5 Reasons Co-working Spaces Work Best For Startups
Startup entrepreneurs all struggle with the lack of manpower and financial resources. However, this does not stop them from creating and bringing out a new product/service out to the market. As proven by the likes of Mark Zuckerberg (Facebook), Steve Jobs (Apple) and Elon Musk (Tesla), establishing a startup company is just the first step towards bigger and better things.
This does not mean however that the journey would be easy. Even though tech billionaires prove that it is possible to grow a startup company into a multi-million dollar one, the success rate of startups in the U.S. is only at 10%. The remaining 90% of startups closed shop just after 3 to 5 years of business.
One significant factor of startup success is the right management of funds. With the very limited resources a startup has, founders should be very careful and smart about where they put their money. This, of course, would involve cost-cutting, and this is how the need for coworking spaces come in.
Coworking spaces give startup entrepreneurs and their team a place to converge and work in. Unlike traditional office spaces, coworking spaces are more affordable – making them the perfect fit for a startup budget. Aside from that, there are more reasons why coworking spaces are best for startups, such as:
Provides a good place for networking
A coworking space is the best place to meet like-minded entrepreneurs and skilled freelancers who can contribute to the growth of your company. You can strike partnership deals and even find mentors who can help you brainstorm new ideas and improve your product or the company itself. You can also find talented individuals there that can become a great asset for your company’s growth.
Improves productivity and creativity
Notice how most coworking spaces have a modern minimalist look? This is because it encourages creativity and focus for everyone who chooses to work there. The usual office cubicles are so uninspiring. Coworking spaces give people a spacious work desk, good lighting and even some artful pieces to get inspiration from. Some spaces also have game rooms, cafes, creche, kitchens and nap rooms where workers can rest and recharge themselves.
Provides all the office amenities without additional costs
The good thing about a coworking space is that, with just a fixed fee, you already get an office that is equipped with all essential tools and furniture in it (such as desks, chairs, fridge, printers, etc.). They may also include restrooms, parking spaces and utilities such as water and Internet services. Since these are all provided for, startup entrepreneurs can better spend their funds and energy on improving their business and processes.
Gives legitimacy to the company
Without an office, clients and investors alike may doubt the credibility and future of a company. With a coworking space, startup entrepreneurs can have an official place for meeting clients, partners, and investors who are interested in doing business with the company. It also gives employees an alternative space to work in (if the main arrangement is telecommuting or working from home).
A benchmark for expansion
A coworking space can also work as a temporary office for startups that are transitioning into a bigger company. Most coworking spaces offer a flexible leasing contract where companies or freelancers can just rent a desk on a weekly or monthly basis (no minimum number of years, unlike traditional office spaces and commercial buildings). This way, startup entrepreneurs can save up more funds that can be used for the big transition.
For startup entrepreneurs, renting a coworking space should not be the end goal of the company. Sure, it could mean that your company has a more stable income, but a coworking space only serves best as a temporary office.
It should only be a temporary office because as your company grows, you would need more privacy and exclusivity. Your team eventually needs to hold more frequent meetings, some business processes should be kept private, and you would need more space to accommodate a growing number of employees. These will not do with just a coworking space. By then, you would need to move to bigger and exclusive office space that can best suit the company’s growing needs.
Gemma Reeves is a seasoned writer who enjoys creating helpful articles and interesting stories. She has worked with several clients across different industries such as advertising, online marketing, technology, healthcare, family matters, and more. She is also an aspiring entrepreneur who is engaged in assisting other aspiring entrepreneurs in finding the best office space for their business.