1. The RookInterviews done before class: 131 total (14 this week)
Carrie Denning Veronica Stamats Elisa TagliacozzoVirginia Calkins
A membership-model network of physical spaces for heads-down focus and like-minded
buzz.

2. The Rookies
Carrie, MBA, urban planning, hustler + networker + optimist +
extremely naïve member of the team + financial error monkey
Veronica, Junior, architecture major, hacker, the devil’s advocate +
enemy of the People’s Republic of San Francisco
Virginia, MBA, architect/FBI agent, hustler + visionary + Chief Realistic
Officer + Financial Architect
Elisa, CEE master’s, entrepreneurial wizard, hacker + hustler + boss

3. 3
Original Hypotheses
There are existing problems with the real estate in which people work/focus/meet beyond their office,
and we have a solution for it – The Rook

4. 4
Original BMC

5. 5
Lively
Buzz
Sanctuary
• functional work spaces for a gradient of needs → quiet, buzz,
meeting/event space
• Excellent food and beverage
• Membership provides free wifi, printing, coffee, tea, and water
Meeting space
energy from the street
First MVPs – We started broad, but with a big vision

6. 6
First MVPs – We started broad, but with a big vision

7. 7
The Spectrum: Love to Hate
Love Meh
Dumbest
thing I’ve
ever heardMaybe!
“I don’t want to walk more
than 20 minutes to use the
space”
“This is a godsend”
“my dreamspace”
“I’d pay $150 a
week for this”
Didn’t care until he realized
the travelling perks we would
offer.
“Her ideal
workspace would
be free and she
would be very
cautious to pay for
a space that she
could have at
home”
"I am already a member of
the Battery which serves
my needs for business
meetings and last minute
food reservations”
"yeah, i think i'd pay $100
bucks for that – for an
environment where id be
going for meeting people
not working space"
“working from home is
insanely lonely. This
would have been a
total lifesaver.” ‘Transitioning’ people in
between jobs would be
hesitant to take out a
membership because
they don’t know for how
long they are going to be
freelancing or searching
for a job and would
therefore not commit.
I would come for
ergonomic chairs.
Good lighting. Good
desk height. These
issues are important.
Cabin Fever is a big
issue. I have to get
out.
"really interesting, compelling" would pay $25-$50/hr.
Hypothesis Change
"You need more
than just the
absence of a pain"
I'm also not sure
people using the
space for such
different
purposes would
respect each
other enough to
make it work.
“I would be turned off if this
were viewed as exclusive.”
Nellie says she would never
pay for the rook since at
home she already pays for
internet, food and privacy
so there’s no added value.
"this is exactly what I would have looked for"
“what is your differentiator?”
“Intel wouldn't pay for this.”

8. 8
Week 5 BMC
?
?

9. 9
Week 1 – The whole
universe (our TAM was
$225b!!!!)
Week 3: Removed students,
streamlined, but what do we
offer? Can these groups mix?
Week 5: Bye bye businesses
?
Who are our customers????

10. 10
So we’ve learned
a lot… but… we’re
spinning in
circles. How do
we test this???

11. 11
Prototypes – Physical space prototype????
WEEK OF PANIC
You have too much going on
and need to test this.
How the *$&#*# are we going
to do this???!!!

12. 12
Prototype #1 – Container. Go Time.
1. Ikea + Home Depot
2. Borrow roommates boyfriend’s
car. Use MBA skillz to fit giant red
chairs in car
2. Make biz cards,
staple chocolate to
them. Note for future:
Don’t leave chocolate
in sun. Biz cars
smeared in chocolate.
4. Pop up shop at
the container →
our first
customer. A
bicycle delivery
guy!

13. 13
Lesson 1: You learn more with real user experiences
than just user speculation.

14. 14
Prototype #2 –There is demand, but hard to measure w/ a 4
hr. pop up. / Next step: longer pop up → Mechanics’
Our first $$$!

15. 15
Feedback from real customers for first 2 pop ups:
WTP exists, we need to understand how to segment our market
Seni: “Free coffee would actually entice me to pay $5
for a coworking session. I'm currently looking at drop in
day rates of $15-25 at coworking joints plus I generally
pay $2 for coffee anyway, so $5 seems reasonable to
me.”
“Drop in fee I think you could charge 25-30 for the
entire day”
“It would be great to have a place like this in SOMA (or
maybe Mission) area which is far from my office but a
hub for a lot of activity so I often have meetings there.
That way I'd have a reliable quiet/comfortable place to
go between meetings or host meetings and I'd be able
to take calls there. A Pac Heights/Cow Hollow location
could be cool too as a better alternative to working from
home for the morning (and if I start commuting to Palo
Alto, that could be even more awesome!)”
I think a tiered fee would be really cool where I
pay $75 - 100/month which gives access to
events and maybe [20 hours] using the space.
Then if I use it more it goes onto a variable
basis. That way people don't get scared by too
high price but also end up paying more if they
use it every day.
would pay but would want to reserve a seat,
how to expense? Can this be tax
deductible?
“I like how this doesn’t feel like an office, it’s beautiful”
“Terrible location! Too far away.”
Learnings:
1. People like non-office settings
2. Locate in a place with more foot
traffic
3. $25 drop in rate
4. Tier pricing

