As a startup evolves, its office needs change—quickly. See the pros and cons of coworking at each growth stage. View more on JLL TechSpec: http://bit.ly/2cVbD6f
Shapoorji Spectra Sensorium Hinjewadi Pune | E-Brochure
The pros and cons of coworking for startups
1. Coworking’s Growth Stages
THE FOUNDERS THE RAMP UPTHE STARTUP THE EXPANSION
“Can I even afford this? “Looking for value
anywhere we can find it!
Companies in the
Founders group are
trying to turn an idea
into a business.
They need to establish
a problem/solution
fit, or else they won’t
reach the next stage.
Concerns include
staying afloat,
conserving funds and
finding mentorship.
Companies in the
Startup stage are
most concerned
with getting their
product or service
to market.
They’re trying to
generate revenue,
raise money, gain
runway and prove
the business
concept so it can
grow legs.
Size: 1-5 employees
Annual office spend:
$5,000–$50,000
($400–$800 per desk per
month)
Funding: Angel
investors, founders,
crowdfunding, seed fund
Workplace options:
Kitchen table, coffee
shop, coworking
Size: 5-20 employees
Annual office spend:
$20,000–$150,000
($350–$650 per desk per
month)
Funding: Angel
investors,
VC-backed A + B rounds
Workplace options:
Camp out in another
company’s office, work
remotely, sublease,
coworking
“Hey, we’re really on
to something here.
Companies in the
Ramp Up stage
are trying to scale.
Quickly.
They’re hiring,
improving quality and
implementing new
processes.
Activity in this stage
determines whether
they have the
money/people/time/
resources to turn
this into a real live
business.
Size: 20-50 employees
Annual office spend:
$120,000–$300,000
($500 per desk per
month)
Funding: VC-backed B-E
rounds, corporations
Workplace options:
Private block of
coworking space,
sublease, short-term
lease
“Up, up and away!
At 50+ employees,
many startups have
raised $15M-$20M
or more.
They’re focused on
market expansion,
company culture
and recruiting,
protecting IP, and
generating a profit.
At this point, many
companies will take
on their first lease.
Size: 50+ employees
Annual office spend:
$300,000+
Funding: VCs,
corporations, buyout
firms, investment banks
Workplace options: It’s
time for a permanent
home
2. • Productivity: A designated
workplace reduces distractions and
establishes routine—something
that’s hard to do in a bustling coffee
shop or at home where you hang
out.
• Gravitas: A downtown work address
that isn’t your home (or a public
place) can make you seem bigger
than you are.
• Community: Both within the local
workspace and among fellow global
coworkers. WeWork fills 55,000+
seats worldwide.
• Amenities: Resources, classes,
events, reception, mailroom, snacks.
Not to mention the exposure to
sales leads
and talent.
• Consistent spend: Most
subscriptions are all-inclusive. Avoid
cost variance on daily coffee runs,
printing and more.
THE FOUNDERS
Congratulations!
You’re ready for your own space.
• Cost: Amenities aren’t free.
Memberships vary by city and
company, but they cost more than
working from home.
• Distraction: While some enjoy
the interactivity of a coworking
community, others don’t. Some
may prefer the solitude of their
own home.
• Hiring: It can be difficult to hire
while in a temporary office.
Prospective employees know the
commute/environment could
change considerably in the future.
• Flexibility: Most spaces charge
month-to-month per office or per
head. Some even offer desks by
the hour.
• Savings: Avoid office overhead
like security deposits, furnishings,
buildout, reception and
connectivity. Added desks are
usually offered at a discount.
• Recruitment: Coworking spaces
are designed with the startup
audience (and their talent) in
mind. Think modern furnishings,
collaborative space and perks
galore.
• Amenities: Resources, classes,
events, reception, mailroom,
snacks and more.
• Connections: Get exposure for
your business and collaborate with
people from other companies. Not
to mention access to sales leads
and talent.
• Privacy: Working within the same
walls as others, especially potential
competitors, can be a risk.
• Operations: As you begin to hire
more people, it can be difficult to
configure an optimal workplace to
accommodate everyone.
• Motivation: Be clear about
your objectives and about what
creates the most value for your
organization. Too much distraction
can negate other benefits that
come with shared space.
THE STARTUP
THE RAMP UP
THE EXPANSION
• Security: Working within the same
walls as others, especially potential
competitors, can be a risk.
• Operations: As you begin to hire
more people, it can be difficult to
configure an optimal workplace to
accommodate everyone.
• Culture: As a company grows and
begins to create its own identity,
it can be difficult to cultivate a
distinct culture within a shared
space.
• Cost: When you’re ready to
relocate, the cost of coworking
can be a hindrance when you’re
looking to invest somewhere else.
• Uncertainty: Once your team
is accustomed to a certain
environment (and community and
amenities), uprooting everyone
can be difficult.
• Flexibility: Most spaces charge
month-to-month per office or per
head. Some even offer by the
hour. A great option for testing a
new city without commitment.
• Savings: Avoid office overhead
like security deposits, furnishings,
buildout, reception and
connectivity. Plus at this stage,
added desks are usually offered at
a discount.
• Collaboration: Find space to
connect within your team and
outside it. Private rooms, bench
seating, couches and other spaces
are all in close proximity.
• Amenities: Resources, classes,
events, reception, mailroom,
snacks. Not to mention the
exposure to sales leads
and talent.
• Cool factor: They’re notoriously
well-designed and curated spaces.
Pros and Cons of Coworking
at each growth stage of a startup
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