Defining the business model and training program
D-T2.2.2 – Business Model
Building and green maintenance
MONTENEGRO-Municipality of Herceg Novi
1 INTRODUCTION 3
2 CONTENTS 4
3 THE BUSINESS IDEA 5
4 CANVAS N.1: —-( ECOLOGY AND CRAFTS)————— 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
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 analyse 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 organisations are an efficient tool for environmental protection, but are not very developed and structured in project countries, except for Italy. Hence, the project will capitalise 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 centres, training centres 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 realised 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.
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 startuppers 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) Organisation (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 that reside in Herceg Novi relatively briefly and / or periodically.
These are a large number of apartments, cottages, houses, villas and other facilities, which are used in one period (usually during the summer season), which still require certain maintenance.
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.
Residential objects that are mostly empty throughout the whole year and do not have any supervision and maintenance after a certain period require specific service activities in order to keep them usable. Given that these actions are sometimes more expensive than regular maintenance and the eco lump sum that would be paid for services, the space for performing such activities has been identified.
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.
Considering that Herceg Novi is a quiet city in the off season period, without a large number of visitors, and therefore without major activities in the city, this creates a great deal of space for organizing a network of servicemen, gardens and other staff that would be engaged in the implementation of these activities.
4 CANVAS N.1: —-( ECOLOGY AND CRAFTS)—————
The primary segment segment consists of owners of real estates, apartments, flats, houses and other objects of owners who do not stay during the year in Herceg Novi (so-called weekenders). Apart from them, the target group consists of the citizens of Herceg Novi, some of whom will recognize the importance and value these services.
Smaller tourist facilities can be targeted as well.
By providing this type of service, the owners of the listed real estates will be given a sense of security, rest and easy arrival in and departure from Herceg Novi, all of which will be completed with a pleasant stay during the city visit.
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.
An IDIC Model that focuses on 4 basic actions will be developed: Identify, differentiate (value, need), Interaction and Customize. More precisely, it is about the following activities: the company must identify who is the actual customer and should know about the deep knowledge of their customers, so that they can easily understand them and serve them profitably. Differentiate customers on two bases: value and need. Value: Differentiate customers to identify which customer is generating most value now and which offer most for the future. Need: Differentiate customers according to their needs (type). Interaction – The company must emphasize interaction with the customer to ensure that it understands customer’s expectations and their relationship with a brand. The company must consider Interaction with customers according to their needs and value that they provide you. Interaction directly with customers makes believe that the company has concern with them and the company wants to serve them individually. Customize – When a company differentiates its customers according to their values and needs, after that, the company has to customize its product according to their needs and values. Customize the offer and communications to ensure that the expectations of customers are met. Interact to customize is information to customers about your ability to cope with their need. Failure in the third step means something wrong with the second or third steps.
The revenue will be realized through the collection of subscription packages, which will be formed depending on the specific needs of the users, then the collection of individual services and through the collection of other (ad hoc) activities. Beneficiaries will be offered contract service packages, which will combine several services with a more favorable price, all in order to ensure stability both financially and operational.
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.
(1) Customer segment:
– Owners of real estates (apartments, flats, houses, villas and other facilities) – weekends
– Residents of Herceg Novi
– Tourist objects
(2) Value proposition:
– Security and serenity when it comes to ownership of a property.
– Constant functionality.
– Security in terms of securing property.
– Know who to address in case of some problems / failures that can occur anytime, anytime of the day.
– Direct sale
– On-line sales (via site)
(4) Customer relationships – IDIC Model company must identify who is an actual customer. Differentiate customers on two bases: value and need. company must emphasis on interaction with the customer. Customize – When company differentiate its customers according to their values and needs, after that, company has to customize its product according to their needs and values.
(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.
– Transaction-based revenue
(7) Key resourses:
– Physical – facilities, vehicles and equipment.
– Human – skilled workforce
– Financial – seed capital.
(8) Key partner:
– Local government
– Assembly of tenants
– Civil sector
– State authorities and institutions
(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 not throughout the year in their premises, have a typical problem that arise due to the flow of time, technical failures, natural disasters, weather and so on. Organization of these kind of service would create the ability for estates owners to “remotely” solve the problems that they would otherwise have no influence on.
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. Over time, the image of a secure partner and “good neighbour” will be built, who is always there to solve the problem, and such image can be strengthened on social networks as well.
4. Customer relationships – a model will be created that will be unified in one part, and in the second it will be adjusted to the reactions of the owners of apartments and houses in order to meet their basic needs and solve their crucial problem.
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, tenants’ assemblies, 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
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.
Law on Spatial Planning and Construction of Structures
Law on construction products
Law on land ownership
Law on Protection and Health at Work
Law on Vocational Rehabilitation and Employment of Persons with Disabilities
Link to the laws
6 LEGISLATIVE REFERENCES FOR PERSONNEL HIRING
Types of contract
Contracts for supplementary engagement
Other contracts of work
Full time – 40 hours a week
Short working hours – 20 hours a week
Ad hoc engagement as needed
Law on Protection and Health at Work
Law on Vocational Rehabilitation and Employment of Persons with Disabilities
General Collective Agreement
Link to documents
The new social startup needs the following human resources
Type Role n.
Able-bodied Coordination and management 1
Disadvantaged people Coordination and management 2
Type of disadvantaged people
long term unemployed
women in difficulty,
ex drug addicted
ex alcohol addicted
ex gambling addicted
Director – 1 person
Dispatcher – 2 persons
Repairer / handyman – 3 people
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)
Repairer / handyman – repair workers, carpenters, electricians, plumbers etc.