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Toggles:

“Today, most of companies implement lower ratios employee/available seat. Coworking spaces now provide 1.2 badges per seat because they also have large additional spaces where people can work without occupying a private office.” – According to Jérome Justin, CEO @ Ival

 

Use this tool made by Ubiq to calculate the space you need according to your growth plan.  

Do you have a higher rent than market practices? If so, you can easily negotiate with your lender. Paris Centre is still in demand because many companies prefer to rent smaller but central offices rather than larger ones in the suburbs.

However, some landlords prefer to secure against rental risk in exchange for a lower yield… In other words, if you commit for a several years, I can try an approach even in a tight area.

 

Did your lender made mistakes? 40% of the leases have anomalies. If an error is committed such as error in the indexation of the rent, re-invoicing of charges not provided for in the lease, … Then possibility to recover the cash over 5 years.

If you have too much space or too many seats, don’t hesitate to sublease seats. There is plenty of companies looking for offices for few months. Be careful though, it can be difficult to manage if your activity need privacy or if you make developers and sales cold callers live together…

Even if the co-working cost is higher, it can be more profitable for 3 years depending of staff variation. In a classical lease, if people headcount strongly grow, you have to move to new offices and this generate a lot of CAPEX… (refurbishment, decoration, moving relative costs…). Whereas using coworking will allow to have access to other offices as my business grows. This shift typically occurs around 4 years. Therefore, it’s important to consider this duration when signing a traditional lease of 3/6/9 years. Predictability of staff and work modes that allow for densification of my spaces are the two key points to consider.

WEWORK, MYFLEXOFFICE, DESKEO, MORNING, GUSTAVE COLLECTION, WOJO, SPACES, NEWTON OFFICE… They are all developing new coworking spaces. Check the newest ones, the price will be more attractive. Example :
[PAR] WeWork Promotion Spéciale: 3 mois offerts pour 12 mois d’engagement

WeWork

[PAR] WeWork Promotion Spéciale: 3 mois offerts pour 12 mois d'engagement
We don’t recommend it unless this is your last resort. Expectations on offices increased sharply to offer a unique experience that can’t be replicated remotely. The office is expected to provide an environment that supports the wellbeing and productivity of employees in the best way possible. 
 

 

“Geographic location is a key factor in recruiting and retaining talent, which is why companies prefer to take less office space but more central one and with additional services.”
Arnaud Paquet, Real Estate Fund Manager @ AXA Investment Management

Maintaining your people costs means that you freeze hiring but continue to replace your employee turnover. As tech startup turnover is pretty high comparing to other industry, this means you still have talent acquisition work to do. Check out our “Still Hiring?” section to get tips on hiring. 

 

You can take advantage of this lower hiring period to make your HR team work on key topics such as retention, career paths or training policy. Check our article on tribes on how to structure your HR team here. 

This is the hard part. Downsizing your workforce means that you don’t pursue trial periods or short terms contracts, you don’t replace turnover, and, ultimately, layoff or reduction in force. It’s important to first think about either a person can be transfer to another department. Layoff is to consider when positions are not needed anymore. 

 

Before considering layoffs, here are some options you can consider to reduce your HR costs:

 

  1. Delay or freeze hiring: Can you move hiring resources to a different quarter? Look at the headcount to delay or reprioritize hires.
  2. Reset the senior/junior employee ratio: Depending on the company, senior leaders should make up less than 5% of the headcount of your organization. If it is significantly higher, explore ways to close the gap between the compensation of senior and junior staff.
  3. Decrease perks, travel, and expenses.
  4. Salary cuts: Especially at the senior level and for those with variable on-target earnings.

This is particularly important for demonstrating support during this difficult time in your employees’ journey with your company. Sharing resources to help them find new work opportunities, such as jobs or training, will make it easier for them to move on.

 

Here you’ll find all the relevant XAnge resources that can be shared to departing employees: 

 

  • XAnge job boardRedirect them to our job board portfolio to help them find new opportunities.

