Scaling Your Coworking Business: Strategies For Multi-Location Management

In the dynamic world of coworking, where creativity meets collaboration, the industry is experiencing an unprecedented upturn.

Once a niche concept, coworking spaces have evolved into bustling hubs of innovation, attracting freelancers, startups, and even established companies seeking flexible, community-driven work environments.

This explosive growth is more than just a trend; it’s a testament to the changing landscape of how and where we work.

For coworking space operators, this surge presents a golden opportunity: the chance to scale their business and replicate success across multiple locations.

But scaling isn’t just about expansion; it’s about ensuring long-term success and profitability in an increasingly competitive market. As the industry continues to thrive, and more and more operators seek out this same opportunity, the importance of strategic growth becomes clear.

Expanding your coworking brand requires careful planning, innovative strategies, and a deep understanding of what makes each space thrive. By mastering the art of multi-location management, you’re not just growing a business—you’re building a legacy that could redefine the future of work.

Quick Summary

Here are five key strategies for scaling and managing multiple coworking locations:

• Assess Readiness for Expansion: Ensure high occupancy rates, strong community engagement, and financial stability before expanding. Conduct feasibility studies, including market research and risk assessments, to evaluate potential success in new locations.
• Develop a Scalable Business Model: Standardize operations with consistent branding, member experience, and a flexible pricing structure that adapts to regional markets, ensuring cohesion across all locations.
• Strong Management Team: Hire and train local managers with strong leadership and interpersonal skills, and balance centralized strategic control with decentralized day-to-day operations for responsiveness.
• Leverage Technology Solutions: Implement centralized management software and CRM systems for seamless multi-location management, enhancing operational efficiency, member tracking, and data-driven decision-making.
• Tailor Community Building and Marketing: Engage local communities with tailored events and partnerships while maintaining consistent brand messaging across locations through unified marketing and localized engagement strategies.

Assessing Readiness for Expansion

Scaling a coworking business is an exciting endeavor, but before taking the leap, it’s crucial to assess whether your current operation is truly ready for expansion.

A successful growth strategy begins with thoroughly evaluating your existing coworking space, ensuring that the foundation is solid and the timing is right.

Key Indicators for Expansion

Here are some tell-tale signs that indicate your coworking space is poised for growth and ready to scale successfully:

Consistently High Occupancy Rates: One of the most significant indicators that your coworking space is ready to scale is consistently high occupancy rates. If your space is frequently operating at or near full capacity, it indicates strong demand and effective space utilization. High occupancy not only boosts revenue but also creates a vibrant, active community – both are essential for sustaining multiple locations.

Furthermore, if you are unable to keep up with the space demand, not expanding your organization could actually hurt your business in the long run.

If paying members aren’t able to get the spaces they want when they want them, what’s stopping them from going somewhere else? If you are consistently seeing high occupancy rates and still have an influx of new member inquiries, it’s probably time to start exploring growth possibilities.

Strong Community Engagement: A thriving community is the heartbeat of any successful coworking space. If your members are actively participating in events, collaborating with one another, and showing loyalty to your brand, it’s typically a good sign that your community-building efforts are paying off.

A strong, engaged community at your flagship location can be a powerful foundation to replicate across new spaces. Behind every strong, community-forward membership base though, is a solid team.

Local managers are a huge reason your community is the way it is. When you have a team that is dedicated, engaged, and goal-oriented, it makes the idea of expanding seem like a dream. So take a look at your team and decide if you can lean on them to make this next endeavor a successful one.

Financial Stability and Profitability: Before even entertaining the notion of expanding, your current operation should be financially stable and profitable.

This means not only covering operational costs in your existing space but also generating enough profit to reinvest in the growth of another location. A solid financial footing ensures that you have the resources to support new locations without jeopardizing the success of your existing space.

Conducting a Feasibility Study

Even with these indicators pointing toward readiness, it’s essential to conduct a comprehensive feasibility study before expanding. This process will help you evaluate the potential success of new locations and minimize risks.

