Quick Business Stats
Filed under: Announcements, coworking, From the Business Side, Independents Hall
This week 4 years ago, Indy Hall was in it’s “public beta” before opening officially on September 1st, 2007. I assure you, it wasn’t always glamorous.
Enough sappy reminiscing. I spend plenty of time focusing on the important coworking soft skills on my personal blog that I wanted to share some quick business stats that we’ve produced as a result of operatin on those values:
- In 2011, our basic memberships ($25/month) have generated 20% more revenue than our lite memberships ($175/month)
- In 2011, our full time membership accounts for almost 50% of our total annual revenue
- Our AVERAGE monthly revenue across 2011 is >8x growth over our first revenue generating month in 2007.
Turning 3
Filed under: Announcements, Events, From the Business Side, Independents Hall
Today is September 1st. That means one thing (ok it means a few things):
Indy Hall has now been open for business for 3 years.
Congratulations to all of us for spending the last 3 years (or some subset thereof) making Philadelphia a better place to make a living doing what we love.
I have a lot to say and a lot on my mind and in my heart, but I’m going to keep it brief for a change and let each of you say your piece instead.
Feel free to use this post and it’s comments to share sentiments, experiences, visions, excitement, joy, friendship, memories, and whatever comes to mind when you realize that before 3 years ago today, Indy Hall was an idea shared by a community, and now it’s one of the greatest things Philadelphia has to offer.
WHERE IS THE PARTY!?!?
For the last 2 years, as well as the re-opening in May of 2007, we’ve thrown an epic party to commemorate our history of accomplishments.
This year, we’re keeping it low key. I invite everyone to head over to – where else – National Mechanics tonight after 6:30pm.
Why no epic shindig with lots of hype?
I think we’re a group noted for action. I want a NEW action to celebrate, rather than a memory of one.
Sooooo let’s plan a MASSIVE multi-product/business/group/whatever launch party to celebrate some of our NEWEST accomplishments a little later this fall. You’ll be hearing more about ways to get involved with that in the coming weeks.
That said – National Mechanics – 6:30pm – you know the drill.
Indy Hall – By the Numbers
Filed under: coworkers, coworking, FAQs, From the Business Side, Independents Hall
Today, a longtime friend and observer of Indy Hall Imran Ali had a research piece published on GigaOm Pro about coworking spaces “by the numbers”. He featured Indy Hall as well as Fly the Coop, a Co-op coworking initiative in Manchester, UK.
This new article is behind a paywall, sadly. At the risk of being asked to take them down, I am going to quote a few select pieces of the article that Imran wrote that I thought were particularly salient. If you’re so inclined, a free 7 day trial of GigaOm Pro (credit card required). I don’t get any sort of kickbacks on subscriptions.
The foresight shown by the coworking movement’s founders — codified in values of collaboration, openness, community, accessibility — readily transposes onto crucial financial constructs, such as transparency, pricing and membership. You really have to live those values to make coworking viable in a fiscal sense.
Imran does a great job of identifying how we parlayed our community growth into business growth.
Both IndyHall and Fly The Coop were only able to build sustainable businesses because of the trust (and loans) that came from early-stage community building[...] It’s this very trust that separates coworking from the more prosaic serviced office.
And, perhaps most importantly, he puts the business viability into perspective for people who are simply in this for the money:
Just as individuals buy into a lifestyle, coworkers are buying into a workstyle; the financial stories of both IndyHall and Fly The Coop show that, though margins are tight, deep community bonds make all the difference, both financially and socially. It’s perhaps not a business for an investor looking to make a significant ROI, but eminently suitable for those who wish to participate as members who also modestly invest.
As promised, here are the RAW numbers that I gave to Imran to tell our story. We operate transparently, so any additional information we can provide about any piece of this data will only be based on the availability of more data points. It’s taken us a while to get good at measuring our growth, so there’s lots of data missing that we’d need to spend more time mining for.
