The price of doing business can be prohibitive so finding ways to cut costs is crucial to improving your profits. One of the biggest expenses for most businesses is the office rent. Considering that business owners usually have to pay ongoing fees for maintenance and utilities in addition to the rent for the space itself, it makes sense to cut ongoing costs that are contributing to this large expense. Here are a few ways to reduce spending on this high-cost business item.
Use a Serviced Office
The best way to save money on your office rent is to use serviced offices. Although the monthly rate for a serviced office may be more than your current monthly rent, you’ll still save money in the long run because of all the extras are included. Also, you can save even more money by finding specials on serviced offices. And if you add in the time you would have spent managing all the amenities offered by serviced offices, you’ll be making even greater savings.
Allow Your Employees to Telecommute
Providing a telecommuting option for your employees can go a long way towards lowering your office cost. When you have fewer workers coming into the office each day, your costs of heating or cooling the office, office supplies and even IT problems are reduced.
Telecommuting in New Zealand is not a new idea. Over the years it’s been suggested as a way to deal with earthquake zones as well as higher housing prices. Telecommuting can also help in the process of recruiting new employees. If you employ remote workers, you can have your choice of employees from all over the world. Additionally, because telecommuting gives the telecommuter more flexibility in his or her work schedule, that flexibility adds another level of benefits, making working for your company even more attractive to workers around the globe.
Sublet Your Extra Office Space
If you have any unused space in your office, investigate the possibility of subletting that space to someone who needs it. New start-ups are often in the market for a small office space that they can call their own without having to take on the formality of a building lease.
Subletting extra office space is a great idea but only if your own lease allows you to do so. Check with your landlord to be certain that you can sublet. Also, if you are currently shopping for office space, make sure that the ability to sublet is part of your rental clause. Subletting can really help defray the cost of leasing office space because you’re passing part of your rental costs on to someone else.
Rent your Office Space for Weekend Activities
If your office is being used only during the workweek, consider renting your facilities for use by others during the weekend. One company reduced their office costs by letting language teachers use their meeting rooms as classrooms. A win-win situation for both parties, the language teachers had a professional environment for teaching and the company was able to apply the rental costs to defray their office rent.
There are obviously several ways to reduce office costs but it’s important to choose the one that works best for you. Carefully investigate the limits of your lease and think outside of the box for ways to lessen your costs. Make sure that in trying to reduce costs that you are not causing more problems for yourself in liability or violation of a contract. Also, take a close look at serviced offices and how they can benefit you. It may be that the best solution for your office costs is to use a serviced office as your base of operations.