WP-T2
Defining the business model and training program
Annex 3a
Title
Building and green maintenance
Town of Labin – CROATIA
INDEX
1 INTRODUCTION 3
2 CONTENTS 4
3 THE BUSINESS IDEA 5
4 CANVAS N.1: BUILDING AND GREEN MAINTAINANCE 6
4.1 Canvas……………………………………………………………………………………………….7
4.2 Notes to the canvas…………………………………………………………………………………8
5 LEGISLATIVE REFERENCES FOR THE ESTABLISHMENT 9
6 LEGISLATIVE REFERENCES FOR PERSONNEL HIRING 10
7 ORGANISATION 11
7.1 Roles……………………………………………………………………………………………….11
7.2 Functions…………………………………………………………………………………………..11
1 INTRODUCTION
BEGIN is a project to define models for creation and management of social start-ups finalized to the inclusion of disadvantaged people.
Marginalized groups – e.g. unemployed, women, young people, immigrants, disabled, ex-convicts, former drug addicts – are counting significant percentage in every partner country.
Innovative feature and main objective of Begin is the creation of tools to encourage the creation and development of social start-ups active in safeguarding of environmental protection for social work inclusion and employment of disadvantaged people, which then contribute to improvement of territories both for use citizens and tourists. BEGIN will transfer know-how from more innovative and experienced regions to those lagging behind creating an innovative model that can be transferred also to other regions not involved in the project. Main common challenge tackled regards environmental protection, also to promote tourism development. This challenge is faced through joint analyze of territorial frameworks to identify work activities at the base of social start-ups models and business models that are involving specifically marginalized groups. Non-profit and third sector organizations are an efficient tool for environmental protection, but are not very developed and structured in project countries, except for Italy. Hence, the project will capitalize results of research conducted in Italy by providing specific know-how.
Direct project beneficiaries of milestones, outputs and deliverables will be the FACILITATORS OF SOCIAL START-UPS. Indirect beneficiaries will be potential social start-uppers, people with disadvantage employment, employees of social start-ups, research and innovation centers, training centers and employment agencies, as well as legal and relevant public authorities in every country.
They also will lay the foundation for the creation of an INTERNATIONAL FACILITATORS NETWORK. This represent the main project output together with a TRANSNATIONAL STRATEGY FOR SUPPORTING SOCIAL START-UPS which will be built on the 10 local-regional strategies which will be realized in project regions. Besides main outputs, BEGIN expects additional project milestones being the elaboration of BUSINESS MODELS for the Management and Creation of SOCIAL START-UPS as well as LEARNING PROCESSES for the dissemination of business models.
This document contains the business model for the creation of new social startups
This document, at the end of the project, will be available for other subjects interested facilitate the creation of social startups.
2 CONTENTS
a) The business idea = a general summary
In this section it is described the business idea. What activities for which market.
b) Canvas = blocks from 1 to 9 for each of main customer segments
In this section it is explained the Business Model Canvas of the business idea. Potential start-uppers and facilitators will have a schematic overview of the business model.
Please, read this section following this order
1 = customer segment
2 = value proposition
3 = channel
4 = customer relationships
5 = Revenue streams
6 = Key activities
7= Key resources
8 = Key partners
9 = Cost structure
This section is replicate for each customer segment identified for the business idea
c) Legislative references for the establishment of the startup
In this section it is described how to establish the new social enterprise.
d) Legislative references for personnel hiring
In this section it is described what kind of contract it is possible to use for human resource management
e) Organization (roles, functions, able-bodied and disadvantaged people skills)
In this section it is explained the human resources needs to manage the new social enterprise
3 THE BUSINESS IDEA
After evaluating the ideas and exhibited possibilities given from the participants of the meetings, there was an idea for starting a business that would be oriented towards providing services of gardening and other home affairs, mainly to those households and lodgers in skyscrapers in Rijeka which are not under maintainance of public company Čistoća d.o.o.
