BP---Straw architects by Irene

TABLE OF CONTENTS

SUMMARY ............................................................................................................................... 3 HISTORY & BACKGROUND ................................................................................................. 4 Market demand and opportunities .......................................................................................... 4 Company Ownership .............................................................................................................. 5 Personal motivation and experience ....................................................................................... 5 Vision, Mission, Aims and Objectives ...................................................................................... 6 The Company ......................................................................................................................... 6 Mission and Vision ................................................................................................................ 6 Aim and Objectives ................................................................................................................ 6 Objectives ............................................................................................................................... 6 PRODUCTS AND SERVICE ................................................................................................... 7 Service description ................................................................................................................. 7 Sales Package and Pricing ...................................................................................................... 7 Unique Value Proposition ...................................................................................................... 9 Target Customers ................................................................................................................. 10 Entry and Growth Strategy ................................................................................................... 10 KEY PERSONNEL AND RELATIONSHIPS........................................................................ 10 Management Team ............................................................................................................... 10 Outsourced Roles ................................................................................................................. 11 Organization Structure ......................................................................................................... 11 MARKET RESEARCH ........................................................................................................... 12 Potential residential building market.................................................................................... 12 Potential commercial building market ................................................................................. 13 COMPETITORSâ&#x20AC;&#x2122; ANALYSIS................................................................................................ 15 The similarities/differences between Straw Architect and competitors ............................... 15 Other competitive advantage ................................................................................................ 16 MARKETING PLAN .............................................................................................................. 17 Marketing Objectives ........................................................................................................... 17 Overall Marketing Strategy .................................................................................................. 17 SWOT AND RISK ANALYSIS.............................................................................................. 19 SWOT Analysis.................................................................................................................... 19 Business Risks and Mitigating Strategies ............................................................................ 19 FINANCIAL HIGLIGHTS...................................................................................................... 21 RESOURCES AND INVESTMENT ...................................................................................... 22 APPENDIX .............................................................................................................................. 23

SUMMARY

Straw Architects is a start-up architectural firm specializing in the use of straw for residential, commercial architecture. The company will be located in Manchester, UK. Straw Architects will offer architectural designs, full design packages for planning, artistic impressions, energy consulting, BIM supporting, and site technological management solutions focusing on the use of straw bales/panels and other low-carbon building materials within the UK market. The company will achieve its aim of delivering energy-efficient and overall net-zero emission buildings by providing a detailed drawing and technical support for straw structure solutions, using innovative technology that is simple, low cost, and effective. For the first two years of operations, the company will focus on the use of straw bales/panels, after which other low-carbon building materials, such as adobe, rammed earth and hempcrete combined with lime materials, will be provided and encouraged for design and consulting services. Ms. Jing is the founder and she serves as the Chief Executive Officer for Straw Architects. The company will set up an Advisory team immediately after operations begin, they will assist the business in discovering business opportunities within the UK market. The company will hire an Architect, a sales representative and an Admin officer as full-time staff while roles such as the account officer, IT personnel, and marketing officer will be outsourced. We intend to achieve an impressive market position in the UK through strategic marketing activities that communicate our capacity to deliver cost-effectively, and quality architectural services. Our company will provide three sales packages which will accommodate a wide range of customers with different architectural demands: drawing and technical consulting services as ‘Package A’, design services as ‘Package B’ while straw panel services as ‘Package C’. Our unique selling point is to provide VR viewing and live video of the whole process, we will also offer personalized customer services which will cause clients to stay glue to us. Our marketing plan includes the use of routine newsletters, business flyers and cards, email marketing, cold calling, social media handles, and word-of-mouth referrals by satisfied clients. Our target market is segmented into two categories: Residential (homeowners) and nonresidential (Schools, Caravan clubs, Temporary buildings etc.). For the two years of operation, we will focus more on residential projects, in the third year, the marketing and design department will be expanded to have more capabilities to undertake medium-scale commercial project above 1 million funds by gradually cooperating with chain brands, obtaining stable customers and market demand. Our First-year sales are expected to reach £127,000 and increase to £218,400 by the two year of operation. We will be profitable within two years of business operation. The most significant challenges ahead include establishing the initial client base and ultimately positioning the firm to be able to have a presence in a larger, global market. This business plan outlines the objective, focus, and implementation of this start-up firm.

HISTORY & BACKGROUND MARKET DEMAND AND OPPORTUNITIES There are global concerns and awareness about hazards from conventional building materials that have both social and environmental impacts. Quantifying these overall impacts on environmental and human health is complex and currently unaccounted for. For instance, toxic materials that affect indoor air quality (IAQ), produce toxicity pollution for the environment and human during the production stage. Reduction in different characters of building materials such as embodied energy, energy consumption, CO2 emission, and recyclability can simultaneously affect both environmental and human health.1 To address these issues, new materials and technologies are urgently needed in the architecture industry, hence the need for sustainable architecture. The earliest record of using straws for construction dates back to the 19th century in the United States of America where settlers in the Mid-West stacked, pinned and compressed bales in what was called the ‘Nebraska Method’2. The North West Region and Yorkshire of England produces 70% of the straw in the UK. 3.96 million tonnes of straw are readily available to be used to build 551,916 straw bale houses per year according to Hawkers’ report, these data illustrate the abundance and potential supply market of straw materials in the UK3 (fig.1).

