How to Use Cut in Design Space

To say this year has been financially difficult for businesses across industries is a vast understatement. As professionals in the A&D communities grapple with the ramifications of COVID-19 on their companies, many are facing difficult decisions as to how to keep their lights on and their businesses forging ahead. One decision many are weighing is whether to give up their design studio space in order to cut down on overhead costs.

"I think any small business owner had to consider all methods of cost savings when COVID hit and lockdown measures were put into effect," says Gabriela Gargano, founder and principal designer at New York–based Grisoro Designs. "My top priority was, and is, keeping my projects moving and my employees fully compensated, so any other discretionary expense was on the table for review."

Meredith Xavier, principal and founder of business development, marketing, and PR firm The Ligné Group, agrees: "When business is down, every possible expense is on the chopping block—starting with the top, which is often the rent payment." She says designers should consider: " 'Can I change my business structure and the way I work with my staff to make it work from home?' When business is slow, you are often forced into making decisions that, in the end, can positively affect the long-term health of your bottom line."

Gargano says that a month into the pandemic shutdown, she met with her bookkeeper "to run some scenario analyses on annual revenue expectations," she says. "We tested various situations such as projects canceling, construction delays, shipping delays, and changes to client budgets—all of which could impact our total revenue. Based on that information, I felt comfortable maintaining our office space for the following three months and then planned to reassess."

The designer found creating scheduled checkpoints helpful "so that big decisions don't become a daily stress or distraction," she explains. At this time, Gargano says she has no plans to shut down her studio.

Architect Nina Cooke John says she contemplated giving up the lease on her workspace this year as well. The founder of design firm Studio Cooke John maintains office space that she shares with a brand strategy company in Montclair, New Jersey, where she lives, while also keeping a WeWork membership so that she can host meetings, book conference rooms, and receive deliveries in Manhattan.

"We debated whether or not we were going to keep the [Montclair] space, but decided to keep it at least until the end of the year," Cooke John says. "Improvements that we had in the works are on hold for a bit until we have some idea of what business will be like in the coming months. I still haven't gone back to working from the office full-time, but I know I can go there if I need a more professional-looking background for a Zoom meeting or if I really need complete silence to work."

Of course, having a formal office space has numerous advantages. But, as Xavier points out, it no longer seems strictly necessary. "We have learned from 2020 that when forced, you can work anywhere—and you can design an entire project from start to finish via Zoom calls, FaceTime, and FedEx," she says. "I've seen my clients with over 50 designers on staff make it work with everyone remote. And if these larger firms can do it, anyone can."

When Lucy Harris's lease was up at the end of September, she made the tough decision to give up the space. "Having flexibility is key in challenging moments," she says. "My priorities are serving our clients and keeping my team together."

Harris says she's been fortunate to have had a busy year, working with global clients, and that her team transitioned easily to working from home. "My team all has laptops and screens to plug into," she says. "We have installed whole houses remotely." She also adds that her employees' health and safety was a factor in her decision to keep operations remote.

And although this situation is working for now, Harris sees the arrangement as temporary. I look forward to finding another office when the pandemic ends," she says. "I miss our materials library, I miss working together in person, and I miss getting out of the house and being around the energy in Manhattan."

The bottom line, it seems, is that to either maintain or relinquish a studio in this topsy-turvy year is a very personal decision—one that designers must carefully consider. Do savings on rent and overhead costs, and the convenience of being able to work anywhere, outweigh negative aspects—lacking dedicated space to work, host meetings, store a library of samples, and collaborate with other creatives?

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"It is a big decision that comes with many layers of decision-making beyond the cost savings," says Sean Low, founder and president of The Business of Being Creative. "If the space is the essence of the collaboration with staff and clients alike, then [giving it up] might save some money but be a major blow to the firm. And moving is always a huge pain and more costly than not."

"It's certainly a very individual decision," Gargano adds. "Factors such as project flow, size of team, and location of projects all play a role into the 'necessity' factor. In the end, extreme times force us to review needs versus wants."

How to Use Cut in Design Space

Source: https://www.architecturaldigest.com/story/should-you-give-up-your-studio-space-to-cut-costs

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