When running any type of business, keeping an eye on your bottom line is one of the most crucial aspects. This means that you’ll need to look at your expenses, cutting costs whenever you can to improve your free capital while retaining the same level of quality. Since your rent is likely one of your largest expenses, you may be wondering how to reduce the amount you pay. Fortunately, there are plenty of ways in which you can lower costs through some careful research and planning.
These days, it’s completely normal for people to work remotely via the internet. This means that you may have the opportunity to reduce the size of your required floor space and thus lower your rent at the same time. Take a look at who really doesn’t need to be in the office each day. In general, there are very specific work activities which allow someone to telecommute instead of working fulltime in the office. For instance an employee who spends all of their day on the computer or out visiting customers doesn’t really need a permanent spot in the workplace. Instead, let them work from home and set up some shared desks in case anyone has to come in to the office for a short time later on.
2) Negotiate the Lease
There are instances when the landlord will be willing to reduce the rent you’re paying if you really cannot afford it. After all, if you move out, they won’t get any sort of rent at all, at least not until they find a new tenant. If you’re located in a region where it may be difficult for them to seek another occupant, you actually have a lot of leverage when it comes to negotiating a more affordable lease. There are a number of angles you can take here from the monthly rental rate to the term of the contract.
3) Move to a Shared Workplace
Another option is to relocate into some sort of shared serviced workspace. In this way, you can still take advantage of a modern corporate environment without paying the full rent. This is an affordable office space alternative for those on a budget. The good news is that there is a diverse range of these facilities worldwide. If you’re in need of a decent commercial setting, keep a look out for these types of premises:
- Day offices
- Hot desk facilities
- Part-time leases
- Mobile working packages
Each of these provides a cheaper option for those who still need a professional work setting but who don’t want to pay the full amount for a proper executive suite.
4) Switch to a Cheaper Area
If you really can’t negotiate with the landlord or find a suitable shared workplace, you can always look to a more affordable location. While this may involve some initial hassle as you have to change your business address, adjust to the new region, etc. you’ll end up on top as your monthly rental costs will be far lower. In fact, this is one of the best ways to cut office rental costs available to UK business owners. If you can make the move to an economic development or tax-free zone, this decision may be even more beneficial for your company!
5) Seek Out Short Term Rentals
Your last alternative will be look for a lease that allows you to move in for the short-term, i.e. on a daily, weekly or monthly basis. This is a viable alternative for small businesses which can be run from home if needed. In this way, you can still have a professional corporate spot to run your company from without the high rental rates that long-term, executive offices typically come with. These locations may also include shared meeting rooms and on-site receptionist services as well, allowing you to get even more out of your business without spending a fortune.
These five alternatives should give you plenty of ideas about how to reduce your expenses while renting some commercial space. Although they each require some effort, the end results will be extremely beneficial. By cutting down your rental costs, you will then have more money with which to run your company.