Table of Contents

1. PROBLEM STATEMENT, VALUE PROPOSITION AND BUSINESS CONCEPT ................. 2

1.1. PROBLEM STATEMENT.............................................................................................. 2
1.2. BUSINESS CONCEPT: ................................................................................................. 2
1.3. VALUE PROPOSITION ............................................................................................... 3
1.4. CUSTOMER MARKET ................................................................................................ 7
2. BUSINESS CONCEPT ............................................................................................. 9
2.1. TARGET MARKET AND GROWTH POTENTIAL ............................................................. 9
2.3. REVENUE MODEL ................................................................................................... 18
2.4. IMPACT.................................................................................................................. 21
3. MOCK-UP: PROTOTYPE AND VALIDATION OF THE CONCEPT ................................ 22
3.1. MOCK-UP (PROTOTYPE AND MVP) ......................................................................... 22
3.2. FEEDBACK FROM INTERVIEWS: ............................................................................... 23
3.3. HOW OUR IDEA HAS CHANGED DUE TO ANALYSIS AND FEEDBACK .......................... 23
3.4. NEXT STEPS............................................................................................................ 23

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 1. PROBLEM STATEMENT, VALUE PROPOSITION AND
BUSINESS CONCEPT

1.1. PROBLEM STATEMENT

PROBLEM DEFINITION:
It is well-known that sustainability is a global trend nowadays, which is essential for keeping up
with human needs in the long term. Furthermore, it is known that unchecked industrialization
may impact the environment and the society as well. Especially after the 1987 Brundtland
Report, sustainability as a term gained more traction, so people started to focus on small actions
to improve the quality of life for everyone.

Regarding the importance of sustainability, there are global trends related to reducing food
waste, recycling, reuse and repurpose, standardized sustainable materials, and also brand
responsibility and transparency among others. Moreover, a list of Sustainable Development
Goals (SDG) has been created to transform the world and meet the objectives of these trends.
Overall, they aim to end poverty and inequality, protect the planet, and ensure that everyone is
healthy, and there is justice and prosperity. More concretely, in this study the following SDG
objectives are going to be covered:

First, SDG 8, which recognizes that economic growth and job creation are essential for reducing
poverty and achieving sustainable development: second, the SDG 9, where the goal is to ensure
that everyone has access to financial services, technology and infrastructure, while
entrepreneurship, innovation, and labor rights are promoted; third, the SDG 11, which aims to
have an intelligent urban planning that creates safe, affordable, and resilient cities with green
and culturally inspiring living conditions; and finally, the SDG 12, where the objective is to ensure
sustainable consumption and production patterns.

1.2. BUSINESS CONCEPT:

PROBLEM IDENTIFICATION:
The investments in FaceBook Ads and other similar platforms, which used to be very profitable
between 2014 and 2018, start to fall dramatically because of certain controversies related to the
breach of the tracking policies and the invasion of privacy of the users. Large companies such as
Apple and Google defended that these practices went against their data privacy policies and
began to cover this type of advertising, causing investments in FaceBook ads to fall.

Moreover, between 2019 and 2022. The concept of consumer awareness began to spread, and
companies increasingly sought the best way to transmit the added value of their product to their
customers. The extension of this concept triggered a trend in startups to bet on the growth of
physical stores that would help achieve that connection between client-company-product.

In addition, this trend stood out especially in the emerging sector of sustainable companies
since, when promoting highly innovative products, they need to get as close as possible to the

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client to validate their product. However, setting up a physical store is always an important
investment, especially for start-ups, which tend to have limited resources.

Therefore, companies must face different doubts when making a decision and the most
extended is: WHERE SHOULD I LOCATE MY PHYSICAL STORE TO MAKE IT THE MOST PROFITABLE
POSSIBLE?

IDEA/SOLUTION GENERATION:
Our solution to this problem is GreenGuideSAS, a software as a service that, through the use of
constantly updated data, allows sustainable startups to identify the most profitable location to
situate their physical stores. This is achieved from a definition of the basic aspects of the
company such as:
▪ In which sector it operates?
▪ In which city would it like to locate the store?
▪ What is their budget?
▪ How would they describe their buyer persona? (through the selection of pre-established
keywords by the software for each type of sustainable business contemplated).

In this way, it suggests a list of the most profitable locations for the company according to the
information provided and the data analysis, as well as possible premises to use thanks to the
system’s connection with Idealista’s data. On the other hand, it is a system that, while being
constantly updated, will also allow those startups that already have a physical store get to know
if their location is still profitable or if there is a better alternative by daily updated and
personalized data graphs and summaries, allowing them to make the best decision, save money
and obtain the maximum profit possible.

BUSINESS MODEL:
• Creating value, the startup develops and offers a platform that connects green startups
with property listing platforms like Idealista. The platform helps green startups to find
the best place to put their physical shop depending on their criteria. Once the place is
selected, the platform helps the company in aspects such as the profitability of the space
and sustainable tips for the startup.
• Delivering value, the startup delivers the service via the internet. A team of salespersons
are dedicated to presenting the solution to possible clients. Then the service is provided
via internet and direct message in our platform.
▪ Capturing value, the startup charges a fee to both green startups and physical space
providers for using the platform, since they both obtain a benefit from its use. This fee
may be based on a subscription model, an affiliation model, or a combination of both.
The startup can also have more revenue with advertising inside the platform or premium
features for the clients.

