Coworking Labs

Reasons Firms Hire Online Contractors

Elance recently released the results of a survey of companies using their online marketplace to hire freelancers and contractors.  While all the data is interesting, I was most intrigued by the reasons given by the hiring companies for hiring online contractors.  These are:

1. 87% listed cost effectiveness; no need for office space, phone, etc.
2. 82% listed flexibility; being able to staff up and down as needed
3. 66% listed 24/7 access to talent

A whopping 87% strongly agreed (44%) or agreed (43%) that hiring online talent is a way to enhance  competitiveness and profitability.

Our research shows that companies often first start using contingent workers to save money.  However, they quickly realize there are substantial business flexibility and competitiveness benefits beyond costs. 

Because of the non-cost benefits, it is hard to see the trend towards contingent workers doing anything but get stronger.  Which means more folks likely looking for coworking space. 

You're Already Self-Employed

Best selling author and marketing guru Seth Godin is a strong believer that the new economy means being responsible for your own career.  Key quote, from trend spotting site PSFK,  on everyone being self-employed:

"The idea that you are a faceless cog in a benevolent system that cares about you and can’t tell particularly whether you are worth a day’s pay or not, is, like it or not, over.

In the long run, we’re all dead. In the medium-long run, though, we’re all self-employed. In the medium-long run, the decisions and actions we take each day determine what we’ll be doing next."

Work and the Open Source City

Work and the Open Source City is an interesting essay covering a lot of ground related to the new ways people are working and coworking.  Key quote that sort of summarizes the essay:

"As the material artifacts of offices – messages, documents, photos and plans – are digitized and stored on servers, physical spaces have the potential to become increasingly open, flexible and sharable...This allows the dynamic reorganization and co-location of people, firms and activities that have been separated since the early days of industrialization, the advent of the hierarchical firm and the rise of cities themselves."

For those familiar with coworking, this well written essay covers familiar ground.  The focus is on the community aspects of coworking and the cross-fertilization of ideas - often described in the coworking world as "increased serendipity."

But for those new to coworking or unfamiliar with it, this is a great essay that describes both the movement and the underlying driving trends.

Workantile's Video Explains Coworking

Nice video from Ann Arbor's Workantile coworking facility (the video is also on their home page).  It stresses the community aspects of coworking.  It also provides a good look at their facility.

All in all, an excellent and quick introduction to coworking. 

We saw this on Bruce Serven's blog.

Goodbye Office, Hello Coworking?

Best selling author and marketing expert Seth Godin's article Goodbye to the Office points out that the traditional office is no longer as useful as it once was.  Key quote:

"If we were starting this whole office thing today, it's inconceivable we'd pay the rent/time/commuting cost to get what we get. I think in ten years the TV show 'the Office' will be seen as a quaint antique."

While Godin suggests the traditional office is obsolete, he doesn't know what will replace it:

"What's missing is #7... someplace to go. Once someone figures that part out, the office is dead."

Many, of course, are suggesting that coworking might be the "someplace to go" that replaces the traditional office. 

A good example is Why Coworking is the "Go To" Solution from Workbar, a coworking facility in Boston.  It covers the advantages of coworking versus working at home or coffee shops.

We think coworking is a logical successor for traditional offices (at least for many), which is why we are conducting a research project on this subject.  As we get deeper into the project, we hope to more to say on this subject.

Starbucks Versus Coworking

Starbucks announcement that they will be offering free WiFi starting in July comes as no surprise.  Many independent coffee shops have been doing so for some time, and even McDonald's now offers free WiFi. 

But what is interesting about the announcement is how much they discuss turning Starbucks into a "third place" for work.  In the New York Times article on the announcement, a Starbucks spokesperson is quoted as saying:

“We expect this to be a very versatile tool for people who are using Starbucks for what we call the third place, between home and work,” he said.

The article goes on to point out that Starbucks is increasingly catering to freelancers and those looking for jobs:

The coffee chain is catering in part to people who are out of work and need a place to perfect their résumés or do freelance jobs. In January, the company announcedthat same-store sales increased 4 percent after months of steady declines. Starbucks attributes the improvement, which came before consumer spending rebounded as a whole, in part to its role as an office for the unemployed.

