Do you know there is 33% cost saving in using Coworking space than others?
Why its like that?
How can we save more?
We are giving full picture of Individual office space vs coworking space comparison.
When a startup or a corporate thinks of selecting the most appropriate option or a working place to run his business or a startup, he particularly considers two commonly selected options, i.e., Traditional Renting Office Space and Coworking Office Space.
Choosing the most appropriate working space between these two options can be a difficult task for an individual as of the available options has its own advantages and disadvantages. Selecting the most appropriate working place also depends on a lot of other factors such as the type of the business, the human resource needed, and the type of facilities and resources needed to efficiently run that business.
Let us discuss the advantages and disadvantages of Traditional Renting Offices and Coworking Places in detail.
Traditional Rented Office space
Renting an office for running a business is the conventional method of running a business. An owner sets up his business on a rented building or an apartment and employs staff to run his business smoothly. One can easily get an apartment on rent depending upon the size, resources, and location he prefers. Nowadays, offices are available even in the malls, markets, and many business-friendly places that are equipped with mostly all the needed facilities and resources.
But, like every other thing, traditional renting offices have both advantages and disadvantages that one must consider before choosing them as their working place.
Advantages of Traditional Renting Offices
- Freedom and Privacy: As compared with Coworking Spaces, one enjoys complete privacy and freedom to carry his business in his desired plan. There are no borders and obstacles when it comes to running your business in a traditional working place. You have the complete freedom to move around in your office, make necessary changes in the office, communicate with anyone at any time in your working area, manage meeting and conferences without taking anyone\’s permission, and many other things.
- Working Space: An individual running his business in traditional renting offices has an access to each and every part of the office, and he can make use of any amount of area in the office he desires to. You need not seek anyone\’s permission. There is no need to share your working space with anyone else; hence you get a lot of leg space for yourself in these traditional working spaces.
- Individual Growth: Traditional Renting Offices encourages every one of their employees to work efficiently and effectively to achieve productive results. In these working spaces, the management could closely monitor the activities of the employee and could correct them whenever it is required. It, in return, helps increasing employees\’ morals and assists in their growth.
- Effective Branding: Having a personal space to run your business, you get the advantage of promoting your brand. Your office would be dedicated only to your brand and, as a result, would attract individuals towards your specific brand instead of focusing on other brands.
Disadvantages of Traditional Working Offices
- Employee Dissatisfaction: Traditional Renting offices, though sound beneficial from an employer’s point of view, for employees, this is not the best option they seek for. It makes a limit for employees as they have to work in a confined area, often mentioned as cubicles. It not only decreases the work-drive of employees, but it also decreases their ability to ponder upon better business ideas to put in their efforts into the work.
- Very Costly: This can be an important element that makes Traditional Working Offices not appropriate for many corporate freelancers and for individuals who wish to run their startups. Renting a personal office space comes with a considerable amount of cost that has to pay regularly (either monthly, quarterly, or yearly). A functional working space would cost you around 30-40k a month, and this is not the end of it. You will have many other expenses, including maintenance costs, electricity bills, water bills, Internet Bills, and many other things that will only increase the burden on your pocket. Hence, renting an office space does not only include paying rent for the office, but it also comes with a thousand different costs(rhetorically).
- Long-Term Contracts: Renting an office space is not similar to renting a housing apartment. One needs to sign up for a contract that includes at least a year of the lease. It creates a constant burden on the pockets of the entrepreneur, and it reduces his flexibility of spending his savings and revenues on his business projects.
- Managerial Difficulties: Working in corporate world and particularly in traditional renting offices arises with some challenges, predominantly being the managerial challenges. The proprietor of the firm has to devote a lot of time in dealing with the employees and various other things in the company. It moves his emphasis from running his business efficiently and effectively to supervision tasks other pointless but critical aspects that could influence his business in the long term.
As of now, you must be clear about all the advantages and disadvantages of Traditional Renting Offices. Now without further delay, let us discuss the advantages and disadvantages of Coworking Office Spaces that are in trend right now.
Advantages of Coworking Spaces
- Flexibility: As compared with traditional renting offices, Coworking space delivers flexibility for a businessperson to run his trade efficiently without facing any hurdles. In Coworking spaces, there are no such long term contracts or lease bonds at all, neither for an worker or for an individual businessperson.
- Everything At One Place: Coworking spaces offer businesspersons with all the required facilities such as Printing machines, Internet Connectivity, Fax Machines, etc., in one place. It not only saves a lot of time in searching and arranging for these things, but it also reduces the entire unnecessary burden on their pockets.
- Economical: Running your business in Coworking spaces is the most economical option for entrepreneurs, corporate freelancers, and even for those who are working for different companies. There are many Coworking spaces available that might seem costly, but if you talk about the overall aspect, even the expensive Coworking spaces are economical. While running your businesses or working in these working spaces, you only have to pay for the membership fees, rest, everything will be provided to you for free. You need not pay any amount for electricity bills, water bills, and you also have access to high speed and unlimited internet connection. You have all the facilities at your disposal, including photocopy machines, scanners, fax, free parking facilities, and whatnot. You get these things from the single time payment that you make while taking the membership. At present, Coworking spaces even offer you with limitless tea and coffee an oher beverages that help in your mind fresh and active for the whole day.
- Creating Networks: Coworking spaces are the places where a businessperson gets to interact with like-minded entrepreneurs who are into a similar profession. One also get to meet entrepreneurs who are effectively running their businesses. It helps you create a good network of these people, which will help you in collecting amazing ideas from these experienced people.
- Wide-Reach: Through Coworking spaces, you can promote your business efficiently in that particular place without making many efforts. You can also test your products and can take reviews from the people working in a similar category.
Disadvantages of Coworking Space
- Crowded: It could be the biggest drawback of Coworking spaces. Generally, you will see Coworking spaces equipped with a large number of individuals. Although it might become a good way of increasing your network, it would also distract you in many ways that would have a noticeable impact on your business.
- Not The Most Economical Option: It might seem absurd, but yes, there are even more economical options for individuals and corporate freelancers to run their business. If you do not have much monetary resources available, you can proficiently run your business from home, library, or could even run your business in cafes.
- Unavailability Of Conference Rooms: As you share your workplace with different kinds of entrepreneurs and freelancers, there can be times when other persons occupy each conference room accessible in that place. It would create trouble for everyone as one would not be left with any other choice instead of making a rearrangement for your meeting on some different dates.
Having said this, all the possible advantages and disadvantages of Traditional Renting Offices And Coworking Spaces have been discussed. Now it must be clear to you as to what kind of working place is suitable for you.
For those who are still in doubt, let us give you a brief comparison between Traditional Office Spaces and Coworking spaces.
- Money: If money is not the issue and you want to set up your business in a personal space and maintain, then Traditional Renting offices are best for you. Whereas, if you\’re going to save your expenses and not in need of personal space, then you can blindly choose Coworking Spaces to run your business.
- Nature of your Business: Choosing a working place also depends a lot on the nature of your business. If your business demands a significant human resource and regular meetings and conferences, then Coworking Space is not meant for you. One must only opt for Traditional Renting Offices in that particular case.