1.3. VALUE PROPOSITION

The VALUE PROPOSITION describes the set of benefits that we design to attract customers and
solve their problems. We are trying to match these with the characteristics of our potential
customers by generating assumptions and hypotheses. Main focus our efforts on creating value
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for the customer from the very beginning of the new venture creation process. Therefore, our
first value proposition will be the following:

Green Guide SAAS provides sustainable retail startups with personalized and
automatized consultancy services for finding profitable locations, utilizing data from
multiple platforms. Our service helps businesses succeed while promoting
environmental sustainability, making us the ideal partner for green startups.

1.1.3.1. IDENTIFICATION OF TARGET CUSTOMERS AND JOBS TO BE DONE

In our project, our target customers are green startups and SMEs who are looking to open a new
store to expand their existing business or that want to obtain data and consultancy support in
order to get to know how their current physical store is performing.

Our target customers have different jobs that they need to get done in order to obtain success.
Some of these potential jobs that our targeted customers need to be done are the following:

a) Analyze potential locations the startups need to analyze several locations based on
different characteristics and metrics in order to select the best one. It involves collecting
and analyzing data about foot traffic, demographics, competition and 4in several times,
it implies more rudiment…
b) Minimize risks, study which places have the lowest risk if things don’t go as spected.
These risks can be things like low foot traffic, high competition, unfavorable
demographics…
Saving time and resources, select the best location can be a exhausting job, this including a
large expense in time and resources. Startups want to be able to make things done using the
minimum time and resources possible.
c) Maximizing profitability, Startups want to maximize profitability by choosing the location
that will generate the most revenue and profits. This is accomplished with ideal metrics
discussed before like foot traffic, demographics, competition…

1.1.4. CUSTOMER VALUE PROPOSITION CANVAS:

The customer value proposition canvas consists of two elements: The Customer Profile and the
Value Map.

CUSTOMER PROFILE:
The customer profile represents the ideal of a business consumer. This consumer has three
different descriptive parts:
- Gains: The gains are the positive outcomes that the client expects from your company
by using the product or service that it offers. They are divided in 4 categories:
o Expected, they are the minimum requirements to satisfy a customer. In this case
we can say things like a satisfactory performance of the recommended locations
and help during the process.

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 o Required, they are the benefits or outcomes that a product has to offer to a
customer to consider the purchase. For our client profile it could be an easy-
touse interface and the ability to have metrics of the location.
o Desired, are the customer expectations of a product or service but they do not
need to be ensured as the expected ones. In our example, it could be an increase
in the shop's profitability and the best location possible.
o Unexpected, the benefits that the clients get from using the products that were
not expected from the biggening. For example, to have tips from the company
on how to make their store more sustainable, a higher connection with the
customer and being easy to access consultancy services.
- Pains: It refers to the challenges a client must overcome to achieve their desired
outcome. It is divided in two parts:
o Risks, the potential negative consequences that a customer predicts will happen
if they buy the product. In our case, it can be different things like not being able
to buy the shop, not understanding the interface of the platform, that the
location is good, but the people are not stopping by, having to make a high
investment in the beginning...
o Problems, the challenges that a customer faces when using a certain product or
service. The customer wants to avoid this at all costs. In our case we have that
the client maybe wants the results quickly or that the clients do not find the
product useful.
- Jobs to be done: this refers to the activities that a company is trying to accomplish with
a product or service. It is divided into three different types of jobs.
o Functional jobs, practical activities that a customer is trying to accomplish using
the product or service. They are related to the minimum requirements that a
customer needs to be satisfied. In our case we have the task of finding a good
place to put our physical store.
o Emotional jobs, emotional activities that the product must accomplish for the
client to be satisfied. In our case we have detected that our possible clients are
never 100% sure if they have decided on the best place for their location even
after purchasing. So, we want to give peace of mind to our product in that
regard. o Social jobs, cultural tasks or activities that a customer is trying to get
done by using a product or service. In our case, the startups that use our service
can be more secure with us.

CUSTOMER VALUE MAP:

The customer value map represents the benefits of the products of a company, how it differs
from the competence and how they mitigate the pains of the customers.
- Products and services: It represent the products and services in which the value
proposition is built around. Our service is a platform that tells you where the best
location is to put your physical store.
- Gain creators: How the products and services create gains for the clients. We create gains
for our customers achieving more connection to their customers, make them save time,
helping them to make their store more sustainable and finally increasing the revenue of
the store.

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 - Pain relievers: How our products and services alleviate the pain of our customers. In
order to give some pain relievers, our startup offers monthly payments, helps to catch
attention from customers, give peace of mind by knowing it is the best place, reduce
uncertainty when looking for a place...

1.1.5. BLUE OCEAN STRATEGY

Our target customers are green startups, especially these green startups that are obligated to
have a physical space to operate, for example vegan restaurants. As these startups need for sure
a physical space they will benefit more from our project. If these startups succeed, they need to
launch several more locations in order to protect themselves from competition. To do this
correctly they will probably need our tools to make the process as efficient as possible. Our
competitors reside in countries like USA and India, this means that the European market is
untapped.

With our service we ensure that there will be the targeted customers of the green startups using
our service based on data analysis and past success of similar business in the zone. Our service
also helps green startups be “greener”, helping them to be more sustainable using sustainable
construction practices, energy efficiency and helping them to get the certification to be
considered sustainable locals.

The main pain points that green startup face selecting the location of their physical local is the
uncertainty. Even if the CEO of the startups spends several hours monitoring the foot traffic of a
zone there is no guarantee that it will succeed. Maybe he is getting the space in a zone where
these green startups are not valued.

