Co-working in wiesbaden
A Kaospilot businessplan
Made by:
Adrian adler
Lisa Beck
Lui Rosenkrantz
Troels Jensen
Troels Vejby
Client:
The community at hallgarder strasse 10
&
Grameen Creative lab
with daniel Nowack as our contact person
april/may 2011
Table of content
Executive summary..........................................................................................................................................................1
Introduction.......................................................................................................................................................2-4
Our client and how we ended up in Wiesbaden............................................................................................2
Background for H10.............................................................................................................................................3
the location............................................................................................................................................................4
H10 the concept...............................................................................................................................................................5-11
The vision...................................................................................................................................................................5
Social business.......................................................................................................................................................5
Open Café & membership co-working area....................................................................................................5
Self service..............................................................................................................................................................5
Community based.....................................................................................................................................................6
Shared services......................................................................................................................................................6
Platform for sharing...........................................................................................................................................7
Facilities....................................................................................................................................................................7-10
Value propositions of h10.................................................................................................................................11
Market analysis...............................................................................................................................................................12-24
Competition..............................................................................................................................................................12
Partners...................................................................................................................................................................12
swot analysis.........................................................................................................................................................13
Global co-working...............................................................................................................................................15
Community ................................................................................................................................................................15
Co-workers needs................................................................................................................................................16
working routine.....................................................................................................................................................16
physical needs.......................................................................................................................................................17
needed in space......................................................................................................................................................17
Soft needs...............................................................................................................................................................17
Important to users...............................................................................................................................................17
External research Wiesbaden..........................................................................................................................12-20
facts..........................................................................................................................................................................17
The creative industry in Wiesbaden...............................................................................................................18
Different fields.....................................................................................................................................................18
Clustering................................................................................................................................................................19
Attractiveness of the region for creatives...........................................................................................20
Needs of target groups...................................................................................................................................21-24
The creative student.........................................................................................................................................21
The aspiring entrepreneur..............................................................................................................................22
The Freelancer....................................................................................................................................................22
Conclusion on market Analysis...................................................................................................................23
Budgets............................................................................................................................................................................25
The Business canvas...................................................................................................................................................26
How to set up the organizational structure.................................................................................................27
Marketing........................................................................................................................................................................27
Implementation plan....................................................................................................................................................28-32
renovation phase...............................................................................................................................................28
finishing off phase............................................................................................................................................28
testing phase......................................................................................................................................................28
operating the co-working space................................................................................................................29
Some important points to keep in mind......................................................................................................31
Description of risk factors.........................................................................................................................32
Conclusion of implementation phase.........................................................................................................33
overall conclusion....................................................................................................................................................33
final words.....................................................................................................................................................................34
idoarrt..............................................................................................................................................................................35
Working process...........................................................................................................................................................36
Wiesbaden a more dynamic, innovative and creative city.
Executive summary This concept has been designed based on thoroughly research-
ing other co-working spaces, co-workers needs, the market in Wi-
The past six weeks of our lifes have been revolving around a little esbaden, local needs, the communities desire and the stakeholder
backyard in Wiesbaden, co-working spaces, tools charts and busi- needs. The boundaries of our concept have been set by the physical
ness canvasses. frames.
We have been working on a business plan for a community in Wies- By using a wide range of ideation, project management and busi-
baden that is preparing to open the cities’ first co-working space. ness tools we got a clearer understanding of the steps that need to be
taken and how and how to get there.
In collaboration with Grameen Creative Lab and the community we
have come up with a concept we call H10. The name refers to the ad- We have tried to come up with a simple, yet very coherent and imple-
dress of the place Hallgarterstrasse 10. mentable concept that will be explained and proved in the following 34
pages.
The essence of the concept is a mixture between a co-working space,
self-service café, a music studio and a workshop for creative entre-
preneurs, musicians, freelancers and students in Wiesbaden.
The groups attraction towards the project was exploring new ways of
working together in a collaborative way, an interest in building value- A social business is defined by the following characteristics:
based communities and to tap into the phenomenon of social busi-
ness. It addresses a social need, the profits stay within the company
and are reinvested into the project, no dividend is given in ad-
What has also motivated individuals of the group is the believe that dtion to the investment money while the business is economi-
business is not only a mechanism of generating profits, but can be cally sustainable.
viewed as an artistic form of expression, a lifestyle, a platform for ac-
tivism and generally a tool to solve problems in society.
2
In the scope of this project GCL set us in contact with a community Background for H10
that has plans to open a co-working space operated as a social busi- The core team has found the house in the backyard of Hallgarter Str
ness. 10, which is a former music studio. They are currently renting four
floors in the backyard and one apartment to the front. The 5 of them
This community consists of about 15 friends that met through free have renovated the house and are currently living there, while the
church meetings. Most of its members are in their mid- and late twen- ground floor remains empty for what this business plan will be about.
ties and have strong community ties. They frequently host events like
concerts, flea markets and public football screenings for their neigh- The initial idea for this place developed out of the vision of the com-
borhood. Their aim with hosting the events is to contribute to building munity.
a diverse and cohesive local community in their neighborhood while In June 2010 the community formulated a short essay about their vi-
nourishing their own. sion.
