Setting future trend: Ignore administrative matters, focus on core business

Service office providers offer business centres to clients, usually startups

KARACHI: Running an office in the country’s largest city is not an easy task, especially for startups and growth-stage companies that want to focus on business development rather than worrying about administrative issues: prolonged power outages, water shortage, security, lower-level staff that frequently switches jobs, etc.

These problems, however, have created a niche market for service office providers – a business-to-business (B2B) concept that seems to be growing and may become a future trend just like technology incubators.

The concept isn’t really fresh as B2B giant Regus had entered the market a few years ago. It seems to be picking up with local investors entering this market segment, which is likely to grow further in coming years. At least three new service office providers are expected to launch their business by the end of current year, according to market sources.

These service office providers offer potential clients – usually startups and small businesses – with business centres or service offices on rent. They also offer virtual offices whereby clients are given a business address and the former handles their mails and business meetings.

Simply put, they are business incubators that take care of all administrative issues so the clients can focus on their core business functions. A good example that indicates the growing demand for business centre providers is Treehouse Business Center (THBC), a Karachi-based service office provider.

Only 10 months into its launch, THBC is operating at 90% occupancy and hopes to run at full capacity in a month’s time, according to its COO Jawwad Khan.

Spread over 5,000 square feet, THBC is housed on the fifth floor of Khayyam Chambers, an old building at Nursery bus stop along main Shahrea Faisal. The building’s decaying exterior may discourage potential clients but as soon as one reaches the fifth floor, it’s a different story altogether.

An attractive front desk with attentive receptionist quickly changes the impression. The low-light ambiance with pin-drop silence makes it a good choice for an office. Though there is hardly any parking space in or around the building, its central location – the heart of Pakistan’s commercial hub – more than compensates for that.

“The new generation is more service-oriented and cost-focused. These are people who want such offices,” Khan told The Express Tribune in an interview at one of THBC’s three conference rooms. The facility has 19 offices that can accommodate 50 people.

“They [clients] know there is no hassle of dealing with administrative issues and they can focus on business development,” the COO said, adding the situation in Karachi supports this business model.

A standard package includes free power, free Wifi and landline internet, water, tea or coffee, meal, a dedicated reception and a landline number with free incoming calls. It also has a small prayer room and a dedicated kitchen.

The Express Tribune spoke to four clients – two software houses, an IT infrastructure support firm and an industrial training company with focus on fire safety, cargo handling and first aid.

“They have improved a lot and the response is very good,” said Faisal Shah, one of the clients. The location and rent (price) were the main reasons why he moved here. Other clients Sohaib Aftab and Salman Khan find the work environment very peaceful.

“We often have our clients visit us here and they get a good impression,” said Aftab who is Manager Training and Development, Total Safety. Khan, on the other hand, was happy for he gets only one bill and doesn’t have to worry about petty issues.

Khan, the THBC COO, is hopeful that his business will be operating at full occupancy in its first year, which will drive up profits. However, he may have to offer more virtual offices once he runs out of space.

Though he has requested the builder for another floor in the same building to meet the growing demand, he will have to wait quite a while to get that.

Asked how he plans to expand, the COO said, “We will see how the market develops during the next three years and expand accordingly.”

The writer is a staff correspondent

Published in The Express Tribune, May 18^th,  2015.

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