Hi I'm Trevor - Coworking space newbie

[Trevor]

Hi everyone,

My name is Trevor I live in Mississauga, Ontario which is very close
to Toronto for those of you who aren't familiar with the area. I'm
relatively new to the concept of coworking but I'm so excited that
this exists. I have been thinking about creating my own space and I
would like to start preparing a business plan. I don't really know how
to get started writing a business plan are there any good templates to
use? Can anyone suggest a good starting place?

[turbo2ltr]

Hi Trevor,

A great place to start is here:
http://www.google.com/search?q=business+plan+template

If you search around, I think there is a coworking business plan or
two that have been published by people, but I don't have a link.
Searching this group using the search box at the top right will give
you a *lot* of good info from the great people here.

Regards,
Mike Montalvo
www.collablab.net

[Alex Hillman]

Trevor,
Stop right there:
You don't need a business plan just yet, you need some people. Those people will be your business plan.

Yes, you could walk into a bank with a 10 page document explaining how and what you are going to do with their money...or you could walk in with signed checks from 10 paying members and say "see, they're already willing to pay for it".

Developing the community before you think "business plan" is critical, because your business plan is likely to NOT jive with the people you're ultimately trying to reach.

There are some great recent posts about community development roadmaps, and I have one that's a little more abstract that I crafted after seeing MILK at the end of last year:

http://www.dangerouslyawesome.com/2008/12/22/a-roadmap-for-community-organization-and-mobilization-harvey-milk/

Good luck!

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

[Trevor]

Thanks Alex! That is pretty good advice. I will start spreading the
word and start thinking of ways to get involved in different events
where I can spread the idea and see if there is any interest. I think
I'll still attempt to draft up a business plan just to help me
organize my thoughts. thanks again.

On Feb 25, 10:19 am, Alex Hillman <dangerouslyawes...@gmail.com>
wrote:

> Trevor,
> Stop right there:
> You don't need a business plan just yet, you need some people. Those people
> will be your business plan.
>
> Yes, you could walk into a bank with a 10 page document explaining how and
> what you are going to do with their money...or you could walk in with signed
> checks from 10 paying members and say "see, they're already willing to pay
> for it".
>
> Developing the community before you think "business plan" is critical,
> because your business plan is likely to NOT jive with the people you're
> ultimately trying to reach.
>
> There are some great recent posts about community development roadmaps, and
> I have one that's a little more abstract that I crafted after seeing MILK at
> the end of last year:
>

> http://www.dangerouslyawesome.com/2008/12/22/a-roadmap-for-community-...

>
> Good luck!
>
> -Alex
> --
> -----
> --
> -----
> Alex Hillman
> im always developing something

> digital: a...@weknowhtml.com

> helpful:www.unstick.me
> visual:www.dangerouslyawesome.com
> local:www.indyhall.org
>
>
>
> On Tue, Feb 24, 2009 at 4:58 PM, Trevor <trevord...@gmail.com> wrote:
>
> > Hi everyone,
>
> > My name is Trevor I live in Mississauga, Ontario which is very close
> > to Toronto for those of you who aren't familiar with the area.  I'm
> > relatively new to the concept of coworking but I'm so excited that
> > this exists.  I have been thinking about creating my own space and I
> > would like to start preparing a business plan. I don't really know how
> > to get started writing a business plan are there any good templates to

> > use?  Can anyone suggest a good starting place?- Hide quoted text -
>
> - Show quoted text -

[Trevor]

thanks turbo I was able to find some links in the "Files" link.

[Susan Potter]

While I completely agree with Alex that walking in to a bank with financial statements that show revenue already coming in is far better than going into a bank with an idea, a business plan should be used a  tool by business owners.  I am not sure about Alex's business/startup experiences, but as someone who has started a number of ventures from scratch I have found having a basic business plan (just in bullet point format for my own and partner reference) to be very beneficial, especially when you have partners.  You might be able to "wing it" by chance or because you have the right connections, but if you don't  have connections on your side, basic preparation is key no matter what business you want to start.

There isn't just one exact model for a coworking space or any business idea out there, there are multiple and every situation will likely be different.  I am not suggestion you violate the notion that a coworking space is about the people - not at all.

