Serviced offices are a great way for an emerging small business to get professional looking concessions that will help them compete with the larger firms. They're also good for people who may only require an office for a short period of time (a political campaign, or a music event for example).
This is because they offer everything one would expect from a traditional office, with very little outlay required, and can often be rented short notice.
It may be that you own a home based business that has increased its trade substantially in recent months, this may mean that you need to take on employees. You can not really have employees working inside your home, and it does not present a very professional image to your clients. So serviced offices are a great way to really get started in business.
A lot of small businesses make mistakes when they expand. Which leads to what was once a successful business folding. One of the largest mistakes emerging firms make is assuming they need to purchase assets in the form of property. This is an unnecessary bury to place on a business. You may be doing very well now, but will you be doing well when your overheads increase massively? As well as taking on new staff, you will have to pay a large amount of money for a building which you may be paying for with a commercial mortgage. Then, for that promises you have purchased, you will have to fully fit all of the equipment you will need.
Office equipment can be very expensive, and you will also need to consider office fittings. A building which you have purchased for your business may be in need of renovation, this can sometimes be almost as costly as the building itself.
Serviced offices often come fully fitted, not just with all the office equipment you could ever need, but they are designed to be ready to move into straight away. All of the work on the building is already done beforehand. This means that there's no possibility of renovation costs spiraling out of control. This will help you plan your budget much better and allow you to easily decide whether or not you can actually afford the office.
Another great aspect of serviced offices is that they are often on very flexible contracts. As mentioned earlier, developing businesses often hit off more than they can chew. If expanding too quickly is a mistake, which may send the business under, it can be far easier to quickly downsize your business if you are renting a serviced office. You will not have to sell off all of your equipment at short notice to survive, because you are renting most of that equipment. You are also likely to be in a far more flexible lease if renting a serviced office. These serviced offices are designed to be owned and left at short notice, so there's often no punitive action taken for those who can no longer afford them.
Of course buying your own business premiums in the long run will leave you with an asset you can sell at a later date, so it's still a good idea to buy if you can really afford it. But for those emerging businesses needing their very first office, serviced offices make a lot more sense.