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How to Recession-Proof Your Coworking Business

History

98.36% of coworking spaces opened after the last recession was technically over in 2009. This means that just a handful of spaces in the United States have ever experienced what it’s like to survive a recession.

This article will help coworking space owners plan ahead for the next recession.

Number of Coworking Spaces by Year Worldwide via Statista

https://www.statista.com/statistics/554273/number-of-coworking-spaces-worldwide/

What happens during a recession

A recession starts when the US experiences a loss in 2 consecutive quarters in real GDP, income, employment, manufacturing, and retail sales.

The most critical factors that affect coworking spaces during a recession are:

  • lay-offs for W2 employees

  • an increase in freelance and contract workers

Remote workers tend to form a stable membership base for coworking spaces in strong economies. According to diycoworking’s recent research, 50% of companies pay for all of their remote workers coworking memberships. Remote workers tend to have better retention and their memberships don’t fluctuate because their incomes don’t.

If a recession comes, layoffs of these remote workers could be one of the first big challenges spaces will notice to the bottom line.

In the same vein, as full-time workers are laid off, their companies may pivot to hiring them back as contract laborers to cut their own costs (thereby not paying for the coworking membership any longer) OR the remote worker will put their skills to use as freelancers. Going from a full-time paycheck to fluctuating contract-based pay will be a huge adjustment for members. The great news is, proactive coworking communities can help members transition to new ways of working/earning. Keep reading for specific examples.

Plan ahead for a recession to affect coworking spaces

  • Start saving money now

The easiest thing operators can do today to protect themselves for the future is to streamline and cut costs where ever possible. This is a great time to review all vendors/spending and see if there is a lower price on staples like toilet paper and coffee so you can start taking advantage of savings before it becomes mandatory.

  • Start a coworking scholarship fund/create a co-op style member “staff”

Many coworking spaces have “Super Members” and can’t imagine life without them. Savvy operators will put back $25/month into a coworking scholarship fund and use this fund to supplement a few key memberships so the community doesn’t lose its best coworking evangelists to job loss.

A great way to reduce staffing costs is to offer members a discount in return for helping to run the space. Examples include having members staff the front desk for a half-day/week, giving tours, tidying up or setting up for events. A work/membership trade program allows loyal members to stay on even if their income takes a hit and it allows operators to reduce the costs of running the space.

  • Diversify membership offerings

One thing that has puzzled me about newer coworking spaces is their pricing. Most spaces tend to just offer full-time memberships or private offices. I think this has to be a factor of opening a space in a strong economy. They’ve never had the misfortune of selling to people who are flat broke.

My coworking space Cohere opened at the tail end of the last recession and our MOST POPULAR MEMBERSHIP was the $48/mo one day/week plan. It was a membership level that sold like hotcakes to struggling freelancers, job seekers and even students b/c it reflected about how much people were spending on coffee at the cafe anyway. Our prices have increased in the last decade but the one day/week plan is still the most popular.

Cohere still offers multiple part-time memberships and 87% of our members have part-time memberships. So rather than trying to retain a few people at full-time expensive memberships, my risk is spread out over many, many members who are paying anywhere from $19-$199/mo. In fact, this is a super strategy according to 37signals.

Alex Hillman of IndyHall has this sage advice for new space owners facing a recession:

Take a good hard look at your membership: if it's mostly startups, expect a lot of them to shrink or go out of business.  Focus more on how you can connect/help/create value for small and solo businesses owners. They're the ones most likely to thrive in an economic downturn. -Alex Hillman, IndyHall

  • Reduce the coworking space’s square footage

It may be impossible to imagine a world where you would reduce your square footage during strong economic times but that’s exactly what Co-founder Susan Dorsch of Office Nomads in Seattle, WA just did. Their position is unique because they opened prior to the last recession and weathered it and I think their decision to preemptively shrink is brave and brilliant.

