All Time Offices Inc. Business Plan

All Time Offices Inc.

Business Plan To be performed in:

Montreal, QC, Canada

By:

Ali Mokhtari

Table of Contents • Executive Summary .................................................................................................................. 3

• Description of Business ............................................................................................................. 4

• Business Model Description ............................................................................................... 4 • Objectives ........................................................................................................................... 5 • Mission Statement ............................................................................................................. 5 • Keys to Success................................................................................................................... 6 • Company Ownership/Legal Entity ..................................................................................... 6 1. Location .............................................................................................................................. 7 2. Interior ............................................................................................................................... 7 3. Hours of Operation ............................................................................................................. 9

4. Start-up expenses ...................................................................................................................... 9

5. Management and Staffing ...................................................................................................... 10

6. Staffing .............................................................................................................................. 10 One Full-time Office Manager: ............................................................................................ 10 One Full-Time administrative assistant: ............................................................................... 11

1. Management .................................................................................................................... 12 2. Products and Services .............................................................................................................. 12

3. Pricing and fees ................................................................................................................. 14 • Market Research ..................................................................................................................... 15

1. Market trend and Potential ............................................................................................. 18 • Marketing Strategies ........................................................................................................ 19 • Market segmentation ...................................................................................................... 18

1. Competitors ............................................................................................................................. 20

• SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis ......................................... 20

• Strategy and Implementation Summary ................................................................................ 21

• Risk management ................................................................................................................... 21

• Financial Analysis .................................................................................................................... 21

• Cost Analysis .................................................................................................................... 21 • Break-Even Point Analysis ................................................................................................ 21 1. Return on Investment (ROI) .............................................................................................. 21

Appendix 1-- Service Package…………………………………………………………………………………………………..23

Appendix 2 – Financial Documents ............................................................................................... 25

Appendix 3 -- Potential clients' expression of interest forms (PDF file)………………..…………………..30

References: ................................................................................................................................... 30

Executive Summary

The purpose of this business plan is to develop a blueprint for All-time offices Inc. vision and

strategy and then use this plan as a guide to design and grow the business.

The primary objective of All Time Offices Inc. is to establish as a prosperous and innovative

player in Montreal’s short term and long term office space renting and also Co-working space

industry. With its smartphone application and an easy-to-use website that offer the possibility

of booking working spaces in real time along with highly diversified packages of renting options,

All Time Offices will be a key shared office space rental business in Montreal downtown area.

This will be the starting point of ATO and it will be expanded to the other parts of Montreal,

other Canadian cities such as Toronto, Vancouver and eventually international branches in Los

Angeles, Seattle, New York, etc.

Being the second leading business center in Canada and one of the most important business

hubs in North America, Montreal is well situated to start small and medium size firms and start-

ups. In recent years, the growing number of technology-based start-ups which are run by one

or a few persons has changed the concept and needs for the workplaces. Committing to office

space can be a huge outlay for this type of fast growing and budget conscious businesses which

can be run even from home. The flexibility of renting fully-furnished office places with the

required space and length of time can improve the cost effectiveness of launching these kinds

of businesses.

We have already found and are going to buy a commercial condo commercial at 4055 St.

Catherine West, Westmount, Quebec (adjacent to Alexis Nihon Complex) for starting the first

business center.

we will be focused on building a strong connection with all potential clients by different

marketing methods. Even though there are many shared office space companies in Montreal,

ATO does have a competitive advantage of unique business model in the fast-growing need for

this kind of office spaces and an expert team of management with 15 years of experience

managing different small and medium businesses in two separate countries, excellent

communication skills and using cutting-edge technologies will assist ATO in gaining a significant

market share in this industry.

Based on our expert team's research and experience in this field I anticipate first-year sales

income to be around $ 480,000. The location will cost $665,000 and

To improve the property, decorate it, buying furniture, creating website and application and

etc., almost $835,000 is needed.

Description of Business

With the shift in the global economy and North America cultural values, the idea of what it

means to succeed has changed dramatically. Far from the previous idea of working the same 9-

to-5 job until you retire, modern workers are looking for a way to use their creative abilities to

build careers they truly love. Work and happiness are no longer mutually exclusive, and the

new generation of workers thrive off of interaction with other creative builders. The office-

cubicle standard has fallen by the wayside, and Co-working space concepts swiftly stepped in to

fill the void.

A company which is in the business of renting shared office and Co-working spaces purchases

real estate space – sometimes just a floor or two in an office building – and transforms it into

smaller offices and common areas. It rents desks to individuals or groups who want the benefits

of a fully stocked office without the traditional office culture, and private offices to the business

who need more private and custom made places. Members range from independent

freelancers who need an occasional place with unlimited Wi-Fi to focus on a deadline to small

businesses with multiple employees who need a consistent place to work, have meetings and

build their budding empires.

