Once known to be a niche concept catering to only freelancers and young startup founders, coworking, as an industry, has grown by leaps and bounds in the last decade or so.
With an increased number of startups making their presence felt across the globe and the rise in popularity of concepts such as productivity, remote work culture and gig economy among others, the industry continues to grow at an unabated rate, both in terms of financial strength as well as the potential it carries.
The growth of coworking in recent years can be gauged from the fact that as per a study conducted by CoworkingResources.org, the number of coworking spaces globally is touted to go up to 40,000 by the year 2024 whereas the number of individuals working from a coworking space is predicted to touch a whopping 5 million people in the same year.
With so much going in its favour, in this comprehensive guide today, we shall be discussing the origins of coworking as a concept and delve deep into how shared office spaces and coworking spaces are shaping the future of work in an increasingly decentralized business ecosystem.
What is Coworking?
As the prominence of coworking increases, more and more people are wondering, “What exactly is a coworking space?” Coworking, in general, is defined as when people meet in a neutral space to work on various projects individually or in groups on the same project.
Since the participants in a coworking atmosphere aren’t all employed by the same organisation, it varies from a conventional office setting.
Coworking spaces have many of the same perks as a typical workplace, as well as a lot more. Since you don’t have to sign a long-term lease in a coworking room, flexibility is a key distinguishing factor.
History of Coworking:
In case you are wondering about how coworking spaces started, the original use of the term “coworking” in reference to a joint office setting was first used by Brad Neuberg in 2005.
He was an indefatigable visionary with high ambitions who established the first coworking space, as we know it today, in San Francisco.
The “San Francisco Coworking Space” was housed inside Spiral Muse, a feminist community space in San Francisco’s Mission district, and was only available two days a week (Mondays and Tuesdays). For the first month, it sat empty because no one had ever heard of a “coworking space.”
When did coworking space start?
The history of coworking dates back to 2005, and it has changed dramatically since then. Brad Neuberg, a software developer, is credited with launching the coworking movement in a San Francisco collaborative space.
The Growth of Coworking:
Coworking spaces are now a worldwide phenomenon, with an average growth rate of 24.2 percent in most major cities. By 2022, it is anticipated that there will be over 30,432 coworking spaces and over 5.1 million coworking participants.
Coworking is the latest way of mixing work and life in a sustainable manner. It is the international centrepiece at the nexus of real estate, technology, and culture that will form the future of work.
What does Coworking mean:
Coworking is about contributing to a culture, connectivity, and sustainability, not just sharing infrastructure and costs. Coworking is a modern way to work and collaborate.
Coworking spaces are built without organisational restrictions on what is considered to be a “office” environment, and are planned to provide a productive and interactive environment for their diverse occupants.
Coworking is a global movement:
A report about the potential of coworking was published by the Global Coworking Unconference Conference (GCUC).
They looked at the nature of coworking spaces and members in 2017 in comparison to global trends and discovered that by 2022, coworking would no longer be a choice, it will be the norm.
Modern coworking spaces are usually larger than older ones, and established spaces are expanding to fit more members within their space.
The corporate business community has taken note of the global coworking trend. Many major businesses, for example, are shifting toward a distributed workforce, with remote employees dispersed around the globe in smaller offices.
Why are Coworking Spaces So Popular?
A coworking space is an excellent choice for those just starting out in business (think startups and entrepreneurs) because it helps them to scale up or down in team size, has low set-up costs due to shared resources, has a strong in-house group to network with, and also has ties to in-house expertise, mentors, and funding opportunities, whilst also being an effective forum for introducing a new product.
Coworking rooms, on the other hand, aren’t solely for startups and entrepreneurs. Members of coworking spaces are, in fact, amazingly diverse!
Coworking for Small Business/ SMEs:
For smaller firms, coworking spaces minimise operating costs, there are no long contracts to adhere to, and anything required to operate a company is typically available, from meeting rooms to kitchens where you can cook up a snack, and the coffee is also mostly complimentary.
Many coworking spaces are situated in high-profile central business districts with convenient access to public transit, cafes, shopping, and gyms, making renting individually an “impossible” fantasy.
Coworking for Freelancers:
For freelancers, coworking spaces mean “independence” in terms of where and when they work, as well as all of the advantages of a harmonious working atmosphere and the benefits of belonging to a group of like-minded individuals.
Coworking is the ideal option for those who would otherwise be forced to work alone at home or in a noisy cafe, isolating themselves.
Joining a coworking space is a perfect means to make new friends, meet prospective consumers, and even meet potential business partners because coworking spaces are full of fascinating and creative people working on all types of businesses.
Coworking for Corporates:
Huge, forward-thinking businesses are flocking to coworking spaces because of the benefits to their workers, which include improved happiness and efficiency as well as opportunities to network with people outside of their own industries.
Coworking spaces offer dynamic networking opportunities for all colleagues on a regular basis, resulting in a group of potential customers, collaborators, mentors, and a plethora of readily available talent. Many host health and wellness events, such as yoga classes and meditation sessions, to facilitate a healthy lifestyle.
The Many Types of Coworking and Coworking spaces:
From hot desking to a dedicated desk, coworking has its own parlance, as well as a wide variety of “styles” or niche coworking locations targeted at staff in unique fields.
Multi-use spaces range from transformed warehouses to halls, and they don’t discriminate based on the type of job you do.
