3 Ways to Increase Profit as a Space Operator
There are several steps you could be taking to increase your profitability as a space operator.
According to the global coworking survey, about 43% of coworking spaces turn a profit which means 57% do not. We all know coworking is a tricky business; it's usually low margin and low volume, but it doesn't have to be. There's still hope to turn a good profit. You either increase your margins or increase your volume, which is easier said than done. We’re walking through three steps you can take to achieve this.
Yes, you may have heard some of these ideas before, but we'll be giving you actionable steps to implement these methods successfully and at no cost.
Here's what you're about to learn:
Increasing Your Profit Through Hosting events
Monetizing your community by Advertising local businesses
Positioning yourself as an on-demand space
Increasing Your Profit Through Hosting Events
Knowing who your coworking space serves helps you target certain events for hosting. Maybe it's freelancers, perhaps it's startups, whatever it is, try to host events that interest your niche. It increases awareness about your coworking space in your target community and brings in a relatively consistent profit if you can host recurring events. -insert link to coworking space niche-
Here's how you find potential events you can host:
Go to eventbrite.com and search 'networking' and filter the location e.g Toronto. You'll see a list of upcoming events (some recurring). You have two options; you can reach out to online events in your niche and mention your space is in the area if they plan to host an event in person soon, or you can reach out to an in-person event in your niche and see if they are looking for a new place to host. Position yourself as a better, cheaper, larger alternative to whoever they are currently using to win over the event organizer.
This free and simple task opens you up to potentially a few extra hundred per month or multiple thousands depending on the frequency and number of events you can book. Not only do you get the chance to host the event, but you increase your visibility amongst the attendees who might be looking for a consistent coworking space themselves.
Monetize Your Community By Advertising Local Businesses
Something you probably already know is you're only as good as the value you provide. When you have a defined niche as a space operator with a consistent community, you can offer advertising opportunities to businesses trying to reach those communities. Neil Patel mentions that niche communities are now one of the most effective ways to reach a targeted audience. You can advertise businesses through postings in an online newsletter, posting on your social media, or having physical advertising space.
How to find potential businesses to advertise:
Think of the potential interests or needs in your niche community and which businesses in your city (or online) are trying to meet those needs. If you have small companies that come to your space, they usually need content; now, you can partner with content agencies to promote them in your space in exchange for membership. Provide a lot of value to one agency through this type of partnership and use those results to attract more agencies.
Do this well, and you'll have a waiting list of businesses ready to advertise through you but also be mindful of your community, as no one likes seeing advertisements all the time.
Monetizing your space on demand and by the hour
Since the pandemic, people have wanted more now than ever to decide when and where they work. This new hybrid model means you'll have many remote companies looking for ways to provide their employees access to an office workspace without owning their own office space. Ensuring your coworking space has the interface to offer on-demand bookings by the hour instead of only memberships widens your pool of potential clientele and potential profit, especially with many companies now offering hybrid work models.
The easiest way to implement this through Worksimply’s on-demand platform and we'll walk you right through the process of setting up your on-demand tool for your website visitors. Maybe you can partner with remote companies in your area to provide coworking space to their workforce.
As we said initially, 57% of coworking spaces are not profitable, but you don't have to be one of them. You got into this business because you knew you were willing to do the work, so hit the ground running and maximize all of these strategies to increase your profitability. It will all be worth it when your coworking space is fully booked and profitable.
Did we miss out on tips that have worked for you as a coworking space operation? Drop us a dm or hit us up on Twitter with your thoughts on our post, and we'll respond!