coworking business plan template

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Business Plan Checklist for Your Coworking Space

The coworking industry is becoming a lucrative worldwide phenomenon , and now is the perfect time to break into the business. And as COVID-19 induced lockdowns and social distancing hopefully become a thing of the past, remote workers will be looking to find ways to connect with like-minded individuals now more than ever. A coworking space is a perfect place to do that!

Below, we've put together a step-by-step checklist to help you envision, assemble, and scale your own unique space. Whether you're brand new to the industry or you already know the ropes, you can use these tips to improve efficiency, define your brand and strengthen your space's community.

Looking for our full coworking space business plan?

We offer a comprehensive guide to operating a coworking space. Download it free here .

1. Define Your Vision

Why do you want to open the new space? To make a living? To cross-finance your own startup? To create a national coworking chain? To help your local community?

All are valid answers, but this important first step will help define your entire strategy. You will have to adapt your strategy over time, but your vision should stay intact to make sure your brand is consistent and your members feel valued. Take WeWork for example. Their initial vision — to create spaces for people to come together and innovate — still hasn't changed, even as their business has scaled up .

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2. Solve a Specific Problem

There needs to be a niche for your new coworking business, and thankfully there are plenty of options available. Maybe your area has a high demand for coworking spaces beyond coffee shops and libraries. Maybe the existing spaces in your area are too focused on one type of worker. On the other hand, maybe the other spaces around you are too broadly focused.

You're now in the business of problem-solving, so starting with a focus and expanding from there should be your main goal. For example, Google started out as a simple search engine that used links to determine the importance of individual pages on the internet. Today, they still dominate their niche, but they also offer dozens of services on top of that: Think products and services include mail, calendars, maps, and even phones. To create something bigger, you need to begin with one small thing. Start by analyzing your competitors and conducting a competitive analysis .

3. Define Your Space

Envision your target market's dream coworking environment . Is your space a premium facility for companies or an affordable solution for freelancers? Is your primary audience big business or small teams? Will your facility integrate with your city's business environment through events and partnerships, or will it be an independent space open to anyone?

Answering these questions will help you more easily plan out your membership pricing, amenities, marketing, and location. Being generic doesn’t cut it in the coworking market. Think deeply about how to stand out against the rest and add value to your new space.

4. List Your Business Goals

This is the tough work that will help you the most in the long run. If your space is fully leased, plan out the number of desks you can offer and monetize. Shoot for using 30 to 40 percent of your total space as desk space. Then, use this figure to calculate how much revenue your space can generate, including comparing the number of hot desks against the number of permanent desks.

Start to formulate a financial plan for your vision. Use our very own free financial ramp-up calculator to get started. The next step is to think about goals further down the line. When will you break even? How much revenue will you generate? How much turnover do you expect? Which amenities and cosmetic choices can you afford?

Now think about the investment you'll need. This includes set up costs, like furniture and internet service; opening costs, like a launch event; and ongoing operations, like maintenance and salaries. There are more costs than you might initially imagine, so research more with coworking guru Alex Hillman's online guide .

Additionally, you should define your value proposition, cost structure, revenue streams, customer segments, key channels, and marketing strategy. You'll need to know these answers inside and out.

5. Pick Your Team

Every great business starts with a great team . Consider every side of the plan: a technology expert, an operations manager, and a marketing person are essential, whether you hire them, do those jobs yourself, or outsource to freelancers.

Similarly, you’ll need to look into real estate partners, investors, and other day-to-day employees to round out your core group. A solid team will increase your space's value and pave the way for future growth.

6. Coworking Business Model

What is your unique selling point what value do you bring.

Do you offer lots of space for large teams to rent out, or individual desks to pay for by the hour? Do you offer bare-bones facilities like wifi and a seat at a desk, or cold brew on tap and gym access? You should always aim to offer the work necessities that aren’t available in free spaces like coffee shops: printers, reliable high-speed internet, writing utensils, scanners, and other office supplies. You may want to cater to a specific industry, like offering a space where entrepreneurs can network and bounce ideas off of each other. Are you geared towards providing networking opportunities, or a quiet space for optimal productivity? Or do you cater to bigger clients who want more private meeting spaces or long-term rentals? The answers to all of these questions will begin to define how you sell your space.

Who is your audience?

Are you catering to individuals, businesses, or both? How will you accommodate those who will stop in sporadically versus members who need a steady 9-5 workspace? Will you lease specific desks and offices or just grant people entry as needed? Are there entire floors that companies can rent out, or private meeting spaces for remote teams? Or maybe you don’t exist in a physical place but are more of a club? These parameters will help you think about what type of space you should occupy.

If you’re offering a space primarily for people to meet outside of the usual 9-5, maybe you operate out of a building that is in use only outside of normal business hours, like a restaurant or church. If you’re catering more to the 9-5 crowd, think about how you can utilize your space outside of business hours. Perhaps you’ll host nighttime events like book readings or networking cocktail hours. Maybe you’ll cater to parents by offering childcare or irregular hours.

What are your revenue streams?

Most revenue will come from membership fees, but those can take several forms. You can have members pay monthly or annually, or charge hourly for the use of workspace. You can offer both hot desks, which can be rented out for specific times, and dedicated desks, where a member can leave their things and return at their leisure. A mix of both will ensure you’re filled to maximum capacity. Also consider offering corporate memberships, which can be a great way to get tons of people in the door and allow companies to extend perks to remote teams.

You can also bring in revenue through amenities like a cafe, and build different levels of membership based on these smaller perks. For example, a higher-tier member might get unlimited coffee, free guests, or free access to events.

Another popular revenue stream for coworking space is something called a “virtual office,” in which startups or remote teams pay for a business address where they can send and receive packages, even while working from a different place, like their homes.

What are your marketing strategies?

A good marketing strategy is key to getting your coworking space off the ground. It’s also highly connected with who your audience is. You may run advertisements on local news or in niche magazines that cater to your audience. You should definitely have an attractive website and a strong social media presence. Many places find success in offering perks to existing members for referring friends.

Try and get creative! Can you work with influencers that your audience might follow? Should you have a booth at industry fairs, or offer freebies to those passing by at a local farmers market or on a busy street?

What partnerships can you form?

To get off the ground, many coworking spaces rely on investors. They provide an initial revenue stream and source of capital, plus they provide a networking tool that can be sold to members. If your coworking space hosts a number of entrepreneurs or start-ups, you may want to consider offering to connect them with your investor for a small fee.

Think about smaller-scale partnerships as well, such as different local businesses and entrepreneurs you can collaborate with. Perhaps a local coffee shop would be interested in opening a cafe in your space, or a local restaurant could offer customers special discounts. You could offer members discounts at a nearby gym, or host instructors for fitness classes right in your coworking space.

If you plan on hosting events, begin to compile a shortlist of people who would make a good fit. Are there local entrepreneurs who could give an inspiring talk, or authors who might draw a crowd? Perhaps artists would be interested in having their work on display, or a local library could sponsor a small lending library in your space.

7. Coworking Business Model Template

There are tons of helpful coworking business model canvases out there that are helpful to estimate your startup costs, brainstorm partnerships, cater towards your target audience, and build your business. You can save this checklist, as well, to help you start planning your space.

Target Audience : Who is your dream client? Who do you wish to attract?

Partners: Will you be looking for investors? Who will be your internet service provider? Will you partner with local businesses, or bring in local experts for events?

Added Value: What’s your selling point? A quiet space for remote workers to use instead of a home office? Networking opportunities? Speakers and events?

Key Resources: What do you need to be successful? An entire building or just an open floor? Wifi? Cold brew? Fax machines?

Advertising: How will you spread the word? Through local businesses, social media, billboards, or word of mouth?

Key Activities: What will your space be used for? Workspace for startups? Collaboration for entrepreneurs? Events open to the whole community?

Revenue Streams: Will membership fees be fixed or will there be different plans? Will you recruit investors? How many hot desks versus conference rooms? Will you charge a fee for events?

Customer Segments : What different customers do you hope to attract? Freelancers? Remote workers? Entire companies?

Download this Coworking Space Business Model Canvas today and start planning!

Remember: This is a broad overview. While these are some of the main questions you'll need to address when shaping your business plan, there will be plenty of other things to evaluate more in-depth. We've collected a more extensive overview of how to launch and run a coworking space in 2021 with our updated guide, which you can download for free .

And get excited! Coworking is showing signs of massive growth, and this is your chance to improve the world of business while setting yourself up for success.

Carlo Belloni

Carlo is the Project Manager and SEO Specialist at Kisi.

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Coworking Space Business Plan Template

Written by Dave Lavinsky

Coworking Space Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their coworking space companies.

If you’re unfamiliar with creating a coworking space business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a coworking space business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Coworking Business Plan?

A business plan provides a snapshot of your coworking space business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan for a Coworking Space

If you’re looking to start a coworking space business or grow your existing coworking space company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your coworking space business to improve your chances of success. Your coworking space business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Coworking Space Businesses

With regards to funding, the main sources of funding for a coworking space business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for coworking space companies.

How to Write a Business Plan for a Coworking Space Business

If you want to start a coworking space business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your coworking space business plan.  

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of coworking space business you are running and the status. For example, are you a startup, do you have a coworking space business that you would like to grow, or are you operating a chain of coworking space businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the coworking space industry.
• Discuss the type of coworking space business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of coworking space business you are operating.

For example, you might specialize in one of the following types of coworking space businesses:

• Industry specialized coworking space: This type of coworking space caters to workers and entrepreneurs in a specific industry such as graphic designers, digital media professionals, or writers.
• Business incubator: This type of coworking space is specifically for startups and entrepreneurs to work on new business ventures in a supportive environment.
• Private coworking space: This type of coworking space is usually rented out by a single company.
• Open coworking space: This is the most common type of coworking space, where anyone can rent a desk or a room for a fee.

In addition to explaining the type of coworking space business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of companies served, reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the coworking space industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the coworking space industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your coworking space business plan:

• How big is the coworking space industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your coworking space business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your coworking space business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of coworking space business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.  

Finish Your Coworking Space Business Plan in 1 Day!

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other coworking space businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other places people gather to work, such as conference rooms, libraries, and coffee shops. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of coworking space business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your clients to acquire your services?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a coworking space business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of coworking space company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide food and beverages, hot desks, conference rooms, or fitness rooms?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Place : Place refers to the site of your coworking space company. Document where your company is situated and mention how the site will impact your success. For example, is your coworking space business located in a busy retail district, a business district, or a standalone office? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your coworking space marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your coworking space business, including answering calls, scheduling cleaning services for the coworking space, ordering office supplies, and collecting payments from clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your coworking space business to a new city.  

Management Team

To demonstrate your coworking space business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing coworking space businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a coworking space business or successfully running a small venture incubator.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your coworking space have 20 desks, and will you charge $20 per day/per desk? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your coworking space business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a coworking space business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or testimonials from happy customers.  

Writing a business plan for your coworking space is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert coworking space business plan; download it to PDF to show banks and investors. You will understand the coworking space industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful coworking space business.  

Coworking Space Business Plan FAQs

What is the easiest way to complete my coworking space business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your coworking space business plan.

How Do You Start a Coworking Space Business?

Starting a coworking space business is easy with these 14 steps:

• Choose the Name for Your Coworking Space Business
• Create Your Coworking Space Business Plan
• Choose the Legal Structure for Your Coworking Space Business
• Secure Startup Funding for Coworking Space Business (If Needed)
• Secure a Location for Your Business
• Register Your Coworking Space Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Coworking Space Business
• Buy or Lease the Right Coworking Space Business Equipment
• Develop Your Coworking Space Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Coworking Space Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Coworking Space business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business planning consultant can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

Coworking Space Business Plan Template

Written by Dave Lavinsky

Coworking Space Business Plan

You’ve come to the right place to create your Coworking Space business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Coworking Space companies.

Below is a template to help you create each section of your Coworking Space business plan.

Executive Summary

Business overview.

Work Together is a new coworking space located in Las Vegas, Nevada. The space will provide a comfortable and clean setting for professionals of all industries to work in. Professionals who are interested in renting our offices can rent a private office, conference room, or a shared space depending on their needs. They can also rent offices by the day or at a monthly rate. No matter the type of office they rent or the length of their lease, all of our clients are guaranteed a clean, respectful, and professional setting for them to work in.

Work Together is led and founded by Dustin James. Dustin has been a commercial broker for ten years, and has seen an increasing demand in flexible coworking spaces. Since this is an increasing need in a world that is offering more remote and flexible working options, Dustin has decided to specialize in leasing coworking spaces to meet the working needs of the professionals and entrepreneurs of the Las Vegas area.

Product Offering

Work Together provides several offices for professionals to work in. Clients who are interested in renting our offices, can rent private offices, conference rooms, or shared spaces. They can also rent these spaces at a daily rate or monthly rate, depending on their needs.

Customer Focus

The clients of Work Together are typically business owners, investors, business executives, and realtors seeking flexible work spaces. Some clients will just need space for themselves, while others will need space for a small team of up to 15 people. Work Together will offer a variety of office space options to satisfy this diverse demographic.

Management Team

Work Together is led and founded by Dustin James. Dustin has been a commercial broker for ten years, and has seen an increasing demand in flexible coworking spaces. Since this is an increasing need in a world that is offering more remote and flexible working options, Dustin has decided to specialize in leasing coworking spaces to meet the working needs of the professionals and entrepreneurs of the Las Vegas area. His experience in the real estate industry and his connections to local leaders will ensure Work Together’s success.

Success Factors

Work Together will be able to achieve success by offering the following competitive advantages:

• Location: Work Together’s location is near the center of town and is convenient to access for all commuters and nearby residents. It’s visible from the street with many working professionals walking to and from work on a daily basis, giving passersby a direct look at our offices.
• Client-oriented service: Work Together will have a full-time assistant to primarily keep in contact with clients and answer their everyday questions.
• Management: Dustin has been extremely successful working in the real estate sector and will be able to use his previous experience to better assist his clients. His unique qualifications will serve customers in a much more sophisticated manner than Work Together’s competitors.
• Relationships: Having lived in the community for 25 years, Dustin knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to the community in order to build up a list of loyal and satisfied clients.

Financial Highlights

Work Together is currently seeking $500,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, and working capital. Specifically, these funds will be used as follows:

• Office Design/Build: $200,000
• Marketing and Advertising: $50,000
• Inventory and Supplies: $50,000
• Three Months Of Overhead Expenses (Rent, Salaries, Utilities): $100,000
• Working Capital: $100,000

The following graph outlines the pro forma financial projections for Work Together.

Company Overview

Who is work together.

  Work Together is led and founded by Dustin James. Dustin has been a commercial broker for ten years, and has seen an increasing demand in flexible coworking spaces. Since this is an increasing need in a world that is offering more remote and flexible working options, Dustin has decided to specialize in leasing coworking spaces to meet the working needs of the professionals and entrepreneurs of the Las Vegas area.

Work Together History

Dustin incorporated Work Together as an S-Corporation on May 1st, 2023. The company is currently being run out of Dustin’s home office but will move to a commercial location once the lease has been finalized. Dustin has also identified several office locations to lease and turn into coworking spaces.

Since incorporation, Work Together has achieved the following milestones:

• Found a location for the main office and signed a letter of intent to lease it.
• Developed the company’s branding image, social media, and website.
• Began recruiting key staff.

Work Together Services

Industry analysis.

The evolution of the coworking space concept has grown exponentially over the past ten years. According to Mordor Intelligence, over the next five years, the coworking space industry will grow at a CAGR of 11%. Several factors will contribute to this growth, as industry reports suggest:

• Higher costs associated with land acquisition and building
• Higher costs for individual office build-outs
• Higher costs for building materials overall
• Increased demand for “team or group community spaces”
• Increased purpose in resource “sustainability”
• Increased goal to minimize expenditures across the board

At the same time, as noted by Work Together, the coworking space will need to innovate more spatial designs and layouts for teams or groups that require collaboration. The team or group concept is now dominating the business world and it is anticipated that it will continue to do so for many years to come.

Customer Analysis

Demographic profile of target market.

The clients of Work Together are typically business owners, investors, business executives, and realtors seeking flexible work spaces in the Las Vegas area. Some clients will just need space for themselves, while others will need space for a small team of up to 15 people. Work Together will offer a variety of office space options to satisfy this diverse demographic.

The demographics of Las Vegas, Nevada are as follows:

Customer Segmentation

Work Together will primarily target the following customer profiles:

• Entrepreneurs
• Remote workers
• Small teams and companies

Competitive Analysis

Direct and indirect competitors.

Work Together will face competition from other companies with similar business profiles. A description of each competitor company is below.

King & Hartfield Group

King & Hartfield is a commercial broker that designs coworking spaces for small and large organizations. These rentals are on an annual basis, and they rarely allow for monthly or temporary leases. Since many professionals and teams need accommodations that are more flexible than this, we expect many local professionals to seek out our more flexible lease options.

