Marketing Leadership Capstone: MKTG 5506 - 0LA

Business Plan

Developed by: Jag Bining, Daniella Fortino, Daniel Lew,

Chantel Petam, Daniela Quintana, & Matt Waghorn

The Humber Business School

Reviewed by: Tony Gifford

Submitted: April 8, 2016

1

2

Executive Summary

THINK is a community workspace that combines digital and physical. The emphasis is on

fostering creativity whilst empowering customers to take control of their own education.

Customers pay for usage of the space, giving them access to the community, supplies (such as

3D printer, high speed internet, internet resources, free coffee/tea), in-house events and

workshops.

THINK is owned and operated by its six founding partners: Jag Bining, Daniella Fortino, Daniel

Lew, Daniela Quintana, Chantel Petam and Matt Waghorn. Each partner with his/her unique

background and experience will help bring THINK closer to it’s final goal.

THINK has identified five companies in Toronto competing in the makerspace industry.

However, neither of these companies are focused on education in the broad sense. The

majority of the spaces operate on a niche crowd within a niche crowd. THINK hopes to offer

broad services to a broad crowd. Through and that is where THINK also stands to gain ground

on offering services to the casual customer as much as the full time-member; Whether bringing

a one time business meeting or continuously working on a project, there will be incentives in

place to benefit from both of those.

The design of THINK spaces both digital and physical will be of utmost importance in cultivating

a strong customer-brand relationship. Doing so will enable THINK to expand past its current

physical space and become a phenomenon, extending its reach to other partnering spaces,

other locations, and to Toronto culture.

During the months leading up to the grand opening, THINK will employ a host of strategic

marketing and promotional campaigns in an effort to generate a buzz and increase brand

awareness. Some of these include: out-of-home advertising, membership discounts, social

media push, and experiential marketing.

THINK is asking for $150,000 in the form of two payments, $100,000 for the initial startup fees

and $50,000 after 6 months to cover growth and operating costs.

3

One Page Business Plan

Overview

What will you sell?

● Workspace usage (Hourly, monthly)

● Local made art/products

● Entrance for events

Who will buy it? Why?

● Young thinkers, taking education and work into their own hands.

● BECAUSE there is a weak ROI ($ and time) for post high school education and a hunger

for creative space for self-starters.

What’s in it for your customer?

● Access to a space and a community that will help foster connections and creativity.

Revenue

What will you charge? Why?

● $2/hour, $15/day $60/month ($32 for students), $540/year

● 10% commission from local made art/products

● Events TBD based off specific events

● BECAUSE compared to the services and prices other spaces in the same market offer,

ours is effectively priced. Also 10% commission is a lot lower than most galleries,

enticing them to use our space instead.

How will you get paid?

● Credit*, debit, cash (*Pushing for credit card on file to charge customers with less hassle

whenever they use the space)

How else can you make money?

● Advertising real estate on a podcast, in store, website, app.

● Selling branded products

● Offering professional services to members using network of existing members.

● Commission from usage of peer-to-peer education app.

● Opening up partnered spaces in existing spaces (i.e. public libraries)

Marketing

How will your sales suspects learn about your business?

● Word of mouth, social media, newsletter, advertising at relevant events

How will you get referrals?

● Incentives for bringing people in

● Being a space people want to bring business meetings to, or telling their friends about it.

Success Criteria

4

How will you know you are successful?

● When growth allows for expansion

● Attaining 70+ regular members, 20+ casual guests/day

● When financial goals are met

What metrics will you use to validate your number of customers?

● Database of members sign ins/outs (as well as for one time customer)

What annual net income will you strive for in year 1, 2, and 3?

● $100 000, $200,000, $500,000 respectively.

OBSTACLES/CHALLENGES SOLUTIONS

Differentiation at the start Clear targeted marketing & vision

Growing fast enough at the start

Target influential people Implement fun, engaging, productive atmosphere.

Customer seeing app/website as being beneficial

Use of A-B testing, great front-end & back-end design Constant user feedback loop, using information to update tech.

5

Business Overview and Business Strategy

Vision

Malcolm Gladwell talks about three archetypes of people integral to change, in his book The

Tipping Point. Connectors, whose job it is to link people together, networking ideas and

knowledge. Mavens, the information bank, retaining specialized knowledge and connecting you

with the marketplace. Lastly, Salespeople, those teeming with empathy, able to persuade the

unconvinced of their ideas and mission.

Everyone is associated with one of these archetypes, with each bringing a unique ability to the

table. These work best in tandem, the three of them working together to bring about new ideas

to the world. Community, education, and empathy. These three concepts provide the framework

of the initiative. This is THINK. It’s a creative hotspot where you can build collaboratively or

individually, be a well-known face or make a casual appearance, and share your ideas with

those around you or with the world. THINK wants to empower people to take control of their own

education. It’s a place for growth. THINK will provide services on the basis of inclusivity and

respect. Race, colour, religion, sex, national origin, sexual orientation, age, disability, and

genetic information will not be an issue.

