Running a business comes with high costs. The best way to know that you are doing enough is to make sure that you are earning more than what you are spending to make it work. One of the biggest expenditures that a business has is its occupancy cost since most offices have to pay rent for their space. Though it is one of the biggest areas you spend money on, it can also be the most versatile since there are strategies you can cut back and save money. There are 5 effective ways you can control your office occupancy cost.
1. Find Cheaper and Long-term Leases
One of the best ways to save on occupancy costs is to find an office space that directly helps you save money. Ultimately, finding a space with a lower price can do great for your spendings. The first way is to find a location where office spaces are relatively cheaper because some areas demand more expensive prices. If your team can afford to be in an office far from the central business district, then it is a better alternative. You can also look into leasing for the long-term because the security of the lease outweighs short-term income. You already have a chance to move away from city noise and toxicity while staying economically wiser. If you need help finding the right space at the right price, that is what we do. Contact us today!
2. Subletting Office Areas
Owning a large space where your employees can have a conducive work area is a great thing to have, though it comes with a great price as well. The cost of rent is always determined by the size of the space, so that means a bigger officer is also a bigger expense. Should your office have unused areas, you can put this up for occupancy by others via subletting. A lot of freelance workers or small groups of collaborative individuals are always looking for an office hub where they can meet and work. If your office can accommodate them, you can put the space up for rent where you can become their landlord. Just make sure there is nothing in your lease to keep you from being able to do it.
3. Team Effort
Team effort or the collaboration of various departments in your company can help in office cost savings. With a good workflow, office supplies and equipment are maximized, along with individual knowledge and skills, promoting productivity.
Employees can play a huge role in controlling occupancy costs. Though there is specific expertise that can give more useful and practical insight, not all companies can afford to hire full-time staff who will focus on this aspect. A great alternative is to hire a part-time CFO who can perform financial assessments and recommend necessary steps to help you cut back on occupancy costs. Employing one is handier since you can engage their services whenever you need them, and you don’t have to fully commit since their employment with you is only part-time. Experts can do great things to improve not only your budgeting but your overall financial standing as well.
4. Flexible Working Arrangements
This time of the internet and technology makes all sorts of working arrangements possible. Flexible working arrangements make it possible for employees to skip reporting to the office and instead work from home. It is an “Agile Workplace.” The first step in doing this is in assessing which positions can be filled by a work-from-home employee. You can also make a blocking schedule where some employees work from home and the others at the office for a few days they switch. You can reduce the needed space almost in half since not everyone shows up together at the same time. This can work for businesses where the nature of work and be accomplished via individualized work and communication can be made virtual. Not only is this beneficial for employees, but it also allows the company to switch to a smaller office.
If you decide to adopt a remote working environment for some of your employees, make sure that you have a way to monitor their output and performance. Fortunately, time and work management apps are available to gather sufficient data and track the completion of assigned tasks. Choose a system with the right features you need, such as taking screenshots of computer screens to clearly see if they’re working on a task in their working hours.
5. An Energy-Efficient Office
Energy-efficient office space is also great for the environment. Switch to devices, electronics, and supplies that are energy-saving in the office since you can use the money you have saved to pay for the occupancy cost instead. Office spaces that are polished with these energy-efficient devices tend to lease the space for cheaper prices as well since they don’t have to spend as much in buying expensive appliances and features. Make it a commitment not just to control your occupancy cost, but the overall spendings you make on other miscellaneous expenses as well.
For an energy-efficient office, you might want to consider installing solar panels and take advantage of solar energy plans from a reputable energy provider, such as TXU Energy. This way, you’ll have long-term savings on energy bills. If you’re not ready to adopt solar energy, you can use this energy source as a backup if a power outage arises.
Make your office energy-efficient by ensuring that your employees are well-informed about your ‘green’ methods. Enforce energy-efficient measures from simply unplugging office equipment or devices not in use and turn off all the lights at end of a shift or business hours.
Controlling office occupancy does not only mean saving money, but it also gives way to a more economical way of running a business. This favors both employees and business owners since there is room for flexibility and saving the environment. If most agree on the measures you want to impose, you can take the necessary action to improve your financial and working situation.