Clarkson Coworking Connections

Clarkson provides temporary coworking offices for professionals who only need to rent offices for a few days or weeks at a time. They are specifically designed for entrepreneurs, artists, and others who only need a private space for temporary projects. Since Clarkson Coworking Connections does not offer more permanent services, many professionals and teams will seek out our offices for monthly or annual rentals.

Moss & Associates

This company has been in existence for five years and has created a short list of successful coworking space build outs. The company does not design or build out space for more than six people, working from the platform that too many people in community spaces are not beneficial to their clients. Given this limit, Work Together is positioned to succeed in the larger projects and teams that need coworking accommodations.

Competitive Advantage

Work Together offers several advantages over its competition. Those advantages are:

Marketing Plan

Brand & value proposition.

Work Together will offer the unique value proposition to its clientele:

• Quiet and clean office spaces
• Affordable daily and monthly rates
• Client-focused services, where the company’s interests are aligned with the customer
• Service built on long-term relationships and personal attention

Promotions Strategy

The promotions strategy for Work Together are as follows:

Social Media

Dustin James will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.

Work Together will develop a professional website that showcases pictures of the office spaces we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Billboard Advertising

We will drive attention toward Work Together by leasing a billboard alongside major highways. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of individuals who are in need of flexible working options.

Publications

The company will also invest in advertising in selected local and national publications such as professional magazines, newspapers, and other publications to build brand awareness and draw in new customers.

Work Together will charge moderate rates for its coworking spaces so clients feel they are getting a great value when renting out our offices.

Operations Plan

The following will be the operations plan for Work Together. Operation Functions:

• Dustin James will be the President of Work Together. He will oversee the general operations of the organization, rent out offices to clients, and hire and train all staff. Over the next several months, Dustin will focus on hiring the following staff:
• A full time Administrative Assistant who will manage the company website and listings and assist clients with their questions and concerns.
• A Director of Marketing who will run and manage all marketing and advertising efforts.
• Janitorial staff to ensure that the offices are in clean and perfect condition every day.

Milestones:

Work Together aims to achieve the following goals in the next six months.

• 6/1/202X – Finalize lease agreement
• 7/1/202X – Design and Build Out Underway
• 8/1/202X – Design and Build Out Completed
• 9/1/202X – Hire and Train Staff
• 10/1/202X – Grand Opening
• 11/1/202X – Reach Break-Even

Financial Plan

Key revenue & costs.

The key revenues for Work Together will come from charging clients for the offices they rent from us.

The major cost drivers include labor expenses, cleaning expenses, rent, utilities, supplies, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.

• Number of clients per month:
• Year 5: 100
• Annual lease: $150,000

Financial Projections

Income statement, balance sheet, cash flow statement, coworking space business plan faqs, what is a coworking space business plan.

A coworking space business plan is a plan to start and/or grow your coworking space business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Coworking Space business plan using our Coworking Space Business Plan Template here .

What are the Main Types of Coworking Space Businesses?

There are a number of different kinds of coworking space businesses , some examples include: Industry specialized coworking space, Business incubator, Private coworking space, and Open coworking space.

How Do You Get Funding for Your Coworking Space Business Plan?

Coworking Space businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Coworking Space Business?

Starting a coworking space business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Coworking Space Business Plan - The first step in starting a business is to create a detailed coworking space business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your coworking space business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your coworking space business is in compliance with local laws.

3. Register Your Coworking Space Business - Once you have chosen a legal structure, the next step is to register your coworking space business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your coworking space business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Coworking Space Equipment & Supplies - In order to start your coworking space business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your coworking space business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

How to Write a Winning Coworking Business Plan

So often we see aspiring coworking owners and operators looking to start their business without a good understanding of the coworking business model or how their space is going to reach and maintain profitability.

Creating a business plan before you go on the journey of starting a coworking space is the best way to map out your business strategy and how you intend on making money as a business.

A well-crafted business plan can help guide decision making and give you the confidence you need to succeed. Of course plans can always change, but having a strong starting point is critical to success. 

In this guide, we’ll go through what a coworking business plan is, why you need one, and how to create a plan that covers all your bases. By the end of this article, you’ll have everything you need to be successful in crafting a comprehensive business plan.

What is a coworking business plan?

A coworking business plan is a document that outlines exactly how you will start your coworking space and create a sustainable and profitable business. If you are applying for a loan or looking to receive funding, then a business plan is not just a formality, it’s a necessity. 

Even if you aren’t looking for funding , a business plan is a good way of getting your thoughts together and making sure you have a viable business long before opening your doors or securing your location.

Benefits of a well-crafted coworking business plan

In short, having a business plan for your coworking space gives you a greater chance of overall success. Creating a business plan before opening your coworking space is needed to:

• Get a loan or receive funding
• Guide short-term and long-term strategy
• Help you make important business decisions

Here is another way of looking at it. Let’s say Steve wants to start a coworking space. He finds a property to rent in his area and starts building out the space. He looks at some of the other coworking spaces in the area and uses it to inform what he offers and how he prices it. He opens his doors a year later and…crickets. 

Because Steve didn’t have a business plan in place, he did not consider:

• Who he is targeting
• Whether this location is a good right fit for his market
• If the products he is offering are interesting to his target audience
• How he will acquire his first members
• If the cost of his services are be enough to be profitable on a monthly, quarterly, or annual basis

It may feel like having a business plan isn’t necessary, especially for small or rural spaces , but as you can see, it’s easy to get off track and make the wrong decisions without a solid plan of action in place.

You don’t just need a plan when starting a business however. You’ll also want to consider creating a business plan when you are looking to grow or expand your coworking business , as your business needs may change slightly from when you first opened your space.

What are the components of a business plan for a coworking space business?

Now that you understand the importance of having a strong business plan in place, let’s take a look at the components that make up the best coworking business plans.

Business plans are generally pretty standard, regardless of the industry. The typical components are:

• Executive Summary: summary of the document in its entirety
• Company Description: description of your company including the mission statement and objectives
• Market Analysis: write-up of the market, both local and more broadly
• Competitive Analysis: deep dive into your competitors, both local and more broadly
• Description of Management and Organization: outline your team and how the organization will operate together
• Breakdown of your Products and Services: description of what you will be selling
• Marketing and Sales Strategy: how you plan to market your space and acquire customers
• Financial Projections: a breakdown of your finances and your path to profitability
• Fundraising Strategy/Sources: how you will fund your business

Each section is roughly 1-3 pages long (remember, more does not necessarily equal better). When writing your plan, optimize for clarity and completeness, while still being concise.  This article from Harvard Business Review is an excellent guide to creating a general business plan that can be applied to many different industries. Let’s take a look at each section below and how it relates specifically to coworking.

How to write a coworking business plan

Below we’ll break down each aspect of a business plan and how it applies specifically to your coworking space.

1. Executive Summary

The executive summary is a one-page overview that summarizes your entire business plan at a high level. It should cover who you are, the business you’ll be creating, how you’ll make money, and all other elements of the plan at large. 

Focus on creating impactful sections across the board, and then come back to your executive summary at the end. Much like an introductory paragraph of an essay, it will be easier to write an executive summary at the very end.

2. Company Description

Think of your company description as the “About” page of your business plan. Here, you’ll describe your:

Mission Statement

Why are you starting your coworking space? What do you hope your space will be able to achieve in the broader community? Consider your purpose for creating the space and weave it into your mission statement.

For Jason Jet, Founder at Grindhaus Studios , his mission is to give artists the tools and access they need to be able to scale what they do in an economical way. This guides how he makes all major decisions for his business. 

If you’re a brand new space, the history of your company may cover your personal resume and the skills you’ve acquired that will help you be successful in your role as a coworking space owner and operator. 

If you’re expanding your business, then the history will cover the history of your business up to that point, including all major milestones and successes.

Consider this section an opportunity to build the confidence needed to be successful in your business.

The biggest difference between your mission statement and your objectives is: your mission statement maps out why you do what you do, and the objectives map out what you hope to accomplish on a more tactical level.

Let’s take Jason as an example. If his mission statement is to give artists the tools they need to be successful, then his objective would be to create the number one coworking space for musical artists in the United States.

Overall, keep your company description clear and concise, and don’t get bogged down in the details. The mission statement could be two or three lines, and the history and objectives can easily be addressed through bullet points or brief paragraphs.

3. Market Analysis

Your market analysis will outline key facts and findings about the coworking market you’ll be playing in, including the local market and the coworking sector more broadly. 

This is a very important step in creating your coworking business strategy, and something that you will want to do regardless of if you are creating a business plan or not. Here are some tips for completing a thorough market analysis of the coworking market:

• Look for reports from reputable sources in the industry, such as the Deskmag annual Global Coworking survey , to get important facts and figures related to the industry
• Find communities online, like the We Run Flex community , where people are discussing coworking trends and challenges on an individual level
• Talk to operators and gauge their experience and perspective on the industry to inform your findings

Some important elements to talk about are the growth of the market, current overall trends, and your target customer and how you came to that conclusion.

For example, based on your market analysis, you found that remote workers are making up 20% of coworking space occupants with that number expected to increase. Therefore, you intend to target your coworking space towards remote workers in your area.

Another tip for this section (and your business plan overall) – support all facts and findings with credible sources. If ever a question on where a number comes from pops up, be sure you are able to back it up. 

4. Competitive Analysis

The competitive analysis of your business plan breaks down the competitors in your market. You’ll want to focus specifically on coworking spaces and flexible workspaces in the area where your business will be located, as well as broader competitors that may be a potential threat.

Let’s say Georgia is opening a coworking space in her home town of Vancouver. In her competitive analysis, she’ll want to mention all of the coworking spaces in Vancouver and how she will differentiate herself, as well as large coworking brands that are expected to move into Vancouver in the near future.

Your competitive analysis is ultimately about mapping out how exactly you will win in comparison to the spaces you’re going up against. 

It’s worth mentioning that many coworking space owners and operators don’t like to think of themselves as having “competitors”. It is true that collaboration can (and does) exist in the coworking sector. However, understanding the other coworking spaces in your area is critical to understanding the viability of your business and should not be overlooked.

5. Description of Management and Organization

The description of management and organization section is an opportunity to describe the team of people you will have working with you, with a focus on their credibility and why they will help you be successful.

For many just starting off in the world of coworking, they may be a team of one or two. If that is the case, it’s worth mentioning how you will ensure success in your space in the absence of a larger team.

This could be a good opportunity to mention the coworking technology you will use to help you streamline operations and manage your space. Optix coworking software helps reduce overhead and take care of many of the day-to-day operations so that you’re able to operate a leaner team.

Integrating with an automated access control system like Kisi means you could have an even smaller team overall. This section would be a great opportunity to expand into these details, especially if you plan on operating as a small organization.

6. Breakdown of Your Products and Services

In your Products and Services breakdown, you’ll want to describe the products or services you’ll be offering in your space. For coworking businesses, this may look like:

• The core products you’ll offer ( hot desking , drop-ins, private offices, virtual offices)
• Other additional services ( childcare , marketplace, etc.)
• Amenities you’ll offer in your coworking space
• Opportunity for after hour event rentals or events in your coworking space

Finding the right mix of products to drive profitability in your space can be a challenge for new operators. We always recommend approaching it from a point of experimentation, starting with some kind of offering, and iterating on it from there. 

We also have a comprehensive guide to coworking membership plans you can offer in your space if you’re looking for inspiration on what kinds of plans to offer and how to price them. All of this will be helpful in determining the breakdown of your products and services in your business plan.

7. Marketing and Sales Plan

Investors want to know you have a plan to promote your business. This section should outline the marketing channels you’ll plan to use and give a high-level overview of your overall customer acquisition strategy.

Marketing your space is a beast in and of itself, with a lot of pieces to figure out. We wrote a comprehensive guide to marketing your coworking space that includes 23 marketing ideas for you to refer to. Use this as a starting point.

Keep in mind that your marketing strategy should be centered around your customer – who they are, what messaging will resonate with them, and where you can reach them online and in-person. With your customer at the center of the experience, you won’t go wrong. 

8. Financial Projections

Create a clear and accurate picture as to how much revenue you think you will be able to generate in your first years of business. The reality is, an investor will want to see opportunities for growth with your coworking business , so make sure your numbers are increasing, while remaining realistic.

Revenue projections is an imperfect science, but there are good places to start. The Coworking Growth Calculator by Coworking Resources can help you in creating some realistic financial projections, while giving you a better idea as to how much you can expect to make from your space.

9. Fundraising Strategy/Sources

Finally, the last section of your business plan is dedicated to how you will fund your coworking space. 

If you have received any funding up to this point, you’ll need to disclose the information for transparency. If you are seeking funding, use this section as an opportunity to outline your strategy including how much you are seeking.

A business plan can be a powerful tool in growing a successful coworking space. However, they will only get you so far. This article does a great job at outlining the pros and cons of business plans if you’re curious on what your plan can (and can’t) do for you. 

Remember, the success of your business will ultimately come down to the execution and implementation of your plan. Don’t treat your business plan like an end-all be-all. We’ve seen a wide variety of clients succeed after changing their plan significantly. Execution is the name of the game when it comes to growing a successful business, and it’s best not to lose sight of this.

Tips for writing a business plan for a coworking space

Ready to get started with crafting the perfect business plan? Follow these tips to ensure you create a cohesive plan for your coworking space from start to finish.

1. Always start with your research

The research you do around the market and your competitors should be the basis of your entire business strategy. You can’t know where to open and who to target without understanding the market first.

Be sure to answer some or all of these questions before beginning your business plan.

Market Research:

• What is the size of the market?
• What is the growth trajectory?
• What are trends in the industry?
• What is the primary demographic that it serves?

Competitor Research:

• Who are your direct competitors?
• How big are they (number of members, locations and revenue)?
• Who do they serve?
• What is their messaging and positioning?
• How do they differentiate themselves?

There are many ways to go about conducting research, as we discussed above. Coworking Resources also has a comprehensive guide on how to conduct a competitive analysis specifically in the coworking industry that serves as a great reference if you’re looking for a framework to start off with. 

2. Crowdsource knowledge from the community

The wonderful thing about the coworking community is how willing people are to share their knowledge with one another.

If you’re feeling lost on where to start with your business plan, consider reaching out to a coworking operator who has opened a successful space in the past. This can give you a sense of how to approach the project.

You can also look at other successful coworking businesses and take inspiration from them as to their:

• Business model
• Marketing tactics
• Products and services

Every space is different, but gathering insight from other coworking spaces that have been successful can be a great place to start.

3. Think about who is receiving the business plan and what is important to them

As you go through the process of creating a business plan, you may find yourself becoming unfocused and unsure how to edit your information.

Put yourself in the shoes of who is going to be receiving your plan. Who are they? What do they care about? What information are they hoping to receive from your document?

Use this to help tailor your coworking business plan to fit their specific needs.

Pay special attention to the things that are going to drive business results including:

• Market research (is there room in the market to be successful)
• Competitor research (how saturated is the space and how will you differentiate yourself)
• Products and services (what is your business model and how will it generate revenue)
• Financial projections (is your business able to grow and scale over time)

Read your entire business plan from start to finish through the eyes of who it is intended for before submitting it.

4. Be conservative with your numbers

It’s easy to get excited with your numbers. You need to show that your business is going to succeed and you want the numbers to back it up.

The problem with overestimating these numbers is that it can set you up for a tremendous amount of stress later on if your business fails to meet expectations.

It’s best practice when creating a business plan to always be conservative with your numbers and remain realistic in your expectations. This includes:

• Financial forecasts
• Market size

This article outlines ten common mistakes people make when creating a business plan, including being unrealistic with numbers and forecasts.

It’s always better to underpromise and overdeliver rather than the opposite.

5. Set measurable objectives

Goals and objectives are an integral part of any business. Throughout your business plan, you will want to make sure you are creating clear KPIs and objectives to drive your business forward.

One way of creating measurable objectives is by following the SMART goal framework. SMART goals are goals that are:

• Specific (narrow enough to be achieved)
• Measurable (quantitative)
• Attainable (realistic in the given time frame)
• Relevant (furthers your overall business goals)
• Time-based (can be measured in an amount of time)

Here’s how to apply the SMART goal framework to your coworking business plan.

• Marketing Objective: Acquire 50 new hot desking users in the first 6 months
• Management Objective: Hire a part time community manager in the first 60 days of opening

Measurable goals can help move your business forward and ensure you’re staying on track to achieve them.

Plan for success with your coworking business

At the end of the day, a plan will only get you so far. Focus on executing on the plan and remaining flexible in order to ensure you’re giving yourself the greatest opportunity to succeed.

Looking to start a coworking business? Don’t miss out on these 15 essential costs of starting a coworking space. Want to learn more about Optix and how it can help you start your coworking business? Connect with a member of our team today.