Let me use some numbers to tell a story, from our founding fund-raising to our most recent move and financial stabilization
$0 – Pre-dedicated location costs for 9 months casual coworking/jelly, social gatherings, and other community-building exercises were done on a budget of time, not capital.
$4625 – our projected monthly revenue based on membership projections within 6 months.
———————————————————————————————
23 – our actual number of members on August 6, 2007 (lease signing day)
2 – our actual number of full time members on September 1st, 2007
4 - our actual number of lite members on September 1st, 2007
17 – our actual number of basic members on September 1st, 2007
———————————————————————————————
$1675 – monthly membership-only revenue committed on lease signing day.
———————————————————————————————
$2325 – additional member-driven startup capital, from members pre-paying for 2-6 months of their membership
———————————————————————————————
~$10,000 – money provided by founder for lease security deposit, furniture, supplies, and monthly rent cushion.
———————————————————————————————
$14,000 – total money raised from within membership/founders to sign a lease, furnish the space, and cushion rent until breakeven.
———————————————————————————————
1800 number of sq ft leased in Old City Philadelphia
———————————————————————————————
$2,450 – monthly budget for rent, utilities, and discretionary funds
———————————————————————————————
3 – Months to breakeven/cashflow positive
———————————————————————————————
39 – our actual number of members on June 1st, 2008 (10 months in)
9 – our actual number of full time members on June 1st, 2008
5 – our actual number of lite members on June 1st, 2008
25 – our actual number of basic members on June 1st, 2008
$3975 – Monthly Revenue from Memberships Only
———————————————————————————————
16 – months until partner loan payback ($10,000) completed
———————————————————————————————-
53 – our actual number of members on March 2009
14 – our actual number of full time members on March 2009
7 – our actual number of lite members on March 2009
32 – our actual number of basic members on March 2009
$5875 – Monthly Revenue from Memberships Only
———————————————————————————————–
$3,633.45 – actual monthly operating cost in March 2009
$2.02 – approximate monthly operating cost per square foot in March 2009
———————————————————————————————–
4400 number of sq ft rented in Old City Philadelphia for May 1st, 2009
———————————————————————————————–
67 – our actual number of members on May 1st, 2009
21 – our actual number of full time members on May 1st, 2009
7 – our actual number of lite members on May 1st, 2009
39 – our actual number of basic members on May 1st, 2009
$7975 – Monthly Revenue from Memberships Only
———————————————————————————————–
$8,700.53 – estimated monthly operating cost for May 2009
$1.98 – approximate monthly operating cost per square foot in March 2009
———————————————————————————————–
$30,000 – loan taken from one full-time member
———————————————————————————————–
~$14,000 – savings in May 2009
————————————————————————————————
$21,460 – budget for furniture, buildout materials.
————————————————————————————————
6 – Months to breakeven/cashflow positive
————————————————————————————————
83 – our actual number of members on October 2009 (breakeven)
26 – our actual number of full time members on October 2009
6 – our actual number of lite members on October 2009
51 – our actual number of basic members on October 2009
$9475 – Monthly Revenue from Memberships Only
————————————————————————————————-
9 – Months to begin payback of member loan (<24 month payback target)
————————————————————————————————–
The financials, as it were, are relatively uninteresting. You can see that we operate on relatively thin margins. It’s also worth pointing out that in 3 years, neither Geoff nor I have taken a draw from profit. Every penny made by Indy Hall is re-inves
ted in our members, our space, our events, etc.
The interesting numbers will take some more time to pull together…but they are the numbers that we believe are important. Things like
- Cities, states, and countries of origin of Indy Hall guests.
- Drop-in rates
- Drop-in conversions to memberships
- Events hosted and organized by Indy Hall and Indy Hall Members
- New teams/partnerships formed
- New businesses established
- New products (commercial and non-commercial) developed by Indy Hall Members
- Average revenue generated by an independent worker
And more. What numbers would YOU like to see?
