“Whatever the mind can conceive and believe, it can achieve.”
Napoleon Hill, Author of Think and Grow Rich
Entrepreneurial ambitions are all about making breakthroughs and breaking down barriers that will allow their business to become productive, profitable and successful. Entrepreneurship is more than just making money; it is about bringing dreams to life! To achieve this, entrepreneurs need a working environment that will allow them to be productive and agile as the business grows. The thought of investing in the right office space can be daunting when costs are considered. However, there are solutions tailored for ambitious entrepreneurs that will allow them to scale their business growth successfully. Below are a few considerations that entrepreneurs and business managers should bear in mind to maximise their best chances of success.
Invest in an office space that gives your business an impressive location and facilities without the high price tag
Renting office space in a prime location can be expensive. Making the wrong choice can tie your business into a long-term lease agreement that restricts your ability to grow. Virtual offices solutions provide entrepreneurs with a ‘gateway to growth', by leveraging established offices in a prime location with the business setup that they need to hit the ground running.
Many companies like Cisco Systems have grown through virtual solutions and superseded the competition that has opted for the traditional brick-and-mortar business. In fact, spokeswoman for Macquarie Bank said the company would save $110 million over the next 10 years by consolidating office space across the city, including the introduction of an ''activity based working'' model at their new office in Darling Harbour.
The substantial cost savings that businesses can benefit from allows them to reinvest in the company's valued resources, such as employees, marketing and development. Some of the overhead costs that entrepreneurs need to consider include:
1. Office rent or lease agreements
When it comes selecting an office space that will support your workforce, the Building Code of Australia requires a minimum of 10 square metres per person. Data on Sydney CBD office occupancy costs from the New South Wales government estimate $1144 USD per square metre annually, meaning the office space cost per employee will cost businesses $11,440 USD. According to the Australian Bureau of Statistics report in 2014, 61% of small businesses had no employees, 27% had 1-4 employees (Cost $11,440-$45,760) and 10% had 5-19 employees ($57,200-$217,360 USD).
2. Holding deposits or guarantees
Commercial property vendors will request a security deposit. This could amount to at least 3 times the monthly rent, which needs to be paid upfront.
3. Furniture and fittings
Many businesses will need to provide their furniture and customize the company's interior. Costs can quickly escalate into the thousands since the company will need to provide an office desk setup that will include computers, office chairs and office desks as a minimum.
Printing costs can account for a significant percentage of a business's operational costs. The purchase and maintenance of printers can account for business thousands of dollars each year.
5. Administration staff costs
You want to be as productive as possible in your office. Having administration assistants that can monitor and screen calls, greet guests and manage the office will allow you to focus your energy and expertise into the business. According to Fair Work Australia, the hourly rate for an administration assistant is $20.50/hour ($779.10 per week).
Will the office provide the telecommunications or will you need to invest in a business solution? Cost considerations include:
- Phone line installation
- Connection fees
- Monthly access fees
- Phone call fees
- Phone line rental
- Phone rental
7. Utility costs
Your company will need to account for utility costs for electricity and water.
8. Internet setup
You will need to find a reliable provider that can set up your internet connection quickly and provide your office with a fair monthly cost for data usage and accessibility via wireless routers.
9. Secure parking space
Will your office location include an area where they can park their private transport? (E.g. Car, motorcycle, bicycle.)
Secure the perfect virtual or serviced office without going through an operational and financial headache with office management
Virtual offices are increasing in popularity with businesses since they allow companies to breaking down financial barriers that would enable them to access premium office locations. An annual package with Servcorp could cost as little as $1188 AUD per year. More entrepreneurs are finding more money and happiness with an office-free lifestyle by leveraging virtual office solutions.
Virgin boss Richard Branson believes in virtual offices
With a current net worth of $5.1 billion USD, serial entrepreneur and Virgin founder Richard Branson believes that virtual office solutions will be the way of the future. He was quoted on Virgin's blog saying, “Many employees who work from home are extremely diligent, get their job done, and get to spend more time with their families. They waste less time commuting and get a better work/life balance. To force everybody to work in offices is old school thinking. I have always worked from home so I can spend more time with my family.”
Virtual offices and technology unlock accessibility to prime locations, cutting edge technological processes, enhanced brand status and the work-lifestyle freedoms that are desired by the entrepreneurs and their workforce, providing them with a platform that will maximise their chances of success.