Coworking space as a business got popular between 2007 and 2019 (right before the pandemic) because more people jumped on the freelancer/entrepreneur bandwagon. However, the pandemic brought the industry to a halt as people learned how to work from home and meet their colleagues and collaborators on Zoom.ÂÂ
So, are coworking space businesses still profitable after two years of lockdowns and social distancing?ÂÂ
Let’s have a look at what it means to own a coworking space business and your chances of attracting enough customers to make it worth it.ÂÂ
What is a Coworking Space Business?
As the name says, this is a business that offers people access to office spaces and amenities. Depending on the available space and how it is organized, users can have access to common spaces, individual office spaces, conference rooms, kitchen areas, and entertainment areas.ÂÂ
Most such businesses offer a monthly lease system for access to office spaces and you have the option to pay an extra fee for access to conference rooms or other dedicated areas. In short, it’s an office space where anyone (mostly freelancers and entrepreneurs) who pays the membership or fee can come and work.
Besides offering users access to an office-like environment, this type of business creates a hub where various professionals in the area can meet and interact. Plus, it always offers secure WiFi access, printers, and other office tools that most people don’t usually have at home.ÂÂ
Is It Still a Worthy Investment?
Yes! Even though some people still struggle being in public, coworking spaces have a series of unique benefits that you can’t find in a coffee shop or in the comfort of your own home. And many work-from-home people understand the power of having an office-like work environment.
Plus, the reason why coworking spaces used to be so popular is their cost-efficiency. Whether you’re a business in need of a conference room or a freelancer who wants an office, you pay for the time you use the space and that’s it. There are no office maintenance costs, no cleaning costs, and you don’t have to buy any of the equipment.
Of course, all these costs will be supported by you, the coworking space’s owner, but you have to include them in the rental price.
How To Stay Organized
To make your coworking space stand out from the competition, you should organize various community events to encourage collaboration and networking between members. Also, it helps to be flexible and include in your offer a variety of office spaces that respond to different individuals’ and organizations’ needs.
Staying organized also means getting the most efficiency out of the available space, and staying on top of every little detail. To help with those administrative tasks, coworking space software is a worthy investment. It will help you centralize all information on your facility, and keep a clean bookings calendar.
However, as you add variety, things can become quite hectic when it comes to business organization and administration. To keep everything under control, it helps to use tech tools that have built-in automated features and can communicate with each other. You should also keep your staff in the loop and provide them with tools so they can communicate based on project and/or department.ÂÂ
Still, all these are measures you take once you have the space and your customer base increases. When you’re just starting, you need a well-detailed business plan designed to fit your development goals. Also, it helps to put together a growth plan for the upcoming years – this is the tool that will help you attract investors or get funding.
Don’t Get Discouraged!
A coworking space business can be a bit difficult to get off the ground if you don’t have the space or your budget is limited. Still, this business model has a lot of potential if you think things through from the start. So don’t give up when things get tough – find ways to go around and make your dream of helping other entrepreneurs a reality!
