The Coworking Revolution is Well Upon Us
The coworking revolution is well upon us. Freelancers, early stage companies, and contractors of larger companies have swarmed the nearly 800 coworking office spaces across the United States. Coworking bridges the gap between working from home/your local coffee shop and renting commercial office space. Coworking spaces offer the comradery and business resources (copier, scanner, mail service, etc.) of a traditional office space with the flexibility and convenience of working from home. Though coworking spaces offer great benefits (free coffee!) and competitive prices ($192 is the average cost of a non-dedicated desk according to Desk Mag) compared to renting a traditional office space, not all companies will be successful in such an environment. Even if your company is suited for coworking, picking the right space can require a significant amount of leg work and diligence.
First, let’s talk about some of the coworking stats that tend to show that coworking can be extremely beneficial to freelancers and founders alike. Desk Mag recently performed their annual survey of people working in coworking spaces to gauge their productivity and happiness. The below numbers show that companies should give coworking spaces a strong consideration when locating an office or an employee.
71% of people in coworking spaces surveyed responded as being more creative;- 62% reported that their measure of work improved significantly;
- 90% said they felt more confident when coworking;
- 82% claimed to be more motivated;
- 91% felt that coworking fostered better interactions with others;
- 60% were more relaxed at home;
- 92% reported to be highly satisfied or satisfied with their coworking space; and
- 75% of the respondents have at least a 4-year degree.
Coworking has some major advantages over the traditional office environment. First and foremost is the collaborative nature of the space and the opportunities to network. The ability for different types of businesses, professionals, passions, and personalities to intersect under one roof is unparalleled in any other model. The ability to interact, cross-promote, or work together on a single project makes coworkers happier and more efficient. For example, during a group roundtable at the authors coworking space, two of the members from different companies discovered that they were working on the same problem that has two different real world applications. These two now have plans to collaborate in the future. This collaborative culture, as demonstrated by the previous example, is enhanced by the coworking spaces that host events that promote community interaction. Networking and collaboration opportunities are some of the biggest assets a company can expect to find in a coworking space.
Coworking spaces also tend to host presentations for important outside service provides or contributors to the startup world. It isn’t uncommon for a company in a coworking space to drop in on a talk from a VC firm about the advantages of a polished investor deck or to hear a lawyer speak about the importance of having all of your corporate documents in place in order to attract the aforementioned VC.
Another major benefit of coworking is the ability to maintain a professional work space and office infrastructure without needing to commit to a full office. While it is true that many coworking spaces also provide private offices (a great choice for companies that want to be part of the coworking community but also need privacy or the ability to shut out the noise) the vast majority of coworkers work at either an available or dedicated desk in an open environment. This keeps costs much lower for those looking for a better location that Starbucks® to work without having to break the bank.
Coworking spaces also allow their members to work in a more modernized lifestyle or with a more flexible schedule. Standup desks, game rooms, and theme days are common staples of coworking spaces. Many spaces provide a kitchen for storing and cooking meals, outdoors areas or fitness studios for relaxing or blowing off steam, and 24 hour access to allow members to work when they please. By “working your way” it is likely that you will find yourself to be happier and more productive.
Coworking will not be beneficial for all employees/companies unless they can deal with some of the distractions that come with coworking. If you are one who finds themselves easily sidetracked or cannot concentrated in an ambient environment, you may find it hard to get work done in an open space that can be as loud as the chatter at your local café. Also, you may not find it worth the expense to pay for a membership at a coworking space if it is difficult to get to, is not open during the hours when you find yourself to be most productive, or does not promote a culture suited to you (as you research coworking spaces, you will notice that some tend to be more freelancer heavy v. startup heavy or may be tailored to one type of business or profession).
You also need to make sure you are picking the right space for your needs. A hardware engineering startup will inevitably have different space and resource needs than a web developer. You will also want to consider whether you or your company will benefit more from being part of the crowd (choosing a coworking space filled with individuals only in your field) or standing out from it (being the only or one of the only companies in a particular field at your office). Depending on your type of business, you may benefit from being is a space filled with similar companies who can become strategic partners or you may lose your competitive advantage by getting lost in the masses.
When searching for your coworking space you have to ask yourself two pivotal questions: Will coworking enhance my productivity/lifestyle? Is this particular coworking office the right space for my needs? Numerous options are available to freelancers, entrepreneurs, startups, etc. looking for a work space. Based on the collected data on coworking spaces, it would appear that these individuals should strongly consider locating in a coworking space because of the relative happiness, productivity, associated costs, and access to professional equipment that coworking provides. If coworking is right for you or your company, the benefits vastly outweigh the detractors.
Bonus: check out Launch Pad in New Orleans and Enerspace in Palo Alto and Chicago if you’re in the areas!
____________________________
Tim W. English is an associate at Graffagnini L.C. (www.graffagninilaw.com), working in the firm’s Bay Area office. Tim has experience representing individuals and companies on matters ranging from equity offerings, venture capital transactions, business and employment disputes, sponsorship negotiations, contract drafting, mediation, and litigation. Tim is a graduate of Santa Clara University School of Law with certificate a High Tech Law and an academic excellence award in Employment Law.
Disclaimer: This post discusses general legal issues, but it does not constitute legal advice in any respect. This post is not a substitute for legal advice and is intended to generate discussion of various issues. No reader should act or refrain from acting on the basis of any information presented herein without seeking the advice of counsel. Graffagnini, L.C. and the author expressly disclaim all liability in respect of any actions taken or not taken based on any contents of this post. The views expressed herein are personal opinion.