Fig.1-Table showing production rates in each region of GB

Sustainable architecture is that which seeks to minimize the negative environmental impact of buildings by efficiency and moderation in the use of materials, energy, and development space and the ecosystem at large. Sustainable architecture uses a conscious approach to energy and ecological conservation in the design of the built environment and that is exactly what we represent at STRAW ARCHITECT.

1 CRL., (©2020). [Viewed 6 October 2020]. Available from: https://c-r-l.com/content-hub/article/demand-forgreen-building-to-show-significant-growth-by2021/#:~:text=According%20to%20research%20conducted%20by,showed%20that%20almost%20half%20of 2 Minke, G. and Mahlke, F., (2005). Building with straw. Basel: Birkhäuser. 3 Sutton, A., Black, D. and Walker, P., (2011). Straw Bale: An introduction to low-impact building materials. Watford: IHS BRE Press.

COMPANY OWNERSHIP Straw Architects will be owned and managed by its principal investor and operator, Yiran Jing. PERSONAL MOTIVATION AND EXPERIENCE Over the past decade, the global demand for green ecologically efficient building structures has grown immensely. Both the public and private sectors in the United Kingdom promote green building and the demand for it has been on a rise. Also, a strawbale home will save homeowners a 75% cost of heating and cooling compared to a conventional home.4 I learned building code and computer aided design skills at the undergraduate level. During my studies at the University of Sheffield, I also learned sustainable and low-energy-consumption buildings, materials, and construction methods, and the calculations of building data. I also visited the Enterprise Centre at The University of East Anglia, dubbed by the press as the UK's greenest building, the building was designed and delivered to achieve the Passivhaus standard and a BREEAM outstanding rating. Whilst under the lock down of the coronavirus (COVID-19) pandemic in the UK, I actively engaged myself with watching Ted Owens’s videos about straw house buildings, I learned a lot about the straw house construction and techniques. Before my masters’ degree, I worked as a construction on-site designer for five (5) years where I mastered the use of the BIM system to coordinate interior decoration and electromechanical departments in a large 200,000 square meter commercial complex project in Xi'an Chicony Company, I also effectively carry out building optimization and control risk costs (fig.2).

Fig.2- The picture shows the personal experience

Our motivation at STRAW ARCHITECTS lies in the drive to help people create a natural, low energy, and healthy living environment. The primary reason the use of Straw bales comes first on our list and are attracting the attention of today’s environmentally conscious architects is that they are made from plant matter which is not only sustainable but is fully packed with CO2 absorbed from the atmosphere, which is released by burning or decomposing. Building with straw effectively locks in this carbon, sealing it inside the building potentially for centuries. 4

CISION., (©2020). Green Building Materials Market to Reach USD 573.91 Billion by 2027 | Reports and Data. [Viewed 6 October 2020]. Available from: https://www.prnewswire.co.uk/news-releases/green-buildingmaterials-market-to-reach-usd-573-91-billion-by-2027-reports-and-data-896481795.html

VISION, MISSION, AIMS AND OBJECTIVES THE COMPANY Straw Architects is a start-up architectural firm specializing in residential and commercial architecture using natural building materials in UK markets. The firm will deliver architectural design services using technological processes to provide superior value for clients via enhanced designs. For the first few years of our operations, we will consider renting a small office on Wework located in Manchester, UK.5 For the first two years of operations, the company will focus on the use of straw bales/panels, after which other low-carbon building materials, such as adobe, rammed frame and hempcrete combined with lime materials, will be provided and encouraged for design and consulting services. Our expansion activities will revolve around focusing on a wider range of low-carbon materials for building and creating excellent and competitive designs to that effect. MISSION AND VISION Our mission is to demonstrate a safe, sustainable, and enriching way of living by providing low-carbon building designs and consultancy to businesses and individuals for a balanced and healthy environment within the UK, at cost-effective prices. Our Vision is to become one of the foremost sustainable architectural brands renowned for professional, cost-effective and quality service delivery in the UK. AIM AND OBJECTIVES We aim to promote the acceptance of straw buildings as a standard building material, build more affordable, eco-friendly and energy efficient buildings, and expand commercial capacity and stability of Straw Architect. OBJECTIVES • • • • • • • • •

To provide every client the satisfied service from our professional drawing, consulting and technical support. To achieve £127,000 in revenue for its first financial year and £218,400 by the second year of operation. To build a R&D department to create more sustainable solutions for straw buildings and other low-carbon building materials. To achieve a 12% yearly increase in our customer base through outstanding service delivery and word of mouth referrals. To engage and promote the knowledge of green building within the community through community support such as weekend lectures on green buildings, newsletters and flyers. To achieve an average of 45% increase in revenue over the first five years of operations. To continually adapt greener approaches in all our operations to achieve environmental sustainability. To achieve an immense online presence through strategic marketing plans. To grow STRAW ARCHITECT to become a brand to be reckoned with in the UK architectural industry.

PRODUCTS AND SERVICE SERVICE DESCRIPTION At Straw Architects, we offer full design packages for planning, artistic impressions, energy consulting, BIM supporting, and site technological management solutions focusing on the use of straw bales/panels and other low-carbon building materials. We are committed to letting customers understand our products first, which is divided into Four steps（see Appendix for details）.

