What are the Pros and Cons of Shared Office Space?

What was once seen as a freelancer’s domain has now become the preferred choice of entrepreneurs. Shared office space can be defined as the practice of two or more businesses sharing a commercially leased office. It is a space where employees belonging to different organizations work together. Although the concept of shared office space turned up only a few years ago, it has become so integrated into the work industry that it is impossible to imagine the business without it.

Companies are increasingly adopting the emerging trend of shared office spaces all over the world. Some of the factors like the gig economy, widespread start-up culture and invention of remote work apps like Slack have led to a rise in their demand and has compelled companies to look for shared office space for rent. But does that mean shared office spaces are right for your business? Here are some pros and cons of shared office spaces that every company should look out for before setting up their business.

Pros

 

• Cost-efficient: If you are a freelancer or an entrepreneur looking for a dedicated desk or private office, then shared office spaces are what you should consider. Shared office spaces allow you to pay for only the space you need and help you to scale at your own pace without the pressure of traditional long-term leases.

 

• Enhanced flexibility: The most obvious benefit of shared office space is the flexibility it offers in various areas: 

1. There are no yearlong lease requirements associated with shared office spaces. The rent needs to be paid only monthly.
2. Shared office space does not involve any upfront fees or deposits and gives founders a valuable opportunity to keep their costs down.
3. They give you the freedom to elevate or scale down your team size as per your needs.  

 

• Opportunities to network with like-minded professionals: Being a freelancer or entrepreneur can be very difficult when you do not have a sense of community. Shared office spaces give you the freedom to work all by yourself in the presence of employees from various organizations. Shared office spaces offer you the opportunity to introduce yourself to like-minded individuals that can serve as resources to help expand your business. 

 

• Access to key players and partnerships: Working in a shared office space allows an employee to gain access to key industry players to help your business grow. Carrying out operations amidst start-ups makes you more likely to attract the attention of angel investors. 

 

• Unparalleled amenities and services: Shared office spaces offer exceptional amenities and services like: 

1. High-speed WIFI
2. Comfortable furniture
3. Meeting rooms
4. Conference halls
5. Onsite assistance and support

 

• Diversity: In contrast to traditional offices, coworking spaces consist of employees from a wide range of companies. It helps them gather insights and collaborate with similar professionals. 

 

Cons

 

• Distractions: Shared office space allows employees from different organizations to work together. The employees have to face many distractions, and this leads to a decline in their productivity. In a room where everyone has a different job, one might find himself/herself distracted by others.

 

• Hours of operation: Setting up a business and running it takes a lot of time and hard work. A team working for a start-up may work for long hours. However, most of the shared office spaces shut down at 8. Hence, employees working beyond regular business hours might face problems working in a shared office space.

 

• Reduced privacy: Shared office spaces are noisy and can hamper an employee’s concentration. Moreover, there are times when an employee needs his/her own space to get the work done. These facilities are not available in shared office spaces, and hence, they result in a lack of privacy. In addition to this, there are several projects which require security and shared office space is not the place to discuss them.

 

• Lack of customization: One of the essential benefits of having your own privately leased office is branding it. The walls, furniture as well as lighting can be customized as per your needs. However, in the case of shared office spaces, customization is not possible.

The concept of shared office spaces is gaining momentum. India also sees a rise in shared office spaces in Bangalore with an upswing in their demand. However, these offices can have both positive and negative impacts on your employees and work environment. Irrespective of their growing popularity, they might not be the best fit for your business. Hence, it is imperative to keep the pros and cons in mind while considering a shared office space to set up your business.

The Rising Popularity of Shared Office Spaces

The trend of shared office spaces was almost unheard of in 2007, but since the past few years, collaborative workspaces have become popular with the emergence of millennials coming into the workforce. They are opposing the need to obey traditional office structures, demolishing 9-5 mindset, breaking down the typical corporate hierarchies and are reformulating business norms. Many millennials are becoming entrepreneurs, setting up their own start-ups and are shaping the trends of how and where we work. 