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Here is a free business plan sample for a coworking space.

Are you considering launching a coworking space and seeking guidance on how to structure your business plan?

In the content that follows, we will present you with a comprehensive sample business plan tailored for a coworking space.

Creating a solid business plan is crucial for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to carve out your niche in the competitive world of shared workspaces.

To craft a compelling plan with ease and precision, you're invited to utilize our coworking space business plan template. Additionally, our team of experts is available to review and refine your plan at no extra cost.

How to draft a great business plan for your coworking space?

A good business plan for a coworking space must reflect the unique aspects of this type of business.

To start, it is crucial to provide a comprehensive overview of the coworking industry. This includes offering up-to-date statistics and pinpointing emerging trends in the coworking sector, as illustrated in our coworking space business plan template .

Then, you need to articulate your business concept effectively. This encompasses your vision, identifying your target market (such as freelancers, startups, remote workers, or small businesses), and the distinctive features of your coworking space (modern design, networking opportunities, niche focus, etc.).

The subsequent section should delve into market analysis. This requires a thorough understanding of local demand, the competitive landscape, and the preferences of potential members.

For a coworking space, particular emphasis should be placed on the services and amenities you plan to provide. Detail the variety of workspaces - open desks, private offices, meeting rooms - and explain how they cater to the needs and work styles of your target clientele.

The operational plan is equally important. It should outline the location of your coworking space, the layout of the work and communal areas, technology infrastructure, and the management of day-to-day operations.

For a coworking space, it is vital to highlight the quality of the work environment, the robustness of the IT infrastructure, and the community-building activities.

Next, tackle your marketing and sales strategy. How will you draw in and keep members? Consider promotional tactics, membership benefits, and additional services (like workshops, events, or consultancy).

Online strategies, such as a professional website or an active social media presence, are also crucial in the digital age.

The financial framework is another fundamental component. This includes the initial investment, revenue projections, operational expenses, and the point at which the business becomes profitable.

In a coworking space, revenue streams can be diverse, so it is essential to plan carefully and have a solid grasp of your financials. For assistance, you can refer to our financial forecast for a coworking space .

Compared to other business plans, a coworking space plan must pay special attention to aspects such as the real estate market, the flexibility of membership plans, and the creation of a strong community culture.

A well-crafted business plan will not only help the entrepreneur to define their vision and strategies but also to attract investors or secure loans.

Lenders and investors are looking for comprehensive market research, realistic financial projections, and a clear understanding of the daily operations of a coworking space.

By presenting a thorough and substantiated plan, you showcase your credibility and dedication to the success of your venture.

To achieve these goals while saving time, you can simply fill out our coworking space business plan template .

A free example of business plan for a coworking space

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a coworking space .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The coworking space industry has seen a surge in popularity, particularly in the wake of changing work patterns.

Recent studies have valued the global coworking space market at approximately 26 billion dollars, with projections indicating continued growth as the gig economy expands and corporations adopt more flexible work arrangements.

In the United States alone, there are over 5,000 coworking spaces, contributing significantly to the economy by providing entrepreneurs, freelancers, and businesses with flexible workspaces.

These statistics underscore the integral role coworking spaces play in today's work environment and their growing economic impact.

The coworking industry is characterized by several key trends that reflect the evolving nature of work.

Hybrid work models are becoming the norm, with a blend of remote and in-office work that supports flexibility and work-life balance. This has led to an increased demand for coworking spaces that offer a professional environment close to home.

There is also a rise in niche coworking spaces catering to specific industries or communities, fostering networking and collaboration among like-minded professionals.

Technology integration is crucial, with high-speed internet and state-of-the-art office equipment becoming standard offerings in coworking spaces.

Additionally, there is a growing emphasis on creating spaces that promote well-being, with ergonomic furniture, natural lighting, and greenery.

Finally, the importance of community building through events, workshops, and social gatherings is a significant trend, as these activities add value to the coworking experience and help retain members.

Success Factors

Several factors contribute to the success of a coworking space.

Location is paramount, as spaces situated in accessible, vibrant neighborhoods are more attractive to potential members.

The design and functionality of the space are also critical, with a need for a variety of work areas, including private offices, open desks, meeting rooms, and lounge areas to cater to different work styles and preferences.

Community engagement is another key element, as fostering a sense of community can differentiate a coworking space and encourage member retention.

Offering flexible membership plans that cater to varying needs, from daily passes to long-term leases, can also be a decisive factor in attracting a diverse range of members.

Lastly, maintaining a high level of customer service and providing members with the resources and support they need to be productive are essential for the long-term success of a coworking space.

The Project

Project presentation.

Our coworking space project is designed to cater to the evolving needs of freelancers, entrepreneurs, and remote workers seeking a professional and collaborative work environment. Strategically located in an urban center with easy access to public transportation, our coworking space will offer a variety of workspaces, including private offices, open desks, meeting rooms, and lounge areas, all equipped with high-speed internet and modern office amenities.

The emphasis will be on creating a dynamic, inspiring, and community-driven atmosphere that fosters networking, productivity, and creativity among its members.

This coworking space aims to become a hub for innovation and collaboration, providing a flexible and cost-effective alternative to traditional office leasing, and supporting the growth and success of its diverse member base.

Value Proposition

The value proposition of our coworking space project is centered around offering a flexible, modern, and community-focused workspace solution. We provide a variety of membership options tailored to the unique needs of individuals and teams, ensuring that our members have access to the resources they need to thrive.

Our commitment to fostering a collaborative environment, coupled with our state-of-the-art facilities, offers a unique blend of productivity and networking opportunities, while also promoting a healthy work-life balance.

We are dedicated to building a diverse and vibrant community where members can connect, share ideas, and grow their businesses, and we aim to empower our members by hosting workshops, events, and mentorship programs.

Our coworking space aspires to be more than just a place to work; it aims to be a catalyst for professional development and a cornerstone of the entrepreneurial ecosystem in the area.

Project Owner

The project owner is an experienced entrepreneur with a passion for fostering business growth and community engagement.

With a background in business development and a keen understanding of the challenges faced by today's workforce, he is committed to creating a coworking space that stands out for its commitment to flexibility, innovation, and community.

Driven by a vision of creating a supportive environment for entrepreneurs and remote workers, he is determined to offer a space that not only meets the practical demands of modern professionals but also nurtures the spirit of collaboration and continuous learning.

His dedication to excellence and his entrepreneurial spirit make him the driving force behind this project, aiming to revolutionize the way people work and connect in a shared space.

The Market Study

Market segments.

The market segments for this coworking space are diverse and cater to various professional needs.

Firstly, there are freelancers and remote workers who seek a structured environment that fosters productivity away from home distractions.

Next, we have startups and small businesses that require flexible office solutions without the commitment and overhead of traditional office leases.

Additionally, the coworking space serves larger corporations looking for satellite offices or temporary project spaces for their teams.

Finally, entrepreneurs and professionals who travel frequently may use the coworking space as a base for their transient work needs.

SWOT Analysis

A SWOT analysis of the coworking space project highlights several key factors.

Strengths include a prime location, a variety of workspace options, state-of-the-art facilities, and a strong community network.

Weaknesses might involve the challenge of differentiating from other coworking spaces and the ongoing costs associated with maintaining cutting-edge amenities.

Opportunities can be found in the growing trend of remote work, the potential for hosting events and workshops, and the ability to offer additional services such as business consulting or networking opportunities.

Threats could encompass economic downturns affecting small businesses and freelancers, as well as the emergence of new competitors in the coworking industry.

Competitor Analysis

Competitor analysis in the coworking industry indicates a competitive landscape with a mix of local and international players.

Direct competitors include other coworking spaces, business incubators, and shared office providers.

These competitors strive to attract a diverse professional clientele by offering various amenities, community events, and membership perks.

Potential competitive advantages for our coworking space include a superior location, a strong emphasis on community building, flexible membership plans, and a robust support system for entrepreneurs and businesses.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a unique position in the market and ensuring member loyalty.

Competitive Advantages

Our coworking space stands out due to its strategic location, flexible and innovative workspace solutions, and a vibrant professional community.

We offer a range of options from hot desks to private offices, catering to the varying needs of our members, all within a modern and inspiring environment.

Moreover, our commitment to fostering a collaborative community through networking events, workshops, and social gatherings creates a unique ecosystem that encourages growth and success for our members.

We pride ourselves on our adaptability to the evolving needs of the workforce and our dedication to providing top-tier services and amenities.

You can also read our articles about: - how to start a coworking space: a complete guide - the customer segments of a coworking space - the competition study for a coworking space

The Strategy

Development plan.

Our three-year development plan for the coworking space is designed to foster a community of innovation and collaboration.

In the first year, we will concentrate on building a strong member base by providing a versatile and inspiring work environment, coupled with networking events and professional development workshops.

The second year will focus on expanding our services, including private offices, dedicated desks, and virtual office packages, as well as enhancing our technological infrastructure to cater to the evolving needs of our members.

In the third year, we aim to establish additional locations in key business districts to create a network of coworking spaces, facilitating greater accessibility and convenience for our members.

Throughout this period, we will remain committed to creating a dynamic and supportive ecosystem for entrepreneurs, freelancers, and businesses, ensuring our coworking space is synonymous with productivity and professional growth.

Business Model Canvas

The Business Model Canvas for our coworking space targets freelancers, startups, and small to medium-sized enterprises seeking flexible and collaborative workspaces.

Our value proposition revolves around providing a professional work environment with high-speed internet, meeting rooms, and networking opportunities, all within a community-driven atmosphere.

We offer memberships through various plans, including hot desks, dedicated desks, and private offices, utilizing our key resources such as our well-designed spaces and community management team.

Key activities include space management, event organization, and community engagement.

Our revenue streams are generated from membership fees, event space rentals, and additional services such as printing and mail handling, while our costs are associated with leasing, space maintenance, and staff salaries.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on building a strong brand presence within the local business community.

We aim to attract members by showcasing the benefits of coworking spaces, such as flexibility, cost-efficiency, and the opportunity for collaboration. Our approach includes targeted digital marketing campaigns, hosting industry events, and offering trial memberships.

We will also establish partnerships with local businesses and entrepreneurial organizations to increase referrals and provide exclusive benefits to our members.

Additionally, we will leverage social media platforms and influencer partnerships to amplify our reach and engage with a wider audience, while emphasizing the unique features and community aspect of our coworking space.

Risk Policy

The risk policy for our coworking space is designed to mitigate risks associated with real estate, market fluctuations, and member retention.

We will adopt flexible lease agreements to adapt to changing market conditions and maintain a diversified member base to reduce dependency on any single industry or client.

Regular member feedback sessions and satisfaction surveys will help us to continuously improve our services and address any concerns promptly. Additionally, we will maintain a conservative financial strategy to manage operational costs effectively.

We will also carry comprehensive insurance to cover liabilities related to property and general business operations. Our priority is to provide a secure and reliable workspace while ensuring the satisfaction and safety of our members.

Why Our Project is Viable

We envision creating a network of coworking spaces that cater to the dynamic needs of modern professionals and businesses.

With our focus on flexibility, community, and professional growth, we are confident in our ability to thrive in the coworking industry.

We are excited about the opportunity to empower individuals and businesses by providing them with the resources and environment they need to succeed.

We are adaptable and ready to evolve with the market to achieve our objectives, and we look forward to the promising future of our coworking space initiative.

You can also read our articles about: - the Business Model Canvas of a coworking space - the marketing strategy for a coworking space

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a coworking space and our financial plan for a coworking space .

Initial expenses for our coworking space include leasing a suitable location, outfitting the space with modern office furniture, high-speed internet, and communication technology, creating comfortable and versatile work areas, investing in security systems, and costs related to brand creation and launching targeted marketing campaigns to attract freelancers, remote workers, and startups.

Our revenue assumptions are based on a thorough analysis of the local demand for flexible workspaces, considering the increasing trend of remote work and the entrepreneurial boom that requires such facilities.

We anticipate progressively increasing membership subscriptions, starting modestly and growing as the awareness and reputation of our coworking space develops.

The projected income statement indicates expected revenues from membership fees, event space rentals, and additional services offered, minus the operating costs (utilities, internet, maintenance), and operating expenses (rent, marketing, salaries, etc.).

This results in a forecasted net profit crucial for evaluating the profitability of our business over time.

The projected balance sheet reflects assets specific to our business, such as office equipment, technology investments, and liabilities including debts and anticipated expenses.

It shows the overall financial health of our coworking space at the end of each period.

Our projected cash flow budget details incoming and outgoing cash flows, allowing us to anticipate our cash needs at any given time. This will help us effectively manage our finances and avoid cash flow problems.

The projected financing plan lists the specific financing sources we plan to use to cover our startup expenses.

The working capital requirement for our coworking space will be closely monitored to ensure we have the necessary liquidity to finance our daily operations, including lease payments, utilities, and salary payments.

The break-even point specific to our project is the level of occupancy or membership needed to cover all our costs, including startup expenses, and start making a profit.

It will indicate when our business will be profitable.

Performance indicators we will track include the occupancy rate of our coworking space, the average revenue per member, the liquidity ratio to assess our ability to cover financial obligations, and the return on investment to measure the effectiveness of our capital invested in the project.

These indicators will help us evaluate the financial health and overall success of our coworking space.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a coworking space .

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Coworking Space Business Plan Essentials

Starting a coworking space can be an incredibly rewarding endeavor, but it’s not without its challenges. Before you take the plunge, it’s essential to have a solid business plan in place. This step-by-step checklist will help you get started.

Click here to download a free business plan template.

1. Define Your Business Model

Think about what kind of coworking space you want to create and what services you’ll offer. Ask yourself:

• What services are you offering? (e.g., hot desking, private offices, meeting rooms, event space)
• Who’s your target market? (e.g., freelancers, startups, remote workers, small businesses)
• What does your pricing model look like? (e.g., membership fees, hourly rates, monthly packages)

These are a few of the components that will make up the foundation of your coworking space business plan. As you learn more about the market and what works for your particular niche, you can revisit it and make updates as needed.

2. Do Your Research

Now that you’ve defined your business model, it’s time to do some research. This step is all about understanding the market for coworking spaces and getting a better sense of the competition. Since some spaces will have different demands in different markets, you need to make sure there is a market need for what you offer.

Additionally, you need to understand your target customers and what they’re looking for in a coworking space. Here are some specific research tasks you should consider.

Market Analysis

First, look at the bigger picture to help understand the overall trends in the coworking industry. Then you can overlay those trends on your local market to get a better sense of what’s happening in your area.

While local trends often follow national trends, there can be significant variation from one city to the next, especially if your city offers something unique that’s appealing to coworking space users.

Competitor Analysis

Once you understand the general trends in the coworking industry, it’s time to take a closer look at your local competition. This will help you know what’s already being offered in your area and where there might be gaps in the market that you can fill.

For example, maybe you’ve noticed that there are no coworking spaces specifically targeting freelancers, but there’s a large population of freelancers nearby. If that’s the case, you could consider catering your space toward that segment of the market.

Customer Analysis

In addition to understanding your competition, it’s also essential to understand your target customers, including their needs, wants, and pain points. One of the best ways to do this is to reach out directly to your target market and ask them about their coworking experiences.

You can do this through surveys, interviews, or focus groups geared toward:

• Needs : These are the basic requirements your target market has for a coworking space. For example, they might need a place to work outside of their home with reliable Wi-Fi and a comfortable chair.
• Wants : These are the things that would make your target market’s coworking experience even better. For example, they might wish for a space close to public transportation with a kitchen where they can make their own food.
• Pain points : These are the things that make your target market’s current coworking experience less than ideal. For example, they might be unhappy with the noise level or the lack of privacy.

By understanding your target market’s needs, wants, and pain points, you’ll be able to create a coworking space that’s tailored to them and meets their specific needs.

3. Assemble Your Team

No business can succeed without a great team in place, and your coworking space is no exception. As you start to put together your team, it’s important to keep your target market in mind. For example, if you’re targeting freelancers, you might want to hire a freelance accountant to help with the financial side of things.

You should also consider the skills and experience of your team members. As another example, if you’re planning to offer coworking memberships to small businesses, you might want to hire someone with experience in business development or sales.

These are all critical questions to answer as you assemble your team. By taking the time to find the right people and put together a strong team, you’ll be setting yourself up for success.

4. Create a Budget

Now that you understand the market and what your target customers are looking for, you can start putting together a budget . This will help you know the estimated costs of starting and running your coworking space. Some of the necessary expenses you should consider include:

• Rent or mortgage

5. Membership Fees

Once you’ve calculated all of your costs, you can decide how much you’ll charge for your space. You’ll need to ensure your prices are high enough to cover your expenses and leave you with a profit, but not so high that people are deterred from joining.

