Coworking has a wide range of benefits for both companies and start-ups which is why the shared working environment is growing so quickly.
Perhaps one of the key and most important benefits is the cost-effectiveness of coworking spaces in 2021. Coworking spaces are considerably cheaper than traditional office space for a number of reasons.
With the global pandemic meaning more employees are working from home, companies are taking a serious look at their traditional office space.
In this article, we’ll look at the main reasons coworking space will save you or your company a lot of money.
Coworking spaces are more cost-effective
So how much money will you save by using coworking spaces?
According to Techspace, coworking spaces are 65% – 70% more cost-effective than traditional office space for companies that have less than 30 employees.
Why’s that?
- No long term contracts
- No equipment to purchase
- No bills to pay
- No receptionists to employ
- Job retention is higher
- Less space is required
No long term contracts
One of the major downsides of renting traditional office space is the long term financial implications. A lot of companies are required to pay leases that last for many years.
Organisations are locked into paying these leases even if they don’t require all the space. This is one of the reasons more companies are turning to coworking spaces in 2021.
Renting is incredibly flexible and relatively inexpensive when compared to traditional office space. Employees, freelancers and entrepreneurs can rent out hot desks and meeting rooms for as little as an hour at some locations.
This is great for start-ups who are limited in terms of cash and have other costs to prioritise when getting started. It also gives start-ups the flexibility they need when growing.
Scaling with coworking space is incredibly easy whereas this is more difficult at traditional offices when you’re locked into long term contracts.
So if you decide to take your start-up in a different direction or choose to go completely remote, this won’t be a problem with coworking.
Forget the long term leases, even when you compare coworking spaces and traditional offices on a monthly basis, shared working environments come out a lot cheaper.
Overall, coworking spaces are brilliant for companies that need to be flexible and react to changing demands.
No equipment to purchase
One of the most expensive costs for companies is kitting out new office space. Furniture, IT equipment and other infrastructure is a large expense which not all companies may want to afford.
Another benefit of coworking space is that the infrastructure is already in place. You don’t need to purchase any new desks or coffee machines.
Simply book your office space, bring along your laptop and you’re all set. Coworking spaces make it incredibly easy to get down to work without the stress involved in choosing new office chairs…
You can focus on what really matters.
What’s more, coworking spaces utilise modern, open-plan designs to make working environments feel more relaxed and comfortable. Don’t be surprised to find a swinging chair in the breakout area…
Whilst you’re not able to choose the specific design and feel of your coworking space, many companies and start-ups would rather save their cash.
No utility bills to pay
Another downside of traditional office space is the bills you pay at the end of each month. Depending on the number of employees and office space you need, this could be a large cost.
However, with coworking spaces, you’re not required to pay any bills. Think about it, it would be a bit rich if a coworking company asked you to pay water bills having only used the office for a few hours.
Most coworking spaces offer all the amenities and infrastructure required to support the fastest-growing companies. Super-fast WiFi is a must for a lot of companies and start-ups and it’s great that you don’t have to think about this.
No receptionists to employ
Yet another reason coworking spaces are more cost-effective is not having to pay for receptionists. At traditional office space, you’ll generally need to employ your own receptionist to welcome guests etc.
However, at most coworking spaces this is already provided for you and all part of the service.
Job retention is higher
Job retention… You’re probably wondering how this ties in with coworking. Stick with me. Various studies have shown that giving employees more freedom and flexibility encourages them to feel more valued and appreciated in the workplace.
This, in turn, increases job retention lowering the cost of employing new staff further down the line.
Less space is required
If you still need traditional office space but some of your employees can work remotely, you can take advantage of coworking space and reduce the costs of traditional office space you need.
You can have the best of both worlds.
Coworking space is incredibly flexible meaning you can pick it up and drop it when needed.
Coworking is great for cutting costs
Whilst the majority of points mentioned above are cost-related, your time is also another thing to bear in mind.
With coworking spaces, you don’t need to spend time searching for the latest office equipment, finding a new receptionist or changing WiFi providers. It’s all done for you.
The benefits of coworking spaces don’t stop there. Studies have shown that they increase productivity, offer brilliant networking opportunities and are pretty awesome…