1.1.6. HIGH IMPACT EMOTIONAL CONNECTORS FOR TARGET MARKET (OUR WHY)
Green startups are typically driven by a desire to make a great impact on the environment and
society. Their most deeply held values are sustainability, social responsibility, and ethical
practices. Our startup needs to have these values to connect with them.

1.1.7. “AS IS” VERSUS “OUR SOLUTION” FULL LIFE CASE.

As is:
Antonie came to Spain with the dream of opening a salad restaurant in Valencia. When he was
ready, he started to look for the best places to put his restaurant. The perfect place had good
foot traffic and people that aligned with the values of his new restaurant. It was not easy as he
needed it to stay outside of near restaurants to count the number of people that passed by. After
weeks of investigating physically and online for the best place he finally bet for one. However, it
resulted that the people passing by were not the target customer of his restaurant.
Our solution:
Antonie, the future SEO of Salad planet (a restaurant dedicated to salads), wants to finally open
his first restaurant. He has no experience finding the best place to put his restaurant, but he
heard about green guide app, a consultancy service that gives you the best place to put your
physical store. With ease, he entered the web and declared the zone where he wanted to put
his store. The service, after asking about characteristics of its customers, showed the best places
to put his store. Antonie was amazed about the little time that it required to find the best place

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and decide it to try it. The team helped him with all the metrics of his location and customers
started rushing in. Now Antonie uses the service every time he wants to open a new restaurant.

1.1.8. VALUE PROPOSITION QUANTIFIED:

To quantify the value proposition of Green Guide App we can consider several factors including:
- Cost savings: The ability to experiment comes at a price. If the startup’s selected location
is ineffective, changing it will be exceedingly expensive. We can aid in the avoidance of
errors and potentially save thousands of euros by lowering the likelihood that the wrong
site will be selected.
- Increase revenue: If we choose a bad location, we must consider the revenue we will not
receive in a better place. By helping green startups find the best location for their
physical space, our solution can help them attract more customers and increase their
revenue.
- Time savings: Time is money, and finding the ideal location for a physical space can take
a lot of it. Green startups can focus on other aspects of their business while saving time
with our solution. An example of this is Antonie, the CEO of Salad Planet. In an interview,
he told us that to find the best physical store, he spent over two weeks staring at the
door of near restaurants. This is a example of entrepeneurs loosing time

Example:
A clear example of cost and time savings is: Company X: one of the workers spent two weeks in
a street where the physical shop was to be set up, analysing the type of people passing by, the
number of people,… For the company it was an expense in time and money.

1.4. CUSTOMER MARKET

In order to understand the process of acceptance of our innovation over time, the market should
be divided into five categories of potential customers. This is quite relevant since we can identify
our “right” customers.
The Tornado: It is suggested that if the bowling strategy is executed
successfully, then your product and your business can go into a
tornado which means that your product is in high demand and your
business is experiencing rapid growth and during this period, it is
essential to meet customer demand and ship the product
efficiently.
The Bowling Alley Strategy: If you hit the first pin hard enough, the
others will fall. Therefore, it is important to first identify your
specific market segment and then create a plan to expand from
that segment to other segments before finally reaching the
broader market (knocking down all available pins).

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 Innovators: Companies which are
technology lovers and are being successful in their field. They have enough resources to take the
risk of using GreenGuideSAS and try to be more competitive, even though they are not sure it is
going to work. Some examples would be Amazon, Zara, or Shopify.

Early adopters: The early adopters are those sustainable startups located in Valencia, selling
sustainable clothes and accessories, even vegan restaurants, which are focused on having a good
impact on the environment and get known in a higher personalized way. When the moment of
having a physical store comes, they face the problem of not knowing where exactly they should
locate it. It should be highlighted that startups have limited and low resources, therefore, they
cannot take the risk of doing an investment which will not be profitable. That is why these kinds
of companies are looking forward a service such as GreenGuideSAS, so they can ensure a
percentage of success. They are willing to take the risk in order to have a competitive advantage.

Early majority: Sustainable startups not only from Valencia, but also from the rest of Spain, such
as Madrid and Barcelona. It is the same as the early adopters, they are looking for getting known
treating directly with customers through the physical store. Since their resources are limited,
even though they are willing to try new technologies and services, they cannot take the risk
making the decision of where to locate the store without knowing if it is going to be profitable
or not.

Late majority: Companies that have quite high levels of inventories, such as furniture’s shops.
They are consolidated firms which considered putting a physical store once, but it was not finally
done because they do not know how to do it in the most profitable way. If they are holding
inventories, a physical store with an additional stock in order to show the product will increase
costs considerably. Moreover, since they are consolidated firms, they may not trust these kinds
of software and prefer to keep their traditional methods.

Laggards: Companies offering naturalists and sustainable activities, such as yoga or hiking. They
do not really need a physical store since they usually are services offered through a website and
they only have to meet in one accorded point. However, there is a little possibility that they may
consider this SaaS to locate a center where they can book the activities, get information in a
more personalized way, or even carry out that activity there.

It is true that our long-term objectives are covering all these five group’s needs. However, it is
well-known that the most difficult step during the adoption lifecycle is passing from early
adopters to the early majority, also known as the “chasm”. Therefore, we need to focus on a
single primary market at the beginning, also named “beachhead market”.