However, the rise in the popularity of shared offices is not entirely dependent on millennials. There are various factors making coworking spaces, the perfect fit for those who are looking for efficiency over tradition.

What is Shared Office Space?

A shared office space also known as a coworking space is a collaborative workspace where SMEs, freelancers, and entrepreneurs can enjoy the benefit of a well-furnished and equipped office space without having to commit to a long-term lease and the hidden costs it involves. The members of a shared office usually need to pay on a monthly basis to gain access to amenities like private working space, meeting rooms or special equipment.

The Executive Centre (TEC) for example, is a high-end, exclusive business centre offering unparalleled amenities and services to meet your business needs. All of its coworking offices in India such as the shared office space in Chennai are equipped with a productive atmosphere, state-of-the-art infrastructure and unmatched business concierge services, providing an elevated and flexible working experience.

Why Millennials Prefer Shared Offices?

Cost-effective: Start-ups and developing businesses do not have the funds to buy or rent an office space, making them inclined towards an effective solution. As opposed to traditional office spaces involving huge costs and long-term contracts, shared office spaces are a lot cheaper and generally require payment on a monthly basis. Therefore, more individuals prefer to go for a shared office space for rent rather than renting traditional office space to uplift their business.

Minimal responsibilities: Setting up a business in a coworking space means fewer things to worry about. Things like the pantry, furniture, cleaning, and maintenance are taken care of by the serviced office owner. This is one of the main reasons why millennials prefer renting over ownership.

Access to networking: Shared office spaces offer a productive environment with professionals from different backgrounds sharing one common roof. This not only helps in the sharing of ideas but also sparks creativity and innovation. Moreover, it serves as the perfect place for people to connect with like-minded individuals and widen their network. 

The Executive Centre’s coworking offices such as the shared workspace in Chennai is home to a pool of talented individuals who frequently interact with employees from different start-ups and thus, enhance their personal as well as professional relationships.

High-end amenities: Coworking offices are not just spaces to set up a business. They offer you much more. Some of the top-notch shared offices provide world-class amenities compared to the traditional ones. Be it high-speed internet services, modern resources to ensure smooth flow of operations or pleasant and cosy interiors to impress your clients, all these services will be offered right away, as you step in.

The Executive Centre’s serviced offices such as the shared office space in Bangalore has a distinguished address and is equipped with top-grade facilities required to empower your business.

Prestigious locations: According to a recent survey, it has been found that most millennials prefer to live in urban areas where essential resources like medical stores, grocery shops, restaurants and so on are easily accessible. Shared office spaces generally occupy distinguished locations of the city, making them a perfect fit for millennials. Due to this factor, millennials look for shared office space for rent in Bangalore, Mumbai, Gurgaon and so on, keeping in mind their desire to grow professionally in a city.

As a result, despite drawbacks like distractions, inability to customize and lack of privacy, shared officespaces are rapidly becoming the millennials’ dominant choice for a place to work.

The Growing Market of Shared Office Spaces in India

India has become a major hub for new businesses and start-ups. There are hundreds of young freelancers and entrepreneurs trying to establish themselves with their startups and small businesses and coworking spaces in India. The serviced office spaces in Chennai is an ideal environment for working. It reduces costs and liabilities, comprises existing IT infrastructure, and provides flexibility in terms of payment. 

Benefits of Shared Office Space or Coworking Space

Let us have a look at some of the many advantages of serviced office spaces for rent.

Low overhead

Establishing a small enterprise or doing freelance jobs will require some overhead expenses and is a time-consuming procedure. Getting a membership or renting a shared working space can not only cut overhead costs but will also free you from the burden of supplementary utility bills and service providers. You can eliminate the hidden costs associated with a traditional lease by paying only for the space you are using.

When it comes to shared office spaces, you do not have to furnish it. The fully furnished office spaces in Chennai offer free facilities such as WiFi, phone services, printing facilities, complimentary beverages, mail distribution, kitchenettes, privacy nooks, meeting rooms, on-site support, and more. 

