Running a business incurs many costs, not least of which are the overheads associated with your office. Cutting down on running costs could be a great way to improve cashflow, and it’s often easier than you might think. Here are a few ways in which co-sharing office space can save you money.
Splitting overhead costs
Some expenses don’t change no matter what. This includes business rates and rent, which are usually charged on the building itself. Splitting these costs means each occupant pays much less than they otherwise would. There are also overheads which do increase in cost with more occupants, but which are still more economical. These include energy bills and fees for services such as cleaning and internet connections.
Improved buying power
When you work together, you can often negotiate a better deal than you would by going it alone. If the landlord knows they can rent out an entire block of property in one go, rather than several individual units, they may well be willing to give you a discount or other incentives such as free cleaning, parking, or internet usage.
Leveraging shared expertise
When you choose a business to share office space with, you should try to find a company that complements your own. Marketing businesses that share space with graphic designers, for instance, can develop a professional relationship that’s mutually beneficial. If you have particularly specialised requirements, it may even make sense to share space with a competitor. If you both need access to similar facilities such as ultra-high-speed internet, and can share the costs between you, then this is often a smart way to work together. Of course you need to be sure this won’t cost you any business, so it’s often not appropriate for point-of-sale industries.
Finding a co-sharing partner
The benefits of co-sharing your office space are evident. However, it might not be quite so easy to find a business that’s ready to share with you. There are a few avenues that are worth exploring, though. Investigate local industry groups for businesses like yours that are looking to relocate, and talk to small startups about sharing space with them. These businesses are often looking for a low-cost space to work in, and may find it easier to relocate from their current premises. Spend some time looking for the right partners and make sure you’re all happy with the agreement, and you should gain all the benefits of co-sharing your office space.