Increasing Revenue Streams for Coworking Spaces
The coworking business model has had an impact around the world. Many coworking space owners emphasize that creating a thriving community is the most important thing for them but the truth is every company wants to increase its revenue and to grow its business—coworking spaces are no exception.
A flourishing shared office space usually provides not only a workstation but a number of different services. That’s why any venue can increase coworking sales revenue by creating various streams of income that can be derived from selling those services.
In fact, creating new sources of revenue and increasing income is the way to go in order to ensure sustainable business growth. A coworking space financial model should include at least 5 directions that could have a significant impact on the business.
What are some possible revenue streams?
1. Membership Tiers
This could be your primary resource. Offer your members different subscriptions at different pay levels. Those could be hourly, daily or monthly passes with diverse access levels.
2. New Audiences
By catering to corporations and not only individual professionals, you can significantly increase coworking sales revenue. For example, WeWork got $250 million in revenue from corporate clients last year. This accounts for 25 percent of the company’s total annual revenue.
3. New Services in Addition to Existing Products
From workshops and social events to meeting rooms and conferences, you can add auxiliary services that will be genuinely helpful to your clients and expand your coworking space financial model. Some other ideas here include locker rooms, virtual offices with mail and delivery handling options, professional training, yoga classes or dance lessons.
4. Collaboration With Local Businesses
You can partner with a local gym, a dance studio, a restaurant or a legal company offering discounts at their venues and extend these services to your members in order to get your partners’ clients. This will positively impact your local community, help get the name of your coworking space out there and attract new members.
5. Offering Services to Non-Members
You can rent conference rooms or sell tickets to workshops and training programs to any interested party. Conference equipment, laptops or video projectors can be rented at an additional fee. You can also host events that require catering services and derive profit from referrals.
Successful coworking businesses that have multiple revenue streams
Impact Hub is an example of how a coworking space can at the same time be an incubator, an innovation center, and an event venue. The shared workspace has a global network and offers its members different packages—from access to a limited number of events and virtual offices, to fixed desks with unlimited access to the venue and plenty of benefits included in the deal.
WeWork also offers various membership plans that start from a pay-as-you-go membership to a custom buildout with unique functionalities for large corporations. The company also rents it spaces across the world for different private events, such as conferences, workshops, and even birthday celebrations.
The bottom line is, coworking spaces lend extraordinary versatility, and therefore multiple possible revenue streams that should not be overlooked.