Benefits of a Coworking Space for Startups
Housing your business is tough, especially if you’re on a limited budget. Fortunately, there is a rental alternative that might just save the day. Learn about what a coworking space is and find out if it suits your needs.
A basic tenet of business is good stewardship; you first learn how to spend money before earning it. Drafting a budget is a vital component of turning your business dreams into reality. You need to track cash on hand, business expenses, and how much revenue you want to attain.
It’s safe to say that starting a business involves a lot of headaches in budgeting; from raising enough funds to build a business from the ground up, to creating enough momentum to sustain it in the long run. This is no easy feat especially if it’s your first time running a startup.
Here’s a list of the primary things to consider in budgeting for your startup:
- Office space rental
- Equipment and supplies
- Business network
- Licenses and permits
- Back-office staff
- Employee salaries
- Advertising and marketing
- Market research
- Company merchandise
- Making a website
Clearly, it’s not a walk in the park to check off all the necessary expenses for building your business. And one that would take up a large chunk of your budget is the setup of your work. You need to establish the right set-up for your operations.
Whether you’re hiring a team of two or managing a larger group of ten, you need to find a suitable working space for them. Office space and work culture play a huge role in stimulating your employees’ productivity.
No one wants to work in a cramped room with unreliable facilities. Your employees’ comforts are just as important as your other business resources.
But how can you get the luxury of a great work environment on a limited budget? Simple, you choose the more flexible option, a coworking space.
What is a coworking space?
A coworking space is essentially a shared office space that offers complete amenities with flexible setup. Tenants have the option to set up their own team arrangements on their terms.
Unlike a traditional office rental that requires business owners to sign for long-term leases, a coworking space allows a company to rent the space even for a short period.
It eliminates the need to commit to a large and costly building rental while gaining access to facilities. This is most ideal for freelancers, entrepreneurs, startups, and small teams.
Features of a coworking space
Most coworking space comes furnished, already equipped with basic elements such as WiFi, printers, conference rooms, and desks. Some spaces even offer startup resources such as digital assets and even a large network of business mentors.
High-end coworking spaces feature the most cutting-edge technology such as 3D printers and other automated control systems. And more humble platforms offer just a desk and internet.
The Cost of Coworking
To get a better idea if a coworking space fits your budget, here’s a sample breakdown of the possible expenses you’ll have on your plate.
Keep in mind that if you’re from an upstate area like New York, rentals can be higher. You also have to consider the number of amenities you’re getting. Remember that some spaces provide only the bare minimum of seats while some go big and grand with their facilities.
Generally, the average monthly rental of coworking spaces cost around $300 in the US. You can also choose the cheaper alternative hot desk (open seating) which costs around $200. Make sure to compare rates and amenities. Some spaces tend to up their prices when they’re in a prime and convenient location.
The payment terms of coworking also differ from traditional rentals. Instead of pouring a pricey amount in renting a single private office, you get to share the expenses with other coworking members.
The costs of building maintenance, utilities, Internet, and office equipment are divided among tenants. Hence, you don’t need to pay a hefty amount every month for non-essential expenses.
The Coworking Community
Another thing worth mentioning about coworking spaces is that coworking and networking go hand in hand. One place shared by different people is bound to lead to regular interactions, thus expanding your circle of connections.
A coworking office is a great place to foster relationships with other startups. Humans are naturally interactive and ideas are developed between conversations. In this collaborative environment, you not only increase productivity, but you get to expand your business connections.
Being part of a coworking community allows your employees to get first dibs on business events and functions. Coworking spaces are first in line to host seminars and training for entrepreneurs.
Renting a Coworking Space
Now that we’ve learned what it’s all about, it’s time to discover how to find coworking space in your area. This may pose a challenge if you’re not deeply rooted in connections or very familiar with your place.
However, there’s already rising demand for office spaces due to the popular concept of remote working, coworking, and startups. You’ll discover that there are plenty of coworking spaces all over the US. WeWork and Regus are some of the more popular names in the coworking industry.
If you have a certain location in mind, you can narrow down your searches by using platforms like Yelp, FourSquare, and FreeOfficeFinder. These sites will help you locate the nearest coworking space and give you information about their services.
Lastly, if you can’t find a coworking space that suits your needs, you can consult other startup experts for reference. If you want to learn more about coworking or remote work in general, Full Scale can guide you through it.
Full Scale is an expert in setting up remote work arrangements for various businesses. We are in the technology business offering various services in web development, graphic design, marketing, and project management.
Our founders Matt DeCoursey and Matt Watson are veteran entrepreneurs who have successfully launched their businesses by leveraging technology for a modern work setup. They’re passionate about helping aspiring entrepreneurs reach the peak of success in their business.
If you want access to a large pool of talents or affordable software development services, contact us today!