“I am skilled and have a group of 5-6 such friends, can I start any business on my own and earn a handsome amount?” If you’re in the above situation, you’re at the correct place.In this article, we are going to discuss how can you use your potential as a team. For setting up a workspace where you can work for several clients and earn a bit very much. Though starting a coworking business needs clarification on several terms and procedures. There is no need to panic as we are going to see the whole concept.
Before diving into the various pointers, let’s first understand what a coworker’s business is.
What is the coworking business model?
It is a business model in which like-mind people assemble in a neutral space and work independently on the same or different projects.
Unlike typical office work, a coworking business works for different companies and clients simultaneously. However, the amenities, resources, structures, and infrastructures are the same as a normal office. It is a network of computer systems, printers, Wi-Fi, conference and refreshment rooms, and some more digital assets.
This would be interesting to know that the model was first used by a hacker team in Berlin (Germany) in 1995. In the last 25 years, it has been viral and running all over the world. Yes, no doubt it was a notorious practice, but people gained an excellent idea from this to work together and save investments, resources, and a lot of energy.
What are the advantages of a coworking business model?
Working together in the same space has amazing benefits. And trust us, it is far better than working individually at a separate location.
Here are some examples of the advantages of a coworking business model:
- Flexible and like-mind workspace: Since a group of like-mind with different skilled people starts working together with the same interest and target, the environment is flexible to work for a long time. It’s only due to the flexibility, that coworking has grown many folds and continues to enhance work efficiency.
The most interesting part is no strict rules to follow that can’t be seen in a typical office. A team member has the authority to sit on any desk to work without being pinned by anyone.
We see in most companies and offices that workers are disturbed and suppressed by the workload given by their supervisors and managers. In this term, a friendly workspace creates an employee satisfaction medium for the workers.
- Prospects of a better networking system: Coworking space has another benefit in comparison to offices, that it offers better opportunities to network with new people with variable talents.
Working with many goal-oriented and skilled employees, you gain more knowledge and meet broad mind thinkers which leads to establishing a great brand. This helps to get more clients and earn a lot.
- Reduce Expenses: A coworking business also reduces expenses in many ways such as rent for different spaces, electricity consumption, equipment expenses, energy, and so on.
It is always a tedious and expensive task to set up private offices. The coworking model also decreases investments in maintaining multiple social media sites, business emails, applications (if in use), and electronic devices such as printers and computers.
- Grow business swiftly: This is one of the fastest segments where you can grow your business at doubled or tripled speed. Better networking and connectivity with people around you bring in more idea innovative ideas and a series of work for you.
It provides you with the path to expand your business in rapid growth. You may get references from the people you are working with within a shared workspace.
- Source of learning new skills: A coworking space is not only beneficial for collaborating with team members but also helps you to learn new technical and non-technical skills. A coworking business involves several kinds of work such as designing, developing, managing profiles, events (ads and campaigning), client online and offline shops, networking, marketing, and many more that add on new capability in you too.
- Emotional and temperamental support: Working together within a space-friendly also builds emotional and temperamental relationships. You can share the ups and downs and can resolve the issues with the help of your friendship. This non-materialistic support is always missing in organizations and companies.
Regular parties and outings help you to reduce your stress and negativity.
There are several it’s you receive in a coworking business model. It is always profitable for negative or positive circumstances.
Types of coworking business models
- Conventional workspace
- High-end workspace
- Professional space
- Conventional space
- Private workspace
- Shared Space
- Lifestyle space
- Industrial-specific workspace
- Meeting space
- Virtual workspace
What kind of jobs a coworking business does?
A coworking business is free to work for any person, company, organization, or agency. With this, a series of tasks can be done by the coworking business according to the skills the team has.
The priority is always given to IT (Informational Technology) where you can design and develops websites and applications.Even you can do everything as a digital marketer such as SEO (Search Engine Optimization), SMO (Social Media Optimization), SEM (Search Engine Marketing), SMM (Social Media Marketing), affiliate marketing, influencer marketing, email marketing, content writing, and marketing.
If you are skilled with art and craft, you can design greeting cards, postcards, calendars, paintings, cloth designing, etc.
There are several other areas a coworking company can work on like law-related issues. Healthcare products and services, home security system agencies, manpower service business, and so on.
7 simple steps to start a coworking business model
Setting up a new business is always a challenge and can be managed easily by following particular manners and etiquette.
Here are some steps that you need to follow before you think of a coworking business model.
