There are plenty of ways to generate revenue for your coworking space. However, that can actually be a problem when you’re starting out.
With so many options, new operators often try to do too much at once. This usually leads to creating multiple unreliable revenue sources, instead of one or two that can support the business long-term.
That’s why the key to establishing a strong product mix for your coworking space is simplicity.
In this article, we’ll stick to that principle and focus on the three most important products that every coworking space should offer:
Finally, we’ll also discuss some value-added services and amenities that can enrich your core product mix and delight your customers.
First, let’s start with the classic coworking product — open spaces.
Open spaces were the primary selling point in the early days of coworking. They brought a much-needed variety to the traditional, stale office environments by encouraging all sorts of social activities.
That’s still true today, so it’s essential to include at least some open spaces in your coworking product mix. This will help you maintain the spirit of coworking and differentiate your space. So, consider this when preparing your coworking space business plan.
However, it’s also worth noting that the value of open spaces has diminished over time. As competition has increased, it’s become increasingly difficult to turn a profit using mostly open spaces. Plus, larger businesses usually require more private spaces as opposed to open ones.
Of course, there’s no one-size-fits-all here, but you’ll likely need to dedicate more space to private offices and meeting rooms to generate a profit. Just don’t forget about the good old open spaces — they can massively elevate the customer experience, even if they take up a small part of the total space.
Private offices are the most in-demand product post-COVID, making them a must for any coworking product mix. They’re also more static and easier to maintain than open spaces.
Now, it’s true that private offices require a larger upfront investment. However, the returns on that investment can be much higher, since you can charge a premium for private space and diversify your plans in different ways.
For example, you can have a standard membership plan that includes move-in-ready private offices. On top of that, you can also offer customizable private offices for customers on more expensive plans. These can be tailored according to their preferences by:
You can also diversify your plans with 24-hour access and value-added services like server room colocation, VPN access, and much more.
This final piece of your product mix is the one that’s most affected by your space’s location.
If you’re in a busy central area where people often have business meetings, you’ll likely find it easier to get meeting room bookings. The opposite is true for more remote coworking spaces — most people likely won’t travel to the outskirts of the city just to have a meeting.
Again, there are no hard rules here, but you can use your location (and your customers’ demands) to determine how much space to reserve for meeting rooms.
It’s worth noting that meeting rooms can also be a fantastic tool for lead generation. People who’ve never heard of your space before can book them, see your space in person, and then slowly become long-term customers.
If you have larger meeting rooms, you can also use them to host events. Think presentations, community meetups, courses, hackathons, and other similar activities. These events can be fantastic for differentiating your space and getting new people through the door.
However, a word of caution:
Events are difficult to manage. Their preparation requires lots of time and effort. Additionally, plenty of things can go wrong during each event, so you also need to have contingencies and react quickly. That’s why we advise you to start organizing events only if you’re prepared to handle the extra workload.
The three products we just covered are the primary revenue drivers for most modern coworking spaces.
At the same time, they’re not the only ways to generate revenue. They’re also not enough from a customer experience standpoint, as people usually need a host of additional services during their workday.
On that note, here are some popular value-added services that can help you increase profitability and delight your customers:
You can add, manage, and present many of these services with OfficeRnD Marketplace. This tool lets you create a digital ecosystem for your customers, where they can easily find and purchase various products and services.
Note: Check out our 6 tips for generating more revenue for your coworking space for more details and examples of value-added services.
We understand that building and managing a coworking space is a lot of work. Creating a strong product mix is a key part of that, but there are countless other tasks that require your time and effort.
That’s why we built OfficeRnD Flex — a platform that helps thousands of coworking and flex operators keep their spaces running smoothly and build thriving communities.
Our platform can help you:
Click here to book a live demo with our team and learn how OfficeRnD Flex can help you manage and scale your business.
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