San Francico's Mission Social -- A Unique Coworking Space in San Francisco for Social Enterprises, Small Businesses, and Entrepreneurs (Click Image To Enlarge)
Here are the numbers that support the case for coworking--and why it's not just for startups or freelancers anymore.
Fun. Friendly. Inspiring. Collaborative. Productive. If you wouldn't define your workplace with any or all of those terms, you may have to ditch your own desk and take a seat at a coworking space near you. Even if you aren’t an entrepreneur or freelancer, the benefits of coworking, according to Deskmag’s annual Global Coworking Survey, are pretty hard to ignore: 71 percent of participants reported a boost in creativity since joining a coworking space, while 62 percent said their standard of work had improved.
The study also found that half of all coworkers access their work space around the clock--with only 30 percent preferring to work during normal business hours. Regus CEO Mark Dixon tells Fast Company.
“The future of work should not be dictated by space or place, but by the individual and the tasks that he or she has to deliver. Many employees are now measured by output and productivity, and not just 40 hours spent sitting at a desk. Workers and the companies for which they work are increasingly realizing that they need to provide and utilize a wide range of workplaces to accommodate an increasingly diverse workforce with very different expectations of what work is, and where and when it should happen.”
There are a number of very good reasons why companies should consider coworking facilities besides the potential cost savings:
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That’s why Dixon says, companies such as Google, Amazon, Twitter, and half of the Fortune 500 offer their staff temporary spaces at Regus to hold meetings or to get work done on the road. Regus offers flex space to more than a million people a day worldwide.
Regus's new street-level business lounge, set to open at 747 3rd Avenue in New York in April 2012 (Click Image To Enlarge)
Dixon notes that coworking allows for businesses to test new markets relatively risk-free. Dixon explains.
“Our research tells us that today anywhere between a third and half of all workers are flexible and mobile. Four years ago flexible working was the reserve of quirky marketing agencies and IT shops. Today, it’s a way of life influenced by the growth of the freelance economy and the need to expand the top-line by market expansion.”
Regus's business lounge in New York (Click Image To Enlarge)
For example, Regus plays host to real estate agencies that ironically don’t have their own real estate. Instead, they give all the agents cards to check into a nearby coworking center when they need to print materials or get paperwork done.
Another look at the New York office of Regus, which offers flex space to more than a million people a day worldwide (Click Image To Enlarge)
Compared to a traditional office, Deskmag found that an overwhelming majority (90 percent) of coworkers said they got a self-confidence boost, likely due to the fact that many spaces are filled with supportive communities that enable creative collaboration.
Dodd Caldwell, founder of Loft Resumes and MoonClerk, has been coworking for two and a half years in Greenville, S.C. Most recently, he’s sharing space with other startups at Iron Yard. Caldwell say.
“We're a pretty curated coworking space, so even though we're made up of different companies, we're all fairly kindred spirits. By running his small businesses in a curated coworking space. I get the advantages of the culture of a medium-size business without having to deal with most of the downsides that come with it, like bureaucracy.”
One of the main advantages to coworking, Caldwell says, is the ease of collaborating with other companies sharing the space, many of which don’t have more than three people.
“Sometimes that's just tapping someone outside of your team on the shoulder and asking their opinion. Other times, it may be a 15-minute whiteboarding session with a developer on another startup.”
The ability to approach problems from a variety of angles is the undercurrent running through coworking spaces like Secret Clubhouse. Originally established by Rick Webb (cofounder of The Barbarian Group) in September, the Secret Clubhouse addresses a simple, but critical, need for entrepreneurs in the already crowded coworking scene in the Williamsburg section of Brooklyn: it gives them a place to sit every day and take advantage of being elbow-to-elbow with other startup impresarios.
Inside Brooklyn's Secret Clubhouse, which hosted staff from Gawker, Foursquare, Tumblr, and Vimeo, whose offices were without power post-Hurricane Sandy (Click Image To Enlarge)
In the disastrous aftermath of Hurricane Sandy, those seats were filled with staff from Gawker, Foursquare, Tumblr, and Vimeo, whose offices didn’t have power. Now that things have settled down, manager Alison Vingiano says Secret Clubhouse isn’t quite filled to capacity of 35 desks, but those who are working from there can work alone or plug into the local tech community through hosted events or just from hanging out in the basement lounge, which is appointed with a pool table, musical instruments for impromptu jam sessions, as well as food, drinks, and cushy seating.
