Co-Working market in u.s.a.

Report
STERN SIGNATURE PROJECT
CO-WORKING MARKET IN U.S.A
STERN SIGNATURE PROJECT
- THE CO-WORKING MARKET IN U.S.
YISHAN “EVA” LIN
Sudharsun "Sud" Jagannathan
Agenda
 Co-working Definition & History
 Market Attractiveness
 Type of Co-working Spaces & Business Models
 Market Challenges & Opportunities
 Next Step
 Panel Speakers Introduction
•
•
•
•
NYU Stern MBA Class of 2016
Major in Strategy and Business Analytics
Business Analytics Manager at EMS
[email protected]
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NYU Stern MBA Class of 2015
Major in Strategy and Finance
Project Manager at Alacriti
[email protected]
WHAT IS COWORKING?
Coworking is a style of work that involves a shared working environment, often an office, and independent
activity. Unlike in a typical office environment, those co-working are usually not employed by the same
organization.
- Wikipedia
“Coworking Space” could share:
Office
Space
Office
Supply
Projects
Service
Talent
Comm
unity
Know
ledge
HOW DID CO-WORKING START?
 Emergence of freelance IT professionals in late 90’s
 The very first co-working space was based out of San Francisco.
 The term “co-work” was coined by Brad Neuberg, a noted software engineer.
 The rise of a technology enabled workforce, real estate crash of 2008 and dismal
job opportunities for young people fostered the growth of co-working
MARKET ATTRACTIVENESS
Self-Employed and contingent workforce 2005 – 2020
(In Millions)
% of Total Workforce
7%
16%
29%
40%
42
52
22
10
2005
2010
2013
2020
Industry growth drivers:





Mobile technologies
Internet access
Low costs of starting business
High reward for startups
Changed social image on selfemployment
THE MARKET NEED FOR CO-WORKING
Problems
Market Need
Isolation
Social
Connection
Distractions
Professional
Workspace
Innovation & Growth
Collaboration
• Share expertise
Chemistry
• New ideas or idea breakthrough
Sharing
High Capital
Infrastructure
Business
Infrastructure
• Refer biz to each other
• Combine talents for larger projects
• Found company together
Services and Costs by Space Providers
Facilities’ Involvement in
Customers’ Business Growth
TYPE OF CO-WORKING SPACE
Acceleration
& Funding
Biz Op &
Equipment
Service
Education /
Knowledge
Program
Networking
Events i.e.
Happy Hour
Office Space
& Amenity
Type 5: Provide Full-Service
Type 5:
Accommodate
Larger Team
Type 4: Provide
Additional
Biz Services
Type 3: Enhance Knowledge Sharing
Type 2: Build Community Sense
Type1: Office Rental for
Traditional Office Lease
Small Teams
Individuals
1-3 ppl team
4-12 ppl team
Startup Life Stage
12+ ppl team
Type of
Customers
COMMON BUSINESS MODELS & CHALLENGES
Revenue
Typical
co-working
service
provider
Cost
Membership
dues
Rent
Event hosting
etc
Additional
expenses
Educational
programs
Revenue
Specialized
co-working
service
provider
?
?
Consulting
services
Educational
programs
4) Limited profitability per
square foot
Rent
Equipment
?
2) Fixed amount of real estate
3) Limited ability to raise
membership dues (small
firms, short tenure, increasing
competition)
Cost
Membership
dues
1) Rising real estate cost
Staff salary
THE INDUSTRY FUTURE : INCREASING PLAYERS
New Work City Entrepreneur
The Yard
Real
Estate
B-Corp
Lab Central
Coworking
Market
Rocket Space
Incubator
Startup
Service Fueled Collective
Provider
THE INDUSTRY FUTURE : GROWTH STRATEGIES
A. Marketing Programs
Growth
Strategy
Invest in
retention
program
Turn on customer
acquisition budgets
B. Extension of Brand
Increase
value-added
services
Expand into
private
offices
C. Physical Expansion
Merger &
Acquisition
Geographic
expansion
Build virtual
member
network
NEXT PHASE OF RESEARCH
 What is the total number of co-working spaces in U.S.?
 Is co-working a result of the new just-in-time model of large
corporation, a lifestyle, or a function of bad economy?
 Does co-working environment have substantial impact on startup’s team
formation, productivity, or future success?
PANEL SPEAKERS
Tony Bacigalupo
Marissa Feinberg
Evan Malone
James Wahba
Molly Wenig Rubenstein
Jason Saltzman
Jason Juliano

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