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THINK
- 1. Marketing Leadership Capstone:MKTG 5506 - 0LA Business Plan Developed by: Jag Bining, Daniella Fortino, Daniel Lew, Daniela Quintana, Chantel Petam & Matt Waghorn The Humber Business School Reviewed by: Tony Gifford Submitted: April 8, 2016
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- 4. One Page BusinessPlan Overview What will you sell? ● Workspace usage (Hourly, monthly) ● Local made art/products ● Entrance for events Who will buy it? Why? ● Young thinkers, taking education and work into their own hands. ● BECAUSE there is a weak ROI ($ and time) for post high school education and a hunger for creative space for selfstarters. What’s in it for your customer? ● Access to a space and a community that will help foster connections and creativity. Revenue What will you charge? Why? ● $2/hour, $15/day $60/month ($32 for students), $540/year ● 10% commission from local made art/products ● Events TBD based off specific events ● BECAUSE compared to the services and prices other spaces in the same market offer, ours is effectively priced. Also 10% commission is a lot lower than most galleries, enticing them to use our space instead. How will you get paid? ● Credit*, debit, cash (*Pushing for credit card on file to charge customers with less hassle whenever they use the space) How else can you make money? ● Advertising real estate on a podcast, in store, website, app. ● Selling branded products ● Offering professional services to members using network of existing members. ● Commission from usage of peertopeer education app. ● Opening up partnered spaces in existing spaces (i.e. public libraries) Marketing How will your sales suspects learn about your business? ● Word of mouth, social media, newsletter, advertising at relevant events How will you get referrals? ● Incentives for bringing people in ● Being a space people want to bring business meetings to, or telling their friends about it. 3
- 5. Success Criteria How will you know you are successful? ● When growth allows for expansion ● Attaining 70+ regular members, 20+ casual guests/day ●When financial goals are met What metrics will you use to validate your number of customers? ● Database of members sign ins/outs (as well as for one time customer) What annual net income will you strive for in year 1, 2, and 3? ● $100 000, $200,000, $500,000 respectively. OBSTACLES/CHALLENGES SOLUTIONS Differentiation at the start Clear targeted marketing & vision Growing fast enough at the start Target influential people Implement fun, engaging, productive atmosphere. Customer seeing app/website as being beneficial Use of AB testing, great frontend & backend design Constant user feedback loop, using information to update tech. 4
- 6. Business Overview andBusiness Strategy Vision Malcolm Gladwell talks about three archetypes of people integral to change, in his book The Tipping Point. Connectors, whose job it is to link people together, networking ideas and knowledge. Mavens, the information bank, retaining specialized knowledge and connecting you with the marketplace. Lastly, Salespeople, those teeming with empathy, able to persuade the unconvinced of their ideas and mission. Everyone is associated with one of these archetypes, with each bringing a unique ability to the table. These work best in tandem, the three of them working together to bring about new ideas to the world. Community, education, and empathy. These three concepts provide the framework of the initiative. This is THINK. It’s a creative hotspot where you can build collaboratively or individually, be a well known face or make a casual appearance, and share your ideas with those around you or with the world. THINK wants to empower people to take control of their own education. It’s a place for growth. THINK will provide services on the basis of inclusivity and respect. Race, colour, religion, sex, national origin, sexual orientation, age, disability, and genetic information will not be an issue. Services and Products Offered THINK acknowledges that the working landscape is changing. This changing landscape places THINK in an opportune position. Toronto Real Estate is on the rise, making it harder for independent workers to find an affordable place to work. The sharing economy is becoming the norm for services, THINK will follow in suit, acknowledging the user base as being an integral part of learning, growth, and profit. There are a wealth of possibilities that open up once a strong member base is achieved. So… Why choose THINK? Access to professional services for members: ● Using the member's knowledge, services such as programming, design, marketing, audio/video production, writing, etc. will be provided. A place to showcasing your work: ● A rotating display of members’ work will be on display for people to learn more, purchase, or collaborate. Access to inhouse services ● Fibe speed internet ● 3D printer ● Ability to bring in own food ○ Subsidized food delivery through apps like Foodora ● Free coffee/tea 5
