In large cities in the West and in Russia, coworking spaces for representatives of office specialties operate successfully. What does success depend on and how to open a coworking center?
What is coworking
The term coworking comes from the English co-working or coworking - joint work. This is the name of a workspace that replaces an office for independent specialists in various office specialties. Programmers, journalists, copywriters, designers and other specialists work in coworking spaces. Essentially, a coworking space is a collective office, the rent of which is paid by each client.
A typical coworking space has a spacious, open workspace. The minimum set of equipment and furniture required for work is installed here. These include tables and chairs, lighting, electrical outlets, and WiFi routers. Coworking spaces may also have other utility and work spaces:
Wardrobe.
Restroom.
The meeting room.
Bathroom. Some coworking spaces have showers.
Sports or gaming compartment.
Conference hall.
For a relatively low fee, a specialist can rent a workplace. Renting a coworking space is much cheaper than renting an office. Even startups and young IT companies use this. It is more convenient for them to rent several workstations in a coworking space than to rent an expensive office.
One of the most famous coworking spaces in New York, NewWork City, is located in the center of the metropolis. It features a large open workspace as well as five isolated mini-offices for teams. The comfort of this coworking space will be the envy of employees of many large companies. The first contribution of the founders of NewWorkCity amounted to 17 thousand dollars. The guys raised funds to start the business on Kickstarter.
NewWorkCity: one of the most famous coworking spaces in New York
How does a coworking space make money?
The coworking project involves generating income from the rental of workspaces by specialists. However, this is not the only source of financial income.
Coworking centers also make money by renting conference rooms and training rooms, holding paid events and training courses. New coworking spaces receive more than half of their income from paid trainings and conferences.
The premises of coworking centers are rented out for holding press conferences, filming TV shows, and photo shoots.
Some centers offer related services, for example, paid use of office equipment. However, a more promising business model is one in which the cost of office equipment is included in the rental fee for a workplace.
Coworking "Kavardak" in Yekaterinburg
To attract tenants, the coworking team must be very active at the start. In addition to investing in equipping office space, you will have to invest in organizing promotional events for specialists. It can be:
Free trainings and workshops.
Concerts.
Creative evenings like “Hello, we are looking for talents.”
Fairs of handmade goods.
Exhibitions of creative works.
Themed parties.
To effectively conduct business, the coworking team must create an active community based on the center, which constantly participates in various events and even organizes them itself.
With a successful set of circumstances, the initial investment in a coworking space pays off within a few months. However, most Russian centers pay for themselves within approximately a year.
How to open a coworking center: step-by-step plan
To open a coworking space, a team of owners must solve the following tasks: rent or buy suitable premises, renovate and equip the center, organize marketing of services to attract partners and clients. Read more about solving these problems below.
1. What kind of space is needed for a coworking space?
Renting a space is the optimal solution for future coworking owners. Firstly, it will cost less than buying it. Secondly, if necessary, the center can be moved to another building. However, if you are confident in the success of the project and the good location of the building, you can purchase it.
What to look for when choosing a room? Here are the main ideas:
Coworking space should operate in the city center. It’s good if there are universities, entertainment venues, shopping centers, cafes or canteens nearby.
The area of the room must be sufficient to organize an openspace type workspace for several dozen specialists. Ideally, it should be possible to organize several zones with different functional purposes. At a minimum, a coworking space should have a conference room, a kitchen and a relaxation area.
A separate entrance would be a huge plus. It will simplify the ability to operate around the clock.
Ideal premises for coworking spaces should be sought in closed or opening shopping centers, abandoned industrial facilities, and educational institutions.
2. Repair, equipment and equipment of coworking space
Investments in equipment and renovations will be the main expense for potential coworking space owners. The premises should look decent and be comfortable for co-workers at any time of the year.
What you will have to buy:
Office equipment: multifunctional devices, projectors, screens, audio system.
Furniture: tables, chairs, wardrobes for clothes and things.
Kitchen appliances: coffee machines, microwave ovens, refrigerators. You will also need furniture.
Equipment and furniture for a recreation area or room. This could be sports equipment, computer consoles, board games.
High quality lighting. It is necessary to install modern LED lamps with a neutral color temperature and a high color rendering coefficient. They will have a positive impact on the well-being and performance of coworkers.
Organizers need to take care of a high-quality high-speed Internet connection. It is also worth considering the feasibility of equipping several workplaces with desktop computers.
3. Project marketing
It is most profitable to promote a coworking center project on the Internet, since the target audience is among the active Internet users. The project website should be at the center of online promotion. It is imperative to publish a description of the coworker’s capabilities, photographs and videos of the premises. You can also publish regular photo reports from educational and entertainment events on the website.
Coworking MatrixOffice in Moscow
The website of a coworking center must be socialized. Connected communities on Facebook and Vkontakte should be lively, interesting and beneficial for subscribers. Half of the success in social networks depends on the activity of the coworking team. You can attract visitors to your website and communities using useful publications, contextual advertising, and retargeting.
