Post on 14-Jan-2017
Team MembersFernanda AlvesJoshua DenholtzManuel Roggero
We help initiate and accelerate the revitalization process for
depressed cities
Customer Segments
4
Local Government
Private Owners*
Community Members 70
6
Total
3Event Organizers
83
+ High Line: Director facilities & engineering+ HPD: Assistant Commissioner for Building and Land Development
Business Model Canvass Designed by: City VisionDate: 08.23.2015 Version: 1.0
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Private Abandoned Property Owners Red Tape Management (Permits)Local Government Technical Assessment of SpacesCultural performce Associations Insurance ComplianceEvent Organizers Community Engagement
Key ResourcesProperty use Contracts
Key People: - Legal Experts - Digital Front Back end ProgrammersGovernment PermitsPartnerships with Local SMBs
Cost Structure
1. Variable Cost: Lease contract of abandoned spaces. 2. Fixed Cost: Capital Improvements to abandoned spaces to get them up to "usable" status. 3. Insurance
Multi-sided PlatformThis project is a multi-sided platform because value is exponentially generated as the two of the main agents decide to join. The three main agents are: (1) Owners of the Abandoned Spaces (2) Event Organizers (3) Customers: People who currently assist cultural activities (Broadway Musicals, Opera, Ballet, Theater)
Designed for: Lean Launch Pad (MG-GY 9781)
Revenue Streams
1. Pay per Show 2. Annual Subscription 3. Sponsorships
Platform for joining 4 key stake holders in order to repurpose large urban abandoned spaces within NYC: (1) Community members(2) Local Government(3) Private Owners(4) Event Organizers
Community NeedsPeople need to feel that their community has a clearly defined identity. They feel that communities are being lost to larger spaces such as cities. They urge for spaces to speak and get to know their fellow neighbors.
GET- Partnerships with Cultural performance associations- Revenue share from ticket sales through local SMBs.- Parnerships with Event Organizers. KEEP- Community engagement: online voting of events. GROW- Deploy platform into other US cities - Referral discount program- Referral revenue share program- Free entrance for community members
Channels
Digital Channels1. Mobile APP (Android & iOS)2. Web Site3. On site Digital Kiosks Physical ChannelsLocal Supermarkets, Bodegas, Coffee Shops and Barber Shops. Mass Ticket Sales PlatformsPurchase of event tickets through already established sites: Ticket Master, eTix, Eventbrite.
Day 1
What we thought What we learned
We defined vacant properties and abandoned properties as the same
Many government agencies would be our customers
Most industrial spaces apt for repurposing were privately owned
Abandoned: Properties not paying taxesVacant: Simply not used
Narrowed down the government customers: HPD, EDC, Parks & Recreation
Most are government owned by way of county title search
Key Learnings: Day 1
The value Proposition only had to be one: Betterment of the community
In a multisided market: each customer segment needed a unique value proposition
Property Owners were one customer segment Property Owners had two distinct segments: Private & Public.
Finding the Owner
See Unique Space
City Tax Map to find the block and lot number
Complete a title search using County Clerk’s Records
Owner
Business (Anonymous)
State, Department of Business Records Office Clerk
(by mail only in NY)
Market Size – Day 1 Business Model Canvas
$3.65 Million
$3 Billion
34 US cities with population over ½ millionOne event per week$10 community member ticket saleUS Census age 20-34 (20.9%)Median population of 34 cities
Percent of NY Market$913 Million
If 10% of population goes twice per year
1.Red Tape Management (Permits)
2.Technical Assessment of Spaces
3. Insurance Compliance4.Community
Engagement
1.Property use Contracts2.Legal Experts3.Digital Front Back end
Programmers4.Government Permits5.Partnerships w/Local
SMBs
1.Private Abandoned Property Owners
2.Cultural performance Associations
3.Event Organizers4.Local Government
Digital Channels1. Mobile APP (Android & iOS)2. Web Site3. On site Digital Kiosks4. Ticket Master, eTix, Eventbrite.Physical ChannelsLocal Supermarkets, Bodegas, Coffee Shops and Barber Shops.
