I think the key is to grow a nice community around the space. I think Chad has a point when he says there should be a 'giving back' that can be maybe in creating events, parties or courses to be held inside the space with some of the revenue going to pay the bills. Of course there's a need to have some cash in the bank for tough times or maybe even an 'insurance policy' if any of the members fails to pay one month because his business is down then that small cash can cover for him for a month or so. The idea is to have people come and enjoy, so they stay and make it a "doing life together". That's really important because if the place is the home for a community it's less likely people will let it die. That of course needs involvement from everyone.
Jorge On Aug 21, 10:37 am, Chad Ballantyne <[email protected]> wrote: > Not thinking co-op - that is, members pay in to get cash out. I'm > saying philosophically, all members should help with the > sustainability in ways that still directly effect the spaces bottom > line. If you're going to do a class on photography - use the space > instead of some other place. Bring in more members, etc. These > spaces provide more than just real-estate, we all have seen it's > benefit to our companies. Almost all co-work spaces tout the fact > that companies come and grow as part of the space. all I'm saying is > - give back to the people and resources that feed you. The ROI > happens in reverse. You benefit, then you give, at least you should. > It would be different if the members we're paying super high rates and > then expecting more in return for their fees. For most, they pay > minimal, cover cost only and thus the sustainability journey becomes > more like a tight rope than a path. One bad move and you fall! These > spaces should flourish, not flounder - if the ethos of the community > is "givers gain" - I think more of these spaces will go beyond > sustainability to profitability and we all win. > > On 21-Aug-09, at 11:24 AM, Jerome Chang wrote: > > > > > > > That would be a co-op, which is not necessarily how a coworking > > space needs to be financially structured. > > > Jerome > > ______________ > > BLANKSPACES > > "work wide open" > > >www.blankspaces.com > > 5405 Wilshire Blvd (2 blocks west of La Brea) > > Los Angeles, CA 90036 > > 323.330.9505 (office) > > > On Aug 21, 2009, at 8:15 AM, Chad Ballantyne wrote: > > >> We're still realy young in our progress, but I will offer > >> this....The co-work model as we see it is working with professional > >> people you like to work with, in a cool space, creating "things" > >> that make a difference in the community and the world, supporting a > >> responsible lifestyle and building community along the way. Or as > >> I've always said, "doing life together." The sustainability of the > >> space should be directly related to the profitability of the > >> members, I think. As each business grows and becomes more > >> successful due to great networks, resources and relationships, they > >> should intern give back to the "Mother" who gave birth to it all in > >> the first place. (I feel an illustration/word picture coming!!) > >> I'd like to see the rates stay consistent along the way, but > >> encourage the members to join in the marketing efforts to bring in > >> more members, to push people towards renting spaces, to develop > >> classes and clinics where they pay a percentage to the space for > >> rent and investment. The more the space "works" the more work > >> comes in, the more profit for the members and the space grows, thus > >> continuing to offer it's sustaining milk to all who suckle at it's > >> life-giving breasts!! See I told you it was coming!! > > >> Chad > >>www.thecreativespace.ca > > >> On 21-Aug-09, at 12:15 AM, jjaime wrote: > > >>> Working on the Lima, Peru Coworking space has made me think of how > >>> many possible options are to make a space self sustainable. > >>> So far I see that there's probably no right business model for a > >>> space, but just to think of ideas to make some cash along the way to > >>> keep the space open. For me the decission to open a Coworking > >>> Space is > >>> not to make a profit or money, but to start integrating the design, > >>> consulting and tech community here in Lima, as Tara points out is > >>> not > >>> about the money economics. But I surely want the space to be self > >>> sustainable and right now I'm brainstorming (alongside with my > >>> Coworking and Business Partners) ways in which the space can get > >>> some > >>> cash in order to have a couple of months of spare cash for the tough > >>> times. But like Alex Hillman