The events of the last 6 months have done a number on many businesses and forced them to shut their doors permanently – at least in the metaphorical sense. Many companies have opted to share office space with other business entities in order to reduce rental costs and sink more money back into operations. This yielded a huge benefit pre-2020, but things are starting to shift dramatically. Now, companies who had a coworking relationship might be in a position to take over the entire office space for themselves. Question is, are they ready?
If your company finds itself stuck at the crossroads on this issue, read on. We’ve got some interesting tips to help you decide whether to wait things out, or capitalize on a negative situation for the positive future growth of your company.
What About The Other Guy?
The first question that every company should consider is the financial situation of the company they’re sharing office space with. Some business owners will play this card close to their chest, rather than risk word getting out. In that case, it’s going to come down to a little gut instinct, and perhaps a little nudging. If the company in question is candid about the hardships faced over the last few months, you’ll know exactly where they stand. From there, it’s a matter of deciding whether you want to share your space with another company ready to move in, or seize the entire plot for yourself.
That Rent, Though
With the economy still on shaky ground, lots of businesses have decided to pack it in, or downsize. These decisions come with repercussions in the form of greater supply for office spaces, and lesser demand. No more words needed. Rental fees are dropping, and that could be a boon to your business, especially if you’ve been waiting for the right moment to break out of your mold and expand. The key issue here will be whether your company (or any, for that matter) can expand. In terms of overall economic strength, the world is in much better shape than it was 3 months ago, but we still have a ways to go before we’re effectively back to normal. Still, negotiating with your landlord could yield some cost savings as we move into 2021.
Let’s move away from pandemic-related fallout and focus more on routine considerations. One of these is your company’s culture, and it’s never been more important than now. If you’re ready to take over the rest of the space, be sure you’re prepared to boost your company’s design aesthetic and cultural nuances at the same time. This isn’t just for the sake of good looks. In an unshaky era, both potential new employees and your clients will want reassurance that you’re in business for the long haul. What better way than by dazzling them with a strong, cohesive brand identity the moment they walk through the front door? Some extra padding can draw in the best talent, and give your clients more incentive to trust you.
Check The Lease, Then Check It Again
Flexibility is one of the main selling points of a coworking space, and abandoning that getup for an all-in approach might feel a lot more strict than you’re used to. The terms of your existing lease agreement will play a big part in determining whether you’re ready to swap it out for the entire office, or whether you should play it safe. Don’t forget to count heads during this time, because it isn’t just about dollar signs and fine print. Figure out if you plan to grow and add new people within the next 2-5 years, or that extra space won’t do you much good. If push comes to shove, consider foregoing a huge takeover in favor of simply renting out a smaller, more dedicated space.
Remember The Little Things
Coworking spaces have a lot of benefits, including shared everything (or nearly so). If you’re ready to go solo, don’t forget to factor in common area things like furniture, internet and other amenities that would normally be sliced in half between you and your co-company. Yes, this includes maintenance and utilities. This should go without saying, but in the heat of the moment and a desire to gobble up all that extra space for yourself, you may bite off more than you can chew.
And there you have it. With a little contemplation, a quick skim over the books and some good old fashioned ambition, your company might be in a prime position to scoop up an entire office space for yourself. Timing is everything, so if it doesn’t feel right, it’s best to hold off. Forecasts are unexpectedly high for a solid economic recovery over the next 2 years (with a lot of progress coming in the first), so it’s up to you to decide if it’s time to pounce on an opportunity and carve that silver lining out a truly terrible cloud.
For more information on how to expand your company’s brand identity and design aesthetic into a full-fledged office, contact us today!