Ballarat Coworking Feasibility Study
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Feasibility study for a new coworking space in Ballarat prepared by here studio funded by City of Ballarat July - September 2013 •• A key intent of this project remains to skill-share and build community capacity •• The intellectual property in this document is protected by a Client / Architect Agreement between The City of Ballarat and Here Studio Pty Ltd •• Led by Ammon Beyerle and Michelle Emma James of Here Studio, the core team that contributed to this document was Margaret Dobson, Samuel Brown, Samuel Cooney and Onur Ekinci This work is licensed under the Creative Commons Attribution 4.0 International License. To view a copy of this license, visit: http://creativecommons.org/licenses/by/4.0/ If this work has been useful to your project, we would love to hear from you! here studio Ammon Beyerle Mobile: +61 438 068 655 email@example.com Michelle Emma James Mobile: +61 412 124 342 firstname.lastname@example.org here studio architects | participatory design | events | research 1/101 Sturt St Ballarat www.herestudio.net 2 | 915/37 Swanston St Melbourne Contents Introduction Introduction 4 Executive summary 7 Background 8 Stage 2 Feasibility Study Stage 2 process 12 Proposal Strategic vision 16 Intent & principles 18 Key propositions / practical objectives 19 Market analysis and position 20 Membership types 22 Member profiles 23 Service mix 24 Seedlings 25 Coworking typology 26 Design brief 27 Hosting 28 Social and environmental objectives 29 Business model 30 Revenue & cost streams 31 Revenue scenarios 32 Cost scenarios 33 Profit and loss scenarios 34 Site selection criteria 36 Available sites comparison 37 Precedent studies 38 Precedent summary 42 Capital model 43 Start-up phase timeline 46 Start-up core team roles Operational staff roles Operational timeline Expansion timeline Pop-in studio Capital requirements for fit-out Participatory design and community build Start-up promotional activities Start-up event ideas Marketing strategy and timeline Corporate structure timeline Governance structure timeline Not-for-profit or for-profit? Funding sources Potential partnerships Other potential partnerships Risk management Impact assessment Appendix 48 49 50 51 52 54 55 56 57 58 60 62 64 65 66 67 68 69 here studio Stage 3 Start-up Phase Introduction Change is coming. “Coworking” is a cool thing. It’s a verb, an adverb, an adjective, a noun; it’s a fashion, a curiosity, a vision, and an imperative. It’s a movement that is burgeoning globally, nationally, and now: locally. In Ballarat there is the desire for coworking – and all the innovation-collaboration-creativity-comfort-health it promises. This coworking desire looks towards the new culture of work. This “Feasibility study for a new coworking space in Ballarat” is part of a bigger research story, which gathers many threads from snippets of ambition and wading-through-custard ambiguity to a focussed process of getting there. The following pages map the space between desire and practical steps – and documents some of the steps we have already taken together. Over nine weeks we have developed this feasibility study by harvesting (and seeding) assets and ideas of a few dozen people in Ballarat through face-to-face catch-ups, phone calls, emails, day-trips, and facilitated workshops. We have established a core team that employs four locals (including one volunteer) and met locally to collaboratively produce and edit content. Through these activities and open communication we have built a culture and the momentum for the next stage. Critically, to this process we (here studio) bring our own experience of the past three years since co-founding Hub Melbourne. Many of the gems of wisdom (and some pictures and plans) come from that process we were part of, designed, and facilitated. We have also significantly developed content since then through other projects and here in the regional context of Ballarat. As such we often make many leaps in the overall argument of this report because the knowledge of ‘how’ is somewhat implicit for us in remembering our best and worst experiences. The purpose of this report is to materialise discussion into action. It can be read from cover to cover as a narrative piecing together a story, or in separate bits: - Our process so far > Our proposal > Our process to continue; - Page-by-page snapshot explorations, providing frameworks/references for individuals and groups to collaborate on. The Introduction includes a dot-point executive summary, followed by a background section that provides the context for a coworking space in Ballarat. We are currently calling the project Co-Lab. Part 1: The Stage 2 Feasibility Study describes our process of stakeholder engagement and legitimacy-building undertaken in parallel to forming a core team and focussing the community towards a vision. It also maps a miniversion of the big process to come. here studio Part 2: The Proposal takes up almost half of the report, describing what the coworking space will be and how it will run. It starts with a diagram of our strategic vision about Co-Lab’s role in transforming Ballarat, built on our principles and intent developed in early engagement workshops. To this we have included the key practical objectives necessary for the success of the start-up phase (site selection, shared capacity and culture, and a participatory process). This intent and vision is followed by a market position analysis, helping us to inform if it is possible and who would make up the membership base. Key points here are that we can build on established industries to spark others to participate and engage artists in the process so that creative industries keep emerging. We have also identified the potential to shift commuter patterns to keep people in Ballarat. Coworking in Ballarat will need seeding, not just harvesting – “we are encouraging…”. From here we imagine a membership base of individual stories and characters that might use the Co-Lab on resident 24/7, full-time, part-time, casual and club basis. Co-Lab is a resource and meeting point to develop innovations, many of which could be spin-offs seeded by the service mix of memberships, space hire and events. It’s all about culture and we should think about the coworking space as a “place”. 4 Following an understanding of the amenities needed, we explore design scenarios for the physical fit-out and a preliminary brief. As is fundamental to other coworking spaces, it is the staff that host a culture with the members, focussed on social and environmental objectives. To achieve these objectives we have developed a simple business model, predominantly around membership pricing (~$300k) to recover staff and property costs with a 20% margin. We test the most significant budget items, modelling scenarios of membership price ($10-130/week), numbers and take-up; and staff costs, numbers, salary and days. This is followed by a 5-year profit and loss test. At a slow take-up we break even after year 3. This section ends with early considerations around a site - it should be something iconic – and a review of selected coworking spaces in Melbourne. There we leave a hanging question over the value of developing not only an operationally sustainable model and sense of place in a rental space, but something that could realise and generate capital to keep-keep going. Part 3: Stage 3 Start-up Phase describes the next steps between now and opening as part of a bigger five year plan. This section is almost as big as the proposal itself. It includes practical tools and processes for a broad scope of works and practical objectives including membership take-up (marketing). The start-up timeline maps a timeline from now to opening (April 2014) and until the end of the first quarter of operation. Both start-up core team and operational staff roles are described with allocated days. More abstract timelines are offered for Stage 4 (the first three years of operation) in which the focus is consolidation, and Stage 5 where we might see new business models emerge, ‘seedling’ projects playing a major part and possibly the prospect of expansion. During the start-up we are proposing a pop-in studio as a prototype and working space for the core team, and have estimated costs around this. Assuming a significant fit-out project is needed as per many other coworking spaces, we have modelled two capital requirement breakdowns, with one option assuming a participatory design process and community build. As a major part of the next phase is to sign up memberships, we have detailed start-up promotion activities, including a suite of event ideas and a marketing strategy (pattern) reliant on communication and social media. The constitution of a not-for-profit structure has started to be explored, particularly with some early thoughts around funding sources and potential partnerships. The final pages include a simplified risk management matrix, and a description of our ambitions to establish a practice of impact measurement that is meaningful and useful. The Appendix includes core team bios, detailed minutes of workshops, a summary of precedent coworking spaces abroad, a broadband coverage area map, screen shots of social media setup, explorations of ‘seedlings’ in more detail, and full scenarios of membership revenue scenarios, and staff cost scenarios. The last pages provide an example of a community bonds model wherein “a small not for profit purchased, funded, renovated and occupied a building in 19 months”. This feasibility study is the work of many people (and you may notice multiple voices). As well as the participants to workshops and other engagements, we would especially like to acknowledge the core team that have contributed to the journey so far: Margaret Dobson, Samuel Brown, Samuel Cooney and Onur Ekinci. We look forward to your feedback, further input and participation. Ammon Beyerle and Michelle Emma James (Here Studio) 5 here studio Following this is a graphical description of the corporate structure and governance structure steps over time. These are not yet fully articulated, however a broader transition process is mapped over five stages with milestones, layered frameworks and scope to take in many unknowns. The proposal is for Here Studio to carry the process with the City of Ballarat during the start-up phase, before establishing a not-for-profit incorporated association and recruiting a board. 6 here studio Executive summary “We are changing the culture, through language, practice and space” “Ballarat Co-Lab” Vision Principles Objectives •• Seeding a culture for new work practices through creativity •• Providing the infrastructure for innovation •• A vision to impact the City of Ballarat and its region •• A long-term vision to be a seed to help others grow (seedlings) – not just a harvest Revenue (low) •• Year 1: $186,000 •• Year 2: $256,000 •• Year 3: $298,000 Business Model •• Balance operational costs (staff + rent) with core revenue (memberships) •• Numerous scenarios for feasible cost and revenue modelling •• Opportunity for extra revenue through add-on services, space hire and events •• Opportunity to leverage the brand through seedling businesses brokering, café, training People, Membership Mix, Price Points, Service Offering •• Hosted space and events to develop a culture •• Membership price points and service offering comparable to other coworking spaces •• Offering an office space, wifi internet, digital social network, events, meeting rooms, postal address •• Mixed membership base from full-time to casual to club Site Design Process •• Site selection still underway in the centre of Ballarat •• Brief to select iconic building with an open plan and natural light •• Design concept informed by other coworking spaces •• An aspirational brief for environment, process and construction •• Proposal for an incremental participatory design and build process Council funding •• Start-up costs until April 2014, including staff and design fitout •• Rent for 3 years •• Informal support, communication, lease negotiation Time to break even •• 3 years Incorporation date •• December 2013 Opening date •• April 2014 Area to be leased •• 200m2 Capital costs for start-up (10 months) •• Fit-out: $100,000 to $200,000 •• Staff: $200,000 Capacity of members •• 50 at one time Number of members (low) •• Year 1: 72 •• Year 2: 96 •• Year 3: 108 Membership prices •• $10, $30, $50, $100, $120 Core team investment so far •• 1100+ hours here studio Marketing, communication •• Social media savviness, experimental, informative, fun •• Strong role of events •• Diverse audience, including startup and practicing businesses, artists, youth, people who work at home or are un/underemployed, individuals and organisations, locals and commuters •• Focus first on established sectors then expand Governance, Corporate Structure •• Carried by Here Studio Pty Ltd and City of Ballarat until opening •• Not-for-profit incorporated association Ballarat Co-Lab Inc established at end of 2013 •• Legally constituted board focussed on strategy, impact assessment, partnerships and capital development •• Concentric circles model of community engagement until opening: Here Studio Pty Ltd directors > core team > ambassadors > stakeholders > broader community •• Options for capital independence after 5 years, including possibilities for community ownership / partnership models 7 Background Coworking is a rapidly growing global movement. According to the Global Coworking Census conducted in February 2013, there are now 2498 coworking spaces around the world, increasing significantly from 1320 spaces at the same time in 2012 and 600 spaces in 2010. There are now coworking spaces in 80 different countries -- with the majority in the United States, followed by Germany, Spain, England, and Japan. As at February 2013, Australia has 62 coworking spaces, and the highest growth of coworking spaces per capita of any country. Almost all of these spaces are located in our capital cities (mostly in Sydney and Melbourne) and generally attract startup entrepreneurs, creatives, corporates, and freelancers. The first Coworking Conference Australia was held in Melbourne in March 2013, signalling that the coworking movement has truly arrived. cycling collaboration tree change work/life balance environmental sustainability new ways of working breaking down silos shared resources retrofit urban renewal working from home telework Ballarat Co -Lab freelance economy here studio crowd funding start- ups re- distribution of power mobile office co- working arts social enterprise creative culture cafe culture collaborative consumption shared economy bartering volunteerism 8 deliberative democracy community capacity building skill sharing The coworking movement is part of a shift to a new economy. This new economy is emerging through a number of key trends including: •• •• •• •• •• moving away from industrial production towards creative industries rapid urbanisation (more than half of world’s population living in cities) emphasis on work/life balance and a more holistic view of prosperity increased independent and mobile workforce (1 billion people) shift from owning to sharing These bigger levers also have strong impacts on regional areas. Over the years, young people in places such as Ballarat have left for the city in search of broader professional and personal opportunities. More recently, as manufacturing declines and the local service sector struggles with competition from offshoring, talent retention and economic development become significant challenges in the regional context. With the advent of the internet and other mobile technology, the opportunity for conducting business tasks and networking online has meant that some of the limitations of location have been removed. Workers are becoming increasingly flexible. ‘I am an artist and I work from home. I would love to work in a space where I can feel a ‘buzz’ of others working around me. Who knows who I will meet and work with?’ Yet, this flexibility and freedom can bring isolation for some. Working from home can come with its own set of challenges in blurring the boundary between our private and professional lives. Our appetite to balance our personal and professional lives is on the rise. This is evidenced in increased demand for flexible work arrangements and in the growing tree-change movement, where city dwellers recognise the quality of life offered in regional cities like Ballarat. Drawing these demographics out and into a coworking space in Ballarat is an excellent opportunity to bring people together in a physical space for collaboration and innovation. Already we are hearing from a number of individuals and organisations across different sectors and backgrounds in Ballarat about the excitement and benefits that a coworking space will bring to them. The regional context is, however, unique. Compared to the capital cities, in Ballarat, the critical mass of the coworking movement can’t simply be harvested to provide a sustainable model. Despite the rapid growth in coworking spaces across the globe, only 1% of the spaces are from cities with populations under 120,000. Revitalising Ballarat into a creative regional centre will require a change in attitude and culture that will need to be seeded over time. The opportunity lies in developing strong connections within the community through a bottomup participatory process to develop a meaningful place that will support and push the boundaries of what is possible in Ballarat. As the first regional coworking space of its kind and size in Australia, the Ballarat Co-Lab is in a unique position to bring positive urban renewal to the area and become a model for coworking in the regional setting. ‘I am an IT professional. I’ve been a heavy proponent of the NBN. Avoiding long commutes was part of the reason I chose to return to Ballarat. If I can help make Ballarat Co-Lab a reality I’ll do all I can.’ 9 here studio Coworking in Ballarat 10 here studio here studio Stage 2 Feasibility Study 11 Stage 2 process Building a sense of what is possible The project plan for the Stage 2 Feasibility Study (to the right) can be read as three fortnightly phases with larger workshop discussions with ambassadors, focusing and building on the themes of 1) Assets > 2) Intention > 3) Structures, to develop a vision and feasibility for a coworking space in Ballarat. The Stage 2 core team including Ammon Beyerle and Michelle Emma James from here studio, local resident Marg Dobson, and Onur Ekinici was initially formed. Ballarat residents Samuel Brown (intern) and Samuel Cooney (volunteer) have joined the team more recently providing valuable local knowledge, connections and energy to the project. here studio Our immediate tasks have been to provide background research, precedents and concepts to spark discussion with the wider ambassador group; design a feasible model behind-thescenes; keep building excitement around the project and generate ideas for us to harvest. As the current momentum is high amongst those interested in the project, in Stage 2 we have moved quickly and focussed on resourcing and harvesting the input of others. We have encouraged volunteerism and the contribution of assets from members of the community. Core team - who we are here studio is an emerging architecture practice that specialises in community development and participatory design. In 2010, here studio cofounded Hub Melbourne, leading the community design/build process as well as operations and events in the start-up phase. 12 Vision ASSETS (+ PROCESS) INTENT (+ VISION) STRUCTURES (+ VISION) (2 weeks) (2 weeks) (2 weeks) including Workshop 2.1 including Workshop 2.2 including Workshop 2.3 Communication Networking STAGE 2 FEASIBILITY STUDY A draft report was distributed to various ambassadors, experts and Council staff at the end of week six, and this final feasibility report has incorporated the feedback received. Our intention for this stage of the project has been to build the foundation, capacity and buy-in for the next stages 3) detailed design and 4) build/ implementation. In summary, in stage 2 we realised a bottom-up process that: •• built on an asset-based approach first by activating Ammon Beyerle (3-4 days/week) project management / relationships / partnerships / communication / facilitation / financials / design Michelle Emma James (2 days/week) design / research / production / facilitation / graphic design Marg Dobson (2 days/week) hosting / relationships / partnerships / communication / research / narrative (8 weeks) community assets •• developed community capacity, including for sophisticated decision-making •• laid a pattern for regular stakeholder workshops, including structure, tone, culture of transparency, engagement of expertise, collaboration •• made the most of what we have in Ballarat, including employing 4 Ballarat residents •• established the seeds of a core team - members and practices! - to allow a successful start-up Sam Brown (2 days/week - intern) marketing / events / research Sam Cooney (1 day.week - volunteer) financials / research / hosting Onur Ekinci (0.5-1 day/week) facilitation / principles / purpose / impact Pleasre refer to the appendix for full team member bios STAGE 2 2013 2 1 3 5 4 7 8 9 27/08/13 03/09/13 10/09/13 Huyghue House Huyghue House 6 FOCUS 17/07/13 24/07/13 31/07/13 06/08/13 13/08/13 20/08/13 Melbourne BBC Core Team Here Studio Office Huyghue House Skype Huyghue House T.B.C Drafting Feasibility Study + Feedback Preliminary Site Assessment 25/07/13 07/08/13 22/08/13 Workshop 2.1 Assets Workshop 2.2 Intent Workshop 2.3 Structure Ballarat Business Centre Unicorn Hotel Unicorn Hotel Ambassadors Potential Partners 15/08/13 22/08/13 Ballarat Business Centre Margi Cousins & Simone Anderson 29/08/13 Ballarat Business Centre Margi Cousins Council 27/07/13 Jeff Pulford 15/08/13 02/08/13 29/08/13 Anthony Schreenan Jeff Pulford Jeff Pulford & Anthony Schreenan MILESTONES Start Stage 2 Contract Signing Presentation to Council First Draft The timeline above shows the times and dates of various meetings held during the eight-week period of Stage Two. Facilitated workshops were held fortnightly and were attended by a total of 32 people. The attendees at these workshops, included people from the following professions and fields: IT professionals, DPCD (state government), photographer, writer, hospitality, small business, event organiser, NFP charity organisation, filmmaker, media consultant, teacher, disability sector, artist - painter, PhD student, event manager, community cultural development. Many of these attendees have become â€˜ambassadorsâ€™ and have shown an interest in supporting the project and communicating the idea to others. Other informal meetings were held with ambassadors, potential partners, Council officers, and specific experts. Number of participants at workshops total 37 attendees / 28 apologies workshop 2.1 13 Relationships between the core team, ambassadors and the broader community during Stage 2 6 CORE TEAM workshop 2.2 13 10 AMBASSADORS workshop 2.3 11 Relationships between the core team, ambassadors, members, and the community during Stage 3 and beyond 12 BROADER COMMUNITY Increase in number of subscribers to mailing list via website CORE TEAM AMBASSADORS MEMBERS start of stage 2 39 Number of people who provided feedback on first draft of feasibility report end of stage 2 86 8 BROADER COMMUNITY 13 here studio The core team met at least once a week for a full-day working session. On 13 August, the core team visited five different coworking and shared office spaces in Melbourne including: Hub Melbourne, York Butter Factory, Inspire9, Compound Interest, and Electron Workshop. 