PREPARED BY ONUR EKINCI, IMAGIN INC. IN COLLABORATION WITH THE HEPBURN SHIRE COMMUNITY FOR HEPBURN SHIRE COUNCIL,

WITH SUPPORT FROM RURAL COUNCILS VICTORIA.

REPORT TYPE

HEPBURNCOWORKING

FEASIBILITYSTUDY

INITIATIVE

WELCOME

Coworking spaces are popping up all over the world as a response to a global call for more flexible and creative working. Coworking is more than just a space with desks and chairs. The best coworking spaces are inspiring destinations to work, connect and collaborate.

As Rural Councils Victoria describes it in their Creative Industries Opportunities Paper:

“Creative hubs, co-working spaces . . . are informal community meeting places where like-minded people can get together, share ideas and collaborate.

Creative hubs / co-working spaces are a perfect fit for rural municipalities where a sense of ‘getting together’ and being part of a community has strong precedent. In inner metropolitan areas, the trend towards creative hubs is being driven primarily by young people who want to rekindle the kind of community ethos that is so prevalent in rural and regional areas.

The digital connectivity of creative hubs is important for rural creative micro-businesses because it can enable them to significantly expand their influence, overcoming ‘tyranny of distance’ issues to connect with their market wherever it is in the world. Hubs feature office facilities equipped with information and communications technology, meeting room facilities, kitchens and access to local amenities like cafés.

The great strength of successful hubs lies in their capacity to use digital connectivity to harness creativity and share ideas in a setting free from the restrictive conventions often associated with corporate working environments.”

This report captures a consultative journey undertaken with community members in Hepburn to study the feasibility of a creative coworking space in the Shire.

On behalf of the Hepburn community,Onur EkinciImagin inc.

1

EXECUTIVESUMMARY

The purpose of this project is to understand what demand there is for a coworking space in Hepburn and how that demand can be served sustainably.

What we found through a collaborative exploration with Hepburn community members was that a permanent coworking space would not be financially sustainable due to the small potential membership base.

Rather, to enable coworking in Hepburn, a semi-permanent model should be considered. For example, coworking on two or three set days a week. These scheduled coworking days would take place in existing community venues. This model would require next to no capital investment by leveraging existing infrastructure.

The coworking would be for desk bound, office style work. Allowing for makers and crafters, a strong demographic in Hepburn, to complete their weekly administration amongst professional service consultants. This type of coming together, will help different disciplines share skills, tools and knowledge. Overall, improving the level of connectivity and collaboration amongst the creative industries.

The next recommended step from here is to run a low-cost, low-risk pilot for coworking in Hepburn between September and November this year to test actual community behaviour. This pilot will allow us to test the ideas found in this report and design a coworking model fit for a regional setting.

2

WHO

The Hepburn Coworking feasibility study sought to test the level of interest for a coworking space with creative small businesses in the Hepburn Shire.

• Professional service consultants: freelancers, consultants, designers, developers

• Makers and crafters: artists, makers of gourmet food & beverages

During our time together, the community quickly recognised the value in having a diverse membership

base to cultivate a creative atmosphere and to draw on each others strengths and services through

collaboration.

3

OUR JOURNEYTOGETHER

Together, we undertook three workshops. Each, close to a fortnight apart, built on one another to

explore and create a clear vision of the opportunity. Below is a high level outline of the journey we took

together. This report is a write up and synthesis of discussions and outputs from each workshop.

The contents in this document have not been created in isolation, but through close collaboration with

the community. This close collaboration is key with any initiation of a coworking space. As the space is

for member use, the needs and desires of potential members need to be clearly captured and reflected

in any strategies moving forward.

You may note that attendance numbers did dwindle. It’s hard to ascertain the exact drivers though

finding the right audience for this project was part of the filter.

