Types of Customers to Target for Your Coworking Space Business

Like many people who are considering launching a coworking space business, the idea may have taken root when you ducked into your favorite coffee shop at midday.

While you waited for a barista to mix your selection, another mixture caught your eye: the number of people—serious-looking people—typing away at their laptops, conducting interviews or meetings, reviewing paperwork, and talking on the phone.

Your first thought—“It’s 3 o’clock in the afternoon; don’t these people work?”—quickly gave way to the realization that they are at work—just not in an ideal environment.

woman on computer

Lesson No. 1 for Your Coworking Space Business

Without realizing it, you just learned the first of four lessons in the types of customers to target for your coworking space business. Yes, they probably like coffee, and yes, they are serious about their work. But they have outgrown the tight quarters, placemat-sized tabletops, and especially the sound of an espresso machine screeching in the background while they try to read, write, talk, or listen as they conduct business.

Even if they are adept at zoning out background noise, the number of distractions at coffee shops can rival the number of coffee beans. To these diligent people, a functional and desirable coworking environment includes:

  • An attractive, roomy, and functional workspace
  • A reception area
  • Meeting rooms
  • Concierge-level services
  • A café

Lesson No. 2 for Your Coworking Space Business

These discerning workers represent one of the fastest-growing workplace phenomena of the last 20 years: the so-called independent worker. By 2020, 65 million Americans will belong to this work category, making up 40 percent of the workforce, according to the U.S. Bureau of Labor Statistics.

As they eschew the lonely confines of a home office and the noisy distractions of coffee shops, they are turning to shared workspaces, which offer the perks of a professional office environment without the drawbacks of a rigid power structure, set hours, and stuffy formalities. The number of shared workspaces is nearly doubling every year, and they serve an increasingly wide spectrum of workers, according to MBO Partners’ annual “State of Independence in America” report.

Lesson No. 3 for Your Coworking Space Business

The trend portends an exciting future for those aspiring to manage a coworking space business—as long as they drill down and learn who is included in that increasingly wide spectrum.

The U.S. Bureau of Labor Statistics places these workers in five categories:

  • Independent professionals and entrepreneurs
  • Freelancers
  • Remote workers and telecommuters
  • Temporary workers
  • A growing group known as “side-giggers,” or those who are employed in some capacity but take on other part-time, independent assignments

Lesson No. 4 for Your Coworking Space Business

These categories might not surprise you, but the demographics of people who gravitate to shared workspaces might. A 2015 study conducted by Emergent Research found that:

  • Their average age is 39
  • Only 20 percent are younger than 30, and 7 percent are older than 60
  • They are nearly split by gender, with men edging out women at 52 percent
  • Only 9 percent work for companies with more than 100 employees

These four lessons will be fundamental in your growth curve as you target customers for your coworking space business. You can count on the coworking experts at Venture X to complete your education with their comprehensive and world-class training programs. But you have to make the first move by phoning for a franchise consultation, perhaps right after you fuel your enthusiasm by ducking into your favorite coffee shop at midday.

Innovations in the Making: 4 Reasons to Invest in an Incubator Business

What Is an Incubator?

An incubator creates the perfect conditions for caring for its charge, so it should come as no surprise that an incubator business specializes in providing start-ups with the resources they need to ensure their success. As a result, incubators come in a wide range of forms to serve a wide range of clients, which provides would-be entrepreneurs with some tantalizing possibilities.

Here are four reasons that potential entrepreneurs should be interested in starting an incubator business:

woman saving money

High Demand

There are reasons to believe that incubators will become increasingly in demand for the foreseeable future, which in turn means lucrative opportunities for their owners. The technologies of the Digital Age have made it easier than ever for interested individuals to start their own businesses, meaning that more people are seizing such opportunities to become their own bosses.

At the same time, more employers are making the switch to temps, freelancers, and independent contractors. The U.S. Bureau of Labor Statistics predicts that 40 percent of the American workforce will fall into one of the four aforementioned categories by 2020. Combined, these factors ensure that incubators will have plenty of work and plenty of resources in the future.

High Reward

Successful incubators provide their owners with significant rewards. In part, this is because of the high demand for their products and services, which means a reliable stream of revenue. However, it should also be noted that incubators are associated with start-ups rather than businesses at other stages of the business life cycle, meaning that incubator owners have plenty of opportunities for capitalizing on these businesses’ high-risk, high-reward tendencies while minimizing the risk to their own revenue-earning operations.

