Do you how to go about opening a coworking space? Are coworking spaces profitable?
The Coronavirus has decimated what work culture formerly was.
Now we’ve learned that it’s possible to work away from the office. This has led to an astronomical increase in those working remotely, raising the demand for co-working spaces.
So how does one start a coworking space?
If you are business-minded, then this is a very good question to ask. Remote workers and gig economy workers are increasing. They would need someplace to work on days when they don’t want to work from home.
How To Open A Coworking Space
How does one start a coworking space? That’s what we’re going to be looking at in today’s article.
You will need to develop a coworking space business plan.
Before you even start thinking of what kind of coworking space you’d like to start, you should think of demand. This is perhaps the first thing to be thought of here when deciding on the co-working business model to use.
Is there a need for a co-working space in the area? If there’s no need for it, it wouldn’t even matter how good it is, it’s going to be a waste of time.
Get to know the coworking market and also the real estate market in your area. What’s the work culture like? Are there other people offering the same services there?
What are the local amenities like, what kind of jobs and businesses do people around there do? With this, you can decide where is best suited for your co-working space.
Your research should also include your target market. The fact is that if you target everyone, you’d end up targeting no one. So It’s better to niche down especially when starting.
Questions such as what industry would your ideal target customers be in, what’s their age, average income, their work culture, are you targeting out-of-town professionals, freelancers, women-owned businesses.
Answering these questions would not only help you know what amenities you’d need, but you’d also be able to tell if the market is large enough for you to run a business around it.
You’d also have to decide whether you want your co-working space to be a profit-generating business or a nonprofit.
Checking out other places where your target market congregates is a good way to do your research.
Check out other coworking spaces in the area, or around where you are looking to start yours. Libraries, coffee shops, internet cafes, book shops are some places where you can find people who might need your services.
Talking with these people, giving them a questionnaire to fill or even organizing an event to bring them together might be a nice place to start.
Co-working spaces thrive on community, so it’s nice to get used to creating one as you work on your co-working space.
How much will it cost you to be up and running?
From hiring a property to fitting it with furniture, staff members, high-speed internet, and other amenities. The cost of these will vary from place to place.
However, getting a space is usually the most expensive part of the process.
Knowing how many people you’d like to have seated at a time, and of course, your membership strength would give you an idea of the size of building that you want.
Do you want to offer private offices, conference rooms, event halls, nurseries for children?
These would affect how much you’d be spending, but then again it’s your primary customer base that would determine the amenities that you’d offer.
Are you financing the project yourself, are you getting investors, do you have friends and family who would be willing to give/loan you money? Think well of your finance source.
The location of your co-working space is very important.
If it takes so long to reach, it might deter certain people from coming. Would you like your space to be in a vibrant city center, close to places such as restaurants, gyms, parking spots, bus stops, or train stations?
Or would you rather it’s in a quiet place away from the hustle and bustle of the city, where people can easily concentrate. Your target audience would decide this for you.
Prime locations are going to be expensive, bear that in mind.
Getting the perfect location for your market though is a very important aspect of what you offer. The space should be easy to find though, this is very important, safety and convenience should also be considered.
Do you want to pay as you go, weekly, monthly, or yearly subscription?
Ideally, you should have different cadres of subscribers. Some people would only need to use the co-working space once in a while, or seasonally when they need long hours of concentration.
Some people would want a long-standing arrangement, perhaps would even want a certain space reserved for them. Certain companies would want to hire perhaps an office, even a whole floor, for their remote teams to have meetings when needed.
Different offers would cost differently, and they should be priced according to their needs or according to demand and supply.
Although this is one of the things we consider last, it is also very important. The décor of a place affects its energy, and also has a say in who is attracted to the place.
You want a place that’s airy, well-spaced, and well lit, as cramped spaces can give a claustrophobic feeling to certain people, which would in turn affect their mood and their productivity.
Having a place with sleek design, welcoming décor would be nice. Don’t forget also that the comfort of your furniture would be very important. Remember people will be spending long hours here working.
After you’ve had your finances sorted, gotten a space, and set up the place, you should hold a kind of opening event.
This would create a buzz, which would serve to get the attention of people around, not only would it serve as marketing, but it’s going to be a good step in creating a community.
So launch with funfair, get some popular people involved if possible so that they can drag people to the event.
Build A Community
That’s the essential difference between shared office spaces and co-working spaces – a sense of community.
Humans are social animals, we love to be part of a community, and being able to build a community around your coworking space would keep people coming back.
Holding BBQs, happy hours, games night, and other kinds of events before and after opening the co-working space can help build a sense of community.
This would play a vital role in having repeat customers.
One big takeaway we’d like you to have from this article on starting a coworking space is community.
Spaces such as these thrive on community, people of the same mindset meeting, coming together to collaborate and yet work on their projects.
There’s a growing demand for coworking space, and it is projected that this growth will continue for a few years to come due to the change in our working cultures.
You have a chance at some real profit if this venture is properly planned out.