Also, putting a lot of different professionals who all work in the same large space seems like a recipe for trouble. So, how does a shared workspace work? What factors have led to its success so far?
Even though there isn't much organisation to see, coworking is very organised. There are many things that operators can't control. So, they make a framework to help with the effective use and management of space. It helps make a good business model and a great idea: a place for people who need help and a place to do work.
Coworking, in a Nutshell,
What does a coworking space mean? Aside from rules about who can join, coworking spaces are open to anyone.
Coworking goes beyond the space itself. It's a way of thinking that says people should work together to get things done. Freelancers can work with people who work from home, and gig workers can share a workspace with professionals who are on the road. Coworking spaces give employees, no matter what their background or job is, a casual, professional place to work, as well as networking opportunities and a social element.
Coworking is a lot more than just having a good time and a place to work. Space-as-a-service is a business model, so it needs to make money. How can spaces where people work together make money?
The Way Membership Works
Like gyms, coworking spaces sell memberships by the month or year. This has two very big benefits. First, it is a reliable source of cash flow because of the automatic charges that happen on a regular basis. Second, it gives you a place to start when figuring out your operating capacity.
Most coworking spaces sell monthly memberships to fill the space, which is often more than 100% full. It's unlikely that every member will show up on the same day and at the same time. To reach this goal, a coworking space with 200 seats can sell up to 250 memberships, which is 125% of the total capacity. At any given time, 150 members are expected to be there, which is 75% of the total capacity. Based on how space is used and how many people belong, it's a matter of finding the right balance.
Most of the time, memberships are sold at a big discount to first-time users to get them to buy full memberships. A membership for a month could cost $99, while a day pass could cost $20. Theoretically, they could use the room every day for $3 per month instead of spending $600 on day passes. Memberships may also come with perks like faster Internet access or the ability to reserve seats.
The Model of Self-Service
Not everyone needs to join a coworking space. The pay-per-use option is for people who only use the space a few times a month. It's harder to guess how much these users will want, but they bring in more money per user.
The main problem with walk-ins is that they are hard to plan for and vary from time to time. If a coworking space is full, the only thing to do is turn away a walk-in, even if they are willing to pay 20 times the membership fee. But even if they don't sign up for a membership, walk-in customers can end up coming back often.
Placement of Seats and Use of Space
It's hard to explain coworking without talking about the space needed to seat everyone who works there. This is the most important part of why coworking works so well.
No matter if a person is a member or just stopped by, they must check in with an admin. This person gives them all the information they need to get started, checks them in, and gives them a desk. This gives a real-time accurate picture of occupancy and how space is being used. It also shows important information like how many members and walk-ins there are, how much money is made each day, how long spaces are still open, and what kinds of spaces are available.
Without this centralised management system and the use of coworking software, coworking spaces would not be able to run. No one knows who is where, how long they will be there, or what places are open.
Finding a Good Middle Ground
Coworking spaces do well when they have the right number of members and the right amount of space. The coworking model lets people be flexible, so it must also be flexible. People on the go can be accommodated with the help of a well-designed and well-run space management system and the ability to match people with seats.