The rising popularity of the sharing culture that created companies such as Uber and Airbnb is

undoubtedly a significant component of Co-working space success. Instead of working from

living rooms or coffee shops, working in a trendy environment with like-minded entrepreneurs

and potential of meeting new people and networking will lead to a greater rate of success.

Business Model Description

There are some different types of business model for a firm working in the field of shared space

office renting, but with the new trend in the way new generation work, these different types

are converging rapidly. The office spaces range from private office, furnished or unfurnished,

which accommodate one to several employees, shared Co-working spaces with a dedicated or

not dedicated desk, to just having a virtual office with permission to use facility address for the

business and profiting from some other services such as using meeting rooms or phone

numbers. Entrepreneurs choose the type of office they want and pay only for what they need.

This will save them from the hassle of committing to a long-term contract and buying all the

necessary furniture and equipment for that office.

Objectives

The objectives of All Time Offices Inc. are:

To increase the number of clients by 20% per year.

Achieving a minimum of 95% customer satisfaction rate to establish long-term relationships

with our clients.

Increasing the revenue by keeping the cost constant.

Mission Statement

All Time Offices is a venue that provides a unique facility with an innovative atmosphere to

prosper small and medium businesses. The mission is not only to provide great office and co-

working spaces, but also have efficient and friendly service. Our environment is not only

welcoming and sophisticated; it is unique in design.

We concentrate on customer satisfaction and quality office supplies. We want the All Time

Offices Inc. to be a place people can enjoy a warm working space and meet new like-minded

people and have a good networking possibility.

Keys to Success

All Time Offices’ keys to long-term survivability and profitability are as follows:

Differentiate our services so that our clients realize that we can better serve their needs

than a competitor.

Keeping close contact with clients and establishing a well-functioning long-term

relationship with them to generate repeat business and a top-notch reputation.

Establish a comprehensive service experience for our client that includes seminars,

presentations and networking possibilities for them.

Company Ownership/Legal Entity

All Time Offices, Inc. is registered under the law and regulations of Canada, Quebec and will

fundraise through selling its shares to the potential stockholders.

From 100 shares of ATO it is planned to sale 80 shares to the eligible investors, each share for

$17,000 with the minimum purchase of 10 shares per person, the remained 20 will be bought

by the founder with the price of 10, in compensation of all administrative activities, business

startups as well as one year management, supervision and handling.

with growing the business and establishment of other branches, investors should increase their

investment or agree with decrease part of their shares.

Location

ATO will start the business in downtown Montreal, near its financial district and most important

businesses of the town.

Interior

The facility has around 5500 square feet of area and includes the following spaces:

Private offices — 12 small offices (for one person), 4 medium offices (for two persons)

and one large office (for three persons)

Co-Working Spaces — 6 Share able (Hot Desks) and 5 dedicated desks

One meeting room and One conference room

Reception and lounge

Printing and scanning rooms

Private phone booths

Coffee shop

6 x Hot Desk 125 sqf 5 x Dedicated Desk 223 sqf 12 x Small Office 1266 sqf 4 x Medium Office 679 sqf 1 x Large Office 249 sqf

Total Office Area 2542 sqf

1 x Coffeeshop 407 sqf

Total Coffeeshop Area 390 sqf

1 x Meeting Room 155 sqf 1 x Conference Room 240 sqf

Total Meeting Area 395 sqf

Reception and Lounge 428 sqf

Total Reception Area 428 sqf

3 x Phone Booth 44 sqf Copy / Print Station 43 sqf

Electrical Cabinet 18 sqf Server Room 28 sqf Janitor Room 18 sqf Toilets 175 sqf Lockers 60 sqf Coffee and Microwaves 66 sqf

Total Service Area 452 f

Hours of Operation

The regular operating hours for All Time Offices Inc. will be from 8 a.m. to 6 p.m., from Monday

to Friday. However, it will be possible to book all the office areas out of this regular hours by

using the website or the application. After hour access would be available for all tenants, upon

request.

Start-up expenses

The real state (office) purchase will be the first expense of the company. The next item is the

renovation and decoration costs for the transformation of the office area. The cost of creating

and maintaining company’s website and the application will be another significant investment

need.

Here is a list of the initial estimated expenses/investments for starting this business in

Montreal, QC.

Start-up Costs Items Cost

Buying office area property $665,000

Renovation and decoration expenses $510,000

Website and Application $100,000

Office supply and furniture $100,000

Computer and Printers $70,000

Marketing $15,000

Working Capital $40,000

Start-up costs $1,500,000

Management and Staffing Management; Ali Mokhtari's philosophy is based on responsibility and mutual respect. His proficiency in

managing companies which includes starting up business, purchases, hiring & firing,

cooperation with all kind of different clients would be an intangible asset to run the business.

