Tag Archives: rent

We’re On The Move

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Well, it’s official – we’re moving! We weren’t able to come to an agreement with our landlord about our monthly rent. The rent right now is $3123 a month and our current lease has it scheduled to go up to $3600 if we were to renew in April. The revenue for the space, as it stands right now, can afford rent of about $2000 a month. So, as of the beginning of April, our address will no longer be 108 King William Street. We’ll be moving to a new space with a new address. Both of those things depend on you.

Coworking is About Community

C4 Workspace needs our community to inform our location search and selection. Two factors are really important: reign in our overhead costs so we [finally] break even; and sustainability, meaning keeping our revenue level at or above where it is now. Keeping these search parameters in mind…

Must Haves:

  • Rent at or below $2000 a month
  • 1500 to 2000 square feet of space
  • Little or no finish out or construction needed
  • Some enclosed spaces for conference room, office(s) and storage
  • Room for lounge or break area/kitchen
  • Easy access from freeways

Like to Haves:

  • Accessible bathroom
  • Outdoor seating
  • Nearby (walkable) restaurants

Where?

Ah, good question. This gets to the sustainability factors we need to consider. Here’s the situation. The community with the first priority is our Residents. They’ve made a commitment to this coworking space by making their business home here. Our second priority community is our Coworkers. They’ve chosen to use C4 Workspace as their primary place to work and do business. That’s about 10 people with first dibs on where we move. They are the people that have voted with their wallets to keep C4 Workspace afloat until now.

The Residents would like a location just south or just north of downtown, definitely not further north than 410. We ignore that preference at our own peril. Ignore it and our established community bails and our sustainability model disappears. C4 Workspace would close and coworking in San Antonio would be limited to the Dominion Business Center outside of Loop 1604..

Why Not Outside 410?

Well, first, current Residents won’t go. But more importantly, C4 Workspace hasn’t ever received a commitment from Northsiders to work in a coworking environment. The research and outreach we’ve done hasn’t amounted to a hill of beans. Our survey last spring brought forth a lot of “Yes!” but the followup from people was a lot of “no.” We held four Jelly coworking days at La Taza Coffee House last fall with invitations to come and talk about opening a Northside coworking space. No one showed up. No one.

Coworking depends on community support for sustainability. C4 Workspace has survived to date by incrementally increasing community support (and a whole bunch of personal savings.) Theres is  community support in place to sustain a smaller space. But there hasn’t been community support for moving the space away from downtown to the northern suburbs. Wish there was because a majority of the  people who have joined as members live north of 410. But it takes more than “joining” to keep this thing afloat. It takes between $2500 and $3000 of revenue (in a smaller space) to break even. As soon as we get that level of commitment from a community of people we could consider moving north. There’s nothing stopping anyone from venturing to open another coworking space. We would love to help build this concept across the city.

So keep your eyes and ears open for us as we search for C4 Workspace’s next incarnation.

The Coworking Deduction

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Well, there really is no such thing. But there are deductible expenses related to coworking* that you should consider.

Office

It doesn’t mater if you’re a full time resident or a Daily Desk drop in, every nickel of your coworking expense is deductible. Whether you call it “Rent” or “Office Expense” it can all come off the bottom line. I’ve had a home office for many years. I was often scared to deduct the expense of it because of “audit fear.” And the record-keeping for utilities, mortgage expense, etc. were a hassle. At a coworking space all of that is moot. You deduct one expense and the rest is included. And your clients don’t have to go through the dining room to get to your office. And the dining room doesn’t also double as the “conference room.”

Auto

Unless you’re a full or part time resident at space like C4 Workspace you should be able to deduct all of your driving expense to and from. You can use the mileage method or the all expense method by keeping receipts for everything car related. You never have to worry about “parking” since the parking free at C4 Workspace, either in the parking lot or on the street. The bummer on the mileage expense deduction is that it will go down next year from 55 cents in 2009 to 50 cents in 2010. Seems like an incentive to take public transit or ride a bike. Which are also deductible one way or another.

Meals and Entertainment

We’re luck y at C4 Workspace in that we have lots of great, cheap restaurants nearby (moderate and expensive ones too) to entertain clients or to talk about collaborating on a project. You can deduct 50% of the cost of a meal. (And have you tried the sandwiches next store at The Filling Station? You’ll never have a lunch meeting anywhere ever again!)

Legal and Professional Services

Part of coworking is discovering new resources and partners. If you hire or contract with another professional you meet at C4 Workspace you can deduct that expense.

