What is Coworking Space? History, Growth, Benefits, Types.
Coworking is a shared space where freelancers, individuals, and other professionals work on different projects or ideas independently or with a group. Coworking spaces have quirky designs attracting young freelancers and creative professionals. Areas like these make you relax and chill and help you to make your work fun.
Hybrid Workspaces offer the best amenities, such as Super-fast Internet, Super housekeeping, Coffee, Tea and Munchies, Air-Conditioning, and professional IT support.
They also provide different Coworking spaces such as Office Cabins, Fixed Desks, Meeting Rooms, virtual offices, flexible desks, and cafeterias.
The best thing about coworking spaces is that it is cost-effective. You don’t need to lock in your money for a year on a lease. Another significant advantage of Coworking spaces is that they allow you to a network where you can interact with other business owners and gain new clients. It is perfect, especially for a Startup.
Going the extra mile to make our coworkers happy, MumbaiCoworking provides exclusive access to Moroccan Lounge, where people can relax and chill with their colleagues and friends. Also, this place is available for cozy birthday parties, pre-wedding photoshoots, and much more.
Major Events That Shaped Coworking Industry
Especially with the downfall of the economy in 2008 and the mindset constantly changing in this fast-paced world, it is essential to understand how “Coworking” evolved as a concept and what finally changed the status quo. And to understand this, we need to dive a little deeper into the context of Coworking and how it began.
In 2008, with one of the worst economic meltdowns, many businesses collapsed, people were jobless, and nations, primarily western, were in deep turmoil. But one thing happened: A mind shift.
When the economy goes down in a recession, one of the things that are the most important for any company to survive the slowdown is must ensure that they have enough cash to keep the business operating. And one of the reasons they used to run out of money was that every company had its own traditional office to maintain, making unnecessary costs unbearable. An office might be a good investment, but even the best property is sold for unimaginable low prices when real estate slumps.
This traditional Workspace was challenged by a new concept: Coworking.
Many might think that Coworking results from a mind shift and nothing else. But the reality is a bit different.
History of Coworking Space
In the olden days, Public Libraries and even open spaces are collaborative places for people to get together and share a particular space to either talk or hang out.
But do you know who started the first coworking space? Well, A group of Hackers. Sounds strange, right? But they worked as an NGO, operating with an ethical hacking system, collaborating with several engineers coming together to form a space, sharing knowledge, high tech, and chilling together. And this whole thing was called “Hackerspace.”
But the official coworking space was opened by two Austrian entrepreneurs in Vienna. It was the first place freelancers, PR consultants, and startup owners started working together.
The significant change in Coworking came with the San Francisco coworking space opened by Brad Neuberg in 2005.
So this is how Coworking got started, and today it has reaped phenomenal.
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The Idea behind Coworking
Vienna’s mother of coworking spaces opened as Schraubenfabrik, which was first named a community center for entrepreneurs. People like Freelancers and other professionals came together to share the area and create a healthy community engaging in sharing knowledge and experience.
The core of it is creating a community. Let’s look at civilization or any other Tribe. The main goal is to make a community living of like-minded people having similar interests, plans, or anything else that connects. This is done purely to communicate on a more human level with various people with similar goals. If someone wants to open a coworking space, they must focus on building a community.
The core idea behind coworking spaces has been left in the dust as time has passed. Coworking owners have started focusing more on the business model than on what needs to be done. We need to re-acknowledge the fact that we are humans. We thrive on being together and sharing ideas, beliefs, and traditions: in short, we share cultures. And that is what we need to build up again.
What culture are we trying to build?
What is that we want to give to the people?
What is it that we want people to remember about us?
These are the questions we need to ask if we want to truly understand how this business works and how we can take it forward in the long term.
If you’re looking for a Coworking Space in Andheri West, check out the site and contact our representative.
Key Coworking Growth Statistics
Especially after the 2008 crisis, when the small business collapsed, and even the traditional big companies found it extremely difficult to handle their overheads, Coworking was a space for freelancers, and business individuals began to spring up. And since then, they have been, more or less, profitable and growing at a median pace.
The number of coworking spaces worldwide is projected to reach almost 20,000 in 2020 (Allwork. Space).
Before the pandemic, coworking spaces were the fastest-growing type of office space in commercial real estate. While currently, they comprise less than 5% of the market, they’re expected to make up 30% by 2030.
