Develop a detailed income statement for your venture for two years (at six month intervals). Explicit state the assumptions that underlie your financial model.

Revenue Stream:

• Business in a Box
  • Sale of machinery
  • Installation fee
  • Initial training fee (entrepreneur and staff)
• Service Contract: Maintenance plan
• Additional/advanced training for new staff

Cost Structure:

COGS:

• Machinery
  • Cost of machinery, purchased from fabrication shop
• Personnel (Employee):
  • • Assembly of and quality check on machinery
    • Dispatch people to do maintenance
    • Training of new entrepreneurs and laborers
    • Commission for sales team
  • Travel for installation, maintenance, and trainings
  • Cost to ship machinery

Operating Costs (Overhead):

• Staff
  • Marketing and sales
  • Public relations/grant-writer
• Operations
  • Office space rental
  • Utilities
  • Office supplies (e.g. computer, stationeries, etc.)
  • Travel for maintenance of network

1. Identify two SPECIFIC funding sources for the design phase of your project and two SPECIFIC funding sources for the dissemination (implementation / distribution / commercialization) phase of your project. For each funding source, explain why this is a good fit for your project, and what SPECIFIC aspect of your project might the funding source support.
   1. Venture Well (Design Phase): Venturewell provides funding to tech startups during their early stage. PlasTech Venture is in their early stage where the team is working on finalizing a wall system design. Funding from VentureWell can go towards testing the effects of contamination on the material properties of recycled plastics. In addition, the funding can also go towards prototyping the machinery to produce the plastic products.
   2. Draper Richards Kaplan Foundation (Design Phase): DRK provides 3 year funding of $300,000 to early stage startup ventures (1-3 years old) whose goal is to provide solutions to big problems that will create lasting positive impact. PlasTech Venture fits the primary requirement for DRK. Funding will go towards prototyping machinery and products, testing contamination concepts, and aid in travel costs for the venture.
      1. https://www.drkfoundation.org/apply-for-funding/what-we-fund/
   3. Roddenberry Foundation -The Catalyst Fund (Implementation Phase):The fund is geared towards small/ early stage ideas that need capital to launch or prove viability. PlasTech Venture is an early stage venture and will need funding to launch the first venture in Paradise village Manila, Philippines. Funding will subsidize some of the cost to the first (maybe more, depending on the funding) entrepreneur who will be interested in investing in PlasTech Venture’s business in a box strategy. The money will be used to offset some of the cost associated with installing the machinery at the facility and providing training to workers in operating the machinery. 
      1. https://roddenberryfoundation.org/our-work/catalyst-fund/
   4. Government/Barangays (Implementation Phase) – Barangays in the Philippines have a decentralization law in place that breaks down waste at the barangay level. Future funding for implementation could come from this source. Since barangays already took the initial necessary step to help combat the plastic waste crisis, they will likely fund our community-based recycling model to encourage a larger scale of people to turn their plastic waste into something that can be used again. This funding could assist PlasTech Ventures in covering some of its costs or could incentivize local citizens to use one of our machines; the government could enact a reward system for citizens that bring their used plastic materials to a facility that has our machines to promote community-based recycling. 
2. Identify five specific partnerships that you need to forge to advance your project forward with the ultimate goal of positively impacting at least one million people. Describe exactly how that partnership might help you achieve scale and why that entity might be willing to work with you.
   1. Manufacturing Company (Caterpillar, Inc.?): The partnership with the manufacturing company would be beneficial to the team by acting as a supplier for the machinery component of our business in a box strategy. The Manufacturer would be willing to work for our company because they earn a profit for each machinery they build. These machinery will receive a quality inspection. 
   2. Philippine Plastic Industry Association: The partnership will aid the team in making sure that the products that will be manufactured and the machinery operation process will meet Philipino standards. PPIA will be willing to work with PlasTech Venture because they are interested in minimizing environmental impacts associated with plastics along with ensuring the well-being of Flippino. 
   3. Plastic Tides (NGO): This partnership will help us by becoming the first entrepreneur to invest and purchase our business in a box solution. Plastic Tides will be willing to work with us because we share a common goal of eliminating plastic pollution. The business in a box package will allow the company to ensure that the plastic that is collected from the beach will not end up back in the ocean. Plastic Tides would also obtain another source of income to sustain the organization.
   4. Local Construction Company in Manila Philippines (Gold Leaf Construction?):This partnership would allow us to promote our products to the construction company and establish credibility in the industry. The construction company would like to partner with us because they would be interested in alternative construction materials that can meet their needs while reducing their material costs and increasing their ease in assembly.
   5. A junk shop in Manila (Jirah Junk Shop): This partnership would allow the venture to establish a plastic supplier for our clients who will purchase our business in a box package in order to create products out of plastic. The junk shop will be willing to work with us because this is a business opportunity for them to sell their plastics.

