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Economics of Coworking Spaces: how they Benefit Small Businesses and Startups

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Coworking spaces are all the rage right now. With freelancing at an all-time high and remote professionals looking for a place to work from other than their homes, coworking spaces have provided an avenue of both socializing and professionalism beyond the confines of the traditional office. A major factor behind their success is the financial one; they provide a viable and feasible alternative to working from home or commuting to the office, and their locales usually provide great hangout spots and coffee shops for a quick meal. Let us take a closer look at the economics of coworking spaces and how they provide a bulwark for small businesses and startups against the rising cost of real estate and maintaining an entire office. 


The business model of coworking spaces is designed in a manner to make them very financially appealing and lucrative to small businesses and startups who might not be able to afford an entire office otherwise, or their resources are slim so that money could be better spent on good talent or services rather than furnish and lease an office building. Since an administrative staff is usually required for the building and finances need to be planned out for utilities, many business entities are better off utilizing the services of a coworking space. 


Let’s look at coworking spaces’ economics and how these spaces provide a financial safe haven for small businesses.

coworking space

The economics of coworking spaces: helping small businesses, startups

Coworking spaces provide a feasible alternative to office buildings and complexes for small businesses and startups that might need more resources to sustain an operational office. Let’s look at how coworking spaces help these entities stay in business and cut overhead without compromising on the utility of the conventional office and all the amenities it provides. 

Reduce operational costs

The first and foremost is that coworking spaces provide a space for office workers without the costs usually associated with an office. For instance, leasing an office building is the most popular way of financing it. Leasing is an expensive process that can take a toll on the finances of a company, especially if it is a startup. On the other hand, a coworking space has no lease options since owning it isn’t part of the equation. At the same time, you retain maximum usability to the point of modifying the interior. Since operational costs are shared between different tenants in a coworking space, this provides greater financial freedom to the startups and small businesses working there and is the reason why coworking spaces are so beneficial for these. 

Reduces other associated costs

Utilities, refreshments, remuneration for administrative and support staff: these are all expenses that can eat up into the budget of the startup or small business and can seriously affect their ability to stay afloat. Coworking spaces provide all this and even more amenities on-site to make an arrangement even more lucrative. For instance, many of the best coworking spaces, like ZEMLAR Offices, provide on-site IT support and customization options. This takes off this load from the operational budget of the small business and frees up more resources for the things that really matter. Similarly, since the coworking space is being shared with other tenants, the cost of utilities is shared between these people, driving down the cost and making sure that small businesses and startups do not feel the full brunt of expenses like the power bill, the internet bill and other utilities that the coworking space will otherwise cover for them. 

office space for startups

Gives access to a better talent pool

The modern business model does not require for a business entity to stay in one place. It is global. This coincides with the rise of coworking spaces and their network of locations across the globe, giving you flexibility in work and allowing you to tap into a global pool of talent to work with. Since coworking spaces do away with the need to commute to work, talent is now available on a global scale, not just from within the city. And since the potential employee does not have to commute to work, they can simply arrive at their nearest coworking space and get going on the business. 

Increases productivity

Employee productivity depends on many factors, and the workplace is one of the big factors. In a traditional office, the workplace is getting to be a burden more often than any other thing. In contrast, the coworking space does away with the traditionally cumbersome facets of the conventional office. With a relaxed atmosphere, diversity in the workplace, and great amenities, employee productivity gets a boost, allowing small businesses and startups to do more in the same amount of time without the drawbacks of a conventional office. Small businesses need their employees to put in their best, and once they do, they can expand considerably. With coworking spaces enhancing productivity and productivity directly positively affecting the business, coworking spaces indirectly cause the business to succeed. 

Great packages, scalability

The hallmark of a great business idea is how quickly it transitions from a small business to a thriving medium-sized one. Startups also aim towards aggressive growth, which means expanding based on revenue, physical space, number of employees, and the resources you have on hand. Coworking spaces are perfect for such arrangements; you pay based on your real estate need, not the entire premises. This allows for coworking spaces to offer great long-term packages, which can considerably reduce the operating costs of a small business. On the other hand, when a small business or startup starts to expand, these coworking spaces will adjust to your needs, allowing your spaces to be configured and increased according to specifications. This is scalability, another one of the great reasons coworking spaces are such a win-win for startups and small businesses. Not only do you pay for what you use, but when the time comes to scale operations up, the coworking space obliges and allocates you more room. An arrangement that all startups require. 

The bottom line

Small businesses and startups strive toward profitability, and cutting costs and minimizing overhead is the one way they can do so. However, since a traditional office demands extensive fiscal resources to be put up, the best option for these two entities is coworking spaces. They provide all the amenities and benefits of a regular office, sometimes even throwing in a few extras, and charge you based on your requirements rather than the entirety of the real estate. This makes the space financially feasible and lucrative, and coupled with other features that bring the cost even lower, coworking spaces are the best thing to happen to small businesses and startups in the past few years, and this helps explain the meteoric rise of coworking spaces in metropolitans across the world. 

ZEMLAR Offices: coworking space solutions designed around your business

Are you tired of the exorbitant costs of renting offices and leasing office space? The sooner you switch to coworking spaces, the better and more likely your chances are of making it big with your startup. ZEMLAR Offices has coworking space solutions designed to shift your business into the next gear, allowing you to utilize all the amenities and features of a conventional office without the operating costs and financial burden of actually maintaining one. Focus on your business, work towards getting that next big break, and leave the office to us: ZEMLAR will ensure that your business succeeds, and the coworking space plays a big role in it. Trust ZEMLAR with the best coworking space solutions to help your business go the extra mile. 

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