THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
PART 1
Why Buying Your Own Space Isn’t Always The Best Option An article published in the MIT Entrepreneurship Review bears out the fact that business location is a key ingredient to success. The resources that foster growth and development within an organization – like revenues, talent, and others – draw from real people, and a good setting within which to do it further adds to the value you can get from those resources.
THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
WHY BUYING YOUR OWN SPACE ISN’T ALWAYS THE BEST OPTION
However, that does not automatically mean that you have to shell out a lot to ensure yourself of a good office location. In fact, buying your own office space is not always the best way to go – especially if you are a startup. Here are two good reasons why:
●IT’S ● EXPENSIVE. Property and market intelligence
resource Reis reports a 2.1 increase in the average cost per square foot of office space for the second quarter of 2013, compared with the same period a year before. This rate increases relative to the size of the space. In addition, overhead costs such as utilities, equipment acquisition and maintenance, and others have to be factored into total monthly expenditures and, the bigger your space, the bigger your overhead will also be. Businesses that are just starting out may find shouldering these costs all at once too much to handle.
THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
WHY BUYING YOUR OWN SPACE ISN’T ALWAYS THE BEST OPTION
●IT’S ● RESTRICTIVE. Startups may be fueled by some
of the most innovative ideas, but these ideas can go to waste if they do not find the right setting in which they can take off. Offices, in general, operate as stand-alone entities. While this encourages a lot of good things, it also restricts your startup from realizing its full potential. Making and closing deals, as well as learning more about your market, will require you to venture out of the office because there’ll be little, if any, opportunity within a standalone space. Moreover, putting up an office of your own requires having enough capital on hand to spend on all the right tools to run essential business processes – otherwise, your company’s productivity may suffer.
Startups also usually have a ways to go before they are able to establish themselves – there will be challenges to face in terms of finding just the right number of people to employ, client dynamics, and strategy adjustments. Moving into an office of one’s own is something that many business owners, in retrospect, realize should be done only when the business is stable enough to hack it on its own.
So what should you do instead? Find out in the next section of this e-book. THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
PART 2
Making Shared Workspaces & Shared Services Work During the first part of our e-book, we listed the reasons why buying your own office space is not ideal. Today, let’s look at how you can set up an office from which to run your business without breaking the bank.
THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
MAKING SHARED WORKSPACES & SHARED SERVICES WORK
Just because buying an office space of your own may not be ideal right now does not mean that you should give up entirely on having a physical space to conduct your business. You still have two options worth considering: to share or to rent a space on your own. Consider these factors to determine which option is best for your business situation:
●FUNDS. ●
Renting an office space costs considerably less than buying one, but it still costs more than sharing one. If you do not think your funds can tide you over a monthto-month contract, consider splitting the bill with another company. Better yet, look for providers who offer both a “shared” physical space, with existing amenities, and a suite of services that you can choose from. Having a provider that can cover all your basic services at a fraction of the what it would cost you to hire someone permanently for a specific job sounds pretty smart, doesn’t it?
THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
MAKING SHARED WORKSPACES & SHARED SERVICES WORK
●WORKING ● SETUP.
Do you need high-powered printing machines? A state-of-the-art video conferencing system? A comprehensive IT environment? You can have all these and more by finding an established company that was set up specifically to offer these as shared services. You cut overhead significantly by buying into a concept similar to one long used in the stock market – the concept of mutual funds. Except in this case, a provider puts together everything you and other like-minded companies can possibly need, then charges your company a monthly, quarterly, or yearly fee to cover whichever services you decide to use.
●NETWORKING ● NEEDS. If you are looking to grow
your business contacts and relationships, working out of a single office together with another company or several other companies could be the way to go. Sharing the same space with other businesses may open up new connections or opportunities to find affiliates. For startups that need all the help they can get, networking is particularly important. THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
MAKING SHARED WORKSPACES & SHARED SERVICES WORK
●EASY ● COLLABORATION.
Sharing an office space with other companies – regardless of whether they occupy different niches in the market – is a good way to bounce ideas off of other people. “Water cooler conversations” present great opportunities to make casual connections that may turn helpful, later on. For all you know, with a partner or two who sells products or services that are compatible with, or complementary to yours, you can more easily grow your business.
●FACILITIES ● AND AMENITIES.
While some office spaces for rent may have the facilities that’ll allow you to hold regular meetings or conferences – virtual or otherwise – not all of them will. Finding a company that can provide you with or share what you need in terms of space and functionality requirements – to hold routine meetings and conduct similarly important business transactions on-site – can help you minimize the hassle and stress of setting up a suitable area meant for this purpose all on your own.
Without a doubt, finding someone to share a space with, or hiring a provider that can custom-fit space and service requirements based on your current needs – with the ability to keep pace with your own business growth – can spur bigger opportunities that could ultimately lead to phenomenal business success.
Ask yourself now: exactly what kind of office do you need? We cover the essential requirements in the final installment of our e-book, up next. THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
PART 3
What Makes An Office Space Worth Sharing We now understand why buying our own office space is not ideal, and we’ve discussed why sharing a workspace is infinitely better than renting a space on your own. Now, let’s delve further into the conditions that make an office space worth sharing.
THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
WHAT MAKES AN OFFICE SPACE WORTH SHARING
Of course, not all office spaces are designed to be shared. Some will be really well-suited to your needs but not quite what your “partner� company or co-sharer may need. A lot of spaces will only truly be good for one business. So, what should you look for when looking for office space to coshare?
COMPREHENSIVE TECHNOLOGICAL SUITE
The right IT environment makes all the difference in the world, whether or not you are a tech startup. One with cloud-based storage, for instance, can secure your business data and processes better than, say, one with a simple IT setup. Communication platforms should also be comprehensive. Invest in a workplace solutions provider that features enterprise-class technologies for conference meetings and dayto-day operations. Also, make sure your chosen provider offers excellent technical support.
AN ENGAGING ENVIRONMENT
Your workplace should also be fun and engaging, with amenities that make for easy communication among your workers. Some workplace solutions providers have cafes where entrepreneurs can lounge and chat, as well as network with likeminded individuals. Some even have game and relaxation rooms to allow your workers a bit of leisure time. THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
WHAT MAKES AN OFFICE SPACE WORTH SHARING
FUNCTIONAL AND SECURE
If comfort is a priority, so must be functionality and security. When push comes to shove, your office should also be able to accommodate your employees’ need for concentration and privacy. Fortunately, there are providers that can offer you private spaces where you can hold closed-door meetings when you need to do so.
FLEXIBLE TERMS
Your contract should also be flexible, according you with the freedom to pick your own terms. For instance, some commercial spaces allow month-tomonth contracts; while others require yearly leases. Opt for a setup that satisfies your requirements, as well as meets your budget.
ONE LAST THING
Since 2005, the number of co-working spaces in the US has skyrocketed to more than 700 – and there are a lot of reasons why this is so. If you decide that this is the way to go, you can count on having a lot to gain. Just make sure that you choose the right workplace solutions provider – with the right terms – so as to make the most out of your startup. Choose well, and you’ll be sure to take your business to where you want it to be.
THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES
METRO OFFICES
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THE BENEFITS OF SHARED WORKSPACES AND SHARED SERVICES