Coworking space business has become an integral part of the real estate business. A lot of entrepreneurs, startup founders, and business owners prefer working in these shared spaces as it gives an opportunity to meet like-minded people, network, and brainstorm with them. This kind of space enables a variety of collaborations and at the same time aids the growth of the startup ecosystem. Many entrepreneurs even rent out their own space in order to encourage this coworking environment.
Steps to be followed to start a coworking space business are as follows:
- Plan the finances: You need to start by creating an estimation of the costs involved in such kind of business. For instance, Initial costs in a coworking space business include Rent, furniture, networking equipment, projector, insurance, Wireless connection, cleaning supplies, and so on. Operating costs include costs like electricity, internet, coffee, cleaning service, office supplies, management software, employee salaries, and so on. The ideal way to start this kind of business is to start with a small space in a prime location and then, later on, expand it further depending on the revenues generated.
- Deciding a target market: Mainly coworking spaces focus on small entrepreneurs, business owners, or startup founders in the local community or the neighborhood. It is essential to start such a kind of business in a good location in order to attract entrepreneurs.
- Understanding the revenue generation model: Revenue is mainly generated through the subscription model wherein the members pay in advance for using the services of the coworking space. Members may pay by the day, the week, or the month. You can offer various packages and even give discounts on long term subscriptions. Additionally, coworking spaces offer other services and charge for them like renting out conference rooms, conducting seminars and charging for the same, and so on.
- Forming a legal entity: This involves forming and registering a company and complying with all the legal formalities.
- Open a business bank account: It is important to separate personal finances from the business. This also makes it easier to keep records of business transactions, accounting, and tax filing.
- Get Business Insurance: Getting insurance will protect your business against the occurrence of covered losses.
- Buying/ Leasing/ Franchising space: Once you have finalized the location, then you need to decide whether you want to buy the property or rent it on lease. It's recommended leasing the property as buying involves a huge initial investment.
- Design of the space: It is important to plan out the design of the space in a manner that appeals to all kinds of people. Additionally, the design should be such which utilizes the space to maximum capacity. As it is a space that encourages networking and collaborations to ensure that the design is vibrant and quirky. For instance, offering different options to the users like desk and chairs, enclosed rooms, conference rooms, pantry, relaxation areas, seminar rooms, and so on.
- Building a team: While starting you need to ensure that you hire the right people in your team. You need a team which complements you and your skills. You need people to attend to various segments like marketing, finance, research, IT, and so on.
- Defining your brand: You need to offer something different in order to attract more people to your coworking space. For instance, a deal like 2 free seminars of members’ choice on a monthly subscription. In order to attract customers again, you need to ensure the highest level of engagement which can be attained by publishing a weekly or monthly newsletter, maintaining photo boards, hosting several events and seminars, offering business consultancy, and so on.
- Marketing and establishing presence: Ensure that you have a catchy and rememberable name. Thereafter, market your coworking space on radios, billboards in popular locations, distribution of fliers, events and seminars, news channels, blogs, social media platforms like Instagram, and so on. Nowadays people spend most of their time on the internet, so it is beneficial to come up with effective digital marketing strategies in order to attract target customers.
- Creating and maintaining a website: The first thing that people do after hearing a new name is to search it online. Therefore, having a user-friendly website that lists down all the important things like the exact pictures, services offered, location, directions to reach, testimonials, collaborations, and so on is essential. Also, later on, you can add more things to your website like allowing customers to select a time slot online and pay online.
Converting your Retail Space into Coworking business:
If you have a business and have some vacant space in your office, you can easily convert it into a coworking space and generate some extra revenue for yourself. You need to ensure you have proper amenities like enough power outlets, high-speed internet, proper staff, inspiring ambiance. Once you have these things you need to design your space accordingly. You need to upload exact photos of the space on your website, a new brand name or a new product on your existing website, implement a paid marketing strategy (brochures, digital marketing, and so on), creating search engine optimization, training staff and ensuring that they warmly welcome the members, and so on.
How can we help?
If you want to start a coworking space business or are looking to convert your vacant office space into a coworking space, HBF Direct Limited can help you with the process. We can help you with registering your business, complying with legal formalities, marketing, website development and maintenance, reputation management, software development, hiring the right people, and so on. We can also collaborate with you and offer your clients additional consultancy services which can help their business grow. This will ensure that your clients keep coming again and again. Contact us and let us help you grow and increase your revenues!