Starting and operating a Coworking space can be a daunting task, yet undoubtedly rewarding. The growth of the industry has been detailed here (and in many other places) and doesn’t show any signs of slowing down.
It’s important to understand the pros and cons of Coworking to get an idea of what areas you would need to focus on to create a great shared space. Let’s take a look at overcoming obstacles in Coworking.
Cost
Naturally, step one in being able to start a successful space (or any business) is understanding the capital needed to begin. The biggest way to overcome this obstacle is to have members committed to signing up PRIOR to opening.
Do not, under any circumstances, assume that you’ll create a lavish space and automatically get members. Make sure you do the leg work before you sign a lease.
Commercial leases are virtually impossible to break. Know every single penny of what it will cost before you sign. If you need to recruit help or seek loans for financing purposes, do so before signing anything.
If necessary, there are grants available for startups which you should look into before signing as well. Remember, becoming profitable takes time and you may very well be in the red before you’re in the green. Don’t panic. Make sure you have the funding and backup to cover any delays in profitability.
Community > Space
It’s important to begin building your community before you ever sign a lease. You’re much better off starting on a smaller scale, and building up to something larger, than the other way around.
Begin by hosting pre-opening events. Similar to what you may organize when the space is beginning to thrive. Get the word out to anyone interested via social media and any other outlet you prefer. Do not assume the theory of “if you build it, they will come”.
Location
Your location can make or break the success of the space. Thriving workspaces often are located in walkable, urban areas, or in underused buildings with vacant spaces. If you find the right location in a vacancy, you may be able to negotiate a better deal with the landlord.
Do not put value on price over location. It is proven that members looking for a Coworking space are generally not willing to sacrifice a great location for a cheaper monthly plan.
Inspiration from thriving spaces
Visit local spaces. Talk to members who use all the benefits their location provides. Gather inspiration from what works well and apply it to your business model.
Do not try to reinvent the wheel. Because many Coworking spaces don’t turn profit for their operators, it’s hard to believe that trying new designs and concepts in your space is going to be a breakthrough for you. Take what’s proven to work and adapt it to your space and your budget.
Technology
If you fail to pick an effective workspace management platform for your Coworking space, you could find yourself quickly behind the 8 ball.
The right software for your space is vital in building a community. It streamlines your most tedious and time consuming processes, and has an impact beyond just your space.
The ideal software will expedite billing, lead management, help increase revenue, and integrate with other systems.
Yardi Kube is the #1 Coworking Management Software. The Yardi Kube platform will not only accomplish all those goals listed above, but also offers 24/7 support, helps build the community in your space, and streamlines your most complex operational features.
There’s naturally going to be obstacles to overcome when starting a Coworking space. And while it is a fact that many don’t turn a profit, it is also fact that the growth in the industry could start to turn that needle the other way.
To find out how Yardi Kube can be an integral part of the success of your new space, please click the link below.