There’s no doubt that one of the primary objectives of any business is to achieve optimal growth; and this cannot be achieved without adequate infrastructure.
Business Infrastructure are the basic facilities, structures, and services upon which the rest of a business is built. It is common to think of infrastructure as physical things but basic software services and technology tools are also considered infrastructure. The importance of technology in business cannot be understated. Companies worldwide are relying on emerging technologies to help improve their competitive advantage and drive strategy and growth. Today, we cannot even consider doing business without the internet, project management apps and more. In fact, the role of technology in business will only continue to expand.
High-quality infrastructure provides direct positive impacts, including higher efficiency, increased safety, decreased environmental impact, and more effective delivery of public goods and services. In most cases, it’s easy to appreciate the value delivered by quality infrastructure.
Thus, infrastructure is one of the most critical factors for business and economic development because it interacts with the business and economy through the production processes. Therefore, changes in the quality of infrastructure available for production will greatly impact the production and performance of an organization’s levels of output, income, profits and employment creation in the economy.
Smart Businesses understand their business infrastructure should be;
- Easily accessible to enhance visibility, give access to larger pull of customers, and enhance commuting among many other benefits;
- Well-equipped because having the right and adequate tools is imperative to successful completion of the task at hand. These tools include devices, equipment, mechanisms, resources, applications — anything that is utilized during the job to assist in completing a task;
- Safe, as a safe and healthy workplace not only protects workers and customers from injury and illness, but also lower injury/illness costs, reduce absenteeism and turnover, increase productivity and quality, and raise employee morale;
- Quality, as quality infrastructure reduce cost that would otherwise be spent on continued repairs, saves time, enhance productivity, and yields quality output that helps to satisfy and maintain client’s loyalty;
- Well managed, as better management of infrastructure can lead to reduction in operation and support cost.
However, research shows that inadequate infrastructure remains one of the problematic factors hindering the development of businesses in Nigeria (Global Entrepreneurship Monitor, 2012).
These infrastructural challenges hindering business development can be attributed to the huge cost involved in;
Acquiring Suitable Location
The importance of location in business success cannot be understated. An adequate business location enhances its brand and image; the reputation of a location reflects on the reputation of the business. In addition, irrespective of how large a business might be, it won’t be successful if its customers don’t realize its existence. Thus, the positioning of an enterprise in an area where people look forward to setting their foot is one of the best things that drive business success. Despite the fact that establishing a business in an environment that sees a lot of people and traffic support business growth, many entrepreneurs settle for environment that is less likely to promote their business. In most cases, this is because, good locations are often occupied by other businesses, and the cost of infrastructure in such environment is often very exorbitants.
In addition to the cost of building, buying, or renting a structure in a conducive environment, businesses are enforced to pay varying expenses such as tax, insurance, etc.
Procuring workplace resources
Every business requires varieties of resources to enhance it works. The right resources allow businesses to complete their task efficiently, which affords employees opportunities to expand their range of capabilities.
These resources range from common physical workplace facilities like adequate work desk to more sophisticated business tools. Quality infrastructure should utilize the best available technology to be reliable, economically and environmentally efficient, and should supports health and safety of the workers and customers.
However, a common challenge faced by many professionals is that they lack the necessary tools and resources to do their jobs effectively. This struggle spans all job levels and departmental functions, and most definitely impacts business. It results in workplace frustration, poor moral, reduced productivity and declining financial performance.
Overcoming this challenge requires strategic plans; plans which smart entrepreneurs have devised to enhance their business.
Managing the resources
For people to do their best work and feel engaged in their environments, they need to leverage well managed infrastructure that are safe, welcoming, and efficient. Where they work, learn and rejuvenate should be comfortable, productive, and sustainable.
Maintaining a sustainable environment goes beyond initial sourcing of the best resources. Assets are bound to depreciate over time. Problem as small as burnt socket can halt productivity. Hence for continued sustainability, businesses entrepreneurs are faced with the challenge of providing tools and services that support the functionality, safety, and sustainability of buildings, facilities, and equipment among others.
Experienced managers know that the costs of maintaining workplace infrastructure can far exceed a simple rental payment.
These infrastructural challenges among many others affects many businesses in many ways;
1. Low Productivity
The scarcity of workspace in suitable environment, and high cost associated with acquiring infrastructure in such location has caused many businesses to settle for poor and cheap environment. These poor environments end up hindering their visibility, accessibility, competitiveness, etc.
As such, infrastructure that fails to meet the standards of efficiency, safety, and economic sustainability may be less expensive in the short term but imposes huge costs on the productivity, future growth, and development of the business.
2. Problem of Expansion
Being able to reach and deliver services to customers in diverse location can greatly enhance business growth by helping businessesreach more people that were previously outside their physical range, and making it more convenient for customers to work with them.
However, while great businesses are leveraging on multiple locations and quality infrastructure to enhance their businesses, many businesses are losing huge business opportunities because they are localized in one region. This problem has been largely attributed to the high cost of acquiring infrastructure, as adding a new location will mean new bills.
3. The death of Business.
The high cost of business infrastructure has led to the death of many businesses. Many young entrepreneurs have great business and innovative ideas but cannot bring them to life due to the high cost attached to acquiring necessary infrastructure for proper implementation of works.
In addition, the inability of many businesses to cope with the high cost of procuring adequate workplace facilities and managing them has led to gradual decrease in productivity and subsequently, the closure of many organizations.
Here is how.
Rather than expending a huge cost on owning and managing quality business infrastructure in diverse suitable locations to enhance their works, Smart Businesses are cutting cost and expanding network by leveraging on shared workspace in different locations.
Shared space service providers allow workers of different organization utilize their office space, allowing cost savings and convenience through the use of common infrastructures, such as equipment, utilities, and receptionist and custodial services, and in some cases refreshments and parcel acceptance services.
The Benefits of Using a Shared Space
1. Cost Flexibility and Effectiveness
The main benefit of shared offices is arguably their cost-effectiveness and flexibility. They allow creative individuals, freelancers, start-up businesses, new entrepreneurs other businesses to maintain an office within a prime location at flexible times without needing to spend too much on a traditional office.
2. Top-of-the-line Infrastructure
Shared offices come with amenities that are pertinent to operating a business. In addition to internet connectivity, many shared spaces have dedicated reception personnel, who can accept visitors and deliveries.
3. Saves Users the Responsibility Managing Infrastructures
Shared Space further allows users to avoid the huge responsibility of maintaining an office space for the long term, thus allows these businesses to save a lot of money.
4. Fosters Business Expansion
With cost the flexibility and effectiveness of shared space, smart businesses leverage different shared space in different locations to reach many customers, execute works and enhance their growth.
5. Collaboration and Networking Opportunities
Shared offices also allow individuals and groups to work closely together, and even though they belong to different organizations; these people are given the chance of connecting with each other and finding others in the same field. These spaces foster collaboration and networking opportunities for knowledge sharing, partnerships, and establishing new leads and referrals, which will be good for new small businesses and budding entrepreneurs.
6. Finding a Shared Space
With the internet today, finding a shared space in suitable location has become easy. Terraskills Learning Systems Limited offer shared space services called Terrannovation Hubs with adequate infrastructure for both real-time and virtual usage.
Terrannovation Hubs offer aesthetically pleasing coworking space and halls suitable for;
- Training programmes;
- Interviews, etc.
The Hubs are fully equipped with state-of-the-art facilities such as comfortable work desk, air-conditioner, smart television; flip chart board; projector; white boards, etc.
The ambience the facilities creates lasting impressions on users and their partners, and enhances their productivity.
With Terrannovation Hub, you can elude several infrastructural challenges and expand your business.