With today’s global inflation affecting individuals and businesses alike, cost savings has become the priority for many to get through these economically trying times. Although the largely work-from-home arrangement of the current remote working model has undoubtedly generated much savings for both employers and their employees, it is marred with problems and shortcomings that hybrid working aims to address.
In this future of work, hybrid working brings the best of both worlds of working in a traditional office and in remote locations, which means having employees rotate between working onsite and offsite. Naturally, this entails retaining office space, but the reduced headcount in the building has businesses facing the problem of paying for space that they cannot get the most of and presents an unrealistic overhead that does not guarantee profitability. Coworking office spaces for rent can help remedy that issue and provide beautiful and collaborative spaces, all while helping businesses with their cost management efforts.
1. Flexible space and pay only for what you need
The first and foremost advantage of coworking offices is their flexibility. Unlike traditional leases that typically involve lengthy and expensive contracts, coworking spaces provide shorter contracts that can be customised and scaled to the needs of an organisation or independent professional. As such, if they experience rapid and unexpected growth, sizing up to accommodate this progress can be easily arranged. Similarly, downsizing is also possible should the need arise.
This is in contrast to renting conventional offices, wherein companies cannot be certain they will ever grow into the space or outgrow it. Either way, thinking ahead by choosing a larger space to grow into means long-term payments that could potentially lead to unnecessary expenses if the space is only partially utilised. In coworking spaces, businesses can lease the exact size or number of desks they need initially and scale up or down over time and make efficient use of their budget for office space.
2. No maintenance costs
Maintenance costs are necessary to ensure the cleanliness and functionality of a working environment and its amenities. Moving to a coworking space means businesses will have one less periodic expenditure to worry about, as these costs are already consolidated in the coworking space’s fixed rates. Therefore, they can rest assured that whenever issues arise, the coworking provider will be the one to resolve them, which saves time and financial resources and optimises financial planning for more meaningful purposes.
3. Already outfitted
Procuring office equipment and appliances like desks, chairs, and printers, as well as renovation work, may no longer be an issue for established businesses, but that is not the case for startups just starting out. When leasing a coworking office, the latter will no longer have to set aside capital to purchase these items all at once and instead gradually acquire them over time. The money saved can then be better spent on improving the business’s growth and quickening its path to profitability in the early stages by investing in matters more likely to generate tangible returns.
4. Fixed business rates and utility bills
Typically, organisations pay utility bills and business rates when leasing a traditional office space. Business rates are property tax that changes depending on a property’s valuation. By renting a leased office, business and utility rates may fluctuate unexpectedly, which means extra costs that could affect the business’s financial planning. This is not the case with coworking offices thanks to their fixed business rates and utility bills that ensure members will not be subject to sudden increases as the coworking office provider absorbs them, allowing the latter to make more reliable calculations on their expenditure planning.
Given today’s economic situation and the transition to a hybrid working model, coworking spaces are becoming a more and more attractive alternative for businesses looking to improve their cost management efforts. Besides better financial health, coworking provides many key perks and benefits for employers and their employees alike, as we’ve covered in previous articles.
If you’re convinced about the financial benefits of adopting coworking spaces, GreenHub Singapore can help you make the switch! Our green and modern workspaces come outfitted with all the necessary appliances and furnishings and are designed with natural design elements proven to enhance employee productivity and mental wellness. Give us a call today and arrange a visit to experience our offices in person.