When Number of Employees Gets a Little Too Large to Huddle Around One Table But Too Small to Warrant An Entire Office, then Startups Set Up in Co-Working Spaces.
Hi Everyone today we will talk about How Startups New Trend Is Sharing Office Space
Startups, Share Office Space at BHive, which Organizes Game Nights for People at the Co-Working Space Every Week. The Emergence of Coffee Shops such as Starbucks and Costa Café, which Encourage Startups to Work Out of their Premises, is Forcing Co-Working Spaces to Innovate, Provide more than just Sterile Cubicles, and Create a Campus Like Atmosphere for Entrepreneurs and their Staff.
BHive, which Opened Two Years ago, has Expanded to Four Locations across Bengaluru and is Office to 170 Startups. Unlimited Coffee and 24×7 Wi-Fi and Internet Access is Guaranteed, but that isn’t Enough Anymore. “People Want to Work in a Google Like Environment. Founders tell us that Productivity has Increased since Employees Stay Longer. We are Open 24×7, and have No Restrictions On Time,” says Shesh Rao Paplikar, who Started BHive with Ravindra M K.
Bengaluru’s Koramangala the Startup Hub is the First Choice of Location for BHive Shared Office Space Followed by Indiranagar & HSR Layout. BHive is Exploring a Franchise Model as Building Owners have Been Approaching.
Shared Offices Are Where Friends & Enemies Work at the Same Place.
Convenience Is The Key
More than Just the Promise of Caffeine and Game Nights, it is Convenience that is Luring Startups to these Shared Spots. Sendil Srinivasan’s Software Company Capiot is Headquartered in Hyderabad, but his 112 Employees are Spread Across India, and Work from Shared Office Spaces. “We have Staff in Bengaluru, Mumbai, Hyderabad, Pune, Chennai and Delhi. We Can’t Manage So Many Offices. When you Start Up, you Want to Focus Only On Work. We Can’t be Bothered by the Troubles of Paying Electricity Bills and Setting Up Backups and Routers,” he says.
In Chennai, Cafes such as Ashvita Nirvana in Adyar, Amethyst in Royapettah and Café Coffee Days are Drawing Entrepreneurs with Laptops and Big Ideas. When Shanmugavel Sankaran, Co-Founder of Chennai Based Risk Management Platform FixNix, Decided the Time had Come to Find an Office, he Picked Co-Working Space. “We Get Our Privacy Yet there’s the Opportunity to Interact with Others,” he says.
Karya Space Opened its Doors in October 2015. Both in the US and in India, Founder Arjjun Chander Found it Tough to Motivate Himself to Work from Various Clients’ Offices. “Small Companies just Don’t have the Time to Manage an Office Environment, Including Activities to Take the Mind Off Work,” says Chander.
Co-Working Spaces in Chennai Charge Around Rs 6,000 – 8,000 a Seat for a Month. Those on a Day Pass are Charged Rs 350 to Rs 400 a Seat. Most are Flexible Enough to Give Start-Ups Time to Settle Bills if they’re Short of Cash at the End of the Month.
Co-Working Spaces Differ from Boutique Business Centres, which Mainly Provides a Professional Address.
Developing An Ecosystem
It was Ashwin Shankar’s Struggle to Find Space as An Entrepreneur that Drove him to Start @works in Chennai Owning 6 Locations Now. While Most Entrepreneurs Prefer a Place that is Easily Accessible, Shankar says those Who are Hoping to Work with an IT Crowd and Want a Bigger Space Don’t mind Going to the Outskirts of the City.
@works are Not about Brightly Painted Walls and Table Tennis Games, though He Hosts Startup Events Every Weekend in an Effort to Build the Startup Ecosystem in the City. “I’ve Worked in Traditional Business Centres, where Everyone is Boxed into their Own Room. Here, it is a Friendlier Atmosphere. The Owners Don’t Treat it as Real Estate, it’s like a Community of People,” says Srinivasan.
Everything/Idea/Concept has its Own Pros & Cons and this Idea/Concept is No different
Sometimes Too Much Interaction Backfires. Shon Thomas George of Buzzfactr Technologies Lost Staff at a Shared Space. His Company, an Aggregator for Banks and Prepaid Wallets, Started with Seven Employees, Working Out of BHive for a Year. Two of them Have Switched to Different Companies on the Same Floor.
Incidents like these that Make it Imperative for a Company to Move into its Own Space Eventually, says Rohit Chokhani, Oartner at White Unicorn Ventures, Launched a Co-Working Space for its Portfolio Companies this May. Chokhani Cautions Entrepreneurs to Decide where they Want to Work On the Basis of How Much Value Each Place can Add.
“You Can’t have a Common Area for a Growing Company. There are Certain Things that Require Utmost Privacy,” He Says. “Eventually One Needs to See One’s Own Company Nameplate to Feel a Sense of Ownership. A Company Needs to Create its Own Environment and Principles,” He Explains.
Startup Owners are also looking Forward for Shared Office Spaces where Companies of Different Genre Meet Up to Prevent Data Theft & Employee Shifting which can Happen in Co-Working Spaces where Similar Genre Companies are Present.
