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Home Press

Cost Trumps Location For Entrepreneurs’ First Workspace

byAllwork.Space - Press
January 18, 2018
in Press
Reading Time: 4 mins read
A A
tim gouw featured

When choosing a workplace, entrepreneurs ranked office cost as the #1 deciding factor

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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:

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Office Priorities % Of Entrepreneurs Who Rank An Aspect As Important
Cost 55.8%
Location and transport links 36.8%
IT Infrastructure (broadband speed, phone signal) 22.6%
Flexibility to grow 21.9%
Amenities 13.3%
The community of businesses around you 12.4%
Technology (meeting room booking, app to meet other tenants) 9.7%
Style and design 9.3%
Business advice / support 5.5%

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:

Low Cost Locations Across The UK Average Costs Per Month Per Desk
Manchester ÂŁ200-ÂŁ500
Birmingham ÂŁ200 – ÂŁ400
Leeds ÂŁ175 – ÂŁ350
Bristol ÂŁ200 – ÂŁ400

 

Low Cost Locations Across London Average Costs Per Month Per Desk
Angel ÂŁ400 – ÂŁ650
London Fields / Hackney ÂŁ350 – ÂŁ600
Vauxhall ÂŁ350 – ÂŁ550
Clerkenwell ÂŁ400 – ÂŁ700

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.

Click here to see the Workthere guide for entrepreneurs in full.

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.”

*Research was conducted with 500 UK SME Entrepreneurs, through Censuswide research agency. SMEs are defined as businesses with fewer than 50 employees.

About Workthere

Workthere is a new venture by Savills introduced to help businesses find flexible, co-working and serviced office space. Combining an expert human touch with an online listing platform – workthere.com – Workthere is a completely free brokerage service for occupiers and covers the entire flexible work space market including more specialist space such as laboratories. The concept was formed by Cal Lee, a former graduate and development surveyor at Savills, who saw the opportunity to offer a new platform in a growing market for co-working and flexible work space providers to market their space.

Allwork.Space - Press

Allwork.Space - Press

Allwork.Space is committed to sharing news, updates and developments from flexible workspace owners, operators and suppliers across the globe.

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