Do you want to start a shared office space company and need to write a plan? If YES, here is a sample shared office business plan template & feasibility report.
There are loads of entrepreneurs out there that can’t afford a full office facility to run their business. The truth is that even if one can run his or her business from home, the fact still remains that it is more productive to work in an office environment than at home. When you work from home, you have to continually fight off distractions.
Table of Content
- 1 Why Start a Shared Office Space Business?
- 2 Industry Overview
- 3 Executive Summary
- 4 Our Facility and Services Offerings
- 5 Our Mission and Vision Statement
- 6 Job Roles and Responsibilities
- 7 SWOT Analysis
- 8 MARKET ANALYSIS
- 9 Our Target Market
- 10 SALES AND MARKETING STRATEGY
- 11 Sales Forecast
- 12 Publicity and Advertising Strategy
- 13 Financial Projections and Costing
- 14 BUSINESS GROWTH: Sustainability and Expansion Strategy
So, if you are looking towards solving this sort of problem in your community, you can start a shared office business. All you need to do is to rent a facility that is large enough to accommodate the number of spaces you would want to rent out or perhaps you already have a large office and you are not utilizing the whole space, you can generate income to pay your bills by leasing office space to people who don’t have the capacity to rent a full office for their business.
If you intend making great return from this type of business, you should target areas where you can get an appreciable number of aspiring entrepreneurs or startup businesses that would need an office to operate from. In order to start the process, you need to draft a good business plan.
The sample shared office space business plant template below will guide you on how to draft yours with little or no stress.
A Sample Shared Office Space Business Plan Template
Shared office space business is grouped under the serviced office leasing (SOL) industry in the United States and operators in this industry primarily rent or lease fully furnished office space to businesses on a part-time or as-needed basis to a myriad of businesses, ranging from start-ups to Fortune 500 companies.
The serviced office leasing (SOL) industry also provides virtual office and conference room leasing options to their clients. It is important to state that firms that provide conventional commercial leasing options are not part of the serviced office leasing (SOL) industry.
If you a close observer of the Serviced office leasing (SOL) industry, you will agree that the industry struggled during the recession when corporate profit declined and businesses closed shop. On the other hand, as the economy recovered, the industry experienced an upsurge in demand for its services.
Going forward, the revenue generated by players in this industry will continue to grow as the number of telecommuters in the workforce increases. The Serviced office leasing (SOL) industry is indeed a growing industry and pretty much active countries such as the United States, Japan, Singapore, Switzerland, United Kingdom and United Arab Emirates.
Statistics has it that in the United States of America alone, there are about 781 licensed and registered companies in this industry, employing about 3,358 and the industry rakes in a whooping sum of $2bn annually. The industry is projected to continue to grow at 6.3 percent going forward. Regus PLC, IWG PLC and WeWork have dominant market shares in this industry.
A recent publication released by IBISWorld shows that the Serviced office leasing (SOL) industry is in the growth stage of its life cycle. The report projected that industry value added, which measure’s the industry’s contribution to the economy will raise at an estimated average annual rate of 7.5 percent from 2011 to 2021.
The report further stated that GDP will grow at an annualized rate of 2.2 percent during the same period, indicating that the industry is growing faster than the economy as a whole. Businesses are increasingly turning to industry companies to rent or lease workspaces, including fully furnished offices, virtual offices and conference rooms. Renting or leasing office space is a cost-effective alternative to buying commercial property.
One of the major reasons why people subscribe to shared office space is because they want to maintain a professional business office address in a high – profile business district at the lowest possible cost.
So, if your intention is to start a shared office space business and also to maximize profits, then you must ensure that you lease your office facility in a high – profile business district. It will make it easier for you to market and attract clients. It is expensive to lease office facility in such areas, but you stand the chance of recouping your investment and also making profits.
