Whether your company is a startup with a small dedicated team or a large established company, your headquarters doesn’t have to limit where your company operates. Today, it’s easier than ever to manage a company from one place. Satellite offices are a common solution. This guide covers the definitions of satellite offices and how they differ from other workspace models. We will also introduce the concept of satellite offices and their role in a post-pandemic world.
Satellite Office Definition
A satellite or branch office is an additional workspace for a larger company that is physically separate from the headquarters, which means that a company can conduct business in multiple locations. Satellite offices vary in size and can accommodate a few to hundreds of employees.
Let’s say you occupy the headquarters in New York; you can have a satellite office in Chicago or even overseas. The satellite location should provide convenience and become a central meeting place for employees working in remote locations.
What Types of Companies Use Satellite Offices?
The history of alternative workspaces proves that almost any type of company can benefit from opening a satellite office. Below is a detailed overview of the types of companies that use satellite offices.
- Growth companies that lack space
As you hire more employees and expand your team, at some point you will inevitably need more office space. Some companies offer their employees remote work or shifts to make up for their lack of space, but not all companies benefit from such schedules or workflows.
Satellite offices provide ample workspace without the need for larger moves, and depending on your business goals, having employees in satellite offices can help you grow and expand in other locations.
- Businesses looking for a collaborative environment
Many growing businesses are dispelling the myth that doesn’t work well with competitors. If your business can collaborate with other startups or companies in a shared workspace, a satellite office as a collaborative environment could be a great solution.
Collaborating with top talent from other companies in a shared workspace can benefit your business and help you grow.
- Businesses expanding into new markets in different locations
Unless your company is specific to one region, you may be looking for ways to expand to different locations. Setting up satellite offices in different locations locally, regionally, or globally is a cost-effective and relatively simple way to tell if your business will thrive in different locations.
- Businesses looking to improve customer satisfaction/experience
Businesses that are located in the same geographic (or nearby) customer base not only have a better understanding of their customers’ needs, but also a better customer experience in general. Happy customers lead to the growth of the company.
- Brands seeking status
Many businesses, especially those in the retail sector, benefit from using satellite offices to help diversify their brand image. Expanding your business brand helps you reach a bigger audience outside of your headquarters and become a celebrity.
- New businesses looking to reduce costs
No matter how much budget you need to spend, a new business has a lot to consider before expanding into a larger location. Even if you decide to use a satellite office temporarily, it can help you keep costs down without worrying about construction costs or lease agreements.
- Large companies relocate specific departments or teams
No doubt every department in your company is important, but they may not all need to be housed under the same roof. Depending on your business and client needs, moving departments to satellite offices may increase efficiency and client satisfaction.
Benefits of a Satellite office
- cut costs
Satellite offices can reduce overhead. For companies establishing a business in a new location, a satellite office hosting a smaller local team is a cheaper option than moving a large number of employees. Satellite offices can also reduce staffing costs by allowing you to hire teams in areas where the cost of living is lower.
- Better and faster decisions
No one is better equipped to make decisions on local issues than local teams. Satellite offices enable dispersed companies to respond quickly and appropriately when emergencies and opportunities arise, without having to seek approval or input from headquarters hundreds of miles away.
- Leverage human resources in different locations
There are clear benefits to hiring local talent. Not only are you leveraging the knowledge and skills of the people who live where you’re expanding, but you’re also opening up trusted local contacts, new suppliers, and other resources that may not be available to remote work teams.
- Improve customer satisfaction
A 2021 survey by Intuit found that the majority (57%) of consumers shop locally to save money in the community, and 38% support local businesses to be closer to their neighbors. When your customers are able to see and communicate with the local team, they will feel more connected to your business. It could be a branch of your company in the city where it is located or a local customer support team with practical knowledge of the area. In either case, the closer you are to your customers, the more personalized your relationship with them will be.
- Provide local benefits to employees
Better benefits mean happier employees, and the best benefits leverage and support other local businesses. Satellite offices in new locations allow you to personalize employee benefits based on location. That could mean joining a nearby gym or sports club for free or taking part in a bike-share program in a city that offers this commuting option.
Disadvantages Of Satellite Offices
- lack of managers
As much as you try, you can’t be anywhere at the same time. When you’re not in a satellite office, it can be more difficult to have your voice heard and be effectively involved in the decision-making process.
- less control over the organization
For satellite offices to function effectively and respond in a flexible manner to local conditions, headquarters must cede a degree of autonomy to the teams working there. This means that as the company grows and enters new markets, it becomes more challenging to control the direction of the business and more necessary to trust local managers to do the right thing.
- Misunderstandings of the company’s work culture
Company culture is notoriously difficult to define, but it stems largely from the interactions between the people who work there. A company’s mission statement can shape the recruiting and training process, but over time, an affiliated office can develop a work culture that differs from the rest of the business. It can also be an advantage: satellite offices with a local vibe can communicate more effectively with clients and partners in the area
- low quality work
Without adequate training, communication, and oversight, the quality of work in satellite offices can decline. Avoid this by keeping your team connected and collaborative, no matter how far apart. Make sure everyone has the technology and space they need to work effectively between offices. This includes everything from video conferencing equipment and meeting rooms to fast, reliable Wi-Fi.
What To Consider When Opening A Satellite Office?
