What is a satellite office?

A satellite office, sometimes called a remote office or telecommuting office, is a smaller, fully equipped addition to a company’s headquarters in another location. Networked with the headquarters through modern technologies, it offers space for small teams or entire departments as a collective workspace. It can be a single office for one employee, double offices, coworking spaces and team offices, or as open-plan offices can be workplace for hundreds of employees.

In contrast to branches and subsidiaries, satellite offices are usually labor market-driven rather than sales market-driven. But a lack of space, prestige gain, cost savings or a needed creativity boost can also make a satellite office the ideal addition. In this blog post, I’ll give you a closer look at the top reasons to have a temporary or permanent satellite office.

When the actual company headquarters has become too small, many entrepreneurs think about moving. The consequences: Stress, relocation costs and problems due to poorer accessibility for employees. With a satellite office, this can largely be avoided. This allows companies to expand without having to relocate their headquarters. For example, departments that are not required at daily meetings can move into the satellite office. For example, the IT department, accounting or sales can be outsourced without cutting them off from the connection to headquarters. A satellite office is also an excellent solution for project teams, as knowledge and creativity can be concentrated here, creating think tanks. Satellite offices are also ideally suited as a regional presence to open up new markets at additional locations.

If you outsource departments or teams without customer contact to a satellite office, this does not necessarily have to be located directly in metropolitan areas – this saves on rental costs. Another cost factor is labor costs: If you open a satellite office in a structurally weaker region with lower wage levels where the necessary skilled workers live, this can give you a decisive cost advantage over your competitors.

Even if you are planning to relocate with your business, a temporary satellite office can be a smart solution to explore the market in your desired location, find the ideal property, set it up ready to work, and get established there already.

The long commute for commuters to their jobs is a common reason for quitting or wanting to work from a home office, which often makes collaboration difficult. Compared to a home office, a satellite office offers several advantages for employees: First, they have direct contact with colleagues in their department or project, which enables better and more fruitful teamwork. On the other hand, all the necessary facilities and infrastructure are available to them here. A satellite office close to employees’ homes promotes collaboration, saves commuting time and thus provides a better quality of life. This also makes your company interesting for new professionals.

Should your company relocate with your headquarters, this is often a reason for termination for employees who do not want to change their place of residence for various reasons. A satellite office near the old location helps retain these professionals.

Another reason why a satellite office can make sense is the shortage of skilled workers. A satellite office opened specifically where skilled personnel are available can be the decisive reason why employees choose your company and stay there.

When renting a turnkey and fully equipped satellite office in a business center, you have the option to expand, downsize or convert it to another office concept at any time. You also save on the initial cost of office furniture and equipment. Especially if it is not yet foreseeable how the expansion of your company will develop in the coming years, this flexibility is a great advantage.

Also, in case you are planning to relocate with your business, a temporary satellite office can be a smart solution to explore the market in the desired location, find the ideal property, set up ready to work and already establish yourself there.

A prestigious address in a desirable area of a metropolitan center for your satellite office, as is the case with business centers, enhances your company’s visibility and reputation and is worth its weight in gold as an address on your business card.

Last but not least, the proximity to other companies in such a complex is often the ideal opportunity for networking and a source of inspiration for your employees. Because even if the satellite office is only for employees of your company, contact with other companies is not absent.

After reading my blog article, I hope you were able to weigh up for yourself whether a satellite office is the right solution for you and your business. Write me if you have any further questions about the satellite office or any other office concept. In February, my blog will be about the benefits of an office service.

I wish you every success!

With warm regards
Your Christian Schmidt