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5 Alternatives To Commercial Office Property

5 Alternatives To Commercial Office Property
Image credit: Muid Latif | Flickr
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You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

As someone new in the world of startups, you will find yourself hiring staff members in no time. Though it is commendable that you saw enough potential and success trend that justified bringing new talent, the fact that this transition, from a ‘one-man army’ to full-fledged team, brings with it the duties that you won’t face when working by your own.

Other than the taxation, legal, and HR tasks related to hiring, the first bridge you will need to cross is deciding where to keep your employees. Despite the fact you might not be prepared to obligate to commercial property lease for two years or maybe more, hiring of a staff makes you responsible for chairs, desks, and above all roof over the team members’ crowns.

Luckily, a commercial property is not the only option. In truth, there are a number of alternatives when you think about placing your new staff.

Co-Working Spaces

These are the open offices intended to allow remote workers, freelancers, and startup entrepreneurs to work togetherseparate from their homes. These offices are springing in approximately all the major cities for being affordable for operating on very nominal membership fees. Based on spaces in your locality, the membership might include a fix seating arrangement, access to the community conference areas, office events along with other perks.

Small Business Incubators

Contactthe local government or the business development communitiesnearby for information on the active small business incubator offices in your localityif you have already outgrown the co-working space. The aim of these small business incubators is to offer flexible spaces — in addition to consultation servicesuch as mentorship — to the growing startups.

Such programs usually offer discounted rentals with the agenda that this will stimulate business growth, affecting the overall economy, directly.

The discounted rates and the manyentrepreneur-friendly conditions might make incubator spaces a greatmatch for a growing company.

Executive Office Suites

Owned and activated by companies such asIntelligent Office and Regus, executive office suites offer the exclusive office space like that in the business incubators, but with a lot more additional perks likemail handling, high-tech utilities, administrative support, and more. Normally the executive office spaces are muchcostlier than the small business spaces on the cost PSF basis. Yet the contract flexibility and presence of small office size as compared to the incubators makes it a savvy office area choice for the growing startups.

Work out of home

Instead of searching for spaces in the world, use what you have – your house! Arrange for a dedicated office column in one of your room while you convenientlymove from work to home by going just across the room.It is ideal for companies with a team of 3-4 people, or even more depending on the size of the house.

Remote Work Arrangements

Lastly, before signing the underlined line of rental agreement, take time outto concludewhether you evenrequire office space! There are a number oftools in the market that enables one to manage the employees on the goirrespective of where the employees are located.

This is the only setting that helps to keep the cost down;also it can be an advantage when recruiting skilled people. As a faraway employer, you will be able to attract more employees from across the globe, considering the needed level of elasticity remote work involves.

Irrespective of what alternative you choose, other than remote work arrangement, there are a few costs that you will have to bear.

Let us look at them taking any metro city suburb as an example

1. The Space

Getting a good space (100 – 200 sq. ft.) in the suburbs for the team of 4-5 shouldcost anywhere from Rs 7000 to 10,000, with all the variables paid, onemight be looking at Rs 13,000 or less. Where the deposit might stay between Rs 15,000 to Rs 26,000.

Any larger office (350-sq. ft. open space), which can occupy around 15 people will cost around Rs 25,000, rent wise and the deposit would go up to Rs 75000. Parking space and security expense is not included in this cost.

2. Desks & Chairs

The basic need isa minimum storage area and a few work desks. A normal desk space minus the keyboard tray for 6-7 people can be up to Rs 15,000.The chair is where one spends most,it is something you cannot compromise on considering the rising usage of computers and ergonomics. An ideal chair should cost somethinglittle over Rs 2,000 - 4,000

You will also need various plastic chairs for around Rs 350-450 for guests or extra, temporary, or just for casual seating.

3. Electrical and Lighting

Normally, the place you take on rent will have fans and lights. Buying a spike guard that provides serious protection and plug points is the lone cost. But the cost rises if you do the additional wiring for the air conditioner or install lights and fans.

4.  Computers

A computer is the most evident purchase. Even if you install used system with a new LCD screen, a normal Dual-Core processor with WIFi, 1 or 2 GB RAM, and the simple I/O devices will cost around INR 4000 – 6000. Adding Rs. 10,000 to 11,000 cost of hard disk will give you a cost estimate that will go into buying computers.

5.  Agent & Negotiations

Lastly, don’t forget agent commission when renting an office space. Agents expect to receive a cut every time you renew the lease too; either bring it down to a lower price or make him waive it off. Also, close the monetary deal with your agent first before finalizing rentwith your landlord.Usually a landlord will increase the rent amount if you bring the deposit lower, so plan the negotiation in advance.

You canalso use agent’s commission tool to negotiate with your landlord. The only secret here is to set a budget and then stick with it.

There are plenty more factors to think when you start choosing an office space, which is correct for your new company and an even more cost variables, but by going beyond the commercial property box, you will find solutions, which saves you money while simultaneously meeting your startup’s unique needs.

Edition: December 2016

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