What is Coworking Space and Why is It Growing

Coworking has become prominent over the years, and so have coworking spaces. However, many people still get confused about this idea. So what is coworking space, exactly? What is it about and why is it gaining traction? What are the benefits it provides? How can you start your own coworking space? In this article, we will expound on the history and growth of coworking spaces, their benefits, and how you can take advantage of this trend and start your own business. We will also briefly discuss how digital marketing plays an important role in this business and how companies like Delesign can help you succeed when starting and running your own coworking space.

What is Coworking Space

Before we talk about what is coworking space, let us first take a look at the concept of coworking and how it came to be. Generally, coworking is when individuals gather in a neutral space to work on various projects and deliverables independently or together. Typically, these people do not work for or under the same company. The neutral space referred to here is the coworking space, a space that offers amenities like a traditional office, but a lot of flexibility and other benefits that a traditional office cannot and would not provide.

How did this concept start? In 1995, hackers in Berlin, Germany had an idea for a membership program where people could share thoughts, ideas, and space while accomplishing tasks. Effectively and technically they established the first coworking space. This gave rise to the trend of coworking spaces, eventually reaching Silicon Valley. It was also in 1995 when the term “coworking” was coined by Bernard DeKoven, defining it as “working together as equals”

In 2002, the first coworking space in Schraubenfabrik, Vienna opened its doors to enterprises. What started as an exclusive community center eventually opened its doors to freelancers working on their laptops and mobile phones. Three years later, San Francisco, USA saw the rise of its first coworking space, thanks to Brad Neuberg who believed that traditional and home offices were unproductive and unsocial. In a way, it revolutionized Silicon Valley, offering amenities like bicycle tours, massages, meditation, shared lunches, and WiFi. More importantly, it had a strict closing time of 5:45 PM. By 2006, there were roughly 30 coworking spaces throughout the world.

The idea has been around since 1995, but it was not until 2007 that the word “coworking” made it to Google’s database for the first time. A year later, there were no more than 200 coworking spaces worldwide. In 2010, the first-ever #CoworkingDay was celebrated, with the first-ever coworking conference being held in Brussels, Belgium. During this time, there were about 600 coworking spaces globally.

By 2012, the growth of coworking spaces was seen at an unprecedented rate. There were already over 2,000 coworking spaces worldwide, and social media had a huge role in this tremendous growth. Halfway through 2013, the world’s 3,000th coworking space was established.

Today, the trend continues. The growth remains unprecedented as more and more people shift to coworking. By 2024, it is projected that there will be more than 40,000 coworking spaces globally. In 2019, there were over three million coworkers worldwide. This figure is expected to nearly double in three years.

Who Benefits From Coworking Spaces

A lot of people seem to really like the idea of coworking, given these figures. So who exactly benefits from coworking spaces and how is their productivity impacted?

Startups

One of the biggest downsides of traditional offices, which is actually also one of the things that gave rise to coworking spaces, is the large overhead cost. Coworking spaces allow startups to start without worrying about expensive, long-term leases. Most coworking spaces, if not all, have a pay-as-you-go model, so startups only need to worry about paying short-term leases, depending on their capacity at a certain time. Coworking spaces are also communities, so startups can connect and network with one another in these shared spaces.

Non-Profit Organizations

Again, traditional spaces are expensive to rent, not to mention require a long-term commitment. With coworking spaces, non-profit organizations can operate more efficiently without having to pay for an expensive office space. In fact, most coworking spaces are non-profit-friendly, offering special rates to non-profit organizations to help them thrive and pursue their cause. The networking opportunities that coworking spaces provide are also extremely beneficial to non-profits.

Freelancers/Contractors

Freelancers are self-employed, so they would also benefit a lot from a coworking space without having to pay for expensive office rentals. They can always work at home and build their own office, but if they easily get distracted, they would not be that productive working at home. One of the benefits of coworking spaces is the chance to socialize, meet new people, and discuss ideas with them. Additionally, many amenities offered in a coworking space are not practically available at home.

Advantages of Coworking Spaces

We have talked about the benefits of coworking spaces to different entities, so let us dig deeper and expound on these benefits. In general, below are the advantages of coworking spaces:

They are cost-efficient and cost-effective.