Some spaces are architectural fantasies in ancient structures, some are small-town enterprises while others sprout renewable energy cultures; but what they all have in common is “community,” as well as the aroma of freshly brewed coffee, a scintilla of enthusiasm in the air, and a mellow vibe.
Coworking spaces come in all shapes and sizes, from multi-use spaces with flexible layouts to visual art studios in repurposed industrial buildings, purposefully designed coworking spaces with intuitive wonders to keep you comfortable while you work, to private offices for those who prefer their own space but still want to feel connected to the larger ecosystem or for small startup teams that want to contend in the same field.
Famous companies that started in a Coworking space:
The following are some of the big players who started out as light-bulb instances in coworking spaces:
Demonstrating that coworking spaces do indeed provide exposure and prospects, Travis Kalanick and Garrett Camp met in a coworking space to solve the taxi cab crisis in San Francisco, and they are still holding strong in 51 countries later, with teams working in coworking spaces all over the world.
After a few setbacks, Mike Krieger and Kevin Systrom succeeded in developing the Instagram app in 8 weeks based out of a coworking space.
One of the world’s largest crowdfunding portals, Indiegogo was created in a coworking space by Danae Ringelmann, a Wall Street analyst.
Christy Liu and three other intrepid co-founders in a coworking space developed Wanderfly (2009), which was bought out by TripAdvisor after a year of launch.
What is Coworking (In a Nutshell):
To many different individuals, coworking means many things, and each coworking room is different.
Coworking is a refuge to go when you need to get some work done, instead of the nearby cafe with frantic moms and wrangling pre-kindergarteners, or at home, where you can supposedly do the laundry, vacuum, and cook while working.
A coworking space is a model in which you have the flexibility to operate how you like (even if it’s with a mouthful of brownies), have as much socialisation as you need, tap into the resources of an office, and embrace perks like a comfortable napping corner for when you want to study the inside of your eyelids
What is a Coworking Space?
Coworking is a business service delivery model in which people work in shared office space either individually or collectively. A typical coworking facility user is a self-employed individual, a telecommuter, or a freelancer.
Some companies use the spaces to provide equipment, rooms, and services to their employees that they would not be able to afford otherwise.
When a company has more than the usual number of workers employed at any given time, it can use coworking facilities to provide office space. In this situation, the company may keep a certain number of coworking memberships on hand. The space’s owner typically offers a work atmosphere as well as standard office facilities and amenities
Is it “Coworking” or “Co-working”
The question of whether coworking should be hyphenated or not has been debated for some time. So, how did this happen? The AP Stylebook, which is circulated to journalists all over the world, was the main reason for the hyphenated word “co-working.”
The Stylebook defines how they want to spell and punctuate common names and phrases. The AP Stylebook, in general, favours any prefix (such as co-owner), and this has been handed down in publications to the word “coworking.”
Coworking is a proper word that is often used with a capital ‘C’ to denote a profound and significant definition. “coworking” or “co-working,” with a lower-case ‘c,” is a common term that refers to any circumstance in which two or more individuals work together in the same location but for different companies.
So, what’s the ultimate conclusion? Coworking should be spelled as “coworking” since it is a modern business that does not adhere to more conventional words. Coworking is a wonderful, amazing, thrilling, and vital concept.
The History of Coworking:
Coworking seems to be a normal part of life for today’s freelancers, remote workers, and startup founders, but it wasn’t always so. The tradition of coworking dates back to ancient times, and it has changed significantly since then. We should be aware of the history of coworking in order to fully understand the new model, which is discussed further below:
In Berlin, the first ever “coworking” room was created by hackers. The aim was to allow those who joined the membership to share their opinions, space, and knowledge in order to complete tasks. They have recently added workshops, courses, and a number of social activities, contributing to the growing trend of community spaces. Hackerspaces can be found in San Francisco, Santa Clara, and Brooklyn, and their number is rapidly increasing.
Bernard DeKoven coined the term “coworking,” which he defined as “working together as equals.” Individuals who were self-employed or worked for various employers but were linked by a computer network could exchange ideas and organise meetings. In the same year, a software firm in New York opened a room with a versatile desk setup.
In Schraubenfabrik, Vienna, the first coworking space opened in an old converted factory that started as a community centre for businesses. It grew to include freelancers and other professionals who use mobile phones and laptop computers. The spaces grew and functioned under the title Konnex Communities in 2004, marking the start of the local coworking space network
Brad Neuberg, who felt that home offices and business centers were unsocial and unproductive, opened the first coworking space in August in San Francisco. Desks, free wifi, joint lunches, bike tours, yoga, and massages were all available until 5:45 p.m.
It closed after a year and was replaced by the Hat Factory in 2006. A franchise network in London launched 40 coworking spaces on five continents. St. Oberholz opened the first cafes in Berlin, offering free internet access.
Wiki, a coworking space in San Francisco, was opened. One of the co-founders was Chris Messina, who invented the Twitter hashtag. At the Hat Factory, the first full-time coworking room opened. Brad Neuber, Chris Messina, and Tara Hunt were the co-founders.
It was one of around 30 coworking spaces around the world at the time. Jellies was established as a place for groups to meet and share ideas in a non-committal environment.
The term “coworking” made its first appearance in Google’s database. The number of searches had skyrocketed. The word “coworking” had become a household name in the media. The term “coworking” made it to Wikipedia’s English edition.