He has a valuable experience as a manager of an immigration consulting company and some

other small businesses in different fields. He also will benefit from his professional management

team such as accountants, marketing managers and etc. for a more scientific fruitful

management to make efficient communication with clients and maintain high customers’

satisfaction level.

He will be the president of All Time Offices with the below mentioned as part of his

responsibilities, but not all:

- hire the necessary staff to make the company an efficient and prosperous firm in the field of

renting shared office spaces in Montreal, Quebec.

-Designs and implements office policies by establishing standards and procedures and

supervising their implementation; measuring results against standards; making necessary

adjustments.

- Achieves financial objectives by preparing an annual budget; scheduling expenditures;

analyzing variances; initiating corrective actions

Staffing

Full-time administrative clerk;

He/She is responsible for facilitating the efficient functioning of the office through a range of administrative, clerical, financial and managerial tasks. Responsibilities; - Maintains office services by organizing office operations and procedures; controlling correspondence; designing filing systems; assigning and monitoring the use of the facility by members. - Provides historical reference by defining procedures for retention, protection, retrieval, transfer, and disposal of records. - Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies - Delivering continuous required reports to the president/ manager

- Keeps management informed by reviewing and analyzing special reports; summarizing information; identifying trends - The Administrative clerk will also provide administrative support including handling mail, ordering office supplies and coffee, as well as greeting clients, answering telephone calls and organizing meeting with people off-site and on-site.

Qualifications: - College education in administrations or equivalent; - Minimum 3 years of relevant experience - Strong communication skills, and a love of working with people as well as passion for helping clients - Able to prioritize while handling multiple tasks; - Demonstrate ability to develop long-term relationships with clients - Strong time management and follow-through skills Annual Salary $40,000

Job Titmanager le QTY Annual Salary CAD$

Manager and supervisor

1

one years for free $50,000 from the second year

Administrative Clerk 1 $40,000

TOTAL 2 $40,000/$90,000

Products and Services

The primary revenue center for the business is acquiring a shared office building properties

with the intent to divide it into several office spaces and Co-working areas and rent them to the

entrepreneurial community. The business will generate profits from the ongoing rental income

paid to All Time Offices by long-term clients, short term office and desk rental, virtual office,

and other services.

All the clients must become a member of the facility through website or smartphone

application by providing their required information and paying a monthly membership.

The following working spaces and services will be offered in All Time Offices Inc.

Office spaces

An office space can accommodate between 1 to 3 persons. They can be non-furnished for

dedicated and contract-based rental. With an extra charge and for all short-term office rentals,

we have fully furnished offices. The offices are in a private, lockable spaces and the furnished

ones have desks, chairs and filing cabinets.

Our private office spaces are available in flexible manners:

Rent an office with an annual contract. This option comes with a discounted price and

some other advantages.

Take a space you need and expand or contract as business change (the possibility of

making change in term of contract)

Cost-effective office space with the flexibility to use as little or often as needed (certain

days per month).

Get on-demand access to work-ready office space with no commitment - available by

the hour using All Time Offices App.

Co-working spaces Co-working options offer a sociable way of working in a communal workspace, with flexible

possibility that people pay only for what they use.

Our Co-working spaces are accessible in different ways:

Dedicated Co-working space consists of a personal desk and storage facilities in a

professional, shared environment.

Open Co-working space that provides clients with desk space in a professional, shared

environment on a first come first served basis.

Virtual office option In this option, customers can create the right image for their businesses with a prestigious

address and a range of supporting services such as mail handling services, fax services and even

a phone service with the call answered in their company name and a 24/7 access to their

voicemail.

ATO is planning to establish a virtual assistant service to complete the package of services in the

close future too.

All the fully furnished private offices and Co-working spaces include an equipped workspace,

simple turn up, plug in and get straight down to business along with modern, ergonomic office

furniture. Tenants also have the possibility of getting unfurnished private offices. There will be a

coffee shop available with an extra access for tenants. In addition, there will be a free coffee

stand in shared space. All our members can use our community meeting rooms by the hour.

There will be some arrangement for events, seminars and presentations to give the possibility

of networking to all the members.

Pricing and fees

Here is the list of all fees and prices:

Service Cost

Basic Membership Enables client to use the app and reserve desk/office/meeting rooms

50$/Month

Virtual Office Basic membership + Client will use the address, fax and etc.

Starting from199$/Month

Hot Desk (Open space desk) Client has the right to use specific desk for needed time upon reservation online subject to availability of desks

Starting from 349$/Month

Dedicated Desk Client benefit from a dedicated desk and can use it anytime


Private Office Client benefits from a closed office


Meeting Room Available to members according to the package and upon online reservation

15$/Hour

Conference Room Available to members according to the package and upon online reservation

25$/Hour

Dedicated Phone Number A phone number will be assigned to the client

55$/Month

VIP Secretary Service Starting from 500$/Month

Print Service Pay Per Usage

Coffee shop Space will be rented to a professional Coffee Shop operator

1500$/Month

By paying a membership fee, there is also the possibility of renting private offices, Co-

working desks and meeting rooms on an hourly basis.

