The Opportunity
The issue of homelessness is a complicated yet urgent concern for both the national government and the global community. There are numerous issues that have led to the increase of the number of people who do not have a roof over their head over the last two or so decades. Arguably, recently, natural disasters have also significantly contributed to the same. One can define homelessness as a general lack of housing for either an individual or family. Importantly, people believe that homeless people just do not have a place to stay. However, people living in shelters and even with relatives are also considered homeless. Towards this end, homelessness can be divided into two broad categories namely primary and secondary homelessness. Individuals and families living in temporary shelters are often described to experience primary homelessness. Additionally, people who move from one place to another in an attempt to find temporary shelter due to the fact that they do not have a place of their own are also considered to experience primary homelessness.
On the other hand, secondary homelessness involves living situations that are shared such as bathrooms and bedrooms. It is important to note that the shared living spaces is between strangers and not immediate family members. This type of arrangement works best for people who earn minimum wage and/or would prefer to cut costs in regards to housing. It is prudent to state that research shows that the issue of homelessness is also not simply tied to lack of a physical shelter. At times, a mental feeling might bring about a situation similar to the loss of a physical house.
Interestingly, colonization can be tied to some of the current housing concerns in the country. The link between colonization and housing mainly affected the indigenous people and communities. It is important to note that the colonizers ideally displaced locals and took their lands and homes. The indigenous communities not only dispersed, affecting their language and cultures, but also became homeless. They had to start afresh by settling in new lands, or by sharing the little lands left with one another. It can be argued that this led to the creation of secondary homelessness as these societies were unable to fully meet their cultural and social needs. Those who were completely displaced and had nowhere to go suffered primary homelessness.
It can be argued that the issue of homelessness, regardless of whether primary or secondary, has led to overcrowding. In several cities, such overcrowding has in turn led to creation of semi-permanent houses in slums or “ghettos”. The premise brings up two things that have to be considered when discussing homelessness. The first is that there are people who cannot afford to pay for housing and end up without a place to live. Secondly, there are places that are too overcrowded that they do not have enough housing for their populations. Despite the reason for homelessness, it can be suggested that one solution should be used to address each situation.
The proposed opportunity involves the use of corporate social responsibility to encourage the building of affordable housing and, in so doing, lower chances of homelessness. A significant percentage of companies have a corporate social responsibility policy that allows them to contribute and give back to their communities. The fact that the building of such houses would be in some sense, charity, will also ensure the infrastructure is affordable for those who are interested in being housed.
The Company
The company, Wheely1y, is invested in coming up with sustainable products and raw materials for house and infrastructure development. It is important to note that the issue of sustainability affects both longevity and affordability of a house. Critically, one can argue that raw materials that last long will lower the cost of maintaining a house, thus, in essence, also lower the monthly rates of the same space. Additionally, easily accessible raw materials also make the production cost of the houses lower. This trickles down to lower rental charges as well. It is important to note that due to the fact that the mandate of the company is to offer affordable housing, it is also invested in finding the most affordable yet highly reliable raw materials for the same. The research and development aspect of the company is constantly tasked with coming up with such alternatives.
It is important to note that the company will be supported by funding from government and other stakeholders. The issue of corporate social responsibility will be used to seek for funding for the development of the stated affordable housing. As mentioned, companies have policies that support giving back to their communities. It is important to understand that the proposed company, Wheely1y, is not a for-profit organization. Instead, its main mandate is attached to charity, and the passion to see homeless people find places they can live. It is critical to also note that these infrastructures have to be safe and comfortable in order to allow the affected individuals enjoy a quality life. The company will be locally run and headquartered but will seek funding from both local organizations and multinationals.
Its Products (or Services) and Strategy
The company will have one primary product, WHEEL1Y, which is a type of affordable and sustainable house. There are several things that will make houses by Wheely1y better than its competitors. As stated, the most significant difference is the rental charges that will be attached to the houses. Whereas the houses will have standard quality, if not higher, they will be significantly more affordable. As explained earlier, one element that causes homelessness is overcrowding. This often means that there is a huge demand for housing but very little supply. Critically, as Lee (2018) notes, the type of houses that are rarely available are the ones that have lower rent charges. Therefore, even though there is (arguably) need for an increase in supply, the houses also have to be affordable in order to fill the existing gap.