Coworking meet-ups took place informally, and the first coworking conference was held in Brussels in 2010. The Coworking Visa was created in August, enabling representatives of different coworking spaces to enter other coworking spaces for free. Cubes & Crayons was the first coworking space to open alongside childcare for infants. There were roughly 160 coworking spaces around the world at the end of 2008.
Germany opened Betahaus, the first official coworking room, which was featured in the Spiegel, the world’s largest new publication. According to Google trends, Germany was the first country in Europe to use the word “coworking” in 2010.
A campaign commemorated the first #CoworkingDay in 2010. In Brussels, the first European coworking conference was held. There were at least 600 coworking spaces in the world at the time, with more than half of them in North America.
The first “Coworking Unconference” took place in Austin, Texas in 2011. The first round of angel support for a network of spaces had begun. Large corporations started to investigate the coworking concept and launched their own chain of corporate coworking spaces.
More than 2,000 coworking spaces were established around the world. Twitter, for example, saw a 50 percent rise in tweets with the hashtag “coworking”, as compared to the previous year.
At the start of the year, a coworking room had as many as 100,000 participants. The 3,000th coworking room opened in the middle of the year. The majority of coworking spaces were operated without the use of networks. They offered the first health care package in an Ontario coworking room.
The New York Times published an article in 2015 about a new concept that combined coworking with the home office at a resort or hotel. “Co-Working on Vacation: A Desk in Paradise” was the title of the story.
The story’s key concept was to combine coworking and co-living on Gran Canaria, a surfing spot in the Canary Islands. The Surf Office was born, having first opened as an experiment two years prior, and has since become a popular hangout for freelancers, surfers and travellers.
The concept of coworking and co-living was expanded. WeWork launched WeLive, a residential co-living community in New York City. The studios, one-bedroom, and two-bedroom units all had a private kitchen and at least one private bathroom.
They were usually furnished, painted, and cable-ready, as well as internet-ready. They also had a group planner who planned festivals and other activities.
WeWork raised money and became the most valuable private tech company in the United States, valued at $20 billion. Its companies were Uber and AirBnB. A total of 1.2 million people were serving in a coworking room around the world.
As of 2018, there were a number of major players in the industry that were offering WeWork a run for its money. Impact Hub, Venture X, and Serendipity were among the coworking franchises that were emerging throughout the region.
WeWork’s value dropped from 49 billion to 8 billion after an unsuccessful IPO attempt with SoftBank, allowing SoftBank to take control of the company and fire its management team.
DropDesk and other new coworking apps also emerged to fill the gap between coworking tools, rooms, and remote staff.
Key Coworking Growth Statistics
- Since 2010, flexible space has grown at a rate of 23% per year on an average.
- In 2019, there were more than 3 million coworkers worldwide. By 2022, this figure is projected to nearly double
- By 2022, 13% of companies outside the United States will be using shared workspaces.
- By 2024, the number of coworking spaces in the world is projected to more than double, surpassing 40,000.
- Co-working spaces were the fastest-growing form of office space in commercial real estate prior to the pandemic. Although they currently account for less than 5% of the industry, they are projected to account for 30% by 2030.
- The top ten coworking and flexible office space providers now account for 36% of the industry (Forbes).
- When it comes to new spaces opening up, New York and London are the world’s leading cities.
The 5 Biggest Advantages of Coworking
Here’s a quick overview of the main reasons why people enjoy using coworking spaces:
There is a feeling of belonging here. It’s incredible how far the group can go to help one another excel in areas where regulars and familiar faces are present.
When you’re in a room full of motivated people, there’s just an aura of accomplishment in the breeze. It’s almost difficult to take a break. You’ll accomplish a lot.
When you have several people with so much in common, it’s just a matter of time before you start networking and new opportunities begin to flow naturally.
Rather than signing a long-term contract, coworking spaces provide even more flexibility. It’s ideal for startups on a shoestring budget, and even freelancers will find an inexpensive alternative.
Getting Out of the House:
Working from home is convenient, but it’s also easy to get stuck in a slump. Being in the company of other people is good for your spirits, keeps you sharp, and stimulates your imagination.
Who uses Coworking Spaces?
In the startup and freelancing realms, coworking spaces are very common. When coworking spaces first became popular, it was common to imagine an (over-the-top) office building where everyone rode unicycles and sat in giant bean bag chairs. Coworking is used by a wide range of businesses, not just those on a tight budget. Freelancers, remote employees, independent entrepreneurs, corporations, small businesses and even non-profits are all examples of people and organisations who use coworking spaces.
Coworking For Freelancers or Remote Workers:
As all freelancers and other 1099 employees work for themselves, a pay-as-you-go contract will save a lot of money. A coworking space is also an excellent place to meet other entrepreneurs and freelancers. It’s a great place to meet new people. If you’re a digital publisher, a visionary freelancer, a developer, or a jack-of-all-trades, there’s a good chance you’ll meet people who are working on similar projects at a coworking space.
Furthermore, you will have the opportunity to speak with people who can assist you in places where you are weak. It’s amazing what you can come up with when you have so many people in one place, all with different skills – even though they’re all doing their own thing. Don’t get the wrong impression: everybody isn’t just sitting around chatting about their tasks with everyone else, but there is certainly some downtime and places where you can chat while taking a break.
The pure, undiluted concentration and inspiration you’ll find in most good coworking spaces, however, is the real draw. When you have a room full of motivated people who are all working for their goals, there is a special energy that exists.