1. Refine Your Business Model Canvas

Visual canvas

Specific notes for each block:

1. Customer Segments: Our primary customer segments are Junk Shops and Entrepreneurs in Manila. When selling our “business in a box” model, it will appeal most to individuals trying to boost their personal income by starting a business because the business model is already laid out for them, they just have to implement it. Targeting junk shops will give them the opportunity to create value from the cleaned and recycled plastic they are already collecting; however, not all junk shops will have the real estate and manpower to expand into manufacturing. Entrepreneurs may be more likely to start from scratch and purchase a facility and hire individuals to work the machine while partnering with junk shops to source their plastic.
2. Customer Relationships: At steady state, forming a Community for the junk shops and entrepreneurs that comprise the community-based recycling system will allow individuals to learn from each other, increasing the sustainability of the venture. Reducing the need for intervention from PlasTech Ventures, except for the initial purchase and installation of machines, will help the communities to reach a new equilibrium that does not foster dependency.
3. Channels: We will rely mainly on indirect channels to reach our customers. A website will be used to spark interest and provide information on both the recycling technology and business opportunity. We will utilize our connection with the UDP to further expand our venture in the Philippines.
4. Value Proposition: We help Filipino entrepreneurs earn a profit by providing them the technology and a business model that will transform plastic waste into higher-value products that can be sold back to the community.
5. Key Partners: The partners that will be essential to our venture’s success are the companies that manufacture the machinery and molds for the brick design that are included as part of the “business in a box.” Our partnership with the UPD gives us credibility and allows us to tap into the existing connections that  UPD has with the Filipino communities.
6. Key Activities: The key activities for the venture at steady-state will be overseeing the network of community-based recycling facilities and educating new entrepreneurs. The team will stay connected with all of the recycling facilities to provide direct support and ensure that the operation runs smoothly. The team will need to develop an onboarding strategy and machinery training for new entrepreneurs. In order to reach the steady-state point, the PlasTech Venture team must first develop the product suite, develop the technology to produce the products, and establish a business network for the venture in the Philippines.
7. Key Resources: One key resource for the steady-state operation of our venture is the junk shops that supply the plastic for production. Another key resource is the onboarding instruction which will play a crucial role in familiarizing the entrepreneur in operating the machinery and business. The machinery itself is also a key resource that will be important in order to produce the goods that will be sold in the market.
8. Revenue Streams: PlasTech Venture’s primary revenue stream will be selling the “business in a box” model to entrepreneurs in the Philippines.  This model will include the machinery and mold to manufacture bricks, an installation fee, and a training fee.
9. Cost Structure: The majority of the costs at steady-state for the venture will come from outreaching both the entrepreneurs and market for recycled plastic products, research and development, and maintaining partnerships and supply chains. Installing the machinery at the recycling facility and providing the necessary training to operate the machinery will also contribute to the cost.

c. Explain how exactly you will deliver an end-to-end solution.

1. Reach out to entrepreneurs and junk shops in the Philippines to generate interest in starting a PlasTech Venture in their region.
2. Collaborate with the entrepreneur to network and establish a steady supply of  clean and sorted recycled plastics to the facility
3. Provide the machinery to the entrepreneur and help them install the machinery in the facility
4. Provide a machinery maintenance plan and training for operating the machinery
5. Maintain connection with the entrepreneur/junk shop to provide technical support when requested

B. Ten practical lessons from the business (revenue) models of ventures we reviewed today (or others you research) as they relate to your venture.

