Why Co-Working Makes Sense for Small Businesses

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Comment by Jochen Daum on June 15, 2010 at 16:10

Hi,

I've been running a small office with 2 desks for rent now for years and I guess you could call it co working.

There is really no need to commit to a lease nowadays in my opinion, so co-working works as multiple levels. My landlord creates a co-working space by creating a co-working environment with different rooms for rent - all no commitment and I create the same environment in my part of it.

I've had great experiences with it - being the sole supplier of my previous landlord for website backend programming and now having tenants that can provide support, sales leads or simply lunch conversation.

HTH, Jochen

Comment by Paul Dutch on May 23, 2010 at 8:59

Ah..yes.. I understand what you meant now..
There is indeed a big risk that lies with one company that takes on the lease.. And therein lies the problem..
But I am sure there is a legal structure to be created that divides the risk over multiple parties? A trust of some kind? A not-for profit organisation perhaps?

The Idea more specific to Technology and Design:
http://www.fruitbowl.co.nz/technology/technologydesign-centre/

Paul

Comment by Tim Stokes on May 17, 2010 at 13:48

i think we got cross-wires Paul. I'm talking about running a co-working business, basically leasing the space and then filling it up with co-workers. I'm all for the BNI like advantages that go with sharing a space, but someone has to be responsible for the head lease payment and making sure all the bills get paid, and, hopefully, make something for all their time/effort

Comment by Paul Dutch on May 17, 2010 at 12:28

It may sound crude, but if the individual business cannot sustain itself because of cost of "lost" rent despite the many advantages that come out of co-working, the business was doomed to fail to start with..
But then again.. I am not an expert..

Comment by Tim Stokes on May 17, 2010 at 12:18

Hey Paul. Thanks for the link and info. I've been interested in co-working for a while now and spent sometime looking at the various business models. I't's a great idea but many of them seem to stuggle to make a profit due to the cost of, or opportunity cost of lost rent to a single business. Be interested to hear your thoughts more on this.