Another look at Secret Clubhouse (Click Image To Enlarge)
Vingiano says that while collaboration is now a main focus of Secret Clubhouse, “a lot of it happens naturally.” Between hosted meetups and skill-sharing events, Vingiano says Secret Clubhouse members are encouraged to announce positions for hire or talk about what they are working on.
Contrary to popular opinion that an open environment like the Secret Clubhouse is just as distracting as a coffee shop, 68 percent of those polled by Deskmag said they were able to focus better, and almost as many (64 percent) reported they were better able to complete tasks on time.
Scott Hinson, lab director at Pecan Street Inc.’s new Pike Powers Commercialization Lab, is going to be in the unique position of fostering collaboration in the space, while also helping the companies working there to stay focused and retain privacy.
The Pecan Street Inc. Lab, opening in May 2012 (Click Image To Enlarge)
The $1.5 million lab, located in northeast Austin, will be officially opening in May to promote research, commercialization, and education tied to smart energy grids, advanced information technology, clean energy, and health care applications. As the nation’s first nonprofit smart-grid research lab, it’s going to give smaller businesses the ability to use equipment like a spectrum analyzer that would cost roughly an engineer’s annual salary, without the huge investment.
Chicago's Onward Coworking space, in the West Loop (Click Image To Enlarge)
The challenge, according to Hinson, will be to keep proprietary projects a secret. But he’s not overly concerned. he says.
“We just have to be conscious of who can’t be around whom [when scheduling work].”
In addition, the facility has security controls such as thumbprint readers and secure Internet access. If need be, says Hinson, they can wipe all data from computer terminals every time someone new sits down to use it.
The 20,000-square foot CoCo in Minneapolis-St. Paul operates out of the historic trading floor of the Minneapolis Grain Exchange (Click Image To Enlarge)
Hinson says.
“As long as we set the right expectation we can minimize challenges. If you set the expectation you get a place to do really cool stuff and there might be some other folks that are doing that too, so we can avoid it from the get-go.”
Dixon believes that the flexibility to “work your way” is leading to greater productivity and job satisfaction. He points out a recent survey conducted by MindMetre in which 64 percent of U.S. employees are happier with their jobs today than they were two years ago because of the increased flexibility and shift towards a clearer work/life balance. Dixon adds.
“In addition, there is a plethora of research that shows flexible workers experience lower levels of work-related stress and higher levels of work satisfaction. The healthiest option for employers and employees is to continue to work together to redefine the parameters of work, and how it is conducted and rewarded.”
COMMENTARY: Coworking or shared office facilities really began to take root during the Great Reession which began in 2007, when many companies were forced to downsize by laying-off workers and reducing office space in order to reduce their operating expenses. As a result, millions of square feet of office, retail and manufacturing space became available, and rents dropped dramatically. Many commercial real estate brokers and developers were forced to rent out their surplus space to individuals and companies on an as needed basis. The effects of the Great Recession, the internet, social media and need for collaboration has created a huge pool of mobile workers who either work out of their home or work in coworking or shared office facilities as the need arises. Today hundreds of coworking or shared office faclities rent out office, retail and even manufacturing space on an hourly, daily, weekly or monthly basis to meet the needs of corporations and the mobile workforce.
There are several advantages for renting coworking or shared office space:
- Elimination of fixed monthly lease rent.
- Ability to pay for space on an as needed and affordable basis.
- Shared office facilities are available just about everywhere now, even at airports, convention facilities and hotels.
- Elimination of facilities costs (utilities, janitorial, insurance, security, maintennce and repairs, phone, fax, copier and miscellaneous supplies).
- A professional facility for conducting staff and client meetings and collaborative efforts.
- Provides a place for direct social interaction between broadly dispersed workers.
If you believe your company could benefit from coworking or shared office space, conduct a feasibility study comparing the pro's ad con's and differences in costs between a shared office space and a lease. If you are a startup, I highly recommend that you maintain a mobile workforce and only rent space on an as needed basis. If you have a longterm lease, it may often be advantageous to sublease the space to a third party (if the lease allows subleasing), and rent coworking or shared office space on an as neede basis, thus eliminating a lot of needless overhead in the process. This gives workers an opportunity to interact directly, collaborate and share ideas.
Courtesy of an article dated Jauary 15, 2013 appearing in Fast Company
http://www.fastcompany.com/3004788/future-coworking-and-why-it-will-give-your-business-huge-edge?partner=newsletter
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