Coworking Space Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Coworking Space Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Coworking Space business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be available for download after your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Coworking spaces are in very high demand among freelancers as well as entrepreneurs. Although many people take to working at home, some entrepreneurs and freelancers feel more comfortable working within an office space in order to differentiate their home life from the work life. As such, working spaces provide these individuals with a low-cost method of having a small office they can use at any time. These facilities often provide amenities such as a kitchen, free wireless Internet, mail services, as well as secretarial services to their tenants. In some cases, a coworking space may offer a number of different services in an à la carte fashion in order to ensure the people can affordably rent space from the business on an ongoing basis. One of the nice things about owning and operating a coworking space style office building is that these businesses are able to generate income from a number of different revenue streams beyond just a standard monthly rental fee.
The start up costs associated with these types of businesses vary greatly given that it is dependent on whether or not a building is going to be purchased and whether or not it will be leased from a third party. Typically, the cost for an office rental space in a coworking style office typically runs anywhere from $100 to $500 per month depending on the location and the services rendered. The startup costs for these businesses when real estate is acquired typically runs anywhere from $250,000 all the way up to several millions of dollars depending again on the location and size of the building.
Given the highly predictable streams of revenue generated from these rentals, almost all financial institutions as well as private investors are willing to provide the necessary capital in order to launch these types of rental operations.. Of course, a coworking space business plan is going to be required. This business plan should include a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Also what needs to be discussed within the business plan, is the substantial demographics of people that will be targeted within the market for renting small spaces on an ongoing basis. Most importantly, this includes taking a look at how many small business owners there on the market, how many people that operate in a freelance capacity, and how many people are independent entrepreneurs. Examinations of annual household income, estimated annual revenues, estimated annual profits, and how much money they are willing to spend on a coworking space should be included within this documentation. An analysis of other working spaces within the market as well as traditional office buildings should also be included as these will be competitors to the coworking space on an ongoing basis.
A coworking space SWOT analysis should be produced as well. As it relates to strengths, coworking spaces were able to have a number of tenants in the buildings so that even if one person decides to no longer renew their lease the underlying financials of the business will not be changed substantially. This is in addition to the amount of equity will built into the building as it appreciates and as the mortgage is paid down from tenant payments. There is usually a very high demand in most economic climates for coworking spaces given their low cost.
For weaknesses, during times of economic recession – the number freelancers and entrepreneurs are looking to acquire new space does decline slightly. However, the high gross margins generated from monthly services rendered typically allows a coworking space building to remain profitable and cash flow positive at all times.
As it relates to opportunities, working spaces will frequently integrate secretarial services as well as a host of other business support services in order to generate revenues beyond just the standard monthly rental fee. One of the other ways of these businesses can readily expand this by acquiring additional buildings within the same metropolitan area in order to accommodate a greater number of tenants.
For threats, outside of a major economic recession there’s really nothing that is going to impact the way that these companies do business. Although many people have the ability to work from home, many people intentionally choose to work from a coworking space in order to work with other entrepreneurs, freelancers, and to have a place of business outside of their home.
A coworking space marketing plan should also be developed in order to attract tenants. Most importantly, many of these businesses will frequently register with local chambers of commerce in order to work with smaller entrepreneurs and freelancers. This can be one of the quickest ways in order to get the name out there as it relates to the available coworking spaces. As with all businesses these days, and Internet presence is also extremely important for these types of businesses. Many coworking spaces will maintain our own proprietary website that showcases the building, rental fees, amenities, services offered, and other information about the building and how to become a tenant. In some cases, especially among coworking spaces that provide month-to-month leases, people can register for a new space directly online via e-commerce functionality. One of the other ways of these businesses are able to market their services is by listing the available spaces on popular real estate websites. Although this is a substantial expense for these businesses, the results can be very strong if they’re placed on real estate websites and focus on smaller businesses and entrepreneurs.
In some cases, a real estate brokerage may be retained in order to rent these spaces to individual tenants. It should be noted that there is usually a very substantial commission associated given the fact that these leases carry very low month-to-month rental rate. As such, the entrepreneur need to be prepared to spend a significant amount on real estate commissions if they decide to hire a real estate agent or real estate brokerage to assist in the placement of small business tenants. One of the nice things about retaining a real estate brokerage in order to conduct this type of work is that they are usually able to conduct all the marketing on their own and usually at their own expense. Of course, all these issues are subject to negotiation depending on the rents produced.
As the economy has changed over the past 20 years and more and more people work independently or operate small businesses – the demand for coworking style office space has increased substantially. This is especially true in major metropolitan areas where entrepreneurs are seeking to develop small businesses with a focus on Internet focused sales. As such, these businesses will always be in demand and the revenues are not subject to major changes in the economy except when there is a substantial recession. These businesses are able to produce a very high return on investment as it relates to any type of real estate activity. Popular areas were coworking spaces have survived include New York, Boston, San Francisco, Los Angeles, Chicago, Miami and many other places where real estate is at a premium price. As such, these businesses can be an excellent investment for a real the entrepreneur that understands how to market spaces to small businesses while managing all the underlying cost.