STEP1. Knowing the straw building products

STEP2. Knowing our design process.

STEP3. Knowing our service package and pricing.

STEP4. Knowing the production, we will present to customers.

SALES PACKAGE AND PRICING At Straw Architects, our sales packages are grouped into Three to accommodate the different needs and demand of our clients.

Package A Consulting Services

Plan Review: This involves doing a thorough evaluation on the clients’ already-made plans and designs. All changes and suggestions will be detailed in a thorough report. Our clients will achieve a mistake-free plan and efficient construction techniques that guarantees quick approval of straw bale building. Pricing Residential Projects: £200 - £300 per project review Commercial buildings below medium scale: £350 - £500 per project review

ArcGIS / Digi map / data analysis service: (This service is applicable to purchase before the site choosing). We will help clients choose a suitable site according to their needs by using the data and mapping of geographic information system software. For example, public transport analysis, land usage, street pattern / population density. Pricing £90/hour

BIM & Insight software-based building performance analysis: (This service is suitable for the clients who have already purchased their land and require this service prior to the commencement of the building construction). BIM & Insight empowers architects and engineers to design more energy-efficient buildings with advanced simulation engines and building performance analysis data. The comprehensive calculation in the early stage of construction helps to reduce the waste of materials and accurately control the project progress. At the same time, it is convenient to check the data and effectively replace the materials during the later maintenance. Pricing £90/hour

At Straw Architects, we will provide detailed drawings and technical support for straw structure solutions.

We will charge by a percentage of the total cost of the building works. This ranges between 8-10% for the residential building is based on the comparison of several marketing prices.6 For the residential building, the table below explains the five columns that represents increasing levels of project complexity, showing fees for projects up to £1.25 million in construction value. Our design services do not include construction services, but the construction costs and later energy saving costs, consumers should understand clearly before implementing the design service. 1. Residentials 2. 3.

Package B Basic Design Services NonResidential

New House Project: 8% to 10% +/- of the total cost of the building works. Renovation House Project: 12% to 15%+/- of the total cost of the building works. Additional services for either new home design or renovation design: 20%+/- of the total cost of the building works.

COST OF CONSTRUCTION

% BASIC FEES IN BLDG COMPLEXITY GROUP

Up to £100k £100K+ to £200K £200K+ to £300K £300k+ to £400k £400k+ to £500k £500k+ to £600k £600k+ to £700k £700k+ to £800k £800k+ to £900k £900k+ to £1M £1M+ to £1.25M

1 2 (LEAST COMPLEX COMPLEX) 8% 9% 7% 8% 6% 7% 5.9% 6.9% 5.8% 6.8% 5.7% 6.7% 5.6% 6.6% 5.5% 6.5% 5.4% 6.4% 5.3% 6.3% 5.2% 6.2%

10% 9% 8% 7.9% 7.8% 7.7% 7.6% 7.5% 7.4% 7.3% 7.2%

11% 10% 9% 8.9% 8.8% 8.7% 8.6% 8.5% 8.4% 8.3% 8.2%

5 MOST 12% 11% 10% 9.9% 9.8% 9.7% 9.6% 9.5% 9.4% 9.3% 9.2%

Additional service Additional Service Record Drawings Electrical Schematics Cabinetry Elevations Bidding/ Negotiating/ Price Discussions

Description

Price

Drawings for existing buildings that needs renovation For higher renovations

£120/hour 0.5% to 1% of total cost of building

For higher renovations

1% to 2% of total cost of building

We will influence and help in finding general contractors to bid the project, negotiate to get best possible price reductions.

0.5% to 0.75% of total cost of building

Construction Administration

We will periodically visit the project site, reviews contractor submittals, including shop drawings for the various items of the project, including but not limited to doors & windows, insulation, paint, and many other items

0.5% to 2.5%

Project Management

3D Imagery

This is a catch-all for anything and everything that the owner can’t handle but needs to be managed for them. 3D Imagery: Still shot computerized renderings based on 3D modelling, per view: 3D Exterior Animation lasting 30 seconds: 3D Interior Animation lasting 30 seconds

360° panoramic + VR Additional Interior Decorator Design Additional Interior Architecture

A rendered image in solid model style/ in photo realistic style, allowing the viewer to use the mouse to rotate 360° around a fixed point, revealing the entire space. Depends on the task. Depends on the task.

Package C: Straw panel supply services

0.5% to 2% £300 to £1100 based on complexity and number of views. £1,500 to £3,000 (depending on amount of detail). £2,000 to £5,500 (depending on amount of detail Solid model style: £600 Photo realistic style: £600 £80 to £200/hour £80 to £200/hour

At Straw Architects, we are going to work with prefabricated straw panel factory, such as Ecococon, to provide high quality, and affordable Ecococon panel. Healthy and natural Ecococon is slightly more expensive compared to industrial products, but the walls only account for about 10-20% of the overall construction budget. The exact cost always depends on the particular project. Pricing £230-350/m² for a regular customer price of a 3-bedroom detached house.

UNIQUE VALUE PROPOSITION

3d view effect solutions and virtual viewing experience for better customer experience

Customization and personalized design service

Connect Clients with local straw bales for free

Technical support solutions during and after construction.