14 here studio here studio Proposal 15 Heading text Strategic vision Co-Lab as a cultural change agent in Ballarat Stage 1 Vision Activation here studio Board Governance In and around Ballarat, passionate and visionary individuals have stimulated discussions around the prospect of a coworking space in Ballarat. It led to a Vision Activation workshop held in Ballarat on 27th July 2013 with key community, business and government leaders. 16 Stage 2 Feasibility Study Board Governance A core team has been formed to conduct a feasibility study in the past eight weeks to test the validity of a coworking space in Ballarat. Drawing on local energy and knowledge, three workshops have been conducted with members of the community (â€œambassadorsâ€?) and potential partners to create a strong vision for the Ballarat Co-Lab. Stage 3 Start-up Phase Board Governance Through a participatory process the Ballarat Co-Lab will be set-up by and for members of the community. It provides an inspiring new place to work, collaborate, connect and socialise. The Ballarat Co-Lab will be a new seed of creativity and innovation in Ballarat. Heading text Board Governance As the Ballarat Co-Lab begins to grow, it becomes an integral catalyst in the changing cultural landscape of Ballarat. Exciting new projects and opportunities are being instigated from the Ballarat Co-Lab that benefit its members and the broader Ballarat community. The positive impacts generated from the Ballarat Co-Lab are measured, communicated and built upon. Stage 5 Expansion (Year 3-) Board Governance Ballarat Co-Lab has become established and plays an important role in the ongoing transformation of Ballarat. While continuing to support its members and partners through expansion, Ballarat Co-Lab now has the capacity to encourage other creative initiatives. Ballarat Co-Lab supports the growth of â€˜seedlingsâ€™ in and around the coworking space and more widely in Ballarat. here studio Stage 4 Operations (Year 1-3) 17 Intent & principles Finding out what we want to be Intent On the 7th of August 2013, thirteen people gathered to discuss our collective intent, which would ultimately inform the purpose of Ballarat CoLab. The workshop started with a guided meditation that asked participants to connect with what they needed to be to bring about our collective purpose. After several exercises of individual and group reflections and discussions, the essence of our intent is captured succinctly and powerfully into the following statement: Collaborating to transform our community Our Community Principles The same workshop on the 7th of August also drew out the guiding principles for the way we will work together as a community. We reflected on the way we want to â€˜show upâ€™ at a coworking space. How do we want to be and behave? What are our values and ideals? After extracting a list of responses and clustering common ideas, the principles below capture the diversity of views and energy held. Collaborate Changing the culture of work by bringing people from different backgrounds together to allow chanceencounters, build trust and support creative and innovative ideas and projects to come to life Listen here studio Seeking to understand no matter how challenging. Listening, sensing, reflecting, and subsequently responding to increase our mindfulness Bold We hold a space for people to be brave, to do things differently, take risks, challenge preconceptions, try new things and be prepared to make and learn from mistakes through the process Hungry We know ideas take persistence, passion and motivation to make them a reality Fun We are curious and eager to experiment and be playful. There is no such thing as a silly idea! 18 Key propositions / practical objectives What are the next vital steps? Our community engagement and feasibility study identifies the following to be the key practical objectives for the project in the start-up phase: 1 Choose an appropriate and engaging site that has a future urban renewal potential - and keep realising this in all aspects of the project It is the proposition of the project to potentially select a site which will be regenerative for Ballarat. A heritage building that would otherwise be at risk of losing its unique place in the city’s landscape, or a building that is underutilised. Once reinvigorated the space would inspire confidence in the surrounding area with the flow-on activity. The long term objectives of finding such a site, would be to secure its future as a Co-Lab, and to survive the regeneration of the area, the growth of population and property prices. 2 Build shared capacity and a sense of culture In The Fourth Pillar of Sustainability Jon Hawkes describes community capacity building as the ‘development of communities into entities that have the capacity to be cohesive, sustaining and self-reliant’. His proposition of building self-reliance brings tangible outcomes in connectivity between people, increased wellbeing and a decrease in reliance on outside funding sources. City of Melbourne’s City Plan 12 states: ‘Culture is essentially about a way of life. It is a celebration of what a community is, where it has come from and where it is going – its identity and memory. It is also about how the City (in this case Ballarat Co-Lab) and its community do things and what they value’. •• To create an atmosphere that is inspiring, beautiful, comfortable and encourages collaboration •• To create an environment that generates productivity and opportunities to expand knowledge through collaboration, conversation and skill sharing •• To build a positive culture that enhances vitality, wellbeing, creativity, diversity and innovation •• To provide support for startups and foster new business development and networking pathways Participatory Process here studio 3 By tapping into the resources that already exist in the local community, the design and build process affords many capacity-building opportunities for residents, creative enterprises, and community groups, as well as the project itself. As people and innovative businesses are involved in the process of making their own place, the level of ownership and on-going engagement with the coworking space is significantly increased. With the right approach, the creation of a coworking space also presents an excellent opportunity for a community development platform. 19 Headinganalysis Market text and position Who to harvest and who to seed? The third Global Coworking Survey was conducted by Deskmag at the end of 2012 inviting just over 2000 participants to answer questions online. This survey identified that globally 53% of people who use coworking spaces are freelancers, 14% are entrepreneurs, 9% are small company employees, another 9% are medium company employees, while 6% work for big companies. 8% describe themselves as “other”. The percentage of female ‘co-workers’ increased from 32% to 38% over two years. Who uses coworking spaces globally? As at November 2012, over 110,000 people work from approximately 2500 coworking spaces globally. The maximum capacity of most coworking spaces is 41 people, while the average membership size is 44. 62% of those surveyed said they had no plans to leave their coworking membership, while less than 5% choose to stay for just a single month. medium company employees According to the first Global Coworking Survey conducted in 2010, four out of five coworking members have a university education. The vast majority of ‘co-workers’ work in the creative and new media industries. Many stated that they specialised in more than one specific field. The highest group was web developers/programmers, while every ninth person is a graphic or web designer. There are also many consultants focusing on creative industries, as well as a large group of PR and marketing professionals. The survey also highlights that artists, journalists, writers, and architects also use coworking spaces. freelancers 53% entrepreneurs 14% small company employees 9% 9% large company employees 6% other 8% Average maximum capacity at any one time 41 Average membership size 44 In Melbourne (and globally) there are a number of coworking spaces that are set-up to support members in a specific industry, while other coworking spaces draw on a more diverse membership base to encourage cross-disciplinary collaboration. As an example the York Butter Factory attracts web and digital media entrepreneurs, and it provides valueadd events that are particular to that field and opportunities to match ‘co-workers’ with relevant angel investors and vice versa. By contrast Hub Melbourne has a broader membership across business, government and not-for-profit sectors and this cross-section of people is part of its attraction. To achieve its purpose of transforming the community through collaboration, we are encouraging the Ballarat Co-Lab to take a more diverse membership approach. We have started with an analysis of the current market patterns to identify people who are natural fits for this type of space. We will focus initially on desktop creatives, in particular IT professionals and independent consultants, many of whom are already familiar with the coworking concept elsewhere or online. These people are already by necessity working flexibly in cafes, home offices and libraries. Who will use the Ballarat Co-Lab? Industry Analysis Graph for Ballarat here studio ICT Business + Systems Analysts The adjacent graph is a snapshot of the key industries that may utilise Co-Lab, and the number of professionals in each industry from Ballarat from the 2011 Census. It shows that there are some dominant professions in Ballarat including human resource professionals, software and web programmers, graphic designers, web designers, illustrators, journalists and writers and ICT professionals. These reflect similar industries that have had a high takeup of coworking spaces globally. Software + Applications Programmers Multimedia Specialists + Web Dev. Business + Systems Analysts ICT Professionals Interior Designers Graphic + Web Design + Illustrators Architects + Landscape Architects Fashion + Industrial Designers Architects, Planners + Surveyors ICT Trainers Human Resource Professionals Human Res. + Training Professionals Business + Marketing Professionals Journalists + Writers Authors + Book + Script Editors Visual Arts + Crafts Professionals Photographers Music Professionals Arts + Media Professionals 20 0 20 40 60 80 100 120 140 160 180 200 In the second instance, the Ballarat CoLab could look to other industries to grow in Ballarat and encourage new patterns of work. Some of these untapped markets may be in creative industries such as arts, media, and music and eventually in more education and training. New demographics may also be accomodated. Heading text Commuters to and from Melbourne and Ballarat Age and Population Change We have identified the opportunity to encourage people to stay in Ballarat (such as university graduates) and attract commuters to and from Melbourne and the region to work and meet locally. Ballarat has a history to build on as a regional centre offering an alternative and viable healthy lifestyle, different to big cities. City of Ballarat Age Profile 2001-2011 2011 2006 18,000 16,000 2001 14,000 12,000 10,000 8,000 Below is a graph of the number of employed people whose usual residence is in Ballarat that travel away from Ballarat to work, the second graph is specifically those who travel to Melbourne. There is the potential to design a price point that matches this cost. 6,000 4,000 Number of Commuters per Mode of Transport Travelling From Ballarat to Melbourne Train, car as passenger 5,271 2011 Car as driver 2,215 1000 2000 3000 4000 5000 6000 0 500 1000 1500 2000 2500 3000 We see a market in offering large employers in Melbourne the opportunity to have their staff who live in Ballarat to work from Ballarat (at least on a part-time basis). The proposition is that it will increase well-being for the staff member, save costs of transit, improve our environmental footprint and increase the effective hours they can work. The other benefit is increased exposure for that business in Ballarat. Data on the V-Line website shows that there are currently 4 morning services that arrive in Melbourne before 9am, which are at 83-95% passenger capacity. Based on these estimates, approximately 1200 people take the train to commute, and this figure is set to increase with the completion of the Regional Rail Link. According to the 2011 census, approximately 2500 people drive from Ballarat to Melbourne five days a week for work. As well as attracting a new member base for Co-Lab, increasing the day-to-day working population will benefit Ballarat businesses and encourage the growth of the local economy. Our founding members Our aim is to attract 96 members by our scheduled opening in April 2014. The diagram below gives one possible mix of members. 15 full-time flexible 5 residents 2 start-up 2 community org 1 freelancer 75+ years 0 Train 0 65-74 years 0.5 Bus 2001 45-54 55-64 years years 1 Train, car as driver Car as passenger 2,637 25-34 35-44 years years City of Ballarat Change in Population 2001-2006 & 2006-2011 2k 2001-2006 2006-2011 1.5 -0.5 2006 15-24 years 1 commuter 9 freelancers 2 community org 2 start-up 1 home office 38 part-time flexible 6 commuters 3 part-time parents 10 freelancers 4 start-ups 4 home office 1 state govt 2 council 2 large company 2 artists 2 students 2 youth 0-14 years 15-24 years 25-34 years 35-44 years 45-54 years 55-64 years 65-74 years 75+ years Key Findings •• Population growth of 8,055 (9.5%) between 2006 and 2011. Slightly higher than the state growth rate of 8.9% - Ballarat is changing through growth, density of people in the city is increasing. •• A 2,460 person growth in 25-44 year olds between 2006 and 2011. Between 2001 and 2006 these age groups had declined. •• A 3,448 growth in people over 55, the opportunity to connect with life experience, career change and leadership. •• Ongoing, strong growth in youth translating to a demand for pathways to long term work, new career opportunities, innovation and new enterprises •• Notably there is a growth in 25 – 44 year olds in Ballarat, this age group is the most likely to demand alternative work spaces such as the Ballarat Co-Lab 19 casual flexible 19 club members 8 commuters 2 part-time parents 2 community org 2 large company 1 council 1 state govt 1 student 1 youth 1 retired 3 commuters 2 part-time parents 7 large company 2 council 1 state govt 1 youth 1 retired 2 artists 21 here studio Total number of trips to work from Ballarat to non-neighbouring local government areas 0-14 years Membership types How is the membership made up? Member ratio Our core model is based around cultural change through membership and cost recovery through the membership. Like many other coworking spaces, the Co-Lab could work with different levels of membership depending on how much they take from/contribute to the space. Throughout the start up phase we would need to be flexible in how we make up this mix. club 1a. Tiered membership coworking club 1b. Small number of coworking members 1c. 50/50 member split 1d. Large number of coworking members Residents 24/7 Full time members Part time members Casual members Club members organisations that relocate their office to the CoLab can use the CoLab 5 days a week can use the Co-Lab 2-3 days a week can use the Co-Lab 1 day a week have access to online network have access to the online network have access to the online network have access to the online network member discounts to events have their own online profile have their own online profile have their own online profile member discounts for space hire member discounts for space hire member discounts for space hire member discounts for event tickets member discounts for event tickets member discounts for event tickets have access to the online network have their own online profile member discounts for space hire here studio coworking Residents/Full time members use the space more. They will hold the consistency of the culture and mentor others in the space. Provide day-to-day backbone. Part time and casual members allow us to increase the diversity of the space and mix the Co-Lab with the broader working community. For them, the Co-Lab could act as another office closer to home. It gives them the opportunity to collaborate with others and provides them with meeting space. There are different ways of covering how the membership covers the cost of the Co-Lab. As this will be an incorporated association there would be the opportunity to directly link the costs as per a co-op model where the members that use the space pay for the space. In this model, the club members would be add-ons (left diagram).Anchor members In the same way, we can think about which of the core services the members receive (right). What are some of the possible add-ons (printing, storage, training modules, reception tasks, mailbox, brokering) that members may be willing to pay for? 22 Resident Members 2a. Resident + Club members Donâ€™t use the coworking space, but attend events and want to be connected to the community. The more of these the better; they broaden the scope of the community beyond those that require physical space. Co-op + Club 2b. Co-op + Add-ons Member profiles Who will use the space (and innovate)? Hugo is looking for a space to work on backof-house processes of his café, and a place for meetings with his staff and other like-minded people. He occasionally employs graphic designers for his menus and events, and being a member will give him the chance to meet and collaborate with some of the local designers. Hugo would like to bring his cooking into the space, cooking a weekly meal for a small price to try some new recipes. He is also interested in creating a community with other chefs though casual get-togethers. In the future, he wants to run cooking classes and educate others in slow food, local and seasonal ingredients. Hugo is looking for a working and social environment to help ease the pressures of being a business owner by giving him time and space while promoting his business. Holly Age: 25 Occupation: Young mum, creative Membership type: Club Holly is a painter, a dancer, has just finished studying arts and has an 18-month-old toddler. At the moment she is thinking of setting up a baking business. Holly wants to become a club member to research her baking business model and keep in touch with Ballarat’s creative community through the events. In the future she hopes to help the team introduce a ‘dribble space’ for members with young children, who would work together to care for each other’s children. Holly hopes this would give her and other parents, time to develop their goals and business ideas. Jacob Age: 22 Occupation: Student Accountant Membership type: Full-time Mary Ann Age: 40 Occupation: photographer and filmmaker Membership type: Resident Mary Ann has been in Ballarat for two years and works from home. She is a photographer and filmmaker and has found enough work to sustain her since she arrived. Mary Ann can see the opportunities in Ballarat for her business, but she needs to grow her connections to keep the work coming in. She sees the space as a more creative space to work from. With her experience she would like to mentor some young creatives, and contribute to the space by introducing a darkroom and rendering engines. Tristan Age : 27 Occupation: Local council youth engagement Membership type: Casual Tristan is interested in finding a stimulating space he can work from once a week where he has the chance to connect more directly with a range of people from the community. He has plans to conduct his meetings in the space and thinks young people would get a lot out of seeing a different way of working. He is planning some youth engagement events and thinks the space, utilising the resources like the kitchen, would work well. He wants to see if the coworking space will help him find people in the community who can, and want to help him with the tougher issues he faces working with youth. here studio Hugo Age: 33 Occupation: Chef Membership type: Part-time Jacob has been inspired to apply to Federation University for a full membership. He would like to be able to spend his time working in the space with other professionals to keep up to date with changes and developments in his industry. He has requested we match him up with a suitable mentor, and in exchange he has offered to help the team with accounting. He is excited about new ideas and business prospects; one of his goals is to open one of the first regional PAX (Penny Arcade Expo games conference) in the world, here in Ballarat. 