4 Lessons Not So Savvy Coworking Space Owners Learn the Hard Way
Creating co-working spaces are some of the trendiest businesses today. In 2015, the industry raised over $1 billion worldwide — mostly funneled to American companies. An integral element of the growing culture of sharing, they serve the needs of the increasing number of professionals plying their trade remotely and offer wonderful networking opportunities.
However, like other entrepreneurial opportunities, they’re not without great risks. While opening a co-working space has attractive promises, learn the lessons from these mistakes before pulling the trigger:
Assuming There’s Demand
Rule number one is to never assume that this business can thrive anywhere. You can’t expect people to come just because you built a local co-working hub. Do your research to determine whether there’s enough number of non-office-based professionals in the area. Even if there’s a market, find out whether they’re sold on the idea and its benefits.
Getting No Help
A co-working space is a product, and product alone (no matter how good it may be) isn’t enough to run a successful business. You need to understand what matters and create a system that can make the venture sustainable. Sadly, creating a profitable business model takes time. If you don’t franchise a recognizable brand with its tried and tested system, you might run out of funds before you can fully learn the ropes.
Designing a Big Office
The biggest misconception about co-working spaces is that they’re just glorified offices. This couldn’t be further from the truth. Yes, people use them for work, but they should come with thoughtful amenities and have floor plans that suit the individual needs of different professionals. Subtle design flaws can make a major impact on revenue.
Thinking About It as a Real Estate Venture
Contrary to popular belief, a co-working space is more of a hospitality business than a real estate one. Your biggest asset is the service you provide, and the space itself only comes second.
Co-working spaces can pay dividends if you know what you’re doing. If you’re an aspiring entrepreneur and a fan of what these modern offices stand for, then they can be a viable investment for you.