The costs associated with setting up an office, in the right location, are often too steep for small businesses, start-ups and entrepreneurs.
Infrastructure and rental costs can be crippling for small companies and individuals wishing to start a new business.
Simon Campbell-Young, MD of The Extension, which he describes as shared workspace for entrepreneurs, start-ups, and small businesses says that this is driving a trend of shared, serviced and flexible office spaces, that are affordable and easily accessible – ideal for smaller entities and individuals that need to grow their businesses affordably.
“The Extension offers dedicated desk space with fast broadband, WiFi, high spec meeting rooms and full ‘big office’ facilities, all at small office costs. It is London office sharing at its best,” says Campbell-Young.
However, he says that where The Extension differs from other shared workplace environments is that it not provides space to entrepreneurs, it specifically focuses on collaboration and business incubation. “Our idea is that the businesses occupying the space will end up working together, which we have already seen in out two Cape Town premises, but even more than that, we have pulled together venture capitalists who will be investing in the businesses that need it.”
He says The Extension will also be arranging regular speakers on topics covering everything from innovation to marketing and finance, and similar.
Campbell-Young says the trend of flexible working is growing in South Africa, as smaller businesses have access to fully equipped office spaces, offering everything that an established company would, including the right address. At The Extension, space can be rented by the day, week or month.
Shared space comes with no upfront cash layout, and far lower overall risk. “Cash can rather be injected back into the business. In addition, businesses in The Extension can benefit from the culture of entrepreneurship, support, sharing and collaboration that is being nurtured in the environment.”
Another benefit, he says, is flexibility. “Businesses can grow organically, instead of having to rent more space than they need initially or having to move when they outgrow their office space. Moreover, overhead costs that go hand-in-hand with fixed-space leases can seriously impact on cash flow, and having cash flow can make or break a fledgling business. This, combined with the collaboration and business incubation elements, makes joining The Extension a unique opportunity for forward-thinking SMEs and entrepreneurs to take their businesses to the next level.”
The Extension has two spaces in Cape Town, and will be opening a Johannesburg space mid-year, followed closely by a space in Durban.