The Kauffman Foundation has estimated that the average startup cost is around $30,000, and at least some of that cost likely comes from office space rentals. To help allay some of that cost, startup businesses on a shoestring budget can try a number of strategies to reduce their costs to rent office space.
One option that is available to startup companies in larger cities is coworking office space. A coworking space is a shared space that offers short-term rentals by the day, week or month. Depending on the space and its structure, a startup company may be able to drop in and rent a desk or two when needed or sign monthly contracts to rent out an office. An advantage to coworking spaces is they offer the flexibility of paying for only what you need while also providing the option to use more space and services as you grow.
Virtual office spaces
Many startups choose to initially have their founders and employees work virtually, which totally alleviates the need for office space rentals. These days, most cities have fast enough residential Internet service that most people can work at home, even if they need to do tasks that require a lot of bandwidth. And applications such as Skype and FaceTime make virtual meetings easy.
Business centers are similar to coworking, although they are a bit more formal. Business centers also are called office suites or shared office spaces, and there are thousands of them across the U.S. Most business centers provide you with a private business suite, but other aspects, such as conference rooms, lobbies, copiers, fax machines and support staff, are shared. Business centers can be a good option for small startup companies. You get a dedicated office space while the sharing of other services cuts down on your lease costs. Depending on the size of the business center and what amenities it offers to its lessees, you may be able to get space for you and your employees for just a few hundred dollars a month, which is cheaper than most office space rentals.