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The trendsetters on Russia’s new short-term office space lease services market

Tatyana Sokolova and Fatima Zakharova, the managing shareholders of the consulting and business centers Delovoy can rightly be called the ‘pioneering founders’ of a new professional business services market in Russia today. These partners, whose common interests go far beyond their Delovoy joint business venture to include hobbies such as yoga, music, psychological thinking and the Knowledge System of Ecology of Thought, recently gave an interview to TRCW, where they explained the essence of their business venture.


Who was the author of the business idea to offer modern office spaces and conference rooms on short-term lease, including even on an hourly payment basis, to clients?


Sokolova: The idea to create the Delovoy network of business centers came to us a year ago. We came about this idea not because a similar project was already existing somewhere, or whether it was highly developed there or not, but simply because a crisis erupted last year. Consequently, many offices were closed or relocated from center to the MKAD area, where rents are cheaper. How can an enterprising person economize? Today, such people can work at home, thanks to Internet, Skype, etc. If there is a need to hold a meeting, there are excellent conference halls in our facilities right in downtown in the Gostiny Dvor. Besides, our secretaries are ready to process clients’ calls and mails to ensure the success of their operations.


Do I correctly understand that your office facilities and complementary services can be leased for absolute any length of time? 


Zakharova: Yes, that is perfectly correct. It is possible to lease our office facilities and complementary services for one, two hours, for a day or several days, etc. We offer presentable modern offices completely fitted with all business-enhancing services, including technical office equipment and high-qualified staff. Therefore, our clients do not need to burden themselves with huge and regular monthly rental expenses because our motto is ‘pay only for the real services used.’ Here, all depends on the clients and their readiness for changes. Indeed, Mahatma Gandhi once said, ‘We, ourselves, should become the changes that we wish to see in this world.’ This is very true today, especially in relation to our subject. 


The appearance and growth in demand for these services were promoted by the ongoing crisis. In this regard, will it be right to call them a ‘temporary phenomenon,’ a sort of an ‘anticrisis offer’?


Sokolova: I would prefer to call it the phenomenon of our time. The crisis only accelerated the creation of such companies as ours. This is really a new industry, which is just springing up in Russia, and offering invaluable services to small and medium businesses. Who usually goes into business? These are people, who are mainly intellectuals, and, are as a rule, well-read and highly educated. Consequently, such people can professionally run their businesses from any place. Such business owners can perfectly carry out their business meetings in our facilities and feel very comfortable, and also can locate part of their staffs there. This is because we have all the necessary office personnel, equipment and gadgets for conducting all business activities, including professional videoconferences.


What would you say is unique in working in this new business environment? 


Zakharova: The specificity in our business, like those in any other businesses that are located in a certain place, is that it requires what can be called the ‘cultivation’ of clients. In other words, time is needed for such places to become popular. This is why it is necessary to understand one’s target audience, the required marketing programs and strategies and how to organize and execute the advertisement itself. We shall be happy if more companies similar to ours will appear on this market. So, for those reading our interview, we would like to say that we are ready to join efforts with others to develop this industry and enlighten our consumers more about our new business services. Unfortunately, we frequently see that only a few people know about the existence of such business centers, and, indeed, most CEOs are often surprised, when hearing about them for the first time: “Oh, what, it is that? Can we use them?’  


What advantages do business centers, such as yours, have over other facilities as hotels, restaurants or cafes as venues for holding business meetings?


Sokolova: For example, our offices and conference halls can be used for holding preliminary meetings, when a client does not want to take potential partners straight to his/her office, or ‘hangout’ in cafes or hotel lobbies. This is because at this initial stage it is better to understand what potential partners want and see how events can develop further. With regards to other facilities, such as hotels, I need to note that conference services are not their basic activity, but additional offers. Consequently, they cannot offer professional support similar to those of our business centers. The same is true for restaurants or cafes. Indeed, our main difference is that we are a center that provides active support for businesses, and we have all the means to do this.  Thus, at the disposal of clients are mail and secretarial services and the so-called ‘virtual’ office facilities, along with granting prestigious business addresses, telephone numbers with readdressing capabilities, including in a real time mode, for example, to clients’ mobile numbers, irrespective of their locations, as well as the services of professional secretaries and translators. Today, we are offering an absolutely new service, ‘Staff for an Hour,’ that is, offering our professionals to clients on an hourly basis. This, indeed, is the realization of Henry Ford’s dream: ‘to employ only the hands of an employee, but not the entire employee himself.’


If you compare this new business trend in Russia with those in Europe and United States, you will see that Russia is lagging far behind. What is the explanation for this backwardness?


Zakharova: This stems from the fact that we do not always quickly follow the prevailing fashions in business and business dialogs in Europe and the United States, and this helps explain our current short-term backwardness. However, with regard to the future of the new industry, I would like to note that the more this market develops further, the higher the profit that it can generate. Of course, competition will also rise, but if we pay serious attention to our key competitive advantages and care for their development, then the value of our services for clients will also grow too, and consequently, more clients will come to us. But clients will also go to others if they are able to offer them something better. We shall study the experiences of each other’s best practices so that we can jointly develop our common market.


What do clients, first of all, pay more attention to when ordering these services, for example, in your company? 


Sokolova: First of all, the availability of a good business atmosphere, modern technical office equipment and gadgets so that when a client goes into ‘his office,’ everything starts working straightway. The next factor is the availability of a highly professional staff. For example, we have English-speaking employees, who know psychology, marketing strategies and economy, in other words, a staff that can quickly answer any questions without wasting time and instantly help clients. Equally important is an easy access to these services. Therefore, such transportation facilities as the Metro and major roads should be in close proximity. 


Zakharova: It is also important that there are other facilities not only for working, but also for having dinner, etc. So, there should be different types of cafes, restaurants and dining rooms in close proximity. Also important is that banks, etc. should be close by, so that clients can easily go there to make their transactions, when necessary.