Over the years, the concept of offices has gone through several changes. Once, people would have spent their entire working life in a small corner office, then came the trend of working in functional cubicles, and then came offices with several comforts such as a pantry and a gym. Enter coworking spaces, and the entire concept has got transformed. You may or may not have heard of coworking spaces before, but they’ve already become a trend across the world.
In this post, we’ll discuss all the things related to coworking spaces so that you can reap their advantages whenever required.
Let’s start with the basics!
What is a coworking space?
A coworking space essentially is a shared workspace. These workspaces offer a broad range of amenities such as meeting and conference rooms, printing and stationery, housekeeping facilities, administrative support, cafeteria, parking, to name a few.
Coworking spaces typically offer different types of solutions to suit the varying needs of their members. These commonly include hot desks, dedicated desks, and cabins with a varying number of seating arrangements. What these spaces allow for is true flexibility and freedom. The work culture is truly conducive to productive conversations and organic collaboration.
What is the History of coworking space?
To understand coworking spaces, you should take a look at their history. Bernard DeKoven, an American author, lecturer, and game designer, first used the term “coworking” in 1999. But at that time, DeKoven was referring more to the “way” of working instead of the “place” to work. His vision was firmly rooted in a desire to eliminate hierarchy from the standard professional structure and increase collaboration. In 2002, two Austrian entrepreneurs opened Schraubenfabrik in Vienna in an old factory.
This so-called entrepreneurial centre was built with the objective of accommodating PR consultants, architects, freelancers, and start-ups to collaborate in a place other than their houses. In 2005, a programmer Brad Neuberg opened the first official coworking space in San Francisco on August 9. While the concept was certainly innovative, nobody showed up to work in there.
Finally, Ray Baxter, a start-up developer and athlete, became the space’s first member, and consequently, the first official co-worker. The space was kept open two days a week and offered five to eight desks along with free Wi-Fi, shared lunches, massages, meditation breaks, etc. However, it closed its doors in 2006 and was replaced by the Hat Factory. In 2006, Chris Messina, the guy behind the Twitter Hashtag, created The Coworking Wiki – an open-source online resource to help co-workers across the globe to connect and discover coworking spaces in different cities. Soon after Neuberg set the trend, other cities noticed it.
In 2006, Brooklyn Coworking, the first coworking space in New York City, opened its doors. The Global Coworking Unconference Conference (GCUC) was established in 2009, and it’s still an authority in the coworking landscape. There were more than 2,000 coworking spaces across the globe by 2012, cementing the trend as a global phenomenon. And by 2014, the number of people coworking around the world stood at around 295,000. As of 2021, there are around 20,000 coworking spaces worldwide accommodating around 2.45 million members, and there’s no sign of the growth slowing down.
Why coworking spaces became so popular?
The popularity of coworking spaces continues to grow as the providers themselves keep expanding. But why are these spaces becoming so much popular in such a short period of time? Here’re the key reasons that may make you feel interested to start working in such a space.
-
They’re highly cost-effective
For a new entrepreneur or a start-up, renting an office space is one of the most necessary things. While some might be able to afford it, most people cannot. Coworking spaces give these people the opportunity to utilize a common working space without having to spend a large sum of money on renting an entire office. Moreover, you won’t need to pay for setting up the infrastructure as coworking space providers offer fully-furnished facilities. These spaces also give you the ability to scale up or down. It means if you suddenly need to expand your team or reduce the number of team members, they can comfortably accommodate the changes, and your cost will go up or down accordingly. With traditional office spaces, this is a lot more difficult to accommodate because you typically need to sign a long-term lease agreement with fixed terms and conditions.
-
You get a more productive work environment
Working from home or a cafe may be fine for a few days, but in the long run, you’ll start having trouble staying productive and concentrating. However, with coworking spaces, you’ll always stay a lot more focused and productive. As you’re using the space for a certain fee, you’ll naturally want to utilize your time as effectively as possible. Additionally, you’ll be surrounded by professionals focused on their work. No matter how tired, frustrated, or unmotivated you may be feeling, being around people who’re working hard to achieve their goals will help you remain more productive and feel more energetic.
-
You can interact with other professionals
Even you work from a cafe, the chances of being able to connect with other professionals is very low. As coworking spaces are typically occupied by many professionals from different industries, you’ll be able to meet and interact with them and grow your professional network. This not only helps to broaden your horizons but can also help your career grow in the future. The collaborative work environment of coworking spaces also makes outsourcing prompter and easier, owing to the fact that you can collaborate on projects without having to commute or schedule long-distance calls.
