Business Plan

Executive Summary
Most of the lowest income families in the world can be found inside urban slums.
Urbanization is taking hold of developing countries as more and more people move to be closer
to work in urban hubs. Millions of people are relocating from their country villages to the
outskirts of major cities. This poses an extreme problem as access to the basic necessities of life
becomes next to impossible. Instead of working to create better lives for themselves, slum
dwellers are forced to work extremely hard just to ensure that they have a roof over their head.
Unfortunately, they still do not have a safe roof over their heads. Putting food on the table and
gaining access to water seem to top the list of priorities, rather than upgrading their home
structure. Slum houses are known for being extremely unsafe to live in. During even the slightest
breeze the thin walls could collapse. The walls are constructed out of scrap material that is not
meant to support a structure. The bottom line is that everyone deserves a safe place to live, and
that is what Bayhayven Homes is here to do.
Our team is going to begin helping low income families living in Filipino Slums.
Through our financial payment plans and goal preparation, individual families can upgrade their
living conditions. These homes will be collapsible and portable in case the family relocated.
Fully folded down, the house is only 35 inches tall and weighs a mere 300 pounds. This means
that 4 people can pick the house up and move it for easy relocation. These homes will provide
the quality of security, safety and life by giving people in need a way to have a comfortable
space to call home.

Market Analysis

The tiny home phenomena is just starting to take off. This means that there are very few
businesses producing the same product. An example of another business who is trying an idea
similar to ours is Abod. These are houses are able to be made by four people in one day. As much
as we respect what Abod is doing, this is a bandaid solution because the houses are given to low
income families at no cost. The families are not learning methods to provide for themselves, but
are only given a solution that cannot teach them. The houses do not have as much value to the
people because the house was simply given to them. Our houses are not free so we can help
teach people methods to provide for themselves in a better way. Our business is needed because
there are 4 million people living in slums in the Philippines. Slum life is a very difficult and
often doesnt provide all the dwellers with their basic human rights. Most families can have up to
10 people living together, including extended family. According to the CIA Factbook 33.7% of
the country are children under the age of 14 and often there are many children in each family. All
of these people need room to successfully thrive, and all slums lack this basic need.
The market size is expansive. According to the UN Habitat, millions of people still live in
slums. The number is estimated at about 863 million, slums are everywhere. All of these slum
dwellers live in inadequate housing and struggle to access basic necessities such as water, food,
clothing and sanitation. Many of these people want to provide a better lives for future
generations and often worry for their childrens safety due to the conditions. This is a major
problem and we need to work hard to help the people we are trying to access.
Product Description
The products that we offer are highly customizable and useful for everyone. The reason
that we have 3 different designs is so that we can meet the needs of millions. If the product was
the same for everyone, they wouldnt be able to be used by everyone. The customizability, as
shown below in the financials section, will help enable sales.
Another way that we are making our products better for everyone is making them
foldable and portable. This makes them much easier to have in storage because all of the options
are only 30 inches tall and 10 x 10 feet. We can fit up to 8 of them in a storage container so we
can ship thousands of them at the same time. If our product starts to take off, we have a way to
keep up without getting on back-order.
The first of the three options will be the Philippine Eagle. This is the most simple and
cheap house that we build. It will not have the ability to connect to electricity, which will reduce
the price by 50 dollars, but it will still have a stove and windows for comfort. The window is
placed in a way that it lets in heat during the winter and lets in cool air during the summer. This
is referred to as passive solar, and is an innovative way to save money on heating and cooling. It
will also have a loft in the top that will be able to fold down at night so that people can sleep.

The second option will be the Carabao. This model has all the same things as the Eagle
but the Carabao adds a toilet and septic tank. The Eagle does not have either of these that come
with the house. We could not put the plumbing into the Eagle because it raises the price of the
house by a lot. We figured that we needed a very cheap option for the people that cant afford
this model. The windows are located in the same place as the Eagle to help with heating and
cooling.
The third option will be the Damulag. This will be the nicest version of the house. It will
have the same as the Carabao, but it will have a solar pack. The solar pack means that they can
create their own source of energy without having to connect to the community or city power.
Because of the solar power, this house will include an outlet and a bulb to provide light when
night comes. The floor plan is the same as the carabao.
All of our houses will also include a water filter so that dwellers can place filtered into a
tank that will provide running water for the family. A special focus of our business is that if the
client can not afford the Carabao, then they will be able to buy the Eagle and then later sell it
back to us and buy a larger, so they can raise funds to afford the Carabao or the Damulag. This
means the customers will be able to upgrade their living space and expand for a business, family
or just plain comfort. These homes will be foldable, so it is easier for families to relocate, and
still have a home. When folded down the homes will be around 30 inches thick and easily moved
by help from Bayhayven Homes. All of the models will be made from quality materials that can
withstand the ever challenging weather conditions mostly from the Philippines, and are made in
the country. Bayhayven Homes are almost like an American franchise because the business is ran
by independent owner, but still follows procedures and policies.
The structure of these houses is made through the foam boards in a sandwich of plywood.
This is a very structurally sound design. The reason that we use plywood to sheath houses is that
it can not be stretched. In making a flexible house that using the strongest way to use wood. The
houses will be very sound and will not fall down. In addition, the use of triangles is implemented
in the tiny home as well. The way that we use the triangles means that the house will not be able
to be blown down in hurricanes. This is the second most important part of the house, since the
houses of the filipinos have been falling in on them.
One of the problems with selling our houses will be the people being able to afford them.
The cheapest house costs 13 dollars, but that is still a lot of money for the philippines. This
means that people may not be able to afford our house. However, we will include a rent-to-own
strategy. This means that people will be able to pay us to live in the house until they have been
able to pay us back. We will only give out 35 rent to owns at a time, with the rate being at 25%
of the cost a month, with a 10% extra in order to give us a payback for giving the house at a rent.
This will make it easier for the people to be able to buy the houses.