FINANCIALS & MANAGEMENT STRUCTURE

DATE: 17 MAR 2015 | LOCATION: Castlemaine | 3 Members

WHAT

THE VALUE & BENEFITS OF COWORKING

DATE: 10 FEB 2015 | LOCATION: Daylesford | 12 Members

WHY

LOCATION, SPATIAL LAYOUT & BUSINESS MODEL

DATE: 24 FEB 2015 | LOCATION: Creswick | 6 Members

HOW

4

WHY

People are drawn to coworking as its a source of creativity, collaboration and inspiration, which ultimately helps drive innovation. Such environments often lead to increased productivity and quality of work.

“Working at home is isolating. The days alone are long. I want to work in a collaborative environment where I can

share knowledge and experience with others.”

Source: 3rd Global Coworking Survey, deskmag, 2012

WHAT ADJECTIVES WOULD YOU USE TO DESCRIBE COWORKING?

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1. SOURCING LOCAL• Changing perceptions and promoting local talent

• Developing a collective identity

• Reducing commute for city workers

• Stacking up against larger companies through

collaborating on larger projects

2. BUSINESS GROWTH• Land bigger jobs through a strong local identity

• Partnerships with organisations like the Council and

universities could open up ongoing opportunities

• Shop front to promote and test products and

services safely

• Easier to get media coverage

3. COMMUNITY• Real opportunity for a positive culture

• Nature of conversation changes

• Change of energy

• Genuine co-creation

4. LEARNING & DEVELOPMENT• Help us stay closer to the cutting-edge

of all the changes

• Teach our clients (learning events)

• Partnerships increase understanding /

awareness of each other

5. SHARING RESOURCES• Share work when at capacity with trusted

colleagues

• Share knowledge and skills, especially

between generations

• Share resources such as internet, printer,

scanner, stationery, etc

I want to meet more people in the community.

In university there’s a structure for sharing ideas

and getting feedback. In adult life there isn’t

that structure.

I’ve got a lot of work gear, I could teach others

how to use it.

HOW MUCH HAS YOUR WORKSTYLE ALTEREDSINCE YOU WORK IN A COWORKING SPACE?

Source: 3rd Global Coworking Survey, deskmag, 2012

++/+ --/-

74%

2%

IDEAS RELATING TO BUSINESS

71%

3%

CREATIVITY

68%

12%

ABLE TO FOCUS

64%

8%

COMPLETING TASKS IN A GIVEN TIME

62%

3%

STANDARD OF WORK

The Hepburn community identified that a coworking space will deliver value in these five areas:

6

HOW

This section explores the physical and operational components of a coworking space. Such as the actual location for the space, the spatial layout and the business model.

You’ll note that the ideas listed are in preliminary form, which is to be expected as this is a process of

discovery and co-creation with the community. For many, this initiative has been the first time they’ve

thought about coworking and what it would look like in Hepburn. A short 2-3hr workshop isn’t going

to reach final answers, instead it’s going to activate the conversation and thinking required to come up

with final answers. As has been mentioned earlier, the process of co-creating a coworking space with

community is iterative. Answers today will inform answers tomorrow, i.e. the quality of thinking and

ideas will improve as we go over key questions again.

WHAT IT WILL HAVEHere are the key physical and spatial requirements:

• Desk space for professional services

• Workshop space for makers & crafters

• Public space for exhibiting to tourists & public

• Meeting rooms

• Teleconference space

• Area to relax

• Commercial kitchen

• Toilets

• Stationery station: printer, scanner, etc

• Bicycle parking

• Showers

SPATIALUTILISATION

15%

15%

35%

35%

OFFICE WORKSHOP

PUBLIC COMMERCIAL

7

WHERE IT WILL BE

Here are the preferred venues and destinations to locate a coworking space.

Along with location, here is some general information on the costs for rent in Hepburn:

COUNCIL OWNED BUILDING

If recognised as a “community group”, a not for profit benefiting the community, annual lease could be

as low as $104 each year. Depending on the coworking space, this could or could not include outgoings,

and could be increased as Council prescribes.

