Why Working in a Coworking Space Is Ideal for a New Startup

Many startups choose to work in coworking spaces these days. The trend is gaining momentum each year, and more and more startups elect to work for longer periods in shared working spaces before moving to a dedicated office. The following are some of the most important reasons for this new trend.

Fierce Competition

Shared Incubator Hubs

Any new startup will find the competition to be extremely fierce and even hostile. New businesses need to do their market research very carefully to ensure that there is a viable place for them in the community. There is also the issue of startup capital to cover the overhead of the business until such time that it to stand on its own two feet financially. Statistics show the harsh reality: 50% of all startup businesses will fail in the first two years. Therefore, any action that can be taken by the owner to reduce the operating costs can help the business have cash on hand for more important things. That is exactly why sharing a coworking space can be of tremendous benefit, especially during that time when a business is still struggling to stand on its own two feet.

The Case for Coworking

In many industries, coworking situations are frequently encountered, especially among startups. In most cases, a businessperson will pay for a membership, the cost depending on a wide range of options. You may require a certain number of seats to run your business successfully, or you may require one or more dedicated desks to do what you need to do. In such a coworking space, there are often things such as printing services or a variety of beverages for the convenience of people working there. There will also be telephone services that are then debited to the various businesses using the service.

Such a coworking space provides a new business with many benefits. There is no need to rent expensive offices or purchase office furniture and other important resources that normally needed to run a conventional business. The cost of those expenses is saved by using a coworking space, which is often the saving grace of a new startup. In fact, coworking spaces can make the difference between success and failure in a very competitive environment. There is also no need to commit to long-term leases as far as office space is concerned.

Looking at the Situation Objectively

Obviously, the most important reason why startups should consider a coworking space is that it provides a more cost-effective way of doing business. If the startup owners don’t find an effective way to curb excessive spending, they may very quickly find themselves in a situation where the startup’s capital is exhausted, and refinancing may not be a viable or cost-effective option because the potential of the business may not be sufficient to seriously consider additional finances.

It is important to approach the issue of coworking space with the necessary care, and several things have to be taken into consideration, such as the expected monthly costs. Furthermore, business owners should look at the value that can be derived from that coworking space, such as how much space is available and how many people can fit into that available space.

Basic Business Necessities

To run your business successfully, you may need meeting rooms and other office equipment. Another very important consideration is the future growth of that startup; therefore, the shared office space should be sufficient to allow the business to operate efficiently. In some cases, the target market of the startup might change, especially when market research has not been done properly, resulting in a location choice that later turns out to be less than perfect for that business. This situation may require the business to relocate to another part of the city where it will be closer to its target market. Such relocations can be very expensive, and once again, the option of shared office space could enable the startup to continue normally, something that would not be possible if conventional offices are leased. The problem is that there may be so many uncertainties when starting a new business and so many things for which there might not be a definite answer.

Many Things to Consider

Even though shared office space can be a wonderful solution, it is important that they provide all the things the startup requires. There needs to be scanning and printing options, an internet connection, and appliances for making coffee and other beverages so that things are civilized and comfortable. When it comes to conventional office spaces, business owners may have to run around and search for all the things needed to run that business successfully. Finding all those things can be time-consuming and expensive, but all of this can be avoided by finding adequate coworking space from which to run your business.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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