Is your business growing fast? Do you need an office that will grow with your company? Or perhaps you are planning to enter a new market? If you answered “yes” to any of these questions, follow Bitpanda’s lead and consider the “pay as you grow” model.
Office needed ASAP
Meet James. During the first lockdown in 2020, James initiated a social group where people offered to help walk dogs of neighbors under a mandatory quarantine. The group worked so well that James decided to turn it into an app called MyPet, which allows people to make vet appointments and order pet food.
Soon the idea proved to be very prosperous. So prosperous, in fact, that James hired four employees.
A year later, after securing money from an investor, James owns a company and hires 14 employees. MyPet is already present in over twenty cities across the country and has ambitious goals. James plans to hire ten more employees and prepares to enter a new market.
In the beginning, all of the work took place at James’ kitchen table. Sometimes he and his employees used a coworking space and meeting rooms on-demand, but soon they realized they needed a real office.
But… How do you search for office space today? And what does this fictional story of James have to do with Bitpanda?
The answer is the “pay as you grow” model.
Pay as you grow
Clearly, many fast growing companies face a challenge when it comes to searching for an office: how to find the space that will expand with the employment growth?
Let’s take another look at James and his company.
MyPet plans to lease space for 20 employees. However James knows that in the first months there will be 10 employees working in the office – the other 10 have yet to be hired.
MyPet signs an annual contract for 20 workstations. For the first six months of the contract, the company only pays the monthly cost for the workstations actually used. In the remaining six months – when the number of employees – it pays for the entire leased space (20 workstations).
Another model: James knows that in the first month there will be 10 people working in the office. The following month there will be 16, and in the following – 18. He can negotiate the contract as needed and the rent will increase every month, along with the company’s growth.
In both cases, James knows exactly how much he will pay each month. He has to assess his risk – if his team doesn’t expand, his costs will still go up. But the flexible path allows him to plan the hiring process and use the space effectively.
BitPanda case study
A few months ago, we helped to find an office space for Bitpanda. The company decided to establish a world-class Technology and Innovation Hub in Krakow, where they plan to employ a team of 300+.
They started with 30 desks. In this case, the “pay as you grow” model was a perfect match. The space we found – the Imperial building in Krakow, run by Rise – will grow with the company in the same location.
When looking for new office spaces, companies sometimes prefer traditional leases. They might want to experience the security of a long-term lease or fully customize the office space. There are industries that need an office that suits their specifications. Some value individual work or want a strong personal branding in their office space. A traditional office might be more suitable.
Compare your options
If you’re forecasting employment growth in your business or planning to enter a new market, it’s worth weighing the pros and cons of traditional and flexible spaces. What you should consider are such variables as the employment plan and the size of the team.
The market offers a variety of solutions. Flexible space providers, for example Chillispace or Smart Office, often have the “pay as you grow” model on the menu. Others, such as Imperial Business Center, opt for traditional lease agreements.
Another option is myhive offered by Immofinanz. It allows leasing an office unit in a traditional office building. The office is fully autonomous but with customizable features and solutions characteristic for flexible spaces. The aim is to promote exchange and cooperation between tenants by attractive communication zones, tenant lounges, and special events.
If you are not sure what to do, our advisory team will help you find the best solution for your business. Contact our advisor and see what we can do for you. Whether you need a “pay as you grow” model like Bitpanda, a few hot desks, or traditional office space – we’ll make sure you’re happy with the results.