"How do I start a coworking space" is the single most common question people ask once they start poking around this industry. It makes sense. It looks fun. It looks simple. It looks profitable. And it *can* be all of those things. But I’ve been doing this for almost a decade and I want to share what this actually looks like in the real world. A little raw, a little unpolished, but honest. This isn’t a textbook…this is the version I wish someone would have handed me before I signed my first lease.
Coworking is an incredible business, but it’s also very easy to get wrong. Let’s get into it.
1. Starting Out
A lot of people think opening a coworking space means grabbing some Craigslist furniture, tossing it in a room, flipping on some WiFi and calling it good. That is not coworking, and it’s not what creates a healthy community or a sustainable business.
There are real decisions here and real consequences. You have to think about the space, the structure, the layout, and the long term. You have to be honest with yourself about what kind of owner you are. You have to know what you’re getting into.
Coworking is simple, but it’s not sloppy. There’s a difference.
In regards to market research, don't overthink. What are the other spaces doing? Where are they located, how many are there? Are they full? Go see for yourself.
Be honest with yourself. If you open a space, will people come? What incentive will they have to come to yours over your competition?
2. Offices Versus Open Desks
This is one of the hardest things for new coworking space owners to wrap their heads around. You cannot build your financial model around “If I sell X number of flex memberships, it works.” That is the fastest way to get upside down.
Private offices (and cheaper/smaller ones, specifically) rent better than anything else. Almost always. If you’re looking at a floor plan and trying to make it make sense you have to focus on the things that are as close to guaranteed as possible. Private offices. Dedicated desks. The core, stable things that sell themselves.
Flex memberships are great. They add energy and they create community. They make the space feel alive, but they are not the foundation. They are the bonus on top.
Build your model around what is reliable, then let everything else be the upside.
3. Build Out and Construction
I want you to think deeply about this section, because this is where new oowners get blindsided.
Construction takes longer than you think. Even if you’re fast. Even if you have connections. Even if you have a GC you trust.
Six months is not unusual…and if you are renovating an older building, you will have new codes, new energy requirements, random surprises that pop out of nowhere, and inspections that add weeks you didn’t budget for.
Do not always go with the cheapest contractor! Cheap usually ends up expensive! It shows up in the quality, the timeline and the headaches. The architect and GC can be worth their weight in gold simply because they know the rules and prevent mistakes.
Take painters for example: If someone does a bad paint job, you’ll deal with peeling, uneven walls, stained floors, and more expense fixing what should have been simple. Same goes for electrical, plumbing, door installs, lighting. Everything is connected.
A general rule is to estimate generously and plan for the worst case scenario. If you do that, you’ll have pleasant surprises instead of terrible ones.
There are two types of coworking openings:
You found a space that already works. Maybe it was an office, a school, a call center, whatever. The bones are there. You clean it up, paint it, add furniture, and go.
You build from scratch. Walls. Electrical. HVAC. Permits. Everything.
If you are brand new to business, I do not recommend taking on a full build out. There is nothing wrong with finding a space that already has the structure in place. You can still make a beautiful, high quality coworking space with minimal construction. You just need vision and taste.
4. Functionality, Furniture and Aesthetic
Consider your amenities. Conference rooms are a money-maker (CHARGE FOR THEM). Do not give them away for free. Don't "include a few hours" with your memberships. Conference rooms charge $100-ish per hour for non-members - but you can't get a booking if somebody is squatting in your board room to take a 1 hour Zoom call in the middle of the day.
Phone Booths are a must-have, but that doesn't mean you have to spend $7,000 on the fancy ones you saw at WeWork. Having your GC build them in to your space is infinitely more affordable.
You can absolutely build a beautiful, modern space on a smart budget. You do not need thousand dollar chairs. You do not need marble countertops. You do not need to mirror what the $5 million coworking spaces in NYC are doing.
Keep everything intentional. Clean lines. Neutral tones. Consistency. Good lighting. Good layout. Functional flow.
It is very easy to overspend here. It is even easier to under-think it.
Consider functional amenities - not amenities for the sake of amenities. A podcast studio can be spun up for under $1,000. A photo studio for even less. These are useful assets for entrepreneurs that you can almost guarantee your competitors don't offer.
Hire an interior designer. Don't bring in your friend who has a cute apartment - hire a professional who eats, sleeps and breathes modern design trends. Your space's aesthetic can make or break your success.
5. Community Building and Events
The best coworking communities grow because people genuinely enjoy being in the space. If you want to do events, keep them simple and real.
No speakers selling courses. No long presentations. No sales pitches. Just real networking. Bring people together. Share a space. Let conversations happen the way they’re supposed to.
Host one open event per month. Make it public. Treat it like an open house. Do not advertise it that way, but understand that’s what it becomes. Have signage around the space showing what is available. Put QR codes on office doors so people can scan and check availability. Make the space feel alive.
Events are not the product. They are the support system around the product. They solidify your space as an authority within the community.
6. Money, Costs, and Reality
Coworking space startup costs generally include:
• Build out
• Furniture
• Deposits
• Insurance
• First and last month’s rent
• Networking equipment
• Branding and signage
• Technology
These numbers vary wildly depending on the building and your market, but the theme is always the same. Be ready for surprises.
Ongoing costs include:
• Rent
• Utilities
• Cleaning
• Internet
• Software
• Repairs
• Staff (eventually)
Hidden costs will appear. Something will break. Something will take longer. Something will cost more. That is normal. Do not deplete your entire savings. Do not stretch yourself so thin that one shock knocks out the business.
You do not need a thousand dollar coffee machine. You do not need staff on day one. You do not need to overbuild or overspend.
Coworking is a business where slow, steady growth wins.
7. Common Mistakes
Overbuilding.
Putting glass walls everywhere. Glass is expensive and adds very little value.
Tech sink.
You can get perfectly good security cameras for a fraction of the cost. You don't need Samsung Frame tvs in the hallways.
Underestimating construction timelines.
Always assume longer.
Justifying things to yourself.
“If I do this weird thing with the layout, people will probably be fine with it.”
They won’t. You shouldn’t build anything on “probably.” Every decision should be something you’re confident people will love.
Ignoring basics like parking or stairs.
People do not want to walk up three flights of stairs. These things matter.
Not looking at your competitors.
This is simple. Look at what the other spaces are doing, match them, then do it slightly better in every way you can. Price, accessibility, availability, aesthetic. You don’t have to reinvent anything. You just have to be the better option.
Not charging.
Virtual mail services can bring in $150-ish per member, per month. Your conference room can bring in a couple thousand dollars easily between member and non-member bookings. Your common areas can double as a bookable event space. You are in this business to make money, do not give any aspect away for free.
Don't complicate it.
No deposits. No long-term contracts. Your inner monologue driven by your business degree is going to urge you to sign long contracts - this isn't what coworking is about. It's meant to be cheap and easy, and if you won't give your potential member that they'll find it elsewhere.
Don't seem desperate.
Don't offer wild discounts as part of a grand opening push. Be confident in your offerings. Expect this to take some time.
Final Thoughts
Coworking is an amazing business when done intentionally. It can be simple. It can be affordable. It can be creative. It can be community driven. And it can be fun.
You just have to be honest with yourself, make wise decisions, and not overthink it. Start with the basics. Build something people actually want. Keep your head clear. And take your time.
If you do that, you’ll end up with a space that fills itself and a business you can be proud of.
