Introduction:

The usage of coworking spaces has increased in the past couple of years
and we owe that to the pandemic. The data is pretty clear: most people
don’t want to go back to the office but at the same time they don’t want
to be working exclusively from home either.

Considering all these changes and perspectives, companies are in a

difficult position: it wouldn’t be wise to keep going the old way if times
have changed, but at the same time, change is never an easy thing.

On the verge of those two dilemmas is where coworking spaces arise.

We’ll answer two important questions today: what are coworking spaces
and what opportunities do they offer? Let’s take them one by one.

What is a coworking space?

First things first, let’s settle on what coworking spaces are. Generally
speaking, coworking spaces are neutral offices where people come to
work from.

They are all equipped with all the amenities you need, but the difference
between coworking spaces and regular office spaces is that people from
a coworking space are working for different companies, clients or
businesses.

You can find various businesses and industries in a coworking space,

which is one benefit we will tackle later.
There are many types of coworking spaces available:

Open workspaces: the explanation is right in the name. These types of

workspaces have dedicated desks or hot desks and members from
different companies share the same area without having walls to divide
them.

private workspaces: these are the exact opposite of open spaces. You
and/or your team members can get a dedicated room with the number of
desks you may need. Another option is that you as an individual have a
private room to have your office, which is great if you need more silence
or privacy.

industry-specific: these spaces gather people that work in the same

industry so they can share thoughts, ideas, or similar experiences. These
can also be open or private.

venture/incubators: these are the most selective coworking

environments. The purpose of these workspaces is to attract and fund
start-ups by providing them with the support they need to grow.
All these spaces can have a different aesthetic or feel: formal, corporate,
funky, or colourful.
It’s up to you to find the one that suits you best.

The Project: Co-working space in Maadi

Local business name: Connected Co
Analyzing the local business environment, key factors related to the co-
working space industry, and the key competitors of a co-working space
located in Maadi.
1. Local business environment: Maadi is a suburb located in southern
Cairo, Egypt, and it is considered one of the upscale residential areas
in the city. In recent years, there has been a growing demand for co-
working spaces in Cairo, as more and more entrepreneurs and
freelancers are looking for affordable and flexible workspace
solutions. The local business environment in Maadi is favorable for
co-working spaces, as it is a relatively affluent area with a high
concentration of startups and small businesses.

2. Key factors related to the co-working space industry: The co-

working space industry is driven by several key factors, including
affordability, flexibility, convenience, and community. Co-working
spaces offer affordable workspace solutions that are often more cost-
effective than traditional office spaces. They also provide flexible work
arrangements that allow entrepreneurs and freelancers to work on their
own schedule. Additionally, co-working spaces are convenient, as they
often provide amenities such as high-speed internet, printing and
scanning services, and meeting rooms. Finally, co-working spaces offer
a sense of community, which can be a valuable resource for networking
and collaboration.

3. Key competitors: While there is a lack of co-working spaces in

Maadi, there are a few key competitors in the area. One of the main
competitors is The District, which is a co-working space located in the
nearby neighborhood of Zamalek. The District offers a variety of
workspace solutions, including private offices, shared desks, and
meeting rooms. Another competitor is The Platform, which is a co-
working space located in the downtown area of Cairo. The Platform
offers a range of workspace solutions, as well as additional services such
as event space rental and business support services. Finally, there is also
Niu, which is a co-working space located in the nearby neighborhood of
New Cairo. Niu offers a range of workspace solutions, as well as
amenities such as a gym, a café, and a roof terrace.

Overall, while there is a growing demand for co-working spaces in

Cairo, the market is still relatively new, and there is a lack of options in
some neighborhoods such as Maadi. However, there are a few key
competitors that offer a range of workspace solutions and amenities, and
it will be important for our new co-working space in Maadi to
differentiate itself and offer unique value propositions to attract and
retain customers.

Challenges that would face this co-working space:

1. Noise
Noise is inevitable in an often open space with multiple people
working. After all, coworking is for sharing ideas and knowledge,
so conversing is expected. Even so, excess noise can disrupt the
productivity of others working in your space.

2. Discrimination and Harassment

Coworking spaces are open to the public. People from different
backgrounds and companies will come together to use the space.
Unfortunately, discrimination and harassment between employees
are a possibility. Things will get more complicated when the
involved parties are from different companies.
3. Insufficient Equipment
A survey from ratings and reviews platform Clutch revealed that
insufficient equipment is among the top five coworking space
challenges. Failure to furnish your coworking space with the right
tools and equipment will lead clients to look for another space that
does.