Coworking For Enterprises:
Yes, even major multinational corporations such as Nike have collaborated with coworking companies to meet their workspace requirements. Managing office needs can be difficult when you have thousands of workers working all over the globe. These businesses either hire a coworking company to design a custom space for them or act as the space’s primary anchor tenant.
Coworking For Small Businesses:
Coworking has become common among small businesses who don’t want the expense of a conventional lease. It’s no surprise that small businesses already make up the majority of coworking space users, given the low cost of getting started and the fact that coworking membership provides most (if not all) of the facilities a company requires on a daily basis.
Coworking For Non Profits:
Many coworking spaces have non-profit discounts or packages. These businesses have transitioned towards these versatile coworking relationships because of the all-in cost advantages of coworking (and because they are cost-conscious).
Coworking For Students:
Libraries, coffee shops, and campus research centers have historically been the preferred study places for university students. These workspaces are relatively successful, but they don’t meet the changing needs of students who have adapted to the new world of shared productivity.
In recent years, there has been an increase in the number of college students joining coworking spaces. While the library, Starbucks, or a shared space on campus can provide adequate wifi, there are limitations that restrict the quality of work students may produce.
For starters, most of these facilities have restricted hours of operation, and since they are located off-campus, there is little or no protection if students choose to leave their belongings and go out for a meal or a break. These areas are often noisy, uninviting, or overrun with distractions. Furthermore, remote workers are leaving Starbucks because there is always competition for seats, outlets, and a space to do group work.
Coworking For Creatives and Artists:
There are several coworking spaces around the globe, and artists and other creatives can benefit from these serviced offices. Artists and creatives have their own kind of coworking rooms with facilities tailored to their needs. Artists would be able to find inspiration even more easily in a lively work setting
As a result, they need a coworking space that inspires them in terms of atmosphere, layout, architecture, or venue. For creatives and artists, the environment is an important aspect of a coworking space since they want to be able to form useful connections.
Coworking For Teams:
Teams, whether large or small, are at the core of every business; they are responsible for its day-to-day success. As a consequence, they must feel as if they work in an atmosphere where they can live their whole lives, not just their work lives. This is so essential that Facebook is considering constructing a suburban campus next to their Silicon Valley headquarters.
While the above might not be realistic for 99.9% of businesses, it’s exciting to see how many corporations are now treating workers as individuals and putting a greater focus on their mental and physical well-being.
Every day, a few coworking spaces offer meditation and yoga lessons. Some of them have gyms with personal trainers on board, and a few others host event series focusing on workplace mental health. Taking a page from the tech giants’ book and basing your business in this type of setting demonstrates to your employees how much you respect them as individuals
Coworking For Parents:
Do all parents wish that they could take their children to work every day? The response may be a hesitant “not so much,” an emphatic “yes definitely,” or something in between, relying on a million factors. Consider a world where we all had the choice.
That will be a game changer for someone who doesn’t have a regular job or regular childcare. There are freelancers, part-timers, work-from-home staff, and so on.
As a result, coworking spaces with on-site childcare are a stroke of brilliance. There are separate childcare rooms in several coworking spaces. In order to “take care of the women who take care of everybody else,” some coworking spaces now provide everything from daycare to enrichment courses to a few hours of babysitting.
Coworking For Lawyers:
The Bar Council of India (BCI) recently conducted a verification drive, which revealed that India has over 1.76 lakh lawyers. Each one is vying for a piece of the pie, but establishing a stronghold in such a competitive industry is difficult. This is particularly true if you are new to the industry, since most clients rely on word-of-mouth advertising. If you start a law practice from home or even a small private office in a commercial center, you’ll quickly find yourself unable to pay your bills.
So, what other options are there for a lawyer? Coworking spaces. While the idea has gained a lot of traction in a few niches in recent years, legal practitioners are only now realizing its advantages. Like the saying goes, better late than never.
For law firms, the dictum “it’s not what you know, it’s who you know” is absolutely accurate. A lawyer’s productivity is limited by the number of people he or she knows, and there’s no better place to start building a group than a coworking space.
Coworking For Doctors:
The challenges of escalating educational debt, combined with the astronomically high costs of starting and operating a practice, seem to be unbridgeable barriers to entry for today’s physicians, seeking to establish their own practice. Coworking is a foundational idea of today’s collaborative economy.
When used above and beyond a real-estate-based medical-office sharing establishment or as a temporary overhead workaround for poorly planned medical practices, a medical coworking model helps its members to remain autonomous while still benefiting from the shared economy.
Financial, organizational, and technical advantages, as well as immediate and long-term benefits, are all seen as strengths of participation in a well-structured physician coworking model.
Coworking Vs Other Remote Work Alternatives
Work From Home:
The traditional “office culture” has both advantages and disadvantages. Many online entrepreneurs start their own businesses to avoid some elements of the traditional corporate culture and way of life. When it comes to running a company or even working for someone else, working remotely has opened up a world of possibilities. Despite the advantages, there are certain things you can miss out on.
Working from home or in a hotel room has many benefits. It’s wonderful to be able to get up whenever you want, take breaks whenever you want, and dress in pants whenever you want. It’s also quick to lose concentration and get off track at the end of the day.