There are different ways you can approach this. You might want to offer different membership levels, such as a basic membership that gives access to the space during business hours or a premium membership that includes access to the area 24/7.

You may also want to consider discounts for longer-term memberships or people who sign up for multiple memberships. For example, you could offer a 10% discount for six-month memberships and a 20% discount for 12-month or more memberships.

Keep in mind that as you add more tiers, you will have more billing and invoices to keep track of. Therefore, you will need a management software that can handle billing and payments seamlessly. No matter how complex your pricing model is, a software like CoWello automates payment collection for you.

6. Marketing

You’ll need to market your coworking space to attract customers and grow your business. The cost will vary depending on the type of marketing and how much you spend. For example, if you plan to do a significant amount of online marketing, you might want to invest in a website and pay for online advertising.

Your marketing efforts will also vary depending on who your target audience is. Start by identifying your ideal customer and then craft your marketing message accordingly. For example, maybe you’ve realized there is a market for coworking spaces that offers services like childcare or pet-sitting. In that case, you want to make sure your marketing and messaging reflect that.

7. Use Technology to Make Your Life Easier

There are a lot of different software programs and apps that can help you run your coworking space more efficiently. For example, you might use an app to manage membership fees and bookings or help with marketing and promotion.

You can also use technology to make it easier for people to find and book your space. For example, you might use coworking space management software like Cowello to help manage bookings and payments.

You might also want to invest in some security cameras and access control systems to help you keep an eye on your space and make sure only members have access.

Starting a coworking space can be a great way to bring people together and create a community. But it’s important to remember that it’s also a business, and you need to treat it as such.

Do your research, create a solid business plan, and price your membership fees correctly. If you do all of these things, you’ll be well on your way to running a successful coworking space.

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How to Create a Business Plan for Your Coworking Space

In this article you will find:

This article is part of the school of coworking course through Archie. Make sure to check out the other articles to learn more about how to start a coworking space business.

1. What is a Business Plan?

Chances are, you have probably heard of a business plan before but in case you’re unfamiliar with what a business plan is, it is a written document that helps a business define who they are and how it will be profitable. 

This management tool is widely recognized as one of the first and most crucial steps in starting a business, especially when seeking investors and financing for your project. 

These documents can quickly become quite hefty due to the sheer amount of information included in them. For the same reason, it can also be rather difficult and even confusing to draft up one of your own from scratch. 

This article will review and explain the key points to include in your coworking space business plan as well as provide templates to help you get started.

Key Components of the Coworking Business Model

• Membership Tiers : Most coworking spaces offer different membership levels, such as hot desks (shared spaces), dedicated desks, and private offices. Pricing varies based on the amenities and exclusivity of these options.
• Event Space Rentals : Many coworking spaces have conference rooms and event spaces that can be rented out for workshops, meetings, or events.

Ancillary Services : Additional revenue streams might include printing services, mail handling, storage solutions, and even in-house cafes or snack bars

2. Why do you need a Business Plan?

Whether you are planning on sharing your business plan with potential investors or if you are writing it for internal purposes, this document is one of the foundational tools for kickstarting your business idea. 

Above all, you can expect to be asked to hand in your business plan anytime you are looking to raise funds for your project. If you don’t have one, raising capital will be nearly impossible as your investors won’t be able to assess the viability of your project and are unlikely to invest in a business without a promise of return on investment. 

A well-written business plan will help you clearly identify your strategy, potential roadblocks and required resources to name a few. Remember that each segment of your coworking space business plan is interdependent on the next and will serve as building blocks for one another.

3. What Goes in a Business Plan?

While there is no official set structure or length for business plans, there are some elements that should always be included. Your plan should provide as much detailed information about your business but you should be careful to keep it concise to avoid confusing or even boring your reader. Your business plan should demonstrate your expertise and dedication to the project. 

Below is an example of a coworking space business plan table of contents: 

Business Plan Table of Contents (Sample)

• Executive Summary 
• Company Description 
• Market Analysis Team and Management 
• Products and Services 
• Marketing Strategy 
• Operations Strategy 
• Financial Plan 

It is important to take note that the information below serves as a guideline for your coworking space business plan and that there is no set length for any given section. Your business plan should reflect your company’s uniqueness and lucrative potential.

4. Your Coworking Space Business Model

The following section of the article will review each point found in the sample table of contents above in detail so let’s jump right into it!

4.1 Executive Summary

This is a high-level overview of your plan. The purpose of including this summary at the beginning of your business plan is to highlight the keys points found in it for your potential investors. This summary should be persuading the reviewers to continue reading further. 

This summary will be the first section of your business plan and shouldn’t go much longer than one page. Additionally, it should be the last section you write since you won’t know what the key points to summarize are before you have written the bulk of your business plan. 

Your executive summary should include: 

• Company overview . What is the company’s mission, goals and vision? 
• The team . Who is involved in the project, and what are their roles? 
• Product and services . What is the company selling and who are you selling to? 
• Marketing strategy . A brief overview of your strategy for reaching your target audience. 
• Financial plan . What is the revenue or revenue projection, how much are investing or looking to fund?

4.2 Company Description

This next section of your coworking business plan is the basis for your entire project. Your company description should clearly inform the reviewers of who you are and what you plan to do. 

This portion of your business plan should provide clear, persuasive answers on what sets you apart from the competition. Identify the uniqueness of your product and services; is your business model solving issues in its industry? What are the strengths of your business? What advantages does it hold? 

The goal of this portion is to convince your potential investors that your business model is a good investment and should include the following points: 

• Business structure : this refers to the type of legal entity your coworking space will fall under. There are different types of structures such as sole proprietorship or partnership, each with their respective benefits. It is extremely important that you are careful with your choice since different structures are subject to different laws on personal liability, taxation, funding, etc. 
• Your industry : you will need to identify which industry your business will be a part of. For example, your coworking business is an industry of its own but if you were drafting up a business plan for a new women’s boutique then the industry would be retail. Mission statement: is a concise explanation of the reason your company exists. In other words, in a sentence, you should be able to provide the “why” behind what your company does. 

WeWork’s  Mission Statement : “Empowering tomorrow’s world at work.” 

• Vision : here you should paint a picture of the impact your company is foreseen to have on the world once it is fully realized. Ultimately, your vision should clarify what your company will bring to the industry. 

WeWork’s Vision : “WeWork was founded in 2010 with the vision to create environments where people and companies come together and do their best work…” 

• Goals : naturally, you also want to provide an overview of what you hope to achieve. You will want to include both short-term and long-term goals. Your short-term goals should be realizable within a year’s time and your long-term goals projections should be attainable within 1 to 5 years.

4.3 Market Analysis

Your business plan will require market research and analysis as well as a competitive analysis. 

The goal of this section is to provide an overview of your industry and target market and define your potential market. 

You will want to collect relevant data on your industry trends and trajectory and your target audience. Your analysis should also reveal your market size and total addressable market . 

You will need to establish a perimeter for your market and research the competition within this perimeter. For example, you could set a 10 miles radius from your location as your perimeter and conduct your market and competitor analysis within this radius. 

A good analysis should provide answers to questions such as: 

• How will your company impact those habits? 
• Why is the selected target market the right choice? 
• How is your company helping them meet their needs? 
• What are the projected future changes in your market? 
• How will you meet the projected changes? 

For the competitive analysis portion, you will want to look at what competitors are doing and why it is working or not. Consider how your competition is approaching the market and identify their strengths and weaknesses to help you visualize how you can do it better. After conducting a competitive analysis, your company’s unique offering should be well-defined. 

Below are some examples of criteria for a coworking space competitor analysis: 

• Design of their space 
• Services offered 
• Price point 

During this time, you will likely want to perform a S.W.O.T. analysis to help you clearly identify the strengths, weaknesses, opportunities, and threats of your company. 

That being said, while a S.W.O.T. analysis is an excellent exercise to conduct you should avoid including it “as is” in your business plan. Instead, try to summarize the main findings of your analysis and incorporate them in your market analysis section.

4.4 Team and Management

This part of your coworking space business plan should include details on who is running the company. 

With an organizational chart, present the internal structure of your company with the respective roles and responsibilities clearly listed. 

This section should effectively communicate how each key management role is contributing to your company’s success. 

You will also have to reiterate the legal structure of your company which you established with your business structure. Is your company a C or an S corporation? Is it a form of a limited partnership, or are you a sole proprietor or limited liability company (LLC)?

4.5 Product and Services

This section is meant to provide a clear outline of the key details of your product or service offerings. You will want to describe each selling point, whether it is a specific product or a general service provided at your company and demonstrate how it benefits the consumer. 

Consider the life cycle of your product or services and future product and services your company will offer and describe how you plan on implementing them.

4.6 Marketing Plan

The overarching goal of your marketing plan is to detail your strategy for attracting and retaining customers. A marketing strategy is ever-evolving and unique to each business. This section of your business plan should reflect this and should include both your current and future approach for marketing your company. 

Things to consider for this section: 

• How is your strategy fitting for the needs of your target market? 
• Will you be using a particular channel more than another to promote your business and why? 
• How much does your product or services cost? 
• What is the reasoning behind the price? 
• How will you put your offerings in front of the desired audience? 
• Where will you be selling your product or services? 
• What is the cost of acquisition and lifetime value of a client? 

Your value proposition is another key element of this section. This summarized statement of why the consumer should buy your product or services refers to the promised value a company vouches to deliver if a consumer chooses to buy what they are selling. 

This statement should provide some insights on the company’s intent, what it stands for, how it operates and why it deserves the consumer’s business. 

Another goal here is to put down on paper how sales will take place in practice. You will use what you’ve learned about marketing and sales again in later sections so it’s important that you thoroughly describe your strategies and include as many tactical details as possible without overcrowding the overall marketing plan.

4.7 Operations Strategy

Operations and logistics refer to the workflow strategies you plan on implementing at your company in order to make your business come to life. This section should assess your company’s needs in regards to the premises and capital goods in order to provide an in-detail plan of your operations including structures related to suppliers and production, the facilities and required equipment, etc.

4.8 Financial Plan

The financial health of your company should be your top priority. Naturally, without financial health, your business will not succeed. Your financial plan should present how you expect your business to thrive financially. 

This section should include financial projections for the upcoming years presented in the form of a financial model. 

5. Coworking Space Business Plan Templates

If you’re looking to dive into the specifics, there are several resources that can help:

• Coworking Space Business Model Canvas : A visual tool that provides an overview of your business strategy, value proposition, and customer segments.
• Coworking Space Business Model PDF : A complete guide into the intricacies of running a coworking space.

Excel Templates : F or those who prefer a hands-on approach, “coworking space business model template excel” resources can help you map out your financial projections and business strategy.

It is also a good idea to use a business model canvas to map out all of your ideas before you start. This will give you an overview of everything you need to include in your business plan.

6. Conclusion

Your coworking space business plan should remain clear and succinct. Keep in mind your audience when writing out your plan. 

If you are looking for funding, you will want to pay extra attention to the financial and marketing aspects of your business plan and include a clear exit strategy with maximum profits for your potential investors. If you are writing a business plan for internal purposes you may want to add a more in-depth description of the marketing strategy and operations. 

You’re now readily equipped to draft a comprehensive and effective business plan for your coworking space 

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The Ultimate Guide to Crafting a Winning Business Plan for Your Coworking Space

Table of contents:.

Business plans are cornerstone documents for any company, as they contain essential details about:

• The target market.
• The main competitors.
• Revenue and cost projections .
• Products, services, marketing strategies, and more.

This means writing down a detailed business plan is vital for both your team and outside investors looking to finance your coworking space. In this article, we’ll go over the essential topics your coworking business plan must cover and give you an outline for structuring the document in a logical way.

First, let’s start with a quick overview of business plans.

Business Plans 101 (High-Level Outline Template)

A business plan is a document describing how you plan to start, grow, and manage a business.

You can think of it as a high-level road map that shows where your business is today, where it will go, and how you plan to get it there.

There are tons of useful resources online on how to write a business plan, so we won’t reinvent the wheel here. You can check out QuickBooks’ guide to writing business plans , which proposes a 10-step structure:

• Executive summary , which is a one-page overview of the business. 
• Company description , which includes things like history, objectives, and mission statement.  
• Market research and potential , which describes your target market, including things like names, demographic info, location, company size (for B2B), and so on. When it comes to naming your coworking space, check out this article on some creative coworking space name ideas .
• Competitive analysis , which identifies other businesses selling similar goods or services to your target market.
• Product or service description , which explains what you’re planning to sell, how it works, and its unique benefits.
• Marketing and sales strategy , which goes over how you plan to get your product or service to your target market and convince them to buy.
• Business financials , which can include a whole host of documents like income statements, balance sheets, cash flow statements, and so on.
• Organization and management , which lays out your organizational structure and key role inside your company.  
• Funding requests, which is an optional element for companies looking to raise funds.
• Appendix for official documents , which can be all sorts of documents useful to potential investors, like patents, certificates, deeds, licenses, and so on.

This outline can be a good starting point for any organization looking to build a business plan. In the next sections, we’ll cover 6 topics that are specific to coworking spaces and should be heavily featured in your business plan .

#1 Target Market and Differentiators

Your coworking business plan should answer two key questions near the start:

• Who’s your target market? For example, some coworking spaces focus on enterprise businesses looking for stable, long-term offices. Others target startups that need a small office and a meeting room but have the potential to expand rapidly. 
• What differentiators are going to attract customers from that market to your space? This typically starts with location . Are you going to be near the city center, with lots of amenities nearby, or in a more quiet and secluded suburban area? If you want more details, we have an entire guide on how to choose the right location for your space. Amenities and price can also be additional differentiators.

#2 Main Coworking Product Mix

Your coworking product mix is made up of the products you sell.

As we said in our article on creating a strong product mix , new coworking spaces should focus on three main products:

• Open spaces
• Private offices
• Meeting rooms

It’s important for your business plan to establish what percentage of the space will be allocated to each product . Additionally, it should also include information about how much you plan to charge for them and why.

For example, desks in open spaces may be available for rent on a pay-as-you-go basis, while private offices should be included in membership plans. Meeting rooms can also be included in membership plans or be available for rent by the hour.

#3 Extra Revenue Generators

The bulk of your revenue typically comes from your main product mix. However, there are also plenty of ways to add extra revenue streams.

For example, you can diversify your regular membership plans and charge more for them based on 24/7 access, for example. Or, you can create virtual memberships for businesses that want to establish a legal presence and get a reliable correspondence address.

You can also consider a host of value-added services to help you generate more revenue like:

• Secure lockers
• Half-day or day passes
• Mailroom services
• Office relocation services 
• Printing and copying services 
• Custom office design, and more

For more details on this topic, check out our article on generating more revenue for your coworking space .

#4 Marketing and Sales Plan

Once you’ve established your revenue generators, it’s time to get into the details of how you plan to get customers through the door. 

Here are some of the key questions you’ll need to answer here:

• Which marketing channels do you plan to use and why? This typically includes a mix of physical and digital touchpoints, like word of mouth, flyers, social media ads, and search engine optimization (SEO).
• How much will it cost for you to attract one customer (CAC)? CACs are highly dependent on the channel, so you’ll need to run a few initial tests before you can answer this one. 
• How much will you earn from one customer over their lifecycle with your brand (CLTV)? You can break this down by customer segments, e.g., freelancers, startups, and enterprise companies. Keeping a pulse on your CLTV will also help you refine your ideal target persona over time.
• How much will you spend on marketing and sales every month? This is usually a pretty straightforward calculation if you have a few months of experience under your belt.

If you’re just getting started and don’t have any experience with marketing and sales, check out our article on the 14 proven strategies for attracting more coworking space members .

#5 Expenses

For most coworking spaces, the biggest recurring expense is the monthly lease (except for operators using management agreements ). 

You also want to include other key costs here, such as:

• Space maintenance
• New purchases (desks, chairs, etc.)

#6 Revenue and Cost Projections

The goal of listing your revenue generators and expenses is to get a good idea of how much revenue you’ll need to cover your costs and turn a profit. 

For instance, say you have $5000 of regular expenses every month. Your projections should show how long it would take for revenue to reach and surpass that number. This is perhaps the most important part of any business plan, especially if you’re looking to attract outside investors.

In general, it’s better to be conservative than to set unrealistically high expectations and fall way below them . It’s also a good idea to factor in some unexpected expenses in your calculations.

For example, if your regular expenses are $5000, you want to reach $5500-6000 of monthly revenue before considering the space profitable on a monthly basis.

This coworking revenue calculator is a useful resource for projecting profits and losses, as well as building charts for investor decks.

Establish and Grow Your Coworking Space with OfficeRnD’s Flex Startup Program

Writing a business plan is only one step in building a successful coworking space. You also need to find the right location, promote your space, and before everything else, choose the right coworking management software . 

To help you out, we created the OfficeRnD Flex Startup program . It’s geared towards aspiring flex and coworking entrepreneurs and offers an attractive 20% annual discount on OfficeRnD Flex’s startup plan .

