Over the last few years the co working movement has gone from small funky spaces in major cities to work spaces of all shapes and sizes all over the world. Resources like coworking wikis and coworking blogs have been set up to gather like-minded individuals and help those opening co working spaces in their own cities. Coworking spaces are built around the idea of community-building and sustainability. However, they are still businesses that must be profitable and growth-oriented. Since co working is still evolving as a workspace paradigm and business models vary, I thought I would share some best practices if you are thinking about starting a co working space in your town.
Gauge Interest to See If There is a Demand
It seems logical that the first thing you get a feel for is if people are interested in a space like this. You would be surprised how many still have a “build it and they will come” mentality. You should gauge interest in a co working space by talking to those who would be initial “launch tenants” to get a sense of how many would actually sign up from day one. Potential launch tenant can be small business people who currently work out of their home, their cars, or are “mobile warriors” in coffee shops and other local wifi hot spots.
Other potentials that can be great to have in your coworking space are those starting new ventures or anyone else who has a small business dream and the drive to chase it. It important to note that you shouldn’t limit yourself to the types of people who you think might need a coworking space. Talk to people from all different fields and occupations that share a need for what your space can offer.
Build the community first
Once you see that there is demand in your area and that potential tenants are nearby and interested, the next step is not actually to build the space. Rather, it is to build the momentum and a sense of community. One way to do this is hold a Jelly session. Jellies are casual work events. People gather in a person’s home, a coffee shop or an office to work together for a day. Check out the video below for a better idea: it shows a Jelly session held in a person’s home in the New York City area.
What is Jelly? from Amit Gupta on Vimeo.
Since these meetings started in 2006, they’ve gone from strictly New York events to popping up all over. We did a few when I lived in Columbia, MD out of a great Starbucks that had an unofficial coworking group there already. If there’s a group already meeting somewhere near you, see if you can host for a day. If there isn’t a group near you, start one. It’s a good way to gauge interest in coworking near you and will give you a taste of what it might be like to host a space.
Know the kind of space you need for now and in the future
There are spaces of all shapes and sizes where coworking would work. The first and most basic question to answer is the location. This would naturally be near where all your current Jelly or Meetup group members live. You want to take them with you now that you have the momentum. You’ll also need the basics like Wifi, a place to spread out with laptops, and access to conference rooms. Also see if there are other amenities your members are expecting before assuming they need them. Many spaces I visited go overboard early buying printers, copiers, fax machines, and other “nice to haves” that rarely get used. Save your money and buy what is on their “have to have” list and upgrade later if the need arises.
Understand the numbers to make it work
Once you have a sense of your space and a committed group of launch tenants, know what it will cost to run your coworking community. Draw up a budget with all of your expenses. Create a revenue model that includes your committed launch tenant income and different options for new members (daily drop-in, part-time weekly) and be very conservative in your growth estimates.
The best way to get some validation in this area is to talk to other coworking communities to see what they spend their money on so you don’t get surprised. I know one person who, before they started their coworking space, visited 20 spaces in different cities to see what worked and what didn’t. If the numbers work, move ahead. If not, circle up your group again and see what you can come up with. It may mean doing more Jelly sessions and building up your community, sharing space in someone’s home or at a local business, or other “creative” arrangements until you’re finally ready to launch your own space.
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