What Are Coworking Spaces?
Coworking spaces have become one of the hottest new trends for budding entrepreneurs. These trendy new spaces provide massive benefits for those looking to get their companies off the ground.
To do so, coworking spaces give entrepreneurs access to shared office-like spaces. In these spaces, you may find individuals from several different companies working in close proximity.
So how do these spaces work, and why have they become so popular?
If you’re reading this, you likely know all too well the difficulties faced by up-and-coming startups. Sometimes, the overhead costs of getting started can preclude success.
There was a time when those who didn’t have the capital to rent office space were forced to work from home. And though this option has proved great for some, it poses clear drawbacks for those looking to scale and grow their companies.
Coworking spaces work to fill the gap by providing affordable working spaces in a professional setting to entrepreneurs in need. Business owners can rent portions of these open spaces to have a professional environment for their team to work in.
Unlike traditional office spaces, coworking spaces are filled with individuals from several different companies. Though this may sound off-putting at first, as we will see, it offers several powerful benefits for those looking to jumpstart their business success.
Ready to learn more about how renting a coworking space may be right for you? Consider the information below!
How Do Coworking Spaces Help Entrepreneurs and Startups?
Over the last decade, entrepreneurs have increased their reliance on coworking spaces. But what is it that has made this new work environment so popular?
Join us as we take an in-depth look at some of the most powerful benefits of coworking spaces for entrepreneurs and startups.
Benefits of Coworking Spaces:
- They Cut Overhead Costs
Unsurprisingly, the most powerful—and obvious—benefit that coworking spaces provide to startups comes from their cost-cutting abilities.Coworking spaces prove much cheaper to rent than a full-scale office, and they provide many of the same benefits. These spaces typically come fully-equipped to handle your day-to-day business operations.Because you’re sharing the space, however, you’ll be able to pay a much cheaper price for the same functionality. In a sense, coworking spaces allow businesses to have their cake and eat it, too.While all businesses look to reduce costs, this proves especially true for startups that lack in capital. Businesses that are just starting out benefit from using coworking spaces, as they’re better able to direct funds to innovative expenditures. Ultimately, this allows for startups and budding entrepreneurs to get a solid foot in the market of their choice.
- They Provide a More Productive Atmosphere
Some of the most valuable benefits of coworking spaces remain the most hidden. While it’s easy to recognize the financial benefits of investing in a coworking space, it can be more difficult to analyze the impact these spaces have on company operations.We have good news in this regard. Many companies find that utilizing coworking spaces allows for increased productivity in the workplace.This proves true for many reasons. Namely, coworking spaces enable those who would usually be working from home to have a distraction-free and professional environment. By being surrounded by other professionals, entrepreneurs can better focus on their tasks at hand. Because they are in an environment in close proximity to other hard-working professionals, those who use coworking spaces note that their own motivation levels increase.This increased focus results in a boost in overall productivity. This holds true even for those companies that have more than one employee. By being able to come together to share a professional office space, teams find themselves better suited to accomplish company goals.
- They Offer Flexible Schedules
Coworking spaces have something for the workaholic in you.Because these spaces don’t usually follow typical business hours, employees are able to stay as long as they want in order to get the job done. This allows for more work to be done and can prove beneficial to boosting the business’s bottom line—and to its chances of getting off the ground.By offering flexible schedules, coworking spaces also allow entrepreneurs to expand their search pool for talented employees.
- They Feature a Scalable Work Space
Additionally, coworking spaces remain popular for their ability to provide a scalable work space.What does this mean for you and our business?
In short, it means that coworking spaces allow for expansion. Whether you start out with one, two, or ten employees, coworking spaces should be able to accommodate you as your business grows.
Because of this, many business owners find that they are better able to scale their businesses even in the early stages.
And because these spaces come fully-equipped to handle your office needs, you can make sure that you’re getting the best value for your investment.
But that’s not the only way that these fully-loaded scalable work spaces can help your business. If you’re just starting out, chances are that you have no real indication of how large your company will be in a year’s time. For this reason, it may not be a wise investment to use a full-scale office for your business if you don’t already have a large number of employees.
For this reason, many business owners have turned to coworking spaces as a safer option. In other words, if their businesses underperform, they won’t be out of their money. And if they meet or exceed those same expectations, they’ll have a scalable work space that suits their needs. Ultimately, this means that coworking spaces provide a win-win scenario for businesses of all sizes.
- They Give You Access to More Clients
Did you know that coworking spaces can actually help you connect with the clients you need?That’s right—because you’ll be working around a variety of different professionals from a number of different industries, you’ll be able to gain incredible insight into different markets.
And that’s not the only way you can find clients. Unlike a traditional office space where you’re working with only your team, you’ll be able to inform others of your business. Through word of mouth, you may eventually find that your brand’s top-of-mind awareness has grown.