Since shedding our additional space [by half] I feel so much more confident in our ability to build our business back to full strength. And I can already tell that the community of members here feels more connected and more in tune with one another than we were just a couple of months ago. I'm so eager to see what happens next.  -Susan Dorsch, Office Nomads

A drastic reduction in square footage could be a very wise move for spaces where the lease is up for renegotiation AND the space is less than 60% full. The added bonus is that reducing square footage makes the physical community more dense and bumps up the energy, which is a boon during tours and events.

  • Look inward at your community

Many times, new coworking owners will focus too much on the people who aren’t members and not enough attention on the people who are already there. Susan of Office Nomads has been down this road too.

From those first years to now nearly 11 years of being in business, I've learned that anytime we are feeling stressed about our bottom line the answer is to look inward. When we focus 1000% on making our place and our community awesome, we are more successful. Every time. Anything that pulls our attention from that core work of community building usually leads to our bottom line not being quite as strong. Having twice as much square footage pulled our attention away. That wasn't the intention of course (we were bursting at the seams full and were eager to see if we could expand our potential by having more room to grow), but that is how it came to be.  -Susan Dorsch Office Nomads

IndyHall in Philidelphia also weathered the last recession. Alex Hillman cites the following differences for running a space in a recession vs a strong economy:

Recessions are great for figuring out who actually creates value for their customers & clients. Coworking is less of a "luxury item" during a recession. It's less about cool, and more about "how is this helping me?" 

Similarly, I think people are more focused and creative during a recession. Constraints are a creative force. 

It's counter-intuitive, because for job-holders a recession usually means "I might lose my job." But for independent workers, it's full of opportunity. Work still needs to get done. 

  • Renegotiate the lease

According to Commercial Real Estate Expert Annah Moore, tenants CAN and absolutely do renegotiate their leases at renewal to achieve lower rent rates in hard economic times.

During the downturn, negotiating lower rents from tenants in a renewal was very common, especially when they could site lower costing options available from other motivated landlords with vacancy. - Annah Moore, CBRE | Advisory & Transaction Services

Also consider a mid-lease renegotiation but they are a little trickier…

Renegotiating mid lease term doesn’t happen much, as there needs to be a motivating factor/incentive for landlord to lower the rent when they have a commitment from the tenant.  Cases where a landlord would consider lowering the rent mid-lease would include some upside to the landlord, most likely in the form of a longer lease term from tenant.  So if a tenant has 1-2 years left at $15/SF, it wouldn’t be unheard of for a landlord to agree to lower that to $13 or $14, likely with escalators, if the lease amendment reflected a 5+ year extension to the lease.  So the landlord is trading some existing income for greater certainty for the future. -Annah Moore, CBRE | Advisory & Transaction Services

  • Buy a building (but only at the end of the recession when prices are low)

If I were flexible enough, I’d actually kick my own ass for not buying a commercial building in 2009 when Cohere was founded and the commercial real estate sector was hurting in my town. The building we currently lease sold for $550,000 in 2010. It is currently worth upwards of $1,400,000 and if I had the guts to buy it back then my operating costs would be half what they are today.

It’s worth talking to a commercial lender NOW, while the getting is good so you’ll be well-educated if you need to make that decision later. I tried to buy our building a year ago. My offer was rejected but now I am familiar with the commercial lending process AND I know how much my family can afford should I decide to pursue it again.

  • Support job-seekers with special programming to preserve their sanity

Job search might be one of the toughest most soul crushing experiences ever. Weave supportive networks under job-seekers by having special deals while they are in job search and specialized programming to support their mental health during the process. A weekly accountability group like Cotivation is a ready to use program community managers can buy here for just $29.00. This one-time purchase can be used as many times as needed.

Office Nomads had a brilliant program during the last recession.