As noted above, you should try to build offline marketing around the coworker community. Potential clients should learn about the project from satisfied freelancers who have become regulars at the center.
Instead of a conclusion, or Is it difficult to open a coworking space?
Technically, opening a collective office is simple. However, the success of the enterprise will depend on a number of factors. In addition to having start-up capital and a good team, you need to think about suitable premises, the format of the center, and related services. A coworking space will operate successfully and be profitable if you are able to constantly maintain activity and arouse interest in the center through certain events.
The goal of the project is to open a coworking center to provide a range of services in the field of coworking (organizing the work of various specialists in one territory, which is a “joint office”). This coworking center positions itself as a unique creative space that brings together people of creative professions and inspires them to work.
The target audience of the coworking center consists of various groups, which include freelancers, aspiring entrepreneurs, the self-employed population, as well as people seeking self-development.
To implement the project, a commercial area of 160 sq.m. is rented in the central part of the city.
Coworking centers are a new phenomenon in the Russian business environment. The first such establishment opened in Russia in 2008. Today, about 300 coworking centers are registered throughout the country, 1/3 of them are located in Moscow. For other large cities, this niche is freer and opens up many prospects.
A coworking center is a relatively long-term investment that will not pay off immediately. The payback period for coworking centers is 1-2 years, which may scare off some entrepreneurs. Another challenge is the requirement for a significant amount of upfront costs. This type of business is more suitable for those investors who are focused on implementing a long-term project that takes into account the trends of the modern economy. The main advantage of a coworking center as a business area is its focus on economic trends. Every year the number of specialists working through the distance employment system increases. It is expected that in Russia by 2020 the share of specialists working remotely will increase to 20%. Therefore, opening coworking centers now will allow you to occupy a free and promising niche, the popularity of which will increase significantly in a couple of years.
The volume of initial investment is 1,020,000 rubles. Investment costs are aimed at renovating the premises, purchasing furniture and equipment, advertising and generating working capital, which will cover losses in the initial periods. The bulk of the required investment falls on the purchase of furniture and equipment – 44.1%. Own funds will be used to implement the project.
Financial calculations cover a five-year period of operation of the project. According to calculations, the initial investment will pay off after fifteen months of operation. Net profit upon reaching the planned sales volume will be 86,000 rubles/month. Reaching the planned sales volume is expected in the 4th month of operation.
Table 1. Key project performance indicators
2. DESCRIPTION OF THE INDUSTRY AND COMPANY
The development of the economy and entrepreneurship is very dynamic. The changes affect all organizational business processes, which contributes to the expansion of the range of outsourcing and freelancing. Modern business adapts to new requirements and needs of subjects of economic relations. Individual specialists and professional groups are looking for alternative options for organizing their workspace. Conventional offices, for which significant amounts of money are spent on rent, are being replaced by so-called coworking centers - a place where you can work, hold business meetings, use Wi-Fi and relax.
In recent years, coworking centers have been gaining popularity as there is a trend for professionals to switch to remote work. Photographers, designers, IT specialists, writers, lawyers - representatives of completely different professions come to the conclusion that using coworking centers is much more convenient and cheaper than renting expensive offices in the city center.
The idea of coworking centers appeared in the USA in 2005, but is relatively new for Russia. The first coworking center in Russia was opened in Chelyabinsk in 2008. Today, there are about 300 coworking centers registered in Russia, more than 100 of which are located in Moscow. However, it is too early to talk about market saturation.
This format has taken root well in many countries, but in Russia it is still at the initial stage of its development and has not acquired the same scale as in some countries. The reason for this lies in the specifics of the domestic economy: firstly, remote employment of specialists in Russia does not exceed 5% of the total active economically employed population (for comparison, in the USA, 45% of employees work remotely or have such an opportunity); secondly, tenants are reluctant to rent out premises intended for coworking centers, as they consider this business to be rather fickle. Despite this, positive trends in business allow us to talk about coworking centers as a promising direction, because:
— the percentage of remote employment in Russia is growing every year. According to J’son & Partners Consulting, by 2020 the share of remotely working employees in Russia will grow to 20%, which will provide employers with savings of more than 1 trillion rubles.
— large Russian companies are already demonstrating a tendency to switch to remote work. For example, the VimpelCom company plans to close 70% of its offices by the end of 2018 and transfer employees to remote work. Small and medium-sized businesses also support this trend. According to the results of a survey conducted by Bitrix 24, 27% of companies plan to transfer more than half of their staff to remote work.
— 67% of applicants show a desire to work remotely. And the number of vacancies offering such work is about 35% of the total share of advertisements.
— the desire of small and medium-sized businesses to save on renting office space during the crisis.
In Rostov-on-Don there are currently 5 sites that provide coworking center services. For a large city with a population of more than 1 million people, this is not enough, so creating a comfortable workspace in the format of a coworking center is considered a promising direction.