Given all the above factors, it’s no surprise why professionals around the world are accepting coworking spaces wholeheartedly.
Who are different users who can use coworking spaces?
Now that you know the advantages of coworking spaces, let’s see the different types of users who can reap them.
-
Coworking spaces for individuals
Coworking spaces offer social opportunities and general human interaction, which help to fill a unique void that many individuals experience. Also, when you need a professional setting filled with amenities for a few hours or days, opting for a coworking space will be your best bet. You’ll only need to pay for the exact hours or days instead of making any long-term commitment. Even if you need to use such a workspace in the odd hours, you can do so because many coworking spaces remain open 24/7.
-
Coworking spaces for freelancers
Coworking spaces offer freelancers the best of both worlds. First, you can choose a coworking space in a location that’s convenient to your schedule. Whether you need one near your client’s office or your child’s school, you’ll most likely be able to find a suitable one. And second, you’ll be able to maintain your own routine. Freelancers typically need to go after jobs and be highly disciplined and focused on their work. When you enter a coworking space, your frame of mind becomes automatically better to stay motivated and productive.
-
Coworking spaces for corporates
By choosing coworking spaces, corporates can save lots of time and money required to search for a new space and turn it into a functioning office space. When large businesses expand to new geographical locations, they often start with a fewer number of persons, and then the team slowly builds up.
As coworking spaces are incredibly adaptable, they can easily accommodate the requirements for a larger team whenever required. On the contrary, opting for a long-term commercial lease means either suffering from the lack of space or paying money for the underutilised space. Coworking spaces act as the playground of innovators while offering a collaborative and social element. Together these two give corporates the opportunity to generate innovative ideas.
-
Coworking spaces for start-ups
While start-ups require an office space to operate from, traditional office spaces often remain financially out of reach. Coworking spaces are surprisingly less expensive than traditional office spaces and have a broad range of amenities included in their packages. Another key factor that attracts start-ups to coworking spaces is that members don’t need to pay a hefty deposit amount.
They can start using these spaces with a nominal deposit amount, and then, they need to pay the rental according to the usage. Most coworking spaces have meeting and conference rooms that start-ups can use to showcase their ideas to prospective clients. The community in coworking spaces also helps start-ups to expand their network and collaborate if required.
-
Coworking spaces for SMEs
Many SMEs try to cut costs wherever possible. As a result, they often cannot jazz up their own space, which ultimately leads to a drab workspace. On the contrary, coworking spaces are thoughtfully designed to keep the members inspired and focused.
The ability to save a large sum of money is another reason for which many SMEs prefer to use these spaces. Instead of paying for a long, inflexible, and expensive contract, they only need to pay a nominal deposit amount and an all-inclusive monthly rental that ensures they can keep overheads low. Moreover, when it comes to SMEs’ products or services, there’ll likely be other members in coworking spaces who can use them, improve them, or help to promote them. These opportunities are very difficult to come by in a traditional, private office.
What are the types of coworking spaces?
While every coworking space has some unique attributes, there’re some types of coworking spaces that are commonly offered by all of these spaces. Here’re brief overviews of each of them to help you understand their true concepts.
-
Hot desks
When you opt for a hot desk, you wouldn’t be assigned a fixed desk, and hence, you may have to change the desk on a daily basis. Typically, this is the least expensive type of coworking. However, you’ll still have the accessibility to the amenities on offer such as cafeteria, breakout zones, meeting and conference rooms, etc.
-
Dedicated desks
As the name implies, you’ll be assigned a fixed desk for the entire duration of your membership plan. While you’ll share the common space with other members, you’ll get your own desk along with a lockable storage cabinet. One key advantage of using dedicated desks is that you won’t need to pack all your things at the end of each day. Due to these advantages, dedicated desks are more expensive than hot desks.
-
Private offices
The accommodation capacity of private offices varies greatly depending on coworking space providers. It may comprise just one desk or an entire floor with multiple offices, meeting and conference rooms, along with open plan areas. The biggest advantage of private offices is they’re lockable, and only the members can access them. While this is the most expensive type of coworking, if you’re concerned about the data protection and privacy of your business, choosing a private office will be your best option.
Who are the leaders in coworking spaces in the global market?
The five biggest coworking space providers (in random order) in the world include:
Founded in 2010, WeWork operates a whopping 800 locations in 119 cities across the globe.
Spaces, part of IWG (International Workplace Group), was established in 2008 and now has more than 431 locations across the globe.
Having started its journey in 2012, Venture X now operates 45 locations across 5 countries.
