One of the first things that any expanding business researches is setting up a satellite office (or several satellite offices).  However, many new business owners do not realize that many factors play a part in this decision. 

What is a Satellite Office?

A satellite office is also known as a branch office.  It’s essentially an additional office for the business and is located in a different area than the primary office or headquarters.  This hub and spoke model is becoming increasingly popular as companies test new markets while keeping risk low.

Satellite offices may be located in a different country, city or even a different part of the same city.  These offices are usually smaller in size compared to the headquarters.  However, they can host a few employees up to several hundred.

What Types of Businesses Should Consider Using a Satellite Office?

Satellite offices can be useful for all types of business. These include:

Growing Businesses:  As your business expands and hires more employees, you may find that you are simply running out of space. Changing headquarters can be a costly experience that a growing business may not be ready to invest in. 

In such a situation, opening a satellite office means that you can get the most out of your current location, while also having the space necessary to onboard new employees.

 Businesses Looking to Make Local Connections:  Often, as companies expand, they may need to reach out to new target markets.  Reaching these markets usually demands that you have both local connections and an understanding of the local culture. 

By opening a satellite office in an area that you are targeting as a customer base, you will be able to make contacts that you may not otherwise have been able to reach out to.  You will also be able to familiarize yourself with the culture so that you can better market your services.

Collaborative Businesses:  Many companies are often on the lookout for partnerships with other businesses.  Collaboration can help businesses grow in new and innovative ways. 

To find new businesses to collaborate with, companies may often find it advantageous to open satellite offices in coworking spaces or in a business hub like a tech campus, for example.  This allows them to network in a more organic way and finds new businesses that they may be able to work with. 

Businesses Looking for Specific Employees:  When looking to fill an open position, companies are always looking for the perfect person. This individual should not only have the right amount of experience, they should also have the skills you’re on the lookout for.  In many situations, these individuals are found more easily in certain locations over others. 

For example, you will probably have a larger talent pool to choose from in a major city than a smaller town.  If you’re seeking a team of software engineers, you’ll probably find several options in Silicon Valley or in cities with schools specializing in tech skills.  If a business is on the lookout to fill specialized positions, they may find that opening a satellite office in a strategic location is beneficial. Similarly, if there are several openings that you are looking to fill, you’ll probably find it easier to do so if you have a satellite office in a more populated area.

 The Benefits of a Satellite Office

There are several advantages to opening one or more satellite offices. These include:

• Reduce Commute Time:  Most businesses choose to open satellite offices in areas that are easily accessible.  This makes it easier for employees to commute to and from work daily.  This is especially important, as it can help increase employee morale and boost the number of working hours in a day.
• Networking:  If you choose to open a satellite office in a coworking space or serviced office, you will find it easier to network with other businesses.  As a result, a new location will make it easier to work with local businesses, especially small businesses.  Working with these businesses can often be more financially advantageous than working with larger brands.
• Expansion Opportunities:  By establishing a satellite office in a new city or country, it will be easier to reach out to a new customer base. It also offers them an opportunity to appeal to new demographics. Furthermore, by learning about new business practices, your own practices may evolve to be more favorable to your goals.

Things to Consider Before Setting Up a Satellite Office

Before you can consider how to set up a satellite office, you must choose a location.  Several factors go into making this choice. These include:

• Infrastructure:  Is the building in which you plan to situate your satellite office able to accommodate your technological needs? Accessibility:  Sometimes, businesses choose locations depending on the cost.  However, this may result in you selecting an area that is not easily accessible to your employees and clients.  Your satellite office should be easy to navigate to.  It might also be preferable to choose a site that has several public transportation options nearby.
• Cost:  The rent you will be paying for the office is perhaps the most important consideration when choosing a location.  However, there are other monetary and cost factors that you should consider.  These include how much you will be paying for utilities; any cleaning costs you may have to pay and more. 
• Space:  You may find that you need to expand your satellite office in the future.  Due to this fact, it is always beneficial to choose a location that has expansion potential.

Final Thoughts:

Satellite offices are growing in popularity.  It allows businesses to expand without having to overload a single location and makes it easier for employees to work with flexibility. 

Among the most significant benefits a satellite office offers is cost reduction and greater accessibility to new customer bases.  If you find that your business is growing quickly, you should consider whether setting up a satellite or branch office would be a good business move for you.