Top 7 Coworking Space Benefits for Startups and Entrepreneurs | The Office Pass

How Do Coworking Spaces Help Startups and Entrepreneurs Reduce Costs?

by | posted in: Entrepreneur | 0

Running a startup is not just about planning and strategizing but also about managing expenses. Of the many costs incurred by an Indian startup, real estate often tops the list. Commercial real estate accounts for 9% to 12% of the total operational costs for established corporates. They also suggest that for startups, the number could be much higher!

Do not let these numbers dishearten you! Moving to a coworking space can make a lot of difference to your budget. A study published by JLL suggests that businesses in many top Indian cities, including Delhi NCR, Bangalore, Mumbai, and Pune, can save around 20% to 25% of this cost by moving to a coworking office.

Want to know more? Let’s look at some of the top coworking benefits for startups in terms of cost reduction.

Best 7 ways how Coworking Spaces benefit Startups & Entrepreneurs

  1. Lower Lease Rents
  2. Affordable Security Deposits
  3. Reduced CapEx For Office Running
  4. Flexibility in Pricing
  5. Affordable Amenities
  6. Lower Office Maintenance Management Costs
  7. No Commuting Costs

1. Lower Lease Rents

One of the main Coworking office advantages is that you can lower your rentals considerably. As per the 2020 report by Anarock, coworking offices provide a cost advantage over traditional workplaces. For instance, in the Central Business District (CBD) of Mumbai, the price difference between traditional and coworking offices is around 14%, while in Secondary Business Districts, it goes up to 42%. The price difference (CBDs) in Gurugram, Bangalore, and Pune is 6%, 20%, and 33%, respectively.

Coworking operators typically take large areas (10,000 to 20,000 SqFt) so they are able to negotiate a lower bulk rental compared to a startup who may require only about 1,500 to 2,000 SqFt. Moreover, the coworking company will furnish the office to make it ready for use. The cost of furnishing could be INR 1,800 to 3,000 per square feet for a startup. By moving to a Coworking space, the startup can enjoy lower lease rents and save 100% furnishing expenses.

Moreover, many leading coworking operators in India, such as The Office Pass (TOP), offer additional discounts on rentals, especially for startups and women entrepreneurs. Startups can spend the money they saved on rentals to grow their business.

đź’ˇ Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282

2. Affordable Security Deposits

Another advantage of coworking for startups is that you don’t have to spend a fortune on the security deposit. In many Tier 1 and Tier 2 cities in India, the security deposit is typically equivalent to 3 to 6 months of rent. In premium locations, it could even go up to 11 to 12 months’ rent.

For startups trying to stand on their feet, such a big amount can be financially draining. As coworking spaces are startup-friendly, the security deposit they demand is a lot lower than other commercial spaces.

3. Reduced CapEx For Office Running

Startups and entrepreneurs renting out office spaces should consider not just the rental but also the cost of furnishing the space. You’ll need desks and chairs, air conditioning, computers, Wi-Fi, etc. The cost of a copier, scanner, printer, coffee maker, etc., can quickly add up to take a sizeable bite out of your budget. In addition to buying these things, you’ll also have to set aside a portion of your budget for maintaining them.

Coworking for startups comes furnished with all necessary furniture and accessories, thereby helping you reduce your IT budget and Capital Expenditure. In addition to desks and chairs, shared offices are also equipped with other office infrastructures, such as printers, copiers, scanners, and projectors for web conferencing. All members can access these facilities without additional fees. The coworking service provider is able to spread this cost over a lot many people making it more affordable. The coworking company also takes care of the Annual Maintenance Contract (AMC) for these equipment, taking it off your shoulder.

4. Flexibility in Pricing

The pandemic has proved that not everyone needs to be in the office to be productive. Remote working has many advantages, and businesses are likely to continue following a hybrid model to lower their costs. Offices continuing with the traditional office model will see that there are days when quite a few seats in the office are empty and others when there aren’t enough desks for everyone to work at.

Flexibility is one of the top advantages of coworking for entrepreneurs. Leases are shorter, and you can add or remove desks whenever needed. You can even hire a desk for just one day! So, let’s say you’ve got a project that five people need to work on – you can rent five desks for the week. The next week, you may choose to rent space only for two desks. As your team grows, you can increase the number of desks rented.

Best 7 ways how Coworking Spaces benefit Startups and Entrepreneurs

On the other hand, when times are tough and profits low, a small business wanting to reduce costs without compromising on their square footage can do so by switching to a different location.

