Operations
Breakeven analysis
Table of Contents - Business Plan Ides
Milestones and KPIs
Communication Plan

More details about on the "Business Plan Ideas" document: https://bit.ly/2VGyo7b

The problem BeeHero project solves

Problem

The outbreak of COVID-19 pandemic will cause a massive job loss. Right now, after two months of ‘lockdown’, people are losing their jobs, their income streams and also social connections. There are reports and forecasts of an increased demand in lending in the EU, but one of the major problems that countries are facing - at a political level - is that there may not be enough liquidity in the market.

And this problem could be more sensitive for the university students and student-workers that need a financial bumper or rest to afford their pre-COVID-19 financial commitments.

BeeHero is a financial facility for those who are seeking short and long term support to complete their own learning track, following ethical principles and effectiveness:

As an hive in which a bee can be part of a bigger project

Our vision is a financially inclusive EU where all people share the power to enhance their lives.

Coronavirus is challenging EU citizens to keep the distance from each other. BeeHero Project addresses problems and potentials at a local level with a high potential:

Helping local community, foundations, institutions or charities to support individuals in their own education track, taking charge of those students that are following a reliable path;
Avoiding social distancing, students can raise financial or in kind aids using the BeeHero platform;
Helping people (or institutions) to lend money into valuable projects without interest rate (or with not so high interest rate) following a reliable track

Most platforms charge interest rates that can be even more than 10% and set burdensome repayment terms. On the contrary, BeeHero has no interest rate, and borrowers set repayment terms they feel are doable.

The solution we bring to the table (including technical details, architecture, tools used)

Why BeeHero is different

There are many crowdlending platforms active worldwide with extremely diverse business models that differ from one another based on. From a business point of view, BeeHero will help to provide microloans between 50 € and 1.000 €, with terms set by the borrower. There is no interest charged for the loans on the platform. Borrowers set their own terms, select the repayment date, how much they need, the reason they need it and what they would like to tip the individual lender. Tips are capped at 10%. The lenders are not the wealthy, but average everyday European who want to pay it forward and help make a social impact. According to the other peer-to-peer lending industry data the average amount of money landed is approx 250/300 euro. As a tool for policy makers, this platform allows borrowers to repay in kind the loans, for example, with services related to the field that has been studied by the student-borrower. On a third side, the platform allows lenders to put in place in kind contributions to help students and to increase the awareness of their activity.

Sources of revenues

BeeHero has a traditional corporate structure with equity holders who expect to profit from growth in network adoption with an ethical view about the borrowing process.

Main revenue source will be loan servicing. Fee structures may change from case to case depending on the project and its feasibility. Below the main structures fee that will be used: Origination/transaction fees - Calculated as percentage of raised funds, directly connected to fundraising success and volume. Application processing and scoring fees - not dependent on the campaign success these are mostly fixed amounts charged for the application processing, due diligence and scoring procedure. Service fees - based on the outstanding loan amount (percent of the outstanding principal), loan performance (percent of the interest payment) or portfolio value (charged to investors as percentage of current portfolio value), these fees cover costs originated by loan administration activities. Other fees – mostly charged for additional services such as portfolio management, special investment tools, collection and legal services, etc.

To have a profitable initiative and a cost-recovery business model BeeHero will have also these (not exclusively) sources of revenues:

ADV fee for those institutions or companies that will sustain a project with a grant or scholarship
ADV fee for those institutions or companies that will sustain a project with in kind contributions
Donations to sustain the BeeHero Platform
Commercial due diligence;
Borrower scoring;
Portfolio management;
Marketing and sales services;
Collection and litigation support;
Investment insurance and buyback guarantees;
Loan securitization in terms of buy back from the platform (the seller will pay a fee); -Payment services;
Financial consulting;

Sales & Break-even analysis

Our spreadsheets show an hypothesis of total sales and cost during the 48 months of the projects, following the Milestones presented in the previous chapters. Of course this is a pre-preliminary feasibility study.

Assuming the shown cost structure, it’s important to underline that the break-even could be achieved with only 95 loans of 1000 euros each.

