Room2work
About the Company
Room2work is a specialized coworking space located in Roswell, Georgia. Unlike traditional coworking spaces aimed at freelancers and digital nomads, Room2work focuses on small businesses needing professional space for operations. The 7,500 sqft facility includes a warehouse, meeting rooms, and other essential amenities. Alan refers to the space as "The Lab" where he tests and refines various aspects of the business model to scale effectively.
Alan developed Room2work after realizing that many small businesses, especially contractors, needed more than just a storage facility. They required office spaces that could offer professional environments for client meetings, training, and operations. The company’s niche focus allows it to cater to small businesses that don’t fit into the typical coworking model.
Idea Behind Company
The concept for Room2work originated while Alan owned a sales and marketing firm working closely with small contractors. Alan noticed a common struggle for contractors trying to scale from a home office. Around this time, Alan was researching the self-storage industry and realized that many small businesses were using self-storage facilities for business operations.
After interviewing potential customers, Alan discovered that these small businesses needed more than just storage—they wanted meeting spaces, office amenities, and training rooms. Combining the coworking model with the needs of these small businesses, Alan developed the idea of Room2work as a professional space that small, local businesses could use to operate efficiently.
Creating the Company
Alan began the process of creating Room2work by searching for a suitable location that could combine office and warehouse space. Finding the right space was challenging, as he needed a balance of size, functionality, and parking availability. After some initial setbacks with contractors and potential leases, Alan found a 6,000 sqft property owned by a contact from his previous business.
Working closely with contractors and architects, Alan revamped the space to fit the needs of his target market. The facility included a flexible layout with offices, warehouse space, meeting rooms, and amenities tailored for small business owners. The entire design process was focused on value, ensuring that the space would be both functional and affordable for the target demographic.
Launching the Business
Room2work soft-launched in August 2019, but Alan faced an unexpected challenge—convincing people to leave their home offices and pay for coworking space. Alan’s competition wasn’t other coworking spaces but rather the comfort of home offices. To overcome this, he offered free memberships, meeting space, and spent heavily on advertising.
Despite a slow start, Room2work gained traction, especially after the onset of the COVID-19 pandemic. Since Room2work is registered as a Commercial Mail Receiving Agency (CMRA), it was considered an essential business and remained open during the pandemic. By May 2020, the private offices and warehouse spaces were full, largely due to the flexibility and support the space offered its members.
Earnings
Currently, Room2work generates around $15,000 in monthly revenue, with potential to stabilize between $20,000 to $22,000 as demand for coworking spaces increases post-pandemic. The business also benefits from offering virtual office services, which were not part of the original business plan. For $49 a month, clients receive a commercial address and occasional access to the physical space, making it a cost-effective solution for many.
Alan’s goal is to reach $100,000 in gross profit from the current space, focusing on optimizing services that add the most value to members. Room2work’s services, such as offering a team office for virtual workers and providing mail services, have become key revenue drivers that Alan plans to scale in the future.
