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What Is a Coworking Space — and Will It Replace the Traditional Office?
It’s no secret that the COVID-19 pandemic fundamentally altered the work landscape, especially when it comes to office jobs. In March 2020, millions of professionals began working remotely for the first time. Now, some may never have to return to a traditional office setting with companies, both large and small, reevaluating the usefulness of renting out office space. As a result, the coworking space is seeing a resurgence in popularity.
Even before the pandemic, coworking spaces offered a lot of great benefits to professionals, entrepreneurs, startups and even traditional companies alike. With flexible rental arrangements and all of the typical office trappings — high-speed internet, well-stocked break rooms, the latest equipment — on offer, coworking spaces simplify things during these uncertain times.
But will the coworking trend carve out a long-term foothold for itself? Here, we’re taking a look at the world of coworking spaces, from how they started to the pros and cons associated with them.
The Rise of Coworking Spaces
While many people weren’t familiar with the concept of coworking spaces until relatively recently, the setup’s origins can be traced back to the 1990s. In 1995 , C Base — a hackerspace in Berlin, Germany — aimed to bring the tech-savvy together, allowing them to exchange knowledge and work collaboratively (or separately) on projects.
After C Base, similar projects emerged. For example, Sveavägen 9 in Stockholm, Sweden, opened in 1998, serving as the home of several companies during the dot-com boom. In 2002, Schraubenfabrik launched in Vienna, Austria, giving entrepreneurs a place to gather and work side-by-side.
But it wasn’t until 2005 that the first company officially centered around renting coworking spaces opened in California. Started by Brad Neuberg, San Francisco Coworking Space offered many of the classic perks we’re accustomed to today, but, at the time, a few things really set it apart from traditional office spaces. Namely, it provided flexibility to freelancers, entrepreneurs and others who perhaps didn’t want to commit in the long-term to renting our workspace.
Over time, coworking spaces have gained a significant foothold, especially in cities. Of course, the pandemic changed that trajectory quite a bit. Even WeWork, a giant in the industry, struggled to pay rent on its properties once shelter-in-place orders and social distancing made operating coworking spaces — and traditional office spaces — difficult, if not impossible.
Those coworking spaces that did make it through were primed for a reasonably quick recovery. “Nearly two years into the COVID-19 pandemic, roughly six-in-ten U.S. workers who say their jobs can mainly be done from home (59%) are working from home all or most of the time,” Pew Research Center , a nonpartisan Washington, D.C.-based “fact tank”, found.
If you don’t have room in your apartment or house for a functional home office, a coworking space might appeal to you, for example. Not to mention, having a separate workspace can do wonders for remote workers’ mental health and work-life boundaries.
But individuals aren’t the only ones seeing the benefits of coworking spaces. Startups that wanted to hedge their bets during their early stages have also found value in the coworking arrangement. For one, it gives these startups access to a traditional-style workplace at a lower cost and with much less commitment. Even larger companies, which are potentially torn between requiring in-office days or not, may find some financial reprieve in renting out coworking space, as opposed to resigning a traditional rental lease.
Today, demand for coworking spaces is incredibly high. Many of the hottest locations have waitlists for new members . On a daily basis, desk reservations typically fill up quickly. While not all coworking companies have reached pre-pandemic numbers just yet, the potential is certainly there.
How Coworking Spaces Work
Generally speaking, coworking spaces use membership-style models. If you’re interested in using a particular location — or, in some cases, any of a larger chain’s locations — you’ll pay a monthly fee to access the space. Once you’re a member, you’ll usually have the ability to reserve desk space. Based on the terms in your membership agreement, you’ll also be able to access the tools and other resources the coworking space offers.
Some coworking locations also boast drop-in options. In these spaces, membership isn’t necessary, but that does mean that space is often limited; reservations are first-come, first-serve. Still, for those with only an occasional need, it’s often worth exploring this immensely flexible option.
Once you enter a coworking space, you share a large office environment with other professionals, from freelancers and remote workers to entrepreneurs and startup teams. While you’ll usually have a designated desk area during your appointment time, other resources are typically shared.
The Benefits of a Coworking Space — and the Drawbacks
As with all work arrangements, coworking spaces come with some pros and cons. When it comes to advantages, the biggest is access to traditional workplace features that don’t fit into a home office — or fit into your home office budget. It’s also an excellent option for professionals who travel; having a functional work area while on the go is convenient, after all.
Coworking spaces also add a social element to otherwise independent jobs. If you’re looking to interact with some other folks throughout your otherwise solitary work day, the water-cooler chat — or potential for collaboration — of a communal workspace might appeal to you.
And, finally, there’s the comparatively more affordable cost. Usually, the price is far below what it takes to rent space in an office building. Plus, the commitment is minimal, giving startups and individuals some much-needed flexibility while they get their foot in the door, so to speak.
When it comes to drawbacks, the biggest might just be the lack of consistency. There’s no guarantee that you’ll get a desk, be able to access certain equipment whenever you need it, or reserve conference rooms on your preferred schedule. While a membership may come with some commitments in this arena, they’re typically limited.
Additionally, while the open, social environment may suit some work styles, it’s a hindrance for others. Open floor plans are common to coworking spaces, which means the desks you reserve are all sitting in the same area. As a result, interruptions and distractions might crop up — not unlike working in a library or your university’s cafeteria.
The bottom line? This setup may not be ideal for detail-oriented, heads-down work. The open floor plan setup can also raise some concerns about privacy; if you’re discussing proprietary information or new developments, you might be overheard by others from outside your team or company.
How a Coworking Space Impacts Employees
For companies turning to coworking spaces in lieu of traditional office environments, it’s critical to understand that this shift does impact your employees’ experiences. Coworking spaces may provide flexibility that your workforce wouldn’t find elsewhere. In turn, this might boost job satisfaction and productivity, all while improving work-life balance. Plus, coworking spaces offer more than a typical home office can provide. For example, most homes don’t boast business-grade WiFi access.
On the other hand, coworking spaces do come with some challenges. No one can really control the environment; if some equipment breaks, you’ll likely need to wait on the owners of the coworking space to fix it. The desk reservation system — often called hot desking — means your employees may not sit with their peers or teammates. Even worse, your team could be lumped in with distracting or noisy professionals from other companies.
So, Will the Coworking Space Trend Last?
Ultimately, coworking spaces will likely remain part of the landscape long-term. At a minimum, they’re a widely used resource among freelancers and professionals who travel, which could be enough to support the industry.
Additionally, the flexibility will make them an attractive option for entrepreneurs, startups and even some small businesses, allowing them to avoid the trappings of a long-term leased office space. However, as real estate investors struggle to fill traditional offices, adjustments to those offerings could alter the landscape further.
In fact, high commercial real estate availability makes it a tenant’s market , pushing prices down and leading to friendlier terms. If that trend continues, traditional offices may become more enticing, which means companies may slowly shift back to business-as-usual rentals.
While a change like this won’t spell total doom for coworking spaces, it will alter their place in the landscape, potentially making these communal spaces a haven for freelancers, remote employees and on-the-go professionals — much as they were pre-pandemic.
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Business Plan Checklist for Your Coworking Space
The coworking industry is becoming a lucrative worldwide phenomenon , and now is the perfect time to break into the business. And as COVID-19 induced lockdowns and social distancing hopefully become a thing of the past, remote workers will be looking to find ways to connect with like-minded individuals now more than ever. A coworking space is a perfect place to do that!
Below, we've put together a step-by-step checklist to help you envision, assemble, and scale your own unique space. Whether you're brand new to the industry or you already know the ropes, you can use these tips to improve efficiency, define your brand and strengthen your space's community.
Looking for our full coworking space business plan?
We offer a comprehensive guide to operating a coworking space. Download it free here .
1. Define Your Vision
Why do you want to open the new space? To make a living? To cross-finance your own startup? To create a national coworking chain? To help your local community?
All are valid answers, but this important first step will help define your entire strategy. You will have to adapt your strategy over time, but your vision should stay intact to make sure your brand is consistent and your members feel valued. Take WeWork for example. Their initial vision — to create spaces for people to come together and innovate — still hasn't changed, even as their business has scaled up .
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2. Solve a Specific Problem
There needs to be a niche for your new coworking business, and thankfully there are plenty of options available. Maybe your area has a high demand for coworking spaces beyond coffee shops and libraries. Maybe the existing spaces in your area are too focused on one type of worker. On the other hand, maybe the other spaces around you are too broadly focused.
You're now in the business of problem-solving, so starting with a focus and expanding from there should be your main goal. For example, Google started out as a simple search engine that used links to determine the importance of individual pages on the internet. Today, they still dominate their niche, but they also offer dozens of services on top of that: Think products and services include mail, calendars, maps, and even phones. To create something bigger, you need to begin with one small thing. Start by analyzing your competitors and conducting a competitive analysis .
3. Define Your Space
Envision your target market's dream coworking environment . Is your space a premium facility for companies or an affordable solution for freelancers? Is your primary audience big business or small teams? Will your facility integrate with your city's business environment through events and partnerships, or will it be an independent space open to anyone?
Answering these questions will help you more easily plan out your membership pricing, amenities, marketing, and location. Being generic doesn’t cut it in the coworking market. Think deeply about how to stand out against the rest and add value to your new space.
4. List Your Business Goals
This is the tough work that will help you the most in the long run. If your space is fully leased, plan out the number of desks you can offer and monetize. Shoot for using 30 to 40 percent of your total space as desk space. Then, use this figure to calculate how much revenue your space can generate, including comparing the number of hot desks against the number of permanent desks.
Start to formulate a financial plan for your vision. Use our very own free financial ramp-up calculator to get started. The next step is to think about goals further down the line. When will you break even? How much revenue will you generate? How much turnover do you expect? Which amenities and cosmetic choices can you afford?
Now think about the investment you'll need. This includes set up costs, like furniture and internet service; opening costs, like a launch event; and ongoing operations, like maintenance and salaries. There are more costs than you might initially imagine, so research more with coworking guru Alex Hillman's online guide .
Additionally, you should define your value proposition, cost structure, revenue streams, customer segments, key channels, and marketing strategy. You'll need to know these answers inside and out.
5. Pick Your Team
Every great business starts with a great team . Consider every side of the plan: a technology expert, an operations manager, and a marketing person are essential, whether you hire them, do those jobs yourself, or outsource to freelancers.
Similarly, you’ll need to look into real estate partners, investors, and other day-to-day employees to round out your core group. A solid team will increase your space's value and pave the way for future growth.
6. Coworking Business Model
What is your unique selling point what value do you bring.
Do you offer lots of space for large teams to rent out, or individual desks to pay for by the hour? Do you offer bare-bones facilities like wifi and a seat at a desk, or cold brew on tap and gym access? You should always aim to offer the work necessities that aren’t available in free spaces like coffee shops: printers, reliable high-speed internet, writing utensils, scanners, and other office supplies. You may want to cater to a specific industry, like offering a space where entrepreneurs can network and bounce ideas off of each other. Are you geared towards providing networking opportunities, or a quiet space for optimal productivity? Or do you cater to bigger clients who want more private meeting spaces or long-term rentals? The answers to all of these questions will begin to define how you sell your space.
Who is your audience?
