Reasons Startups Succeed in Co-working Spaces
Coworking as a concept has ushered a new phase in the commercial real estate market. It has made the traditional and individual office space lose its place and has emerged as the most loved office space concept.
History of Coworking space
Coworking spaces can be found in any commercial district of India. In cities like Bangalore, coworking spaces are found in every corner of the city. Even tier 2 cities are not lagging behind when it comes to adopting coworking work spaces.
Coworking spaces have become an integral part of office spaces around the world. But when and how did it start?
It’s interesting to know that coworking workspace as a concept was established way back in the 90s, particularly in 1995 in Berlin by a group of computer enthusiasts who created a space where hackers could come to meet and work together. The term ‘coworking’ was coined in 1999 by Bernard DeKoven, who described coworking as “working together as equals”. However, since that explanation, DeKoven went to explain more, that the concept of working together was more revolutionary, as working as equal in the business world is a rare phenomenon.
In the years 1999 and 2002, in New York and Vienna respectively, similar kinds of office places made its appearance in the market.
The first official coworking space was established in San Francisco. Since then coworking spaces have witnessed an exponential growth across the world. These spaces have become the thriving hubs of innovation and entrepreneurial dreams.
Coworking spaces will continue to rule the office space market around the globe. So much so, that is it estimated by JLL India, that around 13 million people will work out of coworking spaces by 2022. That’s quite an impressive number!
India has become a favorable destination to do business at the contemporary times. Entrepreneurial spirit is soaring at a praise worthy pace and the fear of failure has reduced, paving the way for maintaining a healthy business atmosphere.
Startups are relying more and more on coworking spaces as their base of operations owing to the benefits that these spaces offer.
Bigger commercial real estate corporates are grabbing the increasing demand of this type of shared office spaces and are venturing into this space with their own offerings.
Role of coworking spaces in the development of startups
Coworking spaces play a major role in helping the startups during their initial phases. Most of the coworking spaces maintain a community where all the office occupants are its members. To help their members with entrepreneurial insights, the coworking spaces conduct workshops, seminars and talk shows, where industry experts share their valuable knowledge. Various other events like musical night are also arranged to lighten up the moods of the workers.
Smart workstations, inspiring quotes adorning the walls, bubbly recreational rooms, awesome cafés, high tech meeting rooms, the interior of every coworking spaces are well decked up to attract every visitor.
You are bound to fall in love with the ambiance they offer!
Imagine you have opened an advertising agency of your own and looking for a responsible writer for your core team. Tried your luck in hiring, but didn’t get a proper team member. At a coworking space, you may get your desired writer sitting right next to you. You can either approach them with your job offer or ask them to work in your projects as a freelancer. How convenient is that?
As a startup founder, the energetic environment that coworking spaces offer should be one of the reasons why one can choose one of these places as their office.
Being a startup founder is an extremely daunting task. If you are a solo founder, the work simply becomes never ending. While you savor the joy of creating something new, there are innumerable tasks that you have to accomplish by yourself. In many instances, your lone responsibilities coupled with the absence of like-minded individuals to share your thoughts with, may lead you to feel depressed. Although it’s best to have a cofounder to share the burden with you but there may be times when both of you require some guidance or opinion.
In such scenarios, coworking spaces can be your savior. You can meet like-minded startup enthusiasts who will help you to glide through the bleak days.
Let’s discuss the reasons startups Succeed in Co-working Spaces
1) Save cost
Coworking spaces offer a myriad of benefits to the companies. The most important thing is that coworking spaces help the startups to save on their office spaces expenditures. With the ever increasing rise of rentals in Indian cities, most of the companies refrain from spending a huge amount on their office spaces.
The main USP of the coworking spaces is their affordability. The price that you pay for fixed or flexible seats is relatively much lesser than individual office spaces. Also the prices are generally inclusive of all other amenities like power backup, AC, housekeeping activities, cafeteria, IT support etc. Hence you get everything as a package at a fraction of cost that you would normally spend in your individual office. This essentially gives huge respite to the newly found companies.
It is a known fact that business and networking goes hand in hand. You can’t succeed in business without connecting with the right people. Proper networking is the golden rule for any prospering venture. In coworking spaces, you can meet people associated with a variety of industries. Connecting with them, can give you the right boost for your startup.
You can also do market research and ask the opinion of your coworking colleagues by presenting your product in front of them before endorsing them in the market. Their feedback may help you to improve your product before it actually hits the market.
3) Proper attention to work
When you run your own enterprise you have the liberty to choose the space from where you want to operate from – home or a separate office space. While the former will help you with respect to office space expenditures, it will bug you with unnecessary distractions like undone laundry or unwanted attention from your family members. At home you are bound to feel relaxed. How much professional you can get when you are working in your pyjamas?
At the same time working from an individual office will accompany you with plenty of headaches like everyday maintenance of the office premises, power back up, internet and housekeeping etc. All these intrusions are bound to eat up some of your productive time.
Hence, working from coworking spaces where you get all the facilities easily at a moderate price makes more sense. You can utilize your precious time and energy towards your work.
4) Being a part of a community makes the entrepreneurial journey easier
Next comes the community feeling of coworking spaces. Working and spending time amidst like minded aspiring entrepreneurs will inspire you to strive harder for your dreams. Also you won’t feel alone during one of your hard days! Believe me! That’s a huge comfort.
You can get help from other talented individuals like yourself, in case of work emergencies. Imagine a scenario – Your website is having a problem and you are not able to contact your web developer. In such cases, you, having zero knowledge of technology would have been in dire straits, if that web developer guy from your coworking space was not there to help you in fixing the same.
5) Benefit of prime location and scalability
We all know how much expensive a swanky office space at a prime location would be in any big city. A startup founder would never imagine bearing the burden of such cost.
However, at the same time who doesn’t want their office to be located at a convenient location in a city! Coworking spaces have the convenience of being located at important business districts of any city. You can have your office at the best of the locations without spending a fortune!
Also, these shared office spaces offer flexibility in increasing or decreasing the space you locked in for at the initial stage. Hence upscaling or downscaling won’t be a problem. That’s a huge relief for new companies who may have the possibility of either of the two in future.
Let us now hear what some startup founders think about coworking spaces.
1) Navesh Dakdar, cofounder of GetSetCamp spoke about coworking spaces as, “The main reason is that there’s no deposit like in the case of a traditional office rental and it saves costs. Plus there’s an opportunity to network with other startups and investors,” in an interview with Quartz, India.
2) PetCru founder Allen Stone, highlighted the flexibility that these spaces offer. He said that he needed a space where he can, “add on or break the monthly contract depending on our growth.”
With this, we come to the end of our discussion on why coworking spaces have an important role in the development of startups.
If you are a startup owner operating out of a coworking space then you can add your own list of benefits with this! And if you are yet to consider coworking space as your office, we hope this article would surely help you to make up your mind.
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