Ramona Predescu (Spaces): After the people, real estate is the second big cost for a company

Newsroom 31/07/2019 | 08:19

Romanian businesspeople (28 percent) are less willing to have their capital blocked in long-term contracts related to property and technology, compared to the global average (41 percent). Over 60 percent of respondents to a recent IWG Flexible Working Survey admitted that they were taking into consideration leaving their current office in favour of a flexible, subscription-based office, to redirect more capital to business growth initiatives.

Each company has monthly fixed costs which, in many cases, are not proportional with the volume or the value of their monthly sales. 

CALCULATE YOUR RENT-TO-REVENUE FORMULA. HOW MUCH SHOULD YOU SPEND ON YOUR OFFICE?

There is an easy formula to calculate the rent-to-revenue ratio, also referred to as the occupancy cost. Calculating the percentage is simple enough: divide your annual rent by your anticipated revenue. There’s no fixed rule for what percentage of business income your rent should be. Different industries set different standards – anywhere from 2 to 20 percent. If your income fluctuates wildly or you’re not sure of your projections, it may be wise to be cautious. It also pays to think about what happens if things go wrong, like your biggest client suddenly jumping ship.

HOW FLEXIBLE WORKSPACE SOLUTIONS LIFT THE FINANCIAL BURDEN OF A FIXED SPACE AND OPTIMIZE COSTS

“There is an increased interest in “on demand” and that is normal, given the change in workspace. For generations people have been used to a fixed work schedule – spending 8 hours at the same desk. But an increasing number of companies are adopting a different work model which brings benefits to both employers and employees, a reason why companies are revising their real estate portfolios. We have entered the age of mobile and flexible workforce and this phenomenon represents a major change not only for Romania, but at a global level as well. The concept of flexible work will become the new normal very soon,” explains Ramona Predescu, Spaces Romania Country Manager. Over 90 percent of the Romanian managers interviewed in the IWG Flexible Working Survey believe that using flexible offices would bring significant savings for the company, and that the use of flexible offices would decrease by up to 10 percent the annual spending on space management (81 percent) – management, equipment, maintenance costs – and expenses related to unused space (40 percent).

If you want to set up your company or move your company into a new office, flexible working company Spaces helps you avoid arrangement costs and capital investment, enhances the space setup speed and minimizes the “business downtime” period related to such activities. 

Cost cuts also come from the fact that the monthly price you pay already includes IT infrastructure and services costs, as well as the resources needed to equip and arrange the new space.

“The main purpose of a business is to be productive, and the characteristics of a ‘productive’ workspace, according to respondents in Romania, are given by an inspirational design for employees and customers (72 percent), high-speed internet (57 percent), a generous number of meeting rooms (40 percent) and access to means of transportation (34 [percent). At Spaces we have all these covered, at no extra cost,” adds Ramona Predescu. 

Spaces is part of International Workspace Group, a multinational corporation known for creating the “workspace revolution” concept, which helps over 2.5 million global businesspeople work more productively by providing access to inspiring workspaces that support collaboration and community creation.

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