Free consultation on green building

The use of affordable and available straw pannels

We offer free consultation appointments for the first-time clients.

On-site design and Live video of the whole process

TARGET CUSTOMERS

95% 1-2 year residential building •Self-builders •Home owners

5% 1-2 year Nonresidential •Schools •Caravan clubs •Temporary buildings

ENTRY AND GROWTH STRATEGY Strategies Market Penetration

Market Expansion

Service Development

Actions 1. Intensive and comprehensive marketing and PR activities through both online and offline channels. 2. Effective communication of our USPs through all our marketing channels. 3. Strategic marketing activities include use of high-resolution photos and videos for content marketing, giveaways and promo sales, listings on online business directories, etc. 4. Business Registration and connecting with relevant associations. 1. The use of other low-carbon building materials apart from straw. 2. Profits will be reinvested, and requisite investment funding will be acquired to provide for expansion purposes. 3. Sponsor Ads on Facebook and Instagram to enhance business visibility 1. 2.

Diversification

1. 2.

Market researches and surveys will be conducted to determine the newest innovations as regards straw building and designs. The Advisory team will discover customers’ preferences to help achieve personalised service delivery. Continuous update of design software brings customers a new design experience. Digitally recording our onsite and offsite straw practices and converting them into videos and books which can be sold as electronic copies.

KEY PERSONNEL AND RELATIONSHIPS The company will be managed by the CEO; Ms. Yiran Jing and the advisory team which will be set up by the CEO in the first month of business operation. For a start, Straw Architects will operate under three functional departments: Marketing department, design department and administrative department. As the number of project increases, the company will employ the service of a production manager and a cost estimator. The Production manager will be responsible for cooperating with straw panel material suppliers and also adding on-site designer to solve design problems in various projects while the latter will be responsible for estimating the cost of the project. Roles such as the account officer, legal adviser, marketing executives and IT personnel will be outsourced in the first few years of operation until the business is large enough to have them as permanent staffs. MANAGEMENT TEAM Chief Executive Officer (CEO) Responsibilities

• • • • • •

Oversees the overall business performance. Communicates with the advisory team Communicate directly with Architect, marketing and sales personnel, and clients to discuss and organize projects from original conceptual design through design implementation) Leads the development of the company’s short- and long-term strategies. Creates, communicates, and implements the organization’s vision, mission, and overall direction. Serves as the HR manager - Hires, coordinates and evaluates the activities of the workforce. Sets strategic goals and ensures they are measurable and describable.

Marketing and Sales Personnel Responsibilities • • • • • •

Identifies and prioritizes strawbale potential market. Meets with clients and attends trade shows, such as UK Construction week. Reaches out to new clients and pitch business to them through online and offline services. Familiarises with clients to make appropriate package service recommendations. Accomplishes periodic sales targets. Provides strategic inputs to the creation and implementation of marketing plans.

Administrative Personnel Responsibilities • • • • • •

Communicates effectively with clients and responds to their requirements. Develops and confirms schedules. Prepares the paperwork for regulatory bodies. Performs the role of a customer relationship officer. Serves as company’s receptionist - answers and redirects calls; sends, receives, and organizes all correspondents. Performs other responsibilities as required by the CEO.

Architect Personnel Responsibilities • • • • • • • •

Arrange meetings with clients and provide clients with questionnaires to understand their needs for straw bale buildings. Introduces clients to the details of straw construction process before the design starts. Manages design projects from concept development through to completion. Develops and presents clients with project proposals. Prepares drawings, blueprints, specifications and construction documents. Conducts research and compiles reports on feasibility and environmental impact. Compiles safety standards and local planning regulations. Determines and adheres to budgets and timelines.

OUTSOURCED ROLES Account Officer/ Legal/ Marketing Executive/ IT Staff/ Advisory Team ORGANIZATION STRUCTURE

MARKET RESEARCH POTENTIAL RESIDENTIAL BUILDING MARKET Homeowners constitute the highest percentage of our target market. There is a total of 23.2 million households in the UK, of which 14.8 million have private houses, that is, 64% of the houses are private houses.7 From 09/2008 to 08/2017, the average family size in the United Kingdom remained basically unchanged, with an average of 2.3 people per household.8 It can be calculated that 34.04 million people own private houses. Most of the people who choose straw buildings are homeowners who want to try healthy materials. Our package A provides these groups with consulting services for renovation, reconstruction and upgrading. It is currently estimated that there are more than 25 million residential properties throughout the United Kingdom.9 According to the UK housing structure type analysis, the majority (81%) of dwellings were houses or bungalows; most of these being two story houses. Flats made up 19% of the stock. 10 For straw-structured houses, most of the construction methods can be applied to detached houses and semidetached houses instead of apartments. therefore, 20.25 million houses have space for new materials to replace. Our package C provides the solution desired by this group. More and more British people are choosing a healthy lifestyle. The 2019 State of the UK Fitness Industry Report reveals that the UK health and fitness industry is healthier than it has ever been. In the UK, 1 in every 7 people is a member of a gym.11 In total, 58 percent of Brits bought organic food in 2017. This was an increase of eleven percent compared to the previous year. Organic market continues its solid growth of the last eight years, growing 4.5% in 2019 to reach £2.45bn.12 Therefore, people who like sports and healthy food will also list healthy housing as their choice, because straw buildings and other environmentally friendly building materials will have more potential markets.

