Any company requires a set of tangible and intangible assets to grow further in the industry. These assets can range from technological resources to goodwill of a company. However, companies that are at the start of their business journey face financial instability as a destructive obstacle in their growth. 34% of startups close within the first two years. These failures can arise due to poor decision making when it comes to investments.
Burdens of Long Term Investments
Certain investments have a higher pay off in the long run than others. While some investments seem more as cost burdening.
Upfront Cost of Workspace
Companies that transition from the start towards the growth stage want to invest in a workspace to attract prospective investors, to manage their team, and pool in assets-one being the workspace itself. While workspace is an investment to a company, it requires bearing huge upfront costs in its procurement and execution.
Upfront costs are expenses that do not receive services immediately after. Meaning that workspaces can reduce the capital against which there wouldn't be immediate returns.
Upfront Cost in Managing Vendors
When contractors and vendors are working on a workspace with a signed contract bearing upfront costs, it becomes difficult to take control of their activities. For instance, a contractor may decide on the materials to execute on a company's project at his convenience, which may result in poor quality, and can even lead to earlier replacements than expected.
These burdens can significantly impact the company with severe consequences, leaving the company in a distressed position.
The Threat to Business Survival
Once a company invests substantial amounts of capital into a workspace, it can portend into its downfall. A company may not be able to generate estimated revenue to cover its burdening cost, which could lead to dissolving the company altogether.
Reduced Opportunity for Growth
A company in its growth stage of business may be excelling towards scaling as there's an increased demand for their product. At this phase, a company will need significant capital to expand its market but could not due to decreased capitals from upfront costs.
Lack of Flexibility
With such huge investments onto a workspace, a company estimates to establish themselves with it for the long haul. However, when an opportunity arises for a better location to enhance the company's growth into a favorable market, it would require a company to be flexible with their assets, requiring to salvage assets and have secured capital to relocate themselves better.
Amortize the Tangible to Invest in the Intangible
To succeed and optimize the growth of a company, it can seek to amortize its assets, i.e., the workspace. A company can amortize:
Amortizing workspace first and foremost ensures the company can use their remaining capital on other investments such as patents for their product innovation or invest in shares that can result in higher and quicker returns than investment in the workspace alone. With these investments, a company can ensure sufficient cash flow to meet its running expenses.
It takes a business to survive and then grows to flourish in the industry. Amortization will ensure the company expands its production, and sales which wouldn't have been possible earlier.
To Be Flexible
If assets such as furniture, can be flexible in terms of their movement, they will be easily salvageable and can allow flexibility to a company.
Amortize with Workamp
Workamp helps companies grow without the hassle of burdening themselves with high upfront costs, and here's how.
Mediator Between Financial Bodies
Workamp connects companies with financial bodies to amortize their workspace, ensuring they can focus on their primary goals.
Mediator Between Vendors
Workamp partners with vendors that provide end to end services, ensuring companies can invest in quality assurance with the workspace design.
As Workamp executes the workspace design, it becomes reflexive to maintain it. Companies can rest assured that their operations will function seamlessly, making it an enhanced asset to the company.