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Housing Solutions for International Students
Rodney Trapp, Brittney McDonald & Pablo Arminana
+Overview
1. Our team
2. Business Model 2.1 Vision, Mission & Values
3.Target Marekt
4. Field Research Primary Data: Survey
5. Financial Analysis 5.1 Highlights 5.3 Three Year P&L budget 5.2 Break-even analysis
6. Secondary Data
6.1 Key Trends
Competitor Analysis
8. Implementation Roadmap
9. Risk Analysis
10. Strategic Partners
11. Q&A
+Our Team!
Brittney McDonald (USA)Bachelor's in Management & Leadership
DevelopmentIMBA-UNC Wilmington
MSc in International Bus. Development & Consulting at Novancia Business School
(Paris)Work Experience: Account and Sales Manager for an online food ordering
company
Rodney Trapp (USA)BA-Wake Forest & MA-The American University
IMBA-Universidad de ValenciaMSc in International Bus. Development &
Consulting at Novancia Business School (Paris)Work Experience: 25 years of extensive
experience in the nonprofit sectorExpertise: Business Development, Strategic Planning, Bus. Model Design, Fundraising,
Corporate Relations
Pablo Armiñana (Spain)BSc in Management
IMBA-Universidad de ValenciaMSc in International Bus. Development & Consulting at Novancia Business School
(Paris)Languages: Spanish, English, French, ItalianWork Experience: Community Manager and
Event PlanningPersonal Experience: Involved in a Paris
housing scam
+Business Model
+Vision, Mission, and Values
Mission: EasyLivin Paris is committed to establishing and maintaining an easy process that helps foreign exchange students secure housing in Paris.
Vision: Our vision is to eliminate the problems of securing housing in Paris for foreign exchange students.
Values: Customer Support Relationship Building Trust Positivity Creativity
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International Students
France is anticipated to rise from 12% of the international student population @285,000 to nearly 30% of all students by 2020. (Savills 2012, OECD 2013)
Target Market
+Primary Data: Survey
May 12 & 15, 2014
Emails sent out to international students at Novancia Business School by Solène Dam, International Project Coordinator
26 Responses
9 Questions to determine: Living situation in Paris Any challenges finding housing, types of challenges? Willingness to pay for an online service like EasyLivin Interest in monetary reward for passing on lease
+Survey Data
+Survey Data
8 out of 26 indicated
language as a challenge
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Sample Survey Questions
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Financial Analysis Highlights
16,000€ Investment (8,000€ Foundation, 8,000€ Investors)
Annual Housing Contracts 50/ 500/ 750
Annual Landlord Contracts 0/ 75/ 188
Annual Language School Commissions 12/ 125/ 25
Breakeven Point 243 at in Annual Sales
Profitability upon reaching 490 in Annual Sales
+Financial Analysis – Summary
2014 2015 2016
Total Income 19700 149000 273750
Total Expenses 23035 139360 191000
Net Income -4181 4360 67240
€ (25,000)
