Companies of every size and industry are currently being faced with the challenge of how to survive the global economic crisis. Many observers believe the companies who maintain their core business objectives throughout the downturn will reap the benefits of being perfectly placed to make a fast recovery. Making major strategic turns or significant cutbacks could potentially do more harm than good, especially if the recovery begins quicker than expected as some observers are now predicting.
While some companies are reverting to reducing staff numbers and slashing expenditure, there are an increasing number of companies looking for smarter ways to manage the tougher times. The Servcorp International Business Cost Cutting survey has found that more than one in four companies globally are looking to manage their office and IT costs more effectively. Office costs have always been a large expenditure for any business and when times are good, companies tend to make quick decisions and overlook the underlying issues. Now that companies are being forced to tighten their belts, managers are having to reassess what is being spent on office premises and inevitably look for more cost effective solutions.
Office premises and office management are often big ticket items on the balance sheet which need to be re-evaluated in the tougher times. Some companies are avoiding staff redundancies by trying to be smarter about their overheads. Managers and business owners have totally under-estimated the costs of setting up a stand alone office in a traditional office building. There are lots more cost-effective options now available and it’s just a matter of finding the right solution for each business.
Surprisingly, the most commonly overlooked costs are the ones that help the office function but you don’t necessarily see on a day-to-day basis: office costs like stationery, leasing bonds, air conditioning, cleaning, tea, coffee, desks, printers and fridges. Its only when managers take a closer look at all these costs do they often realize how much their own office is costing them.
It’s all about cash flow and companies are starting to look at ways to survive the back end of the economic downturn and how to position themselves for a successful recovery. In many countries, lots of foreign companies are competing with the local players, and it will be the ambitious ones who have ensured they have money in the bank to take off quickly that will be the winners. A serviced office product really helps companies do this, by offering a CBD location with all the professional services, infrastructure and support without having the upfront and ongoing capital costs required to set up alone.
It’s a really interesting time for companies looking to expand if they can use the tools and services available to help them be successful. Economic commentators have been urging companies to be careful with cash management for the last six months, but now we are starting to hear talk of opportunity management. Virtual Office products are really well placed to help business people all over the world expand into a new market in a really risk-adverse way. In just a matter of minutes a customer in Perth, Paris or Penang can sign up for a virtual office in China on our website. Instantaneously, they will have a phone number answered by a local receptionist in their company name, a prime CBD address and a place to meet clients when they are in town. A virtual office is a great way to test out a market, yet keep your costs, commitments and overheads very, very low.
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