For any business, location is a significant decision that requires a lot of thought. There are multiple factors to consider, including business prospects, cost, and convenience. As an ongoing consideration, a business's location requirements may continually change over time.
Regardless of whether your business is just starting or you've been operational for a while, you don't necessarily need to limit your headquarters in capital cities like Amsterdam, Paris and Brussels. With advanced technological developments, companies can run their operations without being limited to a particular area. This is entirely possible through satellite offices.
What is a satellite office?
A satellite office is described as a branch of a giant company that's physically separate from its primary office. Also called a branch office, these offices are usually smaller than a company's headquarters. They could potentially be located many miles away from primary operations.
Which types of businesses is this for?
There are many kinds of businesses that can benefit from exploring satellite offices. These include:
Businesses with limited space
As your company grows, so do your space requirements. When companies face this issue, they either assign rotating shifts or introduce remote work. However, not every company can manage this. Satellite offices can help since you won't need to uproot your organization to make more space while, at the same time, allowing you to grow your business.
Businesses seeking collaboration
Today, working with the competition isn't such a foreign concept anymore. Businesses understand that competition is intense and may benefit more from collaborating with another organization.
For such situations, satellite offices can help set up an environment that encourages different teams working together in a shared workspace, providing your business with a chance to grow and boost its operations.
Businesses exploring different ideas
For businesses looking to experiment, especially with new markets in various locations, satellite offices are a great idea. Expansion is a viable growth opportunity for any business, and taking advantage of satellite businesses can help ease the process. Your business can set up offices in different locations, regardless of whether this is local, regional, or global.
Businesses looking to reduce costs
You may be blessed with a significant budget, but every business needs to manage its costs. This is especially true for new companies that can't afford to expand to more prominent locations until they manage their expenses. Satellite offices provide an excellent opportunity by helping companies lower their costs without fretting over rental agreements and construction costs.
Businesses that want to boost customer experience
Companies located in the vicinity of their customers are better equipped to cater to their wants and needs. Through this, customers will have a better experience with the business, thereby providing significant growth opportunities.
Benefits of a satellite office
Now that we understand what kind of businesses can potentially look into a satellite office let's look at the different benefits it can lead to. The advantages of satellite businesses often include:
- Better recruitment: Many companies don't realize this, but satellite offices can serve as an essential aspect of your recruitment. An excellent talent pool prefers working in a prime location that's equipped with different amenities, such as a kitchen, a gym, and access to various places nearby. By setting up a satellite office in such an area, you can leave a positive impression that attracts the best talent, overall boosting your workforce's quality.
- Cost management: Not all employees of a business need to work in the same location. While some employees will need to work near your customer base, others that don't do such tasks can quickly work in a more affordable area.
- Better reputation: The location of your business can convey certain things to different stakeholders, including customers, investors, and industry partners. A shabby place will leave a wrong impression. In contrast, an office located in a premium area will immediately give your business the respect it demands. This is critical to your business's success as space where you'll hold essential meetings and host events.
Factors to consider
Of course, there are certain things you should keep in mind before jumping on the idea of getting a satellite office for your business. Here are a few factors you need to think about:
- Business goals: You need to determine where you see your business heading. If your business is the sort that demands a good location, then a satellite office is definitely worth considering. If not, you should prioritize what's more important.
- Location: Your primary motivation behind a satellite office may be to establish your footprint in a particular area. Even if the site isn't that important, you should explore different options such as various neighborhoods and their costs.
- Accessibility: How easily your employees will be able to reach your office plays a significant role. It directly impacts their productivity and overall job satisfaction, both of which contribute to employee retention. It would help if you considered which modes of transportation your employees mainly use and whether the office matches that. For instance, if most of your employees prefer cars, then public transport may not be a huge consideration. For employees that don't own cars, this matters greatly.
- Flexibility: This factor greatly depends on your company's current growth rate. If your company's growing rapidly, you should look out for flexible rental agreements instead of those that restrict you in the long run.
- Tech: When you're operating in multiple locations, you need superior technology to maintain your workforce's efficiency. The different teams need to communicate with each other effectively, and a reliable internet connection is essential for that. It would be best if you determined how much these tech requirements are costing your company and whether the satellite office can facilitate you in this area.
A satellite office is an excellent option for growing businesses and even those looking to expand in the near future. Like every business decision, you need to weigh out the pros and cons and what such a move would mean for your overall operations. In a post-COVID world, though, satellite offices facilitate social distancing and might just be what the world needs to resume operations in the office.