The concept of coworking space is rapidly evolving and people are excited to know the term. Entrepreneurs and freelancers these days are more interested and benefit from coworking spaces. Through its rapid disruption, it has made a spectacular mark in the market. Are you curious about how coworking space work and how it makes money? Keep reading this article to know more.
What is Coworking?
Putting it simply, coworking is a place provision where individuals work together, inducing an environment. These individuals either work on different projects or the same projects. Coworking is assembling in a neutral place – say an office – to carry out projects and tasks. Coworking space resembles a company office in almost all aspects except one; people in coworking space do not work for the same company. The coworking space provides all the basics like the Internet, print facilities, and conference rooms. Individuals use common infrastructure in a coworking space, thus saving costs. Freelancers, independent scientists, and people who travel frequently are more inclined towards this term. Apart from providing a physical space, it tends to institute an environment that is highly flexible and distraction-free.
The art of making money:
When it comes to the question of how coworking space makes money, the scenario changes a bit. Unlike the other offices, the plan of action of coworking space is somewhat unique. A coworking space is a startup in itself that has distraught the current market situation. Not only through rents has it brought cash, but also through other income sources like memberships and participation. Most of its income is generated through rents. Just like other offices, coworking space is a rent-out office. Other than the devoted workstations, numerous coworking spaces offer committed lodges for rent as well. A significant number of these additionally offer affordable rent. However, they take responsibility and provide numerous facilities to the clients.
The modes of earning money for coworking spaces are diverse. But as discussed, the primary source of income is rent. The business model and is very flexible and is expanding all over the UAE. Numerous freelancers and independent scientists are inclined towards coworking space in Dubai. Numerous coworking spaces with halls and meeting rooms rent out these spaces for occasions like gatherings, classes, and workshops. With a number of stations in different areas, the coworking space business model earns a handsome amount.
Keeping in front of the miscellany of business activities, various B2B companies use these spaces for marketing their product or service. Some companies conduct training workshops and several other activities in these spaces, thus generating revenue for coworking space.
Coworking space businesses are assisting investors in meeting their desired creditors. Entrepreneurial activities like start-ups are taking place in co-working spaces and thus charging a commission fee as part of the activity.
What are the advantages of coworking space?
Coworking spaces give a modest option in contrast to growing endeavors. You could book a space for a group of even two individuals or a whole floor for a medium scale enterprise. The company will charge a nominal fee with extraordinary facilities. Talking about the positive points of coworking space, there are many. Here is a run-down of why people are inclined towards this term
In a working environment, work can be done with high efficiency. Individuals get motivated, thus bringing synergy in their work pace. In a room full of driven people, there will be energy of productivity.
2. Communal Sense:
There’s a feeling of connectivity and community. In spots with regular faces, it’s beyond belief that how far the group of these attached people will go to help each other succeed.
3. Avoiding the rut:
Many of the freelancers and independent professionals work from home but it’s never easy. There are high chances of falling into a furrow at home. Coworking space provides an environment where individuals can work with their maximum capacity, without being interrupted.
4. Supple terms:
Despite signing a long-term contract, co-work spaces provide flexible terms. Working with coworking spaces provide individuals with much more flexible deals and offers.
5. Basic facilities:
Co-work spaces provide individuals with basic facilities like internet, printing devices, conference rooms and tea and coffee in break times. With all these feasibilities, co-workspaces are getting the attention of the folks around the world.
Future of the co-work space:
With the passage of time, the young generation understands that they don’t really need to follow a customary way in their careers. It’s quite obvious that we will see an expansion in the number of freelancers who will take the jump. This will be driven by innovation, mindfulness, and opportunity. Coworking space will be the new standard for individuals who enter the digital world today. The term is going places and the world is accepting it. In an industrial hub like Dubai, this terminology is getting popular since a significant number of coworking spaces in Dubai is opening. A large organization will continue to thrive, but a cowork space is going to get dominant.