5 Things to Consider when Choosing a Co-working space

By Jessica Suotmaa 1

We at Lum Law Group know many who have ventured into the modern world and signed up for the modern working space.  Instead of hiring an agent to find a traditional office space, negotiating a one to five year long lease, and waiting months to move in, a co-working space can start you in their offices as soon as your credit card payment is processed.  Still, a newbie entrepreneur or small business owner might wonder, what factors should I consider when choosing between renting a traditional office space and signing up for a co-working space? As such, we have rounded up our thoughts into this listicle for your convenience.

1. Length of Obligation

Traditional office leases require at least a one year commitment with a few months deposit.  This can be a hindrance for an entrepreneur, startup owner, or small business owner who is unsure of how much space is needed at the beginning. You might want to upgrade your facilities after a few months when you hire an extra five employees.  You might need larger co-working spaces for planning and meetings.  Perhaps your employees would prefer more space for leisure activities you didn’t consider before.  There are many reasons why a business owner might realize a larger space is needed, but the traditional office lease does not afford such flexibility without loss of deposit and possible fines.

A co-working space is often associated with a “desk” or couch space in a large warehouse-like open area where freelancers can drift about.  These days, the term “co-working space” is interchangeable with executive suites where a lessee rents an office and shares the remainder of the space.  Where an executive suite contract may require a few months to a year, a co-working space is often on a month-to-month basis with little to no deposit.  The commitment is flexible and you can upgrade from a shared open space to a desk, to a small office, to a large office any time you feel it’s necessary. Decide you don’t like sharing a conference room with other tenants?  Move to your own space! The co-working space allows you to adjust and pivot when you desire.

2. Financial Obligation

As mentioned above, traditional office leases can cost more in desired downtown locations and require a high deposit depending on your personal or business credit rating.  However, a co-working space often requires little to no deposit, and starts at rates of $100 a month, depending on location. Since there is no minimum length to your contract, the financial obligation for a starting business is especially low.

3. Your Business’ Online and Offline Presence

Traditional offices offer businesses exclusivity.  You can have your business name on the street corner, on the first floor, on the list of businesses, on your door, etc.  Some may consider this a requirement for a “legitimate” business.  Most co-working spaces cannot offer this, though some executive suites may be able to put your business name on the front door or waiting area.  If you rent a private office at a co-working space, then you can place your business name on the door (or beside it), but it depends on the company offering the space.

Online Presence can be an issue for executive suites and co-working spaces without suite numbers.  On Google Business, for example, a business name, address, and phone number is associated with a location.  When an executive suite has multiple businesses registered at one location, then it’s possible that when searched online, only one location phone number will show up.

If another business at the same location of yours hires a marketing company and has especially good SEO, then it’s possible your company will be overshadowed by theirs.  Clients may call the first number that pops up and expect to be transferred to you, the way executive suites traditionally work.  In this case, the potential client may struggle to reach your business via phone, and even mail can easily be misdirected.  This is especially true if there are multiple businesses offering the same service, e.g. law offices, CPAs.

 4. Networking Opportunities

When a traditional business owner at a traditional office space wants to network, they have to seek networking opportunities through their friends, acquaintances, and clients.  They often join professional organizations, become board members, or sign up for classes. The traditional business owner has to leave their office in order to network, while the modern business owner networks everywhere.

Co-working spaces offer networking opportunities just by definition of being a “co-working space”.  To the savvy networker, this means you have more opportunities to strike up conversation with other professionals in a variety of industries, thus expanding your network.  Since co-working spaces often offer soft drinks, including coffee and tea, it’s easy to “grab a coffee” with someone who happens to be reaching for coffee when you are.

More importantly, to the business owner who is less savvy at networking, many co-working spaces hold weekly and monthly events.  These events might be industry targeted, they might offer professional education, or become opportunities for you to showcase your experience and skill set.  Many co-working spaces offer these events for free to their members, but charge a fee to outsiders to offset their costs. This means you have opportunities to meet people outside the co-working space.

5. Security and Privacy

A traditional office offers business owners privacy in that they have control over who is on the premises, the hours of operation, and the wireless internet cyber security protocols.  These are factors that are of utmost importance for certain industry professionals.

The large, open-space co-working space doesn’t offer much privacy if you haven’t subscribed to a private office or scheduled a conference room.  This could be important in industries where confidentiality and client privacy are important even if you’re just on the phone or typing an email.  There are co-working spaces that now offer private, sound-proof rooms for solo use.

 

If you’re still on the fence as to whether you should consider a co-working space or a traditional office, contact Lum Law Group to speak to an experienced attorney.