Coworking Space Business Plan Template [Updated 2024]

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I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] was started ten months ago to meet the surging demand for flexible, comfortable and reliable coworking office space. Several businesses in the regional area have been seeking coworking space locations for over a year; however, most are already in use. With this in mind, [Company Name] was formed by [Founder Name], [Founder Name] and [Founder Name] to meet these specific office space needs.

[Founder Name] and [Founder Name], licensed commercial real estate brokers, began to hear the same questions repeatedly from their corporate clients during this past year: Should we take a 5-year lease on office space in a building? Should we take the risk of buying land and building our offices? Do any of our employees need an isolated workspace? Will groups or teams collaborate frequently on various projects? Will projects be analyzed by individuals or research and development teams? Answers to these questions have highlighted the critical need for the plan and leasing program we’ve developed: flexible, comfortable and reliable coworking space for everyone.

The changing nature of our economy today calls for companies to consider the use of assets wisely as they determine the type of office building or workspace that best suits their needs. One of the largest overhead costs is that of office space, particularly when land must be purchased and a building raised. Our clients recognize that their assets can be put to better use in other areas, such as innovation, technology and company growth overall. With this understanding, [Company Name] has been recently established as the new leader of coworking spaces that actually work.

Within the next 5 years, we fully anticipate perfecting and polishing our working model, adding amenities as we listen to client needs. At that time, our long-term plans include creating a franchise opportunity for buyers across the US to adopt the consummate coworking space business model found in [Company Name].

Services & Products Offered

At [Company Name] our process begins with finding the perfect location for our clients. We then secure the lease or oversee the purchase of the workspace. Our next steps include: surveying employees (to determine their needs/wants), building spaces to maximize comfort, allotting community spaces for team collaboration, and building out fixtures, furnishings and any office amenities, such as a kitchen or exercise room.

In a recent study by Grand Canyon University, almost 84% of people who are situated in coworking spaces report a very high degree of satisfaction with their working conditions when their employer has addressed their needs. This is why [Company Name] offers workspaces that are conducive to high productivity and a valuable degree of community, as we meet the needs of employees.

Customer Focus

The clients of [Company Name] are typically business owners, investors, business executives, and realtors seeking work spaces for 10-50 workers. They are focused on placing employees in the best environment available to encourage high-performance team production.

The clients of [Company Name] also recognize the wants and needs of their employees, so they may also seek full kitchens and workout rooms in addition to coworking spaces. [Company Name] strives to maximize their investment, whether by buying or leasing, by ensuring that production remains high and team enthusiasm matches production.

The demographics of current and potential clients within the US include:

  • Over 1 million business owners looking for coworking spaces
  • Almost 2 million employees currently work in coworking spaces
  • Over 58,000 investors are looking to invest in coworking spaces

Management Team

[Founder Name], [Founder Name] and [Founder Name] have been working together within the commercial real estate industry for over ten years.

[Founder Name] and [Founder Name] began working together as commercial real estate brokers ten years ago and [Founder Name] completed their circle of success as an escrow officer specializing in commercial building and leasing. This background of compatible roles has created the basis for our clients’ trust and confidence. We have created [Company Name], a profitable company, within the past six months that proves our company motto: Coworking Space Works.

Success Factors

[Company Name] can point to two highly-successful projects that have already been completed profitably within the past six months:

  • The Hillside Project, for a twenty-employee human resource management firm, became the cornerstone of our success. [Company Name] successfully provided coworking space and sound-proof partitions for the employees, with a kitchen area added as an employee bonus.
  • [Company Name] developed a conjoined space, The Broadstone Building, for our second client with equal success. A ten-person team of engineers was positioned strategically within a twenty-person programming group. The collaboration of the combined team has already produced stellar results for our client. In lieu of this success, our client has requested that [Company Name] assist with another large coworking space project.

Financial Highlights

In light of our early and profitable success, [Company Name] is currently seeking $280,000 to meet growth expectations. Specifically, these funds will be used as follows:

  • Working capital: $180,000 for 2 additional commercial real estate brokers and 1 administration director for a period of one year
  • 3D printer and CAD program for design and development plans: $100,000.

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%
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