The paper "Co-Working Space in Hong Kong" is a great example of a business case study. Among the business ideas of the twenty-first century, co-working is a brand new ideology that brings together professionals with different expertise to share office space. Often the people involved in coworking are professionals who have found themselves working at home, in remote isolation, independent corporations or just have the interest alongside other professionals. Co-working does not bring together a similar set of skills but incorporates people from various organizations, with different skills and allows them to share office space.
Many freelancers can escape the distractions of working at home by embracing co-working (Foertsch 2013). In co-working, a group of people may come together to acquire office space or an operator may acquire and adequately furnish office space the can recruit members to join. The business is projected to start making profits after two years of operation and therefore requires a lot of sacrifice in the beginning stages. The sustenance of the office space can be acquired from the money paid by the joining members but also can come from the operator's indirect sources of income.
Research indicates that it is difficult for the operator to sustain the space without a secondary means of income. An operator should start by first building a coworking community before finding space. This can be done by looking for interested parties or taking part in an existing community and launching their co-working space in line with an event that attracts their target set of professionals. A collaborative spirit is key in establishing a functional space and a lasting co-working community (Rief et al.
2016). The major aspects that define coworking are that it is informal, social and collaborative unlike the normal business models such as business incubators and executive suites. These do not focus on profit but on building a community of professionals with a collaborative spirit. There are unlimited advantages of coworking spaces. First of all, co-working spaces go easy on contracts and are not legally binding as commercial spaces. An individual's time of working in the space is flexible from daily to weekly, monthly and yearly membership. The spaces themselves are flexible too and chance according to the size and the needs of the community working on it.
Co-working spaces lessen the cumbersomeness of seeking valuable resources, advice, and connections to start new businesses and projects. This is because a wide range of professionals works within close proximity of each other. This is where people get hired or referred to the desired careers and also people boost their networking skills and professional connections (Chalwa, 2013). Assisted Serendipity is one of the most valuable benefits of co-working whereby people interact and informally and willingly exchange expert advice. Many ask how coworking is a money-making venture?
Coworking though primarily focused on community brings in income. Most of these enterprises make money exclusively from renting out desks. These form a large portion of their revenue. Apart from desk rentals, other primary sources of revenue include the fees paid for membership, fixed phone lines, fees for private office settings and merchandise support services. Other sources include the provision of snacks and beverages, renting of meeting spaces and conference places and hosting of events, especially corporate events such as seminars.
As the community grows so does the profits raise? This is crucial as one needs it carefully select the members of the community: What jobs do they do? It should be noted that it is through the enhanced operation of their professions that the revenue through desk rentals is raised (Foertsch, 2011).
Foertsch, C 2011, ‘How Profitable are Coworking Spaces?’ Deskmag.com, viewed 23 March, 2017, http://www.deskmag.com/en/how-profitable-are-coworking-spaces-177
Chawla, R 2013, ‘What’s the Top Benefit of Co-working Spaces?’ Entrepreneur, viewed 23 March 2017, https://www.entrepreneur.com/article/230446
Valecha, J 2016, ‘Know the importance of fundraising and funding for startups,’ Entrepreneur India, viewed on 23 March 2017, https://www.entrepreneur.com/article/278450
Ready, K 2011, Startup: An Insider’s guide to Launching and Running a Business, Apress Media LLC, New York.
Zwilling, M 2010, ‘Top 10 Sources of Funding For Start-ups,’ Forbes Magazine, viewed 23 March 2017, https://www.forbes.com/2010/02/12/funding-for-startups-entrepreneurs-finance-zwilling.html
Startup, 2015, ‘Main Sources of Finance for New Business 2015,’ Irish Examiner, viewed 23 March 2017 http://www.irishexaminer.com/business/smallbusiness/startup-2015-main-sources-of-finance-for-new-business-356772.html
Dudley, M., 2015, ‘Lessons from our First Year Running a Co working Space.’ The Skillery, viewed on 24 March 2017, http://www.theskillery.com/blog/2015/7/8/lessons-from-our-first-year-of-running-a-coworking-space
Pandita, S 2017, ‘10 Financial Problems Faced By Startups and Their Possible Remedies,’ KnowStartUp.com, viewed on 24 March, 2017, http://knowstartup.com/2017/02/10-financial-problem-faced-by-startups-and-their-possible-remedies/
Hillman, A 2012, How Much Does It Cost To Start A Co working Space, viewed on 24 March, 2017, https://dangerouslyawesome.com/2012/01/how-much-does-it-cost-to-start-a-coworking-space/
Mills, J 2011, ‘Creating a Cash Flow Projection,’ Wells Fargo Works, viewed on 24 March 2017, https://wellsfargoworks.com/run/cash-flow-projection
Foertsch P.A 2013, Workplace Innovation Today, The Co working Center, NAIOP Research Foundation,
Rief et al. 2016, Harnessing the potential of Co working, Fraunhoer IAO, viewed on 24 March 2017, http://eu.haworth.com/docs/default-source/white-papers/harnessing-the-potential-of-coworking-81444.pdf?sfvrsn=6
Burns, P 1949, Entrepreneurship and Small Businesses, Palgrave Macmillan, UK.
Ries,E 2011, The Lean Startup: How constant Innovation Creates Radically Successful Businesses, Portfolio Penguin, UK