Summary: Many businesses have had to shut down due to the COVID-19 pandemic. Sadly, it seems like things aren’t going to get better any time soon, so more and more companies are expected to cease operations. One business that wasn’t doomed to fail the minute lockdowns ensued were coworking spaces. Surprisingly, we are staying afloat during the new normal. The reasons for our staying power are culture, cost-efficiency, and community support.
Small and midsize businesses are taking a massive blow due to the COVID-19 crisis. Many countries have put so many new rules and restrictions into effect to safeguard the public. Unfortunately, it’s done at the expense of the economy.
Most companies have allowed their staff to work remotely while mass gatherings remain prohibited and to protect immunocompromised persons. For the coworking space industry, this is an obvious red flag. If people are not allowed to congregate, no one will utilize their services. People expect a physical location to go to when they do business.
However, there are three fascinating reasons a coworking space business can withstand the economic crisis brought by the coronavirus.
1. It’s a Perfect Hotspot for Brainstorming During the New Normal.
This pandemic is a trying period for everyone. Everyone has been slowly adapting to the current situation, and as a result, many behavioral changes have happened as well, as evidenced by the surge in the total number and frequency of online shopping. Some people panic buy when they’re online, while others lean toward it to consume their free time. Either way, there is no denying more people are shopping online now than before the pandemic.
This, along with other changes, is likely to stay as people slowly inch their way to the new normal. Therefore, businesses need to do something about this new way of life. People tasked to develop new ideas for their companies to continue providing services or products will need space to gather and brainstorm. Enter coworking spaces. One of the benefits of coworking spaces is that they have an inspiring environment, high on creative energy.
Moreover, large companies are looking to come up with a flexible working environment to ensure that their headquarters are not cramped to prevent the spread of the virus.
2. It’s Very Cost-Efficient.
Why use a coworking space? They’re mostly for startup businesses, remote workers, freelancers, and entrepreneurs who can’t afford to put up an office just yet or don’t feel the need to. These days, small and medium enterprises are barely reaching their break-even point. It’s not going to be a total surprise if these businesses hop on the bandwagon. Most of these companies do not have the capacity to operate from home or allow for remote operations. One of the benefits of coworking spaces is that they are cheaper than renting your own office space. SME businesses can adapt to the new norm by cutting down on their expenses. It’s a no-brainer that an office lease is taking up a considerable chunk of the budget, especially with new regulations for social distancing and regular deep-cleans.
Co-sharing spaces can allow struggling businesses to carry on with their operations for a fraction of a cost. They can channel their funds to something more gainful for the company, instead of office rent and maintenance.
3. It Fosters a Healthy Environment for Struggling Businesses.
Have you ever been to a coworking space? The energy is impressive. So many people who are starting from scratch have the freedom to reach for their dreams and grow their business with a stable base of operations.
With the end of the pandemic still nowhere in sight, more companies struggle to sustain their businesses. If they fail, unemployment will continue to rise. Since coworking spaces exist to help businesses in times of crisis. It indirectly creates more job opportunities.
Moreover, since SME businesses are taking most of the financial hit, they need to expand their social network and build connections to establish and stabilize themselves. Both are benefits of coworking spaces. They foster a culture of growth, where everyone is ready to lend a hand in business perspectives. Everyone can relate to what the other is going through. The community formed in coworking spaces may just be the thing to boost businesses and help them land on their feet once more.
Lockdown restrictions are gradually decreasing. As businesses fight to regain their losses during the quarantine, they will need to reevaluate their overhead costs. A coworking space is a perfect answer for businesses that need to give up their current headquarters due to financial constraints. On the flip side, large companies will need the coworking model to guarantee their employees’ safe return to the office. There are also numerous advantages to working in a co-sharing office, such as access to a unique working culture and community. Either way, there is absolutely no reason coworking spaces won’t thrive post-pandemic.
If you are looking for a coworking space in Denver, CO, feel free to contact us anytime! Call 303-260-6400 or go to www.yourofficedenver.com/coworking/