2023 Future Of Workspace Forecast : How to Start Coworking Space Business

The coworking industry is seeing more and more positive trends that are set to continue well into the new year. The real estate industry is starting to see how coworking spaces have the potential to change the game entirely.

With the world slowly adapting to a new normal post-pandemic, businesses and workers are still trying to determine how, when and where work should be done. However, coworking companies and centers are beginning to offer solutions to the problem. This is reflected in the industry’s growth.

According to a recent report from Coworking Insights, the number of coworking spaces is projected to increase to 41,975 by the end of 2024.

By 2023, coworking spaces will still be popular places for professionals to come together and collaborate. We will see a rise in the number of coworking initiatives and investment in existing and new coworking brands by commercial real estate agents. The real estate industry recognizes the potential of coworking spaces to change the game when it comes to networking opportunities for professionals from different industries.

Are you looking to start a coworking space company? We can help! We have over 7 years of experience helping entrepreneurs & property owners to start and grow their Coworking space business. We have the experience, resources, and knowledge to help you create a great business plan. So if you’re looking to start your own coworking space company, don’t hesitate to reach out – we can help make your dream a reality.

Sources of Funding for Coworking Space Businesses

1st find out the Anchor client for your space, who will occupied at least 30-45% space. Anchor client will make sure your decision to onboard the property, feasibility of the location & also create source of fund to create the space.

  • If you’re an entrepreneur with an anchor client, the property owner will invest in the space’s capital expenses (Capex). The anchor client’s rental income will then cover the space’s operational expenses (Opex).
  • If you’re a property owner with an anchor client, you can onboard your investor property. They will then invest in Capex to create the space.

Alternatively, you can contact Propques’ expert team to help/guide you in finding your first anchor client for your coworking space.

Right type of Coworking Space

As per your anchor client profile & requirement you can decide the type of coworking space business you are operating.

For example, you might specialize in one of the following types of coworking space businesses:

  1. Industry specialized coworking space: This type of coworking space caters to workers and entrepreneurs in a specific industry such as graphic designers, digital media professionals, or writers.
  2. Business incubator: This type of coworking space is specifically for startups and entrepreneurs to work on new business ventures in a supportive environment.
  3. Private coworking space: This type of coworking space is usually rented out by a single company.
  4. Open coworking space: This is the most common type of coworking space, where anyone can rent a desk or a room for a fee.

In addition to explaining the type of coworking space business you will operate, the company overview needs to provide background on the business.

To begin, Contact us , We will walk you through all facets of the strategic planning process and coworking space pricing model to define your business model, software and IT considerations. Then and only then, will our coworking strategists lay out the financial plan and projections for the next 5 years.

Industry Analysis

It’s important to include an industry analysis in your coworking space business plan. Here’s why: 

1. It will educate you about the coworking space industry and help you understand the market you’re operating in.

2. Market research can improve your marketing strategy, especially if your analysis identifies market trends.

3. An industry analysis will give you right thought to design the salable layout of the space.

We can save your time & optimize the result , contact us ,our experts conduct a comprehensive review of the current market conditions and potential location for you. This review will help you understand the coworking industry better and take well-informed business decisions.

Competitive Analysis

Your competitive analysis should identify both your direct and indirect competitors. This way, you can focus on the strategies that will help you stand out from the businesses that are directly competing with your product or service.

Direct competitors are other businesses that offer coworking spaces. Indirect competitors are other places people gather to work, such as conference rooms, libraries, and coffee shops. You need to mention such competition in your analysis as well.

Competitor overviews, strengths, and weaknesses. Unless you have first-hand experience working for your competitors, it may be difficult to know everything about them. However, you should try to research key aspects of their businesses such as their company overviews, their strengths, and their weaknesses. Having this knowledge will give you a competitive edge and help you understand how to best position your own business in the market.

  • What types of customers do they serve?
  • What type of coworking space business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them or you can contact us we will provide you most acceptable pricing & space layout by doing competitive analysis of your property location.

Marketing Plan

In your marketing strategy section, you should include the traditional four P’s: Product, Price, Place, Promotion. For a coworking space business plan, your marketing strategy should be as follows:

Product: Mention the type of coworking space company you have in your business overview.

Price: Outline the prices you offer and how they compare to other competitors in the market. 

Place: Place refers to the physical location of your coworking space company. 

Promotion: How will you get the word out about your company?

Our marketing team does an exceptional job of delivering the right programs to you, depending on your real estate location, concept, and business model. With these programs, you will witness a boost in quality lead generation and client retention.

  • Website & SEO Analysis
  • 3rd Party Referral Relationships review
  • Local Area Marketing Strategy
  • Events & Member Marketing

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Daily tasks, or short-term processes, are all of the regular day-to-day responsibilities involved in running your coworking space business. This can include answering calls, scheduling cleaning services, ordering office supplies, and collecting payments from clients, for example.

In contrast, long-term goals are the major milestones you hope to achieve over a period of time. These might include booking your Xth client by a certain date, reaching $X in revenue, or expanding your coworking space business to a new city. Whatever they are, make sure your long-term goals are specific and realistic so you have a clear idea of what you need to do to achieve them.

Contact us , Our experts provide operational audits and rescues, and the right set of tools to run an effective and efficient business.

  • Membership Models & Pricing
  • Technology – is it working for or against you
  • Team Ratios, Roles & Responsibilities
  • Billing Systems & Procedure
  • Best Practice & Excellence Programs

Management Team

A successful coworking space business needs a strong management team in order to demonstrate its potential for success. Key players should have their backgrounds highlighted, with an emphasis on those skills and experiences which show their ability to grow a company.

Ideally, you and/or your team members will have direct experience in managing coworking space businesses. If this is the case, highlight this experience and expertise. But also highlight any other experience which you think will help your business succeed.

If you follow the process above, by the time you are done, you will truly be an expert. You will understand the coworking space industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful coworking space business.

If you want more information to start your own coworking space and control your business 100% by minimizing risks, contact us. We offer integral service for developing your coworking project from conceptualization to business implementation until the 3rd or 5th year. We operate the space for you until you learn to manage it, and we share with you all the know-how so that you continue to be a successful operator.

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