> How did you determine the square footage you would need > We worked "backwards" from a real estate model and focused on a membership model - we knew how many members at certain price points we were going to have, and had estimates of how those memberships might grow. We also knew the general vicinity of where people wanted to gather.
By taking # of people we had at each price point X $ at each price point, we were able to determine how much rent we could sustain out of the gate. Our growth estimates gave us an idea of what that number might be in 3, 6, and 12 months. Our numbers put us at a comfortable sustaining of $2k/month rent inside of 3 months. So the goal became to find something that was ~$2k, provided enough room for the people we already found + room for growth. That was looking to be ~2000 square feet We knew the neighborhood, so we also knew the approx local cost per square foot. We were able to start searching - with the assistance of our prospective members - for $2k spaces ~2000 square feet. 2 years later we grew into a space 3x the size, and the basic same math was applied - here's how many memberships at each level will bring us a certain amount of revenue, here's how much space we need, here's where they intersect - let's look for spaces in that intersection. Did you have to have signed membership agreements to get financing > We had signed membership agreements and accepted membership payments for up to 6 months of prepay to give us cash in the bank & runway. We opened with zero external financing. $10k of my own money + ~$5k in upfront membership dues. > How did you do market research > Go outside. Talk to people. Especially people behind laptops who are by themselves. Find out what's great about their work life, find out what sucks. Look for patterns. Fill gaps. > and get numbers to model business projections > Start with finding your membership before you worry about space, those numbers will hand themselves over to you. How did you determine your price points, ect... > Talk to those prospective members - try to determine how much do they think you'll want to be at the coworking space (ask how often they work outside of their house already) What other memberships or business products do they for? Get a feel for their spending patterns - present options for price points before they're set in stone to get feedback. Never be afraid to adjust. Most importantly, look *past* what they say for examples of what they *do*. That's the source of quality market research information. > > Ideally we'd love to talk with a few of you by phone to get a better > understanding. If you wouldn't mind us speaking with you about this, please > email me your phone number to [email protected]. If not, you can just > respond to this thread. > > Thanks so much, > > Mathis Young > > -- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/coworking?hl=en. > -- You received this message because you are subscribed to the Google Groups "Coworking" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/coworking?hl=en.