Five of the community members have rented a house on Hallgarter What they aimed to bring to being with their vision when it first arose
Str. 10. Those five, with Dominik Hoffman and Albrecht von Schnur- was a place where people could meet, could share - their dreams, de-
bein as primus motors, will operate the co-working space. We will be sires, strengths and weaknesses, be creative and create. Those that
referring to the five as the core team from now on. would not see their full potential they would help to find it. All this shall
be set in a café atmosphere. All this shall happen without a formal
In the contract GCL was initially listed as our client. Furthermore the hierarchy, to leave room for the individual and the initiative.
traveling expenses have been covered by GCL. When coming to Wi-
esbaden and over the course of the project however, they turned out
to be more of a mentor, external consultant and key stakeholder, while
it became apparent to us that Dominik and Albrecht are the project
leaders with the support of the rest of the house.
And then there are we. We are five students from The Kaos Pilots,
an alternative institution of higher education in the fields of business
design, process design and project leadership. Our role in the project
has been a hybrid between volunteer students and consultants.
Therfore the project has mainly served our learning. Yet we hope to
deliver something of value to our client and partners.
3
the location
The location is situated in the backyard of an old brick building in a
young dynamic residential area of Wiesbaden called Rheingauviertel.
It has broad cobblestone streets lined with trees, old art nouveau style
houses and little cafes and grocery stores. The quarter is not only
easily accessible in 15 minutes by the Bus 8 from the city center - or
in 5 minutes from the train station, but has also become very popular
among young creatives in Wiesbaden.
The premises are on the 1st floor in the backyard of Hallgarter Str. 10
and are about 120sqm. The backyard itself measures around another
150sqm. Attached to the two main rooms are a music studio with re-
cording facilities as well as a little workshop.
4
H10 the concept Open Café & membership co-working area
The café will be semi-open to public. This means that those that are
aware of the café can come and work from there. They are free to
use the café area as well as the backyard. This is especially attrac-
The vision tive for students, people with a low budget and those that only want
Our vision is to establish a co-creation 1space in the backyard of Hall- to work from H10 irregularly.
garter Str. 10. It will be set up as a social business and become a hub
for social entrepreneurs and change makers, freelancers, students, The other room will only be open for members. They have the
artists and purpose driven individuals. H10 strives to become a physi- choice between different membership deals – the full time member-
cal platform in a stimulating and inspiring enviornment from where ship which includes access 6 days a week with 24 hours access and
these people cannot only work from, but also share knowledge, inter- costs 150 € pr. month, or 3 days a week membership with limited ac-
act with one another, innovate solutions for the future and make ideas cess and a price of 80 € pr. month. These memberships have a lim-
grow. ited number as H10 will make sure that they always provide a seat
for their members. The third form of membership2 enables those
that are not able to work from the space on regular basis (due to the
Social business capacity or their job) to use the skills wall, the workshop and other
The space itself will be run as a social business. features. They can also put themselves on a waiting list for a desk.
The social objective H10 is addressing is to empower its users to see This form requires an application and a one-time donation (which
and eventually use their full potential and competencies and through has not further been defined thoughout the business plan)
that make Wiesbaden a more dynamic city.
Self service
Furthermore profits will be reinvested into H10 to constantly improve In order to keep the costs low, the café will be self-service. A profes-
it. sional espresso machine and a manual will guide the citizens on
Last but not least there is the option of setting up a social business how to make the perfect cappuccino. A limited number of soft drinks
fund. This means that around a year after the opening, if all goes well, as well as snacks will be offered. The prices are listed up and a cash
500€ will be put into this fund every month. Supervised by a board of box will wait to be filled. Additionally users can bring their own cakes
the community-members and employees of GCL it will serve the pur- and snacks and offer them at the counter.
pose to spur social business in Wiesbaden.
1 Mostly through out the report we will use the term co-working. Co-creation has al-
most the same meaning, only taking the emphasis off the word “work” as in doing something
to earn money and replacing it with a more loose term. However in the context of H10 they
basically have the same meaning as working is seen in a broader context.
2 Throughout this concept we will refer to everyone at H10 as users,
whereas paying members will be called members or citizens.
5
Community based
Since the idea came into existence through the community H10 itself
will be closely related to the community.
With the core team living in the same building as well as all the other
apartments around are inhabited the space is in strong need for grow-
ing the community slowly and organically.
The community will also use the space for events such as concerts,
workshops and lectures in the after hours. Users are encouraged to
play a part in it.
6
Platform for sharing
Even more than a place to work from, creatives in Wiesbaden are Facilities
in need of a physical platform to interact and share knowledge on a The whole design of the space serves the purpose of underlining
professional level. and physically supporting interaction between its users, a comfort-
H10 will encourage this as much as possible. First of all this is done able place to work from, inspiration and innovation.
through the way the space is designed.
In order to do so here are some of the simple physical elements
Moreover there are specific features that can support this. On the wall that the place should integrate. Also take a look at the blueprints.
in the co-working area will be a big citizen board with Polaroid photos
of the citizens. Around the pictures, there is room for users to put up In generAL
their competencies, what kind of support they could need, projects A compfortable, non-sterile working enviornment is inviting though-
they are currently working on, job offers and searches. Evenmore out the whole space. Long-tables in every room will enable 6-10
members can also offer time swapping with others through the wall, people at a time to work at each table. These tables encourage
so a graphical designer can borrow some hours from a photographer interactions between the users sitting next to each other, but espe-
in exchange for doing graphical work him. cially across from each other.
The citizen board is the formal space that ties the network together.
