More operators than ever are opening Coworking locations throughout the world. Not only are new operators entering the industry consistently, but we’re seeing a rise in the volume of operators who run multiple spaces. Naturally, this comes with challenges beyond simply financial aspects. Let’s take a look at some of the keys to successfully operating multiple Coworking centers.
How do you go from operating a small space effectively to running multiple locations? First and foremost, the biggest key to keeping costs under control as well as streamlining operative tasks, is selecting the right workspace platform.
Much of the challenge lies within the fact that operating several sites requires more third party integrations, various softwares and extensive manual processes. A management platform that integrates all your accounting, billing, bookings, reports, and more, is the most effective way to scale your business. You’ll prevent leakage, consolidate countless hours and manpower, and reduce costs.
You need top of the line technology. Therefore, your spaces will need powerful and reliable Wi-Fi, data, voice, and the hardware to power your location. Selecting the best workspace management platform to guide and scale your space efficiently is a huge challenge to overcome.
Also, do not overlook the importance of roaming for your members. Being able to seamlessly and securely connect to Wi-Fi at any of your locations is a major benefit for members on the go.
You’ve got several spaces open. They may be located in different areas within a market, or within different cities altogether. No matter what, bringing in revenue to each of them requires unique marketing tasks. Not to be redundant, but let’s refer back to the management platform. Yes, it will reduce your short term costs by eliminating countless third party sites, but having marketing tools in place such as branded website designs, commercial listings, and a full-service mobile app, are critical to the marketing of your spaces.
Tailoring your marketing strategies depending on your member personas is going to expedite your path to profitability and narrow your scope so you’re not wasting time and dollars marketing to the wrong audience.
Is it time to expand? Just because your first space is doing well so far, may not mean this is the perfect time to invest in a second or third location. One of the challenges to overcome is resisting the urge to dive in head first simply because the demand for Coworking continues to grow. First make sure your different membership offerings are all doing well. In other words, make sure members are reserving your meeting rooms, your private offices are filling up, your desks are mostly taken, etc. Once you’ve maximized revenue there, that may be a telling sign its time to expand.
Also, be honest with yourself. Is your space going through any sort of operating difficulties? Maybe your members won’t see it, but behind the scenes, are you having difficulties maintaining one space? If so, regardless of your revenue, you may want to wait before expanding. Make sure your first location is thriving and you are more likely to succeed in your new spaces.
What if your members decide your other spaces are incredible? You did such a great job operating multiple sites, but you’re just transferring revenue from one to the other, instead of picking up new business. Find ways to make each space unique. Whether its the layout and decor, or the types of memberships, or choosing an underserved part of town. Each space needs to be independent or else members would simply pick the one closest to home for convenience.
Also, do not allow yourself to focus more on the aesthetics, infrastructure, and overall look and feel of the new locations. Keep your first site modern, tech driven, and eye catching. That space got you in a position where operating multiple sites was feasible, so don’t give those loyal members any reason to want to leave.
To learn more about Yardi Kube and how it can help overcome operator challenges, please click the link below.