easyrent.com - assignment #7 - oep

Assignment #7:Opportunity Execution Project

The Idea:Create an online platform for renters and landlords monthly payment.

The Team:

Jairo Neuta – Team LeadEngagement Management Specialist at Avaya Colombia (business collaboration and communications solutions). Enjoys new technology startups.

Juan Bernal – The Marketing MasterDegree in Social Communication. Likes motorsports, technology, international relations, marketing, communications and travel.

Pablo Gutiérrez – Ecommerce ChiefDegree in Business Management. Addicted to startups related to ecommerce and customer service.

The Team:

+3 Colombians in different sectors.

National problem = Opportunity.

=A solution to test

and develop.

Market: Each year, more and more local universities

are opening programs for foreign students.

Hundreds of international employees are transferred to Colombian companies.

Both parts want to find a new place to live and simplify the monthly payment with

their landlords.

Market:

“192 million people live outside of their country.”

International Migration Organization. 2013. http://www.iom.int/cms/es/sites/iom/home/about-migration/world-migration.html

Market:

International Migration Organization. 2013. http://www.iom.int/cms/es/sites/iom/home/about-migration/world-migration.html

15.140 migrants from United States

5.327 migrants from Spain

4.054 migrants from Peru

2.294 migrants from Mexico

2.570 migrants from Argentina

Business Model:

Two revenue channels:

1. $80 Annual fee subscription per landlord.

2. 5% Monthly transaction commission.

Check here our complete Business Model Canvas or visit https://novoed.com/venture2/team_ideas/8094

Step To Step Revenue Process:Fee revenue stream.

1 The landlord visits the site and signups. 2 Buys the annual

plan with online payment. 3 Our provider

deposits in our virtual account. 4 Each month we

transfer to a savings account.

Yearly Auto Renew Option Available For Constant Cashflow!

Step To Step Revenue Process:Transaction commission revenue stream.

1 The renter visits our website and logs in. 2 Pays his/hers

rent price using our provider. 3 Deposits 5% in

our account and 95% to landlord.

4 Each month we transfer to a savings account.

We Become a “Month To Month Tool” For Landlords And Renters!

Revenue Model Test:

Contact 9 landlords in one week. Ask them to prepay our service with a

“VIP Promo Price” of $40 a year (50% off).

The Results…

3 Landlords Accepted!Now we have $120 in our hands and a platform to build!

Per Unit Revenue Vs. Cost:

$80 a year fee per landlord plus 5% commission per transaction.

Revenue per unit: $80

Unit = Landlord (Customer). Estimated landlords in the first year: 50

Revenue Per Unit:

Platform creation: $2.500 Outsourced tasks: $500 Material costs: $250 Cost per unit: ($2.500 + $500 +

$250) / 50 customers = $65

Cost Per Unit:

$80 > $65There Is Profit!

Calculated Costs:

GoDaddy.com Hosting:$4 monthly

GoDaddy.com Domain:$11 yearly

Platform Creation:$2.500 one time pay

Outsourced tasks:$500 yearly

Fixed costs.

Bank transaction commission:2% of the transaction value

Variable cost.

Calculated Costs:

No EmployeesUntil we achieve market fit we

will make all the necessary work.

No OfficeUnnecessary physical space. By now, we can work from

home.

As Lean As Possible!

Free MentorshipNo consultants. We have

great mentors we can refer and learn.

Viable Business Model?:

5 Customers Needed

For BreakevenThe numbers indicate that it’s a viable business model. The technology is already invented and the need exists.

Marketing Strategy:

Test the idea before developing any technical platform or applications.

Bring traffic to a simple landing page. Call to action: Obtain the most amount of

emails in exchange of an intangible benefit. Know the specific language to use by doing an

A/B test with the value proposition text.

Specific Target Market:

1. Renters Who are they?

Colombian renters between 23 and 30 years old. Students or employees with few free time.

Where are they?: Universities, companies, social networks, newspapers, radio stations.

Specific Target Market:

2. Landlords Who are they?

Colombian lessors between 30 and 45 years old. Employees with few free time.

Where are they?: Companies, newspapers, magazines, radio stations, social clubs.

Marketing Experiments and Tracking:

Specifications: Time: 1 week Channels: Facebook and Google Ads. Budget: $25

Marketing Experiments and Tracking:

Results: Total visits: 200 (75% Facebook Ads, 25% Google Ads). Average cost per click: $0,13

20 Renters and Landlords Registered Their Email!Conversion rate: 10%

Marketing Page:

Marketing Page:Logo

Value Proposition and Description

Call to action

Features

Call to action

Marketing Page:

Check out our LIVE landing page here or visit:

easyrentcolombia.weebly.com

Prototype:

In the next slides you will see a prototype of the main features for renters and landlords.

Prototype:Renters

1. The renter logins with its email and password. Password

JavierFernandez@gmail.com

••••••••

Prototype:Renters

2. Decides to make his/her rent payment.

Prototype:Renters

3. Provides the necessary data and ends the

transaction.Javier

Fernandez

6812 6672 3341 2128

05 17 557

Calle 85 # 4 -34

Bogotá

DC 002

571 6845712

JavierFernandez@gmail.com

Prototype:Landlords

Congratulations! Javier has made his rent payment and it has been deposited in your

bank account.

Check your balance state here.

1. The landlord receives an email notification.

Prototype:Landlord

2. Logins with its email and password. Password

CamiloVargas@gmail.com

••••••••

Prototype:Landlord

3. Reviews each of his received payments amount and status.

Camilo!

3 Landlords are giving us constant feedback

as pioneer customers before launching.

COMING SOON