Top 10 tips for managing your serviced office P&L.

Wednesday 18 July 2018
As a former director with a global serviced office provider, I know all too well the demands put on driving profit and reducing costs. A successful business centre has high retention 60%+, high occupancy 80%+ and happy staff driving overall performance.
   
Here are my top 10 tips on how to best manage your P&L.
1. Make sure you know what every line item means in your P&L and what sections are controlled by you and which are OPCO (Operation Costs), which you can't influence like rent and rates.

2. Always read the P&L when issued and look for trends in trading and changes to controllable costs.

3. If you're trained and or confident in 'forecasting' try to predict the business performance, this will allow you focus on trading and drive performance.

4. Use your occupancy to track renewals and plot these against your P&L, this will help you understand how renewal rates, new joiners and leavers are affecting the business.

5. share the P&L line items with your team, so everyone feels involved. this can fun, so have a team meeting and share success stories and best practice.

6. let team members own a line of the P&L - e.g. instruct a Debt champion to help with chasing late payments, debtor days should not exceed 30 days+. Have a meeting room champion to manage meeting room revenue.

7. look at YOY (Year on Year Trading) this will help you understand why rates per office might have changed or occupancies etc...

8. Speak to local managers if need help, they might have great tips on how to manage struggling lines in your P&L

9. When filling empty office space, make sure the sales team know your current Yield (average rate paid per client) so they get the best office price for your centre. Tip; makes sure your stock is always at show standards, turn around empty offices in 48hrs!

10. Don't be scared to ask questions and get creative!
Back To Top