It’s hard to ignore some of the evidence that states Coworking spaces can be an unprofitable business model. Can Coworking spaces be profitable? Yes. Will it take hard work and a detailed understanding of the market? Absolutely.
If you are interested in opening a space of your own, or if you’re already an operator and want some tips on how to improve your bottom line, let’s take a look at some of the biggest keys to profitability.
First and foremost, here’s the best part. You don’t even have to reach 100% capacity at your space to turn a profit if you have the right model in place. Keep that in mind as you check out these tips.
Variety of Membership Options
Much like diversifying an investment portfolio, it’s important to offer several types of membership options in your space.
Definitely offer hotdesk and dedicated desks. As many as your space will allow. Hotdesking options allow for these desks to be filled consistently, even if it means new members in your space frequently.
Feel free to make these affordable. Even if you look at the competitors’ prices and decide to go below them, that’s okay. Ideally, you’ll be able to draw in business due to a great price, and repeat business based off running a great space.
Your bigger moneymaker will come from the dedicated desks and from those members who choose to rent out private office or conference rooms. You can price these desks and rooms at triple (sometimes more) the cost of a hotdesk.
If you have a solid variation of plans and space to allocate for hot desks, dedicated desks, and several rooms, you’ll see a good source of profit here.
Also, don’t be afraid to encourage members to bring guests. For example, create a pass good for a free day per month. The more people are exposed to how unique and thriving your space is, the more will want to join on a permanent basis.
Amenities
The right amenities and benefits for members will be a huge reason why they elect to join or stay at your space. It can be an initial large investment, but the return on that investment may be worth the cost.
Examples of amenities that members seek out:
- fast, reliable internet connection
- 24/7 accessibility to the space
- comfortable furniture
- common areas to work in teams
- private rooms/conference rooms/sound proof
- reliable troubleshooting/support
If you can establish these benefits in your Coworking space, it will not only help build a sense of community, but it will give you invaluable recurring members. You may also find yourself spending less on promotion if word of mouth builds through your happy, satisfied members.
If you host events at your space, charge a nominal fee. If every attendee at a yoga lesson, or speaking engagement, or happy hour just donated a few bucks, you’d likely cover the costs of these events. The more interactive moments you create for your members, the more your community will benefit.
Technology
There has to be a way to tie in all these great amenities. That’s where a top of the line workspace management platform comes in.
The right system will integrate with other programs, help shared workspace operators drive top line revenue, reduce costs and efficiently grow their Coworking space while delivering phenomenal member experience.
Streamline tasks such as billing, lead tracking, booking, real-time reporting, and many more.
Members want to use the most updated technology such as apps and software. The Yardi Kube platform is the premier workspace management solution in the industry. It combines all these assets as well as unlimited, round the clock support.
To learn more about how Yardi Kube can help make your Coworking space profitable, please click the link below.