PRIVATE OWNED BUILDING

Daylesford is between $200 - $250 per sq metre. Example of a commercial property in Albert Street,

2 rooms with a kitchen and toilet = $1,300 + GST per calendar month or $17,160 per year. Commercial

properties are as low as $9 - $10K and high as $20 - $25K.

CRITERIA

• High visibility

• Flexible interior

• Good condition - not too

expensive to renovate

• Attractive shop front - i.e.

suitable for a coffee shop

PREFERENCE FOR LOCATION

• Creswick

• Daylesford

WHERE

8

HOW IT WOULD WORK We used the infamous Business Model Canvas to draw out the key components that would make up the business model for the coworking space.

This canvas provides a one page snapshot of how the coworking space would operate. It captures the

relationship between the various components of the business model and flow of activities between

these components.

BUSINESSMODEL

9

BUSINESS MODELCANVAS

KEY PARTNERS

• Hepburn Shire Council

• State Gov

• NICE program

• Universities

• High Schools

• Office furniture suppliers

• Bendigo Bank

• Newspaper

• Utilities

• Tourist Information Centre

KEY ACTIVITIES

• Education sessions

• Networking BBQ’s

• In-kind labour

• Committee of management

• Promotions

VALUE PROPOSITION

• Reduced isolation

• Network and collaborate with other business owners

• Learning and development to help grow you and your business

• Reduce costs by share equipment, facilities and insurances

• Increase the quality of your Ideas, friendships and contacts

• Reduce travel, work locally

• Visibility of your business to public

• Working holiday package in the spa capital

• Shared services

• Accessibility

CUSTOMER RELATIONSHIPS

• Host to greet customers and guests

• Ease of use

• Reduced

• Partially self organising / self serve

CUSTOMER

SEGMENTS

• Professional service consultants

• Makers and crafters

• Occasional public customer

• Tourists

• Commuters

KEY RESOURCES

• Shared space

• Members directory

• High speed Wifi

• Technology (printer, scanner)

• 3D printer

• Product shop / Space to ‘show & tell’

• 3 phase power

• Natural gas

• Lighting

CHANNELS

• Word of mouth

• Prototype / Popup for a trial first

• Open door policy - welcoming environment

• Launch party!

• Free trial

• Social media

• Website

• ABR - get list of customers

• Community bulletin boards

• Ads in The Courier and radio

COST STRUCTURE

• Rent - if a Council facility, rent increases over time

• Staff Salary

• Fit out costs - kitchen, toilets, etc

• Maintenance

• Security

• Energy

• ICT

• Leasing printers, scanners

REVENUE STREAMS

SEPARATE RATES FOR: DESK SPACE VS WORKSHOP SPACE

MEMBERSHIPS

• Connect Member - $30pm, Access to community events, discounted learning events, and connect to other members online.

• 3 Days per Week - $400pm, Access to desk and meeting space

EVENTS

• Venue shire

• Grants & sponsorships

• Investors

• In-kind labour in exchange for a reduced cost on membership

PILOT CANVASPILOT NAME: Hepburn CoworkingDESIGNED BY: David, Doug, Don, Marita, Adam, Matt WHEN: Tuesday 24th, Feb

10

WHAT

By now you might be feeling excited by the opportunities a coworking space can provide and the basics of how it would work.

However, no matter how good the idea might sound, if it can’t stack up financially it’s got little chance of

making a lasting impact. This section explores the financial viability of a coworking model in Hepburn.

It’s broken down by two main options; a permanent model and a semi-permanent model. The later is the

recommended model for Hepburn.

PERMANENT MODEL

This feasibility study has found that the standard coworking model (a permanent space dedicated to

coworking) does not stack up financially for Hepburn (as per the financial forecast on the following

page). It was the original model we scoped through this project and the basic findings are that there

isn’t sufficient target population to attract the number of coworking members required to sustain a

permanent space.

