Week 44 – Planning the financial validation of our event
During our weekly meeting on Tuesday we also started to plan the financial validation of our event. In order to plan the financial validation we started by using a business model canvas presented for us during the lectures. Our business model canvas is shown in figure below and it will be opened up further below where the business model is more deeply explained.
More about the business model canvas
Our business model does not aim to generate high profits, whereas it mostly focuses to break even in all of its events. Due to this reason the business model is highly dependent on collaboration between us and other companies. Companies are needed to provide some coaching (Coachilla), organize CV, application and interview workshops (aTalent), and to provide more content and much desired contacts to the course (actual firms, in which the applicants are interested).
Based on our research this collaboration should be more than possible. In previous blog posts we talked about how one of our contacts (previous CEO of aTalent) told us that getting companies involved in the course should not be difficult, since companies want to be active in recruiting young talents and getting to know students. In addition, this contact highly believed that companies are willing to pay some money for such a service due to these reasons. In other words, getting the actual companies (who in the future will be hiring the course participants) to participate should not be a problem.
Also, collaborations with companies such as aTalent and Coachilla, should not be a problem either, since we have contacted these companies and they are really interested in such an event. For aTalent this course would benefit their recruiting process and for Coachilla it is a great possibility to introduce their services to new people who might be willing to pay for such a service once they are introduced to it. Furthermore, in the center of all is to help the students improve their weaknesses and for them to get their dream jobs, and we believe that with this service it will be easier to obtain these goals. Therefore, the customer segments, in which our business model focuses, are the second and third year engineering students from Aalto and the sponsoring and other co-operating companies, which all will be participating in the course.
Moreover, getting all these previously mentioned companies to participate is vital for our plan to work, and therefore the companies, which are also our customers, are further also our key resources that will be needed to organize the course. The customer relationship is mostly short-term with students (intensive course), but with companies the relationship can last longer, since same companies can participate in many courses/events.
All in all our service, would provide for the students all kinds of activities to improve their change of getting the dream job in the near future.
More about financial stuff
In the beginning we wrote how our project plan focuses on breaking even, from a financial perspective. As in this post, and in previous posts, we have said that we will ask a small fee (about 20€) from the students (20-30 students/course) who are participating in the course to ensure that they will attend once they have been accepted, and also to pay some of the expenses of the course such as food, drinks and other materials. However, larger payments will be asked from the companies who are attending the course, since they have money and also benefit from our services. Based on the interview with the former CEO of aTalent, as previously mentioned, getting big companies to pay something should not be a problem.
Below there is some estimates for the expenses of the course and how we plan to break even:
- Participants: ~ +500€
- Companies (sponsoring/possibility to take part): ~ +1400€
- Food, drinks, snacks (also for company representatives): ~ -1000€
- Other materials: ~ -200€
- Renting a sufficient place for two days: ~ -500€
#Note that these numbers are estimates, sometimes the money we use on food can, for instance, be smaller and sometimes we can maybe use a space that costs nothing or very little (like Design Factory). These are just estimates to present the logic behind our business model.#
Furthermore, our concept of a course/event holds very little risks and no initial investments are needed, because of the nature of our concept. Courses can be kept as often as wanted when there is enough applicants, with interests towards the companies we are collaborating with at the time. However, one possible risk that we might face is to actually get students to participate, but based on our research (presented in previous blog posts) 30-40% of second to third year students in Aalto (Technology) would be willing to attend such a course/service. The yearly intake is about 1000 students, so based on this information 300-400 students from one class should be statistically interested in our course. This number should be sufficient to organize enough events for different kinds of students and companies, which makes the collaboration with companies such as aTalent and Coachilla reasonable and further tempt bigger companies to sponsor and participate in our events.
All in all, based on our calculations and the research we have made organizing such an event for students and companies to meet each others should not be a problem. Furthermore, we believe that we should not lose any money when organizing such an event.
Until next time!