Coworking Space Profitability: How to Start a Coworking Space Operation

Starting a coworking office is profitable and moderately challenging. You need to find an ideal location, secure funding and marketing.

Other challenges are attracting professionals and like minded entrepreneurs. A small coworking space could start with just 10 coworkers.

Things to consider before starting the business are financing, type of space, legal, community and sales. To succeed you need to focus, plan and implement.

You need to properly utilize the space, reduce your workload and develop an effective marketing strategy.

Consult People in the Industry

There is nothing wrong in consulting people in the industry. You would learn some tricks and get important impute to daily operation of such enterprise. 

You have to depend on partnership collaborations and mutual development. You could also gain knowledge through books, seminars and online resources.

Startup Funding

To get startup finds first write a business plan and approach a commercial bank for loans. There might be provisions for small grants in your locality or association loans. Try target savings, partnership or borrow from family.

Cost of Opening a Coworking Space

The cost of opening a coworking space depends on real estate prices in your locality. Others involve rent, chairs, wireless router, furniture and trash bins.

More are utility costs, taxes, electricity, office supplies, cleaning service and waste disposal. Space size could range from 4500 square feet -1800 square feet. You can start the business with a budget of $50,000.

Marketing Strategy

Your coworking center may depend on local business owners or different professionals. Make sure you have an effective marketing strategy targeted at your preferred demography. Use local publications, flyers sign board and billboards.

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Location

The most important aspect of this business is location. The wrong location equates to total failure and low patronage.

Carefully carry out a feasibility study and survey of commercial and business districts in your area. Top locations are at popular destination with lots of vehicular and human traffic. Vacant bank buildings and strategically located building in commercial areas are also ideal.

Leasehold

The amount you pay as lease should be negotiated. Landlords tend to ask prevalent prices in the surrounding location.

This might not fit your purpose however old and long vacant builds might attract slightly less prices. Many landlords are averse to subletting their property so these are things to consider before signing a lease.

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Provide Utilities

It is important your work space has basic utilities. You could demarcate into cubicle or use open plan system.

Make sure you put in place utilities such as electric power, backup generator and high speed internet. The place should be properly lighted, aerated, waste disposal system and toilet facility. Other things to consider are simple furniture like desks, table’s chairs and shelves.

• Electric power
• Backup generator
• High speed internet
• Aerated
• Waste disposal system
• Adequate toilet facility
• Furniture
• Desks
•  table’s
• Chairs
• Shelves.

Office Design

Coworking offices are generally contemporary and elegant. Hire an interior designer to design a simple and functional office environment.

 A trendier space will appeal to prospective professionals. You should work within a budget and spend as little as possible. Weight the benefits against the cost to arrive at a good benchmark.

Educate the Community

The concept of coworking space is new to many areas. So you need to enlighten professionals in the area on the benefit of such an arrangement.

Some of the benefits for coworkers include reduced rent, better resources and cooperation between professionals in the office. Others are networking and a corporate identity.