The main drivers for a permanent model not working are:

MEMBERSHIP: Hepburn is unlikely to meet the membership rates and total number of members

that will be required for a dedicated coworking space to be financially sustainable. It’s predicted that

Hepburn would cap at 15 FTE (Full Time Equivalent) membership usage, whereas we’d need closer to

30-40 FTE’s to financially sustain a permanent space.

RENT & FIT OUT: The Hepburn community want a multi-purpose space. Mostly office space for

professional service consultants along with workshop space for makers and crafters. The diverse

fit out needs add cost pressures and with a low member base, we are unlikely to receive a return on

investment.

STAFF: For a dedicated coworking space to live out it’s highest potential as a source of inspiration,

collaboration and innovation, proper resourcing is required. With the low membership base anticipated,

these staff costs cannot be sustained.

On the following page, you will find a high level financial breakdown for a permanent space. The model

has been built using a coworking financial template issued at the 2014 Europe Coworking Conference.

It incorporates the key elements that make up the incomings and outgoings of a coworking space. Such

as membership revenue (main incoming) and fit out and rent (main outgoings).

11

FINANCIALFORECAST

12

FIRST 12 MONTHSMONTH 0 1 2 3 4 5 6 7 8 9 10 11 12

COWORKERS

FT 0 1 1 1 1 1 1 1 1 2 2 2 2

HT 0 2 2 2 2 3 3 3 4 5 5 6 7

1DW 0 3 3 4 5 5 6 7 8 9 11 12 14

TOTAL # OF MEMBERS 0 5 6 7 8 9 10 12 13 15 18 20 23

FTE 0 2 2 2 3 3 4 4 5 6 7 7 9

REVENUE

COWORKERS $- $1,020 $1,173 $1,349 $1,551 $1,784 $2,052 $2,359 $2,713 $3,120 $3,588 $4,126 $4,745

ONLINE SUBSCRIBERS (CONNECT MEMBERS)

$- $- $- $40 $46 $53 $61 $70 $80 $93 $106 $122 $141

EVENTS $- $- $- $67 $78 $89 $103 $118 $136 $156 $179 $206 $237

VENUE RENTAL $- $- $- $94 $109 $125 $144 $165 $190 $218 $251 $289 $332

SPONSORS $- $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $2,000

SERVICES $- $- $- $- $- $- $- $- $- $- $- $- $-

SUB TOTAL $- $2,020 $2,173 $2,551 $2,783 $3,051 $3,359 $3,712 $4,119 $4,587 $5,125 $5,744 $7,456

EXPENSES

RENT $- $500 $500 $500 $500 $500 $500 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

FIT OUT, FURNITURE & MAINTENANCE

$- $35,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

RUNNING COSTS (INC UTILITIES, CLEANING, SECURITY)

$- $2,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

STAFF $- $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $4,000 $4,000

MARKETING $- $2,000 $1,000 $1,000 $500 $500 $500 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

ICT & WEBSITE $5,000 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

PROFESSIONAL SERVICES (INC INSURANCE)

$5,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

SUB TOTAL $- $51,500 $5,800 $5,800 $5,300 $5,300 $5,300 $6,300 $6,300 $6,300 $6,300 $8,300 $8,300

REVENUE – EXPENSES $- -$49,480 -$3,627 -$3,249 -$2,517 -$2,249 -$1,941 -$2,588 -$2,181 -$1,713 -$1,175 -$2,556 -$844

ACCUMULATED $- -$49,480 -$53,107 -$56,356 -$58,873 -$61,122 -$63,063 -$65,651 -$67,831 -$69,544 -$70,719 -$73,275 -$74,120

$ % FTE

INITIAL INVESTMENT

FT (FULL TIME) $420 0.1 1

HT (HALF TIME) $300 0.3 0.5

1DW (ONE DAY PER WEEK) $120 0.6 0.2

GROWTH (MONTHLY ) 0.15

CHURN (MONTHLY)

