Startup series: How do you find the right business model for your coworking space?

Want to start a coworking space? Then this series is dedicated to you. We recently published the most critical questions prospective founders should ask themselves. We want to get to the bottom of each aspect in more detail. The business model of your future coworking space plays a crucial role. How can you best orient yourself here? 

Based on the last two articles, you may have already thought about your primary motivation and approximate schedule. Now you have to make relevant decisions: How do you want to organize your coworking space?

Private offices for long-term rent

With your concept, you want to appeal to liquid startups or established companies that are looking for the best of both worlds: The reliable, solid infrastructure of an office complex, on the one hand, easily accessible and comfortably furnished for commuters and residents alike; on the other hand, creative input and a lively atmosphere. 

If you want to primarily rent our private offices to solvent tenants on a long-term basis, this will naturally impact your financial planning. With this target group, you can advertise the added value of offering a dynamic working environment without tenants having to sacrifice privacy and comfort. 

Optionally, you can even turn the tables for your planning - it may be worthwhile to contact a company whose employees have primarily switched to a home office and which therefore has large amounts of unused space available. Then, with creativity, you can integrate an additional coworking space here, and both sides can profit.

An open community space with lots of interaction

Of course, professionalism is essential to you, too, but it's mainly about the community idea. You want your space to facilitate as many social contacts as possible and create the necessary framework conditions for this - for example, a café or restaurant, large standard rooms, and suitable leisure activities. Yoga classes, workshops on the topic of self-employment and new work, concerts, or puzzle nights - for you, there can't be enough going on in the calendar. Your business model must cover how you can finance these communal spaces and how much you want tenants to participate actively in the program. 

The advantage of a preferably open community is that it allows symbiotic relationships among each other. For example, you are addressing artists, coaches, freelancers from the creative industry, or people whose profession is committed to social or political engagement. 

Another viable option for this concept would be to link up with an existing space - a café, a cultural association, or a theater building. Perhaps there is a landowner who supports your idea, provides unused space at affordable prices, and helps to realize your plans. 

By the way, if you plan a program oriented toward the common good, almost every city has relevant funding sources. It is worth asking. Virtually all municipal authorities have particular contact persons in the administration who (usually) provide friendly information.

A variable membership plan for bookings by the day

As flexible as possible, here today - there tomorrow: Your target groups are digital nomads and teams who want to rent hybrid and per-day spaces. You appeal to remote workers who appreciate your high-quality technological infrastructure, your sense of hospitality, and also the certain anonymity that your coworking space allows. You enjoy designing ergonomic workstations that are modular and timeless. Your coworking space's kitchen is well-equipped with coffee and tea-making facilities, so no one has to bring their cup; if desired, you can organize catering for teams for longer meetings.

Your conference and meeting room equipment includes whiteboards, markers, projectors, and high-speed Internet so workshops can run smoothly. You may even have a small library or reading lounge where you can provide books and magazines for those who want to share ideas.

This highly-flexible, service-oriented business model with a deliberate mix of interaction and retreat spaces is a global success; if you don't want to start from scratch in your startup, there are even franchise options for some providers.

Mixing things up

Whether you define open-minded freelancers, hermetic project teams, socially engaged creatives, or self-sufficient business travelers as your primary target group, the business model must ultimately fit your values. If you want to think about your concept as inclusively as possible to include the whole spectrum, there are no limits to your imagination. 

A good starting point is to know for yourself what you like or don't like. Take a weekend trip to the nearest city to check out two or three coworking spaces. Or you do target research on unusual concepts, talk to their founders and get rid of burning questions. As always, it doesn't cost anything to ask. And a few friendly contacts with industry colleagues can never hurt...

For all other questions, we will break down various vital topics in more detail in the coming weeks. Stay tuned!