What type of office does my small-medium-sized business need

31 Jul 2023 | SME, Business Registration | 5 min read

With so many options available, how do you know what kind of office space is right for your small and medium-sized business (SMBs)? Should you opt for a traditional physical office, embrace the flexibility of remote work, or explore shared office spaces?

Whatever your preference, there is a diverse range of options in Singapore to suit your specific requirements.

When it comes to office rentals in Singapore, shared office spaces, also known as business centres, have become increasingly popular. These spaces provide flexible rental options, allowing SMBs to access fully equipped workstations, meeting rooms, and other facilities without the burden of a long-term lease.

One advantage of shared office spaces is their cost-effectiveness. By sharing resources with other businesses, you can significantly reduce overhead expenses. Additionally, many shared office spaces offer networking opportunities, fostering collaboration and potential partnerships with like-minded professionals. However, it is important to note that the rental costs for co-working spaces can be relatively high in the long run.

Renting a conventional office space involves outfitting the space with furniture, infrastructure, and utilities. While the setup process can be time-consuming, stable-growth companies with several employees find the long-term benefits worthwhile. Although initial capital costs are significant, monthly rental expenses are generally lower compared to serviced offices.

Advantages:

1. Customisable space and layout
2. Longer-term tenure with predictable rent increases
3. Wide range of locations and buildings
4. Lower ongoing running costs
5. Cost-effective for startups with minimal office needs

Disadvantages:

1. Minimum 2-year lease commitment
2. Substantial initial capital expenditure
3. Risk of leasing inadequate or excessive space
4. Responsibility for office infrastructure maintenance
5. Time-consuming search and arrangement process

Government-owned commercial buildings in Singapore, managed by the Jurong Town Corporation (JTC), provide options for businesses looking for an office or factory space. These premises offer stack-up factories, technopreneur centres, research hubs, industry clusters, and specialised parks to cater to various industry needs.

Advantages:

1. Supportive environments in incubators and research hubs foster collaboration and innovation.
   
2. A cost-effective renting solution compared to central locations.
3. Parks with an industry focus drive advancements in specific fields.
4. State-of-the-art facilities, infrastructure and tailored amenities.

Disadvantages:

1. Not centrally located or near high-profile areas.
2. Limited accessibility to transportation and business hubs.
3. May lack a well-known address for branding purposes.

With the rise of remote work and digital connectivity, virtual offices have become a popular choice for SMBs. A virtual office allows businesses to have a professional business address without the need for a physical space. It provides services such as mail handling, call forwarding, and access to meeting rooms on an as-needed basis.

Using a virtual office on a pay-as-you-use basis, with features such as a virtual receptionist, is a cost-effective option before committing to permanent office arrangements. Virtual offices suit entrepreneurs abroad needing a Singapore presence without local staff, home-based entrepreneurs requiring an official address, and startups in budget locations desiring a central or easily recognised address.

If frequent client meetings are necessary or the lack of face-to-face interaction causes communication problems, a virtual office may not be your best bet. However, virtual office tends to be budget-friendly with rentals ranging from S$50 to S$200 per month, depending on the location and services provided.

When deciding on the type of office for your business, consider the following factors:

• Budget: Assess your financial resources and determine how much you can allocate to office space. Shared office spaces and virtual offices generally offer cost savings compared to conventional offices.
• Business requirements: Evaluate your specific needs in terms of space, infrastructure, and facilities. If you require dedicated workstations or specialised equipment, conventional office space may be more suitable.
• Flexibility: Consider the flexibility you need in terms of lease terms and the ability to scale up or down. Shared office spaces and virtual offices often provide more flexibility than conventional offices.
• Business image: Think about the image you want to project to clients and partners. A professional physical office space may be more appropriate for certain industries, while others can thrive with a virtual presence.

In addition to considering the office space options available, it is important to explore modern communication solutions that can further enhance collaboration and productivity for your small business.

Singtel's Teams UC, for instance, offers a comprehensive suite of unified communication tools, including voice and video conferencing, instant messaging, and file sharing. It creates a centralised and secure environment for effective teamwork, regardless of physical location.