Whether you own a small business just starting out, are a large one looking to cut costs or a freelancer on a budget, there is one common crucial factor in succeeding or going under - and that’s saving on overhead.
This can be an insurmountable task when you look at the requirements; renting a workplace, buying equipment, outsourcing, etc. But it doesn’t have to be, thanks to modern co-working spaces.
The concept is pretty simple - several entrepreneurs, freelancers, or startups working under the same roof. It has many advantages, but the main one lies in cutting your business expenses. Maybe you think you’ll be paying for a bunch of things you won’t actually need for your work and that renting a small office would be a better solution.
But renting always involves a big investment of time, money and resources. On the other hand, co-working spaces have a bright future since they cost up to 40% less and relive the pressure of housekeeping, phone, internet, and electricity bills.
A Rising Trend
Modern co-working spaces are a rising trend which exists in top cities across the globe. As we’ve said, you can save up to 40 percent of your business expenses, and this percentage depends on whether the city is densely or less populated. The biggest gain is present in densely populated countries with rapidly evolving markets, India’s office real estate being a great example. From 2017 to 2018 the cumulative co-working space marked increase from 1.11 million sq ft to 3.44 million sq ft in this country alone. While in less populated cities savings are not that high, modern co-working spaces still relive you from office management headaches such as ongoing bill payments.
While you’re sharing the space itself you’re also sharing the expenses of that space, which is why co-working spaces are equally beneficial for both - small businesses starting out and larger ones looking to downsize their expenses. You won’t be spilling cash on a private office or an entire floor for your employes, but sharing the cost of an entire building with everyone else who’s using the co-working space. With extra rental expenses gone you’ll be able to devote these funds to more pressing business matters. Since most of co-working office buildings are built for easy workflow and diversity you’ll be able to choose from several different styles without the need (and cost) to customize, meaning all you have to do is to know what you’re looking for.
Although often overlooked, the utilities are necessary for running a business and their cost can also easily pile up, so sharing them is also an undeniable advantage. Additionally, if some unexpected error leaves you high and dry you won’t have to deal with it alone since you’ll be backed up by a collection of businesses looking to see it fixed.
All the advantages at half the cost
Rent and utilities are not all the expenses you’ll be sharing - other advantages will come at half the cost, too. Decorating your office space is not a small investment and many business owners are forced to downgrade the quality of equipment to make up for the cost. With co-working spaces, you get a higher quality with reduced costs. Just think of the simple stuff - desk and computers. All employees need to have one, so stocking a workplace just with these necessities can turn into a pricey adventure. Co-working spaces make money by offering the greatest ease to their customers, so they’re already equipped with desks, chairs, and necessary tech equipment.
If you decide to make some changes - going for personal cubicles as a more traditional approach, for example - you can also let the co-working office handle this instead of buying yourself. Since there’ll certainly be other workers besides your employees using that space, the rate you’ll be charged for equipment will be significantly reduced.
In the end, we all know the advantages of conference rooms when it comes to setting a professional tone. Renting a professional one can cost a fortune, not to mention, about finding the right location. But the majority of co-working spaces are fully fitted with several conference rooms, so you can easily rent one a walking distance from your place of work at, again, greatly reduced cost.
Saving money is tightly connected with making money, and better collaboration between your employees can boost your profits substantially. Co-working spaces encourage this collaboration, making interaction, communication, and brainstorming much more efficient and easier. Furthermore, since co-working spaces attract various professionals from various business fields there’ll always be different niches nearby. The value of solid connections and outsourcing is undeniable, but finding and making those connections can be expensive, exhausting, and time-consuming. Remote communication and commuting for business meetings also cut into your overhead funds. With co-working spaces, both of these issues are eliminated in one.
As you can see, it’s all about simple math. Co-working spaces not only allow you to split the rent and utilities but also the costs of equipment and even modifications. On top of that, productivity is on the rise and no one has to deal with any one problem alone.