Being in an office environment has a way of keeping you focused, on track, and getting the most out of your time.It’s wonderful not having a supervisor watching over your shoulder and monitoring your time when you’re a freelancer or someone else who sets their own schedule, but you’re always responsible to yourself..
Working From Coffee Shops or Restaurants:
Coffee shops and restaurants come in second (to working from home). Many recent coworking models (as of 2017) have converted these spaces into pop-up coworking spaces during their closed or inactive hours. Because of the availability of tables and endless coffee, coffee shops have long been synonymous with work environments.
And apart from that, there are other benefits such as easy wifi and work space for the price of a cup of coffee. There are drawbacks, like all the perks. Since these spaces are often open to occasional drop-ins, noises and other distractions can keep you from getting work done.
Coworking and Coliving Spaces:
Coworking and coliving are two interrelated business ideas that are causing a stir in the corporate world. For digital nomads, entrepreneurs, freelancers, and professionals in all fields, they are transforming the future of living. Digital nomads will work and earn a living while traveling the globe and broadening their horizons by entering coworking and coliving groups
Remote working has given digital nomads the ability to expand their horizons while furthering their careers. It is no longer necessary for digital entrepreneurs to work in leased office spaces. They are not required to enter and exit a physical office. Their plans are naturally more flexible than the normal worker’s.
Many digital nomads lease Airbnbs, operate from cafes, and stay in hotels, but these settings seldom provide a complete solution, such as coworking and coliving spaces. Remote employees can use coworking and coliving spaces to meet new people, improve their efficiency and productivity, and form deep bonds with other professionals
Advantages of Coworking and Coliving:
The following are some of the advantages of coworking and coliving:
Sharing a room with other entrepreneurs and professionals, as well as getting access to a coworking space, is a perfect way to save money on housing. Coliving, like coworking, reduces the additional costs of electricity, repairs, and internet that would otherwise be incurred in a standard apartment or workplace.
You’ll meet other digital nomads who share your interests in a coworking or coliving room. They will provide you with encouragement and inspiration, which will improve your productivity and creativity.
Working from home as a freelancer brings with it varying degrees of distraction. When you’re surrounded by the TV, your dog, your relatives, or your neighbors, it’s difficult to function productively. Both coworking and coliving allow you to reflect on the encounters that are important in your professional and personal lives.
Top 6 Things to Keep in Mind When Selecting a Coworking Space
Before making a decision, consider the following top six tips .choosing a coworking space:
For obvious reasons, location is the most important factor to consider when selecting the ideal office space. Choose a location that is at a suitable distance from your home for traveling. Look for necessities like restaurants, parking, stores, and public transportation that make it easy to get around.
You’ll want to ensure that the location you choose is both economical and long-term for your team. If you’re going to outgrow space in a couple of months, you need to take this into consideration. Ascertaining your budget ahead of time will assist you in filtering out spaces that are too costly early on, saving you time (and money).
Do you need a designated office or are you able to function in an open environment with the use of conference rooms? Are there any legal constraints on how you run your company? You must ensure that wherever you want to operate, you are able to meet your basic business requirements.
You should look at some of the more interesting features of the space once you’ve decided whether it suits your needs and budget. What kind of culture do you want to be a part of? Each coworking space engenders and welcomes a diverse group of people from the surrounding community.
If you’re a graphic designer, for example, you may want to look for a place where you can work with other designers. You want to be encouraged to come to work every day, network, and make new friends, in addition to the “business” reasons for joining a group.
Is it better to invest in the short or long term?:
A basic business strategy is to plan for the future. How long do you want to linger at the coworking space you’ve chosen? Do you want to grow nationally or internationally? Is the coworking space you chose connected to a network of other locations? These are crucial questions to answer before deciding on a place.
Selecting a coworking space with exclusive facilities is always a bonus, even if it’s just cherry on the cake. Apart from the usual free coffee, wifi, and printing, having a workspace that can provide more would make your work life much easier.
The Average Cost of Co-Working Spaces:
The median monthly cost of a dedicated desk in the United States is $387, according to DeskMag. A hot desk costs $195 per month on average. A day pass costs around $23 on average.
The Future of Coworking:
If more young adults understand that they don’t have to follow the crowd and follow a more conventional career route, the number of freelancers and entrepreneurs who make the move is likely to rise. Technology, perception, and potential will drive this. For those joining the workforce today, coworking would be the social reality.
It’s doubtful that coworking spaces will supplant office buildings in general, or that everyone will become a freelancer at some point in the future. Large companies will survive, and new ones will be established from scratch, but they will rely less on providing centralised locations and more on offering benefits like remote working when it is feasible.
In 2017, there were approximately 57.3 million freelancers in the United States alone, and by 2027, they expect that the majority of the US workforce will be engaged in some kind of freelance work, including people who freelance part-time.
Should You Try Coworking?
If you’re interested in giving coworking a try, the best thing you can do is just do it. If you just want to go in, do your job, and leave without worrying about social commitments, don’t worry. It’s similar to going to the gym. Nobody would bother you while you are in the zone because everyone is there to complete a particular mission.
You’ll meet some fantastic local entrepreneurs and create a coworking group if you’re open to talking and being contacted. If you’re having trouble getting things going in your company, startup, app, blog, or whatever else you’re working on, coworking might be just what you need to get things moving again.
Why Do People Like Working in Coworking Spaces?