Marketing Strategy
Bayhayven Homes is not only a product that can be sold to improve the lives of millions,
but it is a brand that could be a symbol of a better life. Slum dwellers are held by the confines of
their money and their lack of accessibility to the basic needs of life, water and shelter. The
message that we are conveying through our brand is that with a little dedication and help
everyone, regardless of their financial status, can have a safe place to live. Through providing a
service to take interest in their lives and encouraging them to work to achieve a goal their lives
will begin to change for the better. Our target customers are informal settlers living in poor
conditions of the Smoky Mountain Slum. These people moved to the slums in order to find work
in the city, and that took time away from developing their houses into something livable.
Marketing to our clientell could be a challenge, as they do not have access to television or
the internet to visit websites and find information. Essentially, instead of our clients coming to
us, we have to spark the flame and help it grow. Informal settlers are known for their strong
sense of community and camaraderie. Our plan is to spark the flame by sending company
representatives into the slums with presentations, pictures, and models to show to the informal
settlers. Like door to door salesmen, our representatives will find clients and begin the process.
Once the first Bayhayven house is in place, we expect that word will spread and other clients will
begin come forward. Each house will also have our logo and the address where they can find our
office. Inside each house, there will be a printed kit that includes brochures, stickers and house
pricing that can be distributed by our clients to other potential customers.
Bayhayven Homes will have a functioning website, and several social media pages as
well. This is so that potential investors, current investors or other organizations who are
interested in improving the life of slum dwellers can see what we are doing and stay connected.
This page will be based out of our office in the Philippines, once again creating a job/career
opportunity for several slum dwellers. Updating a daily Facebook/Twitter page with pictures and
stories will not only provide documentation about what our company is doing, but help get the
word to the Filipino upper class to gain support and grow our name.

Management Plan
Bayhayven Homes works directly with people to provide homes for Filipino people by
Filipino people. Our builders, administrative staff and appraisers will be hired from the
Philippines, and in the future, where ever the homes are being built. Wages will be given to all

the workers, as well as health benefits for family and themselves. All items for the houses will
also be bought from reliable and safe companies that are socially responsible. The company will
be benefitting to the economy, not taking away from it.
Our company is broken up into five major roles, or responsibilities. Luke Stetler, CEO
primarily focuses on the business side of Bayhayven Homes. This requires mostly financials,
models and planning the businesss logistics. Mitchell Anderson, Product Designer, helps the
company design the homes, and also helps with financials of building the homes. President of
Marketing, is taken up by Jonathan Smith. Jonathan works with social media such as Facebook,
and Twitter then markets the product to possible customers through advertisements. The final
role is Chief Operational Director, Vivien Doucette. Vivien is in charge of logistics, such as
portfolios, task director and scheduling. Together the four roles lead into a strong team, with
different skill sets that creates a well rounded service for those in need of a better, safer, and nicer
home. The last major position is the sales man. He will go from house to house and speak to the
owner and convince them to buy our house.
The company will start with 6 others than the five named above. The teams will be
broken into sets of 3, each of which will make three houses before the company starts. They will
work in two teams so that there are enough hands to help and get work done quickly. The
employees will be paid 200 pesos, the equivalent of $4.50 in america. This is a raise from what
they normally get and they will receive room. The employees will receive 14 days of vacation
and one week of sick days. Mitchell will be in charge of both groups and will work with them
when they need help or are unsure of what to do.

Financials

This is a chart displaying the way that the houses change and the prices after they change.
The different houses have different innards and can be purchased based on the needs of the
people and the amount of money that they have. This means that we will have a house for
everyone. The basic will be able to be upgraded however. The items can be purchgased and
installed by a technician. We should be able to accommodate the needs of anyone.

This graph is a display of how much money it costs to build the entire tiny home. Foam is
the priciest part of the home, costing us 70% about 420 Filipino pesos, or $9.50. Then followed
by Waferboard, roofing, then finally wood. With just building materials the home is just 600
pesos or $13.56 US dollars. This does not count electricity, plumbing or anything else. This is
the simplest and least costly home. This is less than a week's pay and the people should hopefully
be able to purchase this small home.

This is the Caribou, which is our middle house. It has plumbing, but it does not have any
sort of electrical interface in it. This removes about 50 American dollars, but it does still cost a
lot more. This is still an expensive house, as you can see above. The plumbing cost comes from
the regulation PVC pipe. As a business, we are not legally allowed to sell without the pipe being
up to the government standards. The other expensive item is a removable tank that is quite
useful and expensive.

This house is the nicest of our houses. This has a solar panel and a battery, along with the
plumbing and electrical, this is a good modern house, but it costs a lot more. This house is the
best of the best. It has a small solar panel on top and a battery that will be charged and can power
a light at night. This will help the people to be able to have a longer day and work harder and/or
longer without fear of hurting themselves in the dark. This house is a small increase from the last
one. The total comes in at 2590 pesos, or at $58.57. This comes from the solar panel and battery
added to provide electricity and light.