Steps to Conduct a Feasibility Study:

1. Market Research in Potential New Locations: Start by analyzing the demand for flexible workspaces in the area you’re considering. Look at demographic trends, the local business ecosystem, and economic conditions. Understanding the needs and preferences of potential members in these areas will help you tailor your offerings and choose locations with the highest growth potential.
2. Competitive Analysis: Assess the existing coworking spaces and other flexible workspace options in your target area. Identify gaps in the market that your brand could fill and evaluate the strengths and weaknesses of your competitors. This analysis will guide you in positioning your new location to stand out and attract members.
3. Risk Assessment: Every expansion venture carries risks, and it’s important to identify and evaluate them early on. Consider factors like economic downturns, changes in local regulations, or shifts in market demand. Develop strategies to mitigate these risks, such as diversifying your member base or creating flexible membership options that can adapt to market changes.

Developing a Scalable Business Model

Developing a scalable business model is essential as you prepare to expand your coworking business, ensuring consistency, efficiency, and brand cohesion across multiple locations.

This involves standardizing your operations, creating a consistent member experience, and establishing a flexible, yet uniform pricing structure that can adapt to different markets.

This doesn’t necessarily mean you need to open and run cookie-cutter coworking spaces though. Regardless of whether you’re simply looking to open one more location, or you have aspirations to create an entire coworking network, your business model should remain the same.

Location names, branding, color schemes, and physical appearance can all interchange amongst your different spaces, but the fundamental groundwork needs to be the same.

Hotel chains are the perfect example of this. Marriott, for instance, has over 30 brands under their umbrella ranging from Moxy Hotels to The Ritz-Carlton.

All of these child locations have their own names, branding, and value propositions, but remain under the stable operating practices of Marriott, ensuring a sense of cohesion and a quality experience every time.

Ultimately, the idea behind developing a scalable business model is to create a strong foundation for growth.

This approach not only streamlines the management of multiple locations but also enhances the overall member experience, making your coworking brand more attractive and resilient as you expand.

Standardizing Operations and Processes

Standardizing operational procedures ensures that every location operates smoothly and delivers a consistent member experience wherever they may be. It not only streamlines daily operations but also lays the foundation for scalable growth, making it easier to manage multiple locations with the same level of excellence.

You’ll want to consider the following:

• Create Operation Manuals and SOPs: To maintain operational consistency across all locations, it’s crucial to document your core processes. Develop detailed operation manuals and Standard Operating Procedures (SOPs) that outline everything from daily tasks and staff responsibilities to emergency protocols and reporting procedures. These documents should serve as a comprehensive guide for staff at all locations, ensuring that your coworking spaces operate smoothly and efficiently, regardless of where they are.
• Implement Consistent Branding and Member Experience: Your brand is the thread that connects all of your coworking locations. Whether a member walks into your flagship space or a new location, they should immediately recognize the same atmosphere, values, and experience. Regardless of whether or not you have the same paint color on the walls, members should still get the sense this is part of your overarching brand.

In most cases, coworking spaces will standardize the branding elements – logos, color schemes, interior design, furniture, and even office supplies – to create a cohesive identity. Keeping a consistent brand image helps to create brand loyalty and ongoing member satisfaction.

You can also stay on brand while honoring the exclusivity of each space with your tone, communication, and member experience. From the quality of customer service to the types of events and amenities offered, this consistency builds trust and loyalty among your members, encouraging them to stay with your brand wherever you expand.

Establishing a Scalable Pricing Structure

As you expand your coworking space to multiple locations, establishing a scalable pricing structure becomes vital for maintaining profitability and attracting a diverse range of members.

A well-designed pricing model should be flexible enough to accommodate different market demands while keeping some consistency across all locations.

Flexible Membership Options

A one-size-fits-all pricing model rarely works in a multi-location operation. Instead, developing a range of membership options that cater to different needs will allow you to attract a diverse member base and adapt to varying demands at each location.

Common membership options include:

• Hot Desking
• Day Passes
• Dedicated Desks
• Private Offices
• Weekend Coworking Space
• Community/Virtual Office
• Team/Corporate Plans

In addition, you might want to consider offering a free trial.