Indy Hall Town Hall – Monday, July 12th, 5:30-7pm
Filed under: Announcements, Community Support, coworking, Events, From the Business Side, Independents Hall
It’s been many months since our last Town Hall meeting, nine of them in fact. That’s a problem!
For the newly initiated (or anyone who has started hanging around Indy Hall in the last year), Town Hall meetings are Indy Hall’s best way of updating community members on large issues that we expect will prompt discussion. As great as our online forums can be, offline events like this have been extremely valuable for important events in our history, including our decisions to grow into this new office last year that we’ve all come to call home.
As we CONTINUE to grow (which is still remarkable to all of us), it’s long overdue we initiate another one of these discussions. In it, we’ll be providing some transparency into Indy Hall’s growth (including membership statistics), as well as some of the new and interesting ideas we have to address some of the pains associated with growing.
We’ll be holding our next Town Hall meeting this upcoming Monday, July 12th, from 5:30 to 7pm right here at Indy Hall.
After a round of introductions from everyone in attendance, the presentation portion of the Town Hall will be led by Geoff and I, and last ~30 minutes at the most. After the discussion, we turn to members from each membership level for some feedback. And then the floor is open more generally for discussion.
Its important to note that these events are NOT for members only: the general public is welcome. In the past we’ve had city council members as well as members of the press present. We think this level of transparency lets us operate the way we know best.
Also, this serves as yet another opportunity to get to know your coworkers, and hopefully get to know Geoff and I a little better as well.
Since this event is open to the public, we’re going to ask people to RSVP so we can plan for seating and space usage: http://anyvite.com/a9urvwzxga
In the end, our goal is that you have some insight into how things are continually evolving at Indy Hall, and what that means for you. There are always opportunities to get involved in new ways, suggest and implement your own ideas with our support, and make this place even better. We wouldn’t be here if you didn’t want to be, and that means a lot to us.
Its up to you to attend and include your voice. We can’t wait to see everyone’s faces on the 12th!
Indy Hall Member Profiles – Steve Winkler
Filed under: Community Support, coworkers, From the Business Side, Independents Hall
Meet Steve Winkler.
Steve, a representative of the PR and marketing contingent at IndyHall, has been with us since we lived on Strawberry St and has taken the reins of our fine newsletter. As such, I fear he will know what I’m going to ask before I ask it. To start, I wanted to know how he came to be a Haller.
“I was working for a small agency here in Philly and as the years went on we had less and less need for a physical office as employees and clients alike were spread across the country.”
What, then?
“I went on the hunt for a place to work and it came down to Indy Hall and a very corporatized office share in Center City.”
But wait, who doesn’t want a phone answering service, mail service, and a secretary?
“If you need somebody to do stuff for you, then that’s where you go. If you just need to work, and you can handle your own business, you can come here. You have to ask yourself who you want to be? How do you want to work?”
See? This guy is a pro. That last bit could be used as a full on slogan.
Now we know how Steve found us, so why the long tenure?
“This is a more interesting environment to work in. One of the problems with being in marketing and PR is you’re kind of in an echo chamber. You’re just in marketing world and you start to care about what magazines like PR Week think.”
I’m so sorry, Steve.
“When you’re exposed to people outside of what you do, you realize nobody cares about PR week. Being here I’m constantly reminded to take a step back and acknowledge there’s a larger world out there and that’s a huge plus.”
Awesome. Now’s my chance to ask what…
“I’m not doing PR anymore. You ready for this marketing speak? I’m doing what’s called ‘Experiential Marketing.’”
Bollox, I said!
“Clients basically come to us because they want people surrounded by their brands. We produce ads, websites, and do events.”
I was curious whether being here at the Hall had improved his quality of work.
“Programmers, Designers, Marketing people, we all have different ideas about the way things work. The more I am exposed to these different perspectives the more I’m able to synthesize them into ideas for cool new marketing campaigns.”
Unbelievable, this guy. If I keep getting answers like this I’ll be out of a job soon. Thanks Steve.