- They Make for Networking Opportunities
The biggest problem of many startups is that they lack the connections needed to excel in the industry. Let’s face it: it can be hard working up through the ranks alone, and unless you have a ground-breaking product (and sometimes even if you do), it can be difficult to position yourself in the market.That’s why startups should take advantage of the networking opportunities that coworking spaces offer. Simply put, these spaces are filled with several other talented individuals and entrepreneurs who would likely love to partner with your business.
If you are looking to grow your startup’s connections and get your name out there, it’s worth operating from a coworking space. Most coworking spaces offer communal areas where you will be able to freely communicate with other entrepreneurs and small business owners.
Once you surround yourself with others who are working in your field (or in fields related to yours), you will find it much easier to build valuable partnerships and gain clout in the market. This means that coworking spaces offer serious networking advantages for startups who forgo traditional means of operation.
- They Offer Access to a Large Talent Pool
With increased networking comes an increased access to a larger talent pool. Coworking spaces are simply swimming with freelance and entrepreneurial talent that you can use to your advantage.
Need a webpage designed for your company? There’s likely someone who could do that for you. Looking for an excellent copywriter to get the word out for your business? Chances are, a coworking space will have one of those guys, too.
Simply put, startups that choose coworking spaces aren’t simply saving money on operational and overhead costs. They are also saving money by capitalizing on easy access to cheaper talent that could ultimately catapult their businesses to the next level.
If you ever needed any reason to use a coworking space as your startup’s home base, make it this one: coworking spaces provide you with the talent pool you need to get your company off the ground. By finding individuals who can help you set up and advertise your business, you will realize your business goals quicker than you ever thought possible!
- They Drive Innovation
Of course, this means that coworking spaces drive innovation. Simply put, you never know who you will meet at a coworking space. The connections you build and the talent you find could be just what you need to take your product or service to the next level.
Coworking spaces are the birthplace of genius ideas. Knowing this, you should seriously consider a coworking space for your startup. By surrounding yourself with entrepreneurs who are eager to showcase their individual talents and build their resumes, you are giving yourself an opportunity at unprecedented business growth.
Perhaps this is why thousands of startups are turning to coworking spaces on a routine basis to give their companies access to the tools and resources that will ultimately drive innovation and put their businesses on the map.
If you are struggling to take your startup to the next level, coworking spaces may provide that spark you need to truly start entering the market.
- They Provide Access to Professional Gatherings
Many coworking spaces offer access to professional gatherings such as seminars, entrepreneur workshops, and business events. While this access doubles as a great networking opportunity, it is perhaps most important for the educational benefits it can bestow on you and your workers.
When you’re just starting out, it’s important that you do everything you can to learn about your field and the business strategies you can use to master it. For this reason, it’s worth taking advantage of all the educational opportunities a coworking space will bestow you and your business.
By learning tools of the trade and valuable strategies and techniques, you may be giving yourself the competitive advantage you need over other startups who wish to take your share of the market and put your out of business.
For this reason, startups that wish to establish themselves should turn to coworking spaces to learn valuable insider tips and strategies that could lead to future business success.
- They’re Healthier
Want a more personal reason to choose coworking spaces? Studies show that their positive atmosphere and the freedom they provide from daily office stressors leads to a healthier work environment.
Think about it this way: you don’t do your best work when you are surrounded by office drama and constant political bantering. Having somewhere quiet, motivated, and driven is not only a key to boosting productivity, but it’s also important for maintaining your mental and physical health.
If you want to get the most out of your employees and yourself, choosing a high-quality coworking space could be the right move for you. By removing excess clutter and office drama, you will be giving yourself a healthy space in which you and your workers can focus on the task at hand.
What’s more, by staying in the right state of mind and avoiding stress-related physical exhaustion, you can ensure that you bring more to the table every day, spurring business growth and giving your business the attention it needs to thrive.
Therefore, you should consider choosing a coworking space if you are looking for a healthy and positive atmosphere in which to begin your startup.
The Bottom Line
Compared to traditional options, coworking spaces offer a smarter and more cost-effective way to operate your startup.
If you are struggling to find the right location for your business and can’t afford higher-end office options, coworking spaces may be the perfect solution for you. In general, these spaces work to eliminate excessive overhead costs, allowing you to focus on what’s really important.
What’s more, coworking spaces provide you and your business with perfect networking opportunities. By taking advantage of the highly-skilled workforce around you, you will be able to grow your startup and bring new and innovative ideas to the drawing board.
What does all this mean for you? Simply put, it means that coworking spaces should be your go-to option when it comes to beginning your startup. It’s time to go with the cheaper, smarter, and healthier way to do business!
SOMAcentral is a leading coworking space with two shared working spaces in San Francisco. SOMAcentral has been home to hot startups such as Instagram, Mashable, Etsy, TaskRabbit, Grammarly, Twilio, AngelList, Good Eggs, Instacart, Playfish, Getty Images, and countless others. To learn more about our spaces, contact us today!