Regional Pricing Adjustments

Different markets may have different price sensitivities, so it’s important to adjust your pricing structure based on local economic conditions and competitor pricing.

When you conduct your market research as part of your preparation, try to understand what members in different regions are willing to pay and adjust your prices accordingly.

This regional pricing strategy ensures that your offerings remain competitive and accessible while maximizing revenue in each location.

Choosing the Right Locations

Selecting the right location for your coworking space is a critical step in scaling your business. The success of each new site hinges on a careful analysis of various factors that influence demand and member satisfaction.

From understanding the local market to ensuring convenience and accessibility, choosing the right location requires both strategic thinking and detailed research.

Factors to Consider When Selecting New Locations

Though there are several factors to consider when deciding your next location, the biggest questions you should ask yourself are, “Can this market sustain this type of business and will there be a demand for it?” and “How can I make it convenient for potential members to get to?”

Let’s get into it.

Demographic Analyses and Target Markets

The demographic profile of a location is a key determinant of its potential success. Analyze the local population to identify target markets, such as freelancers, startups, or remote workers.

Consider factors like age, income level, education, and industry presence, as these are all determining factors in the volume of demand.

In addition to providing insight into whether or not that market could sustain a coworking business, it will also help inform your value proposition and offerings.

For example, an urban setting with young, tech-savvy professionals could warrant a modern space with cutting-edge technology, while a suburban demographic may opt for a more community-focused environment with collaborative spaces and more social events.

Understanding your target market helps you tailor your space to meet local demand and attract the right members. Some spaces use coworking consulting services for help with that.

Accessibility and Transportation Links

Convenience and access are crucial for attracting and retaining members – think about it, how often do you decide against going somewhere solely because you aren’t sure what the parking situation will be?

Evaluating the transportation infrastructure around potential locations, including proximity to public transit and major highways, will help determine if it is an opportune spot.

Aside from public transportation, locations with ample parking are likely to draw in members who prioritize convenience. Providing parking, especially complimentary parking if feasible, is a huge draw to coworking spaces everywhere.

Proximity to Business Hubs and Amenities

A prime location near business districts, retail centers, or universities can greatly enhance the appeal of your coworking space.

Being close to other businesses and amenities, such as stores, cafes, restaurants, and gyms, adds value to your offering and provides members with everything they need within walking distance. Proximity to business hubs also fosters networking opportunities and collaboration, which are key selling points for coworking spaces.

Strategies for Site Selection

Strategic site selection not only influences your occupancy rates but also impacts the overall success of your expansion.

It is a driving factor that can either excel the business forward or be the cause of major detriments. Do yourself a service and consider the following strategies when selecting your site location:

1. Leverage Real Estate Partnerships: Building relationships with real estate professionals and developers can give you an edge in the site selection process. Real estate partners can provide valuable insights into emerging neighborhoods, upcoming developments, and prime commercial properties. They can also help negotiate favorable lease terms and identify opportunities that align with your business goals. Collaborating with real estate experts allows you to make informed decisions and secure locations that are positioned for growth.
2. Using Data Analytics for Site Selection: Data-driven decision-making is a powerful tool for choosing the right location. Utilize data analytics to assess potential sites, considering factors like foot traffic, competition density, and local economic indicators. Geographic Information Systems (GIS) and other analytics tools can map out demographic trends, transportation patterns, and commercial activity, helping you identify locations with the highest potential. By leveraging data, you can minimize risks and optimize site selection for long-term success.
3. Piloting with a Pop-Up Coworking Space: Before committing to a long-term lease or significant investment in a new location, you can test the market with a temporary or pop-up coworking space. This allows you to gauge local demand, gather feedback from potential members, and refine your offerings based on real-world insights. Pop-up spaces can be set up in vacant commercial properties or shared spaces with flexible lease terms.

Coworking champion Industrious has partnered with retailer, L.L.Bean, to launch coworking pop-ups in the past to encourage outdoor work and collaboration.