23 Service mix What is the Ballarat Co-Lab? Commuters - Creswick - Horsham - Ararat - Melbourne Local Individuals Investors Workspace Partners Events Organisations Event Space (tickets) (hire) Cafe ?????? Advocacy ? (messy space) Memberships here studio ?? Arts Entertainment •• Flexible hot desks •• High quality internet connection •• Access to kitchen •• Access to casual meeting room (free booking system) •• Personal profile on website •• Access to online collaboration network •• Street address 24 Place! ? Brokering Other services Library Externals Gym Childcare Education + partnerships with other coworking spaces? Space Hire •• Formal meeting room •• Seminar/workshop •• Event space *discount for members Vision Events •• Variety of programming initiated by Co-Lab and/or members •• Learning opportunities •• Networking •• Entertainment •• Interest based clubs *discount for members Seedlings Planting seeds for the future One aspect that has come up a number of times is the concept of seedling projects that spin out of the business model. The idea is that the Co-Lab provides an environment for new things to grow. What we could then see is the Co-Lab taking the opportunity to invest in seedling projects – such as a community café, wellness services for members, education services delivered by members or as add-on membership options that are focused on specific skills shared in the community. An interesting idea has appeared of a brokering agency, that attracts work and connects to members looking for work, this could then go onto further developing new ways of coworking that are about collaboration between many disciplines. The Co-Lab could offer assistance to members starting their own enterprises for a clear return. The assistance could be cash grants, capital, or simply ideas, culture, volunteer connections and of course the brand. Further iterations could include angel investment, sponsorships, pathways to partnerships and auspice arrangements. The benefits of the seedling model are two-fold, returning value back to the Co-Lab brand and providing opportunity for members to grow themselves and the brand simultaneously. To manage some of the risks associated with this, some of the seedling businesses may function simply as a sub-tenant of the Co-Lab space. Some examples are explored in the appendix. Although there is excitement around this concept, we only intend to test and develop this as a part of the core business once the Co-Lab is established. Childcare • Benefit members • Values • Marketing brand Growth Cafe Growth • • • • Profit share Benefit members Values Marketing brand Growth Brokering • Benefit members • Values • Marketing brand here studio Seed Fund Growth Youth Services Growth Maker Space • • • • • Benefit members • Values • Marketing brand Profit share Benefit members Values Marketing brand Growth Growth Wellness Education • Benefit members • Values • Marketing brand • • • • Profit share Benefit members Values Marketing brand 25 Coworking typology What is a coworking space? Coworking spaces are shared working environments that often include a large flexible space that allows for multiple uses. Over the course of the day, the space can be transformed from a working space to a meeting space and to an events space. The combination of these spaces become a resource for the whole of Ballarat. Shared work space fireplace petal tables white board Meeting space fireplace STAIRS white board MEETING SPACE petal tables projector LIFT partitions STAIRS host projector speaker chairs LIFT partitions bench seat whiteboard pigeon holes walls ENTRY LOUNGE WC bench seat SCENARIO 1 Wednesday 10am bench seat brekkie bar 0 LUNCH AREA bench seat KITCHEN 1 bean bag 3 5 SCENARIO 2 Thursday 12:30pm ENTRY registration mural mural theatre curtains art wall projector meeting table bench seat speaker prep table ENTRY theatre curtains art wall LANDING guest chairs printer mural theatre curtains bean bag LIFT host whiteboard pigeon holes walls printer projector LECTURE SPACE LANDING books SHARED WORKSPACE petal tables STAIRS MEETING SPACE LANDING books SHARED WORKSPACE TEMPORARY STORAGE drinks library table library table projector Event space bean bag WC dining table TEMPORARY STORAGE brekkie bar 0 KITCHEN 1 art wall petal tables NETWORKING EVENT partitions 3 5 SCENARIO 3 Thursday 7:00pm WC drinks PREP AREA drinks 0 1 3 here studio N Natural light and an open feel so imaginations can soar 26 Gathering spaces so people can come together and connect Celebration spaces so culture can grow and memories can be made 5 Design brief What will the space look and feel like? How will it be built? At this stage we haven’t established a site for the Ballarat Co-Lab. During our feasibility study we visited other coworking spaces in Melbourne. This is the essence of the brief that we developed for Hub Melbourne in 2010. The first step of the participatory design process will include brief development for the Ballarat Co-Lab. Environmental brief •• Furniture designed for flexibility/to encourage collaboration •• Variety of spaces for choice throughout the day depending on work mode •• Colourful and textured spaces full of interest •• High quality finish and selections •• Greenery for fresh air and respite Process brief •• Design and build process that encourages growth of the community •• Maximum diversity and participation •• Make days, prototyping and interation •• Multiple designer inputs •• Placemaking •• Record stories here studio Construction brief •• Slow architecture (sourcing materials from within a 100km radius of Ballarat) •• Recycled materials where possible •• Low-VOC •• Lifecycle thinking (materials can be disassembled and re-used, i.e. no glue) •• Awareness of environmental impact •• Celebrate existing conditions (heritage) 27 Hosting What is hosting? The key to the coworking space is offering a different culture for work. The organisation structure is arranged around a host with interconnecting part time roles. The host role is supported by a manager, who is effectively the liaison to the board, facilitates training and communication, budgets, targets and hires/fires staff. The manager and host works closely with the business development ambassador, who forms partnerships, attracts sponsorship and increasing impact of the organisation outside. The host establishes, encourages, and supports a different culture through presence in the space, interacting with members face-to-face and adapting the work environment. This imbues new language, shared skills and embodied practices of collaboration. In addition to hosting the culture, the host supports the general operations of the coworking space •• admin and day to day accounts •• support to events coordinator Maintenance includes IT infrastructure. Hosting Team Maintenance Manager - 1/2 day/week - 1/2 day/week here studio Business Development I.T. Events Refer to appendix for team roles 28 Seedlings - 2 days/week - Ticketed events - Event space hire - Additional support Social and environmental objectives What are we trying to achieve? Our aim is to re-balance social and environmental impacts on Ballarat and the region. Transforming our culture Creating jobs Developing individuals Supporting creative ideas through hosting and mentoring and developing new ways of working Monitoring and supporting the growth of members and their organisations Providing learning opportunities through regular events Increasing health & wellbeing Reducing energy usage & greenhouse gas emissions Stimulating local economy Supporting the establishment and thriveability of microenterprises owned and operated locally Living more sustainably Creating an edible garden to encourage and teach people how to live more sustainably Creating a fun and inspiring place to work and play Sharing a working space to reduce overall energy consumption Sustainable transport Capacity building Less commuting! Facilitating walking and cycling in Ballarat here studio In line with the City of Ballarat Sustainability Strategy, key areas for future monitoring and reporting development include: •• Leading by example •• Proactive action •• Whole of community approach •• Development of a culture of sustainability •• Reducing our resource consumption and everyday impacts Strengthen the skills and abilities of members to take action and collaborate to develop their own community 29 Business model Whatâ€™s the underlying cost/revenue concept? It is important for the Ballarat Co-Lab to become financially independent as soon as possible. This respects the contribution of Council and forms a good working example for the membership and their own projects. We can identify that the core costs of the Ballarat Co-Lab are the cost of the space itself (rent, electricity, maintenance, etc) and the staffing of the space (hosting, admin and communication). Our model is to balance these costs plus a contingency margin with the core revenue (+CPI). In simple terms the main revenue stream is the fees paid by the members (space membership) and as per other coworking spaces that we know there is an opportunity to use the space for events (ticketed) that add value to the membership, or the space could be hired out on a commercial basis. In this respect our initial modelling shows that an 85% cost recovery from memberships equates to $94/week per person if we had 50 full-time members. (This is our expected capacity of a 200sqm space such that we are imagining). This price point seems realistic.Further as we break this down further to flexible membership types there is an opportunity to recover more than 85% share. $120k Venue + $288k Staff $120k $48k Contingency 20% here studio Events (Tickets etc.) In contrast revenue generated from event tickets and space hire is harder to model and assure (especially given that we donâ€™t yet have a space and there are many cheap and empty alternative spaces in Ballarat). This part of our model is mostly aspirational. 15% represents about $830 per week profit. Costs associated with this activity would fluctuate depending on the event and therefore are considered to be intrinsic costs. As this is an operating costrevenue model, this leaves a question about capital financing. Some of the opportunities for this are explained later. $288k Space Membership Space Hire 5% 85% 10% Partnerships Capital Finance 30 Revenue & cost streams What are our basic modelling assumptions? Revenue streams Cost streams Total Revenue 288,000 Total Costs 288,000 Core Revenue % Core Costs Memberships 85% Venue 120,000 Event space hire 10% Staff 120,000 Event tickets 5% Contingency 20% TOTAL 100% Venue Costs Non-Core Revenue Rent 60,000 Council Startup Funding Outgoings (rates etc) 20,000 Sub-businesses Maintenance 20,000 Grants Utilities / Other 20,000 Investors Sponsors Staff Costs 120,000 Number of members 120 Sundries 10,000 Member types % Capital Costs Individual 60% Property 1,500,000 not applicable to a rent model Organisational 40% Renovation 400,000 TOTAL 100% Fitout 200,000 Depreciation years 10 Start-up staff 200,000 Membership breakdown % of people days Resident 5% 5 Full time 15% 5 Part time 40% 2 Casual 20% 1 Club 20% 0.25 TOTAL 100% here studio Staff ASSUMPTIONS Area 200 ARCHITECTURAL DECISION Member Capacity/ day 50 ARCHITECTURAL DECISION 31 Revenue scenarios What could membership cost? What would be the mix of membership types? As discussed previously, the membership are tiered from resident/full-time members to part-time casual members, and club members who have access to the online network but not the space. The price points have been modelled based on research of other coworking spaces, as well as value for money. For example, club membership is one third of a casual membership, while a casual membership costs just more than half of part-time, and so on. In essence, â€œthe more you use the space and contribute, the less you payâ€?. In this modelling, the club members have been modelled as an extra add-on rather than a core revenue stream. Based on our experience and understanding the flow of members in other coworking spaces, for a 200m2 we have tried to model a balance of 50 members using the space at any one time. To achieve this there are a number of different ways of mixing the different levels of membership. There are advantages and disadvantages to different take-up rates, as this impacts on the diversity of the membership and of balancing emptiness/overcrowding in the space. Model 1a shows that at 80% capacity with the breakdown of membership types and prices as listed, it is feasible to achieve the revenue required to break-even. Model 4b shows a different breakdown of the number of each membership type and lower prices generally. The full scenarios are located in the appendix and can be read as a matrix where each row looks at different numbers of each membership type, while in each column the prices are adjusted lower or higher. We are yet to develop the membership pricing further so that we can offer discounts for not-for-profits, concession, youth and other members that we would like to encourage in our community but who may not have the capacity to pay the full amounts. There is also potential for sponsored memberships through the University for students or grants through state and local governments and/or philanthropic organisations. We would like to encourage giving back to the community through membership discounts. Model 1a $305,760 $60,960 consider more club encourages mix manageable number of members ideal mix balance here studio 125% 120 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 6 $120 $520 $6,240 $37,440 $44,928 $29,952 $18,720 Full-time 18 $100 $433 $5,200 $93,600 $112,320 $74,880 $46,800 Part-time 48 $50 $217 $2,600 $124,800 $149,760 $99,840 $62,400 Casual 24 $30 $130 $1,560 $37,440 $44,928 $29,952 $18,720 Club 24 $10 $43 $520 $12,480 $14,976 $9,984 $6,240 49.2 members/ day $305,760 $366,912 $244,608 $152,880 $60,960 $122,112 -$192 Model 4b $270,400 $25,600 -$91,920 lower price balance 110% 210 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 5 Full-time 5 $100 $433 $5,200 $26,000 $31,200 $20,800 $13,000 $90 $390 $4,680 $23,400 $28,080 $18,720 $11,700 Part-time 50 $40 $173 $2,080 $104,000 $124,800 $83,200 $52,000 Casual 50 $25 $108 $1,300 $65,000 $78,000 $52,000 $32,500 $10 $43 $520 $52,000 $62,400 $41,600 $26,000 $270,400 $324,480 $216,320 $135,200 $25,600 -$28,480 -$109,600 Club 100 45 5 32 members/ day $79,680 Cost scenarios What should we budget for staff costs? Based on this we arrived at a figure of $120,000 for staff costs. To test the feasibility of this, we developed many different scenario models. These can be read as a matrix (refer appendix), each row looked at a different base salary, while each column adjusted the number of days or number of staff (skeleton to excess hours). The assumptions made and the numbers that have been changed for each scenario model are highlighted in blue. Here we show the preferred scenario (model 1a) and two other models - one (model 3a) which shows what would happen if the number of staff members was decreased (skeleton staff), and the other (model 6a) which shows a skeleton staff with their working days increased. The study shows that there are a number of viable ways to budget for different staff scenarios. The scenarios allow us to be nimble in our decision-making as we are able to better understand the impacts of different arrangements which may be implemented depending on the phase of the operations (start-up, expansion, etc) and/or the circumstances (need to create new systems, lull in membership numbers, increased number of events etc), In the start-up phase there is a need to discuss and determine whether or not the base salaries are reasonable for the level of skill and commitment required for the project. Three salary options have been modelled at this stage. Model 1a $115,000 $5,000 base balance 96% Salary $50,000 Days/week Total Weekly Monthly Manager 2 $20,000 $385 $1,667 Business Development 2 $20,000 $385 $1,667 Host 5 $50,000 $962 $4,167 Events Coordinator 2 $20,000 $385 $1,667 0.5 $5,000 $96 $417 $115,000 $2,212 $9,583 balance $5,000 $96 $417 Model 3a $65,000 Maintenance $55,000 skeleton staff balance 54% Salary $50,000 Days/week Total Weekly Monthly Manager 2 Business Development 0 $20,000 $385 $1,667 $0 $0 $0 Host 4 Events Coordinator 0 $40,000 $769 $3,333 $0 $0 $0 $5,000 $96 $417 $65,000 $1,250 $5,417 balance $55,000 $1,058 $4,583 Model 6a $130,000 Maintenance 0.5 -$10,000 skeleton staff + excess days balance 108% Salary $50,000 Manager Days/week Total $40,000 Business Development 4 Host 0 Events Coordinator 8 Maintenance 0 1 balance Weekly Monthly $769 $3,333 $0 $0 $0 $80,000 $1,538 $6,667 $0 $0 $0 $10,000 $192 $833 $130,000 $2,500 $10,833 -$10,000 -$192 -$833 33 here studio The scenarios below were developed based on a requirement for the business model to reflect a similar cost in staff costs as the venue costs, and to break-even with the revenue (made up of 85% memberships, 5% event tickets and 10% space hire). Profit and Heading text loss scenarios What is our break even point? As a further test of the business model, the following is a profit and loss over 5 years of operation. It expands the costs more specifically to change over time - based on similar enterprises of this size. To add to this, it considers measured growth of the core revenue over time starting at lower rates of take-up. Two scenarios are offered: •• an optimistic start with slow growth 80% then 85%, 90% and 110% •• a pessimistic start with moderate growth 60% then 70%, 80% and 90% here studio The revenue model ($305k) is based on the membership scenarios tested (~120 members) and was chosen because of its likeness to other co-working membership mixes, where the majority of members are using the space on a part time basis. To note, the low assumption for event space and ticket revenue provides scope for significant expansion depending on the property. Using the staff cost scenarios we chose a staffing model ($115k) that would cater best for the membership mix based on our own experience. A slight increase of staffing over the years has been incorporated, although there is scope for a reduction once systems and processes are developed and implemented. The staff scenario modelling allows us to predict this with some confidence. As well as decreasing the cost of staff, other large costs can be actively monitored allowing us to find ways to improve resource efficiency, such as electricity, marketing, cleaning, and equipment replacements (depreciation). Rental costs are assumed to be covered by council in the first 3 years. The more pessimistic start breaks even at the end of the third year (even after council funding ceases). Year 1 optimistic pessimistic INCOME 100% 80% 60% Memberships $305,000 $244,000 $183,000 Council funding $60,000 $60,000 $60,000 Other (Revenue producing items) $5,000 $4,000 $3,000 Gross Income $370,000 $308,000 $246,000 EXPENSES Accounting $2,500 Amenities - daily $5,000 Bank Fees $500 Board interface $1,000 Cleaning & Rubbish Removal $8,000 Computer Consulting $5,000 Computer Repairs $2,000 Computer Software $2,000 Depreciation - Equipment $20,000 Debt Collection $200 Filing - ASIC $230 Heat Light & Power $30,000 Hire $500 Insurance $6,000 Laundry $1,000 Legal $500 Magazines / Journals / Periodicals $2,500 Marketing & Advertising $10,000 Motor Vehicle expenses $500 Permits / Licences $200 Petty Cash $1,000 Postage $500 Printing & Stationery $250 Rates & Taxes $5,000 Repairs & Maintenance $1,000 Rental (inc outgoings) $60,000 Security $1,000 Subscriptions / Memberships $500 Superannuation $10,638 Travel $500 Telephone / Internet $3,840 Wages $115,000 Workcover $1,725 Total Expenses $298,583 $298,583 $298,583 Net profit $71,418 $9,418 -$52,583 Balance $71,418 $9,418 -$52,583 Heading text Year 2 Year 3 optimstic pessimistic Year 4 optimistic pessimistic Year 5 optimistic pessimistic 70% 90% 80% 110% 90% $267,750 $220,500 $325,000 $292,500 $260,000 $340,000 $374,000 $306,000 $355,000 $337,250 95% $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $5,500 $4,675 $3,850 $6,000 $5,400 $4,800 $6,500 $7,150 $5,850 $6,500 $6,175 $380,500 $332,425 $284,350 $391,000 $357,900 $324,800 $406,500 $441,150 $371,850 $421,500 $403,425 $2,575 $2,652 $2,732 $2,814 $5,200 $5,400 $5,700 $6,000 $500 $500 $500 $500 $1,000 $1,000 $1,000 $1,000 $8,500 $9,000 $9,500 $10,000 $5,500 $5,500 $6,000 $6,000 $2,200 $2,400 $2,600 $2,800 $2,000 $2,000 $2,000 $2,000 $20,000 $20,000 $20,000 $20,000 $200 $200 $200 $200 $230 $230 $230 $230 $31,500 $33,000 $34,500 $36,000 $500 $500 $500 $500 $6,500 $7,000 $7,500 $8,000 $1,000 $1,000 $1,000 $1,000 $500 $500 $500 $500 $2,500 $2,500 $2,500 $2,500 $8,500 $7,000 $5,000 $5,000 $550 $550 $600 $600 $220 $240 $260 $280 $1,000 $1,000 $1,000 $1,000 $550 $550 $600 $600 $300 $300 $350 $350 $5,300 $5,600 $6,000 $6,000 $1,050 $1,100 $1,150 $1,200 $60,000 $60,000 $63,000 $65,000 $1,050 $1,100 $1,150 $1,200 $550 $600 $650 $700 $10,915 $11,193 $11,470 $11,748 $500 $500 $500 $500 $4,000 $4,200 $4,400 $4,600 $118,000 $121,000 $124,000 $127,000 $1,770 $1,815 $1,860 $1,905 $304,660 $304,660 $304,660 $310,130 $310,130 $310,130 $318,952 $318,952 $318,952 $327,726 $75,840 $27,765 -$20,310 $80,870 $47,770 $14,670 $87,548 $122,198 $52,898 $93,774 $147,258 $37,183 -$72,893 $228,128 $84,953 -$58,222 $315,676 $207,151 -$5,324 $409,450 here studio 85% $315,000 $327,726 35 Site selection criteria What kind of site are we looking for? In what area? We have recently begun to inspect properties with Anthony Schreenan from the City of Ballarat. This process has informed our site selection criteria, which has also been shared with participants at Workshop 2.3 (refer to minutes in appendix) and developed further to identify key factors for the location’s success. Site selection criteria •• •• •• •• •• •• •• •• •• •• •• Iconic building with heritage value Location – proximity to station/CBD Large open space Flexibility Visibility/accessibility from street level Existing kitchen space or ability to fit a kitchen Large operable windows/natural light Electrical capacity for multiple power points Universal access Opportunity for other businesses to co-locate Potential cafe on site in future The map below indicates the area of the Ballarat CBD that is under consideration when selecting sites, the entire area is within the National Broadband Network roll-out area (refer to appendix for further details). here studio Site selection area Refer to appendix for further site details 36 Available sites comparison Which sites are being considered? Below is preliminary comparison of key properties within the site selection area. While there are a number of factors to consider, including partnership opportunties, future expansion and add-on businesses (ie cafe) and possibility of purchase in the future, this comparison provides a summary of considerations made in Stage 2. These will be further explored in the next stage, our selection is learning towards properties of heritage value requiring moderate works. We would opt to retro-fit and upgrade existing buildlings now to save costs in the future and to provide a best practice example in a heritage context. For Lease Ballarat 30 Armstrong Street CBD Shop and Residence View By appointment Rate $25,000 per annum + GST + outgoings Online www.colliers.com.au/500640075 30 Armstrong St North • Retail area of 72 square metres (approx) • 2 bedroom residence upstairs • Rear yard and access • Rear garage and car park • Suit office or retail 72 sqm $25,000 + GST per annum Prof photo of Operator Travis Hurst 0423 388 932 Ballarat 03 5327 0700 Business 1 Zone (B1Z) Heritage Overlay (HO171) External Paint Controls apply 203 Stuart St formerly Portico Restaurant 121 Lydiard St North formerly The Provincial Hotel 325 sqm $69,000 + GST per annum ~2000 sqm (three levels) for sale Business 1 Zone (B1Z) Heritage Overlay (HO62) External Paint Controls apply Business 1 Zone (B1Z) Heritage Overlay (HO171) included on Victorian Heritage Register Design Development Overlay www.colliers.com.au Ground floor shopfront Two storeys Will require sound attenuation For Lease Ballarat 112 Lydiard Street North Retail or Offices View By appointment Rate $30,000 per annum + GST + outgoings Online www.colliers.com.au/500511755 112 Lydiard St North former Habitat • Building of 205 square metres (approx) • Suspended ceiling • Large, open area • Available now Prof photo of Operator David Wright 0418 518 353 205 sqm $30,000 + GST per annum Ballarat 03 5327 0700 www.colliers.com.au Business 1 Zone (B1Z) Heritage Overlay (HO171) External Paint Controls apply Lydiard St shopfront Proximity to train station here studio Will require extensive fit-out works For Lease Ballarat 34a Grainery Lane Hidden Treasure – Grainery Lane • • • View By appointment Rate $100,000pa + GST Online www.colliers.com.au/500449463 34a Grainery Lane Fabulous modern office fitout Fully air-conditioned Wheelchair accessible • Floor area of 377.5 square metres (approx) • A creative space for an enterprising business Prof photo of Operator Travis Hurst 14 Camp St currently B1 Gallery 377.5 sqm $100,000 + GST per annum 362 sqm $26,000+ GST per annum Business 1 Zone (B1Z) Heritage Overlay (HO171) Business 1 Zone (B1Z) Heritage Overlay (HO171) External Paint Controls apply Design Development Overlay 0423 688 932 Ballarat 03 5327 0700 www.colliers.com.au Newly refurbished, however doesn’t suit functional or aesthetic requirements of the Ballarat Co-Lab Difficult access, beautiful windows/floors and iconic facade but already in an established area 37 Precedent studies Hub Melbourne (600sqm) Hub Melbourne is a coworking space that was established in 2010 in Donkey Wheel House, a heritage building located in Melbourne’s CBD. The space includes two open plan coworking spaces with flexible and permanent desks, informal meeting areas, and a high-end kitchen. •• part of a global network of coworking spaces called “Impact Hub” •• owned by Hub Australia Pty Ltd •• open to members 24/7 •• has many partner organisations Kitchen Toilets (14.25sqm) (22.8sqm) 5% 8% Meeting (28.5sqm) 10% Circulation (34.2sqm) 50% 12% Desk space (142.5sqm) 15% Social space (42.75sqm) Fixed desk space (121.1sqm) 15% Hot Desk Space (21.4sqm) Good number of plants 85% Big, open spaces High level of natural light here studio Hub Melbourne - 600sqm Social 38 Fixed Desk Hot Desk Space Toilets Hot Desk Space Meeting Toilets Meeting Hot Desk Space Fixed Fixed Desk Desk 0m 1 2 5 Hot Desk Space Social 10 Small, integrated social spaces Separate private areas Kitchen + Dining Precedent studies York Butter Factory (577sqm) The York Butter Factory is a coworking space for Melbourne’s high potential digital media and web 2.0 entrepreneurs, established in 2011 inside an 1850s heritage-listed space. The 577m2 space is across two floors and has an open plan coworking space, informal collaborative area, meeting rooms, and industrial fridge and room for up to 60 entrepreneurs. •• co-founded by the partners of Adventure Capital, who run their venture capital fund out of the space •• supported by Amazon Web Services, Microsoft Bizspark, zendesk, Enterprise Melbourne and Startup AUS Kitchen Toilets (28.9sqm) (46.2sqm) 5% 8% Meeting (98.1sqm) 40% 17% 15% Circulation (86.5sqm) Formal reception space 15% Social space (86.5sqm) 5% 95% Warm welcome and atmosphere Fixed desk space (219.3sqm) Basement Ground Social Meeting Meeting here studio York Butter Factory - 577sqm Hot desk space (11.5sqm) Desk space (230.8sqm) Toilets Social Space Fixed Desk Kitchen Fixed Desk Social Formal Reception Fixed Desk 0m 1 2 5 Low ceiling heights 10 Fixed Desk Lack of plants and greenery Low levels of natural light 39 Precedent studies Inspire 9 (600sqm) A community to support start-ups, freelancers and creatives in their growth. The space is located in one of Richmond’s oldest buildings: the decommissioned Australian Knitting Mill which was established in 1910. Members and residents work individually and collaboratively in an open-plan space, including break-out spaces for table tennis, pool and foosball, meeting rooms, private rooms, and a kitchen. •• Inspire9 is a Pty Ltd company •• residents have 24/7 acess to the space •• sponsored by Optus Singtel through the Optus Innov8 program Kitchen Toilets (42sqm) (42sqm) 7% 7% Meeting (60sqm) 10% Circulation (120sqm) 40% Desk space (240sqm) 20% 16% Social space (96sqm) Hotdesk space (48sqm) 40% Inspire 9 - 600sqm 60%Fixed desk space (192sqm) Social Space Airy, spacious feel here studio Hot Desk Space Large, integrated social spaces Social Space Fixed Desk Space Meeting High level of natural light Hot Desk Space Fixed Desk Space 0m 1 2 5 10 Toilets Kitchen + Dining Separate private areas Large, open plan space 40 Warm and welcoming atmosphere Precedent studies Electron Workshop (285sqm) Spanning 285m2 the Electron Workshop is an open plan coworking space built for digital creatives. In addition to flexible and permanent desks, they also run regular events out of the space, providing an area for learning and collaboration across all disciplines. Featuring a full kitchen, foosball table, shower, toilets, air conditioning, natural gas heating, bike racks and 100% green energy (currently wind power). •• is a Arktisma Pty Ltd project •• recipient of City of Melbourne Enterprise Melbourne small business start-up grant, funds use for capital expenditure for fit-out and IT equipment and, website development Kitchen (60sqm) Toilets (42sqm) Meeting (120sqm) 10% 7% 20% 13% Electron Workshop - 285sqm 45% Circulation (78sqm) Fixed desk space (90sqm) Desk space (270sqm) 5% Social space (30sqm) 33% 66% Hot desk space (180sqm) Lack of plants and greenery Hot Desk Space Fixed Desk Small, open plan space Fixed Desk Space Social Space Meeting Low-moderate level of natural light Kitchen + Dining Social Space Toilets 0m 1 2 5 10 Separate and integrated social spaces 41 here studio Fixed Desk Space Precedent summary Comparison of coworking spaces visited in Melbourne Space/location Hub Melbourne Level 3, 673 Bourke St, Melbourne VIC 3000 York Butter Factory 62-66 King St, Melbourne VIC 3000 Inspire 9 here studio Level 1, 41 Stewart St, Richmond VIC 3121 Electron Workshop 31 Arden St, North Melbourne VIC 3051 42 Key offering Pricing Heritage building CBD location adjacent V/Line train Open plan coworking spaces Flexible and Permanent desks High-end kitchen Formal and informal meeting areas Private spaces Approximately 600sqm Drop In $50/day Digital/web entrepreneurs Heritage building CBD location 2 floors Open plan coworking spaces Meeting rooms Industrial fridge 577sqm After Hours/Weekend $250/month Community of start-ups/freelancers Richmond location Directly next to train station Old Australian Knitting Mill Open plan coworking space Break-out social spaces Meeting rooms Large kitchen Private spaces approximately 600 sqm Drop In $40/day North Melbourne warehouse location Open plan coworking space Flexible and permanent desks Regular events Small kitchen Shower 100% green energy (wind) Natural gas heating Air conditioning 285sqm Drop In $35/day Casual (1 day/week) $200/month Frequent (4 days/week) $400/month Full-time $600/month Part time (1 day/week) $100/month Part time (2 days/week) $200/month Part time (3 days/week) $300/month Part time (4 days/week) $400/month Full time ($600/month) Full time $550/month Flex 1 (1 day/week) $120/month Flex 2 (2 days/week) $230/month Flex 3 (3 days/week) $340/month Flex full time (no desk) $440/month Full time (with desk) $510/month Capital model How do we grow in the future? Over the past two months our many stakeholder conversations have helped us to form a relatively clear medium-term vision for the financing of and role of profits to this project. Our proposed cost/revenue model constructs the likelihood that the operations of the project will break even before council funding (startup, fitout and 3 years rent), and start to be profitable thereafter. The question we arrive at then, is what next? It is useful to diagram this out. There are some identified risks in relationship to rental tenure, and a relatively low turnover â€˜break-evenâ€™ model that relies on external funding to get started. Subsequently we have started to develop (in some detail already) thinking around future capital contribution sources: to mitigate the risks with property tenure, to pool a buffer for future ups-anddowns, and potentially to unlock the potential for expansion. City of Ballarat Seed Funding Develop diversity Operations Year 3 Future Investment Better operations Year 10 Profits Own own space Profit - Does the Investor make money? - Does community own anything? - Do we expand? - Do we do more good stuff? Better better operations here studio Our proposal has been built on a series of different assumptions including the quantum of council funding (start-up, fitout and 3 years rent), a space of about 200m2 and a relatively ambitious membership uptake programme. These assumptions are balanced by opportunities for further revenue (events, capacity margins, seedling projects) and savings (various staffing models, inkind and volunteer contributions). Year 20 Capital Operations Thinking in this way about capital growth encouraged us to realise the importance of a board and choosing particular incorporation models, potential partnerships, and indeed a culture of evaluation that would allow us to make sophisticated decisions between capital investments on the horizon and how the Ballarat Colab could do better and better operations. 43 44 here studio here studio Stage 3 Start-up Phase 45 Start-up phase timeline September 2013 - July 2014 The Start-up phase of the Ballarat Co-Lab project is expected to take approximately 10-11 months, with a planned opening in April 2014, and the phase continuing to the end of the first quarter of operations. The first main focus will be to assess potential sites further, and then to select and begin negotiations to secure a lease for the preferred site for the Ballarat Co-Lab. A participatory design process to develop the operational systems and the design of the space will be carried out and members of the community will be encourage to participate. A Pop-in Studio will be established to assist with this process by providing Ballarat Co-Lab with a physical presence prior to the opening and to provide potential members with an understanding of the coworking concept through Open Days. START-UP 2013 FOCUS Core Team Feasibility Study + Feedback here studio Participatory Design Builder? Site Lease Selection Negotiations Open Day Open Day (off site) MILESTONES Stage 2 Report 46 Dec Pop-in Stud The construction will commence in the new year with volunteers starting over the summer period and more technical works to be undertaken by a registered builder from February onwards. The opening will be marked with a celebration party for the founding members and partners. Nov Stage 3 Memberships and partnerships will be developed and secured gradually through Open Days, marketing activities, and the partcipatory design/build process. The board will be established a few months prior to opening, and staff training will also commence around this time and will continue into the transition period of the first quarter of operations. Oct Sept Secure Lease 2014 Jan Mar Feb Apr May Jul Jun Easter 18-21 Summer dio Training Staff Operations Space Builder ia Marketing/Soc l Media 80% Membership Event Event here studio Member Take-up OPENING Volunteer Builders Partners Board Establishment Board Established Opening + Party Stage 3 Review 47 Start-up core team roles Who will make this happen? Over the weeks spent in the preparation of the Feasibility Study, we have developed a solid and responsive working method of clustering around job roles as needed and required. In the ongoing development of the team, and soon the new Ballarat Co-Lab Inc, the reinforcement and consistency of purpose will be important to maintain with new team members and volunteers. The collaborative team-based working environment will rely on a mixture of role definition and clustering to deliver the project. Project Manager 2â€“4 days per week Design Leader 1-6 days per week Oversee and manage project and people. Negotiate with government, business and community. Institute the governance, organisational and corporate models and recruit Board of Management. Oversee financial management with Design Leader Manage construction of space, through design workshops, builder negotiation, insurance, leasing arrangements, financial management with Project Manager Community Connections 2-3 days per week Working with volunteers on build of space, develop membership processes and base and build connections and partnerships between business, government and community. Also encourage and support working groups from the community and encourage and start to build a culture of sharing. Through the building of a volunteer working groups, also develop the reward / barter / swap / share system as a base for the future. here studio Marketing 2-4 days per week Manage the message of the development of the space through all media. Work on message campaigns, all marketing collateral. Build relationships with key publishing organisations on a regional, state, national and international level. Event and Space Development 1-3 days per week Manage key events, like Open Days, with a focus on long term planning of overall design and potential of â€˜events/ activitiesâ€™ space as revenue generators. Manage space development, through preparation for community build and participatory design, with follow up of ongoing research and production. Intern Roles 1-2 days per week Working with the core team and community in assisting, learning, and at times, leading key duties to deliver the development of the space design, marketing and events. Volunteers 2-3 days per week Working with the core team and community in assisting, learning, and at times, leading key duties to deliver the development of the space design, marketing and events. Roles and Assumptions We expect that all roles will contribute volunteer hours to complete the participatory design and build. The members of the stage 2 core team who will be continuing into the start-up phase will be: Ammon Beyerle, Michelle Emma James, Margaret Dobson, Samuel Brown, and Samuel Cooney. The number of days per week for each of the roles will change depending on the focus and tasks of the particular phase of the start-up. 48 Operational staff roles Who will run the space once it is open? Manager 2 days per week Co-Lab Host 5 days per week To coordinate and oversee the work plans of the Host, Events Coordinator, Business Development, IT Coordinator and with direct connection to and support for the Board of Management. Encouraging meaningful collaboration and softbrokering between residents in the Co-lab through induction and information, and to connect to the wider community though programs, volunteers, interns and maintaining and growing partnerships. •• Oversee the day to day running of the CoLab in relation to service to the members and delivery of membership benefits •• Manage the staff of the Co-Lab to deliver the service and ongoing development for members, the community and partnerships •• Coordinate with Board to deliver reporting and promotional and development of the Co-Lab to the wider community of Ballarat •• Manage and develop partnerships with Government, Business and Community for the Financial stability of the Co-Lab •• Induction and registration of all residents, part time, casual and full time to the Ballarat Co-Lab, membership services •• Targeting community connections to build arts and community cultural development (CCD) projects •• Coordinate volunteers and interns to build community capacity and networking •• Identifying partnerships with key community organisations to support CCD projects •• Assist in planning and delivery of events Events Coordinator 2 days per week Business Development Manager 2 days per week To promote the Co-Lab as a venue, and its residents and their businesses, through social and cultural activities, while connecting to the arts, business and larger community of Ballarat. To promote the growth of memberships, partnerships and long term seeding of community connections and interaction with the Co-Lab through financial sponsorship, capital funding and management. •• Promote and build the venue of the Co-Lab into a sustainable model of activity •• Promote the residents and their business to each other and to the larger community •• Building and responding to cultural activities to bring the community of Co-Lab together •• Production of events and maintenance of associated equipment and technology NOTE: This is the seeding of the position, with more hours and volunteer coordination for delivery of events. here studio The following descriptions are for the staff roles that will be required once the Ballarat Co-Lab has opened. All staff will be encouraging an inspiring and supportive environment for the members and visitors, and will require effective problem solving and interpersonal communication skills. All staff will be working independently and as part of a team. •• Planning and delivery of strategy to grow memberships exponentially over time •• Development and maintenance of partnerships with Government, business and community •• Sourcing funding through sponsorship and partnerships with Government, business and individuals •• Financial planning and monitoring of development of income generation activities 49 Stage 4 80% Partners Board MILESTONES Birthday Party Marketing/Social Media Membership 85% Regular Participatory Events Event Staff Membership Year 1 50 Year 2 OPENING 2015 2016 Annual impact report Membership +5/-5 people/month 90% Seedlings Prototype Birthday Party Year 3 2014 2015 Annual impact report 110% Membership Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov here studio Operational timeline Stage 4 (Year 1 - Year 3) Feb Mar Seedlings started Population Ballarat >150,000 Jan Apr Jun Staff May Jul Board Partners Stage 4 review/impact report Oct Nov Dec Jan 2017 2018 Growth of new Ballarat industries Sep Feb Mar More competition from unknown competition Builder May Jun Jul Aug Annual impact report Fresh growth? Membership Oct Nov 100-110% Sep Stage 5 review/impact report New business model in place New membership capacity? Funding community cultural development Apr Organisational development plan Volunteer builders Renewed focus for seedlings on specific social impacts, returns etc Aug Marketing/social media here studio Cease Council funding MILESTONES Membership Year 4 110% Look to new building / Expansion needs Dec Year 5 2016 2017 Expansion timeline Stage 5 (Year 4 onwards) 51 Pop-in studio Come in and see what coworking is all about As a part of the process, we endeavor to open a temporary ‘pop-in’ studio from November 2013. Hopefully this Pop-in Studio will be run from the venue in which the Ballarat Co-Lab will be located, however if not, an appropriate venue will be selected. The Pop-in Studio will be a place that the core start-up team can meet and work from, fitted with good wireless internet, coffee and amenities. We will invite the broader community to join us 2 days a week to work so that they can further understand the benefits, nature and format of a coworking space. In a sense they can ‘try before they buy’, as well as participate in the start-up process. The Pop-in Studio will also be used as an event space for events specified in the planned promotion timeline. Benefits - - - - - Workspace for core team Place to meet key stakeholders Access to internet Informs community about coworking Opportunity to test things like wifi, layouts, furniture, etc Objectives here studio - - - - 52 Secure local memberships Grow social media community Increase efficiency of work done during build phase Start building a physical presence for the Ballarat Co-Lab Costs Revenue Non transferable costs Overheads (monthly) Revenue Paint $500 Labour $1000 Locks $200 Materials $1000 Signage $200 Internet $100 Office $50 expenses Electricity $200 Rent $480 Misc (20%) $166 Sales $2900 Total Transferable costs Paint To make the place feel a bit more like home Tables $1000 Chairs $500 Computer $300 peripherals Power cables $100 Printer $200 Appliances $1500 Total $966 Labour Potential small items that require a tradesperson Locks To get the locks changed for security reasons with new keys $3600 Cost of goods (monthly) Materials Materials required for minor repairs on the premises Baked goods! $200 Cold drinks $400 Sweets $300 Signage To identify and build the Co-Lab presence Total Tables Movable work tables $900 Pop-in studio profit/loss Chairs Mixture of work and casual chairs Computer peripherals Cables, Apple TV, Speakers, etc Power cables Surge protected power boards Printer Basic printing Appliances Microwave, small fridge, small TV, whiteboard Internet Access to NBN? Office expenses Papers, pens, stationery Contigency To all for unforeseen items Sales Sell items for 1.5 times the amount that we purchased them in for Month 1 Month 2 Month 3 Month 4 Total Setup Set up Equipment $6500 $2900 $3600 $6500 $0 $0 $0 Ongoing Cost of goods Other $1896 $900 $996 $1896 $1896 $1896 $1896 Revenue $1350 $1350 $1350 $1350 $1350 -$7046 -$7046 -$546 -$7592 -$546 -$8138 -$546 -$8684 Profit Balance here studio Total $1350 53 Capital requirements for fit-out How much will the fit-out cost? In the absence of a selected site, this provides a starting summary of fit-out -costs for discussion in the start-up phase. The low cost refers to our previous experience in managing very small budgets on community projects, using mostly volunteer and cost-price labour and gifted/recycled materials. We see some opportunity to do the same in Ballarat, especially to activate under-employed young people currently in difficulty with the TAFE system. The standard cost refers to an expected cost using a conventional building method - ie commercial builder. We will need to balance these considerations against the selected site as well as the overall project budget and timeline. here studio assume <200m2 54 LOW STANDARD Electrical extension cords etc $5,000 $7,000 Audio $2,000 $3,000 Projector/screens $2,000 $6,000 AV installation $1,000 $1,500 Lighting $4,000 $9,000 Meeting room partitions $3,000 $20,000 Meeting room furniture $3,000 $6,000 Coworking space furniture $18,000 $38,000 Wireless network $3,000 $4,500 Printer/photocopier $2,500 $4,000 Computers for staff (x2) $4,000 $7,000 ICT Internet Monitoring $2,000 $3,000 ICT Setup and installation $1,000 $1,500 Kitchen appliances $2,500 $7,000 Card swipe security $3,000 $4,000 Signage $1,000 $3,000 Soundproofing $4,000 $7,000 Painting $6,000 $12,000 Plants $4,500 $9,000 Floor coverings $4,000 $6,000 Storage $2,000 $5,000 Additional Heating / Cooling $4,000 $6,000 20% contingency $16,300 $33,900 Sub-total $97,800 $203,400 Full kitchen $15,000 $40,000 Participatory design and community build Build your own coworking space There can also be financial benefits in in some aspects of the construction project which do not require technical building expertise (such as sanding, painting, furniture prototyping) by reducing costs as described in the diagram below. Rewards and recognition for such volunteer contributions are critical, and would need to be decided and communicated prior to initiating the community build process. commercial build community build profit not-for-profit volunteer/low-cost labour wages materials materials *discounted/ second-hand materials The images above show the participatory design and build process led by Ammon and Michelle from Here Studio during the start-up phase of Hub Melbourne. The project was awarded a High Commendation in Workplace Design at the Australian Interior Design Awards in 2012. here studio Tapping into the resources that already exist in the local community, the design and build process affords many capacity-building opportunities for residents, creative enterprises, and community groups, as well as the project itself. As people and businesses are involved in the process of making their own place, the level of ownership and on-going engagement with the coworking space is significantly increased. With the right approach, the creation of a coworking space also presents an excellent opportunity for a community development platform. Preliminary sketches were tested through the construction of scale models on a make-day. The tables were to be designed to encourage flexibility and collaboration. A preliminary prototype was constructed by members of the community to be tested in the space, resulting in some changes to the overall shape of the tables. Finally members learnt how to use a jigsaw and sanders to construct the table tops to be mounted on recycled chair bases. 