Choice of Niche

Incubators tend to be specialized because the productive resources that can help businesses in one sector might not be useful for businesses in another sector. As a result, people who start an incubator business can choose their own niche of the market instead of competing with all of the other incubators out there, which is important for a couple of reasons.

First, this enables them to put their particular expertise and experience to excellent use, thereby making it easier for them to succeed. Second, this reduces their head-to-head competition with bigger and more established businesses, which is one of the leading causes of entrepreneurial failure.

Personal Fulfillment

Finally, it is important to note that a fair number of people receive an enormous sense of satisfaction from seeing a start-up prosper, so much so that some incubators are nonprofits. Regardless of whether their business is intended to earn a profit, incubator owners can count on being able to live up to their potential while helping others do the same, which can be important for those interested in the process of self-actualization.

Further Considerations

With that said, starting an incubator business comes with its share of challenges, so interested individuals should seek out further sources of support such as Venture X before reaching for their dream. Contact Venture X for more information about how you can realize your entrepreneurial dreams by opening an incubator business of your own.

Frequently Asked Questions About Opening a Startup Incubator

When the phrase “startup incubator” is bandied about in the office, there’s usually an equal mix of confusion and double takes coupled with knowing nods of assent. The concept, though, isn’t that hard to unpack if you take the words individually and see what they equal when combined.

startup incubator

How do startup incubators help entrepreneurs realize their ideas?

A startup incubator is a collaborative initiative—undertaken and sponsored by private and public sources—with the intent of facilitating startup success.

Typically referred to simply as “incubators,” these initiatives are designed to allow entrepreneurs the chance to more directly pursue their ideas without getting tied down with issues that prevent some startups from getting off the ground.

Incubators are frequently conducted and financially sponsored by business schools attached to universities, other academic institutions, and even private actors interested in solving a real-world or practical problem being researched by an entrepreneur.

Example: Instead of tackling global problems and providing an incubator for entrepreneurs seeking to mitigate the world’s energy issues through green energy, many incubators are regionally focused.

The latter might, for instance, sponsor entrepreneurs looking to curb local problems rather than those who are researching issues that have a broader, international scope.

What sorts of tangible services do incubators provide entrepreneurs?

Startups can face a lot of problems getting their ideas launched, and incubators have developed strategies over the years to help entrepreneurs overcome many of these early hurdles.

That’s why incubators provide two main services designed to water the seeds, so to speak, and allow entrepreneurs’ ideas to fully blossom. These two services are providing seed (i.e., startup) money to defray early equipment purchases, for instance, and providing workspace accommodations.

On the latter note, many entrepreneurs are following national trends and choosing to work in coworking spaces. Why? Because they typically allow for more synergistic collaboration among entrepreneurs in similar positions, as well as access to mentoring and brainstorming opportunities.

Do incubators offer more nitty-gritty skills to help out startups?

Startup incubators can provide entrepreneurs—depending on their position and prior experience—with business and management skills, presentation skills, e-commerce solutions, better access to private loans, strategic assistance, and help with regulatory compliance in the entrepreneur’s particular industry.

Startup incubators can also provide skills as qualitative as better business etiquette and as tangible as legal counsel. Other skills may include assistance with negotiating patent filings and understanding the nuanced intellectual property issues they may face in the future as they develop into industry rock stars.

Incubators, in summation, can connect entrepreneurs with a host of professionals from the fiscal and legal sectors to help their ideas grow into thriving organizations. Startup incubators work with accountants, lawyers, and venture capitalists who are eager to get in on the next big thing.

In what ways are startup incubators and startup accelerators different?

The terms “incubators” and “accelerators” are often used interchangeably in business and venture capital circles, but there are some distinct differences that entrepreneurs and franchisees in coworking environments should be aware of.

The difference between the two, essentially, is that accelerators are shorter in duration, typically much more selective, and focused more on mentorship, while accelerators seek to compress, say, two years of business acumen into three to six months—no small feat.

Startup incubators are a different animal, according to the Harvard Business Review. Incubators don’t center around cohorts or mentorship as much as accelerators do, and they take in a wider range of entrepreneurs at different stages of development.

If hosting seminars and overseeing entrepreneurs hard at work in a coworking space appeals to you, check this out.