16. 16
Lesson 2: Simplify who the customer is. Find 1 thing
and do it well. Customer discovery never ends.
Week 1 – The whole
universe (our TAM was
$225b!!!!)
Week 3: Removed students,
streamlined, but what do we
offer? Can these groups mix?
Week 5: Bye bye businesses
Week 6-now: Kept these three
groups. Need to hone further.

17. 17
Prototype #3 – The Mechanics’**
**Finally!!
Lesson 3: You are not selling. You are learning.

18. 18
Prototype #3 – PEOPLE!! (60+!!!!!) – revenue in triple digits!!
**Finally!!

19. 19
Feedback from real customers
• “I loved it, great music, cool people, friendly vibe.”
• “The classical music was kind of over the top “
• “it is nice to meet people and learn about other industries”
• “I love the idea of a clean, comfortable place to work that
isn't as stuffy as an office.”
• “For as long as my team is small and it's more
affordable/convenient to use a coworking space, I'd use
something like the Rook”.
• “Personally, I'd like a vibe that was a little more "fun" and
funky -- with different types of seating areas”

20. The Rook Our Job: Provide a cross-functional third space with a true community
Key Partners:
Existing Clubs in
other cities: Reciprocal
membership
Underutilized space:
galleries, pop up space
Suppliers:
F&B (Food and
Beverage), cleaning,
property management
Partner w/ Companies
Brokers
Landlords
City Planning depts
Pop Upsters/Storefront
Mechanics
Key Activities:
Design/Construction:
a physical space
Operations: warm and
friendly staff; reliable,
great F&B; clean,
functional website
Key Resources:
Human: familial staff
Physical: space,
rotating exhibits/art,
F&B, library, louder
space, bar, meeting
rooms, phone nooks
Financial: CapEx
construction costs, rent,
operating costs
Value Propositions:
Networking of interesting
people, sense of
community (but not
advertised)
Social + Productive
Quiet work
Meeting space
Phone call
Free, unlimited wifi
Free coffee, tea, water
Access to day care
Customer
Relationships:
Attract community
influencers initially
WOM, brand mktg
Acquire HR depts
City development
groups
Channels:
A network of physical
locations
A website to publicize
substitute offerings in
different cities
Companies
Landlords
Customer Segments:
The Wealthy Well-
Educated Wifi Worker
Social Seekers
Business Expensers
Cost Structure
Rent of the building ($2-5/sqft), construction costs ($200/sqft
materials and labor), soft/operational costs, F&B COGS, labor
costs for staff (4 staff, $20/hr), HR, legal (permitting) broker
fees, free coffee/tea/wifi
Revenue Streams
Short-term: tiered monthly/yearly membership fee ($100
and premium $300), mail services, F&B revenue, daily passes,
rental fee for larger spaces
Long-term: increased monthly membership fee, partner with
credit card companies/rewards programs/companies, day
care
BMC Now

21. Financials
Lesson 4: Be realistic +
segment
Monthly Perspective:
Expenses:
Rent $12,500
Labor $19,327
SGA $9,575
Marketing $7,500
Amortization (5 yrs) $22,696
Total Expenses $71,598
Revenue:
Basic Membership (200 members) $150
Premium Membership (100 members) $300
Mail Revenue (100 members) $60
Total Member Revenue $66,000
Visitors Rate (150 ppl/month) $25/day
Visitor Revenue $3,750
Meeting Rooms (200 hr/month) $150/hr
Meeting Room Revenue $30,000
Library (5 events/month) $1,500
Library Revenue $7,500
Event revenue $3,000
(reflects 6 events per month, $25 tickets, 20 outside attendees)
F&B Rent $1,250
Total Revenue $111,500
Profit $39,902
(56% margin)

22. 22
• Lesson 1: You learn more with real user experiences than just user speculation
• Lesson 2: Find our what custSimplify who the customer is. Find 1 thing and do it well.
Customer discovery never ends.
• Lesson 3: YOU’RE NOT SELLING YOU ARE LEARNING
• Lesson 4: Be realistic. Segment.
KEY LESSON LEARNED

23. 23
• Maybe!
• We launched our Founding Members program and 1 person did pay!
• Next steps:
–Testing Partnerships:
•Passion Company
•The Information
• Liquid Space, Storefront
– Week long event: more central, small meeting rooms available, charge drop-in
rate/weekly rate and rate for food
Are we doing this?