Who Do you Serve in your Coworking Space?
If you are working on opening a coworking space, the single most important step you can take to ensure your success is to determine very precisely the profile of your target member. If you do that, and then make all following decisions based on that profile, then you are set up for success.
If you already operate a coworking space, your target member has been tested.
This is a great time to ask yourself:
Have you attracted your target member or sort of a mish-mash of profiles?
Are you happy with your membership make-up? Or is this an opportunity to clarify your target member and re-enter the market with a crystal-clear offering and messaging?
Is your target member as profitable as you need them to be to make your business sustainable?
Are you serving the right member?
Consider Dave, a coworking space owner in a major metro market. Dave owned a creative agency before opening a coworking space. He is also now a small business coach. He loves helping business owners scale their business, grow a team and see real success. When he opened his coworking space, he needed an office to house his own team and he ended up with extra space, so he sort of fell into coworking.
Dave eventually closed the agency and started focusing full time on his coworking and business coaching businesses. Before the pandemic, Dave’s members were mostly freelancers and side-hustlers... They tended to be friends of his that were in sales and just needed a landing pad to get paperwork done and occasionally meet clients. His membership base was friendly enough, but fairly casual users of the space. Frankly, Dave was just about breaking even each month on his coworking business and was paying his bills at home with his coaching income.
When COVID-19 hit, Dave’s members sent him emails about how much they loved him and loved the space, but asked to cancel their memberships, effective immediately.
After Dave temporarily closed his space, he took some long walks to get a little personal space and reflect on his business. Dave came to the conclusion that when he reopened the space, he would attract a more secure member and one that aligned better with his coaching business.The type of people he works with in his coaching business really light him up. He got super clear on the type of member he could BEST serve and that would likely be a profitable, long-term member.
His ideal member would be:
A small business owner with an existing team or about to add team members.
Ideally, a professional services business that would do business with other members in some capacity.
Engaged in the broader community, making them more interesting to hang out with and good word of mouth marketing agents.
A coaching client of his that needed both space and a like-minded, professional community.
Would Dave turn away a computer programmer or a freelance graphic designer? If he thought they would be a potential resource for his small business community, then he might actually actively recruit a few of these folks. But all of his website messaging, his interaction with potential members over the phone and on tours, would really speak to small business owners and the benefits they would see from joining his community. He’s looking for stickiness, not easy revenue.
Dave’s next step is to spend some time reviewing his website messaging, his email sequences, his tour script and his membership offerings to ensure that he’s speaking very clearly to his new ideal member.
Dave feels a little like he’s starting over which is frustrating financially but really energized him. He loves the coworking industry and wants to be in this business for the long haul so it’s better to take the time now to design his business to be profitable and something he loves to spend his time on.
Here is why you need to choose a target member.
The temptation for most coworking space owners, when asked who they serve is: “anyone in my neighborhood or town that works remotely” or “female entrepreneurs,” or “freelance creatives.”
If you serve “anyone in your town that works remotely,” do you serve both of these member profiles?
The 3-piece suit attorney that needs:
A top-of-the line printer and expects a professional receptionist to be present at the front desk at all times to greet his guests
...and a fancy, automated coffee machine in the kitchen so that he can offer his guests a fresh cappuccino before he starts his meetings?
The 22 year-old recent college graduate who just landed his first programming job, likes to wear hoodies, code in the dark and drink bottomless cups of Dunkin’ Donuts at all hours of the day?
It will be hard to design a space that speaks so directly to both of those members that at the end of the tour, they say, “this is the place for me - send me the membership agreement.”
In all markets, even major cities, there is still room for you to be unique and speak to a specific member.
I hear time and again from people that live in major metro areas where there are literally a hundred + coworking spaces to choose from that they haven’t found a coworking space that is quite right for them. This is direct evidence that serving everyone in a neighborhood does not actually serve everyone in a neighborhood.
You can test this for yourself - when you tour coworking spaces, make note about how you respond to the space and the team.
Here is an example to help highlight how two different prospective members might perceive THE SAME coworking space. Make sure you know who you want to speak to and speak clearly and directly to them. You should attract Prospective Member B and repel Prospective Member A. If you try to land in the middle, neither of them will love you.
Prospective Member A: The furniture is too modern - I prefer a more traditional aesthetic.
Prospective Member B: I am a total modern furniture fan. I love the look of the space!
Prospective Member A: The Community Manager is too casual. I’m not sure my clients will appreciate the ‘homey environment’ here.
Prospective Member B: I love how comfortable the space feels and how friendly the Community Manager is. She’s so approachable and makes me feel welcome.
Prospective Member A: I really don’t understand the obsession with coffee. Just leave me with my Dunkin’ Donuts and some hazelnut creamer!
Prospective Member B: I love local, craft coffee! AND the cappuccino machine! A dream come true!
Prospective Member A: I love access to free salty snacks!
Prospective Member B: Why can’t they do their part in keeping people healthy during the work day?
Prospective Member A: I’m worried that the game room will be noisy and unprofessional.
Prospective Member B: I love that they have a game room for when I need to step away from my work.
Prospective Member A: Does anyone here actually need to get some work done?
Prospective Member B: I love how friendly the members were to me on my tour!
Prospective Member A: I’m worried this place is going to be a little too loud for me. The one thing I love about working at home is that it’s completely quiet. I work best with no background noise.
Prospective Member B: This is the perfect vibe for me - I get my best work done in a coffee-environment without the actual grinders and customers!
Here are typical pitfalls of not choosing a clear, ideal member and designing your coworking business to serve them:
The niche spaces win. The language on their website speaks more directly to their audience than you do (less revenue).
Your location turns out to be a good choice for your casual members, but not your most profitable, long-term members (less revenue).
Your tour conversion rate is much lower than industry-average. A lot of folks come to tour your space but just don’t find it to be compelling enough to join unless they are basing their decision purely on geography (less revenue).
If you’re just starting out, spend the time to identify your target member.
Here are some questions to consider:
Where do they live?
How will they get to work?
Do they need parking?
What do they do for work?
How do they spend their typical day? On the phone? In team meetings? In client meetings?
Where do they buy their coffee?
Where do they buy their furniture?
Where do they shop for groceries?
Where do they work out?
What do they read? Watch? Listen to?
Looking for more detailed training on finding your ICA? My Coworking Startup School students get step-by-step training to develop their ICA. You can join the waitlist here.