Tag: customer service

Aticco is one of those interesting coworking growth stories which tells us that there is place for independent big players aside of WeWork or Spaces. Aticco is a born and raised coworking firm in Barcelona; a 3 years old brand that has managed to open 6 coworking spaces, around 25.000 m2 all together and without VC investment. We have interviewed Franz Pallerés, the Co-founder and Chief Operations Officer of Aticco, to find out more about its story of success and his future plans. Franz Pallerés will also be speaking at Coworking Europe 2019 in Warsaw on November 13-15th.

Hi. Can you tell us about the story behind Aticco ? What is your positioning?

Aticco was born precisely in another coworking space. I was the space manager and my two partners were clients there. Having both points of view, we realized that if we focused on customer service and excellence in the management needed, it was an improved model. From there we began to imagine the space we wanted to create. We found an incredible attic in downtown Barcelona and we found it to be the perfect place to start this adventure. The support and confidence of the first coworkers were essential for us to move forward. Three years later we look around and we are very proud of what we have built. Aticco are not just working areas. Together we have generated an innovative ecosystem where we collaborate, learn, and grow.

The support and confidence of the first coworkers were essential for us to move forward.

We’ve read that the Coworking offering in Barcelona grew by 23% just in the last 6 months of 2019. How do you explain the boom? 

Barcelona has established itself as a business and investment hub in Europe. The arrival in the city of large multinationals proves it. It has everything a company (startups and corporates) wants: qualified employees, investors, fertility for growth, quality of life (climate, gastronomy, environment…), and good connections with the rest of the world. As a result, the demand grew in the last year and forecasts indicate that it will continue to do so. And on the other hand, coworking spaces are perfect to house these companies. Faced with the traditional real estate offer, we offer flexibility of growth without permanent conditions and take care of all efforts, design training activities, organize meetings between entrepreneurs and mentors, celebrate events to have fun and connect with other people… And all that helps companies focus 100% on their project, have more opportunities for growth because of the connections that are created and strengthen the bond of their workers and their motivation. That is why there is an increasing demand for flexible spaces in the market.

Are you accommodating startups and freelancers, mainly, or other tenants profiles?

We have always believed that the combination of companies of different sizes and structures benefits fertility and environmental connections. The diversity of business models increases opportunities for collaboration. For example, freelancers or small businesses exchange services with each other, and learn the financing and investment processes of startups; early startups see the development of those that are already in a high growth phase and can sense the following challenges that they will have to face; large structures need to inspire and retain the talent of their team and they get it through contact with other profiles that complement them.

In recent months we have had an increase in large corporations that are committed to entering flexible spaces. And it is not just for the ease of management and the options to continue growing without rigid conditions. But because of the enrichment that gives them at the level of human resources and brand value, being within an innovative ecosystem.

Freelancers or small businesses exchange services with each other, and learn the financing and investment processes of startups; early startups see the development of those that are already in a high growth phase.

You grew from 1.000 m2 a few year ago up to 25.000 m2 and six buildings today. Did you simply benefit of the strengthening of the market demand or has it to do with a home-designed approach you had?

When we started, our initial plan was 1,000 m2 and we dreamed of expanding to 2,000 m2 after a year. But the levels of occupation that we achieved within a few months indicated that there was a high demand and that the community also liked what we offered and the atmosphere of closeness and family there was. Our coworkers have been the best ambassadors of the brand. This added to the fact that the big operators had not yet arrived in the city, made us enjoy a certain advantage. And we bet on the constant growth although that made us assume many risks. It has been a mix of being in the right place, at the right time, offering quality service and constantly evolving according to market needs.

Our coworkers have been the best ambassadors of the brand.

You compete nowadays at the same levels in terms of size and number of members as the big international brands like WeWork or Spaces, who have locations in Barcelona. Your thoughts on that?

In the current context of Barcelona, that statement is a reality. Knowing that in terms of financing we are infinitely smaller, on a daily basis we compete with them in all fields. Both in target, as in the search for new locations, the commercialization of leads, the processes of HR… The resources we have are smaller but the end result, after much effort and dedication, is that we fight to convince the same audience and offer the same level of demand in our spaces. We have to be creative and resourceful to get it. And I think that makes us value more every lead that transforms into a new coworker. We are David vs. Goliath of the flexible spaces of Barcelona!