Thus, we can talk about the investment attractiveness of this business. The opening of a coworking center will allow us to take into account the trends of modern economics and entrepreneurship and occupy a free niche in anticipation of the development of this area.
3. DESCRIPTION OF GOODS AND SERVICES
The term “coworking” can be literally translated as “working together.” Consequently, coworking is a form of self-organization, a community of people united in one space to do some work. At their core, coworking centers are “communal offices” and provide space for work, business meetings and various events. In such a space, you can rent a permanent workplace or periodically visit the establishment as needed. It is this variability that determines the main advantage of coworking centers. In addition, coworking centers are very convenient, as they are equipped with everything necessary to organize comfortable work. Here you can rent an entire workplace with a table, a personal locker for things, use free wi-fi, and drink coffee. Coworking centers are especially popular among intellectuals and creative professionals. In the space of a coworking center you can meet entrepreneurs, freelancers, small companies for which it is not profitable to rent a separate office, and creative groups gathered to develop one common project.
At their core, coworking centers are similar to anti-cafes, with the only difference being that anti-cafes are intended for relaxation, and co-working centers are for work. However, the principle is the same: the visitor is provided with a universal space for use and pays for the time spent in it.
Coworking centers have the following advantages:
— savings on renting premises;
— variability of use: in the center you can rent one workplace for a certain period of time, or periodically visit the center, using the free space;
— the centers are suitable both for organizing individual work and for holding various meetings, seminars, video conferences and other events. For this purpose, the centers have various zones;
— the business environment contributes to increased productivity;
— coworking centers can become a platform for useful business contacts;
— the centers are equipped with everything necessary for work: office equipment, Wi-Fi, etc.
However, the following disadvantages of coworking centers should be taken into account:
— the open layout of a “communal office” is not suitable for people who are used to working in silence and privacy;
— not every specialist is ready to pay daily rent for a workplace.
Thus, when opening a coworking center, you need to clearly understand which categories of specialists will be interested in this offer.
The coworking center project involves making a profit from renting workspaces to various specialists. In addition to the main source of income, coworking centers also make money by renting conference rooms and training rooms, conducting training courses, master classes, and so on.
In accordance with the list of services offered by the coworking center, the organization of the space itself, the required area, and tariffs are determined. Some coworking centers are created with a specific theme - for example, it can be a space that brings together creative people, industry employees or aspiring entrepreneurs. Such thematic coworking centers allow you to unite specialists from the same field of activity, which is regarded by visitors as an additional advantage. Managing such thematic coworking centers is much easier, since there is a clear understanding of the target audience and the requirements it makes.
This project involves the creation of a coworking center, which will be a creative space. The center positions itself as a place where representatives of creative professions can interact with each other or get inspiration for work. This concept involves the creation of three functional zones: isolated workplaces that allow you to work in privacy and silence; a common room where negotiations and meetings will be held; as well as a separate room for conducting seminars, trainings, and so on. The coworking center will host various trainings, creative evenings, exhibitions of creative works, etc. Thus, the mission of this coworking center is to create a creative space aimed at developing the creative potential of its visitors.
In connection with a certain concept, an approximate list of coworking center services has been established:
— permanent or one-time rental of a workplace (the price includes the use of office equipment, free Internet, use of a coffee machine and cooler);
— rent of a hall for seminars (price includes the use of equipment for presentations);
— renting a hall for exhibitions, concerts, creative evenings, etc.;
— organization of free seminars, workshops or theme evenings by the center itself. This service is aimed at attracting visitors.
It is important to understand that in order to effectively run a coworking center business, it is necessary to create an active community on its basis, which constantly participates in various events and organizes them itself.
4. SALES AND MARKETING
The target audience of coworking spaces can be divided into three large groups:
— freelancers make up the majority of users of coworking center services. These include IT specialists, copywriters, translators, copywriters, designers and other specialists working remotely. This group mainly includes representatives of intellectual work;
- beginning entrepreneurs - some of them do not need a permanent office, while others do not have the opportunity to rent an expensive office on a permanent basis;
- self-employed population - usually this group includes representatives of creative professions (photographers, writers, coaches, etc.).
We can also separately highlight people who strive for self-development and attend various events in coworking centers.
Thus, the audience of coworking centers is quite diverse and numerous.
Due to the fact that the format of coworking centers itself is quite specific, a certain set of advertising methods should be used to promote them. Coworking centers need advertising, since the very concept of workspaces is relatively new for Russia, and marketers have a primary task of telling potential consumers about all the advantages of coworking centers.
The following advertising methods are suitable for promoting coworking centers:
— Internet promotion using a website and groups on social networks;
— organization of educational and entertainment events for visitors;
— provision of content: photo reports, live broadcasts, video lectures, useful information;
— creating a comfortable work space and relaxation area;
— partnership with local media.
