Using Coworking Spaces to Build your Business – SA Entrepreneurs and Businesses,
- 18 October 2023
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Most people dream of having their own business, doing their own thing at their own time, but starting a business involves more than just dreaming and the desire to be independent. In this article, we will take a deeper look at the importance of planning and choices that impact a business.
Small businesses are essential in South Africa
Do you have your own business or are planning to start your own business? Either way, as an entrepreneur, your business can make a much-needed difference in South Africa. According to Trading Economics, the unemployment rate in South Africa reached 32.9% in the first quarter of 2023, and reduced to 32.6% by the second quarter.
Over a million students registered at tertiary institutions at the beginning of 2023, and at that the current unemployment rate, they will probably struggle to find work after their graduation. Your business, together with other businesses in South Africa, can provide work and make a difference to the unemployment rate.
Your business can also impact the economy of South Africa, foster innovation, develop skills and experience, and encourage others to start their own businesses. By giving others the opportunity to gain experience through your business, you can equip and empower them for their future.
As your business grows, any position resulting from it, offers a job opportunity to someone that enables them to provide for themselves or their family, and in that way fill their place in society. That is why many people in South Africa decide to start their own businesses.
However, it is important that a person start their own business with more than just the motivation of not being unemployed, or to offer employment opportunities to others. A lot of important things should be considered when undertaking a business venture at any level.
Why people in South Africa choose to start their own business
More and more people in South Africa want to work remotely, according to a survey done by Michael Page Africa. It is as a result of lockdown, where we were forced to do it, but then discovered all the benefits of it.
Unemployment: The unemployment rate is only one of the reasons why South Africans start their own businesses. Let’s face it, the younger generations have a very different outlook on life. They see possibilities that older generations are not even aware of. That is due to their exposure to social media, electronics, and technology, amongst others.
Passion and flexibility: Another reason why people in South Africa start their own businesses, is definitely passion. They can start a business from something that interests them, and build it from the ground up. That, and the freedom of flexibility, is what excites, inspires and motivates them.
Independence: Depending on the type of business they have, they can determine their own working hours, and in that way incorporate other activities and interests. Being your own boss definitely has an attraction and comes with benefits.
Nevertheless, a business is not something that you should start on a whim. There is too much at stake. If your business idea is not planned well from the start, you might be heading for failure. Let’s have a look at the important factors to consider, to give your business the best chance to succeed.
Planning to grow a successful business in South Africa
Starting a business is not something one can do impulsively, without planning. Even if you have an existing business, it is equally important to plan, maintain focus, and slowly build up your business. Don’t be in a hurry and become impatient about growing your business. Don’t rush things. It takes time.
What are your short-term and long-term goals, and what strategies will you use to achieve them? If you do not have all the necessary skills, you may have to consider getting someone on board that have them. Are you in need of funds or an investor?
A well-thought-out business plan will show that you are serious about your business. It will also help you to keep focused, to not be led by circumstances, but to adapt to them. Don’t just go with the flow or hope for the best, rather plan thoroughly!
Reasons why businesses fail in South Africa
No one starts a business with the objective to waste a lot of money and to let the business fail. A person who has a business idea, are driven by passion and motivation, and has a can-to attitude, a person that has a vision of something bigger, enters into their business venture with the hope (or belief) of success.
However, there are many reasons why their businesses may not quite work out as they planned, or had hoped:
- Basic skills:
They discover that they don’t have all the basic skills required for by the business, and they are not yet in a position to appoint someone else to do it.
- Funds:
Their original budget falls short and their funds run out.
- Poor financial management:
Funds were more than enough, but they didn’t practice good financial management
- Late payments:
Funds were more than enough, but they didn’t practice good financial management
- High-priced offices and equipment:
They started out in a professional office, but once they realised the extent of the costs, they decided to scale down and move their offices to their home. Subsequently their businesses lost revenue, due to loss of visibility and exposure.
- Hidden costs:
They didn’t consider all the costs involved in their business, e.g., insurance, employment wages, stock, equipment, research and development, high utility bills, increasing petrol prices, food and electricity costs, and loan repayments
- No prior market research:
They invested a lot of time and money into their product, but no market research was done before they started and later discover that their product was not as popular as what they had hoped it would be.
- Cutting down on marketing costs:
No, or very little marketing. Marketing is crucial part of your business. You can’t only rely on word-of-mouth referrals.
Disadvantages of working on your own
As exciting as it may be to run your own business, working on your own comes with many challenges and disadvantages. Two heads are better than one, no matter how experienced or clued up you are with your service or product, or any of the functions that running a business requires.
It could be to your advantage to have another’s opinion or input when business decisions must be made, or when your business runs into some kind of trouble. Being solely responsible for your business can become lonely, and it can become stressful and overwhelming. This is particularly more so when your office is based at home.