€ 25,000
€ 75,000
€ 125,000
€ 175,000
€ 225,000
€ 275,000
3YR Projections
+ Financial Analysis – 3YR Projection
Appendix A
Easy Livin Paris 3-Year Profit and Loss Projection
2014 % of OI 2015 % of OI 2016 % of OI AssumptionsOperating IncomeStudent Housing Fees 7,500 38.1% 75,000 50.3% 112,500 41.1% 150€ fee/student 50/500/750Landlord Finder's Fee - 52,500 35.2% 131,250 47.9% 400-1000€/owner 0/75/188Language School Finder's Fee 1,200 6.1% 12,500 8.4% 25,000 9.1% 100€ fee/student 12/125/250Advertising & Sponsorships 1,000 5.1% 3,000 2.0% 5,000 1.8%Foundation Grants 5,000 25.4% 3,000 2.0% - - 2-3 DonorsAngel Investors 5,000 25.4% 3,000 2.0% - - 4-6 Investors
Total Operating Income (OI) 19,700.00€ 100.0% 149,000.00€ 100.0% 273,750.00€ 100.0%
19,700€ 100.0% 155,000€ 104.0% 273,750€ 100.0%
[42]
Operating ExpensesAccounting and Legal 2,500 12.7% 3,000 2.0% 3,000 1.1%Advertising & Marketing 2,000 10.2% 3,000 2.0% 5,000 1.8%Depreciation 150 0.8% 150 0.1% 150 0.1%Dues and Subscriptions - - 25 0.0% 50 0.0%Insurance 1,000 5.1% 3,000 2.0% 5,000 1.8%Interest Expense 120 0.6% 200 0.1% 200 0.1%Maintenance and Repairs 40 0.2% 100 0.1% 125 0.0%Office Supplies 250 1.3% 500 0.3% 500 0.2%Payroll Expenses 1,440 7.3% 19,200 12.9% 26,400 9.6%Commissions 2,000 10.2% 20,000 13.4% 30,000 11.0% 50€/student apartment scouts 40/400/600Postage 300 1.5% 300 0.2% 300 0.1%Rent 100 0.5% 100 0.1% 100 0.0%Research and Development 50 0.3% 50 0.0% 50 0.0%Salaries and Wages 6,000 30.5% 80,000 53.7% 110,000 40.2% 3 PT/ 2FT + 2 Interns/ 2 FT + 1PT + 5 InternsTaxes and Licenses 560 2.8% 760 0.5% 900 0.3%Telephone 375 1.9% 450 0.3% 500 0.2%Travel 250 1.3% 1,000 0.7% 1,000 0.4%Website Development & Support 1,000 5.1% 5,000 3.4% 5,000 1.8%Web Hosting and Domains 100 0.5% 125 0.1% 125 0.0%Other 1,000 5.1% 1,000 0.7% 1,000 0.4%
Total Operating Expenses 19,235.00€ 97.6% 137,960.00€ 92.6% 189,400.00€ 69.2%
Non-Recurring ExpensesFurniture, Equipment and Software 3,500 17.8% 1,000 0.7% 1,000 0.4%Gifts Given 100 0.5% 200 0.1% 400 0.1%Other 200 1.0% 200 0.1% 200 0.1%
Total Non-Recurring Expenses 3,800.00€ 19.3% 1,400.00€ 0.9% 1,600.00€ 0.6%
23,035€ 116.9% 139,360€ 93.5% 191,000€ 69.8%
Net Income Before Taxes (3,335.00)€ 15,640.00€ 82,750.00€ Income Tax Expense 846 11,280 15,510
(4,181)€ 4,360€ 67,240€
Owner Distributions / Dividends - - 25,000 Adjustment to Retained Earnings (4,181)€ 4,360€ 42,240€
INCOME
Total INCOME
EXPENSES
Total EXPENSES
NET INCOME
+ Financial Analysis – BreakevenBREAKEVEN ANALYSISEasy Livin Paris
AMOUNTS SHOWN IN Euro
SALESSALES PRICE PER UNIT 150.00€
SALES VOLUME PER PERIOD (UNITS) 750.00€
TOTAL SALES 112,500.00€
VARIABLE COSTSCOMMISSION PER UNIT 50.00€
DIRECT MATERIAL PER UNIT 1.15€
SHIPPING PER UNIT 0.90€
SUPPLIES PER UNIT 1.80€
OTHER VARIABLE COSTS PER UNIT 1.20€
VARIABLE COSTS PER UNIT 55.05€
TOTAL VARIABLE COSTS 41,287.50€
UNIT CONTRIBUTION MARGIN 94.95€
GROSS MARGIN 71,212.50€
FIXED COSTS PER PERIODADMINISTRATIVE COSTS 18,135.00€
INSURANCE 1,000.00€
PROPERTY TAX -€
RENT 100.00€
OTHER FIXED COSTS 3,800.00€
TOTAL FIXED COSTS PER PERIOD 23,035.00€
