As a follow up to a question you DIDN'T ask (I think we need a coworking Rarely Asked Questions as much as we need a coworking Frequently Asked Questions):
You and your buddy should think hard about what you want to accomplish with the coworking space, and try to make that story something that others in memphis can write themselves into. It's an extremely effective way to kickstart that member research, because a story with a mission that others can participate in is a honeypot for more people like you. As an example of what I'm talking about, IndyHall's original battle cry was "Because working alone sucks". People who agreed, latched on. But once we were no longer working alone, we needed a stronger positive statement. We operate on the core mission of *making Philadelphia* *a better place to make a living doing what you love.* The group that self selects alignment with this mission is an amazing group to be surrounded by. And, it's not limited to "members". It's helped us align with local businesses, universities, organizations - even city hall - because they know what our "higher purpose" is and that it's something they want to contribute to. The "higher purpose" of your new business might not come right away. But seeking it should start now, if it hasn't already. Even the process of discovering it is a very useful and healthy process to go through in determining what your priorities are, something that makes decision making * so* much easier down the road. -Alex /ah indyhall.org coworking in philadelphia On Thu, Aug 4, 2011 at 9:48 AM, Alex Hillman <[email protected]>wrote: > > >> 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.
