Renting out of shared spaces at low cost for official operations makes complete sense. Any one setting up a personal office needs some time in hand and funds.
With coworking office spaces, professionals can leverage immense productivity at a fraction of the cost of full-fledged office set up.
Infact studies show that coworking spaces can help you save up to $2,700 per month especially if you run a relatively small team and you have less than 12 members.
Believe it or not, coworking can be 60–70% more cost-effective than the traditional office model for businesses with up to 30 employees. Moreover, multinational corporations can also cut costs by up to 25% if they switch to coworking spaces.
So, how is this possible?
First of all, coworking space can alleviate the financial burden by removing the need to buy or lease offices.
In the early days of your company’s existence, the down payment for office space probably put a significant dent in the budget. By choosing a coworking model, you can set up shop without risking bankruptcy.
At the same time, shared workspaces are already full of desks, chairs, and filing cabinets. If you are a fan of the money-conscious mentality, you will appreciate this aspect as well.
Instead of fronting the bill for a bunch of new office chairs, you can join a coworking facility and get right to work without worrying about having adequate office furniture.
You want to find ways to minimize spending and cut down expenses. But sometimes, that’s easier said than done. At times, operating costs can be greater than the profit you earn.
And unfortunately, some businesses fail to survive. But if you can find ways to reduce operating costs, you may just see the light at the end of the tunnel.
One way you can do so is by using a coworking space instead of renting your own office. In this article we now share with you many ways the coworking spaces can help companies:
One of the main Coworking office advantages is that you can lower your rentals considerably. As per the 2020 report by Anarock, coworking offices provide a cost advantage over traditional workplaces.
Coworking operators typically take large areas (10,000 to 20,000 SqFt) so they are able to negotiate a lower bulk rental compared to a startup who may require only about 1,500 to 2,000 SqFt.
Moreover, the coworking company will furnish the office to make it ready for use. The cost of furnishing could be quite expensive. By moving to a Coworking space, the startup can enjoy lower lease rents and save 100% furnishing expenses.
Moreover, many leading coworking operators in Nairobi, such as Nairobi Garage, offer additional discounts on rentals.
Also, Nairobi Garage offers customized office space packages to suit all types of ventures, and budgets.
Whether you’re growing at lightning speed, going steady or keeping it lean – we’ve got office space packages to suit your needs.
Along with furniture and office equipment, coworking spaces also offer other amenities like a kitchenette with a microwave and coffee machine and de-stressing zones.
Spaces like Nairobi Garage also have onsite cafes, that avail snacks and beverages for members. -dash- is Nairobi Garage’s in-house café providing a variety of affordable coffee supplied by Spring Valley Coffee.
These amenities may not be affordable for startups on their own. You can also enjoy front desk services, which is typically an additional expense for small businesses.
Also, when you work out of a shared office, you need not spend money on setting up a meeting room or conference hall.
The Coworking office will have meeting/conference rooms, which you can use for free for a few hours every month, based on the package you choose. You can avail of these facilities subsequently by paying additional charges.
Commuting costs and employee travel allowance can also take up a considerable amount of your budget. Startups, SMEs, and entrepreneurs can save costs related to commuting by opting for Neighborhood Coworking spaces.
You can choose offices in multiple locations in the city, and your employees can work out of the office closest to their house. Neighborhood coworking typically caters to customers within 5 km of the office radius – it means you and your employees can even walk to work.
Utility bills are yet another thing adding to one’s operating costs. But they are an unavoidable expense as you can’t work without electricity.
However, when you rent out a coworking space, the utilities are already included in the payment.
And the great thing about coworking spaces is that most of them provide free WiFi as well. So, you can even save more money compared to getting a traditional office.
When you have a traditional office space, you’re not just employing people directly involved in the company’s operations.
The maintenance staff is also part of the payroll. So, that’s another thing adding to your operating expenses. But you can’t just do without them because the maintenance staff are also vital members of your team.
Luckily, when you decide to work in a coworking space, you won’t have to worry about hiring your own staff.
The coworking space will already be employing maintenance staff that is also there to help you.
When you rent a traditional office space, you will be getting a bare office. And you’re going to have to fill that up with furniture if you want to create a conducive work environment.
This includes several desks, chairs, and furniture for communal areas. When they all add up, you’re going to be spending lots of money to furnish your office.
But this is no problem when you go with a coworking space. They’ve already furnished it with the best coworking amenities.
And this doesn’t just mean a bunch of tables and chairs. Most coworking spaces will also provide different areas such as a conference room you can book, a kitchen or pantry area, and even couches for those wanting a break from their regular desk.
In conclusion, the operational cost of running a traditional office space is massive. That is why most startups fail to get the boost they need to survive in the initial phases. Here, coworking spaces come to the rescue. These are highly affordable and come with a wide range of advantages. If you are looking into joining Nairobi Garage, you can email us at firstname.lastname@example.org or book a tour here.