Are you about starting a coworking space business? If YES, here is a detailed sample co-working space business plan template & feasibility report you can use for FREE.
Entrepreneurs always wish to cut overhead cost as low as they can and still maintain professionalism in their businesses. One of the easiest ways of cutting overhead cost is by renting a coworking space. With the increase in demand for co-working spaces, any investor that decides to start his or her own coworking space business is sure going to make good returns on his or her investment.
A Sample CoWorking Space Business Plan Template
1. Industry Overview
Co-working space business falls under the serviced office leasing (SOL) industry and operators in this industry rent or lease fully furnished office space to businesses on a part-time or as-needed basis.
The serviced office leasing (SOL) industry also provides virtual office and conference room leasing options to their clients. It is important to state that firms that provide conventional commercial leasing options are not part of the serviced office leasing (SOL) industry.
For $49.99 a month, anyone can work on Wall Street. The rising trend of the virtual office, which effectively functions as a high-cost PO box, is one of the services offered by the $2.4-billion Serviced Office Leasing (SOL) industry.
If you a close observer of the Serviced office leasing (SOL) industry, you will agree that the industry struggled during the recession when corporate profit declined and businesses closed shops. On the other hand, as the economy recovered, the industry experienced an upsurge in demand for its services.
Going forward, the revenue generated by players in this industry will continue to grow as the number of telecommuters in the workforce increases.
The Serviced office leasing (SOL) industry is indeed a growing industry and pretty much active countries like the united states, Japan, Singapore, Switzerland, United Kingdom and United Arab Emirates. Statistics has it that in the United States of America alone, there are about 781 licensed and registered companies in this industry, employing about 3,358, and the industry rakes in $2bn annually.
The industry is projected to continue to grow at 12.7 percent rate going forward. Regus PLC has the dominant market share in this industry. A recent publication released by IBISWorld shows that the Serviced office leasing (SOL) industry is in the growth stage of its life cycle.
The report projected that industry value added, which measure’s the industry’s contribution to the economy will raise at an estimated average annual rate of 7.5 percent from 2011 to 2022. The report further stated that GDP will grow at an annualized rate of 2.2 percent during the same period, indicating that the industry is growing faster than the economy as a whole.
Businesses are increasingly turning to industry companies to rent or lease workspaces, including fully furnished offices, virtual offices and conference rooms. Renting or leasing office space is a cost-effective alternative to buying commercial property.
One of the major reasons why people subscribe to co-working spaces is because they want to maintain a business address in a high – profile business district at the lowest possible cost.
So, if your intention is to start a coworking space business and also to maximize profits, then you must ensure that your lease office facility in a high – profile business district. It will make it easier for you to market and attract clients. It is expensive to lease office facility in such areas, but you stand the chance of recouping your investment and also making profits.
From all available statistics, it is safer to say the Serviced office leasing (SOL) industry is growing steadily despite the competitive nature of the industry. One thing is certain, if the offices you offer for rent are well positioned, you have the required business skills, and business networks, you are likely not going to struggle to compete in the Serviced office leasing (SOL) industry.
The serviced office leasing (SOL) industry is still open to any aspiring entrepreneur who has the startup capital to start his or her own co-working space business. As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition in the industry.
2. Executive Summary
Monica Donavan® Co-Working Space Rentals, Inc. is a registered real estate business. We have been able to secure a standard and well – positioned facility in a central and busy district in Brooklyn Park – Minnesota.
We are a co – working space company that is set to compete in the fast – growing shared office rental industry not only in Brooklyn Park – Minnesota, but also throughout the United States market because we intend opening our co – working facilities in key cities across the United States.
Monica Donavan® Co-Working Space Rentals, Inc. will offer co-working space facilities to entrepreneurs and investors who may not want to shoulder the responsibilities of owning a standard office facility. Our business goal is to become one of the leading co-working space rental operators in the United States and we will make sure that we do all we can to compete favorably in the industry.
Our workers are going to be selected from a pool of certified, creative and highly experienced workers in and around Brooklyn Park – Minnesota. We will make sure that we take our workforce through the required trainings that will position them to meet the expectations of the company and to compete with leading co-working space operators in the United States.
At Monica Donavan® Co-Working Space Rentals, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Monica Donavan® Co-Working Space Rentals, Inc. is owned by Monica Donavan and other investors (shareholders).