It is where you find out what people are working on and how you can Outside
help. It’s where you find out whom to ask for what, and a part from The backyard should be containing a lot of plants, flowers and
that, its also the channel that spreads the terminology and way of trees in big flowerpots. This will not only create a comfortable work-
thought of the H10 citizenship. ing atmosphere in the summer time, but can also serve as screen
towards the neighbors or other tables.
Next to it stands a little table with a desktop. On it not only can the us- An awning over the two big tables outside enables users to also
ers go online, but there is also a database with contacts, information work when the sun is shining bightly.
and references that members can add about them selves if they want There is a little wall running on one side of the yard. Along this wall,
to. two big steps of wood create an ideal area for reclining.
Over the yard is a wide mashed net of wires spun. It can serve
On the other wall is a library with books. Those books range such as different purposes. They can be used to have plants grow on and
„Project Management – a complete guide“ to „Design fundamentals“. green up the yard, to hang up an awning, to put up partition for
The library is either enhanced by H10 if the budgets allow it or by us- events or easily hook on decoration.
ers bringing along relevant books. A little booklet reveal who borrowed A green house hosts fresh vegetables in pots in the warmer sea-
what book. sons, while in the spring and fall it can extend the possibility to
work from outside as there could also be a table put into it.
7
Appendix:3 + 5
8
Café area
In the café area there will also be long-tables to work from. On a long The studio
counter a professional coffee machine will make it possible for users the sound prove studio
to brew their own caffe latte. is fully equipped with
A little lounge area will enable users to relax and work at the same recording facilities. Cur-
time. rently it is rented out as a
rehearsal space for two
Working area bands and can be rented
Here more long tables with ergonomic chairs will provide citizens with for recording on a daily
woking space. basis. Members of the
The citizen wall will share users interests, needs and competencies. space will have a price
In the library users can borrow relevant literature as well as share it advantage.
Members also have the advantage of having a locker on the wall
where they can store some of their stuff.
Surroundings:
Network: Users work in a creative and maybe even thought provoking environ-
H10 offers connections to a large group of people through the com- ment that highlights and encourages all of the values named above.
munity. The citizen will moreover get access to a large network of The access to a green recreational area in the backyard also makes
different competencies. it possible for users to leave some of their thought paths behind, and
The network can also enhance job opportunities. challenge old ideas in the “mids of nature”.
With every new user this network will grow and flourish.
10
11
Market analysis Partners
In order to build up a valuable network around H10 – one of the
core qualities of the co-working space- partners need to be broad on
The information gathered in the market analysis is based on research board. In the appendix you will find some potential partners that are
made through interviews of different potential customer segments, already related to the community and/or have shown interest in the
visiting other co-working spaces, research made through surveys and project.
interviews by the chamber of commerce and our background knowl-
edge from researching the web. Some of it has been made in col- Appendix 7
laboration with our client in order to get their perspectives on it and to
make sure we cover all essential areas.
Competition
At this point, there is no co-working space in Wiesbaden running.
However, in the past there have been inititives to start up a co-work-
ing space in the city. Due to complications -among other difficulties-
with finding other venues to scale the business and make profitable
the project initiators have discarded the idea.
Appendix 10
12
swot analysis
All three are mentioning the excisting facilites as well as the network
as a strength. Additionally both GCL and we name the low invest-
ment and costs as a big plus. All parties see the chance of building
up a platform. Both the community and GCL moreover highlight the
fact that the concept has already gotten positive feedback. While
GCL talks about a general positive trend towards co-working, we
focus more on the need in Wiesbaden.
To conclude on these three SWOTS we can say that while the differ-
ent parties may have a different focus, we are all aware of the over-
all tendencies reagarding the advantages as well as disadvantages
of H10.
13
14
Global co-working Community
Just in the recent days the current number of co-working spaces world- Alex Hillman, cofounder of the famous co-working space Indepen-
wide has been estimated around 8201. While the majority of these new dents Hall in Philadelphia and consultant specialized in co-working,
collaborative workspaces are in North America, Europe lately caught states that one of the biggest mistakes often made when opening a
up with now officially having 341 co-working spaces listed. co-working space is the belief that once the physical space is build,
the users will come automatically.
Co-working spaces bring people, knowledge and skills together. Be-
sides the obvious synergy effect from working among other people, Just opening the space will rarely determine the success of a co-
co-workers tend to give each other casual critique of what they see in working space. According to Alex Hillman it is a community and the
each others work during the working process. This can have positive building of such that makes the space work.
influence on the work as well as the process.
“Without a community, a co-working space is just an office”.
The average age of coworkers are 34 years old. - Alex Hillman4
54 % are freelancers
20% are entrepreneurs that employ others
20% are permanently employed
(most in companies of less then 5 people)
2/3 are men
3/4 of the coworkers work a radius of 10km of where they live2
1 http://www.deskmag.com/en/820-coworking-spaces-worldwide-statistics
2 http://www.deskmag.com/en/the-coworkers-global-coworking-survey-168
3 http://www.deskmag.com/en/coworking-spaces-half-the-cost-of-traditional- 4 http://www.deskmag.com/en/a-coworking-space-without-com-
office-157 munity-is-just-an-office
15
external advice is cherished. Additionally to this, the users need to be
able to trust the other co-workers in order to feel safe.
Co-workers needs The next need that co-workers have is called “love and belonging”.
