If your coworking space isn’t making you money, here’s how to adapt.
So you own or manage a co-working space? It’s often a love/hate relationship. Vibe is high, but margins and volume can be low. Building an ecosystem or community of ‘out of office’ workers, digital nomads and incubators might feel good, but does it translate to the bottom line?
According to the Global Coworking Survey only 40% of coworking spaces are profitable.
So how do you avoid being lumped into that 60%? Or more importantly, how do you make money from your coworking space?
Change your mindset
You’re doing public good, ie. building a community, fostering networking among like-minded individuals are excellent reasons to own or manage a coworking space. But unlike a public library, it shouldn’t stop there. You also need to have a viable business – a profitable one.
Once you’ve adopted this mindset, it’ll be much easier for you to think of ways and strategies to do more and earn more. Make changes and be agile. You should evolve with the times and embrace new software that will help lower overheads, marketing spend and expose your space to new clients with minimal or little effort.
SpareWorkspace.com.au is a great example of new technologies that should be embraced. As one of Australia’s leading short-term workspace marketplaces, the platform puts coworking spaces directly in front of freelancers and professionals, who are ready to book. Payments are taken directly though the platform which lowers administrative costs for coworking businesses.
Maximise all viable space
Your guests are probably already hosting informal networking events and pitch nights. Effectively you are offering event space, so why not start charging for it? Don’t just offer desks, look at the other rooms you have in your space for rent. In particular, meeting and boardrooms are in hot demand for individuals or people who are looking for quiet off-site spaces for their team meetings, collaborations and other events. Meeting rooms on Spare Workspace can fetch up to $500-$800/day. We’ll let you do the math on that.
Attract higher spending customers
Instead of just catering to freelancers or digital nomads, why not start marketing to a wider audience of business travellers and other professionals who are willing to pay more for convenience and accessibility? These professionals usually require extensive office support and concierge services and they’ll have more money to spend on any complementary services and products on offer.
Targeting small creative agencies and teams with more traditional daily 9-5 work hours and who love to meet in real life, is also a smart idea for building consistent and reliable revenue.
Upsell with complementary services
Right now, if you offer just one service: coworking, then it’s time for a change. Beyond desk space, consider offering an on-site barista, catering and/or concierge services – perhaps even nightly dinners.
Think of every need that your customer might have and meet it. These little things won’t just bring you more profit, they would also help to make your guests’ stay more memorable and fun. You can even get partners in surrounding areas on board and take a percentage of the profits. In a saturated market, these
There’s many ways of making your coworking space economically viable. With the continued rise of flexible working, we need coworking spaces to exist. But they also need to evolve with time and market demand to stay relevant and viable.
So do some experiments and try some new stuff. Start by listing your coworking space on Spare Workspace to attract those higher value clients who are happy to pay a premium for a short term desk or meeting room. There is no listing fee, and payment processing is free. List your workspace and start earning more today.
For more information, go to SpareWorkspace.com.au or speak to the Spare Workspace team at the GCUC conference.