Likewise, Austin-based coworking startup, Reset, partners with local restaurants, renting out their spaces during off-hours. Their restaurants receive some extra income during slower times, and Reset creates buzz around their business and their name.

By piloting in this way, you can validate the viability of a location, build brand awareness, and make data-informed decisions before fully committing to a permanent site.

Building a Strong Management Team

As your coworking business expands to multiple locations, building a strong management team becomes critical to ensuring consistent operations, maintaining your brand’s culture, and driving success across all sites.

Effective leadership at every level is essential to managing the complexities of multi-location operations and ensuring each space, old and new, can thrive.

The Importance of Leadership in Multi-Location Management

Strong leadership is the backbone of any successful multi-location business. A study conducted by Forbes found that managers ranked poorly caused upwards of $1.2M in losses for the business, while the best leaders contributed to nearly $4.5M in gains.

With coworking environments, where member experience and community engagement are paramount, having capable managers who can lead with vision and adaptability is crucial.

Community managers are often the face of your brand, interacting with members daily, solving problems, and fostering a positive, inclusive community.

Their ability to lead effectively will directly impact member satisfaction, retention, and the overall success of each location.

Hiring and Training Local Managers

When hiring local managers, look for candidates who possess a blend of operational expertise and strong interpersonal skills.

Prioritize those with experience in hospitality or customer service, a passion for building connections and nurturing relationships, and proven leadership abilities.

Look for traits such as adaptability, problem-solving skills, and a passion for workplace excellence, as these are crucial in managing the dynamic environment of a coworking space.

Providing Ongoing Training and Support

Even the most qualified managers need ongoing training and support to succeed. Invest in regular training programs that cover not only operational processes and best practices, but also leadership development, conflict resolution, and community engagement strategies.

Provide resources such as workshops, mentorship from more experienced managers, and access to management tools that streamline tasks and improve efficiency.

Continuous support and development opportunities ensure that community managers stay aligned with your company’s goals and are equipped to handle the challenges of their roles, all while creating a positive, inclusive environment that enhances member satisfaction.

Centralized vs. Decentralized Management Approaches

Centralized and decentralized management approaches determine where decisions are made within an organization.

A centralized management approach is a structure where decision-making authority and control are concentrated at the top levels of an organization, typically at headquarters or within a core leadership team.

In this model, key decisions related to operations, policies, procedures, branding, and overall strategic direction are made by a central authority, ensuring consistency across all locations.

However, it can also lead to delays at the local level, prohibiting local managers from responding quickly to specific needs or opportunities.

A decentralized approach gives more autonomy to local managers, allowing them to make decisions that best suit the needs of their specific locations.

While the central leadership still provides overall strategic direction and core guidelines, the day-to-day operations, problem-solving, and even some strategic decisions are made closer to the action.

This flexibility can lead to greater responsiveness to local market demands and the ability to innovate within individual spaces. Without careful oversight though, it can result in inconsistencies in brand experience and operational practices across locations.

Finding the Right Balance

Like with anything, there are nuances to each management style. The key to successful multi-location management often lies in finding the right balance between centralized and decentralized approaches.

Consider centralizing core aspects like branding, financial management, and overall strategic direction, while decentralizing day-to-day operations and community engagement to allow local managers to tailor their efforts to the specific needs of their members.

This balanced approach provides both consistency and flexibility, empowering your management team to drive success at every location.

Multi-Location Management Technology

As your coworking business expands, managing multiple locations efficiently becomes more and more complex. Implementing the right technology solutions is crucial for maintaining seamless operations, enhancing communication, and ensuring a consistent member experience across all sites.

Centralized management software – a digital platform or suite of tools designed to manage all business functions from one central dashboard – is essential for overseeing day-to-day operations across multiple locations.

These platforms allow you to manage fundamental tasks using one single interface. This approach helps ensure consistency across different sites, streamlines administrative tasks and provides real-time insights into the performance of each location.