IndyHall Member Profiles: Randy Zauhar
Filed under: Community Support, coworkers, From the Business Side, Independents Hall
Meet Randy Zauhaur, Professor of Biochemistry and Bioinformatics. He says this as though Biochemistry wasn’t impressive enough. Bioinformatics, now what is that?
“It’s basically applying computer information technology to biological problems.”
“As a field it ranges from trying to understand the structure of biological sequences, such as DNA or protein sequences, to what I work on which is the understanding of chemical structures.”
“I wanted to start a company on the side and I wanted to keep my work, in some aspects, separate from the university.”
“The other reason is that, like a lot of people here, as a developer I pretty much work by myself. I had a few research students who I’ve worked with that knew some programming but they never had any interest in developing truly complex applications.”
“Working alone I had no contact with professional level developers and having been in the industry formerly, I really missed being surrounded by people using cutting edge technology. Immediately upon joining Indy Hall my workflow underwent some massive changes as a result of conversations I had over coffee. For example, Jason Allum turned me on to Github and it makes all the difference when you can actually see why something works so well. Also, I just missed the social interaction.”
“The person that directed me here originally was Amy Hoy. I wanted her permission to use some slides she made for one of my classes and in our email exchange she asked if I was aware of the developer community in Philadelphia, more specifically here at Indy Hall.”
IndyHall Member Profiles: Megan Canney
Filed under: Community Support, coworkers, From the Business Side, Independents Hall
Meet Megan Canney.
Megan is a professional seasonal fabric home décor designer. Wow, that’s a mouthful.
For all you seasonal fabric home décor design civilians out there this means she designs those pretty Christmas stockings you hang above your fireplace in addition to various other holiday decorations. She claims designing Christmas stockings is a year round activity but I don’t buy it. My current theory is that it’s a front for her true profession: Mercenary Assassin. More on that later.
I couldn’t help but wonder how one gets into her alleged profession.
“I originally went to school for fashion design but mostly for wearable art, not production fashion.”
Seems she’s better suited for making wearable art for the runway, no?
“You can’t make money doing that so when I left school I got a job doing seasonal home décor design.”
Consider the dots connected. So how does Megan find herself among our ranks here at Indy Hall.
“I knew a lot of the early members and we would go to the Junto down in South Philly and people were always talking about the Hall. When I heard about the job I’m doing now I came and checked out Indy Hall before I even interviewed. I knew that I’d be working remotely and that doing so from my apartment just wouldn’t work for me.”
Interestingly, I more often hear that someone’s been working from home prior to joining the Hall but found them self too distracted to be productive. Excellent foresight she’s demonstrated here… a little too excellent perhaps.
“I’m a really social person and it’s hard not having a design team to work with so at least this way I get to have the social interaction as well as a separation between by working and living space.”
Megan’s presence at the Hall predates mine so I was curious to know how long she’d been here.
“7 months on and off due to the time I spend in China.”
… Now you remember that theory of mine?
“I go to China because that’s where all the buyers from all over the world go to meet with people like me and the salesmen. If a company does import they usually will meet in Hong Kong. It’s the hub of product related business transactions.”
I believe that, assuming that by “product related” she means people and by “business transactions” she means bounty collections. All I’m saying is you’d do well to buy plenty of decorations this year.
Happy Holidays folks.
From the Video Archives: Coworking Questions answered for Web Worker Daily in 2009
Filed under: coworking, FAQs, From the Business Side, Independents Hall, IndyHall 201, IndyHall U, Videos
Wow…a WHOLE YEAR AGO, I answered a bunch of questions for Web Worker Daily in video format. I completely forgot about them until Gerard Sychay from Cincy Coworks tweeted about them. They answer questions that we answer a lot, so I thought it’d be valuable to post here.
