The ROI of having a prestigious address.
Of all businesses, small or big, there is an inherent desire to own office space at a prestigious address. Why? A prestigious address boosts the chances of serving existing customers and to convert prospects into new business.
But, there is a catch. All businesses may not be able to buy or rent office space at prominent locations. The prime reason, premium cost of buying or renting, higher maintenance costs, and recurring expenses that are more compared to non-premium business areas. Besides, space management is an ongoing issue that most businesses go through.
Leading businesses; however, do enjoy the leisure of having offices or business stores at some of the most prestigious addresses in metros and urban cities across India. Office at a prestigious address can go beyond providing workspace to employees only if companies understand how it affects their bottom line, revenue, time, branding, and productivity of employees.
With the hope of expanding the business, increasing turnover and profit, most companies invest heavily in buying or renting office space at a premium address. A majority of enterprises succeed, while many fail to go beyond the break-even point.
What is the solution and what should companies do at this juncture?
Should they down shutters and shift elsewhere? No. If businesses have settled, and serve a good customer base, they should drop the idea of shifting to some other location and work on calculating the ROI (return on investment) of having a prestigious address.
Here is how businesses can measure ROI.
Reflecting the company’s culture: Design the work space to improve sales and foster creativity and innovation. The objective of the workplace design must match the company’s strategy and culture. It should evolve to meet the challenges of the new ways of working.
Reducing waste: Companies need to maintain equipment, pay rent or maintenance expenses, energy charges; hence, they should look out for opportunities to minimize the impact of these costs. Use space management tools to identify unused space and put it to better use. With a sustainable office design, businesses can reduce energy costs significantly.
Driving productivity: The relationship between office design and productivity is quite deep and influences the way businesses function. Companies can promote creativity and wellness by introducing natural light to the office space. Natural light has been linked to a higher cognitive function among employees. It can also drive productivity and sense of freedom.
Recruitment: Recruitment cost eats-up major portion of a company’s budget and hiring the best employees among many is a tough task. The new generation is looking for jobs that offer flexibility, a strong culture which aligns with their personal values. Thus, companies should focus on recruiting candidates who match their corporate hierarchy and office environment.
Besides the above important points, there are other elements such as maintenance of furniture and fixtures, electronic gadgets, mandatory bills that impact ROI. For businesses with prestigious addresses, an office is a valuable resource to attract and retain clients. They should view their work space as a vital asset and focus on the cost-efficiency of the premises and concentrate on the value it can produce.
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