Key features of centralized management software include:

• Billing
• Member Management
• Resource Allocation
• Space Utilization
• Reporting and Data Analytics
• Visitor Check-Ins
• Communications

Customer Relationship Management (CRM) Systems

A CRM system – a software platform used to keep track of member interactions, manage leads, and personalize communication across all locations – is vital for managing relationships with your members and prospects.

By using a CRM, you can maintain a detailed history of each member’s preferences, billing information, and feedback, which helps in delivering a personalized experience that fosters loyalty.

Tools like HubSpot, Salesforce, or Zoho CRM can be customized to meet the specific needs of a coworking business, helping you manage and grow your community effectively.

Key Functions of a CRM include:

• Member Tracking
• Lead Management
• Database Communication
• Reporting and Analytics

Streamlining Communication and Collaboration

Effective communication is part of the foundation that needs to be laid for successful multi-location management.

In a multi-location coworking business, where operations can be complex and geographically dispersed, maintaining clear and consistent communication is essential to ensuring smooth day-to-day operations and a unified member experience.

Why streamlining communication is important:

• Consistency Across Locations: Ensures that all locations adhere to the same standards, policies, and procedures, maintaining a consistent brand experience for members.
• Efficient Decision-Making: Facilitates quicker, more informed decision-making by ensuring that all relevant parties are kept in the loop and can collaborate effectively.
• Enhanced Collaboration: Encourages collaboration between teams at different locations, fostering innovation and the sharing of best practices.
• Problem-Solving: Allows for quicker identification and resolution of issues, as information and feedback can be shared rapidly between locations.
• Employee Engagement: Keeps employees connected and engaged, regardless of where they work, which can improve job satisfaction and retention.

Virtual Meeting Platforms

With teams spread across different locations, virtual meetings become a necessity. Platforms like Zoom, Google Meet, or Microsoft Teams enable face-to-face communication without the need for travel, helping to maintain a strong connection between your headquarters and local managers.

Regular virtual meetings help in maintaining transparency, sharing updates, and addressing any challenges that arise, ensuring that all locations are managed effectively.

Marketing and Community Building Across Locations

Successfully scaling your coworking business involves not just managing operations, but also effectively marketing your brand and building a strong, engaged community across all locations.

A unified marketing strategy, combined with localized community engagement, can help you achieve this balance and ensure that your brand remains consistent, while also resonating with the unique characteristics of each location.

Unified Marketing Strategies

One of the most important aspects of multi-location management is consistency – consistency in experience, consistency in offerings, and consistency in branding and messaging.

In most cases, this includes using the same logos, color schemes, and brand voice in all communications.

Whether on your website, social media, or printed materials, a clear, consistent message helps build trust and recognition, making it easier for potential members to understand what your coworking space offers, no matter where they are located.

Creating a brand guideline document can be helpful to ensure that all locations adhere to the same standards.

However, when taking the network approach like that of Australian-based coworking group YoCo, logos and color schemes can vary.

While operating under the same foundational guidelines, each of YoCo’s spaces is its own entity. All this to say even if there is a different color on the wall, members should be able to feel the essence of your brand regardless of which location they step into.

Leveraging Social Media and Digital Marketing

Social media and digital marketing are powerful tools for promoting your coworking spaces across different locations.

Show up on platforms like Instagram, Facebook (Meta), LinkedIn, and Twitter (X) to share content that showcases your spaces, highlights member success stories, and promotes events.

Paid digital ads can be targeted to specific regions, helping you reach potential members in each area.

Additionally, you might want to consider creating location-specific social media accounts or pages/groups that cater to the unique needs and interests of the local community, while still adhering to your overarching brand strategy.

Localized Community Engagement

Community makes a coworking space what it is. Engaging with your members and encouraging them to interact with each other leads to strong connections and better collaboration.

Let’s explore some of the best ways to facilitate community engagement.

Hosting Local Events and Networking Opportunities

Hosting local events is an excellent way to foster community throughout your coworking spaces. Regular networking events, workshops, and social gatherings can help build connections among members and create a sense of belonging.

Tailor these events to the interests and needs of the local community, whether it’s industry-specific meetups, skill-sharing sessions, or wellness activities.

