When the idea of coworking emerged most of the coworking owners were against the closed office in the space. They believed that the purpose of coworking will be defeated. As the industry started to evolve people came up with ideas on how to add the right people into this community through the new concept of adding office space.
As a part of evolution, it was marked as an advantage for the business of coworking. But this has to be decided by owner what percent of office space to be added which is beneficial for both businesses as well as the community.
The right mix is required between both the spaces to create a successful environment. Here are different ratios of coworking mix which has its own pros and Cons.
100 % Coworking Space
- a) Everyone will be allocated with equal space
- b) More contribution towards building a community
- c) Easier to start with little capital
- a) Coworking is difficult to sell
- b) Less Revenue for a longer period
- c) Limited to only coworking people
10% Office Space 90% Coworking
- a) Much more stable revenue
- b) Easier to sell which will result in revenue sooner
- c) Adds as an expansion
- a) Higher capital required for starting up
- b) Revenue is dependent upon a larger group
- c) Groups sometimes lead to a dominant culture in coworking space
50% Office Space 50% Coworking
- a) Much more stable income
- b) Space can accommodate a large number of people
- c) easy to generate revenue
- a) Less interaction between people
- b) difficult to maintain a culture
- c) High Cost involved in setting up
90% Office Space 10% Coworking
- a) Less Labour cost because of self-sufficient offices
- b) Stable in terms of revenue
- c) Easy to sell to a larger number of people
- a) Low interaction between people
- b) Coworking crowd finds it less attractive
- c) The concept of coworking is defeated in the real sense
Offices can be taken as an advantage from a business perspective because it provides stable revenue which will help businesses to survive initially. Keeping in mind the dominating culture office space can create which may result in defeating the concept of coworking space. If you Plan to start coworking, consider adding a few offices to provide some revenue and get people in the door.
A general rule of thumb to follow? Have enough office space so the revenue covers the rent of the entire operation. This usually happens when 20% of the space is dedicated to office space and rest space to a shared office space. That way, the business can stay open while coworking takes off.