India’s coworking space market is likely to cross 50 million square feet by 2023, according to a JLL report.
There are reports that flexible space will grow by an average of around 15-20 percent per annum over the next three-to-four years. After that, however, this trajectory will remain the same.
The Key reason for this exponential growth is nothing but the reason for how people’s mindset. And it’s not only India, but around the world, people want to have lower touch-points, want to work or go to a place where they feel they belong and are part of a community.
This psychographics of the younger Workspace, like the Millennials and Genz, is setting the trend forward. No doubt that they want to work, but they want to work from everywhere. And the only way possible to do that is when companies stop acquiring their own offices and provide flexible Workspace to their employees.
As per the reports, Companies now save around 30% of their operational cost with Flexible coworking spaces for their employees.
Coworking has been a boon for Small-Medium scale startups as they need more cash upfront to buy Workspace, but at the same time, they want to have a place where they can collaborate with their team daily. And that’s how the trends have been growing. And it’s likely to pick up much more in the future as the cost of purchasing goes up, and people want more flexibility in their personal and professional lives.
Top 5 Benefits of Coworking Spaces
There are many benefits that we’re going to discuss in short, so you get just an idea quickly. After reading this, you’ll be better at deciding how good Coworking is for you.
When you’re at a place where people are driven by enthusiasm and creativity, that place helps you be self-motivated. And believe me, in work, one of the most important things is to boost your morale which will eventually help you to get your job done way more effectively.
When you’re in a place of like-minded people and those with whom you share similar interests, you feel like you are a part of something bigger than yourself.
Many startups need more time to be ready to come up with so much cash upfront and want something that usually helps them to stay flexible by not taking the lease for a whole year, like traditional businesses used to have. This is the best option for bootstrap startups and also independent freelancers.
There have been many reports that state that employee productivity drops when they work from home. And believe it or not, it is true. I have personally worked as an independent freelancer working from home. But it affects your work and your Productivity. What you could’ve done in an hour takes more than that. Plus, there is no way that you can network. So, in the long run, it is a downfall.
Talk to any finance guy about overheads, and they will say only one thing: Keep them Low. And, of course, they are right. For example, several studies have shown that businesses often spend around 15% to an astronomical 47% of their money on renting their office space. That’s something one can’t afford in today’s economy.
If you want to read more in-depth benefits of coworking spaces, check out our articles wherein we have discussed 11 benefits of coworking spaces that are especially good for startup businesses.
Who Uses Coworking Spaces?
Think of Coworking Space as any other place where people get together and share their knowledge, experience, and beliefs to grow themselves. So professionals from the creative field, technical, financial, or any other background work under the same roof and create a coworking community.
If you’re a freelancer or a small-scale business owner, Coworking would be a perfect place to work as you get to meet many different people who can help you in your career.
If you’re a person who likes to network and meets new people daily, then Coworking is a place you must go to. Irrespective of which field you’re in, Coworking will help you grow professionally in the long run, making a network pool.
If you’re a student who wants a quiet space to study, coworking spaces also provide that. They have set up small private desks for the professionals and students, making the particular place very focused, helping you to embrace more of what you’re doing effectively.
What Types of Coworking Spaces are Available?
Mumbai Coworking has been one the Best Coworking Space based in Andheri West for over a decade now, and like any other coworking space, we provide various types of Coworking Spaces that suits your needs.
There are 4 Types of Space that Mainly Function.
Who doesn’t like to open lounges to chill out and work too? Open workspaces are definite choices for almost everybody. Everyone wants to work where there is fun. Empty spaces can be quiet and energetic at the same time. We at Mumbai Coworking have Moroccan Lounge, an open space where people can work and chill out. Areas like these make coworking spaces lovable and also enjoyable.
These are literary what they sound like. These private desks are designed for high-pressure professionals who want to focus solely on the work and need minimal interruptions. These especially build for prominent team members and companies with many employees to accommodate.
Wouldn’t it sound great if you worked with a group of people from similar industries who share similar interests? I know. There can be nothing better than having something in common. In a world where people want to connect on social media chats and feel awkward meeting the same in person, having a place where people share common interest give them something to talk about. Industry-specific workspace helps to know more about each other, making a micro-community.
What does Startup need the most when they want to grow big? Funds. Venture/Incubators Workspace want to attract startups and small businesses from whom they can fund and profit for them. They are looking for influential future entrepreneurs who can create meaningful and profitable businesses. This will be your best bet if you’re a startup or an entrepreneur.