đź’ˇ Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282

5. Affordable Amenities

Along with furniture and office equipment, coworking spaces also offer other amenities like a kitchenette with a microwave and coffee machine and de-stressing zones. These amenities may not be affordable for startups on their own. You can also enjoy front desk services, which is typically an additional expense for small businesses.

Also, when you work out of a shared office, you need not spend money on setting up a meeting room or conference hall. The Coworking office will have meeting/conference rooms, which you can use for free for a few hours every month, based on the package you choose. You can avail of these facilities subsequently by paying additional charges.

6. Lower Office Maintenance Management Costs

In light of the current pandemic, sanitization and housekeeping have become more crucial than ever. No business can afford to ignore these services, but there are significant costs associated with them. More often than not, startups and small businesses might not have the budget to invest in fumigation equipment or no-contact sanitizer dispensers.

When you work out of a coworking space, the service provider takes care of all housekeeping services as well as sanitizing the office space regularly. To make the office safer for everyone working there, they may upgrade the infrastructure – for example, automatic doors may be installed to reduce touchpoints.

7. No Commuting Costs

Commuting costs and employee travel allowance can also take up a considerable amount of your budget. Startups, SMEs, and entrepreneurs can save costs related to commuting by opting for Neighborhood Coworking spaces.

You can choose offices in multiple locations in the city, and your employees can work out of the office closest to their house. Neighborhood coworking typically caters to customers within 5 km of the office radius – it means you and your employees can walk to work.

đź’ˇ Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282

Summing It Up

Cost reduction is one of the most important shared office advantages for entrepreneurs and startups. These spaces have lower rentals, flexible leases, furnished office spaces that are ready to move into and equipped with all the amenities you may require. In other words, coworking offices help you reduce both operational and capital, allowing you to save more.

If you’re in Delhi, Noida, or Gurgaon, check out the shared offices provided by The Office Pass (TOP). Choose a desk, move in and get ready to start your success story. To know more, contact us at 89998 28282.

BOOK A COWORKING TOUR

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Demand for Coworking Office Space in Delhi-NCR

by | posted in: Coworking in South Delhi | 0

Did you know India was the fastest-growing market for coworking space in 2020? Yes, in the year 2020, coworking real estate in India was estimated at about 10 million sqft to seat over 16 million people.

Interestingly, a bulk of India’s coworking spaces is located in three metros – Delhi-NCR, Mumbai and Bangalore. With entrepreneurs launching new startups every day, the coworking space demand is expected to exceed the supply. The coworking share of office space in India’s top 7 cities increased by 5% in 2017 to 12% in 2019 and it’s still growing. Let’s take a look at a few numbers and see why Delhi-NCR a favorite among companies.

Coworking Office Space in Delhi

Delhi isn’t just the political capital of India; it is also where many startups find their feet. As of 2018, there were 322,044 companies registered in Delhi. It comes as no surprise that Delhi one of the leading locations for coworking offices in India.

The map of Delhi is dotted with coworking spaces. A few years ago, Delhi offered over 2,500 seats in 250,000 sq. ft. space. These are being used by freelancers, entrepreneurs, SMEs and known businesses like Clix Capital. Some key locations that are preferred by coworking enthusiasts include Hauz Khas, Green Park and South Delhi.

Coworking Office Space in Delhi-NCR

Coworking in NCR is not just about Delhi. Cities like Gurugram and Noida have something to offer too. Since the 1970s when Maruti established their manufacturing plant in Gurgaon, the city has grown in leaps and bounds. Today, half of India’s Fortune 500 companies have an office in Gurgaon. If you’re looking for coworking spaces in Gurgaon, you can check out DLF cyber city and Sohna Road.

In recent months, Noida has become a more popular coworking destination as compared to Gurgaon. Shared office space in Noida is available in sectors 4, 5, 16 and along the Noida-Greater Noida expressway.

6 Things should keep in mind while choosing Coworking Space in South Delhi

Growing Demand for Coworking Spaces in Noida

There are two main reasons why Noida has overtaken Gurgaon in terms of the demand for coworking spaces. Firstly, Gurgaon has limited connectivity as the metro does not extend to all sectors. On the other hand, Noida has an extensive metro network that ensures that almost all sectors are well-connected.