- 7. ● Projectors/Screens ● Chalkboard/Whiteboards/Office supplies ●Boardroom ● Physical resource library ● Collaborative workspace ● Access to professional databases (i.e. JSTOR, PNB, etc.) Ability to attend and host various workshops and events: ● To initialize THINK as a player in the Toronto creative business sector, events such as speed dating for ideas, skill training, lecture series, potlucks, guest speakers, book club, pitch sharing, hackathons, etc. Access to an app that will seamlessly integrate the community: ● The first part of the app development will be focused on creating a geobased community where members can post queries and observe each other's work. There will also be messaging enabled in this. Access to a peertopeer education platform covering a wide range of topics: ● THINK will act as a launching pad for the platform. It will enable members to host their own classes/workshops/bootcamps out of THINK and partnering spaces. There will be a small fee to hosting your own class, as well as attendees (open to public but cheaper for members). When your class is over, attendees rate the class/teacher. Each consecutive class you host raises the attending cost (more demand for the class, the higher the cost, capping at a reasonable point). Eventually with enough momentum, the app will allow members to host out of their own space. Similar to the AirBnB model, it will be an open sourced, accountable, demand based economy. This will empower people to put education back into their own hands and begin the democratization of education. ● This will become a strong revenue generator, collecting revenue from: ○ Hosting fees ○ Attendance/membership fees ○ Partnering/Sponsorships ○ Advertising 6
- 8. Strategic Goals Working with a designer, we want to create a static space with beautiful aesthetic to develop the THINK brand. Static space in the sense that the furniture and accessories can be manipulated, changed, and rearranged dependant on what the space is being used for, and who is occupying it. This creates an environment that fosters creativity, think of it as rearranging your Scrabble letters to find the hidden word you could not find before. THINK wants to disrupt the education sector as well as acting as a supplement to the learning done within the private education systems and on the job. At the core, THINK is a team of marketers with a keen eye for developing the world. This puts THINK in an excellent stance to create a strong brand for the workspace, which other workspaces lack. The cultivation of the THINK brand will lead to opportunities including: Franchising: ● Creating multiple locations strengthens the brand and creates more spaces for members to interact with each other. Opening specialized spaces with partners: ● Example, partnering with the Toronto Public Library, offices, agencies, and so forth, to help turn their spaces into a place that’s more appealing for entrepreneurs. Additional revenue streams with THINK branded products: ● Creating a visually appealing brand and business is important. THINK wants its members to feel a sense of belonging attached to the brand, where they would promote it on their own through endorsement. 7
- 9. Management Structure THINK will employ a unique customized management structure. THINK will operate as a partnership between the six managing partners. The creators of THINK do not believe in a bureaucratic and hierarchical management structure where there are managers and subordinates, rather they believe in family. The idea is simple: unite as a family to contribute and support each other in achieving strategic business goals. Though a simple idea of business, meeting and exceeding customers’ needs and expectations will require a joint collaborative effort between all members. As in every business, there are key positions that ensure business is running smoothly, functions in place are efficient and effective, and that overall business objectives are being met. Roles and Responsibilities Area Responsibility Qualification Financial and Administration Manager / Director ∙ Monitoring progress of the business towards achieving the objectives of each manager. ∙ Coordinate the business team. ∙ Appointing with relevant parties, such as shareholders, potential immersionist, etc. ∙ Develop budgets. ∙ Performance cost reduction research. ∙ Business financial planning. ∙ Bachelor in Business Administration or subject related to the field. ∙ At least 2 years of experience in the industry. ∙ Knowledge about business operation and planning. ∙ Leadership. ∙ Excellent computer skills and proficient in excel, word, outlook, and access ∙ Excellent communication skills both verbal and written Operations Manager ∙ Overseeing the provision of services. ∙ Ensure the business is running as well as it possibly can, with a smooth efficient service that meets the expectations and needs of customers and clients. ∙ Guarantee the provision of inventory (paper, ink, coffee, etc) ∙ Schedule workshops, events, etc. ∙ At least 2 years experience in Financial Management ∙ Strong background and work experience in Finance ∙ Excellent computer skills and proficient in excel, word, outlook. ∙ Excellent communication skills both verbal and written ∙ Budget development and oversight experience ∙ Delegate responsibilities effectively 8