Networking opportunities

One of the most common problems faced by small businesses and freelancers is the lack of networking opportunities. However, the collaborative environment of furnished officespaces for rent offers a chance to improve your networking and start a conversation with everyone you meet, from potential clients to business partners. 

There is like-mindedness between clients in a shared office space, which often leads to progress, innovation, and collaboration. Meeting people from different spheres of work will help in adapting to the changing dimensions of work culture and will introduce you to new ideas and innovations. 

Flexibility

Using a shared working space will provide you with immense flexibility in three areas. You will have several options to choose from, you will not have to pay a year-long lease and you will be provided with all the benefits with just a monthly fee. 

You will also get flexible cost options that will keep your costs down. You do not have to pay any upfront fees or deposits and you can choose from several plans. Besides this, you will also get flexible space options. 

Educational opportunities

Shared office spaces will provide various educational opportunities. Most of the shared working spaces host many educational programs such as hands-on programming, panel discussions, workshops, and many more. These opportunities offer young entrepreneurs tackle industry roadblocks, craft the perfect press release, and many more.

The working culture in India has changed a lot with the development of technology. People have become more flexible with time and location. Instead of the traditional 9 to 5 routine, people now work together from different parts of the world. And if you need people in a specific location, we also have co-working spaces for that. This is why the market for coworking spaces has been growing rapidly in India.

Why Are Coworking Spaces So Popular?

Colombo, the capital of Sri Lanka, is home to the  World Trade Center. The entrepreneurial spirit is increasing among the people day by day. For young entrepreneurs, the world is vast, and a considerable part of it is yet to be discovered.

As a budding entrepreneur, the first and foremost thing is to have a proper address on your visiting card. 

In an age where digital distractions are always at an arm's length, most of the entrepreneurs are looking for space outside their own houses for starting their venture. 

Even though coworking is a pretty new concept, it is a better option for every leader in the world since it increases the productivity of the system.

So, let's see why are coworking spaces in Colombo so popular?

1.  Variety of Options

The essential qualities that one looks out  for in their employee force are creativity and diversity. The startups and young entrepreneurs are trying to set new trends in the world of business by offering their services as well as different professional activities.

This is one of the primary reasons why coworking spaces in Sri Lanka are so accessible. When you share an office space, communicating with your staff gets easier. This also allows you to interact with several people which further strengthens your bonding with them.

2.   Employees From Different Backgrounds

In coworking spaces, employees from different fields tend to work under  the same roof. It is highly beneficial when it comes to productivity and innovation.

You can expect a content writer to be sitting beside a software engineer in a coworking space. Even though both of them are from entirely different backgrounds, casual conversation over a cup of tea or coffee can lead them to a breakthrough in their projects. 

Sharing offices is one of the many unique ways to enhance your creativity. With different minds  working together, you will undoubtedly increase your productivity.

3.   Simple Collaborative Options

As stated earlier, coworking spaces provide you access to employees from different fields. It makes outsourcing easy. Suppose you are a website designer and you need a content writer who can quickly create a USP for your service, you can go and ask him/her. Moreover, face to face interactions will also help you explain your requirements in a more detailed way.

4.  Better Space for Working

Every organization in the world is facing a constant battle of transforming its brand into a trust point in the market while saving the excess cost. Customers are always expecting a very professional working space when they are visiting you.

If you take a look at any of the coworking spaces in Sri Lanka, you'll realize that any amenity that an office might need will be provided at that particular site. This atmosphere is a practical solution for every leader around the world since it has all the assistance you need under a roof.

5. Energetic Atmosphere

If you ever have a look at the atmosphere in coworking spaces, you'll notice the difference between the traditional offices and them. Most of the people working in the coworking spaces are passion-driven. They are energetic and always looking for opportunities. Coworking spaces can inspire you and teach you a lot.

In The coworking spaces people from different backgrounds work together for achieving their passion. That's why the popularity of Shared office spaces is increasing day by day.