Administrative Models | The Million Dollar Question http://blogs.ubc.ca/etec522makerspaces2013/the-...

The Million Dollar Question

Secrets to a Successful Commercial
Makerspace

Administrative Models
No singular administration model for makerspaces exists. The most successful makerspaces Boss, Room,
use a model that best fits the the background of its founders and their goals for the space. Chairs
Specifically, do its founders have the knowledge to take care of day-to-day operations, set up
and run equipment as well as a strong foundation in business strategies and management?
Goal – wise – is the goal to ensure collaboration, trust, and peer creation and administration,
or is the goal to promote an environment of creation, collaboration with a certain element of control?

Commercial makerspaces typically fall into the second goal category. Often commercial enterprises are
accountable to external pressures which may include – having to show a return on investment to funders and
board members, the need to become self-sustainable and profitable in a much shorter amount of time than non-
profit ventures, liability and legal issues surrounding commercial ventures etc. Founders typically have both
business and technical experience, as well as a vision.

Two successful commercial makerspaces – TechShop and MakeIt Labs use a top-down administrative structure. A
third type of administrative structure, more suited to small businesses/community-based makerspaces is a flat
structure.

MakeIt Labs

MakeIt-Labs is owned and operated by Joseph Schlesinger. His background is ideally suited to this type of venture,
given his experience in both IT and business management. He holds a degree in electrical and computer
engineering. In the past he has worked as an IT director/manager and owned/operated his own IT business.

The pros and cons of sole management of a makerspace include:

Pros Cons

· Uniform decision making and strategizing · Business could end up in trouble if

owner/operator unavailable
· Little debate
· Lack of a wider perspective and alternate
· Little time required to make decisions opinions in business management

· Possible reduction of accountability/involvement

of  memberships, which may negatively impact
the collaboration goal of makerspaces

· Requires owner to understand all aspects of day

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Administrative Models | The Million Dollar Question http://blogs.ubc.ca/etec522makerspaces2013/the-...

to day operations and business strategies, which

can be a lot for one person to handle.

TechShop

TechShop uses a retailer style model of administration similar to fitness club chains. The difference is that
TechShop locations are company-owned, not franchises. TechShop’s administrative model is that of a typical large
retailer with an executive management team replete with a CEO, CFO, COO president, vice president etc.; hiring
store (or makerspace) managers and necessary staff for each location. Board members have a mix of experience
related to their respective fields. The president and vice president have extensive backgrounds in science,making,
and hobbyist activities. For more information, click here.

The pros and cons of this venture include:

Pros Cons

· Decision making and strategizing based on · Need to pay salaries commensurate with market
corporate goals and experience, can be high for Executive teams

· Business model and investors demand higher · Business/commercial interests may come to
level of accountability dominate over creative and collaborative goals

· Able to capitalize on business approach and · More of a commercial feel, than a creative,
attract larger investors and corporate independent one experienced in non-profit,
donors/partnerships community driven ventures

Flat Structures

Another popular model, though mostly amoung non-profits, is a small, flat structure. Flat structures are popular
with ventures who have only a few founding members, each with a unique set of skills. In a flat structure, day to
day operations are divided between founders equally, while business development and “maker” tasks (i.e
marketing, accounting, equipment purchasing, educating members) are divided according to founder skills and
abilities. This type of administrative structure may appeal to commercial ventures started by 2-4 people.

Pros and Cons of this model include:

Pros Cons

· A variety of perspectives on business · May not have uniformity in decision making. 

development Differences in opinions may lead to delays in
important decisions
· Split duties according to expertise, so no one
person gets overwhelmed, or needs to “know-it- · Unclear structures may make it confusing for

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Administrative Models | The Million Dollar Question http://blogs.ubc.ca/etec522makerspaces2013/the-...

all” members to identify who to turn to for specific

requests.
· If one owner/operator is unavailable, there is
another person to turn to · Profits have to be split

Discussion: Above, we only briefly describe 3 basic types of administrative models. Each model is influenced by
the expertise of the administration, business goals and their pros and cons. How would you expand on the above
analysis? What other business models would you suggest for commercial makerspaces? Should other factors, pros
and cons be considered?

Discussion Summary: The ETEC522 2013 Winter Term 1 cohort discussion brought up another type of
administrative model commonly found among non-profit makerspaces. This model is similar to a co-op model
where all members have a say in the administration and running of the makerspace. In a commercial makerspace,
this could pose some administrative problems, as profits would have to be shared with all members of the co-op
and making key decisions would have to wait until co-op meetings. However, non-profits have shown great
success with this model, as members are more involved, and consequently more committed to the success of the
makerspace.

Please view the cohort experience in the comments below. If you are accessing this OER after November 3, 2013,
you are welcome to further contribute to the discussion.

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