Two guides to Offices in London

Contents

Why a Serviced Office is Important

Virtual vs Physical Office Space in London

This guide was created by OnlyOfficeSpace.co.uk

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Why a Serviced Office is Important

In the modern era, where the office has become as much a component of the work team as the individuals who fill its desks, creating and maintain a successful office environment has become imperative. From startups to multinationals, all companies strive to find the right place to house their employees in such a way that the workplace becomes conducive to the progress and smoother running of the business. Because of this, plenty of time and resources are shoveled into finding, creating and making this environment work, not always successfully. This is where served offices come in.

Serviced offices, also referred to as managed offices or business centers, are fully equipped, fully operational offices or office buildings managed by facility management companies, which are ready for immediate occupation and use. They are usually found in the central business districts of major cities around the world.

Of the many advantages of a serviced office, the main and central benefit is its very nature: serviced offices already provide many of the components that make up the office environment, including all essential facilities and services, and are usually already equipped with work stations, storage, decorations, telephones system and internet connection. The real benefit is that this is all available within hours of days. This means that gone are the days of renting traditional office space, which requires that the incoming business bring in their own equipment.

The fee and rent structure of the model of office is another important aspect in making it an attractive option for your business. Whereas you are faced with the huge expenses of renting and fitting out the traditional office space, and you will usually be bound to a fixed term of three to fiveyears, a served office allows you much more flexibility in this regard, meaning you are faced with less pressure from the get go, and can focus all your energy on the work.

Although the monthly rental fees on serviced offices are generally higher, they are rented out for brief periods, from as little as one month to one year renewable, or on necessity. As opposed to traditional rent models, where an upfront quarterly fee is required, monthly rent allows businesses, especially startups, to breathe a little easier when entering their new premises, easing

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up cash flow and allowing resources to be put to better use immediately.

Considering the fact that most amenities andfacilities are already installed in the serviced offices,the breaking in period is negligible, which affectsexpenses in a major way. Research performed by theUK Chartered Institute of Purchasing has shownconsiderable savings for serviced office users. One ofthe ways through which this is achieved is throughpay-per-use facilities, which means that businesseswill only pay for what they need and use. Theseinclude services and facilities such as copiers,meeting rooms and staff.

Though the advantages of serviced offices mentioned above point towards a winning formula, there are also several disadvantages to be considered for prospective renters. These include the fact that businesses may not be able to extend their personal brand and style to their own offices, generally less visibility as the name of the company is not likely to appear on the building’s main lobby directory, the fact that facilities are shared means that they may not always be available when required, and, for larger companies, rental costs may prove to be more expensive over a longer period of time for larger businesses.

These disadvantages must be balanced against several more benefits, including a customer service team made up of secretarial support, a reception team, a post room team, IT support, building maintenance and cleaning, better growth flexibility, the availability of top equipment, networking opportunities and the no-hassle administration required with serviced offices. As these offices are generally found in city centres, they provide prime business addresses for companies, allowing for the reputation and prestige of the company to profit.

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Virtual vs Physical Office Space in London

The advent and evolution of technology has significantly altered the traditional model of the office space and environment, allowing new and more flexible means of managing a business, and of these alternative business structures and working arrangements, the virtual office is one of the concepts that has been gaining the most traction in recent times.

Driven and motivated by better technology and modern management techniques, as well as the need to keep the costs in check, a growing number of small, medium-sized and startup businesses are accepting the concept of a virtual office, which have proven a very effective means of dealing with companies’ administrative and communication requirements.

As with all innovation, however, and alterations from the standard model, there are bound to be certain disadvantages to this manner of approaching business, some of which are inherent in the concept itself. With this in mind, there are some undeniable benefits to be drawn from having a virtual office, making it ideal in many respects for startups and growing businesses. We look at some of the pros and cons of having a virtual office versus a physical one.

Advantages for Virtual Office in LondonThough there are various advantages to having avirtual office in London, one of the main reasons whythis concept has had such success is impact onreducing costs. Without having to rent physical officespace in London, which in a city like the capital canquickly deplete your resources due to the high rentprices in the areas where you would most like tohave your office address, small businesses andstartups provide an opportunity for businesses toreduce their costs dramatically.

Virtual receptionists also do not require companies to hire extra staff and the associated costs. Further, virtual offices can provide mailing addresses, business support services, top range telecommunications, call forwarding, appointment scheduling, mail handling, meeting rooms and conference facilities.

Having a virtual office also allows employees the opportunity to work from the comfort of their homes, or wherever they may be, without having to deal with lengthy commutes and transport to and from work every day, a major plus when looking to run a business in London.

But perhaps one of the most appealing characteristics of virtual offices in London is the possibility of projecting a professional image of the company, in as much as it permits businesses to have a central London business address, where they can conduct group meetings and meetings with clients, allowing them to make that all important first impression for a minimal fee compared to what it would cost renting a physical office in the same zone.

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Disadvantages for Virtual Office in LondonAs mentioned above, there are several problems that may be encountered when renting a virtual office in London, most of which are intrinsically linked with the central concept of a virtual office, namely that there is no physical location for everyday exchange between colleagues and other fundamental aspects that can be found in traditional physical office spaces.

One of the consequences of this is that it may result in minimal employee motivation and management. Employee dissatisfaction and lower productivity are real dangers in this respect, and, as this model presents fewer, if any, opportunities for teamwork between colleagues, may negatively effect on the growth of the business. This also greatly increases the probability for miscommunication between employees.

Another difficulty that virtual offices in London present is the fact that, as most of the services offered are via the use of technology, should there be any technical difficulties at any time, crucial time may be lost and will this hamper the company’s basic operations.

If you want to learn more about the ins and outs of office rentals, head over to www.onlyofficespace.co.uk

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