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Relevance of starting a coworking space business
Coworking space is a relatively new niche that started to develop within the last 20 years. The place is free of stereotypes creative zone with all the necessities for work. The main idea of coworking is convenient access to the Internet and a pleasant atmosphere that inspires work.
Clients of the coworking spaces are:
Young entrepreneurs
Journalists
Designers
IT-specialists
Consulting specialists
Nonresident companies organizing field seminars, trainings
Students
Copywriters
Marketers and targetologists
SEO specialists
The target audience of coworking varies. Many people tend to work online, but don't want to do it from their homes, so you'll have many clients. However, another situation appears because of such an engaging targeted audience – all these people create a unique ecosystem. You have to maintain its work, create ideal conditions for fruitful performance, business-friendly communication, and of course, optimal organization of the coworking business processes.
Coworking centers are also perfect solutions for freelancers. Mostly because:
the atmosphere helps to create the right working mood,
they offer unlimited WIFI,
they are much cheaper than renting an office,
there is a high chance to meet and establish good working relationships with other clients of the creative space.
There are several must-haves for any coworking center. It has to be:
well-equipped,
comfortable,
easy-accessible,
affordable,
and spacious.
The comfort of a coworking area is essential. And here we are talking not only about design and equipment. The atmosphere is the thing that has to stay your main feature.
Good coworking is the place where everyone wants to work. Create the desired atmosphere, and you automatically win against the competitors. And EasyWeek will be glad to help you with it! Today, we will find out the steps to start a successful coworking space from scratch and without much effort. So let's begin our journey to the world of business creativity!
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Step-by-step instructions on opening a coworking business
Starting a coworking space business is similar to developing any business idea – from beauty salons business to car washes. Thoughtful planning, patience, and hard work will lead you to prosperity.
We have prepared 8 steps a young entrepreneur has to do to launch a successful coworking space:
Digitize the business idea and calculate the initial investments.
Find investors or make sure you have enough funds to begin.
Cope with all the documentation: licenses and permits.
Rent premises and renovate them.
Purchase furniture and equipment.
Launch ads, connect CRM and online appointment service.
Hire staff.
Double-check whether you've coped with all the items and welcome your first clients!
Now, let's talk about the critical trifles an aspiring entrepreneur is better to know before starting a business.
The importance of location for a coworking space
The right-selected location is 80% of success. It is wiser to open coworking spaces in the city center or business areas so that the district will be famous among your target audience. When choosing the location, think about transport hubs nearby – metro will be a great plus. In any case, coworking has to be easily accessible.
If there is a cafe or restaurant near the coworking, ask them for collaboration. Barter discounts and special offers will significantly help both of you. Remember that coworking are especially popular in art spaces and creative areas of the city. It will be beneficial to place a coworking near a beauty salon, mall, or showroom. It will help your young business "catch" some clients of the places we have just mentioned. Plus, it will be pretty convenient for your visitors as they can shop, dress, and do makeup near the workplace.
You have to organize a handy parking space for those who use cars to get to the coworking. It can be an open area or paid parking service.
Coworking space premises
The best choice will be a spacious, bright room with a comfortable entrance. A great bonus will be high ceilings and panoramic windows. One workplace usually takes up to 5 meters, then remember to plan the dining area and bathroom.
There are two main ways of getting coworking space premises:
renting the space,
purchasing the premises.
Rely on your budget and concept.
A coworking center has to hire a manager. Firstly, you can work as a manager there. It is the classical way any business usually starts. Plus, in coworking, there is an opportunity to involve volunteers – people who will work for you not for salary but for the ability to use coworking for free.
To start and maintain a coworking, you'll have to hire a dream team consisting of:
Administrator (one or two, depending on the coworking schedule and work hours).
A marketer or a team to promote the place.
Outsource accountant or system administrator.
A cleaning lady or cleaning service.
It is better to connect handy CRM software for the best performance and cooperation with staff and clients.
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Coworking space: design and equipment
You are lucky if there is a chance to work with open space premises or former restaurant space. However, in this case, you will save time and effort as the place is ready to be decorated at once.
A coworking has to include:
A hall with all the workplaces, a few offices and a big hall for events.
Reception or any place for manager and administrator.
A separate dining area. It is better to separate the canteen from the workspace as no one wants to work and smell delicious food. It simply distracts.
Coworking equipment
Get a soundproof system, air conditioning, and good ventilation.
Unlimited high-speed Internet is required.
The printer, scanner, copier also have to be there.