Secondly, the Haryana government recently announced The Haryana State Employment of Local Candidates Bill 2020. This bill states that private companies must reserve 75% of all jobs with a monthly salary of up to INR 50,000 for local candidates. Fearing that the bill might affect new hires and spike operational and training costs, some companies are planning to move to Noida. The emerging city falls under the Utter Pradesh government that does not have any such reservation rules. Lastly, rentals are about 40% lower in Noida..

Why are Coworking Spaces Gaining Popularity in Delhi-NCR?

Let’s state the obvious again – coworking spaces are beneficial for solopreneurs as well as small-medium enterprises. In light of the current pandemic, when companies are reassessing their budgets and the need for a physical office, coworking spaces have emerged as the ideal mid-way between working from home and the traditional office.

The coworking spaces have established visible sanitization processes and updated infrastructure to minimize touchpoints making these spaces safe for everyone. Remote working has proved that employees need not be physically present in the office at all times. And working from home and coffee shops may not be always ideal. Coworking spaces help overcome these challenges. Some of the key advantages are:

Key Advantages of Coworking Spaces

  • Lower rents: Instead of renting the entire office, you only pay for the desk space
  • Furnished ready-to-move-in office spaces: Companies do not need to worry about furnishing and decorating the offices
  • Shorter leases and hence flexibility: You can add and remove desk as per your needs
  • Affordable amenities: Amenities like Wi-Fi, printers, web-conferencing devices, etc. can be used by everyone working in the space
  • Lower operational overheads: Companies do not need to worry about paying electricity bills or anything extra for housekeeping, internet, etc.
  • Networking opportunities: Coworking spaces organize a number of events and workshops to help people, especially freelancers and solopreneurs interact within the space
  • Shorter office commutes: Since there are multiple locations within a city, employees can choose the office closest to them.

Finding the Right Coworking Space in Delhi NCR

If you’re looking for coworking space in Delhi, Noida or Gurgaon, check out The Office Pass (TOP) coworking facilities. You can rent a desk for a day or a month – however long you need it. In addition, you can also book meetings and conference rooms whenever needed. Designed to meet the needs of employers and employees, TOP coworking spaces are convenient and cost-effective. To find out more, contact us at 8999828282.

BOOK A COWORKING TOUR

6 Reasons Why Coworking Spaces Are Better for Your Start-up than Traditional Offices

by | posted in: Coworking Spaces | 0

Moving to an office is an important milestone in the journey of every start-up. However, it is easier said than done, especially in a country like India where commercial real estate prices are skyrocketing. More often than not, the traditional office real estate market is not friendly to start-up founders who are typically strapped for cash.

This is where coworking spaces and neighborhood offices score higher than traditional offices. Besides offering the most budget-friendly office spaces to businesses of all kinds and sizes, shared offices also help start-ups in other business aspects, such as networking, collaboration, employee retention, employee productivity, and more.

If you are an entrepreneur caught in the crossfire of coworking space vs. traditional office debate, read on. Here are a few reasons that make coworking spaces a better option for start-ups than traditional offices.

6 Reasons Why Coworking Spaces Are Better for Your Start-up than Traditional Offices

  1. Lower Rents
  2. Flexible Leases
  3. Networking Opportunities
  4. Employee Retention
  5. Facilities that Reduce CapEx
  6. Productive Work Environment

1. Lower Rents

Let’s start with the obvious! According to a report published by Knight Frank, established corporates spend around 9% to 12% of their total operating costs on real estate, while for start-ups, it could be more. One of the main pros of coworking spaces is that they are much cheaper than working out of a traditional office. As indicated by a 2019 report by JLL, coworking offices help save around 20% to 25% of costs compared to traditional offices.

6 Reasons Why Coworking Space is a better option for start-ups than Traditional Offices

Firstly, the rents/monthly charges of coworking offices are lower and more affordable, helping you keep your real estate costs to the bare minimum. Secondly, the offices come fully furnished – you don’t need to worry about finding furniture that fits the space or looking for professionals to build cabinets or do interior designing.

2. Flexible Leases

In most Indian cities, the lease for traditional offices is for at least 11 months. Not all start-ups are in a position to sign in to such a long lease, owing to financial constraints or rapidly growing needs. As the goals, plans, and requirements of start-ups keep changing, what they need in the first few years is flexibility – that’s exactly what coworking spaces offer.

One of the greatest advantages of coworking offices is that they provide a wide range of packages, including monthly, weekly, or daily plans. You are not tied into a long contract, so you can change the package to suit your growing needs or exit the workplace if required. For instance, you don’t need to rent out a large office or move into a smaller one when you upsize or downsize the team – you can simply add or remove a few desks into your contract.