7 Great Britain. Ministry of Housing, Communities & Local Government., (2017-18). English Housing Survey [online]. [Viewed 28 October 2020]. Available from: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/834603/201718_EHS_Headline_Report.pdf 8 Statista., (©2020). Average size of a household in Great Britain from 2008/2009 to 2017/2018. [Viewed 28 October 2020]. Available from: https://www.statista.com/statistics/525489/average-household-size-in-greatbritain/#:~:text=It%20can%20be%20seen%20that,persons%20in%20households%20on%20average. 9 Property Price Advice., (©2019). What are the different types of housing in the UK [Viewed 28 October 2020] Available from: https://www.propertypriceadvice.co.uk/moving-home/housing-types-uk 10 Communities and Local Government., (2008). English Housing Survey [online]. [Viewed 28 October 2020]. Available from: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/6703/1750754 .pdf 11 Sports think tank., (©2019). The 2019 State of the UK Fitness Industry Report. [Viewed 29 October 2020]. Available from: https://www.sportsthinktank.com/news/2019/05/the-2019-state-of-the-uk-fitness-industryreport#:~:text=In%20the%20UK%2C%201%20in,and%204.2%25%20in%20market%20value 12 Natural products global., (©2019). UK ORGANIC SALES: UP 4.5% IN 2019, ON TRACK TO BE WORTH £2.5BN IN 2020. [Viewed 29 October 2020]. Available from: https://www.naturalproductsglobal.com/breaking-news/uk-organic-sales-up-4-5-in-2019-on-track-to-be-worth2-5bn-in-2020/

According to the Ministry of housing, more than 240,000 properties have been added to the country's housing. 13 Under the current covid-19 Climate, buying a home in England or Northern Ireland, house buyers will pay no Stamp Duty if the total value of their home property is less than £500,000. 14 House sales have, in fact, been paused at the height of the pandemic and the property tax cut was introduced to boost homebuying. Yorkshire and The Humber are two regions that have seen the highest annual house price growth, with prices increasing by 4.9% in May 2020, up from 2.0% in April 2020 (fig.3). Therefore, the UK is still generally active in real estate despite COVID 19, and there is a potential market for purchasing land or buying houses. This means that there is a market for our Package B----architectural design services. All dwellings annual house price rates of change, by English region,year to May 2020 North East North West Yorkshire and The Humber East Midlands West Midlands East London South East South West 0

Fig.3- The table shows the strongest regional growth was in Yorkshire and The Humber

POTENTIAL COMMERCIAL BUILDING MARKET The non-residential building is mainly used for the construction of schools, caravan clubs, and temporary facilities in the city. For Schools，Official figures show that in 2017/18, a record 50.2 per cent of English 17- to 30-year-olds had participated in higher education.15 In the future, more students will participate in higher education and more schools will be established. As the center of education focuses on the growth of young people, the construction of schools will use more environmentally friendly materials as support for the environment and educating the next generation about the importance of protecting the environment.

13 The Guardian., (©2019). Housebuilding in England at 30-year high, government data shows. [Viewed 29 October 2020]. Available from: https://www.theguardian.com/society/2019/nov/14/house-building-in-englandat-30-year-high-government-data-show 14 The Money advice service., (©2020). Stamp Duty - Everything you need to know. [Viewed 29 October 2020]. Available from: https://www.moneyadviceservice.org.uk/en/articles/everything-you-need-to-know-about-stampduty#:~:text=If%20you're%20buying%20a,home%20is%20under%20%C2%A3500%2C000. 15 Universities UK., (2018). Patterns and trends [online]. [Viewed 2 November 2020]. Available from: https://www.universitiesuk.ac.uk/facts-and-stats/data-and-analysis/Documents/patterns-and-trends-in-uk-highereducation-2018.pdf

For Caravan club, there are 2500 caravan clubs in the UK, 16 and the infrastructure of caravan sites, such as the receptionist, bar, changing room and recreation room, hotels can be built with straw materials. Since the caravan sites are all in the suburbs of the UK, straw materials are used Construction can save construction and transportation costs, so our company will seek opportunities for design cooperation with caravan clubs. For Temporary building, straw panels can be used to quickly build temporary houses. The prefabricated panel can be temporarily assembled within 1-2 days on site, which is convenient for use in urban areas, such as outdoor concerts, grab to go café shops, temporary art exhibition. These temporary panels do not require a lot of labor to install and will not cause any environmental pollution to the city. Therefore, our company’s cooperation in the design direction also focuses on temporary projects in the city. According to Modcell Straw Technology and Ecococon and other private residential projects in the UK that use straw as the materials, the number of straw buildings is continuously increasing, showing huge market potential. In the past 10 years, there have been more than 2,000 projects using straw buildings. According to the data collected from various websites of straw bale building United Kingdom (SBUK) 17 , more than 670 projects are under construction and completed before 2019. More than 470 projects were completed in 2015. Prefabricated straw panels will sequence more than 166,000 metric tons of CO2 over the life cycle of buildings through increased energy efficiency. Straw bale plant-based design projects are becoming more and more popular (fig.3).