Firstly, coworking spaces are cost-efficient and cost-effective. If you are running a small business or a non-profit organization, the overhead expenses on rentals alone can prevent you from thriving and growing. Simply speaking, traditional office spaces are no longer practical given the expensive leases. Aside from the rent, you also need to pay for additional costs, such as maintenance and security. With coworking spaces, you will never have to worry about upkeep expenses. There is no commitment involved. You only pay for what you use, enabling you to maximize your resources. Today, such convenience and efficiency mean a lot for startups and self-employed professionals.

They allow you to work remotely.

The very core of coworking is the ability to work remotely. While remote work is possible from the comfort of your own home, the distractions at home can affect your productivity negatively. It can also easily lead to burnout and cause you to lose your work-life balance. The good thing about coworking spaces is that they give you the liberty to work wherever and however you like. On top of that, the amenities and facilities are specifically designed to boost your productivity and keep you motivated. As a result, you can maximize your productivity without compromising your well-being.

They give you flexibility.

Coworking spaces have multiple packages suitable for different clients. Unlike long-term office leases, coworking spaces provide tailored fit packages and rates perfect for every budget. Some offer membership programs while some only offer pay-as-you-go rates. There are a lot of options, and you just need to find the right coworking space that meets your needs as well as your budget. Aside from the financial aspect, coworking spaces also give you flexibility in terms of the workspace itself. Most, if not all, coworking spaces have different types of workstations and rooms. This means that you can select the workstation that best meets your needs and even take advantage of shared conference rooms for your meetings.

They broaden your network.

With many different people sharing the space with you, it is impossible not to meet new people and broaden your network. This has a positive effect on your productivity and growth as a professional, as you are surrounded by people who also want to get things done. Typically, the people you share the space with are people you share a lot of things in common with, so you will likely quickly get along with them. Moreover, you may also brainstorm new ideas and come up with collaborations along the way. The sense of community in a coworking space is definitely different from that of traditional office space, as the networks and professional relationships here grow more organically.

Starting Your Own Coworking Space

The growth trend seems unstoppable, so entering this coworking space industry today sounds like a great idea. If you want to start your own coworking space, here are three things you need to keep in mind:

1. Assess demand.

Before you get carried away, carefully identify if there is a need for it in your area. Find out if there are existing competitors, too. It requires both groundwork and social media push. Talk to people and find out their concerns and needs. By doing so, you can easily know where you and your dream coworking space can come in. Social media is a powerful tool and you have to leverage it. Put out interesting materials, host online discussions and events, and many more. If you have no idea where to begin, you can employ the help of Delesign in creating social media campaigns. Building your online presence before you even start running a coworking space is a make-or-break opportunity, and companies like Delesign can help you establish that presence. The online and offline networks you create during this process will also benefit your business in the long run.

2. Determine your business model.

Over the years, the coworking space industry has developed various business models. After assessing the demand and needs in your community, you may choose to carry any of the following business models:

• Coworking space within your own office space

If you have an existing business with its own office space, you may consider transforming an unused part of it into a coworking space. This is a great way to offset some of your overhead costs and maximize your own office space.

• Coworking space with private offices

A lot of startups and non-profit organizations looking to scale may need more than just a coworking space, but at the same time, remain unable to sustain the overhead costs of long-term leases. You can address this problem by offering private offices in your coworking space.

• Coworking space with events and programs

Sometimes, the revenue from the coworking space itself may not be enough to sustain your business. You can be creative and host your own series of events and programs, creating new and more stable revenue streams for your business. It is also a great way of promoting your coworking space.

These are just some three proven business models in the industry. More business models work, and you may also innovate and develop your own unique model.

3. Build the space.

After determining the business model you want to carry, it is time to put your coworking space together. One of the most important things you need to get is WiFi. As much as possible, the service with the fastest speed and the best customer service. Your furniture and workstations have to be conducive to productivity. A kitchenette with basic features like a coffee machine, microwave oven, refrigerator, and sink is also crucial.

Summary

Undeniably, coworking is the future and it is here. The vast opportunities for success in this landscape are continuously growing, whether you are a client or an owner. If you are thinking about establishing your own coworking space, assess the demand first by creating an online presence. After that, decide on your business model. There are numerous coworking space business models to choose from, so go for the model that suits the needs of your target market and that can be sustainable for you in the long run. With the help of Delesign, you can easily come up with social media campaigns to build your community and attract more people as you scale your business. Contact Delesign here now.