When you’re creating your own start-up, keeping a close eye on your finances is a must for first-time business owners. Canny start-ups are getting a head start, thanks to coworking spaces – where you can be in the heart of the action, without spending a fortune on renting a private office.
Start-ups are thriving, thanks to coworking spaces. According to statistics compiled by Coworking Resources in August 2020, start-ups, entrepreneurs and independent business owners are driving the majority of the sector’s growth, accounting for 65% of occupants in newly opened coworking environments.
London is one of the world’s leading cities in terms of the number of new coworking spaces that have opened in recent years. On average, a new space has opened once every five days in the capital.
Although growth has slowed this year, due to the Covid-19 pandemic, it is weathering the storm and is still on track to become the future of the business world.
What are the benefits of a coworking space for a start-up?
One of the main benefits is the cost: coworking spaces make a more affordable base compared with renting regular offices. Your business premises say a lot about you as a company, so you need to give the right impression to visitors, prospective partners and clients.
Having a private rented office can provide the most professional impression possible, but it can come at a high cost for a small business or entrepreneur and may soon eat into your limited funds, draining your business account before you even get off the ground.
The right coworking space enables you to set down roots in one place, without having to spend thousands of pounds each month. Choosing a coworking environment where there are also private offices and meeting rooms gives you somewhere to meet clients, without the expense of renting a whole fixed office suite.
Freeing up extra funds can help your start-up to overcome the biggest challenges, so you can begin to scale up your business.
Why is flexibility important?
One of the most popular reasons start-ups choose a coworking space is the flexibility it offers. It’s ideal for growing businesses. For sole traders and entrepreneurs who are starting small, there’s room for expansion within the same space.
You can start with a single desk, but as your team starts to grow, you can upgrade to an office within the same coworking environment. There’s no need to rent new dedicated offices and buy furniture and equipment – simply expand into the next room, or onto another floor.
If you should suffer a temporary setback, such as the current lockdown situation, for example, you’re not stuck paying rent for office space you don’t need. Simply downsize in your existing coworking space until the economic climate improves.
The recent popularity of coworking supports the rising trend of collaboration, as sole traders and entrepreneurs are increasingly looking to network and discuss strategies with like-minded bods. As part of a new way of thinking, it provides more flexible, creative, connected and affordable spaces compared with the traditional serviced (and sometimes stuffy) office building.
Which start-up businesses have used coworking spaces?
A number of start-up businesses have used coworking spaces to help them achieve their success, including household names such as Instagram. The social networking site was launched in July 2010, after co-founders Kevin Systrom and Mike Krieger planned and developed it in Dogpatch Labs – a coworking space in San Francisco.
Another start-up that has gone on to achieve global domination, after starting out in a coworking space, is Uber. The ride-sharing service was developed and launched by Garrett Camp and Travis Kalanick in 2009 in a coworking space known as Rocket Space in San Francisco.
Many start-up businesses are looking into renting coworking space at the very beginning of their journey. With the help of the amenities and community of the coworking space, entrepreneurs can create and grow the business of their dreams.
Coworking has collaboration in mind and brings all kinds of businesses together in a strong networking environment. In fact, many business owners make connections that help carry them forward on their entrepreneurial journey.
With the space to hold your own events, start-ups have plenty of opportunities to network with people in their own industry and in other sectors, affording them the best chance to thrive. These spaces are the first rung on the ladder for those wishing to set up a successful company.
On average, start-ups stay in their first coworking space for around three years, developing and expanding their product or service, before looking for more space. This gives them enough time to focus their energy, time and money on developing a successful business plan so that they may move forward.
For information on the best coworking spaces in the UK’s major cities, contact Headspace Group today. If you plan on being in business for the long haul, there’s no better place to start.
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