A sufficient number of outlets is one such thing that people will

look for. Aside from installing additional outlets, have extension
cords on hand to lend to clients. Additionally, offer equipment for
rent such as computer mice, external monitors, and projectors (for
meeting rooms). For clients who work long hours, provide backrest
cushions that they can borrow.

4. Retaining Clients
With the number of coworking spaces increasing locally, you’ll
have more competition to deal with. This also means that if clients
are not satisfied with your service, they can easily choose to move
to any other coworking space in your area. As such, it’s important
to exceed their expectations and provide far more than just the
basic necessities to improve member retention.
5. Lack of Security
Another issue in coworking spaces is ensuring the people who use
your facilities are secure — both on- and offline. Installing CCTV
cameras and having someone monitor them at all times aids in
physical security, as well as giving people personal lockers to store
their equipment.

Cybersecurity is a different case. People will most likely connect

to the coworking space’s Wi-Fi to do their job correctly. If your
wireless network is encryption-free (meaning it does not require
any password), hackers can use it to access files and information
from people using the network. It’s thus crucial to have people
connect to your Wi-Fi using a unique ID and password.

6. Limited Space
LinkedIn shares a recent survey revealing that 39% find limited
space a challenge in coworking facilities. With many people
wanting to work at the same time, seats and tables are almost
always filled up.

7. Acquiring New Clients

While you may have regulars and loyal clients already, it’s always
good to attract new clients to your coworking space. There are a
few ways to go about this. If you choose to organize a referral
program, offer existing clients a discount whenever they bring in
an acquaintance or a group to work in your space. This entices
them to continuously refer your business while both of you benefit
from it.
Opportunities for this co-working space:

1. Independent Mail System

Connected Co provides the service of mail handling in terms of
receiving. If the company starts providing on-demand mail
receiving and delivery service, then it would attract many
sophisticated authoritative users.

2. Home Office Service

If the company maintains a record of interest and preferences of
people; when they come to check out the workspaces, then it
would help the management to established new workspaces like
home office.

3. Alliances with other Firms & Countries

As we know that the WeWork brand is expanding globally. If the
company begins to merge, acquire and partnering up with other
brands and companies. Then it can double its growth and
expansion.

4. working spaces will frequently integrate secretarial services as

well as a host of other business support services in order to
generate revenues beyond just the standard monthly rental fee.
One of the other ways of these businesses can readily expand
this by acquiring additional buildings within the same
metropolitan area in order to accommodate a greater number of
tenants
Business Model building blocks to Co-Working Space:
1- Customer Segments:
Creatives and freelancers, work-from-home professionals,
entrepreneurs, and corporate teams are among the many groups
who use coworking spaces and Families, adults and recent
graduates and people wanting to eat.

2- Value proposition:
The value proposition of co-working spaces for small businesses
can be summarized in a few key points:

1. Cost-effectiveness: Co-working spaces are often more cost-

effective than traditional office spaces, especially for small
businesses with limited budgets. They typically offer flexible
membership plans and shared resources such as meeting rooms,
printers, and high-speed internet, which can help small businesses
save money on overhead costs.

2. Networking opportunities: Co-working spaces are designed to

bring together entrepreneurs, freelancers, and small businesses
from various industries. This creates an environment that fosters
collaboration, networking, and knowledge-sharing, which can be
very valuable for small businesses looking to expand their
professional network and find new business opportunities.

3. Flexibility: Co-working spaces offer a high level of flexibility,

allowing small businesses to choose from different membership
plans based on their needs. This means that small businesses can
scale up or down their office space as needed, without being tied to
a long-term lease.
 4. Community: Co-working spaces often have a strong sense of
community, with events, workshops, and other activities
designed to bring members together. This can be a great way
for small businesses to meet like-minded professionals and
build relationships with other entrepreneurs.

Overall, the value proposition of co-working spaces for small

businesses is centered around cost-effectiveness, flexibility,
networking opportunities, and community.

3- Channels:
A physical store with menu’s and free space for workers via
internet.

4- Customer relationships:
A warm, personalised connection with customers that includes
participation in loyalty programmes and social media.

5- Revenue Streams:
Investing in office space and renting it out. The co-working space
has a certain number of workstations available for rent to
individuals, groups, and businesses.
The renting of workstations is the primary source of income.

6- Key Resources:
High-quality components, food and drinks equipment , a storefront
location.

