Why Coworking Spaces are the Future for Entrepreneurs

Entrepreneurs know that the road to success is hard work. It involves late nights, financial investment, and setbacks that can sometimes feel like major roadblocks. Being a business risk taker (which every entrepreneur is) is a long and bumpy road, however having the right working environment can ease some of this stress. Perhaps you have a killer idea for a startup, however right now it’s just you or one another person trying to build the idea into a substantial business. More and more entrepreneurs find themselves in working conditions where they’re the only ones physically in an area, plugging away at their work. This can often be a lonely, easily distracting, unmotivating and uninspiring environment.

It’s easy to set up a small home office to get through your work, however it might not always be the most productive option. Without the motivation of other people working around you, working for yourself (or at least by yourself) can start to impact on your focus and creativity. It’s for these reasons that coworking offices have become so popular with young entrepreneurs, and there are now similar spaces becoming available to meet the needs of the new generation of founders and future CEOs.

Why Coworking Spaces are the Future for Entrepreneurs

As more entrepreneurs make their mark in the business sphere, how they work is changing also. Entrepreneurs are wanting their environment to reflect their work, and at the same time address their needs and wants. Coworking office spaces are encouraging new ways of working that modern entrepreneurs are flocking to.

Productivity increases

It’s no secret that entrepreneurs put in the long hours to launch their businesses, which is why commuting to an office further away can greatly affect productivity. However, with coworking spaces, people are most likely to choose an office closer to home to reduce travel time. By having less of a commute to the office, entrepreneurs can stay focused, making sure their work has their full attention.

Lee Rogers from CFO On-Call, for example, found that a two-hour commute each day to the office was draining, but having access to a local coworking space helped to resolve this issue. “I find it helps with productivity. No commute means I can be fresher and focused throughout the week,” Rogers said. “Working a distance that required a two hour commute one way was draining me. NexusHub is close to home and I am certainly more energised and productive as a result.”

“No commute means I can be fresher and focused throughout the week.”

Lee Rogers from CFO On-Call

Boosting the potential for meaningful collaboration

Another benefit that many entrepreneurs find when making use of a coworking space is that it puts them directly in touch with entrepreneurs in other industries. Being able to share ideas and have ‘water cooler’ discussions with other business owners is a meaningful benefit in using a coworking space, and it often leads to partnerships and collaborative exercises that help boost both businesses.

It’s often considered that one of the reasons that America’s Silicon Valley has been so successful as an IT hub is because by concentrating a lot of businesses in related fields into a small area, entrepreneurs would always run into one another while out and about, and this would lead to impromptu business meetings. Some of the biggest deals done in the IT world happened as a result of two smart people bumping into one another and having a coffee together.

Coworking spaces work exactly like that but on a micro scale. Generally, they’re populated by small businesses and startups, and therefore the spaces naturally pull likeminded people together.

“As lawyers - it's about having someone nearby who can help - from design, through to bookkeeping - and if the services aren’t on hand, there's a very quick trusted referral when using a coworking space,” Kurt Falkenstein from General Standards said.

Meanwhile, Kevin Spiteri from marketing specialist Menace Group said that he’s directly found business opportunities from inhabiting a coworking space. “You get the opportunity to meet a lot of new people from all walks of life and various business interests,” Spiteri said. “Further, coworking creates an ecosystem whereby people within the ecosystem can network and trade.”

“It's about having someone nearby who can help”

Kurt Falkenstein from General Standards

Removing distractions from work

Another reason that many entrepreneurs opt to rent a coworking space, rather than set up a home office, is because the environment in a home office is rarely conducive to work. There are often distractions, from typical household noises or the itching desire to do something else while you’re meant to be working; these are distractions that aren’t present in a coworking space.

“Home offices are too distracting, and it’s difficult to create a demarcation between work and personal life. Commuting long distances decreases the amount of work/life balance, is expensive and increases stress. These issues are solved with a quality coworking space that is close to your home,” Raymond Romanos of Romanos Consulting said.

And, of course, if you’re working from a home office, you’re not going to want to have clients dropping around for meetings. This instead makes meeting in places like coffee shops or similar establishments, that aren’t always appropriate for sensitive discussions. A coworking space takes that particular stress out of managing a home office. “Working from a home office left me with nowhere for my clients to come to meet me, and also left me with no office address for clients to drop off paperwork. The coworking space takes away this issue and gives my business the professional touch we need,” Kerri Day of Paragon Insurance Services said.

“Home offices are too distracting.”

Raymond Romanos from Romanos Consulting Pty Ltd

Low costs means more budget into the business

Coworking spaces are far less expensive for entrepreneurs, as opposed to renting a dedicated office space. Occupying a coworking office is great for startups and new businesses that are in the early stages of development, especially when the enterprise may not yet be lucrative.

This is another significant benefit to using coworking spaces; you can make use of them on a casual basis. If you don’t need the space every day, there’s no reason to pay for a full month’s rent. Many of the professionals that use NexusHub do commute to a main office at least some days in each month, and many entrepreneurs do have a home office which they like to spend time in. Being flexible with rent and space usage is enormously beneficial to startups, especially when they need to keep a tight control over their expenditure.

At the same time, full time users can save money by using a coworking space like NexusHub. Full-time access to the coworking spaces costs $350 per month, per person. When a business is still consisting of only a couple of people , then the total bill ends up being much lower than a dedicated office space, giving entrepreneurs great value and flexibility with the costs.

Obviously there is a point where a startup grows to the size where it is less expensive to hire out some office space, but in those critical early months and years as momentum builds, having flexible control over expenditure is a major benefit to coworking spaces.

Access to facilities and resources

The people that run coworking spaces will often provide additional resources to help young business builders. It might be that they run frequent events which business leaders attend to give lectures on how to grow their business. “Although I only use the space on a very casual basis I keep coming across other business owners. This is a great place to build relationships with other business owners. There are also events held which give us the opportunity to get to know the other members,” Paragon Insurance Solutions’ Kerri Day said. These resources are often significant in giving startups in coworking spaces access to mentorship and expertise that they otherwise wouldn’t have had working out of a home office.

Additionally, coworking spaces often have facilities that add to the experience of the space. These spaces can provide tenants with access to audio and video equipment, wifi, breakout rooms, superfast internet and meeting rooms. Some spaces like NexusHub are conveniently located with an onsite childcare.

“This is a great place to build relationships with other business owners.”

Kerri Day from Paragon Insurance Solutions

Utilising collaborative spaces for business success

The rules of working have changed substantially in recent years, especially with the rise of young entrepreneurs and online businesses. It’s easier than ever to have a great idea, work hard to develop it into a startup, and ultimately into a successful business. Coworking spaces are really a response to the fundamental changes in the way we work today. Coworking spaces provide a flexible, dynamic resource for entrepreneurs. People with a limited budget but a bright idea can meet like minded people and gain access to the knowledge, networks and facilities to turn their vision into a successful commercial venture.