Services and Products Offered

THINK acknowledges that the working landscape is changing. This changing landscape places

THINK in an opportune position. Toronto Real Estate is on the rise, making it harder for

independent workers to find an affordable place to work. The sharing economy is becoming the

norm for services, THINK will follow in suit, acknowledging the user base as being an integral

part of learning, growth, and profit. There are a wealth of possibilities that open up once a strong

member base is achieved. So… Why choose THINK?

- Access to professional services for members:

● Using the member's knowledge, services such as programming, design,

marketing, audio/video production, writing, etc. will be provided.

- A place to showcasing your work:

● A rotating display of members’ work will be on display for people to learn more,

purchase, or collaborate.

- Access to in-house services

● Fibe speed internet

● 3D printer

● Ability to bring in own food

○ Subsidized food delivery through apps like Foodora

● Free coffee/tea

● Projectors/Screens

6

● Chalkboard/Whiteboards/Office supplies

● Boardroom

● Physical resource library

● Collaborative workspace

● Access to professional databases (i.e. JSTOR, PNB, etc.)

- Ability to attend and host various workshops and events:

● To initialize THINK as a player in the Toronto creative business sector, events

such as speed dating for ideas, skill training, lecture series, potlucks, guest

speakers, book club, pitch sharing, hackathons, etc.

- Access to an app that will seamlessly integrate the community:

● The first part of the app development will be focused on creating a geo-based

community where members can post queries and observe each other's work.

There will also be messaging enabled in this.

- Access to a peer-to-peer education platform covering a wide range of topics:

● THINK will act as a launching pad for the platform. It will enable members to host

their own classes/workshops/bootcamps out of THINK and partnering spaces.

There will be a small fee to hosting your own class, as well as attendees (open to

public but cheaper for members). When your class is over, attendees rate the

class/teacher. Each consecutive class you host raises the attending cost (more

demand for the class, the higher the cost, capping at a reasonable point).

Eventually with enough momentum, the app will allow members to host out of

their own space. Similar to the AirBnB model, it will be an open sourced,

accountable, demand based economy. This will empower people to put

education back into their own hands and begin the democratization of education.

● This will become a strong revenue generator, collecting revenue from:

○ Hosting fees

○ Attendance/membership fees

○ Partnering/Sponsorships

○ Advertising

7

Strategic Goals

Working with a designer, we want to create a static space with beautiful aesthetic to develop the

THINK brand. Static space in the sense that the furniture and accessories can be manipulated,

changed, and rearranged dependent on what the space is being used for, and who is occupying

it. This creates an environment that fosters creativity, think of it as rearranging your Scrabble

letters to find the hidden word you could not find before.

THINK wants to disrupt the education sector as well as acting as a supplement to the learning

done within the private education systems and on the job.

At the core, THINK is a team of marketers with a keen eye for developing the world. This puts

THINK in an excellent stance to create a strong brand for the workspace, which other

workspaces lack. The cultivation of the THINK brand will lead to opportunities including:

- Franchising:

● Creating multiple locations strengthens the brand and creates more spaces for

members to interact with each other.

- Opening specialized spaces with partners:

● Example, partnering with the Toronto Public Library, offices, agencies, and so

forth, to help turn their spaces into a place that’s more appealing for

entrepreneurs.

- Additional revenue streams with THINK branded products:

● Creating a visually appealing brand and business is important. THINK wants its

members to feel a sense of belonging attached to the brand, where they would

promote it on their own through endorsement.

8

Management Structure

THINK will employ a unique customized management structure. THINK will operate as a

partnership between the six managing partners. The creators of THINK do not believe in a

bureaucratic and hierarchical management structure where there are managers and

subordinates, rather they believe in family. The idea is simple: unite as a family to contribute

and support each other in achieving strategic business goals. Though a simple idea of business,

meeting and exceeding customers’ needs and expectations will require a joint collaborative

effort between all members. As in every business, there are key positions that ensure business

is running smoothly, functions in place are efficient and effective, and that overall business

objectives are being met.

Roles and Responsibilities

Area Responsibility Qualification

Financial and

Administration

Manager / Director

· Monitoring progress of the business

towards achieving the objectives of

each manager.

· Coordinate the business team.

· Appointing with relevant parties,

such as shareholders, potential

immersionist, etc.

· Develop budgets.

· Performance cost reduction

research.

· Business financial planning.

· Bachelor in Business Administration

or subject related to the field.

· At least 2 years of experience in the

industry.

· Knowledge about business

operation and planning.

· Leadership.

· Excellent computer skills and

proficient in excel, word, outlook,

and access

· Excellent communication skills both

verbal and written

Operations

Manager

· Overseeing the provision of services.

· Ensure the business is running as

well as it possibly can, with a smooth

efficient service that meets the

expectations and needs of

customers and clients.

· Guarantee the provision of inventory

(paper, ink, coffee, etc)

· Schedule workshops, events, etc.

· At least 2 years’ experience in

Financial Management

· Strong background and work

experience in Finance

· Excellent computer skills and

proficient in excel, word, outlook.

