Our goal is to provide urban areas of Paris with an innovative service that connects recycling with community involvement, encouraging consumers to clean their surrounding by bringing personal or randomly collected waste to specific bins that are capable of identifying and weighing the waste and associating the quantity submitted with our “eco point reward system”
The aim of this financial forecast is to prove to investors (the State, the city of Paris, Venture Capital funds) that Green > Pool has the capacity to generate profit, because of its solid business model and wise previsions.
This forecast is based on the exploitation of the Belleville neighbourhood of Paris. Green Pool’s objective is to expend its activity as quickly as possible to other areas of the city. Therefore, Green Pool’s potential is higher than these figures show. Indeed, if Green Pool manages to raise enough money, it will begin its activity directly at a higher scale and could generate a significant higher Operating Income!
Please refer to the annexed document to get a clear explanation of our hypothesis.
Revenues from waste generated by Green Pool’s activity
∗ Belleville neighbourhood: 0,847 km2 (= 847 000 m2) Source
∗ Belleville frequentation: 40 000 inhabitants (38 500 inhabitants, plus people walking by this area on a daily basis for work, visiting) Source
∗ Number of people likely to use Green Pool’s service: 28 000 (70% of 40 000 inhabitants)
∗ 36 kg of waste collected / inhabitant / year in Belleville (equally distributed between plastic, paper and glass)
∗ We estimate that Green Pool will be able to negotiate 20% of the revenues generated by the sale of the waste collected. That rate is likely to rise as we will expend our activity to other parts of Paris or other cities.
#About waste price
∗ Plastic: 200 € / tonne Source
∗ Paper: 140 € / tonne Source
∗ Glass: 23.5 € / tonne Source
#About Green Pool’s revenues generated by advertising
∗ To create revenues from the mobile application, we will use the CPC model, in other words the cost per mille. With this strategy, the editor of the online platform perceives a revenue for each click by a customer on a display of advertising announcements.
∗ In France today, the average price of CPC is around 0.25 Euro. Another variable influences the revenues created by this model and it is the Click through rate, meaning the probability for a visitor to click on the announcement. If we achieve a CTR of 10%, it means that out 1000 visits, 100 clicks are recorded on an advertisement.
∗ If we keep the same CTR, we can estimate the advertising revenues for a month based on 3 visits per user per month: 1.008.000 clicks per year (28.000 * 3 * 12)
∗ With a 10% click through rate, we should have around 108.000 clicks which give us 27.000 € per year.
∗ As the company will grow and we will be able to ensure a higher traffic, we will be able to raise the price of the CPC and get more money from advertising.
∗ Green Pool is currently discussing developing a partnership with a reverse vending bin manufacturer. Current candidates for the partnership include the company TOMRA. If the partnership is successful then we will neither have to rent or buy the bins.
∗ Green Pool has developed a partnership with a collecting company. Therefore, Green Pool does not need to collect the waste (no need for specific vehicles nor workers)
∗ Rent: 3 000 € / month = 36 000 € / year
∗ Wage costs: 5 employees (founder, business developer, head of communication, head of partnership relations, secretary). Low wages expected to grow when the activity will expend.
∗ Other charges: includes various costs such as furniture’s, business trips, restaurants with clients and all spends that cannot be anticipated at the moment.