If you look at the assets listed by most business centres on their balance sheets, you are not likely to see ‘shared offices’ on the list. But shared offices are a profitable and asset in more ways than one might think.
Consider the facts. Business centres are generally located in areas that have expensive real estate. Every square foot of space has a large price tag. Can business centres afford empty desks? Every inch of space must be used. Conventional offices dedicated to just one person do not represent an optimal use of space. But when an office is shared by two, three or more occupants, as with shared offices in Navi Mumbai, it is a completely different picture — space is optimized. The revenue generated from the space occupied by just one person multiplies. Shared office spaces in Andheri, Mumbai, are another example of this phenomenon. No under-utilized space and more money earned.
Membership fees are important revenue-generators for business centres. And here again, shared offices bring in extra money without entailing extra expense on infrastructure. And since those who use shared offices tend to have shorter leases than individuals with dedicated offices, there is a larger flow of new members coming in –and so, more revenue generated through memberships, as can be seen in the case of shared offices in Mumbai.
When a business centre is set up, there are certain fixed costs regardless of the number of occupants. These include the fit-out, furniture, and equipment, the cost of maintenance, staff salaries, utility costs, and other expenses. These considerable costs can be amortized over the numbers occupying an office when there are more people sharing the office the costs are spread over greater numbers, reducing the financial burden the centre has to bear. This also goes for investments in technology, insurance, security services. All essential costs for running a business centre which can be shared.
Shared offices also bring in extra revenues for the centre’s manifold services. There are more people needing prime meeting and conference rooms and the centre’s administrative and other services, all of which are chargeable as extras, on a pay-by-use basis. Shared offices in Navi Mumbai bring in considerable revenues with these services.
There is a value attached to shared offices that goes beyond these revenue-spinners. Every office workspace has a buzz, energy enhanced by the profile of its users. People who use shared offices bring in diverse skills and experiences. There is a certain vibrancy, an ambiance that makes for creativity, innovation, and productivity. As a result, the centre attracts more occupants. There are higher levels of service, the best amenities are introduced, the right calibre of tenants intermingle. Networking opportunities abound. All this adds to the business centre’s brand value which has a definite impact on the bottom line.
Shared offices do not need added investment to be viable. In fact, they share the cost of running the office. They represent a good Return on Investment and accrue value by enhancing the business centre’s profile. As coworking space in Kolkata or shared offices in Andheri, Navi Mumbai, and Mumbai show, there’s a profitable asset in your business centre waiting to be exploited.