I think that one of the central elements for us making it through those tough times was staying laser-focused on our core offerings. I remember back in 2008 we ran a "Pink Slip Special" for people who had been laid off by their companies. We knew that many of those people were just going to head home to try and regroup. We knew that they'd be much more successful in that regrouping process if they were among friends and collaborators instead of their cats. So we extended our hands to help. Instead of being panicked about our business success, we focused on what it is that we knew we could do – give people a place to be and an opportunity to be part of a growing community. Turns out that not only helped our members, but it helped our success as well.  -Susan Dorsch Office Nomads

  • Begin a list of classes to teach people how to freelance/contract

Cohere’s most popular events during the last recession were those that helped laid off workers learn how to freelance. Our primary customer was one that had recently been laid off and was now starting to freelance for the first time.

IMG_0640-Edit.jpg

One of the greatest benefits coworking communities can give current and prospective members is access to resources that help people earn money. Great courses to offer are: Contract Writing 101, SEO for Small Business and Create a One Page Website in a Day. There’s no need to bring in the big guns to teach either. Your members are a wealth of info. Let them practice teaching lessons on the subjects they know the most about.

Conclusion

I’m clearly not an expert in economics. I don’t know if or when the next recession will happen or why. As a huge fan of coworking and its power to connect people and dismantle loneliness, I think coworking operators everywhere should start planning now so we don’t lose our most vulnerable members to their dining room tables when they lose their jobs.

Start by saving now and end with kick-ass programming built by and for your members that will help them earn money in new ways.

Looking to start a coworking space? Get the Ultimate Coworking Launch Sequence Workbook. It’s filled with practical advice and actionable tips to help you build a recesssion-proof coworking business.

Ultimate Coworking Launch Sequence ebook
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Coworking Owners: How to Take Vacation

It's easy to believe that only YOU can do the job of running your coworking space. It feels nice to be The One with the answer, the person in charge and the go-to gal for anything. 

This. Is. Not. True.

You believe you are the only capable person because you've never given anyone else the chance to contribute. Here are some easy-peasy ways to start delegating critical tasks to other people or the community at large so you can go recharge your batteries without feeling like you have to have your phone tucked in in the waistband of your swimsuit the whole time you're away.

Set up Subscriptions

You can make anything from toilet paper to coffee appear in your space on a schedule. I highly recommend this for basic sundries. Our coffee provider delivers a 5lb bag of coffee every 1st Friday and charges my credit card. I don't have to do anything to ensure that everyone is caffinated. Look into Amazon's subscription services. Pro-tip: track your use for a couple of months so you know how often to have the drones deliver your essentials.

 Probably avoid having puppies delivered unless you have a long-term strategy for that.

Probably avoid having puppies delivered unless you have a long-term strategy for that.

Leave a Loaded Gift Card

Put $100 on a gift card to the closest grocery store or big box shop. Let your members know where it is and if something critical goes out of stock while you're away, they are empowered to grab the gift card and take care of the problem. Have them leave the receipts in the envelope for you. This works great for creamer, dish soap or light bulbs.

Put Billing on Auto-pilot

The strongest case I can make for using a coworking management software is that it can ensure that you're paid automatically every month, no matter what. I recently took away the option to pay by check or paypal and instead require all members to put a debit or credit card into their account in Cobot. When the 1st of the month rolls around, their cards get charged for their membership and my presence isn't required.

 No one will ever know there's not a real person behind the check they just got in the mail.

No one will ever know there's not a real person behind the check they just got in the mail.

Put Expenses on Auto-pilot

If you are manually cutting checks for your recurring monthly bills, just stop. Login to your bank and learn how to use their bill pay services. I have my rent payments and other recurring services like janitorial and bloggers set up to get their checks cut and sent to them every month whether I remember or not.

Warn Your Members

Before every extended vacation or holiday break I send an email to all members that says something like this, "I will be out of town for 10 days. Here's who you contact for building disasters, internet outages or urgent supply issues. Please lower your expectations by 10% for the next week."

