LaunchPad Coworking entrance. Left 2 panels slide to open.
Wow, what great response we’ve received from our last post! Your comments, emails, tweets, and calls have been so encouraging. And your ideas are fantastic.
As you know, we’re trying to raise the rest of the money we need — fast. We are still looking for investors, of course, but now we’re considering going down a parallel path.
Several of you suggested pre-selling VIP memberships of some sort. The more we talked it through, the more viable it became. Here’s what we’re thinking:
- VIP memberships available in $1K units — you can buy as many as you like.
- Each unit gets you x% of cash flow for x period of time. We have to run the numbers to define the variables, but the goal would be for you to make some money on this.
- All members would get recognition — as much as we can manage. A plaque, a poster, web site presence…
- We wouldn’t spend any of your money until we’ve raised enough to open, via memberships and investments (after a slash and burn budgets session, that number is approximately $600K). If we never raise enough, we’ll refund it.
Other possible perks:
- cafe discount for x period of time
- x amount of free space for x period of time
We’re also thinking that at some threshold (5 units? 10?) we’d offer some additional benefits, such as:
- use of the whole space x times for private events
- use of partial space (all the meeting rooms, all the coworking space) x times
- free conference room space
I have a lot of work to do to make this happen. We have to run the numbers on it, and put together a legal document. If you happen to know of the perfect person to help me put this together (like today or tomorrow) please let me know. I have experts, but would love to find an individual who can help me get this together quickly.
We need your feedback!
- Which of these perks would you find most valuable?
- If you’re not likely to use space in Austin, is there any other perk you’d find valuable?
- What’s most compelling to you? The profit-sharing? Recognition? Discounts on space/food?
- What kind of recognition would help you or your business most?
- Is this something you’d consider?
5 responses so far ↓
1 Lauren Davis // Feb 9, 2009 at 9:13 pm
For me and others I’ve spoken to, free space and free (or considerably marked down) food/drink would be ideal. In this economy where everyone is being careful, it’s much easier to justify an investment that you’d end up paying over time if the space was open, anyway… especially if paying upfront ends up getting you a “deal”…
So if you could say that you are getting X hours, which would cost $1000 anyway, PLUS 50% off food for a month, that’d be worth it.
2 Julie Gomoll // Feb 9, 2009 at 10:34 pm
Thanks, Lauren. The more we hear, the better :)
3 Carson Coots // Feb 10, 2009 at 3:17 am
I was excited to see this space come to be, and it is very unfortunate that money is tight.
I think that a big discount on space/days with an upfront commitment would make the deal look sweeter in my opinion.
Recognition would be nice also (from a perm vip page on the site etc) and may convince someone who is on the fence. Possibly a special perm monument inside the space with a list of the faithful. A recognition opening party should be planned if successful.
A “back-out” after X amount of time could be written in… so that a VIP can request a refund if the fund raising is taking too long. It may eliminate doubt/fear.
Put framed-ad spots up in the cafe, desks, bathrooms throughout the space and sell promised space (for x time) to technology vendors catering to coworking types. Offer to put them on the memorial list.
Hold a “Save the Launchpad” party/conference with pre-paid advance tickets. Get big names to speak there. Get people to volunteer & reward the organizers with free hours, website recognition or free food. Make the topics about marketing/tech. Charge a lot for drinks at the after-party. Promote online. Invite angel investors who are on the fence or may not know about coworking.
4 Julie Gomoll // Feb 10, 2009 at 11:27 am
Thanks, Lauren and Carson.
It’s definitely looking like we’ll go the discount membership route. Even though I have a few people interested in the profit-sharing angle, they’re in the minority, and it’s looking like it will take a chunk of lawyer time & money to pull off (which, of course, we don’t have).
We’re going to offer a deep discount on space, but a smaller discount on food. The margin in the cafe (and most cafes) is razor thin. A deep discount would simply cost too much.
I do like the idea of a party. SXSW seems like a perfect time for that – once we get this offer up (today or tomorrow) we’ll start thinking on that.
And we’ll still have a refund offer, i.e., if we don’t raise $x by x date, we’ll refund your money.
5 jesse lunsford // Feb 11, 2009 at 10:56 pm
I like the idea of pre-paid office time, of course. And I think the “don’t raise $x by x date = refund” is a must.
I have a great venue for you almost for sure for the party idea – if you are not having it at launchpad. Especially if in the March timeframe.
Good luck w/ it!
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