Working on your own means that you have to work without support, which could lead to isolating and even withdrawing yourself from others. There may be no or very little interaction with others apart from clients, etc. So, when a problem pops up, the danger when you operate on your own, is that you find it hard to reach out for help.
It may continue for so long, that by the time you realise that your business is in trouble, it is too late. It doesn’t have to be that way. If you struggle to work on your own, and it didn’t turn out the way you expected, there is another alternative.
Coworking with others in a professional environment comes with many benefits, which don’t only benefit your business, but also you as the business owner. You can cowork with other professionals and business people. There is just something about working in a buzzing office environment where everything you need is available at your fingertips.
The many benefits of coworking with other professionals
Prior to the lockdown, working from home and coworking with others, were difficult to imagine. Nevertheless, after lockdown forced us to work from home, we began to identify other possibilities. Another survey done by Michael Page Africa, proves how entrepreneurs, remote workers and businesses benefit from coworking.
Now that we know that coworking presents many benefits, let’s have a look at what those benefits are:
- Mutual interests:
Imagine being surrounded by motivated individuals who are also growing their own businesses. It will inspire you and give you the opportunity to take a break, leave your office or desk, and discuss mutual interests or challenges over a cup of coffee.
- Networking opportunities:
: If your service or product is needed by one of the other business owners, vice versa, it could open doors for you. It is a naturally collaborative environment to work in, which could offer new clients to all.
- Client friendly:
Imagine being surrounded by motivated individuals who are also growing their own businesses. It will inspire you and give you the opportunity to take a break, leave your office or desk, and discuss mutual interests or challenges over a cup of coffee.
- Flexible rental options:
Imagine being surrounded by motivated individuals who are also growing their own businesses. It will inspire you and give you the opportunity to take a break, leave your office or desk, and discuss mutual interests or challenges over a cup of coffee.
- Increased creativity and productivity:
Imagine being surrounded by motivated individuals who are also growing their own businesses. It will inspire you and give you the opportunity to take a break, leave your office or desk, and discuss mutual interests or challenges over a cup of coffee.
- More focus:
Imagine being surrounded by motivated individuals who are also growing their own businesses. It will inspire you and give you the opportunity to take a break, leave your office or desk, and discuss mutual interests or challenges over a cup of coffee.
- Low overhead-costs and no set-up costs:
Imagine being surrounded by motivated individuals who are also growing their own businesses. It will inspire you and give you the opportunity to take a break, leave your office or desk, and discuss mutual interests or challenges over a cup of coffee.
- Work-life balance:
Imagine being surrounded by motivated individuals who are also growing their own businesses. It will inspire you and give you the opportunity to take a break, leave your office or desk, and discuss mutual interests or challenges over a cup of coffee.
Working together in a coworking environment with other entrepreneurs, remote workers and business people, can add so much value to your service or business, because you are all in the same boat.
Liquid Hub offers the perfect coworking space for you
Working together in a coworking environment with other entrepreneurs, remote workers and business people, can add so much value to your service or business, because you are all in the same boat.
At Liquid Hub, we have a variety of options to suit your need:
Freelancers, entrepreneurs and remote workers, we offer an hourly, daily and monthly rate. On top of that, each hot desk is equipped with high-speed internet, access to meeting rooms, and a range of amenities designed to boost productivity.
Maybe you prefer to work with in a more private coworking area. With a daily and monthly rate this could be the perfect option for you. This offers you flexibility, networking opportunities and state-of-the-art amenities. These spaces are designed for collaboration, equipped with high-speed internet, dedicated workstations, and communal areas to relax and connect.
If your business keeps you on the move, and your employees work remotely, but you need a physical address, we have a cost-effective solution for you. At Liquid Hub, we offer you a prime business address, mail handling services, and access to meeting rooms when you need them, while you have the freedom to operate remotely.
- Meeting Rooms and Boardrooms:
Do you have the occasional meeting on an irregular basis, but need to impress your clients with a professional looking boardroom? No problem. We have 4-seater and 8-seater meeting and boardrooms to suit your needs.
Jason Scholtz is the visionary force behind Liquid Hub, a game-changing co-working space that has been redefining the traditional office landscape since 2019. With a passion for innovation and a keen eye for detail, Jason has successfully built a vibrant community where creativity and collaboration are at the forefront. Located in strategic locations, including the bustling heart of Boskruin, Liquid Hub offers a unique blend of flexibility, essential resources, and networking opportunities. Jason’s leadership has been instrumental in providing freelancers, startups, and businesses of all sizes with an environment that fosters growth and success. When he’s not busy transforming workspaces.