Advertising methods include the location of coworking centers. The most convenient option is to locate the premises in the city center, where business activity is usually concentrated. This will attract more visitors.
This project involves active promotion of the coworking center, which implies a certain advertising budget. The planned list of promotional events and the costs of carrying them out are presented in Table 2. According to calculations, 75 thousand rubles are planned to be spent on promoting the coworking center.
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Event |
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Creating your own website |
Should reflect the main advantages of the coworking center, visiting rates, photographs of the workspace, photo reports of events held, contacts and address, list of services, program of planned events |
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This involves creating advertising material (flyers/booklets) and distributing it in places where the target audience gathers. Costs include the costs of creating and printing flyers, as well as salaries for promoters. It is possible to distribute flyers with a discount coupon |
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Event Marketing |
This could be a special program in honor of the opening of a coworking center or the organization of a free master class |
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Total: |
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An active marketing strategy allows you to recoup the cost of a coworking center in a few months, although it usually takes about 1 year. On average, prices for using a coworking space are:
— one-time visit: 300-500 rub.
— monthly subscriber cost: 5,000-15,000 rubles.
— cost of renting a conference room: 5,000-10,000 rubles.
Based on the average prices for the basic services of coworking centers, we will calculate the planned income. To do this, we determine the average number of visitors per day - 20 people and the average bill is 400 rubles: 20*400*30=240,000 (rubles). The number of monthly passes sold is 10, with an average cost of 8,000 rubles: 10*8000=80,000 (rubles).
Number of events held per month: 20, average cost of renting a hall is 8,000 rubles: 20*8000= 160,000 (rubles).
Thus, the estimated monthly income of the coworking center is 480,000 rubles.
5. PRODUCTION PLAN
Opening a coworking center and organizing its activities involves the following stages:
1) Selecting location and premises. When choosing a location for a coworking center, preference should be given to the city center. Firstly, this is where the bulk of business processes are concentrated; secondly, it is equally convenient for all clients to get there; thirdly, such placement is prestigious, which is important for those clients who plan to hold various business meetings and negotiations at the coworking center.
When choosing a location, you should pay attention to the presence of a convenient transport interchange, parking for cars, as well as the landscape outside the windows - it has been found that visitors to coworking centers pay attention to the view from the window.
There are also certain requirements for the coworking space itself. Zoning of a coworking center involves the use of a large area. The minimum area for a coworking center is 100 sq.m. This project involves renting an area of 160 sq.m. in the central part of the city. The rental price is 110,000 rubles/month.
2) Decoration of the premises. Proper zoning and design of space is one of the key parameters for the success of a coworking space. If you can organize comfortable conditions, visitors will be willing to return and pay for special conditions that cannot be achieved in other places. In other words, a coworking center should become a unique space that can attract visitors. Comfortable furniture, interesting interior, correct zoning - all these are elements that create a special atmosphere. Creative people especially value the aesthetics of the environment, so in this project it is planned to use the services of a designer to create an attractive interior. The cost of designer services and renovation of the premises will be 300,000 rubles.
3) Purchase of furniture and equipment. Coworking provides a comfortable work space. Therefore, you should carefully consider the content of a coworking center. Table 3 presents an approximate list of necessary equipment, based on the organization of a coworking space for 30 workstations and a conference room with a capacity of up to 100 people. According to calculations, the total cost of equipping a coworking center will be 450,000 rubles.
Table 3. Costs for furniture and equipment of a coworking center
It is important to understand that the more complete and multifunctional the equipment is, the more time the client will spend within the walls of the coworking center.
4) Recruitment. A standard coworking center does not require large staff. The main position is administrator. His responsibilities include: monitoring the serviceability of equipment and order in the premises, monitoring supplies of consumables, selling subscriptions to visitors, informing clients about promotions, tariffs, planned events, maintaining an account on a social network. It is recommended to invite girls to the position of administrator, as they usually inspire more confidence among visitors. For a small coworking center, 2 administrators working in shifts will be enough. In addition, you may need the services of an accountant, a cleaner and an IT specialist who will maintain the site.
In this project, it is assumed that the entrepreneur himself maintains accounting records; the IT specialist is not part of the main staff, working under an outsourcing agreement.
6. ORGANIZATIONAL PLAN
The initial stage of opening a coworking center is registering the business with government agencies and completing all the necessary documentation.
To conduct commercial activities, an LLC is registered with a simplified taxation system (“income minus expenses” at a rate of 15%). Type of activity according to OKVED-2:
68.20.2 Rent and management of own or leased non-residential real estate
77.33 Renting and leasing of office machinery and equipment, including computer equipment
77.2 Hire and lease of personal and household items.
The coworking center's opening hours are daily, from 9:00 to 21:00. Based on this, the staffing table is formed. Since the establishment is open 7 days a week and 12 hours a day, a shift work schedule should be organized for the main staff.
In this project, the entrepreneur performs the duties of a manager and accountant. He is responsible for hiring staff, developing marketing policies, supervising staff and accounting.