CAPACITY (SEATS) 20

OCCUPATION RATE AT SAME TIME 0.55

TOTAL MEMBERS TO CAPACITY 1.05

RENT

13

SECOND 12 MONTHSMONTH 0 1 2 3 4 5 6 7 8 9 10 11 12

COWORKERS

FT 0 3 3 4 4 4 4 4 4 4 4 4 4

HT 0 8 9 11 12 12 12 12 12 12 12 12 12

1DW 0 16 18 21 24 24 24 24 24 24 24 24 24

TOTAL # OF MEMBERS 0 27 31 35 41 41 41 41 41 41 41 41 41

FTE 0 10 11 13 15 15 15 15 15 15 15 15 15

REVENUE

COWORKERS $- $5,457 $6,276 $7,217 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300

ONLINE SUBSCRIBERS (CONNECT MEMBERS)

$- $162 $186 $214 $246 $283 $325 $374 $374 $374 $374 $374 $374

EVENTS $- $273 $314 $361 $415 $415 $415 $415 $415 $415 $415 $415 $415

VENUE RENTAL $- $382 $439 $505 $581 $581 $581 $581 $581 $581 $581 $581 $581

SPONSORS $- $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

SERVICES $- $- $- $- $- $- $- $- $- $- $- $- $-

SUB TOTAL $- $8,274 $9,215 $10,297 $11,542 $11,579 $11,621 $11,670 $11,670 $11,670 $11,670 $11,670 $11,670

EXPENSES

RENT $- $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800

FIT OUT, FURNITURE & MAINTENANCE

$- $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

RUNNING COSTS (INC UTILITIES, CLEANING, SECURITY)

$- $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

STAFF $- $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $6,000 $6,000 $6,000

MARKETING $- $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

ICT & WEBSITE $2,000 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

PROFESSIONAL SERVICES (INC INSURANCE)

$2,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

SUB TOTAL $- $13,800 $10,600 $10,600 $10,600 $10,600 $10,600 $10,600 $10,600 $10,600 $12,600 $12,600 $12,600

REVENUE – EXPENSES $- -$5,526 -$1,385 -$303 $942 $979 $1,021 $1,070 $1,070 $1,070 -$930 -$930 -$930

ACCUMULATED $- -$79,646 -$81,031 -$81,333 -$80,391 -$79,413 -$78,391 -$77,321 -$76,251 -$75,181 -$76,111 -$77,041 -$77,971

14

THIRD 12 MONTHSMONTH 0 1 2 3 4 5 6 7 8 9 10 11 12

COWORKERS

FT 0 4 4 4 4 4 4 4 4 4 4 4 4

HT 0 12 12 12 12 12 12 12 12 12 12 12 12

1DW 0 24 24 24 24 24 24 24 24 24 24 24 24

TOTAL # OF MEMBERS 0 41 41 41 41 41 41 41 41 41 41 41 41

FTE 0 15 15 15 15 15 15 15 15 15 15 15 15

REVENUE

COWORKERS $- $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300

ONLINE SUBSCRIBERS (CONNECT MEMBERS)

$- $374 $374 $374 $374 $374 $374 $374 $374 $374 $374 $374 $374

EVENTS $- $415 $415 $415 $415 $415 $415 $415 $415 $415 $415 $415 $415

VENUE RENTAL $- $581 $581 $581 $581 $581 $581 $581 $581 $581 $581 $581 $581

SPONSORS $- $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

SERVICES $- $- $- $- $- $- $- $- $- $- $- $- $-

SUB TOTAL $- $12,670 $12,670 $12,670 $12,670 $12,670 $12,670 $12,670 $12,670 $12,670 $12,670 $12,670 $12,670

EXPENSES

RENT $- $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800

FIT OUT, FURNITURE & MAINTENANCE

$- $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

RUNNING COSTS (INC UTILITIES, CLEANING, SECURITY)

