News Category: Business Startups
An increasing number of UK small businesses are responding to the credit crunch by closing offices and making their staff work remotely from home. Worries over the future of the economy from already cash strapped businesses are forcing them to look for new ways to cut costs and save money. A recent survey by the mobile phone company O2, questioned over 500 small business owners and discovered that in the last 8 months, 10% have not renewed their lease on the current business premises. In addition, an amazing two thirds are considering giving up their business offices in favour of home working model instead. Unlike rising costs such as fuel and business taxes, remote tele-working is a quick win for many small businesses. It is one of the operating expenses which they can actually control and will help to counter the rising levels of business debt amongst small businesses.. It therefore comes as no surprise that of the amount of empty properties available for processes to lease on a short term basis has doubled in the last year. Simon Devonshire, head of business marketing at O2, which conducted the survey, said: "Getting rid of the office relieves many small businesses of a major overhead very quickly and shows a rapid response to current economic pressures."
Incredible improvements in broadband technology mean that virtual teams can be connected via video conferencing, e-mail, file sharing and of course the good old fashioned telephone. Staff on the move, can also access important business documents using wireless technology such as broadband 3G technology or publicly available WI-FI networks. These now have coverage at most major cities train stations, coffee shops and areas of high population density. This means that anyone with a laptop and or a mobile phone can be connected, at a relatively low and variable cost (compared to an expensive fixed commercial property lease cost). In addition, virtual offices and serviced offices such as Regus, provide a flexible pricing structure around pay as you use. This flexibility allows firms to forecast and budget future cashflow These solutions all long term lease costs to be eliminated while still being able to enjoy better communications technology than home based solutions.
The O2 report also highlighted the fact employees that worked form home had a minimal impact on their customer relationships. Scheduled group team meetings (via a teleconference), are becoming an increasing part of everyday working life - particularly for larger corporate businesses. Of course working from home is nothing new. Yet the sharp increase in this trend for small businesses is another sign of the concern and pessimism in the minds of their owners. Another survey by the Bank of Scotland revealed that entrepreneurs in the West Midlands are working almost 50 hours a week, while a another survey from Lloyds TSB Business Insurance, found 20% of businesses in the Midlands had not taken a single day off in the last year.
The sheer volume of small business owners working from home (or choosing to send staff home and work remotely) is also causing a change in the work ethic and behaviour of employees. Some feel more empowered to work more flexibly within hours that suits their lifestyle. In addition, the study found that over 30% found that working from home allowed them to be more productive without the day today distractions of an what office lifestyle. Working from home also removes the need to waste time/ cost of commuting to and from the office. However, others felt more isolated and have less contact with their team members, losing the social nature of work as part of a team.