How does one build a profitable coworking space?
Fortunately, there are a number of proven models you can use as a starting point. I've also created some tremendously valuable resources to help you get started, so you can save a bunch of time and money and make use of time-honored best practices.
(Update: This now includes a version in square meters!)
Quickly generate accurate projections
The premium Coworking Business Model template makes it crazy easy to get a rough idea of the potential profitability for a given space.
Plugin a handful of numbers to get detailed estimates of both what you can make in income and what your projected expenses will be—all in an easily readable, straightforward format.
This template will let you:
- Estimate your capacity. How many of each different kind of membership and private office can you hold in a given space?
- Estimate your capital costs. Get a sense of how much you might spend to build out your space.
- Estimate your potential income. Across a number of different potential income sources, you can determine exactly how much you can make.
- Determine your break-even point. The model spreads out your membership growth across a year, just so you can easily see at exactly what point your space becomes profitable. Once you know what success looks like and have set your model, you can adjust your actual projections to get to that break-even point sooner!
- Estimate staff needs and costs. These will be rough and will vary a lot by your location, but we'll go so far as to estimate the number of paid staffers you'll need based on space size and how much they might cost you. You'll customize these things later, but for now you'd get a really good back-of-the-envelope estimate to start with!
- Estimate expenses. The template includes a bunch of formulas to make informed guesses about how much you'll end up paying for common expenses, like internet, cleaning services, supplies, and more. Change the size of your space, and all of these expenses are updated automatically. Easy!
- See your profit & loss. As you adjust the assumptions, your bottom-line numbers will get more and more realistic. Keep refining and checking the bottom line!
Once you've got a model you feel comfortable with, you'll have a really good idea what you're getting yourself into.
Then you'll be in a much better position to decide whether to proceed, or whether further investigation is necessary.
This template will also give you something impressive to show potential investors or landlords—they love to see that you've done your homework and come up with a rationale to show the model could work!
Learn critical pre-launch fundamentals:
Some topics we'll cover in this package:
- Overview of the coworking movement
- The 7 proven coworking business models
- Does coworking make money?
- Is coworking saturated?
- How big is the coworking market?
- What does it cost to start a space?
- What kind of software should I use?
- The 4 key realities about coworking software
- A quick overview of the different platforms
- How do I attract members?
- How to avoid the pit of doom
- Quick guide to attracting your first members
- Next steps
- Let's go into these in more detail:
- Overview of the coworking movement
Get a quick primer on how coworking got its start and the implications its roots have on where coworking is going from here.
The 7 proven coworking business models
Depending on what kind of space you want to build (we break it up into roughly Small, Medium, and Large), there are models that have been shown to consistently work well. Get an overview of the different options so you can get a sense of what will work best for you.
Does coworking make money?
The answer, of course, is that it depends—but it most certainly can, if you know the right approaches!
Is coworking saturated?
It's only becoming saturated in one narrow part of the market—when you get the right perspective on where coworking is going, you can see just how much opportunity remains untapped.
How big is the coworking market?
I'll give you a sense of what the potential market size is.
What does it cost to start a space?
While this will vary widely, you can use our handy charts (and the Business Model Template) to come up with some informed estimates.
What kind of software should I use?
Coworking space software is a big question mark that has to be addressed with the right approach, lest it take up way too much of your time.
The 4 key realities about coworking software
Before you make the jump into picking a platform, make sure you know what you're getting yourself into—there are some tradeoffs you just won't be able to avoid.
A quick overview of the different platforms
I offer a brief examination of the platforms, so you can get a vibe for what to investigate further.
How do I attract members?
Before you commit to building a space, it helps to understand how you'll go about getting members. I'll share with you my proven approach.
How to avoid the pit of doom
Too many coworking spaces make a critical mistake when it comes to building a space. Avoid that and you'll save yourself massive headaches!
Quick guide to attracting your first members
To save you time and get you on the right track, I'll share with you a step-by-step method for getting people on board with your project before it's even launched.
Based on my own experience, which I've taught to hundreds of other space owners, this is a surefire way to ensure you will have all the help you need!
Who am I?
Hi there! I'm Tony Bacigalupo. I've been in the coworking world since 2007, when I discovered a coworking group working out of a loft apartment in Manhattan.
Back then, Manhattan didn't have any coworking spaces, so I resolved to lead the charge to get the first one open.
That space, New Work City, opened for business in 2008. I used my own personal savings and the support of an amazing community that came together to get it started.
As Manhattan's first dedicated space, we achieved a lot of notoriety over the years. Along the way, I became active in the global coworking movement, teaching thousands of others how to build similar spaces everywhere.
When you purchase from me, you get more than files.
Now, I'm making the resources I've developed along the way available to you, so you can save time and avoid common mistakes.
I want you to build a thriving space, so you can help lots of people in your city work for themselves.
If you purchase this product or any of my other services, you wont just get a bunch of files—you'll get my dedication to helping you succeed.
Get in touch with me if you have any questions and I'll do my best to point you in the right direction.
To learn more about my services, check out my site:
BONUS: Get the full toolkit
We also offer a huge cache of templates, procedures, boilerplates and other handy resources in the Coworking Toolkit.
When you purchase the full toolkit, you also get access to the full Business Model Planning Kit!
Learn more here:
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