Coworking spaces offer a number of benefits to startups, including reduced administrative costs and the ability to scale operations as needed. A coworking space can also be good for startups because of networking opportunities and the potential to form partnerships with other professionals.
You can run a startup out of a home office or even a mobile office, but most startup founders like to have access to professional workspaces. While a traditional office can be a great fit for a startup, the cost of traditional office space combined with the need for long-term leasing commitments can often be too much for a smaller startup to handle. This is especially true if you run a startup yourself or you don’t have much operating capital.
Coworking spaces are an alternative to traditional office spaces, and a coworking space can provide a number of benefits that can make them a more attractive option. If you’re a startup founder or are looking for a new workspace solution for your startup, below are some of the top benefits of coworking spaces for startups:
Cost Effective
Startups generally don’t have much capital, making traditional office space leasing an unaffordable option. In fact, according to Forbes, only around 1% of startups receive investment capital. This means that the vast majority of startups are self-funded in some way.
Traditional office space, particularly in a major metropolitan area, can cost many thousands of dollars per month depending on location and amenities. A coworking space may only cost a couple hundred dollars to one thousand dollar per month. This is generally more affordable for startups that are just beginning to get their footing in an industry or region.
Reduced Administrative Burden
Coworking spaces can also reduce administrative costs. When a startup leases space in a traditional office building, rent is only one part of the equation. Paying for things like copy machines and supplies, telephone and Internet services and more can all eat into a startup’s budget rather quickly.
A coworking space may provide administrative services as part of a leasing package. Services like phone messaging services may be included in a coworking space lease, and most coworking spaces offer access to things like copy and fax machines along with Internet service. These benefits can greatly reduce costs for startups while still providing a professional workspace and amenities.
No long-term lease commitments
Coworking spaces typically require shorter leasing commitments compared to traditional office spaces. According to Business News Daily, a traditional office space lease is usually between three and five years. This kind of commitment can be fairly large for a startup that is still trying to work out its long-term plan.
Coworking spaces often offer month-to-month leasing options, and some even provide daily or even hourly rental options. This means that a coworking space can be a flexible option that doesn’t lock a startup into a long-term contract.
Networking Opportunities
Coworking spaces serve as the workspaces for many types of professionals in different industries, but most will be local to the area in which the coworking space is located. This means that joining a coworking space can open up networking opportunities with local professionals, and the potential to form partnerships exists. In a traditional a office space, startup team members may still have the ability to network with nearby businesses, but coworking spaces make the process much more efficient.
Access to Resources and Mentorship
Because of the aforementioned networking opportunities, startups may gain greater access to resources and mentorships by leasing a coworking space. The ability to meet and learn from experienced business professionals can be invaluable to startup founders since the very nature of a startup generally means that the business is young and in need of guidance. A traditional office space generally will not be able to provide these types of opportunities or access to resources.
Work-Life Balance
A coworking space may be able to provide a better work-life balance compared to working in a traditional office space. Coworking spaces tend to be more open and relaxed compared to traditional offices, and this kind of environment may be less stressful.
Additionally, coworking spaces may be located away from city centers, meaning traffic to and from a coworking space may not be as heavy. This allows startup workers to deal with less stress during their commutes. According to Psychology Today, traffic during a work commute can be a major source of stress. A startup that uses a coworking space just for meetings and networking with remote employees may not even have to deal with much traffic at all.
Instead, the coworking space is used as an extension of the remote network for special occasions or weekly or monthly check-ins. This means startup professionals can spend more time doing what they need to do without having to deal with a lot of office stress.
Scalability
A coworking space offers the ability to scale more efficiently compared to a traditional office space. In a traditional office space, businesses are generally limited as to how many people can be in the workspace. Long-term leases also keep companies from having the ability to expand to new areas with ease. Coworking spaces remove many of these barriers and allow for easier scalability of a startup.
Professional Image
Maintaining a professional image when running a startup is important, and using your home address is generally not a good way to put your best foot forward. Most coworking spaces allow their addresses to be used by tenants as the official addresses of the companies that are leasing spaces.
If you run a startup, you can present a professional image by using the address of your coworking space as your company address. Since most coworking spaces tend to be in areas zoned for commercial use, this lends credibility to startups that use these addresses.
Professional Amenities
Coworking spaces often provide access to professional amenities that you may need to pay extra for in a traditional office space. For example, a coworking space may offer onsite IT support staff to help with certain networking issues. In a traditional office space, it is usually up to the tenant to pay for their own independent IT personnel.
Frequently Asked Questions
Startup founders who are considering coworking spaces are encouraged to do research before deciding on a solution. Below are some frequently asked questions and answers about the benefits of coworking spaces for startups to provide some direction:
How coworking spaces are ideal for entrepreneurs?
Coworking spaces can be ideal for entrepreneurs since coworking spaces typically come with lower costs and rental commitments compared to traditional office space leasing. A coworking space can also be a place to meet like-minded local professionals with whom you can network and potentially form business relationships.
Do coworking spaces increase productivity?
Coworking spaces can increase productivity for some startup founders and entrepreneurs, but for others, they can be a hindrance. If you’re the type of person who prefers to work alone in a quiet environment, a coworking space may not be for you. These spaces tend to be a bit busy, and since most coworking spaces place all tenants in a shared common area to work, there may be some office noise and privacy concerns to contend with.
On the other hand, if you’re the type of individual who thrives in a busy workspace surrounded by people, a coworking space may provide a better work environment and opportunities to network with others. Some coworking spaces may provide access to private offices or conference rooms, but these are usually only available on a short-term basis.
Is it a good idea to work at coworking spaces?
Working at a coworking space can be a good idea if you want to maintain a professional work environment, have access to an official commercial office address and have access to networking opportunities. Coworking spaces can also be a good idea if you want to save on costs over traditional office leasing.
Coworking spaces may not be a good idea if you need a private, quiet workspace. You may also not like coworking spaces if you want the freedom to decorate and arrange your workspace as you see fit. Most coworking spaces are limited in how much freedom they allow tenants to customize workspaces.
Looking for an office in the city? Corporate Suites offers furnished office spaces, virtual offices & conference rooms in several prestigious locations across New York City.
