A coworking space, like any business, has its challenges. You may feel that you have everything figured out, but is that all? No, a coworking business could present specific issues that could affect its growth. You need to anticipate these challenges and work on solving them. So what are some of these challenges from a coworking space?
A disconnect between rental charges and client demand
Note that you run a business, and a consistent clientele is what you need to keep your business running. The mind of most coworking space clients is that they are either merely changing their work environment for a short while. What happens is, it causes a feast and famine for your business where you have clients at one time and run dry on other seasons. This is not sound business logic, hence something you may want to look into considering you leased this space and need to recover that money and still get a profit out of it.
The issue of data privacy
Over the past few years, cybercrime has grown in scale. Many people coming to your coworking space may be working on very sensitive projects using your network. Some clients are wary of losing or having their information stolen over the network. It makes it an even worse challenge for you considering this is not something most coworking spaces like yourself include in their budget. You may need to go for solutions that guarantee your clients information security.
People are identifying coworking space businesses as a viable business opportunity. With years going by, there will be a lot of competition in this market. If you started your coworking enterprise early, then there is a chance you may need to remodel and even rebrand. The reason is that you need to go with the trend the new competitors are introducing. Moreover, you need to cater to the always-changing needs of coworking space customers.
Bad customer retention rate
You need to ask yourself the kind of people that make up your client base. Coworking customers are mostly startups trying their hand in business. What happens is, most of these startups are always reviewing their budgets and save on their try and error projects. What this does is that it makes most of them want to try different shared office space. To keep your customers, you may try to offer incentives to most of these clients to stick around. In the end, you have to dig into your pockets and service your business. This can be unfair for business.
Electricity and physical security charges
Having a coworking space business in Bristol could mean you run the enterprise 24 hours, seven days a week, each day. What this means is you have to consume a lot of electricity. Not just that, you need security personnel. These charges can be crazy for you. Therefore, look out for this.
The challenges are endless in the world of business. As you run your coworking enterprise, look out for the various challenges that may surface. See whether you can sort them out and save your business from collapse.