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 Beachhead market: Sustainable startups who are right know in Lanzadera, Valencia, and have
the objective of getting known through a physical store. Since we are students at EDEM, we
have direct access to this building, where we can talk to them personally or according to an
online interview. Therefore, it is a small segment of customers but quite accessible for us.
Furthermore, they are similar companies since their objective is to offer sustainable products
or services which have a positive impact on the environment.

• Buy similar products: They buy sustainable and ecological products in order to have a
goof impact on the environment while needs and wants of customers are met.
• Similar expectations of value: Their expectations of value are related to be able to
identify the most profitable location to place their physical store with the use of the
software.
• Mouth to mouth: Startups in Lanzadera may know and talk to each other. Moreover, they
also can make recommendations though their social media and make collaborations.

It is important identify our beachhead market, because, following the bowling alley strategy,
once it is done, we can determine plans to expand and cover other segments needs until we
reach the broader market.
If this strategy is properly applied, we may enter a tornado, which means GreenGuideSAS is in
high demand, and we are growing. After this stage we arrive to the main street, where the
business enters a period of calm, and the product it has been a success and widely accepted.
However, it is in that moment when new strategies or ideas to strength our position on the
market is needed. For instance, the internationalization of the idea, to help locate the physical
store in other countries. Another option would be to provide the same service, but instead of
being B2C, add a B2B part, where companies want to locate a workshop (like a showroom) in a
beneficial spot which will make the contact with the target audience easier.

2. BUSINESS CONCEPT

2.1. TARGET MARKET AND GROWTH POTENTIAL

2.1.1. COSTUMER SEGMENT PROFILES (PERSONAS)

GreenGuideSAS is a B2B oriented company that is particularly focused on start-ups that provide
sustainable products and services and that can be defined as “green” start-ups. Moreover, and
within the previous standards, we can narrow the focus to those firms that present 2-3 years of
experience in the sector and that have achieved an average of 300.000€ in annual revenues since
this kind of companies usually have a solid online presence, a unique or highly in-demand
product, a strong brand identity, and a clear understanding of their target market that provide
them with consistent revenue streams.

Furthermore, in the realm of the “perfect customer” for GreenGuideSAS, we have the ability to
divide the pre-defined market into distinctive sectors. This allows us to pinpoint the unique
requirements of each group and create a customized, optimum solution for their individual
needs. Therefore, we define and describe the following 4 segments:

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1. Sustainable fashion startups: including startups that develop “green” clothes, accessories,
and make-up.

2. Sustainable food startups: including vegan, vegetarian and sustainable food in general

3. Naturalism activities startups: firms that offer activities such as yoga, meditation or hiking
and the places related to the development of those.

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 4. Startups that look for spaces where they can allocate their workshop to develop their

activities.

2.2. PRICING STRATEGY

As Neil Patel mentioned in his book The Definitive Guide to Growth, "The most important thing
about pricing is to make sure your price fits your positioning.". Our pricing strategy is highly
related with this quote; since we try to adopt a corporate philosophy based on the development,
definition, and communication of our value proposition to our costumers, highlighting our brand
identity since, by having a clear brand identity, businesses can ensure that their pricing aligns
with their overall brand positioning. In the case of GreenGuideSAS, the positioning is clearly
established: we focus on green-retail startups that are aiming to find the best location to situate
their physical store. Then, and related with pricing terms, we need to consider 2 main points:

A) Our value proposition differs from the one proposed by our current competitors,
since we focus on serving green startups to expand their business and not in
attending to large multinationals. In this sense, we operate in a totally different
market sector comprised by small companies that present great differences with
MNEs. Then, the price a startup will be willing to pay for a service like GreenGuideSAS

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 is very different from what an MNE might pay. As a professional company we must
be able to set an affordable price for this type of emerging firms.

B) Although our suggested price is quite below than the one offered by our
competitors, we bear in mind that we don’t want to compete in the market as
competitor-led company or as cost-leader. In this sense, we remark that our price
will be always based on the value that we offer to our customer.

Therefore, we can define our initial pricing strategy as VALUE-BASED since it involves pricing the
product based on how it benefits the customer. In the case of GreenGuideSAS, it is going to help
consumers to save money and time and help them to make money. As we are introducing a
valuebased strategy we also need to assume that in the most cases buyers have a major
influence over our pricing strategy. Considering this factor, we will also implement a DECOY
PRICING strategy. To do so, we will introduce 3 different price options to the costumers and each
of them will include distinctive features. The price options are the following ones, showed below:

In this case, we include the third “Premium” option to our pricing options since it does not really
fit with a major part of our targeted consumers, but it makes the “Advanced” option, the one
that we are willing to sell, look much cheaper and more affordable for the consumer. Therefore,
we strongly support that a combination of a value-based strategy and a decoy pricing strategy is
the best to approach the market and get the highest possible revenue.

Finally, it’s important to sum up all the factors that comprise the revenue drivers of
GreenGuideSAS which are the key to create a consistent flow of revenue streams. We can see
this summary in the Figure 2 of the Appendix

2.2.1. MARKET RESEARCH

Economics is all about finding the right market size for a company, in this sense it's like a
fisherman who can only catch a certain number of fish based on the size of their net. In the case

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of GreenGuideSAS, defined sustainable retail startup, success depends on understanding our
Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable
Obtainable Market (SOM). By doing so, we can position ourselves strategically to capture a
lucrative slice of the market and maximize revenue. So, just like a fisherman who knows the
perfect net size to catch the biggest fish, GreenGuideSAS must be laser-focused on its market
size to reel in our desired profits.

