CoWorking Business Model: Profit vs. Non Profit

[Wes & Steve - Verge]

Hi all, my business partner and I are in the midst of launching a
space in downtown Wilmington, DE in the upcoming months. We have
already found and secured a space, but are still unsure of the proper
business model to employ. We have been leaning towards not-for-profit
mainly to have a better chance of raising some initial capital and
securing sponsorships. We would appreciate if anyone could give us
some pros and cons for whether for-profit or not-for-profit is the
better choice, as well as some tips on raising investment. Thanks!!!

[Alex Hillman]

Hey Guys,

This has been discussed extensively, but there's always more to say. If you could, though give the Google Group a search for the topic and then come back with some specific questions!

-Alex, IndyHall

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Alex Hillman
im always developing something
digital: al...@weknowhtml.com
helpful: www.unstick.me
visual: www.dangerouslyawesome.com
local: www.indyhall.org

[Mike Schinkel]

Suggestion: Engage heavily in the local Meetup.com community and aggressively start offering your space for free to Meetup organizers.

-Mike Schinkel

Ignition Alley Atlanta Coworking

http://ignitionalley.com

[Geoff DiMasi]

For profit.

:)

Geoff

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Geoff DiMasi
P'unk Avenue
215 755 1330
http://punkave.com

[Alex Hillman]

I'm sorry Geoff, but unless your response is in the form of a question, it is disqualified.

:)

What Geoff doesn't explain is that while we're a for-profit business entity, our business model is more often qualified as "not just for profit". I've written extensively on our decision to do this, and why, and what benefits it's afforded us.

Take a looksie:

http://www.dangerouslyawesome.com/2008/05/29/add-equal-parts-business-and-culture-blend-until-smooth/

Lately I've been thinking about "Triple Bottom Line" businesses, that operate on three goals: profit, people, planet.

http://en.wikipedia.org/wiki/Triple_bottom_line

While we may not be green certified, and the ecological benefits of sharing space are obvious, I've replaced "planet" with "place" in terms of IndyHall. Our focuses are on building fiscal capital to reinvest in the community, human social capital in the form of community, and regional social capital in the form of making Philadelphia a better place for us to work.

Geoff's background in founding and participating in non-profits helped guide us in the direction that while non-profits are great for some things, IndyHall wasn't one of those things. 

Since it sounds like your primary goal for going non-profit is for fund raising, I think you'll find plenty of people here that can help advise in alternative ways to raise funds without applying for a status that could cripple you down the road.

One more point and then I'm done: we've achieved profitability (that is, simply, monthly revenue exceeds our monthly expenses. nothing complicated or tricky to state that) within 6 months of opening our first space and again, last month, 5 months after opening our 2nd space.

-Alex, IndyHall

 

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Alex Hillman
im always developing something
digital: al...@weknowhtml.com
helpful: www.unstick.me
visual: www.dangerouslyawesome.com
local: www.indyhall.org

[Wes & Steve - Verge]

Hey Alex...sorry we never wrote back on this. Steve didn't tell me he
asked the question and in the midst of other business crap forgot to
get back to you. Thank's a lot for your insights. We've decided to go
for-profit for the reasons you've suggested and the input of others
that are helping us get on our feet.

Thanks again,

Wes Garnett

On Oct 15, 1:52 pm, Alex Hillman <dangerouslyawes...@gmail.com> wrote:
> I'm sorry Geoff, but unless your response is in the form of a question, it
> is disqualified.
> :)
>
> What Geoff doesn't explain is that while we're a for-profit business entity,
> our business model is more often qualified as "not just for profit". I've
> written extensively on our decision to do this, and why, and what benefits
> it's afforded us.
>
> Take a looksie:
>

> http://www.dangerouslyawesome.com/2008/05/29/add-equal-parts-business...

>
> Lately I've been thinking about "Triple Bottom Line" businesses, that

> operate on three goals: profit, people, planet.http://en.wikipedia.org/wiki/Triple_bottom_line

>
> While we may not be green certified, and the ecological benefits of sharing
> space are obvious, I've replaced "planet" with "place" in terms of IndyHall.
> Our focuses are on building fiscal capital to reinvest in the community,
> human social capital in the form of community, and regional social capital
> in the form of making Philadelphia a better place for us to work.
>
> Geoff's background in founding and participating in non-profits helped guide
> us in the direction that while non-profits are great for some things,
> IndyHall wasn't one of those things.
>
> Since it sounds like your primary goal for going non-profit is for fund
> raising, I think you'll find plenty of people here that can help advise in
> alternative ways to raise funds without applying for a status that could
> cripple you down the road.
>
> One more point and then I'm done: we've achieved profitability (that is,
> simply, monthly revenue exceeds our monthly expenses. nothing complicated or
> tricky to state that) within 6 months of opening our first space and again,
> last month, 5 months after opening our 2nd space.
>
> -Alex, IndyHall
>
> --
> -----
> --
> -----
> Alex Hillman
> im always developing something

> digital: a...@weknowhtml.com

> helpful:www.unstick.me
> visual:www.dangerouslyawesome.com
> local:www.indyhall.org
>
>
>
> On Thu, Oct 15, 2009 at 2:32 PM, Geoff DiMasi <ge...@punkave.com> wrote:
> > For profit.
> > :)
>
> > Geoff
>
> > --
> > Geoff DiMasi
> > P'unk Avenue
> > 215 755 1330
> >http://punkave.com
>
> > On Oct 15, 2009, at Oct 15,9:56 AM, Alex Hillman wrote:
>
> > Hey Guys,
>
> > This has been discussed extensively, but there's always more to say. If you
> > could, though give the Google Group a search for the topic and then come
> > back with some specific questions!
>
> > -Alex, IndyHall
>
> > --
> > -----
> > --
> > -----
> > Alex Hillman
> > im always developing something

> > digital: a...@weknowhtml.com