Introduction

Thanks for downloading our free coworking space business model template!
Since 2007, we've been helping people build coworking spaces all over the world,
and we love every minute. One of the most requested things people ask for when
opening a space is a business model, and for good reason: this is still a pretty
new kind of business!

In this document, we'll walk you through a typical coworking space model. You'll
be able to customize this as you need; every space is different!

Notes

Copy this spreadsheet to edit it! Go to File --> Make a copy...

This was designed with a 7,500 sq. ft. space at $20,000/mo rent in mind.
These numbers will of course vary very widely depending on what your market
looks like, so after getting familiar with this sheet you'll need to adjust the
assumptions for costs and membership rates accordingly.
Numbers in black can be changed.
The formulas will update automatically.
This model does not account for up-front startup and buildout costs.
These must be accounted for separately, which you can easily do in our premium
edition.
Read the notes in the first column of "Income & Expenses."
These notes explain a lot about the different categories.
While working on this, do some research into sustainable models for
coworking spaces.
I've got a guide to help you get started here:

Sustainable models for coworking spaces

For the premium version, including a capacity calculator, member pre-payments,

5- and 10-year forecasts, capital costs estimator, sponsorship templates,
business plan templates and more, upgrade to our premium package:

Buy the premium package!

New Work Cities. If you'd like to share, redistribute, or sell this or any of our
other materials, talk to us about it first!
 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Income
Membership [1]
Full Time
Rate $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Qty 10 15 20 30 30 30 30 30 30 30 30 30
Total $5,000 $7,500 $10,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $157,500
Part-Time
Rate $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Qty 10 15 20 30 30 30 30 30 30 30 30 30
Total $2,500 $3,750 $5,000 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $78,750
Basic
Rate $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Qty 10 15 20 30 40 50 50 50 50 50 50 50
Total $300 $450 $600 $900 $1,200 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $13,950
Day pass
Rate $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Qty 10 15 20 20 20 20 20 20 20 20 20 20
Total $300 $450 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $6,750
Net member increase 30 15 15 30 10 10 0 0 0 0 0 0
Net income increase $8,100 $4,050 $4,050 $7,800 $300 $300 $0 $0 $0 $0 $0 $0
Total members 30 45 60 90 100 110 110 110 110 110 110 110
Total membership $8,100 $12,150 $16,200 $24,000 $24,300 $24,600 $24,600 $24,600 $24,600 $24,600 $24,600 $24,600 $256,950
Private Offices [2]
Large office [3]
Rate $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Qty 1 1 1 1 1 1 1 1 1 1 1 1 12
Total $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000
Medium office
Rate $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Qty 1 1 1 1 1 1 1 1 1 1 1 1 12
Total $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000
 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Small office
Rate $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Qty 1 2 2 2 2 2 2 2 2 2 2 2 23
Total $1,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $23,000
Meeting room rental
[4]
Rate $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Qty 0 0 0 0 0 0 0 0 0 0 0 0 0
Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Scholarship
Rate $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Qty 0 5 0 0 0 0 0 0 0 0 0 0 5
Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total offices $3,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $47,000
Sponsorships [5]
Institutional partners
Rate $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Qty 1 0 0 0 0 0 0 0 0 0 0 0 1
Total $20,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $20,000
Programming
partners
Rate $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Qty 2 0 0 0 0 1 0 0 0 0 0 0 3
Total $20,000 $0 $0 $0 $0 $10,000 $0 $0 $0 $0 $0 $0 $30,000
Total sponsorships $40,000 $0 $0 $0 $0 $10,000 $0 $0 $0 $0 $0 $0 $50,000
Events [6]
Internal programming
[7]
Rate $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Qty 8 8 8 8 8 8 8 8 8 8 8 8 96
Total $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $9,600
Classes [8]
 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Rate $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Qty 8 8 8 8 8 8 8 8 8 8 8 8 96
Total $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $28,800
Event rental [9]
Rate $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Qty 2 2 2 2 2 2 2 2 2 2 2 2 24
Total $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000
Total events [10] $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $50,400
Total income $55,300 $20,350 $24,400 $32,200 $32,500 $42,800 $32,800 $32,800 $32,800 $32,800 $32,800 $32,800 $404,350
Expenses
Staff [11]
Director $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Space Captain $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Accountant $0 $0 $300 $0 $0 $0 $0 $0 $0 $0 $0 $0
Facilities
Rent $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $240,000
Insurance [12] $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Internet $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Electricity $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Phone & fax $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Cleaning & trash removal $320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320
Fax/copier lease $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Office supplies $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Toner $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Snacks $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Misc Expenses $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Software [13]
Web hosting $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10
Spotify $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10
Pandora $49 $49 $49 $49 $49 $49 $49 $49 $49 $49 $49 $49
Noun Project $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10
 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Quickbooks $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10
Marketing [14]
Business cards $100 $0 $0 $0 $0 $100 $0 $0 $0 $0 $0 $0
Postcards $200 $0 $0 $0 $0 $200 $0 $0 $0 $0 $0 $0
Flyers $100 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Tee shirts $500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mugs $300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Finances [15]
Loan repayment $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total expenses $32,509 $30,309 $30,609 $30,309 $30,309 $30,609 $30,309 $30,309 $30,309 $30,309 $30,309 $30,309 $366,508
Totals
Total income $55,300 $20,350 $24,400 $32,200 $32,500 $42,800 $32,800 $32,800 $32,800 $32,800 $32,800 $32,800 $404,350
Total expenses $32,509 $30,309 $30,609 $30,309 $30,309 $30,609 $30,309 $30,309 $30,309 $30,309 $30,309 $30,309 $366,508
Net Profit $22,791 -$9,959 -$6,209 $1,891 $2,191 $12,191 $2,491 $2,491 $2,491 $2,491 $2,491 $2,491 $37,842
Cash on hand $22,791 $12,832 $6,623 $8,514 $10,705 $22,896 $25,387 $27,878 $30,369 $32,860 $35,351 $37,842 $37,842
Variations
There are several sustianable models for a coworking space; below are some variations you
may consider.

