262. 5 Reasons Coworking Spaces Fail

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If you are working on a first location or an expansion, there are a few things you need to get right to position your coworking business for success.

 

Four of the most common mistakes that lead to space failure are decisions that are made before you even open a space. You can’t out-market or out-operate these mistakes.

1. The location and/or product mix don’t align with the demand in your market and your ideal customer avatar
2. The real estate deal is bad. The buildout is too expensive, your free rent period is too short, and your rent is too high.
3. Your space is too small to align with your profit goals.
4. You’re not capitalized well enough to get through the fill-up phase.
5. You don’t have a marketing budget (this is the easiest problem to solve).

Listen to the full episode for a deep dive into each mistake.