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Coworking Space Business Plan Template

Written by Dave Lavinsky

Coworking Space Business Plan

You’ve come to the right place to create your Coworking Space business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Coworking Space companies.

Below is a template to help you create each section of your Coworking Space business plan.

Executive Summary

Business overview.

Work Together is a new coworking space located in Las Vegas, Nevada. The space will provide a comfortable and clean setting for professionals of all industries to work in. Professionals who are interested in renting our offices can rent a private office, conference room, or a shared space depending on their needs. They can also rent offices by the day or at a monthly rate. No matter the type of office they rent or the length of their lease, all of our clients are guaranteed a clean, respectful, and professional setting for them to work in.

Work Together is led and founded by Dustin James. Dustin has been a commercial broker for ten years, and has seen an increasing demand in flexible coworking spaces. Since this is an increasing need in a world that is offering more remote and flexible working options, Dustin has decided to specialize in leasing coworking spaces to meet the working needs of the professionals and entrepreneurs of the Las Vegas area.

Product Offering

Work Together provides several offices for professionals to work in. Clients who are interested in renting our offices, can rent private offices, conference rooms, or shared spaces. They can also rent these spaces at a daily rate or monthly rate, depending on their needs.

Customer Focus

The clients of Work Together are typically business owners, investors, business executives, and realtors seeking flexible work spaces. Some clients will just need space for themselves, while others will need space for a small team of up to 15 people. Work Together will offer a variety of office space options to satisfy this diverse demographic.

Management Team

Success Factors

Work Together will be able to achieve success by offering the following competitive advantages:

Location: Work Together’s location is near the center of town and is convenient to access for all commuters and nearby residents. It’s visible from the street with many working professionals walking to and from work on a daily basis, giving passersby a direct look at our offices.
Client-oriented service: Work Together will have a full-time assistant to primarily keep in contact with clients and answer their everyday questions.
Management: Dustin has been extremely successful working in the real estate sector and will be able to use his previous experience to better assist his clients. His unique qualifications will serve customers in a much more sophisticated manner than Work Together’s competitors.
Relationships: Having lived in the community for 25 years, Dustin knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to the community in order to build up a list of loyal and satisfied clients.

Financial Highlights

Work Together is currently seeking $500,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, and working capital. Specifically, these funds will be used as follows:

Office Design/Build: $200,000
Marketing and Advertising: $50,000
Inventory and Supplies: $50,000
Three Months Of Overhead Expenses (Rent, Salaries, Utilities): $100,000
Working Capital: $100,000

The following graph outlines the pro forma financial projections for Work Together.

Company Overview

Who is work together.

Work Together History

Dustin incorporated Work Together as an S-Corporation on May 1st, 2023. The company is currently being run out of Dustin’s home office but will move to a commercial location once the lease has been finalized. Dustin has also identified several office locations to lease and turn into coworking spaces.

Since incorporation, Work Together has achieved the following milestones:

Found a location for the main office and signed a letter of intent to lease it.
Developed the company’s branding image, social media, and website.
Began recruiting key staff.

Work Together Services

Industry analysis.

The evolution of the coworking space concept has grown exponentially over the past ten years. According to Mordor Intelligence, over the next five years, the coworking space industry will grow at a CAGR of 11%. Several factors will contribute to this growth, as industry reports suggest:

Higher costs associated with land acquisition and building
Higher costs for individual office build-outs
Higher costs for building materials overall
Increased demand for “team or group community spaces”
Increased purpose in resource “sustainability”
Increased goal to minimize expenditures across the board

At the same time, as noted by Work Together, the coworking space will need to innovate more spatial designs and layouts for teams or groups that require collaboration. The team or group concept is now dominating the business world and it is anticipated that it will continue to do so for many years to come.

Customer Analysis

Demographic profile of target market.

The clients of Work Together are typically business owners, investors, business executives, and realtors seeking flexible work spaces in the Las Vegas area. Some clients will just need space for themselves, while others will need space for a small team of up to 15 people. Work Together will offer a variety of office space options to satisfy this diverse demographic.

The demographics of Las Vegas, Nevada are as follows:

Customer Segmentation

Work Together will primarily target the following customer profiles:

Entrepreneurs
Remote workers
Small teams and companies

Competitive Analysis

Direct and indirect competitors.

Work Together will face competition from other companies with similar business profiles. A description of each competitor company is below.

