In today’s business landscape, companies are facing more uncertainty than ever before. Competition is fierce, and technology is rapidly accelerating the business cycle. From the lens of our platform in commercial property, the team behind GetSpaces has witnessed firsthand how our local Singaporeans businesses have adapted to this new reality. While the COVID-19 pandemic has presented unprecedented challenges, it has also created opportunities for businesses to grow and innovate.
Through our platform, we have had the valuable opportunity to witness how different businesses of all fields have adapted to deal with the changing landscape. In this article, we will share three key observations on how businesses with us have navigated through these uncertain times.
Observation 1: Agility and Adaptability are Crucial to Success
To remain competitive in today’s ever-changing business landscape, companies need to be agile and adaptable. This means that businesses need to be able to test new markets and initiatives quickly and with as low a cost as possible. Through GetSpaces, we have seen many businesses do this in different ways. For example:
- A tuition center based in the the east renting an hourly space in the west to test the customer base for their classes in the west
- E-commerce businesses doing 1-2 days popups to test out physical retail concepts instead of a long-term rental
- New businesses starting off with flexible office leases on a 1-6 months basis instead of committing to standard 2 or 3 years leases before scaling up or down accordingly
In these cases, businesses were able to experiment with new product lines, test new markets or scale their operations without the financial risk of signing long-term leases. We observed that businesses on our platform were able to adjust their space requirements as they chose to grow or downsize their operations.
Observation 2: Flexible Overheads Can Help Reduce Financial Burden
It is important to not only consider the total cost of a commercial space but also the flexibility of the cost structure. Fixed costs over a long-term can be a significant burden on businesses, especially in times of uncertainty. Having a flexible cost structure allows businesses to scale their operations up or down as required, which can help to reduce costs during times of low revenue.
When renting a commercial property on your own, there are many hidden costs that are not noticed such as renovation costs, compliance (fire safety approvals), electrical licensing and even change of use approvals. These add up to a significant amount of upfront costs, and are usually only worth it if amortized over a long period of time. However, having to amortize the costs over a long period of time means that your business will be locked into a fixed setup for the time. In addition, there are other costs such as insurance, internet/utilities contracts that will become fixed long-term overheads in the business.
When deciding between an actual commercial lease and a service workspace provider, businesses must consider the overheads, upfront costs and long-term commitments. Along with that, having the increased utility of flexibility in cash flow can be beneficial for businesses.
Observation 3: Embrace Technology to Increase Competitiveness
The COVID-19 pandemic has accelerated the adoption of technology and digitalization in various industries. In the past year, many core functions of businesses have been increasingly digitized and can be handled purely remotely. For example, businesses can now set up their bank accounts virtually (Aspire, Airwallex), register a company and handle corporate secretarial and accounting services entirely online through companies like Svested or replace operational tasks with virtual platforms.
By leveraging the latest technologies and innovations, businesses can focus on their core competencies while outsourcing non-core functions to specialized service providers. This approach has helped many businesses stay competitive and thrive during these uncertain times.
The business landscape is changing rapidly, and businesses must be prepared to adapt and innovate to stay competitive. At GetSpaces, we are committed to providing flexible commercial space solutions that empower businesses to grow and succeed by truly accessing property on their very own terms. By providing businesses with the flexibility they need, we can help them to adapt and thrive in these challenging times.
List of services mentioned for for new businesses:
– Check out our flexible spaces here!
– Corporate Secretary Services (Svested, use code: GETSPACES20)