Thus, the total wage fund is 109,200 rubles.
Table 4. Staffing and wage fund
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Administrative |
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Director |
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Trade |
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Administrator (shift schedule) |
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Auxiliary |
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Cleaning woman |
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7. FINANCIAL PLAN
The financial plan takes into account all income and expenses of the project; the planning horizon is 5 years.
To start a project, it is necessary to calculate the amount of initial investment. To do this, you need to determine the costs of purchasing furniture and equipment, advertising promotion on the market and the formation of working capital, which will cover the losses of the initial periods.
The initial investment for a coworking center is 1,020,000 rubles. The bulk of the required investments falls on the purchase of furniture and equipment - 44.1%, the share of expenses for rent and renovation of premises is 40.1%, for advertising - 7.4%. Other expense items account for 8.4% of the total investment. The project is financed from own capital. The main items of investment costs are shown in Table 5.
Table 5. Investment costs
Variable costs consist of the cost of consumables (paper and ink for office equipment, water and drinks that are generally available, etc.). To simplify financial calculations, variable costs are calculated based on the amount of the average bill and a fixed markup of 300%.
Fixed expenses consist of rent, utility bills and Internet payments, payroll, advertising costs and depreciation charges. The amount of depreciation charges is determined by the linear method, based on the useful life of fixed assets of 5 years.
Table 6. Fixed costs
Thus, fixed monthly expenses were determined in the amount of 276,700 rubles.
8. EVALUATION OF EFFECTIVENESS
The payback period for the project with an initial investment of 1,020,000 rubles is 15 months. Practice shows that the average payback period for coworking centers is 1.5-2 years. According to the analytical site DeskMag, “any coworking space that lasts two years turns out to be a plus.” Thus, a payback period of 15 months is a completely optimistic forecast for this line of business. It is possible to achieve such results with proper business organization and effective use of opportunities. All this will ensure a sufficient level of sales.
Reaching the planned sales volume is planned for the 4th month of operation. The net profit for the first year of operation will be 879,136 rubles. Return on sales in the first year of operation is 15.9%.
The net present value is positive and equal to 241,495 rubles, which allows us to talk about the investment attractiveness of the project. The return on investment ratio is 8.36%, the internal rate of return exceeds the discount rate and is equal to 7.36%.
9. POSSIBLE RISKS
To assess the risk component of the project, it is necessary to analyze external and internal factors. External factors include threats related to the economic situation in the country and sales markets. Internal – the effectiveness of organization management.
Internal risks:
— low attendance of the establishment due to the unpreparedness of specialists and entrepreneurs to switch to working in a coworking format. This problem can be solved with the help of a well-thought-out marketing strategy that will convey to the target audience all the advantages of coworking centers;
— a decrease in the reputation of the coworking center itself among the target audience due to errors in management or a decrease in the quality of services. It is possible to reduce the risk by carefully selecting personnel and monitoring the quality of services provided, as well as monitoring visitor reviews;
— seasonality of sales: during vacations and holidays, the number of visitors to coworking centers decreases. To mitigate this risk, it is proposed to use alternative methods of obtaining benefits. For example, during the holidays it is recommended to use the space of a coworking center as a platform for exhibitions, concerts, themed evenings, etc. Another method of attracting visitors can be a loyalty program, promotions and discounts. In the summer, you can adapt the center’s program for students and schoolchildren, providing them with discounts on visits;
— behavior of center residents. Since coworking involves bringing together different people in one space, discipline may be difficult. Work requires maintaining a certain atmosphere and following the rules outlined for visitors to the coworking center. This risk is specific and quite difficult to combat. This risk can be minimized through proper planning of the workspace, which includes isolated workstations.
External risks:
— the presence of stronger and more popular competitors. It is possible to reduce the impact of this risk by creating a unique offer that competitors cannot offer. High quality of services and flexible pricing policy are the main competitive advantages that a coworking center should strive for;
— increasing the cost of purchasing materials and renting premises. This risk can be mitigated by choosing partners wisely and including all necessary requirements and conditions in the contract;
— a decrease in the cost of renting traditional office space due to the crisis, which will make coworking less competitive. To avoid this risk, it is necessary to create a multidirectional center and diversify sources of income.
Evgeniya Yurkina
(c)—
For Russia, coworking is a new phenomenon. These are specially equipped premises for freelancers to work and conduct business meetings. In a common area for work, everyone can find a comfortable place where they will not be distracted. The idea seems quite promising.
The first one opened in the USA in 2005, and for Russia this is a new phenomenon, but already appreciated. There is an opinion that mainly freelancers come to work in coworking spaces. This is not entirely true - premises for business meetings are required by businessmen who come from other cities and countries; you can often see lawyers, translators, even artists and writers here. Coworking is a common area for work, where everyone can find a comfortable place where they will not be distracted.