Insurance

Like every business we have an insurance policy to cover the space or accidents. And that’s deductible. We also encourage anyone who works in the space to have their own insurance on the equipment they bring in. This is especially true for Residents who have a full time desk. They should have something like a renter’s insurance policy for their stuff. And that’s deductible. (And, coincidentally, we have a member, Joe Solis, who is a business insurance specialist. You just never know who you’ll meet when you cowork!)

Start-Up

C4 Workspace is a start-up business and we had lots of expenses to get the place open. Lord knows we’ll be deducting them! But, if you’re starting a business there are certain expenses that you can deduct to get started. They may include some of your operating expenses before you open your doors. But if start up capital is tight it doesn’t matter if you can deduct it or not. Coworking is perfect for a new business that needs a very affordable professional location. You pay rent for your desk and the infrastructure like a conference room, internet, utilities, even a printer, are thrown in. And you get an opportunity to meet contacts and do some targeted marketing for cheap. Such a deal!

* This is the time of year when you can play catch up on some deductible business expenses. In fact you can deduct an expense this year for a service you use in 2010. The basic rule is that you need to spend the money or write the check in 2009. So, if you need a workspace occasionally this would be a good time to pick up a 5 Pack of Daily Desk passes ($90). If you need a workspace on a regular basis then a Coworker Desk Plan ($150/month for unlimited business hours) might the right thing. And if one of your resolutions is to get a professional presence for your business then a Resident Desk Plan ($280/month for 24/7 access) might be the right step. And if you just want to get started coworking then an annual membership at $50 (including 2 Daily Desk passes) would be just the, uh, ticket.

Nothing in this article should be considering accounting advice. In fact, even as a advice you should take it with a grain of salt. You should definitily consult with an accountant or financial adviser whenever you try to negotiate the labyrinth we know as the “U.S. Tax Code.”

Coworking as an Investment

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Web Worker Daily put up this post afew days ago, Justifying Coworking As an Investment. It flashed across the coworkingverse like wildfire and it has some great points.

We’re always looking for information about coworking that we can share. But I thought it might be good to make this one relevant to C4 Workspace. So here goes.

Point by Point

WWD laid the post out in three points.

Step 1: Identify What You Have to Gain from Coworking
We like to think of these in terms of our name:

  • Collaboration
  • Cooperation
  • Community
  • Connection

Put those together and you have what we could call “opportunity investment.”

Step 2: Assess the Risks and Costs Associated with Coworking
WWD didn’t really address the “risk” part of that so we will. The biggest risk of coworking is that you will run into someone who isn’t about the community so much as about themselves. They could steal an idea or a client. This is a case of what I call the 99-1 rule. Don’t spend all you time planning and worrying about the 1% of worst case scenarios. Plan for the 99% you’ll run into and deal with the 1% when they come along. You are more likely to have an idea or client stolen at a coffee shop by someone you don’t know eavesdropping on your conversation. (We take the “Co-” in community seriously. If you need a private conversation speak more softly or use a one of the phone rooms.)

Costs always have to be considered. It was one of the first things we thought of when we stated to think about opening a space: will people pay for professional workspace? We answered it in one of our initial presentation slides titled “Whadya Nuts?”. The answer is that as a small business or a freelance or solo you have no choice but to grow your business, especially in a down economy. To grow you will need to attract new clients and appear more professional than the next guy. That requires an investment in time and money.

You also have to consider what operating out of your home costs you now. You’re driving to meet clients. If you work (ethically) in a coffee shop you’re buying drinks and food. You’re paying for WiFi in some fashion. So, add up those hard costs for gas, drive time, WiFi, food and drink. You probably spend about $20 a day for little to no privacy, no connection to others, noisy meeting space and overpriced WiFi and beverages.

Coworking at C4 Workspace starts at $20 a day and goes down from there. Last I checked Starbucks didn’t give you volume discounts on lattes.

Step 3: Make an Informed Decision

Absolutely. The best way to do that is to “try before you buy”. Drop in on the Second Thursday for Jelly San Antonio all day free coworking. Better yet, just drop in and sit down. Talk to us about what you need and we can work something out. Remember, it’s all about the community. Essentially, everyone is a customer, a participant, a contributor. Even us.

No Hard Sell

Because it’s not necessary. Try coworking one day and you’ll be hooked. Yes, it costs money and money is dear right now. But if you are serious about your business and want to be a player in our economic ecosystem we think it’s an investment worth making.