These are a large number of skyscrapers and households that are situated out of city centre which is dailiy maintained. The biggest problem is that the area arround was “public ownership” and it stayed like this after government transformation from former Yugoslavia to Republic of Croatia. Oftenly that is “nobodys land” making problems to the lodgers but also to the minicipality.
It has been identified that there is a real need to create a set of services for these users, which would include from one-time service up to certain number of services that colud be provided over a certain period of time.
This is a simple service for households, through works aimed at maintenance of buildings, to basic works in the field of horticulture. Participants also wanted to create mini urban gardens designed on the principles of permaculture which could be lead by the lodgers but also by the new social enterprise.
Also, what the group has chosen for this idea is the fact that in the event of some defects or failures, they can damage not only the owner’s apartment but also the surrounding flats, and in this case, it can be negatively reflected to the micro environment.
The idea is focused on the functionality of a large number of residential units and facilities, in order to preserve their purpose, to provide security to their owners and users, but to include disadvantaged groups and to create possible “simple” but quality jobs for them.
The biggest advantage is that mainly the idea was created by the city of Rijeka representatives who are in search for quality partners from civil sector and other to help them solve the problem activating a social startup.
4 CANVAS N.1: BUILDING AND GREEN MAINTAINANCE
The primary segment consists of owners of flats and houses situated out from the city centre which is approximately going from Korzo to Kozala area, and going up to Drenova area. Apart from them, the target group consists of the citizens of Rijeka, some of whom will recognize the importance and value these services. Smaller tourist facilities can be targeted as well.
Direct sales will be done by door-to-door promotion. Then, massive campaigns, throughout split of leaflets, flyers and promotions in the daily press will be carried out. Sales will also be made through promotional activities on social networks, in order of better targeting the target group. Huge support can be made form the city of Rijeka in their daily news etc but also Čistoća d.o.o. which in this case are not considered as competition but as partners.
Customer relation is based on ICT approach consisted from CRM system and call center. Its neccesary to optimize the customer relations, costs and to make sure that the service is in high quality.
The revenue will be realized through the sales of service such as green mainance of grass surface, wood editing, urban garden maintainance and building maintainance.
The first step in the realization of the idea will be the detailed market research, which will be done by collecting primary and secondary data and their further processing. Then, the selection and training of personnel, recruitment with a range of offers and the refinement of work activities.
Resource facilities are key facilities that will be used for central organization, then equipment for core business, all of which should be covered by the company’s founding capital.
Of the costs, the most significant expenditures will be for the space / facility of the company, equipping with the means of work and education of the personnel that will be engaged in the business.
4.1 Canvas
(1) Customer segment – Owners of real estates (apartments, flats, houses, villas and other facilities)
(2) Value proposition:
– Employment of disabled people
– Sustainable development of urban areas
– Circular economy
– Green city branding
– Social inclusion
(3) Channels:
– Direct sale
– On-line sales (via site)
(4) Customer relationships:
– CRM system and call centar in service to customers.
– Special trained persons for working with customers.
(5) Revenue streams – Consumers want to pay for a service that will provide them with peace of mind, security, and functionality. There is currently no organization of this type of service. Payment will be made in two ways: by subscription (via account) and by cash.
(6) Key activities:
– Market research
– Defining the range of services
– Selection and recruitment of staff.
– Education of employees
– Direct sales, retail chains and online sales.
– Purchae of maintainance equipment
(7) Key resourses:
– Physical – facilities, vehicles and equipment
– Human – skilled workforce
– Financial – seed capital.
(8) Key partner:
City of Rijeka
– department for urbanizam
– department for communal affairs
Building managers
Čistoća d.o.o.
(9) Cost structure – The most important are the costs of buying / renting out space and equipment for work. The most important resource is certainly equipment and machines, along with quality and trained personnel. The most expensive activities would be: Resource Planning, Personnel Training and Establishment of Distribution Network
4.2 Notes to the canvas
1. customer segment – a large number of individuals and other persons who do not have the ability to satisfy the needs of this type in a quality manner, since most of them are not familiar with the way they can do it, and, above all, the current nature of solving these and similar problems was based on the “mouth-to-mouth” principle.