  • XAnge Talent community: This is a community of talents open to all leaders and Head of HR of XAnge startups, bringing together talents selected by their support team. This community allows XAnge to promote profiles as soon as a Head of / C-levels opportunity arises within its companies.

 

You can also redirect them to other VCs and incubators jobboards such as Station F, 50 Partners, Hexa, Alven or FoundersFuture

 

Some recruiting agencies have talent programs, startup-oriented, that you can share with departing employees such as AvizioElinoï, Ignition Program, SplendUp, …

 

In 2022, compensation skyrocketed and the balance of power shifted to favor talents rather than companies. This downturn and market uncertainty could be an opportunity for startups that are still hiring to attract laid-off talent with great potential.

 

We’ve seen a lot of layoffs in Big Tech and Scale-ups. It can be hard to determine why certain employees were let go, and whether or not they were high performers.

Here’s a way of navigating this new available talent market (yet not a definitive rule):

  • In smaller companies, layoffs are often scattered and less widespread.
  • However, in larger companies, layoffs can affect hundreds, or even thousands, of employees. Sometimes, entire teams or squads working on specific projects can be cut off. As a result, there is a greater chance of having A-Players (as referred to in the book “Who: The A Method for Hiring”) available for hire. These individuals may be forced to reconsider their desired compensation to adapt to the job market. This presents an opportunity to acquire talented employees for a lower cost.

Where can I get updates on layoffs at startups? The best resource to date is the Layoff Tracker. You can also get access to the lists of employees here

ex. Table:

🏆  Top 10 Grants & Subsidies according to  Jérémy Ohayon

 

 Grants and subsidies (Top 10) Funders Frequency/Time in the year Startups Scaleup SMEs
 Bourse French Tech BPI France As time goes on       
 ADI (PRDI ou Avance récupérable) BPI France

 As time goes on

 (Best time: just after fundraise)

     ⚫     ⚫   ⚫
 PAI (Prêt d’amorçage) BPI France

 As time goes on

 (Best time: just after fundraise)

     ⚫     ⚫ 
 ADD (Aide au développement Deeptech) BPI France As time goes on     ⚫     ⚫ 
 iLab BPI France
 MESR
 Every year, 1 call / year     ⚫  
 iNOV BPI France
 Ademe
 Every year, 1-2 calls / year     ⚫     ⚫   ⚫
 Innov’UP BPI France
 Région IDF
 As time goes on     ⚫     ⚫   ⚫
 Innov’Up Leader PIA BPI France
 Région IDF
 Every year, 1-2 calls / year     ⚫     ⚫   ⚫
 EIC Accelerator UE Every year, 2-3 calls / year     ⚫     ⚫   ⚫
 1er Usine BPI France New Grant  (1-2 calls / year)     ⚫     ⚫   ⚫

🏆  Top 10 Grants & Subsidies according to  Jérémy Ohayon

 Grants and subsidies (Top 10)  Funders  Frequency/Time in the year  Startups  Scaleup  SMEs
 Bourse French Tech  BPI France  As time goes on          
 ADI (PRDI ou Avance récupérable)  BPI France

 As time goes on

 (Best time: just after fundraise)

               
 PAI (Prêt d’amorçage)  BPI France

 As time goes on

 (Best time: just after fundraise)

             
 ADD (Aide au développement Deeptech)  BPI France  As time goes on      ⬤      ⬤  
 iLab  BPI France
 MESR
 Every year, 1 call / year            
 iNOV  BPI France
 Ademe
 Every year, 1-2 calls / year      ⬤      ⬤    ⬤
 Innov’UP  BPI France
 Région IDF
 As time goes on      ⬤      ⬤    ⬤
 Innov’Up Leader PIA  BPI France
 Région IDF
 Every year, 1-2 calls / year      ⬤      ⬤    ⬤
 EIC Accelerator  UE  Every year, 2-3 calls / year      ⬤      ⬤    ⬤
 1er Usine  BPI France  New Grant  (1-2 calls / year)      ⬤      ⬤    ⬤

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They support XAnge in accelerating portfolio companies’ growth

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00.00.2023

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