Business Operations

Give me some space

Executive Summary:

Everyone likes the thought of extra space at the workplace just in case it’s needed later on; but is it worth the added cost right now? Send your questions or comments to Mike@ OpXSolutionsllc.com For this issue focusing on real estate, I thought it might be a good time to address your “indoor real estate.” All that square footage you are using (or not using effectively) in your business.

We all love our space. We need elbow room, closet space, storage space, conference rooms, break rooms, and waiting rooms. But have you ever considered what that space is

BuSiNEss OPERATiONS

By Mike Leigh

costing you? Commercial office and retail space leasing rates can vary considerably depending on location and purpose. A good median estimate is about $20 per square foot per year. Now consider what you are doing with every square foot in your company. That extra office that is not being used? $2,000/year. Each conference room? About $5,000/year. All your filing cabinets and storage closets may be costing you hundreds more per year. Do you really need all that space?

Organizations waste thousands of dollars each year by not effectively utilizing their space. Sometimes a larger building is leased (or bought) for future growth that does not come about. Or maybe over the years, junk has accumulated that no one wants to toss.

Every square foot of your company’s space should have a purpose. And that purpose should contribute to a process that helps your company make money. When space gets tight, instead of thinking “We need more space!” you should be thinking “we need less stuff!”

If space is tight, look at all the areas “stuff” is stored. Do you need to keep it? Is there a more efficient way to store it? Can inventory be reduced through more effective tracking and procurement processes? Then look at workstations and office spaces. Can desks and other furniture be smaller, or removed? Can files be digitized, and file cabinets removed? Can some of your employees work from home to further reduce your office space needs? If there is one thing we learned from the COVID-19 pandemic is that some organizations can still operate effectively with remote workers.

Even if you currently have adequate space for your needs, it is important to review your layout and compress your operations if you can. That extra space left over can be used for growth, or even sub-leased out for additional

revenue. Always think of your organization’s space as an asset that when properly utilized will help you be more profitable.