How Does a Coworking Space Make Money?
As the number of people working remotely grows, so does the demand for coworking spaces. If you’re thinking about opening a coworking space, there are a number of ways you can make money with it.
From adopting a coworking membership model to offering additional perks, coworking space owners can implement different strategies to monetize their business.
Address a Wider Range of Needs
Traditionally, coworking spaces tend to cater to office workers. Remote workers might rent desks as an alternative to working from home. And small businesses might adopt flexible hybrid models with a rotating team of employees who get together in a coworking space.
But with 65% of home buyers looking for a home office, coworking spaces aren’t always the go-to solution for remote work.
Creating flexible spaces that address the needs of a wide range of industries and employees can create more opportunities for monetization. Here are a few ideas to explore:
- Meeting rooms can attract a diverse customer base, including small businesses, study groups, clubs, and even local non-profits.
- There are currently 3.7 million homeschooled students, and more parents are joining homeschooling groups for support. A meeting space for these groups can be a great way to monetize a coworking space.
- Get more use out of your coworking space outside of traditional business hours by opening it to local dance studios, yoga classes, gaming groups, and more.
- Advertising your coworking space as a facility that businesses can use for training can be a good monetization strategy. Remote work has some benefits, but in-person onboarding can help employees succeed.
Check out this FREE guide for a list of 24 creative ideas that’ll help you make your coworking business stand out!
Consider a Tech Upgrade
A tech upgrade can attract a larger customer base and give you the option to charge for additional services.
A fast and reliable internet connection is a must. Investing in a mesh network can improve Wi-Fi connectivity throughout your facility. You should also look into installing a fiber internet connection for your location. Having access to high-quality internet can be a factor that makes your facility stand out.
Another tech upgrade you should consider is VoIP phones. This technology allows businesses to keep their remote employees connected via cloud-based applications.
And because VoIP phones use the cloud, communications remain available even in case of a phone service outage. It can be a plus for businesses that need access to emergency communications.
You can also monetize your space by renting conference rooms with the latest tech for video or audio conferencing. Products like 360° cameras, conference phones, large screens, smart boards and more can truly enhance video calls and justify renting a coworking space.
And with more businesses turning to digital channels like explainer videos, live streams, and webinars. A room dedicated to creating this type of content can be a plus for attracting new members.
Investing in a few neutral backgrounds and some high-quality video and audio recording equipment will provide customers with everything they need to produce video content that feels professional.
You can also use this room for product photography by adding a few light boxes, reflectors, and lighting kits. Entrepreneurs will be more likely to rent an office if they have access to everything they need to take high-quality product photographs for their eCommerce or brick-and-mortar projects.
A study by Statista says that 38% of Americans listen to podcasts on a monthly basis. As a result, more businesses and content creators are in need of a space where they can record high-quality audio. You can meet this need by upgrading a room with some soundproof panels.
Plus, this upgrade could also attract freelancers who specialize in voice work, an industry that is growing at a fast pace.
Besides investing in the latest tech to build a modern coworking space, think about making your operations more efficient. Using reliable software for managing memberships and bookings can help you save on staffing costs. A platform like CoWello will help you send invoices, track payments and facilitate online scheduling.
Think About Offering Flexible and Customizable Plans
Cost is an important consideration for businesses or individuals looking to rent office space. You can attract more members by offering a flexible solution that will help users get more for their money.
Accommodate varying needs by offering a coworking membership by the hour, day, week, or month. Let customers adjust how many hours they want to rent a space. Consider offering pay-as-you-go plans with a specific number of hours that customers can use on a weekly or monthly basis. Managing flexible coworking memberships is easier with an online platform that automates bookings. With an online calendar, users can book a space in advance and see what’s available in real-time.
Learn more about the habits of your clients by using surveys to collect feedback. Find out more about the kind of membership plans your customers would like to see. So that you can offer more flexible options adapted to their needs.
Businesses typically spend 2 to 20% of their income on rent. Opting for a remote model that relies on working from home and renting coworking spaces can significantly reduce these costs. You can help businesses and professionals save even more by offering discounts.
Discounts can help you get more repeat customers and retain existing members. If you adopt a model that helps users save money if they use your coworking space more, they’ll be more likely to pick your facility over another option and might even prefer renting a desk to working from home.
For instance, you could offer a discounted rate if a customer purchases a coworking membership with a certain number of hours for the month. Maybe you can offer promotional pricing to businesses that rent desks for several employees.
Another idea is to use discounts to monetize spaces that might be difficult to rent. You can offer a lower rate outside of traditional work hours to improve your occupancy rate. If you notice that some spaces remain empty most of the time, consider reducing the rate.
Get Creative With Amenities
Offering a few additional amenities can create more value for members and make your coworking space stand out from the competition.
Members will expect a shared kitchen, but you can turn this into a convincing selling point by upgrading it with the latest appliances or designing a communal space where members will create new connections during lunch.
Ergonomic office furniture is another simple upgrade. Ergonomic chairs and monitors that sit at eye level, and cool, white lighting can go a long way in creating a comfortable and welcoming space.
Your parking space is another amenity you can upgrade by improving accessibility and even installing an EV car charger. With electric vehicle registrations up by 60%, more drivers are ditching fossil fuels, and offering charging options can set you apart as a green leader. Bike racks are another upgrade that can add value.
You can go further by adopting recycling, installing solar panels to power your building, improving insulation, and using smart appliances to reduce the building’s energy consumption. A growing number of businesses are embracing sustainability as a core value, and designing a green coworking space will help members achieve their environmental goals.
There are other amenities you can offer to make your coworking space more appealing, from a lounge area to a small gym. Prioritize amenities that will boost creativity and productivity as well as social connections between members.
From offering flexible membership options to extending the range of the services you offer, there are several opportunities to explore that can help make your coworking space profitable.
With Cowello, you can implement a flexible model that facilitates a self-booking process and automates many aspects of space management. Find out more about how you can use our platform to offer customizable coworking plans that will help your space be profitable.