Straw bale building 100%

300

470

520

37000

42000

2015-2018

2018-2019

670

100% 99% 99%

67000 20,000

98% 98% 2010-2015

CO2 sequestering （metric tons)

2019--now

Straw building stock

Fig.3- The total number of straw buildings and CO2 sequestration

16 NACO., (©2020). Static Caravan Parks in the United Kingdom. [Viewed 3 November 2020]. Available from: https://www.nacoservices.com/static-caravan-parks 17 SBUK., (©2020). FOUNDER MEMBERS. [Viewed 8 October 2020]. Available from: https://strawbalebuildinguk.com/founder-members

COMPETITORSâ&#x20AC;&#x2122; ANALYSIS Below is a brief description of the top brands within the industry that provides stiff competition for our business: Name of Competitor

Competitor overview

Geographical location

Straw Works

Offers architectural designing services with straw and are the only practice in the UK who design cement-free foundations as standard. Offers consultancy, design, training and Straw bale contract building.

Todmorden (West Yorkshire) and Totnes (Devon), UK

Semmes & Co. Builders, Inc

Constructs unique and creatively styled, environmentally friendly custom homes and remodels since 1978 with the use of rice straw

Central Coast of California

Huff and Puff Construction Ltd

Founded by Phil Christopher, companyâ&#x20AC;&#x2122;s three tasks are Consultancy related to Straw Bale technology, Making Car Tyre Foundations, Plastering with Clay and Lime training courses.

Southern England

Straw Build

UK, Europe

Target demographic Businesses and Individual homeowners and builders Businesses and Individual homeowners and builders Builders, Businesses, homeowners, builders, contractors Builders, Businesses, homeowners, builders, contractors

THE SIMILARITIES/DIFFERENCES BETWEEN STRAW ARCHITECT AND COMPETITORS Name

Similarity

Difference

Straw Works

Both are straw design companies. They are all located in England.

Straw Build

Specialises in straw bale and straw panel building. Both cooperate with Ecococon.

Straw works focus on commercial projects and construction and provides straw bale course training WHILE Straw Architect focuses on residential projects. Straw build projects are construction focused WHILE Straw Architect are design focused.

Semmes & Co. Builders, Inc

There are similar future planning goals, not limited to the design of straw materials, but also want to extend to other green designs, such as Rammed earth.

Semmes & Co. Builders, Inc's market is mainly in the eastern United States. It also provides the installation of Structural Insulated Panels

Competitive Advantage Straw Architect focuses the design on integration of VR technology.

Straw Architect exploring Ecococon panel market on city temporary buildings. Straw Architect not only provides new materials, but also new technical support.

Huff and Puff Construction Ltd

Provide straw consulting services

(SIPs) and passive solar WHILE Straw Architect’s market is mainly in England Huff and Puff Construction Ltd provides consulting services for consulting on issues during the construction process WHILE Straw Architect's consulting services consist of consulting on design drawings and verification of some data.

Huff and Puff Construction Ltd uses a traditional straw bale design. Straw Architect not only provides design solutions for straw bale, but also provides design services for straw panel.

OTHER COMPETITIVE ADVANTAGE •

•

• • •

•

Virtual Experience: Our company will provide customer experience which is very different from other companies. We will not only present a 3D view effect solution, but also provide VR virtual viewing experience, so that customers can visually touch their future home, and make it easier for customer modified the design draft. This is a technological innovation that other straw companies do not have. Free Consultations on Green Buildings: We will share quality information on green building via emails weekly. This will include writings on the use and benefit of using straw for buildings, some new design trends, and some real estate investment information. Technical support solutions during and after construction: We will provide clients with detailed design drawings. If the design drawings do not match the actual situation on site, we will quickly modify the drawings. At the same time, BIM system can be used to record all house data, so that materials can be replaced better, and cost can be saved during subsequent maintenance. Customization and personalized design service: We will communicate based on the questionnaire provided by the clients and combine situation of the site to design the house instead of applying the design template. On-site design Live video of the whole process: We provide on-site design support services and can perform video recording according to the on-site project progress. Green and environmentally friendly product line: The future development of our company is to develop straw buildings into a green and environmentally friendly trend in line with the characteristics of British architecture, and join the research team to produce green products for building like green blocks, green roofing sheets etc. Strategic Partnership: Straw Architect will cooperate, partner and associate with reputable organizations such as AECOM, SBUK (Straw Building United Kingdom), ASBN (Austrian Strawbale Network), CASBA (California Straw Building Association, housebuilder, The School of Natural Building UK, and other reputable companies on straw construction. Competitive pricing system: As a straw company dedicated to local materials, we will cooperate with EcoCocon Straw Panels, make our products more competitive in the market and available at the most affordable price possible.

MARKETING PLAN MARKETING OBJECTIVES • To achieve impressive yearly increase in revenue. • To obtain strategic business partnerships. • Create customer awareness and brand popularity. • To achieve a monthly increase in the number of lead generation • To achieve increase in monthly sales volume. OVERALL MARKETING STRATEGY Branding: Branding is a major strategy for gaining recognition in the competitive Our aim is to be renowned for premium drawings and the use of innovative technology to provide technical support for straw structure solutions. Actions: • We will customize and design a straw-like mascot as the spokesperson of the company, often greet people in the city centre and event locations and promote the company's products and services. • Place a simple, easy-to-understand, colourful animation on the business website and social media. • Design atheistic and attractive brand logo and name for Straw Architects.

