EcoBuilding EcoBuilding Business PlanBusiness Plan

Karin Auslender

Amine Choukir

Aurélien Petit

Vincent Wurtz

Idea / ConceptIdea / Concept

Ecobuilding

Ecobuilding

Integrated solutions

Integrated solutions

High quality services

High quality services

High architectural identity

High architectural identity

High architectural

identity

High architectural

identity

Introduction Introduction

A huge marketA huge market :• 62% of Europeans are homeowners

A favourable context :A favourable context :• Political context in France • New building standards environmentally oriented such as the

HQE standard (High Environmental Quality) begin to gain greater importance

• 78% of French people would be ready to pay more in order to have an ecological house[1]

A non-well structured market :A non-well structured market :• The interest for eco-houses and recourse to sustainable

development logics is relatively new• No clear leadership is established yet.

TheThe opportunityopportunity

[1]http://programmes.france2.fr/legitimesdepenses/index.php?id_article=417&id_rubrique=141&numsite=136&page=article

Customer’s benefitCustomer’s benefit

Project’s point of viewProject’s point of view

• All in one solutions one interlocutor• Overall view of today’s possibility in eco-houses• Near customer’s needs and expectations through partnerships

with local architects and suppliers

Product’s point of viewProduct’s point of view

• Healthier and more comfortable lifestyle• Benefits from energy savings• Self satisfaction: participation to the environment protection

Range of productRange of productEnvironmental friend (1200 €/m2):Environmental friend (1200 €/m2): For people having a much tighter budget:Design proposals: performing wall isolation, natural ventilation, etcRespect for HQE® standards

Environmental close friend Environmental close friend (1300 €/m2):(1300 €/m2): Environmental friend + additional featuresDesign proposals: geothermic, earth cooling/warming tubes, photovoltaic panelsOver-cost will be partly overcome by taking advantage from current legislation.

Environmental top friend Environmental top friend (1450 €/m2):(1450 €/m2):This range of product address to people wanted to go beyond current standards and having quite important budget to realize the eco-house of their dream.

http://www.la-bonne-maison.com

Market analysisMarket analysis

[1] Source: http://www.developpement-construction.com/txt_chiffres_cles_acteurs_maisons_individuelles.htm [2] Crédit Foncier

Private individual’s house marketPrivate individual’s house market

• Above all regional

• 3800 constructors [1] good in term of competition less attractive in term of development

• 562.000 new houses in 2006 = 12 billion € [2]

Huge market (everyone is able to have some shares)

• Steady growth of 5%

Main goalMain goal• Become leader in the ecological housing consulting

in France

Core BusinessCore Business• Construction and supervision of ecological houses

Target marketTarget market• Young families with parents below the age of 50

StrategyStrategyStrategyStrategy

StrategyStrategyCompetitors Competitors and market and market positioningpositioning

Development StrategyDevelopment StrategyEarly stageEarly stage• 1st projects designed internally• Partnership with local suppliers and

construction company

1st Development Phase1st Development Phase• Regional scope:

– Partnership with local architects

2nd Development Phase2nd Development Phase• National scope:

– Creation of franchise networks– Development of new partnerships with

architects

Company structureCompany structure

Ecobuilding

Ecobuilding

Sales & Client

relationship

Sales & Client

relationship

Partners and suppliersPartners and suppliers

Project management

and monitoring

Project management

and monitoring

Relationship with

partners and

suppliers

Relationship with

partners and

suppliers

MarketingMarketing

Suppliers of power systems

Suppliers of power systems

Local building companies

Local building companies

Local architectsLocal architects Other research consultancies

Other research consultancies

ClientClient

Marketing strategyMarketing strategyBranding based on:Branding based on:

High-quality and knowledge in the ecological field

General marketingGeneral marketing

Additional featuresAdditional features Contracts with clients

Financial analysisFinancial analysis• The french context is very positive towards real estate

market :– GDP growth of 2% in 2006– Recent laws in favor of new real estate for owners– Credit taxes for customers

• If we consider a growth rate of 5% for the real estate market, we can expect a 12% growth rate:– Environment content : our differentiation, fashionable notion– Legal content : credit taxes, government subvention for

customers

• Goal : building 10 houses/month at the end of the 1st year

Financials and risksFinancials and risks

Good scenarioGood scenarioAssumptionsAssumptions

• We make all our objectives, with a growth rate of 12%• We also create a franchise at the beginning of the 3rd year

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Gross Revenues (k€)

Houses' sales 11082 12412 13901 15569 17438 19530Franchise sales 11082 12412 13901 15569

Total Gross Revenues 11082 12412 24983 27981 31339 35100

Operating Expenses (k€)

Production cost 10415 11665 23479 26297 29452 32986

Advertising 32 47 159 174 274 274Rent 24 24 48 48 48 48Other 20 10 30 20 20 20Salaries (employees) 66 66 132 132 132 132Partnership 12 20 320 40 40 40

Total Operating Expenses 10569 11832 24168 26711 29966 33500

Gross Profit (k€) 513 580 815 1271 1373 1599

12

34

56

Good scenario

0

500

1000

1500

2000

Oper

atin

g

Pro

fit

(k€)

Year

Variation of Operating Profits

Good scenario

Bad scenarioBad scenarioAssumptionsAssumptions• Our sales don’t take off, and our growth rate is only 5%• No creation of franchisesIncome Statement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Gross Revenues (k€)

Houses' sales 7872 8266 8679 9113 9568 10047

Total Gross Revenues 7872 8266 8679 9113 9568 10047

Operating Expenses (k€)

Production cost 7384 7754 8141 8548 8976 9425Avertising 32 40 45 50 55 60Rent 24 24 24 24 24 24Other 15 15 20 20 20 20Salaries (employees) 66 66 66 66 66 66Partnership 12 20 22 25 25 25

Total Operating Expenses 7533 7919 8318 8733 9166 9620

Gross Profit (k€) 339 347 361 379 403 427

0

200

400

600

1 2 3 4 5 6

Bad scenario

Year

Variation of Operating Profits

Bad scenario

Financial analysis: Financial analysis: ConclusionsConclusions

• In both cases, we are profitable• We dont’need VC : we expect to raise personnally the required capital

equally : 30 000€ per partners

Risk analysisRisk analysisEntry barriersEntry barriers

Risk factorsRisk factors

Possible exit strategyPossible exit strategy• Sale to a bigger company (ex: leader of the market (Geoxia))

Risk analysisRisk analysis

Management teamManagement teamCurrently on BoardCurrently on Board

• CEO: Aurélien Petit• Sales Manager: Amine Choukir• Project manager: Vincent Wurtz• Marketing manager: Karin Auslender

Missing membersMissing members

• Architect• Jurist• Accountant

The teamThe team

Thank you for your attention!Thank you for your attention!

Any questions?Any questions?