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- 13. Strategic Marketing Plan Current Market and Competitive Situation A new era of entrepreneurship is emerging, moving from a global economy to once again, a local one. Nowadays, many people are steering clear of the fourwalled cubicle, rolling up their sleeves and creating their own business. This new era of entrepreneurship has emerged largely in part as a result of the digital era, but also the employment market saturation of overqualified workers via the underperformance of the postsecondary education system, and as a result of the postsecondary education system’s inability to develop practical robust leadership skills. In advent of the digital era, consumers, institutions and companies have taken notice and adapted accordingly. Many businessclient functions are supported and/or handled remotely via the Internet, smartphone applications, digital platforms, social media etc. As a result, consumers are eager to learn more. They are looking for places that can help them learn about the latest technological advances and trends, develop practical technological skills, provide access to the latest technological tools and gadgets, and ultimately meet and interact with likeminded individuals within the community. Most of the competition in Toronto’s workspace industry are located in downtown Toronto. They serve their client base via a subscription based membership model where members have access to freelancers and individuals in the startup community looking to share ideas, knowledge, and skills. Also, they provide access to expensive equipment such as 3D printers, laser cutters, etc. In addition the majority of the places offer 24/7 access Company Description Main Features Location Center for Social Innovation The Centre for Social Innovation is a coworking space, community and launchpad for people who are changing the world, with three locations in Toronto and New York Target: Freelancer's, leisure, startups and small businesses, students. ● UPS: o 24/7 access to office space o Highspeed internet o Meeting rooms o Event spaces o Lounges o Photocopy and fax machines o Community kitchens o Audiovisual equipment Mail boxes 215 Spadina Avenue. 720 Bathurst Street 585 Dundas Street East Toronto Tool Library has an inventory with more than 5,000 tools available for loan. From home repair to gardening & bicycle repair to hightech. ● Membership is $100/month plus a onetime registration fee of $200, for the setup and continued running of the space. 1803 Danforth Ave (East of Toronto) 12
- 14. Toronto Tool Library Members get access to the inventory at both locations but must return items to the same Tool Library where they borrowed Target: Freelancer's, leisure, startups and small businesses, students. ● Only members can take advantage of free skills training with our inhouse experts on all Makerspace equipment. ● 24/7 access to the space. ●USPs: o More than 3,000 tools o 3D Printers o OpenSource LaserCutter o Community of makers able to network with likeminded individuals Hacklab HackLab.TO is a notforprofit community space with a diverse membership, including artists, computer programmers, web designers, and hardware hackers. It is inspired by the philosophies of the global hackerspaces movement which encourages people to socialize, share knowledge, and work together on their projects. Target: Freelancer's, leisure, startups and small businesses. ● Member Benefits: o 24/7 access o Option to organize events and bring guests o Bin to store personal ítems o Full use of Hacklab resources ● USPs: o Different type of tools for oculus rift virtual reality, electronics, biology, amateur radio tools, crafts, multimedia, safety and security, computer gear, photography, food and cooking o Tools for many different crafts o Community of makers to network and share ideas with from different fields 1266 Queen St W (west of Downtown Toronto) Site 3 Site 3 is dedicated to making, teaching, learning and thinking about the intersection between art and technology. This place also makes amazing things, and we teach others to make amazing things, too. Target: Freelancer's, leisure, ● USPs: o Classes to learn hands on specialized skills o Electronic and woodworking projects o A rotating selection of classes, including lampworking and metal milling. 718R Ossington (northwest of Downtown Toronto) 13
