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:
- Furniture and Decorations: This not only includes individual offices but conference rooms and public entryways.
- Electricity: Electricity costs are not getting cheaper, and in the summertime can spike with air conditioning usage.
- Internet: High-speed Internet service can run on a yearly average of $3,000 for a small business.
- Network Manager: You will need a technical expert, either on staff or via contract, to manage and maintain your internal networks.
- Janitor: You’ll need someone to clean up the offices, take out the trash, and keep the kitchen from growing mold and attracting roaches.
- Security and Access: Especially if you have expensive equipment left on-site, you will need security technology and protocols in place for your workers.
- Insurance: These costs can vary but can be prohibitively expensive if your office is in a flood zone or other area that is vulnerable.
- Office Manager: Don’t forget the recurring costs of a manager to make all this work.
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.
5 Great Financial Benefits of Coworking for the Small Business
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:
1. Coworking can be 60% to 75% cheaper if you have less than 30 people in your team.
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?
2. Approximately 35% to 55% of your workforce do not need their own workspace.
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.
3. Conference rooms can cost on average $75,000 over 5 years.
Conference rooms are critical components of office space, not just for internal meetings but for presentations and meetings with clients and potential customers.
4. The estimated cost to maintain common areas and pantries is $200 per person each month.
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!)
5. You can gain greater tax benefits with coworking.
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%.
Save Money Today by Choosing Coworking
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.