55 Start-up promotional activities How to sell the concept in Ballarat More and more people are saying that it is time for a coworking space to be established in Ballarat. Yet our current mailing list is still relatively low and for a project like this to be sustainable the pool of audience needs to be significantly larger. Over the next 9 months, building a larger support base from which we can convert memberships will require diverse activities, multiple media types and a variety of engagements. What we have done in the past and are starting to already do with the Ballarat Co-lab is to integrate these promotional activities to the physical development and placemaking of the Co-Lab space and brand. Printed Material Campaign 1 - We Are Opening! Our first printed material campaign of 1000 flyers and 250 posters will be strategically distributed around Ballarat in cafes, on billboards, in Federation University, to commuters to Melbourne and through the current networks and ambassadors, and in local newspapers, blogs, radio and social media. Meet & Greet - We Are Opening! 5 October 2013 The Meet and Greet will be an event at a venue in the central business district in Ballarat. Invitations will be sent to the current ambassadors as a gathering to thank those who have helped us on the journey so far. Informal but information packed, the event will outline the timeline to opening, participatory design and build, the opportunities in becoming a member, benefits for the ambassadors and how to widen the information about Co-Lab across the region. It will also be advertised in local newspapers, radio and social media. Objective To secure 10 members Objectives To engage the wider community and target a younger market. To introduce core team to future Co-Lab Members To celebrate move into stage 3. To grow our community To secure 10 more members Membership Campaign 1 - Looking for “Residents” here studio Through analysis and research of the larger and iconic businesses in the region and the gathering of marketing collateral, approaches will be made to secure individual and “resident” members in Ballarat. Presentations and relationships will begin and be part of the longer term strategy of building the brand of Co-Lab. Objective To secure 10 members / 5 “residents” Membership Campaign 2 - “Ballarat Coworking Day” This campaign will be specifically targeted to those working in Melbourne and living in Ballarat. This campaign will target the commuters and businesses in Melbourne, outlining the benefits and savings of having a weekly Ballarat Coworking Day. The campaign will be run in local and state newspapers, local and state radio, blogs, social media and print flyers. Design & Build – Working Bees As part of the participatory design and build, working bees will be held at least fortnightly starting mid November. Not only designing and building, the volunteers will also have the opportunity to help determine the space of the Ballarat Co-Lab, learn new skills in a social and fun working environment. 56 Objective To secure 20 members Objectives To engage the wider community and target a younger market. To introduce core team to future Co-Lab Members To grow our community To secure 10 more members Start-up event ideas What’s happening in and around the Ballarat Co-Lab? As the Ballarat Co-lab intends to be a cultural change project there is the potential for developing innovative marketing techniques such as guerrilla style stunts including flash mobs, harnessing the power of social media, and more creative mediums such as artworks and documentary film, and developing a series of events to build excitement and intrigue. In Melbourne the coworking movement came at a time when strong demand existed and there were organisations forming and testing ways of sharing studio spaces and creating diverse events. The first projects such as Hub Melbourne were effectively harvesting that buzz. Because there is nothing like this in Ballarat yet, the Co-Lab offers something new and innovative. There is a need to seed possibility and to let things develop in unknown ways. In addition to the events listed below, we could host show and tell nights, casual drinks, movie nights, mini conferences, spaces for hacker communities connected to the University of Ballarat, tech startup conversations, art shows. The possibilities are endless -- we will also encourage our members to dream up and plan their own events! The clothing exchange event encourages sharing and brings awareness to the idea of collaborative consumption. The event could feature speakers who have a vast knowledge in this emerging area of shared economy. There would be an opportunity for a Q&A session to start a strong culture of dialogue in the Ballarat Co-Lab community. A market would be set-up where paticipants can bring their clothes and swap them with those brought by other participants. Food and drink will be available for sale. Tickets to the event will cost $10. Pop-out coworking flashmob Cost: $50 per head Location: Various cafes on Sturt St The pop-out coworking flashmob is another way to engage with different people in Ballarat. With a group of approximately 20 people, we could go to many cafes, one after another and put on a choreographed routine based around coworking, using props like our laptops, whiteboards and butcher’s paper. We would purchase lunch and drinks for everyone involved from their $50 fee. From the event, we would hope to attract the attention of the community and media outlets. Train Wi-Fi Budget: $500 Location: Ballarat – Melbourne V/line train The train wifi activity could involve us seeking strong portable wifi hotspots to activate and use on the train. We would do this on the busy morning trains full of commuters and offer other passengers a chance to use the wifi. The key message is to illustrate the time wasted on the train. Ballarat Co-Lab collateral will be dispersed among the passengers partaking in the activity. Coworking Picnic Budget: $1000 Location: Grassy median strip along Sturt St The coworking picnic could be a daylong activity. A collaborative workspace would be created in the middle of Sturt St. We would hire a diesel generator to provide power for laptops, fridges etc, use non intrusive fencing such as plastic tape to create a space, utilise milk crates, bread baskets, tyres and other everyday objects as furniture and play quiet music throughout the day. Entry to the space would cost $5, and the aim is gain support from local business and have them working from the space that day. Collaborative Rock Show Budget: $1000 Location: Ballarat Co-Lab The collaborative rock show is a way to showcase the idea of collaboration to Ballarat’s music community. We could bring together a range of local musicians or bands who will have time to swap members and rehearse playing together on new tracks. The event would be advertised strongly in Ballarat via social media, print and local news outlets. We would hope to receive a temporary liquor license for the event and charge $10 per ticket. here studio Clothing exchange event Budget: $1500 Location: Ballarat Co-Lab Small Sparks Budget: $1000 Location: around Ballarat Small Sparks is an initiative to hand out small grants to 3-4 artists or neighbours for small urban renewal projects that can be conducted within a day. Applications would be sought and assessed, and the event will take place once permits are approved (if necessary). 57 Marketing strategy and timeline How and when will we market the Ballarat Co-Lab? Marketing activity Person responsible Cost ($) Social Media/Blog/Web Marketing and social media $75 p/w for page promotion Print Materials Marketing and social media $50 - $200 per campaign. Would work to budget Marketing and social media Cost of marketing Take up of editorial, interviews and pictorials in local person’s allocated time and surrounding area newspapers. Exposure in state per week and national newspapers. Local, state and national based radio. Local, state and national based TV Marketing and social media Depending on the scale of the event and support from partners and volunteers Print Media / Radio and TV – media releases Events Marketing activity Promotional strategy Promoted pages (Facebook), scheduled posts, high standard Social Media/Blog/Web photos and film and engaging posts, working to a monthly content plan of reach and need. Print Materials here studio Success indicator Communicate our brand via print. Direct viewers to social media, web and blogs. Advertise community events and special events. Displayed in shop windows, billboards and inside Co-Lab Format: posters and flyers. A continuous, informative and consistent following and online presence. 80% growth p/a (first year) 40% there after. Potential new Co-Lab members attend/take-up an offer or event specifically due to print “Where did you hear about us?” surveys conducted Were revenue is generated and we reach a mean 80% capacity at each event Expected business improvement Increase our online presence, inform the community of events, special events and milestones. Increase sales of memberships and an increase in venue hire. Increase exponential growth on all digital platforms. Develop brand recognition. Create a presence in the wider community. Communicate our brand and begin development of brand recognition. Inform the wider community of special Promotion to the wider community, in Ballarat and Print Media / Radio and events and milestones, for example, surrounding areas, to increase membership and TV – media releases opening, membership updates venue visitation. through media releases. A note on branding! We have yet to develop branding and this will be another key focus of the start-up phase. As per most coworking spaces around the world, we intend to operate as an independent coworking space (not part of a franchise) and can thus develop a brand that is unique to Ballarat and the transformation we aim to bring about. A website will need to be developed and social media platforms and current graphic design styles will need to be enhanced. As we begin to create a culture of social sharing, we would like the amount of content shared by the Co-Lab members to match the level of content being pushed by the brand. At this stage it is difficult to anticipate the growth of the coworking space in Ballarat, however given global trends there is a high likelihood that it will be very popular. Through being a leader in this space, we hope to establish a new market in the region for others to start similar projects. 58 Sep Oct Nov Print Media Campaign 1 Twitter Meet & Greet Membership Campaign 1 = Planned Event PPM = Posts per month Dec Working Bee Jan Membership Campaign 2 Working Bee 2014 Feb Working Bee PPM 30< 20-30 10-20 5-10 Print Media 2-5 Blog Facebook Vine Local News Type Image-Text Objective Gain Membership Grow Online Community Mar Apr May Jun Open Working Bee 1-2 Image-Text-Video Jul Aug Capacity Goal PPM 30< 20-30 10-20 5-10 2-5 1-2 Promote Services Grow Online Community Sep Oct Nov Dec Jan Feb 2015 PPM 30< 20-30 10-20 5-10 here studio 2-5 1-2 Marketing activity Review Monitoring methods Review outcomes Social Media/web/blog Weekly Facebook/Twitter insights, Assess numbers and online feedback page hits Print Materials Monthly Discuss and ask for feedback from Co-Lab members Assess effective and strategic placement Print Media / Radio / TV Media releases Monthly Measure all media hits in the print, radio and TV Assess quality and quantity of coverage and new avenues Events Monthly Measure attendances at events Assess fluctuations in attendances with the variety of events for future planning 59 Corporate structure timeline What entities take responsibility to run the Co-Lab? Capital Stage 1 Vision Activation City of Ballarat Jeff Pulford Anthony Schink Stage 2 Feasibility Study Stage 3 Start-up Phase Ballarat C Stage 4 Operations (Year 1-3) here studio Partners Stage 5 Expansion (Year 3-) Grow capital finance 60 Institutions Organisations Government ? ? Operations Many individuals and some organisations have been inspired to come together to start a coworking space and the City of Ballarat has begun to support these conversations through funding Stage 1 (vision activation) and Stage 2 (feasibility study) and considering the in-principle funding of Stage 3 (start-up) and rent for Stage 4 (first 3 years of operation). Co-Lab Inc. The first stages of the bottom up process have been less defined, yet increasing require structured entities to carry risk and reward. The City of Ballarat are keen to support for a co-working space to be established by a bottom-up process but do not want to run the Ballarat Co-Lab. Here Studio Pty Ltd has the know-how of setting up coworking spaces, has a strong connection to Ballarat and ethic of leading bottom-up processes, and is currently the only incorporated body capable of leading this project. Core Community Seedlings Board Governance Grow operations The intention is to have an incorporated association in place and a board before opening the space. A transition period from Here Studio Pty Ltd to Ballarat CoLab Inc would span from the end of the start-up phase (late 2013) to the end of the 1st quarter of operations (mid 2014). Scope for potential relationships to partners on the capital side, and spin-off seedling projects on the operations side is also considered. 61 here studio Here Studio Pty Ltd Individuals & Organisations This diagram maps the basic timeline for corporate structures, the legal entities and ownership structures to develop the coworking space in Ballarat. It simplifies many complex conversations into periods and milestones. There are two parts to this structure, loosely one maps onto the capital growth of Co-Lab and the other operations - how we actually do it. Governance structure timeline What structures do we need to make decisions and with whom? Capital Stage 1 Vision Activation City of Ballarat Stage 2 Feasibility Study Jeff Pulford Anthony Schink Stage 3 Start-up Phase Ballarat Boar here studio Stage 4 Operations (Year 1-3) Ballarat Boar Partners Stage 5 Expansion (Year 3-) 62 Ballarat Boar Individuals & Organisations Here Studio Pty Ltd CORE TEAM AMBASSADORS BROADER COMMUNITY CORE TEAM AMBASSADORS MEMBERS BROADER COMMUNITY Co-Lab rd 1.0 Hosting Team t Co-Lab rd 1.1 t Co-Lab rd 1.2 Maintenance Manager - 1/2 day/week - 1/2 day/week Business Development I.T. Events Board Governance Seedling Prototype - 2 days/week - Ticketed events - Event space hire - Additional support Seedlings Seedlings Seedling Committee 1.1 This diagram maps the different governance structures designed to assist decision-making to establish a coworking space in Ballarat. It follows on from the corporate structure timeline. In Stage 2 (feasiblity study) A Client/ Architect agreement is in place between the City of Ballarat and Here Studio Pty Ltd. Directors Ammon Beyerle and Michelle Emma James have established a core team with sub-contractors, employees and a volunteer. Three workshops we conducted where â€œambassadorsâ€? from the broader community attended and provided input on the developments of the coworking space. During Stage 3, the core team (led by Here Studio Pty Ltd) a more sophisticated tiered decisionmaking model will further engage with key ambassadors and the broader community to develop into a board and founding members. This underpins the incorporation of the Ballarat Co- Lab Inc and suggests a remit for the first board to transition to leadership. During Stage 4, a board will be in place that works strategically with operational staff towards organisational objectives, develops interface with partners, and eventually oversees the capital development side of Ballarat Co-Lab Inc. The operational staff have a day-to-day interface with the membership, especially face-to-face through the hosting team. A seedling prototype might be tested in Stage 4, for example a sublease might be offered to a cafe to run from the property. Eventually in stage 5, the Ballarat Co-Lab could have the capacity to support further seedlings and at this point a separate committee may be needed. On the capital development side, the Ballarat Co-Lab Board may be changing as it forms partnerships with other organisations to support its capital growth objectives. The capital and operational sides of Ballarat CoLab Inc could be autonomous but strategically linked. 63 here studio Operations Not-for-profit or for-profit? Why we have chosen an incorporate association structure A significant number of discussions have been developed around what the legal incorporation of the coworking space should be. The current model is for the Ballarat Co-Lab to be set-up as a not-for-profit incorporated association during a transition phase when the governance/corporate model will shift from the responsibility lying with Here Studio Pty Ltd. Not-for-profit incorporated association For-profit company •• easier to access funding grants government, philanthropic, etc •• easier to get legal advice, people are very familiar with company structure •• easier for members to volunteer in building, running of the space, hosting •• encourages seeing members as clients •• cheaper and easier to establish as a registered entity •• shift of focus from financial to core values of the organisation •• members have ownership/responsibility to support and “sell” the space •• more costly to establish as a registered entity •• most case studies of coworking spaces are for-profit businesses •• driven by few owners with personal interests (empowered team) •• quick decision-making, top-down •• members will encourage organisation to benefit them and their projects •• allows partnerships with like-minded incorporated associations (such as Ballarat Business Centre) •• focus on giving to members rather than taking from them (and allowing members to focus on their own independent businesses) here studio •• Ballarat Co-Lab could provide grants or auspice other individuals/organisations •• focus on financial outcomes which brings culture of business success •• people in start-up to get ongoing financial return (core team) •• limited return not attractive for investors •• low turnover compared to start-up costs •• less saleable business because majority of the assets are intangible The not-for-profit incorporated association structure allows the Ballarat Co-Lab to uphold its ideas of community involvement and sense of ownership. There are many opportunities to run a genuine bottom-up process where people can contribute their time and resources, which cannot be done with commercial rates and/or if the corporate structure was based on a for-profit model. We have already realised this in the stage 2, employing three residents of Ballarat (plus one volunteer) and building on the assets and capacity of the community. The not-for-profit incorporated association would have a Board that would be established prior to the opening of the coworking space in April 2014. Our intention is for the incorporated association structure to allow operations to be based more on the values and vision of coworking, as well as growing the culture of the members and supporting their goals. The Board could sit over this and interface with the capital side of the operations. While there are ongoing questions regarding raising funds for future capital, the current assumption is that the capital start-up would be provided by the City of Ballarat. 