From all available statistics, it is safer to say the Serviced office leasing (SOL) industry is growing steadily despite the competitive nature of the industry. One thing is certain, if the offices you offer for rent are well positioned, you have the required business skills, and business networks, you are likely not going to struggle to compete in the Serviced office leasing (SOL) industry.
The serviced office leasing (SOL) industry is still open to any aspiring entrepreneur who has the startup capital to start his or her own shared office space. As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition in the industry.
Green Acres® Shared Office Space Rentals, Inc. is a licensed and registered real estate business. We have been able to secure a standard and well – positioned office facility in a central district in Pennsylvania Avenue – Washington, D.C.
We are a shared office space rental company that is set to compete in the fast – growing industry not only in Pennsylvania Avenue – Washington, D.C., but also throughout the United States because we intend opening our shared office facilities in key cities across the United States.
Green Acres® Shared Office Space Rentals, Inc. will run a standard shared office facility for entrepreneurs and investors who may not want to shoulder the responsibilities of owning an office facility. Our business goal is to become one of the leading shared office space rental operators in the United States and we will make sure that we do all we can to compete favorably in the industry.
At Green Acres® Shared Office Space Rentals, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Green Acres® Shared Office Space Rentals, Inc. is owned by Sol Shannon and other investors (shareholders). Sol Shannon is a serial investor, and a core professional with hands-on experience in the real estate industry.
Our Facility and Services Offerings
Green Acres® Shared Office Space Rentals, Inc. is established with the aim of maximizing profits in the serviced office leasing (SOL) industry as a shared office space operator. We want to compete favorably with the leading shared office space operators in the United States which is why we have put in place a competent team that will ensure that our facility meets and even surpasses our customers’ expectations.
We will work hard to ensure that Green Acres® Shared Office Space Rentals, Inc. is not just accepted in Pennsylvania Avenue – Washington, D.C., but also in other cities in the United States of America where we intend opening chains of our facilities.
Our facility and services are listed below;
- Lease or rent fully furnished workspaces
- Lease or rent virtual offices
- Lease or rent conference and meeting rooms
- Provide telecommunication services to leases
- Provide other business services to leases
Our Mission and Vision Statement
- Our vision is to be the standard bearer in any city where we have our shared office space throughout the United States of America.
- Our mission is to provide a standard and well – equipped shared office space that can attract entrepreneurs and business people who may not want to shoulder the responsibilities of owning a standard office facility.
- We want to build a shared office space brand that can favorably compete with other leading brands in the serviced office leasing (SOL) industry in the United States.
Our Business Structure
Green Acres® Shared Office Space Rentals, Inc. intends starting small in Pennsylvania Avenue – Washington, D.C., but hopes to grow big in order to compete favorably with leading operators in the industry in the United States. We are aware of the importance of building a solid business structure that can support the kind of world class business cum brand we want to own.
This is why we are committed to only hire the best hands within our area of operation. At Green Acres® Shared Office Space Rentals, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- General Manager
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Facility Manager
- Client Service Executive
Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
- Serve as project manager of the organization; works directly with employees
- Develops strategic plan by studying the trends in the serviced office leasing (SOL) industry and financial opportunities; presenting assumptions; recommending objectives.
- Builds company image by collaborating with customers, government, community organizations, and employees
- Maintains quality service by establishing and enforcing organizational standards.
Human Resources and Admin Manager
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expansion and ensuring that all our shared office spaces are rented out/occupied all through the year
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Responsible for making sure that buildings (shared office space) and our services meet the needs of the people that work in them.
- Overseeing and agreeing contracts for services including security, parking, cleaning, catering, technology and so on
- Supervising multi-disciplinary teams of staff including cleaning, maintenance, grounds and security
- Ensuring that basic facilities such as water and heating, are well-maintained
- Allocating and managing space between buildings
- Ensuring that facilities meet government regulations and environmental, health and security standards
- Advising businesses on increasing energy efficiency and cost-effectiveness
- Overseeing building projects, renovations or refurbishments
- In charge of services such as cleaning, security and parking, to make sure the surrounding environment is in a suitable condition to work
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations’ promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for receiving and distribution of mails, bills ectara.
