Can Coworking Spaces be Profitable Businesses, and How?

Co-working spaces are sprouting up rapidly in the business world, allowing different size businesses to gain the benefit of acquiring professional space without bearing the overhead expenses. But are these co-working spaces making any profits? Of course, they are, and that’s why you can see a new co-working space coming into existence every other day. 

In just two and a half years, India is booming with co-working spaces. The trend of the shared working space emerged from the needs of individuals seeking a professional space to startup their business at the least cost possible. For most of the Coworking space in Faridabad, it’s more like a real-estate game, where the winner is one who can shift from the traditional mindset of owning an office space to investing in co-working ones for saving money.

In the world of co-working spaces, the profits begin when you are able to deliver an ecosystem that helps different businesses work in harmony and boost their productivity. The shared office spaces are the next big thing in the market, where organizations are open to the idea of working collectively with other organizations and helping each other grow and gain success. But, if you are still skeptical about whether the co-working spaces will be a profitable business or not, this article will help you clear all your doubts. 

Before moving on to see how co-working spaces can make profits, let’s put the spotlight on their exact definition.

What are co-working spaces?

Co-working spaces are a shared office or building where startups, freelancers, entrepreneurs, developers, businesses, and teams meet to work independently. The shared workplace environment also provides them the opportunity to socialize and collaborate on projects. They are more than just offices, but places where networking begins and people can work with ease.

Co-working spaces have become the hubs of social buzz and are generating great revenues. At present, the shared economy concept has become a profitable business model. 

Co-working Concept: An idea of making more profits

The co-working spaces in Faridabad are available in different layouts that help them serve the needs of different sized organizations perfectly and add more profits to their revenues. To help you gain a better understanding, we are breaking down the layouts into three:

• Open space co-working: In this layout, the shared workplace offers open desks, lounges, and occasional conference rooms to members. Freelancers, small-size enterprises, and Startups get the option to purchase their dedicated desk to work in harmony and boost their productivity. People are more likely to go for open co-working spaces as it helps them work peacefully at the least cost possible.
• Shared office: This layout is perfect for smaller organizations as it consists of dedicated lockable offices with a limited common area. Companies who want privacy while working can go for shared office space.
• Coworking & Office Space: Some organizations are not in favor of the idea of working in an open area with other entrepreneurs. They have strict rules or legal regulations that they have to follow while working. To meet the needs of such organizations, the co-working offices offer them their own dedicated lockable spaces.

You can find coworking space near me, offering all three layouts to help different organizations get a space where they can work with passion and dedication and achieve optimal growth. As co-working spaces are speedily getting occupied by several organizations, they are on the verge of becoming the next big thing in the market.

Ways to generate more revenue through co-working spaces

Membership fees

Co-working spaces offer several membership plans to customers so that they can choose the one that fits their needs. These plans are made, considering the diverse requirements of organizations and including offers ranging from private offices to open space membership. The fees drawn from the plans are the most obvious form of revenue that the shared office spaces generate.

Amenities rent

Along with the membership plans, you can upsell more resources to your members. For instance, you can include amenities like conference rooms in higher packages to have more premium customers. Adding more amenities in your packages, you can drastically boost your profit margins.

Customized co-working

Not all the organizations approaching you need to have requirements that fit in any of your plans. That’s why offering customized plans will provide you a way to cater to your clients’ diverse requirements. With more organizations settling in your co-working space, the more revenue you can generate.

Conclusion

Co-working spaces have provided several advantages to all size businesses. They do not hold people in long contacts or charge more than necessary. This is why the popularity of co-working spaces have reached off-limits. The collaborative environment of shared workplaces is appreciated and open the doors to networking for organizations working there. 

This thing helps us to answer the question – Are co-working spaces profitable? The answer is yes, with 72% of coworking spaces becoming profitable after two years in operation. If they are privately run, the rate is even higher.