Starting off a business is an exciting yet precarious time, while expanding a business is a bold and optimistic phase. In order to make the most at every stage of business, a smart manager needs to be able to foresee the emerging trends, analyse its impact on their business and take appropriate measures to gain a formidable business advantage.
One such emerging trend is the shift towards Flexible Coworking Space over conventional leasing, rented spaces. Because of increasing business uncertainty and escalating input costs, smart businesses have discovered that Coworking Spaces managed facilities allow them to remain nimble and agile, while conventional rental offices tend to bog them down and cost more!
Flexible Coworking Spaces have several advantages over conventional leases. Let us examine the top 10 reasons why the scales are clearly tipped in favour of Coworking Spaces.
Dynamic businesses need to be flexible about the space availability at a location. Owing to business requirements, project sizes, regional demands, etc. companies often need to quickly add or reduce the no. of employees they can accommodate at a facility. Only Coworking Spaces offer the flexibility of moving from a single person office to space for 100 or more in just a few hours!
In India, conventional lease agreements are executed by upfront payments like Stamp Duty, Registration, Broker Fees, all of which are absent in case of Coworking Spaces. In addition, you might spend a huge amount of money on furniture and fixtures and the necessary IT and communications infrastructure. A managed facility offers these pre-requisites, without additional costs, right on day one!
Conventional lease agreements are signed for at least 11 months. Sometimes the lessee (user) is forced to stay put for a longer horizon so that the cost of establishment can be recovered. However, such rigid lock-in periods might prove detrimental for your business, because one can never be certain about being able to afford a fixed rent without fixed cash flows or manage a bursting business within the limited space! Coworking Spaces have no such demands.
Rent agreements require the lessee to extend an interest-free security deposit for the duration of the lease, adding to the cost of conducting business. Coworking Spaces have no such expenses.
Coworking Spaces offer state-of-the-art interiors and business infrastructure which meet international corporate standards for comfort and sophistication. Non-branded offices and common areas allow you to re-create your office branding. These facilities need to be created at rented spaces.
Coworking Spaces also extend other business amenities like meeting rooms, conference rooms, training rooms, etc. which can be booked on a daily or hourly basis. Small businesses opting for leased offices might not have the luxury of setting up a fully equipped conference room.
Most Coworking Space providers like Avanta are located at prominent addresses. When you set up an office at such a location, you are always close to your clients and prospects and even your employees and visitors find it easier to commute. Budgetary constrains often lead the decisions about rented premises.
When you set up your office at a rented space, you have several overheads expenses like rent, power, water, maintenance and housekeeping, security, Internet, phone bills, etc. In contrast, a Coworking Space has a single all inclusive monthly invoice!
A Coworking Space provides value added services which help businesses create an excellent impression. From a professional welcome, and swanky waiting areas, to furnished lobbies and spacious common areas, serviced offices even extend 24×7 call handling and call forwarding services. Other facilities include hospitality support, mail handling, IT support, housekeeping and maintenance. A rented office will need to spend extra for all these facilities.
A rented office always carries risks related to external factors like escalations in power tariff, additional municipal taxes, damage due to natural calamities, riots, etc. A Coworking Space insulates you from these unpleasant surprises as you pay a fixed amount for offices booked for long-term duration like 12 months and more!
Rented or leased premises might be profitable for extremely large organizations that require thousands of seats at a location. If you are planning to set up a small office, a branch office, an India office, or even need facilities like conferences rooms, etc. Coworking Spaces are the best bet! Avanta is a UK-based service provider of business support services.
Contact us to learn more about how Coworking Spaces can help you make the most out of your precious resources. Call us at +91-11-30446402 to book a tour of one of our properties in New Delhi and Gurgaon.