How coworking spaces can save costs - and jobs

For both employers and employees alike, transitioning to a working from a coworking space can save jobs - in more ways than one. For the individuals it can greatly improve their wellbeing, productivity and therefore their job satisfaction. For the employer, in addition to this benefit of a happy and engaged workforce, the savings on operational costs for coworking space when compared to a traditional office are significant. Let’s take a closer look at some of the direct financial savings that can be made for organisations in giving up their office lease to move into a coworking space.

Coworking spaces have the power to transform your work life. They do not only provide comfort and a sense of community, but an inspiring work environment with ergonomic furniture design, free coffee and networking events. To these benefits we add that coworking spaces can help companies save on operational costs, no doubt why most startups and small to medium sized companies choose them instead of traditional offices. The benefits of coworking spaces are unmatched!

If you are still contemplating whether coworking spaces are a good fit for your organization, we suggest you delve into our article on the 4 Top Reasons Why Coworking Spaces is a Great Idea for Both the Employer and the Employee to gain more insights.

So how can coworking spaces cut operational costs?

Next, we will explain to you how coworking spaces can help you cut operational costs such as rent, utilities, repair and maintenance costs, and furniture and office equipment. Let's dive in!

1) Rent

Many businesses assume that renting a permanent office space is essential, yet this may not be the most prudent expenditure for those companies in their early stages of development. Although in the long run it could prove to be beneficial, you might want to consider other alternatives such as working from home or virtual offices, since renting an office means having very high costs. Why risk having problems paying rent, when you can significantly reduce operating costs by incorporating a remote work setup? If working from home isn’t exactly your thing, you should consider renting an office in a coworking space. By doing so, you'll be saving money because compared to the cost of traditional office spaces, coworking spaces are more economical and budget-friendly.

Most coworking spaces offer the following options:

Hot desks

What are Hot Desks?

Hot desk means a temporary desk space. In this area, you'll share your desk and have access to common areas such as the kitchen, so this is a great opportunity to interact with the coworking members from different companies. This option is great if you do want to go out of your home office once a week, but do not want to be tied to any coworking space. Keep in mind that, since you do not have any assigned desk for you, you'll sit in any seat that is available at that time. Remember to check whether the space has everything you need for the work day: from kitchen/cafe to phone booths!

If this option sounds more than good for you, check out our plans. We at One Coworking have made it easy for remote workers like you who want to have full flexibility in choosing the place they work from.

Costs

The cost of a hot desk depends on the location and other amenities. For example, the price for a day of a hot desk ranges between 15 and 40€ in Germany. An array of spaces require hourly or daily payments, while some offer the option for a monthly subscription fee.

Fixed desks

Its name speaks for itself. If you like the coworking area, but would like to sit in the same spot everyday. With a fixed desk, you'll enjoy the benefits of having exclusive ownership - meaning that you can personalize your workspace however you'd like. Be it through storage, extra computer equipment or simply decorating with any personal touch.

Costs

The price of a fixed desk depends on the location of the space and the amenities as well. This price ranges between 175€ and 350€ per month.

Virtual address

Virtual address gives you full flexibility. It is the way to go if you prefer to work from home, but need a mailing address for your business address.

Private offices

A great option if you need a private space for your team. The capacity of these offices varies in the spaces: some have offices for 2 people, while others only offer offices for 5 or 6 people or more. Depending on the size of the space, you will find small or larger offices.

Costs

The price of a private office varies significantly depending on the location, the space, its capacity, and your requirements. You can expect to pay between 250€ and 550€ per person per month.

2) Utility bills

Electricity, water, internet, and the list goes on. Utility bills can be a cost-burdening addition to any operational expenses, yet they are essential for its successful operation. When you rent out coworking space, those utility bills become an afterthought as they are already included in the monthly subscription fee!

3) Repair and maintenance cost

There is no surprise there is pace for maintenance costs when renting a traditional office. The coworking space will not only provide maintenance staff, but they are also there to assist you with any issues that may arise. Once again, you'll save money and time by not having to carry these costs.

4) Furniture

Unless you do not want it so, coworking spaces offer completely furnished private offices: desks, chairs, and furniture for communal areas such as the kitchen, restrooms, couches and entertainment areas for relaxation breaks. Moreover, most coworking space providers offer meeting rooms that are either included in the monthly price or that you can book additionally. Besides chairs and desks, you can expect to make use of audio visual and other equipment such as flip charts, speakers, screens, projectors, whiteboards, etc.

Shifting from a permanent traditional office to a coworking space can help you cut costs significantly. Coworking spaces offer different workspace solutions to solve different needs. Avoid the hassle of having to purchase items such as printers or WiFi by taking advantage of their shared services. What are you waiting to enjoy the benefits of New Work?

If you're a startup, coworking spaces can provide an incredible boost to your growth. Check out our Startup Success Guide: Leveraging Coworking and Flexible Workspaces for Rapid Growth for insights on how to maximize the potential of these spaces.

Need some help? Send us an email to help@onecoworking.com. We will be happy to help you find the right space for you and your team.