Is this all a sign of a small-business bubble? WeWork's CEO Adam Neumann says not at all. Many small businessess "have not had access to cheap capital, they've not had big investments thrown at them. Most of our companies are businesses that have real cash flow that either had 4 or 5 employees before and we working from their home or Starbucks or a backoffice and now understand that coming to a shared space, they will do much better."
Co-working spaces like The Yard and WeWork offer amenities at a relatively low cost—a receptionist, conference rooms, kitchen, lounge areas, free WiFi, coffee and tea. But mostly, Andy Smith the executive director of The Yard says the network is invaluable.
"You can come to a space like The Yard and find a network of entrepreuners, where everyone is hungry and everyone is working hard."
Rental terms are flexible, too. Entrepreneurs can upgrade their space as their company expands.
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That's what Rukkus did—growing from seven to 15 employees in less than a year—while renting space at WeWork. "They basically take out a lot of the logistical challenges you might face as a start ups face out of the equation and just let you focus on your business," Bahn said.
But for Bahn, one of the most coveted amenities of working out of a shared space is sharing information and ideas—the sense of community.
"There's no book that teaches you how to build a tech start-up," Bahn said.
But being around others who are doing the same can help.
Correction: This version has been updated to reflect the correct spelling of the first name of WeWork CEO Adam Neumann.