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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

Final Master Project

Executive summary
MIB
EXECUTIVE SUMMARY

FAST FLAT: STUDENT SUPPORT


Student support to find accommodation in Madrid

Ana Daniela Ynez Balboa


Flvia Borella Pereira De Godoy
Ali Fouad Mohammed Al-Rawi
(Group n 6)

Fast Flat: Students support

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

INDEX

I.- Introduction ..................................................................................................................................... 3


II.- Partners and clients ........................................................................................................................4
III. Business concept ............................................................................................................................4
IV.- The Market ................................................................................................................................... 5
V.- PESTEL Analysis .......................................................................................................................... 7
VI.- SWOT Analysis............................................................................................................................ 7
VII.-Competitive analysis ....................................................................................................................8
VIII.-Target Market .............................................................................................................................8
IX.- Business Model ............................................................................................................................9
XI- Competitive strategies.................................................................................................................. 10
XII.- Model to capture, retain & develop customers. .......................................................................... 10
XIII.- Marketing Channels ................................................................................................................. 11
XIV.- Financial preview..................................................................................................................... 11
XV.- Legal & Political System. .......................................................................................................... 12
XVI.- Success criteria ........................................................................................................................ 12
XVII.- Conclusions ............................................................................................................................ 13

Fast Flat: Students support

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

I.- INTRODUCTION
In order to leave our finger, print in this vast Universe & contribute to the betterment of mankind, and being a multicultural group this made us aspire to achieve our single belief to deliver the best service to our clients and leave
them with the utmost satisfaction.
This is our core driving force and our passion that allowed us to develop and follow our project:
1- We identified the need for such service provider due to what we and many of our friends have faced.
2- Having identified several business opportunities with landlords and students.
3- 3-Having the easy access to the online world, this allowed us to establish our business virtually without the
constraint and limitations of a physical existence.
Our Clients are:

Students that come to study in Madrid.


Landlords that have apartments to rent.

We are:
Photo

Name

ANA DANIELA YNEZ BALBOA

ALI FOUAD MOHAMMED ALRAWI

FLVIA BORELLA
PEREIRA DE GODOY

Country

Mexico

Iraq

Brazil/Italy

Our channels / social media:

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

II.- PARTNERS AND CLIENTS


Fast Flat identified several business opportunities with landlords and students, where we have already provided
our service for:

3 clients with a satisfaction rate of 9.7/10


2 collaborating teams
3 letters of intent.

III. BUSINESS CONCEPT


Fast Flat is a Housing service provider in Madrid that supports international students in finding in a quick and safe
way a place to live in during their study in Madrid.
1.- Primary service: to get the student a place to stay in Madrid that meets their preferences given.
2.- Secondary services: The services we are offering after signing the contract between students and landlords are
for students, such as tax advice, N.I.E, ect.
Our objectives are:

Break language barriers


Provide the best service for both our clients.
Prevent frauds.
Eliminate stress by providing accessible information for students and connect landlords with students.
Providing additional and complimentary service.

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

IV.- THE MARKET


The market research made by Fast Flat with both international students and landlords in Madrid, Spain made
possible to conclude the following:
- There is a huge market demand (Students & Landlords).
- The agency fees are too much for the students & landlords.
- No secondary services or loyalty programs.
A International Students survey
1. How was the information you got in term of having the full information about EAE / Madrid, Spain?

2. How was your apartment hunting?

3. Did you use an agent to get your apartment / room?

4. Would you have preferred an agent for students, especially for you?

5. How much did you pay if you have USED and AGENT?

6. How is your NIE process?

7. Would you prefer using an agent to help you get the information and do the work?

8. Would you prefer having the Agent part or cooperate with EAE?

Source: Market research Fast Flat, 2015

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

B LANDLORDS SURVEY

# rooms available per Landlord

Landlords working with agencies

20
15

20
15

16

10

Landlords

10

2 rooms

Landlords

0
4 rooms

17

1 rooms

YES

NO

Source: Market research Fast Flat, 2015

Agency fee (% rental mont)

