Whether you are a rockstar freelancer or a CPA starting a new independent firm, establishing a physical address is one of the first steps all entrepreneurs take in getting serious with their business. There are many pitfalls involved with this process, and many things you should consider.
Here are a few pros and cons all new and early stage small business owners should consider when looking to establish a place of business and why coworking is a great choice…
Cash is king in any business. Making sure that you limit your liabilities and unnecessary overhead cost, especially during the early stage of your business is critical. Staying away from a long term commercial leases and going month to month is probably a good idea until you reach your first million, and even then it should not exceed 10-15% of gross revenue. At a coworking office you can have the presence of the bigger companies at a fraction of the cost.
Regardless of what people say, one of the biggest factors in your success in business is the quality of your professional network. You have the opportunity to create value for other people’s startups and small businesses. Sharing resources and knowledge on common problems all entrepreneurs face and having a mix of people at different stages creates and atmosphere of collaboration. For some, this helps significantly accelerate the process of trial & error, as they can learn from others mistakes.
It’s hard for freelancers and part time employees to take you serious when they are working out of your house. Coworking provides an affordable place for your freelancers, contractors and employees to work / collaborate and keep a high standard of presentation and professionalism.
Many independent practitioners (regardless of the industry or vertical) know the impact that having a real office has on the perceptions of new prospects and potential customers. It’s undeniable. When you meet someone at a Starbucks, it’s really hard to instill a sense of security that your company will be around in 2-3 or even 5 years. Close more deals with a real brick and mortar address.
With a constant flow of coffee, flexible hours and private workspaces available, it’s a no brainer why people choose coworking over working from home or traditional office space. It’s no surprise many in the startup community all over the world find they are more productive while coworking.
What is your biggest benefit from taking advantage of coworking? What coworking space are you at? let us know in the comments, we would love to know!