No matter what kind of business you’re running, office space is essential. There are plenty of requirements that these places need to fulfill. However, size doesn’t have to be one of them. And if this is the case with your office, moving to a smaller space might be a good idea. On the other hand, there will always be both pros and cons of downsizing your office space. So, today, we’ll try to list them all out.
How we see it, it’s vital to feel pleasant in your own office space. You’re spending lots of hours every day there. And you can utilize your full potential only if you like being there. On top of that, the appearance of your premises says a lot about your business. So, not only should you feel good in your office, but also your clients.
Downsizing will bring lots of new opportunities. You’ll get a chance to remodel, save money, and improve your business. However, there are also some bad sides to it. Let’s dive into these and find out you should do it or not.
One of the biggest benefits of moving to a smaller office is that you’ll lower your overhead expenses. And if besides the office you move the warehouse as well, you can save a lot of money. There are, of course, few factors that influence these costs.
Your heating, cooling, and lighting bills will go down, and so will your insurance. Now, if you decide to stay in the same neighborhood, you can expect your rent or mortgage to go down as well. However, if you move to a better area, you’ll still pay less, and you’ll get a nicer location.
Lower bills are a big factor when you look at the pros and cons of downsizing your office space.
More capital to work with
If you spend less money on bills, you have more of it to spend on your company. That’s clear. But, if the building you’re in now is yours, you can sell it, rent new space, and spend that cash on improvements. You might be able to do that expansion you always dreamt about, or maybe you can use it to reduce your debt.
Whatever the reason your might have, think about how it will work for you long-term. If it would be beneficial, go for it by all means. The instant flow of cash is a significant boost for any company. But, you need to be wise and spend that money where you should.
For instance, make sure not to cheap out on the moving process. You want your employees to pick up where they were as soon as possible. And for that, you’ll need to move your business office without complications. Luckily, a clean and simple process is possible with good preparation and the right help. So, to use the move to your advantage, plan every detail of it.
Economic development assistance
There are lots of towns and cities that seek for companies to move to their areas. And if you do most of your business online, and it doesn’t matter to you where your business physically is, you can score here big time. There might be incentives you don’t know about. And if they’re good, they can spin your business 180 degrees.
We’re talking tax credits, free worker training programs, reduced utilities, or even free space. So, be sure to contact local economic development authorities before you start your move.
Improving your operations
There’s a reason why we conclude the first part of our list of the pros and cons of downsizing your office space with this one. If you’re moving your office, there’s a good chance that you can improve your operations.
Think about it this way. If you’re a retailer, you can move closer to your customers. You’ll make it easier for them to get to you, and you’ll reach new people at the same time. On the other hand, your company might be all about working online, so you don’t see any benefits from this. If that’s the case, downsizing is a great time to consider a remote work model for your business. It’ll save you lots of money both short and long term.
If you improve your operations, your workers will be happier, and your business will run smoother.
Planning and planning
If you want to do everything properly, you’ll have plenty of things to plan. You need to make sure you’re on time and within the budget, and sometimes, that’s not the easiest thing to do. It takes so much time and resources that it’s essentially a full-time job. And that’s why most companies appoint one person to manage the whole process.
Of course, working with a professional moving company will take some pressure off your back. But you’re the one who will have to figure out what to do with all the old furniture, buying new things, and arranging them in the new office.
Disturbance for workers
Some of your employees will like the change more than others, so you should discuss the move with key staff members. Maybe you’ll need to make some exceptions or think of alternative arrangements for some of your workers. However, we’re not saying that you’ll struggle for sure.
Start dealing with these as soon as possible. The sooner you begin, the more time you’ll have to make a plan. And if you play your cards right, you can make the whole thing barely noticeable. Try not to make the process rushed. It should feel relaxed and easygoing. Both your and your employees will like it much more that way.
Not all your employees will love the idea of the move.
New furniture and technology
Since you’re moving into a smaller space, your old furniture probably won’t work for you. And on top of that, your new building might not have all the IT infrastructure you need.
Regarding the first problem, if you know all about the importance of self-storage in today’s business world, you don’t have to worry about this. You can store it there and sell it piece by piece. With time, you’ll make your money back, and you’ll be all good. On the other hand, the second thing can be a puzzle. In our experience, it pays out to spend money on digital infrastructure. It’s a way of future-proofing your business, and that’s always a smart thing to do.
Conclusion As you can see, there are many pros and cons of downsizing your office space you need to think about. Before you do it, you need to be sure that it’s a good thing long-term. And if things line up, you can walk out with more money and a bigger company, no matter you’re in a smaller office. So, if it makes sense to you, there’s no reason you shouldn’t proceed.