In this sense, is basic to identify the subgroups of our market and its size. In the case of
GreenGuideSAS the TAM, SAM and SOM are defined as the following:

TAM → it covers Europe, particularly those Northern

countries with a high level of
environmental consciousness such as Germany,
Norway or Denmark. This represents a large and
growing market opportunity, as more and more
consumers become aware of the impact of their
purchasing decisions on the environment. To be more
specific, it represents a total TAM size of 334,5M of €
with a CAGR of 16,4% from 2021 to 2026. Moreover, ,
the firm presents a unique and innovative
business model that has no direct competition in this area. Its access to valuable data and
personalized consultancy service and its easy adaptability to different environments make it a
compelling proposition for sustainable retail startups looking to optimize their physical locations
and increase their profitability.

SAM → it covers Spain major cities such as Barcelona, Madrid, Málaga, and Bilbao, which are
home to a growing number of sustainable retail startups. These cities have a high concentration
of entrepreneurs and investors interested in sustainable business models, making them a
favorable market for GreenGuideSAS's services. Some of the most recognized accelerators in
Spain include: Andalucía Open Future, Demium Startups or SeedRocket. Additionally, Spain's
growing interest in sustainability and green initiatives makes it an ideal market for
GreenGuideSAS's innovative approach to sustainable retail. While there may be competition in
the market, GreenGuideSAS's unique combination of data-driven analysis and personalized
consultation sets it apart from other players in the field.

SOM → comprises the city of Valencia, with a particular focus on the startup hub of Lanzadera.
Lanzadera provides an ideal environment for startups to flourish, with access to mentoring,
financing, and networking opportunities. This means that there is a high concentration of
innovative and ambitious entrepreneurs in the city who are looking for new ways to grow their
businesses sustainably. GreenGuideSAS is uniquely positioned to serve this market, as it provides
a much-needed service that is currently not available in Valencia. By using data analysis and
machine learning, GreenGuideSAS can help sustainable retail startups find the most profitable
locations for their physical stores, ensuring their success and giving them constant feedback on
their profitability. This personalized and automated consultancy service is exactly what startups
in Valencia need to thrive, and GreenGuideSAS is the only company that can provide it.

(In Figure 3 of the Appendix these subgroups are better displayed in graphic format)

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Once the subgroups in which the market is fragmented have been defined, we can start
calculating our potential market size. Referring to this point we have estimated the approximate
market share that the firm would be able to capture from 2022 to 2026 as we can see in the
following Figure:

Also, we can better appreciate the sustained growth of the market in the following graph:

It’s important to remark that this numbers are

not 100% reliable. All the data has been
extracted from official forums such as the INE,
but we should consider the key assumptions
included in the previous table, as they may
include some hypothesis that are difficult to
verify.

Now that we have identified a suitable and well-defined target market it is time to think about
what possible share of this market can you realistically expect to capture. We can do this by
applying 2 different methods:

1. TOP-DOWN APPROACH
A top-down approach estimates potential revenues based on market analysis and
perceptions of demand. It starts by estimating the size of the target market and predicting
the fraction of the market that the company can capture. This approach is suitable for
markets with clear definition, making it possible to make accurate market share predictions.
It is particularly relevant for platform-based business models, where benefits are
concentrated with one or two big players. However, it is not appropriate for startups
targeting very large markets relative to their size, as accurate market share predictions may
be difficult.
We have also calculated the revenue projections for GreenGuideSAS by applying this
method. Once again, we’ve introduced some key assumptions to do the calculations (as we
can appreciate in the following table.
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2. BOTTOM-UP APPROACH
The bottom-up approach focuses on estimating revenue based on the supply-side logic,
which assumes that revenue is constrained by operational capacity. To estimate revenue, we
must determine our unit of sales, estimate the number of units expected to sell, and
determine the price using primary and secondary research. The number of units sold is then
multiplied by their average price, while accounting for discounts and returned goods. Lastly,
revenue growth over time is predicted.

We utilized this method to calculate revenue projections for GreenGuideSAS, and

incorporated several key assumptions into our calculations, aiming to make them as accurate
as possible. However, these assumptions may not entirely reflect the reality of the market,
as shown in the following table.

3. COMBINATION OF TOP DOWN + BOTTOM UP

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 Combining both estimates in the equation: S=C/M can be considered a very good practice as
it provides a way to check for any inconsistencies in your calculations. In this sense, we can
compare the results by making this mathematical calculation and by comparing the results
previously obtained in the following graphs.

(Important to remark that we’ve only

considered the Spanish market to COMPARISON OF RESULTS BETWEEN
make these calculations since is our BOTH METHODS
first market to focus and the data €1.000.000,00
obtained is more reliable since the €500.000,00
target to treat is smaller)
€-
2022 2023 2024 2025

Bottom up reenues Top down revenues

2.2.2. COMPETITOR ANALYSIS AND COMPETITIVE POSITION

In today’s fast-paced business world, it’s crucial to stay ahead of the competition. One effective
way to gain an advantage is to conduct a competitor analysis. By analyzing the strengths and
weaknesses of your competitors, we can better understand the market landscape and identify
areas where we can differentiate. In the following lines, we will take a deep dive into the
competitive landscape of our industry and provide insights on our key competitors, their
strategies, and how we can leverage this information to strengthen our own position in the
market.

