I am considering opening a local coworking space, and am interested in hearing from existing coworking space owners and what percent of the revenue comes from sources beyond the basic office space rental.
Can you provide some insight as to additional ways of generating revenue and what percentage of the overall revenue is generated from these avenues?
Now that’s an interesting question.
People familiar with WeWork say that their 50% rev is from other than office rental (One of the reason for crazy valuation)
PS: We dont do anything other than rentals. We have partners whom we recommend (at least one of these we incubated) as of today to keep our ops focused and lean.
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On Monday, February 8, 2016 at 6:15:45 PM UTC+5:30, M Saltzman wrote:
I am considering opening a local coworking space, and am interested in hearing from existing coworking space owners and what percent of the revenue comes from sources beyond the basic office space rental.
Can you provide some insight as to additional ways of generating revenue and what percentage of the overall revenue is generated from these avenues?
We do meetings and events in addition to the normal coworking. Our goal has been to have desk rental / coworking / day passes to cover the majority of our ongoing expenses. And then use events and meeting room rental as supplemental income.
I would say it has taken a while to get the right mix, but now that we are about 8 months in, that goal is coming into sight. If nothing else hosting events and meetings has helped us to build our coworking community. So the benefit to us has been more than monetary. But broadening your offerings does mean addition work / costs / distractions. And honestly if we had not found a facility that made hosting events and meetings fairly straightforward, we would not have included it in our business plan.
HTH
-Felicity
fibercove
Austin, TX
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On Monday, February 8, 2016 at 6:45:45 AM UTC-6, M Saltzman wrote:
I am considering opening a local coworking space, and am interested in hearing from existing coworking space owners and what percent of the revenue comes from sources beyond the basic office space rental.
Can you provide some insight as to additional ways of generating revenue and what percentage of the overall revenue is generated from these avenues?
At Office Nomads we are 100% coworking memberships. This is for a couple key reasons. We want a model that is simple to manage, simple for our members, that deemphasizes the financial transaction and helps us maintain a sense of “home”. I have seen many other models that achieve a similar “feel” and come at the challenges in different ways. For us, simplicity is our primary strategy. We could introduce additional revenue streams with events, private offices, or add-on services, but we choose not to. This helps us stay focused as we are less scattered. It also allows us to have weekends which is essential.
And finally, we intentionally don’t call it “rental” as that undermines the real value of our membership. I know wording can be a tricky beast filled with nuance, but another benefit of our tight focus is that we can take the time to evaluate how people respond to the various marketing angles people take. And since we rely on one source of income it’s very important we get this right… for the market we are looking to bring in.
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Jacob
On Tue, Feb 9, 2016 at 7:35 AM, Felicity Maxwell [email protected] wrote:
We do meetings and events in addition to the normal coworking. Our goal has been to have desk rental / coworking / day passes to cover the majority of our ongoing expenses. And then use events and meeting room rental as supplemental income.
I would say it has taken a while to get the right mix, but now that we are about 8 months in, that goal is coming into sight. If nothing else hosting events and meetings has helped us to build our coworking community. So the benefit to us has been more than monetary. But broadening your offerings does mean addition work / costs / distractions. And honestly if we had not found a facility that made hosting events and meetings fairly straightforward, we would not have included it in our business plan.
HTH
-Felicity
fibercove
Austin, TX
On Monday, February 8, 2016 at 6:45:45 AM UTC-6, M Saltzman wrote:
I am considering opening a local coworking space, and am interested in hearing from existing coworking space owners and what percent of the revenue comes from sources beyond the basic office space rental.
Can you provide some insight as to additional ways of generating revenue and what percentage of the overall revenue is generated from these avenues?
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We are 95% membershis and 5% conference room rentals. The conference room rentals is from a steady stream of daily rentals from a group that teaches Adobe classes. The one off conference room rentals happen about once a month. It’s a nice $100 that pays for my lunches but nothing that I advertise or encourage.
We own Indo Nashville. Our space is coworking, event space, songwritng rooms, and private office suites. Private offices are leased at 100% occupancy. We are currently adding reserved desks as we have had requests for them. Event space rentals is picking up and we have hosted everything from a same sex wedding, to a drag show, to multiple sweet 16 parties, to weekend-long iBook Authors conference. We have some extra income from conference room rentals, but that has not been significant at this point. Our current marketing push is to ramp up coworking memberships.
We don’t have any additional “services” offered for which we charge. We also opted for a fairly small menu of offerings to keep things simple in our first year.
Best-
Kate