The Secret of Recovery – Cash is King
Effective cash management is ΓÇ£keyΓÇ¥ to the continued economic recovery according to an expert from financial firm Deloitte, placing business centres who offer serviced office space in a prime position to capitalise.
Speaking in the Birmingham Post today, Simon Adcock from Deloitte explained that ΓÇ£capital remained kingΓÇ¥ if the encouraging signs and faster than expected growth during the second quarter of 2010 were to continue.
ΓÇ£As we have seen from previous recessionsΓÇ¥ explained Adcock, ΓÇ£more businesses fail during the recovery as they do during the recession itself, usually because the weaker businesses struggle to fund growth or restructuring costs at a time when their competitors have started to recover and are benefiting from the upturn.
ΓÇ£There may be encouraging signs that we are starting to come out of the recession, with official data from the Office for National Statistics showing the economy grew by a faster-than-expected 1.1 per cent during the second quarter of the year, but now is a critical time for businesses.ΓÇ¥
One of the biggest fixed costs to businesses ΓÇô and certainly one of the least flexible ΓÇô can be the rental and upkeep of workspace and office space. In the wake of the economic downturn a growing number of businesses would appear to be looking to the UKΓÇÖs serviced offices as a way of effectively managing such costs.
ΓÇ£Too often businessesΓÇÖ first port of call when they require additional funding is their bankΓÇ¥ continued Adcock, explaining that ΓÇ£their first action should actually be to look within their balance sheet for cash generation opportunitiesΓÇ¥
Available on a monthly basis, serviced office space provides businesses with a plug-and-play office at a fixed coat that includes rent, rates and a variety of services ΓÇô ideal for ensuring that vital funds are not trapped in unused or redundant property and allowing businesses to streamline this costly area of their business.
Given the comments made by the man from Deloitte, it is perhaps unsurprising that the UKΓÇÖs largest broker of serviced office space, officebroker.com, has reported a continued rise in the number of businesses it has successfully placed in serviced offices year-on-year ΓÇô details of which can be explored through the brokerΓÇÖs Serviced Office Review series.
Not only do serviced offices provide the perfect opportunity for effectively managing the cost of property and workspace, but also provide businesses with the opportunity to expand or indeed decrease the size of space taken in response to business needs ΓÇô providing an unrivalled level of flexibility that could prove effective in addressing the issues highlighted in AdcockΓÇÖs commentary.
You can learn more about serviced office space by reading our What is Serviced Office Space article.