64 Funding sources Where will we seek diverse funding sources for capital financing? The City of Ballaratâ€™s seed funding is vital to the start-up of the Ballarat Co-Lab. However, given the dedicated time and costs associated with starting a bottom-up community coworking space, we believe that it is important that the project is â€œcrowd-fundedâ€? through a variety of sources. The main purpose of external funding is entirely for capital finacing, that is growth, expansion, further investment, supporting other creative initiatives (seedlings). Notably, we are covering basic depreciation of the fit-out in our cost budget. As per the governance structure developments, we are working towards becoming independent in this matter through partnerships. Openness to multiple funding sources allows for the core team, ambassadors, and braoder community to participate in ways that are meaningful to them - volunteerism, in-kind labour or in-kind donations, not-for-profit rates. This will foster skill sharing, an appreciation for a shared economy and local training for the underemployed. It will also be an opportunity to build new relationships that can be ongoing in new career pathways for young people. We would also seek funding through local and non-local sponsorships, grants, crowdfunding, and community banks as relationships develop and projects and initiatives emerge. We would seek to make reciprocal arrangements with other coworking spaces in Melbourne and interstate to broaden the value of the Co-Lab to our members. In terms of sustainability, having multiple funding sources creates a network of supporters and beneficiaries around Ballarat Co-Lab that becomes embedded as an important place-ecology in Ballarat. Partners Sponsors Grants Crowdfunding (Pozible) Community Banks Volunteers In-kind Other Coworking Spaces Here Studio Pty Ltd Community Bonds ? here studio Council 65 Potential partnerships Conversations with the Ballarat Business Centre Over the course of the feasibility study, we have met with Margi Cousins from the Ballarat Business Centre three times. While the Ballarat Co-Lab is markedly different from the Ballarat Business Centre, we have started to develop a number of potential partnership models between that could be established between the two organisations. The Ballarat Business Centre is a not-for-profit Incorporate Association which operates two sites to provide accommodation for a large number of new and established businesses across a wide range of disciplines. The main building is Dawson House at 15 Dawson St South, which currently has 46 services offices. The second site is the Holmes Street Business Centre where 8 workshops are managed. We initially connected on operational cross-overs such as shared facilities and administrative systems which would help both organisations to effectively lower costs. We have also shared excitement over future capital expense projections -- in sharing our broad membership base, we could leverage capital from both organisations to develop a capital development fund separate to the operational side of both organisations. Finally we see the opportunity for the Ballarat Co-Lab to receive support from the more established Ballarat Business Centre after its start-up and establishment (“becoming”) phase, and for the new Ballarat Co-Lab to seed cultural change in the operations of the Ballarat Business Centre (“changing”) in the future. Remit 1 Inter-relations (shared resources + quality of relationship) 2 Capital expansion 3 Transitition BOARD Ballarat Co-Lab 6 members Ballarat Business Centre 6 members 5y Financial/Impact Independence 1y 1y Auditing AccountingPayroll Shared Facilities Ballarat Co-Lab Inc. Committee 9 part-time staff Shared operations Ballarat Business Centre Inc. 2 part-time staff 3 part-time staff here studio Eureka BEC Dawson Street Holmes Street Seedlings Community Virtual Tenancy Members Volunteers? Creativity Community 66 “becoming” 8y “changing” Other potential partnerships Which other organisations could we partner with? Arts Organisations Community Organisations Environmental Organisations Technology Companies Local businesses Government The following three organisations represent the arts,community development and environmental partnerships which at this time have potential and natural affinities. Ballarat Arts Alive - is an arts based organisation with a vision to support local artists in Ballarat and surrounding areas Lead On - is a community development organisation which aims to strengthen relationships between young people and the broader community BREAZE - is a locally formed group of energetic, forward thinking people who believe that there are more sustainable ways of living on our patch of the planet. These three partnerships offer connections to the larger community of Ballarat, and brings into Co-Lab a mix of skills, interests and participants for the future. Technology companies and other service industries have the potential to provide profitable two-way partnerships, as is the case in other coworking spaces. here studio Finding our future partner organisations will be an ongoing process, as the Co-Lab brings people from different areas and fields from around Ballarat. The next stage of the project will bring focus to the partnership synergies to be found with local business, state and federal government. 67 Risk management What are some of the risks and how can we address them? We have begun a process of identifying, assessing and prioritising risks that are associated with the set-up of a new coworking space in Ballarat. To mitigate some of these risks, we have developed some key strategies which will be implemented in the start-up phase and the early phases of operations. These strategies are based on the principles of transparency and communication, prototyping and testing, research and finding evidence, forward-planning, creative systems thinking and bottom-up community engagement. Risk Impact Likelihood Mitigation •• Targeted marketing and clear communication •• Run open days to show potential of coworking Lack of take-up of coworking concept Low membership sales Medium •• Run crowd-funding campaign to ensure buy-in/ commitment prior to opening •• Publish case studies •• Encourage stakeholders to act as ambassadors •• Staged opening by starting with a Pop-in Studio Opening a space that is too large or too small here studio Lack of diversity in membership Emptiness/ overcrowding affects the culture of the space Low •• Negotiated lease which can be expanded over time Erosion of member culture Lack of genuine crossdisciplinary collaboration •• Feasibility and business plan to test the market •• Community engagement study Medium •• Research on demographics and portential member types •• Targeted open days and events •• Strategic partnerships •• Hosts are employed to foster culture and purpose of the Ballarat Co-Lab Members not aligned with purpose of the Co-Lab Erosion of member culture Low •• Member application process •• Induction process •• Communication of purpose •• Strategy to purchase buildling over long-term Owner wants to sell property 68 Moving to new location Closure Medium •• Negotiate long-term lease •• Design and source furniture/fittings that can be re-located easily Impact assessment How do we measure and communicate our impacts? As the Ballarat Co-Lab’s main purpose is to act as a positive catalyst for cultural change in Ballarat, the scope of its impact will invariably be complex and difficult to synthesise. Keeping this in mind, we aim to use exciting and creative ways to measure the potential impacts of the Co-Lab. Our approach is to use and develop impact assessment tools that will directly support our members and their projects by capturing data “through the lens” of the people who use the Ballarat Co-Lab. The data that we collect will be used for learning within the community, rather than purely for the purposes of evaluation. We believe that it is critical that the research is not just an addition to the operations of the Ballarat Co-Lab but that it is interwoven throughout the culture of the coworking space. For each of our social and environmental objectives, we will identify appropriate indicators and determine how these indicators will be measured. This will be done through facilitated sessions with interested ambassadors, members, and partners during the start-up phase, allowing us to “think outside the box” and invent new ways of achieving our goals that are more than just the “common denominator”. Having these conversations prior to opening with the people who will become the founding members of the space is an important first step in developing the culture of the Ballarat CoLab. Some of our objectives may be straightforward to measure quantitatively (such as data on our total energy consumption or how our members commute to the Co-Lab), while other objectives will need to be measured qualitatively through surveys and interviews with our members. The Outcomes Star is a tool which has been developed in the UK to support and measure change (available via their website) and is one of the tools that we propose to use at the Ballarat Co-Lab. Transforming our culture Stimulating local economy Capacity building 10 9 8 7 6 5 4 3 2 1 Creating jobs Developing individuals Sustainable transport ? Living more sustainably Members will be invited to fill out another Outcomes Star on their annual CoLab birthday, and this will be compared to their initial star worksheet. The benefit of the Outcomes Star is not only that it gives a visual representation of change, but it also has the potential to draw out objectives or new ideas that may also be relevant for other members or the organisation as a whole. Increase health & wellbeing Reducing energy usage and greenhouse gas emissions Second Reading Transforming our culture Stimulating local economy Capacity building 10 9 8 7 6 5 4 3 2 1 Creating jobs Developing individuals Sustainable transport ? Living more sustainably Increase health & wellbeing Reducing energy usage and greenhouse gas emissions When a new member joins the Ballarat Co-Lab they will be invited to an induction session where they will be given a tour of the Co-Lab space and given information about what it means to be a member of the Co-Lab community. At this induction they will also be given the opportunity to fill out an Outcomes Star to gain a snapshot of where they feel they sit on a scale of 1-10 for each of the objectives at that point in time. An added layer is that the members will be asked to individually determine what ‘1’ would mean and what ‘10’ would mean to them for each of the objectives. Annual surveys will be sent out to members via our online collaboration platform Yammer which will ask questions to understand how the Co-Lab is supporting its members. It will be important to understand how our members use the space and any positive or negative feedback they may have about the operations of the Co-Lab, but in addition, some of the key questions may include: “what does the Co-Lab mean to you? do you feel a part of the CoLab community? how has the Co-Lab supported your projects? how has the Co-Lab supported you personally? has the Co-Lab changed anything in your working life? has the Co-Lab changed anything in your personal life? are there any changes you would like to instigate at the Co-Lab?” We would use the data collected as a way to improve the service to members. The information will be reviewed by the Board prior to making annual strategic decisions, and may also inform larger changes to operational systems. We would aim to communicate any data collected in creative and visual ways that will be engaging for members and the broader community. Other non-conventional forms of impact assessment might also be used including the creation of a series of documentary films that interview members and/or highlights their projects and collaborations. These films would be shared with the community through our website and feature newsletters. 69 here studio First Reading We will: •• use and develop tools to monitor our performance against our social and environmental objectives and learn from the data collected •• use frameworks that engage with our members to clarify the impacts that our members wish to make •• use exciting new tools and mediums to gather information and evidence to understand and communicate the overall impact of the Ballarat Co-Lab 70 here studio here studio Appendix 71 Appendix Stage 2 Core team Ammon Beyerle Master of Architecture, The University of Melbourne Bachelor of Planning and Design (Architecture), The University of Melbourne Diploma of Modern Languages, The University of Melbourne PhD, The University of Melbourne (in progress) Ammon is a passionate and driven researcher, writer and teacher with a background in architecture. He lives in Ballarat. In 2009 he co-developed Urban Village Melbourne, a multidisciplinary social enterprise interested in arts, design, research, community development and sustainability in public space. Working for five years between France, Germany, Japan and Australia he brings experience in the management of public architectural and structural design projects to here studio. He is a co-director of here studio - a registered architectural company and a network of community activists, focused on Participatory Design of community-orientated projects, and Affordable Everyday Architecture. In 2012 he was creative director for Mini Maker Faire Melbourne and in November this year the same team will run a bigger event called eurisko - a show and tell weekend to celebrate the mantra â€œdiscover by doingâ€?. Ammon is currently undertaking a PhD regarding participatory architectural practice and agonism in local urban ecologies. Michelle Emma James Architects Registration Board Victoria 17681 Bachelor of Architecture,The University of Melbourne Bachelor of Planning and Design (Architecture), The University of Melbourne Master of Social Science, RMIT University (in progress) here studio Michelle is one of the co-directors of here studio. She is a registered architect who brings valuable experience in design, stakeholder consultation and project management. Michelle is passionate about the activation of public space and has explored this through collective Urban Village Melbourne as well as WELOVEPT, a multidisciplinary group advocating for equitable and accessible public transport, which she founded in 2009. She is currently teaching at The University of Melbourne and undertaking a Master of Social Science at RMIT University. In both her research and in practice, Michelle is dedicated to participatory design and asset-based approaches to community development. Margaret Dobson Diploma, Professional Writing and Editing, RMIT University Margaretâ€™s expertise in the arts combines two areas of experience, as a practicing artist and as an arts administrator largely working with State Government. In short and long term contracts at Arts Victoria in the Department of Premier and Cabinet for over ten years, she is experienced at liaising between the arts community, both individuals and organisations, and the funding policies of Government. 72 Appendix Stage 2 Core team Samuel Brown Advanced Diploma of Marketing, Martin College Sam is a 21-year-old marketing and freelance graphic designer working with local business and community organisations in the Ballarat region including Ascend Public Relations and Communications. Through experience in hospitality management, business and promotions, he has a passion for bringing people together in not-for-profit campaigns and community projects. He is a recent recipient of a Federal Government Creative Young Stars Grant and is currently planning a fundraiser for the Cancer Council. Samuel Cooney Sam owns and operates a local restaurant/cafĂŠ, The Unicorn Ballarat, with two business partners. He has practical experience in hospitality, business, event and project management. Samâ€™s current focus is on developing his staff, assisting in the transformation of the Ballarat community, and most of all spending time with his young family. Onur Ekinci Advanced Diploma, Group Facilitation, Groupwork Institute Australia Bachelor of Business, Supply Chain Management, RMIT University Onur has a passion for people and change. He enjoys leading organisations from aligning on a collective vision through to focussed implementation to realise their strategic objectives. He draws on his ability to engage and empower people through his leadership roles both in the corporate and not-for-profit sectors. He also brings with him sound facilitative processes, fresh thinking and extensive networks and contacts that he leverages for breakthrough strategies and results. Here Studio Staff here studio Alexander Fotherby BA (Hons) Architectural Studies, The University of Newcastle upon Tyne, U.K. Alex is an architecture undergraduate from Newcastle in the U.K and has design experience working in practices in London, Manchester and Hong Kong. He is keen to develop his passion for architectural design that can respond to peopleâ€™s needs and act as a catalyst for wellbeing and creativity for both users and the broader community. Originally from London, he is currently living and working in Melbourne. Micha Woodhouse B.Env.Des, University of Western Australia Micha is a Masters of Architecture student at Melbourne University. She is interested in the study of human interaction with the built environment. She lived and studied in Milan, Italy for one year, which gave her insight and exposure to the field of architecture and design in Europe. Originally from Perth; she now lives, studies and works in Melbourne. 73 Appendix Workshop 2.1 - Minutes 040 Ballarat Coworking Lab Minutes here studio Workshop 2.1: Assets + Process 25th July 2013 11am- 1pm Ballarat Business Centre 15 Dawson Street Ballarat Facilitator - Ammon Beyerle Attendees Mark Hogan, Craig Allan, Damian Orriss, Aldona Kmiec, Onur Ekinci, Ailsa DuBois, Sam Cooney, Margi Cousins, Simone Anderson, Kieran Murrhy, Leo Renni, Andy Beyerle, Margaret Dobson Agenda Items 1 Check In: What do you love about Ballarat? 2 Process so far + Melbourne Hub Tour feedback 3 Introducing asset theory & activity a. Physical space b. Groups and associations c. Individuals d. Institutions e. Local economy 4 Process for Feasibility Study 5 Personal Assets 6 Check Out: What assets can we engage in the next 6 weeks? Item 1 The relaxed lifestyle Quality of the history through buildings and architecture, it’s still here Quality of the Education Smallness and immediacy of the city Fresh air Know people in the street Diversity of the weather Family connections The opportunities available in the city Ballarat on a ‘cusp’ of new directions Farmer’s markets, organic produce and close to growers Close to the coast, region and Melbourne CBD Development of its life both culturally and social 74 Ballarat Colab Workshop 2.1: Assets + Process 25th July 2013 1 Appendix Workshop 2.1 - Minutes Item 2 Ammon presented the story so far and summarised the last activation workshop. He outlined that we are now producing a feasibility design report for the City of Ballarat. The core team of Ammon, Onur, Marg and Michelle have met twice. The tour was recognised as an inspiration for Margi, who had since made changes to the Business Centre’s gathering space. She saw the value of creating a part of the building for people to meet, in this instance the kitchen space, as a welcoming way people could gather to improve networking opportunities. Aldona outlined her excitement of being about to connect with others and work with the “buzz’ of other people around in an inspiring environment. An environment can make you more creative”. Physical Space here studio Item 3 Ammon outlined the concept of doing an audit of the assets we can indentify as possessing already – that we can potentially build on and engage to shape the project. As opposed to focusing on what is lacking in the current environment, what are the assets we can identify as owning already? The maps of Ballarat assets were prepared in groups of three, showing a local map and the region. Assets included the University, the Lake Wendouree, Victoria Park, transport connections, M.A.D.E, Sovereign Hill, manufacturing, Tech Park, Gekko, Gold Acres, Her Majesty’s Theatre, Royal South Street Society, Breaze, Ballarat Business Centre, Commerce Ballarat, Committee for Ballarat and Ballarat Regional Tourism. Groups/ Associations Ballarat Community Individuals Institutions Local Economy 75 Appendix here studio Item 4 Workshop 2.1 - Minutes Ammon outlined the proposed next 6 weeks, with the example of the Melbourne Hub feasibility plan, showing the scope of preparation required of the core group and the stakeholders present. Everyone here has already identified themselves as ambassadors for the Colab. The group noted how business plans develop from their first design. We talked the intention of sharing models as they are developed for feedback and input. Getting the model right for us in Ballarat was a key focus. Early discussion are around mixed corporate structures that include collective + individual + core team ownership; governance models including partners and organisational structures that include the skill in the room, maybe the concept of a host. We have only been working one week so ideas are early. Item 5 Through groups working together, each individual filled in an Asset Sheet outlining there personal skills and connections through the community and beyond, in groups of three. • • • • • • • Corporate & business connections Connections with other professionals Connections with Government Connections with Related Organisations Personal assets for example hobbies Other Assets Contributions and interest with the project – 11 boxes identifying skills and experience. These details will be recorded to identify the wealth of skills, experience and connections of the group attending the workshop. This record will be part of the asset bank for the project. 