
By Taylor Sisk
Staff Writer
Carrboro Creative Coworking will close its doors at the end of September, founder and owner Brian Russell announced on Tuesday. The shared workspace has been in operation at 205 Lloyd St. since October 2008.
“At this time I have no plans to continue operations with CCC, although I believe in coworking as strongly as ever,†Russell wrote in a statement on his blog, “and I’m pursuing options that would continue my involvement in the coworking movement.â€
Russell said Carrboro Creative Coworking was established as an affordable environment for workers who have “escaped traditional nine-to-five jobs,†most particularly freelancers, telecommuters and entrepreneurs. He has described the business as a “professional shared workspace with a coffee shop vibe.â€
“Unfortunately,†Russell wrote, “the costs of my current coworking business model have turned out to be higher than the potential maximum revenue.â€
The number of coworkers Russell has been able to recruit has been fewer than hoped, he said, due to a reluctance to commute from outside the immediate area and a poor economy that has reduced personal and business budgets.
The floor plan of the Lloyd Street building was also an issue. Russell’s original business plan called for an open floor plan, a bullpen-type environment inspired by start-up companies in big cities that set up shop in warehouses, though on a smaller scale. Such an arrangement, Russell said in a Wednesday interview, “allows for collaboration and thus more productivity.â€
Russell points to Durham as a mid-sized city with “these amazing buildings†being used as innovative work environments.
“But when I was starting CCC up, that kind of office space wasn’t available in Carrboro,†Russell wrote.
In order to qualify for a Town of Carrboro revolving loan, he was required to find a place in downtown Carrboro, and settled on the Lloyd Street location.
“In retrospect, that was a mistake,†he wrote, “and I take full responsibility for it.â€
A floor plan comprised of two common areas, a break room and several small offices “dictated a major change to my business model, forcing me to be in the office lease business.â€
Under this revised model, Russell said, more square footage was desirable, and he considered growth scenarios in which he would be selling executive office space, with coworking on the side. “Unfortunately, the economy worsened, and the startup capital necessary to fund a large-scale expansion became scarce.â€
Carrboro Economic and Community Development Director Annette Stone said on Wednesday that the CCC loan is secured with real property: “We do have backing for it.â€
Russell said he hopes to continue to pursue means of providing sustainable office space, but that his first priority must be providing for his family. He also said he intends to write about what he’s learned in hopes of better informing those who explore coworking opportunities.
What a tragedy! The town of Carrboro should let him stay there for free, it is not fair he has to pay rent.
isn’t that similar to New Orleans former Mayor Ray Nagin becoming a “disaster consultant”?
Mr. Mayhew, your comment is a little unfair. The failure of a small business in Carrboro and the disaster in New Orleans are hardly the same thing. And Brian isn’t the first smart, hardworking person who’s had a small business that failed. He made some mistakes and admits as much. I wish him nothing but success in whatever he does next.
(I am the advertising director of the Citizen. This comment is solely my personal opinion.)