There are several advantages attached with co-working spaces that range from cost savings to flexibility and more. The flexible office space in India is anticipated to cross 10 million square feet mark by 2020. The demand for the coworking office spaces has tripled now as compared to the year 2014. Mid and small -sized companies, especially startups, are the largest occupiers of this kind of office space. We look at some of the unique benefits of co-working spaces:
1 Cost Savings: There is significant cost savings involved with a co-working space. The rent charged by the co-working space provider is on a per desk basis and even that can be broken down to per day basis. Hence office space can be hired on a day-to-day basis instead of paying for the whole month. According to property consultancies, the cost savings can be 25-30 percent as compared to traditional leasing of office spaces. While it makes perfect sense for start ups and freelancers to opt for co-working spaces to keep a check on their rentals, some of the large corporates have also started to occupy co-working spaces to save on office costs.
2 Flexibility: Co-working offices offer unmatched flexibility to the tenants. The spaces and prices are mentioned by the provider on per desk basis. Desks can be booked for a few hours or few days also. This aspect is of great help to small business and startups as they can move out to a bigger place when they require. In traditional office leases, the rent has to be paid for the whole month where the office (employees) work for only 5-6 days in week. Hence rent outgo continues even on weekends. In co-working spaces, the required number of desks can be book only from Monday-Friday and the rent for the weekends that would otherwise have been charged can be saved.
3 Collaborations & Talent Acquisition: The co-working offices are full of freelancers and young people and any occupier can collaborate with any other occupier for a certain job or task or for the whole business. There are huge collaboration opportunities available within any co-working space. While a co-working space is not necessarily occupied for acquiring the right talent for business, it so happens that right people often come together in a flexible office and that is another great advantage of such spaces.
4 Events: There are various events organized from time to time in a typical coworking space. These events can be on subjects like digital marketing, business expansion, legalities involved in a certain business or industry type, etc. These events are of immense importance to the occupiers of the flexible office space as they can gain insights on various aspects of running or expanding their business. These events also lead to collaborations sometimes. There have been times when start-ups, occupying a co-working space, have also found investors through such events.
5 Location: The co-working offices are usually located at central place and in premium buildings. This means the occupiers can flaunt their office address or at least create a good image for themselves in the minds of the clients or customers. Since most co-working offices are located at central location, it is easy for the occupiers to commute also. Having one’s own traditional office in a centrally located place of the city, especially in a metro, may not be financially viable for a small company otherwise. Location advantage also helps in more frequent meeting with clients and vendors as they are willing to come to a central place for discussions.
6 Immediate Start: Co-working spaces lets a business quickly start operations without having to worry about getting electricity, internet and water connections or getting these things fixed before business operations commence. A businessman or a startup can simply plug in the laptops after moving into a coworking space and everything else like photocopiers, stationary, tea or coffee is made available by co-working space provider. This can be of great advantage to businesses as they need not fret over things like hiring a receptionist, security guards, etc. The pantry of a flexible office space is usually well stocked and team members of the startup occupying the space can get tea, coffee or snacks any time of the day without having to hunt for a restaurant close by office.
7 No Security Deposit For Leased Property: In a typical office leasing option, the tenant is required to commit to a certain duration of stay. This ranges from 2-10 years and may be a huge deterrent for a small business. There usually a large security deposit also in typical leases. A startup may not have the wherewithal to lock a huge amount as security deposit. The startup would rather use the same amount for carrying on the business.
8 Scaling Up To Match Growth: The co-working office set up helps a new business to move a better property or office quickly without having to pay compensation to the landlord in a typically leased office. Start-ups many-a-times see phenomenal growth and that means they have to hire staff aggressively. To provide office space to all the new employees, such start-ups can quickly move to a new address as there is no commitment to a particular co-working office and that is a great advantage for them. Many new age businessmen prefer co-working offices for this reason.
9 Virtual Office Advantage: Most co-working space providers also offer virtual office option in which even though a company may not take even a single desk in the office, the address of the co-working space can be used by the company as its own address by paying a small fee to the co-working space provider. Such a tenant becomes a virtual tenant of the co-working space provider. All mails and telephones of the virtual tenant are received by the co-working space provider. This can be of great advantage for a company which does not have physical presence in a city or country but can still tell its clients that it has office presence close to them.
10 Enhanced Productivity: There is usually greater productivity in a co-working environment. There are usually young people working in a flexible office and their energy levels travel from one end of the office to another and that often results in higher output and productivity.
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