Each market (in this case physical location and target audience) has slightly different needs (i.e. in larger cities people might be
willing to travel 20 miles to a coworking space - in a small college town that would NEVER fly without anything *very* different about the offering, I don't know what though?).  Also while the target markets for all coworking spaces might seem to be the exact same in every location, I don't think that is true.  For example,  I know in some areas there are large numbers of tech freelancers (e.g. SF bay area and Raleigh-Durham both places I have lived and worked in before - not to mention Boston, DC metro, etc), whereas in other areas the types of freelancers will be less tech more professionally oriented (e.g. architects, lawyers, designers, etc.).  Having a plan to target the specific target audiences that are relevant to your area is definitely a good idea.  It helps you think through things like "who do I really want to attract to my space to make it a better experience for all involved", which creates a better overall ambiance and will be the backbone of your longer-term success.

Home grown spaces can work, in fact, many on this list have proved it can work.  However, that does not mean planning and preparation don't go a long way too.  I use business plans as a tool for organizing my thoughts and addressing potential pitfalls before they show up.  Since leaving the bay area I have steered away from VCs and only occasionally sought loans from banks or private investors, but I now always "write" a business plan if for no one else than for myself.  If you are using a business plan this way it doesn't need to suck the soul out of a venture.

Best,
Susan
--
Susan Potter
Collective Turf Coworking
Urbana, IL USA

[Alex Hillman]

Susan,
Your point that every market is different is exactly the point I'm making: not that you should go in unplanned, but a traditional business plan template isn't going to properly serve a venture like this in my opinion.

The plan you described: bullet points & flexible goals, and I'll even go so far as to define a mantra or set of core values, is going to help you have the check points for making decisions along the way.

Planning is extremely important, and running your coworking space like a business is important for your sustainability.

Just be ready for that plan to change once new people enter the mix :)

-Alex


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

[Dave Troy]

Susan, Alex -

Another way to think about this discussion is that one must conduct
research prior to writing a business plan.

If Trevor were to sit down and write a business plan now, what would
he write, exactly? With what raw data and information would he
populate this template? Would the product be anything other than
speculation?

By contrast, if he makes some effort to hold some regular Jelly
sessions, talks to his stakeholders about what locations, venues, and
values would drive the proposed coworking community, he would actually
have something substantive, true, and verifiable to talk about in his
business plan.

The argument against taking action without having a business plan is
that one will squander resources and fly rudderless; however,
conducting the research of having Jelly sessions costs only time and
can help verify whether his concept will work. In effect, the first
and only step of his business plan right now ought to be to conduct
market research.

That all said, as an experienced entrepreneur and angel investor, I
can attest to the fact that there is a time and a place for full-blown
business plans, and coworking as a business is simple and
straightforward enough that if you follow the simple step 1 of
assessing sufficient demand, the rest truly will fall into place. The
beauty of the coworking model is that unlike most businesses, it
doesn't need to generate a profit stream, so as a result, the planning
necessary beyond the hard work of community building is comparably
limited.

However, your mileage and community may vary; and as Alex said,
because your community DOES have its own DNA, you need to take the
time to understand it by conducting rigorous research in the form of
Jellies, camps, and tweetups. Otherwise, you're truly flying blind.

Dave



On Feb 25, 10:59 am, Alex Hillman <dangerouslyawes...@gmail.com>
wrote:

> Susan,
> Your point that every market is different is exactly the point I'm making:
> not that you should go in unplanned, but a traditional business plan
> template isn't going to properly serve a venture like this in my opinion.
>

> The plan you described: *bullet points & flexible goals*, and I'll even go
> so far as to define a *mantra* or set of *core values,* is going to help you

> have the check points for making decisions along the way.
>
> Planning is extremely important, and running your coworking space like a
> business is important for your sustainability.
>
> Just be ready for that plan to change once new people enter the mix :)
>
> -Alex
>
> --
> -----
> --
> -----
> Alex Hillman
> im always developing something

> digital: a...@weknowhtml.com

> >>http://www.dangerouslyawesome.com/2008/12/22/a-roadmap-for-community-...

