Are you considering opening a coworking area? Do you have a coworking space plan? You will have the opportunity to foster collaboration and entrepreneurship in your community and offer a professional workplace for those who don’t want to work at home or in a coffee shop. Here are eight tips to help you open a successful coworking area and build a community of engaged members.
You Should Solidify Your Value Proposition and Business Model
Your value proposition is your promise to deliver or solve a problem for your target audience. Your success is dependent on a solid understanding of your business model. You should know your customers, your unique selling point, and how you will use these strengths to increase revenue. Also, you need to be aware of the expenses that you may incur to maintain your workspace.
The business model canvas can be used to identify the main functions of your coworking area. You’ll be better able to decide on your location, specific offerings, pricing, and amenities once you have a clear idea of your ideal customer and revenue options.
Find out About Your Local Competition
Research and identify local competitors to better understand the market. List direct and indirect competition. Consider working in coffee shops, libraries, coworking spaces, and traditional offices. Take note of their strengths and weaknesses to better understand what you can offer and how to fine-tune your coworking space.
Take the time to meet other space owners and managers. You can learn from others’ experiences and use that to influence your coworking space. Coworking is about collaboration, not competition. This will enhance your community.
Find a Location
It’s never too soon to start looking for available coworking spaces in your locality when you’re considering opening one. Your building’s cost (mortgage, lease, or purchase) will be a major factor in determining your profitability. It is important to choose a location that will attract your target audience and also maintain a budget that will support the longevity of your business.
Make sure you understand who is responsible for the buildout. Be sure to understand the insurance requirements of any space you are looking to lease or buy.
The majority of commercial leases have a long-term (typically lasting five years or longer). Add a renewal clause to your lease that specifies the terms for the extension of the lease at a rate both parties agree on. You will avoid being priced out of the location once your business is up and running.
Create a Revenue Plan
What is your initial budget? How many memberships will you need to sell to break even? Consider these steps to help you determine your target revenue, price, and offerings.
Create a Proforma A pro forma will help you determine your revenue potential and basic costs. It can also be used to provide a report to owners, creditors, and investors that shows how your business is likely to reach profitability.
Identify Your Membership Types
No one membership fits everyone who wants to use your coworking space. Drop-in memberships, flex desks, and dedicated desks all commonplace in the coworking world. Each of these options offers flexibility to accommodate different work schedules and budgets. Others may need a dedicated, reliable space to return to every day, while some may only require a temporary workspace. Keep your memberships as simple as possible and avoid overwhelming your customers with options.
Consider Dedicated Office Space
The quality of office suites will vary depending on your community’s needs. Leasing an office is a great way to generate revenue and is essential for companies that want to work in coworking spaces. Offices can add to the initial cost of buildout and furniture. If offices are empty, there is also an opportunity price. Consider if the space could be used as a meeting room or to provide extra space for dedicated non-private desks.
Select Amenities Available for Additional Charge
Options for amenities to generate revenue include conference room rentals and event room rentals. Other options are childcare, parking passes or lockers, sit-stand tables, mailing services, and childcare. Which of these amenities are most appropriate for your target audience? Check out our guide to coworking space amenities and other ideas that you can implement.
Build Your Community
Community is the priority of coworking spaces. It will be easier to get started if you have built a community before opening. Before opening their coworking spaces, many successful owners host meetups to gather people and create a network.
As you organize events, start building an email list by collecting the email addresses of those who attend. Keep your network informed of your progress as you plan your coworking space and encourage them invite their friends and colleagues to future gatherings.
Manage Early Cash Flow and Expenses
Unfortunately, it is very common to go over your budget when opening a coworking space. These two tips will help you generate early cash flow, and lower your initial costs.
Pre-Sale Memberships
Do not wait until you are open to sign-up members. Offer a discount for members who want to join before your space is fully operational. Don’t sell memberships until you can clearly explain what a member will get. For more information, see How To Pre-Sell Coworking Space Members.
Create Partnership Opportunities
You’ll create and grow your community of members as a coworking room owner. Many local organizations will support you and your efforts. They may also want to get relevant products or services in front your members. Partnering with other local businesses is a great opportunity for them to get involved in your coworking space, and provide value to members. Partner businesses can offer resources like branded office products, kitchenware or even coffee to reduce the initial costs of your coworking space and let them represent their brand.
Purchase Supplies
Make a list of all the items your members will require once you open. Consider the following items:
- Kitchen appliances
- Coffee and tea varieties
- Common office supplies
- Bathroom Supplies (toilet papers, bathroom sprays, feminine products)
- Cleaning Supplies (sponges and dish soap, as well as multi-surface cleaners, and mops)
- HDMI cables and adapters
- Charger spares for laptops and phones
- Plan an Opening Celebration
It’s not just fun to throw a grand opening party, it is also a good way to create buzz in your community. You want to let your community know that opening a coworking area is a huge deal. Notify your local partners, such as the chamber of commerce or economic development leaders in your city, university, or city council. Send a press release to local media outlets at least a week before your event. Make sure you send out an email to all your contacts and post your event on social media.
Coworking SEO offers Coworking Management Software as well as resources to help you build your community and open your coworking space. These will inspire you, improve your skills, and provide you with useful information. Enjoy coworking!
Explore Coworking SEO Turn Leads into Sales
In today’s digital age, having a strong online presence is essential for any business. This is especially true for coworking spaces, as they rely on a constant stream of new members to fill their spaces. One effective way to attract potential clients to your coworking space is through search engine optimization (SEO).
SEO is the practice of optimizing your website so it ranks higher in search engine results pages. By focusing on keywords that are relevant to your coworking space, you can increase your visibility and attract more leads. For example, if your coworking space is located in New York City, targeting keywords like “coworking space NYC” or “shared office space in Manhattan” can help your website rank higher when potential clients search for those terms.
Once you’ve attracted leads to your website, the next step is to turn them into sales. One effective strategy is to create landing pages that are specifically designed to convert leads. These pages should be focused on a specific call to action, such as signing up for a free trial or scheduling a tour of your coworking space. By removing distractions and guiding the visitor toward a specific action, you can increase the likelihood of conversions.
Another important aspect of turning leads into sales is having a clear and compelling value proposition. Potential clients need to understand what sets your coworking space apart from the competition, and why they should choose your space over others. This could be anything from flexible membership options to state-of-the-art facilities or a vibrant community of like-minded professionals. Highlighting these unique selling points can help persuade leads to choose your coworking space over others.
In conclusion, coworking spaces can benefit greatly from utilizing SEO to attract leads and turn them into sales. By optimizing your website for relevant keywords, creating targeted landing pages, and emphasizing your unique value proposition, you can increase your chances of converting website visitors into paying members. So, take some time to explore coworking SEO and reap the rewards of a steady stream of new clients for your coworking space.
