Growth Vs Efficiency: Finding The Right Balance for Coworking Space Success

In the world of flexible workspaces, finding the right balance between growth and efficiency is essential for success.

How do you find that sweet spot?

Growth and efficiency are the two forces every coworking operator has to balance: growth adds members, locations, and revenue, while efficiency makes sure each of those additions actually pays off instead of straining the business.

This post covers insights from industry experts shared during a panel discussion at FlexWorld Series 2024, with practical guidance for flexible workspace operators.

The panel featured Jonny Rosenblatt, co-founder of Spacemade, Jamie Russo, host of the Everything Coworking Podcast, Triona O’Neill, Director of Operations at Serendipity Labs, Samantha Kenney, CMO at OfficeRnD, and Radoslav Enchev, senior product manager at OfficeRnD.

The experts shared their strategies and personal experiences in improving efficiency without sacrificing growth.

Let’s jump right in.

Understanding efficiency and growth

Efficiency

Efficiency in flexible workspaces breaks down into three main areas:

1. Revenue efficiency: Maximizing income from available resources.
2. Employment efficiency: Getting the most from staff productivity and satisfaction.
3. Footprint optimization: Using space effectively to maximize occupancy and user experience.

Revenue efficiency means generating maximum income from each square foot and each member.

You get there through strategic pricing, upselling services, and adjusting membership plans to suit different needs.

Employment efficiency focuses on ensuring that staff are not only productive but also satisfied, as happy employees are more likely to contribute positively to the business.

Footprint optimization is about making the most of available space, balancing private offices, dedicated desks, and communal areas to create an appealing and functional environment.

Growth

Growth involves expanding the number of spaces, increasing membership, and adding to your service offerings. Growth has to be managed carefully so it doesn’t compromise efficiency.

Expansion can mean opening new locations, increasing the capacity of existing ones, or diversifying services to meet changing market demands.

Growth brings more revenue and market presence, but it also introduces challenges: maintaining service quality, managing larger teams, and making sure operational efficiency scales with the business.

Which metrics should you track?

To grow and stay efficient, operators should focus on several key metrics:

• Occupancy rates: Track the percentage of space used at any given time. High occupancy shows effective use of space, but it needs balancing to avoid overcrowding.
• Revenue per member: Measure the average income generated per member. This shows each member’s financial contribution and informs pricing decisions.
• Net member gain: Calculate the difference between new memberships and cancellations. Positive net gain shows growth; negative trends need addressing to retain members.
• Sales activity: Monitor viewings, inquiries, and contracts at various stages. An active sales funnel signals strong demand and effective marketing.
• Website traffic and conversions: Measure digital engagement and conversion rates from tours to memberships. This tells you how well your online marketing is working.
• Member retention and satisfaction: Use metrics like Net Promoter Score (NPS) to gauge member happiness and loyalty. High retention and satisfaction are critical for long-term stability.

How do you balance efficiency and growth?

So, how do you actually balance efficiency and growth?

Jonny Rosenblatt made the case for transparency with landlord partners and detailed tracking of key metrics.

Spacemade shares real-time data with partners to keep everyone aligned and performance on track. That transparency covers sales activity, contracted revenue, and average desk rates, giving a clear picture of performance and where to improve.

Jamie Russo pointed to the tension between hospitality and profitability. She argued that revenue per square foot is a critical metric, even though it can conflict with creating a good member experience.

Disciplined metric tracking keeps you efficient. She also stressed that maximizing revenue per square foot shouldn’t come at the expense of member experience, since satisfied members stay longer and refer others.

For Triona O’Neill, member retention and satisfaction come first, measured with NPS. Serendipity Labs keeps retention high and stability long-term by prioritizing member experience and using technology to simplify processes.

A welcoming, supportive community matters here. Happy members stay loyal and contribute to a positive atmosphere.

