They are many businesses these days that provide coworking spaces, such as WeWork, and SOMAcentral. For many people, coworking spaces were once simply a way to get out of the house, but now they are growing into something much bigger.
There was a time when startups and entrepreneurs were left with no other option but to work out of their family homes. Some made use of public spaces such as coffee shops in a desperate attempt to get some work done. Many simply could not afford to rent an office space because of the large financial investment required-most companies renting out office space require businesses to sign long leases. Therefore, many entrepreneurs and startup business owner were looking for alternative opportunities.
Coworking spaces make a lot of sense because they protect startup business owners and entrepreneurs against all those unnecessary costs. A normal office requires many things, such as conference rooms, communications systems, and costly devices such as printers. All of these are made available in coworking spaces, and startup business owners and entrepreneurs are only required to pay a fraction of those costs.
Eliminating the Unfair Advantage of Large Businesses
The cost of setting up an office makes it very difficult for startups and entrepreneurs to compete with established businesses. This unfair advantage is eliminated by coworking spaces, providing new businesses with a valuable opportunity.
The primary reason for the introduction of coworking spaces was the technology boom. It is now entirely possible for entrepreneurs and startups to obtain affordable spaces that provide everything they may need at an affordable price.
Coworking space is significantly more beneficial to startups than traditional office space. However, it is not only entrepreneurs who benefit from coworking spaces. These spaces offer equal opportunities to just about anyone who decides to make use of coworking spaces.
Depending on the company behind the coworking space, the office may include many other benefits for the entrepreneur or startup. For example, there could be a whole range of professional and personal development opportunities. Also, competing in a volatile industry requires a lot of inspiration. Sharing a coworking space with other business owners can provide entrepreneurs with many ideas to implement in their business.
A Lot Can Be Learned from the Coworking Business Model
Even large corporations can learn a lot from how coworking spaces operate. That knowledge can be used to increase the corporations’ productivity in the workplace.
A lot of research has been done relating to coworking spaces. This research has shown that individuals perform better when in a coworking environment. They feel as if they belong to a team of professionals who are all facing their own challenges as they attempt to run their businesses. This feeling has resulted in an increased demand for coworking spaces because of the increased productivity, greater efficiency, and increased flexibility, resulting in a lot of competition for notable talent. When a coworking space is beautiful and comfortable, located in a favorable location, and provides all of the needed services, it becomes possible to attract talented people who can contribute to the business.
Most of the available traditional office leases require tenants to sign long-term leases on large blocks of space. In many cases, tenants will have to furnish their own space and provide many other things themselves. Coworking spaces, however, don’t require tenants to sign long leases or provide their own furniture.
Property Owners Can Be Ruthless
Many landlords are only concerned with their own well-being, and they try to get business owners to sign extended term leases. The problem with this approach is that most companies simply do not know how their space needs are going to change in the future. Therefore, it is expected that traditional office leases will become significantly shorter and that there will be substantially more demand for flexible office space.
Many things have happened over the last couple of years. There are now better digital services, as well as cloud technology, which is leaving many businesses with no other choice but to reconsider the way they operate. It is expected that the need for traditional office space will continue to decline, and there will be an increasing need for multifunctioning spaces as an alternative for startups and entrepreneurs. Coworking spaces are becoming a very attractive option for many businesspeople.