It’s obvious why the picture of working anywhere and anytime is attractive to many, pushing employees to quit their jobs and pursue a full-time freelancing career. Although working from home sounds fun, it’s often challenging for many in terms of avoiding distractions, which led to the search of cafes and other spaces where they can work freely.
That’s what gave rise to the coworking space industry, giving it fantastic growth over the years. The Global Coworking Survey: the 2018 Coworking Forecast estimated that around 1.7 million people were working in about 19,000 coworking spaces globally by the end of 2018.
But just because the industry is booming doesn’t mean that you can open a coworking space and expect it to be successful. You have to do the right things that will yield the best results.
1. Find members before you even sign a lease
You can take a leap of faith and buy a property before you even know that you’ll get customers, or you can save yourself from the heartache and find members before you even sign a lease.
There are many ways to do this. You can start by hosting pre-opening events where you’ll invite speakers to talk about relevant topics for your community such as overcoming the challenges of being a freelancer and more. You can also target specific groups, such as copywriters, graphic designers, or web developers by organizing events highly relevant to them.
Take advantage of the broad reach of social media. You can create a campaign to get contact info in exchange for a few free hours of using your coworking space.
Be creative in thinking of ways to engage your target market and secure members before you start building. One way to overcome this hurdle is to look for a coworking space franchise opportunity. An established brand will already be accessible to your target market, making it easier to get members.
2. Secure funding to cover construction and a few months of operation
In business, you’ll often be in the red before you’re in the green, and that’s natural. So before you sign a commercial lease, make sure to secure funding whether by financing options or a loan. Make sure that you have an accurate, detailed list of predicted construction expenses and funds that covers and exceeds the expected cost.
You should also remember that it takes a few months to be profitable, so have funds ready to cover your operational costs until you break even.
3. Prioritize a good location
Remember that your target market is a digital generation. They’re used to convenience. They certainly wouldn’t want to travel to a hidden suburban area to work. People want an accessible coworking space, one that’s near other establishments, like convenience stores, transportation terminals, or other restaurants.
The coworking space industry offers a lot of room for growth and profit for those who are willing to go the extra mile and make wise business decisions. The important thing is to be prepared and proactive in every aspect of the business, from getting members to managing costs.
