Coworking spaces offer a flexible and efficient workspace model that meets the needs of both individuals and companies. By renting out desks, offices, or entire floors, these spaces provide affordability and adaptability for a variety of business needs.
Revenue Streams and Services
In addition to physical space, coworking businesses enhance their revenue through a range of services, such as:
- Meeting rooms
- Printing facilities
- Food & beverage options
Events like networking and workshops also contribute to revenue, fostering a community that encourages retention and satisfaction among customers.
One notable example of a successful coworking business is WeWork.
Coworking Space Planning and Profitability
For new coworking spaces, drafting a detailed business plan is critical. It should outline:
- Goals and objectives
- Unique financial models
- Revenue growth strategies
- A strategy for competition
Business plans from existing coworking spaces and the WeWork model can serve as benchmarks for defining the right approach.
Leasing and Membership Strategy
WeWork, a pioneer in the coworking space industry, operates on a lease-and-sublease model, transforming properties into community-centric workplaces and offering:
- Workspace packages
- On-demand office services
- Subscription models for space access
Despite its scalability, critics argue that WeWork’s model is not as efficient as direct leasing from landlords.
Economic Viability and Services
WeWork’s business thrives in times of economic expansion by:
- Offering short-term rents at a markup
- Providing amenities in their monthly fees
- Developing corporate partnerships
The flexibility of WeWork’s offerings makes it attractive to a diverse group of clients, including freelancers, startups, and established companies.