· Excellent communication skills both

verbal and written

· Budget development and oversight

experience

· Delegate responsibilities effectively

9

Marketing Manager

· Planning campaigns and managing

budgets

· Organizing the production of posters

and POP material

· Designing social media strategies

attending trade shows, conferences

and sales meetings

· Making sure that campaigns run to

deadline and are on budget

· Monitoring and reporting on the

effectiveness of strategies and

campaigns managing a team of

marketing executives and assistants.

· Develop customer database.

· Upload and design website.

· Bachelor in Marketing or

Advertising.

· At least 2 years’ experience.

· Strong background and work

experience on social media,

marketing strategy, customer

relationship, and promotions.

· Excellent computer skills and

proficient in excel, word, outlook,

and access.

· Excellent communication skills both

verbal and written

· Strong knowledge and manage

social media (Facebook, Twitter,

Instagram, Snapchat)

· Knowledge about websites and

database programs. .

Account Manager

· Build and maintain strong, long-

lasting customer relationships.

· Develop a trusted advisor

relationship with key accounts,

customer stakeholders and executive

sponsors.

· Ensure the timely and successful

delivery of our solutions according to

customer needs and objectives.

· Communicate clearly the progress of

monthly/quarterly initiatives to

internal and external staff.

· Forecast and track key account

metrics.

· Identify and grow opportunities within

territory and collaborate with sales

teams to ensure growth attainment.

· Bachelor degree or equivalent.

· Proven account management or

other relevant experience.

· Experience in delivering client

solutions based on customer needs.

· Proven ability to manage multiple

projects at a time while paying strict

attention to details.

· Excellent listening, negotiation and

presentation skills.

· Excellent verbal and written

communications skills.

· Lead creative sessions.

· Develop creative programs and

design concepts that meet the

business objectives of the

organization and that advance the

brand strategy.

· Supervise and inspire the creative

team of vendor partners; generate

· Undergraduate degree in Fine Arts

or related field or equivalent visual

design and management with at

least 1 of experience.

· Experience working with large-scale

web sites, e-marketing, and

advertising.

10

Creative Director

multiple concepts for a campaign or

Project.

· Work with the account team and

marketing team to develop concepts

and present to management.

· Provide quality control over

concepts and projects.

· Must possess a thorough

understanding of interactive

communications and delivery

systems, processes, and user

interface design as well as industry

best practices.

· A strong working knowledge of

experience design, brand

development, interactive commerce

and creative process.

· Print and web design capabilities.

· Experience with software such as

Photoshop, Illustrator, InDesign &

Flash

· Experience with Adobe AfterEffects

& video editing..

· Excellent communication skills both

verbal and written

Management Profiles

Jagraj Bining is an Economics graduate from McMaster University with a passion for business,

music, nutrition, and fitness. After serving and working odd jobs, Jagraj decided to pursue a

postgraduate certificate in Marketing from Humber as he believes the program suits his

strengths.

Daniella Fortino completed her Undergraduate Degree in Sociology at Queens University.

Feeling like she needed some more creativity in her future career she decided to attend Humber

College's Marketing Management program where she was able to tie her interest in social

behavior with figuring out ways to market and advertise to different target markets. Daniella’s

passion for health and wellness led her to be a fitness instructor where she motivated others to

reach their personal goals and feel good about themselves. She believes that creativity is

intelligence having fun!

Daniel Lew has been a connector at heart for years. In his university years he built a following

of individuals by hosting arts and music events out of his house. The events showcased local

artists and musicians work, bringing together community and innovation. Daniel took

Psychology and Sexuality in his undergrad at the University of Waterloo, and is currently

finishing up a post-graduate degree in Marketing Management through Humber College. Daniel

has been entrenched in the educational system for years and understands what students and

budding thinkers are hungry for. Daniel has worked in the hospitality sector in various

restaurants (small and large) and hotels, understanding customer service to be integral in

creating happy communities. With a thirst for knowledge, he is constantly synthesizing new

11

media information, staying on top of budding trends in technology, education, journalism, and

arts.

Daniela Quintana is from Venezuela and has a Bachelor of Arts in Communications where she

developed her skills in marketing, advertising, journalism, design, and audio-visual. She has

over 4 years of experience in different areas of communication such as radio production,

design, customer relations, advertising, promotions and marketing. She has acquired skills in

different areas such as social media, creative designs, agency-client relations, brand campaigns

for Coca-Cola Venezuela and Venezuelan company, Mustela. Last spring, she challenged

herself and moved to Canada to complete her postgraduate studies in Marketing Management

at Humber College. Daniela also has professional communication skills including fluency in

English and Spanish.

Chantel Petam is a generator of creative content. Chantel graduated from the University of

Toronto with an Honours Bachelor of Arts in Economics and Human Resources. Combining her

business background and passion for strategic creativity, Chantel decided to pursue a career in

marketing! She is currently completing her postgraduate studies in Marketing Management at

Humber College where she hopes to cultivate a career in brand management and strategy.

Chantel strives to uncover real consumer insight that will connect with real people. She is a

proven sense-maker with the ability to thoughtfully connect consumer trends, insight, and brand

strategy. Chantel is naturally curious, usually reading, and always hungry.