More details about the break even analysis and sales are in the "Business Plan Ideas" document: https://bit.ly/2VGyo7b

Borrower’s Perspective

A borrower starts the process of crowdlending by contacting the platform, which, in turn, enables either a simple login (in case the borrower has already conducted campaigns on the platform in the past) or an application process (for the first time borrowers). After the login/application, the borrower submits his/her campaign proposal which includes a presentation, a sort of milestones/achievements plan, the loan request, the repayment plan etc. to the platform and goes through a due diligence, conducted by the platform itself and/or a third party provider. After a successful check, the platform approves the submitted proposal. After the approval, borrower and the loan terms are presented on the platform and the fundraising campaign begins. In case the fundraising limit is achieved within the planned timeframe, campaigns are considered successful and the borrower enters the loan agreement with the lenders, thus getting access to the raised funds. Once the campaign is started and implemented, borrowers will be obliged to regular and detailed reporting to investors. Borrowers will be obliged to repay the loan according to the schedule and on terms agreed upon in the loan agreement.

Lender’s Perspective

Lender’s customer journey begins with the application or login (for already registered investors) on the platform. The main task of the platform in this stage is the initial check of applicants and implementation of know-your-customer and anti-money-laundering procedures according to local laws. After a successful check, potential lenders are given access to investment/lending opportunities presented on the platform, with all the relevant details of the loan. When a lender has selected a borrower and entered the loan amount money is usually transferred to an escrow account where it stays until the campaign has ended. Simultaneously, the lender has signed a digital loan agreement with the borrower. At the end of campaign, if the targeted amount has been achieved, the loan agreement is effective. If the borrowers fulfil their reporting obligations according to loan agreement and platform requirements, lenders are regularly informed about their loan and receive their scheduled principal and interest payments.

Platform’s role

As already described in previous chapters, the platform's function is to facilitate the whole fundraising and investment process, but it does not end there. After the funds have been raised, the administration of the loan and all the processes connected to loan repayment (or default) are covered by platforms to at least some degree.

Technology

It’s crucial to establish a flexible and agile methodology in order to guarantee the business continuity even under new pandemic waves. Cloud technology is a key factor not only to let the BeeHero system run 24/7, but also to manage constantly and remotely any kind of issues (from the customer point of view and also from the stakeholders’ one). A strong relationship with the bank system is needed: a bank with a strong presence on the internet should be the primary choice for the project. In this way lenders are able to join the project at any time. A strong CRM is also needed to manage both lenders and borrowers. The mobile channel (such as apps and similar solutions) will be the core of the activity

Business threatens

Beehero will take due diligence for each borrowing project. Major investigations will be conducted on this fields: Prevention of over-indebtedness

Responsible pricing
Transparency
Fair and respectful treatment of clients

What happens if a borrower can’t repay the loan?

If a borrower is behind on paying back a loan, the platform may try to reschedule repayments in order to make it possible for the borrower to eventually repay. When a Beehero loan defaults, it will be notified to the lenders and these lenders can consider the remaining amount outstanding as a loss. In order to give a shield-loss BeeHero could consider purchasing the outstanding amount from the lenders with a discount and try to come to end the lending process directly.

Anti-fraud and anti-money laundering

Given the high importance of the traceability of financial transactions, the anti-money laundering (“AML”) and know-your-customer (“KYC”) requirements should be assessed to determine whether the participants in the crowdlending projects would be subject to any legal requirements.

Privacy and data protection

Further, the Data Protection Law which presents a copy of the EU General Data Protection Regulation (GDPR) to a large extent, contains key rules and requirements that platform operators need to comply with, mostly related to: (i) data processing principles, (ii) legal grounds for data processing, (iii) data subjects’ rights, (iv) data governance and security obligations, (v) security of processing, (vi) data transfer, and (vii) sanctions and enforcement.

More details about the Business operations, the threatens and the Communication plan, please see the "Business Plan Ideas" document: https://bit.ly/2VGyo7b

What we have done during the weekend

We tried to figure out a 48 months companies and its implications, in order to prevent students from going through a liquidity crisis. This effort will be reliable, social responsible and financial sustainable, under the EU institutions umbrella.

