A coworking space is a place where anyone who feels like it can find a temporary or permanent working space, be it a writer working for an essay writing service GPALabs, or a web developer. With a growing number of freelancers and startups, the popularity of coworking spaces is enhancing. This niche is still developing on the market and can become an excellent start for an entrepreneur.

How does a coworking space work?

The essence of such establishments is to provide people with a place to work from. These are typically people who don’t have an office and want to organize their working process rationally. Frequently, a coworking space is used for hosting meetings, business calls, or presentations.

A coworking space is a community of free and independent people from various industries and of different professions. They share the same space to accomplish certain personal goals.

On average, a coworking space hosts:

  • developers and programmers;
  • web-designer and designers,
  • copywriters,
  • translators;
  • representatives of creative and handicraft professions;
  • marketers;
  • SEO-specialists;
  • remote work managers;
  • journalists;
  • entrepreneurs;
  • freelancers;
  • employers of small companies that don’t have an office.

Coworking centers are equipped with everything you might need for work. The owner of the space supplies people with access to the Internet, a working space, various utilities, sometimes coffee and snacks. A coworking space can be divided into separate working zones or operate as an open space office. It typically has one or several meeting rooms and cabins equipped with a projector, a flat TV. Some companies even offer libraries and lounge rooms.

In other words, a coworking space is a real rental office that you can rent either for one day or for a whole year.

What should you know before opening a coworking space?

This business model is quite attractive to many entrepreneurs. We offer you a brief checklist of the things you need to consider and pay special attention to before diving into the coworking business. Here they are:

A location of the space

That’s, probably, the most important point. The location must be convenient. If you are looking for new premises for a coworking space, pay extra attention to the traffic interchange. It must be either close to the downtown or easy to reach. If you are planning to open a small coworking space on the outskirts of the city, you are most likely going to fail. However, if you open a large coworking space with a great infrastructure within an easy reach and with affordable rates, it will start attracting clients.

Premises

Mind, if you want to purchase or to rent the premises. The size of the building influences many factors: the number of employers you need, the bills for electricity, etc. Moreover, mind the condition of the premises. It will most definitely require a renovation.

Repair expenses

Every business has its brand book and characteristic features. The design of the coworking space can become an attractive advantage for your potential customers. Calculate, how quickly you shall receive back your repair investments.

The conception

Choose the type of a coworking space. Are you going to simply provide a place to work? In this case, you will just require administrators. If you consider hosting events, you shall require more human resources and equipment for this purpose.

Salaries

Depending on the concept, your coworking space requires administrators, event-managers, caretakers, cleaners, PR, and even social media managers. At some point, you will be sick and tired of all the paperwork and hire a bookkeeper, a lawyer, and even a director. Calculate the competitive salaries and add these numbers to the budget.

Business development expenses

That’s another significant part of the business. You need to conduct a serious marketing research, determine your target audience, clarify ways of influencing and attracting potential clients, etc. It’s vital to know how many places in the coworking space must be taken for you not to lose money. So, this aspect includes marketing campaigns, ads, banners, human resources, and so much more.

Everything we have mentioned above, it’s a tiny piece of information you need to know before starting a coworking business. You might have everything planned out: you have found a perfect location, rented huge premises, invested money to renovate it, and even had clients. Then, an owner of the building has come and informed you that he’s planning to sell it. And it’s your fault if you have not taken into consideration these risks. There are many underwater stones in the coworking business, just as in any other.

How much does it cost to open a coworking space?

Considering everything we have already discussed, let’s take a look at some numbers. Thus, depending on a location, a commercial property of around 2000 square meters not far from the city center shall cost you not less than $1000. Clearly, you will require furniture, utilities, and a temperature control system. The latter costs around $5000. The overall cost for everything is about $23 000.

Don’t forget about hiring people. Depending on the size, you will need at least 3 people – an operational manager, and two administrators you shall work in turns. Their total monthly salary will be around $5000.

If you add coffee and snacks, marketing expenses, and bills, it will be not less than 30-35 thousand dollars.