Matt Waghorn comes from a background of music, photography, media, and marketing. He

previously worked professionally as a manager in student housing, where he mentored and

supervised staff teams in implementing and assessing needs-based community development

practices, and in applying student development theory. Matt is an active member of the music

and photography communities, and enjoys collaborating with others to address the disconnect

between society’s expectations, perceptions, and valuations of the arts and the creative. Matt

works to create powerful brands by incorporating market research, consumer analytics, and

impactful storytelling.

12

Strategic Marketing Plan

Current Market and Competitive Situation

A new era of entrepreneurship is emerging, moving from a global economy to once again, a

local one. Nowadays, many people are steering clear of the four-walled cubicle, rolling up their

sleeves and creating their own business. This new era of entrepreneurship has emerged largely

in part as a result of the digital era, but also the employment market saturation of overqualified

workers via the underperformance of the post-secondary education system, and as a result of

the post-secondary education system’s inability to develop practical robust leadership skills. In

advent of the digital era, consumers, institutions and companies have taken notice and adapted

accordingly. Many business-client functions are supported and/or handled remotely via the

Internet, smartphone applications, digital platforms, social media etc. As a result, consumers are

eager to learn more. They are looking for places that can help them learn about the latest

technological advances and trends, develop practical technological skills, provide access to the

latest technological tools and gadgets, and ultimately meet and interact with like-minded

individuals within the community.

Most of the competition in Toronto’s workspace industry are located in downtown Toronto. They

serve their client base via a subscription based membership model where members have

access to freelancers and individuals in the startup community looking to share ideas,

knowledge, and skills. Also, they provide access to expensive equipment such as 3D printers,

laser cutters, etc. In addition the majority of the places offer 24/7 access

Company Description Main Features Location

Center for Social

Innovation

The Centre for Social Innovation is a co-working space, community and launchpad for people who are changing the world, with three locations in Toronto and New York Target: Freelancer's, leisure,

startups and small businesses, students.

● USP:

o 24/7 access to office space

o High-speed internet

o Meeting rooms

o Event spaces

o Lounges

o Photocopy and fax machines

o Community kitchens

o Audio-visual equipment

Mail boxes

215 Spadina Avenue. 720 Bathurst Street 585 Dundas Street East

Toronto Tool Library has an inventory with more than 5,000 tools available for loan. From

● Membership is $100/month plus a one-time registration fee of $200, for the set-up

1803 Danforth Ave (East of Toronto)

13

Toronto Tool

Library

home repair to gardening & bicycle repair to high-tech. Members get access to the inventory at both locations but must return items to the same Tool Library where they borrowed Target: Freelancer's, leisure,

startups and small businesses, students.

and continued running of the space.

● Only members can take advantage of free skills training with our in-house experts on all Makerspace equipment.

● 24/7 access to the space. ● USPs:

o More than 3,000 tools

o 3D Printers

o Open-Source Laser-Cutter

o Community of makers able to network with like-minded individuals

Hacklab

HackLab.TO is a not-for-profit community space with a diverse membership, including artists, computer programmers, web designers, and hardware hackers. It is inspired by the philosophies of the global hackerspaces movement which encourages people to socialize, share knowledge, and work together on their projects. Target: Freelancer's, leisure,

startups and small businesses.

● Member Benefits:

o 24/7 access

o Option to organize events and bring guests

o Bin to store personal ítems

o Full use of Hacklab resources

● USPs:

o Different type of tools for oculus rift virtual reality, electronics, biology, amateur radio tools, crafts, multimedia, safety and security, computer gear, photography, food and cooking

o Tools for many different crafts

o Community of makers to network and share ideas with from different fields

1266 Queen St W (west of Downtown Toronto)

Site 3

Site 3 is dedicated to making, teaching, learning and thinking about the intersection between art and technology. This place also makes amazing things, and we teach others to make amazing things, too. Target: Freelancer's, leisure,

● USPs:

o Classes to learn hands on specialized skills

o Electronic and woodworking

projects o A rotating selection of

classes, including lampworking and metal milling.

718R Ossington (northwest of Downtown Toronto)

14

startups and small businesses.

o 24/7 access for members.

Makeworks

MakeWorks is a coworking

studio with an on-site

prototyping lab, where

members work alongside a

diverse community of creative

professionals, increasing

productivity and decreasing

costs.

Target: Freelancer's, leisure,

startups and small businesses.

● Subscription based for

freelance and startups

● USPs:

o Prototyping o Laser cutting o 3D printers o CNC cutting o Open to public o Discounts for members

1139 College St (West of Downtown)

.

15

Opportunities and Threats

Opportunities:

● Introduce as a new concept of workplace/workspace

● Entrepreneur Era

● New Information Era (Digital industry and market)

● Fill in the gap that exists between students and traditional post-secondary education

systems

● Lack of technological learning tools, equipment and gadgets

● Innovative learning method

● Develop strategic alliance with local institutions: The Toronto Public Library, high

schools, companies etc.

