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: —- PRODUCTION OF ECOLOGICAL CARTOON PRODUCTS—- 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. The idea is to organize the production of so-called ecological products, in this particular case, it would be greeting cards, recycled paper pots, printing and recycling services.
The production of these products will enable people with disabilities to change their way of life, blend into social trends and provide themselves with an appropriate kind of economic existence, and therefore satisfaction. Congratulations cards and similar products have already become a synonym for support to such projects, but what makes this idea different is the unification of products, a unique look that, with an ecologically and socially responsible note, sets itself apart from other similar (competing) products.
Second product from the planned assortment is recycled flower pot. There is no household that does not throw at least a plastic (bag) item into the garbage on a daily basis, they end up at the landfill, and they remain there for 1,000 years!
This is a step-by-step thing, and the process will go from a gathering a groups and individuals of ecologically responsible lovers. It is necessary to give up and forget about the plastic containers and flower pots and to stimulate them to no longer enter the yard. There are several solutions that will not leave a planet contaminated by the plastics in the next generations.
The trend in the world are paper pots in yards. It looks a little impossible and unsustainable. But if you’re gardener who raises seasonal flowers only, these pots can finish the job. These pots are relatively cheap, so for one plastic you can buy at least five ecological. These pots are easily composted in nature, because they are made of natural fibers and materials, which are completely decomposed in nature. After some time in the garden, but also at the landfill, there is no sign of it.
In addition to the extremely important ecological advantages, gardening works are also facilitated. The plant does not suffer from transplantation and does not damage the root system. Being lightweight and durable, these pots are a welcome alternative to plain plastic containers that we are accustomed to using. The paper should only be broken up for two to six weeks. Biodegradable pots will keep the season in the yard.
The product is based exclusively on ecological principles, but very well designed. It is produced in a combination of paper, with a little cement, poured into special and uniquely shaped molds.
4 CANVAS N.1: —- PRODUCTION OF ECOLOGICAL CARTOON PRODUCTS—-
The main users of the (greeting cards and similar) products would be: City and state institutions, preschool and school institutions, representatives of the civil sector and a significant number of individuals. Apart from them, it is evident that there are interest from tourist organizations that would like to use these products. Namely, this is a positive affirmation of persons with disabilities who by providing this idea will provide themselves with decent living conditions, not only in the economic but also in the social sense. They would be active participants in social life, self-aware of their work and other sophistication and recognize themselves as members of the community who are not burdensome.
Realizing this idea would create a high level of satisfaction, not only for people with disabilities, but also for users in terms of transferring a part of income to affirmative projects and ideas that contribute to the strengthening of the social community, and thus make the community better and more convenient for life and economic activity. In addition, the realization of this idea would provide support to the strengthening of activities that aim to support sustainable development, through the protection of the environment and stimulating the use of recycled and bioremediating materials. Consequently, the emission of harmful substances into the environment would also be significantly reduced. The sale would be in the following channels: Direct sales (performances at fairs, exhibitions); Distribution to brokers (sales facilities – bookstores, gift shops, souvenir shops and similar stores) and On-line sales (in the future, sales could be developed through the site).
CRM Value Chain Model – based on a high degree of interaction and an exceptional level of trust. This is a model in which consumers play an active role, creating an added value for the company. So far, at a certain level, awareness has been developed of the need for the development of “environmental protection styles”, but the level of development required has to be further expanded. By purchasing these products, consumers would have a higher level of satisfaction, which would, besides meeting their basic needs, provide a higher degree of satisfaction, a more emotional attitude towards the product, as well as a sense of more value to make with his purchase and use more than a good deed. Until now, this was not the case, so the purchase and use of such products was reduced to tradition and respect for the usual norms. So far, sales have been traded through traditional payment methods (cash and account), and there is a significant place to promote and organize online sales and payment cards and other electronic banking instruments. Key activities would focus on education, both employees (for the use of machines and tools) as well as end-users (in terms of approaching and familiarizing with the concept of this idea).
The goal of these activities is to achieve a high level of understanding and to avoid unnecessary delays in work and production. Further activities would be directed towards the establishment of probation and regular production, which would be followed by the planning activities with the aim of providing financial sustainability independence as soon as possible. In terms of resources, it is certainly the most important initial (financial) capital, which would be used to procure equipment and means of work, which are imperceptible to ensure a smooth production process. Certainly, and not least, there is a human capital, without which everything cannot be organized and executed. Key partners in these projects are certainly local and state administration, which are directly interested in the realization of project activities. Then there are associations with a disabled person, as well as other associations that gather sensitive groups, and whose inclusion in the realization of this project would result in greater inclusion.
