Why Startups Love Coworking: Benefits For Small Businesses

professionals coworking

Although coworking spaces are utilized by all types of professionals, startups and small businesses tend to be the heaviest users. Why? Because this working model offers some fantastic benefits to those who are in the early stages of launching a company. Read on as Circle Hub talks you through these advantages in more detail!

Low Overhead Costs

Let’s start by talking about what can often be a big hindrance to small businesses; finances.

Chances are that, as a startup, you don’t have a huge amount of cash to spare. However, setting up an office space of your own can be extremely costly. Not only will you have to fork over for a long-term lease for the space of your choosing but you’ll then have to think about all of the other overheads that come with this, from electricity to WiFi to cleaning services. It goes without saying that this can all quickly sap away your working capital, which will then affect how you’re able to operate your business.

Running your startup from a coworking instead eliminates all of those various overheads. Instead, you’ll simply have to pay a single monthly membership fee, which will work out to be so much more cost-effective than setting up an office of your own. Even if you have a team of people to accommodate, the monthly fee for each one of them will still leave you saving a significant amount, which you can then use to bolster other areas of your business.

Convenience and Accessibility

Even if you were willing to spend the extra money on an office space of your own, finding one that fits into your budget while still offering easy accessibility can be difficult. Usually, the most easily accessible office spaces are in central locations. Not only do these tend to be in high demand but they’ll also be accompanied by a high price tag. Looking elsewhere for a more affordable option could then leave you faced with a frustrating commute twice a day, which nobody wants to be dealing with!

Thankfully, with coworking spaces becoming more and more popular, you can now find them pretty much everywhere. There are likely several to choose from just a short distance from your home, along with others in prime locations that are easy to get to using either your car or public transport.

Take Circle Hub’s two locations as an example. Both our Ventura and our Northridge spaces can be accessed from multiple highways, making them so convenient for anyone who lives in the surrounding areas.

An Inspiring Environment

women coworking

When working on launching a startup, you want to be feeling your most creative and inspired self. This will give you the motivation, along with the new ideas, that you need to give your business the edge that it requires to succeed.

This is something that’s difficult to experience when working from home. Working from a small and dingy office space can also be a problem, leaving you feeling uninspired and stuck in a rut.

However, when small businesses set up shop at a coworking space, inspiration is everywhere. You’ll find yourself surrounded by innovative people, along with the exciting projects that they’re working on. Whenever you need a boost of creativity, strike up a conversation with some of the other people around you and they’ll be able to provide a fresh perspective on the task that you’re struggling with. Simply talking this through with others can give you the drive that you need to really push forward.

Networking and Collaboration Opportunities

Speaking of talking to the other people around you…this is also a great way to network and create collaboration opportunities. With statistics showing that networking plays a crucial role in the success of 78% of startups and small businesses, a coworking space could give your company the leg up that it needs.

If talking to new people and independently networking is something that you struggle with, look for a coworking space that hosts organized networking events. Don’t worry, we’re not talking about stuffy seminars and boring workshops. Instead, many coworking spaces now offer relaxed and informal get-togethers for their members to meet each other. 

At Circle Hub, our events calendar is packed with a variety of networking activities that our members can participate in. Whether you exchange ideas over a free breakfast or meet like-minded people at a yoga session, our casual events are ideal for those who want to network without too much pressure.


One of the biggest draws of working from a coworking space is the flexibility that this provides. 

For starters, you’ll be able to pick your own working hours. Sure, you may be able to do the same when working from home but, if you were to rent your own office space instead, you may find yourself limited on when you can access it due to building regulations. Many coworking spaces, including Circle Hub, provide 24/7 access, enabling you to work at the hours during which you’re most productive.

Where you work is something else that you’ll also have control over. A good coworking space will offer a variety of different workspaces for members to pick from. At Circle Hub, for example, we have hot spot desks that members can utilize at any time. There’s no pre-booking required, making them ideal for when you aren’t able to plan your schedule too far in advance. Alternatively, if you would like the flexibility to book your favorite spot for the hours of your choosing, you could make use of our designated desk service instead. 

It’s also understandable if, sometimes, you don’t want to work in a buzzing environment surrounded by other people. Perhaps you’re working on a task that requires your utmost concentration or you’re completing some confidential work. Either way, with a coworking space like Circle Hub, you have the option of booking a private office suite by the hour. This way, you can enjoy the privacy that you require for however long you need it.

Increased Productivity


Did you know that research shows that 74% of professionals find that they are more productive when working at a coworking space? This is down to a few different reasons, most of which we’ve already talked about. For example, the inspiring environment, collaboration opportunities, and flexibility offered by a coworking space go a long way in helping a professional to feel their most productive self.

As you can imagine, a boost in productivity can really help startups and small businesses. You’ll be able to get more done in a shorter amount of time. Even better, you’ll likely also find that the work you carry out when you’re feeling productive is completed to a much higher standard. 

The Potential to Scale Up

Startups tend to consist of a small team of people, or sometimes just a single individual. However, it won’t always be this way, especially if you experience a large amount of success in a small space of time. Once this happens, you’ll need to start thinking about scaling up so that your business can grow.

When you’re working from a coworking space, scaling up is so easy. You can add in as many team members as you need to without having to worry about finding a larger office space to accommodate your expanding business. 

The same applies to businesses that need to scale down. You won’t have to continue paying for a large office space that’s now only needed by a couple of people. Instead, you’ll be able to easily scale down without having to move your base.

A Professional Image

coworking area

It’s so important for startups and small businesses to build a credible reputation. However, establishing a professional image when you’re in the early stages of launching your business can be tricky. You need your clients and your customers to trust you, which they’ll have a hard time doing if you’re working from home or from your local coffee shop.

Making the move to a coworking space will immediately boost your business’ sense of competency. You’ll have a professional space to host meetings, one that will help to command respect. At Circle Hub, we have conference rooms that our members can rent by the hour. Complete with flat-screen TVs and whiteboards, these sleek and modern rooms will give your startup the professional touch that it needs to cement new leads.

Even better, some coworking spaces, like Circle Hub, give you the opportunity to make use of their street address as your business’ official mailing address. This is something that’s included in the virtual office service that we offer. Splashing our premium street address across your business cards and website will immediately make your company appear more reputable. It will also save you some admin work as we’ll take charge of collecting any mail that you receive. We can then hold it for you or forward it on digitally, so that you can deal with it when you have some time to spare.

An Improved Work-Life Balance

People who run startups and small businesses often struggle to establish a good work-life balance. It’s easy to understand why. After all, it can feel as though any extra time that you have needs to be put into your business in order for your brand to succeed in such a competitive market.

However, a good work-life balance is so important. Not only is it vital for your mental and physical health, but it can also make you so much more productive. You’ll also find that your personal relationships strengthen once you’re able to properly balance them with your work responsibilities.

This is something that a good coworking space can help with. At Circle Hub, we provide a number of amenities that our members can make use of when they need a little downtime. From our on-site gym to our gaming room, taking a short break to release some steam by doing something that you enjoy will go a long way in helping you achieve a solid work-life balance.

Coworking & Small Businesses: The Perfect Match

As you can see, coworking spaces are capable of supporting startups and small businesses in so many different ways. From helping you save on costs to boosting your productivity, it’s hardly surprising that so many startups have been flocking to coworking spaces as a way to take their business to the next level.

Interested in finding out more about the coworking spaces available at Circle Hub? Click here to book a tour today!

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