Are you catering to individuals, businesses, or both? How will you accommodate those who will stop in sporadically versus members who need a steady 9-5 workspace? Will you lease specific desks and offices or just grant people entry as needed? Are there entire floors that companies can rent out, or private meeting spaces for remote teams? Or maybe you don’t exist in a physical place but are more of a club? These parameters will help you think about what type of space you should occupy.
If you’re offering a space primarily for people to meet outside of the usual 9-5, maybe you operate out of a building that is in use only outside of normal business hours, like a restaurant or church. If you’re catering more to the 9-5 crowd, think about how you can utilize your space outside of business hours. Perhaps you’ll host nighttime events like book readings or networking cocktail hours. Maybe you’ll cater to parents by offering childcare or irregular hours.
What are your revenue streams?
Most revenue will come from membership fees, but those can take several forms. You can have members pay monthly or annually, or charge hourly for the use of workspace. You can offer both hot desks, which can be rented out for specific times, and dedicated desks, where a member can leave their things and return at their leisure. A mix of both will ensure you’re filled to maximum capacity. Also consider offering corporate memberships, which can be a great way to get tons of people in the door and allow companies to extend perks to remote teams.
You can also bring in revenue through amenities like a cafe, and build different levels of membership based on these smaller perks. For example, a higher-tier member might get unlimited coffee, free guests, or free access to events.
Another popular revenue stream for coworking space is something called a “virtual office,” in which startups or remote teams pay for a business address where they can send and receive packages, even while working from a different place, like their homes.
What are your marketing strategies?
A good marketing strategy is key to getting your coworking space off the ground. It’s also highly connected with who your audience is. You may run advertisements on local news or in niche magazines that cater to your audience. You should definitely have an attractive website and a strong social media presence. Many places find success in offering perks to existing members for referring friends.
Try and get creative! Can you work with influencers that your audience might follow? Should you have a booth at industry fairs, or offer freebies to those passing by at a local farmers market or on a busy street?
What partnerships can you form?
To get off the ground, many coworking spaces rely on investors. They provide an initial revenue stream and source of capital, plus they provide a networking tool that can be sold to members. If your coworking space hosts a number of entrepreneurs or start-ups, you may want to consider offering to connect them with your investor for a small fee.
Think about smaller-scale partnerships as well, such as different local businesses and entrepreneurs you can collaborate with. Perhaps a local coffee shop would be interested in opening a cafe in your space, or a local restaurant could offer customers special discounts. You could offer members discounts at a nearby gym, or host instructors for fitness classes right in your coworking space.
If you plan on hosting events, begin to compile a shortlist of people who would make a good fit. Are there local entrepreneurs who could give an inspiring talk, or authors who might draw a crowd? Perhaps artists would be interested in having their work on display, or a local library could sponsor a small lending library in your space.
7. Coworking Business Model Template
There are tons of helpful coworking business model canvases out there that are helpful to estimate your startup costs, brainstorm partnerships, cater towards your target audience, and build your business. You can save this checklist, as well, to help you start planning your space.
Target Audience : Who is your dream client? Who do you wish to attract?
Partners: Will you be looking for investors? Who will be your internet service provider? Will you partner with local businesses, or bring in local experts for events?
Added Value: What’s your selling point? A quiet space for remote workers to use instead of a home office? Networking opportunities? Speakers and events?
Key Resources: What do you need to be successful? An entire building or just an open floor? Wifi? Cold brew? Fax machines?
Advertising: How will you spread the word? Through local businesses, social media, billboards, or word of mouth?
Key Activities: What will your space be used for? Workspace for startups? Collaboration for entrepreneurs? Events open to the whole community?
Revenue Streams: Will membership fees be fixed or will there be different plans? Will you recruit investors? How many hot desks versus conference rooms? Will you charge a fee for events?
Customer Segments : What different customers do you hope to attract? Freelancers? Remote workers? Entire companies?
Download this Coworking Space Business Model Canvas today and start planning!
Remember: This is a broad overview. While these are some of the main questions you'll need to address when shaping your business plan, there will be plenty of other things to evaluate more in-depth. We've collected a more extensive overview of how to launch and run a coworking space in 2021 with our updated guide, which you can download for free .
And get excited! Coworking is showing signs of massive growth, and this is your chance to improve the world of business while setting yourself up for success.
Carlo is the Project Manager and SEO Specialist at Kisi.
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How to Write a Winning Coworking Business Plan
So often we see aspiring coworking owners and operators looking to start their business without a good understanding of the coworking business model or how their space is going to reach and maintain profitability.
Creating a business plan before you go on the journey of starting a coworking space is the best way to map out your business strategy and how you intend on making money as a business.
A well-crafted business plan can help guide decision making and give you the confidence you need to succeed. Of course plans can always change, but having a strong starting point is critical to success.
In this guide, we’ll go through what a coworking business plan is, why you need one, and how to create a plan that covers all your bases. By the end of this article, you’ll have everything you need to be successful in crafting a comprehensive business plan.
What is a coworking business plan?
A coworking business plan is a document that outlines exactly how you will start your coworking space and create a sustainable and profitable business. If you are applying for a loan or looking to receive funding, then a business plan is not just a formality, it’s a necessity.
Even if you aren’t looking for funding , a business plan is a good way of getting your thoughts together and making sure you have a viable business long before opening your doors or securing your location.
Benefits of a well-crafted coworking business plan
In short, having a business plan for your coworking space gives you a greater chance of overall success. Creating a business plan before opening your coworking space is needed to:
- Get a loan or receive funding
- Guide short-term and long-term strategy
- Help you make important business decisions
Here is another way of looking at it. Let’s say Steve wants to start a coworking space. He finds a property to rent in his area and starts building out the space. He looks at some of the other coworking spaces in the area and uses it to inform what he offers and how he prices it. He opens his doors a year later and…crickets.
Because Steve didn’t have a business plan in place, he did not consider:
- Who he is targeting
- Whether this location is a good right fit for his market
- If the products he is offering are interesting to his target audience
- How he will acquire his first members
- If the cost of his services are be enough to be profitable on a monthly, quarterly, or annual basis
It may feel like having a business plan isn’t necessary, especially for small or rural spaces , but as you can see, it’s easy to get off track and make the wrong decisions without a solid plan of action in place.
You don’t just need a plan when starting a business however. You’ll also want to consider creating a business plan when you are looking to grow or expand your coworking business , as your business needs may change slightly from when you first opened your space.
What are the components of a business plan for a coworking space business?
Now that you understand the importance of having a strong business plan in place, let’s take a look at the components that make up the best coworking business plans.
Business plans are generally pretty standard, regardless of the industry. The typical components are:
- Executive Summary: summary of the document in its entirety
- Company Description: description of your company including the mission statement and objectives
- Market Analysis: write-up of the market, both local and more broadly
- Competitive Analysis: deep dive into your competitors, both local and more broadly
- Description of Management and Organization: outline your team and how the organization will operate together
- Breakdown of your Products and Services: description of what you will be selling
- Marketing and Sales Strategy: how you plan to market your space and acquire customers
- Financial Projections: a breakdown of your finances and your path to profitability
- Fundraising Strategy/Sources: how you will fund your business
Each section is roughly 1-3 pages long (remember, more does not necessarily equal better). When writing your plan, optimize for clarity and completeness, while still being concise. This article from Harvard Business Review is an excellent guide to creating a general business plan that can be applied to many different industries. Let’s take a look at each section below and how it relates specifically to coworking.
How to write a coworking business plan
Below we’ll break down each aspect of a business plan and how it applies specifically to your coworking space.
1. Executive Summary
The executive summary is a one-page overview that summarizes your entire business plan at a high level. It should cover who you are, the business you’ll be creating, how you’ll make money, and all other elements of the plan at large.
Focus on creating impactful sections across the board, and then come back to your executive summary at the end. Much like an introductory paragraph of an essay, it will be easier to write an executive summary at the very end.
2. Company Description
Think of your company description as the “About” page of your business plan. Here, you’ll describe your:
Why are you starting your coworking space? What do you hope your space will be able to achieve in the broader community? Consider your purpose for creating the space and weave it into your mission statement.
For Jason Jet, Founder at Grindhaus Studios , his mission is to give artists the tools and access they need to be able to scale what they do in an economical way. This guides how he makes all major decisions for his business.
If you’re a brand new space, the history of your company may cover your personal resume and the skills you’ve acquired that will help you be successful in your role as a coworking space owner and operator.
If you’re expanding your business, then the history will cover the history of your business up to that point, including all major milestones and successes.
Consider this section an opportunity to build the confidence needed to be successful in your business.
The biggest difference between your mission statement and your objectives is: your mission statement maps out why you do what you do, and the objectives map out what you hope to accomplish on a more tactical level.
Let’s take Jason as an example. If his mission statement is to give artists the tools they need to be successful, then his objective would be to create the number one coworking space for musical artists in the United States.
Overall, keep your company description clear and concise, and don’t get bogged down in the details. The mission statement could be two or three lines, and the history and objectives can easily be addressed through bullet points or brief paragraphs.
3. Market Analysis
Your market analysis will outline key facts and findings about the coworking market you’ll be playing in, including the local market and the coworking sector more broadly.
This is a very important step in creating your coworking business strategy, and something that you will want to do regardless of if you are creating a business plan or not. Here are some tips for completing a thorough market analysis of the coworking market:
- Look for reports from reputable sources in the industry, such as the Deskmag annual Global Coworking survey , to get important facts and figures related to the industry
- Find communities online, like the We Run Flex community , where people are discussing coworking trends and challenges on an individual level
- Talk to operators and gauge their experience and perspective on the industry to inform your findings
Some important elements to talk about are the growth of the market, current overall trends, and your target customer and how you came to that conclusion.
For example, based on your market analysis, you found that remote workers are making up 20% of coworking space occupants with that number expected to increase. Therefore, you intend to target your coworking space towards remote workers in your area.
Another tip for this section (and your business plan overall) – support all facts and findings with credible sources. If ever a question on where a number comes from pops up, be sure you are able to back it up.
4. Competitive Analysis
The competitive analysis of your business plan breaks down the competitors in your market. You’ll want to focus specifically on coworking spaces and flexible workspaces in the area where your business will be located, as well as broader competitors that may be a potential threat.
Let’s say Georgia is opening a coworking space in her home town of Vancouver. In her competitive analysis, she’ll want to mention all of the coworking spaces in Vancouver and how she will differentiate herself, as well as large coworking brands that are expected to move into Vancouver in the near future.
Your competitive analysis is ultimately about mapping out how exactly you will win in comparison to the spaces you’re going up against.
It’s worth mentioning that many coworking space owners and operators don’t like to think of themselves as having “competitors”. It is true that collaboration can (and does) exist in the coworking sector. However, understanding the other coworking spaces in your area is critical to understanding the viability of your business and should not be overlooked.
5. Description of Management and Organization
The description of management and organization section is an opportunity to describe the team of people you will have working with you, with a focus on their credibility and why they will help you be successful.
For many just starting off in the world of coworking, they may be a team of one or two. If that is the case, it’s worth mentioning how you will ensure success in your space in the absence of a larger team.
This could be a good opportunity to mention the coworking technology you will use to help you streamline operations and manage your space. Optix coworking software helps reduce overhead and take care of many of the day-to-day operations so that you’re able to operate a leaner team.
