
Where the Coffee Shop Meets the Cubicle
Co-working facilities blend the appeal of an independent environment with many of the advantages of the traditional office
by Kerry Miller
In the earliest stage of his startup Darius Roberts, 27, shared the de facto office of many a San Francisco techie: a coffee shop.
Working out of a Wi-Fi-enabled java joint in the Mission district was infinitely more pleasant and productive for him than flying solo in a home office at his Oakland apartment. And it provided the opportunity to meet other developers he might even be able to hire one day, as his Web-based car-sharing company, DartCar, grew.
But when Roberts picked up a flyer about a "community office space" called the Hat Factory, he realized there was an even better option. For $10 a day or $170 per month, the Hat Factory could provide him with a desk, standard office amenities, and access to a shared kitchen, private meeting room, and lounge. And something else—community spirit. "You can meet people at a coffee shop, but it's harder to have meaningful interactions," Roberts says. "Co-working lends itself to that."
Not Just for Startups
Over the past few years, co-working facilities—both grassroots, co-op-like versions and for-profit models—have started popping up across the country and the world, from Seattle to Copenhagen. A co-working wiki hosts pages for dozens of other cities with co-working initiatives in progress. And while the concept of shared office space is nothing new to entrepreneurs, an increasing number of them are signing on and finding that the community-building and networking benefits outweigh even the virtues of a shared fax machine.
In a recent report on the future of small business, the Silicon-Valley based Institute for the Future pegged co-working as a trend to watch over the next decade (see BusinessWeek.com, 1/31/07, "The Face of Entrepreneurship"). After co-working first took off with clusters of free-agent programmers and writers, its flexibility and low cost have also proven a good match for startups unwilling to sign a long-term lease. Because many of these facilities operate on a gym-membership model that doesn't assign workers to specific desks, co-working is cheaper than most subleasing arrangements. And unlike traditional business incubators, co-working isn't just for startups with high-growth potential.
The study's lead author, Steve King, says the increasing popularity of co-working facilities reflects the rise of one-person "personal businesses" as well as a broader fluidity between virtual and real-world communities.
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http://www.businessweek.com/smallbiz/content/feb2007/sb20070226_761145.htm
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