When choosing a base to run your business from, you have two main options; leasing a traditional office space or signing up for a coworking space. With coworking spaces now offering a wider range of facilities, the lines between the two are beginning to blur, making it difficult to decide which is best for your business.
The good news? Circle Hub is here to help! Read on as we talk you through some of the main points to consider when choosing between a coworking space and a traditional office space, so that you can determine which setup most suits your needs.
What is a Coworking Space?
Coworking spaces are shared workspaces in which professionals from different companies and industries work in a communal environment. The space is run by the coworking company, with members paying a monthly fee to be able to use that space.
The most basic coworking spaces provide desks, high-speed WiFi, and possibly a few other facilities. However, most coworking spaces now take things further with a variety of professional amenities that members can use, along with recreational areas.
What is a Traditional Office Space?
A traditional office is a space, be it an entire building or a section of a building, that is used by one company. Every employee will have their own desk, and there are also usually lots of cubicles and private offices to provide separation.
A traditional office space is run by the company that’s using it. Unless the space has been purchased by that company, the office is usually leased under a fixed term.
Comparing Costs
For many businesses, especially new ones, costs heavily influence decisions. This happens to be one of the areas in which coworking spaces and traditional offices differ in a big way…
To put it simply, a coworking space is usually the most cost-effective option for any business. Leasing an office is expensive, especially if you want an office in a prestigious part of town. Compare that monthly rental fee with the monthly membership fee at a coworking space and you’ll be shocked at the savings.
Of course, it’s not just the monthly lease vs. monthly membership that you’d need to consider. There are so many other costs involved with running your own office too. Overheads, such as utilities, WiFi, and a cleaning service can really add up. You’ll also have to fork out for office equipment, from desks and chairs to printing facilities. All of these are already provided at a coworking space. All costs related to running the workspace will be taken care of, making that monthly membership fee seem like even more of a bargain!
Flexibility and Scalability
Even if the costs of leasing a traditional office for your business don’t intimidate you, the limitations set in place by the contract that you’ll need to sign could cause problems. Your lease will be for a fixed term – usually, at least a couple of years.
Why is this an issue? Because it can significantly affect the scalability of your business. If you experience sudden success and want to grow your company, the office that you’re leasing will soon end up too small. This could mean leasing a second office, greatly adding to your costs. The same applies if you need to scale down for whatever reason. You’ll be stuck paying for an oversized office that isn’t being fully utilized as you’ve had to cut back on your team.
This is why the flexibility offered by a coworking space is a huge draw for many. Membership fees are paid monthly and there aren’t any long-term commitments involved. You can stop and start your membership whenever you’d like too – ideal if you find yourself traveling for a month at a time.
In terms of scalability, this flexibility makes it easy to grow a business. Need to add in more team members? Simply sign them up for a membership too!
The Need for Privacy
Usually, coworking spaces are designed with an open-plan layout. These are very different from traditional offices, where people are separated by cubicles and walls. At a traditional office, it’s very easy to find some privacy. This can be important if your business is centered around handling confidential information.
On the other hand, if privacy is only required at certain times by your business, a coworking space can still deliver. Many offer the use of private office suites, alongside the communal working areas. At Circle Hub, our private offices are available in a variety of sizes. The smallest fits a single desk while the largest fits five, giving you plenty of options depending on how big your team is. The best part is that, once again, there aren’t any long-term commitments involved. Whether you need a private space for a day, a week, or a month, you’ll be able to book your chosen office suite as you see fit.
If you only need a private space for an hour or so, there are also conference rooms available for hire at Circle Hub. In each one, you’ll find a flat-screen TV and a whiteboard, making these sleek, glass-enclosed spaces ideal for meetings and brainstorming sessions!
Control and Corporate Culture
Coworking spaces are usually designed to be appealing to all. They tend to be bright and modern, offering an inviting environment to work in. While there’s nothing wrong with adorning your desk with a few personal items, you’ll need to leave your space as you found it. This means that everything will need to be packed away once you’re done working, with no personal touches left behind.
This suits many businesses well. However, for others, corporate culture is important. If you’re trying to create a certain vibe that’s in line with your company ethos, you won’t have that level of customization at a coworking space.
With a traditional office, you’ll have much more control. From the layout of the workspaces to the decor and furnishings, you’ll be able to create an environment that truly reflects your company. Sure, you’ll be paying more for this honor but, in some cases, it may be worthwhile.
The Importance of Networking
It’s no secret that networking can really propel a person’s success. It’s great for career development, exposing a professional to vital advice, industry insights, and project recommendations. Network for your business and you’ll be able to improve visibility and reputation. This will help to give your company a professional edge. Simply put, the more you network, the better for your business!
If your company is at the stage where networking could provide a big boost, a coworking space is the place to be. Networking opportunities abound in a coworking space. Each time you visit that space, you’ll meet different people from a variety of backgrounds and industries. This diversity means that you’ll undoubtedly encounter some professionals who are able to give your business what it needs.
Some coworking spaces also host networking events. These make it even easier to meet other members. Unlike traditional networking events, these don’t tend to be stuffy and formal affairs either. More often than not, they’re causal and relaxed, which encourages people to mingle.
In a traditional office, networking is limited. You’ll be surrounded by, and sat next to, the same people each and every day. Everyone around you will be working for the same company, restricting your ability to meet new people.
Office Management
While office management may not be something that many initially think of, it’s worth some consideration. After all, an office needs to be managed in order to run efficiently. Someone needs to be at the front desk and you may also need a floor manager to stay on top of noise levels.
With a traditional office, you’ll have to take care of all of this yourself or hire someone to do that job. At a coworking space, you won’t need to worry about any of it. You’ll be greeted by a friendly face when you walk through the door and there’ll also be an on-site community manager to help keep everything on track. They’ll be on hand to answer any questions that new members might have. They’re also the people to speak to if you want an introduction to other professionals.
Recreational Facilities
Recreational facilities aren’t usually at the forefront of someone’s mind when deciding between a coworking space or a traditional office space. However, having these facilities available can make a huge difference to productivity. The ability to take some time out can really boost a professional’s mental health, optimizing their work performance as a result.
Lease a traditional office and it’s unlikely that you’ll have the funds, or the extra space, to provide recreational facilities. However, at a coworking space, there are often a few to choose from.
At Circle Hub, for example, we have an on-site gym that our members can use whenever they want. We also have a gaming room – perfect for when you need to take your mind off a project that has been bogging you down! Our members are also welcome to use our kitchen area. It’s equipped with all you could need to whip up a snack, or you could just take advantage of the free refreshments on offer. Another cup of coffee, anyone?
Choosing Between a Coworking Space and a Traditional Office Space
When it comes down to deciding between a coworking space and a traditional office space, there are a few key questions to ask yourself:
- What does your budget allow for? If finances are limited, a coworking space won’t break the bank.
- Are you hoping to grow your business anytime soon? If so, a coworking space makes scalability a lot easier.
- How much privacy do you need? If constant privacy is required, a traditional office would be better. On the other hand, if occasional privacy is all you need, a coworking space can provide that.
- Is corporate culture important to you? If it is, a traditional office will give you more control.
- Will networking help your business? If so, a coworking space makes this much easier and more convenient.
Hopefully, those main points will help you to pick the perfect workspace for your needs!
Want to know more about the coworking spaces offered by Circle Hub? Click here to book a tour today!