At Mumbai Coworking, we provide you with a Private, Fixed Desk. Also, you can get your Private cabin and Meeting Room with excellent facilities to host your important Clients.
Coworking vs. Other Remote Workplaces
There are some unofficial coworking spaces that you must have known about. The first one is, of course, Working from our tiny sweet home. The other one is working from cafes and hotels. And other some unpopular place to work remotely are libraries.
Work from Home: It’s easy. Flexible. And it doesn’t cost us anything except our Productivity. However, numerous studies have stated that working from home affects our Productivity in the long term and makes us less focused. Also, there is no human interaction, which makes it extremely difficult to break out of our comfort zones when the time comes. This also results in a need for more confidence.
Now Cafes: We all know that cafes have been an extended part of Open Coworking. Many people got loosely started with Coworking from cafes and coffee shops only. They are a fantastic place to be in, and you might get a date. But as far as work is concerned, cafes might not be the perfect place for you. It has been a place where people come and chill out with their friends and loved ones. So there can be a lot of noise and interruptions in between, making you lose focus on your work. They provide excellent ambiance and a free internet connection, but working on a long-term basis in these places can affect your Productivity.
Top 5 tips when choosing your space
When choosing a coworking space, one must look for many things, but I have listed some essential points one should be aware of when selecting the flexible Workspace. So let’s take a look at them.
There’s nothing logical here to state the obvious. If a coworking space is too far for you to travel, then there’s no point in going to the coworking space in the first place. One of the essential things is saving your time with less to zero commotion and looking for a nearby site. It will conserve a lot of our energy.
It’s a sad reality, but lots of coworking space owners have forgotten why this business got started in the first place. And the simple answer is community. Making people feel part of something is what a community does. And this is especially true with the current generation. They derive more value from something that uplifts them rather than giving them perks to lure them in. They want to be a part of something bigger than themselves, and that’s what a community does. Any business that can crack this will surely mint money for the time to come.
You need to set certain limits on yourself when deciding how much you can pay. Even if the place is very near to where you live, and has every facility, even cannot rule out the finance part of it. Given the world economy going haywire almost every day, people have no job security; we need to be rational enough to understand that the coworking space we are thinking about falls within our budget.
The best way to decide whether a particular place has the amenities is by asking whether it helps provide comfort, convenience, or enjoyment. It is more about the feeling of the space and the vibes you get from being there. It’s about the rooms that have been designed and whether they make sense to you personally, professionally, or spiritually.
Short-Term or Long-Term
One of the most fundamental things to set a business for success is Planning. The adage goes, “Failing to plan is planning to fail.” And a successful plan has one of the essential elements. Looking at the milestones from a Short and Long term perspective. Ask yourself:
- How long do you plan to continue at your chosen coworking space?
- Are you planning on expanding locally or globally?
- Do your current coworking space offer access to a variety of locations?
Apart from this, we have written an in-depth article on How to choose your coworking space smartly.
If you’re looking for a quirky coworking space, then make sure you book a free tour by visiting the coolest coworking space in Andheri west.
The Average Cost of Coworking Spaces
The Future of Coworking
The Future of Coworking depends upon the economy and people’s mindset. For example, people went out of cash when the 2008 financial crisis happened. Small Businesses and Entrepreneurs all went to our money. And big corporate houses had substantial operational costs and other recurring obligations. Also, this incident changed people’s minds, and they started looking at money differently. And the effect remains.
With the Millennial and Genz taking over the workforce, they want to challenge every custom of the traditional Workspace. They want quirky offices even if their professional fields are mundane. They want to connect with everything more personally rather than giving it up. And especially for Coworking owners, it’s imperative to understand the psyche of these people.
We need to be observant enough to understand what our feelings are. What is shaping our personal and professional choices, and how is everyone generally moving forward and making decisions? We can make better decisions when we know ourselves and the people around us. Ultimately, everything on this earth, every single problem, whether at home, in politics, or at the workplace, is all about people. Just pay attention to the detail, and you will know.
Should You Try Coworking?
Suppose you’re a freelancer, a student, a startup, or an incubator, then Yes. Coworking can do wonders for you. You get to meet many people from different walks of life, with immense experience. This can speed-track your career and also gives you the opportunity for personal growth.