Apply for the Flex Startup program here.

Asen Stoyanchev

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How to Create a Coworking Space Business Plan

Blog > how to create a coworking space business plan, table of content, introduction:, i. understanding the rise and advantages of coworking spaces, ii. conducting market research and analysis, iii. defining your mission, vision, and value proposition, iv. developing your business model and revenue streams, v. selecting the perfect location and facilities, vi. crafting an effective marketing and sales strategy, vii. streamlining operations and management, viii. financial projections and funding, ix. navigating legal and regulatory requirements, x. mitigating risks and fostering sustainability, xi. building a vibrant coworking community, conclusion:, our other categories.

• Business Plan 101
• Company Valuation
• Pitch Deck Essentials
• Raising Capital
• Startup Guide

Reading Time : 20 Min

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Are you considering venturing into the thriving world of coworking spaces? A well-crafted business plan is the foundation for success. Welcome to Stellar Business Plans , your trusted startup consultant service provider. In this comprehensive guide, we’ll walk you through the process of creating an effective business plan for your coworking space venture. Let’s explore the essential steps and strategies to ensure your coworking space stands out in the competitive market.

Coworking spaces have experienced exponential growth, with a 43% increase in the number of spaces worldwide in the last two years alone. As the modern workforce seeks flexible work arrangements, coworking spaces offer numerous advantages, such as:

Increased Productivity: Studies show that 68% of people experience improved focus in coworking environments. The collaborative atmosphere and the absence of traditional office distractions contribute to enhanced productivity levels.

Enhanced Networking Opportunities: 82% of coworkers report expanding their professional network since joining a coworking space. The diverse community of professionals allows for organic networking, collaborations, and potential business partnerships.

Cost-effectiveness: Coworking spaces can save businesses up to 25% on operational costs compared to traditional office spaces. Shared resources and flexible membership plans provide cost-efficient solutions for businesses of all sizes.

Before diving into your business plan, understanding your target market and competitors is crucial. Conduct thorough market research to:

Identify Your Ideal Members: Determine your target demographic, such as freelancers, startups, remote workers, or specific industries. Consider their unique needs and preferences to tailor your offerings.

Analyze the Demand for Coworking Spaces in Your Chosen Area: Evaluate the local market demand for coworking spaces. Consider factors such as the concentration of businesses, freelancers, remote workers, and the overall economic climate.

Evaluate Competitors’ Offerings and Pricing: Conduct a comprehensive analysis of existing coworking spaces in your target location. Assess their strengths, weaknesses, pricing models, amenities, and marketing strategies.

To differentiate your coworking space and attract members, craft a compelling mission, vision, and value proposition:

Mission Statement: Our mission at Stellar Coworking is to provide an inspiring and collaborative environment that empowers our members to thrive in their professional endeavors. Our passion for fostering innovation and creativity drives our commitment to excellence.

Vision Statement: Our vision is to build a diverse community of innovators, fostering creativity and driving growth in every industry we serve. We aspire to be the go-to destination for professionals seeking a supportive and inspiring coworking ecosystem.

Value Proposition: Stellar Coworking offers a modern and fully-equipped workspace with tailored services to meet the unique needs of our members, enabling them to focus on what truly matters – their success. Our community-driven approach, state-of-the-art facilities, and vibrant events create a dynamic space for collaboration and personal growth.

Choose the right business model and explore additional revenue streams beyond memberships:

Business Model: Opt for a membership-based model with flexible plans to cater to different needs and budgets. Consider offering part-time or virtual memberships to accommodate various work styles.

Revenue Streams: In addition to membership fees, explore other revenue streams to enhance your coworking space’s financial sustainability. These may include:

Event Space Rentals: Offer your space as a venue for corporate events, workshops, seminars, and networking functions.

Meeting Room Bookings: Provide well-equipped meeting rooms for rent on an hourly or daily basis.

Value-Added Services: Consider providing add-on services such as printing and copying facilities, mail handling, virtual office solutions, and administrative support.

Collaborative Partnerships: Form strategic alliances with local businesses, professional associations, and educational institutions to expand your network and generate additional revenue through mutual referrals and collaborative events.

The location and facilities can significantly impact your coworking space’s success:

Location: Choose a convenient and accessible location that aligns with your target market’s needs. Consider proximity to public transportation, major business districts, dining options, and other amenities that appeal to your potential members.

Facilities: Offer essential amenities that enhance productivity, comfort, and convenience for your members. Consider providing:

High-Speed Internet: A reliable and high-speed internet connection is a fundamental requirement for modern professionals.

Comfortable Seating and Workstations: Ergonomic furniture and spacious workstations contribute to a productive and comfortable work environment.

Private Offices: For businesses or individuals requiring more privacy and dedicated workspace, private offices are a valuable offering.

Meeting Rooms: Equipped meeting rooms with audiovisual capabilities are essential for hosting professional meetings and client presentations.

Kitchenette and Refreshment Area: A well-stocked kitchenette with complimentary coffee, tea, and snacks creates a welcoming atmosphere.

Common Areas: Create communal spaces where members can relax, collaborate, and socialize.

Design and Layout: Thoughtful interior design and layout play a significant role in enhancing the overall coworking experience. Consider incorporating vibrant colors, natural lighting, and flexible spaces that encourage interaction and creativity.

To attract potential members and convert leads, create a robust marketing and sales plan:

Marketing Plan: Utilize digital marketing channels, including social media platforms, SEO-optimized content, and email marketing campaigns, to reach your target audience effectively. Share engaging content that showcases your coworking space’s unique features, events, and member success stories.

Branding and Visual Identity: Develop a distinctive brand identity that reflects the ethos of your coworking space. Consistent branding across all marketing collaterals, including website, brochures, and signage, helps build brand recognition.

Website Optimization: Design a user-friendly and visually appealing website that provides essential information about your coworking space, membership plans, facilities, and upcoming events. Incorporate a seamless booking system to enable potential members to schedule tours or sign up for memberships easily.

Content Marketing: Leverage content marketing to establish your authority in the coworking industry. Publish informative blog posts, e-books, and video content that address common challenges faced by professionals and highlight the benefits of coworking.

Social Media Engagement: Engage with your audience through social media platforms. Respond promptly to comments, share member testimonials, and promote upcoming events and promotions.

Email Marketing Campaigns: Build an email list and nurture leads through targeted email campaigns. Send personalized invitations to events, exclusive membership offers, and newsletters with valuable insights.

Referral Programs: Implement a referral program that incentivizes current members to refer new members. Offer rewards such as discounted membership fees or exclusive access to premium amenities for successful referrals.

Collaborative Events: Organize industry-specific workshops, networking events, and webinars that align with your target market’s interests. Collaborate with local businesses or industry experts to host events that add value to your coworking community.

Local Partnerships: Forge partnerships with nearby businesses, co-working spaces, or local organizations to cross-promote services and expand your reach within the community.

Testimonials and Case Studies: Showcase success stories and testimonials from satisfied members. These authentic experiences can help build trust and credibility among potential members.

Efficient operations and management ensure a seamless coworking experience for members:

Organizational Structure: Establish a clear organizational structure, defining roles such as community manager, operations manager, and marketing manager. Each role should be dedicated to fostering member engagement, managing day-to-day operations, and promoting the coworking space.

Staffing and Training: Hire qualified staff and provide comprehensive training to ensure excellent member support. Encourage staff to be proactive in addressing member needs and inquiries promptly.

Member Onboarding Process: Design a streamlined onboarding process to welcome new members and familiarize them with the coworking space’s facilities, policies, and community events.

Membership Management Software: Implement an efficient membership management software system to automate billing, track membership data, and provide members with a self-service portal.

Health and Safety Measures: Prioritize the health and safety of members by adhering to relevant health guidelines and implementing safety protocols. Display health and safety measures prominently to instill confidence among members.

Feedback and Satisfaction Surveys: Regularly collect feedback from members to gauge satisfaction levels and identify areas for improvement. Implement feedback-driven changes to enhance the overall coworking experience.

Prepare realistic financial projections and explore funding options for your coworking space:

Startup Costs: Calculate startup expenses, including real estate, furniture, marketing, staff salaries, and operational costs. Research local market rates to estimate initial investments accurately.

Financial Projections: Create detailed financial projections for the first three to five years of operation. Forecast revenues, expenses, and profits based on membership growth, pricing strategies, and market trends.

Budget Allocation: Allocate financial resources strategically across various areas, such as marketing, facility maintenance, staff training, and community events.

Funding Sources: Consider various funding options to secure the necessary capital for your coworking space:

Personal Savings: Invest personal savings to kickstart your coworking space venture.

Bank Loans: Apply for business loans from banks or financial institutions with favorable terms and interest rates.

Angel Investors: Seek investment from angel investors who align with your vision and can offer expertise and mentorship.

Venture Capital: Approach venture capital firms that specialize in supporting coworking and real estate ventures.

Crowdfunding: Launch a crowdfunding campaign to raise funds from a large pool of potential investors.

Ensure compliance with legal and regulatory obligations:

Legal Entity: Register your coworking space as a legal entity, such as an LLC or corporation, to protect your business and personal assets. Consult legal experts to determine the most suitable legal structure for your venture.

Permits and Licenses: Obtain necessary permits, business licenses, and safety certifications required to operate a coworking space. Comply with zoning regulations and building codes to avoid legal complications.

Insurance Coverage: Secure comprehensive insurance coverage to protect your coworking space from unforeseen events, liability claims, and property damages.

Membership Agreements: Draft clear and comprehensive membership agreements that outline terms, policies, and member responsibilities. Seek legal advice to ensure that the agreements are legally binding and enforceable.

Data Protection and Privacy: Prioritize data protection and privacy by implementing secure data storage systems and adhering to relevant data protection regulations.

Identify and manage potential risks while fostering sustainability:

Risk Assessment: Analyze potential risks, such as market fluctuations, competition, member retention challenges, and economic downturns. Develop contingency plans to address these risks effectively.

Business Continuity Plan: Create a business continuity plan that outlines steps to manage crises and ensure the uninterrupted operation of your coworking space during emergencies.

Sustainability Initiatives: Implement eco-friendly practices to appeal to environmentally conscious members. Consider incorporating energy-efficient lighting, recycling programs, and eco-friendly office supplies.

Green Certifications: Pursue green certifications such as LEED (Leadership in Energy and Environmental Design) to demonstrate your commitment to sustainability and attract environmentally conscious businesses.

Nurturing a supportive community can enhance member satisfaction and retention:

Networking Events: Host regular networking events, workshops, and industry-specific sessions to encourage collaboration and knowledge-sharing among members. Invite industry experts and thought leaders to facilitate engaging discussions.

Social Activities: Organize team-building activities, social gatherings, and themed events to strengthen connections within the community. Celebrate milestones and member achievements to foster a sense of belonging.

Coworking Memberships: Offer various coworking membership options, such as dedicated desks, hot desks, private offices, and virtual memberships, to cater to diverse work preferences and budgets.

Flexible Working Hours: Accommodate members with flexible working hours by offering 24/7 access to your coworking space or extended operating hours.

Member Involvement: Encourage member involvement in shaping the coworking community. Consider establishing a member advisory board to gather feedback and ideas for enhancing the coworking experience.

Online Community Platform: Create an online platform, such as a member portal or a private social network, where members can interact, share insights, and collaborate virtually.

Creating a successful coworking space business plan requires meticulous planning, in-depth research, and a deep understanding of your target market. With Stellar Business Plans as your consultant service provider, you can craft a compelling business strategy that aligns with your vision and attracts a thriving coworking community. Embrace the dynamic coworking industry, and let your Stellar Coworking Space shine as a beacon of productivity, collaboration, and success.

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Updated On : August 11, 2023

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How To Write A Bulletproof Coworking Space Business Plan

October 18, 2022

Adam Hoeksema

Hybrid work models are leaving offices bare all over the world, and the consequent effect on the prices of corporate real estate is leading savvy entrepreneurs to consider new options. Coworking space business models are emerging with a new range of approaches to providing remote workspaces that combine the comfort of the home with the functionality of the office, in a location that’s convenient for everyone. 

Now is a good time to start figuring out how to start such a business, and if you’re serious about it, you’re going to need to do the groundwork. A coworking space business plan is an essential document to start building and will pave the way for you to secure your funding. It’ll also teach you a lot about the industry, the market, and how you’re going to be functioning in relation to both. 

We’re going to show you a template for your very own coworking space business plan design in this article, which can serve as a checklist of all the research and documentation you’ll need to gather to get started. Before we go into that though, let’s look at why this kind of business is becoming so popular. 

Why and How to Start a Coworking Space

With employers shifting to remote and hybrid models, you might think there’s a sudden increase in half-empty office buildings, and to some extent, you’d be right . Office demand is expected to decline significantly, and the majority next generation of companies to start up will certainly be factoring in a smaller physical workspace to their budgets and forecasts. 

However, something still has to be done with all these empty floors, and for some entrepreneurs, this is an appealing prospect. At the worst of times, coworking spaces are less vulnerable to industry shifts, and with office real estate looking like such a good investment right now, this might be the perfect time to jump ahead with learning how to start a coworking space. 

While some companies are pushing for a full return to the office, the workforce is resisting, and it looks like those companies that are earliest to embrace hybrid workspaces are the most likely to take advantage of the new normal. Many people prefer the flexibility and comfort that remote work provides, and many find that their role in the company does not require them to be physically present. 

It’s also becoming more apparent that workers are even more productive when working from home. The combination of these factors results in a powerful demand for new working setups, and as companies necessarily compete to retain their most valuable talent, new workspaces are emerging. 

As hybrid setups look like they will stick around for the long term, entrepreneurs are now making use of coworking spaces to reduce overheads for companies on real estate. 

The benefits come from several angles. Combining the facilities of an office with the comfort of working in a casual environment, companies can rent coworking spaces in cities where they have high numbers of hybrid workers, providing them with a more accessible workplace that requires very little in the way of a commute. 

This allows workers who may have busy homes to get some conducive space without heading all the way into the office. It also allows companies to bridge the gap between office and fully-remote workforces, saving costs on a more dispersed workforce while maintaining productive, shared facilities. 

The applications for share workspaces are numerous, and there are several business models to consider. Before you get onto your business plan, it’s important to figure out which model you’ll be going with, and then how and where you’ll be funding it. Let’s go over that now.

The Coworking Space Business Model 

The different types of business models can be broken down by the scale you plan to be working with. For small operations, you’ve got different options than larger ones, and each comes with its benefits and drawbacks. Here are some approaches you might want to take:

• For small-scale - Using repurposed space is one way to make use of some of those newly-empty buildings. They don’t have to be offices; they can be community buildings like churches or town halls. Partnerships are available in these instances, or you can rent or buy a space specifically.

Splitting the cost between you and another company can further reduce your overheads, and if you can find a complementary business to partner with, this can boost the profits for both. Consultancy firms may benefit from a stream of workers from the same industry sharing a space, and members of the space benefit from the ability to network with one another, too.

• For mid-scale - Empty office spaces are already set up for work; with a little renovation, you can make them into a combined office and coworking space, getting the best of both worlds and creating a functional floor that is relaxed and casual at the same time. Alternatively, you can design a venue for educational programs that companies will happily send their staff to take part in, meanwhile members benefit from the free seminars or lectures. Mid-scale coworking spaces sit in the bracket with the most diverse set of options. You can do a lot of the things in this range that you can’t do with smaller spaces, and you can create a lot of the benefits of a much larger enterprise but at a slightly smaller scale. Further, if you have long-term plans to grow, you’ll be in a position to replicate the successes of this company in other places, which is where large-scale investment will come in.
• Large-scale - Any of the above can be created in number, spread around in different cities, and marketed to companies of all kinds. If you are ambitious and you want to start building a large company (and you can get funding for it), this might be the ultimate goal for your coworking business. Early adopters will benefit from the largest share of the new market .

These are just a handful of directions that you could take for your business, but whichever you choose will need to be attractive enough to funders, which is where your business plan will come in. Before we go over that, let’s recap the standard sources of capital for new ventures.

Source your Funding for your Coworking Space

There are three main sources of funds for new companies, and the source or sources you choose will depend on how much you need, how quickly, and what you’re willing to contribute. 

