So you’ve got your business to the stage where you’re looking to transition to ‘bricks and mortar’. Whether you’re moving your existing office from the kitchen table, the spare room or jumping straight from your day job, you’ve got two main choices: coworking or leasing.
A coworking space is a great alternative to leasing, offering many benefits for the time in between registering your domain and world domination in your growth stages. In fact in an ever increasing cloud-based and global economy, I don’t believe that you’re ever too big for coworking, particularly for service based businesses.
So here’s the five reasons a Coworking Space beats Leasing, hands down:
1. You won’t need to put up ridiculous sums of money
When you sign a lease and move into your space, rarely is it ever set up perfectly tailored to you.
Expenses that you need to factor in are:
- Deposit for the property, typically 2 to 3 months of full rent
- Fit out expenses to add in walls, put in a kitchen or a boardroom
- Signage and branding
- Telephone and internet lines, and the cabling and phones themselves
- Furniture that can easily add up to thousands
- Security systems
- A receptionist if you’re manned during office hours
- Insurance for contents, theft, public liability, glass
This cash burning list goes on.
2. You make friends in the same boat as you
Another great benefit of sharing office space is that you make friends – better yet, establish business relationships that may bring synergies.
Coworking spaces are also typically filled with similar industries, even our space at Inspire Cafe tend to be business to business service industries. Some coworking spaces focus on tech start ups, others on creatives and some solely on freelancers or professionals. In any case, you’re sure to make friends who can help you or share experience with – maybe even a potential client!
There’s no doubt that it’s great being in the trenches with others fighting the same fight.
3. You’re not locked in
Leases are generally signed for a good 3, 5 or 7 years – and with a decent fit out, you will want to sign for a good term to recoup your costs.
Coworking on the other hand is generally month to month, or week to week depending. You’ve got maximum flexibility around moving in or moving out and it can be exceptionally handy if your future has a tendency to change without much warning.
4. You’re not limited geographically
Leases lock your business in geographically, for the term of the lease. And this isn’t always great if you or your team are expanding interstate or overseas.
On the other hand, there are coworking spaces popping up everywhere across the world! (Do check out CoworkingMap if you’re travelling!)
5. You can scale easily
Scalability of a business is key. With the rise of technology this is ever increasing and most software providers offer scalability in their pricing that grows with your business.
What about physical space? Coworking is the key to scalable space. With leasing you will either need to factor in scalability at the outset, or change premises as you grow.
Most coworking spaces don’t limit your subscription to a number of people in a business. Rather the coworking space is limited by its own square metres!
Coworking is a brilliant alternative to signing a lease. We can only recommend weighing up the two, as you do before any big decision in business
Do let us know your thoughts in the comments section below.