Article by Charlotte Stoneman
Over the past few years, coworking spaces have increased in popularity, particularly when the way people worked changed post Covid. Coworking spaces that give opportunity to freelancers, start-ups and small businesses along with some incredible workspaces at a time that works for them and around their schedule. Coworking offers this previously overlooked sector of workers a place to succeed.
Before this option, people who were starting their own business or thinking about going freelance would have had to either work from home or rent a leased office. Starting a business or enterprise from home is certainly the most cost-effective option, however, with the cost of living crisis and the soaring energy prices, this is no longer the case. Working from home soon becomes isolating too; It can also be difficult to stay motivated and not distracted amidst the piles of laundry that need to be done, or the constant barking of your neighbour’s dog. On top of this, home offices tend to lack a sense of professionalism that the growth of your company may eventually need.
The leased office, on the other hand, could present an unrealistic overhead for a business that is just starting out, downsizing or looking to expand, by locking them into restrictive, long-term contracts. Coworking spaces fill the gap, offering businesses flexible, short-term options while they grow.
Here are six ways that coworking offices can save small businesses money.
Office on demand!
When renting one of our coworking spaces, you don’t have to worry about chairs, desks or even filing cabinets! The space will already be furnished, saving you the time and energy it takes to turn a clinical room into something less dreary and dull.
A leased office is usually an empty shell, you will need to purchase all of the fixtures and fittings yourself. Outfitting an office is time consuming and expensive, thus time and costs are saved in the process.
Any business that wants to expand will take a risk renting a leased office space. New companies can’t be sure that they will grow into the space, or that they won’t quickly outgrow it, either option leaving them stuck in a long contract they cannot leave.
Either way, they can be restricted and bound by contracts that last three years or more. Using a coworking space eliminates this issue. Rent the exact size or number of desks that you need initially, and then jump to larger spaces in the building, when your company grows.
As opposed to renting a leased office, you only pay for the space you really need when you cowork. Facilities like toilets, kitchens and lounge areas are communal, managed facilities. Our team takes care of these so that you only have to pay for the space that you use. This can provide huge savings for businesses, who would otherwise have to pay rent on the entire internal area.
Bills, Bills, Bills!
When renting a standard leased office, businesses have to pay business rates, council tax and/or property tax that can fluctuate and rise if the property increases in value. Then there are utilities to take into consideration, water, heating, electricity, etc. It all adds up. You will also find with standard leasing you may have to take on contracts for some utilities and services, that could leave you stuck if things change in the future.
Lastly, maintenance fees are always a cause for frustration, the air-conditioning goes, or the toilets get blocked, with coworking spaces all that is taken care of. Giving you more time (and money) to focus on what your business really needs.
Reduced Staff Costs
At dbs Managed Offices, we have employees that cover reception, administrative duties, IT, marketing & even accounting.
Businesses can benefit from in-house staff who can assist with tasks needed on site, without the need to hire and pay wages for a dedicated person for the role.
There are charges for some of the support services, but this is minimal compared to an actual wage of permanently hiring workers.
Networking & Collaboration
Although ‘technically’ not a money-saving point, the opportunities to network in coworking spaces can provide an extra source of income and help your company’s growth. These spaces are used by a number of small to medium-sized growing businesses, freelancers and remote workers, meaning the networking possibilities are endless. Additionally, by coming into contact with so many creative individuals, the recruitment process for future staff as your business grows, becomes easier and less costly.