Why Modern Coworking Spaces are Great for Cutting Your Business Expenses

The first step is always the hardest. Starting your own business requires a lot of careful management in all aspects, but, you’ll agree, mostly in the financial one. Once your business takes off you’ll have the freedom to splurge a bit, but until that happens it is advisable to cut costs whenever you can. You can either work from home or rent an office. Having a home-based office may prove extremely difficult when it comes to maintaining a good work-life balance, and renting an office could be costly since you have to factor in expenses for several months in advance, including the rent, utilities, necessary equipment, furniture and décor. Unless you solve both of these issues by opting for a coworking space.

Countries with fast-growing economies are witnessing a whopping increase in renting office space, and such is the situation in India, for example. A shared office is one of the fastest growing trends in the office sector there. Now that information technology is no longer the dominant sector, non-IT companies such as consultancy businesses, telecom, healthcare and the like have expanded and are actively taking up spaces, the need for which will no doubt continue to grow.

The advantages of such an arrangement by far outweigh the disadvantages and coworking providers are rapidly taking up office space. Besides the fact that you’ll have the opportunity to work with like-minded people, exchange ideas and experience, the main perk of coworking is slashing the expenses.

Efficiency Boost

Traditional leases for private offices mean you have to pay for the rooms, design, furnishings, Wi-Fi, apart from long-term leases or deposits. With coworking, all these costs fall under one membership fee which you can adjust according to your requirements. This way you have the opportunity to grow and expand your business at your own pace, and this newfound freedom inevitably leads to efficiency and thus a greater profit.

Location Matters

Never have there been more possibilities for professionals to get an office in a prime location. While working in this cost-effective space, you’ll definitely be at an advantage of working in the center of the corporate hub. In this unpredictable world of business, you need to have that competitive edge over your rivals and be able to react swiftly in order to seize the golden opportunity.

Do Not Underestimate the Little Things

Even though some savings you’ll be able to manage do not seem much when perceived individually, in time they will add up. Try and consider the following in the long run – it’s not a sum you’ll want to neglect. There’s no investment necessary when it comes to furniture and décor, and do not forget that you might also have entryways and conference halls you can use and not have to furnish at your own expense. There would be no electricity costs that spike in the summer months due to air-conditioning, and you won’t have to pay for a high-speed Wi-Fi connection that can go as high as $3,000 per year. You’ll also have someone to maintain your internal networks, and someone to take on the task of cleaning the office. An office kitchenette is pricey to both make and stock, not to mention clean and maintain. Although one saves a lot by not investing in it, all those using it should pitch in a little and at least clean after themselves in order to keep the office pleasant to work in. If your business involves expensive equipment, you’ll greatly benefit from having security on site. Of course, in order for all this to fall into place, there’s a skilled office manager to make sure everything’s in order and everybody’s happy.

The number of people

Small businesses are the ones which benefit the most when it comes to coworking. If you have no more than 30 people on your team, it might be 60% to 70% cheaper to conduct your business in a shared, rented space. Renovating an office you’ll only be using for a couple of years is an unnecessary expense.

Networking

Expanding your business network may be both expensive and time-consuming. And when you do make necessary connections, remote communication or commuting to a meeting may put a strain on your funds. A coworking space eliminates all these issues. This type of environment attracts all kinds of professionals you can establish valuable cooperation with.

Flexibility

Sharing an office doesn’t have to mean that you cannot scale up space as your business expands and the number of your employees grows. There is always a possibility to alter your contract to suit the needs of your company.

Starting your own business is far from easy. Think outside the box this time, and give sharing a go. Your business will certainly benefit from all the money you’ll save by cutting costs this way. The money you can invest in a better future.

Ajay Deep

Ajay Deep is the brain behind Coworking Mag. He founded this website to help startups and aspiring entrepreneurs find a coworking space in their city. He is a successful entrepreneur who started and scaled a bunch of startups – all from shared office spaces. He has visited hundreds of coworking spaces in different countries and is now an investor in this evergrowing idea of developing new coworking spaces. You may reach Ajay Deep at hello@coworkingmag.com