$- $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

STAFF $- $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

MARKETING $- $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

ICT & WEBSITE $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

PROFESSIONAL SERVICES (INC INSURANCE)

$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

SUB TOTAL $- $13,100 $13,100 $13,100 $13,100 $13,100 $13,100 $13,100 $13,100 $13,100 $13,100 $13,100 $13,100

REVENUE – EXPENSES $- -$430 -$430 -$430 -$430 -$430 -$430 -$430 -$430 -$430 -$430 -$430 -$430

ACCUMULATED $- -$78,401 -$78,831 -$79,261 -$79,690 -$80,120 -$80,550 -$80,980 -$81,410 -$81,840 -$82,270 -$82,700 -$83,130

RECOMMENDATION

Semi-permanent model (recommended)

The good news is that there’s always a possible solution and a way to innovate to create a business model that works for the shire. It’s better not to replicate an existing model, such as a permanent, metropolitan model, only to fail in a regional setting.

For Hepburn, the idea of a semi-permanent space for coworking is a real possibility. This would be using

a multi-purpose space, like community hubs or venues for coworking on set days, e.g. Tuesday’s and

Thursday’s (2 days a week) or Monday’s, Wednesday’s and Friday’s (3 days a week).

A semi-permanent approach would address the following challenges:

• SMALLERMEMBERSHIPBASE:Rather than a few coworkers spread across the week, coworking

time would be concentrated into a number of days a week, creating a more lively, energetic feel. Also,

venues could rotate through Daylesford, Clunes and Creswick, which would make it more desirable

for members in different towns and help strengthen connections through the shire.

• RENT&FITOUT: Using an existing and suitable community venue would reduce rent and fit out

costs significantly. Based on community room hire in Clunes, a space could be hired at a rate of

$112.00 per day. Targeting coworking to certain days of the week optimises space usage for a certain

type of use. In this case it would be office use. This way, makers and crafters could also come in

once or twice a week and take care of tasks such as admin, bookkeeping, business development and

marketing.

• STAFF: Attached to the use of a community venue could also be an allocated amount of council

staff member time to help with coordination. Such as a council staff member from the community

and economic development team. This approach could be seen positively by community as council

providing support in a new and innovative way.

• MEMBERSHIPRATES: This lean model reduces overhead costs, which would keep membership

rates to a minimum, such as somewhere between $20 to $30 per coworker for a full day of

coworking, learning, collaborating.

• RISK: This model allows for testing and organic growth for the concept of coworking without

over capitalising.

15

REGIONALCOWORKING

COWORKING IN REGIONAL VICTORIA

In the context of a coworking space in regional Victoria, here are some notes from Tim Ford, founder of

Cohoots Coworking in Castlemaine:

• Startup costs (fit out of the space, including items for the kitchen and internet access) is likely to

amount to somewhere between $20,000 to $30,000

• This includes mostly secondhand furniture that can take up to 3 months to acquire (i.e. choosing and

purchasing the best and right items)

• Running costs can range between $1,000 to $1,500. This is to simply cover the very basic like utilities

and doesn’t include items such as marketing and promotions

• Most members are on 1 or 2 days a week. Currently no one is full time

• Membership numbers are moving slower than forecasted as its still a very new concept for many.

Most days you’ll find three people in the space at any given time

• Cohoots operates on 150 - 180sqm of working spaces including meeting rooms

We’ve been very strong about the culture we’re trying to create.

People have said that it feels like a share house but neater.

When you’re in a region, you need strong networks. You can’t just depend on

marketing.

A regional coworking space has the opportunity to make a positive impact economically,

environmentally and socially (triple bottom line). There are positive impacts from a coworking space that

you can’t capture financially alone. For example, the energy consumption saved from a commuter who

opts to work locally for a day rather than travel to Melbourne; or the stronger bonds and relationships

formed within the local community.