● People participating in multi “careers”, wearing multiple hats

● Automation is taking skilled jobs, putting creativity in demand

● Most jobs of the future don’t exist yet, need to create a culture of exploration

● Rise of Sharing Economy

Threats:

● Strong competitors in the same industry (libraries, maker spaces in the market)

● Preference to no payment workplace, such as libraries

● Misunderstood and/or misinterpreted concept

● Expectation does not align with actual business

● Little to no revenue stream starting out

● Revenue based on assumptions

● Ambiguous future workforce

● Replication of company vision

Objective and Key Issues

Objective:

● Develop and grow as a reputable, accessible and reliable workspace in the Greater

Toronto Area

● To position THINK as a unique, interactive, innovative and resourceful workspace

● To achieve a 70% awareness level in our target market

● Be regarded as an alternative education facility

Key Issues:

● Growing and developing a community

● To achieve a 70% awareness level in our target market

● Penetrating a large audience with the proprietary app.

● Lack of understanding what the business concept is

● Not meet customers’ expectations

16

Marketing Strategy

Target Market

● Age: 18 to 40 years old

● Gender: Male and Female

● Education: college diploma or university degree; some college or university

○ High school students taking some time off after secondary school

● Income: $0-$25 000, $25 000+

● Characteristics:

○ Freelancer, small business owner

○ Entrepreneurs, students engaged in creative process unsatisfied with education

system

○ Lifestyle: Innovators, Thinkers, Experiencers, Strivers, Makers

○ Personality: Liberal, adventurous, outgoing, health and fitness conscious,

knowledge seekers, trendy, self-discovery, enthusiastic

○ Social Class: Upper class, middle class, working class

Pricing Strategy

● $2/hour

● $8 Half-Day Rate (5 hours)

● $15 Daily Rate (max. 10 hours)

● $8 Student Daily Rate (max. 10 hours)

● $60 Monthly Membership

● Student Membership Rates, Preferred Membership Rates

● For a detailed breakdown of prices and membership rates, see Appendices 7 & 8

Promotional Campaigns

Social Media

Free monthly membership giveaway if you follow THINK on Twitter, Instagram, Facebook,

and/or Snapchat. Tweet a photo during your stay at THINK, and the picture can be chosen and

displayed on Monitor in store front, THINKPAD newsletter, THINK website.

Promotional

Customers who purchase monthly or yearly memberships in the first week of opening will

receive an early bird discount of 15% off their membership. Once a month, members are

permitted to bring one non-member for free for one day. This will allow for continued growth and

awareness, allowing those who may be curious about THINK to try out the services before

committing. Another promotional tactic that will be employed is a partnership with the

professional networking company, ‘10,000 Coffees’. Individuals who have met over ‘10,000

Coffees’, can choose to physically meet in person at THINK for free. As well as having the

ability to use Foodora for a reduced food delivery price if you order in to our location.

17

Experimental Art Displays

Interactive in storefront design by local artists, showcasing their work and promoting our space.

Possible solution is to broker agreement with OCAD/Schools for discount, potentially offer free

trial to students.

Campaign Goal

THINK campaigns will emphasize community. Ultimately, THINK would like to achieve

community engagement by sponsoring a charity event whereby different groups of students are

free to join. This would result in building brand awareness among our target market, partners

and the overall community.

● Focus on community building and engagement

○ Implement business practices involving Community Development theory,

commonly practiced in Higher Education: Needs Assessment, Needs-based

programming, Community Assessment, Community Management, etc...

○ Community events (movies, poems, local artist showcases, etc…)

Promotional Trials at Tech Industry Events

Provide free trial offers and ‘bring a friend’ promotional discounts to influential prospects in the

tech industry by setting up booths at tech industry events such as Full Stack Toronto,

AndroidTO, Toronto Tech Summit, etc

Targeting innovators is essential to building a community. According to the diffusion of

innovation model, innovators help influence early adopters, who in turn assist in spreading word

around about your product or service.

This is also in harmony with the Pareto Law or the 80/20 law, which states that 80% of your

output comes from 20% of your inputs. This would manifest in business as approximately 80%

of your business would come from 20% of your customers. Concentrating on individuals at tech

and entrepreneurial events is an effective strategy rather than focus on diversifying.

18

Key Action Programs and Schedule

Date Strategic Actions Anticipated Outcomes

May

(year 1, month 1)

● Soft marketing – create title

page for website and launch

social media (Snapchat,

Twitter, Facebook,

Instagram)

● “THINK outside the box.”,

“What do you THINK?”

displays placed around

Toronto

● Generate

awareness, buzz

attract and entice

potential

customers

August

(month 4)

● Unveil website, interactive

store-front advertisements,

and develop stronger social

media push

● Promotions for early bird

signups:

○ 15% off membership

○ First 25 signups

receive a free surprise

● Digital interactive storefront

display will be up and

running with the help of local

artist

● Develop online

presence that

reaches

innovators and

early adopters

September

(month 5)

● Grand opening event

○ Arrange speakers

from the community,

musicians,

comedians, and

artists to host the

event. Sell tickets

ahead of time to

guarantee entrance to

the show

● Host a rotating series of

events bi-weekly on Friday

● Hard Launch:

THINK

● Introduce

scheduled events

● Launch of

members app &

members private

web access –

provides value for

becoming a

THINK member

19

nights, with expansion to a

more regular event schedule

if events are doing well

● Some examples include:

