transferring the “we movement” to a different business line€¦ · heinrich heine university...
TRANSCRIPT
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Transferring the “we movement” to a different
business line
January 2017
Heinrich Heine University DuesseldorfUrsula Hilgers, Louisa Schuessler, Johannes Gerlach, Hannes Kurz
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DuesseldorfConsultingMandate
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How to extend wework’s product portfolio in order to create a world
where people work to make life, not just living.
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DuesseldorfConsultingRecommendation
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Supplement your business ecosystem by wefinance in order to
benefit from an interconnected business model
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DuesseldorfConsultingAgenda
1. Mission, culture and values2. wework and welive3. Strategic alternatives for new business lines4. Implementation of wefinance5. Time and costs6. Wrap-up
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DuesseldorfConsultingKey issues
Fit of product
extension to mission and
culture
Create a unique customer journey
Maintain a strong
business model
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DuesseldorfConsultingMission and values
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To create a world where people work to make a life, not just a living
Inspired
Tenacious
Entrepreneurial
Authentic
Grateful
Together
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DuesseldorfConsultingwework’s success story
Mission
Strong business
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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
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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
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Standard room: $1,375 Private room: $2,000
wework
welive
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DuesseldorfConsultingThere are five main target groups of wework
Start-ups and creative companies Millennials
Small services business & NGOs
Polished professionals Enterprise
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The network of start-ups and creative companies fosters the mission of making a life
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DuesseldorfConsultingCurrent business lines
wework welive ?
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The success story can be conveyed into a different sector
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DuesseldorfConsulting
How to extend weworks product portfolio in order to create a world where people work to make life not just living?
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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
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DuesseldorfConsulting
How to extend weworks product portfolio in order to create a world where people work to make life not just living?
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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
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DuesseldorfConsulting
How to extend weworks product portfolio in order to create a world where people work to make life not just living?
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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
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DuesseldorfConsultingBuild up your brand wefinace
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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
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DuesseldorfConsultingSet up the digital market place
App +
Website
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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
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DuesseldorfConsultingCreate value added services for your members
Events for exchanging information
Support of young entrepreneurials
Comfortable, transparent atmosphere
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Secure your inspiring culture, strong community and use this network effect to communicate your new brand
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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
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Secure the profitability of your company
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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
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Total required investment: 38,300,000 USD
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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
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Wefinance is likely to reach break-even in 2021
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DuesseldorfConsultingYour company in 2025
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wework welive wefinance
2016• 77 locations• 50,000 members• 1000 employees
2016• NY• Washington
2025• 6 basis• Total deals closed: 750
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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)
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Impact
Probability
1
23
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DuesseldorfConsultingWrap-up
Maintain a strong business model
Fit of product extension to mission and culture
Create a unique customer journey
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Supplement your business ecosystem by wefinancein order to benefit from an interconnected
business model
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DuesseldorfConsultingWrap-up
Maintain a strong business model
Fit of product extension to mission and culture
Create a unique customer journey
04/01/2017 Heinrich Heine University Duesseldorf 23
Supplement your business ecosystem by wefinancein order to benefit from an interconnected
business model
-
DuesseldorfConsultingWrap-up
Maintain a strong business model
Fit of product extension to mission and culture
Create a unique customer journey
04/01/2017 Heinrich Heine University Duesseldorf 24
Supplement your business ecosystem by wefinancein order to benefit from an interconnected
business model
-
DuesseldorfConsultingWrap-up
Maintain a strong business model
Fit of product extension to mission and culture
Create a unique customer journey
04/01/2017 Heinrich Heine University Duesseldorf 25
Supplement your business ecosystem by wefinancein order to benefit from an interconnected
business model
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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.