Whether you’re expanding, want a more professional environment or are just sick of working alone, there comes a point for every small business where your home office is no longer the right environment.

However, you may not have the finances or a business requirement to rent a permanent office space.

There is another option. One that is more flexible and cost effective compared to a traditional office space: coworking.

An estimated 3.8 million people will use coworking spaces by 2020 and many small businesses are turning to this way of working.

The benefits of coworking

These shared workspaces can be used on an ad hoc basis. You can rent a desk, dedicated office or a meeting room on a monthly, weekly or daily basis. And you’ll join a community of entrepreneurs and small business owners all seeking to carve their own path.

You will also thrive in a coworking environment. Coworkers feel more in control over their work, and that this is more meaningful, research reveals.

In short, there are many pros and cons for small businesses using coworking spaces – but the greatest advantage is the boost you will see to your bottom line.

Why coworking is a cost effective solution

If you use a coworking space then you’ll only pay for what you need – and there’s no contract should you change your mind, unlike an office rental.

For example, let’s say you want to work in the Manhattan area of New York. At a coworking space, you can rent a shared desk for just $25/day or $250/month. And a dedicated desk is roughly $400/month.

Depending on the size of office and amenities you need, a six-month fixed contract office rent come in at least $1,000/month in the same area.

Work in a hassle-free way

You also need to consider the expenses surrounding a lease including broker fees and security deposits, which will all add to the cost of renting an office. However, coworking spaces lease out desks or offices for a fixed rate.

If you run your own business, then you know that time is money. If you sign up to a coworking space then you don’t need to spend your precious time haggling leases, fixing the printer or troubleshooting any network issues.

A coworking space will sort out these issues – leaving you free to focus on your business.

Solve logistical nightmares

You’ll also need to pay for a range of facilities if you want to rent a permanent office space. Internet, phone, furniture and security costs will quickly mount up.

At a coworking space, all this is included in your rate. You just need to pick a spot to work, plug in your laptop and login to the superfast internet – without worrying about any of the behind the scenes logistics.

Could coworking help you make more money?

A coworking space may not just help you save money – but make it as well. One-third of coworkers reported an increase in income and the majority of coworkers anticipate rising incomes (61%), more work or increased orders (61%) and more contacts (73%) in the year ahead, research reveals.

It’s easy to see why. Coworking spaces are networking hubs where you can build leads and brand loyalty in a business-savvy environment. Figures from the 2017 Coworking Forecast also reveal that, since they have started working:

• 74% of coworkers are more productive,
• 86% have a larger business network,
• 93% have a bigger social network.

Takeaway

A coworking space will not just provide a flexible, hassle-free and cost effective work environment – it could help you to generate revenue through the networking and business opportunities these communities of small businesses and entrepreneurs offer.