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Cost trumps location for entrepreneurs’ first office

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06/09/2018

Entrepreneurs say that watching overheads is the most important factor for them when choosing their first office, with 56% saying it’s the most important element in their search, according to a survey by serviced office specialist Workthere. The cost of office space comes ahead of location and transport links which were ranked as important by 37%.

Another 56% agree that a cost-efficient work space is crucial to the success of their business, citing it as five times more important than an office’s style and design.

When asked, entrepreneurs ranked the below as the most and least important to them when choosing their first office:

Costs for office space can vary greatly across the UK with areas in London unsurprisingly coming at a premium, while those looking to work in the North can secure much more reasonable costs:

The research from Workthere, the serviced office specialist, reveals the biggest decisions entrepreneurs make during the early stages of their business, from dress codes and office costs, to funding and marketing.

While the way employees are working has changed dramatically over the last 10 years, the role of the office is still vital, as entrepreneurs spend more than 30 hours each week in the office. 52% of respondents to the survey said they are more likely to make business decisions at their desk than anywhere else.

For business owners, choosing the first office is a big task, and can affect access to talent, their appeal to clients, and their flexibility to grow, says Workthere. However, entrepreneurs have a clear priority list, with finding a cost-effective space coming out as their most important priority (56%), followed by good transport links (37%), strong IT infrastructure, such as broadband speed and phone signal (23%) and flexibility to grow (22%).

Outside of the office, business owners also ranked building their brand (e.g. choosing a company name), meeting financial targets and staying in profit, and achieving work/life balance as some of the most important decisions they have to make for their business.

 

Cal Lee, Head of Workthere, said:

“For any entrepreneur, location is a pivotal part of their first office, as good transport links are crucial in terms of being an attractive option for employees. However, business owners know that for young companies, keeping costs low is also essential. Getting these decisions right, and getting the optimum space for a new venture can be difficult especially for new businesses who are finding their feet, but with a bit of help it can be a much easier process for entrepreneurs.”