By Shantanu Mohan
October 26, 2017
Running a business costs money, but there’s an easy way to reduce costs: coworking.
Coworking is an ideal solution for entrepreneurs, startups, small businesses, and growing companies that want to save on overhead costs.
Renting or owning your own dedicated office space involves a massive investment of time, money, and resources. Costs may include:
Managing your own office space simply costs money, and those costs can add up over time. In addition to the financial savings, coworking provides many additional benefits such as business networking and access to resources.
With coworking, you not only save money, you can also join a vibrant community of other entrepreneurs and small businesses, increasing your exposure to leads and potential business partners. Of course, the bottom line comes first. Here are some of the cost benefits:
This is where the numbers show that coworking is especially beneficial for smaller businesses. Why spend money on renovating an office space that you’ll just be renting out for a few years?
Many of your workers do not need their own offices to get their work completed. Many of today’s tech workers can easily complete projects sitting at a cramped table in the middle of a noisy Starbucks. Coworking gives your workers the camaraderie of a social working environment that provides the right balance of productivity and personal interaction.
Conference rooms are critical components of office space, not just for internal meetings but for presentations and meetings with clients and potential customers.
Maintaining an on-site kitchen is not only costly, it’s usually messy. You won’t have to bother with the dirty coffee cups, dishwasher maintenance, or refrigerator repairs with coworking. (That said, your employees should still clean up after themselves in a coworking kitchen!)
You actually don’t get as much of a tax benefit with your own office space as you might think. After commercial standard loss ratios and common space, the technology and meeting space allowance is at 3,000 sq. ft., which in effect gives you 1,400 to 1,500 in working space. The true loss in self-managed space is between 40% to 50%.
As you can see, there are many cost-saving benefits of coworking. If you move to a coworking space, your occupancy costs drop by 70% or even more. Call us at WorkSocial to find out how.