Use Your Email Vacation Responder

I leave very explicit details on who to contact for what in my vacation auto-responder. I tell them who to contact/how and for what reason. 

Don't Schedule Events During Your Vacations

This feels obvious to me but events are one of the most stressful parts of owning a coworking space. If I know I'll be out of town, I don't plan a single event to occur during those dates. It simplifies things and I know that only members will be occupying the space during my vacancy.

 This image is probably too dramatic to indicate that the space is closed to the public during my vacations.

This image is probably too dramatic to indicate that the space is closed to the public during my vacations.

Invite Members to Contribute

Another common logic fallacy of coworking operators is that members expect to be given everything in return for their membership fee. If you are truly building a community and not just a commodity, you'll find that members are DELIGHTED to be given ways to help out. This makes them feel useful and often allows them to form deeper connections with one another, with you and with the space.

Here are some of the things Cohere members have happily contributed so I can take some time off:

  1. Watering the plants (you have at least one plant-crazy person in your space)
  2. Keeping an eye on the cream. We have a Chancellor of Cream, whose sole job is to monitor this
  3. Answering the door/signing for packages
  4. Giving tours to prospective members
  5. Being copied on the contact forms during my vacations and replying to inquiries
  6. Restocking toilet paper and paper towels
  7. Taking the laundry basket home to wash
  8. Wiping the desks down
  9. Replacing light bulbs
  10. Keeping the counters wiped
 We don't require our Chancellor of Cream to wear a crown of shells but we feel certain they feel this fierce.

We don't require our Chancellor of Cream to wear a crown of shells but we feel certain they feel this fierce.

Writing this post has me wanting to head to the hills for a week off. Don't become your own bottleneck for your mental health. We all need time off and I'd argue that community managers need MORE time off than we think. We do hard emotional work every day and if we don't recharge ourselves, we don't stand a chance at helping everyone else.

The DIY Coworking Community is Global!

From Seattle to Uraguay, I wanted to see where all of the DIY Coworking spaces were in the world so I mapped them.

All of these people in all of these places have gotten resources from this shop to help them start independent and bootstrapped coworking companies!

Just when I think I am so, so tired of hearing about chain-coworking, I see this. Take heart, have hope. There will always be a place for indie coworking. Check out all the resources so you can get started today!

Recap: Women Who Cowork Retreat 2018

AMAZEBOOBS. That's all I can really say about the first ever Women Who Cowork retreat held at Soma Vida in Austin, TX. I've been sworn to secrecy about the actual goings-ons at this event but I do have some tidbits and teasers I CAN share.

Women-Who-Cowork-Retreat-group.jpg

Getting to know one another and helping each other on the WWC Facebook group is ONE thing. Hugging, making eye contact and loving on one another IN PERSON is a whole other thing. Sound familiar? Much like the work we do with our IRL coworking communities, we practiced what we preach by coming together in person to connect. Thank you to Iris and Laura for catalyzing this opportunity for us all. 

23 women from the United States and Canada attended this inaugural event. Here are my SEVEN POINT ONE key takeaways from this incredible gathering of women.

ONE: Felena Hanson. I have secretly admired her from afar for almost a decade. She shared her story, how Herahub came to be and gave us a peak behind the curtain of her success. I found her incredibly relatable, warm, genuine and frankly, she has impeccable style.

TWO: Ashley Proctor. I have had the honor of being in closed audiences with Ashley for years and every time I hear her story I'm struck by how incredibly resilient and persistent AF she is. When Ashley wants something done, she works at it relentlessly until it is achieved even if it means getting told "no" 25 times.

THREE: Liz Elam. This retreat reminded me how much I love Liz. To the point, candid and refreshing AF Liz taught us how to negotiate. I can't reveal the secrets here but if you get a cocked-head-dead-shark-eyes-stare from me in the future--just know that I'm practicing on you and you WILL bend to my will.