1. Pay per Show 2. Annual Subscription 3. Sponsorships
1. Variable Cost: Lease contract of abandoned spaces.2. Fixed Cost: Capital Improvements to abandoned spaces to get them up to "usable" status. 3. Insurance
GET: WOM Local SMBs, Cultural performance associations customer list, Event Organizers customer listKEEP: Online voting of events.GROW: Other cities, Referral discount/rev share program, Free entrance for community members
Local Government HPD
Community Engagement
Lower administrative costs
Private Owners Agents
Industrial / Commercial Buildings
Capital Improvements
Maintaining Tax Revenue
Maximize Cash Flow
Safety to people around building
Affordable Housing
Local Government EDC
Local Government Dpt. Parks
Day 2
Key Learnings: Day 2
What we thought What we learned
Event organizers are willing to sign up front lease contracts for a unique venue
Revenue Model: Product Sale (tickets sales)Subscription
No, it is too risky for an event organizer to have an upfront lease
Revenue Model: Leasing
Government segment clearly defined: HDP (Housing Preservation & Dev)
Government segment clearly defined: EDC (Economic Development Corp)
HPD is willing to invest in capital improvements to get industrial buildings up and running
HPD only interested in developing affordable housing not cultural activity venues
1.Red Tape Management (Permits)
2.Technical Assessment of Spaces
3. Insurance Compliance4.Community
Engagement
1.Property use Contracts2.Legal Experts3.Digital Front Back end
Programmers4.Government Permits5.Partnerships w/Local
SMBs
1.Private Abandoned Property Owners
2.Cultural performance Associations
3.Event Organizers4.Local Government
1. Variable Cost: Lease contract of abandoned spaces.2. Fixed Cost: Capital Improvements to abandoned spaces to get them up to "usable" status. 3. Insurance
GET: WOM Local SMBs, Cultural performance associations customer list, Event Organizers customer listKEEP: Online voting of events.GROW: Other cities, Referral discount/rev share program, Free entrance for community members
Private Owners / Agents
(Industrial)Capital Improvements
Day 3
Maintaining Tax Revenue??
Maximize Cash Flow
Safety to people around building??
Local Government EDC
Concert Goers(18-34)Socialization
Event Organizers(5000+ people)Unique and Turn Key
site (20,000 + sqft)
Govt Processes, Mail, Email, Phone
Multiple Listing Sheets, Real Estate Agencies, Mail (private owners)
Mobile App, Website, Ticket Websites, Local Business Networks
Website, Sales, Telemarketing
Paid from event-term sublease
Fee per ticket sale, subscription
Key Learnings: Day 3What we thought What we learned
Competitors rented city spaces in competition with us
We thought that we were bound to NYC
Customer Segment were all community members
The EDC would be our customer
Petal Diagram: No competitors in our unique space of repurposed industrial buildings
New Hypothesis: Expand to cities that have revitalization on gov. agenda
Narrow down to a specific subgroup: Millennials (20-34) university goers
The EDC does not have an interest in our services
We thought that these unique venues had more value for our customer segment
True: 30% of targeted Millennials were willing to pay more than double for a unique concert venue. Event organizers can reap more value (revenue) from our unique venues.
Corporate Events
Mass Market EventsPop up Stores
Office Space
Approvals ProcessRights to the space
Municipal Zoning approval (Zoning Officer/Panel)
Engineer
Engineer (local Department of Buildings)
General Contractor
Building Permits (local Department of Buildings) Plumbing, Structural, Electrical
General Contractor begins work
Building Inspector conducts plumbing, structural, electrical and final inspections
Building Inspector issues Certificate of Occupancy
Engineer (local Department of Buildings) issues site approval
LIVE NATION PRESENTSCODE
10967-ZX4
SEC #103
STAND UP
THU SEP 24 2015
The KillersLIVE AT THE GOWANUS BAT CAVE
Brooklyn, NYC
ADULT
THIS
TIC
KET
IS N
OT
FOR
RESA
LE, N
OIN
REF
UN
DABL
E
$65.00
LIVE NATION PRESENTSCODE
10967-ZX4
SEC #103
STAND UP
THU SEP 24 2015
The KillersLIVE AT YANKEE STADIUM
Bronx, NYC
ADULT
THIS
TIC
KET
IS N
OT
FOR
RESA
LE, N
OIN
REF
UN
DABL
E
$30.00
The Millennial Experiment
1.Red Tape Management (Permits)
2.Technical Assessment of Spaces
3. Insurance Compliance4.Community
Engagement
1.Property use Contracts2.Legal Experts3.Digital Front Back end
Programmers4.Government Permits5.Partnerships w/Local
SMBs
1.Private Abandoned Property Owners
2.Cultural performance Associations
3.Event Organizers4.Local Government
1. Variable Cost: Lease contract of abandoned spaces.2. Fixed Cost: Capital Improvements to abandoned spaces to get them up to "usable" status. 3. Insurance
GET: WOM Local SMBs, Cultural performance associations customer list, Event Organizers customer listKEEP: Online voting of events.GROW: Other cities, Referral discount/rev share program, Free entrance for community members
Private Owners / Agents
(Industrial)
Capital Improvements
Day 4
Maintaining Tax Revenue??
Maximize Cash Flow
Safety to people around building??
Government: Brooklyn Council Members
Concert Goers(18-34)
Socialization
Event Organizers(5000+ people)
Unique and Turn Key site (20,000 + sqft)
Govt Processes, Mail, Email, Phone
Multiple Listing Sheets, Real Estate Agencies, Mail (private owners)
Mobile App, Website, Ticket Websites, Local Business Networks
Website, Sales, Telemarketing
Paid from event-term sublease??
