The first coworking spaces trace back to Germany as several hackerspaces came up in the ’90s. This is where like-minded people could come together and work on their ideas. This promoted a feeling of belonging and oneness. The idea of coworking spaces started getting popular around the world, soon after. The basic idea behind Coworking space remains the same throughout the years, that is collaboration and community-building.
The working class has boomed over the years, there are more people working today than ever before. The working patterns have also changed during these years, especially after the pandemic. Professionals have moved from offices to working from home. Though working from home is comfortable, it can make you feel lonely. Many freelancers are on the lookout for spaces where they can work with other freelancers and build a community. According to research, there are 57 million freelancers in The U.S right now. It is surprising to see that 53% of the younger generation is freelancing.
With an increase in people remote-working, the need for creative workspaces increases. This is where Coworking space comes in. Giving professionals the freedom to design their own schedules yet a grounding into a community of like-minded professionals to help each other grow.
Table of Contents
What is a Coworking Space?
A Coworking Space in the general sense is a place where like-minded people from different backgrounds can come together and work independently. It is similar to a traditional office space in the sense of the amenities provided. Generally, professionals working together in a coworking space don’t work for the same company.
Coworking spaces give you the freedom to design your own work schedule. Flexibility in terms of working hours and no long-term lease is one of the best things about this space. Basic amenities like a desk, wifi, printers, coffee stations, and a conference room will always be available to use in a coworking setup. Some spaces might have more fancy amenities like a recreational area or advanced technical setup.
Coworking spaces work in connecting like-minded people, letting them share ideas, collaborate or work on their own, and build a community.
9 Easy Steps to Start a Coworking Space
Coworking spaces have become popular over the years. The demand for coworking spaces has doubled in spite of the global pandemic. More professionals are seeking affordable suburban lives where coworking spaces can play a major role. Coworking spaces started out as a trend but now it has turned into a full-blown industry. It gives a chance for people to network with others, share their ideas, and grow independently. According to ‘The Commercial Observer’ the estimated coworking spaces are going to double or triple in the next 5years in The U.S. This reassures that the industry is only going to keep growing hereon. If you are thinking of starting a Coworking Space, now is the best time. Thinking about how to start a coworking space? We help you with 9 easy steps that you can follow before starting your own Coworking Space.
Step 1. Intent
Know why you wish to get into the coworking space industry. Is it because it is a lucrative business model or do you want to build a network of creative minds? Ask yourself questions before getting started. There is an obvious monetary benefit irrespective of what you choose. The only difference between the choices is the approach you will have towards your coworking space. Focus on what you wish to gain out of it.
Step 2. Demand
Do market research about the demand for coworking spaces before investing in property. Try to create awareness about coworking spaces if you think it’s an unfamiliar concept wherever you stay. Create a virtual space for people to learn more about coworking spaces and their expectations. Interact with people on a one-on-one basis this is the best way to create a rapport and to promote your space in the future. Don’t worry if you don’t have a lot of demand, you can still start small and build on it as demand increases.
Step 3. Framework
Choose the right framework for your space depending on your situation and capital. There are five types of coworking spaces to choose from. This simplifies the process of building your own flexible space.
Coworking Space With Private Offices
If you have a big space, consider leasing it out to a company. This will not only fetch you a good income but also it will be a good marketing tool. You can promote it as a coworking space that already has an inflow of creative minds and a working environment.
Coworking Space Within Your Business
You already got office space and some unused floor space? You can use it as a coworking space. This could get you some extra income. Use it for expanding your new coworking space. Having like-minded people working in your space is always helpful for your business.
Coworking Space Within Private Spaces
There are many cafes, studios, or vacant office spaces especially now because of the pandemic. There are some places that need extra cash inflow, you can use such properties as coworking spaces. Partner up with people who will let you use their place after their business hours. You can get such work areas at a lower price than an office space. Invest the money saved and earned in other ventures or upscaling your coworking space.
Coworking Space Within Public Spaces
Look around, there are many public spaces around you that can work as a coworking space. Ask your local councils if they would help you with resources and the space. There are small business development centers in some cities that provide help to create more work opportunities. Sometimes vacant public buildings and spaces are up for lease.
Coworking Space With Events
Hosting events in your coworking space generates an income and most importantly gives you the necessary publicity. Think of events that are popular among the working professionals like stand-up comedy shows, game nights, or professional meet-ups. This is a marketing strategy to attract the right kind of people to your business.
Step 4. Money Matters
Like any other business, you need to think of finances for your coworking space as well. Setting up funds and having a financial plan is essential for every business. There are many ways you can pool in the money for your coworking space.