They want to belong to a community and be part of a network. Most
This pyramid is based on Maslow’s hyrachy of needs1. In order to be co-workers value common events and collective projects between
able to satisfy the needs higher up in the pyramid, the needs at the members.
base of it must be satisfied first. This also feeds into the next need, esteem. In order to feel part of the
community, the co-worker would like to be acknowledged for his or
her skills, both hard as well as soft skills. Moreover they enjoy being
an active part of the community and therefore having an audience for
their projects.
The topmost need of the pyramid is Self-actualization. This can be a
very personal need to the individual, however it is a good co-working
space that can help him or her realize it. On one hand a stimulating
environment can bring out the best of its users. On the other, it is the
fellow co-workers that, through their feedback and skills, can help the
individual to improve in whatever they are doing. Co-workers share
knowledge with each other and in the perfect co-working space – they
can work according to their values.2
working routine:
40% daily
19% 3-4x a week
16% once or twice a week
15% a few times a month
54% have 24 hr access
31% traditional office hours
1% use half day or evening use
While the basic needs determined cover the physiological issues of
the average co-worker, the safety factor deals with issues most inde-
pendent workers have. By having variable income and the unpredict- The majority use their workspace to carry out short-term projects.
ability of how business the next month will end up, the users need 1/4 projects does not go beyond a period of one week.
flexible work facilities so they can adjust their expenses according to 2/3 of all projects take no more than a month.
their income. This counts especially in times of financial crisis, where
1 http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs 2 http://www.deskmag.com/en/what-coworking-spaces-coworkers-want-165
16
Soft needs
physical needs Another survey5 on co-working spaces in Berlin, carried out by a
Most co-workers (54%) prefer to share a workspace with less than Berlin university student, Lukas de Pellegrin, shows that what the
twenty people, while 21% say they work well in a space with up to 50 members are looking for and appreciate most in the co-working space
coworkers. Less than 4% say that they favor a workspace with more is the opportunity to interact with other self- employed people. What
than 50 users, whereas the remaining 21% don’t care. is more, according to the same source, the mix of different profiles
seems to be one of the most important added value.
Small co-working space might provide greater comforts, where a larg-
er space provides more opportunities because of the greater network. The survey also indicates that in 87% of the co-working spaces at
The propensity to work in teams or enjoy better interactions with other least one project was started in collaboration between co-workers
people become less as the size of the space increases.3 who met in the co-working space. Another survey done by deskmag
indicades that 43% of the respondents reported meeting one to three
43% of all co-workers rent a fixed desk which they use exclusively. helpful acquaintances, while another 43% have found four or more
The remaining 57% are either enjoying or don’t mind using a flexible such connections.
desk which can be shared with other coworkers.
Important to users:
For the majority, an ideal co-working space would have a mixture of 86% flexible worktime
open shared working areas, as well as smaller closed rooms for pri- 86% interactions with people
vate conversations. 82% share knowledge
79% value on the random
Wanted in space: opportunities and discoveries made through interaction
99% internet 72% price
80% printer and copier 42% secluded and quite place
76% meeting room
61% cafe External research Wiesbaden:
50% kitchen
26% libraries Facts
29% parking spaces4 Wiesbaden is the capital of the federal state Hessen, one of Ger-
many’s 16 federal states. With its 275.000 inhabitants, it is the sec-
ond largest city of the six major cities in the Rhein-Main-Region,
with Frankfurt a.M. being the biggest. Rhein-Main-Gebiet itself is the
second largest metropolitan area in Germany. The area is well-estab-
3 http://www.deskmag.com/en/the-strength-of-small-and-big-coworking-spac- lished through banking, trade and logistics. It’s infrastructure is one
es-205
5 http://www.entrepriseglobale.biz/wp-content/uploads/2010/11/CoworkingEU-
4 http://www.deskmag.com/en/what-coworking-spaces-coworkers-want-165 ropeSurveyFinal.pdf
17
of the best developed of Germany – with Frankfurt Airport being the
biggest in the country as well as the motorway system and the high Different fields
speed rail line running through Frankfurt.
The distance between Wiesbaden and Frankfurt is 40 km, while
Mainz, capital of the federal state Rheinland-Pfalz, and Wiesbaden
are basically touching each other, only separated by the Rhein river.
The historic spa city is known for gambling, its beautiful architecture
and its landscape. Though it holds annual theater and film festival it is
not in particular known for its culutral scene.
In the year 2009 around 6000 people were employed in the creative
industry in Wiesbaden. This makes up around 4% of the 150.000 Wi-
esbadeners in total. 4 % of all businesses that are liable for VAT (that the other markets that are included in the creative industry, listed after
have a turnover higher than 17.500 € per year) in Wiesbaden are from their size, biggest to smallest:
the creative industry – which makes up 1600 companies.6
These numbers do not include freelancers. We have no specific num- Book
bers on them, however indirectly we are able to draw conclusions. Press
9,6% of all creative industries in Rhein-Main-Gebiet are situated in Architecture
Wiesbaden, while only 7% of all industries of the Rhein-Main area are Film
set in Wiesbaden. This is in contrast to the fact that there is a relative- Music
ly low proportion of employees in Wiesbaden. Therefore, these num- Art
bers could be interpreted in the way that there are a disproportionally Performing Arts
high number of freelancers working in the city. Broadcasting
6 Kreativcluster in Wiesbaden und der Rhein-Main-Region, market analysis written by Visual Arts
order and account of the state capital Wiesbaden, carried out by the center for cluster and
competitiveness, (supply chain management institute SMI & European Business School EBS)
18
30% of all organizations interviewed for the survey are having trou-
bles finding partners from the creative industry.
