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Coworking Space Business Plan

If you are planning to write the Coworking Space business plan on your own, then this sample Coworking Space business plan can be great for guidance. However, if you are looking for a professional business plan writer for a business loan, SBA loan or to find out the possibility of success for your new business then let’s talk!  

Executive Summary

Overview: Quarters Coworking Space was created for entrepreneurs who are similar to us: inquisitive, hardworking, and friendly. People who want to concentrate on producing fantastic, creative goods and enterprises without having to worry about rent, power, or coffee. Quarters Coworking Space strives to create the best working environment possible, with a focus on work-life balance. We put in a lot of effort at work, and we put in even more effort while we’re playing. Working from home is lonely, working in a café is too loud, and purchasing your own office and furniture puts too much strain on your financial flow. If you and your team are experiencing any of the issues listed above, a coworking space is a great option.

Mission: Provide high-quality workplaces for organizations of all sizes in order to promote healthy lives and, as a result, improve productivity. To help enterprises, get off the ground, provide competitively priced and completely serviced workspace. Educate the public about the advantages of coworking spaces and the concept of leveraging surplus in the shared economy.

Vision: Quarters Coworking Space aspires to be the leading service provider of serviced office spaces for new and existing enterprises, using the market’s abundance to build a community-based work environment for its members.

Industry Overview: The global coworking space market research study provides an in-depth look at the industry’s leading players as well as the industry’s competitive landscape in the future. Our specialists’ Coworking Space market report is a thorough examination of the industry’s growth, shares, and revenue potential in the past and future, as well as problems and opportunities. The research also offers extensive segmentation by product type, application, geographical regions, nations with potential for growth, and hazards in these areas.

Financial Overview:

Coworking Space business plan financial overview

Financials is one of the most important sections of a Coworking Space business plan. You can get an idea of your projected revenue, required investment amount, is the business sustainable without additional funding, etc.

Financial Highlights:

  Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency
Interest coverage ratio8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Use of Funds:

Coworking Space Business Plan investment Capex

Industry Analysis

The industry analysis section of the Coworking Space  business plan will help you get better insights into competitors, market growth, and overall industry prospects. You can order a custom market research report for your Coworking Space business.

The coworking and flexible office industries have steadied this fall as an increasing number of people return to work following months of working from home. The end of the year saw increased coworking costs and continuous demand for private offices, conference rooms, virtual offices, and hot desks in flexible workplaces throughout the globe, with more sites opening than shutting for the first time since the COVID-19 epidemic started.

With a compound annual growth rate (CAGR) of 18.9%, the worldwide coworking space market is predicted to rise from $13.60 billion in 2021 to $16.17 billion in 2022. Companies are restarting operations and adjusting to the new normal as a consequence of the COVID-19 effect, which had previously resulted in stringent confinement measures such as social distance, remote working, and the cessation of commercial activities, all of which created operational issues. At a CAGR of 17.0 percent, the market for coworking spaces is estimated to reach $30.36 billion by 2026.

While COVID-19 slowed the industry’s development in practically every area of the globe, the industry’s growth rate is now predicted to accelerate from 2022 onwards. This forecast is based on the fact that fresh demand from business customers is still growing, and coworking networks are expanding into new hub-and-spoke locations.

Open/traditional coworking spaces, corporate/professional coworking spaces, and other sorts of businesses are the most common in coworking spaces. Tenants that are more corporate or professional use the corporate/professional coworking space. It will be less expensive than a high-end location, and it will have a quiet, personal, and professional atmosphere, softer lighting, and lower energy use than other sorts of rooms. Enterprises, freelancers, and others are among the diverse users, and it is utilized in a variety of industries, including banking, legal services, marketing, technology, real estate, consulting services, and so on.

