Co-working spaces are becoming a major draw for many entrepreneurs around the world. In recent times, co-working space model has seen unprecedented growth in the US, Europe as well as in Asia. The growth is likely to increase as trends in this real estate sector seem to be based on strong business fundamentals.
Currently, many co-working spaces are serving small, medium sized companies and most of them are startups. Startups often do not have exorbitant funds set aside for operations, at least in their initial operation phase. Hence, it is important for startups to invest in real estate which does not require them to put up high upfront payments in the form of security deposits. Additionally, startups also require flexible payment options like paying per seat as opposed to traditional commercial leasing. The following is some additional benefits of why co-working spaces are extremely attractive for all entrepreneurs.
As technology provides us more mobile working options, professional relationships provide more flexibility and ownership than they ever did in history. For example, clients are no longer required to visit company headquarters. This is a revolutionary change in working culture as it allows companies to build architecture to provide comfort to their employees. Earlier, many companies invested in building architecture that provided them with prestige and stature, which isn’t as important today.
Currently, there is a lot of optimism and buzz surrounding entrepreneurship. Many young professionals, more than ever before in history are turning entrepreneurs. Currently, the average age of an entrepreneur is 28 years as opposed to traditional median age of 37. This is also a remarkable change as with younger population, new values and inclusion of latest technology is driving workplaces like never before.
Although co-working spaces are extremely attractive for startups, they are also important for large businesses. Many large businesses require employees on call in various cities around the world. It is important for these companies to provide freedom to their employees and let them work with maximum comfort. There are various co-working spaces which cater to larger businesses specifically, and provide their employees the flexibility they absolutely can’t live without.
Cost to value ratio
As mentioned earlier, costs are important for small and medium sized businesses to consider co-working spaces. Additionally, co-working spaces provide excellent cost-to-value ratio for all firms. Whether one works as a freelancer or opts for a work from home option at a big firm; employees can always find printing, security, reception, housekeeping and other important services at their fingertips. The cost of all these services is heavily reduced as many companies come together under one roof to share the cost as opposed to a single company bearing the burden.
It is doubtful as to how much networking can professionals achieve in a regular working space, but co-working spaces often emphasize this aspect to sell their commercial space. Many co-working spaces even assist with events, lounge and common areas to help various professionals meet each other and form connections. Networking can be important for freelancers who wish to meet new clients to expand their business.