In our research, we have identified 4 main competitors for GreenGuideSAS that offer
locationbased analysis and data-driven insights to retail competitors. It is important to note that
all the competitors we will be discussing are considered potentially direct for GreenGuideSAS,
as they offer similar solutions but are not targeting the same customer base and have a different
approach to the market, as we will observe in the following analysis. The following section will
provide an in-depth analysis of each of these competitors and their respective strengths and
weaknesses:

PLACER.AI → is a location analytics company that provides businesses with real-time

insights into consumer behavior and foot traffic patterns. Their platform leverage’s
location data from mobile devices, GPS, and Wi-Fi to track and analyze consumer movement,
enabling businesses to make data-driven decisions on marketing, site selection, and other key
business strategies. Placer. Ai’s platform offers a wide range of features, including foot traffic
analysis, customer segmentation, competitor analysis, and predictive analytics. Their technology
has been utilized by a variety of industries, including retail, real estate, and hospitality, to gain a

16
competitive edge and better understand consumer behavior. In the Figure 4 located in
theAppendix we deep in the strengths and weaknesses that this company presents.

ZEUS SITE → is a location intelligence and analytics company that offers businesses and
organizations the ability to gain valuable insights from location data. Their platform
combines artificial intelligence, machine learning, and big data analytics to provide realtime
insights into consumer behavior and market trends. With their location intelligence platform,
businesses can understand consumer movement, measure foot traffic, and optimize site
selection. The platform also offers features such as competitor analysis, market segmentation,
and predictive analytics, helping businesses make data-driven decisions and gain a competitive
edge. Zeus Site AI’s technology has been utilized by a variety of industries, including retail, real
estate, and healthcare. In the Figure 5 located in the Appendix we deep in the strengths and
weaknesses that this company presents.

BUXTON CO. → is a data analytics and consulting firm that specializes in helping
businesses make data-driven decisions to drive growth and profitability. Their
platform leverages consumer and location data to provide insights into consumer
behavior and market trends. Their technology offers features such as customer
segmentation, predictive analytics, site selection, and market optimization. With their
location intelligence platform, businesses can better understand their target audience
and improve marketing strategies, drive sales, and optimize store performance. Buxton
Co. has been utilized by a wide range of industries, including retail, healthcare, and real
estate, to gain a competitive edge and make strategic decisions based on data insights.
In the Figure 6 located in the Appendix we deep in the strengths and weaknesses that
this company presents.

GEO IQ → is a location intelligence and analytics company that offers businesses and
organizations the ability to gain valuable insights from location data. Their platform uses
a combination of geographic information systems (GIS), artificial intelligence, and
machine learning to provide real-time insights into consumer behavior and market
trends. The platform offers features such as geospatial analysis, customer segmentation,
and site selection optimization, helping businesses make data-driven decisions to
optimize their operations, drive sales, and improve customer engagement. GeoIQ’s
technology has been utilized by a variety of industries, including retail, real estate, and
government agencies, to better understand their audience and improve business
outcomes. In the Figure 7 located in the page X of the Appendix we deep in the strengths
and weaknesses that this company presents.

Once we have analyzed our competitors, we need to defend that our value proposition has the
capacity to satisfy our market by meeting the top priorities of the early adopters. To do so, we
must be capable of reflecting the unique skills, abilities, and resources of GreenGuideSAS and
relate those with the most extreme pain of our customers. our products or services instead of
sticking to their current choices. Rather than just trying to outperform competitors, our main
focus should be on offering innovative solutions that are highly valued and in high demand. It's
essential to create a unique selling proposition that sets us apart from our competitors and
17
attracts customers to our offerings. Ultimately, the
goal is to establish a loyal customer base that
recognizes the value of our solutions and chooses
them over alternatives in the market.

To show our competitive advantage, display our

competitive position and highlight the uniqueness of
our SAS we’re going to use the following value curve
that reflects our position in the market relative to
customer needs and competitors’ capacities:
By observing the graph below we can deduce that
the GreenGuide SAS presents
some general advantages in comparison
with its competitors. We can specially remark the
extreamly easy use that the firm presents, the affordable price and the great strategic support
that the company provides
regarding ita competitors. On the other hand, the competitors count with a little
advantage in the availability and use of data and in its functionality, probably thanks
to their high investments in R+D and their experience in the sector.

Moreover, we can also consider that the timing of entering in the market is perfect since it is a
small market growing quickly since it combines the use of data (technology) and the
sustainability awareness (change in user behavior). In other words, we can say we have found
the perfect market for our business idea, with ideal timing. Despite some larger incumbents
being active, our timing is advantageous, potentially rendering them unable to respond to new
trends.

On the other hand, we may also consider other barriers to entry that may stop the development
of the service or paralyze it such as: complex regulatory requirements, the need for extensive
market research, limited access to distribution channels, and the need for specialized knowledge
or skills.
2.3. REVENUE MODEL

2.3.1. ANALOGS, ANTILOGS & LEAPS OF FAITH

Imagine building a towering pyramid, not made of stone or brick, but of all the needs that make
us human. At the base of this pyramid lie the fundamental necessities for survival: air, food, and
water. Without these, we cannot thrive or grow. In the same way, businesses require a foundation
for growth and success, and that foundation is revenue. Revenue is the lifeblood of any business,
just as air, food, and water are to our existence.

By revenue, we are talking about money given to you by customers in return for your solution to
their problem. And by customer, we mean the one who pays for whatever it is that you sell
Crafting a successful revenue model that works requires to answer fundamental questions such
as: who’s going to buy from you?, what will they purchase?, how frequently will they buy, how
much will they spend, and how soon will they make a purchase?, at what price will they be willing
to buy? Finding the right answers to these questions is no easy feat, but it’s vital to determine
where our revenue will come from and why.

