In today’s world, you do not have to be compelled to be knowledgeable to start out creating a living. Here we especially talking about starting a coworking space business.
Firms are realizing the advantages of moving labor; thus, you will be able to work remotely rather than attending to a workplace aloof from home.
Worker accomplishment is slowly shifting to a contract-based model. Work and commuting take up most of your life, therefore the community needs in your space are bigger than ever.
Automation is taking over the planet of business and production. There are more opportunities than ever before thanks to the internet. As a result, individuals have additional motivation to start their own businesses.
As real estate demand and costs still rise, more and more businesses are realizing the necessity for more economical workplace models and consider using more cooperative spaces rather than exclusive office rentals.
With the pandemic and the increasing need to work remotely, the prospect of co-working has never been brighter and shared office spaces are the trend of the future. Co-working spaces business are essentially shared workspaces. But today, co-working means sharing everything.
1. What to consider first before moving into a Coworking Space Business?
Problems are solved in the coworking space business
- Use unused space, so you do not waste money.
- As the team grows, the office space becomes more scalable.
- Support a diverse community where you can exchange ideas and receive feedback (and perhaps find your first customer).
- Lower cost of office maintenance.
- Reduce upfront costs for the establishment of offices.
- Home is the birth of procrastination. Replace the home office with a productive coworking space.
Who uses Coworking Spaces and how?
- Full-time freelancers
- A professional in a side line job after work
- Remote employees
- Pure real estate businesses: Workplace as a Service Model (BHive, BoldKiln).
- Equity firms – Accelerator/Incubator
- Specific industries. A Coworking Space (Campfire) for team building.
- Co-working for large companies/business centres (Regus, Vatika).
- Co-working Aggregators (Breather, Qdesk, PivotDesk, Kowrk).
- As a PeerSpace.
- Cafes/restaurants/bars as co-working spaces (MyHQ, Coworkyard).
- Co-Living Space (CoHo)
- Co-working for the community, such as the wing.
2. Important features of a successful Coworking Space Business
- Be in the heart of the ecosystem of the markets you are targeting. Aim at a place where demand is high, but supply is low.
- Be located near areas convenient for public transport and hospitality.
Try Building a Healthy Community
- Building an online and offline community is critical to keeping users engaged.
- Cafeteria/tearoom with coffee, healthy refreshments, food, and beverages.
- Meeting rooms, conference rooms, and relaxation or playrooms.
- Arrange activities: Events help keep existing customers interested and attract new leads to your space (free ads).
- Handle complaints: Problems of poor internet connectivity, noise, and lack of privacy should be addressed.
- Plan and price flexibly: Identify target markets and provide a fixed or flexible plan that suits the customers.
- Mentor and investor networks: Mentoring and investing are the main challenges for start-ups so using the coworking space for networking can help hugely.
- Facility Design: People are looking for a positive and productive work environment. They also prefer entertainment spaces in co-working spaces.
3. Procurement issues to keep in mind
- 24/7 space: Many locations do not allow 24/7 offices, which your clients may need. You can also sell the space twice as day and night shifts space for extra profit.
- Rent/security: The security deposit for renting space and the rent itself is very high and must be paid in advance.
- Transportation: Transportation is a decisive factor in choosing a co-working space.
- Construction/Furnishing Costs
- Miscellaneous Costs: Parking, electricity, water, office supplies, etc.
4. Market Growth of Coworking Space Businesses
- Large coworking spaces like Awfis ($20 million from Sequoia India) and Innov8 (rumored to have received a $2 million valuation) have received significant venture capital funding and are opening chains of co-working spaces and expanding into a franchise model.
- Established coworking spaces like 91springboard are rapidly expanding into chains of coworking spaces with amenities that include working from any office.
- Global giants like WeWork (which has raised over $4.6 billion) will soon enter India.
- Increasingly, incubators/accelerators are setting up and offering free coworking spaces.
- Joint venture real estate companies, landlords, and corporations are beginning to offer coworking experiences in their buildings as an amenity and are hiring coworking space operators to professionally manage them.
5. Market Opportunity For Coworking Space Businesses
Many coworking space aggregators are emerging. Building links to generate leads in the right places is key for your coworking space business.
Target Tier 2 and Tier 3 cities because
- They are untapped markets where many professionals would like to stay home and work.
- You can offer industry-specific coworking spaces – e.g., freelancers only, artists only.
