4 Elements to Consider When Investing in a Coworking Space Business
It has been more than two years since the start of the pandemic, and the remote work trend has continued to evolve, and so have the needs of professionals. Zippia reports that 74% of U.S. companies are using or plan to implement a permanent hybrid work model. While the benefits of remote work continue to be unparalleled in terms of added flexibility, there is a clear value that Zoom cannot satisfy – human interaction.
Remote work limits in-person interaction, which inhibits networking opportunities and, in some cases, decreases productivity. While coworking spaces are not a new concept, there has never been a stronger need for them, making them a prime investment opportunity.
Coworking Space Franchises
Here are four elements to consider when investing in a coworking space franchise:
1. Multiple Revenue Streams
Look for multiple revenue streams in a coworking space franchise. Many brands include cafes, which are open to the public and allow guests to buy a coffee or snack while they work. It’s an added profit center and a nice benefit for guests. Event spaces and professional coaching services are other possible sources of revenue. Simple additions like these benefit guests and can increase profits.
2. Decreased Size, Increased Profits
Part of the gripe that people have with coworking spaces is their massive sizes. With a smaller footprint comes less overhead, which equals a more profitable business. Consider concepts with various build-out options. Successful models will offer enough room for people to work comfortably but won’t include unnecessary space that will raise the cost of operations.
3. A Competitive Edge
When starting a business, one of the first steps is to identify a hole in the market — what is the industry missing, and how will your business fill that need? Once that is identified, consider how various coworking models will perform in your community and examine how these models can set your business apart with unique offerings or branding elements. Ideal models incorporate services that will make your business a complete remote work experience with nice extras like food, networking events, and professional coaching services. Draw members in and make your business stand out from the rest in your area.
4. The Ideal Location
As they say in real estate: location, location, location! Most coworking spaces are found in urban cities, which is exactly where most corporate office spaces already are, essentially defeating the purpose of the coworking space. Focusing on an untapped market allows you to meet people where they live, shop, and run their day-to-day errands. Who wouldn’t want to drive five minutes to a dedicated workspace instead of an hour-plus? When exploring coworking investment opportunities, consider models that will be a welcome addition to your local market and meet the needs of your professional community.
The Need for Coworking Spaces
The Great Resignaton illustrated the need for a different way to work. That trend will only continue in 2023. With 1.08 million workers using coworking spaces, the demand is clear. As the billion-dollar industry continues to grow, look for a coworking space franchise that will meet the need of your community with a competitive edge.