Shantanu Verma, who Owns Co-Working Space Delhi Co., Learnt this Lesson On the Job. “Earlier, We had Open Working Spaces but Most Start-Ups Wanted Privacy for their Teams, So We had to Re-Design Our Interiors,” says Verma, who Provides Seating Space for 80 People for Rs 300 a Day Per Seat. “We are 100% Occupied through the Year,” Says the Who Plans to Open Branches in Karol Bagh, Noida and North-West Delhi. “Long Term Demand Comes from Startups with Five to Six Member Teams,” he says.
Future Growths In Space
According to Data From Startup Tracker Tracxn, there are 61 Co-Working Spaces in India, of which 16 Were Set Up in 2016.
Qatar fund may back RMZ’s Cowrks Ahead Of NYC-Based WeWork’s India Entry
RMZ Backed Cowrks Challenging WeWork, a Heavily Funded US Startup Focused on Technology- Enabled Shared Office Spaces and which is Finalizing its Entry into the Country.
Sidharth Menda of Bengaluru-Headquartered RMZ Corp is Starting Up a Community Workspace Venture for Millennials, called CoWrks, with Financial Backing from Middle East Sovereign Wealth Manager Qatar Investment Authority (QIA).
The Menda family, Owners of RMZ, One of the Country’s Top Four Commercial Property Developers, has Made Initial Investments to Kick-Start CoWrks, which will have 10 Locations across Bengaluru, Mumbai, Gurgaon and Chennai by March 2017. QIA is Expected to Buy into the Company in the Next Few Quarters as the Young Menda Prepares an Ambitious Road Map to take on New York-Based We-Work, which has Raised $1Billion from Goldman Sachs, JP Morgan Chase and Fidelity, among Others. Israeli Entrepreneur Adan Neumann-led WeWork — Valued at $16 Billion — Manages Over 5 Million sqft with 80,000 People Working Across 23 Cities in the US, Europe and Asia.
QIA has been a Large Investor in RMZ’s Office Space Portfolio, Topping 20 Million sqft and has Supported Growth through Acquisitions.
CoWrks Plans to Manage 2 Million sqft of Shared Office Spaces Across Top 6 Cities within a Year, before Charting an International Foray. “We Plan to have About 200 Locations Globally in the Next Four Years Providing Co-Working Spaces that are Productive, Emotionally Gratifying and Financially Sensible,” CoWrks CEO Menda said.
Co-Working Offices are Tech-Enabled Real Estate Platforms, Offering Freelancers, Consultants, Startups and Even Innovation Teams of Large Corporations.
In Bengaluru, for Instance, the Monthly Rental for Flexible Work Stations will be Rs 8,500 Per Person, while Dedicated Stations will Cost Rs 11,500 and Private Studio Offices come for Rs 22,000 Per Person. The first CoWrks Location being Readied in Bengaluru Location in Bengaluru is Almost 1.60 Lakh sqft.
The Profile of Clients and the Design Ethos of Locations Will Vary, that is Redesign Of Office Spaces On the Basis Of Requirements Of Clients Like, it Will be Financial Services Crowd in Mumbai BKC and Entertainment and Performing Arts Related People in Bandra or Lokhandwala. So the Design Of the Office Spaces will be as per the Clients Need.
CoWrks will be Landlordagnostic and Operate from Premises that are Owned by RMZ and Other Developers. “Our Competition is Going to be with WeWork as We Plan to Scale Up Across Four Continents — North America, Europe, Asia and Australia. Both of Us are Going after the Same Encore, Tech-Enabled Co-Working Offices for the Young,” Menda said. “Co-Working is Unorganized in the Country but Over the Next Two Years, it will Change as Startups and Independent Workforce in Urban Areas Realize the Advantage of Lower Rentals and yet having Access to the Facilities that an Office Park Provides,” CoWrks Owner Said.
CoWrks’ Initial Overseas Forays is Likely to Cover Asian Cities like Singapore, Manila and Jakarta. WeWork Entered Asia through Hong Kong and Seoul.
The Six Year Old WeWork is Finalizing India Entry and has held Joint Venture Talks with Embassy Office Parks, A Cross Town Rival of RMZ. We-Work Co-founder Neumann, who Visited the Country in Recent Months, is Deciding between a Joint Venture and Independent Foray in India with One of the Largest Pools of Young, Urbanized Workers in the World.
Bengaluru’s Co-Working Space Dialogues Café Owes Its Success to Existing Co-Working Spaces such as BHive and 91 Springboard. Eight of the 10 Startups at the Café in Koramangala have Come from those Spaces. At Dialogues, Started by Udai Kiran, Ankit Gupta and Saurabh Priya, Time is Literally Money. With Free Wi-Fi and Food, Dialogues Charges Users by the Minute. An Hour Costs Rs 190 with Rs 3 for Every Additional Minute Spent. Monthly Space is Rs 6,900, and Staff can Choose to Sit Anywhere, from an Upper-Floor Library to an Open Terrace.
Entrepreneurs are Open to the Idea of Working Alongside Potential Competitors.
“We are at a Stage where Working with One Another is Not Going to Saturate the Market. A Competitor Sits at the Next Table. We Work Well Enough to Share Ideas, but Don’t Bare All,” says Srinivasan Owner @works.