Towards this end, one can argue that the company’s strategy will involve advertising the three main aspects of their houses to people who are experiencing secondary homelessness. The first aspect is that the houses will be more affordable than those currently in the market. This strategy will work for people experiencing secondary homelessness, but not those facing primary homelessness. This is due to the fact that although they are homeless, people facing secondary loss of a house, can often afford to pay for accommodation albeit not much. Due to this, as previously explained, they tend to live in communal or shared set-up, which is often not ideal. The affordable housing will specifically target these individuals and families as they will be required to pay a meager amount as part of the terms of renting the space.
It is important to also note that the houses will be highly intimate and portable. There are seven main elements that will be required in the building of the houses/structures. The first raw material will be cotton, which will be stored in 250 liter packs. Cotton is an environmental friendly product that can be easily accessed all over the world. The second material needed is a silicon colored ring that reflects. Silicon is not only also environmental friendly but also long lasting, making it highly sustainable. A polyester resin tent will also be required to build the suggested house. The raw material is easily available across the globe and also long lasting. Rubber tires and aluminum frames will also be crucial in ensuring longevity of the houses. Paper rolls will be pressed and used as rolling bearings for the infrastructure. Finally, supported rubber insulating discs will also be required.
One can also argue that the use of easily acquired and environment friendly raw products is a suitable strategy for the company. This is due to the fact that the company will mainly rely on donations from both organizations and individuals. It is important to note that a significant number of organizations are keen in investing in projects that not only help the community but also protect the environment. Arguably, environmental conservation is a key element of all businesses that are operating today. Construction and industrial jobs have been heavily affected due to their negative impact on the environment. In order to get donors, and also make it easier for the company to align its work to different companies, the management has to also ensure that the company’s activities are environmentally friendly.
The Management Team
The management team is made up of the founder of the company, a senior civil engineer, a structural engineer, a finance manager, project manager, communications and marketing manager and a fundraising manager. Each of these members has specific tasks that they are expected to deliver. It is important to note that apart from the management team, the company also has a work force of approximately 60 people, 40 of whom are on part time contracts. The structural engineer heads the building department and is tasked with overseeing the quality of the houses that are developed. On the other hand, the civil engineer is in charge of the research and development department, which is primarily tasked with getting alternative, affordable, environment friendly and sustainable raw materials for the houses. It is important to note that technology changes all the time. Due to this, the department is also charged with keeping abreast with current and changing building and construction technology.
The project manager is in charge of specific projects that are launched by the company. Therefore, this specific office works hand in hand with the structural engineer to oversee both completion, quality and attainment of the organizational mandate. Critically, the fundraising manager is tasked with getting and maintaining relationships with donors. As stated previously, a bulk of the project (construction of the houses) will be funded by donors through their corporate social responsibilities. Maintaining cordial and positive relationships with the donors is critical in the sustainability of the project as a whole. Further, the communications and marketing manager is charged with managing public perception about the company and the project. Additionally, the manager leads the organization in marketing and advertising the products already highlighted. It is critical to note that this department works as a support feature for all other departments.
It is important to note that although the founder will be part of the management team, he will have an oversight role as opposed to a daily role. One of the reasons this is important is to ensure that the decisions made are without bias and for the benefit of the whole organization and not one individual. The company will also have a board of directors. One of the tasks of the board will be the identification of potential partners for the project. Additionally, the board will also have an oversight role for purposes of transparency and accountability of funds/funding. Critically, the founder and the civil engineer will also be part of the board of directors.
Marketing Plan
There are four main things that have to be considered as part of the marketing plan. The four main Ps of marketing are: product, price, place, and promotion. Often, marketers also have to consider packaging and positioning. As explained, the primary product associated with the company is an affordable housing that is referred to as WHEEL1Y. There are two main things that have to be considered in regards to the product. The first is the raw materials that will be used in the development of the affordable houses. As explained, some of the materials that will be used will include cotton, silicon and rubber. One of the critical things about the raw materials is that they are long lasting and easily accessible. This, in turn, ensures that the houses are also rented out at an affordable rate.
