The coworking space business model is a new venture that has shattered one company's existing office practice model. Renting an office is a huge responsibility and requires a lump sum amount to be invested each month for rent, and the maintenance of the office alone is a huge cost for the business owner.
The innovative idea of coworking office space business has solved these problems.A coworking space business model shares the building resources and amenities but works independently. It is not only a way to make money, but it also helps widen the business circle and revenue sources. Usually, newcomers prefer coworking space for startups.This article will help you understand how you can make money with a coworking space plan for business.
Did you know?
If you are a small business owner looking for a coworking space, you’ve made the right choice! It has lower overhead costs, more flexible terms in terms of leasing the area, higher return on investment, and increased employees' productivity.
What Is a Coworking Space Business Model?
To understand the idea of the coworking space business model, we must understand the term USP or unique selling proposition. A unique selling proposition is a distinct feature of the coworking space idea, and the coworking space’s unique feature differentiates it from other competitors. With the increase in USPs, it has become a challenge for startup coworking spaces businesses to opt for a better business model.
A coworking office space business is a venture where the building resources and amenities are shared with coworking businesses, but they work independently. Thus, renting an office and its maintenance are divided, saving the companies good money. Moreover, the conference halls, cafeterias and other spaces can also be rented according to requirements.
A good coworking plan can raise good revenue from this type of business. With the new era of startups, coworking spaces businesses are affordable to them, and they can also rent coworking space as a virtual office without any hassle. They can carry on their business from home.
The pandemic was a nightmare and has affected every sector. The business sectors faced huge massacres. Those who lost their business had to start again from the base zero. Many disputes were filed in the court where the companies and business organisations had to pay rent according to the lease but were not using the space. The lease and rents are high, but the idea of coworking space has changed this concept and has helped to start a new business-friendly environment.
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Coworking Space Requirements
Here are some important steps that can help in coworking space planning. The points mentioned below can help in creating an organic business plan. These are some mandatory coworking business requirements.
Location
The location of a coworking space is of utmost importance. The infrastructure and the building should be attractive and well built and must be at a premium location. It will attract and motivate offices and businesses to renting a place in that building. The location should be chosen with easy transportation from everywhere.
The location can be near other office complexes and buildings with many employees. It will benefit the clients who rent a place and widen their exposure to the business world.
Licence and Permits
Any business startup in the Indian market needs to be legalised to avoid any sort of legal issue after the setup of the business. The business needs to register itself and get a GST certificate, and other types of licences and permits should also be issued beforehand to avoid this hassle. In India, we have certain rules and guidelines to be followed.Opening a startup coworking space is not easy and requires multiple rounds of approvals from government officials.Letting space for a restaurant or hotel requires legal work and can be time-consuming.
Deciding Services
The location will play an important role in understanding and deciding the type of service your coworking space should provide. Depending on which different resources are needed to be addressed.
Basic amenities like washrooms, elevators, water purifiers, air-conditioners, etc., will be needed no matter what service the space provides. A conference room, a hall and a cafeteria can bring more customers. The space’s decor should be comforting, according to the facilities provided. The services can also increase businesses that prefer more or less the same facility. The interior should be relaxing and apt for the working environment.
Understanding Customer Requirements
Understanding customers is yet another practice that helps any business grow. Your client’s comfort should be the priority, and a cordial agreement should be made to avoid any legal or financial issues.
Before letting any space make sure to make a list of requirements of each customer, new facilities they want and cordial sharing of available resources between customers. Reviews are another important thing; take notes of reviews from each customer to provide better services in the future.
Target customers for coworking space plans are mostly freelancers and small business startups. Therefore the space should be affordable to attract young professionals with a small staff and low budget.
Marketing
Marketing is the need of every business to bring their company forward in the market. The best way of marketing the modern day is social media. Facebook pages, websites and Instagram are the best online platforms to advertise your business. Posting in Facebook business groups and developing a good SEO can help attract customers. Other marketing platforms are newspapers, pamphlets, posters, news channel advertisements, etc.Other important tools for marketing are communicating with other businesses, reaching out to friends in business, and providing quality services. Quality services provided usually self-markets a business and help it to grow.
Possible Partnership
Partnership with nearby cafeteria and restaurant for food supply in the cafeteria can enhance the partnership in the location and with the customers. The decoration of the space in the event with the help of an event manager can help nurture both the businesses. Coworking space planning should involve partnerships.
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WeWork Business Model
WeWork business model provides co-working spaces to startups, small businesses, or medium to larger companies at affordable rents for longer lease periods. WeWork was first launched officially in New York’s SoHo in 2011. The concept of leasing space for business and startup gained popularity, and by 2014 it was the fastest-growing coworking office space business in New York.
The WeWork business model included some of the vitals, which helps them grow successfully and in a short time.
The first concept of the model was to rent out the spaces to independent professionals or freelancers and enterprises of small to medium-sized businesses.
The second concept was to provide a community-based atmosphere by choosing a premium office location. Other than that, their international expansion and parenting with WeLive have also helped them grow. The flexible rents and leases are the star points of the venture, which target all sectors of the business world.
Another thing that helped WeWork to gain popularity was its customer service. They provide direct customer services without the involvement of a third party. It helps both the customer and WeWork to understand the requirements of each other and call out legal issues, if any.
Conclusion
The coworking space business model is a business that can make money in various ways like renting office areas, renting conference halls and cafeterias for programmes and renting themselves as a virtual office. The innovative idea of coworking office space business has solved many problems like rent, high maintenance, etc. The coworking space business model shares the building resources and amenities but works independently. It is not only a way to make money, but it also helps widen the business circle and revenue sources.
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