Integrating with an automated access control system like Kisi means you could have an even smaller team overall. This section would be a great opportunity to expand into these details, especially if you plan on operating as a small organization.
6. Breakdown of Your Products and Services
In your Products and Services breakdown, you’ll want to describe the products or services you’ll be offering in your space. For coworking businesses, this may look like:
- The core products you’ll offer ( hot desking , drop-ins, private offices, virtual offices)
- Other additional services ( childcare , marketplace, etc.)
- Amenities you’ll offer in your coworking space
- Opportunity for after hour event rentals or events in your coworking space
Finding the right mix of products to drive profitability in your space can be a challenge for new operators. We always recommend approaching it from a point of experimentation, starting with some kind of offering, and iterating on it from there.
We also have a comprehensive guide to coworking membership plans you can offer in your space if you’re looking for inspiration on what kinds of plans to offer and how to price them. All of this will be helpful in determining the breakdown of your products and services in your business plan.
7. Marketing and Sales Plan
Investors want to know you have a plan to promote your business. This section should outline the marketing channels you’ll plan to use and give a high-level overview of your overall customer acquisition strategy.
Marketing your space is a beast in and of itself, with a lot of pieces to figure out. We wrote a comprehensive guide to marketing your coworking space that includes 23 marketing ideas for you to refer to. Use this as a starting point.
Keep in mind that your marketing strategy should be centered around your customer – who they are, what messaging will resonate with them, and where you can reach them online and in-person. With your customer at the center of the experience, you won’t go wrong.
8. Financial Projections
Create a clear and accurate picture as to how much revenue you think you will be able to generate in your first years of business. The reality is, an investor will want to see opportunities for growth with your coworking business , so make sure your numbers are increasing, while remaining realistic.
Revenue projections is an imperfect science, but there are good places to start. The Coworking Growth Calculator by Coworking Resources can help you in creating some realistic financial projections, while giving you a better idea as to how much you can expect to make from your space.
9. Fundraising Strategy/Sources
Finally, the last section of your business plan is dedicated to how you will fund your coworking space.
If you have received any funding up to this point, you’ll need to disclose the information for transparency. If you are seeking funding, use this section as an opportunity to outline your strategy including how much you are seeking.
A business plan can be a powerful tool in growing a successful coworking space. However, they will only get you so far. This article does a great job at outlining the pros and cons of business plans if you’re curious on what your plan can (and can’t) do for you.
Remember, the success of your business will ultimately come down to the execution and implementation of your plan. Don’t treat your business plan like an end-all be-all. We’ve seen a wide variety of clients succeed after changing their plan significantly. Execution is the name of the game when it comes to growing a successful business, and it’s best not to lose sight of this.
Tips for writing a business plan for a coworking space
Ready to get started with crafting the perfect business plan? Follow these tips to ensure you create a cohesive plan for your coworking space from start to finish.
1. Always start with your research
The research you do around the market and your competitors should be the basis of your entire business strategy. You can’t know where to open and who to target without understanding the market first.
Be sure to answer some or all of these questions before beginning your business plan.
- What is the size of the market?
- What is the growth trajectory?
- What are trends in the industry?
- What is the primary demographic that it serves?
- Who are your direct competitors?
- How big are they (number of members, locations and revenue)?
- Who do they serve?
- What is their messaging and positioning?
- How do they differentiate themselves?
There are many ways to go about conducting research, as we discussed above. Coworking Resources also has a comprehensive guide on how to conduct a competitive analysis specifically in the coworking industry that serves as a great reference if you’re looking for a framework to start off with.
2. Crowdsource knowledge from the community
The wonderful thing about the coworking community is how willing people are to share their knowledge with one another.
If you’re feeling lost on where to start with your business plan, consider reaching out to a coworking operator who has opened a successful space in the past. This can give you a sense of how to approach the project.
You can also look at other successful coworking businesses and take inspiration from them as to their:
- Business model
- Marketing tactics
- Products and services
Every space is different, but gathering insight from other coworking spaces that have been successful can be a great place to start.
3. Think about who is receiving the business plan and what is important to them
As you go through the process of creating a business plan, you may find yourself becoming unfocused and unsure how to edit your information.
Put yourself in the shoes of who is going to be receiving your plan. Who are they? What do they care about? What information are they hoping to receive from your document?
Use this to help tailor your coworking business plan to fit their specific needs.
Pay special attention to the things that are going to drive business results including:
- Market research (is there room in the market to be successful)
- Competitor research (how saturated is the space and how will you differentiate yourself)
- Products and services (what is your business model and how will it generate revenue)
- Financial projections (is your business able to grow and scale over time)
Read your entire business plan from start to finish through the eyes of who it is intended for before submitting it.
4. Be conservative with your numbers
It’s easy to get excited with your numbers. You need to show that your business is going to succeed and you want the numbers to back it up.
The problem with overestimating these numbers is that it can set you up for a tremendous amount of stress later on if your business fails to meet expectations.
It’s best practice when creating a business plan to always be conservative with your numbers and remain realistic in your expectations. This includes:
- Financial forecasts
- Market size
This article outlines ten common mistakes people make when creating a business plan, including being unrealistic with numbers and forecasts.
It’s always better to underpromise and overdeliver rather than the opposite.
5. Set measurable objectives
Goals and objectives are an integral part of any business. Throughout your business plan, you will want to make sure you are creating clear KPIs and objectives to drive your business forward.
One way of creating measurable objectives is by following the SMART goal framework. SMART goals are goals that are:
- Specific (narrow enough to be achieved)
- Measurable (quantitative)
- Attainable (realistic in the given time frame)
- Relevant (furthers your overall business goals)
- Time-based (can be measured in an amount of time)
Here’s how to apply the SMART goal framework to your coworking business plan.
- Marketing Objective: Acquire 50 new hot desking users in the first 6 months
- Management Objective: Hire a part time community manager in the first 60 days of opening
Measurable goals can help move your business forward and ensure you’re staying on track to achieve them.
Plan for success with your coworking business
At the end of the day, a plan will only get you so far. Focus on executing on the plan and remaining flexible in order to ensure you’re giving yourself the greatest opportunity to succeed.
Looking to start a coworking business? Don’t miss out on these 15 essential costs of starting a coworking space. Want to learn more about Optix and how it can help you start your coworking business? Connect with a member of our team today.
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Coworking Space Business Plan Template
Written by Dave Lavinsky
Coworking Space Business Plan
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their coworking space companies.
If you’re unfamiliar with creating a coworking space business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a coworking space business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your coworking space business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a coworking space business or grow your existing coworking space company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your coworking space business to improve your chances of success. Your coworking space business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Coworking Space Businesses
With regards to funding, the main sources of funding for a coworking space business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for coworking space companies.
How to Write a Business Plan for a Coworking Space Business
If you want to start a coworking space business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your coworking space business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of coworking space business you are running and the status. For example, are you a startup, do you have a coworking space business that you would like to grow, or are you operating a chain of coworking space businesses?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overview of the coworking space industry.
- Discuss the type of coworking space business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
In your company overview, you will detail the type of coworking space business you are operating.
For example, you might specialize in one of the following types of coworking space businesses:
- Industry specialized coworking space: This type of coworking space caters to workers and entrepreneurs in a specific industry such as graphic designers, digital media professionals, or writers.
- Business incubator: This type of coworking space is specifically for startups and entrepreneurs to work on new business ventures in a supportive environment.
- Private coworking space: This type of coworking space is usually rented out by a single company.
- Open coworking space: This is the most common type of coworking space, where anyone can rent a desk or a room for a fee.
In addition to explaining the type of coworking space business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of clients served, the number of companies served, reaching $X amount in revenue, etc.
- Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry or market analysis, you need to provide an overview of the coworking space industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the coworking space industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your coworking space business plan:
- How big is the coworking space industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your coworking space business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your coworking space business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, schools, families, and corporations.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of coworking space business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other coworking space businesses.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other places people gather to work, such as conference rooms, libraries, and coffee shops. You need to mention such competition as well.
For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of customers do they serve?
- What type of coworking space business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you make it easier for your clients to acquire your services?
- Will you offer products or services that your competition doesn’t?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a coworking space business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type of coworking space company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide food and beverages, hot desks, conference rooms, or fitness rooms?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.
Place : Place refers to the site of your coworking space company. Document where your company is situated and mention how the site will impact your success. For example, is your coworking space business located in a busy retail district, a business district, or a standalone office? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your coworking space marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise in local papers, radio stations and/or magazines
- Reach out to websites
- Distribute flyers
- Engage in email marketing
- Advertise on social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your coworking space business, including answering calls, scheduling cleaning services for the coworking space, ordering office supplies, and collecting payments from clients, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your coworking space business to a new city.
To demonstrate your coworking space business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing coworking space businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a coworking space business or successfully running a small venture incubator.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will your coworking space have 20 desks, and will you charge $20 per day/per desk? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your coworking space business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a coworking space business:
- Cost of equipment and office supplies
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or testimonials from happy customers.
Writing a business plan for your coworking space is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert coworking space business plan; download it to PDF to show banks and investors. You will understand the coworking space industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful coworking space business.
Coworking Space Business Plan FAQs
What is the easiest way to complete my coworking space business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your coworking space business plan.
How Do You Start a Coworking Space Business?
Starting a coworking space business is easy with these 14 steps:
- Choose the Name for Your Coworking Space Business
- Create Your Coworking Space Business Plan
- Choose the Legal Structure for Your Coworking Space Business
- Secure Startup Funding for Coworking Space Business (If Needed)
- Secure a Location for Your Business
- Register Your Coworking Space Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Coworking Space Business
- Buy or Lease the Right Coworking Space Business Equipment
- Develop Your Coworking Space Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Coworking Space Business
- Open for Business
Don’t you wish there was a faster, easier way to finish your Coworking Space business plan?
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
Click here to see how a Growthink business planning consultant can create your business plan for you.
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The Ultimate Guide to Crafting a Winning Business Plan for Your Coworking Space
Table of contents:.
Business plans are cornerstone documents for any company, as they contain essential details about:
- The target market.
- The main competitors.
- Revenue and cost projections.
- Products, services, marketing strategies, and more.
This means writing down a detailed business plan is vital for both your team and outside investors looking to finance your coworking space. In this article, we’ll go over the essential topics your coworking business plan must cover and give you an outline for structuring the document in a logical way.
First, let’s start with a quick overview of business plans.
Business Plans 101 (High-Level Outline Template)
A business plan is a document describing how you plan to start, grow, and manage a business.
You can think of it as a high-level road map that shows where your business is today, where it will go, and how you plan to get it there.
There are tons of useful resources online on how to write a business plan, so we won’t reinvent the wheel here. You can check out QuickBooks’ guide to writing business plans , which proposes a 10-step structure:
- Executive summary , which is a one-page overview of the business.
- Company description , which includes things like history, objectives, and mission statement.
- Market research and potential , which describes your target market, including things like names, demographic info, location, company size (for B2B), and so on.
- Competitive analysis , which identifies other businesses selling similar goods or services to your target market.
- Product or service description , which explains what you’re planning to sell, how it works, and its unique benefits.