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HOW CAN IT BE MANAGED?

Originally, we had the question of how the coworking space would be managed.

This was with the expectations of a permanent space. The following options were to be explored:

• Social enterprise

• Private owner

• Public private partnership

However, with the suggestion of a semi-permanent model, precedent management models do not really

exist. Our recommendation is to run an experiment with the semi-permanent model before deciding on

how it will be managed into the future. See ‘Next Steps’ on how to progress this further.

MANAGEMENT

17

NEXTSTEPS

Rather than paralysis by analysis, the requirement now is to move beyond a study and test actual behaviours by testing the semi-permanent model in real life.

It is recommended that a three month ‘Popup Coworking’ pilot is run to test the following central

questions:

• Is there desire for office style coworking in Hepburn?

• What’s of most value for coworkers?

• Does a semipermanent model work?

• What are members willing to pay for this model?

• Does rotating locations work?

• How can this model be managed sustainably?

The idea behind the pilot is to more thoroughly test and build a sustainable model whilst taking a lean

startup approach to minimise expenses.

PILOT DESIGN

The following are recommended design elements to be incorporated in a pilot:

• START SMALL: Provide coworking on Tuesday’s and Thursday’s or even just once a week as

demand is likely to be low to begin with.

• BUILD RELATIONSHIPS:: In the initial 6-12 months of activating a coworking space, it’s vital to

focus on building relationships between members as that is what will have people come back. This

can be done by lightly curated activities such as:

• Checkins: At the start of the day, each coworker shares what their goal is for the day and what

support they’d be looking for and what they can offer.

• Lunch & Learn: A presenter shares skills or knowledge over lunch. There is a lot of evidence that

learning and development is a key value proposition for coworkers.

• Mixed bag lunch: Coworkers connect over lunch by sharing an item they each bring lunch.

• Decanter banter: Coworkers unwind and connect at the end of the day over glass of wine or two!

• FREE & PAID: Start with free coworking and activities, then test with paid coworking to ensure that

people are willing to pay for this experience.

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PILOT MANAGEMENT

During this pilot, management of two key activity areas could look like:

• LOGISTICS: Venue booking, sourcing materials and setup could be taken care by a council staff

member (Time requirement: ½ a day per week).

• HOSTING: Facilitating activities, making people feel welcomed and generally creating a great

environment could be taken care of by a member. Ideally the same member otherwise the experiences

would vary too much (Time requirement: 1 day per week)

PILOT BUDGET

A high level budget estimation for a 3 month pilot of a semi-permanent coworking model is $10,000.

This funding will include promotions, logistics, events and consultation.

PILOT TIMING

The idea would be to run this pilot during spring (September to November 2015) as weather will have

warmed up, enticing people to come out of their homes.

HERE’S A BREAKDOWN OF KEY MILESTONES:

1. June 2015 - Confirm budget allocation

2. July to August 2015 - Plan and prepare for pilot

3. September to November 2015 - Run pilot

4. December 2015 to January 2016 - Analyse outcomes and confirm next steps

Creative experimentation propels our culture forward. That our stories of innovation tend to glorify the breakthroughs and edit out all the experimental mistakes doesn’t mean that mistakes play a trivial role. As any artist or scientist knows, without some

protected, even sacred space for mistakes, innovation would cease.

- EVGENY MOROZOV

The path ahead of us isn’t going to be necessarily easy or straight forward. What we’ve learnt about innovating on the ground is to take this human-centered approach by staying close with end users, actively testing and refining our approach to create a lasting solution.

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Here are some great resources to help thosethat wish to start and run a coworking space:

• Coworking financial and membership management software:

https://coworkify.com

• Meeting room rental application:

https://liquidspace.com

• Coworking Handbook: the Guide For Owners and Managers:

http://coworkinghandbook.com

RESOURCES

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