• Bootstrapping – this is money off your own back. Either from your savings, from your main job, or from maxing out your credit cards, this is one way to take on the full financial responsibility yourself. This is generally a slower process, and only provides capital for smaller ventures (unless you’re quite wealthy), but the perks are significant. Bootstrapping your company allows you to maintain full equity, and therefore full control of the direction of your project. You’re not going to be at the mercy of shareholders, and you won’t have lenders on your back to return the money (credit card companies excluded).
• Banks – Banks are often happy to dish out substantial capital to new and attractive businesses, particularly because they will secure the loan to your private assets. This means that if the company fails, they still get their money back, and that’s one of the significant drawbacks of taking this route. Perks include the speed and the sheer amount of capital they can provide, as well as the fact that you’ll keep your equity. Just remember that you’ll be on the hook, regardless of the financial state of the company.
• Investors – There are numerous types of investors, from pre-seed to seed, through Angel, to Venture Capitalists, and everything in-between. The principle is similar for each of them, and the level you choose will depend on the stage of funding you’re looking for. Essentially investors will be likely to take some share of your company in exchange for capital – the more capital, the higher the share – and the financial risk will be on them. Some investors will have valuable experience in the industry, so you may be able to gain much more from finding the right person, but you will have to appease them as shareholders as the company grows. 

While these are the three main types of funding, it’s worth keeping an eye out for grants for new businesses. It’s a good idea to have an understanding of the amount you’ll be looking for before you get started, but if you’re still not sure how much you’re going to benefit from drawing up a coworking space business plan. 

A Template for your Coworking Space Business Plan

The business plan for most new ventures follows a standard format that can be used as a template. A business plan is much more than just a record of your company docs and data; it’s a comprehensive study into the health and prognosis of your business. 

The pages of a business plan are typically presented in the order described below, however, they don’t need to be completed sequentially, and some may be more supportive to others if researched and completed in a different order. Once it’s done, the document will read as follows:

• Executive Summary – This will be a general overview of the document as it stands. A brief introduction to the company, its mission, and the contents of your coworking space business plan to follow. Obviously, you can’t complete this page until the rest of the document is done, so you’ll likely save this page for last.
• Market analysis – This page is next, and should paint a detailed and accurate picture of where your company belongs in the industry. To complete this section of the document, you’ll need to do your market research thoroughly, and understand who and where your competition is. This page needs to show investors that you understand the coworking space concept, the industry as it is, and its future. It then needs to explain to the reader exactly how you plan to take your share of the market and hold it. This is the page where your ideal customer will be described and backed up by the market data you have gathered in your research phase. This page and its data, when complete, will segue neatly into how your company will meet its market in the next section.
• Company description – Here, you’re going to be describing what you’re offering that directly meets the needs of those ideal customers you’ve identified. Explain your plan of action, and how your approach settles into a niche of its own and does the job better than your competition. The goal of this section is to stand out among the competition, in whichever way you can. Maybe you’ll be cheaper than them, or provide a wider range of services. Whatever it is you do differently needs to be highlighted here and depicted as a selling factor to your customers. 
• Organizational structure – This page will introduce the key players in your company and how the hierarchy is laid out. This is a good place to expand upon some of the elements in the company description and point out how your management or administration talent is going to help you take on the industry.  Where possible, include resumes and photos of your most relevant team, and explain how each individual’s contribution will push your company towards its goals. This page is a brief overview of your top talent, but don’t overdo it with the accolades and enthusiasm. As with everything in this document, you need to be accurate – it’s not a sales pitch.
• Products and services – This page is heavily dependent on the business model you’re choosing. A larger coworking space may have talks, training, consultancy services, etc. These will all need to be listed, along with the price and the way they will be arranged. Membership tiers, discounts, and other key components of the revenue streams you’ll be expecting need to be laid out in detail, and if your space will be selling any products, even )coffee and cookies!) itemize them here with their price.
• Sales and Marketing – Now you’re going to describe the strategies you’ve devised to reach these customers. You’ve laid out your market, and you’ve explained how your company can help them, and now it’s time to describe the bridges you’re going to build to find them and introduce them to your brand. Identify the media channels you will use, describe your sales funnel as it relates to your demographics, and cover touchpoints in as much detail as possible to show that you understand the market well and how to approach it. 
• Financial projections – Now we come to the meat of the document. Many investors will skip to this page early, and for good reason. This page is a testament to how well you know your business. It’s going to act as a litmus test for investors to judge how reliable you are as a partner. Your projections need to be based on real figures, and they need to be honest. If you’re trying to market your company to investors by exaggerating its prospects in the industry, you’re going to make yourself look dishonest or at best incompetent. Detailed and realistic projections come from detailed and realistic financial documents, so these need to be well-researched and presentable on both counts. 

For help with this, at ProjectionHub we have over 70 different industry-specific projection templates including a template just for coworking spaces . Using a professional-grade template can make all the difference to the presentation of your most important data when it comes to appealing to investors or lenders. 

Make use of this template as a checklist that can be used to go through your company research and documentation and form a profile of your project that can guide you into the industry. When completed with care and attention, it will make the difference between acceptance and rejection of any sources of funding you may request. 

A coworking space provides companies and their workers with a middle-ground that takes the benefits of remote work and combines it with the facilities of the office. The great thing about such a space is that it can house multiple companies’ employees, bringing networking opportunities to members, and creating resilience against industry shifts by providing a diversity of bodies. 

Setting up a coworking space business plan should be one of the earliest steps in this venture, as it represents the transitional moment between idea and reality, and solidifies your project with a genuine path to success. 

Forming a business plan shows you exactly how to set up a coworking space, as it involves deep market and financial research, and is as much a process of education as it is of documentation. A detailed plan will display your company in a good light and detail exactly how your investors will get their ROI from supporting you, as well as bring you accurate insights into how to get started.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Coworking Space Business Plan Template [Updated 2024]

Coworking Space Business Plan Template

If you want to start a coworking space business or expand your current coworking space business, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of business plans for coworking spaces.

The following coworking space business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

I. Executive Summary

• Business Overview

[Company Name] was started ten months ago to meet the surging demand for flexible, comfortable and reliable coworking office space. Several businesses in the regional area have been seeking coworking space locations for over a year; however, most are already in use. With this in mind, [Company Name] was formed by [Founder Name], [Founder Name] and [Founder Name] to meet these specific office space needs.

[Founder Name] and [Founder Name], licensed commercial real estate brokers, began to hear the same questions repeatedly from their corporate clients during this past year: Should we take a 5-year lease on office space in a building? Should we take the risk of buying land and building our offices? Do any of our employees need an isolated workspace? Will groups or teams collaborate frequently on various projects? Will projects be analyzed by individuals or research and development teams? Answers to these questions have highlighted the critical need for the plan and leasing program we’ve developed: flexible, comfortable and reliable coworking space for everyone.

The changing nature of our economy today calls for companies to consider the use of assets wisely as they determine the type of office building or workspace that best suits their needs. One of the largest overhead costs is that of office space, particularly when land must be purchased and a building raised. Our clients recognize that their assets can be put to better use in other areas, such as innovation, technology and company growth overall. With this understanding, [Company Name] has been recently established as the new leader of coworking spaces that actually work.

Within the next 5 years, we fully anticipate perfecting and polishing our working model, adding amenities as we listen to client needs. At that time, our long-term plans include creating a franchise opportunity for buyers across the US to adopt the consummate coworking space business model found in [Company Name].

• Services & Products Offered

At [Company Name] our process begins with finding the perfect location for our clients. We then secure the lease or oversee the purchase of the workspace. Our next steps include: surveying employees (to determine their needs/wants), building spaces to maximize comfort, allotting community spaces for team collaboration, and building out fixtures, furnishings and any office amenities, such as a kitchen or exercise room.

In a recent study by Grand Canyon University, almost 84% of people who are situated in coworking spaces report a very high degree of satisfaction with their working conditions when their employer has addressed their needs. This is why [Company Name] offers workspaces that are conducive to high productivity and a valuable degree of community, as we meet the needs of employees.

• Customer Focus

The clients of [Company Name] are typically business owners, investors, business executives, and realtors seeking work spaces for 10-50 workers. They are focused on placing employees in the best environment available to encourage high-performance team production.

The clients of [Company Name] also recognize the wants and needs of their employees, so they may also seek full kitchens and workout rooms in addition to coworking spaces. [Company Name] strives to maximize their investment, whether by buying or leasing, by ensuring that production remains high and team enthusiasm matches production.

The demographics of current and potential clients within the US include:

• Over 1 million business owners looking for coworking spaces
• Almost 2 million employees currently work in coworking spaces
• Over 58,000 investors are looking to invest in coworking spaces
• Management Team

[Founder Name], [Founder Name] and [Founder Name] have been working together within the commercial real estate industry for over ten years.

[Founder Name] and [Founder Name] began working together as commercial real estate brokers ten years ago and [Founder Name] completed their circle of success as an escrow officer specializing in commercial building and leasing. This background of compatible roles has created the basis for our clients’ trust and confidence. We have created [Company Name], a profitable company, within the past six months that proves our company motto: Coworking Space Works .

• Success Factors

[Company Name] can point to two highly-successful projects that have already been completed profitably within the past six months:

• The Hillside Project, for a twenty-employee human resource management firm, became the cornerstone of our success. [Company Name] successfully provided coworking space and sound-proof partitions for the employees, with a kitchen area added as an employee bonus.
• [Company Name] developed a conjoined space, The Broadstone Building, for our second client with equal success. A ten-person team of engineers was positioned strategically within a twenty-person programming group. The collaboration of the combined team has already produced stellar results for our client. In lieu of this success, our client has requested that [Company Name] assist with another large coworking space project.
• Financial Highlights

In light of our early and profitable success, [Company Name] is currently seeking $280,000 to meet growth expectations. Specifically, these funds will be used as follows:

• Working capital: $180,000 for 2 additional commercial real estate brokers and 1 administration director for a period of one year
• 3D printer and CAD program for design and development plans: $100,000.

Top line projections over the next five years are as follows:

II. Company Overview

This Section's Contents

Who is [Company Name]?

[company name]’s history, [company name]’s products/services, demographic profile of target market, customer segmentation, direct & indirect competitors, competitive advantage, the [company name] brand, promotions strategy, pricing strategy, functional roles, management team members, hiring plan, revenue and cost drivers, capital requirements and use of funds, key assumptions.

[Company Name] was started ten months ago to meet the surging demand for flexible, comfortable and reliable coworking office space. Several businesses in the regional area have been seeking coworking space locations; however, none are available. With this in mind, [Company Name] was formed by [Founder Name], [Founder Name] and [Founder Name] to meet these specific office space needs.

The changing nature of our economy today calls for companies to consider the use of assets wisely as they determine the type of office building or workspace that best suits their needs. One of the largest overhead costs is that of office space, particularly when land must be purchased and a building raised. The clients of [Company Name] recognize their assets can be put to better use in other areas, such as innovation, technology and company growth overall. With this understanding, [Company Name] has been recently established as the new leader of coworking spaces that actually work.

The history of [Company Name] began informally long before the company was actually formed. The founders of the company, [Founder Name, Founder Name and Founder Name] noticed about ten years ago that commercial real estate clients began to question the wisdom of buying land and building offices for employees. They began to question more recently about the availability of coworking space for their employees. This line of questioning became the dominant request of all clients. Ten months ago, [Company Name] was formed as a C corporation to provide the answers.

[Company Name] is engaged in proactively finding the best employee coworking spaces available. This is our primary service. From there, [Founder Name] begins the escrow or leasing process and the final contracts are signed, typically within one month.

[Founder Name] and [Founder Name] then determine the best layout, design and style for the build out of the property and oversee the implementation of the coworking plan. Within a few short months, the employees of clients are situated comfortably in their new coworking space.

The combined elements offered by [Company Name] include:

• Superior property acquisition or leasehold
• Accurate escrow and documentation processes
• Proper space and environment designs
• Build out of all spaces, including amenities
• Timely execution of the plan according to client needs

All of the above services and products contribute to the ongoing growth and success of [Company Name].

III. Industry Analysis

The evolution of the coworking space concept has grown exponentially over the past ten years. Over the next five years, the CAGR reports growth in the coworking space industry will be at 17.5%. Several factors will contribute to this growth, as industry reports suggest:

• Higher costs associated with land acquisition and building
• Higher costs for individual office build-outs
• Higher costs for building materials overall
• Increased demand for “team or group community spaces”
• Increased purpose in resource “sustainability”
• Increased goal to minimize expenditures across the board

At the same time, as noted by [Company Name], the coworking space will need to innovate more spatial designs and layouts for teams or groups that require collaboration. The team or group concept is now dominating the business world and it is anticipated that it will continue to do so for many years to come.

IV. Customer Analysis

[Company Name] is initially serving regional clients in the area within one hundred miles of the city location. However, [Founder Name, Founder Name, and Founder Name] see the vast potential in creating a profitable franchise opportunity to be applied anywhere in the US. [Company Name] sees a long-term strategy in this offering to come.

[Company Name] serves executives, business owners, real estate brokers and investors, who are seeking to adapt current properties or invest in new ones that offer coworking spaces. The largest market is found in investors, who see the potential for profit:

• Current global demographics suggest 24M coworking space opportunities by 2024, which translates into a need for properties and those who invest in them.
• Because of the high rate of growth in the coworking space arena, the need for investments and land acquisitions will continue to build in the foreseeable future.

Future franchising opportunities may include investments that begin at [Company Name] in the land acquisition stage and continue through to additional elements of building, thus adding another layer of profitability to franchising.

Clients of [Company Name] include primary and secondary targets:

Primary Client Base:

• Business owners
• Corporate executives

Secondary Client Base:

• Commercial real estate brokers
• Commercial real estate developers
• Commercial real estate builders
• Coworking space franchisees

V. Competitive Analysis

King & Hartfield Grouop – direct competitors Although considered a direct competitor sharing in a similar business, King & Hartfield does not design coworking spaces. All models or build-out plans are purchased from a repository held by furnishing companies that create designs for coworking spaces. There are 11-12 plans from which clients must choose in order for King & Hartfield to provide build outs and other processes. [Company Name] creates each build out plan and design on a custom basis for our clients.

Clarkson Coworking Connections – indirect competitors Clarkson provides their lists of available coworking personnel with jobs that are situated in coworking spaces. This is done in an attempt to place suitable personnel in coworking situations that may be familiar, albeit uncomfortable or noisy.

Moss & Associates – direct competitors This company has been in existence for 5 years and has created a short list of successful coworking space build outs. The company does not design or build out space for more than 10 people, working from the platform that too many people in community spaces are less beneficial overall than those that may house only 5 or 10 people. Given this limit, [Company Name] is positioned to succeed in the larger projects requiring more accommodations and, thus, larger revenues and gains.

[Company Name] holds several compelling advantages over competitors, listed as follows:

• A decade of experience in commercial real estate by [Founder Name], [Founder Name] and [Founder Name] adds a unique, definable value to [Company Name]. Having sold over 36M in land and properties, the founders are fully experienced in buying and leasing of commercial properties.
• The scope and purpose of each client’s plan is another competitive advantage for [Company Name]. Each coworking space is custom-designed, measured for space allowances, fit with furnishings and brought through to completion on time. No other coworking space business can make this claim.
• The founders of [Company Name] are building today on a long-term strategy for tomorrow: franchising the current design-and-build model throughout the US by 2025.

VI. Marketing Plan

[Company Name] displays a motto, “Coworking that Works,” which expresses the brand strategy for the company. Many of the coworking spaces that have been built do not offer a comfortable, noise-free environment; [Company Name] does.

Each customized plan for our clients is designed for comfortable, reliable and noise-reduction partitions. Included in each plan are community spaces for collaboration-in-comfort , another pivotal point in our brand strategy overall.

[Company Name] targets all real estate brokers, investors, corporate executives and owners within the 100-mile radius of our location. The use of several mediums is involved on an on-going basis because our primary customer segments are differentiated: some traditional, some stuck on social media, others uninterested unless a direct mail piece is delivered. For these reasons, [Company Name] uses every resource to build interest and promote the company:

Social Media [Company Name] currently buys monthly media spots and call-outs; as business grows, this effort will increase. The emphasis will be on the experience of the founders, the unique nature of the company processes, and the availability of speed and customization for clients.

Public Relations [Company Name] uses the services of Carmichael Public Relations to put out quarterly press releases and garner blog and press spots for the founders. Social Media marketing is included on a case-by-case basis, depending on the project involved.

Website Although most clients review [Company Name] by Google results, this company does maintain an interactive website with videos that demonstrates our abilities in designing, building, furnishing and customizing coworking spaces for our clients.

National and International Conferences The National Board of Commercial Real Estate Brokers holds two conferences yearly. The founders of [Company Name] are pursuing speaking opportunities at both.

Investor Dinners [Company Name] invites 10-12 investors to attend gourmet dinners with others in the community and the founders of our company to highlight our focus on quality and customization for coworking spaces. This results in new and strengthened relationships that result in investments in [Company Name].

Corporate Owners & Executives Tours From time to time, as determined by the founders,the [Company Name] will host a tour of featured coworking spaces that are known for quality, design and beauty. These tours will be at the expense of [Company Name], however they result in high-end sales and repeat business with our primary clients.