○ Speed Think

Speed dating meets

hackathon. Sign up and

solve a problem/issue with

your partner in 10 minutes or

less. Upon successful

completion, rotate onto the

next person and so forth

○ The Pitch Sitch

Sign up to pitch your ideas to

others to receive feedback,

investment, or to collaborate

○ Book club/Pod club

Discuss relevant books or

podcasts in an open forum

○ Potluck meet and

greet

Members bring in meals,

chat and come together

under a no pressure

environment

● Skill Training

● Lectures/guest speakers

● Launch members app and

members private web

access

● Focus on getting the

connectors and salespeople

to spread the idea through

word of mouth. Provide

incentives for early adopters

into the space

January

(month 9)

● Launch of regular digital

newsletter, THINKPAD

● Launch of digital

newsletter, and

podcast will

20

○ The newsletter will be

free and available to

members and

individuals who

subscribe in store or

via the THINK

website. The

newsletter will profile

local industry

personnel, up-and-

coming and existing

business ventures,

upcoming THINK

events, workshops,

Pitch Sitch events etc.

● Industry competitions

○ Different sectors face

off against each other

(i.e. startups,

universities, agencies,

bands, art collectives,

etc.) solving different

issues. A selected

panel of judges will

determine who wins,

prizes follow (pride

included)

● Re-evaluate pricing strategy

● Determine if membership

and hourly rates are working

ie. is customer traffic

meeting expectations? (See

Appendix 7). If expectations

are (not) being met consider

maintaining (lowering)

membership rate. If

expectations are being

exceeded consider

membership rate increase

develop brand

identity and inform

consumers of the

many services

THINK provides

● Industry

Competition

creates network of

individuals who

are likely to return

and share with

their friends. In

addition this will

introduce the

mission to the

various sectors

THINK admires,

leading to

corporate

sponsorships,

partnerships, and

single

memberships

·

21

● Podcast launch with a strong

marketing campaign

● Capture the vision from in-

house speakers, and

relevant trends in the

industry

● Record speakers and events

● Interview members and key

Toronto thinkers

● Re-evaluate financials to

determine whether to

maintain, remove or add

services/products

May

(year 2, month 13)

● 1st year anniversary event:

○ Similar to grand

opening, includes:

surprise guests,

prizes, food, drinks,

music

● Peer-to-peer education app

launch with advertising

campaign

● Advertise on popular

Canadian podcast

CANADALAND and its

partners

● Attend various startup

networking events, fairs,

showcases

● Utilize SEO, social media,

and partner with library

spaces

● Launch of peer-to-

peer app

● CANADALAND

radio spot will

generate

awareness,

especially

amongst the early

majorities

● Networking

events, fairs will

help develop

THINK’s brand

identity

August – October

(months 16-18)

● Re-evaluate financials to

determine whether to

maintain, remove or add

services/products

● Revision of

business

objectives will

ensure THINK is

meeting and

exceeding

22

● If financials permit, begin

plans to open second

location

customers’

expectations

● THINK Expansion

Controls and Monitoring Processes:

·

● Customer feedback:

○ Utilize customer feedback surveys to identify main customer concern

○ Offer free coffee or membership trial discounts as a way to incentivize customers

to provide feedback

○ Host member appreciation events

● Social Media campaign metrics/assessment:

○ Assess Twitter and Instagram hashtags to see how many people are talking

about THINK.

○ Create unique hashtags during each event to assess how successful the

campaign.

Sales Forecast

Monthly Sales Forecast: $8,022.59

● Based on the assumptions that in the first month THINK will

○ Convert 1 regular guest to a monthly membership every single day

○ Convert 1 student guest to a monthly membership every single day

○ Gain 5 new customers/month from our list of agencies/associations/and

communities

○ Make at least 1 sale of an annual membership

○ See at least 10 customers/day pay the hourly rate

○ Add an additional 10 customers pay the half-day rate

○ Get 2 Students to pay the reduced ‘Student Daily Rate’

○ Get 2 Customers to pay the ‘Daily Rate’

○ Sell 2 Coffee Travel mugs/month

○ Earn $40/month in commissioned sale of local works of art/creative pieces, at a

commission rate of 10%, well below the commission rate at most art galleries.

Marketing Budget

● $2,000 Startup Marketing Budget

○ $500 - Poster Campaign: THINK will print & post posters in strategic locations to

engage our target market. THINK will visually engage users on community

boards in the neighboring area

23

○ $500 - Social Media Budget: for boosting posts on Facebook, Twitter and

Instagram

○ $1000 - Giveaways & Promotional Material: THINK branded products (travel

mugs) and partnership sponsor budget.

24

Operational Plan

Layout

The floor plan concept for THINK is an open concept space composed of two collaborative

meeting areas upon entering, reception, café and lounge, a work centre, partially enclosed

meeting area, private phone/video chat room, private meeting room, boardroom/video

conference room, coat closet and copier/storage + file room. This space has been designed to

be an inviting environment where one can work on anything. Everything has been designed for

mobility; no furniture is bolted to the ground, and movable partition walls will be used throughout

the space. The furniture will be rearranged regularly to create new environment that will

stimulate the mind. THINK is a different workspace, that enables collaborative thinking while

providing tools to help people expand their knowledge base. This includes teaching workshops

that will be held in the space for members as well as services such as 3D printing. THINK will

become the members’ “3rd” place, a combination of both the “1st”place, home, and the 2nd place,

work.