King & Hartfield Group

King & Hartfield is a commercial broker that designs coworking spaces for small and large organizations. These rentals are on an annual basis, and they rarely allow for monthly or temporary leases. Since many professionals and teams need accommodations that are more flexible than this, we expect many local professionals to seek out our more flexible lease options.

Clarkson Coworking Connections

Clarkson provides temporary coworking offices for professionals who only need to rent offices for a few days or weeks at a time. They are specifically designed for entrepreneurs, artists, and others who only need a private space for temporary projects. Since Clarkson Coworking Connections does not offer more permanent services, many professionals and teams will seek out our offices for monthly or annual rentals.

Moss & Associates

This company has been in existence for five years and has created a short list of successful coworking space build outs. The company does not design or build out space for more than six people, working from the platform that too many people in community spaces are not beneficial to their clients. Given this limit, Work Together is positioned to succeed in the larger projects and teams that need coworking accommodations.

Competitive Advantage

Work Together offers several advantages over its competition. Those advantages are:

Marketing Plan

Brand & value proposition.

Work Together will offer the unique value proposition to its clientele:

Quiet and clean office spaces
Affordable daily and monthly rates
Client-focused services, where the company’s interests are aligned with the customer
Service built on long-term relationships and personal attention

Promotions Strategy

The promotions strategy for Work Together are as follows:

Social Media

Dustin James will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.

Work Together will develop a professional website that showcases pictures of the office spaces we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Billboard Advertising

We will drive attention toward Work Together by leasing a billboard alongside major highways. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of individuals who are in need of flexible working options.

Publications

The company will also invest in advertising in selected local and national publications such as professional magazines, newspapers, and other publications to build brand awareness and draw in new customers.

Work Together will charge moderate rates for its coworking spaces so clients feel they are getting a great value when renting out our offices.

Operations Plan

The following will be the operations plan for Work Together. Operation Functions:

Dustin James will be the President of Work Together. He will oversee the general operations of the organization, rent out offices to clients, and hire and train all staff. Over the next several months, Dustin will focus on hiring the following staff:
A full time Administrative Assistant who will manage the company website and listings and assist clients with their questions and concerns.
A Director of Marketing who will run and manage all marketing and advertising efforts.
Janitorial staff to ensure that the offices are in clean and perfect condition every day.

Milestones:

Work Together aims to achieve the following goals in the next six months.

6/1/202X – Finalize lease agreement
7/1/202X – Design and Build Out Underway
8/1/202X – Design and Build Out Completed
9/1/202X – Hire and Train Staff
10/1/202X – Grand Opening
11/1/202X – Reach Break-Even

Financial Plan

Key revenue & costs.

The key revenues for Work Together will come from charging clients for the offices they rent from us.

The major cost drivers include labor expenses, cleaning expenses, rent, utilities, supplies, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.

Number of clients per month:
Year 5: 100
Annual lease: $150,000

Financial Projections

Income statement, balance sheet, cash flow statement.

Coworking Space Business Plan Template

Written by Dave Lavinsky

Coworking Space Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their coworking space companies.

If you’re unfamiliar with creating a coworking space business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a coworking space business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Coworking Business Plan?

A business plan provides a snapshot of your coworking space business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Coworking Space

If you’re looking to start a coworking space business or grow your existing coworking space company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your coworking space business to improve your chances of success. Your coworking space business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Coworking Space Businesses

With regards to funding, the main sources of funding for a coworking space business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for coworking space companies.

How to Write a Business Plan for a Coworking Space Business

If you want to start a coworking space business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your coworking space business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of coworking space business you are running and the status. For example, are you a startup, do you have a coworking space business that you would like to grow, or are you operating a chain of coworking space businesses?

Next, provide an overview of each of the subsequent sections of your plan.

Give a brief overview of the coworking space industry.
Discuss the type of coworking space business you are operating.
Detail your direct competitors. Give an overview of your target customers.
Provide a snapshot of your marketing strategy. Identify the key members of your team.
Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of coworking space business you are operating.

For example, you might specialize in one of the following types of coworking space businesses:

Industry specialized coworking space: This type of coworking space caters to workers and entrepreneurs in a specific industry such as graphic designers, digital media professionals, or writers.
Business incubator: This type of coworking space is specifically for startups and entrepreneurs to work on new business ventures in a supportive environment.
Private coworking space: This type of coworking space is usually rented out by a single company.
Open coworking space: This is the most common type of coworking space, where anyone can rent a desk or a room for a fee.