The resources we have are smaller. We have to be creative and resourceful to get it.

How about the funding. You didn’t raise VC money nor have you a big international company behind you, do you?

3 years ago we raised 110 k of friends and family, and 1 year ago we raised 700 k in a small round led by different family offices in Barcelona, we don’t have VC money nor we are backed/owned by a real state company, we had profits since we opened 3 years ago and it helped us grow organically and maintaining control of our company.

Would you say that independent brands can play on the same ground as the big international coworking names in any city?

I personally think that the big brands are slower and therein lies the opportunity of the smaller operators. For example we have seen it in negotiations with buildings or potential customers. Our decision making is faster and allows us to take better advantage of the situation. Another important point is flexibility. Big brands work almost like franchises, where the same model that has worked in other cities is incorporated. That on the one hand is good, because the whole system is very automated, but on the other hand, changes or adaptation to the environment is worse.

The local operator always has an advantage because of the knowledge of the environment. But you have to know how to use it. And finally I think that the commitment of the workers, loyalty and motivation with the project, are easier to maintain in not so systematized structures.

Our decision making is faster and allows us to take better advantage of the situation. Another important point is flexibility.

What about your plans for the rest of Spain?

We plan to open very soon our flagship in Madrid, it’s scheduled for Q1, 2020.

Do you have any projects regarding the opening of new locations in Europe?

Yes, we had Lisbon in our scope for a while, so soon you will find us there. We are still looking for new places where our community can grow. Smart cities committed to change, welcoming innovation hubs that will challenge the future.

Based in Stockholm, Skanska Commercial Development Europe counts among the biggest Real Estate Development company in Europe. Skanska owns Business Link, a fast growing coworking brand in Central and Eastern Europe (CEE), currently operating 5 locations, in Poland and in the Czech Republic. We have interviewed Jaroslaw Bator, Managing Director at Business Link & Business Development Director.  Jaroslaw will be a speaker at the upcoming Coworking Europe 2019 conference, to take place in Warsaw, on November 13-15.

Hi Jaroslaw. Can you introduce Business Link to us?

The Business Link brand was created in 2011, based on the Academic Entrepreneurship Incubator Foundation – an NGO supporting Polish entrepreneurship. The growing scale of the project sparked Skanska’s interest, which in 2017 together with the Foundation as a joint venture, developed the concept much more boldly and directed it to professionals, who expect the best locations, a chique design and perfect customer service. Currently, Business Link is a brand wholly owned by Skanska, an unparalleled model of cooperation between a key developer and an operator of flexible work spaces.

You have plans to open up a total of 50.000 sqm of coworking space in Central Europe. Is the region ready to absorb such an increase?

The attractiveness of the CEE region has already attracted many players in the flexible work space sector. We are slowly beginning to observe market segmentation. We found our niche within – remarkably designed and operated spaces. Therefore, at present, our priority is to further professionalize our current locations, rather than aggressive expansion. Nevertheless, we’re carefully monitoring other CEE markets, noticing in them potential for further growth, fuelled primarily by the professionalization of personnel and increasingly frequent decisions to base business operations in these countries.

We are slowly beginning to observe market segmentation. We found our niche.

Why did a major regional Real Estate operator like Skanska jump into the coworking business directly?

Every enterprise expecting dynamic growth on the market needs an ambitious strategy and to adopt emerging trends to achieve business success in a changing world. Investment in a new, rapidly growing real estate segment seems to be the natural step forward. Additionally, flexible spaces complement Skanska’s portfolio. This is not about creating a façade about a wide range of services – Business Link truly responds to the needs of other Skanska customers who, for example, underestimated the number of workplaces required or need to diversify their job portfolio, guaranteeing their employees the ability to choose a place at any time outside of the main office.

This is not about creating a façade – Business Link truly responds to the needs of other Skanska customers who, for example, underestimated the number of workplaces required.

Why did it make sense to Skanska to take full ownership, and not keep it as a joint-venture?