Advertisement makes the highest turnover in the creative sector in Hessen and Wiesbaden support the cluster tendency and believe that
Wiesbaden with 4,18 million € per company, followed by the design it spurs the growth of the industry on a local level and could enable
market with 1,7 million € and the press with 1,3 million €. the creative industries get a national impact.
Appendix 13
Clustering
There is already a tendency for some of the industries to merge into
so-called clusters. A cluster is a regional concentration of organiza-
tions and institutions that are directly or indirectly linked to one an-
other and operate in similar economic domains. New competitors,
constantly challenge organizations that are already part of a cluster.
This prevents consolidation, and therefore boosts innovation and new
creative concepts. Apart from that, clustering has a positive influence
on the regional distribution value chain and makes companies more
productive. Even though clusters seem to appear here and there,
19
Attractiveness of the region for creatives
90% of the interviewees of the online survey review the Rhein-Main-
Gebiet as attractive or even very attractive. This is 5% more than
Hamburg or Munich and makes the area the most attractive German
area for creatives. This is due to the areas unique infrastructure (the
region is one of the most reachable in the country), the quality of life
in the area, the high spending capacity and the positive employment
trend.
20
A minority mentions a sound venue and alternative hang out called
Needs of target groups Schlachthof as a good place for creative people to network. Non of
them was able to name a physical and more formal place in Wies-
Dominik Hoffman identified three target groups that H10 wants to at- baden to network at.
tract. Addionally to the defintions below he highlighted that the tar- Almost all of the students respond that they are interested in new op-
geted users should also have a tendency of being purpose driven or portunities for networking.
even searching for a higher purpose.
Work habits
1. Students of creative schools The majority of the students work on projects besides their school-
A student at the FH design school in Wiesbaden. work. The projects vary from volunteer church summer camps to
graphical work for external bureaus. The range of the projects differs
2. The aspiring entrepreneur: from less than a week to several years, and vary a lot in workload.
A young entrepreneur that has recently started up a business. We They primarily work from school, at home or at friends places.
also considered people that are currently employed, but are planning Around half of the students complain about bad working conditions at
to start their own business within the near future. their school.
3. The freelancer Sharing workspace
A freelancer in the creative industries or a consultant. All of the students responds that they are open to share workspace
with others
After identifying these three segments we tracked down around 40
people who fitted the description. The students and the entrepreneurs Many were worried about the noise level from musicians, but most
we took through a questionnaire and for the freelancer we made qual- liked the idea of interacting with other creative people that have differ-
itative interviews with individuals to maximize our learning experince. ent backgrounds.
The creative student: Needs for a functional workspace:
-Our findings refer to the appendix 10 Their core needs in a full membership model with fixed desks are big
displays, good printers, scanners, good light, silent zones and design
The majority of the creative students expect to leave Wiesbaden after magazines. Apart from that, students would find it cool if the work-
ending their studies, and move to bigger creative hot spots like Berlin, space had a feeling of home, was full of plants, had a chill-out area
Hamburg and other European metropolises. and regularly hosted parties.
Networking Pricing
On average students rate themselves around 5 out of 10 on their abil- Most of the students are able to pay between 0 – 25 € during their
ity to network professionally in Wiesbaden. Their main spots for net- studies. However once they graduated and are working, they state to
working are their school, on parties, groups, at the school library and be willing to pay 150 – 350 € depending on their earnings.
on the web through blogs and facebook.
21
Sum Up
The students want a workspace with a nice atmosphere, but won’t be Pricing
able to pay much for subscriptions during their studies. However they On average an aspiring entrepreneur is willing to pay 150€ – 250 € for
can contribute with engagement and cultural capital. a full time membership.
NEEDS & pricing of freelancers As for partners the community already has a broad network build up,
Freelancers are primarily very mobile and do not have any needs that both regarding users and supporters. Particularly the good relations
are out of the ordinary for an office space, but shared services such with GCL, which is very well connected in the city, and the approval
as accountants and the opportunities for learning are valued. from representatives of the city are valuable.
They are ready to pay between 150 € and 250 € for full time access, A community is crucial to the success of a co-working space if you
but wants to have the opportunity to have the option of downgrading believe Alex Hillman, and it is a need of co-workers in general. From
or upgrading their memberships. this perspective H10 is already starting on the right track.
In general the freelancers are a group that is very fragile towards When looking at the needs that the three determined target groups
fluctuations in the market, so the main emphasis is on offering flexible have expressed, a functioning workspace is the first priority. Moreover
solution that enables them to adjust their expenses to their income. all three segments have mentioned light, plants and a comfortable
(café) atmosphere as essential. A meeting room that they can occupy
Sum up of the target group research with a client has been mentioned as well and has been listed in the
To sum up the needs of H10s taget groups are a space that can con- world wide coworking survey as the 3rd most important physical facil-
nect people in the creative industries, yet is still open for people from ity. The flexibility of working hours becomes especially interesting to
other fields. The creatives in Wiesbaden are in general interested freelancers.
in sharing a workspace with others. The common requirements are What seems to be the USP of H10 is the network however. In the
basic office facilities, a green environment full of light and plants. They worldwide study 86% of co-workers value interactions with other us-
are searching for a space that emphasizes networking and collabora- ers, 82% enjoy sharing knowledge and 79% value especially those
tion, feedback with a calm yet energetic and stimulating atmosphere. random connections and discoveries they made through interactions.