Local events not only enhance member engagement but also attract new members by showcasing the vibrant, collaborative environment your coworking space offers.

You could also get creative and add a local flare to your events, showcasing food, beverages, activities, and services from local vendors.

Hosting joint events with local businesses and organizations can strengthen your presence in the community and offer added value to your members.

Partnering with Local Businesses and Organizations

In addition to using local vendors to enhance your events, you might also want to consider cross-promotion with them.

Collaborate with nearby cafes, gyms, or retail stores to provide member discounts – they promote your space in their locations to grow your membership base and in turn, members will receive discounts to businesses they already know and love.

These types of partnerships can be mutually beneficial as they introduce new audiences to both businesses.

Not to mention that engaging with local chambers of commerce or business associations can further enhance your network and provide additional avenues for collaboration. These types of partnerships have limitless potential for attracting new members.

Monitoring Performance and Growth

As your coworking business expands into multiple locations, monitoring performance and growth becomes increasingly critical to ensuring long-term success.

Regularly tracking Key Performance Indicators (KPIs) allows you to gauge the health of each location, identify trends, and make informed decisions that drive continuous improvement.

Without consistent monitoring and analysis, it can be challenging to maintain the same level of service and profitability across all sites.

KPIs for Multi-Location Management Include:

• Occupancy Rates: Occupancy rates are a fundamental KPI for coworking spaces, indicating how much of your available space is being utilized. High occupancy rates suggest strong demand and efficient use of space, while lower rates might highlight the need for marketing efforts or adjustments in pricing. Tracking this KPI across locations helps you understand which spaces are performing well and which may require additional strategic attention.
• Revenue Per Location: Monitoring revenue per location provides insights into the financial performance of each site. This KPI helps you assess profitability, understand revenue streams, and compare performance across different locations. It also aids in identifying underperforming spaces and determining whether adjustments in pricing, marketing, or services are needed. Read more about the different types of coworking revenue here.
• Member Satisfaction and Retention Rates: Member satisfaction is crucial for retaining members and fostering a loyal community. Regular surveys, feedback forms, and direct communication can help you gauge member happiness and address any concerns promptly. Retention rates, or the percentage of members who continue their membership over time, are a direct reflection of member satisfaction. High retention rates indicate a strong community and a compelling value proposition, while low rates may signal the need for improvements in services, community engagement, or customer support.

Regular Performance Reviews and Reporting

Regular performance reviews and reporting are essential for staying on top of coworking KPIs and ensuring your business is on the right track. B

By conducting periodic reviews – monthly, quarterly, or annually – you can identify trends, benchmark performance across locations, and set goals for future growth.

Detailed reports that analyze KPIs provide a comprehensive overview of your business’s health and enable you to make data-driven decisions that enhance performance.

Putting the Data to Use

Data-driven decision-making is a powerful approach that allows you to base your strategies on actual performance metrics rather than assumptions. By leveraging data, you can:

• Identify Opportunities for Growth: Data can reveal which locations are thriving and what factors contribute to their success, allowing you to replicate those strategies in other locations.
• Optimize Operations: Analyzing data and having a better understanding of the state of the business can help you streamline operations, reduce costs, and improve efficiency across all locations.
• Adapt to Changing Conditions: The coworking industry is dynamic, and staying adaptable is key. Regularly reviewing performance data enables you to quickly respond to changes in market conditions, member needs, or competitive trends.
• Enhance Member Experience: Understanding what drives member satisfaction and retention allows you to tailor your services and community activities to better meet member expectations.

In Conclusion

Effectively managing multiple coworking locations requires a strategic approach that balances operational consistency with local community engagement.

From assessing your readiness for expansion and choosing the right locations, to building a strong management team, implementing technology solutions, and monitoring performance, each aspect of multi-location management plays a crucial role in the success of your coworking business.

The key to thriving in a multi-location environment lies in your ability to adapt, innovate, and leverage the right tools to keep everything running smoothly.

By following the strategies outlined in this post, you can ensure that your expansion efforts are well-planned, your brand remains consistent, and your operations are streamlined across all locations.