Coworking Space Trade Shows [Company Name] has participated in one major US trade show and will participate in the next annual trade show again. This puts [Company Name] into the industry headlights and allows the founders to highlight their successes and unique models for success. Within the next few years, franchise opportunities will be offered at the trade shows, as well.

[Company Name] wasn’t founded to be a bottom-of-the-barrel coworking space facilitator, but a company that listens and acts at the direction of our clients. Each project is customized and profitability is secured by the land or building acquisition process, number of employees, spatial needs, environment qualifiers, decor and furnishing choices. The desires of our clients and their budgets are set prior to the inception of any project.

VII. Operations Plan

Although already seeing successes, [Company Name] needs to fill additional roles within [Company Name]. Filling these roles will assist in the short-term and long-term goals of our company:

Administrative Functions

• Administrative Director

Sales & Marketing Functions

• Commercial real estate brokers (2)

VIII. Management Team

[Company Name] is registered as a C Corporation with the founders, [Founder’s Name], [Founder’s Name] and [Founder’s Name] as shareholders. [Founder’s Name] holds 51% of the private stock, [Founder’s Name] holds 31% of the private stock, and [Founder’s Name] holds 18% of the private stock.

[Founder’s Name] brings over ten years of commercial real estate knowledge and experience to the role of President and CEO of [Company Name]. His role is to plan and execute the long-term strategy of franchising and to encourage investors in the company by selling limited shares of stock in the franchising model, as agreed upon. He holds a Master’s Degree in Business Administration from Purdue University.

[Founder’s Name], Director of Sales and Marketing, is also a commercial real estate broker, and has a wealth of knowledge in coworking spaces, as her former brokerage concentrated on the sale of property for the building of coworking spaces. She brings managerial experience and oversight to [Company Name]. She holds a platinum key from Real Estate Brokers of America and a Bachelor’s Degree in Business Administration.

[Founder’s Name], the Director of Finance, is a real estate escrow officer, with an in-depth knowledge and experience in this role and brings years of association with him into [Company Name] as a result of his many contacts. He graduated with a Bachelor’s Degree in Accounting from Northwestern University.

A major factor in seeking funding is that of increasing sales and marketing personnel. The current hiring plan includes hiring two experienced commercial real estate brokers to add to our team at [Company Name]. This will accelerate growth further and faster in proportion with our short-term and long-term goals.

Additionally, one Administrative Director will be hired within the next six weeks to oversee the current office and administrative personnel. The Administrative Director will be under the supervision of [Founder’s Name], the accountant and Director of Finance.

IX. Financial Plan

Revenue for [Company Name] will exceed expenses in approximately six months if the current marketing and sales plan is placed into motion.

Major sources of revenue include:

• Profit generated from brokerage of properties
• Profit generated from customized plans for coworking spaces
• Profit generated from furnishings and decor
• Profit generated from additional build out and amenities as requested

Major Cost Drivers include:

• Costs associated with brokerage of properties
• Costs associated with design plans and coworking space needs
• Costs associated with 3D printing and CAD extensions
• Costs associated with furnishing, decor and additional amenities
• Costs associated with overhead; capital expenditures

[Company Name] is seeking $280,000 in funding to add personnel to the administrative and sales team within the next six weeks. The capital expenditures will amount to $180,000 in funding.

The additional funding request will be allocated to an oversized 3D printer with multiple properties for design printing to create prototypes. In addition, CAD programs to extend the abilities of our designers are needed. Together these expenditures will amount to $100,000.

  5 Year Annual Income Statement

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Coworking Space Business Plan

Written by Elma Steven | Updated on April, 2024

How Do I Write the Coworking Space Business Plan?

Coworking Space Business Plan is an outline of your overall coworking space business. The business plan should includes a 5 year financial projection, marketing plan, industry analysis, organizational overview, operational overview and finally an executive summary. Remember to write your executive summary at the end as it is considered as a snapshot of the overall business plan. You need to be careful while writing the plan as you need to consider various factors that can impact the business’s success.

You can spend 3 to 4 weeks trying to write your own Coworking Space Business Plan by browsing through free online resources or hire a professional writer for $2,000. There is a better way to do this-  Download our Coworking Space Business Plan to write a plan in just 2 days . Just Fill Up & Print!

Take a deep dive into coworking space business profitability using our calculator and perfume business financial model. Check out- Is Coworking Space Business Profitable?

Table of Contents

Executive summary.

Maria Gonzalez is responsible for creating a unique coworking facility in the center of Miami called Collaborative Canvas Coworking. Freelancers, startups and small enterprises may take use of our facility’s many amenities such as our private offices, conference rooms and event spaces. Maria who has been managing workspaces and cultivating communities for over fifteen years, infuses Collaborative Canvas with her enthusiasm and knowledge. Our state-of-the-art facilities, community-focused atmosphere and dedication to encouraging teamwork and fresh ideas among Miami’s varied business community are what set us apart from the competition.

Mission: To provide Miami’s working class a boost by way of a motivating, team-oriented workplace. Our goal is to create a community where members may learn from one another and flourish in an atmosphere of mutual support and creative freedom.

Vision: To be recognized as Miami’s premier coworking space, renowned for encouraging innovation and promoting professional growth. Our mission is to become universally recognized as the driving force behind Miami’s diversified talent landscape, innovation and community involvement.

Industry Overview:

At a CAGR of 22.4%, the market is expected to increase from its 2022 valuation of $13.1 billion to $50.15 billion in 2028. The expansion is fueled by the emergence of the gig economy, the growing expense of conventional office space, the demand for flexibility and the need for community. Check out this guide on  how to write an executive summary?  If you don’t have the time to write on then you can use this  custom Executive Summary Writer  to save Hrs. of your precious time.

Financial Highlights:

Revenue & earnings.

Cost of Goods Sold & Expenses

Break- Even Analysis

Investments or Fund Usage Plan

Business Description

Business Name: Collaborative Canvas Coworking

Founders: Maria Gonzalez

Management Team:

Legal Structure: LLC

Location: Miami

Goals & Objectives:

✔️ Membership Growth: Increase membership by 20% annually, focusing on attracting a diverse mix of freelancers, startups and small businesses.

✔️ Community Engagement: Hold seminars and networking events once a month to help members make connections and advance their careers.

✔️ Brand Recognition : Establish a strong brand presence in Miami through targeted marketing campaigns, social media engagement and partnerships with local businesses and organizations.

✔️ Facility Expansion: Add more private offices and conference spaces to the building during the next three years in response to member input and demand.

✔️ Revenue Diversification: Introduce new revenue streams such as virtual office services, event space rentals and membership tier options.

Services: 

✔️ Meeting and Conference Facilities: For meetings, presentations and video chats the shared office has cutting-edge conference rooms and meeting rooms. These rooms are a flexible resource for a variety of business purposes since they may be reserved by both members and non-members and have state-of-the-art audio-visual equipment.

✔️ Virtual Office Services : The coworking space provides its members with a professional mailing address via its Virtual Office Services. These services provide a level of professionalism and ease for remote and mobile professionals by processing mail and shipments, answering phones and taking messages.

✔️ Event Spaces: Workshops, networking meetings and social gatherings would all be suitable for the space’s many multipurpose rooms. Members may use these facilities which both promotes community involvement and provides a convenient location for a variety of events.

✔️ High-Speed Internet and IT Support: Wi-Fi and wired internet connectivity both of which are available here are essential in any contemporary workplace. IT assistance on-site to help with any technological difficulties that may arise making for a more efficient and trouble-free work environment for everyone involved.

✔️Printing and Office Supplies : The area is also furnished with basic office supplies like paper, pencils and staplers ensuring that members have all they need for effective functioning.

Business Model

The Business Model Canvas is a high-level overview of the business model. It can also be considered as the business model map in the overall plan. A company idea’s complexities may be mapped out, analyzed and communicated with the use of the canvas. It shows the whole picture of a company’s value creation, delivery, and capture processes. It helps new business owners hone their ideas, encourage creative thinking and make sound strategic decisions. It’s a helpful resource for coming up with ideas, organizing plans and presenting business models to key players. Check out  100 samples of business model canvas .

It offers a clear lens into a company’s strengths, weaknesses, opportunities, and threats. This self-awareness enables effective resource allocation and strategic positioning against competitors. Businesses can mitigate risks, make informed decisions, and set realistic goals. In addition, presenting a SWOT analysis in a business plan communicates to stakeholders that the company possesses a deep understanding of its market environment. In essence, SWOT ensures a business’s strategy is grounded in reality enhancing its chances of success. Check out the  100 SWOT samples  which will give you a better idea on SWOT writing process.

Marketing Plan

The marketing plan has five main sections. These sections are marketing budget, marketing channels, GTM or Go To Market Strategy and brand management. The marketing budget will explain how much you plan to spend on promotions and what will be the proportion of spending across the channels. The marketing channels section will talk about how you plan to use each of the promotional channels. The GTM strategy can be considered as the short term version of promotional channels section where you explain how you plan to penetrate the market using the channels at the beginning. Finally, brand management is the longer term version of the promotional channels section where you explain how you plan to enhance brand awareness, recognition and brand recalls amongst your target market.

Promotional Channels

Social Media Marketing – $15,000 (30%)

✔️ Platform Focus : Concentrate on networks like LinkedIn, Instagram and Facebook which are popular with professionals and companies. Showcase the shared office space with media including member testimonies and highlights from events.

✔️ Paid Ads : Use targeted ads to reach freelancers, startups, small businesses and remote workers. Utilize the platforms’ algorithms to target based on professional interests and behavior.

✔️ Content Strategy : Updates on the coworking space, its facilities and upcoming events. Weekly member profiles and productivity/work-life balance advice/articles

Website and SEO – $10,000 (20%)

✔️ Website Revamp : Make sure your website is polished and professional, highlighting the benefits of working out of your coworking space and the praise of those who have used it.

✔️ Blog Content : Publish articles on topics like entrepreneurship, remote working trends and productivity tips to drive organic traffic.

✔️ SEO : To rise in search engine results emphasize phrases like “Miami business scene” and “coworking space.”

Email Marketing – $5,000 (10%)

✔️ Newsletter : Produce a monthly newsletter informing members of the coworking space’s latest happenings, forthcoming events, member successes and any discounts or deals being offered.

✔️ Segmentation : Tailor emails for different segments such as entrepreneurs, freelancers and local businesses.

Local Partnerships – $7,000 (14%)

✔️ Business Events : Partner with local business events, workshops and seminars offering your space for hosting or as a networking venue.

✔️ Collaboration with Educational Institutions : Collaborate with educational institutions to provide student-run initiatives, internships and networking mixers.

Influencer and Community Collaborations – $6,000 (12%)

✔️ Collaborations : Partner with local business influencers, industry leaders or community figures for workspace sessions leveraging their audience for broader reach.

✔️ Sponsorship Deals : Provide the shared office for free to local organizations or businesses in return for promotion on social media and name recognition.

Direct Mail and Local Advertising – $4,000 (8%)

✔️ Direct Mail : Send out flyers or promotional materials to local businesses, educational institutions and professional organizations.

✔️ Local Media : Invest in local business magazines, radio stations and community event sponsorships to develop a strong local presence.

Referral Program – $3,000 (6%)

✔️ Referral Incentives : Create a referral scheme where existing members may earn perks for bringing in new clients to the coworking space.

Brand Management

Social Media Marketing

✔️ Brand Voice and Visual Identity: Create a tone for your coworking space’s brand that will appeal to freelancers, independent contractors and small business owners by highlighting its cutting-edge features, stimulating community and time-saving layout. Use a similar visual design across media showing your space’s interiors, events and community activities.

✔️ User-Generated Content: Encourage members to share their work experiences and tag your space. Repost these stories to build credibility and showcase the vibrant community in your space.

✔️ Live Sessions: Host live tours of your space, Q&A sessions with members and discussions on topics relevant to freelancers, startups and remote workers to engage your audience.

Search Engine Marketing (SEM) and Local SEO

✔️ Ad Copy: Focus on the unique aspects of your coworking space such as high-speed internet, networking events or flexible membership plans.

✔️ Website Optimization: Make sure that keywords like “coworking space,” “Miami office rental” and “professional networking” are used to optimize your website for search engines and that it highlights the qualities of your space and member testimonials.

✔️ Google My Business: Regularly update your listing with photos, available amenities and contact information to improve local search visibility.

Email Marketing

✔️ Newsletter: Share updates about new facilities, networking events, special offers and highlight success stories or achievements of current members.

✔️ Segmentation: Customize emails for different segments such as entrepreneurs, digital nomads, small businesses and local community groups.

Local Partnerships and Sponsorships:

✔️ Business and Networking Events: To get your name out among local company owners and executives, consider hosting or sponsoring local business events and seminars.

✔️ Collaboration with Educational Institutions: Partner with universities and training centers for student projects, career fairs and networking events.

Content Marketing

✔️ Educational Content: Create blog posts, videos and infographics about entrepreneurship, work-life balance and productivity tips.

✔️ Workspace Behind-the-Scenes: In order to convey a flavor of what it’s like to work in a coworking space, share some anecdotes and pictures from community events and the day-to-day routine.

Go To Market Strategy

Online Presence and Community Engagement

✔️ Professional Website: Create a website that describes the benefits of working at your coworking space. Add a gallery exhibiting the space and community events and a simple booking system.

✔️ Content Marketing: Regularly publish blog posts or articles on topics like entrepreneurship, work-life balance and productivity tips which can help boost search engine rankings.

✔️ Local Directory Listings: Ensure your space is featured in local business directories and coworking space aggregators to increase local search presence.

✔️ Partnerships: Collaborate with local companies, educational institutions and professional associations to give promotional incentives and create a strong network within the local community.

Space Launch Event and Promotional Offers

✔️ Grand Opening Event: Throw a party to introduce people to your shared office. Organize a tour and networking event for area sole proprietors, independent contractors and small company owners.

✔️ Introductory Discounts: Provide special rates for first-time members or bundle packages for different services to attract a diverse clientele.

Digital Marketing and Customer Relations

✔️ Social Media Campaigns: Showcase your space’s amenities, events and member feedback on social media sites like LinkedIn, Instagram and Facebook. Engage your audience by revealing some of the process.

✔️ Email Marketing: Regularly send newsletters with updates on new amenities, upcoming events and community highlights.

✔️ Loyalty Program: Create a program that rewards loyal members with perks such as discounts, additional access to meeting rooms or guest passes.

Brand Awareness and Public Relations

✔️ Local Media Outreach: Make connections with regional business publications, blogs and community channels to promote your coworking space via features, interviews and other means.

✔️ Community Involvement: Participate in local business events, workshops or sponsor local community programs to increase brand visibility.

✔️ Influencer Partnerships: Join forces with prominent businesses or thought leaders in your area to host events or produce content you can share on social media.

Performance Tracking

✔️ Analytics and Feedback: Gather frequent feedback from members and use tools like Google Analytics to track the success of your marketing and engagement efforts.

✔️ Adaptation: Stay flexible and ready to adjust your strategies based on performance metrics, member feedback and changing market trends.

Organizational Overview

It explains the organizational structure including the hierarchy of reporting relationships, ownership and responsibilities of key management personnel. This also explains how the founder’s past experiences and credentials can help make the business successful.

Maria Gonzalez is a creative entrepreneur with a love for community building and considerable expertise in company development and workspace management and behind Miami’s newest coworking endeavor. Her career started with a passion for encouraging others to work together and think creatively, which eventually led her into business and volunteering. Maria has the business administration degree and experience, as well as the specific training in workplace design and management, to plan and implement a productive shared office space.

Maria has spent her career participating in a wide range of team-based projects and workplace initiatives, honing her skills in the art of designing spaces that are not only practical but also inspiring and fruitful for their occupants’ work. She is well regarded among Miami’s business elite due to her expert knowledge of the unique challenges faced by sole proprietors, young companies and established SMEs.

In a city like Miami, coworking space is a reflection of her entrepreneurial spirit. She wants to do more than simply let out office space so she’s working to create a community of entrepreneurs that can help each other out. The power of collaboration, making connections and creates a space where both seasoned professionals and newbies may thrive.

At the center of her coworking space is a dedication to quality and innovation. The location is intended to be a center for networking and professional growth thanks to its cutting-edge facilities, adaptable workstations and thriving community vibe.

Positions and Responsibilities

Chief Executive Officer (CEO) – Maria Gonzalez

The major duty of managing the coworking space and determining its long-term direction. Her responsibilities include serving as the principal decision-maker, managing the space’s resources and representing the company at industry events and discussions. Another important part of her job is making sure the board and the operational teams are talking to one other.

Community Manager

The Community Manager is in charge of the general vibe and smooth functioning of the shared office. Essential for fostering member collaboration and productivity, responding to member questions and managing the community’s inbox.

Membership Coordinator

A Membership Coordinator’s main responsibilities are around members: new ones, current ones and the relationships between all of them. New members will have a pleasant onboarding experience and they will get continuing assistance. This function is vital in recognizing and serving the different demands of the coworking community.