- Marketing and sales strategy , which goes over how you plan to get your product or service to your target market and convince them to buy.
- Business financials , which can include a whole host of documents like income statements, balance sheets, cash flow statements, and so on.
- Organization and management , which lays out your organizational structure and key role inside your company.
- Funding requests, which is an optional element for companies looking to raise funds.
- Appendix for official documents , which can be all sorts of documents useful to potential investors, like patents, certificates, deeds, licenses, and so on.
This outline can be a good starting point for any organization looking to build a business plan. In the next sections, we’ll cover 6 topics that are specific to coworking spaces and should be heavily featured in your business plan .
#1 Target Market and Differentiators
Your coworking business plan should answer two key questions near the start:
- Who’s your target market? For example, some coworking spaces focus on enterprise businesses looking for stable, long-term offices. Others target startups that need a small office and a meeting room but have the potential to expand rapidly.
- What differentiators are going to attract customers from that market to your space? This typically starts with location . Are you going to be near the city center, with lots of amenities nearby, or in a more quiet and secluded suburban area? If you want more details, we have an entire guide on how to choose the right location for your space. Amenities and price can also be additional differentiators.
#2 Main Coworking Product Mix
Your coworking product mix is made up of the products you sell.
As we said in our article on creating a strong product mix , new coworking spaces should focus on three main products:
- Open spaces
- Private offices
- Meeting rooms
It’s important for your business plan to establish what percentage of the space will be allocated to each product . Additionally, it should also include information about how much you plan to charge for them and why.
For example, desks in open spaces may be available for rent on a pay-as-you-go basis, while private offices should be included in membership plans. Meeting rooms can also be included in membership plans or be available for rent by the hour.
#3 Extra Revenue Generators
The bulk of your revenue typically comes from your main product mix. However, there are also plenty of ways to add extra revenue streams.
For example, you can diversify your regular membership plans and charge more for them based on 24/7 access, for example. Or, you can create virtual memberships for businesses that want to establish a legal presence and get a reliable correspondence address.
You can also consider a host of value-added services to help you generate more revenue like:
- Secure lockers
- Mailroom services
- Office relocation services
- Printing and copying services
- Custom office design, and more
For more details on this topic, check out our article on generating more revenue for your coworking space .
#4 Marketing and Sales Plan
Once you’ve established your revenue generators, it’s time to get into the details of how you plan to get customers through the door.
Here are some of the key questions you’ll need to answer here:
- Which marketing channels do you plan to use and why? This typically includes a mix of physical and digital touchpoints, like word of mouth, flyers, social media ads, and search engine optimization (SEO).
- How much will it cost for you to attract one customer (CAC)? CACs are highly dependent on the channel, so you’ll need to run a few initial tests before you can answer this one.
- How much will you earn from one customer over their lifecycle with your brand (CLTV)? You can break this down by customer segments, e.g., freelancers, startups, and enterprise companies. Keeping a pulse on your CLTV will also help you refine your ideal target persona over time.
- How much will you spend on marketing and sales every month? This is usually a pretty straightforward calculation if you have a few months of experience under your belt.
If you’re just getting started and don’t have any experience with marketing and sales, check out our article on the 14 proven strategies for attracting more coworking space members .
For most coworking spaces, the biggest recurring expense is the monthly lease (except for operators using management agreements ).
You also want to include other key costs here, such as:
- Space maintenance
- New purchases (desks, chairs, etc.)
#6 Revenue and Cost Projections
The goal of listing your revenue generators and expenses is to get a good idea of how much revenue you’ll need to cover your costs and turn a profit.
For instance, say you have $5000 of regular expenses every month. Your projections should show how long it would take for revenue to reach and surpass that number. This is perhaps the most important part of any business plan, especially if you’re looking to attract outside investors.
In general, it’s better to be conservative than to set unrealistically high expectations and fall way below them . It’s also a good idea to factor in some unexpected expenses in your calculations.
For example, if your regular expenses are $5000, you want to reach $5500-6000 of monthly revenue before considering the space profitable on a monthly basis.
This coworking revenue calculator is a useful resource for projecting profits and losses, as well as building charts for investor decks.
Establish and Grow Your Coworking Space with OfficeRnD’s Flex Startup Program
Writing a business plan is only one step in building a successful coworking space. You also need to find the right location, promote your space, and before everything else, choose the right coworking management software .
To help you out, we created the OfficeRnD Flex Startup program . It’s geared towards aspiring flex and coworking entrepreneurs and offers an attractive 50% annual discount on OfficeRnD Flex’s startup plan . Plus, you get access to Flex Academy – an expertly curated list of coworking resources that contain everything you need to build, manage and grow a successful coworking space in 2023 and beyond.
Apply for the Flex Startup program here.
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Coworking Business Plan + 6 months strategy launching [PDF Download]
Business Plan for Your Coworking Space
Developing a business plan for a coworking centre can be a long and complex process, especially if you are inexperienced. However, you are an operator going for your second space. In that case, a business plan will help you improve your strategy and better define the actions to carry it out because it is a living document that needs to be updated every year as the business grows .
Whether you are opening your first or second coworking space, before investing in the project , you should first conduct a feasibility study to determine the project’s profitability and confirm that there is a business opportunity.
Once you have validated the project’s feasibility, the next step is to draw up your business plan. The feasibility study and the business plan are closely linked; the first one assures you that there is a business and sets the economic objectives , while the second one proposes the strategy and the actions to be implemented to achieve the goals.
At HWL, we have completed nearly 50 coworking projects worldwide and have the experience in Coworking Development , knowledge and resources to help you create your business plan. In this article, we explain how we can help you to make this process less complicated.
Why do you need a business plan for a coworking space?
Making a coworking business plan is essential because:
- It defines the strategy of your company and the actions to be implemented.
- It plans the growth of your business.
- It projects the financial profitability of the business over the years.
- It reduces risks.
- It improves your operations.
- In addition, it can help you obtain financing.
What are the components of a coworking business plan?
Divide the business plan into three blocks:
1. Business model validation.
2. Business development.
1. Business model validation
You elaborate on the feasibility study . This section is critical because it will help you decide whether your coworking project will work.
It describes the company and provides critical conclusions once you finish the business plan. It includes:
- Overview of the company.
- Description of the partners, management team and key collaborators.
- Value proposition.
- Space allocation summary.
- Financial study summary.
A market study helps you to detect if there is a business opportunity for your coworking, who your demand is , what they need and how you can standby from your competition . It includes:
- Local environment analysis: Explore the location and detect surrounding services (bars, restaurants, gyms), nearby competitors, corporations, universities, coworking spaces, technology hubs, business centres, etcetera.
- Benchmarking of local and inspirational competitors: Compare data such as services offered, prices, size of space or number of workstations, common areas, value proposition and audience.
- Demand and needs exploration: Segment the audience and design your Buyer Persona (user type, generation, pains and needs, interests, habits, purchasing power).
- Value proposition: Identify the objectives and needs of your potential users and link them to the value proposition.
Hire an engineer to confirm the property is valid, comply with the coworking activity regulations , and obtain all the necessary permits.
- Space allocation programme: Define your space’s different uses and needs according to your demand. With the architectural programme, you obtain the productive units to generate income in your financial plan.
- Preliminary architectural study: Preliminary design of the space distribution following the space allocation programme’s indications. An architect must dump the information from the programme into AutoCAD to validate the productive units obtained.
10-year economic and financial study under three different occupancy scenarios will project monthly revenues, operating expenses and cash flow. It also will include the Capex and critical financial profitability metrics for the space as a service business model. As a result, you will get a perfect financial picture of the business and set the financial targets to be achieved.
2. Business development
You create the strategy of your coworking business and plan all the actions to be carried out to achieve the objectives established in the financial study.
This serves to attract , engage and retain potential members of your coworking space. It includes:
- Products and services: Describe all plans, memberships, included services and additional services.
- Promotions and pricing: Document the prices you will offer and compare them with your competitors. Also include plan opening promotions, contract promotions, etc.
- Key alliances: Proposal of potential partners (associations, universities, influencers, perks).
- Sales channels: Identification of the different brokers and specific sales channels for coworking.
- Communication plan: Define the channels through which you will communicate (social networks, website, posters, events, etc).
- Community development plan: Stages and actions for the development of the community (creation, development and retention) including a programme of activities for each stage.
- User experience: Design and describe the coworker journey in all its stages, from lead generation, conversion, on-boarding, and retention to exit.
- Lead Generation Strategy (Facebook and Google ads).
- Media plan.
- Blog and SEO strategy.
- Newsletter strategy.
Proposal of technological solutions for intelligent space and business management :
- Management software.
- Software integrations: electronic access, printing, platform, community, internet, etc.
- Business production tools: project manager, CRM, cloud workspace, etc.
- Description of the management team, their roles, responsibilities, tasks, remuneration and schedules for each position.
- Training plan for the team.
Describe how you are going to achieve the related objectives. It includes all the daily processes and tasks to be carried out by each department:
- Space or facility Manual.
- Team manual or employee handbook.
- Sales Manual (including the Coworking Agreement).
- Venue hire/ external events manual.
- Communication manual.
- Community manual (including the House Rules).
3. Strategy & timeline for the launch of your coworking business
Prepare to go to market three months before the opening and three months after .
We share with you a co-created launch strategy made by 20 coworking operators from different countries as a result of a workshop facilitated by Claire Carpenter from The Melting Pot and Vanessa Sans from HWL. You can download the launch plan with the leading strategies and action plans for setting up a coworking centre during the three months before and after its opening date.
As you can see, developing a business plan for your coworking is a worthwhile endeavour. Follow the structure we have proposed. You will become an expert capable of generating a marketing strategy, making an operational plan, and starting up and growing a thriving coworking centre. If you need help in the process, contact us .
If you enjoyed this article, you would like How to open a coworking space .
Featured picture courtesy of Aticco coworking .
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How to Write a Coworking Business Plan: Complete Guide
- January 22, 2023
👇 Check all our resources on coworking spaces 👇
Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your coworking, you will need to prepare a solid business plan.
In this article we go through, step-by-step, all the different sections you need in your coworking business plan. Use this template to create a complete, clear and solid business plan that get you funded.
1. Executive Summary
This is the first part and the most important section of your business plan. This is the first thing lenders and/or investors will have a look at.
Before we dive into the specifics, keep in mind the executive summary is a summary: keep it to 2 pages maximum. Indeed, your executive summary should briefly sum up the key sections of your business plan as well as presenting the funding ask.
Why businesses prepare business plans?
The funding ask (or funding requirement), as explained below, is the reason why any business would have a business plan. Business plans are prepared for one of the 3 following objectives:
- Obtain financing from a bank or any other lender (a SBA loan for example)
- Obtain financing from private investors (business angels, investment funds, etc.)
- Get approval for a private or public grant
How to write an executive summary for a coworking business plan?
The executive summary of your coworking business plan should include the following important information:
- Business overview : the name of your company, its legal structure, the business model (franchise vs. independent coworking business), your revenue model (is this membership only or do you also offer hot desk pricing?), and the type of services you will offer (conference rooms, cafeteria, events, workshops, etc.)
