Four Ways Franchising Is Better Than Starting a Business from Scratch

Have You Considered a Coworking Space Franchise?

If you are interested in running your own business, you should consider starting a coworking space. These communal workplaces are becoming increasingly popular as more and more people choose to adapt to a new way of working. However, if you are planning to set up a coworking space, you should know that you have a choice between a coworking space franchise and a coworking space built from the ground up. Although the second option might be tempting, there’s no doubt that the first option is the smart and sensible choice.

Consider these four ways that starting a coworking space franchise is better than starting a business from scratch:

franchise concept

Tested Concept

A franchise has a business model that is a proven success. Otherwise, its founders would not be able to convince interested individuals to become franchisees instead of starting their own businesses. As a result, people who choose to become coworking space franchisees can expect to have a much easier time creating a set of revenue-earning operations that will prove to be sustainable in the long run, with minimal alterations.

For those who are familiar with the process of trial and error that is so common in rockier start-ups, this can be a major point in favor of becoming a coworking space franchisee.

Site Selection

Since coworking spaces earn their revenue by hosting both freelancers and entrepreneurs, they need to be situated in the right places in order to maximize their chances of success. This is because there is a limit to how far people are willing to travel on a daily basis to access their services—meaning that they need to make the commute as convenient as possible.

Unfortunately, choosing the right location is challenging because it requires a fair amount of knowledge about local demographics—which is why a coworking space franchise’s site selection assistance is so important.

Skill Training

Running a successful business requires a wide range of skills, including but not limited to accounting, marketing, and management. People who start their own businesses from the ground up must acquire all of these skills on their own, whether by working at coworking spaces themselves or by learning on the job. In contrast, people who become coworking space franchisees are trained by the franchisor, ensuring that they will have the right set of skills to succeed in their chosen field in a timely fashion.

Continuing Support

Coworking space franchises want their franchisees to succeed. To ensure that they do, they not only provide start-up support for new franchisees, they also provide continuing support to established franchisees. This is critical, because coworking spaces exist in a business environment that is experiencing a fast rate of change—meaning that coworking space franchisees must be prepared to keep up with what can seem like a bewildering succession of best practices.

Furthermore, entrepreneurs can always improve themselves and their employees by learning new skills that are relevant to their duties and responsibilities, thus making this continuing support invaluable.

Further Considerations

Of course, you should learn as much as possible about the process of starting a coworking space franchise before making your final decision. In the meantime, you shouldn’t hesitate to request more information from Venture X so that we can provide you with the answers to all of your questions. This way, you can be sure you are making the informed decision that is in your best interest.

Types of Customers to Target for Your Coworking Space Business

Like many people who are considering launching a coworking space business, the idea may have taken root when you ducked into your favorite coffee shop at midday.

While you waited for a barista to mix your selection, another mixture caught your eye: the number of people—serious-looking people—typing away at their laptops, conducting interviews or meetings, reviewing paperwork, and talking on the phone.

Your first thought—“It’s 3 o’clock in the afternoon; don’t these people work?”—quickly gave way to the realization that they are at work—just not in an ideal environment.

woman on computer

Lesson No. 1 for Your Coworking Space Business

Without realizing it, you just learned the first of four lessons in the types of customers to target for your coworking space business. Yes, they probably like coffee, and yes, they are serious about their work. But they have outgrown the tight quarters, placemat-sized tabletops, and especially the sound of an espresso machine screeching in the background while they try to read, write, talk, or listen as they conduct business.

Even if they are adept at zoning out background noise, the number of distractions at coffee shops can rival the number of coffee beans. To these diligent people, a functional and desirable coworking environment includes:

  • An attractive, roomy, and functional workspace
  • A reception area
  • Meeting rooms
  • Concierge-level services
  • A café

Lesson No. 2 for Your Coworking Space Business

These discerning workers represent one of the fastest-growing workplace phenomena of the last 20 years: the so-called independent worker. By 2020, 65 million Americans will belong to this work category, making up 40 percent of the workforce, according to the U.S. Bureau of Labor Statistics.

As they eschew the lonely confines of a home office and the noisy distractions of coffee shops, they are turning to shared workspaces, which offer the perks of a professional office environment without the drawbacks of a rigid power structure, set hours, and stuffy formalities. The number of shared workspaces is nearly doubling every year, and they serve an increasingly wide spectrum of workers, according to MBO Partners’ annual “State of Independence in America” report.

Lesson No. 3 for Your Coworking Space Business

The trend portends an exciting future for those aspiring to manage a coworking space business—as long as they drill down and learn who is included in that increasingly wide spectrum.

The U.S. Bureau of Labor Statistics places these workers in five categories:

  • Independent professionals and entrepreneurs
  • Freelancers
  • Remote workers and telecommuters
  • Temporary workers
  • A growing group known as “side-giggers,” or those who are employed in some capacity but take on other part-time, independent assignments

Lesson No. 4 for Your Coworking Space Business

These categories might not surprise you, but the demographics of people who gravitate to shared workspaces might. A 2015 study conducted by Emergent Research found that:

  • Their average age is 39
  • Only 20 percent are younger than 30, and 7 percent are older than 60
  • They are nearly split by gender, with men edging out women at 52 percent
  • Only 9 percent work for companies with more than 100 employees

These four lessons will be fundamental in your growth curve as you target customers for your coworking space business. You can count on the coworking experts at Venture X to complete your education with their comprehensive and world-class training programs. But you have to make the first move by phoning for a franchise consultation, perhaps right after you fuel your enthusiasm by ducking into your favorite coffee shop at midday.