Event and Workshop Organizer

This role requires the coordinator to organize and run a variety of workshops and seminars for employee training and networking. The purpose of the Event and Workshop Organizer is to improve the coworking experience and encourage community participation via the creation of interesting, engaging and relevant programming in collaboration with members and external partners.

Front Desk Staff: 

A coworking space’s receptionist is often the initial point of contact for members, guests and anybody else with questions about the space.

Operational Overview

Flexible Workspace Solutions:

✔️Perfect for today’s entrepreneurs, freelancers and remote workers, state-of-the-art coworking facilities provide ergonomic furniture and lightning-fast internet.

✔️Variety of options including hot desks, dedicated desks and private offices to suit different working styles and needs.

Meeting and Conference Facilities:

✔️Fully-equipped meeting and conference rooms with advanced audio-visual technology, ideal for team meetings, client presentations and video conferencing.

✔️Booking availability for both members and non-members with flexible scheduling options.

Virtual Office Services:

✔️Professional business address for mail and package handling.

✔️Having a professional sounding answering service and office staff may do wonders for a company’s reputation.

Event Spaces and Networking Opportunities:

✔️Versatile event spaces for hosting workshops, seminars and networking events fostering community engagement and professional development.

✔️Meet-ups, talks and other social activities are held often around the community.

Professional Development Programs:

✔️Workshops and seminars focused on skill development, entrepreneurship and business growth.

✔️Collaborations with industry experts and local businesses to provide valuable learning experiences.

Industry Analysis

With a CAGR of 22.4% between 2022 and 2028 the market is expected to rise from its estimated $13.1 billion in 2022 to $50.15 billion in 2028. Number of factors contributing to the expansion of this market including the popularity of the gig economy, the rising expense of conventional office space, the need of adaptability and the pursuit of social interaction.

Source: grandviewresearch

Several trends are shaping the coworking space industry in the USA:

✔️ Specialization : Tech startups, creative firms and social enterprises are just a few of the sorts of companies that certain coworking spaces cater to.

✔️ Technology integration: Coworking spaces are integrating new technologies to improve the experience for its members such as smart building technology, virtual reality and augmented reality.

✔️ Amenity expansion : Coworking spaces are providing a greater variety of services such as fitness centers, cafés and event spaces, to attract and maintain members.

✔️ Location expansion: Coworking spaces are expanding into new markets including suburban and rural areas, to meet the growing demand for flexible workspaces.

Industry Problems 

✔️ Limited Space or Overcrowding: When the coworking space is full it might be difficult for customers to concentrate or locate an open desk. During peak times or when many people are competing for few resources like conference rooms this may become a major issue.

✔️ Network and Connectivity Issues: Reliable internet is crucial for a coworking space. Customers may experience frustration with intermittent connectivity, slow speeds or technical glitches which can significantly hinder their productivity.

✔️ Noise Distractions: Noise is often a major disruption in open offices. This may include loud discussions, phone calls or simply the overall hum of a busy atmosphere making it difficult for certain individuals to focus on their task.

✔️ Privacy Concerns: Open floor plans might make customers feel like they have no personal space. Concerns may emerge around the privacy of one’s chats the content shown on one’s display or one’s possessions.

✔️Difficulty in Booking Resources: Members could find it tough to book meeting places or equipment owing to excessive demand or a cumbersome reservation procedure. Those who need them for client meetings or crucial work may find this frustrating.

Industry Opportunities

✔️Expanding or Optimizing Space: It may be necessary to either add square footage or reorganize the current setup in order to accommodate everyone. Space may be used more effectively via the use of hot desking or the inclusion of private rooms. Larger groups and companies may be interested in moving in because of this growth.

✔️Enhanced IT Infrastructure: You may position your shared office as a trustworthy location for in-demand IT work by investing in a strong IT infrastructure to address connection difficulties. Providing members with access to IT support services is another great perk.

✔️Quiet Zones and Soundproofing: Creating designated quiet zones or soundproof booths can address noise distractions. This initiative can attract professionals like podcasters, therapists or anyone needing a quiet environment diversifying your member base.

✔️Enhanced Privacy Solutions: You may make your area more appealing to members who deal with sensitive information by using privacy-focused solutions like privacy screens, safe storage and private phone booths.

✔️ Streamlined Booking System: Improving the booking process for available resources may lead to happier members. This may take the form of an intuitive app or website function that enables instantaneous scheduling and alerts.

Target Market Segmentation

Geographic Segmentation

✔️ Miami-Dade County Residents: Pay close attention to the local independent workers, sole proprietors and small businesses. This comprises both developing talents in many areas as well as experienced specialists in the field.

✔️ Miami Neighborhoods: Target specific neighborhoods like Brickell, Coral Gables or the Miami Design District known for their dynamic business scenes and entrepreneurial communities.

Demographic Segmentation

✔️ Age Groups: Consider the demands and preferences of a wide range of employees including recent graduates, mid-career professionals and seasoned businesspeople.

✔️ Income Levels: Offer a range of coworking solutions from cost-effective hot desks for budding entrepreneurs to premium private offices for high-income professionals.

✔️ Cultural Diversity: Embrace Miami’s multiethnic atmosphere by providing a workplace that is open and accepting of all people.

Psychographic Segmentation

✔️ Aspiring Entrepreneurs and Freelancers: Find people who are just starting out in business for themselves or as freelancers and provide them with a safe space to learn, develop and make connections.

✔️ Professional Consultants and Remote Workers: Cater to the needs of professionals who require a reliable, well-equipped space for their day-to-day operations.

✔️ Creatives Seeking Collaborative Environments: Create an environment that encourages creativity and interaction amongst professionals from different disciplines.

Behavioral Segmentation

✔️ Startups and Small Businesses: Focus on small teams and startups looking for a collaborative environment to grow their businesses.

✔️ Digital Nomads and Remote Workers: With the increase of remote work, targeting digital nomads and remote workers of bigger organizations may open up a new market area.

✔️ Event-Based Workspace Needs: Cater to clients who require meeting spaces for specific events, workshops or team off-sites.

Market Size

✔️ Total Addressable Market (TAM) for Coworking Space: The potential clientele for shared office spaces in the United States is included in your coworking space’s Total Addressable Market. Those who work from home those who own small enterprises and those who work for bigger companies that need adaptable workplace options. Given the rise of freelance labor and other forms of flexible employment as well as the general expansion of the job market TAM’s reach is impressive. The total addressable market (TAM) in 2023 is likely to be large due to factors such as technology development, shifting worker demographics and post-pandemic changes in work habits.

✔️ Serviceable Addressable Market (SAM) for Coworking Space: The SAM for your shared office space represents a subset of the total addressable market. It’s a measure of how much of the market your coworking space can really attract. Location in Miami where special amenities (such as high-speed internet, meeting rooms and event spaces) and the types of clients you want to attract (digital nomads, local startups or small business teams) are all factors that will affect your SAM. If your business model is geared toward tech startups or delivering high-end facilities to professional consultants your SAM will look different from one that caters to creative freelancers or places a priority on cost-effectiveness.

✔️ Serviceable Obtainable Market (SOM) for Coworking Space: Your coworking space might reasonably anticipate to take advantage of the Serviceable Obtainable Market part of the SAM. Because it indicates the share of the market that is within reach given your existing resources, market position and competitive environment this indicator is crucial. The success of your coworking space’s marketing and community-building efforts, the quality of your facilities and services, the efficacy of your operational management and the reputation and brand value of your place all factor into its SOM. The SOM gives you a realistic objective to shoot for in terms of client acquisition, revenue projections and market penetration helping you zero in on and dominate the most lucrative subsets of the coworking industry.

Industry Forces

Market Demand and Workplace Trends:

Changes in how people work have influenced the need for shared office spaces in cities like Miami. A rise in the number of freelancers and startups as well as the popularity of remote work have increased demand for adaptable office space. This has been boosted by developments in virtual collaboration technology. This may be capitalize by welcoming a wide range of customers such as mobile corporate teams, solo professionals and digital nomads.

Competition

Other local coworking spaces as well as regular office leases and home offices also provide competition in the coworking industry. Unique features, community-building events, outstanding service and a focus on certain demographics may help your establishment stand out from the competition. Emphasizing what makes your coworking space stand out from the competition is crucial if you want to build a loyal member base.

Technological Advances

Maintaining compatibility with cutting-edge software and hardware is essential for any contemporary coworking environment. It’s crucial to put money into fast internet, cutting-edge printing and scanning technology and user-friendly ergonomic workplaces. Improving member involvement and streamlining operations via the use of digital technologies including an intuitive website, online booking systems and customer relationship management software.

Regulatory Environment

Verify that all company operations, property laws and safety policies are in accordance with local rules. If you want to run your coworking space legally and effectively, you need also keep up with local zoning regulations and occupancy limits.

Economic Factors

The success of your coworking space may be affected by the economy particularly the state of finances among local firms and independent contractors. The demand for workspace and your capacity to provide it, may be affected by economic fluctuations experienced by your members. Pricing and membership plans that are flexible in response to economic changes can help you weather the storm.

Financial Statements

The financial model has all the important financial statements including Income Statement , Balance Sheet and Cash Flow Statement. In addition, the financial model includes 3 to 5 years of projections and can be edited using Microsoft Excel or Google Sheets.

Income Statement

Cash Flow Statement

Balance Sheet

Revenue Summary

Cost of Goods Sold

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How to write a business plan for a coworking space?

Creating a business plan for a coworking space is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a coworking space business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a coworking space?

• What information is needed to create a business plan for a coworking space?
• What goes in the financial forecast for a coworking space?
• What goes in the written part of a coworking space business plan?
• What tool can I use to write my coworking space business plan?

Having a clear understanding of why you want to write a business plan for your coworking space will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a coworking space business plan.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your coworking space. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your coworking space to be in the next three to five years.

Once you have a clear destination for your coworking space, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To get visibility on future cash flows

If your small coworking space runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your coworking space's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your coworking space business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your coworking space's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your coworking space.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your coworking space and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your coworking space's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your coworking space, let's explore what information is required to create a compelling plan.

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Information needed to create a business plan for a coworking space

Drafting a coworking space business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a coworking space

Before you begin writing your business plan for a coworking space, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your coworking space.

You may discover that the demand for coworking space increases during certain times of year. Additionally, your market research could reveal that there may be a trend of people seeking out coworking spaces that offer additional amenities, such as a coffee shop or a yoga studio.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your coworking space.

Developing the sales and marketing plan for a coworking space

As you embark on creating your coworking space business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a coworking space

As you embark on starting or expanding your coworking space, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A coworking space might incur costs such as staffing costs for receptionists, housekeeping staff, and administrative staff, as well as costs for furniture and equipment such as desks, chairs, tables, computers, printers, and other office supplies. Additionally, the coworking space may incur costs for security systems, internet connections, and phone lines.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your coworking space's financial forecast?

The financial forecast of your coworking space's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a coworking space are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a coworking space shows how much revenue and profit your business is expected to make in the future.

A healthy coworking space's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established coworking space.

The forecasted balance sheet of your coworking space

The projected balance sheet of your coworking space will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your coworking space projected balance sheet provides an understanding of your coworking space's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your coworking space's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your coworking space has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your coworking space business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your coworking space business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your coworking space as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your coworking space, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your coworking space business plan, let's shift our focus to the written part of the plan.

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The written part of a coworking space business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a coworking space business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your coworking space's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your coworking space, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

In your coworking space business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your coworking space, you could emphasize the potential for growth in the area. You might talk about the local infrastructure, such as access to public transportation, businesses, and services that could make it a desirable location for people looking for an office space. Additionally, you could focus on the potential for increased visibility and recognition that the coworking space could bring to the area. By highlighting the potential of the area as a growing start-up hub, you could show that the investment could be a wise one.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your coworking space might offer printing services, meeting rooms, and high-speed internet access to its customers. Printing services can help customers quickly produce documents or marketing materials, while meeting rooms provide a separate space for private conversations or workshops. High-speed internet access ensures that customers can work without interruption, and can also allow customers to take part in virtual meetings or conferences.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your coworking space business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your coworking space, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your coworking space aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include entrepreneurs who want to network and collaborate with like-minded individuals. They would be looking for an affordable and accessible space to work from, as well as a community of professionals that can help them grow their business. They would also likely be interested in taking advantage of any additional services or amenities that the coworking space has to offer.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your coworking space.

5. The strategy section

When crafting the strategy section of your business plan for your coworking space, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your coworking space could face certain risks. For example, you might face a risk of damage to the space due to a natural disaster. Flooding, storms, and other weather-related events could cause physical damage to the building and furnishings that would need to be repaired. Additionally, you could face a risk of cyber security breaches. Hackers may try to access sensitive information stored on computers or networks, and if they are successful, it could cause significant damage to the reputation of the coworking space.

6. The operations section

The operations of your coworking space must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your coworking space's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You may have access to physical assets such as conference rooms, shared workspaces, and other amenities. Additionally, you might have access to intellectual property such as a member database, shared resources, or access to a network of entrepreneurs. Both the physical and intellectual assets of the coworking space could be invaluable to those who use it.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a coworking space business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my coworking space's business plan?

In this section, we will be reviewing the two main options for writing a coworking space business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your coworking space's business plan

Using online business planning software is the most efficient and modern way to create a coworking space business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

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Hiring a business plan writer to write your coworking space's business plan

Outsourcing your coworking space business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your coworking space business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your coworking space's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a coworking space business plan is not advisable. Allow me to explain the reasons.

Firstly, creating an accurate and error-free financial forecast on Excel or any spreadsheet demands technical expertise in accounting principles and financial modelling. Without a degree in finance and accounting and significant financial modelling experience, it's unlikely that the reader will fully trust your numbers.

Secondly, relying on spreadsheets is inefficient. While it may have been the go-to option in the past, technology has evolved, and software now performs such tasks much faster and more accurately.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software offers ease in comparing actuals versus forecasts and maintaining up-to-date forecasts for clear visibility on future cash flows, as we discussed earlier in this guide. Such tasks are cumbersome when using spreadsheets.

Now, let's address the written part of your coworking space business plan. While it may be less prone to errors, using software can significantly boost productivity. Word processors lack instructions and examples for each section of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they lack automated formatting capabilities.

In summary, while some entrepreneurs may consider Word or Excel for their business plan, it's far from the best or most efficient solution when compared to specialized software.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a coworking space. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start a coworking space? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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• Strategy & timeline
• Financial plan

All our business plan templates can either be used with Powerpoint or Google Slides, Google Slides being a free version of Powerpoint.

It is a one-time fee. By purchasing this template you can download it to your computer and use it for as long as you need to.

Yes you can! It’s actually recommended to customize the template.

We recommend you to change the photos, add your business information to make it truly yours.

Yes it is. All investors and lenders will require a business plan along with a financial plan in Excel format.

This business plan template also include a financial plan yet please note this is an example. To edit the financial plan (for example to customize your revenue projections), purchase the corresponding financial model template available on this same product page.

The short answer is no. Since these templates are digital products, it is impossible for us to retrieve the template once you have downloaded at least once on your computer.

Note that we offer a free business plan example that can be downloaded before purchase. This allows you to have a look at the structure and the level of information we include in all our business plans.

This explains why less than 2% of our customers ever ask us for a refund.

That being said, if you are unhappy with your purchase, we will always do our best to make it work for you, either by: offering another template for free, helping you to use and/or customize your plan so that it works for you. 

If we can’t find an arrangement, we will offer refunds exceptionally when, for example:

• You have purchased but you have not yet downloaded the document to your computer
• You have rightfully be misled by an element on our website

Yes we do. Many of our customers even come back to us for help a year post purchase as they update their business plan.

We provide free lifetime email support, period.

Privacy Overview

This business plan is an example in pdf format, therefore it cannot be used as a template nor modified., this free example has limited access and cannot be modified..

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Coworking Business Plan

Coworking business plan presentation, premium google slides theme and powerpoint template.

As the landscape of working environments has evolved, the demand for innovative coworking spaces is increasing. Capture the essence of your shared office concept with an illustrated, creative and corporate-styled business plan. This blue-toned template goes beyond the mundane, designed specifically for Google Slides and PowerPoint, which allows you to tailor it to your needs. It's a versatile platform to present your unique coworking business plan effectively. Amaze your audience with our refreshing, dynamic workspace solutions, conveyed through an amplified visual narrative.

Features of this template

• 100% editable and easy to modify
• 20 different slides to impress your audience
• Contains easy-to-edit graphics such as graphs, maps, tables, timelines and mockups
• Includes 500+ icons and Flaticon’s extension for customizing your slides
• Designed to be used in Google Slides and Microsoft PowerPoint
• 16:9 widescreen format suitable for all types of screens
• Includes information about fonts, colors, and credits of the resources used

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