Renting office space in London as a small business can seem daunting, but it may be an essential step for your future growth. It is crucial to determine how your company is going to use the workspace and what type is right for you. There are various options available, meaning it is important to get the right support throughout the process.
We have worked with many small companies and can help guide you throughout, ensuring you to secure the best office space for your current needs, whilst allowing room for your company to grow as it establishes a presence in London.
Step 1: Determine Your Business Needs and Budget
The best place to start for any small company is to understand what you need from an office space and how you plan to use it. You should determine the number of people and desks you need to accommodate now, while considering how this may change over the next 6 to 12 months. We’ve found that many small teams grow faster than they expect, so prioritising flexibility is key.
Small businesses often have limited budgets, meaning their options can be more restricted. Carefully comparing offices increases the likelihood of finding one that meets your needs without exceeding what you can afford.
Step 2: Decide What Amenities and Building Features You Need
Prioritising certain amenities and building features can be helpful when managing a tight budget. Here are the key features that small companies often choose:
• Meeting rooms - Breakout spaces double up as a place for downtime and informal collaboration, so a dedicated meeting room may not be required. This helps to reduce costs and the amount of space needed.
• Natural light - Natural light can boost wellbeing by creating a more inviting workspace for employees. Ample natural light can also make smaller office spaces feel bigger and more open.
• Temperature control - Air conditioning or heating can help maintain a comfortable environment, especially in smaller offices.
• Soundproofing – When sharing a coworking space with other organisations, companies should check for soundproofing features or phone booths, which offer privacy and can reduce distractions.
• 24-hour access – Startup teams and small business owners often work longer hours during the earlier stages, as there are fewer staff members to share the workload. Therefore, 24-hour access can help support flexible schedules.
Step 3: Choose the Right Type of Office Space
By understanding what the monthly rental cost includes, you can establish a more realistic budget and determine which type of workspace is the most suitable.
• Serviced Offices – In our experience, we find that serviced offices are typically the best option for small companies. They are generally available immediately and are offered on short-term, flexible contracts, allowing you to scale up as your business grows.
Serviced offices are usually fully furnished, with internet and utilities included in an all-inclusive monthly price. This makes it easier for small businesses to manage finances, minimising the likelihood of getting caught out by additional costs.
• Coworking Spaces – This can be a great option for startups or smaller teams who are not ready to commit to a private office. Desks are available to rent on rolling monthly contracts, supporting growing companies and hybrid working.
Coworking spaces offer networking opportunities, but lack privacy, so they may not suit all types of business.
• Managed Offices – Managed offices may suit established small businesses, as they allow for more customisation without requiring the same time, cost and commitment as a traditional office.
• Traditional Leases - These are less common for smaller organisations as they are generally aimed at companies looking to rent office space on a much longer lease term.
Step 4: Decide on a Location for your London Workspace
When deciding on a location, small businesses need to strike a balance between cost, convenience and reputation.
Areas in Central London like Mayfair, Soho and Shoreditch are popular choices for small companies as they offer excellent transport links and better networking opportunities. However, they often come at a higher cost than other areas.
Mayfair is best suited to organisations in finance, legal and professional services, as a prestigious business address can help attract higher-value clients and improve credibility. Soho’s vibrant atmosphere is ideal for those in the creative and media industries, while Shoreditch is often considered a hub for tech and startup companies.
In comparison, places like Camden, Old Street and Hammersmith often have more affordable options, whilst still providing access to transport connections across London.
In our experience, choosing a location that will help you attract and retain employees is just as important as impressing clients. You can also compare London office prices to ensure you decide on the right location for your budget.
Step 5: Begin Your Search and Create a Shortlist
Finding an office space as a small business can be overwhelming, so working with a broker like FreeOfficeFinder can help to simplify the process. Not only can we save you time, but we also have access to a broader range of serviced offices in London than what can be found online.
We will help you narrow down your options based on your budget, plans for growth, and must-have features. Most small businesses create a shortlist of around three to five office spaces before arranging viewings.
Step 6: Organise Viewings
After creating a shortlist, the next step is to begin viewing the spaces. For small businesses relocating to London, virtual viewings can be a great place to start, as they help to save time and travel costs.
However, we always recommend viewing a workspace in person before committing. For small firms, it is essential to consider whether the office is the right size to accommodate your team, while allowing room for growth. You can also ask questions about shared facilities and get a feel for the surrounding area, including noise levels and local amenities.
Step 7: Negotiate Terms and Finalise an Agreement
After finding the right office space, it’s time to agree on terms and finalise an agreement. Brokers can help with negotiations, helping you to secure the space at the best possible price. We can also negotiate discounts, rent-free periods and added extras which can help small companies with limited budgets.
We’ve noticed that landlords tend to value smaller businesses because they can fill gaps in workspaces quickly and may stay longer than expected.
Step 8: Move Into Your London Office Space
The move-in process is typically much quicker for serviced offices and coworking spaces. This is because they are often set up and ready to go, allowing companies to move in and start working straight away. This is particularly useful for smaller companies that are relocating, as everything is sorted for them before moving in.
Moving into a managed office often takes longer because it takes additional time to customise a space. However, traditional leases can take significantly longer because they require the company to organise a full office fit out.
Renting a workspace in London as a small business can be made easier by focusing on your current needs, building in flexibility and working with brokers.
At FreeOfficeFinder, our team of experts can help small companies find a serviced or coworking office space within your budget, whilst allowing you to grow as you establish a presence in London.