Effective marketing strategies

Community building and referrals

Triona stressed the value of community building through local partnerships and events. Serendipity Labs hosts events to build connections. This strengthens their brand and brings in new members through word-of-mouth.

Word of mouth is the top way new customers find a coworking space, according to OfficeRnD’s industry trends report. Learn more here. Events build a strong community and double as networking opportunities for members, adding value to their membership.

Always-on digital marketing

Jonny discussed Spacemade’s always-on digital marketing approach, including Google Ads, Instagram Ads, and LinkedIn campaigns. A continuous digital presence keeps visibility up and drives inquiries.

He shared a billboard campaign targeting local commuters that noticeably lifted inquiries and conversions. The key is consistent, engaging content that resonates with the target audience and keeps a steady flow of potential members coming in.

Experimentation and tracking

Jamie Russo emphasized testing different marketing strategies and tracking results. Different markets need different approaches, so you have to test and measure what works.

She also noted that a strong online presence is critical in competitive markets. That means paid advertising, content marketing, social media engagement, and search engine optimization (SEO).

Advice for scaling operations

Use technology

Triona O’Neill advised using technology to simplify processes and improve member experience. It plays a big role in Serendipity Labs’ success.

Efficient systems let you scale without dropping service quality.

Technology automates routine tasks, gives you insights through data, and improves communication both inside the team and with members.

OfficeRnD Flex is coworking management software that automates billing, bookings, and member operations from one platform. Its AI Hub adds an automation layer inside Flex, starting with an AI Sales Agent that responds to inbound leads around the clock so a form submitted at 9 PM doesn’t sit until the next morning.

Keep the business model simple

A simple business model that meets customer needs while keeping processes scalable is essential.

Complexity slows growth, so keep things straightforward: clear service offerings, simple pricing, and flexible membership plans that are easy to manage and scale.

Hire startup-minded people

From experience, Jonny Rosenblatt recommended hiring people with a startup mentality: those willing to take on multiple roles and drive growth from the ground up.

That mindset builds a strong base for scaling. People with a startup mentality tend to be more adaptable, more resourceful, and more committed to the company’s success, which matters most during the growth phase.

Be calculated and intentional

Jamie Russo cautioned against reverse-engineering what works for others, since it might not be sustainable. Focus on calculated risks and have a clear plan for scaling.

She suggested getting advice from experienced operators and staying conservative with expenses until the business can support the added overhead.

Understand the specific needs and context of your business rather than following trends blindly.

In conclusion

Balancing growth and efficiency in flexible workspaces takes a clear strategy, good data, the right technology, and a strong team. Prioritize member experience and stay intentional with expansion, and you can grow sustainably without letting operations slip.

The insights from our panel give operators a practical guide for this work.

By tracking the right metrics, running marketing that actually converts, and making smart hires, operators can build efficient workspaces that keep up with what their members need.

For more insights from the FlexWorld Series 2024 conference, we recommend watching all the panels here.

Frequently asked questions

What is the difference between growth and efficiency in a coworking space?

Growth means expanding: more members, more locations, more services, and more revenue. Efficiency means getting the most out of what you already have, measured across revenue per square foot, staff productivity, and space utilization. Operators need both. Growth without efficiency burns cash; efficiency without growth stalls the business.

What metrics matter most for coworking space efficiency?

Occupancy rate, revenue per member, revenue per square foot, net member gain, and member retention (often tracked with NPS). Together these show whether new members and new space are actually adding to the bottom line or just adding cost.

How can technology help balance growth and efficiency?

Coworking management software automates billing, bookings, and member management, which frees staff time and reduces errors as you scale. OfficeRnD Flex centralizes these operations, and its AI Hub adds automation for inbound sales so leads get an instant response instead of waiting hours for a reply.

What is the most effective way to attract new coworking members?

Word of mouth. OfficeRnD’s industry trends report found it’s the top way new customers find a coworking space. Community events, member referrals, and a consistent local marketing presence all feed that word-of-mouth engine.