The price of the houses will be determined by the size and location. For instance, a one-bedroom house will go for between USD 350 and 650 per month. This is relatively cheaper compared to the currently market rates where the most affordable one-bedroom house currently goes for USD 700 per month. A two-bedroom house will have a range between USD 700 and USD 1000. Currently the average range for a two-bedroom house is USD 950. Lastly, a three-bedroom house will have a range of USD 1000 and USD 2000. Interestingly, the market average for the same sized house is USD 1300. It can be clearly noted that the affordable housing will help more families suffering secondary homelessness get their own homes.
As expected, the houses will be located in different parts of the country in order to help as many families as possible. However, a significant number of the houses will be in urban set-ups as compared to rural ones. This is due to the fact that a majority of people experiencing secondary homelessness are in the urban settings (Lee, 2018). It is also important to note that the land in which the homes will sit will be dictated by the government. The company has to not only develop but maintain a relationship with the government in an attempt to get free government land to establish the homes. It is critical to note that a significant number of houses are expensive due to the fact that the owners also have land rates/fees to consider. Using the stated approach, this should not be a concern for the company. In situations where a land or lot cannot be donated, the company will purchase a plot. The selected of such plots will be determined by their price. It is important to ensure that the company will try to lower costs in order to create more houses.
The issue of promotion relates mainly to the target audience of the houses, who are individuals and families who are experiencing secondary homelessness. The company will advertise affordable housing through both the traditional and digital platforms. The traditional mode of advertising will involve the use of newspapers, magazines and housing expos to inform the public of the product. It is prudent to note that a significant amount of the marketing budget will, however, be used for digital marketing and advertising. Some examples of such advertising include the use of the company website and social media platforms to reach out to their target audience. One of the reasons this is important is the fact that it is more affordable and has a larger reach. Further, the fact that a significant number of people search for houses online makes the digital platform the best way to reach out to the target audience. The promotion of the product will not be a one-off activity but will be continuous. Critically, this task will be managed by the communications and marketing department.
Operating Plan
One of the things that will be done differently in order to run the business successfully is customer service. According to Lee (2018), this is one of the most overlooked aspects of construction work. It is important to note that the company will have two types of consumers. The first is the donors who will be providing funding to ensure the development of the houses. One way of managing this specific relationship is through the attainment of deliverables as indicated in the fundraising agreements. Financial accountability and transparency is also a key part of the proper management of this consumer-business relationship. The second type of customer is the target audience who will be renting out the houses. It is imperative that the company also manage this relationship due to the fact that their wellbeing is part of the organization’s mandate.
A second thing that will be done to successful run the business is attract the right man power for the project. It is critical that all employees of the company believe in the mandate of the organization. The employees have to also fully understand the company objectives, vision and mission. Further, the fact that the organization will not seek to make money (as a primary motivator) means that all employees must be committed to making a difference in the lives of homeless people. The right human resource will not only ensure that the company achieves its objectives but also create a good working environment for everyone involved in the project. There are several other things that have to be considered when thinking about the company’s success. Primarily, leadership is also critical in attaining the same. The founder of the company, will, therefore, be charged with ensuring the right type of leadership within the organization.
There are two ways in which the company will make money. The first is through the donations that will be received. As explained earlier, the company will tap into the corporate social responsibility of several firms to get donations for the project. Individuals will also be allowed to donate to the project if they desire to do so. Critically, the company will also accept donations in-kind, such as parcels of land or lots where the houses can be built. Additionally, the company will make money from the rent that will be collected. The rent that will be collected will not only help settle monthly bills but also help the company develop more housing in different parts of the country. As stated, the company does not seek to make profit, but rather, support its activities on a monthly basis. Whereas the received funding will initially be used for such operating costs, they will eventually only be directed to the construction department. The rest of the costs will be supported by the rent collected.
Financial Plan
The following financial plan is for Years 1, 3 and 5. Critically, the company is expected to start supporting its operating cost through rent collected by Year 5.
Reference
Lee, W. (2018). Downtown management and homelessness: the versatile roles of business improvement districts. Journal of Place Management and Development, 11(4), 411-427.