FOUR: Cat Johnson. Goddammit Cat. Stop. Making. Me. Cry every time we're in the same time-zone. Cat is so incredibly authentic and shares so much of her heart. Cat taught us EVEN MORE about creating content that matters. Head over to the Coworking Content Alliance Facebook group and join.

 Photo by Amy King of Good Work Dallas, TX

Photo by Amy King of Good Work Dallas, TX

FIVE: Daryn DeZengotita. Keep your eye on this one. Daryn is doing some of the most important work I can think of right now and that's bringing coworking into underutilized churches. Also, she makes me laugh and laugh and laugh and I value that over almost anything.

FIVE POINT ONE: We discussed what happens when you take god out of church and take desks out of coworking. Guess what?! It's the same damn thing. It's people, connection, support and community. Will coworking be the new church? I think it will--no matter your religious beliefs.

SIX: The way women show up TOGETHER is so, so, so, so different than we show up in mixed gender groups. How can we change or amplify this for our benefit?

SEVEN: Paging Deskmag! We have some revisions to the world coworking history timeline. Please see Laura Shook for corrections and addition of female names to that well-read albeit incomplete timeline.

All in all, I am so happy that I took a chance and reworked my schedule to attend this. Keep your eye on Women Who Cowork and be sure to sign up for their next event.

 Photo by Melissa Saubers of Cowork Waldo Kansas City, MO

Photo by Melissa Saubers of Cowork Waldo Kansas City, MO

 

 

 

 

 

How to: Get Your First Coworking Members
 Entrelac Annemasse, France

Entrelac Annemasse, France

Starting a coworking space can be a risky proposition. Most founders take on the lease responsibility and then sell membership to make revenue. If you sign a lease with no members, it's even riskier. Grassroots and DIY coworking spaces take time and effort to fill when there isn't a huge marketing budget on which to rely.

That's why I always recommend to catalysts to build a community first. You can read more about using meetup to do that. Next, you can parlay your meetup group members into PAYING members of your space even BEFORE you sign a lease. What a world!

I've called on four incredible women founders of coworking spaces to drop some knowledge on how they got paying members before or shortly after opening. Notice a little theme in that many of them fully understood the importance of "community first, space second" and found a lot of fear around putting themselves or their business idea out there prior to have a physical space. Take heed and take heart! You can do it.

Panel of Women Coworking Catalysts

Kayla Pendleton Founder & President, Her Space, Fresno, CA | Founding Members 15 and growing

Lisa Akinseye Visionary Team, Evolve Workplace, West St. Paul, MN | Founding Members 17 and growing

Marion Majou Founder, Entrelac, Annemasse, France | Founding Members 0

Emily Rose Antflick Founder, Shecosystem, Toronto, Ontario | Founding Members 18

Tell me a little bit about your coworking community. 

Kayla: Her Space aims to provide the education, connections, and resources ladies need to propel their businesses forward. We support women in all phases, whether you are trying to launch or grow your business. The thing that makes our community special is that we are forming the space in order to create a movement of change in the economic landscape of our city. Fresno has a huge unemployment problem, and is flooded with things like human trafficking, substance abuse, and homelessness, especially in our downtown region. We want to open a non profit that helps support the rehabilitation efforts of the victims of these life events. We will provide a place to introduce these folks to the concept of entrepreneurship, help them in the formation of their business plans, and present opportunities to pitch their business ideas to potential investors.

 Herspace Fresno, Ca

Herspace Fresno, Ca

Lisa: I think that what makes Evolve Workplace special, particularly in our community, is that we are a bit more casual than some of the national corporate "business centers" that are trying to rebrand themselves as being coworking spaces. Our goal is for members to see the space as their workday haven, knowing they spend most of their waking hours within Evolve's four walls. We, like many authentic coworking spaces, strive to be member-focused, and plan to add features and amenities based on their wants and needs.

