Pros and Cons of Coworking and Shared Office Spaces

cowork or shared office

We had this dilemma when we decided to start our own venture. It became a point of absolute interest especially after we decided to form a Private Limited Company. Here are some Pros and Cons of Shared Office spaces / Business centers:

Pros:

  • Plug n play as everything is ready, be it furniture, UPS for that dreaded power failure, Cooling etc, and you just need to get your laptop. Some even provide desktops
  • It might be inexpensive to go for a shared office compared to renting
  • Proximity to other offices or home (depends on location)
  • Low capital / initial costs compared to Renting/leasing. General trend in renting is that one has to pay  a large amount of  refundable advance money (in India).
  • Availability of Landline Telephone and Reception facility to receive calls and also housekeeping staff on call
  • Ready Address space for correspondence
  • Availability of Conference rooms
  • Office supplies like Printing, Scanning, Fax, etc are readily available
  • Ready internet (see below)
  • Viable if you are not needing a physical address space for company registration
  • Good for a small team
  • Access to a like minded people from other startups (?)
  • No need to pay multitudes of bills as in the case of rented office space although those costs are already accounted for.

Cons:

  • Most if not all Shared Office spaces do not allow using their addresses for the purpose of registering a company (in India)
  • Expansion may be difficult
  • Lack of privacy (?)
  • Difficulty in opening bank accounts (company accounts) as banks generally are wary of shared addresses
  • Expensive as most of the above services come at a premium
  • Bandwidth is mostly capped and hence if your work involves heavy data transfer, check if they allow to get your own connectivity. Most coworking spaces generally do not allow another ISP to lay cables, you can use mi-fi or 3g routers / dongles though
  • Many business centers/coworking spaces have fixed operating times. You will need to shell out extra if you want to stay longer hours and the same goes for weekends as well

 

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