Based off of design for 1000 sq ft.

25

Picture retrieved from GAB Montreal. After discovering GAB and loving the design of the space, THINK

spoke with them and gained some insight into their workspace operations and their plans for a proprietary

app.

Location & Facilities

THINK is best suited to be located in a new up and coming, trendy and newly gentrified

neighbourhood where young professionals are living. The ideal location would be a commercial

space located on Ossington between Bloor and Queen Street. Once established in this location

THINK hopes to expand to other locations throughout Toronto. Once established in Toronto

THINK plans to expand into other cities in Canada such as Vancouver and Halifax.

Equipment and Supplies

The materials and equipment THINK necessary to operate the business include:

● iMac Computers (4)

● iPad (1)

● Wireless routers

● Projector

● Projection Screen

● Printers

● Furniture

● General office supplies

● Commercial Coffee Machine

● Coffee Beans, Tea, Milk, Dairy-free alternatives, Sugar, Cream, Stir Sticks, Coffee Mugs

● Cleaning Supplies

26

Organizational Structure

The organizational structure will be composed of the managing partners specializing in a

different aspects of the business, with expected overlap of duties. These include the areas of

Accounts/Partnerships, Growth Strategist, Finance, Customer Service, Talent Acquisition (HR),

Events Coordinator, Advertising/ Marketing. Decisions will be made by vote in weekly meetings

by the six managing partners. As the company grows, “Think Masters” will be the staff hired to

keep the space running smooth with their operational expertise, will provide high quality

customer service by fostering meaningful connections with customer.

Legal Requirements

The opening and operation of THINK must meet certain legal requirements as per the

Government of Canada and the Government of Ontario:

Type of Regulation Description

Register Business with Government of Ontario Registering the business name online through the Ontario government website. One time cost of $60.00 and lasts 5 years.

Human Resources Regulations Includes the enforcement and adherence of: the Ontario Employment Standards Act, as it relates to wages, vacation and other leave, statutory holidays, hours of work, paid overtime etc. The Ontario Workplace Safety and Insurance Act, Ontario Human Rights Code

Advertising and Promotions Campaigns Canada’s anti-spam law will need to be taken into consideration when operating electronic channels to promote or market business as the Competition Bureau monitors false and misleading representation, and deceptive marketing practices in the electronic marketplace. When creating promotional contests specific information must be provided to potential participants. One must disclose the number and approximate value of prizes and the areas to which they relate and any important information relating to the chances of winning such as the odds of winning.

Privacy Regulations If a company collects, uses or discloses personal information about individuals, the business needs to understand its privacy obligations.

Health and Safety Regulations Standards need to be integrated into the safety

27

of the products, the services and the workplace.

Building Codes and Regulations The building codes, regulations and related standards for the province of Ontario need to be implemented as well as the facility must be mindful of accessibility and how to make the business accessible to persons with disabilities. StopGap is an organization that installs a removable accessibility ramp outside of your space for free.

28

Financial Plan

Our Financial Plan reflects THINK positioning itself as an integral member of the creative and

small business communities. There are a number of important considerations for THINK to

undertake during its financial planning. For example, THINK anticipates $95,145.13 in capital

expenses. Further, THINK has evaluated the balance between paying the partners for their time

worked vs. not paying until the business becomes profitable. Payroll would account a monthly

expenses of $3,720 - paying $12/hr for while THINK is open (10hrs/day, open every day except

holidays). In the following 8 appendices, there are several instances of a document containing

payroll expenses and excluding payroll expenses.

Start Up Costs & Monthly Expenses - Appendix 1 & 2

Appendices 1 and 2 show the monthly expenses, start-up costs, and capital expenses for

THINK. Appendix 1 includes the financial implications of payroll for 1 employee of $12/hr, for

the 10 hours/day that THINK will be open, and is calculated to reflect each day non-holiday that

THINK will be open throughout the year. Appendix 2 reflects the financial implication of the

THINK management team absorbing this cost and sharing the responsibility of running the office

until the business becomes profitable, which by our forecasting, should be in 2018.

Balance Sheet - Appendix 3

This outlines THINK’s assets and liabilities, and will be updated as THINK acquires more assets

and liabilities. All numbers captured in this document are reflected in the “Start-up Costs &

Monthly Expenses” and “Business Overview” documents.

Income Statement - Appendix 4 & 5

This reflects THINK’s income and expenses in Fiscal Year 2016 - 2018. Appendix 4 reflects a

FY2016 deficit of $38,849.22 based on having payroll expenses. Without having payroll in

FY2016, as seen in Appendix 5, THINK will see revenues of $11,593.98. The annual growth in

appendices 4 & 5 is based on a 50% increase in monthly members, year-over-year.

Cash Flow Statement - Appendix 6

The Cash Flow statement will be set-up to reflect quarterly cash flow, including cash received

and expenditures.

