The recent outbreak of COVID-19 has affected all industries, and the coworking industry is not an exception. Popular coworking locations have been ‘virtually empty’ over the last few months that have lead to heavy financial losses.
However, there is a ‘silver lining’ of the pandemic. Due to recent events, big companies and small startups have revisited their attitudes toward remote work and the use of coworking space.
The experts suggest that coworking business will play a vital role in the upcoming transition and economic recovery. Therefore, now is the best moment to enter the niche.
Do you want to build a successful coworking company? Start with writing a business plan. Here are some handy tips for you.
1. Define your mission and vision
Before you start working on your coworking business plan, you should clarify your mission and vision. Why do you want to start a company? Making money is not the only thing matters to you, right?
Think about the value you want to create. Think about the needs of your target audience that you are going to satisfy. After that, answer the following questions:
- What is your ‘big goal’? For instance, do you want to create an international coworking chain, to cross-finance your own startup, or to promote the development of your local community?
- How do you see your business in five years?
Write a draft of your mission and vision statement.
Once you complete the next six steps, you will get back to your draft and edit it, if necessary.
2. Do market research
The next step you should take is to research the market demand and analyze your competitors’ strategies. You should answer the following questions:
- Who are your competitors?
- What are their value propositions?
- Who is their key target audience: freelancers, startups, or local organizations?
- Do your competitors organize events and activities within a coworking community?
- Is there any niche that hasn’t been taken yet?
- What marketing strategies coworking companies use to attract new tenants?
- Are there any growing startup communities in your area?
Your primary task is to find a niche for your new coworking business. Maybe your area attracts artificial intelligence startups that are looking for designated coworking spaces to grow their community. Maybe freelancers in your area are searching for more affordable coworking desks. Scan the market for opportunities and choose the right niche to enter.
3. Visualize your coworking space
Now you need to imagine how your coworking space will look like and what kind of services you will provide. Do you want to create a fancy spot to attract wealthy tenants? Or, maybe you want to design a simple, minimalistic coworking space that will be affordable for small startups and freelancers?
Think about whether you will integrate your coworking facility with your area’s business community. Decide whether you will run big events within your coworking space.
Visualize each and every aspect of your future coworking business and write down key points on paper. Later it will help you to choose the right membership pricing strategy and design an effective marketing plan.
4. Set goals and calculate costs
This step is all about calculating how much money you need to spend to get the returns you expect.
Firstly, you need to define your financial goals:
- What is your revenue target?
- What is your desired level of profitability?
- How much time will it take you to break even?
Secondly, you need to analyze the costs required:
- How much money do you need to spend on marketing to generate buzz about your coworking business?
- How much money do you need to spend on new furniture and other stuff to turn the leased facility into a welcoming coworking space?
- What about salaries and benefits for your employees?
You should analyze whether you have enough money to fund your coworking business. In case if you lack funding, consider attracting investors to support your project.
5. Build a successful work team
You can’t run a coworking business on your own. You need to hire experts from different fields to build a strong team. Depending on the chosen niche, you may need to hire the following professionals:
- Managing director
- Marketing and communication manager
- Sales manager
- Operations manager
- Event manager
- Community builder
6. Choose a coworking business model
The vast majority of coworking companies offer four levels of membership: hot desks, dedicated desks, private offices, and custom build-outs. However, this is not the only business model that is worth your attention. You can also make money providing the following services:
- Coworking + consultancy
- Coworking + virtual offices
- Coworking + events and educational programs
Coworking is a lucrative niche where you can generate multiple revenue streams. So if you find a way to satisfy the need that exists in the market, you will make your company a success.
7. Create a well-structured document
The last step you should take is to analyze collected data and write a business plan. The final document must include the following sections:
- Executive summary
- Company’s description, vision, mission
- Description of services provided
- Market analysis and competitive analysis
- Marketing plan
- Operations plan
- Organization and management
- Key employees
- Financial plan
The business plan is an important document. It must be grammatically correct and have a clear, logical structure. So before you get writing or proofreading help online, check best writing services reviews on Google. Make sure that you are sending your business plan to professional editors rather than scammers.
Keep your business plan up to date
The business environment is changing fast, and you can’t ignore that. You should revisit your coworking business plan from time to time to ensure that it’s up to date. It’s the only right way to keep up with the market trends and make the company successful in the long run.
Coworking businesses will thrive in the after-pandemic environment, the experts predict. So if you have been waiting for the right moment to start a coworking company, wait no further. Take seven steps to write an effective coworking plan and bring your ideas to life.
About the Guest Author
Daniela McVicker is a blogger and a freelance writer who works closely with B2B and B2C businesses providing blog writing, copywriting and ghostwriting services. When Daniela isn’t writing, she loves to travel, read romance and science fiction, and try new wines. You can check her last Topessaywriting review.