76 Ballarat Colab Workshop 2.1: Assets + Process 25th July 2013 3 Appendix Workshop 2.1 - Minutes Item 6 The group had an open discussion starting with presenting group and individual assets. We noted the diversity of each group and the wealth of personal resources. Group 1: strength of multidisciplinary backgrounds, overlap and connection over information technology. Group 2: seeing how these assets start to change our ideas of what can happen, assets of buildings, entertaining and cooking. Group 3: we can learn from each other to develop ourselves and our projects, get inspiration, interesting to see how we all have diverse backgrounds. Group 4: many of us work with government, strong asset in history, sport, starting businesses, and need to think about school communities. Individuals identified the activity they would undertake to continue the momentum of the CoLab project. • Distribute the skills and asset template for those who were not able to attend the workshop • Use Social Media to broaden the network and information • Use word of mouth to broaden the network • Photograph potential buildings as a spark for inspiration and thinking, maybe Instagram to publish. • Writing and publishing articles of the concepts of the project to give greater depth to the discussion • Connect through conversation with more people • Offer of business planning experience in the later stages of the feasibility study • Offer of data from the Business Centre recording the enquires of interest and requests for ‘hot desk’ space, and breaking down information into demographics and frequency • Contacting those people who were at the first meeting to gauge interest in the next workshop. Next Meeting – Workshop 2.2: Intention + Vision Wednesday 7th or Thursday 8th August Location – to be confirmed Time - to be confirmed here studio www.ballaratcolab.com.au Please follow our twitter @ballaratcolab Homework: worksheets for organisational assets ATTACHED 77 Appendix Workshop 2.1 - Activity MAPPING OUR ASSE(T)S prepared by Michelle Emma James, here studio Goals of this exercise • • • • • To think about each team member in a multidimensional way and develop a more complete view of who the team member really is and what assets he or she represents. To identify what the team member would most like to be doing for the organisation and what responsibilities would make the most of his or her assets. To connect the team member’s interests and abilities with the most appropriate contribution within the organisation. To expand the avenues for contribution to the organisation based on what each team member brings to the table. To identify opportunities for team member development in terms of training, education, and leadership. Previous applications here studio Example 1: The Chicago Foundation for Women used the Asset Mapping tool at a meeting to reassign responsibilities for the coming year. By going through the mapping process, more than half of the team members realized that they possessed some kind of asset that was being underutilized in their work with the organisation. Each one was able to identify an activity that would provide an opportunity to contribute this asset to the organisation. At the end of the meeting, many roles and responsibilities had been adjusted, and team members felt excited about taking on tasks that interested them. Example 2: Another organisation used the Asset Mapping tool at a retreat to encourage serious thinking by team members about how they most wanted to relate to and contribute to the organisation. Before the retreat, one team member had considered leaving the board because she felt dissatisfied with the contribution she was making and the work she was being asked to do. After going through the mapping process, she realized that rather than investing time in a number of smaller projects throughout the year, her most meaningful contribution would be to help plan and leverage an appropriate site for the Annual Luncheon. By participating actively in one large and important project, she was able to reduce her frustration, feel that her contribution was meaningful, and generate new enthusiasm for her involvement. By accommodating her needs, the foundation retained a desirable team member and gained her renewed commitment to the organisation. ACTIVITY (10‐15 minutes in pairs, 15‐20 minutes as a group) A. CONTRIBUTIONS AND INTERESTS WITHIN THE ORGANISATION: 1. What specific activities are you committed to working on throughout the year? 2. What roles and responsibilities will you undertake for each of these activities? 3. Do these activities, roles, and responsibilities make the most of your skills and interests, and allow you to make the most meaningful contribution possible? 4. What are your skills, interests and passions? 5. Would you like to be doing more/something different on behalf of the organisation? 6. How would you like to be doing more/something different? B. CONNECTIONS OUTSIDE THE ORGANISATION: 1. What business and corporate connections do you have? 2. What kinds of connections do you have with other professionals? 3. What connections do you have with government entities? 4. What connections do you have with related organisations or other non‐profit organisations? 5. What connections do you have with other foundations? 6. What assets do you have in terms of family connections, activities and relationships in your personal life, hobbies such as sports, music, art, etc? 7. What other assets do you have in terms of connections outside the organisation? 8. Are these assets in the form of connections outside the organisation being utilized to the fullest in terms of the contribution you could make as a committee member to the organisation? 78 Appendix Workshop 2.1 - Activity Connections with other Professionals Connections with Government Connections outside organisation Corporate & Business Connections Other Assets Personal assets - hobbies, etc Connections outside organisation Connections with Related Organisations here studio Contributions and interests within organisation Team member name 79 Appendix Workshop 2.2 - Minutes 040 Ballarat Coworking Lab Minutes Workshop 2.2: Intention + Vision 7th August 2013, 5.30pm - 8pm Unicorn Café, 129 Sturt Street Ballarat Facilitators Onur Ekinci, Ammon Beyerle & Michelle Emma James Attendees Craig Allan, Aldona Kmiec, Ailsa DuBois, Sam Cooney, Sam Brown, Margaret Anderson, Bindy Trembath, Erin McClusky, David McGinniss, Linda Blake, Stuart Bates, Hanna Connell & Margaret Dobson Apologies Margi Cousins, Emma Barrance, Helen Thompson, Janelle Ryan Sofia Fiusco, Ian Dreher, Amy Tsilemanis, Lucinda Horrocks here studio Agenda Items 1 Check In: Short guided meditation and the question: what have I noticed within myself since doing this project? 2 Bringing collective intent and introducing the vision we have created so far. Present theory of what actions are based on, ‘have’, ‘do, ‘be’ 3 Collective Intent 4 Brainstorm - short term and long term financial sustainability; detailing our vision through business models, revenue sources 5 Next Steps & Check Out Item 1 The major sense people felt in connecting with the Co-Lab project, was an increase in self confidence and positive feelings about Ballarat and its potential. One person was inspired to start gathering people together for a ‘pop up’ hub, and felt the workshops had facilitated the confidence to act. Others who were new to the workshop, had heard the buzz about the project, and felt that the ‘time was right’ and the ‘critical mass of intention’ had arrived for such project. Item 2 a Onur outlined the theory of what our actions are based on, with the ladder that is read from bottom of the list to the top, then cycling back to the bottom. Actions Beliefs Conclusions Assumptions Meanings Data Observations 80 Workshop 2.2 Intention + Vision 7th August 1 Appendix Workshop 2.2 - Minutes b Present ‘Have’ – vibrant, inspirational, creative, transformational, social, reshaping Ballarat identity c Present ‘Do’ - collaborating, sharing ideas, leveraging resources, breaking silos & isolation d Present ‘Be’ – who do I need to be , how do I need to show up or what do I need to let go in order for Co-Lab to realise its full potential: Collaborate Mindful Engage Be yourself Passionate Prepared to make Open Perceptive mistakes Bold Receptive to new ideas Positive Reflective Childlike Diplomatic Motivated Honest Silly Persistent Professional Experiment and play Hungry Curious Embrace chaos Workshop 2.2 Intention + Vision 7th August 2 here studio Item 3 Working individually, each participant was asked to answer the question: what would our intent be in 5-15 words? • Embracing the new now • To create and collaborate • Where anything is possible • A community space which hold dignity, inclusion and positiveness as core values for everyone to share • To create a space that fosters creativity, passion, motivation and collaboration for the community its local artists and businesses • Building an energetic passionate and driven community network • Work together and make Ballarat brave and prosperous • Engaged and passionate professionals collaborating in a bold and positive organisation • A place to grow connections between people for the benefit of the whole of Ballarat community • To create a community space that will further connect and transform Ballarat • An innovative and friendly environment where great things can happen or not or no party poopers • Help making Ballarat better than the sum of its parts (using just some of its parts) • Enable, empower, reactivate, connect and transform the people and place • To work towards a common Goal, fiving Ballarat the opportunity to collaborate • Social, economic and cultural transformation • Bright, passionate, active, industrious in integrating social creativity 81 Appendix Workshop 2.2 - Minutes The above notes were then clustered in groups of common themes to identify three major groups. Community Collaborate Transform With the underpinning sentiment of being brave and bold. Item 4 Ammon and Michelle firstly outlined the timeline heading towards the Feasibility Study. They then opened a discussion about the short-term operational, and long-term capital finance challenges of the Co-Lab in Ballarat. While the project has seed funding for its short term, how does it eventually operate sustainably into the long term? • People and connections – it is hoped there would a snowballing effect which would gather momentum to bring in like minded people together and increase the participation in membership over time. Due to population there is a risk of collecting the critical mass of people paying membership, what they would be prepared to pay. • Building and infrastructure – would it be better supported by private investors or philanthropists. There is a long term risk in tenancy. • Capital Finance – the current process is reliant on the City of Ballarat, therefore what other mix of funding sources could provide independence and long term viability? here studio Ammon lead the group to sketch a big diagram of the current business model ideas, including: - diverse impacts (profits) – ie financial, social, environmental, access, ideas, jobs, fun - diverse revenue/capital sources – ie locals, individuals, organisations, externals, commuters, shareholders - diverse business activities – ie café, space hire, education, brokering consultants, wellness, gym, coworking, events Through workshopping the idea of what the model of the Co-Lab might look like, including activities and other income streams, the group divided into three groups looking at Education, Brokering in the Arts, and Health and Wellbeing services. 82 Workshop 2.2 Intention + Vision 7th August 3 Appendix Workshop 2.2 - Minutes Education Services • What is it? A place to train, skills development, historical learning context within Ballarat • What it gives? Dollars, builds capacity, grant money, safety net, change stereotypes about learning delivery • What it says? Ballarat is smart, a regional Victorian centre with a difference and a good advertisement for the city • What it takes? Time, specialisation, high upfront investment and accreditation • What it does? Provides opportunities and provides pathway synergy. Consultancy and Brokering the Arts • What is it? Focus on artists, broker and manage as co-op for professional artists • What it gives? Dollars, awareness of skills, availability, advocacy and management • What it says? Socially aware and sophisticated, socially inclusive of arts and artists re European models • What it takes? Dollars, time, skills, organisation, collaboration and connection between the arts and social sphere • What it does? Creates an artist register, includes artists in pool of resources and in unconventional activities Item 5 The workshop finished up with people identifying what action they are inspired to take on. • Networking through social media and researching models around other business models • Demographic modelling of who has recently arrived in Ballarat to confirm new residents • Further documentation of the process through articles • Increasing awareness of the project through personal connections • Continuing support of process through lobbing Council Next Meeting – Workshop 2.3: Structures + Vision The week of 19th – 23rd August Location and time – to be confirmed www.ballaratcolab.com.au Please follow our twitter @ballaratcolab 83 here studio Health & Wellbeing Services • What is it? A wellness centre, alternative therapies, exercise opportunities and childcare centre • What it gives? Dollars, attraction to the centre, builds brand, provides healthy choices and happy people • What it says? Work / Life balance is important, holistic view in a working space, we love the community • What it takes? Space and infrastructure, organisation, certification and insurances • What it does? Promote a healthy environment, connects people, social inclusion and sense of a global village. Appendix Workshop 2.3 - Minutes 040 Ballarat Coworking Lab Minutes Workshop 2.3: Structure + Vision 22nd August 2013 6pm - 8pm Unicorn CafĂŠ 129 Sturt Street Ballarat Facilitator â€“Ammon Beyerle, Marg Dobson, Onur Ekinci, & Michelle Emma James Attendees Craig Allan, Sam Cooney, Haydn Smith, Robert Connell, Victor Ramananauskas, Beth Lamont and Jesse Newstadt Apologies Margi Cousins, Aldona Kmiec, Ailsa DuBois ,Emma Barrance, Sofia Fiusco, Amy Tsilemanis, Lucinda Horrocks, Erin McClusky, David McGinniss, Linda Blake, Stuart Bates, Sam Brown here studio Agenda Items 1 Check In 2 Present Models Cost revenue Corporate Structure Governance Structure 3 Rotational un-conference Site selection Business Models 4 Discussion 5 Check out Item 1 People shared where they were born. Two from Ballarat, one from Ankara, another Johannesburg and various Victorian locations: Carlton, Wodonga, Taralgon, Werribee Item 2 Starting from first principles of sustainability, Ammon presented the businesss to cost revenue model including costs and revenue for the establishment and first three years of the Co-Lab. The basic model is to match costs (site and staff 240k) with revenue (85% 84 040 Ballarat Co-Lab Workshop 2.3 Structure + Vision 1 Appendix Workshop 2.3 - Minutes memberships, 10% event space hire, 5% event tickets, 240k + 20% contingency/profit). Add on seedling projects would generate extra capital. here studio The corporate structure outlined how year 1- 3 the capital finance would come from City of Ballarat (rent, startup costs, fitout). The model was for self-supporting operations by year 23. By year 4 more capital funding would be required as the future of renting or buying the property will become an issue. How may the future look if there were equity partners or private investors? There is insecurity being in the rental market. Business operators can go through periods of buying buildings and at other times seeing the rental market as the best alternative. A business case for the potential of purchase of the building would be required after the first couple of years. The various structures include Limited by Guarantee, Proprietor Limited, and Incorporation were discussed, and group knowledge was shared about the advantages and disadvantages with each structure. Building reserves was seen as an important priority. To clarify the transition decisions (governance structure) we have proposed for Here Studio Pty Ltd to carry the project with the City of Ballart through to start/midway through the first year. After a great deal of discussion over the past month we have selected a not for profit incorporated association model because it is most closely aligned with the deep purpose of the project – community ownership and community capacity building; indeed “Transforming our Community” In discussion of the corporate /governance structures Rob outlined his experience with the Murray River Performing Group, a company which split into the Flying Fruit Fly Circus and HotHouse Theatre. The circus has after many years, a bespoke building and training centre that the Council owns. Rob also outlined the Board structure of unpaid expertise, and the ease of no shareholders to determine outcomes and operations. Profits could be carried forward for future development. Item 3 Ammon listed on the wall the elements of the feasibility study we are pulling together and describe 4 main themes that the core team had prepared packages of research to discuss. We split into two groups based on interest. Group 1 Workshop around site type and selection. Michelle provided the outline of four other co-labs in Melbourne, with details about feel, pictorial representations and percentages of space and its uses. Through the outline the group was asked to share any issues they saw in thinking only about the space: 85 040 Ballarat Co-Lab Workshop 2.3 Structure + Vision 2 Appendix Workshop 2.3 - Minutes • • • • • • • More definition of the sectors / businesses and uses of the Ballarat Co-Lab to inform decisions on design concepts Break out spaces and social spaces important A building over different levels could affect the culture of the space – not being about to see the whole space Can the city model transfer to a regional context? There is good access to NBN – important consideration for the future What about ‘Hot Gossip’ in Dana Street Government space There was not enough time to discuss the proposed locations. Group 2 Workshop around business models. Discussion focussed on the extra income generation of the café and health and wellbeing and childcare facility – the seed projects. The group also discussed further ideas for revenue generation, and to refocus on creative industries. There was a message to not copy Melbourne Hub but think about how creative industries add to culture in Ballarat : • film and music studio • child care – a big potential • other studios • diverse events such as Ted x, low cost and pro-bono, self run, mixture of cost levels • value adding events – learning experiences to develop the culture • consider sponsorship, outsourcing, auspicing to and from Colab. • Seed model is effective because is creates an environment where locals choose what is successful • Membership mix might move around as the community develops - Think about concessions, low cost membership etc here studio Item 4 In the short final discussion, Rob, Jesse and Beth picked out the most important issues raised • More definition of the sectors / businesses and uses of the Ballarat Co-Lab before developing design solutions • A building over different levels could effect the culture of the space – not being about to see the whole space • What about ‘Hot Gossip’ in Dana Street Sam added to this: • Potential of a seed model, where Colab seeds others, could also be an auspicing agent • Refocus on creative industries, including artists Item 5 What has most surprised you about this evening? That new people continue to arrive with keen interest and great ideas Those people who have been to the workshops continue with their interest This maybe the way the co-lab will work in the future, the flow of people at different times, but continuing to care what is happening The co-lab is going to really happen Not surprised that it is time for such a grouping in Ballarat Not surprised at the talent in the room Surprised at how quick it has got to detail and a firm presentation of the way the Feasibility Study is going Surprised by the random pattern of the dimming lights of the Unicorn. Touched by the encouragement, trust and support and the willingness to grow a new culture 86 040 Ballarat Co-Lab Workshop 2.3 Structure + Vision 3 Appendix here studio National Broadband Network area map for Ballarat 87 Appendix Other coworking spaces abroad New Work City, New York Website: http://nwc.co/ Location: 412 Broadway #2 New York, New York Membership: Communal $30/day $100/month; Dedicated $300/month Physical Net Size: 148 m2 Co+Hoots, Phoenix, Arizona Website: http://www.cohoots.com/ Location: 1027 E. Washington St. Suite 107, Phoenix, Arizona Membership: Basic $15/day; Frequent $50/mo; Full Member $350/mo Physical Net Size: 836m2 Strongbox West, Atlanta, Georgia Website: http://strongboxwest.com/ Location: 1736 Defoor Place, Atlanta, Georgia Membership: Casual $85/mo; Premier $145/mo; Deluxe $285/mo Physical Net Size: 185m2 Projective Space, New York here studio Website: http://www.projective.co/ Location: 447 Broadway & 72 Allen Street New York, NY Membership: $325/month Physical Net Space: 511m2 (Broadway) & 669m2 (Allen) Workbar, Boston, Massachusetts Website: http://workbar.com/ Location: 711 Atlantic Ave. Boston, Massachusetts Membership: $30/day; Full $300/month; Dedicated $600/month Physical Net Space: 9,248m2 88 Appendix Other coworking spaces abroad Office Nomads, Seattle, Washington Website: http://officenomads.com/ Location: 1617 Boylston Ave, Seattle, Washington Membership: 1 day/month – $30; 15 days/month – $270; 24/7 access – $495 + deposit Physical Size: 1,533 m2 Icehouse, New Orleans, Louisiana Website: http://www.icehousenola.com/ Location: Trumpet Icehouse 2803 St. Philip St, New Orleans, Louisiana Membership: $500/month Physical Net Size: 1,115 m2 654 Work Cottage, Grand Rapids, Michigan Website: http://www.workcottage.com/ Location: 654 Croswell Ave, Grand Rapids, Michigan Membership: $20/day; $150/month Physical Net Size: 167.3 m2 General Assembly, New York here studio Website: https://generalassemb.ly/ Location: 902 Broadway 4th Floor, New York, New York Membership: Communal $300/month; Dedicated $500/month Physical Net Size: 1,859 m2 HeraHub, San Diego, California Website: http://herahub.com/ Location: 9710 Scranton Road Suite #160, San Diego, California Membership: Based hourly; $3-$8/hr Physical Net Size: 831 m2 89 Appendix here studio Screengrabs showing social media tools 90 Appendix Exploring seedlings in further detail - cafe & brokering Cafe What it is? What it gives? - Provides an interface for Ballarat Co-Lab - Provides a proven product that there is demand for - Resource for collaborators and staff - Secondary, more casual meeting place - Events space - Non reliant on the Co-Lab - A percentage of revenue to ballarat colab - Pays rent for use of space - Employment opportunities for colabers and community - Regularity, hospitality What it takes? What it does? - Provides a service (food & drink & catering) at a cost - Gives opportunities to Co-Lab members and community - Opens everyday - Welcome those upon entrance (welcoming environment) - Hold events - Run independently - Train people - Creates culture - Creates urban renewal - Initial capital - Coffee machine, dishwasher, oven, fryer, cooktop, fridges, freezers, benches, chairs, tanles, plants, flooring, crockery, cutlery, glassware, cleaning, advertising, signage, construction (electricity, gas, water, labor), permits, licenses - Ongoing expenses - Wages, electricity, gas, water, stock, replacements, rates, rent?, upkeep/ cleaning, rubbish disposal, licenses, permits, insurances, accounting, bookkeeping, super, GST, payg - Management Brokering - A service - Links Co-Lab members to clients - A revenue generator - A community asset that generates goodwill - Business generator for Co-Lab members - Encourages membership What it says? - We are interested in opportunities for Co-Lab members - We are collaborating - We support local skills - We are a bank of resources What it gives? - Opportunity for colabers - Networking opportunities - Community access to skills - A database of skills and people - Market research indications for Co-Lab members - Percentage of revenue What it takes? - Time and Money - Specialist Marketing, advertising and management - Space - Resources - Risk reputation What it does? - Provides ad advertises the services and skills of colabers - Gives the community access to those skills and services at a good price - Generate revenue for Colab - Builds goodwill with community - Provides services to the people of ballarat and a good price, whilst advertising up and coming designers, artist and service providers 91 here studio What it is? Appendix Membership pricing and mix scenarios Model 1a $305,760 $60,960 ideal mix consider more club encourages mix manageable number of members balance 125% 120 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 6 $120 $520 $6,240 $37,440 $44,928 $29,952 $18,720 Full-time 18 $100 $433 $5,200 $93,600 $112,320 $74,880 $46,800 Part-time 48 $50 $217 $2,600 $124,800 $149,760 $99,840 $62,400 Casual 24 $30 $130 $1,560 $37,440 $44,928 $29,952 $18,720 Club 24 $10 $43 $520 $12,480 $14,976 $9,984 $6,240 49.2 members/ day $305,760 $366,912 $244,608 $152,880 $60,960 $122,112 -$192 -$91,920 100% 120% 80% 50% Model 1b $258,960 $14,160 lower price balance 106% 120 Price Number Week Month Year Total Total Total Total Resident 6 $100 $433 $5,200 $31,200 $37,440 $24,960 $15,600 Full-time 18 $90 $390 $4,680 $84,240 $101,088 $67,392 $42,120 Part-time 48 $40 $173 $2,080 $99,840 $119,808 $79,872 $49,920 Casual 24 $25 $108 $1,300 $31,200 $37,440 $24,960 $15,600 Club 24 $10 $43 $520 $12,480 $14,976 $9,984 $6,240 49.2 members/ day $258,960 $310,752 $207,168 $129,480 $14,160 $65,952 -$37,632 -$115,320 here studio 0.8 Model 1c raise price (not club) $358,800 $114,000 balance 147% 120 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 6 $130 $563 $6,760 $40,560 $48,672 $32,448 $20,280 Full-time 18 $120 $520 $6,240 $112,320 $134,784 $89,856 $56,160 Part-time 48 $60 $260 $3,120 $149,760 $179,712 $119,808 $74,880 Casual 24 $35 $152 $1,820 $43,680 $52,416 $34,944 $21,840 Club 24 $10 $43 $520 $12,480 $14,976 $9,984 $6,240 49.2 members/ day $358,800 $430,560 $287,040 $179,400 $114,000 $185,760 $42,240 -$65,400 0.8 92 Appendix Membership pricing and mix scenarios Model 2a $294,320 $49,520 seems realistic but inflexible might discourage flow balance 120% 106 Price Number Week Month Resident 23 $120 Full-time 23 Part-time Casual Club 100% 120% 80% 50% Year Total Total Total Total $520 $6,240 $143,520 $172,224 $114,816 $71,760 $100 $433 $5,200 $119,600 $143,520 $95,680 $59,800 0 $50 $217 $2,600 $0 $0 $0 $0 0 $30 $130 $1,560 $0 $0 $0 $0 60 $10 $43 $520 $31,200 $37,440 $24,960 $15,600 49 members/ day $294,320 $353,184 $235,456 $147,160 $49,520 $108,384 -$9,344 -$97,640 100% 120% 80% 50% 1 Model 2b $258,440 $13,640 lower price balance 106 Price Number Week Month Year Total Total Total Total Resident 23 $100 $433 $5,200 $119,600 $143,520 $95,680 $59,800 Full-time 23 $90 $390 $4,680 $107,640 $129,168 $86,112 $53,820 Part-time 0 $40 $173 $2,080 $0 $0 $0 $0 Casual 0 $25 $108 $1,300 $0 $0 $0 $0 60 $10 $43 $520 $31,200 $37,440 $24,960 $15,600 49 members/ day $258,440 $310,128 $206,752 $129,220 $13,640 $65,328 -$38,048 -$115,580 100% 120% 80% 50% Club 1 Model 2c $330,200 $85,400 here studio 106% raise price balance 135% 106 Price Number Week Month Year Total Total Total Total Resident 23 $130 $563 $6,760 $155,480 $186,576 $124,384 $77,740 Full-time 23 $120 $520 $6,240 $143,520 $172,224 $114,816 $71,760 Part-time 0 $60 $260 $3,120 $0 $0 $0 $0 Casual 0 $35 $152 $1,820 $0 $0 $0 $0 60 $10 $43 $520 $31,200 $37,440 $24,960 $15,600 49 members/ day $330,200 $396,240 $264,160 $165,100 $85,400 $151,440 $19,360 -$79,700 Club 1 93 Appendix Membership pricing and mix scenarios Model 3a $354,120 $109,320 not enough keepers of the space fluid yet hard to manage space high number of members nedded balance 145% 219 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 0 $120 $520 $6,240 $0 $0 $0 $0 Full-time 0 $100 $433 $5,200 $0 $0 $0 $0 Part-time Casual 77 $50 $217 $2,600 $200,200 $240,240 $160,160 $100,100 Club 77 $30 $130 $1,560 $120,120 $144,144 $96,096 $60,060 65 $10 $43 $520 $33,800 $40,560 $27,040 $16,900 49.45 members/ day $354,120 $424,944 $283,296 $177,060 $109,320 $180,144 $38,496 0.55 Model 3b -$67,740 $294,060 $49,260 balance 120% 219 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 0 $100 $433 $5,200 $0 $0 $0 $0 Full-time 0 $90 $390 $4,680 $0 $0 $0 $0 Part-time 77 $40 $173 $2,080 $160,160 $192,192 $128,128 $80,080 Casual 77 $25 $108 $1,300 $100,100 $120,120 $80,080 $50,050 Club 65 $10 $43 $520 $33,800 $40,560 $27,040 $16,900 49.45 members/ day $294,060 $352,872 $235,248 $147,030 $49,260 $108,072 -$9,552 -$97,770 here studio 0.55 Model 3c $414,180 $169,380 balance 169% 219 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 0 $130 $563 $6,760 $0 $0 $0 $0 Full-time 0 $120 $520 $6,240 $0 $0 $0 $0 Part-time 77 $60 $260 $3,120 $240,240 $288,288 $192,192 $120,120 Casual 77 $35 $152 $1,820 $140,140 $168,168 $112,112 $70,070 Club 65 $10 $43 $520 $33,800 $40,560 $27,040 $16,900 49.45 members/ day $414,180 $497,016 $331,344 $207,090 $169,380 $252,216 $86,544 -$37,710 0.55 94 Appendix Membership pricing and mix scenarios MODEL 4a $317,200 $72,400 perhaps ideal mix high number of members needed balance 130% 210 Price Number Week Month Resident 5 $120 Full-time 5 Part-time Casual Club 100% 120% 80% 50% Year Total Total Total Total $520 $6,240 $31,200 $37,440 $24,960 $15,600 $100 $433 $5,200 $26,000 $31,200 $20,800 $13,000 50 $50 $217 $2,600 $130,000 $156,000 $104,000 $65,000 50 $30 $130 $1,560 $78,000 $93,600 $62,400 $39,000 100 $10 $43 $520 $52,000 $62,400 $41,600 $26,000 45 members/ day $317,200 $380,640 $253,760 $158,600 $72,400 $135,840 $8,960 -$86,200 100% 120% 80% 50% 5 MODEL 4b $270,400 $25,600 lower price balance Resident Full-time Part-time Casual Club 210 Price Number Week Month Year Total Total Total Total 5 $100 $433 $5,200 $26,000 $31,200 $20,800 $13,000 5 $90 $390 $4,680 $23,400 $28,080 $18,720 $11,700 50 $40 $173 $2,080 $104,000 $124,800 $83,200 $52,000 50 $25 $108 $1,300 $65,000 $78,000 $52,000 $32,500 100 $10 $43 $520 $52,000 $62,400 $41,600 $26,000 45 members/ day $270,400 $324,480 $216,320 $135,200 $25,600 $79,680 -$28,480 -$109,600 100% 120% 80% 50% 5 MODEL 4c $364,000 $119,200 here studio 110% raise price balance 149% 210 Price Number Week Month Year Total Total Total Total Resident 5 $130 $563 $6,760 $33,800 $40,560 $27,040 $16,900 Full-time 5 $120 $520 $6,240 $31,200 $37,440 $24,960 $15,600 Part-time 50 $60 $260 $3,120 $156,000 $187,200 $124,800 $78,000 Casual 50 $35 $152 $1,820 $91,000 $109,200 $72,800 $45,500 100 $10 $43 $520 $52,000 $62,400 $41,600 $26,000 45 members/ day $364,000 $436,800 $291,200 $182,000 $119,200 $192,000 $46,400 -$62,800 Club 5 95 Appendix Membership pricing and mix scenarios MODEL 5a $345,280 $100,480 high number of members nedded hard to manage use on a day balance 141% Resident Full-time Part-time Casual Club 224 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total 2 $120 $520 $6,240 $12,480 $14,976 $9,984 $6,240 2 $100 $433 $5,200 $10,400 $12,480 $8,320 $5,200 80 $50 $217 $2,600 $208,000 $249,600 $166,400 $104,000 40 $30 $130 $1,560 $62,400 $74,880 $49,920 $31,200 100 $10 $43 $520 $52,000 $62,400 $41,600 $26,000 49 members/ day $345,280 $414,336 $276,224 $172,640 $100,480 $169,536 $31,424 -$72,160 100% 120% 80% 50% 1 MODEL 5b $290,160 $45,360 lower price balance 119% Resident Full-time Part-time Casual Club 224 Price Number Week Month Year Total Total Total Total 2 $100 $433 $5,200 $10,400 $12,480 $8,320 $5,200 2 $90 $390 $4,680 $9,360 $11,232 $7,488 $4,680 80 $40 $173 $2,080 $166,400 $199,680 $133,120 $83,200 40 $25 $108 $1,300 $52,000 $62,400 $41,600 $26,000 100 $10 $43 $520 $52,000 $62,400 $41,600 $26,000 49 members/ day here studio 1 MODEL 5c $400,400 $290,160 $348,192 $232,128 $145,080 $45,360 $103,392 -$12,672 100% 120% 80% 50% -$99,720 raise price $155,600 balance 164% 224 Price Number Week Month Year Total Total Total Total Resident 2 $130 $563 $6,760 $13,520 $16,224 $10,816 $6,760 Full-time 2 $120 $520 $6,240 $12,480 $14,976 $9,984 $6,240 Part-time 80 $60 $260 $3,120 $249,600 $299,520 $199,680 $124,800 Casual 40 $35 $152 $1,820 $72,800 $87,360 $58,240 $36,400 100 $10 $43 $520 $52,000 $62,400 $41,600 $26,000 49 members/ day $400,400 $480,480 $320,320 $200,200 $155,600 $235,680 $75,520 -$44,600 Club 1 96 Appendix Membership pricing and mix scenarios MODEL 6a $360,880 $116,080 high number of members needed hard to manage use on a day culture too inconsistent? balance 147% 254 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 2 Full-time 2 $120 $520 $6,240 $12,480 $14,976 $9,984 $6,240 $100 $433 $5,200 $10,400 $12,480 $8,320 $5,200 Part-time 50 $50 $217 $2,600 $130,000 $156,000 $104,000 $65,000 Casual 100 $30 $130 $1,560 $156,000 $187,200 $124,800 $78,000 Club 100 $10 $43 $520 $52,000 $41,600 49 members/ day 1 MODEL 6b $305,760 $62,400 $26,000 $360,880 $433,056 $288,704 $180,440 $116,080 $188,256 $43,904 -$64,360 100% 120% 80% 50% lower price $60,960 balance 254 Price Number Week Month Year Total Total Total Total Resident 2 $100 $433 $5,200 $10,400 $12,480 $8,320 $5,200 Full-time 2 $90 $390 $4,680 $9,360 $11,232 $7,488 $4,680 Part-time 50 Casual 100 $40 $173 $2,080 $104,000 $124,800 $83,200 $52,000 $25 $108 $1,300 $130,000 $156,000 $104,000 $65,000 Club 100 $10 $43 $520 $52,000 $62,400 $26,000 $305,760 $366,912 $244,608 $152,880 $60,960 $122,112 -$192 -$91,920 49 members/ day 1 MODEL 6c $416,000 $41,600 here studio 125% raise price $171,200 balance 170% 254 Price 100% 120% 80% 50% Number Week Month Year Total Total Total Total Resident 2 $130 $563 $6,760 $13,520 $16,224 $10,816 $6,760 Full-time 2 $120 $520 $6,240 $12,480 $14,976 $9,984 $6,240 Part-time 50 $60 $260 $3,120 $156,000 $187,200 $124,800 $78,000 Casual 100 $35 $152 $1,820 $182,000 $218,400 $145,600 $91,000 Club 100 $10 $43 $520 $52,000 $62,400 $41,600 $26,000 49 members/ day $416,000 $499,200 $332,800 $208,000 $171,200 $254,400 $88,000 -$36,800 1 97 Appendix Staff cost scenarios Model 1a $115,000 $5,000 base Model 2a balance $55,000 96% Salary $50,000 Salary Weekly Monthly Manager 2 $20,000 $385 $1,667 1 Business Development 2 $20,000 $385 $1,667 1 Host 5 $50,000 $962 $4,167 3 Events Coordinator 2 $20,000 $385 $1,667 1 0.5 $5,000 $96 $417 0.5 $115,000 $2,212 $9,583 balance $5,000 $96 $417 Model 1b $138,000 -$18,000 raise salary here studio $10,000 $192 $833 $10,000 $192 $833 $30,000 $577 $2,500 $10,000 $192 $833 $5,000 $96 $417 $1,250 $5,417 $55,000 $1,058 $4,583 Model 2b $78,000 $42,000 raise salary balance 65% Salary Weekly Monthly Manager 2 $24,000 $462 $2,000 1 Business Development 2 $24,000 $462 $2,000 1 Host 5 $60,000 $1,154 $5,000 3 Events Coordinator 2 $24,000 $462 $2,000 1 0.5 $6,000 $115 $500 0.5 $138,000 $2,654 $11,500 balance -$18,000 -$346 -$1,500 Model 1c $92,000 lower salary $60,000 Days/week Total Weekly Monthly $12,000 $231 $1,000 $12,000 $231 $1,000 $36,000 $692 $3,000 $12,000 $231 $1,000 $6,000 $115 $500 $78,000 $1,500 $6,500 balance $42,000 $808 $3,500 Model 2c $52,000 balance $68,000 77% Salary Monthly $65,000 balance $60,000 $28,000 Weekly balance Days/week Total Maintenance $50,000 Days/week Total 115% Salary skeleton days balance 54% Days/week Total Maintenance $65,000 lower salary balance 43% $40,000 Salary $40,000 Days/week Total Weekly Monthly Days/week Total Weekly Monthly Manager 2 $16,000 $308 $1,333 1 $8,000 $154 $667 Business Development 2 $16,000 $308 $1,333 1 $8,000 $154 $667 Host 5 $40,000 $769 $3,333 3 $24,000 $462 $2,000 Events Coordinator 2 $16,000 $308 $1,333 1 $8,000 $154 $667 0.5 $4,000 $77 $333 0.5 $4,000 $77 $333 $92,000 $1,769 $7,667 $52,000 $1,000 $4,333 $28,000 $538 $2,333 $68,000 $1,308 $5,667 Maintenance balance 98 balance Appendix Staff cost scenarios $65,000 $55,000 skeleton staff Model 4a balance $75,000 54% Salary $50,000 Salary Weekly Monthly 2 $20,000 $385 0 $0 $0 4 $40,000 0 $0 Weekly $1,667 1 $10,000 $192 $833 $0 0 $0 $0 $0 $769 $3,333 3 $30,000 $577 $2,500 $0 $0 0 $0 $0 $0 0.5 $5,000 $96 $417 $45,000 $865 $3,750 balance $75,000 $1,442 $6,250 Model 4b $54,000 $5,000 $96 $417 $1,250 $5,417 balance $55,000 $1,058 $4,583 Model 3b $78,000 raise salary balance $66,000 65% Salary $50,000 Days/week Total $65,000 $42,000 skeleton staff + days balance 38% Days/week Total 0.5 $45,000 Monthly raise salary balance 45% $60,000 Salary Days/week Total Weekly Monthly 2 $24,000 $462 0 $0 $0 4 $48,000 0 $0 0.5 $60,000 Days/week Total Weekly Monthly $2,000 1 $12,000 $231 $1,000 $0 0 $0 $0 $0 $923 $4,000 3 $36,000 $692 $3,000 $0 $0 0 $0 $0 $0 $6,000 $115 $500 0.5 $6,000 $115 $500 $78,000 $1,500 $6,500 $54,000 $1,038 $4,500 balance $42,000 $808 $3,500 balance $66,000 $1,269 $5,500 Model 3c $52,000 lower salary Model 4c $36,000 $68,000 balance $84,000 43% Salary lower salary balance 30% $40,000 Salary $40,000 Days/week Total Weekly Monthly Days/week Total 2 $16,000 $308 $1,333 1 $8,000 $154 $667 0 $0 $0 $0 0 $0 $0 $0 4 $32,000 $615 $2,667 3 $24,000 $462 $2,000 0 $0 $0 $0 0 $0 $0 $0 0.5 $4,000 $77 $333 0.5 $52,000 $1,000 $4,333 $68,000 $1,308 $5,667 balance balance here studio Model 3a Weekly Monthly $4,000 $77 $333 $36,000 $692 $3,000 $84,000 $1,615 $7,000 99 Appendix Staff cost scenarios Model 5a $190,000 -$70,000 excess days Model 6a balance -$10,000 158% Salary Manager Business Development skeleton staff + excess days balance 108% $50,000 Salary $50,000 Days/week Total Weekly Monthly Days/week Total Weekly Monthly 4 $40,000 $769 $3,333 4 $40,000 $769 $3,333 $0 3 $30,000 $577 $2,500 0 $0 $0 Host 7 $70,000 $1,346 $5,833 8 $80,000 $1,538 $6,667 Events Coordinator 4 $40,000 $769 $3,333 0 $0 $0 $0 Maintenance 1 $10,000 $192 $833 1 $10,000 $192 $833 $190,000 $3,654 $15,833 $130,000 $2,500 $10,833 balance -$70,000 -$1,346 -$5,833 balance -$10,000 -$192 -$833 Model 5b $228,000 raise salary Model 6b $156,000 -$108,000 balance -$36,000 190% Salary Manager Business Development Host Events Coordinator Maintenance 130% $60,000 Salary Monthly Days/week Total Weekly Monthly 4 $48,000 $923 $4,000 4 $48,000 $923 $4,000 3 $36,000 $692 $3,000 0 $0 $0 $0 7 $84,000 $1,615 $7,000 8 $96,000 $1,846 $8,000 4 $48,000 $923 $4,000 0 $0 $0 $0 1 $12,000 $231 $1,000 1 $12,000 $231 $1,000 $228,000 $4,385 $19,000 $156,000 $3,000 $13,000 balance -$108,000 -$2,077 -$9,000 balance -$36,000 -$692 -$3,000 Model 5c $152,000 lower salary Model 6c $104,000 Salary balance $16,000 lower salary balance 87% $40,000 Salary Days/week Total Weekly Monthly 4 $32,000 $615 $2,667 3 $24,000 $462 $2,000 7 $56,000 $1,077 $4,667 4 $32,000 $615 $2,667 1 $8,000 $154 $667 $152,000 $2,923 $12,667 -$32,000 -$615 -$2,667 balance 100 $60,000 Weekly 127% Manager Business Development Host Events Coordinator Maintenance raise salary balance Days/week Total -$32,000 here studio $130,000 $40,000 Days/week Total Weekly Monthly 4 $32,000 $615 $2,667 0 $0 $0 $0 8 $64,000 $1,231 $5,333 0 $0 $0 $0 1 $8,000 $154 $667 $104,000 $2,000 $8,667 $16,000 $308 $1,333 balance Appendix Testimonials As a PhD student at the University of Ballarat I understand how important it is to be aware of trends, ideas and issues from a variety of perspectives, and unfortunately how easy it is to become isolated within particular disciplines, methods, or institutional settings. By working at the Co-Lab I will be able to not only strengthen my own research by getting ideas from others, but will also be better able to communicate and share my research with others. In short, it will help bring my research to life rather than being restricted to an academic environment. In future as I develop commercial intellectual products, the colab concept provides a positive incubation environment that would give me the confidence and practical support required to bring my products to market. If the colab were to develop a trusted brand and positive reputation, it would provide a sound entry point for new businesses and entrepreneurs. David McGinniss PHD, University of Ballarat Co-Lab is the most exciting, artistically and socially invigorating project Iâ€™ve come across. I am definitely keen to be involved in the future, and look forward to seeing where we go from here. 1. Ballarat Co-Lab has the potential to become an environment for innovation, creativity and collaboration for Western Victoria. 2. Visionary Group is looking forward to supporting stakeholders with digital business development, marketing and mentoring. Linda Blake Teacher Ballarat Craig Allan Visionary Group Ballarat Â testimonial August 23, 2013 To Whom It May Concern: I have been involved in working on the creation of the first Ballarat collaborative space project from the start and I feel very proud in being involved in this project. As a Multicultural Ambassador of Ballarat, my community is very important to me. From a perspective of being a professional artist and a photographer I feel the absolute need for having a space that we could all grow into having and sharing. Having lived overseas for a number of years and countries, I saw many sustainable collaborative initiatives working in harmony. Ballarat I believe is in a stage where something like Ballarat COLAB has the best chances of starting up and sustainable survival and I feel this is the right time to involve others in creation of collaborative sharing and nurturing space for not only creatives and the business community but also for the general public. Yours Sincerely, Aldona Kmiec Multicultural Ambassador City of Ballarat | Professional Photographer M: 0433 162 791 | Studio: 03 5331 7105 | www.aldonakmiec.com Â ALDONA KMIEC PHOTOGRAPHY Mobile: +61 (0) 433 162 791 Email: email@example.com Postal Address: PO Box 635, BALLARAT VIC 3353 AUSTRALIA 101 here studio Ballarat is big enough that it has a large and diverse population, but it is not so big that it has a large range of industries and employment options. This means that while there are plenty of ideas and lots of energy here, many have to either commute to Melbourne, set up their own independent businesses, or carry on quietly until new opportunities emerge. This makes Ballarat an ideal location for the Co-Lab concept. The presence of the colab will attract positive attention and build the sense that Ballarat is an attractive place for people who want to be creative, engage with modern ideas, practices, and people. This in turn will help generate and sustain new and modern industries in Ballarat. Appendix Case study for community bonds This is a precedent of community bonds from the Centre for Social Innovation, Toronto, Canada. It has been included because we are interested in aligning our governance and corporate structure to possibilities for community ownership in the future. We understand that this has little precedents in Australia, however see this as an opportunity for further discussion. An excerpt from this book can be viewed here: http://communitybonds.ca/ We have purchased a full copy of this guide to use as a resource. I E R L L A C D A N A S S here studio O 09â€˘ 20 B A $50,000 $10,000 MINIMUM INVESTMENT M I N I M UM I N VES T M EN T M I N I M UM I N VES T M ENT Maturity reached at: Maturity reached at: Maturity reached at: YEARS FROM INCEPTION Y EAR S F R O M I N C EPT I O N Y EAR S F R O M I N C EPT I ON PRIME + 1.75% PRIME + 2.50% 4% UP TO A MAXIMUM OF 10% 102 I E $50,000 10 36 R â€˘ R D O L L A E S 2 D S A SERIES S R C E 15 5 F I XED UP T O A M AXI M UM O F 1 1 % The intention is to commence Principal repayments anticipated Principal repayments anticipated principal repayments within the first four years from inception to commence following the Maturity Date of Series A Bond on an ongoing basis with the option to roll the investment forward Appendix Case study for community bonds When we saw the property that would become CSI Annex, it was love at first sight. DEC 2009 Here is how a small nonprofit purchased, funded, renovated and occupied a building in 19 months, while raising $1.4 million along the way. 28 In the squeeze between Christmas and New Year’s Eve, Tonya Surman secured a meet- DEC 2009 ing with Mike Williams, head of the City of Toronto’s Economic Development and Culture Department. He was thrilled with our shared space model and suggested the possibility of a loan CSI formally pitched the folks at Economic Development and Culture for a loan guarantee. JAN 2010 guarantee from the City. MEANWHILE The banks started competing for the mortgage, acting as if the loan guarantee FEB 2010 The Economic Development and Culture Department brought the proposal to the was a sure thing. We hoped it would be. Finance Department, which approved the plan. MAR 2010 The removal of an oil tank delayed the environmental MAR 2010 The Finance Department presented the proposal to the approvals - which turned out to be a blessing in disguise since we needed the extra time. We Executive Committee at the City of Toronto, which recommended FEB 2010 Our Investment Package was ready and we began to formally market our Community Bond. that the plan go to the council. agreed to a $5,000 payment to extend the closing date until May 18. The proposal for the loan guarantee went before Toronto’s City Council and was approved - The building deal closed with $1.4 million in Bonds sold. MAY 2010 MAY 2010 Series A and Series B bonds sell out! MAY 2010 what a night! JUNE 2010 Time to celebrate! More than 600 people came to a blow-out party at the here studio This is a page from the Centre for Social Innovation’s guide book to Community Bonds. It describes how the centre raised $2 million toward the purchase and renovation of a 3350 sq m building in just eight months. new building. JUL 2010 Construction OCT 2010 begins. Unofficial opening. Tenants began moving into the 2nd floor of 720 Bathurst. MAR 2011 We reach our $2 million target with the sale of Series C bonds just before the the RRSP season ends. JUL 2011 Construction is complete. JUL 2011 We bought out our first bondholder - using additional sales of the lower interest Series C bonds 29 to finance the buy out of higher interest bearing Series A bonds. 103 here studio www.herestudio.net