Coworking is an arrangement by which employees of different companies share common office space. These spaces allow workers beat loneliness and the distractions of working at home while businesses save on the cost of space, equipment, utilities, and services. According to Fortune, employers and employees prefer the flexibility and affordability of coworking spaces in these uncertain times. The boom in coworking has opened up the sector to entrepreneurs to establish coworking spaces and operate them as businesses. Some tips on getting a coworking facility business plan right:
Know What Will Work for You
You must have a budget that allows you to buy or lease office infrastructure of an adequate size capable of generating the desired revenues and profits. A small office space might be easier on the pocket, but even after operating at capacity, the profit generated might not justify the effort. You should ideally look at properties of 5000 sq. ft or more to let you set up enough workstations, a lounge, reception, panty, bathrooms, etc., however, the larger the area, the greater the break-even point.
Decide on a Niche
It can help to know the target audience and their needs and wants so that you can cater to them with specific solutions. You can cater to freelancers or remote workers or link up with large MNCs to provide upmarket coworking spaces. You can decide the kind of coworking space, the location, facilities, promotion, and charges if you can decide on the target audience. Using a Coworking Space Business Name Generator can help you devise a name that will attract the target audience.
Follow Industry Trends
If you are new to the coworking industry, you need to quickly find out how it operates and what will go for and against it in your town. Networking with other space managers or collaborating with one can help you learn the ropes of the business and get vital industry perspectives. There are plenty of online resources, including social media groups dedicated to the subject, where you can ask questions to experts.
Get the Location Right
While you will want a cheap property to maximize your profit, you need to find out why a particular property is cheap. Typically, it may be located in an area less than ideal for coworking. Moreover, access to the premises may be difficult, it is in a low-income crime-ridden locality, or the parking facilities may be inadequate, the building may be shabby and in need of maintenance, other owners and renters may not be of a suitable profile, etc. By acquiring a desirable coworking space, you can be more assured of a higher occupancy rate.
As with any venture, you will need to make a detailed project report containing the specifics of the budget, capital requirements, funding options, and financial projections before getting your facility up and working. Your projections will tell you when you can hope to break even, the potential monthly revenues and costs, and possible hurdles. Creating an attractive pricing scheme but one that lets you generate adequate profits is fundamental to success. You will also need to build a competent team to manage and market your coworking facility.