[hackerspaces] Hackerspace business plan

[john arclight]

Because someone's name usually has to be on the lease, I think a plan
is very valuable to have. For us (only 5 core members, lots of
"sporadic" members), it consisted of a shared Google spreadsheet where
we outlined all of our expenses:

1. Rent  ~$850/month (1,025ft^2)
2. Insurance ~$100/mo (Required by landlord)
3. Electric ~$75/mo
4. Internet ~$60/mo (yay commercial rates...not!)

Of course, there were move-in and build-out expenses, which got broken
up and paid as agreed on.  People who wanted personal improvements
(i.e. shelving just for their project or whatever) paid for them out
of pocket.

Our reserve is in the form of the small core having enough cash to
stick in out for 3+ months if one member moved/got hit by
meteorite/etc.

For a larger group where the funding comes from 20+ members paying
smaller amounts, it's definitely important to do some research (i.e.
start a mailing list/forum) and verify how many people will be willing
to pay in and what they expect. It is equally important to pad that
enough to create a "slush fund" for emergencies/etc.  And with a
larger group, you should probably create a budget for the improvements
ahead of time, since it's cumbersome to put every little expense to a
vote.

And of course everyone paying money needs to be able to look at where
their money is going.  Posting the financials on a board in the shop
or putting them on-line somewhere should be done.

Other than collecting dues/rent money, an automatic "house tax" on
revenue-generating activities is a good way to keep funding up. This
way, you can have whatever third parties you want put on events or do
projects or whatever, and you just agree on a fee or percentage for
the space to collect out of it.


Arclight
http://shop.23b.org


On Mon, Jun 28, 2010 at 8:15 AM, Matt Joyce <matt at nycresistor.com> wrote:
> I think having a clear and transparent view of finances for those that want
> to see them is valuable and important.  Also demonstrating a business plan
> is less about the plan or the organization philosophically, and more about
> "How serious are you?  How much thought has been put into this?"
>
> Hackerspaces are an investment not just in terms of money, but more
> importantly time.  there's no reason on earth someone would not want to have
> their mind put at ease before commiting to it.
>
> A business plan can go a long way torwards that.  I hope that as you proceed
> you document this all and make as much of it as you can available.
>
> On Jun 28, 2010 11:09 AM, "Far McKon" <farmckon at gmail.com> wrote:
>
> Hive76 took the planning model a lot of cooperative housing and studios
> take.
>
> 1) Membership should pay the bills, + 5-10% extra to slowly accumulate
> for damage, improvements, and emergencies.
>
> 2) By 6 months, you should have 3 months of 'reserve cash' to pay
> bills. IE, if everyone gets hit by a meteor,
> there should be cash on hand for 3 momths of operation. You should
> always have that reserve, and if you use it.
> refill it before spending other 'emergency' cash.
>
> 3) Lights and Rent should be covered by membership. New
> projects/equipment by pledge drives or net income classes.
>
>
> The above is a very common model of housing cooperatives, and shared
> workspaces, and has worked very well.  That said, Hive76 has barely
> made those goals. But they are do-able goals, and easy to explain and
> agree on.
>
> hack on,
> - Far McKon
>
>
> http://www.Hive76.org  "Making things awesome,  making awesome things!"
> http://www.FarMcKon.net "Creatively Maladjusted"
>
>
>
> On Mon, Jun 28, 2010 at 10:57 AM, Adam D Bachman <adam.bachman at gmail.com>
> wrote:
>> I was going to...
>
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