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- 16. Opportunities and Threats Opportunities: ● Introduce as a new concept of workplace/workspace ● Entrepreneur Era ●New Information Era (Digital industry and market) ● Fill in the gap that exists between students and traditional post secondary education systems ● Lack of technological learning tools, equipment and gadgets ● Innovative learning method ● Develop strategic alliance with local institutions: The Toronto Public Library, high schools, companies etc. ● People participating in multi “careers”, wearing multiple hats ● Automation is taking skilled jobs, putting creativity in demand ● Most jobs of the future don’t exist yet, need to create a culture of exploration ● Rise of Sharing Economy Threats: ● Strong competitors in the same industry (libraries, maker spaces in the market) ● Preference to no payment workplace, such as libraries ● Misunderstood and/or misinterpreted concept ● Expectation does not align with actual business ● Little to no revenue stream starting out ● Revenue based on assumptions ● Ambiguous future workforce ● Replication of company vision Objective and Key Issues Objective: ● Develop and grow as a reputable, accessible and reliable workspace in the Greater Toronto Area ● To position THINK as a unique, interactive, innovative and resourceful workspace ● To achieve a 70% awareness level in our target market ● Be regarded as an alternative education facility Key Issues: ● Growing and developing a community ● To achieve a 70% awareness level in our target market ● Penetrating a large audience with the proprietary app. ● Lack of understanding what the business concept is ● Not meet customers expectations 15
- 17. Marketing Strategy Target Market ● Age: 18 to 40 years old ● Gender: Male and Female ●Education: college diploma or university degree; some college or university ○ High school students taking some time off after secondary school ● Income: $0$25 000, $25 000+ ● Characteristics: ○ Freelancer, small business owner ○ Entrepreneurs, students engaged in creative process unsatisfied with education system ○ Lifestyle: Innovators, Thinkers, Experiencers, Strivers, Makers ○ Personality: Liberal, adventurous, outgoing, health and fitness conscious, knowledge seekers, trendy, self discovery, enthusiastic ○ Social Class: Upper class, middle class, working class Pricing Strategy ● $2/hr ● $8 HalfDay Rate (5 hours) ● $15 Daily Rate (max. 10 hours) ● $8 Student Daily Rate (max. 10 hours) ● $60 Monthly Membership ● Student Membership Rates, Preferred Membership Rates ● For a detailed breakdown of prices and membership rates, see Appendices 7 & 8 Promotional Campaigns Social Media Free monthly membership giveaway if you follow THINK on Twitter, Instagram ,Facebook, and/or Snapchat. Tweet a photo during your stay at THINK, and the picture can be chosen and displayed on Monitor in store front, THINKPAD newsletter, THINK website. Promotional Customers who purchase monthly or yearly memberships in the first week of opening will receive an early bird discount of 15% off their membership. Once a month, members are permitted to bring one nonmember for free for one day. This will allow for continued growth and awareness, allowing those who may be curious about THINK to try out the services before committing. Another promotional tactic that will be employed is a partnership with the professional networking company, 10,000 Coffees. Individuals who have met over 10,000 Coffees, can choose to physically meet in 16
- 18. person at THINK for free. As well as having the ability to use Foodora for a reduced food delivery price if you order in to our location. Experimental Art Displays Interactive in storefront design by local artists, showcasing their work and promoting our space. Possible solution is to broker agreement with OCAD/Schools for discount, potentially offer free trial to students. Campaign Goal THINK campaigns will emphasize community. Ultimately, THINK would like to achieve community engagement by sponsoring a charity event whereby different groups of students are free to join. This would result in building brand awareness among our target market, partners and the overall community. ● Focus on community building and engagement ○ Implement business practices involving Community Development theory, commonly practiced in Higher Education: Needs Assessment, Needsbased programming, Community Assessment, Community Management, etc... ○Community events (movies, poems, local artist showcases, etc…) Promotional Trials at Tech Industry Events Provide free trial offers and ‘bring a friend’ promotional discounts to influential prospects in the tech industry by setting up booths at tech industry events such as Full Stack Toronto, AndroidTO, Toronto Tech Summit, etc Targeting innovators is essential to building a community. According to the diffusion of innovation model, innovators help influence early adopters, who in turn assist in spreading word around about your product or service. This is also in harmony with the Pareto Law or the 80/20 law, which states that 80% of your output comes from 20% of your inputs. This would manifest in business as approximately 80% of your business would come from 20% of your customers. Concentrating on individuals at tech and entrepreneurial events is an effective strategy rather than focus on diversifying. 17
