Small and medium-sized businesses (SMBs) are the backbone of the economy, making up a whopping 99.9% of all US businesses. Their growth plays a big part in our country’s prosperity, but finding scalable office solutions remains a significant challenge for these businesses.
According to the SBA (Small Business Administration), small businesses:
- Employ 61.7 million Americans (46.4% of private sector employees)
- Account for 62.7% of net new jobs since 1995
- Generate 32.6% of export value
But despite their importance to the economy, SMBs face a number of barriers to scaling and growing their operations.
Here we’ll explore what those challenges are and how coworking spaces have emerged as an excellent option for SMBs looking for scalable office solutions to grow their business.
SMB Challenges and Barriers to Growth
SMB owners looking to grow face unique challenges. Scaling is always difficult, but can be especially so for a relatively small team working in a small space.
Here are some key challenges faced by growing SMBs:
- Space limitations: As businesses scale, they often outgrow their existing office. Finding a larger and more suitable space can be challenging and expensive due to a number of factors. And, strict long-term contracts may keep you locked into a space that’s too small and no longer suits your needs.
- Operational agility: Long-term leases and extensive build-outs can hinder a business’s ability to adapt quickly to changing circumstances and expansion opportunities.
- Streamlining processes: As businesses expand, their internal processes can become more complex. This requires a concerted effort to maintain efficiency by hiring the right people, investing in training, and heavily documenting processes.
- Recruitment and talent acquisition: Expanding a business means bringing new people on board. Finding the right team members isn’t always easy.
- Risk management: Scaling a business has inherent risks, so it’s important to be calculated and strategic in the process.
Each SMB will have its unique challenges, too, but this provides a snapshot of some of the most pervasive barriers to scaling up a business.
11 Ways Coworking Offers Scalable Office Solutions to SMBs
Many massive companies get their start in coworking spaces (e.g. Uber, Instagram, and Spotify). Why? Because it’s a supportive business environment. They’re scalable office solutions that are designed to help you do your best work and provide the tools, space, and resources to help you scale.
Here are 11 key reasons why.
1. Scalable Workspace
One of the most significant advantages of coworking spaces is that they’re scalable office solutions marked by flexibility. Traditional office leases often require long-term commitments, which can be a hindrance when you’re in the growth phase.
Coworking spaces often have month-to-month or short-term agreements, making it very easy to move to a large space in a matter of weeks or months. This adaptability ensures you’re never locked into a space that no longer suits your needs.
2. Cost-Effective Remote Work Solutions
If you’re growing a remote or hybrid team, coworking spaces offer a cost-effective solution to those team members. You can provide coworking memberships to help remote team members build an optimal work life and schedule.
Further, coworking spaces provide on-demand meeting rooms and flex space options, so you can gather with your remote team to brainstorm, collaborate, and get ahead on projects.
3. Build and Maintain Company Culture
Scaling a company can change and shift your company culture. What was once a small, close-knit team is now bigger and more disparate. However, it’s important to build and maintain a company culture that promotes your values and goals.
Coworking spaces are an important part of maintaining company culture because they offer and promote in-person connection opportunities.
4. Operational Agility with Short-Term Commitments
Coworking spaces are scalable office solutions designed for operational agility because they’re flexible and adaptable. Short-term commitments mean you can quickly adapt to changing business needs. This is a game-changer for businesses looking to seize new opportunities without being tied down by long-term leases.
Your coworking operator is your teammate. They want to work with you to find solutions that suit your business goals and needs and, because of the nature of coworking, they can leverage flexible solutions to get you there.
5. Reduced Up-Front Costs
Traditional office spaces often come with significant up-front costs, including tenant improvements and build-outs. Coworking solutions are turnkey, meaning they come fully furnished and equipped.
This eliminates the need for costly renovations and reduces initial capital expenditures, so you can manage your small business budget effectively and devote your resources elsewhere.
6. Reduced Time Investment
Turnkey office solutions also mean that executives and leaders spend less time looking for, upgrading, and moving into a new workspace. Coworking options mean your office space is ready for you in a matter of days or weeks instead of months.
This time savings is important for SMBs who have many other important things to spend their time focusing on.
7. Increase Employer Value Proposition
Coworking can be an important part of your EVP (employee value proposition) as you scale and look to add members to your team. A comfortable, enjoyable, productive work environment is a major perk for employees, especially those who work remotely and are seeking more in-person connections.
8. All-Inclusive Pricing
Your monthly coworking dues are all-inclusive, bundling maintenance, amenities, utilities, and technology into one convenient fee. This simple process makes budgeting and accounting processes easier while also ensuring you won’t encounter any hidden costs or unexpected expenses.
9. Economies of Scale
Sharing workspace with other businesses and professionals in a coworking environment allows you to benefit from economies of scale. This, typically, makes the cost of coworking less than traditional office space.
Costs such as utilities, cleaning services, and maintenance, are shared among multiple tenants which results in cost savings compared to stand-alone office spaces.
11. In-House Networking Opportunities
One key difference between the coworking model and a traditional office model is that there are built-in community and collaboration opportunities. Between informal connections in shared areas or formal networking events, there are plenty of ways to meet new people.
This is important for SMBs looking to scale because you might meet future clients or collaborators who will help you get to the next level.
12. Scalable Tech Infrastructure
Coworking spaces are outfitted with high-quality technology and IT infrastructures. So instead of worrying about how you’ll scale up your tech, your coworking provider will take care of it. This saves both time and money in trying to manage it yourself.
Scaling up and expanding your SMB is an important step in the life cycle of a business. But actually doing so is another thing, often filled with many challenges and roadblocks for SMB owners.
That’s why you need a workspace that works for you and not against you. By design, coworking spaces are scalable office solutions that address any of the challenges SMB owners face when wanting to scale up your business.
If you’re in search of a positive professional workspace that helps you unlock your full potential, you’ll find it at The Post. Book a tour of The Post today.