When studying American coworking spaces, it turned out that in some, each workplace has a specific purpose, and the space is also divided into separate zones with signs “I am working”, “I will be glad to communicate”, “I will not refuse help”. The practice of the most popular coworking centers that have implemented the “Office in an Office” scheme is interesting. The room is divided into segments by translucent partitions, each of which has a work desk with a chair and a small closet. If necessary, partitions and furniture can be easily dismantled and the space becomes shared. If a workplace tenant brings a new client to a coworking space, he is entitled to a discount, and this technique also works. Many coworking spaces allow casual visitors to work for free; regular visitors are asked to pay for the space.
Prospects for coworking in Russia
In our country, coworking spaces began to open not so long ago, users are just taking a closer look at this innovation, some perceive the offer to work outside of home and office with irony and bewilderment. The best proof of the usefulness of the idea can be seen in the demand for co-working spaces. Apparently, the need for equipped work areas “for hire” arose a long time ago, so people began to gather in them without much persuasion. Workplaces are rented:
- Consultants, lawyers and other professionals who require work space from time to time.
- Small firms rent office space.
- For companies whose employees are located in different cities, it is more profitable to periodically rent workplaces.
- Beginning businessmen hold meetings in coworking spaces, since renting or buying an office in a large city is unreasonably expensive.
This will require investments, the size of which depends on the area of the premises, its location and condition. Under favorable conditions, the investment will pay off in a year, but there is no point in putting off starting a business, as in the near future this idea will become relevant and competition will increase. The growing number of freelancers can predict the popularity of coworking spaces.
Workplaces, rooms for conferences, trainings and business meetings are rented by a variety of people and companies, but the main users remain freelancers. Many freelancers would like to combine a free schedule, independent planning and lack of control from management with the attractive attributes of office life: the opportunity to communicate, exchange experiences, and modern equipment. In short, coworking spaces are an ideal place for extroverted freelancers.
Where to look for a coworking space
Of course, it would be good to settle in the business center of a metropolis with an abundance of businessmen, IT specialists, and freelancers who constantly need a place for negotiations, solving business issues, and working alone. It is unlikely that startups can afford to rent or buy such premises, and there is always a shortage of free areas in the city center. Look for a conveniently located place near a transport intersection or metro station. It is good if there is a parking space nearby, since many business people travel by personal transport.
Pay attention to the landscape outside the windows - it turns out that visitors to coworking spaces are not indifferent to beauty, and establishments with a view of the wasteland are visited less often than those located near the park.
If you are planning to open a small coworking space with several rooms, decide which visitors you are targeting and decorate the interior taking into account the specifics. Naturally, artists and programmers put forward different requirements for the design of a room, just like hand makers and sales agents. In a mini-center of several large rooms or in a separate building, you can arrange several different zones and attract visitors of different professions and tastes.
Organizational matters
- Convert the apartment from residential to or, or rent.
- Make a plan for dividing the area into separate zones.
- Do some office renovations.
- Purchase and install good office equipment.
- Designate places for smoking rooms and relaxation areas, install sofas, armchairs, and hammocks for short breaks. Try to find an area to install a sports equipment, a small kitchen with a cooler, coffee maker, refrigerator, toaster, microwave, dishes, etc.
Basic list of office equipment for coworking spaces:
- Internet (wi-fi);
- computers;
- scanner;
- Printer;
- projector with screen;
- plasma panel;
- magnetic board with markers.
Coworking premises should vary in size, number of workstations, and type of placement.
Try to attract organizers of seminars, trainings and educational courses to your coworking space. Firstly, the revenue from such events is always significant, and secondly, it will be a good advertising move: when advertising their training, etc., the organizers will definitely indicate the location of it, that is, your address. Offer local media to hold conferences, round tables, and interviews on your territory in exchange for preferential rental of your workplaces for freelance correspondents, distributors and other employees. At first, do not be afraid to rent out your premises for a minimum fee; your task is to gain fame and establish yourself from the best side.
The price of a workstation with a computer and a full set of office equipment should be different from using wi-fi and a desk. Give regular customers discount cards for pizza delivery or discounts on taxis.
Staff
The success of any enterprise largely depends on the team. This rule is especially relevant for coworking spaces - friendly staff, comfortable space and working conditions determine the attendance and, as a result, your income. A person working in a coworking space must be passionate, welcoming, coachable, and quick-thinking. It is important that employees know how to work in a team, are sociable and competent.
How profitable is this?
You shouldn't count on a quick payback. Purchasing or renting a large premises, equipment, repairs, interior design - all this is expensive and the payment for workspaces will not be able to cover the costs of several months. Coworking should be perceived as an idea that will bring good profits in the future. If you manage to attract many visitors, become popular and discussed, people will come to you for years, attracting more and more new visitors. You should start organizing a coworking space if you have a specific goal, sufficient funds and a desire to work for a long time.