Green Acres® Shared Office Space Rentals, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured shared office space business that can favorably compete in the industry in the United States.
Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Green Acres® Shared Office Space Rentals, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Green Acres® Shared Office Space Rentals, Inc.;
Our well-equipped and well -located shared office facility is indeed a plus to the business. 1600 Pennsylvania Ave. is arguably the most famous address in America. Another positive hat we have going for us is the fact that we have a well – balanced team running the business.
Part of what may likely hinder us from optimizing our potentials in this business is the ability to raise within short notice, the required capital in the acquisition of choice properties that can indeed attract high – paying clients who are willing to pay more than the average for a shared office space.
In this age and time where entrepreneurs are looking for means to cut down startup expenses, a shared office space facility comes in handy. The rising popularity of shared office spaces is driving industry growth and influencing workplace transformations. The fact that there are increasing number of people embracing entrepreneurship means that there are great opportunities for us.
A major threat to our business is the rise of the concept of virtual office. Aside from the fact that it is cheaper, most virtual office rental businesses tend to get involved in providing communication and physical address services without bearing the financial burden to maintain the office facility for corporate organizations and businesses.
- Market Trends
A major trend shows that workplace transformations use tech and design to maximize office space and increase productivity, providing for cost-savings from a bottom-up perspective. On the smallest scale, coworking spaces are designed to reduce the square footage a company needs per employee.
Technology makes offices less necessary for some workers, leading to shared office spaces in some companies to maximize wasted desks. Younger workers are also demanding more creative, healthy office environments with every added convenience.
A recent trend shows that some operators in the industry are scaling the coworking model to fit the operational and cultural needs of service-based industries. The incentives of workplace transformations are twofold. The first is cost-effectiveness while the second, less tangible yet arguably more impactful incentive is the commoditization of modern workplace culture as characterized by Silicon Valley startups.
Even though cost-savings have long-been the most obvious incentive of shared office spaces, the perk of enabling large corporations to rebrand themselves in a piecemeal way is turning heads among Fortune 500 companies operating in the most traditional of industries.
Long term, the cost-efficiency of workplace transformations will likely remain the primary incentive. Reducing square footage per employee while maintaining or even boosting employee satisfaction is a win-win, no matter the industry. However, the cultural incentives of workplace transformations will continue to expand and evolve with the business environment itself.
Our Target Market
Before starting our shared office space rental business in Pennsylvania Avenue – Washington, D.C., we conducted a thorough market survey and feasibility studies and we are certain that there are loads of budding entrepreneurs, established entrepreneurs and businesses who need small office spaces.
Green Acres® Shared Office Space Rentals, Inc. will work towards providing services, facilities and environment that will help us reach out to our target market. In view of that, we have created strategies that will enable us reach out to various groups of people who we know will need our facilities.
Our Competitive Advantage
Surviving in the business world as a shared office space rental company operator requires more than just owning standard facilities (office spaces) but also how to network with entrepreneurs that can rent your office spaces. Because of the growing competition in this line of business, there is an increasing degree of related business activities, with big players dominating the market.
Our competitive advantage is anchored on the state of the art office space facility that we have, and of course the availability of the needed technology and services that an ideal shared office space should have. So also, we have a team of certified, creative and highly trained and experience workers.
Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the industry. Another strength that counts for us in the locations of our shared office space; they are located in one of the most must busiest places that is highly suitable for such business.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
SALES AND MARKETING STRATEGY
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales (occupancy of our shared office spaces) and our market share.