7- Key Activities:
 Creating a good and calm environment to help the clients to
focus while working or studying.
  Providing a high-speed and reliable internet connection
without the worries of being disconnected during working or
studying.
 Also, Here are the refreshments usually available: Water
(Hot, Warm, and Cold), Freshly Brewed Coffee, Tea, and
Snacks.
Taking a break with refreshments can keep you going and
allow you to perform at your best.

8- Key Partnerships:
Collaboration and investment add value to our members, enhance
revenue, and generate new leads. Collaborations are frequently
advantageous strategies that enable us to grow our income.

Instead of having a fast food joint in our co-working space and

devoting a percentage of the revenue to putting it up and managing
it, we'll collaborate with a neighboring fast food joint to offer and
market their meals, snacks, drinks, and other goods.

Not only will this provide possibilities for clients to socialize and
serve as an extra amenity, but by giving bargains and discounts to
people who utilize our facility, our business will flourish as well,
making it a win-win situation.

9- Cost Structure:
Rent, utilities, labor, and marketing cost.
Recommendations to overcome issues/challenges co-working
space:

1-noise:

How to overcome it:

As much as possible, have separate rooms in your coworking space
meant for meetings and conversations.
This way, people who need to talk won’t disturb those who want to work
in silence. It also helps to install dividers or cubicles so each person or
group has a secluded working space.
During your next renovation, have sound insulation installed on or in
between walls. It’s the most effective way to absorb sound and prevent it
from traveling across space.
Lastly, place equipment like printers and copy machines in one area so
that their noise (and the people who use them) do not disturb others.

2- Discrimination and Harassment:

How to overcome it:

Although you’re responsible for handling such instances as the owner,
you don’t need to go about it alone. HR managers are the best equipped
to deal with such situations thanks to their interpersonal, leadership, and
problem-solving skills. They also know their own employees best.
Initiating and hosting a dialogue with the HR managers of the parties
involved is an ideal way for you to approach these cases.

In cases where the parties lack HR managers because they are self-
employed, your space’s community manager is the next best person to
involve. After all, they’re responsible for creating a healthy coworking
environment by welcoming clients and organizing fun activities.

You can also ask both HR and community managers for advice on how
to establish a plan for future incidents. Establishing guidelines or house
rules, like escorting insinuators outside or calling local authorities if
things escalate, can help you prevent similar events moving forward.

3- Insufficient Equipment:

How to overcome it:

To end, create a supplies station with notepads, staplers, pens, and other
stationery that workers often reach for when in an office. Sufficient
equipment in your coworking space displays your dedication to
delivering the best working experience for your clients.

4-Retaining Clients:

How to overcome it:

One way to start is by ensuring that your internet connection is always
stable. Internet routers have regular software updates for better security
and performance, so make sure it is always up-to-date. Another is to
install a kitchenette or supply unlimited coffee and snacks. More often
than not, clients work for long hours. This allows them to get their
sustenance within your coworking space, saving them the trouble of
going out.
One final tip is to regularly survey clients—perhaps, every other month.
Their feedback will provide insight on what else you can improve and
implement for their satisfaction. These steps can guarantee that you
provide the best service possible to retain your clients.

5- Lack of Security:
How to overcome it:
Hiring security personnel to monitor these networks and ensure
information safety also increases security, as they’re trained to detect
and resolve suspicious activities.
6- Limited Space:

How to overcome it:

One solution to this is creating a loft in your coworking space if the
ceiling height permits it. This creates an additional floor to hold more
people. Another is to allow people to reserve certain meeting rooms or
personal booths to ensure they’ll have a spot when they most need it. It
will also be beneficial to take advantage of floor space to maximize the
area—especially in spacious corners that can’t exactly hold a desk setup
without being too cluttered.

Set up bean bags, low tables, and floor cushions for those who prefer
working in a more relaxed state. Finally, acquiring long tables instead of
single desks can squeeze in a bit more people and take up less space.

7-Acquiring New Clients:

How to overcome it:

You can also partner with local businesses to bring attention to your
coworking space. Form business relationships with cafés or spas.
Arrange for your clients to get discounts or special offers from these
businesses. It encourages potential clients to join your space because
they get other benefits aside from having a place to work. Meanwhile,
you can woo potential clients by offering free trials to those who’ve
expressed interest in using your coworking space. It gives them a
glimpse of what they’re missing out on, so be sure to provide them with
excellent service.
References
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analysis-of-wework/

2. (2022, June 28). Retrieved from

https://nookaspace.com/opportunities-that-arise-in-coworking-
spaces/

3. Contributor, G. (2022, September 27). Common Challenges When

Running a Coworking Space — And How to Overcome Them.
Retrieved from https://www.optixapp.com/blog/coworking-space-
challenges/