Transferring the “we movement” to a different business line€¦ · Heinrich Heine University...

Transferring the “we movement” to a different

business line

January 2017

Heinrich Heine University DuesseldorfUrsula Hilgers, Louisa Schuessler, Johannes Gerlach, Hannes Kurz

DuesseldorfConsultingMandate

04/01/2017 Heinrich Heine University Duesseldorf 2

How to extend wework’s product portfolio in order to create a world

where people work to make life, not just living.

DuesseldorfConsultingRecommendation


Supplement your business ecosystem by wefinance in order to

benefit from an interconnected business model

DuesseldorfConsultingAgenda

1. Mission, culture and values2. wework and welive3. Strategic alternatives for new business lines4. Implementation of wefinance5. Time and costs6. Wrap-up


DuesseldorfConsultingKey issues

Fit of product

extension to mission and

culture

Create a unique customer journey

Maintain a strong

business model


DuesseldorfConsultingMission and values


To create a world where people work to make a life, not just a living

Inspired

Tenacious

Entrepreneurial

Authentic

Grateful

Together

DuesseldorfConsultingwework’s success story

Mission

Strong business


2016• 77 locations• 50,000 members• 1000 employees

Business Model:

Rent office space

Re-rent in smaller subunits

Network of businesses

2021

4

43

US + Canada Middle + South AmericaAustralia EuropeAsia Israel

DuesseldorfConsulting

wework offers four different pricing models and welive offers two pricing models

We membership: $45/month

Hot desk: $220/month

Dedicated desk: $350/month

Private office: $450/month


Standard room: $1,375 Private room: $2,000

wework

welive

DuesseldorfConsultingThere are five main target groups of wework

Start-ups and creative companies Millennials

Small services business & NGOs

Polished professionals Enterprise


The network of start-ups and creative companies fosters the mission of making a life

DuesseldorfConsultingCurrent business lines

wework welive ?


The success story can be conveyed into a different sector


How to extend weworks product portfolio in order to create a world where people work to make life not just living?


wetravel westudy wefinance

Organized journeys around the world with local wetravel tour guides.Get a real local insight in different wetravel cultures.

Online marketplace where borrowers and lenders meet. Create a platform to change capital, ideas, knowledge and experience.

Adjust your business model of rework to students and pupils




Alternative Criteria wetravel westudy wefinance

Advancement of mission & culture 5 5 5

Market size (opportunity) 3 2 4

Competitive advantage deriving from current business

4 2 5

Strategic value 3 3 5

Sum of valuation 15 12 19

DuesseldorfConsultingBuild up your brand wefinace


Create an environment of comfort to enable a cooperation of trust

• Start-ups• InvestorsCustomer segment• Platform to introduce lenders and borrowers• Offer space to meet, share knowledge, negotiate, discuss and cooperateProduct

• San Francisco, Boston, London, Berlin, Shanghai, Tel AvivPlace• Rent additional space• Internal design based on the wework approach (offices and open spaces)Buildings

DuesseldorfConsultingSet up the digital market place

App +

Website


Create a digital place where lender and borrower can meet

• Profile of start-ups• Business plan• Amount of credit needed• Requested financing type

• Profile of investors• Financing type• Financial resources• Personal information and expertise

• Events• Internal wiki basic information about entrepreneurship

DuesseldorfConsultingCreate value added services for your members

Events for exchanging information

Support of young entrepreneurials

Comfortable, transparent atmosphere


Secure your inspiring culture, strong community and use this network effect to communicate your new brand

DuesseldorfConsultingFinance your new brand wefinance

• Monthly fee of USD 10• Fee per investment: -1% for financing < USD 1 million • Fee per investment: -0.5% for financing >= USD 1 million• Room rent: USD 45 / day

Price


Secure the profitability of your company

DuesseldorfConsultingImplementation plan and associated costs

Measure 01 2017 06 2017 01 2018 06 2017 01 2018 06 2018 Costs in USD

Searching foradditional capacity

100,000

Negotiation and closing of new contracts

100,000

Redesign new buildings

100,000

Renovate new buildings

30,000,000

Digitalization of market place

5,000,000

Marketing 3,000,000


Total required investment: 38,300,000 USD

DuesseldorfConsultingFinancial outlook and break-even analysis

2018 2019 2020 2021 2022 2023

Investment -300000 -38000000

Additional rent -104400 -104400 -104400 -104400 -104400

Deals 50 80 120 150 150

Additional revenue 4000000 10000000 25000000 30000000 30000000

Break-even X


Wefinance is likely to reach break-even in 2021

DuesseldorfConsultingYour company in 2025


wework welive wefinance

2016• 77 locations• 50,000 members• 1000 employees

2016• NY• Washington

2025• 6 basis• Total deals closed: 750

DuesseldorfConsultingRisk and contingency

1. No acceptance of the new market place Unique culture will attract people especially for high investments

2. Failed investment might damage your reputation You offer consultancy for business models and communicate that your are just offering a market place

3. What happens if investors and start-ups will negotiate on a secret basis to avoid the investment fee? Adjust your terms and conditions (sanctions)


Impact

Probability

1

23

DuesseldorfConsultingWrap-up

Maintain a strong business model

Fit of product extension to mission and culture



Supplement your business ecosystem by wefinancein order to benefit from an interconnected

business model







business model

Thank you.

Transferring the “we movement” to a different business lineMandateRecommendationAgendaKey issuesMission and values wework’s success story wework offers four different pricing models and welive offers two pricing modelsThere are five main target groups of weworkCurrent business linesHow to extend weworks product portfolio in order to create a world where people work to make life not just living?How to extend weworks product portfolio in order to create a world where people work to make life not just living?How to extend weworks product portfolio in order to create a world where people work to make life not just living?Build up your brand wefinaceSet up the digital market placeCreate value added services for your membersFinance your new brand wefinanceImplementation plan and associated costsFinancial outlook and break-even analysisYour company in 2025Risk and contingencyWrap-upWrap-upWrap-upWrap-upThank you.

Transferring the “we movement” to a different business line€¦ · Heinrich Heine University...

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