10
8

Average price per room


15

10

6
Landlords
working with
agencies

4
2
0

0-40%

41-80%

12
9

Landlords

5
2

0
100-200 200-300 301-400 401-500

0
81-100%

Source: Market research Fast Flat, 2015

Landlords that do not work with


agencies, are they interested?
16
14
12
10
8
6
4
2
0

How much they are willing to pay for


the agency fee?
12

15

10
Landlords
ineterested

8
6

Landlords

4
2
YES

NO

2
0
0-40%

41-80%

81-100%

Source: Market research Fast Flat, 2015

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

V.- PESTEL ANALYSIS

SOURCE

ANALYSIS

World Bank, 2016

Spanish political stability has been growing since 2013

World Bank, 2016

21/161 biggest GPI in the world, recovering economy since 2012,


15/27 cheapest labor cost per hour inside the EU, housing prices
getting more stable

Spanish National Agency for


internationalization of Higher
education (SEPIE), 2016

Received 189,198 international students in 2015 mainly from Italy,


France, Germany, China, Colombia, Romania, Morocco, Mexico,
USA, Brazil

World Bank, 2016

Spain is now the target for innovators; Spain R&D expenses reached
about 5% of the GDP in 2015

World Bank, 2016

Spains environmental policies= EU guidelines. Spain is a friendly


environment country in comparison to some others in EU.
Predictions show that Spain will be a gate for small business and the
reason for their growth.

World Bank's Doing Business


2015, OECD

Spanish law permits foreign investment of up to 100% of equity and


while capital movements are completely liberalized. It takes an
average of 14 days to start a business in Spain. Taxes are considered
to be friendlier to business since 2014.

VI.- SWOT ANALYSIS

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

VII.-COMPETITIVE ANALYSIS

In the house renting industry, we identify 7 mayor competitors for Fast Flat. In the previous chart, we selected 7
success factor in order to analyze the degree of competition and to identify the competitive advantages of each one
of them. The strongest competitors of Fast Flat are Alumni.net and Student Solutions. As well can appreciate from
the chart, both have 6 out of 7 Critical Success Factors. Fast Flat is the only one that covers 7 out 7. Of all the
competitors, they are the only ones that are student focused and offer secondary services to the students similar to
the services that Fast Flats is offering. On the other hand, we identify that one of the weaknesses of the competitors
is the Multilanguage support, secondary services and they are not student focused.

VIII.-TARGET MARKET
INITIAL TARGET MARKET

International students/ Workers


Between 15 and 35 years old
Looking for a place to live in Madrid.
Support in secondary information.
May have language barriers.
Not willing to pay high agency fees.

SECONDARY TARGET MARKET

Landlords who own one or more apartments in Madrid.


Willing to rent their apartments to students.
Willing to build long-lasting relationships with the agency.
Not Willing to pay high agency fees.
Advise in legal processes (Contracts).

In this case, we have two target markets because we are an intermediary agency so we need to address both. the
Landlords, to offer our service agency in order to offer their flats, and students is our main target who is going to
receive our housing service. Both are extremely important for us, because although the landlords are secondary if
we do not have them cannot offer the service to students.

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

IX.- BUSINESS MODEL

1. Students seek information through our website or social networks available. Adds there we floors available
information on each one: square meters, number of bedrooms, amenities, location, close public transport,
supermarkets, among others. We will also be showing monthly prices plus the agency fee along with photos
of the floor.
2. Fast Flat receives the request of students through the Internet page and their social networks.
3. Fast Flat initiates a search through its database to provide students with more than one option according to
their preference.
4. Fast Flat communicates with students electronically or phone to offer the options available and help them
make the best decision according to your preferences and budget.
5. If the student approves a flat, a MATCH is generated! that means it has found the right floor for the student.
6. Customer Profitability: at this stage the point of use to flats is fast from both the student and the landlord. In
another section of the FMP is explained the percentages who will be charging at this stage of the process and
the promotions we have for the first year or have more than one floor advertised with us.
7. Primary service: this is where the primary service which is to get the student a place to stay in Madrid that
meets your preferences given. Within the service offer advice on how the contract with both parties and
consulting in the following steps as the payment of both the landlord.
8. Secondary services: The services we are offering after signing the contract between students and landlords
are for students and call them secondary as they are requested additional once the primary. These services are
used to support international students to complete their paperwork in Madrid in various languages and
consultation on how to make them. Fast Flat also to help us secondary services as a differentiation and to have
a competitive advantage with agencies that offer the same primary service and do not focus on students. Below
secondary services we offer: Provide information and advice: NIE, Student visas, census work papers, Bank
accounts in Madrid, Metro card, Wi-Fi service and telephone procedures.

