Snippet: This post is aimed at entrepreneurs who are running or aiming to start a coworking business. We offer you tips to drive engagements within your shared office space.
The Coworking Industry TodayThe shared office theme is not new, this has been in the professional realm for quite a while. It is only now that we have given it fancy names such as ‘Coworking’.
This model of allowing entrepreneurs and business teams work out of a shared spaces to build to a community has worked wonders to boost local economies in many countries.
To understand where the coworking industry stands today, when compared to many years ago, and also to understand its true future potential – read this in depth article we wrote last month.
How Coworking is Different to Traditional Office SpacesTraditional office spaces are confined to workers from a single company. The entire workforce represents one brand and one kind of work ethic. Chances are that we might see workers talk the same, dress the same and behave the same – mainly due to cultural protocols. This is not a bad thing – but in today’s world, it seems extremely one dimensional.
Shared office spaces are purely community driven. These coworking spaces offer open desks, cafeterias, meeting rooms and other resources. Not that traditional offices aren’t equipped with the same. The clinching factor is disrupting the so called ‘sameness’ is when workers from different industries sit next to each other. The entire outlook towards work changes due to this effect
Is coworking really the future? | CNBC Explains
Tips to Drive Community Engagement
The aim of a perfectly run coworking business is to pay attention, take care of, and engage its asset, people. Here are five tips to drive engagement.
#1 Their accomplishments are your accomplishments
The working culture, dreams, targets, and goals move at a phenomenal pace at coworking spaces. A coworking space is a healthy mixture of small startups, individual entrepreneurs and large teams from established brands such as Microsoft or Orange (in France).
Accomplishments such as a new app launch, a business getting funded or acquired, reaching milestones etc. are to be shared with and highlighted. The more, you – as a coworking business care and encourage your assets, the more members you will retain and drive new ones too
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Mediums such as weekly newsletters and social media act as the perfect platform to share news within the community, as well as your prospects. You can even generate good content via blog interviews and short videos.
The idea is to show the world that your coworking community is made of hardworking winners. The more content you publish and circulate, you uplift your brand image.
People love attention – especially professional attention and recognition. Any content you produce becomes immediately shareable, your community members would love to share their own success stories published on your blog or social media sites. Thereby increasing relevant traffic to your website.
#2 Promote your community members as industry experts
The interesting aspect about people who work out of shared office spaces is that most of them are really accomplished and good at what they do. As a business, you can project or promote them as industry experts. The similar theme of creating blog posts and short video interviews can work wonders to showcase and highlight your community
Pricing a Desk as Easy as Clicking a Button - WeWork
Prepare a list of questions which matter to your prospects. Such as – tips on raising funds, launching an IPO, preparing an investor pitch deck etc. These are the factors which help you reach the right audience to generate future business – and also retain your existing clients
#3 Let the community speak about you
Reach out to premium members who have accomplished great things with their business, working out of your set up. Create a list of topics and ask them to write about it in the form of a blog post. This is a complete win-win situation. As you get to recognize top talent and also giving them an influential platform such as your website or blog to grow their network.
#4 Take your community to the world
By now we have put a lot of emphasis on the power of content – especially shared and guest content. Guest posts and video interviews are just the beginning. This highlights just one person’s or team’s story. Another great way to generate interesting content is through round table meet ups.
Gather a few top performing or influential members from your community. It is better if you make this is a frequent (monthly) thing. The idea of this round up is to ask questions about how these people conduct their day-to-day tasks and tackle challenges.
WeWork Rebuilds Its App - WeWork
You can even create book club – where your community members suggest the best books or articles they have read. This can be collected and shared on your blog. Such content is share-worthy. It immediately boosts your business’s social currency.
#5 Share your community knowledge and skills
Startups and individual entrepreneurs develop remarkable skills to get things done on the cheap and quickly. As in a dynamic business world, time is considered money.
Hand pick some members from your community and offer them to teach a webinar or an in-class workshop about topics which matter to your members. Research and make a list of topics such as digital marketing, pitching, investor relations, preparing presentations, business lingo, financial planning etc. This is what matters to your clients, give them what they need, and they will love you back a million times.
VP of Community Leni Zneimer
Create a calendar and invite members for such workshops. This way you get the best out of each event. Create a frequent list of such workshops, and they will drive a lot of traffic to your site and most importantly – it will help you retain members. Show that you care.
We are sure that there are more than 5 ways to drive community engagement. What else do you think can be done? Do you have innovative ideas? Do share them in the comments section below.
Managing a Coworking Business can be Simplified with the Right Software
Managing a coworking business which is diversified in culture as well as service variety is a challenging task. Did you know that many aspects of a coworking business can be managed, administered and automated with the right software application.
