Co-working growing pains – Page 2 of 2 – StartupSmart

For Mike Gardiner, co-working spaces have given his start-up, Lime Rocket, access to high energy social environments and an injection of diverse skills from fellow tenants.

 

He alternates his time between Wollongong space StartPad and a couple of other co-working spaces in Sydney.

 

Above: StartPad

 

He likes the fact that the community that builds around these spaces can give small start-ups big visions.

 

“We’ve received referrals to several great advisors, received three high value sales leads in the last month and on a weekly basis, we benefit from ad hoc peer mentoring from others founders in these co-working spaces,” Gardiner says.

 

However, Gardiner admits the nature of these often open-plan spaces can make it hard not to get distracted.

 

“You’re working in this super-fast paced environment alongside other founders like yourself that are also trying to make a dent in the world, doing amazing things.”

 

“Trying to limit the time you spend with other teams can be a challenge but it is one of the things we love so we wouldn’t want it to change,” he says.

 

Growing pains

 

But do the start-ups that begin in these co-working spaces ever leave? Landlords say that some go on to rent their own office space, while others enjoy the back-end support and social life that a co-working space offers them, so choose to stay.

 

Online graphic design hub DesignCrowd used Fishburners as a stepping stone for a few months.

 

The business has raised $3 million of capital, grown from three staff to 17, acquired a US business and launched overseas including in the UK and Canada in the past year.

 

Its current digs are in Surry Hills in Sydney.

 

Founder Alec Lynch says: “We hired a few desks, used meeting rooms to interview potential staff and used it as a base when we were hunting for a new, larger office to fit everyone. It appealed to us because it was cheap and flexible.”

 

Co-working spaces were also a stepping stone for tech start-up OrionVM Cloud Platform, which was based at Fishburners for a year before moving into its own space.

 

The business counts Sydney Buses, NSW State Library and AAPT among its clients and annual revenue has reached seven figures.

 

Managing director Sheng Yeo says while a co-working space offered a great culture, security and privacy were an issue, prompting him to move out.

 

“It was a great way to get a credible address and a work space in the city that all of our team could work from.”

 

“The other benefits that we realised after going to the co-working space included mentorship, great company and being able to find a range of advisors and people who were one step ahead to assist,” Yeo says.

 

But moving out of a co-working space isn’t always a sign of success.

 

Property management software company RentingSmart founder Ben Levi has been a Fishburners tenant since the space opened 18 months ago and has no immediate plans to leave.

 

His fellow tenants help him solve problems in a tenth of the time it would take him on his own, he says.

 

Above: The Refinery Studio

 

“There is usually someone who has already done what you’re trying to do. RentingSmart is in a better position today due to the Fishburners community.”

 

Finding a co-working space

 

Questions to ask:

• Many of these spaces specialise in a particular type of start-up, so ask for a breakdown of tenant types before deciding if it’s a community you could benefit from.

• Ask about the standard services the space provides, including car parking.

• Speak to other tenants and find out what they love about the co-working space you’re considering.

• Consider transport options and check out nearby lunch spots and other services.

• Ask about add-ons and decide if they could really benefit your business.