- Market analysis : how big is the coworking industry ? How many coworking spaces are there? How many members do they have on average? What type of customers are they (freelancers, companies renting out offices, etc.)? What’s the average pricing of your competitors?
- People : who is the management team? what is your/their experience in the coworking industry?
- Financial plan : what is your expected revenue and profitability for the next 5 years? When do you expect to reach the breakeven point ? Simply include here a chart of your key financial statements
- Funding ask : what type of funding do you need (loan, investment, grant)? How much do you need? How long will this last?
2. Business Overview
The business overview (or “Company description”) is the 2nd section of your business plan. It should cover all the important aspects of your coworking business: what is your business model (monthly memberships vs. hot desk / by-the-day desk rental, etc.), what type of members are you targeting (freelancers, entrepreneurs, corporates, etc.), who are your customers (individuals vs. businesses), how the company is structured, etc.
Let’s now see one by one the different pieces of information you should cover here:
As an introduction, briefly explain the genesis of the project: when, how and why you decided to start a coworking business? Why today?
Anything that shows investors or lenders passion and most importantly the background and rationale of you deciding to open a new coworking today goes a long way.
First, expand on your personal interest and passion for the industry. Are you keen to develop a community space where people get together, share ideas and create projects and businesses?
Another important addition here is to highlight why your business makes sense today.
For example, you might be an entrepreneur with experience in real estate who realised there was a strong demand in your city for women-only coworking spaces.
Are existing coworking spaces always busy? This may be a sign there isn’t enough coworking spaces in the area.
Or maybe existing coworking offices are rather basic and lack high-quality amenities (kitchen, cafeteria, noise-cancelling phone booths, etc.) professionals might need?
First, you should explain whether you open a new independent coworking, or buy out an existing coworking or buy a franchise instead.
Coworking businesses: leasing vs. buying
Lastly, you should expand on the real estate, which is a big component of any coworking business. Specifically, you should explain whether you intend to lease the facilities (the building) from a landlord or whether you purchased the real estate with a mortgage instead.
This is a pretty important point in your business plan, which we will come back to later in the financial plan section. Indeed, there are clear differences for an investor (or a lender) between a coworking business which owns the premises and another that doesn’t.
Whilst the latter has more flexibility (to increase / decrease rented space or cancel the lease altogether), the first strategy is eventually cheaper in the long term.
The Business Overview section of your coworking business plan should include all your revenue streams : the services and products you intend to offer.
Typically, coworking spaces make money from a variety of sources, which can be a combination of:
- Membership fees : almost all coworking spaces typically charge membership fees which give coworkers access to the amenities
- Desk rental : In addition to membership, many coworking spaces also give customers the ability to rent out desks by the day or a week. Whilst desk rental fees aren’t as attractive for a coworking owner vs. recurring membership fees, they provide them with extra revenue, especially when the coworking space isn’t at maximum capacity
- Renting conference and meeting rooms . Coworking spaces provide the coworkers access to fully-furnished meeting rooms and conference rooms. Depending on the membership, the meeting facilities may feature private audio or video call booths, printers, soundproofing, and other amenities. This can either be included in a membership fee, or sold as an additional service
- Virtual offices . Some members may need a physical address for their business and access to office-related services (bookkeeping, printing, PA services, etc.), thereby avoiding the need for employing administrative staff
- Events & workshops . Events and workshops can either be free (as a marketing strategy to attract new members) or paid (e.g. training sessions, sponsorships)
Another important part of the business overview section of your coworking space business plan is your target audience. To clearly define your target audience, try to answer the following questions:
- Who is your typical customer?
- What is their age range?
- Are they freelancers / entrepreneurs? Are they employees practicing remote working? Or are they companies / startups that rent an office in your coworking for their team?
The type of customers you’re after will define the design, layout, the amenities and the quality of the offering of your coworking.
For example, if you want to secure a few corporate contracts with companies that need an office space, you will likely need to design and equip separate office spaces with fixed desks, enough conference rooms, a large and well equipped kitchen (or even a cafeteria), a professional reception with virtual office services, etc.
Instead, if you decide to open a coworking space for freelancers and creatives, you might be fine with a large open space without fixed desks, and some phone booths / small meeting rooms. A basic kitchen and furniture can also do the trick, unless you are looking at a premium coworking space for entrepreneurs.
Finally, your business overview section should specify what type of business structure you opt for. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?
Coworking Financial Model
Download an expert-built 5-year Excel financial model for your business plan
3. Market Analysis
The market analysis is an important section of your coworking business plan. Here, you should show lenders and/or investors that you understand the coworking industry and its current trends.
More importantly, it should prove to anyone that opening a coworking in your area today makes complete sense based on market and competition dynamics.
For example, it’s always best to open a coworking in an area where competition is limited (as long as there is sufficient demand). Also, you wouldn’t necessarily open a basic coworking space only with a large open space in a premium downtown area where there are only corporations (as they would likely require separate offices and meeting rooms).
a) Coworking industry
The first part of your market analysis should answer the following 2 questions:
- What is your market size ? In other words, how big is the coworking industry in your area?
- How fast is your market growing today?
First, you will need to define what is your market. Is this the coworking industry in the US? Or are you referring specifically to the coworking sector in Chicago?
Keep in mind that it’s always better to be more specific. For example, it’s better to define your market at a city level where you plan to open your gym (Chicago here for example) vs. for the US as a whole.
How big is the coworking industry in the US?
Don’t get us wrong, it’s always good to add national figures as an introduction. For example, despite the pandemic, the number of coworking spaces and other shared, collaborative working spaces in the US was over 5,900 , up from 4,000 5 years earlier..!
So with an average size of 9,799 sq./ft. (100 people) , and average occupancy rate of 70%, and an average desk price for a monthly desk at $379 , we can estimate the US coworking market at $1.8 trillion. This isn’t too far from Wework’s own estimation at $1.6 trillion back in 2019.
How big is the coworking industry in your city?
Now, you can do the same math for your city / area. How big is the coworking industry? How many coworking spaces are there?
For example, assuming there are 130 coworking spaces in Chicago, and using the average monthly desk rental of $350 , you could assume the coworking sector in Chicago is worth about $35 million. In other words, each coworking space generates $600,000 in revenue per year as per our assumptions.
This is pretty much more interesting and accurate than the US market as a whole isn’t it?
How fast is the coworking industry growing in your city?
Now let’s look at growth.
Here, you can use the number of coworking spaces in your city. For example, assuming there were 120 coworking in Chicago in 2021 and 130 in 2022, we can assume your market is growing at +8% per year.
The 2nd step of your market analysis is to describe competition in your area. There are a few questions to answer here:
- How many coworking spaces are there in the area? How spacious are they (in sq. ft.)?
- Where are they located?
- What types of services do they offer (membership, hot desk, virtual offices, etc.)?
- Who are their customers (freelancers, corporates, etc.)?
- What is their average pricing point (per monthly fixed desk for example)?
Why you need a competitive analysis in your coworking business plan?
The conclusion to your competitive analysis should be that there is a strong rationale for opening a coworking business in your area today. For example it can be that:
- There is no high-end coworking space offering multiple conference and meeting rooms for corporates
- Existing shared coworking spaces are always overbooked
- There is no low-cost hot desk coworking space for remote workers on a small budget (under $200 a month) although many work from nearby coffee shops in the area
We already touched upon your target audience in the Business overview section earlier.
Here instead, the objective is to show lenders and investors that your target audience actually exists in the area where you plan to open a new coworking business. For example, you should be able to answer the following questions:
- What is the age range of your target customers in your area?
- What’s their average disposable income?
- What type of coworking space are they interested in primarily (high-end with extra services vs. a hot desk low-cost option)?
When you present customers here, you should always tie it into competition. Are coworking customers in your area finding what they want, or is there a gap to fill in the market instead?
But it doesn’t necessarily need to be about existing coworking members only. There might be many professionals and freelancers working in basic conditions in coffee shops for example. Some of them may be interested in joining your coworking instead.
4. Sales & Marketing Strategy
Your coworking business plan should include a sales & marketing plan where you outline your strategy to acquire your target customers.
For example, you should answer the following questions:
- What channel(s) do you plan to use (online vs. offline marketing channels)?
- How does it make sense for your target audience? For example, you might want to focus on online marketing (e.g. social media) for freelancers, whereas you may forge partnerships with corporates for large B2B customers
What is your unique selling proposition?
- What is your expected marketing budget?
- How will you track whether your marketing strategy is profitable? What’s your customer acquisition cost (CAC) ?
- What marketing strategies and promotional offers do you plan on using in the early days to attract your first customers?
Let’s expand a bit on a few questions below:
What marketing channels do coworking spaces use?
A few marketing channels coworking businesses typically use are:
- Email marketing
- Social media
- Pay-per-click campaigns (e.g. Google Ads )
- Partnerships & Sponsorships (especially for B2B customers)
In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.
A few examples of USPs are:
- Price : you may be cheaper vs. your competitors
- Location : your coworking might be closer to your target customers or in a busier street for example
- Quality : you offer higher-quality amenities (large fixed desks, lightning, etc.), services (cafeteria, coffee shop, etc.), a better design and layout, etc.
5. Management & Organizational Structure
The 5th section of your coworking business plan should be about people. It should include 2 main elements:
- The management team and their experience / track record
- The organizational structure: what are the different teams and who reports to whom?
Here you should list all the management roles in your company. Of course, the amount of details you need to include here varies depending on the size of your company. A franchise business with a number of coworking offices would need more detail vs. an independent coworking.
If you plan on running your business independently, you may write a short paragraph explaining who are the co-founders and/or senior managers (if there are any in addition to yourself). It’s important to highlight their experience in the industry and previous relevant professional experiences.
Organizational structure for a coworking
No matter how many leadership roles there are, you should now explain how you intend to run the company from a management standpoint.
What are the different teams (management, community, operations, marketing, etc.)? Note that you should include these details even if you haven’t hired anyone yet. It will show lenders and private investors that you have a solid hiring and management plan to run the business successfully.
A great addition here is to add an organizational chart that list all the roles, from Directors to managers, key supervisory roles, employees and contractors. Make sure to highlight with reporting lines who manages/supervises whom.
6. Financial Plan
The financial plan is perhaps, with the executive summary, the most important section of any business plan.
Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them.
There should be 3 sections to your financial plan section:
- Your historical financials (only if you already operate the business and have financial accounts to show)
- The startup costs of your project (if you plan to open a new coworking space, purchase new equipment, renovate your facilities, etc.)
- The 5-year financial projections
Historical Financials (if any)
In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.
If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.
Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a coworking business, startup costs are all the expenses you incur before you open the space to your customers. These expenses typically are:
- The lease deposit for the space you rent
- The design and renovation of the existing facilities
- The equipment and office furniture
The total startup costs depend on a number of factors, such as the size of your coworking space, the quality of the building (whether there is a lot or remodeling to do or not), the quality of the equipment and furniture, etc.
In general, the total cost to start a 3,000 square foot coworking business with 100 desks ranges anywhere from $94,000 to $126,500 .
In addition to startup costs, you will now need to build a solid financial model over 5 years.
Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.
As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions and benchmarks used for the projections ) for the appendix instead.
Your financial projections should answer at least the following questions:
- How much revenue do you expect to generate over the next 5 years?