Flyer and business cards: Sharing flyers is a suitable means to reach people within our business location. Actions: • We will share our flyers and business cards within the community ，near the housing agency, next to the health food store, the gym, the city centre, to raise people's awareness of environmental protection

Community Services Actions: • Organize weekend community activities on Eventbrite, such as using Lego and plasticine to let children to participate in the construction of the house. • provide pens to allow the clients to participate in the design of the house. • Provide building models so that more people can see what the green buildings look like. • Provide VR glasses to allow more people to experience green buildings.

Strategic Networking and partnership: Actions: • We will cooperate, and associate with reputable organizations such as AECOM, SBUK (Straw Building United Kingdom), ASBN (Austrian Strawbale Network), CASBA (California Straw Building Association, housebuilder, the School of Natural Building UK, and other reputable companies on straw construction. We will prioritize reaching out directly to these businesses to intimate them of our services in a bid to create a lasting partnership which will create a recuring revenue stream for the business.

Website Development: We will create a well-optimized website to ensure online presence and enable prospective clients to find us by online searches. Actions: • Create appealing, modern, informative, mobile-friendly, light, highly responsive, and easy to navigate website interfaces. • Fill website with strategic call-to-actions. • Post contents often on the website – as much as three times a week. • Enable the site as an online office, creating an interface for clients to reach us through calls or emails which will be attended to as soon as possible. • The website will feature a blog section that will host relevant industry contents for better site visibility.

Email Marketing: This strategy has proven to be highly effective in selling consumer products. Actions: • Retrieve emails of visitors on the website through well-crafted landing pages. • Nurture with creative, educational, and promotional newsletters sent periodically. • Use remarketing to target banners towards customers.

Direct and offline marketing: These will help the business connect with relevant stakeholders such as suppliers and clients offline through fliers, stickers, relevant associations within the community and business cards. Actions: • Register company with local relevant associations such as The Royal Institute of British Architects (RIBA) and others in Manchester, UK. • Engage in cold calls to help potential clients see the need for straw buildings and why we are the best option.

Referral and word-of-mouth promotion: We will encourage our clients to refer us and bring in customers. We will give incentives appropriately to clients who generate customer traffic. Actions: • Ensure our clients receive a service delivery that is worth far above the amount paid. • What we provide to consumers is not only the design service on the drawings, but also a continuous tracking service and a guide for healthy living. • Encourage satisfied clients to refer us to other potential clients. For example, we hope customers can give more good reviews on Google map and leave our design works. • Offer clients the possibility of getting a discount in future transactions when referral is done.

Search Engine Optimization: SEO will serve a major role in garnering online traffic for the business. Actions: • Use keywords extensively on the pages of the website — homepage, About Us page, product description pages, etc. • Generate relevant keywords using online tools. • Monitor website traffic to determine efficiency of SEO activities.

Social Media: We will engage this marketing strategy to gain an extensive online presence. Actions: • Create Instagram, Facebook, Twitter, YouTube and Pinterest accounts in the business name – Straw Architects. • Create relevant contents filled with keywords – enthralling stories, articles, high-resolution photos, and videos about all of our product forms. • Use hashtags extensively. • Link all social media platforms with the company’s website. • Engage social media influencers to promote products and write reviews.

Billboards: Actions: • We will set up billboards and banners at caravan clubs and camping sites to enlighten homeowners visiting the club on the benefits green buildings. • The construction fence of urban temporary buildings can be posted on straw panels.

SWOT AND RISK ANALYSIS SWOT ANALYSIS Strengths • Vast experience in sustainable architecture. • Personalized virtual viewing experience for clients. • Extensive travel and research within outside of the UK, making our business update. • The use of affordable and available materials (Straw). • Low cost and effective innovative technology. • Technical support solutions during and after construction. Opportunities • Growing and available market • Legalization and increased awareness in UK. • Increase user demand due to British government's subsidy program for the installation of energy-saving facilities. • Unlimited possibilities for new and better architectural concepts through R&D. • Emerging innovative technologies and sustainable building materials.

Weaknesses • Not many people know and accept the straw material. • Bad weather conditions may affect the storage of straw. • The current technology does not yet have the ability to build tall Straw buildings, so the design of straw buildings has limitations.

Threats • Presence of more prominent and popular brands providing stiff competition. • Fluctuation in building material prices. • Entrants of new businesses into the market. • Not all urban areas are suitable for straw buildings. • BREEM certification requires more of theoretical modelling rather than performance.

BUSINESS RISKS AND MITIGATING STRATEGIES Risk Unfamiliarity of product: straw materials for buildings

Humid climate

Impact Many people are unwilling to accept straw construction because they are unfamiliar with the construction method and do not know the new straw technology. They think this is the old construction method, worry about fire requirements, and worry that the quality of the house is not as high as traditional concrete houses. Worry that innovative materials and construction methods cannot get a mortgage.

The storage of straw bales has restrictions on humidity. The UK climate is humid, and the loose and

Likelihood High

High

Mitigating Strategy • Carry out commercial promotion, expand market research, and explain straw construction knowledge in urban areas. • Make models of straw buildings to let customers feel our design services and products. • Make informative animation videos. Eliminate misunderstanding of straw buildings. • Houses where straw boards are used as construction materials can get mortgages. • Help clients contacting local straw bales to control the quality of construction.