Business Opportunities Abound: How to Start a Coworking Space

Coworking spaces make a lot of sense for startups and freelancers—and even for more established businesses. Workers have been granted greater autonomy almost across the board thanks to modern-day innovations like cloud computing, nationwide wireless networks, and social media.

You can expect productivity and workplace satisfaction to soar in these collaborative environments, which often create synergistic ideas and inspired networking opportunities that wouldn’t otherwise come to fruition.

The reason for this is that a coworking space allows for greater collaboration, predictable leases, and all of the amenities (and then some) that workers expect from a modern-day workplace environment.

Predictable memberships and leases that allow entrepreneurs and freelancers to expand as their businesses grow and their needs evolve are other unique benefits of coworking spaces.

how to start a coworking space

Starting Your Own Coworking Space

The first step to take when you’re considering opening your own coworking space is to ensure that there’s a local need for the service you’re getting ready to provide.

One way to do this is by contacting an established franchise’s area developers so that there’s no second guessing: You’re virtually guaranteed a fully utilized coworking space, since the demand has been found to be so high.

Research and Contact Local Businesses

Coworking spaces cater to a host of different clients: freelancers, temps, entrepreneurs, and independent contractors of all stripes.

The freedom to work anywhere at anytime has been catalyzed by cloud computing, mobile device usage, and the ability to network across social media and work networks.

Freedom, though, doesn’t mean isolation, as freelancers, entrepreneurs, and independent contractors can often create a synergistic effect by being allowed to network, brainstorm, mentor, and collaborate when in closer proximity, thanks to your coworking space.

You’ve probably caught on to a motif by now: All of this stuff has to do with people. That said, you’ll want to make sure that your coworking space is centered around a space that’s convenient—geographically, practically, and occupationally—and accessible to local freelancers and entrepreneurs.

Focus on Amenities and Functionality

Venture X offers coworking spaces that allow for organic (never forced) networking, collaboration, independent and group learning, and mentoring opportunities to naturally develop.

In other words, when Venture X offers up 24/7 meeting rooms, centralized cafes, online member networks for freelancers and entrepreneurs, and weekly educational events, your clients are receiving an engaging sweet spot that couples amenities with functionality.

One of the chief benefits to workers of operating within a coworking space is the luxury of not having to deal with basic workplace amenities. They’re already handled.

Things like wireless internet, receptionists, and phone lines (or hotspot cell phone signal boosters) are already taken care of in a coworking space, which takes a lot of pressure off startups and entrepreneurs.

Bundling all of these services together in a one-off membership cost greatly simplifies the process of shoring up a coworking space for mobile workforces.

Aside from offering basic amenities like concierge and always-open meeting rooms, you’ll also want to make sure that your coworking space is actually conducive to both private and collaborative work—whichever your clients prefer!

Venture X is a Turnkey Investment

While many investors might not be completely familiar with coworking spaces, there’s a good chance that they’ve at least seen an open workspace before and understand the trends that are driving the transition to a more mobile workforce.

Venture X capitalizes on those trends by offering investors the opportunity to offer functional yet engaging coworking spaces to local freelancers and entrepreneurs. It’s a turnkey franchise opportunity attuned to local workers and the future direction of business. For more information about how to start a coworking space, click here.

Put Your Investment Dollars to Good Use with an Office Franchise Opportunity

New findings from the U.S. Bureau of Labor Statistics and Freelancers Union indicate 53 million American workers and growing are freelancers.

Fifty-three million Americans is over one-third of the labor force in the United States, which shows that this country is entering a new phase of labor and labor management.

This new phase has been called the “gig” economy because it allows both employers and employees more flexibility when it comes to scheduling work.

Why the Gig Economy Is Worth Your Investment

More flexibility in hiring is fantastic news for freelancers since it provides more autonomy, and businesses are embracing the new model as well.

Over half of global executives say that they plan to deal with more freelancers over the next five years, which demonstrates a shift away from salaried workers and toward an independent contractor model.

Cloud-based platforms like freelance management systems help established businesses coordinate the work activities of the freelancers who increasingly make up their workforces. What about freelancers themselves, though?

Put Your Investment Dollars to Good Use with an Office Franchise Opportunity

The Future of Business

Collaborative workspaces for freelancers—or workers who are employed by different organizations and want a sense of organization and synergy—are getting more popular for a number of reasons.

Today’s workforce is more mobile than ever. According to the U.S. Bureau of Labor Statistics, the number of mobile workers will swell to 65 million Americans over the next four years. In a nutshell, that’s the future direction of business.