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

XI- COMPETITIVE STRATEGIES.


Our competitive strategies are based directly on the critical success factors, because we are the only agency in the
market with the seven factors.
Competitive strategy based on CSFs:

1.
2.
3.
4.
5.
6.
7.
8.
9.

Providing competitive prices for the students lower than the actual market prices.
Secondary Services will be free of charge.
Multi-Language support up to 7 languages.
Student community (blog)
All our apartments advertised are 100% reliable, free of fraud.
We have a 24-48 hrs. response
Special prices for referral
Legal support for both in signing the contract
Loyalty program prices for Landlords

XII.- MODEL TO CAPTURE, RETAIN & DEVELOP CUSTOMERS.

These models show flat Fast strategy to capture and retain our two target markets. As shown in the following charts
use promotions on the website, communities for students so they can share information about Madrid and their
experiences in Madrid, 50% agency commission, discounts loyalty programs and reinforce word of mouth both so
that we recommend in order to grow in our market.

STUDENTS MODEL

LANDLORDS MODEL

Website
Promotion

Secondary
services free of
charge

Legal Support

Website
Promotion

Legal support

Loyalty
Benefits

Student
community

10% off by
referral for
friends

Word of Mouth
/ Referral

Capturing
Landlords

100% off for


secondery
apartment

Re-Accuraence

Capturing
students

50% Agency
Fees

50% Agency
fees

10% off by
refering

Word of Mouth

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

XIII.- MARKETING CHANNELS

Our main marketing strategies are:


1. Google ads
2. Social Media
a. Facebook ads
b. Facebook weekly update.
c. Twitter posts.
d. YouTube Channel.
e. Student blogs in Madrid.
3. Referral/word of mouth
4. Universities
5. Collaboration
XIV.- FINANCIAL PREVIEW
Monthly statement for the first year, and a 5 year forecast and initial costs and investments as follows:
No
1
2
3
4
5
6
7

Procedure
Certification
Bank account
(DUE) and notary
Registry of incorporation
Municipal tax
Commencement Notification (declaracin responsable)
Delegation notification
TOTAL

Costs
EUR 16.25
No charge
No charge
EUR 727
EUR 414
Included in 5
No charge
EU 1157,25

5 Year Forecast

First Year Forcast

600

80,000.00

500

60,000.00

400

40,000.00

300

20,000.00
-

Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17

200
100
0
2016
Sales

COGS

2017

2018

Gross margin

Fast Flat: Students support

2019

2020

Net Income (NI)

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Gross Income

Total expenses

Net income or (loss)

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

A- Normal case scenario:


Ke=

15.00%

PV=
IRR=
NPV=

159
153%
129

PV=
IRR=
NPV=

175
165%
145

PV=
IRR=
NPV=

143
140%
113

B- Best case scenario:


Ke =

15.00%

C- Worst case scenario:


Ke=

15.00%

Break Even
Initial Cost

23,3340.00

Income

22,957.47

Breakeven point units per month

5.00

XV.- LEGAL & POLITICAL SYSTEM.

Fast Flat will support the students and the landlords with a contract.
Consulting in signing the contract.
Fast Flat will be present at the contract signing with aCopy of the contract as a receipt.
The only contract we will have - with the employees (future).

XVI.- SUCCESS CRITERIA


Since our project is in a market that has high demand for this service we see the following keys for success:
Divers team with huge combined knowledge (project management a diversity of 5 languages)
Divers multi-cultural team.
Growing environment.

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FAST FLAT: Student Support (Yez, Pereira de Godoy, Al-Rawi)

XVII.- CONCLUSIONS

We are already an established business.


Great opportunity found.
First clients engaged, 3 Apartments secured.
Landlords engaged, 3 letter of intent.
Collaboration Established with 2 agencies
Huge competitive advantage (Language, Culture, Business Mindset)
Registration under process.

Future Strategic Position:

Expand in 2018, to cover more cities in Spain (Barcelona & Valencia)


Hire assistant staff.
Launch promotional campaigns 2018.
Collaborate with universities.
Help bring students (Explore other markets).
Increase partnerships.

Forecasted Clients
100
50
0
2016

2017

2018
Student

Fast Flat: Students support

2019

2020

Landlord

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