How Profitable Are Coworking Spaces?
Coworking spaces work on different business principles from other companies. Most of them don’t hide their prices, nor do they lock people into long contracts. But can we realistically describe coworking as “succesful” when only 40% of spaces are currently profitable? The answer is yes – when you take into account some simple factors. Especially time: 72% of all coworking spaces become profitable after two years in operation.
The birth of coworking spaces
The coworking movement has roughly doubled in size each year since 2006. The latest Deskmag survey shows there are now more than 1100 spaces worldwide. But how much does it cost to open a coworking space? Where do founders get their money? And how many founders are needed to start a space? The second part of our Global Coworking Survey series starts at the very beginning – opening a coworking space.
Is coworking the new incubator?
The concept of the business incubator was born in an old factory divided up to house many small companies, including a chicken hatchery. Today incubators are facing challenges, especially those that exist on public funds. Their closed-door approach is contrasted with coworking’s open attitude. Does coworking now introduce a policy of openness to incubators? Or do coworking spaces even pose a threat to the concept of business incubation?
Five big myths about coworking
As a concept, coworking emerged in the late 1990s among the tech crowd. In the wake of dot-com bust, the idea sputtered and lost its footing. Then, around 2005, it was revived by Brad Neuberg. But over the last couple of years, coworking has evolved and matured. Here we tackle and debunk five myths about coworking to show how much it has changed and is redefining how we work.