It should be informal yet functional and serve the best coffee in town. Though they cooperate often to very often with other companies
within their own fields, there is very little interaction between the differ-
ent clusters in Wiesbaden.
23
When you then take into account that 86% of world wide coworkers It shows even more in the 62% of the interviewees (of the study co-
claim to have made at least one helpful connection and 87% have at missioned by the chamber of commerce) that wish for a platform for
least collaborated on one project with a fellow co-worker, the impor- creatives to network on in Wiesbaden. That the city is aware of this
tance the network aspect could play for H10 becomes clear. need and is also supporting it, we have not only found out through
the studies they have commissioned but also experiences first hand
A conclusion we can draw from this research is that even though Wi- through talks with representatives.
esbaden seems to be pretty attractive for creatives, the innovative en-
vironment of the city is definitely developable. With its high economic One of the highest, yet least pressing needs a co-worker has is to
performance in the creative sector and its solid number of creative bring out the best in him- or herself, to use his/her full potential. This is
freelancers, Wiesbaden has all perquisites to have an international also a goal that has been formulated by the community in their formu-
standing. However it is lacking the innovative and creative milieu to do lated vision.
so.
If this platform could be established and there could be a possibility to
This is also supported by the fact that most respondents we have in- integrate students in it, there is a chance that they, after their studies
terviewed in Wiesbaden rate themselves as average when it comes to will remain in Wiesbaden.
their ability to network professionally in Wiesbaden, the potential the
city has on this level is by far not exhausted. This would be of great value to the future development of Wiesbaden.
As for the price, we can see a difference in what the three target
groups are able or willing to pay. While both the entrepreneur as well
as the freelancer are willing to pay between 150€-250€, the average
student is without means. While they would like to use the facilities
and be part if the network, students are rarely able to pay for it. This
makes it apparent that if students are supposed to become part of
regular user of the space, there needs to be a different solution of
how to integrate them.
24
Budgets What is also worth taking notice of is the low variable cost. Since the
business structure is fairly simple we only considered the drinks are
variable. Though extensive use of H10 the electricity usage will rise,
Here are some word to the budget. however we believe that through sustainable handling, the costs can
Appendix 18-22 be kept on a resonable level.
Operational budget
As the H10 generate a relatively high surplus based on the primary
expenses and turnovers we have the possibility of introducing three
elements to improve the product (see concept for more details):
-Additional workspace in an empty apartment
-courses, workshop and lectures
- the social business fond
While some of these need a higher investment they would add value
to H10. They are all really cool contributions to the final concept but
not necessary.
25
Business canvas
Services: Cleaning, accountants, marketing
Maintenance: Building, furniture,
Rent: Fascilities, printer,
Fixed cost: Insurence, gas, heating, internet.
The business canvas has been made in cooperation with Dominik
from H10, as a merge of our ideas, the market research as well as
background knowledge.
The main reason for using the business canvas was to create an
overview over their business.
What we got in an early stage of the project, was the three customer
segments determined by the community, and the key-resources,
which where already existing at H10.
Exclusivity.
Magic
Empower people
Networking
Knowledge/ idea sharing.
have found a lot of possible knowledge- and network-suppliers who
will enable H10 to expand their network.
Hosting events/workshops.
Selling drinks and snacks from café.
Lease: desks, music-studio, machinery, "boxes" and café-space.
Creativity.
Community feeling.
describe what activities H10 will focus on, and what resources/
facilities it will require to make them happen.
In general the business canvas has been used to check back on out
research and concept as well as a tool to easily talk from with out
client. This helped us to validate the concept.
However we have used it less during the process of coming up with
Creative business
Local neighboorhood
Community
alysis)
3 segments (see markedan-
the concept.
26
Marketing Channel How to set up the organizational structure
The only marketing channel that H10 will use is word of mouth. This is Based on the research, especially the SWOT analysis done by the dif-
due to two major reasons: ferent parties, we have figured out that the organizational structure is
very essential in order to make the whole project work.
1. The community, especially the core team, is worried about having
too many strangers in the backyard While the community has been a major part of the vision and will re-
2.the capacity of the space is very limited main very essential to H10, it is the core team that should be making
the decisions. The community can be integrated in ideation phases
In the early phase people will be invited to come to the space. Those and be part of finding the right solutions, however we strongly advice
that find out about the space are able to visit it and use the cafe. How- the core team to have the last word when it comes to making a deci-
ever only if they have been invited and applied for a membership can sion. This is not only because it makes things easier, especially when
they have a more permanent desk solution or use the citizen wall. quick decisions are needed, but also because we had the impression
that at least some of the community members are not that interested
Moreover there will be no sign on the street promoting the space in in making these decisions and being responsible for them.
any way.
Though there may only be one marketing channel there are more Moreover Abi and Dominik should be seen as the project leaders. The
marketing activities going on. More and more people will find out organization could be set up in away that they are (legal) representa-
about it, perhaps because of the regular events such as concerts, flea tives. They would then represent the community and especially the
markets or lectures that are taking place and are being more actively core team as good as possible where ever necessary.
promoted. These events can therefore indirectly be seen as a market-
ing activity for H10. H10 should be set up in a way that the co-working space will rent the
facilities from the community. In that way the community can have a
Through this very limited marketing H10 builds up a very exclusive, al- say in what will happen to the location, however they are not directly
most underground atmosphere around itself. This vibe - maybe even engaged into the business itself.
hype- can serve as a means of marketing itself.