Marion: Entrelac is special because it is both a great space to get work done efficiently, but more importantly a friendly community. The majority of members are new to coworking when they first start - some are even new to working in an open plan office. I always emphasize the community side of things and all members take it in their stride to do their bit - whether that's just leaving a mug free sink (and we know how crucial that is) or organizing events.

Emily: Shecosystem is a work-life space rooted in feminine and feminist values - which happen to be very similar to the values of the coworking movement - openness, collaboration, accessibility, sustainability and community! We’ve built a culture where holistic wellness and self-care are part of the workday. We opened with 18 founding members and currently have close to 60. It’s a warm community where folks really come as they are and we hold space for the totality of eachother’s experiences. It’s a women-centric space but all genders are welcome. Shecosystem’s 1650 square foot space in Toronto opened in November 2016 but the community predates it by a year.

When you decided to start a coworking community, how much did you focus on finding people BEFORE you signed a lease? Why/why not? Did you find any super useful resources online that led you to want to build community first?

Kayla: I have worked on building the community over a year now before getting into a space. What is the point of having a space if you don't have wonderful people to share it with?? I also wanted to make sure the concept was going to be 100% solid before investing my life savings into it.

Lisa: We started doing our homework in June. Some of the names that kept resurfacing were Cat Johnson, Alex Hillman, Tony Bacigalupo and others. For about a week, I turned into "absorber of all" and read more articles, visited more coworking websites, and watched more YouTube videos than you could imagine. In short, everyone I've reached out to says, "community first", and we've adopted the mantra.

Marion: Even though I had read the articles (Alex Hillman's blog and Angel's blog and ebooks too), combed through the coworking google group, for a long time I had the classic attitude of a shy entrepreneur about my project: "I can't quite go public about it yet, I still need to improve this and to confirm that...."
I did raise awareness of the project and a couple of people did come on board early. But most were sort of waiting on the sidelines: "Let us know when the space is set up and we'll come and check it out..." They were all focusing on the space, rather than who was going to be in it and what would happen between those people. At the time, it felt overwhelming to educate people about coworking (when I didn't even feel legit myself!). I was working on getting this business off the ground while raising three kids! So, something had to give and it was the community side of things.

Emily: Starting with community building intuitively made sense, and was in line with my professional experience as an educator. I’ve always loved “holding space” for people to connect, and in this case the permanent physical space was an extension of the intangible containers I was used to creating, not the other way around.

Taking on a lease is a huge risk, and I wanted to validate my idea first. Because I was creating this space from a feminine place where it’s all about circles rather than pyramids, I wanted the process to reflect the values; it made sense to start with community and find out what they need rather than come up with top-down policies. Soon after I started gathering my tribe, I attended GCUC Canada and heard industry leaders like Angel and Alex Hillman talking about how important building community had been to their spaces and knew I was on the right track.

 Shecosystem Toronto, Canada

Shecosystem Toronto, Canada

 

How did you find prospective community members? Did you host Jellies or meetups? Have events? Do personal outreach? Attend events? What method was most successful for you?

Kayla: I have been a member of a networking group called Polka Dot Powerhouse since the beginning forming the idea. This group has helped me meet my tribe and give me the support I needed to launch. I have hosted meet ups for my Pop Up Coworking Days. I basically get a group together at local coffee/tea shops and we all work together- no structure- just getting to know each other and knocking out projects. I also host a Monday Morning Motivation group- where we grab coffee, do a guided meditation, and goal setting for the week in a peace garden. I attend several events a week besides the events I host myself. Being visible and showing up constantly is what works.

Lisa: in addition to social media and in person meetings, we are hosting two of our own Meetup groups. Our most exciting event to date was when we hosted 48in48 last weekend. They did a hackathon-style event to build 48 websites for 48 local nonprofits in just 48 hours. The energy was phenomenal. It was also interesting to see how the space could be best-used for tech teams. We told them to move furniture as necessary to meet their needs, and it infused new ideas into our space!