•

humid straw bales affect the construction quality.

Operational inconsistency

The inability to fulfil and meet with clients demands will result in the loss of business and create a bad reputation for the company.

Medium

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• Vulnerability to large companies in the industry.

Popular and well-established architecture companies might provide stiff competition in the market

Medium

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Suppliers’ failure

Our suppliers are a major part of our operations. If they fail to supply necessary materials at speculated time, there will be delay in our service delivery and clients dissatisfied.

Low

•

In the humid climatic environment where straw bales cannot be used, we provide customers with straw penal design solutions We will ensure clients are strictly followed up with details about the job. We will provide a virtual experience for clients to enable easy modification of design samples. We will ensure there is an open communication between our clients and us. We will have a focused marketing plan which will enable us to secure a sustainable position in the market. We will hold a significant and profitable market share through our strategic operational model. We will develop a comprehensive supplier’s management policy that integrates the suppliers into our operations based on certain terms and conditions of operations.

FINANCIAL HIGLIGHTS Considering that the company is at its early stage, the investment risk needs to be at its barest minimum, and this requires the assistance of an adversary team and a marketing consultant. Therefore, it takes a lot of time to prepare. Based on the sales forecast, a relatively conservative financial plan was made below: • It is estimated that 8 customers will purchase plan review services in the first year and 10 customers in the second year. • Every month, it is assumed that we will have at least one customer request for BIM model or data analysis (the hours of package A are calculated; thus, one computer model consumes- 20 hours). • It is also assumed that in Year 1 we complete two straw house designs for clients, and we believe that clients will also purchase additional services (the design price of package B is based •

• •

on 10% of the average total cost of a house of £300,000, which is 30,000 per house).

Helping the customers of Ecococon (the straw panel supplier) to calculate the amount of usage of straw panel, will also get us additional commission. This is based on the assumption that we get at least one customer each month and an increase in sales in year two. In the sixth month the company will have additional part-time jobs to serve as a new revenue stream. It is expected that in the second year, we would complete three quality residential buildings and one non-residential project.

Pre-Start Straw Architects would be expending the following cost prior to the commencement of business activities, approximately £6,000 for the first year and £12,000 for the second year. The rent cost is determined according to the different types of Wework workspace and increase in the number of employees. License- £3000, Furniture & fittings- £1000, Website development- £600, Stationery- £800, Business Consultant- £2000. As a start-up the need for a business consultant cannot be overemphasized to discuss the company's future direction and seek cooperation opportunities with suppliers. Software License- £700 ， Design & measurement tools/equipment- £1000, Marketing- £2000, the marketing expenses is required to invite market consultants to develop market plans and formulate product advertisements strategies which would in turn increase our customer base. Professional services (outsourced)£8000. The expenses listed above will be funded by personal funds raised by the business owner. Year 1 The total cost of operation for the first year is £128,680. This cost is further broken down to the following costs: Salaries- £84,180, Professional Services(outsourced)- £20,000, Marketing£4,000, Insurance- £1,200, Utilities- £600, Miscellaneous- £3,600. The total income for year 1 amounts to - £127,000. The Income stems from the following’s streams; Consulting service (plan review)- £2,800, Consulting service (hourly review)- £29,700 Design (Basic-Residential) - £60,000, Design (additional)- £21,000, Straw Panel Supply Commission- £4,500, Parttime job income-£9,000. The expenditure in the first year minimally outweighs the income. Although it has not yet achieved profitability, the company's operating conditions are on track. Year 2 The total cost of operation for the second year is £144,240. This cost includes Salaries£113,040, Professional services (outsourced)- £12,000, Marketing- £1,800, Insurance- £1,200, Utilities- £600, Miscellaneous- £3,600. The total income for year 2 amounts to – £217,000. The Income stems from the following’s streams; Consulting service (plan review)- £3,500, 21

Consulting service (hourly review)- £33,300, Design (Basic-Residential)- £90,000, Design service (Basic-Non-Residential)-£40,000, Design (additional）- £48,000, Straw Panel Supply Commission- £3,600. The profit for the year is £72,480, tax of 20% will be charged on this profit, leaving us with a net profit of £57,984. The company's slight increase in expenditure in the second year over the first year was mainly due to the increase in office rentals and the fixed salary costs for four staffs. The total income in the second year increased by 78.54% compared with the first year. The increase in income is majorly hinged on additional projects completed (residential and non-residential inclusive). RESOURCES AND INVESTMENT Straw Architect will requires finance for the following expenditure;

Rent License Furniture & fittings Website Development Stationery Business Consultant Software License Design & Measurement tools Salaries Marketing Professional services (outsourced)

£6,000 £3,000 £1,000 £600 £800 £2,000 £700 £1,000 £1,000 £2,000 £8,000

Rent 23%

others 35%

License 11% Professional services

31%

Rent

License

Professional services

others

Below are the expenses per annum that would also be financed by funds raised for the smooth running of the business. Salaries Marketing Professional services (outsourced) Utilities Insurance Miscellaneous Website maintenance Rent (year2) The total finance needed for the running of business is approximately £26,100. Straw Architects intends to finance the business by personal funds.

APPENDIX