Investing in a satellite office is just an investment. To make sure it’s a successful attempt, here are ten things to consider before taking the plunge:
1. Goals
Before you start making any plans or decisions, think carefully about your intentions to open a new office. What do you hope to achieve? How does this relate to your company’s brand strategy?
Are you trying to increase revenue by expanding into international markets? Are you trying to attract talent or give existing employees more flexibility? The more specific your goals, the better. For example, your company may want to establish itself in the center of the industry. What outcome would make the time, logistical and financial costs of building a satellite office worthwhile for your company?
Knowing your goals and the specific steps to achieve them ensures that you grow with purpose and allows you to measure your success.
2. Location
As we discussed, where to open a satellite office can have many implications for your business. In many cases, the quest to establish a business in a specific location is the main motivation behind satellite offices. But even if the location isn’t your primary concern, it’s worth considering how different options will affect every aspect of your company.
Once you’ve determined whether your satellite office is in Manhattan or Montana, weigh the pros and cons of certain neighborhoods or even specific offices—from employee and customer experience to rentals, partnership opportunities, and competition.
3. Your neighbors
As you consider the right location for a satellite office, decide which type of community will best help you achieve your goals. If you’re a startup looking for growth opportunities, then you should look into finding a location close to a VC firm or a company that aims to increase its innovation efforts. If you’re setting up a new office for salespeople, a high-density area that houses the various types of companies you want to land on as customers may be the right choice for you.
Networking doesn’t just happen within the confines of networking events or pre-arranged meetings. It happens naturally throughout your day wherever you go.
4. Accessibility
The ease of getting to and from the office affects who will apply to work for your company and how happy employees will be once they are there. This has multiple implications for employers
First, there are fewer modes of transportation to get to the office, which means more restrictions on the applicant pool. Second, companies are increasingly looking at transportation as an aspect of sustainability as well as employee health. Easy access to the office by public transport, cycling, or walking can support your initiative to make your workplace a healthy and environmentally friendly workplace.
As with your main office, be mindful of the accessibility features of your satellite office to accommodate people with varying ranges of mobility or other accessibility needs. These features are essential for your employees now and in the future, and creating an accessible space from the start can save you from having to make corrections or pay for expensive changes later. Additionally, you’ll make an important cultural statement that welcomes employees and customers with disabilities to your organization.
5. Inter-office logistics
While physically separated from the company’s main location, satellite offices still work in tandem with headquarters to varying degrees. In some cases, employees will have the opportunity to travel between offices, or regular trips to the company’s main office may be critical to one’s role. Depending on the structure of your company and the work you do, frequent cross-departmental travel may affect where you should open a satellite office. Think about how convenient it is in terms of cost and transportation options to get from one office to another.
Also keep other logistical considerations in mind, such as time zone differences and the communication methods you will use between teams in the office.
6. Space requirements
When determining how much space you need, start with the number of employees you want to work in the satellite office. But go a step further and think about how your employees work. If your company allows employees to work remotely, or if some satellite office employees will be traveling a lot, you may not need as many desks in the new space to accommodate all the people who will be working.
To avoid unnecessary space crunch and movement in the future, keep your growth projections in mind. For example, if you start hiring soon after a successful funding round, it might make sense to rent a larger office than you currently need. However, if you add a new team member each year, your company may be better positioned to save costs with a smaller office and expand into new leases in the future.
7. Flexibility
In addition to how fast your company is growing, consider whether you anticipate needing your satellite office in six months, six years, or indefinitely. Fast-growing companies, or those with short-term space needs, may benefit from flexible lease agreements rather than traditional office leases.
Fortunately, the office market has changed in recent years to accommodate the flexibility businesses need as they expand, contract, grow, pivot, and respond to changing circumstances.
In fact, GCUC data shows that the number of co-working spaces around the world nearly doubled between 2015 and 2017, while the number of co-working members more than tripled during this period. And it’s no longer just individual entrepreneurs and start-ups taking advantage of collaborative work; organizations of all sizes, including government agencies and multinational corporations, have embraced this office model.
8. Furniture
Furniture is an important part of a satellite office. The width of what brand of table or sofa you buy doesn’t seem to be relevant to your business, so it doesn’t matter. But you’ll do yourself a favor and figure out how you plan to furnish your office sooner rather than later. One such tool is the Wayfair app, which uses augmented reality to show you what their furniture looks like in your space.
Will you buy new furniture, used furniture, or rent? Or, if your company outsources the work, it’s best to rent an already furnished office.
Remember: Furniture decisions, coordination, installation, and maintenance cost not only your money, but the time you could otherwise focus on your business.
9. Technical requirements
Walk into your new satellite office with a plan for how to handle your technology needs. When your company isn’t under one roof, the right technology and easy, reliable communication is more important than ever. In addition to quickly and reliably covering every inch of the internet in your office, you may also want to invest in a high-quality phone and/or video conferencing platform.
Also, make sure that whatever field you want to go into can meet the company’s needs for any particular technology infrastructure without adding too much cost. Some serviced offices have staff who can do this for you, so be sure to ask when you inquire about space or visit their facilities.
10. Amenities
Ensuring that an office is a well-functioning and productive workplace requires a significant investment of resources. What resources will your satellite office provide employees? Explain the essentials for getting the job done and what makes your company a welcome and enjoyable company, both materially and culturally.
Conclusion
Expanding to a satellite office requires planning and consideration. While not without its challenges, it can take your business to new heights. The secret is to take the time to develop the best strategy for your business