- When do you expect to break even?
- How much cash will you burn until you get there?
- What’s the impact of a change in pricing (say 20%) on your margins?
- What is your average customer acquisition cost?
You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:
- The number of members over time ;
- Your expected revenue ;
- Operating costs to run the business ;
- Any other cash flow items (e.g. capex, debt repayment, etc.).
When projecting your revenue, make sure to sensitize pricing and the number of members as a small change in these assumptions will have a big impact on your revenue projections .
In addition to your projected financial statements, we strongly recommend you include important KPIs such as: revenue per member, customer acquisition cost , etc.
7. Funding Ask
This is the last section of your coworking business plan. Now that we have explained what your coworking business model is about, what’s your strategy, where you go and how you get there, this section must answer the following questions:
- How much funding do you need?
- What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
- How long will this funding last (your cash burn or runway )?
- Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)
Use of Funds
Any coworking business plan should include a clear use of funds section. This is where you explain how the money will be spent.
Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation of the building?
Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like for our coworking financial plan , you won’t have any issues answering these questions.
Coworking Space Business Plan [Sample Template]
By: Author Tony Martins Ajaero
Home » Business ideas » B2B Industry » Coworking Space
Are you about starting a coworking space business ? If YES, here is a detailed sample co-working space business plan template & feasibility report you can use for FREE .
Entrepreneurs always wish to cut overhead cost as low as they can and still maintain professionalism in their businesses. One of the easiest ways of cutting overhead cost is by renting a coworking space. With the increase in demand for co-working spaces, any investor that decides to start his or her own coworking space business is sure going to make good returns on his or her investment.
A Sample CoWorking Space Business Plan Template
1. industry overview.
Co-working space business falls under the serviced office leasing (SOL) industry and operators in this industry rent or lease fully furnished office space to businesses on a part-time or as-needed basis.
The serviced office leasing (SOL) industry also provides virtual office and conference room leasing options to their clients. It is important to state that firms that provide conventional commercial leasing options are not part of the serviced office leasing (SOL) industry.
For $49.99 a month, anyone can work on Wall Street. The rising trend of the virtual office, which effectively functions as a high-cost PO box, is one of the services offered by the $2.4-billion Serviced Office Leasing (SOL) industry.
If you a close observer of the Serviced office leasing (SOL) industry, you will agree that the industry struggled during the recession when corporate profit declined and businesses closed shops . On the other hand, as the economy recovered, the industry experienced an upsurge in demand for its services.
Going forward, the revenue generated by players in this industry will continue to grow as the number of telecommuters in the workforce increases.
The Serviced office leasing (SOL) industry is indeed a growing industry and pretty much active countries like the united states, Japan, Singapore, Switzerland, United Kingdom and United Arab Emirates. Statistics has it that in the United States of America alone, there are about 781 licensed and registered companies in this industry, employing about 3,358, and the industry rakes in $2bn annually.
The industry is projected to continue to grow at 12.7 percent rate going forward. Regus PLC has the dominant market share in this industry. A recent publication released by IBISWorld shows that the Serviced office leasing (SOL) industry is in the growth stage of its life cycle.
The report projected that industry value added, which measure’s the industry’s contribution to the economy will raise at an estimated average annual rate of 7.5 percent from 2011 to 2022. The report further stated that GDP will grow at an annualized rate of 2.2 percent during the same period, indicating that the industry is growing faster than the economy as a whole.
Businesses are increasingly turning to industry companies to rent or lease workspaces, including fully furnished offices, virtual offices and conference rooms. Renting or leasing office space is a cost-effective alternative to buying commercial property.
One of the major reasons why people subscribe to co-working spaces is because they want to maintain a business address in a high – profile business district at the lowest possible cost.
So, if your intention is to start a coworking space business and also to maximize profits, then you must ensure that your lease office facility in a high – profile business district. It will make it easier for you to market and attract clients. It is expensive to lease office facility in such areas, but you stand the chance of recouping your investment and also making profits.
From all available statistics, it is safer to say the Serviced office leasing (SOL) industry is growing steadily despite the competitive nature of the industry. One thing is certain, if the offices you offer for rent are well positioned, you have the required business skills, and business networks, you are likely not going to struggle to compete in the Serviced office leasing (SOL) industry.
The serviced office leasing (SOL) industry is still open to any aspiring entrepreneur who has the startup capital to start his or her own co-working space business. As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition in the industry.
2. Executive Summary
Monica Donavan® Co-Working Space Rentals, Inc. is a registered real estate business. We have been able to secure a standard and well – positioned facility in a central and busy district in Brooklyn Park – Minnesota.
We are a co – working space company that is set to compete in the fast – growing shared office rental industry not only in Brooklyn Park – Minnesota, but also throughout the United States market because we intend opening our co – working facilities in key cities across the United States.
Monica Donavan® Co-Working Space Rentals, Inc. will offer co-working space facilities to entrepreneurs and investors who may not want to shoulder the responsibilities of owning a standard office facility. Our business goal is to become one of the leading co-working space rental operators in the United States and we will make sure that we do all we can to compete favorably in the industry.
Our workers are going to be selected from a pool of certified, creative and highly experienced workers in and around Brooklyn Park – Minnesota. We will make sure that we take our workforce through the required trainings that will position them to meet the expectations of the company and to compete with leading co-working space operators in the United States.
At Monica Donavan® Co-Working Space Rentals, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Monica Donavan® Co-Working Space Rentals, Inc. is owned by Monica Donavan and other investors (shareholders).
3. Our Products and Services
Monica Donavan® Co-Working Space Rentals, Inc. was established with the aim of maximizing profits in the serviced office leasing (SOL) industry as a co – working space operator. We want to compete favorably with the leading co – working space operators in the United States which is why we have a competent team that will ensure that our facility meets and even surpass our customers’ expectations.
We will work hard to ensure that Monica Donavan® Co-Working Space Rentals, Inc. is not just accepted in Brooklyn Park – Minnesota, but also in other cities in the United States of America where we intend opening our chains of co – working facilities. Our facility and services are listed below;
- Lease or rent fully furnished workspaces
- Lease or rent virtual offices
- Lease or rent conference and meeting rooms
- Provide telecommunication services to leases
- Provide other business services to leases
4. Our Mission and Vision Statement
- Our vision is to be the standard bearer wherever we have our co – working space facility throughout the United States of America.
- Our mission is to provide a standard co-working space that can attract some of the leading entrepreneurs who may not want to own their personal office facility.
- We want to build a co-working space business that can favorably compete with other leading brands in the serviced office leasing (SOL) industry in the United States.
Our Business Structure
Monica Donavan® Co-Working Space Rentals, Inc. is a co-working space company that intend starting small in Brooklyn Park – Minnesota, but hopes to grow big in order to compete favorably in the industry in the United States. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.
At Monica Donavan® Co-Working Space Rentals, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- General Manager
Human Resources and Admin Manager
- Sales and Marketing Executive
Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
- Serve as project manager of the organization; works directly with employees
- Develops strategic plan by studying the trends in the serviced office leasing (SOL) industry and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements
- Maintains quality service by establishing and enforcing organization standards.
- Coordinate employee efforts, and facilitate communications between management and the workforce
- Ensures that the organization works in line with international best practices.
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects
- Responsible for handling business research, market surveys and feasibility studies
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Sales and Marketing Manager
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Responsible for making sure that our co-working space meet the needs of the people that work in them
- Overseeing services including security, parking, cleaning, catering, technology and so on
- Supervising multi-disciplinary staff including cleaning, maintenance, grounds and security
- Ensuring that basic facilities such as water and heating, are well-maintained
- Ensuring that facilities meet government regulations and environmental, health and security standards
- Overseeing building projects, renovations or refurbishments
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations promotional campaigns to ensure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
Monica Donavan® Co-Working Space Rentals, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured co-working space business that can favorably compete in the serviced office leasing (SOL) industry in the United States.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Monica Donavan® Co-Working Space Rentals, Inc.;
Our world – class facility is indeed a plus to the business. Another positive that we have is the fact that we have a well – balanced team running the business.
Part of what may likely hinder us from optimizing our potentials in this business is that we may not be able to raise capital to acquire choice properties that can attract high – paying clients for our co – working space.
In this age and time where entrepreneurs are looking for means to cut down startup expenses, a business such as co-working space facility comes in handy. The rising popularity of shared office spaces is driving industry growth and influencing workplace transformations. The fact that more people are embracing entrepreneurship means that there are great opportunities for us.
A major threat to our business is the rise of the concept of virtual office. Aside from the fact that it is cheaper, most virtual office rental businesses tend to provide communication and physical address services without bearing the financial burden to maintain the office facility.
7. MARKET ANALYSIS
- Market Trends
A major trend shows that workplace transformations use tech and design to maximize office space and increase productivity, providing for cost-savings from a bottom-up perspective. Co-working spaces are designed to reduce the square footage a company needs per employee.
A recent trend shows that some operators in the industry are scaling the co-working model to fit the operational and cultural needs of service-based industries.
The incentives of workplace transformations are twofold. The first is cost-effectiveness while the second, less tangible yet arguably more impactful incentive is the commoditization of modern workplace culture as characterized by Silicon Valley startups.
Even though cost-savings have long-been the most obvious incentive of co-working spaces, the perk of enabling large corporations to rebrand themselves in a piecemeal way is turning heads among Fortune 500 companies operating in the most traditional of industries.
Lastly, long term, the cost-efficiency of workplace transformations will likely remain the primary incentive. Reducing square footage per employee while maintaining or even boosting employee satisfaction is a win-win, no matter the industry.
However, the cultural incentives of workplace transformations will continue to expand and evolve with the business environment itself.
8. Our Target Market
Before starting our co – working space rental business in Brooklyn Park – Minnesota, we conducted a thorough market survey and feasibility studies and we are certain that there are loads of budding entrepreneurs who need small office spaces to run their business.
In view of that, we have created strategies that will enable us reach out to various groups of people who we know will need our facilities especially service – based business.
Our competitive advantage
Because of the grow competition in this line of business, there is an increasing degree of related business activities, with big players dominating the market.
Our competitive advantage is anchored on the state of the art office facility that we have. So also, we have a team of certified, creative and highly trained workers. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the industry.
Another strength that counts for us is the location of our co-working space; they are located in one of the highly suitable areas for such business in Brooklyn Park – Minnesota.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Monica Donavan® Co-Working Space Rentals, Inc. is established with the aim of maximizing profits in the serviced office leasing (SOL) industry and we are going to ensure that we do all it takes to meet and surpass the expectations of our clients.
Monica Donavan® Co-Working Space Rentals, Inc. will generate income by offering the following facility and services;
10. Sales Forecast
One thing is certain, there would always be entrepreneurs who need to cut cost of starting the business hence the need to rent a small office space in a shared office facility.
We are well positioned to take on the available market in the industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our business to enviable heights.
We have been able to examine the shared office leasing (SOL) market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Monica Donavan® Co-Working Space Rentals, Inc. It is based on the location of our facility and of course our target market;
- First Fiscal Year: $550,000
- Second Fiscal Year: $950,000
- Third Fiscal Year: $2 million
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any competitor offering same facility as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share.