- You can create service markets for entrepreneurs, such as in-house design, development, testing, marketing teams.
- You can set up platforms for managing coworking spaces. CRM systems dedicated to coworking space management.
- There is more green space for coworking spaces – More and more people are demanding a green atmosphere in coworking spaces, and they don’t mind paying a little more for it.
- You can connect with investors – If your main target is start-ups, they are always looking for investors. Build relationships with investors to help them raise business affordability and capital.
- You can provide coworking spaces specifically for women: A female-centric coworking space where women feel safe and have their unique needs met.
- Find short- and long-term options: With a mobile workforce, many people are looking for short-term coworking spaces.
- Offer invitation-only coworking spaces: Make them feel like the “chosen one”. Create an elite class of people who work in your space.
- Crowdfund the purchase/lease of a building (Canadian model) and turn it into a coworking space. Surplus money, high demand.
- Make use of coworking visa programs to attract international travelers, entrepreneurial travel programs such as Entrepreneurs and HackerParadise, and digital nomads.
6. Facilities to remember for better Environment & Growth
- Overbooking: This will make the unit’s economic benefits better. Always keep the office floating. (It’s like how gyms make money, and people sign up but rarely.)
- Book spaces in advance for 1-2 months so you can start with maximum capacity.
- Additional charges apply to conference rooms and conference rooms.
- Remote employees for organizations based in the developer world.
- Hold mentoring sessions to connect start-ups with investors.
- Target minority groups that have not been involved yet. Musicians, athletes, artists, gamers.
- Don’t think, “If you build it, they’ll come.” Invest in community building and marketing.
- Members attract other members. Try to satisfy them.
- Before you start a coworking space, try working in several coworking spaces (they offer day tickets and free trials).
- Pricing and facilities. Don’t overprice or understate your competitors.
- Furniture and fixtures. If the owner doesn’t provide furniture, you can buy good things in the second-hand market. Buy, don’t rent.
- Providing Freebies such as Coffee, etc. can be very expensive. Buy a coffee machine. You can also rent, which is usually much cheaper and pay-as-you-go.
How do co-between Workspaces provide Solutions during a Pandemic?
There is no denying that the coworking model has taken a hit, but it still has real appeal to businesses large and small. Brian Armstrong, Coinbase’s chief executive, describes his new approach as “ten cities on one floor, not one city on ten floors”. Entering new and improved workspaces: the perfect solution for businesses that need multiple locations and flexible layouts. As companies are forced to restructure their finances, coworking can flourish.
WeWork is one of the global market leaders in coworking spaces, adapting its strategy in a variety of ways to respond to pandemics and expected aftershocks. With more than 100 locations in New York City alone, WeWork offers a range of locations for a dispersed workforce. The company recently added software to help human resources departments plan sites and reduce the risk of communication during employee commutes.
Coworking spaces are also re-evaluating their floor plans. After the last recession, companies spent millions of dollars stuffing as many people as possible into office spaces. Today, the opposite is true. Kate North, vice president of workplace strategy at Gurley International, said: “Every configuration in every floor plan needs to be adjusted for distance and safety.
What are the Key Security Measures that Coworking Spaces should implement?
High-latitude Global has come up with the concept of a “6-foot office” to help its customers create safe spaces.
This concept includes elements such as new and improved rules of behaviour, unique access to each table, customized workstations, and optimized shared facilities. Using technology to transform your workspace is easy: think automatic doors, hands-free check-ins, and smart lighting.
A recent survey by HubbleHQ found that increased office hygiene measures are essential to make employees feel comfortable in these spaces again. The introduction of detailed cleaning protocols and daily antiviral spraying are the most popular measures among respondents.
Hand washing requirements, masks, and disinfectant supplies follow spraying. Plexiglass partitions between offices will become the new norm; the days of sharing meeting rooms are over. The temptation to work in different offices every day has lost its luster as employees look for a safe environment they can trust.
In the past, cleaning was done in the background, mainly when people were not taking up space. Today, visible cleaning is a necessary condition for employees to feel comfortable in a shared space.
Final Thoughts for Starting a Coworking Space Business
As shown in this article, there is a lot of potential in the coworking space market and entrepreneurs with a nag for the commercial property market can certainly achieve good investments in the near future with coworking space businesses. However, it is not easy to run such a business and the listed 6 considerations should be analysed carefully, before moving into this endeavour.