1. Envirofit: Display the value proposition that is specific to both the customer and other stakeholders. On Envirofit’s website, the “Reducing GHG emission by 60%” is appealing to groups such as the government while the “$2.50 savings per week” is appealing to the customers who will be using the technology
2. Greyston Bakery: Doing socioeconomic good that allows the company to give back to the community. In return, customers become more willing to make purchases from the company knowing and trusting that the company is doing good for the community.
3. Reel: Providing an opportunity for customers to not only grow their own produce in a simple way but to also save valuable resources (80% less water).
4. Barefoot College: “You are certified by the community you serve. You don’t need a paper…to show that you are an engineer”. There is a greater significance and value in taking action and showing your capabilities rather than stating what you may potentially achieve.
5. Value propositions are short and to the point, making them very compelling. The value proposition can simply pitch the impact.
6. The business model for Greyston Bakery is focused on “creating prosperity all along the value chain.” This allows the business to profit, but also benefits the community. This starts with the open hiring process. Their slogan, “we don’t hire people to bake brownies, we bake brownies to hire people,” confirms that their motivation for starting the business was not just profit.
7. By simplifying the gardening process, Reel Gardening expanded their reachable market by eliminating the need for skilled labor.
8. Business innovations do not always have to be technological, it could be an improvement in a company’s hiring processes that offer human support and introduce a new frame of thinking. In Greyston Bakery’s case, they gave previously imprisoned people the opportunity to rebuild their life, from providing affordable housing to even providing childcare for employees.
9. This college only for the poor (Barefoot College) redefined professionalism – Roy wanted to illustrate that its students’ knowledge and skills were universal and relevant, even if they were not learned in the form of traditional education. This new educational institution offered opportunities for people that would not have otherwise had the opportunity to attend school. This encourages entrepreneurs to think differently and to look out for opportunities to help underrepresented people as we can learn a lot from the skills they offer, even if they may be different from the skills we have.
10. In the Barefoot College example, I thought it was really interesting that he used sign language to train the three women to become solar engineers. This shows that language barriers will not deter dedicated workers from making progress and making real change happen. The initial training created a ripple effect that perpetuated the spread of knowledge to multiple communities, since these women were able to communicate what they learned to their community that spoke their own language. Roy also mentioned that people don’t have to look for solutions outside – they can look for solutions within, and people should always be willing to listen to others, because people may just have solutions right in front of them.

1. Develop a Business Model for your venture using the Osterwalder Business Model Canvas.

Business Model for Venture:

Value Proposition:

• We help Filipinos reduce the amount of plastic generated in the landfill by selling them a business solution that would allow them to turn recycled plastic into high-value products that can be sold

Customer Segments:

• Junk shop owners in Manila
• Entrepreneurs in the Philippines (Paradise Village specifically)

Channels:

• Plastic supplier from waste management facility
• Junk shops or other retail stores to sell the finished product 

Customer Relationships:

• Nanays in Paradise Village
• NGOs
• Junk shops & entrepreneurs

Revenue Streams:

• US: Selling the manufacturing technology and business model
• Entrepreneur/junk shop: Selling plastic bricks to people 

Resources:

• Equipment for testing at Mountaintop
• Recycled plastics
• Junk shops and entrepreneurs
• Nanays
• UPD
• Lehigh University facilities and staff

Partners:

• Machinery manufacturing company
• Junk shop
• Entrepreneurs
• UPD

Activities:

• Oversee system of community-based recycling facilities
• Develop the technology (the machineries and molds) that entrepreneurs and junk shops will need in order to produce the recycled plastic products.
• Educate entrepreneurs/junk shop how to operate the machineries
• Help the entrepreneurs/junk shop in obtaining the machineries to produce plastic products
• Negotiate with manufacturers to produce the machineries and molds that will be sold to the entrepreneurs/junk shops

Costs:

• The tools and equipment necessary to develop the prototypes of the machine
• The material and testing facility to test the wall system made out of recycled plastics
• Prototyping the building blocks out 
• Machinery cost
• Cost of installation
• Training cost

Business Model for Junk Shops/Entrepreneurs:

Value Proposition:

• We reduce the amount of plastic entering landfills and oceans by turning recycled plastic into high-value products and selling them to the community

Customer Segments:

• NGOs
• Private citizens hoping to use bricks to build structures for their own use

Channels:

