Solving Excessive Spending With Coworking
Starting and managing a business is not for the faint-hearted. Sound familiar? That’s because this is probably the tenth article you read that in. But it is well documented and understood that owning, starting, and running your own business will be one of the hardest things you will embark on in your career.
During the process of trying to become the next success story on entrepreneur.com, meanwhile eating $3 meals throughout the day, you will make plenty of mistakes (if you’re eating fancy meals while starting your business, then you definitely need to keep reading this).
Your goal should be to learn and pivot from mistakes in a manner that keeps your business aligned with your mission. I started my first business, WorkPub Coworking, 3 years ago and in the process I made a number of mistakes that some business owners would be embarrassed to admit.
Some of the biggest mistakes I see small businesses make after launching, are spending money on things that are not budgeted or overspending before analyzing costs.
When beginning, after you’ve gone through the difficult process of raising funds, your bank account is going to “look” its healthiest for months to come. That account balance will look so good that it’ll be easy to spend money on really nice things that catch your eye and you really won’t think much of it at the time.
Unfortunately, if don’t you keep track of unplanned purchases, they can really add up and become a big budgeting problem. I personally fought this as much as I could, but I eventually fell in the trap. I bought a very nice table with fancy chairs that were not necessary at all for us to operate. The key is to budget smart and spend only on what you absolutely need in order to operate your business.
Some essentials that you should absolutely spend money on are business planning services, marketing research, and accounting and legal services.
Expenditures that you should avoid include expensive subscriptions, over-staffing, and leasing a “fancy office.”
How Coworking Can Solve Excessive Spending
Running your small business from a coworking space can solve excessive spending in a number of different ways. A coworking space allows you to run your business from a flexible workspace at a fraction cost of leasing a “fancy office.” Joining a coworking space automatically removes extra expenditures from the startup budget, like furniture, office decor, WiFi, and printers.
When you join a coworking space, you’ll have the opportunity to network with fellow business owners who might’ve been in your position before. What I’ve learned from starting and operating WorkPub Coworking is that everyone is willing to help. Many unplanned discussions happen inside WorkPub Coworking and someone always benefits from the takeaways. I’ve seen members go up to each other, without interrupting each other’s workflow, and ask for advice in areas of accounting and legal services. The knowledge and experience of the network of professionals that operate inside a coworking space could save you time and money.
Business failure due to excessive spending, especially during the early stages, is not a common thought amongst business owners. Small businesses usually blame the market, co-founders, employees and third-party services for their failure, but the reality is that a lot of small businesses fail due to poor money management. Coworking spaces can help you manage your spending by rather allowing you to spend it in areas that will help your business grow.