STEPS TO ESTABLISH CO WORKING SPACES BUSINESS
Co working is the emerging buzz around the globe, with this pandemic situation; co work has gained more significance in the recent times. Whilst co working spaces have come a long way since 1995, the guiding principle remains unchanged; collaboration and a sense of community. Over the past 25 years, we’ve also seen major changes in the way people work. An increasing number of professionals are eschewing traditional forms of employment in favor of freelancing and contract work.
What do global trends say? Scope and growth.
Studies and data indicates a good increase in numbers of freelancing professionals over the period, whilst the numbers have increased on an average of 10-24 percent annually in demand globally and we are yet to witness a positive spur.
The numbers are evident from the fact report in economic times stating the estimated co working in INDIA is growing at 40% to 50% every year and we forecast 13.5 to 40 million users by 2022. Mostly first few months it may take time to get the users as it takes to establish the local affinity and may take a quarter to build it presence in the market to yield results.Presented below is the SWOT of a co working space
FEASIBILITY
Conduct a local feasibility report on the location and the size you are investing in, there has to be thorough calculations done before going ahead on this. What is going to be the business model it’s just desk or are you going ahead with ultra communication equipments like podcast rooms , meeting rooms ,private desks , dedicated desk and secretarial services, all these above attract costs and off course gives you distinctive position in the market.
GAUGE YOUR MARKET APPEAL
Before you sign the lease or buy any furniture, you need to ascertain whether there’s actually demand for your coworking space. To scope and promote interest, you could create a group on social media and then host some events. As you do this, you’ll not only be doing some important groundwork, you’ll also be building an online community, which will serve as a marketing avenue for your coworking space when it’s up and running.
The value of good old-fashioned face to face conversation can’t be underestimated. If, initially, there’s only a few people interested in your coworking space, keep it simple and find a suitable place to meet once a week. This way, you start where you’re at and grow as you gather momentum. Then, when you reach critical mass, you can delve into step three which is deciding on a viable business model for your coworking space.
DESIGN AND FRAMEWORK OF CO WORKING SPACES
The second most important task is to decide on the design element and framework; it not only places you above the competition but also gives you edge over the competitors. Low cost models are more profitable as it attracts start ups and young executives who are restricted on expenses but want to use the facilities, my suggestion is to set up a low cost model and then later develop it ergonomically, this involves less capital risk. Some of the design frameworks are listed below
DEDICATED DESKS
These are to attract regular executives who are looking at the address for longer term, have more work and need office space to file and records , dedicated desks are often hired for monthly or quarterly terms and generally are more productive as they yield greater revenues per available inventories.
SHARED DESKS
More productive from the space utilization perspective, may not be hired regularly and are often taken for smaller intervals as and when required. The occupancy ratio may vary and lot depends on the services and overall environment provided to the user.
MEETING ROOMS
Small meeting or presentation rooms are essentials and they can be limited to one or two rooms with moving capacity to accommodate the numbers as required. These are important as they may be required not regularly but occasionally by the participants.
PODCAST AND SCREEN PRESENTATION ROOMS
Smaller in size but again essential in nature, they attract heavy investments in communication equipments and need technical assistance as well to service uninterrupted services to the clients. These are required to organize video presentations and video meetings.
BASIC FACIITIES
Locker rooms, change rooms, showers and rest rooms, smoking areas and telephone booths are common facilities expected from a dignified co working spaces. as they not only assist in maintain the decorum of the entire space but also facilitate on minute requirements and personal privacy to the users.
REVENUE WHOPPERS
There are MYRAID WAYS of revenue whoppers on the cards when deciding a co work , café with pre plated snacks and secretarial services like printing , scanning and other design works can be added features to attract extra sales . You are anyway holding people for hours why not service them and make revenues.
Extra services can be listed but not limited to offering massage services , meditation and yoga classes ,after hours socializing or even proving with small sleep cubicles or snooze loops for that extra pounds and comfort of your guests.
WRAPPING UP
There is a tremendous scope when getting into business of co working, best is to design it on your own place to escape the challenges of third party funding and returns as this business gathers its profits a slow pace and needs time to get on stabilized year. You need to be great at socializing as this could be added advantage to your marketing.
Also read
2 Comments