3. Our Products and Services
Monica Donavan® Co-Working Space Rentals, Inc. was established with the aim of maximizing profits in the serviced office leasing (SOL) industry as a co – working space operator. We want to compete favorably with the leading co – working space operators in the United States which is why we have a competent team that will ensure that our facility meets and even surpass our customers’ expectations.
We will work hard to ensure that Monica Donavan® Co-Working Space Rentals, Inc. is not just accepted in Brooklyn Park – Minnesota, but also in other cities in the United States of America where we intend opening our chains of co – working facilities. Our facility and services are listed below;
- Lease or rent fully furnished workspaces
- Lease or rent virtual offices
- Lease or rent conference and meeting rooms
- Provide telecommunication services to leases
- Provide other business services to leases
4. Our Mission and Vision Statement
- Our vision is to be the standard bearer wherever we have our co – working space facility throughout the United States of America.
- Our mission is to provide a standard co-working space that can attract some of the leading entrepreneurs who may not want to own their personal office facility.
- We want to build a co-working space business that can favorably compete with other leading brands in the serviced office leasing (SOL) industry in the United States.
Our Business Structure
Monica Donavan® Co-Working Space Rentals, Inc. is a co-working space company that intend starting small in Brooklyn Park – Minnesota, but hopes to grow big in order to compete favorably in the industry in the United States. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.
At Monica Donavan® Co-Working Space Rentals, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- General Manager
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Accountant
- Facility Manager
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
General Manager:
- Serve as project manager of the organization; works directly with employees
- Develops strategic plan by studying the trends in the serviced office leasing (SOL) industry and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements
- Maintains quality service by establishing and enforcing organization standards.
- Coordinate employee efforts, and facilitate communications between management and the workforce
- Ensures that the organization works in line with international best practices.
Human Resources and Admin Manager
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects
- Responsible for handling business research, market surveys and feasibility studies
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Sales and Marketing Manager
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects
- Responsible for handling business research, market surveys and feasibility studies
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Facility Manager
- Responsible for making sure that our co-working space meet the needs of the people that work in them
- Overseeing services including security, parking, cleaning, catering, technology and so on
- Supervising multi-disciplinary staff including cleaning, maintenance, grounds and security
- Ensuring that basic facilities such as water and heating, are well-maintained
- Ensuring that facilities meet government regulations and environmental, health and security standards
- Overseeing building projects, renovations or refurbishments
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations promotional campaigns to ensure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
Monica Donavan® Co-Working Space Rentals, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured co-working space business that can favorably compete in the serviced office leasing (SOL) industry in the United States.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Monica Donavan® Co-Working Space Rentals, Inc.;
- Strength:
Our world – class facility is indeed a plus to the business. Another positive that we have is the fact that we have a well – balanced team running the business.
- Weakness:
Part of what may likely hinder us from optimizing our potentials in this business is that we may not be able to raise capital to acquire choice properties that can attract high – paying clients for our co – working space.
- Opportunities:
In this age and time where entrepreneurs are looking for means to cut down startup expenses, a business such as co-working space facility comes in handy. The rising popularity of shared office spaces is driving industry growth and influencing workplace transformations. The fact that more people are embracing entrepreneurship means that there are great opportunities for us.
- Threat:
A major threat to our business is the rise of the concept of virtual office. Aside from the fact that it is cheaper, most virtual office rental businesses tend to provide communication and physical address services without bearing the financial burden to maintain the office facility.
7. MARKET ANALYSIS
- Market Trends
A major trend shows that workplace transformations use tech and design to maximize office space and increase productivity, providing for cost-savings from a bottom-up perspective. Co-working spaces are designed to reduce the square footage a company needs per employee.
A recent trend shows that some operators in the industry are scaling the co-working model to fit the operational and cultural needs of service-based industries.
The incentives of workplace transformations are twofold. The first is cost-effectiveness while the second, less tangible yet arguably more impactful incentive is the commoditization of modern workplace culture as characterized by Silicon Valley startups.
Even though cost-savings have long-been the most obvious incentive of co-working spaces, the perk of enabling large corporations to rebrand themselves in a piecemeal way is turning heads among Fortune 500 companies operating in the most traditional of industries.
Lastly, long term, the cost-efficiency of workplace transformations will likely remain the primary incentive. Reducing square footage per employee while maintaining or even boosting employee satisfaction is a win-win, no matter the industry.
However, the cultural incentives of workplace transformations will continue to expand and evolve with the business environment itself.
