Exciting New Business Idea: Launching a Co-Working Space

In the modern world, there has been a surge in various new avenues of human activities. One of them is freelancing. Freelancers are independent entrepreneurs (often involved in online work), working for themselves. Many of them, due to the nature of their work, have to interact with other freelancers. The fruits of such collaboration are joint projects, satisfied clients, and intellectual and creative enrichment.

Collaboration happens through networks, which are not always convenient. Another issue is that working from home may not always allow for optimal focus due to various distracting factors.

It is in light of these two nuances that coworking spaces were conceived. Coworking, literally translated as "collaborative work," represents a workspace conducive for work.

Coworking was invented in 2005 by a programmer from California, Brad Newberg, not as a business endeavor initially. His brainchild was called "The Hat Factory" and was located in San Francisco. Initially, it was simply a desire to combine all the privileges of a "free artist" with office work and to provide other freelancers with the same opportunity. By leasing a large space in an office building, he offered this work format to his friends. People liked the idea, and thus "coworking" was born.

Key features of coworking spaces include high-speed Wi-Fi access, individual workstations (desk, chair), personal storage lockers, cozy and pleasant interiors, often with bookshelves (even entire libraries), relaxation areas (hammocks, couches, soft flooring), and kitchen facilities (tea, cookies).

Based on the coworking business experience, it can be concluded that people using such shared spaces go there not only to work but also to socialize with colleagues, relax, and spend quality time. Coworking is popular among remote workers: programmers, designers, copywriters, translators, and aspiring entrepreneurs. Thus, coworking acts as an intermediary between working from home and a traditional office.

In the capital of Ukraine, the first similar centers have already emerged, including:

• Coworking on Lukianivka
• Work and Roll
• Coworking center "Status"
• Coworking at Polytechnic
• Coworking on Holosiivska

There are also coworking spaces in Moscow and St. Petersburg:

• "Action Zone"
• VAO Coworking
• Les
• "Good Republic"
• "Work Station"
• Work Smart
• Start Hub
• "Nagatino Club"
• Flacon Coworking
• To-Do-Club

So, coworking is trendy, convenient, and promising. How to create your own coworking space? Here is what the founders of the St. Petersburg coworking center "Action Zone" write about it:

Team

A team is essential. Key roles in the team: administrator, space designer, technical support, marketing, events coordinator, community manager, special projects. The core team consists of 4-8 people + 5-20 assistants (volunteers or project friends). It is desirable for salaries to be paid from the first days of the project's existence.

Location

The location plays a significant role. Important aspects: proximity to metro stations, city center, adjacent to creative projects. Interior specifics: high ceilings, floor-to-ceiling windows, brick walls, historical features. The place should be comfortable and good, and it's worth investing in it. Major advantages include having a kitchen and 24/7 access.

Community

Usually, there are numerous subcultures in any city. It's unlikely to accommodate everyone in one convenient space, so it's essential to plan in advance: who the complex will primarily cater to. It's crucial to invite creative, well-known, and vibrant guests—who bring life to the studio. Strive to provide maximum benefit to the community: space provision, networking, and knowledge exchange.

Marketing

Marketing can be done through: photo reports, online streams, video lectures, etc. Collaborating with local media is an excellent way to make the place recognized and popular. Engage in discussions with other spaces.

Events

Set conditions in advance, determine: to whom the space is rented at a reduced price, for free, or at full cost. Organize weekend promotions and themed conferences—such events bring the highest profit. Agree on the division of clean revenue rather than paying a fixed rate.

Education

Well-organized educational programs can bring up to half of a coworking space's revenue. These programs can be of different types: free or inexpensive courses and paid courses. Provide a variety of program directions for choice and monitor which ones are most in demand.

Space Design

In the first month or two, go all out. Invest maximum enthusiasm and effort. Delaying this will make it much more challenging. It's impossible to plan everything down to the last detail at once. Design iteration is a process: furniture arrangement, zones, etc. Maximize barter with partners: office greening, video streaming, tea, bicycles, architects, art schools, graphic design, video clips, frameless furniture, sound rentals, board games, coffee breaks. Pay attention to what visitors do and where: where they converse, where they negotiate, where they read. Note possible discomforts and eliminate them. Create a common round table for community bonding. Each space has its unique quirks: some have a tower layout, a punching bag, a unicycle, a green area around. Find inspiration by "peeking" at other coworking studios worldwide. Take the best ideas and adapt them to your region.

Order

Establish rules that govern behavior in the space. Key issues include: silence, negotiation points, kitchen usage, workstations, interchangeable footwear.

Finances

Income is determined by center services: event rentals, in-house programs, corporate partnerships. To be profitable and have a quick ROI, aim to be more than just a coworking space. Auxiliary services include own educational programs, cafes, hostels, inexpensive rent in exchange for repairs, government support. Achieving operational profitability in the third or fourth month of operation is quite realistic. To quickly recoup investments, one must work hard for a year or two at the beginning. There's a belief that any coworking space that lasts two years manages to break even.

Coworking is a new business idea. There's still limited experience, but also limited competition. Significant investments are required, but there's high demand. It presents a vast field for the creativity of ambitious businessmen. Dive in! Best of luck!