No business decision should be taken without a detailed cost-benefit analysis, which includes your proposed switch from your rented office to a coworking desk? So, is a coworking desk cheaper than the conventional rented office space option?
Many entrepreneurs make the mistake of simply comparing their monthly office rent with the cost of hiring the coworking desk. It is very important to have comparable figures in hand to minimize risk of a flawed decision.
The deposit payable on your office lease is a completely unproductive cost for your business. Keeping this deposit in a bank will help you earn interest. Using it in your business will help you boost your productivity.
Ideally, you should deduct the interest income that your business will earn from the freed-up deposit amount when calculating the annual cost of a coworking desk.
No Extra Expense
A coworking office offers numerous additional services and facilities over and above the coworking desk.
A coworking package invariably includes office furniture, high-speed Internet, refreshments, storage space, vehicle parking facility, printing and scanning equipment, and a meeting room in the monthly fee.
So, you should add these expenses to your monthly office rent before comparing the cost of a coworking desk with your rented office.
Scale Up or Scale Down with Ease
One important distinction between coworking and conventional offices is that the latter does not allow you to scale up or scale down your office infrastructure.
If you have invested in a dozen desks, then you don’t have the option of returning six and seeking a refund when you are working with a small team. Similarly, you cannot just expand your office space and add an additional six desks to tackle an unexpected surge in your workload.
Coworking desks allow you to scale up or scale down your operations without any hassles. More employees joining your team? Simply pay the per-month fee for the number of desks you require and you are set up for the extra workload.
Want to work with a smaller team during the holidays to save on costs? Simply drop coworking desks as required and you are set until you wish to scale up your office size again.
In a rented office, your business is tied down to a specific location and the various physical and contractual restrictions laid out in the lease contract. A coworking service offers flexibility that, if used sensibly, can help you save on office costs without any adverse impact on your productivity or profitability.