SMEs Today Prefer Opting for Co Working Spaces Rather Than Buying an Office

Words like digital nomads and remote working are often associated with today’s working culture. The way people prefer working is quite far-fetched from the traditional working environment and many companies today have joined the bandwagon of this very “non-traditional” working culture, in order to cater to the working style preferences of their Gen Y and Z employees. The companies that one may see getting involved in different working styles are usually SMEs since already established MNCs may prefer working the way they already are considering the fact that the usual 9-5 working culture hasn’t completely been eradicated yet.  Also, an already established firm that works on a large scale may find it quite inconvenient to suddenly make a number of changes in their methods of functioning, and if one does decide to go by the needs of the current generation then a change in real estate will be a must, something that involves a ton of money and effort. Since we can conclude that this will therefore most likely be a no-no for most large-scale firms, it isn’t too difficult to conclude that those who may indulge in this way of working may be owners of small and medium sized businesses.

However, while taking into consideration the fact that these changes will undoubtedly benefit employees, it is important to have a look into the details about how it may also benefit the company.

Less Expenditure

There is no denying that coworking spaces are booming, while hosting various independent professionals as well as start-up teams under the same roof. The fact that co working is way cheaper than buying or renting an independent office- after which one has to look after the furniture, décor, maintenance and various other aspects that also cost a great deal of money- reduces expenditure. Here is how we can breakdown reduced expenses for a better understanding:

• Real Estate: As already mentioned, hiring a few desks at a co working outlet can work out cheaper than renting or buying a space for work.
• Furniture: Since co working spaces are already established work spaces, many of which offer a variety of seating arrangements, business owners who choose to be part of them can avoid buying furniture which to be fair does cost a fortune.
• Décor and interiors: No business owner likes a place of work that isn’t well set up. Bare walls and a monotonous look in an office can lead to an excess amount of stress to the team and can in turn lead to inefficiency. Since co working spaces come with vibrant environments, one can definitely strike that bit out from their budget list and get an office that may be as good or even better than what he/she had imagined.

Lower Chances of Risks

Apart from swimming with sharks, sky-diving and other risks that can be associated with an adrenaline rush, no-body really likes taking risks and especially not financially. Co working spaces  offer terms that are so flexible, that one can rest assured to be far-far away from a potential Risk factor, in almost every way possible in case things go sideways. Here is how businesses can avoid risks by being part of co working spaces:

Real Estate: Due to their very flexible payment plans, co working spaces help businesses avoid the risk of buying or renting a place. Buying a place or leasing one for business is a huge risk since if things do not work out in the favour of the firm, or it takes too long to break even, then the business may start seeing losses and may have to shut down. Such a huge investment in something that isn’t a 100% secure when it comes to making profits can be avoided by renting a co working space or an office space that offers flexible lease terms instead.

Furniture and Interiors: When you own a place of your own, you are bound to buy furniture and work on the interiors to make yourself and other people comfortable in order to cater to the basic ergonomic needs as well as mental well-being. In the unfortunate situation of a business being ceased, selling off this furniture will involve a lot of time and effort. In order to avoid that, co working spaces can be a great option!

Networking:

Co working houses individuals from various professional backgrounds which gives opportunities to network. Some co working spaces also host professional and casual events that encourage social interaction amongst various teams and other professionals, which give them the opportunity to grow.

The post Why SMEs Choose Co Working Spaces over Others appeared first on Unispace Business Center KL Sentral | Blog.