The monthly fees for private offices and Co-working desks include membership and

some credit for using meeting rooms.

The rental fees for the offices which accommodate more than one person will be based

on 76$ per square foot (unfurnished).

All the available packages are listed in Appendix 1.

Market Research

Office sharing is a concept that allows companies who own or manage an office, which has

redundant office space to share or rent the workstations or self-contained units to smaller

companies looking for flexible workspace. This creates revenue for the company that runs the

office and provides a cheap, flexible alternative for companies looking for an office outside of

their home. The main benefit of sharing an office is that it provides a more dynamic

environment for both companies involved and access to new markets. This idea became the

concept of an important business that gets a large office area and transforms it to small offices

and some Co-working spaces and rent them to the businesses to help them to avoid lots of

their initial investment costs and overheads.

Ten years ago, co-working spaces were a new concept, providing shared desks for freelancers

and entrepreneurs as single “mom and pop” shops. Today, the one-off spaces have been mostly

replaced with chain companies, providing real estate developers a new way to lease traditional

office space and make connections with potential tenants. Feeding off the tech start-up boom

and the increased mobility it allowed workers, co-working spaces took off — attracting lonely

home-office dwellers out of their pajamas and sparing coffee shop-based freelancers an

obligatory purchase of a cup of coffee in exchange for an all-day workstation.

Globalization and technological change have transformed work relations over recent decades.

One conspicuous feature of these changes is the rising prominence of ‘non-standard work’ in

developed economies. The non-standard term work covers all work not done full time or not

performed at the place of an employer’s choosing under their direction. It is a broad and

heterogeneous class of labor relations that spans precarious contract workers and affluent

entrepreneurs. The fastest growing category of non-standard work across OECD countries over

recent years is in self-employment without employees, or ‘solo self-employed’, particularly in

high skilled, rapidly growing, creative areas of the economy.

Co-Working spaces – a “Plug and Play” type of personal office

Co-working is a style of work that involves a shared working environment, often an office, and

independent activity. Unlike in a typical office environment, those co-workings are usually not

employed by the same organization. Typically, it is attractive to work-at-home professionals,

independent contractors, or people who travel frequently and end up working in relative

isolation. Co-Working is also the social gathering of a group of individuals who are still working

independently, but who share values, and who are interested in the synergy that can happen

from working with people who appreciate working in the same place alongside each other.

A selling point of most co-working spaces is networking. Future “members” are attracted to the

diverse pool of businesses and possible mutually beneficial connections to be made in a shared

community.

Shared offices have become a billion-dollar industry in recent years, with offices even opening

in exotic European and Middle-Eastern locations. However, much of the growth has been

throughout the US and Canada, where start-ups are more prevalent. Technology-based Start-

ups hardly can afford to rent their own office, but they usually still require the necessities of an

office space. Shared offices allow them to use the services they need while staying within their

budget. These services can include access to meeting and conference rooms, technology such

as photocopiers and high-speed Internet, and amenities like free coffee. However,

opportunities for networking offer one of the biggest perks.

Even established companies are beginning to use shared workspaces for their employees to

test out different markets and find new talent pools. They have appeal for a broad range of

workers, so they will only continue to grow in popularity in the years ahead.

Co-working offers a solution to the problem of isolation that many freelancers experience while

working at home, while at the same time letting them escape the distractions of home.

With well over 2,000 co-working spaces now operational worldwide and new spaces opening

their doors almost every day, it is imperative that owners and community managers set high

standards. This is important not only for the fulfillment of space's mission and the delivery of a

positive co-working experience but also the longevity of the business.

This category of work includes independent contractors selling professional services

(‘freelancers’) and early stage entrepreneurs developing new products. A commonly cited

explanation for the growth in self-employed solo work is the declining start-up and transaction

costs incurred through managing micro enterprises. Many of the reasons for these declining

costs, such as mobile communication technologies, Internet penetration and the digitization of

work, have also changed the relationship between knowledge work activities and fixed office

locations. Today most independent knowledge workers that own a laptop, smartphone and can

access the internet have all the tools necessary to undertake work from their home, or other

low-cost sites like cafes and public libraries. Rational actors would be expected to reduce any

unnecessary costs of doing business, and avoiding paying rent for office space would seem a

prime candidate. And yet empirically we observe many of these workers paying to regularly

access co-working spaces. Since their inception a decade ago, co-working spaces have been

growing extremely rapidly in major cities around the world. The fact that the primary customers

of co-working spaces are the mobile, independent knowledge workers we have described so far

presents a puzzle: why pay for access to office facilities if there is no need?