There are more freelancers, temps, and independent contractors like photographers and interpreters than ever before. Even entrepreneurs are sometimes considered part of this new mobile workforce.

Because there are more freelancers and entrepreneurs who could benefit from a conjoined workspace where they can choose to collaborate or pursue their own activities, there is an increased demand for coworking spaces.

Venture X and Thriving in Coworking Spaces

The Harvard Business Review found that freelancers and entrepreneurs working side by side in coworking spaces tended to show significantly higher productivity, more fruitful collaboration, and greater workplace satisfaction than salaried employees in ordinary offices. That Harvard study looked at coworking spaces that brought together freelancers, remote workers, and various independent contractors to find out why coworking spaces are so effective.

Studies show that coworking spaces are more positive work environments because the freelancers who come into work every day want to be there and are doing work that they’re passionate about.

You might have expected the latter because freelancers typically have the autonomy to choose the jobs that appeal to them. What you might not have expected is that diverse coworking spaces do away with work personas and other forms of efficiency-killing office politics.

This means that there’s far less stress around the office, more collaborative and genuinely helpful talk around the water cooler, and more efficiency since workers aren’t focused on promotions, demotions, and hearing things through the grapevine.

The Venture X Difference

Collaborative coworking spaces are giving freelancers and entrepreneurs more focus and a sense of community.

As an office franchise opportunity, Venture X is well positioned to capitalize on all of these benefits since it provides freelancers with membership-based open or private offices that they can secure for the length of a project or longer.

That kind of flexibility, coupled with unique benefits that Venture X offers (such as online networks, centralized cafe, 24/7 meeting room access, and concierge service), sets Venture X apart. Download a free franchise brochure here to learn more about this amazing office franchise opportunity.

3 Things to Know about a Coworking Space Business

For many, the days of working at home are a thing of the past. From having kids at home to rising rent that forces many to downsize, working from home is becoming more difficult. While many small business owners have moved to traditional retail or office space, many simply don’t need that much space or the high rent associated with an independent location.

More and more people are working as freelancers and independent contractors today, too. For these people, working at home isn’t always productive, even if it is possible. It’s also not the professional presentation many freelancers and self-employed people desire.

For these reasons, coworking space is becoming increasingly popular. If you’re interested in opening your own business and you have the skill set, investing in a coworking space business could be perfect for you.

3 Things to Know about a Coworking Space Business

You Need Business Knowledge

Investing in a coworking space business isn’t for everyone. While you are handling the bigger picture of the business, you will be hiring a Community Manager to perform the daily responsibilities that will help you with the day-to-day tasks.

You really need business experience to understand what other business owners are looking for. Quick learners could probably find their way to doing a good job over time, but without the knowledge you need from the start, even attracting clients could be difficult.

If you have some business experience, you’ll be able to anticipate your clients’ needs. Being able to do that can make you an exceptional coworking space business owner.

Being a People Person Helps

As a coworking space business owner, your main job will be attracting people to your coworking space. To do that, you’ll need to know what makes these spaces so attractive to small business owners, freelancers, and independent contractors.

Once you hire a Community Manager to handle the day-to-day operations and get people in the door, it’s important to make sure everybody is comfortable. That might include dealing with some interesting requests from people involved in a host of different industries.

To be an excellent coworking space business owner, you should enjoy spending time around people and helping them out, even though the Community Manager will be interacting the most with the customers. After all, coworking spaces are designed to help various business types take care of day-to-day needs with ease, efficiency, and a little bit of fun.

Putting Out Fires

One of the most difficult things about investing in a coworking space business is making sure you hire a great Community Manager that is able to anticipate the needs of every person who pays to be there each month. Doing this isn’t something everybody is naturally good at.

Being a people person can help you, as can knowing your way around the business world in general. If you’re not good at problem solving and thinking on your feet, though, this may not be the ideal business for you.

When you or the Community Manager you hire is working with small business owners, freelancers, and independent contractors, time is often of the essence. For them, a conflict or something going wrong in their space could cost them business.

If you’re going to be an exceptional coworking space investor, finding a Community Manager who has the ability to multitask and put out fires before they burn down the house is essential. That’s why problem solvers and quick thinkers are ideal candidates for running a coworking business space.

Are you interested in learning more about investing in a coworking space business with Venture X? Then visit our website today for more information!