Synergy is the key word here – Skanska decided to take full advantage of cooperation with Business Link to more effectively combine a traditional developer’s space leasing operations with the offer of flex space. It is worth noting here that this situation is not frequently encountered – flex spaces are most often managed by relatively young entities without a well-established organizational culture, which is why we believe that Business Link can gain a lot by observing processes and models.

Flex spaces are most often managed by relatively young entities without a well-established organizational culture, which is why we believe that Business Link can gain a lot by observing processes and models.

Isn’t the move cannibalizing the traditional office long term lease market you are in too?

Skanska offers excellent space for the entire company in a traditional lease formula. As Business Link, we supplement this portfolio by providing a more flexible product that can be used as the main office – a solution chosen by small companies, as well as larger teams exceeding a hundred people. An office such as this facilitates communication and enables efficient work coordination, whilst guaranteeing excellent conditions for all employees. We can also offer our clients a design office – used only for a specific time or an office dedicated to remote work outside the company’s main office. Diversification of office space within one organization is one of the most important office trends. Users of such a model are companies wishing to offer more flexibility than the one resulting from the possibility of remote work, e.g. from a home or a cafe.

Diversification of office space within one organization is one of the most important office trends.

What is “coworking 2.0” (name coined in some of your communication material)? Some other players would call themselves business center or serviced office…

Coworking today – in business terms – is an outdated model. Quite a bold statement, but reflected in the space designs of many players in this market. Please note that we can rarely find only open-space spaces or spaces only split up into private offices. Flex space is a model that combines these two formats. It is therefore a balancing act to allocate types of workplaces within the operator’s space – on one hand, in each location, responding to local demand, and on the other hand – ensuring financial viability of the location. It is difficult to build a community without having a penny.

Coworking today – in business terms – is an outdated model. Quite a bold statement, but reflected in the space designs of many players in this market.

You now speak a lot about ecosystem, engagement, green surroundings… Are hospitality and service more important than technology and facility, nowadays?

Business Link today, above all, we think, has the largest customer service team on the market, providing comprehensive support and service at the highest level. Our offices are located in buildings that meet the highest environmental standards, and the design and equipment offered to customers allows for the enjoyment of green surroundings – from the walls, covered with reindeer lichen, affecting the humidity of the air, to green terraces, guaranteeing rest among greenery in the heart of the city . We don’t try to be the driving force behind our clients’ free time at all costs – we focus on quality, not quantity. We will sooner choose a live film music concert, rather than a mentoring/educational event so popular on this market. We strive to give tools that will allow our clients to organize the work and leisure of their employees at their own discretion.

We strive to give tools that will allow our clients to organize the work and leisure of their employees at their own discretion.

The real estate world is full of the WeWork name. How do you position yourself as opposed to that kind of  big international player? 

Business Link offers customers splendidly designed prestigious spaces with an impeccably prepared customer service team, the most numerous on the market. The key to our market success is an individual approach, investing in the professionalism of the team, and responding effectively to the needs of small and large companies. The Business Link strategy is based on building strong business foundations on local markets in Central and Eastern Europe (currently 4 locations in Poland, and 1 in the Czech Republic). We prefer to measure our success with customer satisfaction rather than with geographical coverage. This specific specialization allows us to cater to the needs of the market that we know perfectly well.

We prefer to measure our success with customer satisfaction rather than with geographical coverage.

What are the differences you see between Poland, the Czech Republic and the situation of coworking in Western Europe?

In the real estate segment, including office space, the markets of Central and Eastern Europe are still emerging markets. The stability of these markets, proven during the recent financial crisis, makes them a natural place for investment, guaranteeing high rates of return. The Western European market is more saturated, and some natural market processes – such as the fulfillment of regional demand – having inevitably appeared there before. In the Central and Eastern European markets, in the segment of flexible offices, Business Link is a precursor of the network approach, allowing for the creation of business synergies amongst the large regional cities. At the same time, we’re observing how increasing supply causes gradual segmentation of the market, allowing to meet the needs of various types of customers.

Are your plans limited to Central Europe or do you look beyond?

Our roots and specialization lie in the CEE region, which is why we would rather stay in our comfort zone.