Coworking Space Business Plan Industry Analysis

The worldwide expansion in the number of start-ups has a significant impact on the coworking space industry. In 2019, the global start-up industry was valued $ 3 trillion, according to a report published by thegeniuswork.com in October 2019. The extension of internet space, exposure to entrepreneurial expertise outside of the country’s borders, and better literacy rates are all contributing to the country’s prosperity. Apart from that, advanced manufacturing and robotics, agricultural technology and novel food, blockchain, artificial intelligence, big data, and analytics were the fastest expanding start-up sub-sectors worldwide. As a result, the rising number of startups in different sectors throughout the world raised demand for coworking spaces, propelling the market forward over the projected period.

The COVID-19 lockout is limiting market expansion by increasing the number of individuals working from home or remotely. For example, due to the COVID-19 epidemic, many businesses were forced to work from home in March 2020, and coworking space owners saw a nearly 50% drop in foot traffic. Furthermore, according to a report published in April 2020 by Business 2 Community, the number of individuals working remotely has increased by 44% in the previous five years, with 7 million people (3.4 percent of the population) working remotely in the United States prior to the entrance of COVID-19. Despite this, due to the coronavirus epidemic over the previous several months, the number of persons working remotely has skyrocketed.

Coworking Space business plan industry analysis

While working on the industry analysis section of the Coworking Space business plan make sure that you add significant number of stats to support your claims and use proper referencing so that your lender can validate the data.

Following a cautious 2020, demand in 2021 is expected to rise gradually. This statistic indicates that demand is close to pre-pandemic levels, since it has been slowly increasing since 2019, after an abrupt stop in 2020, and demand for certain coworking services, such as private offices or meeting spaces, has also fluctuated year over year.

Between 2020 and 2021, the worldwide average monthly workstation price increased by 2.73 percent, from $183 to $189 per month. This shift reflects the maturing of coworking marketplaces, with demand from corporate customers increasing during COVID-19 and many locations seeing increased rivalry to attract remote workers.

Companies big and small are increasingly embracing a flexible or hybrid work style as the conventional office model becomes less accepted in the aftermath of the COVID-19 epidemic, which caused a massive change in the way we work. The rise of satellite offices and localized workplaces will be one of the most noticeable developments in the coworking market in 2022. The hub-and-spoke model, in which corporations maintain a primary headquarters in an urban environment as well as suburban “spoke” offices closer to workers’ homes, has already grown in popularity in the sector.

Marketing Plan

A key part of the marketing plan in a Coworking Space business plan is the marketing budget. The growth in the number of customers is proportional to the budget and dependent on the CAC.

 

Coworking Space business plan promotional budget

Content Marketing: Create a blog on your Quarters Coworking Space website that has material that prospective coworking members would be interested in, as well as tips and techniques, and you must understand what your target audience wants from a space and what sets your space different from others.

Discounts: Provide multiple rewards or incentives to Quarters Coworking Space members, you’ll be more likely to attract them. Create a member referral scheme, for example, where members get a discount on rent or membership costs if they successfully recommend someone.

Social Media: Engage and promote Quarters Coworking Space members on Twitter, publish news on Facebook, and utilize Instagram to promote curated photos of your space and events. Think about if you have place in your budget for Facebook Marketing or other social media focused ads.

SEO (Search Engine Optimization) Local SEO makes it easier for local consumers to find out what you have to offer and creates trust with potential members seeking for what your place has to offer.


Email Marketing: Quarters Coworking Space will be sending an automated in-product and website communications to reach out to consumers at the right time. Remember that if your client or target views your email to be really important, they are more likely to forward it or share it with others, so be sure to include social media share buttons in every email.

Organogram:

Coworking Space business plan organogram

Financial Plan

This section of the Coworking Space business plan helps your lender figure out whether you will be able to pay off the loan, whether the business is sustainable, what are the growth prospects, etc.

Earnings: 

Coworking Space Business Plan Financial Plan

Break-Even Analysis:

Coworking Space business plan financial plan

Income Statement

Balance Sheet: 

2020A2021A2022F2023F2024F
ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918
      

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
CASH FLOW from INVESTING ACTIVITIES
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
       
CASH FLOW from FINANCING ACTIVITIES
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet: 

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
      
      
CURRENT ASSETS
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
        LIABILITIES
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
EQUITIES
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122