- Set up a space to work and complete paperwork
This is important to set up you’re your space in an area that should be calm, clean, and trafficless. Where your team can sit for multiple hours without any noise or unwanted disturbance.
A coworking business also requires a legal formality to get that registered by the ROC (Registrars of Companies, under section 609). Trust us, this is a very easy task and doesn’t need a high investment.
You have options available to buy, lease or franchise the property depending on the funds you have to invest.
- Plan a finance/budget model
After choosing a place, the second major task is to plan your total finances. This includes rent or lease, equipment costs, furniture, maintenance costs, electricity and water charges, distribution system of salary among employees, and income sources.
Budget management is a must and should be handled by finance advisors if you have one. It is seen that many communities get collapsed due to mismanagement of the daily, monthly, or yearly budget.
Make sure, you plan for fixed and ongoing investments that help you to manage your finance properly.
- Prepare a team and a hiring process
Building a like-mind team is not an easy task and you should do this at your end in a high priority. Without a team of multi-tasking and multi-skilled mates, you won’t be able to run a coworking business.
It requires at least a team of 5-6 members and you should be ready to employ more if needed in the future. Hiring new candidates with additional expertise can grow your business higher and more demanding.
A person in your team should have the skill of interviewing people so that you can make sure the new workers are better for your space. He/she can also perform multiple other human resources tasks.
- Arranging systems and furniture: To work proficiently, you need to arrange high-quality computer systems, printers and scanners, networking equipment, spacious furniture, decorative items, air condition and room warmers, and miscellaneous items such as electrical appliances, trash bags, utensils, tissue papers, etc.
- Launch the space by testing your systems: Name your business according to your niche and once you arrange everything, you can test the complete process on your projects before you jump taking the client’s projects.
- Marketing and Networking to the target audience: Now you are ready to market your process and start contacting audiences through social media profiles (LinkedIn, Facebook business pages, websites, applications, etc.) and freelancers. There are several other systems you can look for the clients.
Through networking, you can let people know about your new and effective venture. Your marketing team can handle this task, so you should have a couple of members who have a good online presence on each professional network.
- Open your business bank accounts and credit cards: Opening your business bank accounts and credit cards will make your business separate from your personal life and assets.
You will also need to use online payment methods for every transaction so that you will have a report for the expenditures and expenses. It is recommended to disperse salaries in employee’s saving accounts.
What are the key responsibilities and targets as a team for a coworking business?
- Build valuable partnerships and relations with clients
- People management
- Enhance location and growth strategy
- Fill in for the gaps in staffing needs
How much does it cost to start a coworking business?
To start a business with starting needs a series of investments and so is required for a coworking business. The investments will include physical space, interior design, housekeeping, business operations (including salaries and marketing), and electronic and technical devices (computer systems, printers, speakers, headphones, mikes, cameras, miscellaneous chords, air-conditioning, room heater, etc).
The investments or expenses depend on the length of the space and the number of employees you have.
Let us take an average of 300 square feet of space and the number of employees around 10.
- Physical space would be around 50k to 60k INR per month.
- Interior design is a one-time charge and you have to maintain it. It will cost around 1 lac to 1.5 lacs INR.
- Housekeeping requires 20k to 30k INR monthly including the housekeeper’s salaries. You must appoint 2-3 housekeepers to keep the space clean and germs-free.
- Business Operations would cost you a bit higher, however, it you can manage it, if you have a good number of clients. It costs around 2 lacs to 2.5 lacs INR if you have a team of 10 members.
- Electronic and technical devices are a one-time investment and will be around 10 lacs or more INR.
We would suggest starting your business with 4-5 employees and an area of 100 square feet. Andeasily you can cover this under 8 lacs INR.
You should have emergency funds around 4-5 lacs INR in your accounts for hard times.
To summarise what we have discussed to make a coworking business model a success, make a team of like-mind and expert/skilled people, search for a preferred location for your space, arrange equipment and fix them, market your business, target clients, and start working with full of enthusiasm. Taking your business at acme requires a lot of discipline and effort. And if applied flawlessly, no one can stop the business to rank.
We only want you to grow and get success and that’s why we keep reminding you to start any business. Starting with a good plan and don’t jump into any business unless you have fund arrangements and an energetic team.
We hope the article will help you to convert your idea of a coworking business into a plan. In case of any doubt or query, you just need to comment to us and we will make the things easier to grab.
Have a great day ahead!