• People collecting waste plastic

Customer Relationships:

• Nanays in Paradise Village
• NGOs

Revenue Streams:

• Selling plastic bricks to people 

Resources:

• Machinery
• Business model
• Plastic
• Nanays
• UPD
• Lehigh University facilities and staff

Partners:

• Machinery manufacturing company
• Nanays
• Lehigh University
• UPD

Activities:

• Oversee system of community-based recycling facilities
• Produce higher-value products from plastics
• Educate entrepreneurs/junk shop how to operate the machineries
• Help the entrepreneurs/junk shop in obtaining the machineries to produce plastic products

Costs:

• Machinery

2. List ten lessons from the Business and Operations model of the Aravind Eye Hospital

1. You must create ownership in the community of the problem and engage them as partners. There have been many cases where people identify a large scale issue and attempt to implement a solution without consulting or engaging the community involved. Community members may not appreciate this effort without being engaged. For instance (outside of the US), there was a case where the government decided to build houses to natives as an effort to provide housing. At the end of the construction, no native moved into the house since the housing structure was completely different from the values the natives held. All the efforts and materials were wasted from the lack of consultation to understand the needs of the native.
2. No matter how successful a business or operation appears to be, you must take a step back and evaluate the big picture. There was a point in Aravind Eye Care System where the group was providing examinations and glasses per person every 20 minutes. In addition if eye surgery was necessary, the service was provided the next day. From the perspective on the rate that services are provided to patients, it appears as if the company is doing great! However, after analyzing the efforts from a bigger perspective, the company found that they have only reached 7% of the people in need of eye care or service. This number pointed out that the company was not meeting their goal of adequately addressing the bigger problem and expanding their service to a larger population. 
3. You must work around the pre-conditioned situation and environment of the existing issue. When Aravind Eye Hospital first started out, their goal was to provide low-cost eye care to millions. As they expanded, the group faced the challenge in reaching out to people outside of their 5 hospitals. Many patients were unable to travel the long distance in order to receive the treatment they needed. Aravind Eye Hospital identified the travel barrier and developed the solution of sending out vans to provide the treatment patients needed in their hometown. 
4. You must be willing to expand outside of your expertise in order to achieve your goals. Aravind Eye Hospital failed their negotiation with a tech company in order to obtain the necessary tool to provide low-cost care to their patients at one point in time. The failed negotiation led the company to expand their service only company to the manufacturing industry. The company did so well in reducing the cost of production that they eventually managed to reduce the cost of the technology to 2% of its original cost.
5. They get glasses in the frames of their choice. Even when starting a social venture like this, it is still important to consider demand in the market. The company even stated that people were willing to pay more for frames they liked. This not only increased the surplus, but also provided those who needed glasses with a pair they felt confident in.
6. Using the producer surplus gained from market inefficiency allows them to provide services for free. This increases the portion of the market that the venture can reach, but does not exclude those in need because they cannot pay.
7. By taking advantage of economies of scale by producing a diagnosis device inhouse, rather than purchasing them from another vendor, they were able to keep costs down. This allowed them to expand within India and eventually to other countries.
8. They focused on the value propositions of quality and timeliness; people were able to get high-quality spectacles in just about 20 minutes. Also, if a person needed repairs on their glasses, they were available to fix their glasses right there at the campsite. For people that needed surgeries, they had buses waiting to take them to the base hospital, they received surgery the following day, then they took a bus back to where they came from. Focusing on these two qualities, while also providing the services at a low cost, improved engagement within the community.
9. Logistical support may not always be readily available; Aravind ensures that there will be buses ready to take patients to the hospital right away. If it weren’t for this easy accessibility, many people would probably never get these services. Accessibility is important to consider when developing our own venture because even if people do want our product, there needs to be a clear plan on how they will receive it, and these resources may not always be readily available. 
10. The productivity of Aravind’s staff was significantly higher than anyone else’s – they had excellent quality assurance systems that significantly lowered the complications of their processes. This was one of the reasons why their costs were significantly lower when compared with the UK’s costs as well. PlasTech Ventures can look into developing a similar set of activities that determine the most effective procedures and standards to develop our products – more specifically, we can look into auditing the quality of our machines frequently and training people on how to use the machines properly.