Flagship coworking brands such as WeWork have mastered this service delivery. Visitors can easily check in on the phone. All updates within the community is delivered through their flagship app. Members can book resources on the go etc.
Isn’t building a website, a mobile app and integrating them both via cloud services an expensive effort? Well, no, to be honest.
Have you used Airbnb.com? Or its mobile app? Aren’t their platforms so easy to use? So, here’s the deal. We have cloned the Airbnb platforms (web and mobile) and have redesigned in a way to suit the nature of a coworking business. Think of it as an Airbnb for your coworking business. We call it RentCowork.
Not only that, we offer round the clock tech support and free software upgrades (web and mobile) for life. The best thing about RentCowork is that it is 100% customizable. Put your own logo, color scheme, fonts etc. It is your platform, mould it the way you want it.
Thinking if the platform may not be the right fit for your business? Do not worry, check out the LIVE DEMO to experience the platform. Also, you can download the LITE version of the software for free – to try out the features for real.
If you have any questions about the platform or service or design, just reach out to us at [email protected]
The coworking industry has more than what meets the eye. How can you plan and succeed in this growing, ever competitive industry? Let’s look at the basics.
In this post: we look at how to form a stable business model for your coworking business, understand your real target market, services you should or could offer to drive business and finally how to manage all these tasks with a help of software.
The coworking industry snapshot
The world is changing the way it creates products and services, especially with globalization and automation. This innovation has trickled down to the way offices are run and how and where people (us and you) work. Gone are the days of massive HQs in every city where thousands throng to work in one massive, tall office building. The working space has been democratized by coworking or shared office space options.
The shared office model is not new, it has been in existence for decades, it’s only now that the term ‘coworking’ has swept the business world by its feet. It is estimated that 3000 coworking businesses crop up each year, around the world. Out of which 63% are brand new spaces (not extensions of existing coworking brands). As of the end of 2018, more than a million people work from these shared office spaces, and the number is projected to grow upwards.
The market is ripe for innovative, yet small to medium sized businesses to thrive and generate revenue sustainably. However, we got to pay attention to the fundamentals of laying the groundwork for your coworking business to grow.
Coworking hack: Don’t know what all is involved in running a coworking business? Play this game.
Understand your business model and target market
The mantra for coworking businesses is to become a platform for communities, give them access to things which helps them achieve day-to-day tasks with ease and let the communities drive your brand and business. This forms a bedrock for sustainable success in the coworking business. Just this is not enough, though.
As a business, you need to understand what kind of people or companies you want to work out of your shared office space. Do you want to open your floor to everybody? Or should you pick and choose a specific type of customer, one who is willing to pay and participate in your community driven business?
The next step is to chalk out your membership model, or models to be precise. Just one monthly or annual membership model may not work. It may not be enticing enough for people or companies who want to experience your coworking space for a few weeks or months before they commit for a longer duration. It might be wise to create a variety of onboarding memberships such as hourly, daily, weekly and monthly plans.
Once you know who to target (multiple sources), and what to offer, now comes the diversification of business sources. Here are the basic varieties of models to choose from:
Only coworking: here the idea is to convert your entire floor space dedicated to desks, cubicles, and offices only. And drive business from direct walkins.
Some coworking and a few partnerships: you can dedicate 80% of floor space for direct walkins and the remaining 20% for partnership driven activities. Many tech companies are open to sponsor your space to conduct their flagship activities. If your coworking space is in a city with tremendous amount of startup vibe, this combination might give you some food for thought.
Events and other services: you can let majority of the revenue to be driven from walkins and partnerships, and dedicate a small percentage to events and other services. Events allow you to rent out space for community activities and thereby grow your network. Besides, you can create a cafe bar and open it to members only for coffee and snacks and generate revenue this way as well.
An open cafe or bar for all: you could go one step further and turn half your space into a cafe bar and let the market identify you as a place for hangout for business and startup folk, and nonchalantly convert some floor space for coworking desks, office, and cubicles. This way, you differentiate your brand identity in the market.
What services should you offer
Defining your business model was the first task to accomplish, once that is ticked off your checklist, we move onto the services you want to offer in your office space. The idea is to offer the services which would enhance productivity for your users, and a few services to help them relax, which will eventually lower attrition rates and increase new signups sustainably.
What do your local audience, who seek to work out of shared office spaces want? Conduct some market research to understand your ideal customer in a better way. Especially to understand how much they are willing to pay for the service you offer. Gathering such precise data is a difficult task, the idea of your research should take you deeper into your audience’s psyche. Based on this, you begin charting various membership programs to suit majority of your audience.
