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Coworking – Why the world’s biggest companies are sharing space.

Workplace
Author since:
October, 2015
90 blog posts

Why would any large company choose coworking when they have the  time, infrastructure, and money to be able to take on a conventional office lease?

Sharing office space has been the working style for many creatives, freelancers, tech start-ups and entrepreneurs for quite some time. It is a very economical way of having your own office address and the kudos of an established one if you choose.

Less  Cost

In a coworking space there is no need for huge cash deposits, added running costs for communication infrastructure, rates, tea, coffee and all the other expenses that come with a traditional lease. It also takes the risk out of being committed to a long lease when you are not sure how the business will go at this time.
It has been about ten years since the first coworking spaces started to appear and moved many solo workers out of the back bedroom and into established business.

They immediately transformed the entrepreneur skyline and became great incubators for businesses testing the market place. This was especially so for tech companies who were hitting the market in great waves with an idea and a computer.

Many of the largest tech started in this way. Take a look at Instagram, Uber and Timehop and they all started in coworking spots around the world. Coworking has never quite outgrown its association with young creatives, tech start-ups and entrepreneurs – until now.

It seems to be a growing trend that instead of moving out of coworking offices, larger companies are moving back in.

They’re turning their back on conventional offices and choosing creative coworking options instead. And it’s not companies you’d expect to revel in relaxed atmosphere policies at coworking hubs – HSBC, the Bank of England, KPMG, Hiscox Insurance and Microsoft are a few examples that have taken coworking spaces in the past few years. It seems established businesses moving “backwards” into coworking spaces?
Office Developers who were very reticent to do anything but sign up traditional ling leases only 5 years ago are now changing. They have been forced to look at different models because of the sheer volumes involved in coworking.

Temporary solution

There’s a number of reasons why coworking is appealing to large companies. For some, it’s a temporary solution while they sort out other premises, refurb or because they have run out of space. For others, it’s an opportunity to cut back on office spend and invest that money elsewhere. But for most, the community, collaboration, and flexibility benefits of coworking are the main draw.
Coworking offices are a great temporary solution. They give a professional, functional plug-and-work space. They often have immediate access you sign and start working immediately on an easy month-to-month basis.
Shared offices are the cheapest way to rent office space as you don’t need to pay for the design, fit-out, furnishings or for any professional help with negotiations. All ongoing costs tend to be covered in one monthly bill, dramatically reducing accounting time, while shared use of electricity, utilities, housekeeping, a reception team, insurance splits the bills and brings costs right down for everyone.

Productive Atmosphere

Coworking spaces have an atmosphere that can’t be replicated in house. When you walk inside, you can really feel the energy, inspiration, and productivity. There’s a sense that people are there to work on their passion and do what ever they can to make it happen. Think about what it feels like to be in a room with so many enthusiastic people who chose to show up for work, feel valued and wan to contribute. This group of people often not only share space but friendships, ideas, contacts, and countless synergies.
The social structures created by coworking have an invaluable impact on people and performance. There are many studies that show the benefits  on employee productivity and happiness. It is even proven to cure loneliness in some cases as HBR also investigated. Workers feel both individual autonomy and an important part of a wider community, which is shown to be the ideal balance for employees to feel valued.

Working  for recruitment

Coworking is a useful recruitment tool for this reason. If you offer people, and especially millennials, an exciting place to work with the opportunity to meet countless new people, you’ll have the edge over a competitor who has a sterile or traditional conventional office.
Large companies who choose coworking are essentially saying that their people are the most important part of their business. They’re saying they want to make sure you love being at work and  you can enjoy the social aspect of the workplace. There’s no such thing as “Oh no it’s Monday” at many coworking spaces.

The longer coworking exists the more popular it is going to become.  As early adopters grow into larger businesses and remember what it felt like starting up in a coworking space. Their first job or solo venture in the mid-2000s may have been based in a coworking space when the workstyle was taking off for the first time. Now, they’re at big corporations and understand first hand that the conventional style of working isn’t what they or future employees want and need.