Coworking is regarded as a certain public space where people come to spend personal time. The purpose of spending time can be different! The potential audience consists of active and creative people who are engaged in the practical implementation of their ideas.
A coworking center provides an opportunity to get a personal workplace, the period of use of which depends on the service package chosen by the user. Among the packages provided, you can choose either one-day packages (a trial option to get acquainted with the service provided) or booking your favorite workplace from one to three months. Thus, the “symbolic” user fee for the services provided becomes the main income from the functioning of the coworking center. Renting a workplace. Coworking monetization model.
Renting a workplace in any coworking center requires some payment. In some cases, such payment is more or less democratic. It all depends on what the potential user wants to see in his workplace. Typically, such payment for one month of renting a workplace ranges from 8 to 12 thousand rubles. In some cases, coworking centers provide the opportunity to pay per minute, which varies from 1.5 to 2 rubles. Income from the per-minute use of a workplace brings a noticeable increase in the first days of the center’s operation. You also have to pay for familiarization! In the future, as the experience of predecessors shows, the most popular are monthly subscriptions with full workplace reservation. Thus, if a coworking center accommodates 150 people, then the monthly income will be from 1,200,000 million to 1,800,000 million rubles. The monthly subscription is taken into account in the calculation. The maximum income was 1,800,000 million rubles. Net monthly profit is calculated based on calculations of rent, utility bills, Internet, goods purchased for the kitchen and salaries to co-owners. Renting a meeting room also increases the level of monetization of an innovative project. The cost of renting such a hall is about 1,500 rubles per hour. If the rental time exceeds 3 hours, then the cost drops by approximately 150 rubles. Thus, we get another source of income generation for the innovative structure of the coworking center. But even this source of generating passive income has costs for the implementation of the rental process itself, namely: the purchase of water, coffee breaks, etc. Start of active work. The first thing you need to take into account is creating a price list with a detailed description of the services you provide. Also, opposite the name of each service, you must indicate the minimum and maximum limits of the coworking center’s pricing policy.
Second. This stage involves close cooperation with lawyers, who, in turn, will help create an application form for renting out space. The practical implementation of various cultural events or training courses would also be appropriate.
Third. There is no need to insist on a fixed rate for renting a workplace. Flexibility in a new business is quite a useful trait, which, in turn, is hinted at by experienced businessmen. They advise adapting this type of business to conduct thematic lectures and training courses.
Fourth. A clear distribution of work areas relative to the area of employment of visitors. Thus, you will be able to provide the opportunity not only to perform work quickly and efficiently in an environment of appropriate conditions, but also allow specialists in the same field to share solutions and various news. This approach can also be regarded as an option for monetizing a new business.
Calculations of income and expenses.
Profitability from the activities of a coworking center.
Renting out space is the main income, and as a result, after deducting the above-mentioned expense items, net profit. Additional events, educational courses, and rental of conference rooms allow you to achieve maximum returns from the activities of the carpeting center, and as a result, increase profits.
Based on the above and what has been said, calculations can be made. The capacity of the coworking center in question is 150 people.
Calculation of income through the purchase of monthly subscriptions for renting a workplace;
150 * 12000 = 1800000 million rubles;
. Calculation of income from renting out a conference room (with an approximate intensity of 10 times a month);
4500 * 10 = 45,000 thousand rubles;
. Income from educational courses and lectures (approximately 50,000 thousand rubles per month).
Thus, the income of the coworking center, subject to the intensity of interested parties and the implementation of activities regarding the implementation of additional programs, amounts to 1,895,000 million rubles.
Costs of a coworking center.
Payment for renting premises depends on many factors and may vary depending on the area of the area and its geographical location - 400,000 thousand rubles;
. Payment for the Internet and related communications (television) - 5,000 thousand rubles;
. Salary to employees - 120,000 thousand rubles;
. Payment of utilities (electricity, water, etc.) - 15,000 thousand rubles;
. Purchase of essential goods (medicines, etc.), as well as tea, coffee, cookies, etc. - 30,000 thousand rubles.
Thus, the net profit of the coworking center is 1,433,000 million rubles.
The payback period for this business is within 8 months. If the target audience in your region is not large enough, then the payback may take 1 year. In big cities, coworking centers pay for themselves in six months.
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Coworking is a relatively young type of business that appeared in 2005. The first coworking center was opened by American freelancer Brad Newberg, who solved the classic problem for a freelancer: always work anywhere (at home or in a cafe) or work in your own office (for which you need to pay good money). Brad combined the best of the two formats, and this is how the first coworking center appeared - something between a cafe, an office and a home. And within a few years the idea spread throughout the world with stunning success. More recently, such a business appeared in Russia.
The service turned out to be quite in demand for small businesses and aspiring startups, especially in large cities (like Moscow and St. Petersburg), where renting an office is far from cheap, and a coworking center provides everything you need to run a business for little money. Here you will find free wi-fi, a separate table and chair for work, the ability to print documents, a room for personal meetings with clients, a relaxation area, a separate kitchen, consultations on accounting and legal issues and much more.
