How to reduce operating costs thanks to coworking

Operating costs are a major concern for all those who are at the forefront of a business. Because, the more they rise, the more profitability will decrease. In addition, if the time comes when they are too high, it would be necessary to consider raising the price of products or services, and this is not always viable.

What are operating costs

Operating expenses are those that occur due to the natural development of business activity. Freelancers, SMEs, and large multinationals must face them.

We can divide them into fixed and variable operating expenses. Fixed ones are those that do not vary over time, such as the rent amount. On the contrary, variable ones are not always the same. A clear example of a variable cost is the electricity bill, which varies month to month.

On the other hand, there are non-operating expenses, which are not included in the company's annual budget, because they are not part of the productive activity as such. Usually, it is a fortuitous event that triggers the need to make payment for these. For example, a sanction imposed by the Labour Inspectorate for not complying with the regulations.

Non-operating expenses are also important because, as there is no specific budget item to face them, they can cause a liquidity problem for the company or professional.

Operating and non-operating costs will always be there. The key to improving profitability is to try to reduce them as much as possible.

The coworking and operating cost savings

For an entrepreneur, working through a coworking space is one of the most efficient ways to reduce operating expenses. Because these spaces allow you to save on different items.

Rent savings

Logically, the monthly payment for a workspace in a coworking space is always lower than renting a premises to carry out the activity. In addition, the professional has the option of getting more space within the coworking space if they need to expand their business and, for example, hire a worker.

Savings on equipment and supplies

The fee paid for the rental of the workspace includes everything. From ergonomic furniture suitable for working comfortably for hours, to Wi-Fi connection, lighting, security measures such as electronic locks, maintenance and cleaning expenses, etc.

It is the coworking space that absorbs the depreciation expenses of furniture and technological equipment, which saves the professional both money and worries.

Simplifies management

No longer is it just about the economic savings achieved, it is also about saving time and effort. By centralizing all office services into a single invoice, business expense management becomes much simpler.

Working in coworkings is becoming a trend among entrepreneurs who want to save operating costs, as well as among remote employees who prefer to be in a space with other professionals. It's not that it's the way of working of the future, it's that it's the way of working of the present, and it will continue to evolve thanks to technology.

‍