The idea of forming membership plans is to strike a balance between fixed users and flexible users. If you generate a lot of fixed users who pay the same each month, then it will be nigh on impossible to grow revenue significantly in your first year. On the other hand, if you let more flexible users (daily, weekly) then you would fail to generate a constant flow income. A healthy mixture of both fixed and flexible should help you draw variety of users.
Here are some common Coworking plans:
By the hour
A part of your office space can and should be dedicated to offer complementary services to your community. You can include some meeting rooms for members to interact with their visitors and clients, a reception service, a physical PO box service, printer and scanner access etc. You can begin by offering these services for a fixed set of new signups each month and charge for the rest of the community.
Conducting events regularly will help you achieve two things; a) events work as a great marketing strategy where it drives footfall into your coworking space often and b) more people interacting at your shared office space means a terrific opportunity for networking. With the right collaterals and digital marketing strategies, you can convert some of your event participants into your customers. There are tech companies who would love to pay for a hip location to host All-hands-meet ups and quarterly or annual company events and pay handsome rent for such a space.
Hire professionals, or look into your existing community of customers and handpick some to conduct free workshops for your target audience. If you operate your coworking space during weekdays, then conducting workshops during weekends would drive walkins, and convert some of the captive audience as customers using cross-selling opportunities.
A cafe bar
You can dedicate a reasonable amount of floor space for a cafe bar. Open it to the general public as well as your community members, and you can generate revenue. Or if you wish to make is accessible exclusively to community members only, then highlight this service to drive more conversions during your sales and marketing activities.
Opening the cafe bar exclusively to members may not make you a lot of revenue, but community members will highly value the exclusivity and further your brand identity.
Open your door to incubators
If your city is a startup hub, then reach out to resident incubators to become a part of your community. Offer them a 20 to 30% commission for each desk or space occupied. As incubators handpick their projects and work hard to deliver success, they are sure to stick around using your coworking space longer than anyone.
What else can you offer?
With freelance individuals, brand new startups, and large corporations in your community, they all perform a specific set of tasks each month or year, such as filing taxes, creating investor pitches and presentations or they might need a quick courier service to send important documents. The opportunities are quite a few. You can either hire people to render these services to your members or tie up with a local partner and share revenue with them.
What KPIs should you pay attention to?
Once your coworking space is up and running, you need to control and measure your business performance. Below are some metrics and indicators to help you:
Coworking business is a dynamic one and is ripe to earn a lot of revenue if you play the cards right. Here are some performance indicators you should closely monitor to assess your business health.
Total floor size of your business in terms of sq meter
What is your occupation rate?
How much income do you generate per square meter?
How many coworkers do you house per workstation?
Conduct surveys to understand member satisfaction
What is your monthly churn rate?
Monitor every Dollar or Euro spent for business
How do you manage all this?
Obviously, you can’t possibly manage all this manually. This is where you need the right set of software applications to help you integrate your a) complete business model, b) marketing activity, and c) measure your performance, even down to a day-to-day level. We (Rentcubo) are a software development team based out of India’s Silicon Valley, Bengaluru.
We have a vibrant startup culture here and we have been a part of this vibe and continue to do so by creating a lot of value to local and international startups with web and mobile app development service. Our RentWork script is one such successful product we have delivered to many coworking and shared office space businesses.
Our script is robust and flexible, offers free upgrades for life, and we have a highly experienced tech team in-house to help you with product installation and customization. Visit our RentWork page now to know more and signup.
Coworking spaces are quickly gaining momentum across the globe for a couple of years. The concept of shared office spaces has been in the market for a while, but its popularity has been rising in recent years with entrepreneurs and freelancers looking for dynamic and flexible workspaces. Coworking spaces have disrupted the traditional work environment and are emerging as a rapidly growing sector and are expected to continue in 2020 as well. According to Statista, there will be over 22,400 coworking spaces by the beginning of 2020.
Coworking spaces are shared office spaces that allow both individuals and businesses to share the office space and resources like desks, meeting rooms, and collaborative areas. With the rising demand for coworking spaces among people, more and more brands are entering into the coworking space marketplace business to make it easy for people to find and book coworking spaces. But how much does building an Airbnb for coworking cost?
If you are looking for different ways on how to start a coworking marketplace, you are at the right place. In this blog, we will discuss the cost to create a coworking marketplace, its business model, essential features, and other factors that influence the overall cost.
The business modelBasically, coworking space marketplaces work exactly like Airbnb. While Airbnb is a peer-peer marketplace that connects travelers and hosts, coworking space marketplaces connect shared office space providers and businesses looking for shared office space rentals.