Eventually, the kick-off party might be the biggest marketing activity. If Overall it becomes very difficult to put up any kind of formal organi-
set up in the right way, it will not only draw the customers to the party zational structure around H10 as the ties between friendship, free
itself but will be talked about for a while. church, business and extended network are very fluid. Additionally we
have noticed that there is a tendency in the community to disapprove
any form of hierarchy.
Therefore we have tried to paint the picture of the core team, with
Dominik and Abi as representatives, are setting the frames, whereas
the community is acting within them.
27
rules and opening times can be discussed.
Implementation plan How will the social business fund be set up? Who will be part of the
board? How shall it be operated? These are questions that could be
tackled with the help of GCL.
One thing is to come up with a coherent concept. In order to put it Further expanding of the network, partners, supplies and resources
into practice however, it needs milestones and a more concrete plan could additionally be a good focus point of this phase.
of how and when to tackle and implement it. Therefore we have put
together a rough sketch of how the next month may look. We have Testing Phase:
divided the time into 4 phases: January 2012- March 2012
Now that the space is renovated and furnished, it is time for the
Renovation Phase: community to actively start using it. What works? What doesn’t? How
June 2011 – August 2011 should the furniture be rearranged? What could be changed? How
As of today, we are entering a phase in which the ground floor of does the citizen wall work?
H10 will undergo quite some changes. A design team closely related This phase should be seen as a testing and experimenting phase for
to the community will plan out how to set up the whole interior as the community in an informal setting. It can be done through working
well as exterior. Eventually the community will renovate the entire from the space and just using it frequently.
interior of the space up to a point where it is ready to be furnished.
The renovation may drag a bit into the next phase, however the major Weekly gathering of the community, but especially the core team
works should be done by September. could be used as a forum to evaluate and reflect upon these
questions and the present events. Both failures and success’ should
Renovating the place themselves, the community will draw of its be recorded in an early phase and there should be a way to evaluate
network wherever it is possible. Not only to save money but also in a later stage if learnings have been implemented. It is a good idea
to start the space in the right culture, they will co-create what will to build up a methodology around this that will not only make it easier
become a co-creation space. for the community members to communicate from, but also set a
certain tone for the culture that will be imbedded in H10.
Finishing off phase:
September 2011 -December 2011 Moreover this phase should be used to actively start thinking about
In this period most construction-work should be done. While there who to invite as initial citizens. Consciously building up a bigger
is still some minor building to be done, the space can slowly be network, the kick-off can be promoted towards individuals. This can
reopened for evening gatherings. It is continuously brought to life also be done through a series of regular events such as concerts or
while the rooms are slowly being refurnitured with finding from the flea workshop in the location.
market, second hand stores and self made furniture.
Responsibilities can be divided in the core team. Who will look into
the legal stuff? How should the internet access be handled? Ground
28
When leaving this phase the community already has a detailed
plan for what to do and when to do it. This plan includes a schedule And then after a year or two the co-working is running so well that
covering all repetitive and all major events. the space gets limited. Now there is the possibility to expand the
co-working to a bigger location. This will be done by Dominik and
And then at some point in late March, early April it is time to finally Albrecht. They will search for a new location, possibly with the help of
kick it off properly. The party has been carefully planned in the the municipality. They will revise their existing co-working space and
previous weeks by a party committee. What is it H10 wants to set up a new business plan to fit the needs.
communicate with the event? Who do you want to communicate it to? In this case the community will remain in Hallgarter Str.10.
And how? The right people have been invited, all preperations have
been made, and the weather shows itself form its best side, then it’s
time to celebrate big time!
The core members should still use a weekly meeting for reflections
and decisions. But as time goes by this could be made into a monthly
routine.
After some months the core team will review the budgets together
with GCL. How much profit is the place making? What is needed to be
reinvested into the space and is it realistc to put 500€ into the social
business fund every month? If all goes well, after about a year the first
social businesses can be supported.
29
30
Some important points to keep in mind This applies to the working method, as well as working language,
First of all it is of crucial importance that the community will use the efficiency and energy. It will define the culture of H10. Also the initial
existing positive energy as a momentum to get things done. steps for creating formal an informal structure can be created here.
A key element of making the working process as positive as possible Besides the actual renewal, an important element is to have a more
is communication. Easily said, but very difficultly implemented it is or less continues flow of events after the renovation is done. This will
worth trying to build up a common language around H10. This should first of all keep the place running and maintain or even expand the
from the beginning be supported by visualizations such as a well- network.
designed Gantt diagram placed in the hallway to have a very clear
and visual plan of the construction process. Defining very clear ends Before the actual launch of the co-working space very detailed
and beginnings and further responsibilities and required resources preparations for daily business must be made. Responsibilities,
could ease up the communication within the group. timeplaning and formal roles must be obvious for everybody already
We are emphazising this as an unclear communication at the involved in the project. All learning’s and experiences gathered from
beginning of long-term processes often leads to confusion and this and the previous phase should be taken into consideration for the
disagreements within groups. Due to all the new implementations preparations of the coming phase.
things will propably still be very messy. Therefore, everything that
ease up the communication within the community and towards The reason why we recommend postponing the official opening until
potential users, neighbours and residents would be positive. the spring, is to be able to use the exterior space for events during
the start up phase as well as the chance of using the months prior to
Preparations to protect the privacy, both for neighbours and residents, prototype.
must be executed as the first priority. The whole rennovation of the
workspaces and the use of the yard should be done regarding this
priority.
