Updated: Oct 19, 2021
“Startups”! This is probably one of the biggest buzzwords in Luxembourg at the moment. While the Grand Duchy has long been a hub for companies in the finance sector, there is an increasing number of new businesses sprouting in Luxembourg across various fields – from sustainable fashion, to intuitive apps, to blockchain technology!
Just since 2019, Luxembourg has jumped 10 places on StartupBlink’s global rankings for startups! This takes it into 43rd position, which is very impressive given its small size. In fact, many people are ear-marking Luxembourg as the upcoming Silicon Valley of Europe. With the rapidly growing economy and solid governmental support initiatives, there are few better places to set up shop!
Nevertheless, launching a company has significant challenges no matter where you do it, and there are various hurdles along every entrepreneurial journey. In this article, we will look at some of these challenges and how using coworking spaces can help startups overcome them.
Less Capital Investment
Money, money, money. Most businesses require some extent of capital investment from the outset. Equipment, software, marketing, employees, and… a big, scary one in Luxembourg: rental of office space.
Office rental can very quickly chew into your capital, particularly in Luxembourg, with the average rental price climbing in the last decade and remaining high throughout the pandemic. According to Delano, office rental in 2020 was still around €51/m2 monthly in Luxembourg City, which can be a huge hit for a startup or young business still trying to find its feet. Add to this the costs related to equipment, maintenance, furniture, insurance, utilities, and you may start having a panic attack…
Working from home is one obvious way to address this problem. However, even in cases where “home” has a luxurious extra room that can be used as a dedicated office space, this solution does have some shortcomings.
Despite many processes now being done online, most companies still need basic office equipment to run smoothly. What happens when a client requests a wet-ink signature at short notice? How can you maintain a professional impression without incurring the costs of printing meeting materials at a printing shop?
In addition, while entrepreneurs may recognise that the impact of a face-to-face meeting with a client or potential investor far exceeds that of a video call, arranging a meeting at your personal residence may not be appropriate for various reasons. Can you afford to forfeit the benefit of in-person networking and relationship building?
Coworking spaces have become a valuable resource, by providing all the facilities that a traditional office can offer (and often even more!) at a fraction of the cost. Formal meeting rooms, reliable internet connection, printing and scanning facilities, even an excellent coffee machine to get you through the grind!
One of the most challenging aspects of the entrepreneurial journey can be the uncertainty that comes with it. According to Embroker, about 90% of startups fail, which as a fact in itself can generate a lot of uncertainty for the brave ones looking to become the next Elon Musk.
Of course, you have expertly crafted a solid plan which is guaranteed to pave the road to your success. But, as we all know, plans don’t always roll out as expected - for better or for worse.
Let’s say you bargained on 2 years to grow from a team of 10 to a team of 30. With this in mind, you secured the perfect office space with 3 separate areas for the 3 departments. However, because you are an absolute genius, your business booms. Within 6 months you’ve expanded to 45 people and have split into 7 teams. Brilliant, right? Except that you’ve signed a 2-year lease for an office space that is incorrectly configured and hopelessly inadequate…
On the flip side, your company could take longer than expected to turn a profit, and you could be spending excessive amounts on unused office space and equipment, which creates a lot of unnecessary pressure.
Using coworking spaces cancels out the need for these long-term commitments, so you have the freedom to expand, downscale and relocate according to your company’s individual growth progress .
Securing a Strong Team
An important part of the road to success is having a strong team, which means recruiting the best candidates.
In today’s working world, remote working has become a highly valued workplace benefit. According to a study, more than 70% of employees call it a “must-have” perk. If your startup offers remote working or a hybrid model, this might be the benefit that sets you apart from a competitor seeking to attract the best team.
Deskover offers tailored packages for startups, allowing you to easily incorporate shared workspace solutions in your employment offering.
As an entrepreneur, having a strong network can be crucial. In Luxembourg, this can be especially challenging for several reasons.
Many entrepreneurs in the Grand Duchy are expats, meaning that they don’t already have an existing network one would normally have in the country you grew up in. Add to that language barriers, cultural diversity, and now social distancing and remote working, and suddenly building a network seems even more complicated.
With so many diverse people across various industries in one place, the networking opportunities at coworking spaces are plentiful. Many workspaces also host networking events to promote the creation of business and social relationships. (If you haven’t yet, sign up for the Deskover newsletter to keep updated with events happening at coworking spaces near you!)
Who knows, one chance encounter or a casual cup of coffee in the shared kitchen could result in a valuable collaboration for your business!
“I like to use the hard times in the past to motivate me today.” – Dwayne “the Rock” Johnson.
No matter how passionate you are about your business, there will undoubtedly be times where the going gets tough and motivation runs low. While remembering last week’s failure might work for The Rock, most of us need a bit more help to get us through the tough times.
Sharing a working environment with other people who are driven, passionate and committed can provide an inspiring atmosphere that can reignite your engine when you need it most. In coworking spaces, you could also encounter other entrepreneurs who have been through the same challenges, who could offer insight and advice.
Sometimes just a change of scenery and seeing other people at work – whether they are typing furiously or designing a virtual reality video – can remind you that you are not the only lone ranger out there and can motivate you to push on.
At Deskover, we have personally come face-to-face with many of these challenges faced by start-ups in Luxembourg. We truly believe in the impact coworking spaces can have on fuelling startups and providing the resources needed to help a business skyrocket.
Book a place at one of the coworking spaces on our platform here. It may give you just the boost you’re looking for!