They are also going to be offering the Starbuck Digital Network, a set of online content created in partnership with Yahoo.  The NY Times describes this as:

"Customers will also get free access to paid Web sites, like those of The Wall Street Journal and Zagat, free iTunes downloads and previews of not-yet-released movies and albums. They will see local content based on the coffee shop’s location, like news from Patch, AOL’s local news site, check-ins on Foursquare and neighborhood photos on Flickr."

While Starbucks will likely never offer the full range of services and the community aspects of coworking facilities, free is a powerful marketing tool. 

 

Demand Media Looking for Freelancers

Demand Media is a successful and somewhat controversial firm in the online content creation space.  They employ thousands of freelance journalists who in turn produce thousands of search friendly articles on a daily basis. 

While not everyone agrees with their approach to content creation, their results are quite good.  Demand Media sites in total reach 81 million unique users, making them the 16th largest web company. 

According to Media Week, Demand Media is planning on greatly expanding their army of freelance writers by targeting even more niche spaces.  According to their website, their new Talents and Experts Network"provides opportunities for established and emerging talent to publicly establish their professional reputation and expand their online brands."

Journalism is quickly moving to an almost fully freelance model - which explains the freelance camp for journalists being held at Stanford later this month. 

Freelance Camp, Networking and Coworking

We attended Freelance Camp San Francisco over the weekend.  It was a great opportunity to see NextSpace Coworking's new SF facility (they were the hosts and organizers) while also interacting with and learning from a group of freelancers.

As researchers, camps are like a series of focus group sessions.  In this case, we listened to freelancers discuss issues of importance to them, their problems and successes, and how they run their businesses.   

As owners of a freelance-like business ourselves, we got to share business experiences, ideas and methods with a group of experienced solopreneurs.

All in all it was a great day. 

It was interesting how much focus there was on networking.  By my unofficial count, it was the 2nd most popular topic (finance and legal broadly defined came in 1st). 

The interest in networking, not surprisingly, focused on 3 areas:

1. finding customers
2. finding other freelancers to work with on projects
3. finding sources of feedback and input on work

Coworking and the community it provides is, obviously, one way to address these issues.  And with the importance of networking only increasing, so will the appeal of coworking. 

The Growing Contingent Workforce and Coworking

Two interesting articles in the media yesterday on the growing contingent workforce.  The NY Times Entrepreneur or Unemployed is an op-ed piece by former Labor Secretary Robert Reich. 

It covers the shift to self-employment and although he doesn't use the term, the growth of necessity-pureness - people who turn to self-employment because they can't find a job. 

Reich is one of the deepest thinkers around on the social impacts of changes in work and the economy.  His book Supercapitalism is the most insightful description of the economic changes of the last few decades I've read. 

CNN/Money also weighed in with Say Goodbye to Full Time Jobs With Benefits, which covers the shift to employers hiring temps, freelances, contractors, part-timers and other form of non-full time, non-permanent employees. 

The growth of the contingent workforce will continue.  The CNN article says roughly 30% of the U.S. workforce is currently contingent and this will likely grow to 40-45% by 2020.  We agree.

However you feel about increasing numbers of self-employed and the shift to contingent workers (the two articles are not real positive), one impact will likely be growing interest in coworking. 

We cover this topic from a broader small business point of view on our Smallbizlabs blog.

Coworking in Canada

Have laptop will travel: coworking spaces are the new home offices in Toronto covers several coworking spaces in that city. 

This blog post led to an article in the Toronto Star on coworking.  The best part of that article is the coworker example they start with - a beer consultant:

"Mirella Amato is an in-demand beer consultant. Through her company, Beerology, Amato leads beer tastings at bars and festivals, judges beer competitions, speaks on beer panels and contributes to a CBC radio segment about beer." 

How do you get that job?

The blog post attributes the growth of coworking facilities in that city to the growth of freelancers and the self-employed in Canada.