The conventional answer is that working from home is suboptimal for several reasons,

principally because social isolation can cause psychological strain that, amongst other things,

reduces productivity. Paying for co-working services is discussed in the literature as a remedy

for this ailment by providing routine access to social relationships in the form of a “like-minded

Community”.

Despite working in different fields, the independent knowledge workers that frequent co-

working spaces do face shared challenges, and some have common interests that can foster

this sense of “like-mindedness”.

It has also been suggested that “social learning” is a useful overarching conceptual model for

understanding the emergence of co-working social practices. Community activities such as

shared lunches and themed social clubs that take place within co-working spaces are rendered

legible as enabling platforms that support the cultivation of trust between coworkers and the

discovery and exchange of information such trust affords. This confidence is essential in an

entrepreneurial context where ideas are openly discussed as “proto-enterprises”, and enables

early forms of cooperation in the absence of formally detailed contractual arrangements.

Market trend and Potential

According to deskmag.com from Global Co-working Survey, last year shared office and co-

working spaces reported an average of 76 members, almost 50% more than just two years ago.

62% of all Co-working owners this year, reported wanting to expand their spaces, showing a

slight increase from the 59% as reported by the 2014 survey results. Almost identical with

previous study results, one in three operators (36% in 2016 vs. 35% in 2014) said planning at

least one additional location.

Not surprisingly, the profitability of a co-working space offers owners a greater opportunity (or

willingness) to move forward with expansion plans. In 2014 only 66% of profitable areas

planned to expand, compared to 78% in 2016. For those without profit or (so far) still

unprofitable a little more than one in two are planning to expand. Unsurprisingly, rising growth

intentions of co-working spaces are also related to the number of members. It makes sense

that the more members there are, the likeliness of increased profitability allows for more

revenue to be reinvested in the business. For spaces that have 50 or more members, the

likeliness of expansion is 25% greater than those who have 24 members or less. The largest

amount of potential to expand also appears to be for spaces which are operating 13-36 months

(69%) compared to 52% for areas less than a year in business and 63% for those spaces 37

months and older.

In the time where there are more and more spaces available, the loyalty of the members is an

important subject. As reported by members, four out of five of them plan to stay where they

are for the next year. Two-thirds of members haven’t even considered leaving, a slight increase

compared to the last survey. New data shows an increase in the number of members who work

at multiple spaces (15% of 2016 respondents vs. 9% of respondents in 2013), a response most

likely is linked to an overall increase of members who travel or identify themselves as digital

nomads. Another response tied to a possible increase in travel or relocation of members is that

now one out of five members no longer work from their first space.

While the number of co-working spaces open continues to grow, there is a general feeling that

it has not yet outpaced demand. The surveyed operators and their employees affirm this fact

with 56% of respondents saying that there is currently a good number of co-working spaces

existing in their city in relation to overall demand. Those who believe there are too few

decreased (27% in 2016 vs. 36% in 2014) which correlates to the increase in the amount who

think there are too many (14% in 2016 vs. 8% in 2014). However, the share of operators who

report too few spaces is still much higher than of the ones who already see too many spaces

operating compared to the demand.

ATO has already received numerous expression of interest to rent office spaces at this location

from those who are working in the area. You can find enclosed 18 letter of expression forms

duly signed by serious potential clients.

Marketing Strategies

All Time Offices primary marketing strategy will be introducing and promoting its web site

(www.AllTimeOffices.com) and its smartphone application A.T.O. which can be easily

downloaded from Apple App store and Google play. The website and the App must have a

fantastic design and be user-friendly enough to attract potential clients by themselves.

All the other online advertising facilities such as popular websites (Facebook, Google….) can be

used to draw the attention of young, tech-savvy professionals looking for a modern and

comfortable place to start their business.

My criteria for my marketing campaign also follow these rules:

All advertising must emphasize our differentiation point rather than price. We must sell the company, not the product. We must improve and increase our contacts with our clients and build a partnership business.

Market segmentation

The market for office and co-working spaces for All Time Offices Inc. can be broken down into

three segments:

Young Professionals

Young professional such as lawyers and accountants, in the early stage of their career and when

starting their own business, they need to test the market without bearing a significant amount

of investment and lots of commitments. The flexibility of renting a shared office space without

involvement help them to launch their business more comfortably. Besides that, by renting a

shared office, they somehow outsource some tedious office managing tasks and in this way,

they have more time and energy to invest in building their own business. Interaction with other

professionals and networking opportunities are another advantage of this kind of work

environment. They will also have the possibility to meet with their clients in our meeting rooms.

