The last quarter of the year is a great time for planning the next ahead – business strategy, budget, future projects, etc.
But to ensure you will be able to track and evaluate your business performance, you need to know your numbers. Or in other words – you need to define and set your key performance indicators (KPIs).
There’s still a lot of uncertainty for the future of coworking spaces but the COVID-19 crisis seems to be more understandable now.
The world is slowly going back (or moving forward) to the new normal.
We hope that the situation in your country has allowed you to start reopening your space and rebuilding your community. And also, to work on your strategy for 2021.
This article aims to help you do that by giving you more clarity about defining, setting, and tracking coworking-specific KPIs.
In the post, you will find:
We hope this is going to be helpful.
Let’s move on!
A Key Performance Indicator (KPI) is a measurable metric that demonstrates business performance. It’s used to keep track of your progress towards a goal.
KPIs can be set on a high-level for the entire company or for each department of the organization – e.g. Sales, Operations, etc.
Having KPIs allows you to follow strategic goals and reach your operation targets.
Moreover, it gives you the chance to monitor and measure your company’s health and progress. Also, it gives you access to data and allows you to analyze patterns over time.
Last but not least, implementing KPIs in your business routine helps you to solve problems more efficiently, make adjustments, and stay on track.
What KPIs are specific to coworking and flex spaces?
To bring more clarity around the essence of the KPIs, here are some examples of KPIs specific for coworking and flexible workspaces:
Start from your business model and understand what your organizational objectives are. If you’re not sure where to start, discuss it with your teammates. You’re all in the same boat and everyone has something to share from their point of view.
Pick a handful and don’t go too wild. If you choose too many parameters it will be hard for you to track and then analyze them. Better pick 4 or 5 and break them down into sub-parameters.
Set these targets based on the desired outcome. Of course, keep the things real and don’t put targets that are way beyond the capacity of your business.
If your team is big enough, perhaps each person will be in charge of 1 single parameter. If your team is relatively small, try to logically group the parameters. This way, your teammates can more easily have control over them.
You can do that on a monthly, quarterly, or yearly basis, or combined. You can review and adjust the sub-parameters on a monthly basis. On the other hand, the bigger, strategic KPIs can be discussed on a quarterly or yearly basis.
Every KPI is a subject of change – either you haven’t defined the KPI correctly and you need to adjust it. Or maybe the environment has changed and you need to adapt to it – this is all part of the flow.
Bonus tip: Remember – your KPIs should be SMART. SMART stands for Specific, Measurable, Achievable, Realistic, and Time-targeted.
In order to properly track your KPIs and data in the OfficeRnD coworking software, you need to ensure a couple of system settings are in line with your goals.
Bonus tip: Analyze the market in your city and area and set prices that will be competitive and affordable. When setting up targets, take into account the best and worst revenue scenarios, as per the set prices, your current budget, rent, and building expenses. Set a specific period to reach your targets. Create a 2-year plan for price changes and growth.
Usually, the basics of tracking members are related to New and Churned members but in the Members Report you can also see information about:
Comparing new and churned members gives you insights about the pain points where you need to put more efforts in:
By exporting the Members report you can easily calculate the Members Retention Rate of your space (Active Members Current Month minus New Members Current Month) divided into Active Members Previous Month).
Comparing new members, churned members, and retention rate could give you insights about the pain points where you need to put more efforts in:
Bonus tips:
The first thing you need to do is to set your resources and targets.
Then, to be aware of your Customers’ KPIs such as new, churned, and retained members.
Once you’re done with this, you can have a look at the revenue parameters and see how they relate to the desired state of your business.
Bonus tips
Аnother parameter that you have to track in your space is your Efficiency. In order to do that you can bet on two main performance indicators – Occupancy and Resource utilization.
Bonus tip: Look for tendencies. Analyze the resources that stay unoccupied for a longer period. Try to find a reason for that. Is it something with the setup of the office/the desk location (the light, the temperature, the furniture, the street noise)? Work from there for a day to find out. Consider adjusting the prices of these resources accordingly – this will increase your occupancy and will raise your monthly revenue.
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