Office Space Advice
Regus Offers Weapons, Strategies to Battle Recession
Published April 14th, 2009 by Jennifer LeClaire
The Regus Group is committing to help companies battle a down economy. The global serviced office company is arming businesses large and small with the tools it believes they need to survive and thrive through the recession. The main weapon Regus is offering: flexibility in officing.
Regus says companies can leverage flexibility to drive down costs and keep their businesses viable during a turbulent period. According to Regus Group CEO Mark Dixon, one area weighing companies down is the obsolete workplace model many businesses have embraced.
“Volatility is the only constant we can be sure of during this financial crisis. The way to manage through the uncertainty is by being as flexible as possible, in all aspects of your business,” Dixon says. “Bricks and mortar burden a company with unnecessary fixed expenses and risk. Adopting a flexible workplace strategy reduces facilities costs by up to 60 percent, enables new market exploration and allows a business to match their workplace with their business requirements.”
Strategy 1: Explore New Markets
In addition to the flexibility weapon, Regus is offering two clear strategies for wading through murky economic waters: exploring new markets and aligning your business with your workplace needs. When opportunity dries up in your current market Regus says, it’s time to explore new markets.
“With business evaporating in core markets, companies must go after growth opportunities in new cities – generating revenue by increasing the number of markets where they can reach additional customers,” says Dixon. “Our customers are exploring markets right next door and across the globe. As a result, we are growing our network in response to their demand for business ready, cost-effective places to work with flexible terms.”
Regus points to Birch Worldwide, a provider of services and support for technology firms headquartered in the United Kingdom, as one example of a company that’s exploring new markets with a little help from Regus. When Birch Worldwide realized the U.S. presented an opportunity to grow its business, the company looked to Regus to facilitate its market test.
For its first U.S. office, Birch needed a location that would provide easy access to technology businesses in the Bay Area. After an intense site selection exercise, Birch chose a Regus facility in Petaluma, California for two reasons.
First, the Regus serviced office model allowed the company to launch its operations cost-effectively and quickly because the office phone lines, Internet and office support staff was ready and waiting. Second, Birch could leverage Regus’ flexible rental terms to test the market. If business really takes off in Petaluma, Birch can quickly assume more serviced office space at the facility. If business is slower than expected, the company is not be bound to a long-term lease like it would be with traditional office space.
Strategy 2: Aligning Business and Workplace Needs
Regus’ second strategy calls for companies to align their business needs with their workplace needs. “Today’s business leaders need to have a workplace that is flexible and as dynamic as their business,” Dixon says. “By updating their workplace strategy, companies will reduce overall facilities expenses and will be in a stronger position for success.”
That’s just what Avalon’s Entrepreneur Center, a Columbus, Ohio-based business coaching and training firm, did. Tammy Murphy, CEO of the company, uses Regus meeting rooms across Columbus to accommodate a widespread client base without paying for traditional office space. Murphy subscribes to Regus’ Businessworld membership program, which offers mobile workers access to private offices, meeting rooms and business lounges on an as-needed basis. Members can work from 1,000 worldwide locations and access services on-demand.
“I work with clients all over Columbus and the surrounding areas,” Murphy says. “If I chose to rent an office on the northside only, some clients would have to travel 45 minutes. If I chose an office on the eastside, I’d have the same issue with my clients who work and live north. With Regus, I simply schedule my office days according to which clients I am meeting during the week.”
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Melanie Jones April 15th, 2009 at 4:52 am
Regus is really milking this recession message for all its worth. If it wasn’t true, I’d call it opportunistic. But the truth is the executive office suites industry is right on time for this economy. The industry should thank Regus for communicating the positive story around serviced office space. It’s good for everybody.
Bill Brookshire April 15th, 2009 at 4:53 am
These real-world examples of companies using serviced office space are encouraging. It’s easy for Regus to get up there and toot its own horn, so to speak, but to have these examples of companies speaking on behalf of the value of executive office suite rentals… that adds credibility and demonstrates to other companies the possibilities.
Marcus Hester April 15th, 2009 at 8:41 am
Using a serviced office to test the expansion waters is a brilliant idea. Some would even be more shy in this economy, opting for a virtual office instead. Either way, it does take the risk out of the equation, at least much of it.
Rob Zeus April 15th, 2009 at 8:43 am
The concept of having meeting rooms available across a wide region where you do business certainly is attractive at some level. But couldn’t you just meet at your client’s office? Why do you need your own meeting room? I guess maybe it’s the factor of making a good impression, but even still the client would know you are just renting an office space or meeting room.
Maggie Correta April 16th, 2009 at 7:40 am
Regus is really nailing the traditional office space brokers in this release with statements like, “Bricks and mortar burden a company with unnecessary fixed expenses and risk.” I think the problem is some companies would love to move into executive office suites but are already locked into leases. So I wonder if we’ll see an exodus to serviced offices in a few years when leases run out?
Then the question is, can the executive office suites industry really accommodate a large number of large companies? Is the model sustainable at that level? What would have to change?