Proptech Growth Strategy Brief Newsletter
Nooka Space Growth Strategy
Nooka Space is network of smart proximity office spaces designed to be rented by people who work remotely and need more extra space to get work done.
"Grain of Salt" Warning: I write this newsletter with an outsider's understanding of the business in question. I am likely to make mistakes, leaps of judgement, and assumptions - that's what makes it fun.
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Nooka is currently at the pre-order stage, so I'm focusing here on what they should do once they're in market
COVID's has forced the market to accept that remote work is here to stay. One of the biggest market rifts COVID has caused is making us rethink what "the office" means and how it might be reshaped to meet fast-shifting demand in a remote-friendly world.
While the commercial real estate market may dominate headlines, the home office transformation will likely change more people's day to day lives. The sudden change to working from home has left many families at a loss for how to adjust their living environment and finances to accommodate work.
Enter NookaSpace. They offer fully furnished backyard office pods as-a-service for a price comparable to membership at a local coworking space. They're even networked together, so you can book other Nooka's, and rent out your own for some extra cash.
Nooka opportunity lays at the intersection of two of real estate's toughest problems for consumers - flexibility and finance. Unless you can repurpose an existing room, homes are very expensive and difficult to change. This means homeowners with little extra space are out of luck if forced to work from home. Nooka tackles this by offering modular space that can be used on vacant land, and a finance model that makes it affordable and debt-free for consumers.
The renting model also gives Nooka a margin multiple not afforded to traditional builders. They can build something once, and rake in cash on it far into the future, with multiple renters as well. At first glance, their base model could produce $43,680 in revenue in its first 10 years, likely well over its construction cost.
Nooka's revenue model seems to be straight forward high ticket e-commerce - get renters and buyers to buy their way into a Nooka.
Here's how I think NookaSpace could unlock new levels of growth.
Backyard studios and offices have long existed, but were often limited to crafters and academics. With remote work proliferating fast, we're working within a newly expanding market segment here. But we're also likely working with geographic constraints due to the infrastructure and density required to make Nooka's network model work.
To acquire leads and buyers, we'll use a two-pronged approach. First, we'll aim to dominate the keyword "backyard office" by optimizing the homepage's SEO, and then build location specific landing pages targeting the keywords "backyard office in [City]". There's low competition, and growing demand.
Once landing pages are in place, we'll want to combine a Facebook ads campaign to build a waiting list within a given city, followed by a geo-targeted PR and email campaign paired to create buzz and to convert some of those waitlisters into buyers.
Convince the city to allow a Nooka to be placed in a busy public park, and get coverage from local newsletters and papers, and some may even roll up into regional and national coverage as well. All those backlinks will reinforce our SEO strategy as well.
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Buildings and real estate are sexy. Finance and permits are not. So we need to knock down as many walls that stand between potential buyers and a sale.
First, we need to make the pre-order flow more like a sales process. Users should be able to compare and view different model, purchase, and financing options in aa beautiful, engaging way as they're buying, rather than being taken off screen for every variable.
We should also create options to make the most difficult part of building on your property easy - permits and zoning. Since we're already rolling out geo by geo, we can build in an automated permit application flow to add extra value.
The digital social lives of remote workers and the rental model Nooka is pursuing is perfect for a referral program. Offer users 5-10% off their monthly price for every friend they refer, and give the friend the same discount. Over time, this will help us land and expand throughout our launched cities without continuing to spend on acquisition post launch.
That's it for today. Thanks for reading!
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