5 Reasons a Coworking Space Makes Sense for Startups
Coworking spaces are, in many ways, exactly like the stereotype you’re probably picturing -- free organic coffee (and sometimes beer), couches for lounging, ping pong or foosball tables and a sea of young people busy on Apple computers. While these kind of amenities may be the first thing that jumps to mind when you consider joining a coworking space, the real value is under the hood. Here’s a list of key benefits you should consider.
1. You can afford it.
Sure, the rents generally aren’t cheap on a per-square-foot basis (sorry, I’m in real estate), but there are so many options that you can find the right fit on almost any budget. It may cost more than stealing WiFi at a coffee shop but it’s affordable way sooner than a long-term office lease.
2. Grow your space as you grow your company.
Nothing is static for a startup and coworking spaces are designed to be flexible and accommodate growth. Have five employees one month and 10 the next? No problem, you can switch to a bigger office down the hall.
3. They're ready with stuff you don’t even know you need.
Coworking companies are very familiar with the needs of startups and most of them offer a variety of services that can help your business grow. These range from pitch nights in front of investors to mundane things like help with benefits and accounting. Even if the company itself can’t help, you can always ask your neighbor for advice.
4. Network, network, network.
While young people are definitely the dominant demographic in coworking spaces, the ecosystem of people, companies and industries is actually incredibly diverse. For every tech startup, there’s a lawyer in private practice or a video production company. You never know who you’ll meet and how you might be able to collaborate.
5. Surround yourself with positive energy.
Don’t underestimate how psychologically hard startup life can be. There will be times when you doubt yourself, your company and your mission and many nights when you’re working late while your friends and family are doing something fun. Surrounding yourself with smart, dedicated and hard-working people is the best cure for the startup blues. Whatever challenges you’re facing, someone else has probably already faced (and conquered) them, and it’s great to have a constant reminder of that.EquityMultiple, I only partially knew what I was getting myself into. I had a vision for the company, but there are a 1,000 small things I didn’t have any experience with. Being around other entrepreneurs, in an environment specifically designed to support young companies, was an invaluable part of our growth. No, we’re no longer in a coworking space, but our time in one served as a crash course in what it takes to start a successful company. We’re not the only ones, there are many notable startups that had layovers in coworking spaces (including a little company called Instagram). If you’re on the fence about coworking, you should go see a few spaces and talk to the people there -- I bet you’ll be convinced.
Charles is the CEO of EquityMultiple, a real estate investment platform that connects accredited investors to pre-vetted opportunities from experienced commercial real estate companies. EquityMultiple makes it easy for investors to build a diversified portfolio of real estate investments, accessing a range of debt and equity opportunities in markets across the country. Prior to EquityMultiple, Charles was a real estate attorney with Simpson, Thacher & Bartlett, where he worked on major transactions for private equity clients, primarily Blackstone and KKR. Charles received his JD from Berkeley Law and BA from Amherst College.