One of the greatest expenses of any business is the cost of office space. In fact, it is the second greatest expense after employees’ salaries and benefits. The common thought in the business world today is that it is a far better option to rent the space to conduct a business, rather than to invest huge sums in purchasing a suitable property.
The reason behind this thinking is that the better the location of the office, the more value and respect is given to a business. This is because anyone who comes to such place of work immediately thinks that the business is doing very well if it can afford to rent such accommodation. The downside is that the more prestigious the area or building the business is operated from, the higher the purchase cost.
Thus, renting offices is the way to go. In these turbulent economic times, it is not easy – and is sometimes impossible – to get a mortgage, especially for a relatively new business. Even if one is able to meet all the criteria pertaining to getting a mortgage, the strain on the businessman with a huge mortgage over his head to come up with the finance each month is enormous and can seriously damage his ability to run his company effectively.
Renting Offices Reduces Costs
Renting offices will also reduce the average monthly running costs of a business. When one runs ones business with a mortgage, there are many additional costs, some hidden and some out in the open. These include the costs of building maintenance which can run to huge amounts of money each month. The upkeep of the property is another aspect which can dig deep holes in one’s profits, because once one is paying for the premises, one has to keep it in tip top condition to maintain its value. When renting offices, these problems are the concern of the landlord, who is duty bound to maintain the office space and the building in prime condition.
There are also various ways in which one can go about renting offices. The first and most obvious option is that of renting space on a long term lease. This method ensures that the business will have the same address for many years, thus the business will have credibility in the eyes of its customers and suppliers. It will also engender a feeling of stability for its employees. For those businessmen who do not need a fully functioning office for every working day of the month, there is the option of renting offices on a daily or even hourly basis. In this way, the business continues to show the same address and has the same equipment and décor for any supplier or customer coming to the premises, but they do not know that it is not a full time arrangement.
Business Center International
Your trusted source for Offices and Meeting Rooms in Richmond.
Rent fully furnished Office Space, Meeting Rooms and Virtual Offices in a professionally staffed Serviced Office Business Center. BCI offers exceptional value and service for all your Work Space needs.
Angela Abbasi is Vice-President of Business Center International and the Virtual Office Center
BCI is a family owned and managed business center with 21 years experience in the executive suites industry. Contact us today to Book a Tour.