2 builders who never spoke to each other

Gather ten committed people before you spend

Assemble the group first and let their money open the doors, because gathering people is harder than renting the room and a customer who funded you is an owner rather than a buyer. Ten people who would genuinely pay for regular access is enough to start, and asking them what they want keeps you from buying things nobody wanted.

The method

1. 01

   You do not need your whole future customer base before you start: ten people is enough, as long as they are hooked on each other's company and would genuinely pay for regular access rather than merely liking the idea.

2. 02

   If your customers fund the launch then your customers are your investors, which leaves you owning the business outright and accountable to them instead of to a financier.

3. 03

   Question the group you have gathered instead of guessing at their needs, which has the side effect of keeping you from buying things none of them wanted.

4. 04

   Get customers physically involved in building the thing, with a painting session or a furniture assembly session, so they stop seeing themselves as buyers of a serviced product.

5. 05

   Cap signups low to begin with and lift the cap only as real interest turns up, rather than opening unlimited places on day one.

What it returned

• Hillman's threshold is ten committed people, and he draws the distinction between people interested in coworking and people who would happily hand over money for it.

• Hillman says designing and making the place together changed how members thought of it, from something serviced for them to something they were expected to keep building.

• FailCamp RSVPs were capped on its Upcoming page, with the limit to be raised depending on the demand that showed up.

• Hillman held Kickstarter back as an option until the Indy Hall expansion budget was structured.

Sources

• We want your failures.Alex Hillman · dangerouslyawesome.com · 2008-06-01
• How Much Does It Cost To Start A Coworking SpaceAlex Hillman · dangerouslyawesome.com · 1) How much does it cost to start a coworking space · 2012-01-01
• Not a Joke: Indy Hall v3.0 - The Future of Indy HallAlex Hillman · dangerouslyawesome.com · Financing · 2012-04-01
• wine, coworking, and the “People at Work” SummitAlex Hillman · dangerouslyawesome.com · We’re a truly international community. · 2016-02-01
• The 1903 Tour de FranceHarry Dry · Marketing Examples · The 1903 Tour de France · undated