Operational efficiencies and keeping profit margins high is always top of mind for business owners. For start up companies, keeping profit margins higher is of greater importance. There are some interesting options available for entrepreneurs and start up businesses to consider for keeping overhead costs low. Office space is a common overhead expense, but there are great ways to keep this cost low.
Interestingly enough, there are alternatives to reduce your overhead costs down with office rent expense. Shared office spaces or co-working spaces are the new alternatives that many businesses are considering to keep costs low. In fact, not many start up business owners are aware of such alternatives. Shared office space works best for entrepreneurs and start up businesses because it is a fraction of a cost of leasing an office space entirely for your business. It also allows for a business owners who may be starting off in their home to have a space to focus and grow the business. Furthermore, it allows for the use of a professional address for your business rather than using your home address.
We spoke with David Hamilton, an owner of Lab T.O. which is a co-working office space facility in the downtown area. We asked him about his thoughts and opinion on co-working spaces for entrepreneurs:
“Honestly, I really think co-working is ideal for entrepreneurs at any stage of their business. In the early stages, it gives them a professional space without the commitment and cost of finding and renting a private office. As the business progresses, entrepreneurs can easily expand by adding employees and look to other people in the space as a support network that can provide knowledge and experience.
A lot of the entrepreneurs at our space find having a
dedicated work space away from home helps them overcome mental barriers to
achieve focus and take their business more seriously than if they were
working from their apartment. And because entrepreneurs are under a lot of
pressure to constantly iterate and improve, having a co-working space can help
entrepreneurs leave work at work, and not be working when they should be
relaxing at home or being out with friends which can provide needed perspective
and help them avoid burnout.“
These are some valid points from David. With a co-working
space, start-up businesses can keep their costs low and also have a place
outside from their home to have a place to focus. It can be tough early in the business to manage expenses; therefore, co-working or shared spaces can help start entrepreneurs launch their business and grow.
For more information about Lab T.O. please visit www.labto.com