- 19. Key Action Programs and Schedule Date Strategic Actions Anticipated Outcomes May (year 1, month 1) ● Soft marketing – create title page for website and launch social media (Snapchat, Twitter, Facebook, Instagram) ● “THINK outside the box.”, “What do you THINK?” displays placed around Toronto ● Generate awareness, buzz attract and entice potential customers August (month 4) ● Unveil website, interactive storefront advertisements, and develop stronger social media push ● Promotions for early bird signups: ○ 15% off membership ○ First 25 signups receive a free surprise ● Digital interactive storefront display will be up and running with the help of local artist ● Develop online presence that reaches innovators and early adopters September (month 5) ● Grand opening event ○ arrange speakers from the community, musicians, comedians, and artists to host the event. Sell tickets ahead of time to guarantee entrance to the show ● Hard Launch: THINK ● Introduce scheduled events ● Launch of members app & members private web access – provides value for 18
- 20. ● Host a rotating series of events biweekly on Friday nights, with expansion to a more regular event schedule if events are doing well ● Some examples include: ○Speed Think Speed dating meets hackathon. Sign up and solve a problem/issue with your partner in 10 minutes or less. Upon successful completion, rotate onto the next person and so forth ○ The Pitch Sitch Sign up to pitch your ideas to others to receive feedback, investment, or to collaborate ○ Book club/Pod club Discuss relevant books or podcasts in an open forum ○ Potluck meet and greet Members bring in meals, chat and come together under a no pressure environment ● Skill Training ● Lectures/guest speakers ● Launch members app and members private web access ● Focus on getting the connectors and salespeople to spread the idea through word of mouth. Provide becoming a THINK member 19
- 21. incentives for early adopters into the space January (month 9) ● Launch of regular digital newsletter, THINKPAD ○ The newsletter will be free and available to members and individuals who subscribe in store or via the THINK website. The newsletter will profile local industry personnel, upandcoming and existing business ventures, upcoming THINK events, workshops, Pitch Sitch events etc. ●Industry competitions ○ Different sectors face off against each other (i.e. startups, universities, agencies, bands, art collectives, etc.) solving different issues. A selected panel of judges will determine who wins, prizes follow (pride included) ● Reevaluate pricing strategy ● Determine if membership and hourly rates are working ie. is customer traffic ● Launch of digital newsletter, and podcast will develop brand identity and inform consumers of the many services THINK provides ● Industry Competition creates network of individuals who are likely to return and share with their friends. In addition this will introduce the mission to the various sectors THINK admires, leading to corporate sponsorships, partnerships, and single memberships ∙ 20
- 22. meeting expectations? (See Appendix 7). If expectations are (not) being met consider maintaining (lowering) membership rate. If expectations are being exceeded consider membership rate increase ● Podcast launch with a strong marketing campaign ● Capture the vision from inhouse speakers, and relevant trends in the industry ●Record speakers and events ● Interview members and key Toronto thinkers ● Reevaluate financials to determine whether to maintain, remove or add services/products May (year 2, month 13) ● 1st year anniversary event: ○ Similar to grand opening, includes: surprise guests, prizes, food, drinks, music ● Peertopeer education app launch with advertising campaign ● Advertise on popular Canadian podcast CANADALAND and its partners ● Attend various startup networking events, fairs, showcases ● Launch of peertopeer app ● CANADALAND radio spot will generate awareness, especially amongst the early majorities ● Networking events, fairs will help develop THINK’s brand identity 21
- 23. ● Utilize SEO, social media, and partner with library spaces August – October (months 1618) ● Reevaluate financials to determine whether to maintain, remove or add services/products ●If financials permit, begin plans to open second location ● Revision of business objectives will ensure THINK is meeting and exceeding customers’ expectations ● THINK Expansion Controls and Monitoring Processes: ∙ ● Customer feedback: ○ Utilize customer feedback surveys to identify main customer concern ○ Offer free coffee or membership trial discounts as a way to incentivize customers to provide feedback ○ Host member appreciation events ● Social Media campaign metrics/assessment: ○ Assess Twitter and Instagram hashtags to see how many people are talking about THINK. ○ Create unique hashtags during each event to assess how successful the campaign. Sales Forecast Monthly Sales Forecast: $8,022.59 ● Based on the assumptions that in the first month THINK will ○ Convert 1 regular guest to a monthly membership every single day ○ Convert 1 student guest to a monthly membership every single day ○ Gain 5 new customers/month from our list of agencies/associations/and communities ○ Make at least 1 sale of an annual membership ○ See at least 10 customers/day pay the hourly rate ○ Add an additional 10 customers pay the halfday rate ○ Get 2 Students to pay the reduced ‘Student Daily Rate’ ○ Get 2 Customers to pay the ‘Daily Rate’ ○ Sell 2 Coffee Travel mugs/month 22