We will leverage on improving on our services, turnaround time and facility to ensure that we win new clients and retain old ones as well. Our unique selling proposition is that we are well positioned, we offer state of the art facility and people can easily access our facility.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets. Green Acres® Shared Office Space Rentals, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Advertise our shared office space business on national dailies, local TV station and local radio stations
- Promote our shared office space facilities online via our official website and all available social media platforms
- Introduce our business (shared office spaces) by sending introductory letters alongside our brochure to budding entrepreneurs, established entrepreneurs and key stake holders in Pennsylvania Avenue – Washington, D.C.
- Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
- Making our first impression count positively to those that patronize our facility for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our facility
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places in and around Pennsylvania Avenue – Washington, D.C.
- Create a loyalty plan that will enable us reward our consistent clients especially those that introduces their friends, associates and family members to the business.
- Engage on roadshows within our neighborhood to create awareness for our shared office space facility.
Sources of Income
Green Acres® Shared Office Space Rentals, Inc. is established with the aim of maximizing profits in the serviced office leasing (SOL) industry and we are going to go ensure that we do all it takes to meet and surpass the expectations of all our clients.
Green Acres® Shared Office Space Rentals, Inc. will generate income by offering the following facility and services;
- Lease or rent fully furnished workspaces
- Lease or rent virtual offices
- Lease or rent conference and meeting rooms
One thing is certain, there would always be business owners who would need to cut cost of starting the business hence the need to rent a small office space in a shared office facility.
We are well positioned to take on the available market in the shared office leasing (SOL) industry in Pennsylvania Avenue – Washington, D.C. and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our shared office space business to enviable heights.
We have been able to examine the shared office leasing (SOL) market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Green Acres® Shared Office Space Rentals, Inc. It is based on the location of our shared office facility and of course our target market;
- First Fiscal Year (FY1): $1.2 million
- Second Fiscal Year (FY2): $1.7 million
- Third Fiscal Year (FY3): $2.25 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same facility, amenities and services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than what our competitors are charging their clients in Pennsylvania Avenue – Washington, D.C.
- Payment Options
The payment policy adopted by Green Acres® Shared Office Space Rentals, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Green Acres® Shared Office Space Rentals, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for renting our shared office facility without any stress on their part.
Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for business people in the whole of Pennsylvania Avenue – Washington, D.C. and other cities in the United States of America where we intend opening our chains of shared office facilities which is why we have made provisions for effective publicity and advertisement of our business.
Below are the platforms we intend to leverage on to promote and advertise Green Acres® Shared Office Space Rentals, Inc.;
- Place adverts on both print (newspapers and real estate magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, micro blogs, Google + et al to promote our shared office spaces
- Distribute our fliers and handbills in target areas
- List our shared office space business in local directories / yellow pages
- Advertise our shared office space facility in our official website and employ strategies that will help us pull traffic to the site.
Financial Projections and Costing
When it comes to calculating the cost of starting a shared office space rental business, there are some key factors that should serve as a guide. The number of facilities needed to kick start the business and the size and location of the facility determines the total cost of setting up the business.
Below are some of the basic areas we will spend our startup capital in setting up our shared office space rental facility business;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $15,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $5,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing facility for the business – $1 million
- The total cost for facility remodeling to fit into the type of shared office space facility – $250,000
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $140,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
- The cost of launching a Website – $600
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about $1.5 million to successfully set up a medium scale but standard shared office space facility rental business in the United States of America.
Generating Funds/Startup Capital for Green Acres® Shared Office Space Rentals, Inc.
Green Acres® Shared Office Space Rentals, Inc. is a private – partnership business that is owned and financed by Mr. Sol Shannon and his business partner. They do not intend to welcome any external business partners which is why they decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $500,000 (Personal savings $400,000 and soft loan from family members $100,000) and we are at the final stages of obtaining a loan facility of $1 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
BUSINESS GROWTH: Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Green Acres® Shared Office Space Rentals, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to lease/rent our well – furnished and well – equipped shared office space facility a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Green Acres® Shared Office Space Rentals, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard facility and reconstructing the facility to fit into the kind of shared office space we want to manage: Competed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating official website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress
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