How to Build a Coworking Space that Profitable

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Education & Training with Property Investment Wise

A coworking and collaborative space is a work environment that is shared where people meet, network, share ideas, collaborate on tasks, and work on their own thing. These areas are different from conventional offices in that business professionals and entrepreneurs from various industries, niches, and areas of speciality. They are beneficial to people who are constantly on the road, independent contractors, or simply individuals that enjoy working in creative or contemporary spaces.

Nevertheless, you might lack a coworking space that suits your needs or one that is near you. Additionally, you might have identified a gap in the market that you can fill when you launch coworking space as a business. Regardless of your motivation, this guide aims to show you how to launch a coworking space that will be profitable and successful. Here is what you should know.

 

Why Coworking Space?

A coworking space provides employees who do not work in formal offices in a professional environment that is not as isolated as a home office. This gives them an opportunity to network with other employees and is a hub for potential clients.

 

Additionally, these spaces are both flexible and affordable which is beneficial to startups that are cash-strapped and in need of an office space. These spaces could also be used for short-term space needs such as small conferences and training sessions.

 

With more and more individuals opting to become entrepreneurs and freelancers, the need for coworking spaces is becoming more vital. They are better than both coffee shops and home offices as they offer the same benefits as traditional offices without the overbearing bosses.

 

Who uses Coworking Spaces?

The most common users are:

 

Freelancers

These spaces appeal to freelancers as they offer the amenities of a workstation without having to isolate themselves at home. The sense of a community does indeed boost one’s productivity.

 

Startups

The flexibility of coworking spaces is appealing to startups. They are like traditional offices but without the exorbitant charges that follow. They also allow them to network with other entrepreneurs and meet potential clients.

 

Remote employees

Coworking spaces are a great alternative to an employee who lives far away from their offices. It saves on their transport costs as well as allowing them to work like they’d have in the main office.

 

Professionals that have side projects

Individuals who have conventional offices might have a side project going that they cannot work on at work. This is where a coworking space comes in handy.

 

The coworking space market is a growing one and one that will prove to be profitable. Now let us look into how you go about setting up a coworking space. Here are a few things that you should consider when creating an effective, fun, and profitable coworking space.

 

How to Create a Coworking Space

 1. Do Your Research

You have to establish that there’s a need for a coworking space. Do not assume that they will just come after you’ve built it. Also, even if the demand is not high, consider pursuing the project but on a smaller scale.

 

2. What is its function?

Are you aiming to be inspirational or to make a profit? Nevertheless, most coworking spaces are known to be contemporary and stylish which makes for energetic and creative environments. Keep in mind that designing such a space will come at a cost. But the idea is to create an appealing environment that will allow you to recover your overheads and make profits.

 

3. Location

As a rule of thumb, coworking spaces should be safe, convenient, and easy to find. They are typically located in underutilized or older buildings. Search for a space that has not been in use for a while so that you can secure an inexpensive lease.

 

4. Utilities first

Having stylish furniture that facilitates a comfortable environment is good, but you have to focus on the right utilities first such as high-speed internet.

 

Coworking Design Concept

Coworking space interior design is an important factor to keep in mind. You are aiming to appeal to both introverts and extroverts and therefore, you have to find a way to make everyone comfortable. Your space must also encourage collaboration. It is therefore imperative to transform the space into dynamic environments for networking, productivity and creativity.

 

The most successful coworking spaces typically throw away the traditional office idea and design the space to resemble more of a cafe. Here are a few ideas to consider:

 

1. Floor Layout

The main benefit of coworking spaces is that they allow for collaborations and social interactions that would be impossible in conventional offices. However, this can also hinder productivity. Thus, combine their pros and have a combination layout that allows for both collaborative and quiet spaces.

 

2. Decoration

Be creative on how you go about this. Consider using various colour schemes on different parts of the area. You could also incorporate the use of natural light and plants to enhance the mood further. There are numerous ways you could go about it.

 

3. Office Furniture

Coworking spaces are a representation of contemporary times. As such, the office furniture needs to reflect this. For instance, health and fitness are highly valued today; thus, adjustable sit-stand desks would look right at home.

 

Additionally, also have larger desks for collaboration purposes or to facilitate easy discussions. You should also have couches around the common areas where someone can lounge away. The choices you have are limitless.

 

How do coworking spaces make money?

For you to generate a tidy profit from coworking spaces, you have to follow the tried and tested method; reduce your overheads as much as you can without compromising on quality.

 

For instance, aim to create a space which can attract people of all dispositions. You will, therefore, have to use a significant amount to create that environment. You can, however, save on other costs such as those of leasing by looking for a building that you can negotiate for a favourable rate. Additionally, keep your operational costs low.

 

Therefore, do not have too many personnel such as maintenance guys, managers, and organizers. Have a few that can handle everything effectively.

 

Have a competitive price model where you charge rent per desk. Nevertheless, be careful not to be pricier than your competitors. Also, you must offer prices that are relative to the services you are providing.

 

Posted by

Joe McCord works at REAA.

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Thank you for this interesting and helpful post, I have a client who will appreciate it.

Jul 02, 2018 09:40 PM #1
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Lottie Kendall
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Nice explanation of some of the details that go into planning coworking spaces. Most of the coworking spaces I know of in San Francisco also have private conference rooms that can be reserved (for a fee.) I like your thought about the stand-up desks.

Jul 02, 2018 09:49 PM #2
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