Fee per ticket sale, subscription??
Brand Sponsorships??
Commission from space sharing platform
Platform for a unique, large space marketplace (airbnb)
Key Learnings: Day 4What we thought What we learned
Concert goers are part of our customer segments
We had event planners and concert goers as customers
Local people in the Gowanus community would be interested in revitalizing the Bat Cave
Individual government agencies have funds for repurposing buildings.
Event goers are not a segment for our business model, they are a key partner
Our best customers are city council member and renters of the unique space, not exclusively event planners
Over 50% of people in the neighboring Whole Foods Market were willing to sign a petition to revitalize the Bat Cave
Our government segment are the local council members.
Event Planners would sublease unique space in the range of $10k to $100k
For a space Event Planners would not realistically pay over $50k
Customer Segment Personas
Concert Goers - Millenials
• Millennial’s age 20-34, male and female• College students or had just entered into a career and/or
first jobs.• Love music, always walk around with headphones.• Ethnically and racially diverse • They purchase multiple concert tickets a year • They desire an active social life• Music is an important, if not the most, part of their lives • They value technology and are extremely “connected”,
they use multiple devices• They value authenticity as more important than content• They aren’t usually influenced by advertising, they are
looking for a more personal approach
• Young, active council members.• On the committee Housing & Buildings and or Land Use.• Understands vibrancy as unique venues for cultural
activities.• Engaging and prone to take innovative risks.• Needs supports from community members in order for
reelection.
City Council Members
Location price experimentDear Amanda,
Thank you so much once again for taking the time to talk to me last Tuesday. I hope you can also help us with a few follow up questions. Through EDC we have some investors really passionate about our idea and ready to put down $1.8 million dollars into the property you see below, with the before and after version. The Before Version After Version
The property will be fully renovated and ready to host any kind of events. Would your company pay $200,000 per event at this historical and unique location? How often would you rent it?
We really appreciate your feedback.
GET:
KEEP:
GROW:
V 1.1
Local Council Members
Socialization, Events
Renters(Event Organizer,
Retail)
Unique Real Estate Location
Sublease
Keeping voter base happy
Local Political Motivations
(safety, community activities, spur business with
interesting venues)Established amount of
exclusive access or rights to the property for income generation
Council Member Chief of Staff by
phone/email
Event Goers
Identify value added govt properties with revitalization interest
Organize Financing and Execution of
Fix Ups
Crowd Funding Platform
Voters (community members)
Retail Space Web Listing
Website/Phone Calls to Event Organizers
Fundraising
Fixed: Engineering, Raw Materials, Contracting, Permit/City Fees, Insurance, Web Development
Variable: Maintenance, Telemarketer
Lobbyist
Web based Petition
Long term Contract
Social Media Content
Advertising
The Petition for Gowanus Bat Cave Revitalization
Petition served two purposes
1. An experiment to test voting base of a counsel member’s interest in taking action to rehabilitate the Gowanus Bat Cave
2. Establish and begin developing the Customer Relationship with City Council Members by way of a petition
Testing Hypothesis with ExperimentsHypothesis Experiment Pass/Fail Criteria
Cities beyond NYC are interested in revitalizing abandoned spaces.
Price range for lease per event between $10k – $100K
20% of our targeted abandoned properties can be fixed up at an economically feasible price for under $1M
People within a community care for repurposing vacant industrial buildings.
Millennial event goers are willing to pay more for an event held in a unique venue.
Call various city government with a donation pitch for revitalizing industrial spaces
Direct email to event organizers offering a lease of $200k per event on a repurposed industrial building
Solicit a non binding quote from an engineer and contractor
Sign a petition for repurposing Gowanus Bat Cave (Proxy)
True ticket sale comparison: Yankee Stadium Concert ($30 ticket) vs. Gowanus Bat Cave ($65 ticket)
At least 25% of possible customers choose higher
ticket value
Result
31%
59%At least 50% of community
members sign petition
Range of lease amount at least: $30K
Max$50K
Within five phone calls reach an interested official TBD
TBD1 of 5 visited sites meets the
capital expense requirements
Here’s What we are Going to Do Next
1. COMPLETE EXPERIMENT: Call various city government with a donation pitch for revitalizing industrial spaces
2. COMPLETE EXPERIMENT: Solicit a non binding quote from an engineer and contractor
3. FORM HYPOTHESIZE: How can we grow the city council members as customers?
4. FORM HYPOTHESIZE: What kind of agreements, contracts, and opportunities can get from revitalizing government spaces?
5. FORM HYPOTHESIZE: What revenue amount can we fund raise from crowd sourcing and other resources?
Customer Segments
Cost Structure
Business Canvass Box
Customer Relationships
Revenue Streams
Distribution Channel