Just like Airbnb, coworking management software is also made for a mass market that connects different markets- Coworking space owners and entrepreneurs or freelancers through customized user experiences. When it comes to the revenue strategy, the platform makes the money from the commission for hosting listings and renting from each booking. For example, Airbnb takes a hosting fee of 3% and a rental fee of 6%-12% for each booking. While the basic revenue model of a peer-peer coworking management software is the commission model, you can employ other monetization strategies like premium listing, in-app purchases, etc.
The Cost to set up a coworking marketplace
Coworking marketplaces are complex and require a lot of work. The overall cost of starting a coworking marketplace depends on a lot of factors. Of course, the functionalities of the platform affect the overall cost. The good news is that there are cost-effective alternatives when it comes to building coworking marketplaces.
Let’s explore the factors that affect the shared office space cost.
Core features and functionalities
When you want to launch a coworking marketplace, it is important to differentiate between the core features and additional features of the platform. The coworking platform has three types of users- The coworking space owners, the renters, and the admin. The most complex part of development is in implementing the features for the service providers. Here are the common features and functionalities you must implement in your coworking marketplace.
To start using your coworking platform, both users (excluding admin) have to register and sign in. The basic option is to allow users to register using email and password registration. You can also allow social media signup to make it more convenient for users. Once the registration is done, users must be able to log into the platform.
Set up user profiles
After signing in, users must be able to create user profiles with their personal information like name, mail id, passwords, etc.
Coworking space owners must be able to list their shared office spaces in your platform with details like name, location, type, and images.
This is one of the important features of any coworking marketplace to help users find the right match. Your platform must have an advanced search system that allows users to search for coworking spaces based on location, availability, and various other factors.
The advanced booking system of the coworking space marketplace will allow users to check the availability of coworking spaces for a particular time frame. After inputting the desired date, the user must be able to see a list of suitable coworking spaces with all essential details like descriptions, photos, reviews, etc. Once a user makes a booking, the service provider will receive a notification and can choose to accept or decline the booking.
An in-app messaging system is essential to facilitate communication between service providers and renters to discuss things regarding booking a coworking space. This is an important feature that allows establishing trust between users.
If you are thinking about how to start a coworking marketplace business, this is one of the most important functions you must implement in your platform. Integrate a full-fledged online payment in your coworking space marketplace to make it easy for renters to pay for booked space and for service providers to receive payment for their rental services. The online payment system comes handy for users to make the payment on the go and for the admin to earn commissions from each transaction that happens in the marketplace.
Building a coworking platform
The most important part of launching a coworking business is to build a coworking marketplace. Building a coworking platform involves planning how to set up one. Do you want to build it from scratch or build the platform efficiently using a white label solution? These factors will play a major role in deciding the overall cost to set up a coworking marketplace.
Let’s cover the two alternatives and the cost involved.
• Building a coworking marketplace from scratch
• Building a coworking marketplace using a readymade script
Building a coworking marketplace from scratch
Creating a coworking marketplace from scratch is the most elaborate and costly method. The cost of starting a coworking marketplace depends on the unique requirements of your platform. There are a lot of aspects that influence the overall cost like the technical complexity, the number of platforms, the number of developers, standard or customized design, etc.
Each feature of your platform must be created and configured on both the client-side and server-side. The server-side tech stack is one of the significant and the most time-consuming part of the entire development process.
The overall cost to build an Airbnb for coworking space can range anywhere between $50,000-$100,000, or more depending on the average rate for a developer. Globally the price differs for an hour of developers and can range anywhere between $20-$500 per hour.
Building a coworking marketplace using a readymade script
Using a white label script to build your coworking marketplace is an efficient and cost-effective way to reduce the coworking space cost significantly. A readymade script is ready to deploy a program that helps to create a peer-peer rental marketplace with all the features and functionalities similar to Airbnb.
If you are thinking about how to start a coworking marketplace on a budget, a clone script saves you a lot of time, effort, and yes, a significant amount of money as well. A good script comes with all features like powerful search, advanced filters, booking management system, communication system, online payment integration, multi-currency support, admin dashboard, and monetization features. And, all this will just cost you around $1000-$2000 alone with all the customizations you require.
Wrapping it up!The trend of coworking space is increasing and is going to continue the same in 2020 as well. The cost of starting a coworking marketplace with a clone script is quite affordable when compared with the cost to build the marketplace from scratch. Building a peer-peer platform for your coworking space business is a better alternative as the work is already automated for you. You can customize it to incorporate any degree of personalization you require to make the final product unique.
Even with the high demand, there is a lack of an efficient coworking management software that connects two user groups to facilitate business between them. For the same reason, launching coworking management software will always be a lucrative business.