5 Things To Know Before Opening A Coworking Space
Don’t expect to make a profit in your first 12months
Only about ¼ of newly opened coworking spaces are profitable after 12months. Keep your costs low in the first year, but don’t skimp on sales and marketing efforts to fill your space.
ABT — Always Be Touring
Touring your coworking space to potential members is the best way to convert them to paying members. Knowing that people joining a coworking space look for a social and enjoyable atmosphere above all else time your tours to show this off. Future members also look for interaction with others and community.
Don’t Open a Space in May or December
Joining a coworking space has an annual rhythm, new year / new businesses make January the best month to recruit new members. There’s a second peak later in the year during September and October — no surprise that December is the quietest month.
Only 20% of coworking space with 25 members make a profit. Profitability increases with the number of members, up to 50 members = 37% are profitable, 50–99 the number increases to 41%. If you’re planning on opening a bigger space do it in phases — don’t spend money fit out, furniture and even rent if you can do it later. Opening a space in phases means the space will look busy sooner.
Keep it Close
It’s best to open a coworking space within 1 mile (1.6km) of another coworking space to be profitable. Most unprofitable spaces are 2 miles (3km) or more apart.
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