The trial and error process should be highly valued. The community
can test things off and see what they approve as elements of success.
32
Conclusion of the implementation plan
Due to the limited time we had on this project we have not been able
to go into detail about the steps that have to be done until spring
Overall conclusion
2012. However with this rough sketch of the steps we see as neces- This is our Business plan for H10. Based on our market research we
sary and additional points as well as the concept we hope it brings the see a strong need in Wiesbaden for a co-working space. This need
community a step closer to realizing H10. By mapping out the risks in goes even beyond the target groups that have been defined.
the concept we have developed, we hope to reduce the likeliness of The way we have designed the concept is based on both the original
them to actually occure. plan to start a co-woking business, as well as the needs and wishes
We will recommend the core team to sit down as a first thing and map of the community around it. A certain openness as well as the aware-
out in detail what needs to be done in the different phases. ness of the fine line between professional and private is required in
order to make this work.
Building up H10 on a very high trust level, both regarding the pay-
ment system as well as other issues, has been a decision we have
made due to wishes the community has brought forward as well as
the fact that at least in the beginning there will not have to be anyone
employed full time. We are aware that there is also a risk involved but
due to the organic growth of the memberbase through the community
we are not too concerned about it. However if this turns out not to be
working successfully, adjustments of course have to be made.
33
We are aware that our business plan by far does not cover all aspects
and doesn’t go into detail. Nor have we been able to cover all the im-
final words
portant points as we would have liked to. It is also clear that the bud- The world is changing in a faster pace than ever. Nowadays jobs are
gets are not very detailed for various reasons. Even more, you might not that easily explained as more and more people make their own
have suspected something more “crazy”. So did we. jobs. As part of the self-realization, more people do their own thing
This might indicate that we have tried to make a business plan that as freelancers or entrepreneurs and offer their competencies to indi-
serves the given needs and is implementable. viduals or organizations. This segment has the same social needs as
people who work within organizations but they don’t want the hierar-
There is points in the contract like a CO2 neutral which we have to- chical structures and bureaucracy that comes with a day job.
tally disregarded in the business plan. This is due to the fact that once
we came to Wiesbaden we realized that this was unrealistic in the Moreover the past three years economic turmoil have changed many
scope of the project. things. They have among other things challenged the way we work
together. We have moved closer together to use our resources more
We would like to repeat at this point that though we stepped into the efficiently. Both the physical resources and the ones we see in each
project as consultants we are mainly students in the process of learn- other.
ing how to set up a business and a business plan with it.
Any feedback that can move us - as a group or individually- forward is Those two elements are partly the reason why we see a growth rate
highly valued. of more than 100 percent a year in co-working spaces. They offer a
new generation a way of working that is consistent with the lifestyle
Eventually we hope that we brought the project forward with it and they want. Connectedness, niche community, individuality and self-
that in one way or another this business plan can be helpful to all par- realization are some of the factors that determine this lifestyle.
ties involved.
In general there can be determined a trend from a reductionist1, com-
petive world view towards a more integrative, holistic and cooperative
one.
Agenda: collaboration
Research
Business forecast
BBQ
35
Working process
Quite early in the process we got aware of our very different person- Dropbox – to share the work and keep track of files
alities and the clashes this was leading to. Based upon this and with Shared facebook group – for links and inspiration
the wish of a good process we made a team contract which was to Rotating facilitator – to keep meetings on the right track and get a flow
become the fundament for our groupwork. Some of the head points in of different working methods
the contract are: Think ahead. Act now!, Don’t show it tell it and if you Visual documentation – the process and work has been documented
need it eat it! and Be aware why!. in pictures and uploaded in dropbox a long the way, as a reminder of
The contract was an attempt to start a common understanding of what we have been through and when we did it
work methods and group culture, and the way this worked out in pra-
cise was by use of instant feedback and evaluations along the way.
Collaboration with client
These are some tools we have used throughout the process: In our preproject phase we have had a number of skype meetings
with Daniel from the community and with our contact person Daniel
Team contract – to build a common platform for the work and group from GCL to get closer to what they expected from us and what they
culture would be able to contribute with themselves. When we arrived we fa-
Roles defined by ministries – to divide the roles and delegate respon- cilitated an IDoARRT with the community and GCL which showed that
sibilities our understanding of the project was very similar.
Active calendar – to keep track of ‘’to do’s’’ and have a productive Throughout the project we have had meetings with GCL and Dominik
workflow from the community to make sure we were on the right track. How-
IdoARRT – as a kickstart for the project when we arrived to make ever, it was not until we presented our first concepts draft two weeks
sure the three parts where on the same page after arrival that we got aware of the conflicts there were in the com-
Game Plan – to keep track of the desired outcome and seperate the munity concerning the desired outcome of the actual space.
goal into smaller tasks Apparently an IDoARRT was not enough to bring us on the same
SWOT – to map out strengths, weaknesses, opportunities and threats level or to get everybody to speak up, so it might have been a good
from both the community, GCL and us. idea to make personal interviews with the different people in the com-
Business Canvas – to keep track of the subject of matter and desired munity or would have presented a concept draft in an earlier stage of
outcome for the community and GCL the process.
Crazy Brainstorm – an ideation tool with the outcome of two concept
drafts to present for the client and afterward work on with
Risk map - to determine possible risks and how consequential they
could be to the project