Coworking for grown-ups

Coworking spaces have also grown up with them – many are now slick, stylish spaces managed by professional teams with receptionists, IT specialists and more help on hand to take care of your every need.
This means there is no need to add this support staff to your payroll.  Large businesses are feeling the advantages: happy people, great recruits, strong work performances and substantial money savings.
Historically, the clear majority of coworking clients have been start-ups and growth-phase small businesses. There is now a huge rise in the enquiries companies are receiving form international and national corporations who are testing this experience. Our guess it that they will witness great results and that this way of working will become a place where new entrepreneurs are working shoulder to shoulder with larger corporate.   A synergy made in successful business heaven!

Up Next

Complete Guide to Virtual Offices

Workplace
Author since:
October, 2015
90 blog posts

Want to take your business from home to the next level and build customer confidence? A virtual office or mailing address is the most cost-effective solution. Read on to find out everything you need to know about taking a virtual office.

What Is A Virtual Office?

A virtual office is an office address without the physical space. It’s a way of using a business address and support services without going to the expense of leasing a real office.

Virtual offices are great for freelancers, entrepreneurs and small businesses who need a credible address for their website and business details.  Many businesses expanding into new locations will also use a virtual office – a business address in the area they want to be seen working in.  This shows an established local presence in that location.

 

What Are the Business Benefits of a Virtual Office?

Credibility

The business address in a virtual office  is a powerful image-boosting tool. It gives the impression that you have the resources to lease your own office in a prestigious location and hire your own support staff. This is a great advantage for new and small businesses as you will top competitors when it comes to credibility, location, and professionalism, despite being new to the market.

Support

As well as having an address to use, rather than a PO Box number, the virtual office address also has a real office attached to it which means that if customers calls or turn up there is someone there to talk.  They should make it feel to the customer that you are actually based there.

Many, such as Workplace, also have the option to work and meet from the space as and when you need to.   If you don’t want this option regularly you can just pay a day rate as and when you need the space or to meet with clients.

Flexibility

Virtual offices are great return on the money you invest, and you get a lot of kudos for your money.  They are an excellent stepping stone into renting an office space. When you rent a virtual office, it’s easy to upgrade your package to include more services. Virtual office packages are flexible and affordable with the ability to scale up or down when you need to.

Google Search

You can register your virtual address with google.  This means that when people search for your product or service in a particular area you will be listed.  This is great if you want to generate business from the city centre, but you live out in the beautiful Cheshire Countryside.  a Virtual address  also puts a picture of your virtual office on the google search and not your home.  Many people don’t realise that by using your home address you are also letting people view the outside in a search through google maps.

 

How Much Does It Cost to Rent A Virtual Office?

Virtual offices are the cheapest type of flexible office space. Most companies will build a package to work around you and your needs be it simple mailing, registered address with companies’ house or additional meeting space.

At Workplace it is £40 per month for mailing including mail forwarding or £50 for a registered address with the same mailing facilities.  Many people then add on services such as day meetings or multiple day meeting with clients or colleagues.

 

What Is Included When You Rent a Virtual Office?

Most providers offer the ability to tailor your virtual office package to your needs with a unique combination of services and bespoke pricing. Here are the most common inclusions when you rent a virtual office.

Business address

A prestigious business address in a location you want to be seem is one of the most beneficial aspects of a virtual office. It suggests you have the resources to rent office space and it boosts your credibility whether you’re new or established. For expanding businesses, a local address in the new market encourages prospective customers to trust your offering.

Mail handling

The practical use of the business address is that you can have mail and products sent there rather than to your own home. Staff will organise and forward mail for you and you know there will always be someone there to sign for your parcels.

Equipped meeting space

Many venues give you access to booking meeting rooms at a reduced cost.

These rooms include a professionally set meeting space, super-fast WIFI and refreshments.  They also offer a welcome host for you and your delegates giving more of a presence for your business.

Ad-hoc use of coworking space

You could choose a simple address for your business address that does not have the use of space attached.  A great advantage is to choose a mailing address where you can turn up and work there.  At Workplace we offer anything from day use to full time use.  Many virtual office members will work form Workplace one or two days per week.  This builds a relationship between then and the team working at Workplace. In turn, this helps to understand your business needs and customers.

 

 

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