There are many ways cloud-based working is helping smaller businesses and individual entrepreneurs cut the costs associated with running traditional offices.
But the flexibility afforded by a cloud-based office can quickly drive up costs if you don’t keep the expenses in check.
We’ve rounded up a few of the biggest savings and hidden expenses related to cloud-based working.
The big savers:
1. You won’t need an office. Though it might seem quite obvious, it remains one of the primary reasons for using cloud services. Storing documents on the cloud means there is no need to be tethered to a server room and you can easily share documents and collaborate with colleagues without having to actually meet.
If you’re working in London, this sort of saving is significant. With monthly office rentals for one costing anywhere between £500 to £1200 in the city, you could be much better off working from home. Add to this the saving on transport (around £ 170 for a monthly travelcard for zones 1-4) and resulting ability to source talent from across the country.
2. You can outsource your admin. Thanks to cloud-based telephony, it is possible to relay calls to a virtual receptionist who will screen calls and take messages. If your phone often keeps you from getting stuck into work, this can present a major improvement to your overall productivity. At around £90 per month, virtual office services come at a far cheaper price than hiring a receptionist.
3. You won’t have to make long-term financial commitments to expensive software. There may have been outrage in the face of Adobe’s decision to introduce Creative Cloud, and a bit of unease when Microsoft Office recently followed suit, but startups are reaping the benefits.
Fledgling design companies no longer have to take the risk of forking out thousands of Pounds for software licenses that could be wasted should their business fail to take off. Instead, subscription services break costs down into sizable and easily predictable monthly installments.
The hidden costs:
1. Working from the coffee shop adds up. Whilst it may seem tantalizingly trendy to make the local independent coffee shop your new office now that you’re working from the cloud, this can quickly start draining your funds.
Assuming you have a cup of coffee every two to three hours at around £2.20 per coffee and a gourmet sandwich for lunch at around £8.00, you’ll have spent £ 420 by the end of the month. Granted, even if you did not frequent your local “coffice” you still have to eat, but by making your own food and drinks you’ll be able to cut that cost in half.
Also, many serviced offices and business lounge networks have dedicated coffee services as well as kitchen areas and could be a sensible alternative for the cloud-based worker looking for spaces other than home to get some work done.
2. Your lifestyle becomes more nomadic (and expensive). Not having to go in to the office allows you the freedom to re-organise your life. You can accompany your spouse on their work engagement. You can extend your holiday to work from Dubrovnik for a week. You could start spending your winters in Marrakech. If you can afford it, this is a great perk. But a nomadic lifestyle could easily leave you out of pocket. And you may find yourself missing out on the calm and quiet routine of a local existence.
Whilst working from the cloud makes sense for many entrepreneurs and small enterprises, it is well worth doing the math carefully to ensure this represents a real cost saving.
