Are Coworking Spaces Worth it?

Coworking spaces have evolved from a niche to a global trend, with businesses of all sizes embracing the concept of a shared office space. Now that startups and freelancers make up a large percentage of the workforce, one of the most common questions that arise is, are coworking spaces worth it?

There are a few factors that need to be considered to determine if a coworking space is worth it for your business. This can range from the cost-saving benefits and the amenities, which are often provided as part of your coworking package.

What are Coworking Spaces?

Coworking spaces are a type of shared office space which is typically used by freelancers, startups, and remote workers. These shared office spaces provide a variety of benefits that can be appealing for businesses of all sizes.

Coworking spaces are now also being embraced by large businesses as they recognise that many employees value flexibility, and desire a hybrid working environment. For a business stuck in the dilemma of deciding if a coworking space is worth it, the cost-saving benefits is often the major influencing factor.

The Cost-Saving Benefits of Coworking

One of the most appealing factors of coworking spaces is the cost-saving benefits it offers businesses. When you consider the rent of a traditional office space, there are many additional costs which are often not considered. These include furniture and fit-out costs, I.T. infrastructure and telecommunication set-up fees, floor maintenance etc.

A business committing to a traditional office space can expect a lease term of anywhere from five to 20 years depending on the location

This is a large cost and requires confidence in your business to indefinitely succeed and be able to survive.

This is where many businesses believe coworking is worth it. The cost saving benefits of coworking are:

• Range of amenities: Small businesses and entrepreneurs often lack the amenities and tools to compete with larger scale businesses. While many coworking spaces only provide a desk and a chair, Servcorp is able to scale business up by providing enterprise level tools. Servcorp's coworking amenities include a powerful business address, a receptionist to answer calls the way you like, in-house I.T. support, secretarial assistance and global access to any of our locations.
• No long-term leases: Whether it's a month-by-month, half year or full year contract, coworking spaces provide commendable flexibility. This feature is most beneficial for startups and entrepreneurs, making coworking worth it for them.
• Easily scale up or down: Have a bigger team? Easily accommodate for the exact number of employees, while having the capabilities to reduce the number of desks when required. This is one of the key features which makes coworking spaces worth it for businesses.

And these are only some of the benefits of a shared office space.

Is Joining a Coworking Space Worth The Expense?

This is dependent on a number of factors and often depends on the business's lifecycle stage.

If you are a small business looking for an established presence in the market, then a coworking space is worth the expense. The biggest difficulty a startup faces is acquiring affordable space to operate from, and since a large percentage of the workforce is now comprised of startups or entrepreneurs, coworking spaces are seeing a significant uptake.

For large-scale organisations, coworking is definitely worth the expense as it ends up saving money. Large businesses which are implementing flexible working conditions and introducing the hybrid work model can cut down on the desks, electricity and space required by incorporating coworking spaces.

Ultimately, the value your business receives from the coworking membership should be the final deciding factor. If it's simply a desk and a chair, then it's no different to operating from home or a cafe.

Coworking that works will provide credibility and marketing power through a good address, supplies in-house I.T. support, a dedicated receptionist to answer your calls, and global access to many locations, thereby delivering value for money.

The Disadvantages of Coworking Spaces

As with everything, there are disadvantages. These disadvantages may range from your coworking provider, so be sure to do some research.

Lack of Privacy

If you are working on a sensitive project or task, it can be difficult to find a quiet spot in most shared office environments. Any private calls which may be discussing confidential client information can easily be overheard by coworkers, which in some cases can lead to lawsuits.

This complication can easily be avoided by doing some research and a tour of the floor. Ask questions about how busy the floor gets and what facilities are available if a private space is needed. For example, Servcorp's coworking spaces offer private booths for phone calls to ensure privacy for our clients.

Inflexible Working Hours

Due to the nature of coworking spaces, they are only open during standard office hours. This can limit the productivity of businesses who need to operate outside of these hours, such as startups or entrepreneurs who often work odd hours.

If you're searching for complete autonomy over your work hours, then a Servcorp dedicated desk may be the appropriate solution. Unlike hot desks, these allow personalisation and can be accessed 24/7.

Stagnant Productivity

It has been proven that humans are creatures of habit, and often our productivity is linked to our surroundings. If you are used to working in public spaces such as a cafe, then you may emulate that setting when in a coworking space and feel too relaxed.

A coworking space which looks professional can make the difference between feeling productive and being lazy.

Distractions

Some coworking spaces are designed to create a relaxed appeal. This can be great in some aspects but can also serve as a distraction when taken overboard.

For example, creating too much of a 'home-like' setting, or having pop music playing in the background can end up taking away from the purpose of joining a coworking space in the first place.

Your goal is to enjoy flexibility, whilst having a space which enables you to focus.

Congestion

Every coworking space has its own rules for which business can qualify to use the workspace.

Some coworking providers are very relaxed on these regulations, and have very minimal checks in place which results in congestion. Having too many people utilsing the shared space can feel overwhelming and becomes a distraction.

Servcorp's coworking spaces ensure that your neighbour is a legitimate business which has undergone several checks.

Examples of Coworking Offices

When looking at a coworking space it's also important to look at the surroundings, accessibility and what's available in the area.

One Mayfair Place

Located minutes from Green Park, the Devonshire House is an iconic landmark property which is home to several corporate headquarters. The building is in the heart of Central London, close to public transport and other major landmarks.

The space itself is beautifully designed with a modern touch, providing a comfortable and professional place to work from. Servcorp One Mayfair Place provides the location, space, team and amenities which make coworking worth it.

The Leadenhall Building

The Leadenhall Building is a state-of-the-art, sustainable office building which overlooks the River Thames. The office tower gets its sustainability from a triple-layer glass skin, in which the layers of glass respond to the sun's movement, allowing for the office to be cool throughout the day and reducing energy consumption.

As a coworker at the 225 metre-tall building, you'll have access to meeting rooms with the latest technology, breakout areas, a business lounge and much more. You'll be able to make the most of your workday and get things done in an inspiring setting.

Dashwood House

Dashwood House is a beautiful Grade II listed building which has been transformed into a modern coworking space. The office is located in the heart of London's financial district and is just a short walk from Liverpool Street station.

The space itself is light and airy, with high ceilings and plenty of natural light. The building has been designed to provide a calm and relaxed environment, which is perfect for getting work done. Servcorp is on 17th level in Dashwood House and is in close proximity to many notable landmarks such as St Paul's Cathedral, House of Parliament, The London Eye, along with a large variety of café and bar options.

The Overarching Theme

The main theme which should be taken away from this is that coworking spaces are becoming more popular for businesses and startups. The cost-saving benefits, as well as the ability to have a professional space can be very advantageous and are the determining factors when deciding if coworking is worth it.

Lastly, value received from the coworking membership is the distinguishing factor between coworking providers.