Start-ups

These start-ups rarely have the in-house expertise to solve office space or workflow

management problems. As a general rule, there is a tremendous amount of wasted effort and

space in start-ups. The focus is always on getting a product or service out to customers with

http://www.alltimeoffices.com/

very little thought about how the office organization is working against them. The numbers of

start-ups increase each year around the world and especially in the business and technology-

oriented cities such as Montreal. All Time Offices Inc. believes that this is an underserved

segment and with its successes and connections, All Time Offices would become an invaluable

service to these target clients. As these companies move from the start-up phase to the growth

phase, All Time Offices will provide them with a solution for their need at that time and will also

receive this repeat business.

Small rapidly growing companies.

These companies have already reached some margin of success and are planning to expand

their operations, yet this doesn't mean that they are efficient. The success of their product or

service may be hiding problems in the process that will emerge as greater pressure is placed on

company performance. Each stage of growth in a company, present challenges that can hurt its

performance and success. All time Offices can provide these companies a focused approach

that is responsive to unique client demands, assisting them in achieving their future sales goals.

Competitors

Several companies are renting shared office spaces and Co-working areas in Montreal. Some of

them, such as Regus, have offices in different locations in the city and other North American

cities. Here is a list of some of the other players in Montreal.

WeWork Montreal https://www.wework.com/ Regus Montreal http://b.regus.ca/ Nexus workspace http://www.nexusworkspace.ca/ Intelligent Office https://www.intelligentoffice.com/en-ca Execu Space http://www.execuspace.com/

SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis

The SWOT analysis provides us an opportunity to examine internal strengths and weaknesses my business must address. It also allows us to explore opportunities presented to my company as well as potential threats. Strengths

Excellent quality of services based on knowledge, and technology

https://www.wework.com/

http://b.regus.ca/

http://www.nexusworkspace.ca/

https://www.intelligentoffice.com/en-ca

http://www.execuspace.com/

The property is well located near the business district of the city

Having enough financial sources to run and manage various needs of the company Sound management skills which result in a well-run business

Weakness Being a new player in the market Competing with large and well-financed companies

Opportunities

Fast growing trend in start-up business based on new technologies and on-line services Change in the traditional model of 9 to 5 working in a permanent office High demand for this kind of offices in some other cities and the good potential of expanding the branches in the near future.

Threats

Hitting of another financial crisis

A significant slump in the economy that will likely have a correlated effect on start-ups

and new one-person businesses

Strategy and Implementation Summary

I estimate that it will take maximum six months to get the necessary financing, buy the premise

and perform all the necessary preparations and equipping and launch its website and mobile

application. Meanwhile, I will spend some more time on analyzing the market and identify the

best market segment to focus on more intensely. My forecast is that business will be ready to

accommodate its first client by the end of the sixth month of starting the project. At this time, I

will concentrate mainly in advertising and use other modern marketing tools to look for

different possible ways to promote my business.

Risk management

Business risk depends on the marketing strategies and the ability of the company to capture

and increase its part of the market. The barrier of entry into this type of business depends on,

to some degree, to the amount of investment it needs, but mostly on the skills and ability to

build a long-term relationship with potential clients and customers retention rate.

Having bought the property of the business decreases the risk of renewal or renegotiating the

lease of the office building which can lead to the increase in the rate. Approximately one in

eight Co-working spaces will face having to renew and/or renegotiate their lease this year. This

will also eliminate the risk of being obliged to move the location of the office due to the failure

of signing a new lease contract.

Financial Analysis

Cost Analysis

Revenue is based on my assumption about the occupancy rate in the first three years. Expenses

are calculated by comparison with other similar businesses.

Enclosed are a projected three-year ending balance sheet, cash flow statement, monthly cash

flow for year 1, and profit and loss statement, as well as the pro forma balance sheet.

Break-Even Point Analysis

One of the most famous formulas for calculating the breakeven point is based on contribution

margin percentage:

Sales at breakeven point = Total fixed costs / contribution margin %

Shared office rental is a service business. Therefore, there is no cost of sales and other variable

expenses are small. Based on my research, I have assumed contribution margin as 80%, so the

Break-even point would be:

Sales at the breakeven point = $ 376,145/ 80% = $ 470,181

My forecast of profit and loss statement shows that in the first year of business operation, my

business will achieve sales revenue of $480,000 which exceeds the break-even point.

Return on Investment (ROI)

ROI or Return on Investment calculates the percentage gained or

lost on investment. I am going to invest $1,225,000 which consists of an investment of

$225,000 from my own capital and $1,000,000 of debt financing. After three years, it will worth

$ 1,450,455 (based on attached pro forma balance sheet).

Based on above formula, the three-year return of my investment will be 38% and the

accumulative gain at the end of the 3rd year would be $ 306,609, which is a great result.

