Cost is a large factor and the bigger your office space, the higher the cost will be. However, having employees work from home and sacrificing an environment where employee productivity, morale and overall corporate culture can be fostered is a big risk. It may cost you more in the long run by running the potential risk of losing top performers. 

It is important to provide your team with a space in which they can thrive. It is undeniable that a good work environment can help attract and retain talent. However, it is essential for young businesses starting up to find a happy medium between value and office size. The amenities such as access to eateries, printing and a fast internet connection within the building should also be taken into cost consideration. 

Crunching the Numbers

For the average business, renting an office space costs between $100 per employee per month up to $1,000 per employee per month depending on the location and type of space the business needs. Whether you choose to rent or buy, office space is a significant financial burden and a large portion of your fixed costs. 

The easiest way to mitigate overhead costs when starting a business is to look into co-working spaces. Especially if you are a service-based business, you may only need to meet with your team on an infrequent basis or require a space to meet with clients in a professional environment. Habitat HQ is the optimal solution for this situation, providing an affordable place to meet without having to commit to a long-term arrangement that can be financially burdensome. 

Rent is still the biggest expense when starting a business

Renting traditional commercial office space can mean signing a lease anywhere from two to 10 years in length with a hefty down payment often required by the lessor. It is also important to factor in the reality that breaking a commercial lease is both complicated and expensive, often resulting in an exorbitant compensation fee to the landlord.

Flexibility is King in the Startup Industry

Imagine having an office space that could be used like a gym membership. A membership that is charged on a month-to-month basis is a lower-risk commitment. From a cash flow perspective, co-working space is ideal for startup entrepreneurs looking for a professional workspace without the high upfront costs and long-term undertaking. 

Startup businesses often rapidly expand once they hit the market, which means there is a need for the flexibility of a co-working space. This is because when there are additional employees joining the team, it is as simple as adding another membership or securing an additional hot desk.

Are you looking to expand your startup venture and need more space? Contact the Habitat HQ team to find out more about how our flexible workspace can grow alongside your business needs.