Marion: Early on, I set up a Facebook page and a landing page for our website and started communicating online about my project.
Coworking was still very new in this area and not very present in mainstream media. I attended networking events where local authorities and local businesses were present. I got a bit of traction across the border in Switzerland where the startup/digital scene was a bit more active. But everyone I met there weren't particularly interested in coming to us.

I also visited a number of regional coworking spaces, who all emphasized that what worked for them was a mix of "community before space" and of "get a space up and running and they will come". At the time, I think they were right because coworking was so new that people need to "see it" before they could "try it". Three years later, the market is very, very different and I would now feel a lot more confident to start with jellies, meetups and basically no space.

Emily: Shecosystem started as a weekly gathering of women who were looking to connect with a tribe of likeminded others who shared values and experiences that are underrepresented in the dominant entrepreneurial paradigm. We rented a private studio for two hours Tuesday mornings for close to a year in a really cool and vibrant community arts building, charged $12, and provided coffee and tea. At first we partnered with an established online women’s network - a win-win where they provided more face-time value for their members and I got a platform to leap off of when I had no brand recognition.The format was a micro-version of what I wanted a day at Shecosystem to look like: an opening circle focussed on intention setting and authentic sharing (not elevator pitches!), 90 minutes of coworking, an onsite business mentor for one on one check-ins, and a 20 minute holistic wellness experience to end the session. I also did monthly events like a new year yoga and writing workshop, a panel of women social entrepreneurs, and a World Cafe style event looking at challenges and issues facing women entrepreneurs. These events were often in collaboration with groups like Startup Toronto and Women in Biz Network, or with facilitators from the community. We also did a 3 day pop-up in collaboration with the Gladstone Hotel, with coworking, wellness breaks, a marketplace showcasing women artisans, and daily circles. I also started a closed facebook group that grew to a couple hundred over the course of the year and sent out monthly newsletters. Finally, I got out there and talked about the idea constantly. I did a lot of public speaking on panels, led workshops at conferences and had lots of coffee dates!
 

Did your community members begin to press you to find a physical location or did you spear head that decision? How involved in finding/planning the space were your members?

Kayla:I knew from the get-go I needed a space for this to work long term. My members have helped me decide what part of town to focus my search, but I for the most part did it on my own.

Lisa: We had the space before members so we held some pre-opening food 'n' beer nights to get input. We're certainly not done furnishing the space, and our hopes are that members will show us what works for them.

Marion: For months, there was uncertainty around our location as the plan was to share premises with a publicly funded incubator, hence my hesitation to go public. In hindsight, I could have shared a lot more about the journey itself - the good, the bad and the ugly!
A handful of prospective members were involved in the finishing touches: putting together furniture, painting and webmarketing. The bulk of it felt lonely and fairly scary to be honest - but also very empowering. I'm doing this, on my own!

Emily:I took the initiative to find a space after I did a quick impact assessment survey with people who had been attending the meetups. I found that being a part of the group was working for people - in terms of revenue, belonging, happiness, networking etc. - and that people wanted a more permanent space. I then created a really detailed market research survey to find out what they wanted in terms of location, amenities, price points, and other priorities.
Once I found the space, I held tours and info session during renovations, and several members signed up during this period. It was also an opportunity for members to give input that shaped the design of the space. There were also a lot of one on one conversations with potential members.

Did people give you money before you opened the physical location? How did you ask for that? 
Kayla:I ask for a $100 deposit and an agreement from those that are interested in becoming members that states what membership level they want to sign up for.

Lisa: we did some really unusual and leased our giant parking lot to some contractors to generate some revenue prior to our soft opening.

