8 Essential Steps to Successfully Open a Coworking Space

Starting your own coworking space can be an exciting but daunting venture. To ensure a smooth transition into profitability and success, it's crucial to follow a structured plan. This article outlines the key steps you need to take before opening your coworking space, from solidifying your value proposition to throwing a grand opening celebration.

Step 1: Solidify Your Value Proposition and Business Model

Your value proposition is the foundation of your business. It's a statement that explains what problem you solve for your customers and what unique benefits your coworking space offers. Understanding your target audience and your unique value proposition is essential. You need to know not only who your customers are but also how you can leverage your strengths to generate revenue. Consider the costs involved and how you can keep your space profitable while providing top-notch services.

Step 2: Research and Identify Local Competition

Before launching your coworking space, it's crucial to research your market and understand your competitors. This step involves identifying both direct and indirect competitors and analyzing their strengths and weaknesses. Think about coffee shops, libraries, and other coworking spaces, and reflect on your own experiences working in traditional offices. This research will help you identify the unique value your space can offer, refine your offerings, and set competitive pricing.

Step 3: Search for a Location

Choosing the right location is paramount in ensuring the success of your coworking space. Your building's cost (mortgage or lease) is a significant factor in reaching profitability. You need a location that targets your ideal customers and fits within your budget for longevity. Consider the proximity to your target audience, accessibility, and the overall ambiance of the space.

Step 4: Create a Revenue Plan

Determining your revenue plan involves figuring out how many memberships you need to sell to reach your break-even point. Build a pro forma to identify your revenue potential and basic costs. Offer multiple membership types to cater to different customer needs. For example, drop-in desks, flexible desks, and dedicated desks provide flexibility for various work schedules and financial situations. Consider offering office suites if they align with your community's demands, and ensure these amenities are worth the investment.

Step 5: Offer Select Amenities for an Additional Charge

Amenities such as conference rooms, event spaces, childcare services, parking passes, lockers, and standing desks can generate additional revenue. Consider what your target customers need and how your community can be best supported. Our Guide to Coworking Space Amenities can provide more ideas to enhance your offerings.

Step 6: Start Building Your Community

Leverage the power of community by actively engaging with potential members before opening your space. Host meetups, gatherings, and collect email addresses to build your email list. Keep your network updated on your progress and encourage them to invite friends and colleagues to future events. A strong community is the backbone of a successful coworking space.

Step 7: Manage Early Cash Flow and Expenses

Cash flow management is critical during the early stages of opening a coworking space. Pre-selling memberships and creating partnership opportunities can help manage initial expenses and generate interest. Offer discounts for early sign-ups and secure partnerships with local businesses for mutual benefit. This step ensures that you don't exceed your budget and can sustain your operation effectively.

Step 8: Plan a Grand Opening Celebration

A grand opening celebration is not just a fun event; it's also an excellent opportunity to generate buzz and educate your community about coworking. Plan to invite local partners, chambers of commerce, city council, and universities. Announce your event via media releases, email networks, and social media channels. This event should celebrate the opening while providing insights into your space's offerings and the concept of coworking.

Opening a successful coworking space requires careful planning and strategic execution. By following these eight essential steps, you can set the foundation for a thriving community space that both serves your members and contributes positively to your local business landscape.