General and individual lighting.
Several sockets to each table.
The style is best to stay modern and convenient but not overloaded. The most popular coworking interior is the loft design with comfortable and stylish furniture.
Pear chairs and soft sofas are suitable for the rest area. You can choose laminate, parquet, or carpet as flooring. Carpeting is pretty expensive because of regular cleaning, so selecting the two other options is better.
There is a set of stuff you have to get for the dining area. It has to be equipped with tables, chairs, a refrigerator, microwave, kettle and a set of dishes: cups, plates, cutlery, teapots. A water cooler and a professional coffee machine will be a plus for every coworking. So take care of buying good coffee, several types of teas and, of course, – cookies.
Safety always comes first.
Install CCTV cameras and storage lockers to keep guests' personal belongings safe. Get a security service to protect the coworking during the nighttime. Always plan safety expenses, making a business plan. It saves money and nerves later.
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How to attract clients to the coworking centers: promotion secrets
To form a client base, you have to invest in marketing and ads. It sounds a bit uncertain, but the right SMM specialist will get your business to the next level. First, however, there is a list of items you can do by yourself:
Present yourself in various forums, trade shows, shopping and business centers, supermarkets, coffee shops, print flyers.
Sign up coworking for social networks: Instagram, Facebook, TikTok.
Create a website with a photo gallery, a description of the center's services, and a detailed price list. Be sure to install the online appointment widget on the website so you don't miss out on any guests.
N.B.: EasyWeek offers such a handy tool as a mini-website for free. You get it automatically when signing up for the service.
Register a coworking space in groups and on sites for renting office space.
Provide space for free for a social event (for reputation purposes), or rent it out to a large company for an event.
Launch targeted ads.
Potential visitors may include accountants, managers, recruiters, and other people of value to your business. It will be nice for both of you if you offer them a discount or free rent. So then, they help you with managing your business.
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How much does opening a coworking from scratch cost
The investment needed to start a coworking differs from the state, location, and level of comfort. Usually, to open a nice coworking space, it is required up to $20 000. Sometimes, it is possible to cope with $6000 – $7000, but sure, different states, various premises, spaces, and styles cannot cost the same.
Coworking size, concept, and strategy decide how much you will have to invest to succeed. An unspoken coworking rule is that creative business people get better revenue. Now, let's find out how much you'll have to spend to begin and what are the main fields of expenses:
Rent of premises
Renovation
Internet, utilities, and taxes
Equipment
Promo expenses
Staff salaries
Registration and documentation
Consumables
Don't forget to calculate additional expenses. Everything can happen at the beginning, so being extra prepared is a must. To start a coworking, you will need approximately $8000 – 10 000.
Coworking ROI
The average coworking center serves up to 50 users at once. The average price is $30 – 40 per day. Depending on the location and promotion, the ROI of such a business can be pretty high and fast.
The price has to stay comfortable both for you and your clients. People aren't ready to spend a lot on coworking as they often see it as an affordable option.
When thinking about the pricing, consider:
Setting the price per hour, a minute, or daily.
Offering a membership.
Adding extra services: offering equipment for presentations, renting a laptop, etc.
You can load the premises up to 80% if do everything correctly. Usually, the coworking space ROI takes up to a year, but extra services can minimize this time. For example, install vending machines for selling drinks and snacks.
Offering space for special events will also help to minimize the ROI period. For example, you can offer the space for different coaches, teachers, or psychologists. If you have a few rooms, the events can be held without any issues, but it will be essential to schedule everything well if there is just one hall.
Don't wait millions at once. Adding extra services won't be super profitable unless you get well-known. And it takes some time. But not everything is that bad – the right marketing strategy and loyalty program and you win the battle.
The legal form of business organization
If you are thinking about starting a coworking by yourself, consider registering a sole proprietorship organization. It has better conditions than LCC and allows you to hire staff and develop the company.
When planning a coworking, you have to consult a lawyer to minimize the risk of missing some important trifles. Plus, the law varies from state to state.
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Conclusions
The business idea of coworking is still relatively young. The Deskmag magazine has counted only 2000 coworking spaces all around the world. Isn't it inspiring?
The critical task of a coworking owner is creating a business-friendly space, highlighting the creative atmosphere, and cherishing professional development.
When starting a coworking, remember that comfort is that detail clients will appreciate you. That is why connecting handy coworking online appointment scheduling app is the best solution. It will minimize the expenses, optimizing all the processes that businesses made manually for years.
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