’s convenience? If you plan to open a travel agents, for example, you would be advised to base it on your local high street, so your business can benefit from nearby foot traffic.
Budgeting for space
One of the core areas of consideration when starting a business is budgeting. How will you meet the range of financial obligations that come with running your own company, from sourcing start-up capital to paying employees? When drawing up your business plan, it is important that you include your monthly office rental costs, so you can keep your business’ finances firmly under control.
As a small business owner, you will want to keep office rental costs down, freeing up cash to fund operations. You might want to consider going for a short-term office lease. You could also benefit by opting for serviced offices, which can be rented monthly, on a pay-as-you-go lease. With these offices, you can take advantage of a range of utilities and services, minimising your company’s outgoings.
Lease agreements
Explore your options before signing a lease agreement, so you are not forced to operate from an inadequate office long-term. Think about opting for a flexible short-term office space lease agreement. Rent on these agreements is paid month-to-month and they also provide you the freedom to relocate to another office easily. Smaller companies are more financially susceptible to business environment changes, so these agreements can lower risks during your firm’s vital growing period.
Break clauses
During your firm’s early stages, it could grow quickly or decline sharply; you do not know what will happen. This is why it is advisable to opt for lease agreements with break clauses, such as short term leases at serviced office spaces. If your agreement features a monthly break clause, you can move office easily should the need arise, upsizing or downsizing to maximise revenue and growth potential.
Consider shared spaces
You may want to consider going for a shared workspace, an option which is becoming increasingly popular with UK businesses. These offices foster collaboration, meaning that you can utilise other business’ expertise to boost your own operations. Providers of shared workspaces also often organising networking events, allowing your employees to create fruitful partnerships.
Utilise registered offices
When forming a limited company, you need to supply certain information to Companies House, including an official UK address. You do not need to operate from this address, but it is the address that all legal documents will be sent to. Utilise a registered office as your official address, so you can select a workspace which better suits your firm’s needs later on. As part of Turner Little’s miscellaneous corporate services, we offer the provision of registered offices for just £150 per year.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
