Half of all start-ups fail in the first couple of years, largely due to the excessive costs of running a business. Therefore, a new idea of coworking offices emerged in the past several years. The number of shared office spaces is expected to grow at a steady pace of 22% per year. Like-minded entrepreneurs are choosing coworking over traditional office spaces for a number of reasons. We created a list of the main reasons why a shared office space might be ideal for your start-up.
Renting a traditional office in one of the prominent streets in the business district in any city can be super expensive. Not only the rent itself (plus the deposit) but also utilities, internet, office supplies, furniture, rental insurance, and many other obvious and hidden costs. That’s why many people turned to work from home or from their local coffee shop.
While working from home is a perfect way to cut costs if you live by yourself, but if you have a family, roommates, or nosy pets it’s usually not doable for a prolonged period of time. Cafes are nice, but they have a downside too. Internet connection is unreliable, space can get very crowded and noisy, and it’s not for free since you would have to order at least twice during the day, which can definitely make a dent in your monthly budget.
On the other hand, for a couple of hundreds of dollars per month, you can get a coworking office space with a fast and reliable internet that comes with other free amenities like coffee, a fridge for your lunchbox, 24/7 access and some will even throw in a free mailbox. By visiting one of the websites like Justco Global you can shop around for a plan that best fits your needs. Plus, no more signing long-term leases, since shared offices are usually paid on a month-to-month basis.
That being said, this kind of pay-as-you-go financial flexibility sounds like a perfect match for a start-up business.
2. Building a network
A couple of decades ago start-ups were mostly driven by young people trying to find their place in the market. Today, the community is much more diverse consisting of people of all ages and occupations.
Sitting by yourself in the coffee shop can create that nagging feeling of isolation and sometimes even depression. However, working with other people can make you feel like you are part of something where you can meet many different people at the various stages in their careers. Rubbing elbows with people who work in forty or fifty different companies gives you plenty of opportunities to develop either working or friendly relationships that might help you in the future.
It’s a perfect environment for sharing ideas and maybe even finding inspiration. So, besides being a foundation for building a network of people it’s also good for your mental health. Win-win situation.
If you were renting office space you would probably be deprived of many amenities that big companies consider a must. To supply your working space with all the equipment you new business needs will most likely take thousands out of your pocket. Coworking communities have already set up their spaces with the latest gadgets, modern amenities, and services.
If you have a need for conference calls with your investors or clients, shared spaces have meeting rooms at your disposal at any time. When you need to take a break, there are lounges, nap rooms, and outdoor balconies available. Even private phone booths. Also, office furniture is provided like electric desks and dry-erase walls. As an added bonus, you get free coffee and fruits and a fridge and a microwave for your lunch.
That’s a big bang for your buck. All of this comes to one invoice, so your operating expenses are consolidated which will make preparing your taxes fast and easy.
4. Room to grow
Start-ups are just that, new businesses that usually include only one or two people. When that new company begins to grow, the number of people increases as you start adding different departments. That means that your parents’ garage or cramped up office at the strip mall is not going to work anymore. Then you move in a little bigger space, which in a few years is going to be too small. And so on.
Moving your business all the time is going to give you a lot of stress and anxiety, plus, changing your business’ address often makes you look unprofessional. And then, there are moving costs which can amount to a hefty expense. Taking all of this into consideration, renting a coworking space makes perfect sense. You might never have to move, just add a few desks on your monthly invoice and you’re set.
As you can see, it also saves you a lot of time since your new employees can start working right away.
Many coworking offices organize so-called networking events. A few times a year events are set up where people from the shared working spaces can mingle. These are not necessarily cocktail parties; it can also be arranged as workshops or roundtable discussions. Such events can possibly provide you with invaluable connections to increase your exposure to industry leaders or investors, and to maximize your productions. If you decide to rent a coworking space make sure that you don’t miss out on this because it can sometimes really be that one push that you need to launch your company into the orbit of the big players.
Start-up enterprises cannot bear the huge costs that come with renting an office space. They usually begin with zero-to-none investments and work tirelessly in hopes that someone will spot their potential. Working in your basement will not get you far, not only because it’s depressing, but you are depriving your ideas to be heard and hopefully grow from there. And then, there’s one more thing for all of you single souls out there.
Coworking spaces can be a fantastic fishing pool, so don’t forget to turn on your charm and cross your fingers.