- 24. ○ Earn $40/month in commissioned sale of local works of art/creative pieces, at a commission rate of 10%, well below the commission rate at most art galleries. Marketing Budget ● $2,000 Startup Marketing Budget ○$500 Poster Campaign: THINK will print & post posters in strategic locations to engage our target market. THINK will visually engage users on community boards in the neighbouring area ○ $500 Social Media Budget: for boosting posts on Facebook, Twitter and Instagram ○ $1000 Giveaways & Promotional Material: THINK branded products (travel mugs) and partnership sponsor budget. 23
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- 26. Picture retrieved from GAB Montreal. After discovering GAB and loving the design of the space, THINK spoke with them and gained some insight into their workspace operations and their plans for a proprietary app. Location & Facilities THINK is best suited to be located in a new up and coming, trendy and newly gentrified neighbourhood where young professionals are living. The ideal location would be a commercial space located on Ossington between Bloor and Queen Street. Once established in this location THINK hopes to expand to other locations throughout Toronto. Once established in Toronto THINK plans to expand into other cities in Canada such as Vancouver and Halifax. Equipment and Supplies The materials and equipment THINK necessary to operate the business include: ● iMac Computers (4) ● iPad (1) ●Wireless routers ● Projector ● Projection Screen ● Printers ● Furniture ● General office supplies ● Commercial Coffee Machine ● Coffee Beans, Tea, Milk, Dairyfree alternatives, Sugar, Cream, Stir Sticks, Coffee Mugs ● Cleaning Supplies 25
- 27. Organizational Structure The organizational structure will be composed of the managing partners specializing in a different aspects of the business, with expected overlap of duties. These include the areas of Accounts/Partnerships, Growth Strategist, Finance, Customer Service, Talent Acquisition (HR), Events Coordinator, Advertising/ Marketing. Decisions will be made by vote in weekly meetings by the six managing partners. As the company grows, “Think Masters” will be the staff hired to keep the space running smooth with their operational expertise, will provide high quality customer service by fostering meaningful connections with customer. Legal Requirements The opening and operation of THINK must meet certain legal requirements as per the Government of Canada and the Government of Ontario: Type of Regulation Description Register Business with Government of Ontario Registering the business name online through the Ontario government website. One time cost of $60.00 and lasts 5 years. Human Resources Regulations Includes the enforcement and adherence of: the Ontario Employment Standards Act, as it relates to wages, vacation and other leave, statutory holidays, hours of work, paid overtime etc. The Ontario Workplace Safety and Insurance Act, Ontario Human Rights Code Advertising and Promotions Campaigns Canada’s antispam law will need to be taken into consideration when operating electronic channels to promote or market business as the Competition Bureau monitors false and misleading representation, and deceptive marketing practices in the electronic marketplace. When creating promotional contests specific information must be provided to potential participants. One must disclose the number and approximate value of prizes and the areas to which they relate and any important information relating to the chances of winning such as the odds of winning. Privacy Regulations If a company collects, uses or discloses personal information about individuals, the business needs to understand its privacy 26
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- 37. THINK’s Budgetary Implications ● Not hiring or paying any employees until the business becomes profitable. Given the budgetary implications, THINK cannot afford the cost of paying employees until the business becomes profitable in year 2 or 3. Until then, the managing partners will share the responsibility of running THINK while the other partners are working other jobs to make a liveable wage. ● Be strategic in considering to whom we appeal. THINK needs to appeal to people who work from home and encourage them to make the space their office space. It is much cheaper than renting office space and provides all of the amenities of a home office, and allows for collaboration, networking, getting out, etc… ●Empower customers to be THINK brand ambassadors via social media. This will help offset marketing costs through earned media. ● Continue to expand the breadth of our revenue streams. For example, THINK could also sell other creative pieces. Business Overviews, Appendices 7 & 8, do not reflect any revenue from event hosting fees, partnerships/partnerships, or advertising in THINKPAD ● Develop strategies to monetize assets. This budget does not reflect THINK’s plan to monetize assets like the THINKPAD eNewsletter, the THINK app, or the podcast. Through the collection of client demographic information, THINK will be in a position to strategically attract corporate partners who are aiming to reach THINK’s target market and whose brand values aligns with THINK’s. 36
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