I spoke with Jasper briefly about this. I rent a desk currently but if
consider it too. Its not much of an extra revenue stream but it lends
a little clout to our appeal. It *looks* good because the times are on
our side. People and government seem excited about this kind of thing.
> On 26 September 2012 19:23, Mike <hacksp...
>> At first glance this sounds quite insane. On the other hand, so does
>> the idea of running out a fibre optic Internet connection to the middle
>> of a field (before someone corrects me, I'm thinking CCC not EMF). So
>> does running your own GSM network (think HAR here) and launching a
>> rocket 25km into the air, I mean who the f*** would let you do that?
>> (As it turns out, you speak to the CAA and they clear the airspace for
>> you. Doesn't that sounds nuts). So, back to the question in hand:
>> Could London HackSpace raise the capitial to purchase Kingsway Telephone
>> Exchange from BT Telecommunications PLC?
>> Is it still for sale? It was placed for sale by BT in 2008. I can't
>> find any indication that a sale has been completed and so it is my
>> belief that the site is still available.
>> Could we really raise four million pounds? Obviously for a start it
>> seems extreemly unlikely that we could just find four million quid in a
>> quick whip round. So we'd have to look to a bank to finance the
>> purchase. I have no idea how much the plan to charge but it seems
>> sensible that it will depend on the likelyhood of them ever seeing that
>> money again. So the next question appears to be "how likely is that?"
>> Firstly the good news is that the bank is purchasing a piece of property
>> and it's doing so in the middle of a recession. In all likelyhood, even
>> if we fuck up really bad, the bank can sell Kingsway for what they paid
>> for it. That massively reduces their risk. It's slightly unfortunate
>> that we would not be able to start from the beginning with a MRR that
>> would cover the mothly repayments but that is what banks tend to do when
>> they loan money to businesses and we have plenty of room to grow. This
>> then brings us onto how we grow our revenue stream. Firstly, let's look
>> at our standard model - the subscription. At the moment we are running
>> at a capcity of 500 to 2,600 sq feet of space. Scaling that up to the
>> 70,000 odd square feet of Kingsway gives us approximatly 25 times the
>> space, hence a theoretical max membership of 12,500. Let's assume they
>> pay an average subscription of 20 quid a month, that gives a MRR of
>> 250,000 GBP a month or 3,000,000 a year. Nice. OK, so that gives us an
>> idea of the supply, what demand can we expect? Several things work in
>> our favour. Firstly, for quite a while, we haven't even tried to expand
>> and that suggests that if we put the word out, we can see an
>> acceleration of our current growth. Second, with a Central London (and
>> let's face it, very fucking cool) location, we make ourselves far more
>> appealing to North, West and South London. Also, we make ourselves far
>> more accessible to the overground stations and hence to people
>> travlinging in from outside the M25. We need to further quanitify that.
>> Could we really scale to 12,500 members and how long would that take?
>> One thing that does work in our favour is that having 70,000 sq feet of
>> Central London real estate, while being a group of 500 is that we can
>> rent out what we are not using. The rental income should help offset
>> the shortage in membership fees. I suspect aside from subscription, our
>> biggest revenue stream would be venue hire.
>> An idea was suggested (and I'm sure in jest) that we start a pledge.
>> This may not be as insane as it sounds. Having a certain amount of
>> capital up front is certainly advantagous and anything we don't have to
>> borrow from the bank we don't have to pay back. To that extent and
>> along similar lines, maybe we could explore something along the lines of
>> lifetime membership. Offered it return for an upfront payment.
>> In summary, what I'm saying is that the idea appears at first to be
>> bonkers. With a little though it appears that it *might* be viable.
>> Maybe it's worth doing a litle more research to see if there is any
>> feasibility in it? Perhaps trying to put some real figures on the
>> numbers above that I've pulled out of my arse. Maybe working out of
>> there is a realistic probability of a bank lending us some money and, of
>> course, working out if the fucking thing is actually still for sale :-)
> Well volunteered.
> If your property management venture works out, you can certainly count
> London Hackspace in as a tenant as long as the price is below £10/sq
> Russ Garrett