The BeeHero’s impact to the crisis

This section will analyze the impact of the platform through three specific use cases

1- Helping local communities and institutions to guarantee the right to study of their off-site students and working students

Zachariáš is the first off-site university student of his village, a little country town in Czech Republic. He is attending the Charles University in Prague and he wants to be a doctor. Two years ago Ester, the mayor of the Zachariáš’ village, decided to implement the rights to study programmes of her town because she knows that her local community needs more physicians. For these reasons Ester implemented a BeeProgram through BeeHero to make a deal with those students that want to become a doctor. Thanks to the BeeHero platform Ester decided to finance - with public money - the learning track of Zachariáš. Ester knows that social boundaries are more powerful than the economic ones. So decided to go public and finance the Zachariáš’ medical studies using a Beehero campaign in which there are no interest rates for the money put into, but a long term deal: once he gets his medical degree, Zachariáš will guarantees free of charge medical treatment for his fellows citizens - at least five weekends per year. Ester decided to use BeeHero because it is a reliable platform and also because there is a full disclosure about the use of the public budget of her town. In this way she can strengthen the trust between citizens and institutions.

2- Reinforcement of the familiar financial support continuity

Zachariáš, off-site student, after a new COVID-19 wave, will not be able to return to his family as planned months before. He can only speak with his loved ones by phone. In this way his financial plan is radically changed because he cannot collect money to pay his students loans and tax. He has to make a choice: if he should repay his duties or purchase food. But a solution can be found using BeeHero: his grandmother, Maria, and his uncle, Viktor, can send him a small amount of fresh money in order to let him continue his studies.

3- Helping people to lend money into valuable projects without interest rate (or with not so high interest rate) following a reliable track

Teodor is a restaurant owner and knows the Zachariáš background. Once he jumped into the BeeHero platform, he decided to support the ‘Zachariáš’ journey’ sending him a weekly dinner cooked in his professional kitchen through a food delivery system. He decided to do so, not only to support this lovable guy, but also to increase the awareness of his restaurant.

Marta is a german citizen who has a little amount of money ready to be invested. She is scared by the standard financial-bank system and she knew the BeeHero project on Facebook. “If with my money I can do good things - such as boosting someone's schooling - and I can also earn something, why not BeeHero?”. For these reasons Marta trusted BeeHero and the Zachariáš’ journey because in the last two years he passed all his exams, and she decided to lend money to him with a near to zero interest, with a strict repayment schedule. Until now Zachariáš never missed a reimbursement.

The necessities in order to continue the BeeHero project

Period	Project phase	Milestones	KPI
M1–M12	Project Initiation	- Establishing strong partnerships under the EU umbrella (business & legal, and local policy makers); - Identification of Target communities; - Opening call to lenders; - Establishing legal and bank advisors board;	- At least 10 target communities - At least 10 calls - Starting at least 10 BeeProjects
M12 – M24	Initial offering and Evaluation	- Community involvement; - Response to Open Calls; - Starting of the core operations; - Starting of valuable Bee projects.	At least 50 target communities - At least 50 calls - Starting at least 50 BeeProjects
M24-M36	Establishing the long term presence and sustainability	- Intensive use of project deliverables; - Provision for long term sustainability; - Dissemination of the project results.	- Break even point exceeded - At least 150 target communities - At least 150 calls - Starting at least 150 BeeProjects
M36-M48	Roll-out and Long term Exploitation	- Boosting the R&D department or initiatives in order to be in line with the market needs - Review the business model in order to seek more budget efficiency	- At least 200 target communities - At least 150 standard calls - At least 50 new-type calls - Starting at least 200 BeeProjects

The value of BeeHero after the crisis

This is our motto: As an hive in which a bee can be part of a bigger project We think that this platform, that bring on the table a strong social-financial-and-ethical commitment, will strengthen the social ties put to the test by the coronavirus crisis. Our vision is a financially inclusive EU where all people share the power to enhance their lives. To achieve this goal is crucial to assure - after this pandemic wave - that the next generations of EU leaders could have all the means that their fathers enjoyed. Only in this way the European Union can continue to thrive.