Demonetization has dealt a sudden blow to the Indian economy, demobilizing Indian businesses, both big and small at one stroke. The withdrawal of Rs. 1000 and Rs.500 notes as legal tender has put the lives of common man in jeopardy, creating chaos not just for individual citizens but also for start-ups, freelancers and other small businesses.
The severe cash crunch that is sweeping the nation has made the average citizen wary of spending his money. While demonetization may have proved to be a brilliant disruption measure to stem the stashing of black money by corrupt people, it has proved to be a curse for the honest, tax-paying citizen who cannot withdraw his own, hard-earned money from the bank beyond a certain limit. A major part of India still survives on paper money, and it is impossible to make the whole of India conduct its financial transactions digitally overnight.
Effects of demonetization on the Office space industry- A ray of sunshine in darkness!
In the midst of this chaos, several businesses, especially small-time ones, have been severely hit by the paucity of liquid cash. It is difficult for businesses to sustain when people refuse to spend their money on a business’ products or services. Then, does the Office Space industry stand to gain or lose from this move?
The Office Space Industry can, open up new vistas of possibility during these hard times, ensuring a spike in the graph of the Office Space industry. This can be possible because of the following reasons:
Higher savings by opting for a shared office
While businesses take a hit due to demonetization, it only makes sense to cut costs. And a shared office space provides the best way out to cut costs without compromising on other valuable assets such as loyal employees. A report suggests that office space maintenance in Metro cities like Mumbai, Bangalore and Delhi can cost almost 30,000 US $ a year. A shared office space can be much cheaper than maintaining a high end office. If not shifting/closing down an entire office, an existing business can shift to a co-working space temporarily/ or move a single outlet, to save some bucks!
Co-working spaces promise high profits for start-ups
The report also goes on to suggest that office sharing could save new businesses between 73 percent and 76 percent of the total cost. It is no wonder then, that opting for a co-working space should make the most sense to an entrepreneur who is just building his venture. The past year has shown the emergence of at least 16 new co-working spaces, taking the total number of shared office spaces available in India to 61. This proves that, the office space industry is growing.
Easier cash transaction facilitation for customers and clients:
A co-working space promises every possible facility for its clients, and this includes facilitating smooth digital cash transactions by setting up PoS (Point of Sale) centres and machines at the shared office— features that are equally beneficial to the businesses and their clients.
Community Events become easier and cheaper
A co-working space organizes a number of community events that appeal to all the businesses at the shared office, making the entire process more affordable and organized.
As India goes digital, even businesses are transforming their image by moving from traditional office set-ups to the smart option of shared offices. May the transformation usher in a better era for all!