In this competitive world, corporates are constantly looking out for ways to cut down costs and to increase their profits. Corporates are striving tirelessly to conduct their operations at optimum cost and reduce their overall expenses. When the big organizations are watching their expenses or cash outflow in their balance sheets with eagle’s eyes; startups and entrepreneurs operate on a shoestring budget so on the lookout for options to work in their limited budget. Coworking spaces and their benefits are harnessed continuously by the startups and entrepreneurs leading to the cost reduction in the balance sheet. Let’s look at the facts that favor furnished office space by startups and entrepreneurs.
- When the startup’s or organizations have less than 30 people working under their umbrella, the coworking spaces prove to be cheaper by around 60 to 75 %
- Since remote working has become a norm in current times, 35% to 55% of the workforce do not require office space.
- In customized office spaces, it is found that conference rooms are priced at an average of $ 75,000/- for five years.
- The maintenance cost of the pantry and common areas in the office spaces is found to be around $200 every month.
The above statistics indicate that coworking spaces are beneficial for startups and entrepreneurs falling in the above category. Coworking spaces reduce the operational and overhead costs and provide all the amenities required for the comfortable and convenient working of the personnel in the setup.
The cost reduction on utilizing the plug-and-play office spaces falls in the below criterion.
Cash deposit and Monthly rent
The startups do not have to worry about coughing up huge amounts in deposits and committing for a long duration of time as in the case while leasing office spaces. This comes as a huge relief for them as they are working on tight budget lines. The coworking spaces offer flexibility to pay for the time and space for use only gives them the freedom to choose the facilities required and pay only for them. Different organizations utilizing the space share the rent together. The people or firms utilizing the coworking space together bear the rent of the entire space. This works to the advantage of the firms using the shared space as they are left with enough cash to invest in the other growth plans.
Flexible Usage and Pricing
Startups while operating on a shoestring budget can work out a plan for coworking space utilization as required. They can decide for 3 to 5 hours for 3 days a week for a team of 5 or 10 people based on the teams. With appropriate planning, they can work out a schedule for the team’s arrival and usage and book the facilities accordingly. The furnished office spaces charge only for the time duration and the facilities used during the booked time. So, the cost works out economically for the entrepreneurs with fewer office personnel and startups.
Additional costs reduced due to usage of coworking spaces
Maintenance of office spaces requires cash flow for various purposes such as:
- Infrastructure setup
- Internet supply
- Power supply
- Conference rooms/meeting rooms
- Housekeeping staff
- Front desk
- Administrative team to run the above facilities without hitches.
Running an office requires a dedicated team to look after the facilities required for the smooth functioning of the office space. This demands personnel, time, effort, and money.
The startups and entrepreneurs relieve themselves of these additional costs while using the coworking spaces. All the above mentioned in the list is taken care of by the coworking space. So, startups do not have to spend time, effort, or need personnel. This in turn results in cost reduction.
Coworking spaces or business centers have proven to be a source to work stress-free and cost-effective for startups and budding entrepreneurs. They provide an umbrella to conduct the business in the professional business environment. The flexibility option available to pay only for the facilities used works better for startups who are carving their path to success. Shared office spaces also take off the requirement for heavy investment in terms of cash deposit and for the infrastructure set up required to begin the work. All the startups need is just a visit to the workspace to convince themselves of the facilities and check the pricing options. The budding entrepreneurs and startups can start working from day 1 without waiting for any setup.
iKeva has coworking spaces in Mumbai, Hyderabad, and Bengaluru. Our shared offices have all the facilities and offer flexible pricing options. Call iKeva for a personal visit and check out the pricing and infrastructure facilities in person. All it takes is an hour or two to finalize and start working.