Coworking has become a popular trend across the nation, but especially in the Denver Metro area with facilities popping up all over the place. Each space has its own flavor, but all likely share similar costs of being run. For those interested, the following list explains the largest expenses coworking facilities face.
- Rent of Space: In Denver, this is an especially high cost and difficult for owners to consider. The arguable best places for coworking spaces are located centrally, near public transit and walkable with great parking…none of which are cheap. By and large, this is the largest challenge for small business owners to overcome.
- Operating Costs: This also fluctuates considerably, but air conditioning, heating, cable, internet and phone service all add up. As a coworking tenant, be sure to check out what it included in your space, or what might be charged for as an extra expense.
- Staff Wages: Most coworking spaces have at least one or two employees to help assist members (we certainly do at DenverCOwork!). Having quality, helpful, smiling faces is not inexpensive, however, and ensuring a reliable staff is nothing that should be skimped on.
- Maintenance: With people come problems, and coworking tenants, especially if numerous, can be hard on a facility. Even basic, regular maintenance of bathrooms, air filters, and plumbing will be required. If a coworking space owner is a good planner, they’ll be able to plan for unexpected repairs as well.
- Wages for Owners: Fellow small business owners will understand how difficult it can be to allocate finances to oneself, but a good business owner will have chosen a set amount they feel is fair and necessary for their time to ensure their business’s success.
- Marketing: Getting the word out there can be half the battle for new businesses. The Internet offers a multitude of possibilities, but even advertising there is not always free.
- Equipment: Much of the equipment required in coworking spaces are once and done type purchases, but they have costs nonetheless. Computers, office furniture, printers, etc. all require initial costs up front that require consideration.
- Food and Drinks: This is arguably negotiable and may not be necessary, but most coworking spaces offer at least coffee, if not beer and snacks. At DenverCOwork, we know that happier members are more likely to stay with us, and what better way to put a smile on one’s face than a cup of joe first thing in the morning!
- Miscellaneous: As always, preparing for the unexpected is always wise. Keeping funds in reserve just in case, or for the ability to be flexible with the business’s needs.
Coworking businesses and expenses are unique, but taking the time to break out one’s most prominent expenses regardless of business type is always a good idea. Furthermore, as a Coworking tenant in a city like Denver, knowing the typical cost structure can be useful in determining the best facility available to meet your needs.