Model Description

Office-driven

Perhaps the most well-proven sustainable model for coworking spaces focuses on an
increase in private offices.
While the offices themselves may not contribute to the ethos that makes coworking special,
people who want access to a great community while still having an opportunity for privacy
and storage are shown to pay a premium for the privilege.
For this model, substantially increase square footage (20,000 sq ft or much more), and plan
for a majority of the rentable space to be allocated for office rental. Place special emphasis
on the approach to recruiting great tenants whose cultures are aligned. Look for any
opportunity to integrate their interests with those of the community.

Education-driven

The need for new programming focused on technology, design, and entrepreneurship is
enormous. Millions of people must learn how to shift from dependent employment to
independent work over the next few decades, ensuring the need for education will do
nothing but go up for the forseeable future.
Developing educational programming is no small taskit can be very labor intensive. It
involves developing curricula, recruiting, training, and managing teachers, and a substantial
increase in marketing costs. While a coworking space may only need to focus on a relatively
small number of monthly members, educational programs require hundreds if not thousands
of people to pass through the space every month.
For this model, consider partnering with existing educational providers who may be looking
for a space partner. Recruit from within the community and from active local Meetup groups
as much as possible to give yourself the best possible starting point.

Agency shared space

Creative agencies and coworking spaces have proven to be terrifically symbiotic. The
agency houses the coworking space, sharing its resources, while the coworking space
provides subsidy for the rent (or even a profit) in addition to a healthy pipeline of talent and
potential clients.

Members, too, have the opportunity to benefit from gigs that the agency may have to offer.
Variations
There are several sustianable models for a coworking space; below are some variations you
may consider.

Model Description

This is a sustainable model that's been proven many times in many parts of the world.

Caf / retail space

An increasing number of spaces in recent years has shed the office format altogether in
favor of going after the cafe crowd, which there seems to be no shortage of.
For this, we recommend working with another business that already has extensive
experience in cafe/restaurant/retail.