Get Financed
You can find investors, local government bodies, grants, or your own money to finance your coworking space. Or you can ask your friends who would like to invest and be co-partners. Prepare a Price Structure
Prepare a price structure as to how you want to schedule your monetary inflow. If you don’t have a structure things can go awry. Charge people on a daily, weekly, monthly, or yearly basis. Think of events for added income other than regular income. It’s a good practice to take part payments in advance just in case somebody cancels their bookings at the last minute. Be ready to give discounts to long-term users that maintain good relationships as well.
Step 5. Making it More Economically Viable
You can work up ways to make your coworking space economically viable by giving users added amenities. Adding recreational areas or a gym is fun and something people don’t mind paying for. Get the people to spend more time and money inside your working space than outside. Include as many services as possible like a cafeteria, sauna, meditation space, or even sleeping pods. Offer corporate customers attractive deals to use your space only for important events like yearly business meets or team-building activities. You can always charge corporates a premium fee.
Step 6. Get Dressed for Success
You have to look at the part to play the part well.
Choose a Location
Select a location that is easily accessible to your customers, that used to be the big cities but not anymore. People are moving out of big cities into quiet towns but still require city-like spaces to work in.
Utilities
Offer a good quality secure internet system and ethernet ports for each workstation. Provide some secure storage space to your customers.
Furniture and Fixtures
It depends on your budget what furniture and fixtures you wish to offer. A simple workstation with basic furniture like a decent desk and comfortable chair works well. You can always upgrade the coworking space with more high-end furnishings as you grow in the business.
Amenities
Your customers will be using your space for a minimum of a few hours a day, providing them with amenities like a coffee maker, a mini kitchen, refrigerator. You can get good quality products at a discount or in a sale. Don’t compromise on quality. A clean and well-stocked bathroom should be a priority. Get your coworking space cleaned on a regular basis.
Facilities
All work and no play can make your coworking space boring. Offering recreational areas will give clients a way to take breaks and make work more fun. Include some comfortable lounge chairs or sofas in your space. Create a green space with plants to relieve stress. You can also create open areas to use as meeting spaces.
Step 7. Hire your full team
Managing your coworking space efficiently requires a team. You can’t do everything on your own. Hire people with good social skills and who have a sense of hospitality. Clients may face different kinds of problems at your coworking space that need immediate attention. Good managers can handle any such crisis. There has to be a team that will look after your space and create a sense of community with your clients. The secret to success in business is most often a good team that works together.
Step 8. Start the Marketing process
Marketing is a very important aspect of any business. Prepare a marketing plan that focuses on creating awareness about your business. Create a demand for your services amongst the right audience. Create some excitement around your business model. There are many ways of marketing like creating a social media presence or organizing events and building a community. The more popularity you gain the more business you attract. Start marketing 2-3 months prior to starting a coworking space. Hire a marketing expert to help you with a plan.
Step 9. Shiny Happy People
When you love a product you always suggest others try it out. The same goes for your business, if customers love the services you offer they will tell others and get more business for you. Offer additional services to people which are not necessarily work-related like organizing game nights, any celebrations, social meetups, or movie nights. Such casual and fun meetings can garner bonds between people. You can create a community feeling which can turn into a loyal customer base.
Conclusion
Starting your own coworking space can be a life-changing decision in a good way. It is more about creating a community of like-minded people who get to do what they love more than anything. Sharing your space with creative people will keep you updated with the ever-changing trends and it will foster healthy relationships with talented people. It is a great way to earn an extra income and lets you share your ideas with others.
FAQs
Is coworking space a good business?
Yes, Coworking space is a good business given that it is a booming industry even now after the pandemic. It does take time to earn profits, approximately a year or more but once it gets momentum there is no stopping. Offering additional services will increase your profits. Coworking space is a good business as it is preferred not just by employees but by employers as well.
How Coworking spaces are ideal for entrepreneurs?
Entrepreneurs always want a workspace that is vibrant and one which facilitates good output. Coworking spaces provide this conducive atmosphere for growth. Coworking spaces also come at a cheaper cost than a full-fledged office space, saving budding entrepreneurs a lot of bucks.
They can then use this money to hire talented human resources instead of investing in a workspace.
Can you use coworking space as a business address?
A Company’s registered address must be a permanent address, like a home address or coworking space. The postal address can be any address.
How much does it cost to start a coworking space?
It can cost you anywhere from $10,000 to $30,000. Or you can start with $0 and first focus on building a community.
