In this business model series, we explore the myHQ Business Model to explain and understand how the Business Model of myHQ is structured and to learn about how myHQ makes money.
Today, we will be discussing the business model of myHQ, a rapidly growing co-working startup, using the Alexander Osterwalder’s Business Model Canvas as a framework. This blog post aims to provide a comprehensive understanding of the company, its founders, and the story behind the inception of this brilliant idea.
myHQ: A Brief Overview
myHQ, a Delhi-based co-working startup, was founded in 2016 by Utkarsh Kawatra and Vinayak Agrawal. The duo recognized a gap in the market for affordable and flexible workspaces that cater to the growing number of freelancers, entrepreneurs, and remote workers in India. As a result, they decided to create a platform that would address these needs by offering a vast network of curated workspaces, along with various additional services and benefits.
The Story of myHQ: From Idea to Execution
The story of myHQ began when the founders, Utkarsh and Vinayak, met at their workplace in an investment banking firm. As they spent long hours discussing their entrepreneurial aspirations, they noticed the lack of affordable, high-quality workspaces for people like themselves, who were starting their entrepreneurial journey.
After conducting extensive market research, they discovered that there was a massive untapped market of freelancers, entrepreneurs, and digital nomads in India. This group was growing rapidly but lacked suitable workspaces. Most existing co-working spaces were either expensive or failed to provide the required flexibility and facilities. This observation led to the inception of myHQ.
Armed with a clear vision, Utkarsh and Vinayak began building their startup by partnering with various cafes, restaurants, and other commercial spaces. They offered these businesses a chance to monetize their underutilized spaces by converting them into fully-equipped workspaces. In return, myHQ would bring in potential customers who would benefit from a flexible, cost-effective, and comfortable working environment.
As the myHQ community grew, the founders expanded their offerings by including value-added services such as events, workshops, networking opportunities, and access to resources and tools for their users. Today, myHQ is a thriving platform that has disrupted the co-working industry in India by providing an unparalleled experience to its users.
The Business Model Canvas of myHQ
To better understand the business model of myHQ, we will dissect it using Alexander Osterwalder’s Business Model Canvas. This tool is a strategic management and entrepreneurial template for developing new or existing business models. It is divided into nine segments, which we will use to analyze myHQ’s business model systematically.
- Customer Segments
The primary customer segment of myHQ consists of freelancers, entrepreneurs, digital nomads, and remote workers. This target market is diverse, ranging from tech professionals and designers to writers and consultants. Additionally, myHQ also caters to corporate teams and small businesses that require flexible workspace solutions.
- Value Proposition
myHQ’s value proposition is centered on providing an affordable, flexible, and high-quality workspace solution. Their workspaces are thoughtfully designed, offering a comfortable environment that promotes productivity and collaboration. Furthermore, myHQ offers a strong sense of community, allowing users to network, learn, and grow together.
- Channels
myHQ primarily utilizes its website and mobile app to reach its target customers. These digital channels allow users to explore available workspaces, book a seat, and access various resources and tools. Additionally, myHQ engages in digital marketing efforts, leveraging social media platforms, content marketing, and search engine optimization to generate awareness and drive traffic to their website. Offline channels include partnerships with local businesses, event sponsorships, and participation in startup conferences and networking events.
- Customer Relationships
myHQ places a strong emphasis on building and maintaining long-lasting customer relationships. They achieve this by offering personalized customer support, access to a vibrant community of like-minded professionals, and organizing events and workshops that foster collaboration and learning. Users can also provide feedback and suggestions through the myHQ app, which helps the company continuously improve its offerings and user experience.
- Revenue Streams
myHQ’s primary revenue stream comes from subscription fees paid by its users. They offer various subscription plans to cater to different customer needs, including daily, monthly, and quarterly passes. Additionally, myHQ generates revenue from event ticket sales, advertising, and affiliate partnerships.
- Key Resources
Some of the key resources for myHQ include their network of workspaces, technology infrastructure (website and mobile app), and a skilled team that manages operations, sales, marketing, and customer support. myHQ also relies on partnerships with cafes, restaurants, and other commercial spaces to expand their workspace offerings.
- Key Activities
The key activities of myHQ involve identifying and curating potential workspaces, onboarding new partners, managing user subscriptions, and providing customer support. Moreover, myHQ continually invests in marketing efforts to acquire new customers, and organizes events and workshops to strengthen its community and add value to its users.
- Key Partnerships
Strategic partnerships play a crucial role in myHQ’s business model. These partnerships include collaborations with cafes, restaurants, and commercial spaces that offer underutilized areas, which can be transformed into workspaces. Furthermore, myHQ partners with various service providers, such as software companies and business consultants, to provide additional resources and tools to their users. They also collaborate with event organizers, industry experts, and local businesses to organize workshops and networking events.
- Cost Structure
myHQ’s cost structure primarily consists of technology development and maintenance, marketing and advertising expenses, event organization costs, and employee salaries. Additionally, they incur costs related to workspace operations, including rent, utilities, and maintenance.
To illustrate the success of myHQ’s business model, let’s explore a few examples:
- An independent graphic designer who needed a cost-effective workspace with reliable internet, a comfortable environment, and access to a community of like-minded professionals. Through myHQ, she found a workspace that suited her needs, enabling her to focus on her work while also benefiting from networking opportunities and skill-building workshops.
- A small startup team that required a flexible workspace solution to accommodate their growing team. With myHQ’s monthly subscription plan, they were able to secure a dedicated workspace at a fraction of the cost of traditional office rentals, allowing them to invest more in their business operations.
- A restaurant owner with a large, underutilized space during daytime hours. By partnering with myHQ, the owner was able to monetize this space by offering it as a co-working environment. As a result, the restaurant saw increased foot traffic and revenue during non-peak hours.
By dissecting myHQ’s business model using Alexander Osterwalder’s Business Model Canvas, we have gained a comprehensive understanding of the company, its value proposition, and the key components that contribute to its success. myHQ is an excellent example of how innovative startups can disrupt traditional industries by identifying gaps in the market and offering solutions that cater to evolving customer needs. The story of myHQ serves as an inspiration for aspiring entrepreneurs and a testament to the power of persistence, innovation, and a customer-centric approach.
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