>
> >> Good luck!
>
> >> -Alex
> >> --
> >> -----
> >> --
> >> -----
> >> Alex Hillman
> >> im always developing something

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

> >> helpful:www.unstick.me
> >> visual:www.dangerouslyawesome.com
> >> local:www.indyhall.org
>

[Susan Potter]

Just be ready for that plan to change once new people enter the mix :)

Thanks for clarifying, I think we agree then.  "Change happens", which is why I always keep my business plans in a bullet point list so that I am willing to let the plan evolve and update it whenever I need to.  Making it wordy usually makes people less inclined to update the plan when it needs to.  Do whatever works for you, everyone is different.  It doesn't need to be formal.  People I meet that are writing their first (or even second) business plan that come to me for advise always try to make this super formal and complex.  Remember you are writing this for yourself.  Put whatever obsceneities you want in the plan if that is the language that helps you think (who is anyone else to judge).  Just brush it up if/when you do want to get others (like lenders, etc.) involved.

Now that I understand Alex's stance I totally agree that blindly using a Coworking business template is not going to help anyone, except maybe to find a sucker to invest or lend money to you (although in this lending environment in US you'll need good luck with that one any way).  A general business template is helpful for those that have never written a business plan before to give them an idea of what to think about.  As you get better at the process you'll have your own template that you write out in your own way.

Don't be a robot business plan writer.  Otherwise the business will diverge completely away from what *you* really want it to be about and you'll be stuck in a 9-5 type of job you hate again (assuming you ever were a permanent employee) or perhaps even a 9-9 job that you resent from the core of your soul.  Of course, your plan needs to evolve as you get more feedback (prospect/customer opinions/suggestions, data, etc.), but always use your own ideas and incorporate your own style into the mix along with the community of "customers" you want to build.  All great businesses today from local to global build communities in and around their customer base to some degree with coworking this goes needs to go to the extreme.  You can't do that with a boilerplate business plan that someone else wrote and you just filled in the blanks.

The people that emailed me privately (yes there was more than one) to share my business plan with them take note!:)

Best,
Susan
----

[Matthew Wettergreen]

This coworking group exists because we've all learned a wealth of
knowledge from each other and have a firm commitment to the greater
community to in turn help everyone achieve success and sustainability.
Over the past three years (congratulations everyone), this sharing has
cemented the methodology for opening a successful coworking space.
Followed properly these steps are financially low-risk and move at the
pace of the community's needs. By jumping steps or opening a coworking
space in a vacuum you're making a high-risk move that could result in
something nobody wants, financial loss or worse, the closing of your
space.

These low-risk steps start with going out into the community and
talking about coworking but mostly listening (this is something that
Alex mentions again and again as being important) which will help you
discover what the needs and desires of the community are. If there is
no community then you build one through jellys or meetups. Once you
have the support of the community the next low-risk step would be
getting a commitment (not necessarily financial immediately) out of
the people who will become your anchors when you find a space. The
next low-risk step would be to document your search for a space based
on the stated needs of the community. With the community behind an
idea you're less likely to take a financial or business bath when you
open the space. Additional low-risk steps that relate to financials
would be to build based on the usage of your community, ie not
spending money on superfluous equipment until demonstrated need.

Low-risk steps and high transparency to your community and to the
google coworking group are essential for all of this. By doing this
you can immediately avoid problems like an empty space or thinking you
need an advertising or marketing budget to make your space successful.
By dropping a space into the landscape and saying "it's here, everyone
come" you're not only taking high-risk but you're working backwards
from a PROVEN methodology that will allow you to open with a path
towards success and a leg up towards sustainability. The most
successful coworking spaces have been the ones who have been the most
open with their process to both of these communities from the
beginning.Tara and Alex and Jacob and others were incredibly helpful
in the infancy of Caroline Collective preventing us from taking
financial or community missteps that could result in reduced success
for the space.

I dont' think anyone's arguing against forming a strategy but forming
a business plan for a coworking space before having a community behind
it might be putting the cart in front of the horse. A business plan if
eventually needed, should be simple because you can cull from
discussions with the community: the ones who will ultimately utilize
the coworking space, financially contribute, provide sweat equity and
ultimately evangelize the virtues of coworking. From another
standpoint, you already have a dynamic business plan and business
advisors: this google group, several posts by members of the coworking
community and the coworking wiki. There's enough information in those
places as well as the wealth of resources from the voices on the
google group that can help overcome any problem that people will come
up against. But this is only if you are open and transparent about
these problems.

