The events of the last couple of years have forced many businesses to modify the way they operate. These changes have prompted many executives to switch to a work-from-home model or even a hybrid model, spending part of the week in the office and part of the week at home or in a shared office space. In the post-Covid work environment, long-term office building leases are on the downturn and many new and evolving companies are looking into the benefits of coworking spaces for startups.
According to a recent report from Geek Wire, the adoption of hybrid work policies at tech companies has hit the commercial real estate market hard, with the need for physical offices gradually decreasing. Even tech giants like Amazon are opting to give up office spaces, with many choosing to sublease their massive office buildings.
Additionally, businesses of all sizes are working with small teams. According to the New York Times, mass layoffs are becoming the new norm, with larger organizations working with fewer employees and smaller ones learning to adapt to teams of a dozen or fewer. With all of this in mind, startups are embracing a new solution – one that provides benefits for managers as well as employees.
6 Benefits of Coworking Spaces for Startups
There are many benefits of coworking spaces for startups. From allowing startups with smaller budgets to better manage their finances to providing a unique way to foster connections with others, coworking spaces offer value for nearly every type of business. Here are six top benefits that coworking spaces can provide for startups.
Dropping Long-Term Leases
For many startups, leasing a large office building isn’t feasible for several reasons. Not only are many startups operating with a small budget or limited resources, but they are typically working with a small team. Therefore, they might not need the ample space that often comes with a long-term lease. Many startups can not predict what they’ll need in a year- and if this is the case, a coworking space is an ideal option. Utilizing a coworking space that is open when you need it can help to keep you on budget and on track to meet your goals without the financial strain of signing a long lease – and the pressure of ensuring that enough employees are checking in and out each day to make the lease worthwhile.
Many coworking spaces are subscription-based, allowing startups to sign up for the amount of time per week or per month they may need. If you need to cancel your membership or adjust the hours your employees are working, it’s a simple and straightforward process.
Coworking spaces also tend to be much easier to scale up or down with minimal notice. When you utilize a coworking space, you won’t have to deal with the overhead, utilities, and maintenance responsibility that comes with a large office space.
One day you might have three employees who opt to work in the space, while the following day, you could plan a large meeting with every member of your team. In a coworking space, this is possible without much pre-planning since the meeting areas are easily customizable to suit any need.
Coworking spaces are also flexible in terms of individual spaces. If you want to utilize an open space with bright windows or if you prefer to sign up for spaces that allow each member of your team to work in privacy, you’ll be able to find something to satisfy your organization’s unique needs.
Engaging in Networking Opportunities
The benefits of coworking spaces for startups include the fact that they are more conducive to collaboration and networking. Rather than being stuck in one office building, caged in by a cubicle jungle, coworking spaces allow members of your startup to network and meet with other like-minded companies. After all, you never know who might be sitting just one table down from you—it could be that the friendly worker tapping away on their laptop is your new employee, investor, or the one who helps you brainstorm that next great idea.
Many coworking spaces offer special events and classes specially designed to help entrepreneurs and businesspeople who use the area to connect. While seasonal markets, exercise classes, or occasional happy hours aren’t necessarily the perks that cause a startup to succeed, they can provide opportunities for connection that simply aren’t available in a traditional office setting, where most employees are eager to get home after a long day’s work. Coworking spaces can be places of fun and relaxation as well as productivity and entrepreneurship.
Lowering the Cost of Doing Business
Coworking spaces are much more cost-efficient, and not just when it comes to paying rent and utilities. Many employees expect certain perks from office spaces, such as coffee, soft drinks, free lunch, or donuts on Fridays. While it’s always a great idea to treat your hardworking employees and team members, many coworking spaces come equipped with perks like coffee and water as part of the subscription package, saving you money in the long run. They also feature some standard business services, like business mail. You’ll need to verify this information before setting up your membership with a coworking space, so it’s a good idea to keep a list of which of these perks and benefits are most important to you.
Feeling Free and Motivated
Conventional office spaces have a reputation for being drab and dull, full of broad wooden walls and worn desks. In contrast, today’s coworking spaces are bright and vibrant, featuring open spaces that encourage community and connection. Coworking spaces offer more pleasing designs than standard offices, often including shared coffee spaces, welcoming lounges, and communal hubs that are built to inspire creativity and productivity.
The natural light and pleasant music in coworking spaces are thought to be more conducive to a wide range of work styles, while the variety and open design mean that there’s always something to see. Some experts have stated that coworking spaces can improve productivity and encourage employees to step out of their comfort zones.
Finding a Greater Work/Life Balance
The logical next step to inspiring greater creativity and productivity is encouraging your team to prioritize a greater work/life balance. One of the many benefits of coworking spaces for startups is that employees get to enjoy the best of both worlds. Remote work is convenient, but working from your kitchen table can contribute to a feeling of always being at work, leading to burnout and a lack of connection with the outside world.
According to the Harvard Business Review, people who use coworking spaces tend to see their work as more meaningful, and they tend to believe that they can bring their “whole selves” to work. The report also states that those who use coworking spaces feel more in control of their schedules since they can choose to work from home if need be or in a more collaborative space that allows them to connect with like-minded individuals.
Employees who feel like they have a good work/life balance (and feel valued by the company they work for) will be much more likely to produce great results and maintain productivity goals. All of this means that employees might have a longer tenure with a company or a startup that offers the option of a coworking space.
Get Your Startup Moving with an Inspiring and Productive Coworking Space
Coworking spaces offer structure, community, freedom, and inspiration. No matter what the focus of your startup might be, utilizing the benefits of a coworking space can take your organization to the next level and give your employees even more reasons to love their work. A low-commitment, inspiring, and amenity-rich coworking space is a no-brainer.
Vuka offers coworking spaces that are ideal for entrepreneurs, startups, and remote workers. Our state-of-the-art, flexible spaces offer a wide range of perks and benefits, from interior and exterior workspaces that are uniquely curated to easy access to nearby restaurants and coffee shops. With all the amenities of a traditional office, your startup will experience increased productivity and morale-boosting connections with others.
However you envision transforming your startup into a thriving business, we can help to cultivate, connect and inspire your workspace. To learn more about our coworking spaces in Austin or to get started, book a tour today.