3. Networking Opportunities

Networking is pivotal for all start-ups – that’s how you find new projects, new clients, new partnerships, and new talents for your team. The most notable difference between coworking and traditional office spaces is that the former has people from many different companies working in the same space while the latter has employees only from one company.

When you work out of shared offices, you’ll meet and interact with several businesses and professionals, including start-ups, established businesses, and freelancers. A quick conversation in the kitchenette could help you solve a problem or you may meet a freelancer who can come on board for a project. For example, when you are launching a product, you can collaborate with a graphic designer working next to you to create posters or partner with a digital marketing agency for your marketing requirements.

Reasons Why Coworking Spaces Are Better for Your Start-up than Traditional Offices

4. Employee Retention

The traditional work scenario has been changing for quite a while, and the ongoing pandemic has transformed it like never before. Today, employees are looking not just for fat salaries or steep career growth opportunities. Surveys show that remote working, work-life balance, flexibility, less travel, etc., are equally crucial for employee retention.

Such surveys and insights make one thing clear – start-ups looking to attract and retain talents must move away from traditional offices to a more hybrid model. Coworking offices and neighborhood offices offer flexibility and reduce commuting time, thereby reducing employee turnover.

5. Facilities that Reduce CapEx

Even a company that does most of its work digitally on a laptop or computer needs more than just that. Capital Expenditure or CapEx, which included all physical assets, can drain start-ups financially. For instance, when you set up an office, you need printers, a phone, air conditioners, etc. Besides, to keep your employees comfortable, you may also need to have a coffee machine, a microwave, and a water cooler.

This infrastructure comes built-in with coworking spaces, and you don’t need to worry about buying it or maintaining it. Nor do you have to concern yourself about overheads, such as security, electricity, air conditioning, and housekeeping. Coworking spaces also offer a variety of other services such as lunch-ordering, front desks, a nap room, and de-stressors like a pool table or yoga classes. They also organize training and recreational events in the evening that your team can attend.

6. Productive Work Environment

Employee productivity is important for all businesses, even more so when you are a start-up. One of the core pros of coworking space is that its very design and layout enhance productivity. Unlike a traditional office, shared offices use a combination of open layout designs, closed spaces, and break areas. Such a layout facilitates collaboration and communication while also ensuring privacy when required.

Coworking layouts also offer people a variety of spots to work at. When you are doing regular work, you can pick a seat in the open floor layout, and when you need to concentrate, you can choose a more secluded spot. When you need to collaborate or brainstorm, your team can work out of a cabin.

Final Thoughts 

When it comes to coworking space vs. traditional office, start-ups can benefit immensely from coworking spaces. Shared offices are cost-effective, flexible, professional, and gives your brand countless opportunities to network. You never know- you may even find a mentor on the same floor!

If you are based in the NCR, check out the coworking spaces offered by The Office Pass. These ready-to-move-in spaces give your start-up the perfect platform to build your brand and grow. What’s more, you can also enjoy peace of mind knowing that many of your operational overheads have been taken off your task sheet. To find out more, contact us at 89998 28282.

BOOK A COWORKING TOUR

Coworking Office Space in Sector 4 Noida

Top Reasons Why COVID-19 Makes Coworking Spaces Even More Important

by | posted in: Coworking Spaces | 0

Several predictions are doing the rounds for what the post-COVID-19 world will look like – from how it will change our habits to the economy to educational methods. Almost every study on the present and future impact of the pandemic agrees on one thing – workplace practices will never be the same again.

With flexible work arrangements gaining momentum, businesses that don’t adapt to the changing times may find themselves in a crisis. Even the ones that survive the pandemic will have to relook at their real estate consumption and work arrangements. Working out of a coworking office space will greatly help businesses strengthen their position and stay in the game.

Coworking spaces have always had advantages for growing businesses, and COVID-19 has made them even more important. Let’s check out why.

5 Reasons Why COVID-19 Makes Coworking Spaces Even More Important

  1. Not Everyone Can Work from Home
  2. Pandemic-Hit Businesses Need Cost-Saving Solutions
  3. Community Matters
  4. Going Hybrid Is the Name of the Game
  5. Safety is of Paramount Importance

Top 5 Reasons Why COVID-19 Makes Coworking Spaces Even More Important

1. Not Everyone Can Work from Home

One of the most noticeable changes during the pandemic was that businesses all over the world switched to remote working. However, the thrill of not having to go to the office and the freedom to work from the bedroom quickly faded when people found the lines blurring between their personal and professional lives. Working from home, despite its benefits, isn’t for everyone.

