There is no doubt that coworking spaces can be profitable.
We covered this topic in more detail in a previous article on the profitability of coworking spaces.
Now that we know coworking spaces can be profitable, we will go into more detail about all the possible streams of income in running a coworking business.
In this article, you will quickly learn that membership fees are not the only means for your business to earn profit. There are a number of extra services, features, and amenities your space can offer that can provide a reliable stream of revenue for your business.
Let’s have a look at some of the most common revenue streams in modern coworking.
Offering Various Types Of Membership Plans
Offering various types of membership plans and charging a monthly fee is the main source of revenue for a coworking space.
Successful coworking is built on offering a wide variety of memberships types that offer different degrees of commitment and flexibility.
This allows members to get a taste of your space without breaking the bank or fully committing; opening up the possibility for more committed member down the line.
Renting Out Conference Rooms
Conference rooms will take up a significant portion of your coworking space, and as a result are another significance source of revenue for coworking spaces.
Of course, permanent members will have an allotted number of conference room hours already included in their memberships plans, however, you can offer more hours for an additional fee for all members.
In addition, you can open up conference rooms bookings to the public, charging by the hour or offering weekend or evening plans.
Hosting Events And Workshops
An integral part of any successful coworking space is fostering a sense of community.
Event hosting is one of the best ways to encouraging community within your space. Events bring link-minded people together and gives members some time to breathe and take a social pause from their busy day.
We have written about easy to execute event ideas. These events are a great way to bring people together and also have the added benefit of creating some revenue for your space. Many space owners will choose to open these events to the public and sell tickets to earn extra revenue.
Offering Additional Services & Amenities "à la carte"
For a moment, think of your typical cell phone service provider.
These companies offer a wide variety plans that bundle basic services such as data, text, and talk time. Customers typically pick out a plan that fits their lifestyles and they pay a monthly fee.
Offering a pre-set plan is a great start, however, it doesn’t take into consideration the wide variety of unique needs each customer has.
For example, perhaps some customer travel a lot for work and need international data, or they need voicemail service for their work. This is where ‘a la carte’ style services comes in to compliment the customer’s monthly plan and create a tailored experience for the user.
Similarly, the customer of a coworking space will be signing up for a base membership, but the nature of their business or lifestyle might require additional services or amenities from your space.
Typical additional services are:
- Conference room hours
- Mail room service
- Printing + copying services
- Secured storage or lockers
- Equipment rentals
- Event Access
All of these additional services should be able to be purchased on a flexible basis, ie. ‘a la carte’ and ultimately will provide you with a reliable revenue stream.
This also present the perfect opportunity for customers to get a taste of a service.
As a result, a member might decide to eventually upgrade their base membership to a one that includes this service.
As a busy entrepreneur you’re probably concerned about who you are going to track all these different revenue streams.
These types of powerful insights can give you valuable information to help inform your business decisions.
A whole range of software solutions like Spacial exist to help coworking space owners track revenue and help grow their bottom line.