Other models

Coworking is a concept that can be integrated into a great many environments: universities,
churches, public spaces, within larger organizations, and more.
Premium Package
Want to get access to even more materials to help you with your
coworking space? Consider the premium package:

Feature Free Premium

Membership projections
Easily how many members you'll have and what
they'll pay
Office rental projections
Estimate your income from renting offices of
various sizes
Event rental projections
Determine potential income for different kinds of
events programs
Sponsorship projections
Get a sense of possible income from sponsors
Expenses
A detailed breakdown of expenses, based on our
real experience running a space
Capacity calculator
Easily estimate how many seats and offices you
can fit into a space of a given size
Member pre-payments
Plan for pre-paid memberships to help with
buildout costs
5- and 10-year forecasts
Show your projected income and expenses for
the long term
Capital costs estimator
Gauge potential costs for outfitting a space
Premium Package
Want to get access to even more materials to help you with your
coworking space? Consider the premium package:

Feature Free Premium

Sponsorship templates
If you want to get sponsors to support your new
space and its programs, use templates based on
documents we've used to get sponsorships from
Google, HP, Pearson, .CO and others
Business plan template
A fully detailed document, complete with global
market research, ready for you to fill in the blanks

Buy the premium package!

[1] There are countless ways to structure your memberships. What follows here is a fairly "standard" model, in which there are three levels of membership
and a drop-in rate.

How much you can charge will depend heavily on your city, the quality and location of your space, your furnishings, and amenities included.

As with any business, you should do as much market research as you can before making assumptions about what people will be willing to pay.

[2] In recent years, private offices have risen as a way of increasing revenue.

While we used to be vehemently opposed to private offices, we now believe them highly useful to several approaches to sustainable models.

Extra care is called for when it comes to integrating renters of private offices into the overall culture of the space.

[3] The number, size, and rate for the offices here are of course entirely made up.

Replace these numbers with real ones once you have a sense of the size and configuration of the space you're interested in.

[4] Depending on the size, number, quality, and location of meeting rooms, this number can be increased or decreased substantially.

When considering your availability for rental, assume your members will need one phone booth / private space per 10 seats.

[5] We've assumed here that you'll secure sponsorships of some kind, whether at a space-wide level ("institutional") or specific to your events programming.

Should you decide to increase emphasis on some kind of impact-based partnership, you could substantially increase the numbers hereprovided you're
willing to commit the success of your project to finding and securing those sponsors.

If you do not already have experience obtaining paid sponsorships, I would recommend erring on the side of caution.

It may even be best not to count on sponsorships at all, unless you have a good reason to believe you'll get them.

[6] Depending on the size, quality, and location of your event space, provided you build one at all, this can be a major or minor part of your overall revenue.

[7] You may elect to offer your event space for use by members of the community in exchange for a small contribution from attendees.

At $10/person for a 10 person event or $5/person for a 20 person event, $100 per event is a conservative estimate.

8 events per month is an average of two a week; adjust as you see fit.

[8] You may decide to host classes taught by members or friends of the community.

This number can be increased drastically, should you decide to invest in it.

If so, make sure to add expenses for:

[8] You may decide to host classes taught by members or friends of the community.

This number can be increased drastically, should you decide to invest in it.

If so, make sure to add expenses for:

+ An education / program director

+ Substantial increases in all marketing channels
+ Event / supply costs

[9] Increase numbers here if:

+ You plan to emphasize event rentals
+ You have an excellent rental space
+ You are centrally located in a busy city

Decrease this if:

+ You plan not to emphasize rentals
+ You won't have quality event space
+ You're in a rural, low-density city

If you expect this to be a major emphasis, consider breaking out categories for weekend, daytime, evening, and other types of rentals as appropriate.

[10] As you can see, even a relatively conservative model brings in a fair bit of revenue.

Hiring someone to work on events programming full-time could easily yield double or triple the numbers here, justifying the cost of the added staff.

[11] There are many ways to staff a space. This model assumes one owner/operator ("director") and one full-time staff person ("space captain").

What's not noted here are the part-time work-trade members who would help staff the front desk in exchange for free membership.

We consider this to be necessary to help the Space Captain maintain their sanity.

In a larger space ( more than 15,000 sq ft), multiple full- or part-time people may be called for.

[12] Annual cost, roughly based on our experience in NYC.

[13] We're painting with broad strokes here.

Assume you'll have at least this many paid software services; more if you are inclined to pay for quality design & marketing software.

[14] All rough estimates; adjust as you see fit.

[15] This is just an extremely general placeholder, assuming you'll be servicing debt in some way.