Why are Co-Working Spaces Best for Business Start-Ups?

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Starting a new business can be very challenging and 90% of the new businesses do not last for more than 1 year. So if this is your second year in the business, welcome to the new and much stronger group of entrepreneurs.

If you are a new business, managing business overheads and your personal expenses at the same time can be difficult and especially there are no guarantees if your new business idea will work. Therefore, your preference will always be to spend money on what you need rather than like and try to save every penny which can be spent on useful things.

One of the biggest and fixed business overhead is the rent which we need to pay anyway unless we decide to work from home. Nowadays, there is an increasing trend of using co-working spaces which are a lot cheaper than signing up for 5-10 years long term leases and paying higher costs. It is advisable for startups to always consult business advisors to get the right guidance for their jumpstart.

Here are 5 Simple Reasons Why are Co-Working Spaces Best for Business Start-Ups

Cheaper Rent

When you share an office or any other business premises space with other people, your rent is a lot cheaper than signing up on your own.

No Long Term Contracts

With most of the co-working spaces, you may only be required to provide 30 days or less notice period to the management, whereas, with signing up a lease for an office or warehouse, you are locked for at least a minimum of 2 years or more period of time. It means you are required to pay the rent even if you decide to leave the premises.

Minimum Outgoings

If you are sharing the workspace with others, you are also sharing electricity, water and other amenities and it is less costly to pay these bills on a shared basis rather than paying on your own for the whole workspace.

Opportunity to Interact with other like-minded people

Running a business on your own can be very lonely and challenging and overwhelming sometimes. By sharing a workspace, you get an opportunity to mingle and network with like-minded people and get to share ideas and learn new things every day.

Opportunity to Grow your Business

When you are using a co-working space, you get an additional opportunity to market your services or products to other people in a similar workspace. If you have good dealings and trust with them, they will definitely become your clients and would recommend you to their friends.

I hope you enjoyed this article and please feel free to contact us at 08 9200 0582 if you have any questions.

Nilesh Vasoya

Nilesh Vasoya

Nilesh Vasoya is a CPA and experienced business advisor with 15+ years’ experience in accounting and tax, and certifications from NTAA, ICAI (India). He is also a Registered Tax and ASIC Agent. Nilesh specialises in financial reports, cash flow, taxation advice, internal audit, account reconciliation, and advice for small businesses on maximising XERO, MYOB, and QUICKBOOKS. He is experienced in developing strategies for growth within small-medium scale companies.

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