2. value proposition – owners of real estate that are willing to support the inclusion of disadvantaged people
3. Channel – the “mouth-to-mouth” practice will not be ignored, as it is a standard practice, so it can be expected that the most common channel of sales will be direct sales. What’s new is a unique and unified offer through leaflets, flyers, catalogs and related materials, targeting those customers who are not able to reach through direct communication.
4. Customer relationships – a model of call centar that is not fixed but can be provided on different spots
5. Revenue streams – revenues will be generated from two sources: subscription and individual interventions. The goal is to provide as many subscribers as possible in the long run, which will make the business economically viable.
6. Key actions – it is necessary to organize and collect the most important information about the situation on the market, and based on them create a range of services, in order to offer customers a “top-notch” product.
7. Key resources – it is necessary to provide an office with a office and a room for tools and machines, as well as the necessary means for operation. If necessary, appropriate staff training is also needed.
8. Key partners – local self-government, real estate owners, civil sector.
9. Cost structure – The most important are the costs of buying / renting out space and equipment for work.
5 LEGISLATIVE REFERENCES FOR THE ESTABLISHMENT
Legal nature Establishment of a company in line with the current regulations in the form of a limited liability company. The statute should define that a major part of the profit must be reinvested.
Reference laws
Law on communal economy
Law on land ownership
Law on environment protection
Law on Protection and Health at Work
Law on Vocational Rehabilitation and Employment of Persons with Disabilities
Link to the laws
https://www.zakon.hr/z/319/Zakon-o-komunalnom-gospodarstvu
https://narodne-novine.nn.hr/clanci/sluzbeni/1996_10_91_1596.html
https://www.zakon.hr/z/194/Zakon-o-za%C5%A1titi-okoli%C5%A1a
https://www.zakon.hr/z/167/Zakon-o-za%C5%A1titi-na-radu
https://www.zakon.hr/z/493/Zakon-o-profesionalnoj-rehabilitaciji-i-zapo%C5%A1ljavanju-osoba-s-invaliditetom
6 LEGISLATIVE REFERENCES FOR PERSONNEL HIRING
Types of contract
Labor contracts
Contracts for supplementary engagement
Other contracts of work
Conditions
Full time – 40 hours a week
Short working hours – 20 hours a week
Ad hoc engagement as needed
Reference law
Labor law
Law on Protection and Health at Work
Law on Vocational Rehabilitation and Employment of Persons with Disabilities
Link to documents
https://www.zakon.hr/z/307/Zakon-o-radu
http://www.zakon.hr/z/167/Zakon-o-zaštiti-na-radu
https://www.zakon.hr/z/167/Zakon-o-za%C5%A1titi-na-radu
7 ORGANISATION
The new social startup needs the following human resources
Type Role n.
Able-bodied Coordination and management 1
Operative 1
Disadvantaged people Coordination and management 1
Operative 3
TOTALE 6
Type of disadvantaged people
long term unemployed
women in difficulty,
young people,
physical impaired
ex-prisoners
ex drug addicted.
7.1 Roles
Director – 1 person
Dispatcher – 1 persons
Coordinator of disadvantaged workers – 1 person
Repairer / handyman – 3 people
7.2 Functions
The Director – is responsible for creating and implementing a work plan, a sales plan and designing marketing activities. It’s about the uncompleted business and legal obligations of the company. (Disadvantaged people)
Dispatcher – person in charge of receiving calls, reporting failure, master plan, implementation of plans. (Disadvantaged people)
Coordinator of disadvantaged workers – person in charge to educate and lead people with disabilities or disadvantaged people who need to integrate on labor market
Repairer / handyman – repair workers, carpenters, electricians, plumbers, gardners etc.