There is no reliable prediction on how long and severe the COVID-19 restrictions will persist to impact the businesses. Co-working spaces are facing a similar issue as the other companies in the world. All the shared spaces are taking initial measures to aid the security in their places. Also, shared spaces need to rely on a quick solution to rectify the lack of planning security in this particular scenario. Here we are going to overview the initial measures taken by co-working spaces, and analyze the situation.
Securing the Sources of Income
In the initial phase of the crisis, one of the few logical steps to take for the businesses, hence the co-working space is to secure their source of income. Their goals are to keep as many members as possible. Along with it, they also try to resist any discounts or additional offers to the joining or pre-existing members.
They humbly try to connect with their members on the fact that they themselves have to pay some fixed money on a regular basis. So members have to be considerate about that as well.
Some co-working office spaces are helping their members by providing information about the support services available for businesses and freelancers to get benefited from. Most of such external support services are from the government to these businesses.
Another approach to sustain the members but again also thinking about them could be limiting the services. And this done by many co-working spaces where they provide limited services like smaller offices reduced staff etc. This helps to reduce the expenses of their members, hence further retaining them in the crisis.
Some co-working office spaces have paused the contracts in the lockdown to avoid the direct cancellations from members. Some are offering free days or creating vouchers for the remaining term as per their contract. So all of them are trying to secure their sources of income in their own way.
Reducing the Expenses
After securing the sources of income, the next best thing supposed to do is reduce expenses. And that’s what the co-working spaces went for! They are also in talks with landlords to reduce the rent were, on the other hand, even members want charge back for their rent they have already paid. The ideal scenario here prioritized by the businesses is again to maintain a good relationship with their landlords, and the same goes for landlords for these office spaces as well. So both parties along with members are trying to come up with solutions that benefit all. After all, everyone here is in the same boat.
Another largest expenditure here is the salaries of their employees. This is again quite a complex situation to deal with the emotional level, especially for small and new co-working spaces. Even if they don’t want to, they have to address the elephant in the room. Employees need financial support at these times, and so the office spaces are supposed to reduce their expenses by reducing salary, cutting their salary, or even letting them go. Large office spaces have already laid off some of their employees. Some co-working spaces also stopped hiring new members as lockdown measures or even now in post-lockdown scenarios.