Executive Summary:

Downtown Līhu’e Coworking Space aims to establish a vibrant and inclusive community-driven co-working space, providing entrepreneurs, freelancers, and remote workers with an innovative environment to collaborate, create, and thrive. Situated in a prime 3,000 square foot location equipped with essential amenities, including sound booths, meeting rooms, a retail shop, and a coffee shop, we offer three membership tiers catering to various workstyles and needs. Our mission is to foster creativity, productivity, and networking opportunities while supporting the local community. Over the next five years, we envision expansion, increased membership, and enhanced services, solidifying our position as a cornerstone of the entrepreneurial ecosystem.

Objectives:

  1. Establish Coworking Space as the premier destination for professionals seeking a collaborative and dynamic work environment.

  2. Cultivate a diverse and engaged community through networking events, workshops, and mentorship programs.

  3. Expand our membership base and increase retention through tailored membership tiers and exceptional service offerings.

  4. Achieve financial sustainability and profitability through strategic partnerships, revenue diversification, and operational efficiency.

  5. Contribute positively to the local economy and support social initiatives through partnerships and community engagement.

Business Description:

Coworking Space will operate as a nonprofit organization, focusing on community building and providing affordable workspace solutions. Our facility features an open workspace, meeting room, retail shop showcasing products from local artisans, and a cozy coffee shop serving as a hub for networking and collaboration. Additionally, two sound booths will cater to individuals requiring privacy for calls or recording sessions.

Market Analysis:

The demand for flexible and collaborative workspaces has surged in recent years, driven by the rise of remote work, entrepreneurship, and the gig economy. With the increasing need for affordable office space and networking opportunities, co-working spaces have become integral to the modern workforce. [Your Co-working Space] will capitalize on this trend by offering a diverse range of membership options and fostering a vibrant community.

Membership Tiers:

  1. Pop-in Membership: Ideal for occasional users who require flexibility. Includes access to open workspace and amenities on a pay-as-you-go basis.

  2. Casual Membership: Designed for individuals seeking a part-time workspace solution. Includes limited monthly access to the co-working space and amenities.

  3. Committed Membership: Tailored for full-time professionals and teams. Offers unlimited access to the co-working space, meeting rooms, sound booths, and additional perks such as discounted retail and coffee shop purchases.

Marketing Strategy:

  1. Digital Marketing: Utilize social media, email campaigns, and a user-friendly website to promote membership tiers, events, and special offers.

  2. Community Engagement: Host networking events, workshops, and seminars to attract new members and foster a sense of belonging.

  3. Partnerships: Collaborate with local businesses, educational institutions, and organizations to expand our reach and provide value-added services to members.

Financial Projections:

  1. Revenue Streams: Membership fees, retail sales, coffee shop revenue, event rentals, and sponsorships.

  2. Operating Expenses: Rent, utilities, staff salaries, marketing expenses, maintenance, and administrative costs.

  3. Profitability: Projected revenue growth and cost management strategies aim to achieve financial sustainability by the end of year three.

Expansion Plan:

  1. Identify potential locations for satellite co-working spaces based on demand and demographic analysis.

  2. Secure funding through grants, donations, and partnerships to finance expansion initiatives.

  3. Implement scalable operational processes and community-building strategies to replicate the

    success of the flagship location.

Conclusion:

Coworking Space is poised to become a beacon of innovation and collaboration within the local community. By offering diverse membership options, fostering a vibrant community, and delivering exceptional services, we are committed to empowering professionals and driving positive social impact. Through strategic growth and unwavering dedication to our mission, we aim to establish [Your Co-working Space] as a cornerstone of the entrepreneurial ecosystem for years to come.

1. Buildout Cost (6-month timeline):

  • ●  Month 1-2: Planning and Permits

    • ●  Architectural design: $5,000

    • ●  Permits and licenses: $2,000

  • ●  Month 2-4: Construction

    • ●  Interior renovations (flooring, walls, lighting): $50,000

    • ●  Installation of cafe and retail fixtures: $20,000

  • ●  Month 4-6: Furnishings and Equipment

    • ●  Furniture for co-working space and cafe: $15,000

    • ●  Kitchen equipment for the cafe: $30,000

  • ●  Total Buildout Cost: $122,000 2. Operational Budget (5 years):

● Year 1:

  • ●  Monthly Expenses:

    • ●  Rent: $9,000/month

    • ●  Utilities (electricity, water, internet): $800/month

    • ●  Staff salaries (2 full-time, 4 part-time): $8,000/month

    • ●  Inventory for cafe and retail shop: $5,000/month

    • ●  Marketing and advertising: $500/month

    • ●  Maintenance and repairs: $300/month

  • ●  Total Yearly Expenses: $276,600 ● Year2-Year5:

  • ●  Assumed Annual Increase: 3% (for inflation and potential growth)

  • ●  Monthly Expenses (Adjusted):

    • ●  Rent: $9,090/month (rounded)

    • ●  Utilities: $825/month (rounded)

    • ●  Staff salaries: $8,240/month (rounded)

    • ●  Inventory: $5,150/month (rounded)

    • ●  Marketing and advertising: $515/month (rounded)

    • ●  Maintenance and repairs: $310/month (rounded)

  • ●  Total Yearly Expenses (Adjusted for Inflation): Approximately $279,280 (rounded)

    3. Total Operational Budget for 5 Years:

  • ●  Year 1: $276,600

  • ●  Year 2: $279,280 (rounded)

  • ●  Year 3: $279,280 (rounded)

  • ●  Year 4: $279,280 (rounded)

  • ●  Year 5: $279,280 (rounded)

    4. Grand Total Budget (Buildout + 5-Year Operational):

  • ●  Buildout Cost: $122,000

  • ●  Total Operational Budget (5 years): Approximately $1,033,720 (rounded)

  • ●  Grand Total: Approximately $1,155,720 (rounded)

    This is a basic outline and the actual costs may vary depending on various factors such as location, specific requirements, market conditions, etc. Make sure to adjust the budget based on your specific needs and circumstances.

    Initial Funds

  • ●  Federal Incubation Grant: $145,000 (spread over 3 years, $48,333 per year)

  • ●  Tenant Improvement Funds from Lessor: $90,000 Year 1 (2024)
    Annual Income Breakdown

    1. TotalAnnualIncome:$300,000
    2. CoffeeShopRentalSublease(70%):$210,000 3. CoworkingMembership(10%):$30,000
    4. HostedEvents(7%):$21,000
    5. ClassesandWorkshops(6%):$18,000
    6. Fundraisers(3%):$9,000
    7. Sponsors(4%):$12,000

    Total Annual Income: $300,000

    Year 2 (2025)
    Annual Income Increase: 5%

    1. TotalAnnualIncome:$315,000
    2. CoffeeShopRentalSublease(70%):$220,500

3. CoworkingMembership(10%):$31,500 4. HostedEvents(7%):$22,050
5. ClassesandWorkshops(6%):$18,900 6. Fundraisers(3%):$9,450

7. Sponsors(4%):$12,600 Total Annual Income: $315,000 Year 3 (2026)
Annual Income Increase: 5%

1. TotalAnnualIncome:$330,750
2. CoffeeShopRentalSublease(70%):$231,525 3. CoworkingMembership(10%):$33,075
4. HostedEvents(7%):$23,152.50
5. ClassesandWorkshops(6%):$19,845
6. Fundraisers(3%):$9,922.50
7. Sponsors(4%):$13,230

Total Annual Income: $330,750

Year 4 (2027)
Annual Income Increase: 6%

1. TotalAnnualIncome:$350,596
2. CoffeeShopRentalSublease(70%):$245,417.20 3. CoworkingMembership(10%):$35,059.60
4. HostedEvents(7%):$24,541.72
5. ClassesandWorkshops(6%):$21,035.76
6. Fundraisers(3%):$10,517.88
7. Sponsors(4%):$14,023.84

Total Annual Income: $350,596

Year 5 (2028)
Annual Income Increase: 7%

1. TotalAnnualIncome:$375,138.18
2. CoffeeShopRentalSublease(70%):$262,596.73 3. CoworkingMembership(10%):$37,513.82

4. HostedEvents(7%):$26,259.67
5. ClassesandWorkshops(6%):$22,508.29 6. Fundraisers(3%):$11,254.15
7. Sponsors(4%):$15,005.53

Total Annual Income: $375,138.18 Summary of Income Over 5 Years

1. Year1:$300,000
2. Year2:$315,000
3. Year3:$330,750
4. Year4:$350,596
5. Year5:$375,138.18

Total Income Over 5 Years: $1,671,484.18 Notes

  • ●  The federal incubation grant is spread over the first three years, contributing $48,333 annually.

  • ●  The tenant improvement funds are a one-time contribution in the first year.

  • ●  The annual income is expected to grow by a percentage increase each year,

    starting at 5% and gradually increasing to 7% by the fifth year.

  • ●  The coffee shop rental sublease contributes 70% of the total annual income, with the remaining 30% coming from coworking memberships, hosted events, classes

    and workshops, fundraisers, and sponsors.