Get smart Serviced offices are a decent option for some small businesses. They remove the burden of property ownership and management, but can provide workstations and meeting rooms, technical equipment and administrative support. William Willems, Regus vice president of for Australia and New Zealand, says he has seen increasing demand from local start-ups seeking a […]
Serviced offices are a decent option for some small businesses. They remove the burden of property ownership and management, but can provide workstations and meeting rooms, technical equipment and administrative support.
William Willems, Regus vice president of for Australia and New Zealand, says he has seen increasing demand from local start-ups seeking a professional presence without the expense and workload of managing their own office.
“A lot of businesspeople say to us, ‘It’s great to work from home but I really need to move into a professional office because I’m unable to balance my private life and my business life’,” Willems says.
“Also, a lot of home-based businesses feel as if they’re losing their corporate identity and would prefer to be surrounded by other people doing work.”
“But with business sentiment uncertain for 2011, and profits already squeezed by rising wage costs and weak selling prices, Australian companies are looking for more cost-effective and smarter ways to work.”
Willems says companies offering workplace solutions can also speed up the process of moving, which is ideal for start-ups.
“If you’ve got a great idea and your product is ready, don’t take too long [to move from your home into commercial premises] – you need to be quick and efficient in the market,” he says.
Location, location, location
Shelton says despite the need to move quickly in the property market, you shouldn’t make a hasty decision.
“Before even thinking about buildings, rent, contracts and clean-ups, it is essential to conduct preliminary market research with a sample of your best customers,” she says.
“Make sure that the premises are not just a new location but rather offer the chance to make your presence felt in the market.”
Like MyBudget, Planet Chocolate is an example of a successful start-up that made the leap into commercial premises after starting out as a home-based experience.
Now with five stores across Victorian shopping centres, founders Greg and Darren Factor have learnt a thing or two about how to secure commercial space that suits their offering.
“At the start, it really wasn’t easy to deal with major shopping centres… They’re not very interested in giving new retailers a crack,” Greg Factor says.
“We got some good designers on board to put a [store] concept together for us. Westfield liked what we presented to them and started to look for a site for us.”
Factor believes presenting Westfield with a plan, as to how to their store would look, contributed significantly to their success in securing a site.
He estimates the entire process probably took around 15 months, from the time he and Darren first started developing their concept to opening their first store.
“It took a long time. That included going to the different landlords and negotiating the rent… We weren’t running our business but it was still tough,” he says.
Factor says other start-ups looking to move from their home into commercial premises should ensure they choose a visible location with suitable rent.
“A lot of retailers fail because they overpay on rent – it’s not a fixed cost; it escalates every year. My advice to any retailer is to get your rent right but, before you look at the rent, be happy with the location,” Factor says.
Don’t commit too early
The WBCA says home-based businesses should consider every option before signing a long-term lease or approving expensive building plans.
“A flexible inexpensive interim solution may be just what your business needs to get to the next level,” it says.
The WBCA says businesses should check out serviced office suites not only for the savings, but for the flexibility the companies often allow.
“Short-term contracts, from several months to a few years, are usually available… Some temporary office space providers will even rent space for a few hours or a few days,” it says.
The WBCA says if this type of service is not available in your area, try talking to a local commercial real estate manager.
“It’s likely you’re not the only business in your area in need of this service. A little demonstrated demand may be all that’s necessary to push a real estate manager to offer this type of service,” it says.
Bumps in the road
ICT interruptions proved to be biggest pitfall for MyBudget when it came to moving. May says businesses can enlist the help of a specialist to ensure this happen smoothly, but should factor in any professional help into the budget.
Shelton says a common mistake made by businesses is deciding to relocate before every aspect of the move has been converted into “costed, detailed and achievable realities”.
“Unless there is a sound business case for the move, it is worth taking the time to explore alternatives including taking on business partners or at least a transition manager for the business at the new location,” she says.
“This ensures that the smooth transition you have planned has room for change and reconsideration.”
“Don’t be afraid to consult a business development strategist, talk with people in your industry, and remember to give everyone plenty of time to make the move with you rather than away from your home business.”