Business Overview - Appendix 7 & 8

The Business Overview provides a detailed breakdown of THINK’s revenue streams including

memberships, daily rates, and ancillary revenue streams, as well as a list of close to 50

potential Student Groups, Associations, Agencies, and Communities that are reflective of our

target market. These appendices do not currently reflect income from THINK partnering with

other businesses, member-run event hosting fees, or from monetizing its newsletter through

advertising revenue. Appendix 7, reflecting our operating expenses containing payroll expenses,

demonstrates a monthly deficit of $762.41. Appendix 8, based on THINK not having any payroll

expenses, shows a monthly revenue of $2,957.59.

29

Appendix 1 – Start--up Costs & Monthly Expenses, including payroll expenses

Appendices 1 and 2 show the potential monthly expenses, start-up costs, and capital expenses

for THINK. Appendix 1 includes the financial implications of payroll for 1 employee of $12/hr, for

the 10 hours/day that THINK will be open, and is calculated to reflect each day non-holiday that

THINK will be open throughout the year.

30

Appendix 2 – Start-up Costs & Monthly Expenses, excluding payroll expenses

Appendices 1 and 2 show the potential monthly expenses, start-up costs, and capital expenses

for THINK. Appendix 2 reflects the financial implication of the THINK management team not

receiving a paycheck until the business becomes profitable. This would be a shared

responsibility amongst the partners as they support THINK between other means of personal

employment.

31

Appendix 3 - Balance Sheet

This outlines THINK’s assets and liabilities, and will be updated as THINK acquires more assets

and liabilities. All numbers captured in this document are reflected in the “Start-up Costs &

Monthly Expenses” and “Business Overview” documents.

32

Appendix 4 - Income Statement, including payroll expenses

This reflects THINK’s income and expenses in Fiscal Year 2016 - 2018. Appendix 4 reflects a

FY2016 deficit of $38,849.22 based on having payroll expenses. The annual growth in

appendices 4 & 5 is based on a 50% increase in monthly members, year-over-year.

33

Appendix 5 - Income Statement, with no payroll expenses

Appendices 4 & 5 reflect THINK’s income and expenses in Fiscal Year 2016 - 2018. Appendix 5

demonstrates the financial impact of not having a payroll. Without having payroll in FY2016,

THINK will see annual revenues of $11,593.98. The annual growth in appendices 4 & 5 is based

on a 50% increase in monthly members, year-over-year.

34

Appendix 6 - Cash Flow Statement

The Cash Flow statement reflects anticipated quarterly cash flow, including cash received and

expenditures. It currently does not reflect THINK’s plans to build and monetize asset revenue

streams including the THINK app, THINKPAD newsletter, and THINK podcast.

35

Appendix 7 - Business Overview, including payroll expenses as an Operating Expense

Appendix 8 - Business Overview, excluding payroll expenses as an Operating Expense

36

THINK’s Budgetary Implications

● Not hiring or paying any employees until the business becomes profitable . Given

the budgetary implications, THINK cannot afford the cost of paying employees until the

business becomes profitable in year 2 or 3. Until then, the managing partners will share

the responsibility of running THINK while the other partners are working other jobs to

make a livable wage.

● Be strategic in considering to whom we appeal. THINK needs to appeal to people

who work from home and encourage them to make the space their office space. It is

much cheaper than renting office space and provides all of the amenities of a home

office, and allows for collaboration, networking, getting out, etc.

● Empower customers to be THINK brand ambassadors via social media. This will

help offset marketing costs through earned media.

● Continue to expand the breadth of our revenue streams. For example, THINK could

also sell other creative pieces. Business Overviews, Appendices 7 & 8, do not reflect

any revenue from event hosting fees, partnerships/partnerships, or advertising in

THINKPAD

● Develop strategies to monetize assets. This budget does not reflect THINK’s plan to

monetize assets like the THINKPAD eNewsletter, the THINK app, or the podcast.

Through the collection of client demographic information, THINK will be in a position to

strategically attract corporate partners who are aiming to reach THINK’s target market

and whose brand values aligns with THINK’s.

37

Investment Request

THINK is seeking a total financial investment of $150,000 in the form of $100,000 at the time of

start-up, and an additional $50,000 after 6 months of operation. The startup sum of $100,000

will be used for the purchase of capital assets and help cover associated start-up costs. The

sum of $50,000 after 6 months of operation will be used to help cover monthly operating

expenses as THINK grows its business and roots itself in the community. Funds will not be used

to pay employees. Rather, they will be used to purchase tangible assets that can be liquidated,

if necessary. The total investment of $150,000 will be repaid in monthly installments over 72

months, during which time THINK plans to expand its business and revenues by opening new

locations.

THINK expects to purchase close to $20,000 in Technological Equipment, close to $30,000 in

Furniture and Fittings, $40,000 in capital projects including a major renovation and development

of a mobile app, and close to $5,000 in marketing and advertising. The remainder of the funds

will be used to purchase and offset start-up costs, including the offset of property rental while

the business establishes a regular clientele and becomes profitable by its own means. Any

unused funds will be invested into THINK to help cover its needs as the business grows.