In getting up on their feet, startups have enough financial worries as it is. It's hard to afford the overwhelming cost of office space before money starts coming in. Coworking has allowed many startups to have a physical space where they can conduct business while sharing the responsibility for the rent. It lends a legitimate feel to a business, which is something a startup definitely needs as it builds a client base.
It Works Well With Most Industries
'Real estate companies and freelancers have been doing this for some time, even before the practice had a name. Since its upswing, coworking has become a popular model. Companies use coworking successfully for sales, customer service, marketing and payroll needs. It is not necessary for some departments in a company to use office space on a full-time basis. Those departments are the best candidates for coworking. Engineering companies thrive on the idea of coworking. It tends to fall between employees working from home and working in an all-inclusive corporate building. People who work independently may be the best prospects for this approach.
It's Useful in Major Cities
According to GoFloaters, coworking has been gaining strength in India due to the intense need for space as well as the incredible working demands of the country, making this trend a worldwide fad. Because of the limited office space, cities in Southeast Asia have been coworking longer than many in the western world. Coworking continues to flourish in Hong Kong, Shanghai, Bali and Mumbai as well as Washington, DC, Los Angeles, Denver and San Francisco. Regardless of where coworking takes place, a major concern is that office space can be hard to afford. This is true for both new and established companies in many places.
Lessen Your Risks
Startups are historically short on funds, and there is usually a valid fear that the business might not work out. In case that clients don't come, where will you be with all that money put into office space? Even if you become successful, it's much easier to adapt or pivot when your working capital isn't largely invested in overhead. An ingenious person with similar needs and marginal funding came up with a reworked idea of sharing office space, costs and amenities with unrelated businesses. It could work for you as well.
Coworking is not new. The modern concept applies to businesses sharing their space. For startups that need to be able to focus on building their business instead of coming up with rent they don't have yet, coworking makes sense.
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