Industrious was established in 2012 and currently has more than 100 locations in more than 50 U.S. cities, along with locations in Singapore and the United Kingdom.
Founded in 1978, Servcorp presently operates more than 150 locations around the world across 22 countries in 44 cities.
Who are the leaders in coworking spaces in India?
Five top players (in random order) in the coworking industry in India include:
This internationally famous coworking space provider operates 35 locations across 6 cities in India.
Founded in 2016, CoWrks currently has 17 locations across 5 cities.
Workafella started its journey in 2017 and currently operates 11 locations in 4 cities.
Having started its journey in 2016, Smartworks presently has 28 locations in 7 cities.
IndiQube was established in 2015 and currently has 54 locations across 6 cities.
What is the Growth overview of coworking spaces?
The total number of coworking spaces across the globe was estimated to be more than 18,000 in 2019, which grew with an exceptional CAGR of more than 29% from 2013 to 2018. And this number is forecasted to reach 36,000 by 2025. The worldwide coworking space market is anticipated to reach $8.14 billion in 2021 from $7.97 billion in 2020 at a CAGR (compound annual growth rate) of 2.1%, according to a recent report by ResearchAndMarkets.com. The report also stated that in 2025, the market is anticipated to reach $13.03 billion at a CAGR of 12%.
What are the different advantages of coworking spaces?
In coworking spaces, you’ll be surrounded by motivated individuals, which will automatically make you feel motivated too. Being able to be part of a supportive community is another major advantage of working in these spaces. Whenever you get stuck at something, most likely, you’ll be able to find a helping hand to sail through.
Utmost flexibility is one of the biggest advantages of these spaces. Instead of signing a long-term lease agreement and paying a hefty deposit amount, you only need to pay a nominal deposit amount and the rental according to your membership plan. Finally, you’ll be able to meet and interact with professionals from a diverse range of industries, which will essentially help to expand your professional network.
How to choose the right coworking spaces for business?
With a large number of coworking spaces available these days, it often becomes quite difficult to find out the right one. Here, we’ve jotted down a few key things that you need to consider when searching for a coworking space.
-
Stick to your budget
The cost of coworking spaces varies significantly depending on the provider, location, and your chosen membership plan. If you’ve got a tight budget, be sure to thoroughly research your shortlisted spaces before finalizing one, and stick to your budget.
-
Choose a proper location
Even if you need to pay slightly higher for a coworking space located in a premium location, you should go for it. If you cannot afford one in such a location, ensure that your chosen place has easy access to transportation facilities and places to eat nearby.
-
Check out the amenities
Many coworking spaces offer a wide range of amenities, some of which you may not at all require. However, you must choose a space with some essential amenities, including high-speed Internet, air conditioning, printing and stationery, pantry, housekeeping facilities, administrative support, and parking.
-
Evaluate the networking opportunities
By having the ablity to network with other professionals, you may expedite your own professional growth. Therefore, it’ll be a smart idea to see who’re the existing members of the space before you finalize it. You can also try to choose a coworking space that’s already being used by professionals from your industry. Additionally, it’ll certainly be helpful to join a space that organizes different kinds of professional and networking events.
-
Evaluate the physical environment
What is the cost of opting coworking spaces?
According to Deskmag, in the United States, the average monthly cost of a hot desk is $195. The average cost of a day pass is around $23, and the average monthly cost of a dedicated desk stands at $387.
How is coworking different from that of working from office?
True mobility and independence are two key factors that differentiate coworking from working in a traditional office. In coworking spaces, the environment is genuinely conducive to interaction and organic cooperation. They allow professionals with diverse abilities and skills to interact with each other and collaborate. This kind of collaborative work culture is almost impossible to be found in a traditional office.
How should prepare yourself for first day at coworking space?
Once you’ve zeroed in on a coworking space, you should do a little preparation to have a convenient, safe, and enjoyable experience to work in there. First, ensure that you’ve got something durable to transport some essential things to and from the space. These may include your laptop and its accessories, any dongles that you may require in the space, a pair of noise-cancelling headphones, your water bottle, etc.
Second, in case your laptop’s wireless capabilities aren’t compatible with the Wi-Fi connection offered by your coworking space, you may want to buy an external Wi-Fi adapter. Third, ensure to use a good VPN for the sake of safe communication and transmission of files over the Internet. Fourth, employ a strong password for your laptop so that no one else can open it when you’re away from your desk.
Fifth, if you aren’t already using the cloud, start doing it so that you can retrieve your documents and files easily if something unwanted happens. Lastly, if you need to use an app to carry out your work, download them beforehand and check that it’s working properly.
Comments