Coworking vs. traditional office: The complete cost analysis for small businesses

As a small business owner, you may be faced with the choice between a traditional office and a coworking solution. Both options have their advantages, but when it comes to the bottom line, the difference in costs can be crucial to your company's finances. Let's dive into a detailed analysis of the real costs of both solutions.

‍

The Traditional Office: The Visible and Hidden Costs

‍

Monthly fixed costs

Rent: In Denmark, office prices vary considerably depending on location. In Copenhagen, you can expect to pay 1,500-3,000 DKK per m² annually, while in smaller cities like Lyngby it is 800-1,500 DKK per m² annually. A 25 m² office will therefore cost:

• Copenhagen: 3 125-6 250 DKK/month
• Lyngby/suburbs: 1.665-3.125 DKK/month

Electricity and heating: Average 150-300 DKK/month for a small office, depending on the season and energy consumption.

Internet and telephone: Business Internet typically costs 300-800 DKK/month for a reliable connection.

Cleaning: Professional cleaning costs 200-400 DKK/month for a small office.

Insurance: Business insurance for office contents and liability: 150-300 DKK/month.

‍

One-off costs and investments

Deposit: Typically 3-6 months rent in advance payment (5,000-37,500 DKK).

Decor and furniture: Desk, chair, storage, lighting: 15.000-50.000 DKK.

IT Equipment: Computer, printer, telephone, network equipment: 20,000-40.000 DKK.

Installations: Internet, telephone, any alarm system: 5,000-15.000 DKK.

‍

Variable costs

Maintenance: Repairs, replacement of equipment: 500-1.500 DKK/month.

Supplies: Coffee, office supplies, toilet paper: 200-500 DKK/month.

Parking: If not included: 500-1.500 DKK/month per seat.

‍

Total monthly cost of traditional office

Lyngby area: 3,500-6,500 DKK/month (excluding one-time costs of DKK 45,000-142,500)Copenhagen: DKK5,000-10,000/month (excluding one-time costs)

‍

The Coworking Solution: Flexibility and Transparent Costs

‍

Flexum Coworking - hourly model

Unlike traditional coworking spaces with monthly subscriptions, Flexum Coworking offers a unique hourly model where you only pay for what you use.

Office spaces:

• 3-person office: 70 DKK/hour, 315 DKK/half day (6 hours), 420 DKK/full day (8+ hours)
• 3-Person Conversation Room: 70 DKK/hour, 315 DKK/half day, 420 DKK/all day

Meeting rooms:

• 4-person meeting room: 200 DKK/hour, 900 DKK/half day, 1.200 DKK/full day
• 10-person meeting room: 400 DKK/hour, 1.800 DKK/half day, 2.400 DKK/full day

Cancellation policy:

• Large meeting rooms (10 people): 5 days notice
• Small meeting rooms (4 people): 3 days notice
• Offices and call rooms: 1 day notice

Included in the price:

• Electricity, heating and internet
• Cleaning
• Basic office materials
• Coffee and tea
• Professional environment
• Free parking

‍

Comparison: 20 hours of monthly use

Flexum Coworking (3-person office): 1.400 DKK/month

• No one-time costs
• No binding
• All included

Traditional office (Lyngby): 3,500-6,500 DKK/month

• Plus DKK 45,000-142,500 in start-up costs
• Minimum 3-5 years of binding
• Ongoing Maintenance Responsibility

‍

ROI calculation: What are you really saving?

Scenario 1: Startup with limited budget

Year 1 costs:

• Traditional office: 87.000-220,500 DKK (incl. start-up)
• Flexum Coworking (20h/month): 16.800 DKK
• Savings: 70.200-203.700 DKK

‍

Scenario 2: Established business with varying needs

Monthly costs of fluctuating consumption:

• Traditional office: Fixed 4.500 DKK (regardless of use)
• Flexum Coworking (3-person office):
  • Busy months (6 full days): 2,520 DKK
  • Normal months (20 hours): 1.400 DKK
  • Quiet months (10 hours): 700 DKK
• Average monthly savings: 2,000-3,800 DKK

‍

The hidden benefits of coworking

‍

Flexibility as value

Scalability: Use larger rooms for meetings, smaller for daily work.

Professional facilities: Access to meeting rooms with AV equipment without additional investment.

Networking options: The value of meeting other entrepreneurs cannot be measured in dollars.

‍

Reduced administrative hassle

No vendor management: Get rid of dealing with electrical, internet, cleaning and maintenance companies.

No unforeseen expenses: No repairs, replacements or upgrades.

Tax Simplicity: One invoice instead of many different expense items.

‍

When does traditional office make sense?

A traditional office can be the right solution if:

• You have more than 3-4 full-time employees
• You need specialized equipment or decor
• You work more than 160 hours/month in the office
• You need 24/7 access and storage

‍

Conclusion: The numbers speak their distinct language

For small businesses and entrepreneurs, the coworking solution is economically superior in most scenarios. With Flexum Coworking's hourly model, you can save 60-80% on your office conversions compared to a traditional office.

‍

The smart approach: Start flexibly

Instead of tying yourself to an expensive traditional office from the get-go, you can:

1. Start with coworking and test your real needs
2. Scaling up as the company grows
3. Preserving flexibility to adapt to market changes
4. Invest the savings in growth instead of overhead

‍

Get started today

At Flexum Coworking at Maglebjerg vej 6 in Lyngby, you can experience the benefits of professional office facilities without the heavy costs. Book a tour and see for yourself how you can optimize your company's finances.

Book online at www.flexum.com or call in our telephone hours Monday-Friday 09:00-13:00 to hear more about our cost-effective solutions.

‍