Legacy Serviced Offices Redefines Workspace For Entreprenuers

Legacy Serviced

Legacy Serviced Offices is a startup in the sharing economy. It was established for business people who want to focus on their core competence and operations without being bogged down by intricacies of running their own full-fledged office.

In business and especially those driven by capitalist principles, entreprenuers all have one common goal- to make and maximise profit. However, in specific markets like Nigeria, cost of doing business and embedded risks are higher than anywhere else. Serviced office providers such as Legacy Servived Offices are efficient ways of getting things done, while still achieving the cardinal goals of starting a venture.

In an exclusive interview with Kayode Adegbola, Founder and CEO of Legacy Serviced Offices, we engaged him on topical issues and rationale behind the business and economics of serviced offices in Nigeria.

What do you think is driving the increase in managed offices in Lagos?

There is a growing global phenomenon of flexible working, and because of Lagos’ economic position, the megacity is naturally not left out.

In terms of cost comparison, why do you think entrepreneurs will choose managed offices over the traditional model?

However you like to refer to them (serviced, shared, or managed), offices like ours help companies focus on their primary business activities, without having to bother about fitting out, furnishing, and running their office. Flexible payment options are also an attraction for such companies.

Source: Legacy Serviced Offices
Legacy Serviced

Which segment of the market are you targeting?

We are quite inclusive in our outlook and thus have plans that are attractive to various segments of the market. We have hot desks and hot offices for entrepreneurs, as well as offices for more established companies. In addition, we have a virtual office plan, which allows companies to use our address for their business and get free hours of meeting room use per month.

In other cities, tech startups are booming the workspace market, do you think startups in Nigeria can make a sustainable market?

Yes, I certainly think that startups in Nigeria can make a sustainable market. We are on the right track, with a number of tech startups providing useful solutions. I in particular am very keen to see what FinTech does to help take banking to the currently unbanked. However, to establish sustainability, there is a need for more investment in the Nigerian startup space. In addition, it would be nice to see stable monetary policy, to encourage foreign investment.

How affordable can managed spaces be considering the prevalent economic milieu?

Considering the current economic situation, Serviced Offices (or managed spaces) are a quick and affordable alternative to establishing a single-company office, considering the high start-up costs and heavy overheads. Using Legacy Serviced Offices as an example, by taking up an office with us, companies reduce their capital expenditure on essential office infrastructure such as power generators, furniture, internet; as well as savings on salaries of administrative and other staff.

Are you self-funded or venture capital backed?

Legacy Serviced Offices is funded with some of my own capital and that of individual investors.

Why do you think investors will want to invest in this market?

If a serviced office centre is able to achieve full occupancy, the returns on investment are attractive.

Legacy Serviced
Source: Legacy Serviced Offices

What’s your competitive strategy?

Our competitive strategy is quite simple. Because our success is hinged upon providing top-notch services both in terms of infrastructure and delivery, we ensure that we keep our facilities well-maintained, and our staff professional and well-trained. In addition, we place high importance on the design and functionality of our space. Our pricing and payment terms are also flexible.

Apart from power costs, what drives your OPEX?

Power is one of the highest costs that we incur. Our internet costs are currently low but as uptake increases, I imagine it will begin to cost us more. So, power is definitely our big issue.

Do you lease or own the property and what’s the model in the market?

Yes, we own Legacy Place, but depending on the locations of our future projects, we will decide whether to own or lease.

Is this your first venture?

No, I have been, and am involved in other ventures.

What is your mid-to long term goal

Our mid to long term goal is to grow the company organically, build strong relationships with all our stakeholders and constantly improve on our service offering. I would like us to eventually have a presence across Lagos, and perhaps across Nigeria.

Because of the volatility and uncertainty in the market, do you have a contingency plan?

More than ever, an offering like ours is useful. Our clients do not have to massive capital investments. In addition, we are an alternative to other offices where tenants have to pay two years’ rent upfront.

 

Meet Kayode Adegbola

Kayode Adegbola is the Founder and CEO of Legacy Serviced Offices. He has a degree in Law from Queen Mary, University of London, and is an alumnus of the Harvard Kennedy School.

Kayode has practiced in well-known law firms such as Bola Ige & Co., and Ajumogobia & Okeke. Early on in life, Kayode developed an interest in real estate and is skilled at identifying opportunities in the market. He is a keen art collector and enjoys traveling.

He serves on the Board of Governors of The Vale College, a private secondary school in Ibadan, Nigeria.

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