In addition to explaining the type of coworking space business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include the number of clients served, the number of companies served, reaching $X amount in revenue, etc.
Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Coworking Space Company Overview Example

Welcome to WorkHub Spaces, a new Coworking Space uniquely positioned to serve customers in Pasadena, CA. As a local coworking space, we have noticed a significant gap in the market for high-quality local coworking spaces in the area, and we are here to fill that void. We provide a community-driven environment where professionals, freelancers, and startups can find a flexible and inspiring place to work and connect.

At WorkHub Spaces, we offer a variety of products and services designed to meet the needs of our diverse clientele. Our offerings include Hot Desks, for those who need a flexible workspace on the go, Dedicated Desks for individuals seeking a more permanent spot, and Private Offices for teams or individuals needing privacy. Additionally, we provide Meeting and Conference Rooms equipped with modern technology for presentations and collaborations, as well as Virtual Office Services for businesses that require a professional address and mail handling without the need for a physical office space.

Located in the heart of Pasadena, CA, WorkHub Spaces is perfectly situated to serve customers from the local area. Our prime location is not only convenient but also contributes to the vibrant, innovative atmosphere that Pasadena is known for.

Our unique qualifications for success stem from a combination of factors. Firstly, our founder brings valuable experience from previously running a successful coworking space, ensuring we understand the nuances of creating a thriving coworking community. Moreover, our commitment to providing flexible and comprehensive solutions sets us apart, enabling us to meet the diverse needs of our members more effectively than our competition, and fostering an environment of productivity and collaboration.

Since our founding on January 7, 2024, WorkHub Spaces has taken significant strides toward establishing itself as a premier coworking space in Pasadena, CA. We are proud to be structured as an S Corporation, reflecting our commitment to professional and structured business operations. Our achievements to date include the creation of our distinct logo, the development of our unique company name, and securing an ideal location that resonates with our vision for a collaborative, inspiring workspace. These accomplishments mark just the beginning of our journey to becoming a cornerstone of the Pasadena business community.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the coworking space industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the coworking space industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your coworking space business plan:

How big is the coworking space industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential target market for your coworking space business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Coworking Space Industry Analysis Example

The Coworking Space industry in the United States has seen significant growth in recent years, with the market size reaching an estimated $1.2 billion in 2021. This growth can be attributed to the increasing number of freelancers, remote workers, and small businesses looking for flexible and affordable workspace solutions.

Looking ahead, the Coworking Space industry is expected to continue its upward trajectory, with market research predicting a compound annual growth rate of 6.5% from 2021 to 2026. This projected growth is driven by the rising demand for flexible workspaces, as well as the trend towards remote work and the gig economy.

These trends in the Coworking Space industry bode well for WorkHub Spaces, a new Coworking Space serving customers in Pasadena, CA. As more individuals and businesses seek out flexible workspace solutions, WorkHub Spaces is well-positioned to capitalize on this growing market. By offering modern amenities, a collaborative environment, and affordable pricing, WorkHub Spaces can attract a diverse range of customers and establish itself as a premier Coworking Space in the Pasadena area.

Customer Analysis

The customer analysis section of your coworking space business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of coworking space business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Coworking Space Customer Analysis Example

Target Customers

We will target local entrepreneurs and freelancers who require a flexible and professional working environment. These individuals often seek cost-effective alternatives to traditional office spaces and will benefit from our adaptable membership plans. Our facilities will provide them with the necessary resources and networking opportunities to thrive in their respective industries.

In addition to entrepreneurs and freelancers, we will cater to remote workers employed by larger companies, who seek a productive environment away from home distractions. Our coworking space will offer them the collaboration and social interaction that are often missing from remote work. This segment will appreciate our modern amenities and community-driven atmosphere.

Startups and small businesses will also be a key target for our services, as they often require scalable office solutions that can grow with their needs. We will tailor our offerings to support these young companies with meeting rooms, event spaces, and technology infrastructure that facilitate innovation and business growth. This customer segment will benefit from the potential for collaboration with like-minded businesses within our coworking community.

Furthermore, we will aim to attract students and academics from nearby educational institutions, who need a conducive environment for study and research. By providing quiet zones and resources like high-speed internet and printing facilities, we will meet their academic needs. This segment will appreciate the opportunity to connect with a diverse group of professionals and enhance their learning experience.

