Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
- Creating and maintaining a sense of community among diverse members is crucial but challenging.
- Ensuring steady income can be difficult due to fluctuating membership and varying demand.
- Handling day-to-day operations, including IT infrastructure and space management, requires meticulous planning and execution.
Coworking spaces have become an increasingly popular business model for office owners, offering freelancers, remote workers and startups a flexible and collaborative environment to work in.
On the surface, running a coworking space may seem like an easy and profitable venture. However, there are many challenges that are rarely discussed.
Here are some things people won’t tell you about running a coworking space.
The Overhead Costs Can Be Overwhelming
While a coworking space may generate recurring revenue through membership fees, the costs of maintaining the space can be significant. Rent, utilities, internet, cleaning services and office supplies all add up quickly.
Additionally, the initial investment in furniture, decor and branding can be substantial. Many coworking space owners underestimate these costs and find themselves struggling to stay afloat.
It Takes More Than Just a Cool Space
Creating a stylish, Instagram-worthy workspace might attract people initially, but what truly retains members is the sense of community and productivity. Without engaging events, networking opportunities and an overall welcoming environment, people may come once and never return.
Coworking spaces thrive on building a strong community, and this requires constant effort and creativity.
Member Retention is a Challenge
Many people assume that once a coworking space gains members, they will stay long-term. However, due to the transient nature of freelancers and startups, turnover can be high. Members may leave because of financial constraints, business growth or simply finding another space that better suits their needs.
To sustain a coworking business, continuous marketing, incentives and community-building efforts are necessary.
Handling Conflicts is Part of the Job
Coworking spaces bring together individuals from diverse backgrounds, professions and work styles. This can lead to conflicts over shared resources, noise levels or even personality clashes.
As an owner or manager, mediating disputes and ensuring a harmonious work environment becomes a crucial part of the job.
Internet and Tech Issues Can Make or Break You
One of the biggest deal-breakers for coworking members is unreliable internet. If your Wi-Fi is slow or frequently disconnects, you will quickly lose members. Additionally, technical support for printers, meeting room projectors and other office tech is essential.
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Many coworking space owners underestimate the importance of having a robust IT setup and backup solutions.
Marketing Never Stops
Just because a coworking space is open doesn’t mean people will automatically come. Marketing is a continuous process, requiring social media engagement, partnerships with local businesses, online advertisements and word-of-mouth referrals.
A lack of consistent marketing efforts can lead to an empty space, regardless of how well-designed or functional it is.
Managing Expectations is Difficult
Every coworking member has different expectations — some want complete silence, while others prefer a lively, collaborative environment. Balancing these needs is tricky, and no matter what, some people will be dissatisfied. Having clear policies, designated quiet areas and open communication can help manage expectations more effectively.
COVID-19 Changed the Game
The pandemic forced many coworking spaces to close temporarily, and even after reopening, hygiene protocols, spacing requirements and remote work preferences have changed how people use shared spaces. Many businesses now offer hybrid work models, reducing the demand for coworking memberships. Adapting to these changes is essential for long-term survival.
Flexibility is Key
A coworking space that refuses to evolve will struggle to stay relevant. Offering flexible membership plans, accommodating different work styles and adjusting amenities based on member feedback are all necessary to remain competitive.
Some coworking spaces even pivot to niche markets, such as female-only coworking spaces or creative hubs, to stand out from the competition.
Conclusion
Running a coworking space is much more than leasing a stylish office and expecting people to show up. It requires dedication, financial planning, marketing skills and strong interpersonal abilities.
If you’re considering starting a coworking space, be prepared for the challenges, but also recognize the rewarding experience of fostering a thriving, collaborative environment. With the right approach, your coworking space can become a hub of innovation and success.
Click below to find out how Yardi Kube coworking software can help you manage a thriving coworking space.
