The concept is proving to be cost-effective and profitable not just for startups, but also for large companies, SMEs, and consultants
The concept of co-working is disrupting the traditional norms of doing business. Co-working spaces have been providing entrepreneurs, especially startups, infrastructure facilities to help the businesses grow, as they try to make it big in the industry. However, co-working spaces are not limited to digital nomads, startups, and small-time entrepreneurs alone anymore. The co-working concept has entered the mainstream and how!
On account of rising commercial real estate prices, co-working is now a favoured destination for large companies, SMEs, and consultants. Moving to co-working helps them cut-down on unnecessary costs and time, and invest that money in making the business more productive and profitable.
Rising demand among corporates
Increasing real estate prices, overhead expenses, need for networking opportunities, flexibility, quality, etc., make working out of a shared office space a sought-after option not just for startups, but even for SMEs and companies.
Offices have now become a service. While co-working was once a niche product, it has now changed the way offices are designed and consumed.
Businesses of all sizes are recognising their need for an engaging workspace that encourages a happy and productive workforce. The unpredictability of the future headcount of resources, however, is posing a problem for businesses to design such a space by themselves. Not to forget, the increasing pressure of lease costs and the lock-in period.
Check out some of these interesting facts;
Opportunity for companies to grow
Avoid wrongful diversion of resources
A leased-out or own office space, where you are responsible to manage its day-to-day operations, calls for the need to look after many things. As a business, you will have to select the space, conduct purchase/lease negotiations, handle the paperwork, manage infrastructure, hire staff for the upkeep of the space, set up facilities and amenities to assist with daily operations, and so on.
Again, all these activities will eat into not only the budget of the business but also time and other resources. This diversion of time and resources, of course, means lesser profits.
A business can save up to 75 percent of their expenditure by opting to work from a co-working space (Source:nerdwallet)
A distraction-free environment
A co-working space eliminates all the common distractions that can hinder the performance of your team.
A team that works out of a co-working space is happier, healthier, and a lot more productive than a team that does not. A productive team automatically means good business.
Collaboration and upskilling opportunity
Co-working spaces will give your resources countless opportunities to network, collaborate, and learn something new. An environment that is this productive and energetic can inspire and foster new relationships between your team and the people they work around. This can be an excellent way for your team to upskill themselves and work towards self-improvement.
Companies who need their client-servicing teams closer to their respective client locations, opt to work from a co-working space for ease of operations.
The success of a business is not directly dependent on working out of a co-working space, but it does provide an opportunity to expand and grow the business in an easier and fast-paced manner, without having to focus on day-to-day mundane activities.
By co-working, a company can develop and grow itself in its industry.
Factors driving co-working among startups, SMEs and corporates alike
- With an increasing number of companies looking to move base and set up more regional offices, investing in a new property or committing to a lock-in period is not a feasible option. For these companies, working from a co-working space is a ready-made solution.
- Co-working spaces are fully equipped with amenities and facilities, including technology, to provide infrastructural support to businesses.
- With a change in lifestyle, increase in the time spent on commuting, technological advancement, and growing importance of health and wellness, the focus is shifting from a traditional office to a modern and convenient office setup.
Challenges for the co-working industry
A co-working space must have updated technology to meet the increasing demands of entrepreneurs and growing businesses today.
They need to be equipped with a flawless system for security, sales, invoicing, booking, customer feedback, escalations, etc., and facilitated to ensure smooth communication with customers. Providing a perfect mix of its products to the customers, and managing it is crucial for the expansion and retention of customers.
Apart from that, maintaining competitive pricing to be able to survive in the exponentially growing market of co-working spaces, plays a vital role in its success.
For consistent growth and survival, a co-working space needs to be in sync with the changing industry standards and requirements. Corporates and big businesses are looking for office spaces that can help them innovate and create a team that stays inspired and motivated.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)