Coworking space users consider their jobs to be substantial:
Coworking spaces are usually open 24 hours a day, seven days a week. Individuals can choose to work long days because they have a deadline or want to demonstrate success, or they can choose to take a long lunch break to go to the gym.
They have more influence over their jobs:
They can either choose to work in a quiet environment where they can concentrate or in a more social environment with shared tables where communication is promoted. They can also choose to work from home without consequence if they need to attend a repairman or tend to a family member’s needs.
They have a sense of belonging:
Individuals pay to work in a shared space rather than working from home for free or renting a drab office because they want to connect with others.
Each coworking space has its own personality, and the owners go to great lengths to create a one-of-a-kind experience that caters to the needs of their members.
When you walk into a coworking room, you’ll find that it’s not like a traditional workplace. The electric feeling that the enthusiastic and excited inhabitants add to the room is second only to the scent of fresh coffee in the air.
At large sharing tables, you’ll see a combination of people who are deeply focused at private desks and others who are starting up stimulating conversations.
Hot tables, private conference rooms, kitchens, coffee, and other office-like facilities are available at these shared workspaces. They frequently have a sense of community. Typical occupants are freelancers, entrepreneurs, start-ups, and small teams looking for a versatile workspace.
Aside from culture, expense is a significant factor. One of the benefits of these spaces is that you can rent out only what you need rather than an entire private office room, which can be expensive. Costs differ and are flexible, thanks to different membership-based models.
There are regular and monthly fee options available. The cost of membership varies depending on whether you use a shared desk or prefer a dedicated one.
Who uses Coworking Spaces?
For freelancers, coworking spaces offer the best possible outcome: the freedom to set your own hours and schedule without the isolation. As a result, these shared spaces are ideal for freelancers. For those who would otherwise have been compelled to work alone at home or in a coffee shop, a sense of community is developed. Coworking spaces appeal to start-ups because of their versatility.
Traditional office leases have high costs and obligations, but coworking spaces do not. They also give small groups the opportunity to communicate with others in the room. By connecting the right people at the right time, these spaces can also assist entrepreneurs in finding a co-founder for their startup.
Coworking spaces are an excellent match for these types of small businesses. What the spaces offer and the ambitions of freelancers and start-ups are inextricably linked.
Others see the spaces’ versatility as a benefit in terms of handling real estate and prices. Longer leases aren’t needed because they require predicting real estate and business needs.
Coworking Vs. Traditional Office:
When a large company buys into a new trend, the next logical step is to internalise the activity. Are Facility Managers and Workplace Strategists going to start building co-working spaces inside their own offices? The ability to recreate the atmosphere of coworking spaces would be the most significant success factor.
True independence and mobility are allowed by shared spaces. The environment is conducive to genuine organic cooperation and interaction. This is one of the benefits of coworking spaces. They promote creativity by encouraging people with diverse skills and abilities to communicate and collaborate. The culture is shaped by the idea of independence and versatility, which is another benefit.
Coworking spaces were created to meet the needs of small businesses and freelancers who needed to communicate. However, design is just one factor. Culture is what distinguishes coworking spaces.Some companies may have similar office spaces but lack a culture that allows employees to get up and travel about or interact with people from various departments.
Coworking Vs. Home Office:
The most appealing aspect of becoming a budding entrepreneur is the freedom to work in an atmosphere that best suits your personality and imagination. Choosing the spot, on the other hand, can be difficult. Your top priority will be to work in an atmosphere that helps you to be as productive as possible.
If you’re weighing the benefits of a home office against a coworking space, you may not think there are many (aside from being so close to your fridge full of food.)
Working from home, in reality, has a number of advantages. Perhaps the most important and least expensive explanation is that working from home is “safe. ” When you choose to work from home, you won’t have to pay a separate fee to use a coworking space. Another advantage is that you won’t have to commute to work.
One of the most commonly reported advantages of working from home is the absence of a commute. For many young freelancers, the opportunity to get out of bed 10 minutes before logging on and formally starting their work day is appealing. Working from home, on the other hand, may not be suitable if your company needs you to meet with clients on a regular basis.
You’ll need to locate new sites or places for technical meetings on a regular basis. You’ll need to locate new sites or places for technical meetings on a regular basis. In a coworking area, conference and meeting rooms are often available to accommodate meetings and customers, giving the space a professional appearance.
Another downside to working from home is the sense of alienation that can be felt on a regular basis. It’s significant to mention that, though working from home can sound appealing at first, it can easily become lonely if your job entails staring at a computer screen all day.
Coworking Vs. Virtual Office:
Both coworking spaces and virtual workplaces have their own collection of benefits and features. The key benefit of virtual offices is the cost savings.
They are less expensive than both conventional offices and coworking spaces, but they also give you a business address and phone number, as well as a physical location where you can meet with partners or customers.
Virtual offices offer the organization a more professional appearance and provide you with a variety of address choices. A small business, for example, can rent a virtual office on Wall Street. Virtual offices, on the other hand, are inexpensive for a reason: even though you have access to your physical address, it is limited.
Unlike virtual offices, coworking spaces provide you with unlimited access to physical space, including a kitchen, meeting rooms, break rooms, scanners, and printers, as well as other amenities. Since they have a versatile collaborative atmosphere, coworking spaces are a perfect alternative to conventional offices.
They’re also a great option for professionals who work from home but want to network with those who share their interests. Workshops and coworking spaces both increase productivity and innovation.