Freelancers immediately felt the benefits of coworking: for a low fee you get everything you need for work, as well as the most important thing that is missing when working at home - the environment. There is no temptation to go to bed or spend extra time in front of the TV. Everyone here is busy. Seeing how others work makes you want to work more efficiently and effectively. There is communication and teamwork here - everything that is sorely lacking when working from home.
The services of such centers are often used by consulting agencies, providers, tourists, pharmaceutical representatives, web developers, and tutors (for example, in foreign languages).
If properly organized, this service will be in constant demand. The following facts speak in favor of opening a coworking space:
- An increase in the number of small businesses in need of cheap rent
- The need for functional platforms for holding meetings, seminars, trainings, presentations
- The growing number of freelancers, people who constantly work one-on-one with a computer, but also need communication.
- Popularization of small business
- State support. There are many examples of opening such a business with financial support from local authorities.
Statistics show that such a business is in the development stage. There are only 24 coworking centers in Moscow, 9 in St. Petersburg, 3 in Yekaterinburg. In other large cities you can find no more than 1-2 similar establishments. The niche is free. While free...
Organizational matters
Opening a coworking center should begin with finding suitable premises. This task does not look as simple as it might seem at first glance. It is necessary to choose a spacious but inexpensive room with an area of 300 sq. m. m. It will be necessary to allocate space to accommodate work areas, separate rooms for seminars and trainings, a conference room, as well as a kitchen, rest room, restroom and staff room.
Example of room layout:
At the same time, you need to be prepared for serious investments. In addition to cosmetic repairs and redevelopment of the premises, you will need to invest in the purchase of furniture, office equipment, media equipment, and household appliances. A lot of money will be spent on the design and advertising of the center. Investments start from RUB 1,000,000, and you can’t expect anything less.
How much can you earn?
Modern coworking spaces make money by renting out space to individuals, as well as by renting out meeting rooms and conference rooms. For example, in the “Free Swimming” coworking center (Moscow), renting space for a freelancer will cost 5,900 rubles/month. This amount includes: work area, Internet, Wi-Fi, connection points (electricity), printing of materials, kitchen , coffee, tea, relaxation area. For small businessmen (startups), rent costs 11,900 rubles/month. and a fixed desk, an office chair, personal drawers, and meeting rooms are added to the list of services. If you pay an additional 3,000 rubles, the entrepreneur’s services will include parking, legal and accounting advice. One day for regular freelancing (work area, internet, kitchen, recreation area) will cost 400 rubles.
There is also such an interesting service as a virtual office, which costs 3,900 rubles/month. The client is provided with a meeting room (10 hours, according to the reserve schedule), a postal address, receiving correspondence, calls and transferring information to the client. Inexpensive and most useful service for a small company.
The calculation of revenue is such that only thirty regular clients - freelancers - will bring the establishment about 180,000 rubles. per month, only 10 small firms - another 119,000 rubles. You should also count on renting a conference room for seminars and trainings, which costs another 30,000 rubles. to the organization's monthly revenue. Total - about 329,000 rubles. per month. The main share of funds from this amount will be spent on renting premises (~100,000 rubles), wages of service personnel (~80,000 rubles), as well as on food and consumables (tea, coffee, office supplies ~40,000 rubles) . As a result, the organizers of the case will earn up to 100,000 rubles.
"Underwater rocks"
Opinions are divided regarding the profitability of coworking spaces in Russia. Some entrepreneurs believe that this is a profitable business, others - a complete failure. Both are right, as there are examples of both successful projects in this area and unsuccessful startups. Most mistakes in organizing such a business are related to the following:
- Poor assessment of business prospects in a particular city. The demand for such a service in Moscow (where there is a shortage of cheap space) and in some provincial town will be completely different. There is no need to even try to open such a business in small and medium-sized cities: no one needs such a service there, and even if it is needed, only a few.
- Flaw in the process of starting a business. If you go through business forums, you can come across reviews about coworking like this one: “This idea didn’t take off in our city, although the idea was interesting. Only craftsmen opened such a business. I once decided to go to them and was horrified: a continuous row of tables measuring 50*50 cm, separated by 30 cm partitions, although the area of the room allowed for large tables,” says user “ATatam” from the biznet.ru forum. Somewhere the design was not completed, somewhere they decided to save unjustifiably - all this affects the general opinion of clients. And the opinion of customers is the most important thing in any business.
- Inexpensive, but at the same time spacious room. High rent can ruin this business at the very beginning (premises in the city center cannot be cheap). A small area will not allow you to properly arrange a room for freelancers, a conference room, a meeting room, a kitchen, etc. Therefore, it is necessary to look for large areas (from 300 sq. m.), with low rent and with good transport accessibility ( the closer to the center, the better). To sum it up, one of the most difficult tasks in a coworking space is finding the right space.
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