Customer Needs

WorkHub Spaces serves as a hub for professionals seeking high-quality coworking environments that foster productivity and collaboration. Customers expect an inspiring and ergonomic workspace, equipped with state-of-the-art technology, reliable high-speed internet, and ample meeting rooms. The space caters to entrepreneurs, freelancers, and remote workers who value flexibility and community.

Networking opportunities are a crucial need fulfilled by WorkHub Spaces, as customers benefit from interacting with a diverse group of professionals. Members enjoy access to workshops, events, and seminars that enhance their skills and foster business growth. This environment supports not only individual productivity but also the potential for collaborative ventures and partnerships.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other coworking space businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other places people gather to work, such as conference rooms, libraries, and coffee shops. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

What types of customers do they serve?
What type of coworking space business are they?
What is their pricing (premium, low, etc.)?
What are they good at?
What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you make it easier for your clients to acquire your services?
Will you offer products or services that your competition doesn’t?
Will you provide better customer service?
Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a coworking space business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of coworking space company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide food and beverages, hot desks, conference rooms, or fitness rooms?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Place : Place refers to the site of your coworking space company. Document where your company is situated and mention how the site will impact your success. For example, is your coworking space business located in a busy retail district, a business district, or a standalone office? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your coworking space marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

Advertise in local papers, radio stations and/or magazines
Reach out to websites
Distribute flyers
Engage in email marketing
Advertise on social media platforms
Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your coworking space business, including answering calls, scheduling cleaning services for the coworking space, ordering office supplies, and collecting payments from clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your coworking space business to a new city.

Coworking Space Operations Plan Example

Key Operational Processes

To ensure the success of WorkHub Spaces, there are several key day-to-day operational processes that we will perform:

Maintain a clean and organized workspace by performing daily cleaning duties and regular maintenance checks.
Manage bookings and reservations efficiently through a user-friendly online platform to ensure optimal space utilization.
Provide excellent customer service by greeting members and visitors, addressing inquiries, and resolving any issues promptly.
Offer high-speed internet and reliable connectivity by monitoring network performance and quickly addressing any technical issues.
Ensure safety and security by implementing access control systems and conducting regular security checks.
Foster a vibrant community by organizing networking events, workshops, and seminars to encourage collaboration and engagement.
Handle financial transactions accurately by processing payments and managing invoicing for memberships and services.
Track and manage inventory, including office supplies and equipment, to ensure availability and functionality.
Maintain a welcoming atmosphere by managing temperature, lighting, and seating arrangements to enhance comfort.
Collect feedback from members to continually assess and improve services and facilities.
Coordinate with vendors and service providers to ensure timely delivery and maintenance of essential services.
Promote the coworking space through marketing efforts, including social media engagement and partnerships with local businesses.
Monitor and analyze operational data to identify areas for improvement and implement necessary changes.

WorkHub Spaces expects to complete the following milestones in the coming months to ensure its success:

Secure a Prime Location : Identify and lease a strategically located property in Pasadena, CA, that is accessible, spacious, and appealing to the target market.
Design and Build-Out : Complete the interior design and renovation of the space, ensuring it meets the needs of coworking clientele, including amenities such as high-speed internet, conference rooms, and comfortable workstations.
Obtain Necessary Permits and Licenses : Acquire all local and state permits and licenses required to legally operate a coworking space in Pasadena.
Develop a Marketing and Sales Strategy : Launch targeted marketing campaigns to create awareness and attract potential members, including digital marketing, partnerships with local businesses, and attending networking events.
Launch Our Coworking Space : Officially open the doors to WorkHub Spaces, hosting a launch event to generate buzz and attract initial members.
Build a Strong Community : Facilitate community-building activities and events to foster a collaborative environment and increase member retention.
Implement Member Feedback Mechanisms : Establish systems for collecting and responding to member feedback to continuously improve the coworking experience.
Optimize Operational Efficiency : Streamline operations to reduce costs and enhance member satisfaction, including the use of technology for bookings and member management.

Management Team

To demonstrate your coworking space business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing coworking space businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a coworking space business or successfully running a small venture incubator.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your coworking space have 20 desks, and will you charge $20 per day/per desk? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your coworking space business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a coworking space business:

Cost of equipment and office supplies
Payroll or salaries paid to staff
Business insurance
Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or testimonials from happy customers.

Writing a business plan for your coworking space is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert coworking space business plan; download it to PDF to show banks and investors. You will understand the coworking space industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful coworking space business.

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