According to statistics, most workers who work in coworking spaces value casual teamwork as well as improved networking and personal development opportunities.
Coworking and Serviced Office:
Serviced offices and coworking spaces each have their own collection of benefits that make them ideal for various types of businesses. Serviced offices are best suited to larger businesses, while freelancers and small businesses can benefit more from coworking spaces. Traditional office spaces and coworking spaces are balanced in serviced workplaces.
Landlords rent out offices, houses, and even whole parts and floors to other businesses in this model. Clients are normally free to customize their own spaces as they see fit, though terms can differ. Many rooms are completely equipped with desks, tables, laptops, and other office supplies. Multiple businesses can share a single building, with administrators providing shared cafeterias, meeting rooms, and conference rooms.
Coworking spaces advance the notion of shared corporate workspaces even further. Unlike serviced offices, coworking spaces typically don’t provide much privacy to their customers.
Clients instead operate in communal areas that are completely equipped with office equipment. Coworking businesses often use an open office layout, where workers work at large tables and are free to move about.
Coworking spaces, including serviced offices, depend on administrators to keep all of the facilities in good working order. The amount of confidentiality provided to clients differs significantly between these two types of versatile workspaces. In serviced offices, clients are given rooms that are strictly for their use.
They usually have some creative flexibility when it comes to decorating and customizing the room they work in. Popular areas, such as lounges and dining areas, however, are open to the public and cannot be personalized. Since the entire space is open in coworking spaces, everyone must share the amenities and discuss usage terms in order to preserve peace and fairness.
Coworking Vs Private Office:
When it comes to establishing a company, and by that we mean the physical location, you have two options. You have the option of going the conventional route or joining a coworking space. The peculiarities of your activity will determine if a co-working space or a private office is better for you and your business.
The main considerations to consider when selecting an office are your need for scalability, the impact you want to create on customers, and the type of working atmosphere you feel will be best for your day-to-day activities.
Perhaps there is no one-size-fits-all solution; you may start out in a co-working space but later realize that as your company expands, it would be more cost-effective to move your headquarters to a private office.
As your company grows, so will your requirements for your surroundings. Maintaining an open mind and a self-evaluative mindset are the best ways to ensure you’re in the right position.
Coworking and Shared Office:
The distinction between a shared workspace and a coworking space depends on the space’s vision, the participants’ priorities and needs, and the requirements of their businesses. It’s important to remember that there’s no such thing as a “one-size-fits-all ” solution for companies that use both coworking and shared spaces.
The needs of your company and its level of development are a big differentiator between coworking and shared office spaces.
The setting is quieter and more intimate in shared office spaces. As a result, they are ideally suited to companies who want to concentrate on improving their brand, products, and services in the privacy of a dedicated office.
Coworking spaces usually include places where younger businesses and individuals can network, collaborate, and start to solidify their business plans. In most coworking spaces, there is an intrinsic lack of anonymity, but there is a greater focus on community and brainstorming new business ideas.
However, each coworking and shared office space is unique. It’s critical to evaluate each space in terms of its approach and the advantages it provides for your particular company.Businesses benefit from both types of space because they allow them to be more flexible. You aren’t constrained by the long-term leases or mortgage conditions that come with conventional office space.
Coworking Continues to Grow
TThe freelance economy continues to expand. Younger employees, such as Millennials and Generation Z, are gradually turning to freelance jobs. In the United States, there are currently 53 million freelancers. It was said that by 2020, freelancers will make up half of the American workforce (both full and part-time).
Additionally, coworking spaces are beneficial to small businesses with one to many employees, as well as larger businesses looking to innovate. The design and culture can be seen as a model for any company looking to innovate and develop. It’s no surprise that these areas have created a lot of interest in recent years
Why are coworking spaces better?
Coworking Space Design (The Personality):
Coworking spaces have a lot more personality than traditional offices. Some coworking spaces seem to be a combination of friendly and quirky, causing people to linger longer than normal. People are sick and tired of corporate offices because they are monotonous, and this is precisely what they are seeking to avoid.
The design of a corporate office is too formal, while coworking spaces provide their users with an atmosphere that they would not find in a corporate office. Entrepreneurs, freelancers, and mobile workers all benefit from good design because it makes them feel at ease. People are more likely to seek out locations that seem welcoming, which increases their desire to be efficient
The Vast Network:
Coworking spaces, unlike corporate offices, are made up of individuals who work for a variety of businesses, projects, and ventures. You may be able to communicate with each other through these various individuals. You may even meet people who can give you jobs or work with you on the same project. This is nothing like the typical workplace we picture every day.
Since coworking spaces are open for the majority of the time, they are very versatile. Not only in terms of time, but also in terms of office space, we might choose to work at a desk with other people or sit alone to be more focused on our work.
Another explanation for its flexibility is that coworking spaces give employees more options in terms of staying late or leaving early. It is also possible for a worker to take a long break in the afternoon and return in the evening, as long as the job is completed, providing them the liberty they need.
Because coworking spaces offer event space for people, there have been many events. Seminars, conferences, and even networking activities are not typically provided by corporate offices, but they are often provided by coworking spaces, which is why they are chosen.
They hold seminars for entrepreneurs and startup founders that they believe are necessary and significant. The people who attend the events gain more experience and network, the tenants who organise the events increase their brand visibility, and the coworking space as a whole becomes more lively.
What is the concept of coworking office space?