Appendix 1 – Service Packages

Packages Basic Membership

Virtual Office Hot Desk (Shared Desk)

Dedicated Desk

Dedicated Office Space

Monthly Cost No commitment

50$ $199.00 from 349$ from 499$ from 799$

Included Features

• Access to available add-ons

• Basic secretary service

• Permission to use ATO postal address

• Package delivery

• Fax delivery • Telephone

extension number diverted to customer mobile phone

• Free access to Meeting Room and Conference Room - 2 hours per month (non-transferable)







• Unlimited WiFi access

• Access to coffeeshop and shared spaces

• Unlimited Coffee

• Access to private phone booths
















• Free access to Meeting Room and Conference Room - Up to 10 hours per month (non-transferable)





• After hour access available 24/7 on-demand with online booking

• Discounted annual contract available

• After hour access available 24/7 on-demand with online booking

• Discounted annual contract available

Available Add-ons

• Meeting Room - 15$/hour

• Conference Room - 25$/hour

• Office Space - from 20$/hour

• Hot Desk - from 10$/hour





• Access to printers - Pay per page

• Dedicate business phone number - 50$/month




• Extra Hot Desk - from 10$/hour









• VIP secretary services / Personal assistant - 500$/month

• Meeting Room - from 5$/hour

• Conference Room - from 8$/hour

• Extra Office Space - from 15$/hour




• VIP secretary services / Personal assistant - 500$/month

Appendix 2 – Financial Documents

Following financial documents are provided as appendix:

3 years cash flow projection

Profit and loss statement

3 years balance sheet

12-month cash flow.

CURRENT ASSETS

INITIAL INVENTORY -

CASH 40,000 40,000

FIXED ASSETS

Building (Buying office area property) 665,000

Leasehold Improvement (Renovation and decoration expenses) 510,000

Website and Application 100,000

COMPUTER, PRINTER 70,000

Office supply and furnitures 100,000

MARKETING AND PROMOTION 15,000

1,460,000

TOTAL ASSETS 1,500,000

LIABILITIES

Long term Loan -

Net LIABILITIES -

EQUITY

CONTRIBUTED CAPITAL 1,500,000

NET EQUITY 1,500,000

TOTAL LIABILITIES & EQUITY 1,500,000

Annual Depreciation- (Straight Line Method)

Depreciation (Leasehold Improvement, Website , COMPUTER, PRINTER and Equipment) 20% per annum:54,000

Depreciation (Building and Structure) 4% per annum: 47,000

Total Depreciation 101,000

Ali Mokhtari - All Time OfficePRO FORMA BALANCE SHEET

ASSETS

YEAR % of YEAR % of YEAR % of

ONE Sales TWO Sales THREE Sales

REVENUES

REVENUES 350,000 100.0% 520,000 100.0% 580,000 100.0%

TOTAL REVENUES 350,000 100.0% 520,000 100.0% 580,000 100.0%

GROSS MARGIN 350,000 100.0% 520,000 100.0% 580,000 100.0%

Wages 40,000 11.4% 90,000 17.3% 92,310 15.9%

QPP , QPIP, QHSF and EI Contributions 3,600 1.0% 8,100 1.6% 8,308 1.4%

Supplies 3,500 1.0% 5,200 1.0% 5,800 1.0%

Marketing 35,000 10.0% 15,600 3.0% 10,000 1.7%

Utilities 10,000 2.9% 10,000 1.9% 10,000 1.7%

Repair and Maintenance 4,000 1.1% 4,000 0.8% 4,000 0.7%

Condo fees and Property Tax 12,000 3.4% 12,000 2.3% 12,000 2.1%

Depreciation 101,000 28.9% 101,000 19.4% 101,000 17.4%

Insurance 3,500 1.0% 5,200 1.0% 5,800 1.0%

Legal / Accounting 4,000 1.1% 4,200 0.8% 4,410 0.8%

General & Administrative Expenses 5,500 1.6% 5,775 1.1% 6,064 1.0%

TOTAL EXPENSES 222,100 63.5% 261,075 50.2% 259,692 44.8%

Pre-Tax Income 127,900 36.5% 258,925 49.8% 320,308 55.2%

Taxes 21,743 6.2% 44,017 8.5% 54,452 9.4%

Earnings after Interest and Taxes 106,157 30.3% 214,908 41.3% 265,856 45.8%

Forecast Profit and Loss Statement

OPERATING EXPENSES

PRO FORMA INCOME STATEMENT

Ali Mokhtari - All Time Office

NOTES:

Marketing costs in first year 5% and 2nd and 3rd year would be based on 3% of gross sales.

Supplies = 1% of revenue.

Insurance = 1% of revenue.

Depreciation is based on Capital Cost Allowance (CCA) rates.