said in his blog post and comment on > >>> other discussion here: there needs to be case studies in order to > >>> know > >>> what to do or at least use as a guide. > > >>> For me what's most important in a Coworking space is the Passion > >>> that > >>> you put to build it and to promote it and make it sustainable. It's > >>> like a 'small business' in some form, you need to be there and > >>> hustle > >>> for sponsorhips, donations, memberships and work out a model that > >>> will > >>> work. That passion and higher purpose will make a space happen, not > >>> because of the money, but because you're creating a space for > >>> sharing > >>> ideas, thoughts, debates and learning. And also because you're > >>> innovating in the way freelancers and small teams work giving people > >>> and new approach to freelance-independent work. > > >>> Jorge Jaime > > >>> On Aug 20, 9:06 pm, Tara Hunt <[email protected]> wrote: > >>>> For me it has less to do with the money economics (CS has been > >>>> more of a > >>>> money suck than a money maker over the years) and more with the > >>>> social > >>>> economics. Coworking as a movement has been personally rewarding > >>>> for me as > >>>> has being part of Citizen Space. I meet all sorts of cool people, > >>>> get to > >>>> give back to my community and take pride in watching a movement > >>>> grow over > >>>> the world. > >>>> That's worth more than money to me...and I have a feeling that > >>>> many others > >>>> who are part of coworking are probably in it for the social and > >>>> personal > >>>> benefits over the monetary benefits. But I could be projecting... > > >>>> Tara > > >>>> p.s. Interesting to note that Bill and Dane sold Workspace a year > >>>> ago to > >>>> someone else who hasn't really reached out to the coworking > >>>> community like > >>>> Bill and Dane used to. I > >>>> haven't met Jayson nor his wife and hadn't stopped by Workspace > >>>> since > >>>> the transition. > > >>>> On Thu, Aug 20, 2009 at 9:30 PM, Christian <[email protected]> > >>>> wrote: > > >>>>> Having read about the impending closure of Workspace, I wanted to > >>>>> start a dialogue regarding the sustainability of coworking > >>>>> spaces. The > >>>>> reality for most coworking spaces is that the space itself does > >>>>> not > >>>>> provide reasonable income for the space owner. The situation for > >>>>> most > >>>>> spaces seems to be that either the space is a break even or > >>>>> slightly > >>>>> above water venture used as a primary office for the owners > >>>>> work, or > >>>>> the space is one that the owner would have occupied regardless > >>>>> of the > >>>>> other users, and coworking is a means of giving back and > >>>>> creating a > >>>>> beneficial environment while recouping some of the expenses you > >>>>> would > >>>>> have had anyway. > > >>>>> So, the real question is, can coworking BE a reasonable profit > >>>>> business. Do you think the business model allows for sustainable > >>>>> profit? If your design or programming firm begins to hemorrhage > >>>>> clients due to economic conditions, will your coworking space be > >>>>> sustainable? If you have a sustainable model, or are even making > >>>>> your > >>>>> living from the space itself, what are your suggestions for > >>>>> those that > >>>>> are not? > > >>>>> It seems to me that there IS an economic tipping point, where the > >>>>> expense of the space for the member is too much to justify the > >>>>> benefit > >>>>> of the space. How do we begin to gauge this? It will be > >>>>> different for > >>>>> all areas, certainly, but do you feel there are economic or > >>>>> activity > >>>>> indicators that can serve as a warning to a space owner that > >>>>> they are > >>>>> approaching a cost-benefit switch? > > >>>>> And I suppose the last question is, should we worry about it? Is > >>>>> the > >>>>> situation for Workspace unique enough that coworking as a whole > >>>>> will > >>>>> be free of impact from it? > > >>>> -- > >>>> tara 'missrogue' hunt > > >>>> Book: The Whuffie Factor (http://www.thewhuffiefactor.com) > >>>> Blog: HorsePigCow: Marketing Uncommon (http://horsepigcow.com) > >>>> Twitter:http://www.twitter.com/missrogue > >>>> phone: 514-679-2951 > > >> <rhubarblogo2.jpg> > > >> Chad Ballantyne > >> 705.252.2423 > >> [email protected] > >>www.rhubarbmedia.ca > > >> ü Please consider the environment before printing this email. > > Chad Ballantyne > 705.252.2423 > [email protected] > > ü Please consider the environment before printing this email. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Coworking" group. 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