Our unique selling proposition is that we are well positioned, we offer a state of the art facility and people can easily access our facility. Monica Donavan® Co-Working Space Rentals, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Advertise our co-working space business on national dailies, local TV and radio station
- Promote our co-working space facilities online via our official website and all available social media platforms
- Introduce our business by sending introductory letters alongside our brochure to budding entrepreneurs, established entrepreneurs and key stake holders in Brooklyn Park – Minnesota
- Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
- Position our signage / flexi banners at strategic places in and around Brooklyn Park – Minnesota
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for entrepreneurs and business people in the whole of Brooklyn Park – Minnesota and other cities in the United States of America where we intend opening our shared office facilities which is why we have made provisions for effective publicity and advertisement of our business.
Below are the platforms we intend to leverage on to promote Monica Donavan® Co-Working Space Rentals, Inc.;
- Place adverts on both print (newspapers and real estate magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
- Install our billboards in strategic locations all around Brooklyn Park – Minnesota
- Distribute our fliers and handbills in target areas
- List our co – working space business in local directories / yellow pages
- Advertise our coworking space facility in our official website and employ strategies that will help us pull traffic to the site.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than what our competitors are charging their clients in Brooklyn Park – Minnesota.
- Payment Options
The payment policy adopted by Monica Donavan® Co-Working Space Rentals, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Monica Donavan® Co-Working Space Rentals, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for renting our co – working office facility without any stress on their part.
13. Startup Expenditure (Budget)
When it comes to calculating the cost of starting a coworking space facility business, there are some key factors that should serve as a guide.
The number of facilities needed to kick start the business and the size and location of the facility determines the total cost of setting up the business. Below are some of the basic areas we will spend our startup capital in setting up our co-working space rental business;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $15,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $5,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing facility for the business – $450,000
- The total cost for facility remodeling to fit into the type of co – working space facility – $150,000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $140,000
- The cost of launching a Website – $600
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about nine hundred and fifty thousand ($950,000) U.S. dollars to successfully set up a medium scale co-working space facility rental business in the United States of America.
Generating Funds/Startup Capital for Monica Donavan® Co-Working Space Rentals, Inc.
Monica Donavan® Co-Working Space Rentals, Inc. is a private business that is solely owned and financed by Ms. Monica Donavan and her partner. They do not intend to welcome any external business partner which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $350,000 (Personal savings $200,000 and soft loan from family members $100,000) and we are at the final stages of obtaining a loan facility of $600,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Monica Donavan® Co-Working Space Rentals, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to lease / rent our co – working space facility a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Monica Donavan® Co-Working Space Rentals, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re-training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check:>Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID : In Progress
- Securing a standard facility and reconstructing the facility to fit into the kind of facility we want to manage: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift : In progress
- Creating official website for the business : In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement : In Progress
- Shared Office Space Business Plan [Sample Template]
- 8 Licenses and Permit Needed to Open a Coworking Space
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- 6 Best Types of Music to Play in Coworking Spaces
- How to Value a Coworking Business [Best Valuation Method]
- How to Start a Shared Workspace Company
- Pros and Cons of Coworking Space for Startups
Coworking Space Business Plan
Last updated on November 28th, 2023
Maria Gonzalez is responsible for creating a unique coworking facility in the center of Miami called Collaborative Canvas Coworking. Freelancers, startups and small enterprises may take use of our facility’s many amenities such as our private offices, conference rooms and event spaces. Maria who has been managing workspaces and cultivating communities for over fifteen years, infuses Collaborative Canvas with her enthusiasm and knowledge. Our state-of-the-art facilities, community-focused atmosphere and dedication to encouraging teamwork and fresh ideas among Miami’s varied business community are what set us apart from the competition.
Mission: To provide Miami’s working class a boost by way of a motivating, team-oriented workplace. Our goal is to create a community where members may learn from one another and flourish in an atmosphere of mutual support and creative freedom.
Vision: To be recognized as Miami’s premier coworking space, renowned for encouraging innovation and promoting professional growth. Our mission is to become universally recognized as the driving force behind Miami’s diversified talent landscape, innovation and community involvement.
At a CAGR of 22.4%, the market is expected to increase from its 2022 valuation of $13.1 billion to $50.15 billion in 2028. The expansion is fueled by the emergence of the gig economy, the growing expense of conventional office space, the demand for flexibility and the need for community.
Business Name: Collaborative Canvas Coworking
Founders: Maria Gonzalez
Legal Structure: LLC
Goals & Objectives:
✔️ Membership Growth: Increase membership by 20% annually, focusing on attracting a diverse mix of freelancers, startups and small businesses.
✔️ Community Engagement: Hold seminars and networking events once a month to help members make connections and advance their careers.
✔️ Brand Recognition : Establish a strong brand presence in Miami through targeted marketing campaigns, social media engagement and partnerships with local businesses and organizations.
✔️ Facility Expansion: Add more private offices and conference spaces to the building during the next three years in response to member input and demand.
✔️ Revenue Diversification: Introduce new revenue streams such as virtual office services, event space rentals and membership tier options.
✔️ Meeting and Conference Facilities: For meetings, presentations and video chats the shared office has cutting-edge conference rooms and meeting rooms. These rooms are a flexible resource for a variety of business purposes since they may be reserved by both members and non-members and have state-of-the-art audio-visual equipment.
✔️ Virtual Office Services : The coworking space provides its members with a professional mailing address via its Virtual Office Services. These services provide a level of professionalism and ease for remote and mobile professionals by processing mail and shipments, answering phones and taking messages.
✔️ Event Spaces: Workshops, networking meetings and social gatherings would all be suitable for the space’s many multipurpose rooms. Members may use these facilities which both promotes community involvement and provides a convenient location for a variety of events.
✔️ High-Speed Internet and IT Support: Wi-Fi and wired internet connectivity both of which are available here are essential in any contemporary workplace. IT assistance on-site to help with any technological difficulties that may arise making for a more efficient and trouble-free work environment for everyone involved.
✔️Printing and Office Supplies : The area is also furnished with basic office supplies like paper, pencils and staplers ensuring that members have all they need for effective functioning.
Social Media Marketing – $15,000 (30%)
✔️ Platform Focus : Concentrate on networks like LinkedIn, Instagram and Facebook which are popular with professionals and companies. Showcase the shared office space with media including member testimonies and highlights from events.
✔️ Paid Ads : Use targeted ads to reach freelancers, startups, small businesses and remote workers. Utilize the platforms’ algorithms to target based on professional interests and behavior.
✔️ Content Strategy : Updates on the coworking space, its facilities and upcoming events. Weekly member profiles and productivity/work-life balance advice/articles
Website and SEO – $10,000 (20%)
✔️ Website Revamp : Make sure your website is polished and professional, highlighting the benefits of working out of your coworking space and the praise of those who have used it.
✔️ Blog Content : Publish articles on topics like entrepreneurship, remote working trends and productivity tips to drive organic traffic.
✔️ SEO : To rise in search engine results emphasize phrases like “Miami business scene” and “coworking space.”
Email Marketing – $5,000 (10%)
✔️ Newsletter : Produce a monthly newsletter informing members of the coworking space’s latest happenings, forthcoming events, member successes and any discounts or deals being offered.
✔️ Segmentation : Tailor emails for different segments such as entrepreneurs, freelancers and local businesses.
Local Partnerships – $7,000 (14%)
✔️ Business Events : Partner with local business events, workshops and seminars offering your space for hosting or as a networking venue.
✔️ Collaboration with Educational Institutions : Collaborate with educational institutions to provide student-run initiatives, internships and networking mixers.
Influencer and Community Collaborations – $6,000 (12%)
✔️ Collaborations : Partner with local business influencers, industry leaders or community figures for workspace sessions leveraging their audience for broader reach.
✔️ Sponsorship Deals : Provide the shared office for free to local organizations or businesses in return for promotion on social media and name recognition.
Direct Mail and Local Advertising – $4,000 (8%)
✔️ Direct Mail : Send out flyers or promotional materials to local businesses, educational institutions and professional organizations.
✔️ Local Media : Invest in local business magazines, radio stations and community event sponsorships to develop a strong local presence.
Referral Program – $3,000 (6%)
✔️ Referral Incentives : Create a referral scheme where existing members may earn perks for bringing in new clients to the coworking space.
Social Media Marketing
✔️ Brand Voice and Visual Identity: Create a tone for your coworking space’s brand that will appeal to freelancers, independent contractors and small business owners by highlighting its cutting-edge features, stimulating community and time-saving layout. Use a similar visual design across media showing your space’s interiors, events and community activities.
✔️ User-Generated Content: Encourage members to share their work experiences and tag your space. Repost these stories to build credibility and showcase the vibrant community in your space.
✔️ Live Sessions: Host live tours of your space, Q&A sessions with members and discussions on topics relevant to freelancers, startups and remote workers to engage your audience.
Search Engine Marketing (SEM) and Local SEO
✔️ Ad Copy: Focus on the unique aspects of your coworking space such as high-speed internet, networking events or flexible membership plans.
✔️ Website Optimization: Make sure that keywords like “coworking space,” “Miami office rental” and “professional networking” are used to optimize your website for search engines and that it highlights the qualities of your space and member testimonials.
✔️ Google My Business: Regularly update your listing with photos, available amenities and contact information to improve local search visibility.
✔️ Newsletter: Share updates about new facilities, networking events, special offers and highlight success stories or achievements of current members.
✔️ Segmentation: Customize emails for different segments such as entrepreneurs, digital nomads, small businesses and local community groups.
Local Partnerships and Sponsorships:
✔️ Business and Networking Events: To get your name out among local company owners and executives, consider hosting or sponsoring local business events and seminars.
✔️ Collaboration with Educational Institutions: Partner with universities and training centers for student projects, career fairs and networking events.
✔️ Educational Content: Create blog posts, videos and infographics about entrepreneurship, work-life balance and productivity tips.
✔️ Workspace Behind-the-Scenes: In order to convey a flavor of what it’s like to work in a coworking space, share some anecdotes and pictures from community events and the day-to-day routine.
Go To Market Strategy
Online Presence and Community Engagement
✔️ Professional Website: Create a website that describes the benefits of working at your coworking space. Add a gallery exhibiting the space and community events and a simple booking system.
✔️ Content Marketing: Regularly publish blog posts or articles on topics like entrepreneurship, work-life balance and productivity tips which can help boost search engine rankings.
✔️ Local Directory Listings: Ensure your space is featured in local business directories and coworking space aggregators to increase local search presence.
✔️ Partnerships: Collaborate with local companies, educational institutions and professional associations to give promotional incentives and create a strong network within the local community.
Space Launch Event and Promotional Offers
✔️ Grand Opening Event: Throw a party to introduce people to your shared office. Organize a tour and networking event for area sole proprietors, independent contractors and small company owners.
✔️ Introductory Discounts: Provide special rates for first-time members or bundle packages for different services to attract a diverse clientele.
Digital Marketing and Customer Relations
✔️ Social Media Campaigns: Showcase your space’s amenities, events and member feedback on social media sites like LinkedIn, Instagram and Facebook. Engage your audience by revealing some of the process.
✔️ Email Marketing: Regularly send newsletters with updates on new amenities, upcoming events and community highlights.