Salaries are increased by 2% each year

Loan has aterm of 15 years with 6% interest

Employees Rate Total # FTE Wages Total # FTE Wages Total # FTE Wages

Office Manager 50,000 1 0 1 50,000 1 51,000

Administrative Assistant 40,000 1 40,000 1 40,500 1 41,310

Total Wages* 2 40,000 2.0 90,500 2.0 92,310

Average Weekly Revenue 6,731 10,000 11,154

Annual Revenue $350,000 $520,000 $580,000

YR-THREEYR-ONE YR-TWO

Forecast Ending Balance Sheet

ASSETS

CURRENT ASSETS

CASH 40,000 247,157 563,065 929,921

TOTAL CURRENT ASSETS 40,000 247,157 563,065 929,921

FIXED ASSETS

Building (Buying office area property) 665,000 665,000 665,000 665,000

Leasehold Improvement (Renovation and decoration expenses) 510,000 510,000 510,000 510,000

Website and Application 100,000 100,000 100,000 100,000

COMPUTER, PRINTER 70,000 70,000 70,000 70,000

Office supply and furnitures 100,000 100,000 100,000 100,000

INITIAL MARKETING 15,000 15,000 15,000 15,000

MINUS ACCUMULATED DEPRECIATION (101,000) (202,000) (303,000)

NET FIXED ASSETS 1,460,000 1,359,000 1,258,000 1,157,000

TOTAL ASSETS 1,500,000 1,606,157 1,821,065 2,086,921

CONTRIBUTED CAPITAL 1,500,000 1,500,000 1,500,000 1,500,000

RETAINED EARNINGS - - 106,157 321,065

CURRENT INCOME/LOSS - 106,157 214,908 265,856

NET EQUITY 1,500,000 1,606,157 1,821,065 2,086,921

TOTAL LIABILITIES & EQUITY 1,500,000 1,606,157 1,821,065 2,086,921

YR-ONE YR-THREE

BEGINNING ENDING


ENDING

PRO FORMA BALANCE SHEET

YR-TWOYR-ONE

ENDING

Cash Flow Forecast ENDING ENDING ENDING

YR-ONE YR-TWO YR-THREE

Net Profit After Interest and Tax 106,157 214,908 265,856

ADD: Depreciation 101,000 101,000 101,000

GROSS CASH FLOW 207,157 315,908 366,856

WORKING CAPITAL REQUIRED

Debtors 0 0 0

Creditors 0 0 0

Inventory (to match sales growth) 0

OPERATING CASH FLOW (A) 207,157 315,908 366,856

Investment Capital 1,500,000 0 0

Drawings 0 0 0

Loan Principal Payment 0 0 0

FINANCING ACTIVITIES (B) 1,500,000 0 0

Fixed Assets 0 0

Other Assets 0 0

INVESTMENT ACTIVITIES (C) (1,500,000) 0 0

NET CASH FLOW (A+B+C) 207,157 315,908 366,856

OPENING CASH BALANCE 40,000 247,157 563,065

PLUS/MINUS NET CASH FLOW 207,157 315,908 366,856

CLOSING CASH BALANCE 247,157 563,065 929,921

PRO FORMA CASH FLOW


YEAR ONE month1 month2 month3 month4 month5 month6 month7 month8 month9 month10 month11 month12 TOTAL

REVENUES

REVENUES 8,000 18,000 23,000 28,000 34,000 39,000 43,000 47,000 51,000 57,000 64,000 68,000 480,000

TOTAL REVENUES 8,000 18,000 23,000 28,000 34,000 39,000 43,000 47,000 51,000 57,000 64,000 68,000 480,000

Wages 6,667 6,667 6,667 6,667 6,667 6,667 6,667 6,667 6,667 6,667 6,667 6,667 80,000

QPP , QPIP, QHSF and EI Contributions 600 600 600 600 600 600 600 600 600 600 600 600 7,200

Supplies 400 400 400 400 400 400 400 400 400 400 400 400 4,800

Marketing 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Utilities 833 833 833 833 833 833 833 833 833 833 833 833 10,000

Repair and Maintenance 333 333 333 333 333 333 333 333 333 333 333 333 4,000

Condo fees and Property Tax 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Depreciation 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 168,000

Insurance 400 400 400 400 400 400 400 400 400 400 400 400 4,800

Legal / Accounting 417 417 417 417 417 417 417 417 417 417 417 417 5,000

General & Administrative Expenses 625 625 625 625 625 625 625 625 625 625 625 625 7,500

TOTAL EXPENSES 27,275 27,275 27,275 27,275 27,275 27,275 27,275 27,275 27,275 27,275 27,275 27,275 327,300

Earnings Before Interest & Taxes (EBIT) -19,275 -9,275 -4,275 725 6,725 11,725 15,725 19,725 23,725 29,725 36,725 40,725 152,700

Interest Expense 0 0 0 0 0 0 0 0 0 0 0 0 0

Pre-Tax Income -19,275 -9,275 -4,275 725 6,725 11,725 15,725 19,725 23,725 29,725 36,725 40,725 152,700

Taxes 15,955

Ali Mokhtari- ALL Time Office

Monthly Income and Cash Flow Projection

OPERATING EXPENSES

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All Time Offices Inc. Business Plan

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