How Coworking Spaces are the future of business

To work with the like-minded and ambitious individuals in an atmosphere structured for this purpose defines a coworking space. It gives a perfect office environment and makes a lot of sense for startups and freelancers and also for the established businesses. These collaborative environments often create inspiring ideas and networking opportunities boosting productivity and satisfaction.

This is the reason that coworking space has become popular, especially in the past few years it has taken hold across industries. Coworking spaces offer the amenities expected from a modern-day workplace environment at a fraction of the cost.

Few facts on coworking space -

78% of people who work out a coworking space are in the age group of below 40 years.

72% of Indian entrepreneurs are in the age group of below 35 years.

The 5 major benefits of a coworking space:

In this competitive space, quite a few start-ups have started thinking of an alternative business model to compete against existing co-work businesses in India. Our analysis and experience suggest the following key measures that need to be taken care to make a profitable coworking business:

Cost-saving

Setting up an office needs a certain amount of money for a fixed number of years and deposits towards the lease of the space, infrastructure, and utilities, equipment and amenities in order to meet the daily requirements of the office. But with a coworking space, there are various options that can be explored so as to cut down on the cost. Working out a coworking space helps eliminate all these responsibilities and all you pay for is the space, already equipped with everything you might need, at a reasonable cost.

Structure and discipline

Flexibility is required to maintain a balance at the coworking space. Working in a coworking space eliminates all sorts of distractions that may be caused while working from your garage, home space, or a coffee shop. It is always a good idea to keep your personal life separate from your work life.

Effectiveness and productivity

Coworking space with its environment motivates individuals working towards achieving their goals, and this inspires those around them to work harder and drives them to make their business a successful one. An office environment creates an energy and mindset that can only come from interacting with fellow workers. In a coworking space, where everyone is busy on their own passion projects, this buzz will drive you to make your own business a success.

Networking and collaboration

Working alone places a barrier between you and the people who could potentially help your business. Coworking puts you near people who might have vastly different skill sets or solutions to problems, allowing you to "pick their brains". If you can find a coworking space that aligns with your field of work, it makes this benefit all the stronger.

Flexibility

With the concept of a hybrid between a big coffee shop and shared office space, individuals can choose the work environment they think would be best for them. They have more freedom to work in a quiet space to focus or in a shared space to allow collaboration and interaction.

FAQ

What to consider before planning to invest in a coworking space business model?

• Size matters - Size of the workspace is extremely crucial when measured against the occupancy rate. If the size of the coworking space is small it is extremely difficult to cover up all the costs. Whereas in a large size space the occupancy rate is comparatively higher and thus the chances of profits are higher. This is for the technology coworking business running during normal office hours.
• Location - It is the location and other facilities that the coworking space is dependent on. If space is not centrally located it is hard to attract a large number of tenants even if space is large.
• Competitive price model - It is important to keep a competitive price against your competitors in the local market. If the price goes high then people will not even go there in the first place and if the price is set too low then people start doubting the offering. A workspace with great services and a competitive price works well in the market.
• Minimal operational cost - Keeping a check on the cost is a very important factor for the existence of the company. If there are too many managers, organizers or the maintenance guys to run the space the operational cost might go high. Therefore, offering good quality services at a minimal cost is very important.
• Upscaling business - A coworking space can't grow larger than a certain size in one place, therefore, it is important to upscale the business by setting up different units in different locations in the same city or in different cities. Proper research and high measures should be taken to set up the new workspace. It is advisable to rent an office than to purchase it. If the workspace unit is not working out or hasn't gained any kind of success in a particular city then it will begin to create a financial burden. So, to start with a small workspace or to rent a workspace is a better decision during the initial stages.

2. What kind of people work in a coworking space?Coworking spaces give people in the workforce an opportunity to be productive in a place other than their home or office. Coworking spaces are especially popular among remote workers who feel that they are lacking human interaction and want to work in a space where they can network and share ideas with like-minded people. Freelancers and homeworkers, employees and collaborators, entrepreneurs and small businesses make up most of the clients of a coworking company.

3. Revenue that can be earned with coworking space business? Coworking space earns the majority of its revenue by renting out the desks. One in ten spaces earns all of their money from desk rental. The average space earns 10% of its revenue from renting out the meeting rooms and event space.

4. What is the cost of running a coworking space in India?The investment needed for running a coworking space greatly depends on the location of the space.

Future of Coworking spaces

Coworking spaces are the future of business. 2019 saw a big range of coworking spaces in India, with a variety of benefits and facilities provided to the members. More and more people are going to turn to coworking spaces, especially once corporates start looking at the fresh talent available within their new workspaces.

The problem of increasing rents is growing by the day, which is bound to have startups, big and small, look for more effective and cost-saving methods to carry out their business. The demand for coworking spaces, therefore, is only going to increase with time.

In 2017, more than 1.1 million people went to work at 13,800 coworking spaces worldwide, according to the 2017 Global Coworking Survey. Coworking memberships have enjoyed steady growth since the idea became a reality. With the increasing demand, coworking will look different by the end of 2020.

(Disclaimer: The opinions expressed are the personal views of the author. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)