Running a coworking space is exciting. You've created a place where people love to work. But let’s face it: making ends meet can be a challenge. According to Deskmag, only 52% of coworking spaces are profitable. That's a wake-up call for many operators.
But don’t worry—you’re not alone. There are plenty of ways to boost your bottom line and build a thriving business. We’ll dive into practical tips and real-world strategies to help you make your coworking space a financial success.
Understanding the Coworking Economy
Running a coworking space is different from running a regular business. It has its own set of rules.
First off, coworking spaces often have small profit margins. That means you might have a lot of members, but each one brings in a little bit of money. And because it's easy to start a coworking space, there's a lot of competition.
Making your space profitable can take time and effort. You've got to balance your costs with what you charge members. It's like trying to juggle without dropping any balls!
To make smart decisions, you need to know your numbers. Tracking how many people use your space, what they pay, and what your costs are is super important. This is where data comes in. By understanding the numbers, you can spot problems and find ways to make more money.
Top 5 KPIs for Coworking Spaces—Watch Free Webinar
Revamping Your Coworking Space Economy
1. Adapting to Evolving Customer Needs
The way people work is changing fast. To keep your coworking space thriving, you need to change with it.
People want flexibility. They might work from home one day and then need a quiet spot to focus the next. Or maybe they want a private office for their team. Your space needs to be ready for all of this.
Offering different options like private offices, dedicated desks, or just a hot desk can help. It's like having a menu for your members—something for everyone.
Technology can be a big help too. Imagine if your members could book a desk or meeting room with a simple app. That's where tools like desk booking systems come in handy. They make life easier for your members and for you.
2. Enhancing Revenue Streams
Want to make more money without adding loads of members? Let's talk about boosting your income.
One way is to offer extra things to your members. Maybe they'd love to grab a coffee or a quick bite to eat without leaving the space. Or perhaps they need help with printing, mailing, or even legal advice. These little extras can add up.
Another way is to attract bigger clients. Think startups or even larger companies. They might need more space or specific services. Offering packages tailored to their needs can be a game-changer.
How you price things matters too. It's not just about the number. Think about what your members value and package your services accordingly. For example, a day pass with free coffee might be more attractive than just a basic day pass.
And remember, keeping your current members happy is just as important as getting new ones. Loyalty programs or special perks can go a long way in building a strong community and keeping your members coming back.
Discover the keys to the happiness of your coworking space members.
3. Leveraging Vertical Integration
Vertical integration means offering more than just coworking space. Imagine your space as a one-stop shop for your members' work and life needs.
Offering things like places to live (coliving), ways to relax and recharge (wellness), or childcare can be a game-changer. It makes your space more attractive to members and can bring in extra income.
Some coworking spaces have successfully combined living, working, and playing under one roof. Think about spaces that offer apartments, gyms, and even restaurants. This creates a strong community and keeps members coming back for more.
But, like anything, there are challenges. Managing different services can be complex. You'll need to make sure the extra offerings fit with your space's vibe and are profitable. It's a big step, but it could be worth it if done right.
Commissary Kitchens: Expand Your Coworking Offerings
4. The Power of Technology
Technology can be your secret weapon in the coworking world. It can make your life easier, impress your members, and help you make smarter decisions.
Let's start with coworking management software. It's like having a super helpful assistant. It can handle bookings, memberships, payments, and more, saving you loads of time.
But it's not just about you. Technology can make your space more fun for your members too. Imagine a mobile app where they can book desks, find events, and chat with other members. Or an online community where they can connect and share ideas.
All that data you collect? It's a goldmine! By crunching the numbers, you can see what's working and what's not. Maybe you'll find out that people love your Tuesday evening networking events, or that your coffee machine needs a refill more often.
And let's not forget about the future. Things like AI (smart computers) and IoT (smart devices) could change the game. Imagine self-checking in, AI-powered virtual assistants, or smart meeting rooms that adjust the lights and temperature based on your preferences. It's exciting stuff!
Discover how hundreds of spaces worldwide unlock success and grow better with Spacebring
Conclusion
Running a successful coworking space is about more than just providing desks and coffee. It's about understanding your members, adapting to change, and finding new ways to make money.
We've covered a lot of ground, from understanding your numbers to offering amazing experiences. Remember, it's about finding the right mix of things that work for your space. Maybe it's focusing on a specific type of member, or offering unique services.
The coworking world is always changing. What works today might not work tomorrow. That's why it's important to stay curious, try new things, and learn from others. By being flexible and open to new ideas, you can turn your coworking space into a thriving business.
Don’t forget that the right tools can significantly boost revenue by automating tasks and providing valuable insights. To see how Spacebring can help you save money, improve efficiency, and delight your members, book a demo with one of our product experts today.
