Co-working space is a business service provision model that offers individuals and teams a good platform to work independently or collaboratively in a shared office space. Even though it’s a shared space, a co-working space tends to provide an environment that imitates the environment found in a well-designed workplace.
Aside from being a shared office space, co-working spaces are also places to hold relevant workshops, conferences, and much more. Co-working as a culture has gained widespread acceptance amongst the modern working population. Co-working spaces offer numerous benefits that other work locations might not really provide. One of these benefits is high affordability.
Even though co-working businesses do not come with high initial investment, there are some cost drivers you have to beware of in this business. Your startup costs will include paying for construction work, furniture procurement, equipment installation, setting up an IT system and network capacities, engineering works, etc.
You also have to consider administrative and legal expenses, and having well-groomed staff in the field. In the same vein, ensure to invest in marketing and advertising as well as make available the framework for future expansion and renovation of your facilities.
7 Basic Ways Co-working Spaces Make Money
Aside from generating revenue in the form of rent, co-working spaces have widened their branches to other revenue sources. These revenue sources include;
1. Private Cabins
These sorts of cabins are for patrons who want privacy in a co-working space. It is designed to suit the needs of the client and it comes with its own storage space. This cabin serves as a private office at a much more reasonable price than a traditional office.
When compared to other workspaces found in a co-working space, private cabins come with higher prices. They are less in number compared to other workspace options. Have it in mind that a greater percentage of the revenue from workspace options comes from Private Cabins.
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Dedicated Desks
A dedicated desk and seat become yours once you register in a co-working space, and will remain so for the period of your membership.
Dedicated Desks are known to be very popular among people working at co-working spaces. Have it in mind that they are priced very reasonably and are massive in number. A good number of coworkers pick dedicated desks so the revenue earning from this source is also encouraging.
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Rent from Virtual Offices
A good number of co-working spaces also offer virtual offices as part of their business model. A virtual office is a premium work address that the business uses for listings and mails and packages, while the team works from home. Note that the virtual office is indeed a blessing to entrepreneurs who prefer to work from home but need a premium-looking address for their startup.
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Renting Conference Rooms
Conference rooms are not used for regular office work but for client and team meetings. In this line of business, impressing clients is a daily task and most startups wouldn’t want to take clients to the nearby café, because it sends the wrong message.
Members can book the room for a fixed number of hours and have their client meeting there. These rooms are fully equipped with ergonomic furniture as well as electrical outlets and screens. Conference rooms are a primary source of income for co-working spaces as every working professional, including freelancers has clients and it is always necessary that the client meeting takes place in a professional setting.
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Premium Membership
In the business world, every product venture at some point in time will introduce features and services that could only be accessible for a specific amount. Premium membership is a one-time fee charged annually which gives access to marquee facilities. This form of revenue generation also guarantees loyalty.
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Food and Beverages
Another source of revenue for co-working spaces is the sale of food items and beverages. Anyone working at co-working spaces works on an average of 6-7 hours, and visiting the cafeteria for a bite or a cup of coffee is a must for some workers.
A good number of coworkers don’t bring their meals from home and it costs more when food is ordered through food delivery apps, so buying from the local cafeteria is most often considered a better option.
- Event Booking
Co-working spaces also tend to rent their space to organizations or people for events. Co-working spaces boast a wide range of working professionals, so people consider this the perfect target audience for workshops and events. This can also be a revenue stream for the co-working space that offers the platform.
Conclusion
As the pace and structure of the workplace alter, businesses small and large are now eager for new office solutions that meet their evolving needs. Co-working spaces work on different business principles. A good number of them don’t hide their prices, nor do they lock people into long contracts.
Have it in mind that the collaborative atmosphere so valued in co-working spaces is primarily based on the trust between its members, and not on profit-squeezing.