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To answer these
questions, we can find
support in
relevant analogs
and antilogs,
identifying our leaps of
faith for our revenue
model as shown in the
presented table bleow.
However, is not enough
to answer these
questions by using these
tools, we will also have
to test hypotheses to
either prove or
refute our
assumptions. To do so,
we can use both the successes and failures of others to make better
decisions, develop and test our hypotheses and shape our business
John Mullins and Randy Komishar tell us that “the beauty of the analogs, antilogs and leaps of
faith method is that by using other people’s experiences to shape your decision making, you
have the benefit of their mistakes, their blood, sweat, and tears”.

2.3.2. REVENUE MODELS TO TEST

In the case of GreenGuideSas, an startup that operates totally online and its data.based we
though that we could only consider to complementary business model:

a) SUBSCRIPTION-BASED MODEL: GreenGuideSAS will likely be based on a subscription

business model because out service involves providing ongoing and regularly updated
information to the clients. In this model, customers pay a regular fee (usually monthly
or annual, in our case is monthly) to access the service or product. In the case of
GreenGuideSAS, sustainable startups will likely need to continuously monitor and
analyze data on their store locations to ensure they are profitable and sustainable.
Therefore, we can provide ongoing support and feedback to its clients through its online
service, which would require a subscription model to sustain itself. Additionally, a
subscription model can also help to generate recurring revenue and provide a
predictable cash flow for the company, which is particularly important for startups.

b) AFFILIATION BUSINESS MODEL: GreenGuideSAS can benefit from an affiliation business

model by partnering with platforms like Idealista to offer a wider range of options for
green startups looking for physical store locations. By acting as an intermediary,
GreenGuideSAS can earn a commission on the transactions between the startups and
Idealista. This model also promotes the connection and collaboration between
businesses in the same industry, which can lead to more opportunities and growth for
all parties involved.

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 i. COST DRIVERS
Now that we have begun to look at some pricing strategies and revenue drivers and models
it is also beneficial at this stage to evaluate the cost drivers for our start-up. Developing and
understanding of what factors drive costs are equally as important as those that drive
revenue. When thinking about costs there are three main types: COST OF GOODS SOLD,
OPERATING EXPENSES AND CAPITAL EXPENDITURES

Considering each of these categories we have provided an approximated estimation for

different aspects of the company.

The first think we considered where the overall cost that the company will insure in the first
year. These include COGS and OPERATING EXPENSES for this first period, getting a result of
total cost for the first year of 129.600. (The costs are disclosed in the Figure 8 provided in
the Appendix)

Then we also considered the bottom-up cost projections for spanish market. To do so we
also included some key asssumptions to approximate our cost the closest to reality. You can
find these estimated projections in the Figure XX of the appendix.

Finally, we’ve also considered other important questions related with cost management such
as the annual payroll costs by staff time and the composition of the operating costs as we
can appreciate in the following graphs:

You can obtain a more detailed description of how these costs have been calculated and
considered in Figure XX and Figure XX of the Appendix

ii. CONSUMER ADQUISITION COST AND COSTUMER LIFETIME VALUE

Once all the factors that comprise revenue and costs have been defined, is time to focus on how
our nº of costumers, Consumer Acquisition Cost and Costumer Lifetime Value affects the
profitability of the business in the long term. To do so, we have calculated both, the CAC and the
CLV.

CAC
CAC stands for Customer Acquisition Cost, which is the cost a business incurs in order to acquire
one new customer. It is an important metric that helps businesses understand the efficiency and
effectiveness of their marketing and sales strategies.
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To calculate the CAC for GreenGuideSAS, we need to divide the total marketing costs by the total
number of customers acquired during the same period. In this case, if the marketing costs are
valued at 11.000 and the total number of customers is 35, then the CAC would be:

CAC = 11.000 / 35 = 314.29€

CLV:
CLV stands for Customer Lifetime Value, which is the estimation of the total amount of revenue
a customer will generate for a business during their entire time as a customer. To calculate CLV,
we can use the following formula:

CLV = m*L – AC
m= contribution margin or gross margin L= expected
purchasing life of a costumer AC= costs of acquiring a costumer

We estimate a gross margin for 2023 of 38. 400€ as shown in the Figure XX of the appendix. Then
we also considered that the average purchasing life of a costumer of a SAS is a mean of 2 years.
Finally, and including the cost of acquiring a costumer we obtain the following CLV:

CLV = 38.400*2years – 314,29 = 764.286€

Finally, to evaluate the overall performance of GreenGuideSAS, we need to compare the CAC
and CLV to see if the company is generating enough revenue from each customer to cover the
cost of acquiring them.

The CLV of 764.286€ indicates that each customer is worth a significant amount of money to the
company over their lifetime. This is a positive sign as it suggests that the company is generating
a substantial amount of revenue from each customer.

However, the CAC of 315€ is relatively high compared to the CLV, which means that the cost of
acquiring a customer is quite high compared to the revenue they will generate. This is a negative
sign as it indicates that the company may be spending too much on marketing and sales
activities.

Therefore, we should focus on reducing the CAC to increase profitability and make the most of
the high CLV. From GreenGuideSAS we should also consider optimizing its marketing and sales
strategies, improving its customer retention rates, and exploring new customer acquisition
channels to lower the CAC.