The project would be unthinkable without representatives of companies and representatives of the civil sector, as well as responsible individuals and informal groups interested in greater inclusion of persons with disabilities in social life. Individuals and individuals interested in protecting the environment and encouraging the use of recycled and biodegradable materials would make a special whole. The most important are the costs of equipping equipment and equipping work space. The most important resource is certainly equipment and machines, along with quality and trained personnel.
(1) Customer segment:
– City institutions
– Government institutions
– Educational institutions
– Civil sector
– Tourism companies and organizations
– Horticulturists and people dealing with horticulture
– Citizens who like to recycle.
– Individuals who take care of the preservation of the environment.
– Various associations and informal groups fighting for the rights of “green”
(2) Value proposition:
– Participation in the realization of the project with a higher value
– Support inclusion of persons with disabilities
– Ecologically clean product suitable for use in many situations.
– Contribution to the development of environmental protection.
– A feeling of security and self-confidence in relation to a healthy environment.
– Substitution of plastic, concrete and other “heavy” materials, with biodegradable and natural materials.
– Direct sales (fairs, exhibitions)
– Sales to brokers (sales facilities – plant pharmacies)
– On-line sales (via site)
– Sales via social networks.
(4) Customer relationships – CRM Value Chain Model – based on a high degree of interaction and an exceptional level of trust. This is a model in which consumers play an active role, creating an added value for the company.
So far, at a certain level, awareness has been developed of the need for the development of “environmental protection styles”, but the level of development required has to be further expanded.
(5) Revenue streams – Consumers want to pay for a product that will provide them with functionality, durability, environmental friendliness and aesthetically correct appearance. Now, only practicality and functionality products are paid. Currently, it is paid cash, on the spot, and in the perspective, there is a significant place for on-line sales, as well as card payments.
(6) Key activities:
– Education of users
– Education of employees
– Development of production
– Sales skills and marketing techniques
– Direct sales, retail chains and online sales
– Transaction-based revenue
(7) Key resourses:
– Financial – seed capital
– Physical – facilities, vehicles and machines
– Human – skilled workforce
(8) Key partner:
– Local government
– Companies that are in the chain of business and whose interests fit into the realization of this idea
– Civil sector
– State authorities and institutions
– Responsible individuals and fighters for environmental rights.
(9) Cost structure – The most important are the costs of equipping equipment and equipping work space. The most important resource is certainly equipment and machines, along with quality and trained personnel. The most expensive activities would be: Procurement of equipment, Training of personnel and Establishment of distribution network
4.2 Notes to the canvas
1. customer segment – there are interested buyers / users who would be very happy to use the products of this venture. There is insufficient information for some segments, but this could be overcome by more education activities and distribution of information.
2. value proposition – it is a higher objective than an economic interest, because its realization raises the level of quality in society, involves a greater number of factors in his life and creates a synergetic effect that will give additional impetus to society. A positive image of the local community is created and stronger community support. Economic independence is ensured by one sensitive group of people, and at the same time different ways of dealing with both the society and the environment are stimulated.
3. Channel – traditional channels of sales are established, while for online (on-line) channels it takes a bit of time, but there is surely a real chance for sales to develop through these channels of sales.
4. Customer relationships – depends most on trust among partners, but given that it is a local and relatively small community, these relationships will, along with quality work and business, be quickly built on a satisfactory level.
5. Revenue streams – the current established sales methods and market conditions require some newspaper and changes, and this idea allows them. Consumers want news in this field, so these products fit together with the system values they have met.
6. Key actions – inform, educate, develop marketing activities and manage proposed activities in a way that will ensure achievement of the goal.
7. Key resources – capitalizing on capital of any form can be an obstacle.
8. Key partners – many partners are declarative for the implementation of such projects, but experience indicates that there may be difficulty in realizing. A good and efficient project approach is needed.
9. Cost structure – the biggest challenge is the initial capital that is necessary for the procurement of equipment and training of personnel.
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 Business Enterprises
Law on Social and Child Protection
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
Purchasing and Sales Manager – 1 person
Financial / accounting manager – 1 person
Worker in production – 5 persons
Distributor / driver – 1 person
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)
Purchasing and Sales Manager – in charge of procurements of raw materials and materials for labor, manages labor and market placement of products. If necessary, he / she carries out activities in the field of marketing activities. (Disadvantaged people)
Financial / accounting manager – Financial directors manage financial assets within the enterprise, which implies the management of cash inflows and outflows. They perform their business in accordance with the business policy of the company. In order to know the distribution of funds, it is necessary to compile periodic cash flow plans, as well as reports of executed plans items. They also perform and analyze reports that they produce monthly, quarterly, semi-annual and / or annual. (Disadvantaged people)
Worker in production – management of equipment and means for work in the production of cardboard packaging, paper decoration and biodegradable paper recycled paper. Material handling and packaging of final products. (Disadvantaged people)
Distributor / driver – delivers raw materials and other means of labor, performs final product deliveries and performs other tasks as needed.