Georgi Aleksiev
Starting a coworking space is an exciting venture. But after being around coworking founders every day and having the experience of running a coworking space in Cobot, enthusiasm alone isn’t enough to build a sustainable business. Many new spaces run into challenges that could have been avoided with better preparation.
In this article, we’ll walk through the 7 most common mistakes new operators make and how you can avoid them.
Outline
- Mistake 1: Starting Without a Business Plan
- Mistake 2: Overcommitting to Leases or Financial Inflexibility
- Mistake 3: Running Without Everything Manually
- Mistake 4: Opening a Coworking Space Without Having Built Any Community in Advance
- Mistake 5: Underestimating Marketing and Outreach
- Mistake 6: Ignoring Member Experience and Space Design
- Mistake 7: Not Planning for Long-Term Flexibility
1. Starting Without a Business Plan
One of the most common pitfalls is diving in without a clear business plan. Without well-defined goals, a financial model, and an understanding of your target market, even promising spaces risk early closure.
A strong plan ensures you know who you’re serving, how you’ll stand out, and how you’ll generate steady revenue.
➡️ Get started with Cobot’s coworking business plan guide.
2. Overcommitting to Leases or Financial Inflexibility
Locking yourself into a long-term, inflexible lease can be dangerous, especially if you’re just starting out. Market conditions change quickly, and empty desks under a rigid lease can drain your finances.
Instead, begin with a space that matches your initial demand. Scale up as your community grows, so your finances stay healthy and flexible.
Industry experts confirm that financial overextension is one of the top reasons coworking spaces close.
3. Running Everything Manually
Managing a coworking space manually may work for the first few members, but it quickly becomes unmanageable. Without coworking software, operators spend hours chasing invoices, handling bookings, and updating spreadsheets.
One of the earliest and most influential coworking spaces, betahaus Berlin, started out by tracking members in Excel and managing bookings with Google Calendar, but quickly realised that this is not sustainable. As cofounder Madeleine Gummer von Mohl recalls:
"I remember tracking all our members on an Excel sheet—calculating mid-month invoices was a nightmare, and room bookings on Google Calendar led to constant double bookings. It was chaotic, and we knew we needed a better system to keep things running smoothly."
Madeleine Gummer von Mohl, Co-Founder & CEO, betahaus, Berlin
Using a platform like Cobot automates the admin side of your business. That means more time to focus on your members and your community.
Want to see how coworking software can transform your operations? Try Cobot free for 30 days.
4. Opening a Coworking Space Without Having Built Any Community in Advance
We've all heard the saying a million times by now: "Coworking isn’t just about desks and Wi-Fi, it’s about people".
We've heard it, because it's true. Without an engaged community, a coworking space risks becoming nothing more than a shared office.
As Alex Hillman, one of the early voices in coworking, puts it: start with people, not desks. When you build a community before opening, you create demand, foster loyalty, and set the foundation for sustainable growth.
5. Underestimating Marketing and Outreach
“If you build it, they will come” often doesn’t work in coworking. Many operators underestimate how much marketing and outreach is needed to attract members.
To succeed, you need consistent visibility: strong branding, active social media, partnerships with local businesses, and targeted campaigns. Pre-launch outreach is especially important to ensure you’re not opening to an empty space.
6. Ignoring Member Experience and Space Design
Your members are your customers, and they expect a comfortable, productive environment. Poor layout, harsh lighting, or noisy rooms can push members away.
Invest in design that supports focus and collaboration. Prioritize natural light, good acoustics, and amenities that reflect your members’ needs. The more enjoyable the experience, the longer people stay.
7. Not Planning for Long-Term Flexibility
The coworking industry evolves quickly: hybrid work, shifting team needs, and new competitors all shape demand. Spaces that can’t adapt often struggle to survive.
Flexible models, from hot desks to private offices, meeting rooms, and event hosting, help future-proof your business. Build adaptability into your business model so you can adjust as trends change.
Conclusion
Avoiding these seven mistakes will put your coworking space on the path to sustainable growth. With a strong plan, financial flexibility, smart tools, and a thriving community, your space can stand out in a competitive market.
