Any start-up during its seeding period has to struggle a great deal to generate sales thus covering costs that went in the time to market phase. This situation may lead to a high risk of shutting down the business due to low or no productivity, failed business plan of the firm. How co-working space reducing cost for start-ups and small enterprises. Let better understand through a case study
Following are some statistics which shows that co-working space always favors start-ups and small business enterprises:
- The cost of maintaining pantries and open area is approximately 12,000 per month.
- The co working space turns out to be cheaper by 60-75% if there are less than 30 employees in the firm.
- About 35% to 55% of the workforce do not need their own office in any business.
Hence, it completely makes sense in these times, the renting out of shared spaces at low cost for official operations. With co-working office spaces, professionals can leverage immense productivity at a fraction of the cost of full-fledged office set up.
Co working Space vs Office Space Rent and Other Fixed Costs for start-ups and other small business enterprises
Below is a comparison chart that shows a clear difference between co working space vs monthly office space rental fixed costs.
|Business Costs||Rented Office Space||Coworking Space|
Stated below are some of the best ways that shared working space can be greatly helpful for start-ups, costing them less in their first step of establishment:
1) Convenient pricing
An ideal choice for a smart startup or enterprise that doesn’t want to shell out huge rental or upfront office space costs is a co working space.
The sharing spaces Opportunity for them with a very helpful economical option. As the pricing structure is very flexible this is possible.
2) Rent issues
The prime advantage of this co-working space is the cost efficacy of rentals. The rent of the entire co-working space is not a burden on only one individual or organization.
All the firms, which get dedicated office spaces and workstations on a rental basis, together with bear the rent of the entire space. This saves a lot of money that can be utilized for other productive proposes.
3) Costs in separate workplaces have the following. But in case of co working space, all these costs are included at once,
- Decorations and Furniture
- Power supply
- Internet services
- Manager handling network
- Access and. Security
- Office Manager
- Office Setup and Maintenance Costs – Even if one rents an office instead of buying it, he still needs to furnish it and install all the fixtures and furniture. You need to buy computers and software, you need to hire people to manage, maintain and clean the office space and the computers and everything else. This required a significant amount in setup and monthly costs. This type of cost is waived off in co-working space.
- Depreciation Costs – The variable factor there is that the things you buy depreciate in value depending on usage. In a co-working space, you don’t have to worry about depreciation because it’s on us. Note that we also spend heavily every year on upgrades and new furnishings to make sure the place looks new and everything is working properly.
Thus, to sum up, we can say that Co-working is an ideal solution for startups, small business enterprises and companies that aim at cutting the overhead costs. An economical workspace or a budget co work can fulfill the needs of these start-ups. The various costs saving options mentioned above can result in a 70% drop in the current occupancy costs. The commercial owners, who have just entered the business market, may thus find it difficult to afford and maintain their own personal offices. So, co working is the best option for early-stage startups, SMEs and corporate branch offices that are struggling to get their work done while balancing visibility, sales, and office space requirements within limited funds this the way, how co-working space reducing cost for start-ups and small enterprises
Evolve Work Studio fulfills all the above criteria it is suitable for start-ups and small business enterprises and companies. If you or someone in your network is looking for a perfect co working space then surely reach out to us at firstname.lastname@example.org