4 Common Challenges Faced by SMEs While Choosing Office Space
Small and Medium Enterprises (SMEs) have always been a great support for Indian economy. In a developing country like India, SMEs are considered to be a magic bullet for capital woes like poverty, unemployment and regional imbalances. In fact, the SMEs have increased the competitiveness of Indian economy to a great extent. But what we need to understand is that, they are facing certain challenges with respect to their operations and growth. Most important among all the challenges is the difficulty in finding an office space, which is making them tedious.
Here are a few challenges that SMEs face with regards to office space:
1. High Rentals: When you are starting a new business or setting up an existing business in a dedicated office space, first thing that bothers you is the high leasing or rent for commercial spaces. SME’s will have to take each and every step carefully as they can’t afford office spaces with high rentals. It just burns your pocket while also setting your business back if you make a wrong move, because office space requires a huge investment that sometimes it becomes really hard to get back to the normal pace.
2. Lease Terms: Not everything is done once you find an office space; the hitch starts showing when the time comes for you to sign the agreement. Yes, the inflexible lease terms. Generally, the minimum lease term for an office space would be three to five years, but what if you want to move out of the space before the mentioned lease term? This would be the case if you unwillingly choose an unfurnished office space. However, it wouldn’t be a problem if you are sure that you don’t want to move anywhere till the lease term gets completed.
3. Resources: If the office space is unfurnished, there starts yet another problem. Other than rentals and security deposits, you’ll also have to invest a huge amount on furnishing the office space to make it ready-to-use. It includes the furniture, workstations, dividers, cabins, infrastructure, phone lines, internet connection, light settings and other interior alterations.
4. Inappropriate Locations: In order to save on high rentals and other location-related expenses, most of SMEs end up choosing the space in an inappropriate location (remote location or the one that doesn’t suit their business). Few companies also prefer unfurnished office spaces to lower their initial investment. But they need to understand that an enterprise should be in a decent location where there are few commercial spaces around.
One common solution for all the problems stated above is a fully furnished office space. A fully furnished office space ensures all the services to SMEs without them having to pay additional charges. The only thing to be bothered with furnished office space is the rent; but if you find an experienced commercial real estate agent who can help you find an office space that suits your budget, you can save huge amounts on your investment. Also, you don’t even have to think about the lease terms if everything is fine with the space, and that is the greatest benefit of a fully furnished office space.