Shared Office SpacePeter von Boeck
The benefits of shared office space are obvious for various reasons. Traditional office requirements are always one of the major overhead cost a business has. A cost which in slow times needs to be covered from reserves or even private savings.
However you are operating a business in the first place to be profitable and one of the techniques how to do that, is by cutting or limiting the cost of your expenses.
Traditional office space is very costly and requires long term commitments in form of typical 1-3 years lease term agreements. Additionally you need cash to buy furniture, telephone equipment, maybe you even want to get a contractor to build out some space to your specifications. A kitchen would be nice and a conference room, of course you need space for a reception area, which also requires a paid receptionist.
When you are at the beginning of starting your business and you have frequent customer contact, spending money to get your own office can rise to tenth of thousands of dollars, considering security deposits, build-outs and equipment.
Shared office space does not require any of these cost and therefore has become an extremely attractive alternative for companies. Not only start-ups are using co-working space, but also many professionals and larger companies who utilize it as a satellite location.
The way a business center usually works, is that a large office space, likely a whole floor of it, is converted into multiple smaller to mid-sized units and several conference rooms. It may have a shared open space for single workstations and a break room for soft-drink and coffee services.
The shared office space is than operated by the landlord or management company, fully staffed and furnished. The shared receptionist can be used to have your individual company phone answered. The executive offices can be occupied on a monthly base or just by the hour or day. Meeting rooms can be rented in the same way, oftentimes they are just needed for a few hours.
In a summary the benefits of shared office space are
- No long term agreements
- Can be scaled up or downsized in any way
- No initial cost for furniture, build outs or equipment
- No cost for security, insurance or large deposits
- Turnkey solution, allows to occupy space within hours
- Management and administrative staff on side, representing you in your companies name
- Virtual Office plans available for below $50 for anybodies budget