Silicon Valley is one of the fastest growing areas in our country. It seems like new startups are popping up everyday, and so many of them are in the bay area. If you’ve ever driven past the Facebook or Google campus, you might be confused about how so many successful companies are making it in the same area. How are they all fitting in such a compacted little space? The truth is that a majority of startups, especially in their early stages, don’t have designated office spaces. As most people know, Apple and HP started in a garage. As Silicon Valley becomes more well known, companies are starting to search for new office space ideas. Coworking spaces are becoming more popular, and seem to be the perfect solution for small companies with big ambitions. Hootsuite, Instagram , Uber, Duolingo, Weebly, Spotify, and Indiegogo are all huge in the tech industry, and every one of them started out in a coworking space. Here are a few reasons why startups and other companies in Silicon Valley gravitate towards coworking spaces.
Business owners in Silicon Valley value innovation above all. Innovative ideas help save money, time and effort where it might have otherwise been wasted. Instead of renting out an entire office suite simply because it’s the way things have always been done, startup owners realize that a coworking space is more cost efficient and effective way of working. There is a middle ground between a one person operation that can work effectively from home on a laptop in someone’s spare time, and a growing business that needs more space but isn’t big enough to warrant an entire office. This middle ground needed a place to work, and coworking spaces are the solution to that problem.
One of the downsides to the rise of Silicon Valley’s tech industry is the rising cost of running a business here. It costs more than ever to rent a home, and even more to rent an office space in the area. Renting a coworking space is more cost effective, which is always a top priority for Silicon Valley businesses. Another great thing about the financial aspect of coworking spaces is that you can take time off. If you’re traveling for a convention, or if it’s just a slow month you don’t have to pay for your space if you’re not using it. Coworking eliminates the problem of wasted capital on unused office space.
Startups attract creative minded people and many of the aspects of coworking appeal to that creative side. Within a coworking environment, people are allowed the opportunity to network, collaborate and get to know people in many different industries and with various points of reference. This environment encourages unique ideas and joint efforts that may not have been possible if the collaborators had been working in traditional isolated office environment.
To learn more about coworking space and get some tips on choosing the right one for your business’ needs, check out our free eBook “What To Look For In A Coworking Space”