Since schools are also functioning remotely, many employees have their children at home, demanding their attention. There’s also the comfort factor to be considered – you need a desk, a comfortable chair, and a room or corner you can call your home office. Considering the space restrictions in Indian apartments, not everyone has the luxury of converting a room to their home office. Without a dedicated office space, productivity dips, and distractions increase.

Situations like this bring out the importance of coworking space in COVID-19 times. It allows employees to work from office spaces without distractions and enjoy all facilities found in a traditional office. Startups, small businesses, and even established corporates can opt for neighborhood coworking, where they can rent desks in multiple offices across the city and employees can work from the one nearest to them.

2. Pandemic-Hit Businesses Need Cost-Saving Solutions

Cutting costs has always been a priority for businesses, especially for startups and small businesses, and the pandemic has made it more important than ever. With economic uncertainty on the rise, companies of all sizes and types are now forced to save costs. The importance of coworking in COVID-19 is unquestionable as it helps businesses reduce operational and capital expenditures.

Working out of a coworking space gives businesses access to a wide range of amenities without the investment. It includes a wide range of office furniture, facilities like Wi-Fi, printers, and scanner, and front desk services, among others. Shared office providers also take care of maintenance management, and thus lower a company’s monthly overheads.

That’s not all! The general housekeeping and sanitization activities are also taken care of by coworking service operators to safeguard members from viral infections like the one we are battling currently. Long story short, moving to a coworking or shared office space during COVID times will help ease the financial strain to a considerable extent.

3. Community Matters

The COVID-19 pandemic has made it difficult for people to meet over a cup of coffee in the office cafeteria or take part in local networking events. The physical distancing norms and restrictions on social gatherings have all contributed to a decreasing sense of community among entrepreneurs and professionals alike. Moreover, a recent study has shown that working from home makes people feel isolated and increases stress levels.

Even before the advent of the pandemic, shared offices were known for building business communities and fostering collaborations. And now, with pandemic diminishing the possibilities of traditional networking, coworking offices serve as one of the best ways for pandemic-hit businesses to reconnect with the community and recover.

The very structure and layout of coworking offices play a key role in encouraging people working within the space to interact and network with each other. Add to that the social events and workshops they organize, you can easily plug into the business community for growth, support, and resources.

4. Going Hybrid Is the Name of the Game

The ongoing pandemic has shown us that things can change overnight – one day, you will be working at your office, and the next day, you will be working from home because there is a lockdown or curfew. Such restrictions, together with safety concerns, have prompted many companies to favor flexible work arrangements over conventional ones.

According to a report named The Future of Work: From Remote to Hybrid published by Capgemini, hybrid working models seem to the future of businesses. And, the importance of neighborhood coworking in facilitating hybrid working cannot be stressed enough. It enables organizations to remain flexible and decentralized instead of being location-dependent.

Switching to a hybrid model that balances work from home and working from a coworking space will also give people a much-needed respite from virtual interactions. Businesses opting for decentralized operations also stand to gain business continuity, not to mention the employee satisfaction factor.

5. Safety is of Paramount Importance

Last but not least, the COVID-19 pandemic has highlighted the importance of coworking spaces in terms of employee safety. It might sound counterintuitive that a shared office space where people from many companies work together is safer than conventional offices during the pandemic, but it is true!

Also Read: What Makes Coworking Spaces A Better Option During Covid Times?

To begin with, all reputed flexible space providers are operating in compliance with COVID-19 protocols. There is dedicated staff to carry out sanitization and disinfection, and the open office layout of coworking spaces makes it easier to have seating arrangements without compromising on physical distancing norms.

Above all, neighborhood coworking allows people to work out an office in their locality. They can walk to work rather than commuting to the centralized office, which minimizes their exposure to the deadly virus.

Coworking: The Way Forward

As the world tries to battle the pandemic and recover from its impacts, entrepreneurs and small business owners will be able to use the resources and network within coworking spaces to regain their footing. Companies that work out of shared offices and adopt the hybrid model may find themselves in a stronger position to survive and grow than those who continue to work remotely or in traditional office spaces.

If you’re looking for a coworking space in Noida, Delhi, or Gurgaon, The Office Pass (TOP) offers just what you need. Reach out to us at 89998 28282 to know more.

BOOK A COWORKING TOUR