Matthew

--
Matthew Wettergreen, Ph.D
coFounder - Caroline Collective
http://carolinecollective.cc

cell: 713.825.4613
email: mwette...@gmail.com
twitter: organ_printer
http://matthewwettergreen.com
--

On Feb 25, 9:59 am, Alex Hillman <dangerouslyawes...@gmail.com> wrote:
> Susan,
> Your point that every market is different is exactly the point I'm making:
> not that you should go in unplanned, but a traditional business plan
> template isn't going to properly serve a venture like this in my opinion.
>

> The plan you described: *bullet points & flexible goals*, and I'll even go

> so far as to define a *mantra* or set of *core values,* is going to help you

> have the check points for making decisions along the way.
>
> Planning is extremely important, and running your coworking space like a
> business is important for your sustainability.
>
> Just be ready for that plan to change once new people enter the mix :)
>
> -Alex
>
> --
> -----
> --
> -----
> Alex Hillman
> im always developing something

> digital: a...@weknowhtml.com

> >>http://www.dangerouslyawesome.com/2008/12/22/a-roadmap-for-community-...

>
> >> Good luck!
>
> >> -Alex
> >> --
> >> -----
> >> --
> >> -----
> >> Alex Hillman
> >> im always developing something

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

> >> helpful:www.unstick.me
> >> visual:www.dangerouslyawesome.com
> >> local:www.indyhall.org
>

[turbo2ltr]

As someone who "put the cart before the horse", I would agree with
Alex, don't worry about the business plan at this point, get the
people first, then the business plan will define itself. I made this
mistake and now I have a space that is open but has no users (yet).

-Mike


On Feb 25, 10:36 am, Matthew Wettergreen <mwettergr...@gmail.com>
wrote:

> email: mwettergr...@gmail.com
> twitter: organ_printerhttp://matthewwettergreen.com

[Trevor Dean]

Fantastic thread!  thanks to everyone who responded I have tried to absorb what was said and I will hopefully put this advice to good use.  I'm going to look into community interaction and think about hosting/participating in democamps as well as finding out more about "jelly" sessions.

[ruyoung]

hi trevor!

my business partner and i are making some great headway to creating a
space in toronto, and once we're up and running we'd love to have you
trek in for a visit. (or hey, coffee anytime before then)

we started by getting the community together, and i'm just now writing
a business plan to show to some of our potential supporters. but i
absolutely agree that getting the community interested and together is
the way to start. and sure, there's nothing wrong with gettng some
ideas down on paper to organise your thoughts so that you know what
you're talking about when you do meet prospective members.

i love that you have an interest in starting someting in mississauga.
it is needed, as you'll soon find out when you start spreading the
word. if we get any interest from 905 folks i'll be sure to send them
your way.
r.

rachel [at] camaraderie.ca

On Feb 24, 4:58 pm, Trevor <trevord...@gmail.com> wrote:
> Hi everyone,
>
> My name is Trevor I live in Mississauga, Ontario which is very close

> toTorontofor those of you who aren't familiar with the area.  I'm

[hiro...@gmail.com]

Here's a general guide...
 http://www.bplans.com/hurdle_email/index.cfm

[Trevor Dean]

Hey Rachel,

 

thank you for the offer to come down and visit.  If you have the time I would like to take you up on your offer to chat about what you guy's are doing and get some ideas on how to get more involved in the community or how to get their feedback.  I'll email you and see if we can set up some time in the near future if that works for you?

[ruyoung]

sure thing! let's hammer out a time (off this list) and set something
up.

and i'm assuming you are the trevor behind the potential democamp
mississauga? that's awesome. THAT'S the way to bring the freelance
tech community together. make sure you do a presentation there too,
not just host it. i've tweeted your democamp link and see that leila
(one of the organisers from last night's very successful democamp
toronto) just retweeted it, so maybe we can be a bit of help to
generate interest. maybe you can come in for the next toronto one? i
think it will be in late apr.
r.