Marion: We had a soft launch in early September. Basically, the space was equipped enough to say: "We're open!". Three weeks later.... no one had joined! So I decided to go all out and organized a free coworking week. Anyone could register to come and work for free for as long as they wanted that week. We had a full program of events with daily workshops and shared lunches. This was during the ice bucket challenge fever, so I even got a little wet in Lake Geneva to promote this..... Oh the things you do to get attention! ;-)
By the end of that week, there was a nice little group of about 8 people who had enjoyed hanging out together that week and even got s**t done! On the last afternoon, we had a signing up session and all of them joined. I was so thrilled, I could have cried!
The lesson for me here was that people attract people. There is nothing harder than convincing someone to join a collaborative work community if the space they are touring is empty.

Emily: Yes, I launched a Founding Members plan where people could pre-commit to a 3 month membership at 15% off, 6 months at 20% off, or a year at 25% off. I launched this as soon as I found a location - around 3 months before the doors opened, with a guarantee that if I had not opened by x date, they’d get a full refund.

How did you structure what they got in exchange for pre-paying? Did they get membership? Bragging rights?

Kayla: In return I give them the 1st month rent free and waive my $99 initial fee, plus make them a sponsor of the launch party- and they get a free t shirt. Pretty sweet deal.

Lisa: We didn't have pre-pay pre-launch. What we are offering now is a dedicated desk for just $25 more a month than a $300 hot desk.

Marion: Whoever decided to join during that week would get a 50% discount on their membership. There were only three discounted memberships available for each membership plan. In return, people committed to a 6 months membership. After that we returned to month-to-month contracts but this was a great way to get started. Money was less of a hurdle for prospective members and for me, having these people in the space for 6 months was guaranteed and a great way to finding new members.

Emily:Here’s what I told them:As a founding member, you’ll get early adopter rates, more input in shaping the space to suit your needs, and the social capital that comes with being part of the foundation of this growing community. You’ll be among the first Shecosisters featured on the website, and I will promote your business on social media. Plus I’ll throw in a few free passes to launch events, and other opportunities to get involved as we lead up to launch. I will do my best to deliver these benefits to you in a timely fashion, but I ask that you join me in being patient, trusting in the unknown, and sending lots of good vibes as I work toward launching our home base!

Would you recommend that new coworking catalysts find community members BEFORE they open a coworking space? Why? Why not?

Kayla: Yes. I can't imagine trying to get into a lease on a space with your finances on the line, not knowing if anyone will walk through the door for months. Unless you just have a lot of money to invest and aren't worried about it.

Lisa: For space utilization ideas and cash flow purposes, I wish we had more members pre-launch. On the flip side, we have so many square feet (30,000), that we would like to see a ton of different kinds of businesses that can interface and learn and grow with one another, trading knowledge, and bartering services. So far, most new members are coming in on direct referrals. Others have walked through, and are tied to longer-term leases elsewhere, but are interested in the concept down the road.

Marion: Yes, yes and yes! From this story, I think you will understand why and there is even more advice on community building now. Even as a space is growing, community remains the keystone. For the past six months, we have been working on moving to a co-op system where members take a bigger role in governance and operations. I can't wait to see where this will take us and I feel so empowered by it all.

Emily: Yes! Yes! Yes! There’s nothing worse than putting your heart and soul into something and then sitting in an empty room. Having founding members means that from day one there is an energy in the space, and other prospective members can get a feel for what their experience will be like. These folks become your goodwill ambassadors in the community - even now, most of my members have come through word of mouth.

I believe that a coworking space truly benefits from collaborating with members to shape the space; plus, input leads to ownership. For example, a member who is a counsellor told me her clients like to look out a window in session, so I swapped the intended board room for the Healing Room because it has a window. Another member told me she hates when spaces have all one kind of chair because people have different bodies, so I got a variety of chairs for the desks. And members are literally embedded in the space - they contributed stones, shells and other mementos to a custom mosaic backsplash. The Shecosystem community really feels that this is OUR space, not mine.

Also check out the Ultimate Coworking Launch Sequence. With a clever mixture of readings, resources, introspection and writing exercises, you'll have a team of Founding Members before you can tweet #collaboration.