As coworking continues to gain in popularity, more and more people are asking the question: what is a coworking space?
We’ll talk about the basics of a coworking space, how to choose a good one, what kinds of people can benefit from them, and go over any other typical questions you might be thinking of.
Have you wondered if they are right for you? It may be, it may not… we’ll see.
What is and how is Coworking?
It refers to working together under one roof using the same resources but for different businesses. It is a modern style of work where people share a common office even for independent activities.
Coworking spaces offer a suite of office-like amenities like shared desks, private meeting rooms, kitchens, coffee, and more. They are also often offered as a community.
Differences between Coworking and Networking? Many people ask this question, so we will answer it now. Mainly, networking is the action of meeting others and creating relationships, while coworking is just a shared workspace. There are not necessarily dynamics to connect with other professionals in a Coworking.
In short, you can network in a coworking space, but not vice versa.
Differences between Coworking and Coliving? This other term is frequently mentioned and is nothing more than a space in which professionals with similar interests or concerns get together to live together for weeks or months. In these, there is almost always a person who serves as a facilitator or organizer to facilitate the stay and resources.
Benefits of Coworking and How It’s Done: Some Examples
If coworking spaces are essentially shared workspaces, then they offer affordable office space for those looking to escape the isolation of a home office or coffee shop.
So culture and cost are the biggest draws. But it is falling short.
These are the five benefits for which we recommend you enter coworking.
- Motivation:The amount of energy you feel and how productive you are increases when you are in a place full of motivated people, involved with their professional projects.
- Collaboration:If you visit these places often, you will meet regulars and familiar faces, many of them willing to help you with your work. We are well aware that many highly profitable professional relationships are born in coworking spaces.
- Flexibility:Instead of signing a long-term lease, you can get much more flexible deals with coworking spaces. It’s ideal for startups with small entry-level budgets, and even independent freelancers can find affordable options.
- Contact Networks:When you are close to so many people with so much in common, it is only a matter of time until you begin to get to know them and see new opportunities arrive in a fluid and organic way.
- Leaving home:Working from home has its benefits but it is also easy to fall into a routine. Being around other people is good for creativity.
Where is Coworking Born?: Its Origin
The word “coworking” is said to have been first used by Bernard DeKoven, who described it as “working together as equals.”
Basically, I defined this concept as people who are self-employed or who work for different employers, but share ideas, tools, and coordinated meetings through a computer network.
It is rumored that the first coworking space was created in Berlin by hackers to share information. Classes, seminars and all kinds of social events were held there. These then reached Vienna, New York, San Francisco, and Brooklyn.
Who Uses Coworking Spaces?
Anyone can take advantage of coworking spaces, regardless of their profession, but these are the profiles that visit them most frequently:
- Freelancers and remote workers
- Small companies
- Companies (often build coworking spaces for employees)
- Non-profit organizations (they benefit from agreements or discounts)
Coworking spaces are perfectly suited to all of these types of organizations.
Why Do, Use or Work Through Coworking?
A team of researchers has been studying the effects of coworking on productivity and recently reported some of their findings in The Harvard Business Review.
Their research showed a strong connection between employees who thrive in these shared workspaces and regular offices. So much so that they decided to delve into coworking spaces.
Correlated with coworking spaces were feelings of more meaningful work, more control of work, and a sense of community.
Where is it? Is Coworking Being Done Near You?
Taking everything we have talked about as a reference, you will realize that you can find Coworking spaces almost anywhere in the world.
The most populated cities (especially the technologically advanced ones) are full of these. When searching on Google, you will find multinationals such as WeWork, ImpactHub, or Regus, and a large list of smaller or less well-known ones.
Keep in mind that you can always find cheap and even free coworking sites, although it is always advisable to analyze the reason for this.
At Shortnews247, we put a lot of time and effort into understanding how to create the best working conditions for our own team and our team members. We have studied hundreds of cases over the years and we know how important the work environment is.
Thanks to our experience, we identify a good work environment when we see one. That is why it gives us great pleasure and satisfaction to recommend Eteria Business Center in Elche, Alicante.
The spaces of this business center aim at the highest quality standards, guaranteeing a positive experience for all the businessmen who choose them. For both coworking and meeting rooms for important meetings, with Eteria we achieve optimal service.
You can get more information about Eteria on their website or go directly to Google Maps and pay a visit to their spaces .
How to set up and start your Coworking: Business Plan
The big question that many of us ask ourselves after visiting coworking spaces and seeing how many people visit these places is: are they really profitable as a business?
Yes and no, depending on many factors. But to give you an example, some of these spaces, once established and with only 100 members, can generate around €15,000 per month, if the average monthly membership fee is €150.
How exactly does this business model work? Let’s break down the three most popular types of coworking spaces:
- Open Space Coworking:Mainly offers desks, lounges, and an occasional conference room for members who need privacy. Memberships are offered for specific access to shared areas, with the option to purchase a dedicated desk to store your belongings.
- Coworking office space:Not everyone can work in open spaces. In general, companies that have legal or financial rules and regulations cannot use the open coworking model, but instead rent their own exclusive space.
- Shared Office:Consists of 90% dedicated lockable offices with a smaller open common area. This model is more like a typical office that caters to smaller businesses that want a suite.
It is important to outline these differentiators of the coworking model, since coworking is usually included in a general group (which is often a mistake). Depending on which model you prefer, there is usually a big financial impact on your results.
Primary costs include:
- Lease or purchase of real estate.
- Architectural fees for zoning.
- Plan designs.
- Construction materials.
- Technology, software and security.
- Staff salaries.
- Inventory such as coffee, printers, paper, among others.
That said… Have you ever wondered: How do you make money with Coworking spaces?
Below you can find the main ways that coworking spaces usually make money.
- Membership Fees:This is the main monetization model, where users sign up to use your space. These packages offered can range from private offices to open space memberships.
- Rental of services and equipment:Your membership dues represent the majority of your income, but do not overlook the possibility of increasing the sales of members who require more resources.
- Coworking on demand:not all users want to join the membership. Offering on-demand usage is a popular way coworking spaces can hedge risk by catering to a different and unique community of professionals.
The rest of the preparations to set up your coworking are very similar to those of another business (form a legal entity, obtain permits and licenses, open a bank account, register and/or design a brand). And all of these vary depending on the country you are in.
If you are seriously thinking about setting it up, you can be inspired by success stories and “failure” stories about companies that have tried it before:
Although we all know them as a very successful company in the area of e-commerce, it may surprise you to learn that they rented a space in New York and failed, by their own admission, because they did not have “the right elements” for coworking.
It was closed several years ago, even with a lot of interest in the coworking space. The problem with this coworking space was a combination of factors, including that its co-founders were always on the go and no one could spend enough time on the project.
It was a very popular coworking community within San Francisco, but couldn’t keep up with the financial demands. It closed due to lack of funding even with its large membership.
Taking a look at some of those examples, you can learn how to avoid in order to be successful. For example, the most common reason for failure is not having a team dedicated to the correct monetization of potential services.