1 July, 2020
Private vs Shared Office Space | A Clash between Tradition and Modernism
As a strategically located country between the east and the western parts of the world, the UAE is one of the preferred destinations for many entrepreneurs to setup their business. However, there is one legal requirement here, which can also be utilized appropriately by businesses to achieve competitive advantage. Do you know what that is?
Indeed, it is obtaining a shared office or private office space.
Why do I need an Office Space?
The law mandates that every business should necessarily have an office space associated with its trade license. From the legal perspective, the office may be a coworking space in Dubai or a private office space – it is treated the same way for issuing your trade license. The law simply means that without an office, you cannot get yourself a trade license (unless you belong to some exempted categories due to your business activity).
But at the heart of it all, the debate is much more than a summarized view of just meeting room rentals in Dubai or joining a coworking space. The debate is about the value that an office can add to your business, to your networking abilities and more importantly, to the sustained growth of your company.
So, what then are the more in-depth aspects associated with office space? Which type of office space scores on each critical parameter for my business?
- SCALABILITY (Shared office)
A critical aspect of business sustenance and organic growth is the ability to scale up or down, in alignment with the economic conditions prevalent across the world. Joining a coworking space would allow you to scale up into a larger working space whenever you want.
- FINANCIAL OUTFLOW (Shared office)
As compared to private office space, the ability to customize the interior layout of your office is limited. The positive spin to this is that all your expenses on meeting room rentals in Dubai, or in interior fit-out, can be kept to a minimum.
- QUALITY (Private office)
When it comes to the quality of office layout, nothing better than exercising your control and customization. This is available and workable only in a private office, while in any coworking space in Dubai you must make do with what the venue offers you.
- LOCATION (Shared Office)
Typically, the perks associated with a lower financial outflow on joining a coworking space is off-set by the structural negatives. But the large positive point is that you can keep your overall costs minimal but still get a wonderful shared office space in unusual locations such as Sheikh Zayed Road or JLT. Renting your own private space in the same locations would come at a higher financial outlay.
- CONFIDENTIALITY AND PRIVACY (Private office)
As the name suggests, a private office gives you the ability to keep your critical business deal discussions or negotiation phone calls private.
- OTHER PERKS (Shared office)
Shared offices offer some benefits like free wi-fi, free coffee/tea, or free hours for meeting room rental in Dubai.
In short, the vital difference between both office types comes down to which aspects determine the success factors for your business.
How can a Coworking Space Work Well for my Business?
In our earlier column, we focused on why a coworking space could work well for businesses. Some of the key points are
- The shared office fosters creativity
- A collaborative culture is nurtured
- Boosts productivity for you and your employees
- Helps you leverage networking benefits associated with joining a coworking space
- Added benefits/perks (such as free wi-fi or free hours for using an otherwise paid meeting room rental in Dubai)
- Being a part of a special community of shared office space tenants, otherwise referred to as coworking partners
- Easy scalability
Advantages of a Private Office Space
As opposed to joining a coworking space, the advantages of having a private office space are markedly different and may prove beneficial in the long run.
- Ability to obtain control over your office space layout
- You get complete privacy to discuss your company affairs
- Saving cost on venue rental expenses
What is a Coworking Space?
When joining a coworking space, the structure allows you to occupy one or more desks, while other companies may have their representatives occupy other desks in the same shared office space. Think of it like an open classroom, where different students sit together with different objectives.
What is a Private Office Space?
In a private office, you are provided with an enclosed space (could be one room, one wing of a floor, or even a whole floor or building) which you may rent for operating your business. The space is entirely subject to the financial capacity of the business. Often the venue rental or a meeting room rental in Dubai need no longer be availed, since your own private office may be customized to meet all such requirements that your business seeks.