Most executive suite office business center operators are frequently challenged with the objection that they are “too expensive”. Many inexperienced real estate shoppers believe that comparing the square foot cost of conventional space to the square foot cost of executive suite Business Centre in Chennai is an “apples to apples” comparison, and that the office space and amenities that a business center has to offer are more costly than a conventional office space alternative. This is a common office space myth and if the time and cost of services is clearly assessed, it is not unusual for the executive suite business center to be a significantly more cost effective alternative than conventional space, with added benefits.
Office business centers provide professional answering and reception services to handle callers and visitors. The cost to staff a person 40 hours a week for this purpose, plus benefits, workspace and equipment required typically is much more than the cost of the office in a business center. Additionally, if you consider the administrative time, training and human resource liabilities and elements involved to staff and maintain, the value is significant. Office business centers are in the business of ensuring that they are providing quality, consistent support, so the service is typically superior to that which can be achieved with a small staffed office. Also, vacations and sick and personal time are covered without issue.
Because executive suite office space involves a shared environment, space is not required for dedicated reception areas, copy room, telecommunications systems, kitchens/cafes and conference rooms; space that is not usually used all of the time, but is required to be available when needed, so by sharing it reduces the amount of office space needed. There will also be capital requirements that need to be considered for these areas; reception desks, lobby furniture, copiers, conference tables and chairs, audio visual equipment, refrigerators, dishwashers, etc.
Compare the startup capital required to open an office with conventional space. Along with furnishings and equipment required for the additional space needed that is mentioned above, there are also office requirements that include the furnishings, copiers, fax and telecommunications equipment. There will also typically be deposits and installation costs to initiate services. There will usually also be a large security deposit required for the Commercial Property for Rent in Chennai.
General and Administrative Operating Expenses
After taking into account the upfront costs associated with opening an office, the monthly recurring expenses should be assessed. There will be expenses for telecommunications services, office payroll and benefits, kitchen/café supplies, office supplies, building operating expenses and repairs and maintenance; expenses that can easily run several thousand dollars a month.
Resources and Time management
It takes a considerable amount of time to research, negotiate, hire and administrate the functions required to start an office and also requires ongoing resources to manage it. It will likely also take longer if the client has not done it before; knowing where to start and what to purchase, especially in the technology arena, can be especially overwhelming and mistakes for wrong decisions or overpaying for major items can be costly. Office business center providers are experts in these areas and include it in the service they provide. These services are typically invoiced on one invoice, once a month which also reduces processing time for the services rendered.
The liability difference between entering and being on the hook for a conventional lease agreement, which is typically 5-10 years, and that of an executive suite business center agreement with flexible, scalable terms should be taken into consideration in comparing the actual cost difference. Many businesses get into trouble by over paying for too much space and end up in bankruptcy courts for relief and protection from their lease obligations. This result may have been avoided if there was not a long term lease obligation.
Office Business Centers handle the details of operating the workplace so their clients can focus valuable time on their core business. Most experts can make more money by doing what they know and do best. The business center option allows this.
If all of these factors taken into comparing the cost difference, it is not unusual for the business center option to be somewhere between 30-40% less than conventional Office Space in Hyderabad when comparing actual expenses and overall exposure. Many times a business can enjoy a more upscale workplace environment than they can through conventional office space options, which make the Office Business Center an attractive alternative to traditional office space.