A coworking area is a desk or a cluster of desks in a joint office facility like a coworking centre or a serviced office centre.
Desks, tables, and internet are included, as well as connections to shared facilities such as conference rooms and breakout areas. However, coworking isn’t just about the office’s physical configuration.
People are constantly seeking to learn from and connect with others during their business journeys, and coworking spaces offer the ideal productive atmosphere in which to collaborate. It brings people from various companies and industries together to learn and benefit from one another.
Coworking spaces, unlike corporate offices, are made up of individuals who work for a variety of businesses, projects, and ventures.
You may be able to communicate with each other through these various individuals. You may even meet people who can give you jobs or work with you on the same project. This is nothing like the typical workplace we picture every day.
Co-share offices combine digital-age business assets with lifestyle facilities like cafes, lounges, and fitness centers to help members create a better work-life balance, while complementary event programs inform and inspire members to achieve greater success.
Some might also have rooftop terraces, games rooms, and bars, and the atmosphere is much more artistic than corporate.
What are the Advantages of Coworking:
A big advantage of coworking is the human factor; it’s an easygoing way of operating that allows individuals and small teams to break away from loneliness and gain access to a supportive group of like-minded professionals.
With networking activities, educational seminars, and other events, coworking operators hope to fuel the social benefits and promote collaboration among members.
What began as a way for freelancers to meet and connect with like-minded individuals has evolved into a valuable tool for larger companies and multinational organisations to keep an ear to the ground, collaborate with creative entrepreneurs, and create a diverse workplace culture.
Coworking spaces provide more than just human benefits; they also improve business stability and financial sustainability. Coworking spaces are prepared to use right away, and membership packages can be updated at any time to add amenities, book facilities, or add more desks as the business grows.
As a result, coworking spaces are common among startups and companies in the early stages of development, while larger corporations are quickly recognising the cultural benefits of coworking.
As more companies shift to flexible workspaces, innovative, corporate, and niche coworking spaces are springing up to meet the needs of all types of businesses and industries.
Who can benefit from coworking?
Because of its affordability and sociable environment, coworking was developed with entrepreneurs and creatives in mind. However, the abundance of advantages associated with coworking is enticing both startups and businesses, as well as anyone in between. Coworking could be appropriate for a startup because it provides a fully equipped, ready-to-move-in office solution at a great price.
An organisation, on the other hand, could turn to coworking for a fast turnaround in creating a customised space while still allowing its employees to maintain the ideal work-life balance. While coworking provides a cost-effective, flexible work environment with numerous benefits, it may not be appropriate for all businesses.
Particularly for a company that isn’t interested in the shared workspace, activities, or the social aspect of coworking. However, this does not mean you must sign a traditional lease; you can rent spare desks or offices in someone else’s commercial lease and save money and have more flexibility month to month.
What do I think about while searching for a coworking space?
Choosing the right coworking space can be difficult, given that there are more coworking spaces than ever before. With every coworking space looking better than the last, it’s important to stay focused on the basics rather than getting distracted by the bean bags and free coffee.
Considering the basics will save you a lot of problems, even if every company has different needs and requirements. This involves things like the venue, configuration, and size of your assigned workspace, as well as reliable IT and service, meeting rooms, and what utilities and services are included in your rent.
Various Types of Coworking:
Every coworking space is unique, but they all have an open plan layout with desks strewn about, and some even provide private office space – especially as the industry moves toward a “hybrid” model of open plan and private space.
Navigating the coworking landscape and determining just what kind of workspace they provide and what is ideal for your company can be a little perplexing.We’ve mentioned some of the different types of workspaces you might expect to encounter in a coworking space below.
A dedicated desk is just what it sounds like: a workstation that is solely dedicated to you. You’ll share the common areas with the other guests, but you’ll have your own desk and chair, as well as a lockable storage cabinet, if you’re in an open plan environment.
A dedicated desk has the advantage of allowing you to leave your things for the duration of your membership rather than having to pack it up at the end of the day. A dedicated desk is therefore more expensive than a hot desk, but it is the more common choice of the two since the majority of coworkers choose to have a secure workspace every day.
In the same way that you pay for a dedicated desk, you pay for a desk in an open plan environment with a hot desk. The key difference is that you will not be assigned a workstation, so your location will change from day to day.
As a result, a hot desk is typically less expensive than a dedicated desk. Nonetheless, you’ll still have a seat and have access to the same onsite amenities, such as conference rooms, a kitchen, and breakout areas.
A private office may be as small as a single person’s desk or as large as an entire floor with several offices, conference rooms, and open plan areas. The important thing is that the room, no matter how large, is lockable and only you have access to it.
Private office space is ideal for data protection and privacy, and you still have access to shared services, so you’re never alone. Talking about which coworking space is the best, This particular form of workspace is currently the most common in the flexible office industry.
Coworking spaces help businesses fill a specific gap as more companies accept remote work options. They have the appearance of an office but lack the rigidity of one. Instead of the loneliness of working from home, coworking provides social interactions, networking opportunities, and general human contact.
Coworking has revolutionised the workplace. The flexible office space market is having a major effect on the development and design of new workspaces, thanks to an exponential increase in the number of coworking spaces around the world.
Coworking spaces are a viable choice for businesses of all sizes, not just start-ups and small businesses. We must also acknowledge the value of open coworking spaces for keeping workers involved and interacting with smaller, more entrepreneurial companies.