The web development industry experiences constant change. Therefore, a web development company needs to be well aware of these changes and incorporate them into their processes. Otherwise, due to the industry’s highly competitive nature, they’ll lose their market share to more innovative companies.
While there is no shortcut to innovation, organisations can deal with the high competition by expanding into new markets. It is a tried and tested approach to managing high competition. However, overseas expansion is not without risks. There are several factors which need to be considered.
Coworking spaces can prove highly useful when expanding into new markets. They provide a flexible, cost-effective, and highly dynamic environment. This article highlights how web development companies can benefit from a coworking space during expansion.
Expanding into new markets often comes with significant upfront costs, including securing office space, purchasing office equipment, and ensuring all utilities are in place. A coworking space offers a hassle-free alternative. There is no need to purchase office equipment or worry about utilities.
All you need to do is select an appropriate coworking space and the relevant package. You can opt for open floor seating, dedicated desks, or a private office. It reduces the financial burden associated with overseas expansion. The best thing about a coworking space is the flexibility.
During the initial days, it is challenging to determine how much office space you require. The primary reason is you are still testing the market. It makes no sense to hire 100 people immediately and realise your actual requirement is only 40. The coworking space allows you to downgrade and upgrade your seating without hassle.
Of course, space availability must be considered. You don’t need to worry about losing your deposit when changing your office arrangement. The reason is a coworking space does not take any upfront payment for anything whatsoever. There are no hidden charges either. You only pay for the space you use, and that’s it.
2. Geographic Flexibility
Another benefit of a coworking space is geographic flexibility. You’ll find numerous options if you are looking for a coworking space in Islamabad or any other city in the world. With their popularity reaching new heights, we’ll soon see a rapid increase in coworking spaces worldwide.
According to Statista, coworking spaces are set to more than double in 2024 compared to 2021.
How does this flexibility benefit a web development company? They can test the waters in any geographic market. Based on the results, they can finalise the most feasible market. Without coworking spaces, a web development firm would have to rent commercial space and procure office equipment.
Just imagine the costs when a company pursues three or four markets simultaneously. A coworking space in all three or four markets would cost a fraction of the total expenses incurred on renting a furnished and non-furnished office space. This flexibility allows businesses to test the waters before investing in new markets.
3. Networking Opportunities
There is a need to understand that a coworking space is much more than a shared desk. It is a space that provides excellent networking opportunities. In any shared office space, there are professionals from different backgrounds. You’ll find IT professionals, marketers, finance experts, and more under one roof.
This diverse environment provides excellent networking opportunities for web development companies. They can engage freelancers, remote workers, or other organisations. This collaboration or partnership can go a long way in helping web development companies refine their products and find new clients.
One way to land new clients in a coworking space is to consider hosting a workshop or presentation on web development topics within the coworking space. This is a great opportunity to highlight your skills and expertise in the web development domain. It may help you attract potential clients.
4. Access to Local Talent
When expanding overseas, it is imperative to hire local talent. Why? Without local talent, it is challenging to understand the local culture, preferences, and trends. It can be a deal breaker when engaging clients in the new market. However, recruiting top talent is not easy and can be financially draining.
Coworking spaces are hubs for local professionals, including freelancers, designers, marketers, and developers. Instead of posting ads on LinkedIn or other platforms, you can look inward for talent. Engage people who are the best fit for the job. Being in the same physical location can help streamline the recruitment process.
5. Reduced Administrative Hassles
When setting up a new office, there are various things to consider. For starters, you need to negotiate the terms and conditions of the lease. It can be physically draining as you may finalise an office space only to run into problems when negotiating the lease. Similarly, procuring the equipment and then designing the office is another challenge.
That’s not all. You need to manage the utilities and the day-to-day operations. Indeed, managing all this requires considerable time and at least 2,3 resources. A coworking is a much more feasible option as it takes care of many of these administrative hassles. Common administrative services provided by coworking spaces include:
- Shared Reception
- Mail Handling
- Ergonomic Furniture
- Modern Design
- Fully Equipped Meeting Rooms
- High-Speed Internet
A web development firm can rest easy after outsourcing all these administrative tasks to the coworking space’s management. It can utilise the resources to improve its products and services. It would be beneficial in improving the customer experience and helping the company acquire clients in the new market.
6. Market Research Opportunities
When expanding into a new market, the quality and depth of market research can impact the success rate. For any organisation, it is imperative to understand the intricacies of a new market. Coworking spaces can be invaluable for market research for several reasons, which we’ll discuss.
Firstly, they are a perfect reflection of the local culture. With a diverse group of members, the web development company can understand how the new market operates. Secondly, it provides a place to connect with locals and understand their preferences. Thirdly, coworking spaces host events and workshops which provide market information.
By strategically using coworking spaces, web development firms can establish a solid presence in new territories and foster sustainable growth. This approach is cost-effective and provides opportunities to explore partnerships and collaborations. In today’s highly competitive market, these collaborations and partnerships can be the key to competitive advantage.