Finally, you have the finances to move your operations from the basement of your home to a workspace more suited to your needs.
You’ve hired your first employees and now need a meeting room where you can both meet your customers and talk to your employees.
You’ve always thought that working in an office was your highest ambition, but now you’re afraid of that?
Even if your start-up is still in its infancy, the decision on the office location could have an important impact on the company’s finances. It’s time to decide: the personal office or Coworking space?
To get an answer to this question, continue reading this article.
Depending on your location, the rental costs for traditional offices can be very high. In HSR Layout, Bangalore, for example, renting a very small space costs 7000 Rs. This means that if you rent a space of at least 300m2 you should be willing to pay at least Rs25000+. The cost of renting also depends on the location of the office: the more the area in which it is located, the more it costs.
There are, however, also many coworking spaces like The Venture Studios offering desks, internet access and a conference room from 6,000 Rs a month.
Even renting an office is currently convenient as it can cost between 21,000 Rs and 30,000 a month.
Reputation and branding
Even though the world of work is slowly changing, many people still feel a sense of security when they see that a company has a physical office because they know that if something goes wrong with a product or service offered they can turn to a specific address.
Also, there may be some customers who are uncomfortable in a public place like a coworking space.
Start-ups, on the other hand, are better off renting their workspace in coworking. Unlike a company that sells products, people who offer digital services probably don’t need a physical office to work in.
What are the plans for the growth of your start-up? Are you planning to hire employees in the next 3 years? Will you need equipment?
Coworking spaces, unlike physical offices, are more flexible and give the possibility to rent a larger area simply by increasing the cost of the monthly rent.
Shared workspaces offer numerous networking opportunities. You can find web editors, digital marketing consultants or administrative consultants in a coworking space.
You can find out what other people in the city are working on and be the first to know about trends that might help you move forward in your business.
An office space takes away this opportunity and, if you have a growing start-up, it is more beneficial for you to have the opportunity to broaden your range of knowledge.
The best area to rent a shared office is a central location close to your clients and not too far away for commuters.
Doing this with a traditional office is difficult because rents are high in urban areas and competition for these spaces is really high.
Coworking spaces are located in various parts of the city and, in this way, you have the advantage of being able to easily locate yourself in a neighborhood.
The decision-making process
Once again, choosing the best place to host your business is one of the most important decisions you can make for the growth of your start-up.
So it is necessary to analyze in detail the capital available, the long-term objectives, the possibility of hiring staff and an in-depth study of the pros and cons regarding the rental of a coworking space or that of a physical office.
This will help you to make the best decision on which choice to make.