✔️ Loyalty Program: Create a program that rewards loyal members with perks such as discounts, additional access to meeting rooms or guest passes.
Brand Awareness and Public Relations
✔️ Local Media Outreach: Make connections with regional business publications, blogs and community channels to promote your coworking space via features, interviews and other means.
✔️ Community Involvement: Participate in local business events, workshops or sponsor local community programs to increase brand visibility.
✔️ Influencer Partnerships: Join forces with prominent businesses or thought leaders in your area to host events or produce content you can share on social media.
✔️ Analytics and Feedback: Gather frequent feedback from members and use tools like Google Analytics to track the success of your marketing and engagement efforts.
✔️ Adaptation: Stay flexible and ready to adjust your strategies based on performance metrics, member feedback and changing market trends.
Maria Gonzalez is a creative entrepreneur with a love for community building and considerable expertise in company development and workspace management and behind Miami’s newest coworking endeavor. Her career started with a passion for encouraging others to work together and think creatively, which eventually led her into business and volunteering. Maria has the business administration degree and experience, as well as the specific training in workplace design and management, to plan and implement a productive shared office space.
Maria has spent her career participating in a wide range of team-based projects and workplace initiatives, honing her skills in the art of designing spaces that are not only practical but also inspiring and fruitful for their occupants’ work. She is well regarded among Miami’s business elite due to her expert knowledge of the unique challenges faced by sole proprietors, young companies and established SMEs.
In a city like Miami, coworking space is a reflection of her entrepreneurial spirit. She wants to do more than simply let out office space so she’s working to create a community of entrepreneurs that can help each other out. The power of collaboration, making connections and creates a space where both seasoned professionals and newbies may thrive.
At the center of her coworking space is a dedication to quality and innovation. The location is intended to be a center for networking and professional growth thanks to its cutting-edge facilities, adaptable workstations and thriving community vibe.
Positions and Responsibilities
Chief Executive Officer (CEO) – Maria Gonzalez
The major duty of managing the coworking space and determining its long-term direction. Her responsibilities include serving as the principal decision-maker, managing the space’s resources and representing the company at industry events and discussions. Another important part of her job is making sure the board and the operational teams are talking to one other.
The Community Manager is in charge of the general vibe and smooth functioning of the shared office. Essential for fostering member collaboration and productivity, responding to member questions and managing the community’s inbox.
A Membership Coordinator’s main responsibilities are around members: new ones, current ones and the relationships between all of them. New members will have a pleasant onboarding experience and they will get continuing assistance. This function is vital in recognizing and serving the different demands of the coworking community.
Event and Workshop Organizer
This role requires the coordinator to organize and run a variety of workshops and seminars for employee training and networking. The purpose of the Event and Workshop Organizer is to improve the coworking experience and encourage community participation via the creation of interesting, engaging and relevant programming in collaboration with members and external partners.
Front Desk Staff:
A coworking space’s receptionist is often the initial point of contact for members, guests and anybody else with questions about the space.
Flexible Workspace Solutions:
✔️Perfect for today’s entrepreneurs, freelancers and remote workers, state-of-the-art coworking facilities provide ergonomic furniture and lightning-fast internet.
✔️Variety of options including hot desks, dedicated desks and private offices to suit different working styles and needs.
Meeting and Conference Facilities:
✔️Fully-equipped meeting and conference rooms with advanced audio-visual technology, ideal for team meetings, client presentations and video conferencing.
✔️Booking availability for both members and non-members with flexible scheduling options.
Virtual Office Services:
✔️Professional business address for mail and package handling.
✔️Having a professional sounding answering service and office staff may do wonders for a company’s reputation.
Event Spaces and Networking Opportunities:
✔️Versatile event spaces for hosting workshops, seminars and networking events fostering community engagement and professional development.
✔️Meet-ups, talks and other social activities are held often around the community.
Professional Development Programs:
✔️Workshops and seminars focused on skill development, entrepreneurship and business growth.
✔️Collaborations with industry experts and local businesses to provide valuable learning experiences.
With a CAGR of 22.4% between 2022 and 2028 the market is expected to rise from its estimated $13.1 billion in 2022 to $50.15 billion in 2028. Number of factors contributing to the expansion of this market including the popularity of the gig economy, the rising expense of conventional office space, the need of adaptability and the pursuit of social interaction.
Several trends are shaping the coworking space industry in the USA:
✔️ Specialization : Tech startups, creative firms and social enterprises are just a few of the sorts of companies that certain coworking spaces cater to.
✔️ Technology integration: Coworking spaces are integrating new technologies to improve the experience for its members such as smart building technology, virtual reality and augmented reality.
✔️ Amenity expansion : Coworking spaces are providing a greater variety of services such as fitness centers, cafés and event spaces, to attract and maintain members.
✔️ Location expansion: Coworking spaces are expanding into new markets including suburban and rural areas, to meet the growing demand for flexible workspaces.
✔️ Limited Space or Overcrowding: When the coworking space is full it might be difficult for customers to concentrate or locate an open desk. During peak times or when many people are competing for few resources like conference rooms this may become a major issue.
✔️ Network and Connectivity Issues: Reliable internet is crucial for a coworking space. Customers may experience frustration with intermittent connectivity, slow speeds or technical glitches which can significantly hinder their productivity.
✔️ Noise Distractions: Noise is often a major disruption in open offices. This may include loud discussions, phone calls or simply the overall hum of a busy atmosphere making it difficult for certain individuals to focus on their task.
✔️ Privacy Concerns: Open floor plans might make customers feel like they have no personal space. Concerns may emerge around the privacy of one’s chats the content shown on one’s display or one’s possessions.
✔️Difficulty in Booking Resources: Members could find it tough to book meeting places or equipment owing to excessive demand or a cumbersome reservation procedure. Those who need them for client meetings or crucial work may find this frustrating.
✔️Expanding or Optimizing Space: It may be necessary to either add square footage or reorganize the current setup in order to accommodate everyone. Space may be used more effectively via the use of hot desking or the inclusion of private rooms. Larger groups and companies may be interested in moving in because of this growth.
✔️Enhanced IT Infrastructure: You may position your shared office as a trustworthy location for in-demand IT work by investing in a strong IT infrastructure to address connection difficulties. Providing members with access to IT support services is another great perk.
✔️Quiet Zones and Soundproofing: Creating designated quiet zones or soundproof booths can address noise distractions. This initiative can attract professionals like podcasters, therapists or anyone needing a quiet environment diversifying your member base.
✔️Enhanced Privacy Solutions: You may make your area more appealing to members who deal with sensitive information by using privacy-focused solutions like privacy screens, safe storage and private phone booths.
✔️ Streamlined Booking System: Improving the booking process for available resources may lead to happier members. This may take the form of an intuitive app or website function that enables instantaneous scheduling and alerts.
Target Market Segmentation
✔️ Miami-Dade County Residents: Pay close attention to the local independent workers, sole proprietors and small businesses. This comprises both developing talents in many areas as well as experienced specialists in the field.
✔️ Miami Neighborhoods: Target specific neighborhoods like Brickell, Coral Gables or the Miami Design District known for their dynamic business scenes and entrepreneurial communities.
✔️ Age Groups: Consider the demands and preferences of a wide range of employees including recent graduates, mid-career professionals and seasoned businesspeople.
✔️ Income Levels: Offer a range of coworking solutions from cost-effective hot desks for budding entrepreneurs to premium private offices for high-income professionals.
✔️ Cultural Diversity: Embrace Miami’s multiethnic atmosphere by providing a workplace that is open and accepting of all people.
✔️ Aspiring Entrepreneurs and Freelancers: Find people who are just starting out in business for themselves or as freelancers and provide them with a safe space to learn, develop and make connections.
✔️ Professional Consultants and Remote Workers: Cater to the needs of professionals who require a reliable, well-equipped space for their day-to-day operations.
✔️ Creatives Seeking Collaborative Environments: Create an environment that encourages creativity and interaction amongst professionals from different disciplines.
✔️ Startups and Small Businesses: Focus on small teams and startups looking for a collaborative environment to grow their businesses.
✔️ Digital Nomads and Remote Workers: With the increase of remote work, targeting digital nomads and remote workers of bigger organizations may open up a new market area.
✔️ Event-Based Workspace Needs: Cater to clients who require meeting spaces for specific events, workshops or team off-sites.
✔️ Total Addressable Market (TAM) for Coworking Space: The potential clientele for shared office spaces in the United States is included in your coworking space’s Total Addressable Market. Those who work from home those who own small enterprises and those who work for bigger companies that need adaptable workplace options. Given the rise of freelance labor and other forms of flexible employment as well as the general expansion of the job market TAM’s reach is impressive. The total addressable market (TAM) in 2023 is likely to be large due to factors such as technology development, shifting worker demographics and post-pandemic changes in work habits.
✔️ Serviceable Addressable Market (SAM) for Coworking Space: The SAM for your shared office space represents a subset of the total addressable market. It’s a measure of how much of the market your coworking space can really attract. Location in Miami where special amenities (such as high-speed internet, meeting rooms and event spaces) and the types of clients you want to attract (digital nomads, local startups or small business teams) are all factors that will affect your SAM. If your business model is geared toward tech startups or delivering high-end facilities to professional consultants your SAM will look different from one that caters to creative freelancers or places a priority on cost-effectiveness.
✔️ Serviceable Obtainable Market (SOM) for Coworking Space: Your coworking space might reasonably anticipate to take advantage of the Serviceable Obtainable Market part of the SAM. Because it indicates the share of the market that is within reach given your existing resources, market position and competitive environment this indicator is crucial. The success of your coworking space’s marketing and community-building efforts, the quality of your facilities and services, the efficacy of your operational management and the reputation and brand value of your place all factor into its SOM. The SOM gives you a realistic objective to shoot for in terms of client acquisition, revenue projections and market penetration helping you zero in on and dominate the most lucrative subsets of the coworking industry.
Market Demand and Workplace Trends:
Changes in how people work have influenced the need for shared office spaces in cities like Miami. A rise in the number of freelancers and startups as well as the popularity of remote work have increased demand for adaptable office space. This has been boosted by developments in virtual collaboration technology. This may be capitalize by welcoming a wide range of customers such as mobile corporate teams, solo professionals and digital nomads.
Other local coworking spaces as well as regular office leases and home offices also provide competition in the coworking industry. Unique features, community-building events, outstanding service and a focus on certain demographics may help your establishment stand out from the competition. Emphasizing what makes your coworking space stand out from the competition is crucial if you want to build a loyal member base.
Maintaining compatibility with cutting-edge software and hardware is essential for any contemporary coworking environment. It’s crucial to put money into fast internet, cutting-edge printing and scanning technology and user-friendly ergonomic workplaces. Improving member involvement and streamlining operations via the use of digital technologies including an intuitive website, online booking systems and customer relationship management software.
Verify that all company operations, property laws and safety policies are in accordance with local rules. If you want to run your coworking space legally and effectively, you need also keep up with local zoning regulations and occupancy limits.
The success of your coworking space may be affected by the economy particularly the state of finances among local firms and independent contractors. The demand for workspace and your capacity to provide it, may be affected by economic fluctuations experienced by your members. Pricing and membership plans that are flexible in response to economic changes can help you weather the storm.