The coworking revolution is well upon us. Freelancers, early stage companies, and contractors of larger companies have swarmed the nearly 800 coworking office spaces across the United States. Coworking bridges the gap between working from home/your local coffee shop and renting commercial office space. Coworking spaces offer the comradery and business resources (copier, scanner, mail service, etc.) of a traditional office space with the flexibility and convenience of working from home. Though coworking spaces offer great benefits (free coffee!) and competitive prices ($192 is the average cost of a non-dedicated desk according to Desk Mag) compared to renting a traditional office space, not all companies will be successful in such an environment. Even if your company is suited for coworking, picking the right space can require a significant amount of leg work and diligence.
First, let’s talk about some of the coworking stats that tend to show that coworking can be extremely beneficial to freelancers and founders alike. Desk Mag recently performed their annual survey of people working in coworking spaces to gauge their productivity and happiness. The below numbers show that companies should give coworking spaces a strong consideration when locating an office or an employee.
- 71% of people in coworking spaces surveyed responded as being more creative;
- 62% reported that their measure of work improved significantly;
- 90% said they felt more confident when coworking;
- 82% claimed to be more motivated;
- 91% felt that coworking fostered better interactions with others;
- 60% were more relaxed at home;
- 92% reported to be highly satisfied or satisfied with their coworking space; and
- 75% of the respondents have at least a 4-year degree.
Coworking has some major advantages over the traditional office environment. First and foremost is the collaborative nature of the space and the opportunities to network. The ability for different types of businesses, professionals, passions, and personalities to intersect under one roof is unparalleled in any other model. The ability to interact, cross-promote, or work together on a single project makes coworkers happier and more efficient. For example, during a group roundtable at the authors coworking space, two of the members from different companies discovered that they were working on the same problem that has two different real world applications. These two now have plans to collaborate in the future. This collaborative culture, as demonstrated by the previous example, is enhanced by the coworking spaces that host events that promote community interaction. Networking and collaboration opportunities are some of the biggest assets a company can expect to find in a coworking space.
Coworking spaces also tend to host presentations for important outside service provides or contributors to the startup world. It isn’t uncommon for a company in a coworking space to drop in on a talk from a VC firm about the advantages of a polished investor deck or to hear a lawyer speak about the importance of having all of your corporate documents in place in order to attract the aforementioned VC.
Another major benefit of coworking is the ability to maintain a professional work space and office infrastructure without needing to commit to a full office. While it is true that many coworking spaces also provide private offices (a great choice for companies that want to be part of the coworking community but also need privacy or the ability to shut out the noise) the vast majority of coworkers work at either an available or dedicated desk in an open environment. This keeps costs much lower for those looking for a better location that Starbucks® to work without having to break the bank.
Coworking spaces also allow their members to work in a more modernized lifestyle or with a more flexible schedule. Standup desks, game rooms, and theme days are common staples of coworking spaces. Many spaces provide a kitchen for storing and cooking meals, outdoors areas or fitness studios for relaxing or blowing off steam, and 24 hour access to allow members to work when they please. By “working your way” it is likely that you will find yourself to be happier and more productive.
Coworking will not be beneficial for all employees/companies unless they can deal with some of the distractions that come with coworking. If you are one who finds themselves easily sidetracked or cannot concentrated in an ambient environment, you may find it hard to get work done in an open space that can be as loud as the chatter at your local café. Also, you may not find it worth the expense to pay for a membership at a coworking space if it is difficult to get to, is not open during the hours when you find yourself to be most productive, or does not promote a culture suited to you (as you research coworking spaces, you will notice that some tend to be more freelancer heavy v. startup heavy or may be tailored to one type of business or profession).
You also need to make sure you are picking the right space for your needs. A hardware engineering startup will inevitably have different space and resource needs than a web developer. You will also want to consider whether you or your company will benefit more from being part of the crowd (choosing a coworking space filled with individuals only in your field) or standing out from it (being the only or one of the only companies in a particular field at your office). Depending on your type of business, you may benefit from being is a space filled with similar companies who can become strategic partners or you may lose your competitive advantage by getting lost in the masses.
When searching for your coworking space you have to ask yourself two pivotal questions: Will coworking enhance my productivity/lifestyle? Is this particular coworking office the right space for my needs? Numerous options are available to freelancers, entrepreneurs, startups, etc. looking for a work space. Based on the collected data on coworking spaces, it would appear that these individuals should strongly consider locating in a coworking space because of the relative happiness, productivity, associated costs, and access to professional equipment that coworking provides. If coworking is right for you or your company, the benefits vastly outweigh the detractors.
Bonus: check out Launch Pad in New Orleans and Enerspace in Palo Alto and Chicago if you’re in the areas!
____________________________
Tim W. English is an associate at Graffagnini L.C. (www.graffagninilaw.com), working in the firm’s Bay Area office. Tim has experience representing individuals and companies on matters ranging from equity offerings, venture capital transactions, business and employment disputes, sponsorship negotiations, contract drafting, mediation, and litigation. Tim is a graduate of Santa Clara University School of Law with certificate a High Tech Law and an academic excellence award in Employment Law.
Disclaimer: This post discusses general legal issues, but it does not constitute legal advice in any respect. This post is not a substitute for legal advice and is intended to generate discussion of various issues. No reader should act or refrain from acting on the basis of any information presented herein without seeking the advice of counsel. Graffagnini, L.C. and the author expressly disclaim all liability in respect of any actions taken or not taken based on any contents of this post. The views expressed herein are personal opinion.