IndyHall History:
Bootstrapping:
Diversity
The Future of IndyHall (from last year)
Coworking Tips
IndyHall Member Profiles: Bill Jones
Filed under: Community Support, coworkers, From the Business Side, Independents Hall
Meet Bill Jones. Bill is an IT guy. He’s not just any old IT guy though; he’s the incredibly bold and savvy IT guy who’s not afraid to tell you your IT solutions suck. See for yourself.
“When I would go to my doctor, my dentist, or any small business in my area it would stand out to me that they had substandard IT solutions and I would point that out to them.”
Harsh, I know. Did I mention he has a kind side too? He would always follow up by helping them out.
“When I stopped working for a huge company and was trying to figure out what I wanted to do, I thought that it would be easier for me to be engaged and understand the value I was delivering to people if I worked directly with customers in a smaller context.”
Consulting the IT civilians, empowering the little guy, it all makes sense. However, there isn’t exactly a wealth of substandard IT solutions floating around Indy Hall so what does “Mr. Savvy IT Guy” do here?
“The plan has always been for me to mine that area for a product or two and then focus on building those products because that’s what I really enjoy doing. Consulting and products are two different areas and I’m more of a product guy. Right now I’m actually moving away from the consulting side of small business to work on three products I have in development.”
If that’s not livin’ the dream, I don’t know what is. Naturally, I was curious as to what role coworking has played in Bill’s ability to create this situation for himself.
“When I was looking for office space I ran across this idea called coworking which sounded good to me. I quickly found that Indy Hall was one of the leaders in the area but living in Jersey I didn’t think I’d want to come to Philadelphia all the time. I came in one day just to do research and I realized that I really would be better off just hangin’ out here.”
Ok, but… why?
“The first day I had a six hour conversation with Jason Allum and I said to myself, ‘Ok, this is a good place to be.’ There was a lot of excitement about Indy Hall Labs and the business model that Alex, Jason and the guys were figuring out and that was very interesting to me. I realized there were people here who could teach me stuff and that was better than being alone in my basement office.”
There you have it. Indy Hall: The perfect alternative to your substandard workplace solutions.
IndyHall Member Profiles: Dr. Greg Wilder
Filed under: Community Support, coworkers, From the Business Side, Independents Hall
I’d like you to meet Dr. Greg Wilder.
Greg is a classical conservatory trained pianist and composer whose works have been performed on prestigious stages across the globe. He is known by many different titles including but not limited to musician, composer, professor, and more recently co-founder of Orpheus Media Research.
I, however, know him by a very different title:
Speed Chess Nemesis.
It is for precisely this reason I challenged him to conduct this interview over a match. The opening move was simple; I wanted to know how Greg came to be a part of the Hall.
“I met Alex through PSL (Philly Startup Leaders) and I was very curious about him and his ideas about Indy Hall. I put myself on the waiting list and as soon as they relocated I became a member.”
I couldn’t help but wonder how a classically trained pianist composer wound up sitting in front of a computer as opposed to, well, a piano.
“I haven’t been hands on with any music for a number of months now and it’s been very difficult. I made a conscious decision to focus on my business and it has completely changed my life. Instead of attending an orchestral rehearsal for example, I’ll go to a business meeting.”
I still wasn’t quite sure as to why exactly he was here, a deceptive tactic perhaps. It was time to make a developing move. I had to know what could be so important to someone that they would put aside everything their life had revolved around thus far in order to pursue it.
“I’ve spent my entire life listening to, performing, and studying music. I’m fascinated by the way in which the human mind interacts with music and what I’m doing here at Indy Hall is giving computers a human-like sensitivity to music from both the listening and compositional standpoints.”
Boosh. Check. A bold move indeed, but would it pay off?
“My first morning here I really didn’t know if this would work but by the end of the day my mind was blown. There are so many brilliant people here that you really can’t be the ‘smart kid in class.’ I’ve been fortunate to have the opportunity to work with quite a few of them and they’ve done a lot to help make my vision a reality. What we’re doing is as much about coworking as it is about music innovation.”
Checkmate. Well played, Dr. Wilder. Well played.
