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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!