8. Our Target Market
Before starting our co – working space rental business in Brooklyn Park – Minnesota, we conducted a thorough market survey and feasibility studies and we are certain that there are loads of budding entrepreneurs who need small office spaces to run their business.
In view of that, we have created strategies that will enable us reach out to various groups of people who we know will need our facilities especially service – based business.
Our competitive advantage
Because of the grow competition in this line of business, there is an increasing degree of related business activities, with big players dominating the market.
Our competitive advantage is anchored on the state of the art office facility that we have. So also, we have a team of certified, creative and highly trained workers. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the industry.
Another strength that counts for us is the location of our co-working space; they are located in one of the highly suitable areas for such business in Brooklyn Park – Minnesota.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Monica Donavan® Co-Working Space Rentals, Inc. is established with the aim of maximizing profits in the serviced office leasing (SOL) industry and we are going to ensure that we do all it takes to meet and surpass the expectations of our clients.
Monica Donavan® Co-Working Space Rentals, Inc. will generate income by offering the following facility and services;
- Lease or rent fully furnished workspaces
- Lease or rent virtual offices
- Lease or rent conference and meeting rooms
- Provide telecommunication services to leases
- Provide other business services to leases
10. Sales Forecast
One thing is certain, there would always be entrepreneurs who need to cut cost of starting the business hence the need to rent a small office space in a shared office facility.
We are well positioned to take on the available market in the industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our business to enviable heights.
We have been able to examine the shared office leasing (SOL) market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Monica Donavan® Co-Working Space Rentals, Inc. It is based on the location of our facility and of course our target market;
- First Fiscal Year: $550,000
- Second Fiscal Year: $950,000
- Third Fiscal Year: $2 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any competitor offering same facility as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share.
Our unique selling proposition is that we are well positioned, we offer a state of the art facility and people can easily access our facility. Monica Donavan® Co-Working Space Rentals, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Advertise our co-working space business on national dailies, local TV and radio station
- Promote our co-working space facilities online via our official website and all available social media platforms
- Introduce our business by sending introductory letters alongside our brochure to budding entrepreneurs, established entrepreneurs and key stake holders in Brooklyn Park – Minnesota
- Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
- Position our signage / flexi banners at strategic places in and around Brooklyn Park – Minnesota
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for entrepreneurs and business people in the whole of Brooklyn Park – Minnesota and other cities in the United States of America where we intend opening our shared office facilities which is why we have made provisions for effective publicity and advertisement of our business.
Below are the platforms we intend to leverage on to promote Monica Donavan® Co-Working Space Rentals, Inc.;
- Place adverts on both print (newspapers and real estate magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
- Install our billboards in strategic locations all around Brooklyn Park – Minnesota
- Distribute our fliers and handbills in target areas
- List our co – working space business in local directories / yellow pages
- Advertise our coworking space facility in our official website and employ strategies that will help us pull traffic to the site.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than what our competitors are charging their clients in Brooklyn Park – Minnesota.
- Payment Options
The payment policy adopted by Monica Donavan® Co-Working Space Rentals, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Monica Donavan® Co-Working Space Rentals, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for renting our co – working office facility without any stress on their part.
13. Startup Expenditure (Budget)
When it comes to calculating the cost of starting a coworking space facility business, there are some key factors that should serve as a guide.
The number of facilities needed to kick start the business and the size and location of the facility determines the total cost of setting up the business. Below are some of the basic areas we will spend our startup capital in setting up our co-working space rental business;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $15,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $5,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing facility for the business – $450,000
- The total cost for facility remodeling to fit into the type of co – working space facility – $150,000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $140,000
- The cost of launching a Website – $600
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about nine hundred and fifty thousand ($950,000) U.S. dollars to successfully set up a medium scale co-working space facility rental business in the United States of America.
Generating Funds/Startup Capital for Monica Donavan® Co-Working Space Rentals, Inc.
Monica Donavan® Co-Working Space Rentals, Inc. is a private business that is solely owned and financed by Ms. Monica Donavan and her partner. They do not intend to welcome any external business partner which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $350,000 (Personal savings $200,000 and soft loan from family members $100,000) and we are at the final stages of obtaining a loan facility of $600,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Monica Donavan® Co-Working Space Rentals, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to lease / rent our co – working space facility a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Monica Donavan® Co-Working Space Rentals, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re-training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check:>Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard facility and reconstructing the facility to fit into the kind of facility we want to manage: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating official website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress