5 Reasons Why Start-ups Thrive in Co-working Spaces
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
“Sun lights up the day time, Moon lights up the night, I light up when you call my name, cause I know you're gonna treat me right, you give me fever.”
Those lines are but a small part of the famous song sung by Peggy Lee in her rendition of ‘Fever’ which constantly echo in the halls of musical fame. The song of course is not about the viral fever we get every three months but more about the fever of love. Once you embark on the journey of entrepreneurship, you are struck with a fever. A fever that drives a zeal for knowledge and a thirst for success. It gets you up in the morning and keeps you awake well into the night. It’s rewarding even in failure. Entrepreneurship is quite tricky and if you do not stay one step ahead of the curve then that fever can turn quite real, into the 104-degree kind where you wilt and wither away. Co-working spaces, an entrepreneurial pursuit in its own way, in many ways can really help start-ups keep that fever on the healthy side and help turn them into good profit earning businesses.
The first, co-working spaces are great platforms for collaborative working. There are many people in proximity who are in the same boat and can be great sounding boards for ideas. Events such as pitches, reverse pitches, lunch and learns, among others, are often carried out at co-working spaces that look at aiding start-ups with getting off their feet. Most importantly it really is about how you make the best use of the environment because simply just being in there is not going to get your start-up anywhere.
Second, figuring out the business model and how to start earning revenue can be the exciting part but running a company comes with responsibilities such as paying salaries on time, filing TDS and GST, being compliant, filing for trademark, etc. This part of business needs to be tackled with discipline and cannot be ignored. Co-working spaces often have companies who take up space with them and can do just that. Some co-working spaces even offer these services that take care of these small ‘big’ things. They often are more affordable than going with big companies and since they are just a few desks down, regular feedback is easier.
Related Story: Why Co-Working Spaces Are Beneficial For Start-ups
Third, cost is where co-working spaces can help big time. They help with the cash flow as the upfront costs and monthlies are much cheaper than getting your own space. Every rupee saved can be hundreds earned. Best part is that it is pay as you go so there is no long lease holding you down. You do not want it the next month, you are free to pack up and head out the door.
Fourth, the flexibility in cost also brings you flexibility in space. If the business is growing, then you can easily take up more desks. If you are headed for a tightening of the ship, then you can easily scale down as well. Use meeting rooms, event spaces, as and when you require them also help you manage your costs. This kind of freedom is as the famous credit card says ‘priceless’.
Lastly, one of the less talked about, but perhaps the most potent, benefits of working out of a co-working space for a start-up is the proximity to big business. Co-working spaces are now being increasingly occupied by big businesses for a lot of the similar reasons I have mentioned above. Companies of this nature are also looking at the world in new ways as the race to stay relevant is increasingly heating up in all industries. Big business means big experience and learning from them can also help you scale up quickly. Who knows they might just be keen in investing in your business.
The benefits of collaborative synergies in a co-working space, if utilized, can really help start-ups pick up momentum. The aim of co-working spaces is to help you grow as a business by keeping your attention firmly on it. They understand your fever and want to keep the heat on because they too echo Peggy Lee’s words: “Fever if you live and learn, fever till you sizzle, what a lovely way to burn what a lovely way to burn.”