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Top 8 Benefits of Coworking Spaces for Entrepreneurs and Startups

The internet, freelancing, telecommuting or work from home, and the favored digital nomad lifestyle have contributed to the rise of coworking. Despite the pandemic’s disruption to the workforce and its unprecedented exodus from offices to working from home, research indicates that old establishments and new startups will most likely adopt a hybrid model of work.

Currently, the number of people working remotely has grown by 44%. For the most part, it offers greater flexibility and work-life balance, but McKinsey notes that a hybrid model combining some remote work and work in an office remains the most probable outcome. So, why are coworking facilities attractive to entrepreneurs?

Not everyone has conducive work-from-home environments, and those that do, still enjoy a change in scenery. Beyond that, humans are hardwired social creatures, so face-to-face interaction is vital, especially for those who live alone. Let’s take a look at all the other benefits of coworking spaces for startups.

Cost-Saving

Startups can save $2,700 on average per month by using a coworking space. For any entrepreneur, securing a start-up workspace requires a substantial amount of capital, and likely committing to a long-term lease. Even with the overhead covered, other miscellaneous costs like furniture, connectivity, and stationery etc. quickly raise monthly expenses.

One of the biggest benefits of coworking spaces for entrepreneurs is the ability to move into a fully furnished office that not only has the most costs covered, but a host of additional amenities and lifestyle perks attached.

Familiar with the demands of modern life, most coworking spaces come with tenant lounges, fully equipped kitchens, conference rooms to host meetings, and an array of cost-effective amenities not usually attached to renting traditional office space. This type of cost-efficiency is absolutely crucial for bootstrapping startups.

Availability

Coworking Spaces for Entrepreneurs and Startups Pros

Coworking spaces are usually accessible 24/7, providing entrepreneurs with flexible office hours control. Starting and managing a new company demands flexibility. With unfettered access, people can decide whether to put in a long day to meet a deadline or take a break in the middle of the day and go to the gym. There’s also the choice to work in a quiet space or find a shared table to collaborate with their team.

The autonomy that comes with running a business is refreshing but can also overwhelm. Having an office space away from home, with a community of like-minded individuals, helps create structure, routine, and discipline. Essentially, it offers the comfort of both; structure when you need it and freedom when you don’t.

Flexibility

For startups, co-working spaces are turnkey solutions. They offer companies greater adaptability in an ever-changing world of work and the ability to overcome challenges like; workplace costs, occupancy, operational demands, and worker support. While young companies experience rapid change, co-working spaces remain consistent.

Furthermore, they allow companies to scale when needed, without too much hassle. Co-working spaces usually have flexible rental agreements. If a team expands, the lease agreement can be modified to suit the company’s growing needs. Many co-working spaces offer tiered membership plans, ranging from hot desks to dedicated desks and furnished private office spaces.

Lease flexibility allows startups to remain agile, as organizations can vary their space as projects change. For example, if a company needs to bring an extra team on board, they can do so without worrying about the repercussions of renting a larger space for a shorter amount of time.

Comfortable

25% of workers claim uncomfortable working environments negatively impact their productivity. Temperature, air quality, lighting, and workplace design impact an entrepreneur’s work. Coworking spaces go through a great deal to design flexible spaces that are physically comfortable to work in. Most have HVAC systems, fast internet, and amenities that provide a pleasant working experience.

They also offer ease. Zoom may reign supreme, but there are times that call for face-to-face meetings with clients that can be awkward if you work from home. A coworking space gives you an address to meet your client that avoids meeting at home altogether and is a notch above a coffee shop.

Comfort also extends to mental wellbeing. A study by the Harvard Review found that people in coworking spaces saw their work as more meaningful, were less lonely, and felt they were part of a community. Physically and emotionally comfortable environments take care of the small but significant details that allow entrepreneurs to meet their targets.

Productivity

Coworking Benefits for Startups

Freelancers working from home probably already know how challenging it is to maintain a balanced life, which is where having added amenities like gyms at coworking spaces can help. Coworking spaces also limit the temptation to watch TV or procrastinate at home, boosting productivity.

Building on the previous point, when people feel happier, they are 13% more productive.  Happier individuals are more collaborative, engaged, and creative. Working in an environment with other like-minded people provides a sense of community, even if there isn’t direct communication between everyone all the time.

Many coworking spaces are also productive through intentional design. They cultivate the right environment with different spaces; some have a strong social element, while others minimize distraction for intense focus. A mix of both is advantageous, as it encourages people to take breaks during their working day.

Potential Clients

Another one of the benefits of coworking spaces for startups is their provision of in-person networking opportunities. In an era of digitized networking, coworking spaces allow entrepreneurs to meet prospective clients in an exciting, engaging, and inspiring environment. As it is, most people choose a coworking space based on having an enjoyable atmosphere (59%) and interacting with others (56%). If this holds any weight, then these unassuming and relaxed spaces are the perfect breeding grounds to meet new clients.

Working Contacts

Surrounding yourself with other professionals provides the opportunity to build your client base, even if you don’t directly do business with them. Let’s say you’re a web developer, for example. While the person next to you may not need your services, maybe they know someone who does.

According to TalentLyft, 88% of employers said that referrals are the best source for above-average applicants. People are always more likely to trust a referral from someone they know. Furthermore, if you’re a freelancer or entrepreneur needing to outsource work, you may already find yourself sitting next to a collaborator.

Benefits of Coworking for Startups

Professional Meetings

Many coworking spaces offer professional networking sessions, seminars, and workshops with educational and networking opportunities. Owning a startup can be challenging, especially for younger entrepreneurs who may not have all the business acumen they need, so taking advantage of these sessions may prove enriching to long-term success.

Trying out new things and considering different perspectives helps fuel innovation and entrepreneurship, even if it’s not directly related to your field of work. If you own a business that can offer workshops, you might consider hosting your own as a way to enhance income and attract prospective clients.

Workshops are an excellent way for new clients to sample your expertise and practice, provide advice and showcase your value. It also allows you to develop a deeper connection with your startup workspace community.

Conclusion

The numerous benefits of coworking spaces for startups make it a cost-effective and realistic option for new business and budding entrepreneurs, as well as freelancers needing an alternative space for productive work. If you require coworking space for rent in River North, Chicago, then contact us for a free consultation. We have designed the perfect space to accommodate modern working life.

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