NET PROFIT (LOSS) 48,177.50€
RESULTSBREAKEVEN POINT (UNITS): 242.60
SALES VOLUME ANALYSIS:SALES VOLUME PER PERIOD (UNITS) 75 150 225 300 375 450 525 600 675 750
SALES PRICE PER UNIT 150.00€ $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00
FIXED COSTS PER PERIOD 23,035.00€ $23,035.00 $23,035.00 $23,035.00 $23,035.00 $23,035.00 $23,035.00 $23,035.00 $23,035.00 $23,035.00 $23,035.00
VARIABLE COSTS -€ $4,128.75 $8,257.50 $12,386.25 $16,515.00 $20,643.75 $24,772.50 $28,901.25 $33,030.00 $37,158.75 $41,287.50
TOTAL COSTS 23,035.00€ $27,163.75 $31,292.50 $35,421.25 $39,550.00 $43,678.75 $47,807.50 $51,936.25 $56,065.00 $60,193.75 $64,322.50
TOTAL SALES -€ $11,250.00 $22,500.00 $33,750.00 $45,000.00 $56,250.00 $67,500.00 $78,750.00 $90,000.00 $101,250.00 $112,500.00
NET PROFIT (LOSS) (23,035.00)€ ($15,913.75) ($8,792.50) ($1,671.25) $5,450.00 $12,571.25 $19,692.50 $26,813.75 $33,935.00 $41,056.25 $48,177.50
€ (40,000.00)
€ (20,000.00)
€ -
€ 20,000.00
€ 40,000.00
€ 60,000.00
€ 80,000.00
€ 100,000.00
€ 120,000.00
75 150 225 300 375 450 525 600 675 750
DO
LLA
RS
SALES VOLUME (UNITS)
Breakeven Analysis Chart
FIXED COSTS PER PERIOD TOTAL COSTS TOTAL SALES NET PROFIT (LOSS)
€ 50.00 , 91%
€ 1.15 , 2%
€ 0.90 , 2% € 1.80 , 3% € 1.20 , 2%
Variable Costs per Unit
COMMISSION PER UNIT
DIRECT MATERIAL PERUNIT
SHIPPING PER UNIT
SUPPLIES PER UNIT
OTHER VARIABLE COSTSPER UNIT
€ 55.05 , 37%
€ 94.95 , 63%
Unit Contribution Margin
VARIABLE COSTS PERUNIT
UNIT CONTRIBUTIONMARGIN
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Over 76,000 international students attend school in the City of Paris each year.
Only 6.2% receive student-housing provisions. This means that 71,288 need housing accommodations each year.
HUGE MARKET!!!
Key Trends
+Competitor Analysis
Craigslist: Free, popular amongst target market
Erasmus Paris: Offers similar services to students
Crous-Paris: Institution, partners with universities
Appartager.com: Roommate search (top of Google search)
Accommodation for Students-France: same target market
+Implementation Roadmap - Feasibility Pilot Year (9 months)
Development of our student-housing database with Novancia Establishment of first Key Partnerships: Universities, Tech, Funds Website development
Year 1 – From the website launch onward Focusing on our core business activity Further partnerships: PR, Advertising, Language Schools Advertising space
Year 2 Activate landlords strategy Offer internships Break-even
Year 3 – Establish and expand. Profitabity Expand into complementary services
+ Borchard Foundation Center on International Education
Strategic Partners
42 (ecole)
+Risk Analysis
Obstacles: Funding Technical issues – Technology Market Maturity & Competitors
Competitive Advantages: Strategic Partnerships Robust Website Platform Trust & Secure Service
Guarantee: The conviction, expertise, experience and hard work of the
founding team is a guarantee for the business’ success.
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Questions?
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Thank You!