2.4. IMPACT

i. CONTRIBUTION TO SOCIETY AND ENVIRONMENT

GreenGuideSAS is not just a company, it's a movement towards a sustainable future. By helping
green startups find the best locations for their physical stores, we are not only contributing to
the success of their businesses, but also to the preservation of our planet. Our services empower

21
green entrepreneurs to make informed decisions that benefit not only their own bottom line,
but also the environment and society as a whole.

At GreenGuideSAS, we believe that a sustainable business is a responsible business. That's why

we strive to minimize our own environmental impact by promoting remote work and reducing
unnecessary travel. We also support local communities by prioritizing the use of locally sourced
materials and services whenever possible.

We are not just a company, but a community of like-minded individuals committed to creating a
better world for ourselves and future generations.

ii. INDUSTRY NORMS

Industry norms are the standards and practices that are generally accepted within a particular
industry. For GreenGuideSAS, as a company operating in the global location market and using
data processing and management, it is important to comply with the industry norms related to
data privacy and protection.

This includes regulations such as the General Data Protection Regulation (GDPR) in the European
Union, which outlines the requirements for handling personal data of individuals within the EU.
Other industry norms related to data privacy and security may include adhering to best practices
in terms of data encryption, blockchain and secure storage,

Furthermore, as a company focused on sustainability and environmental impact,

GreenGuideSAS must also comply with industry norms and regulations related to environmental
protection and sustainability. This may include complying with local and national regulations
resource use, and implementing environmentally-friendly practices within the company's
operations among others.

Overall, adherence to industry norms related to data privacy and environmental sustainability is
crucial for GreenGuideSAS to establish trust and credibility with its customers, stakeholders, and
the wider community, and to operate in a responsible and ethical manner.

3. MOCK-UP: PROTOTYPE AND VALIDATION OF THE CONCEPT

3.1. MOCK-UP (PROTOTYPE AND MVP)
The prototype We have developed begins with the idea of building something easy-to-use and
clear, so the company doesn’t waste time in unnecessary processes. You can check the MVP in
the figures included in the appendix:

Our software is divided into 3 phases:

- First phase: Discovering the potential costumer of the company so We can start
introducing a filter to the scope of the map and classifying the company the different
levels. With this first process, the software starts choosing those placements which
coincide in their characteristics with the election made by the company.

22
 - Second phase: Now, the software focuses in tangible characteristics as squared meters,
price and city.
- Third phase: Presentation of results by % of reliability and coincidence with the business
and the company chooses which one fits better.

To finish with this part, the databases included are going to be:

1. Data provided by localization websites like IDEALISTA

2. Own databases created to differentiate the different potential customer a company may
have taking into account: Type of customer, key words and operating sector.

3.2. FEEDBACK FROM INTERVIEWS:

The most important points from interviews are highlighted in the following paragraphs: Clotsy
brand: The initial idea was developed for them to explain how it would work the software in
their case, and they said that they would surely have used it if it existed before.

Salad planet: It is a sustainable startup focused on offering salads and wraps, providing a wide
range of combinations and free personalization, which has a physical store. The CEO supports
the idea, since he had to spend hours each day for two weeks taking notes about how many
people pass through a specific street, how they are, etc. However, he insisted that this is an
expensive service for an incipient startup, so it would be better to offer it to those ones which
already have between two or three years of experience.

Natural fonan: It is a firm which offers natural shakes that substitute breakfast, made from
natural ingredients. They sell their products on physical stores that already exist, they are not
interested in creating one from zero. Therefore, nowadays their clients are the ones selling the
product, so the difficulty is to find those clients because not every physical store want to sell
them. In this sense, adding to our idea a B2B part would attract firms such as Natural Fonan.

3.3. HOW OUR IDEA HAS CHANGED DUE TO ANALYSIS AND FEEDBACK
First, it is a good idea, but the value proposition could have a broader focus. Since it is an only
used service, consultancy may be implemented to help startups and SMEs which have used our
service by giving them advice in order to increase revenues and grow in the market.

Furthermore, it is more convenient that our customer has already two or three years of
experience, so they will not have the problem of paying the monthly or annual subscription.
Therefore, they will still being sustainable startups located in Valencia, especially in the
Lanzadera hub initially, which are looking for the best location to put the physical store, including
that recommended experience of two or three years. Therefore, our value proposition has
changed and also we have been able to verify and check our theories:

3.4. NEXT STEPS

1. 04/2023: Contrast the idea with more startups and SMEs in order to define
improvements for the software.
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2. 06/2023: Develop the actual website which is based on the mock-up presented.
3. 06/2024: Have already provided ten firms with our service.
4. 09/2024: Analyze the data collected from the interviews with startups and SMEs and
implement improvements to the Saas.

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 APPENDIX
Figure 1. How these SDG objectives relate to GreenGuideSAS

25
 Figure 2. Revenue drives schema

Figure 3. Market size subgroup are displayed in graphic format

Figure 4. Representation of advantages and disadvantages of Placer A.I.

26
 Figure 5: Representation of advantages and disadvantages of Zeus Site.

Figure 5. Advantages and Disadvatages of businesses

Figure 6. Repr esentation of advantages and disadvantages of GEO IQ

27
Figure 7. Representation of advantages and disadvantages of GEO IQ

28
Figure

8. Total estimated costs for the first year

Figure 9. Homepage of GreenGuideSAS Website

29
Figure

10. 1st phase knowing our customer

Figure 11. 1st phase about the type of potential customer

12. 2nd Phase, knowing where to place the city

30
Figure

Figure 13. Knowing its preferences and budget

31
Figure 14. Different options based on reliability level

Figure 15. Final Decision

32