Europea's historical account financials are from 11 January 2016 to 30 September 2016.
The team decided to focus on Paris in 2016 to test their services, as it is the most sought-after destination in Europe.
After 9 months of operations, the company reached €432,603 in sales turnover (total rent including Europea Commission) with €68,886 in revenues (Commission Europea only) for the company.
Main costs are IT costs.
- €26,809 of debt refers to a 3-years bank loan of €30,000 from BNP Paribas Fortis.
- €33,470 of commercial debt refers to remaining payments of future reservations not yet paid by clients (usually clients pay a deposit of 50% when they book, then they pay the remaining 1 month prior to their arrival).
The financial plan for the years 2016-2017-2018, developed by Europea's management team, is presented here below:
Revenues drivers in 2017
PRODUCTS AND SERVICES: In 2017, Europea will increase properties in London, Rome, Barcelona, Lisbon, Brussels and Munich. The financial goal is to duplicate revenues by adding 50-150 properties in each city.
SUPPLY VIA INNOVATION: In 2017, they will focus their attention on B2B access including travel agencies/agents, relocation agencies/agents, wedding agencies, fashion agencies and many others.
MULTI DESTINATION PACKAGES: The broad range of apartments and destinations offered by Europea Residences will allow multi destination packages across Europe and Asia.
ASIA SALES OFFICE: A time difference of 8 hours between Brussels and Tokyo has frequently resulted in missed sales. Opening a sale office in Asia in 2017 will allow a more responsive reservation service to their clients/partners. It will strengthen the bonds with their partners and direct clients, and give the company access to a niche segment of the market.
Cost drivers in 2017
BRUSSELS OFFICE: The company will need to expand in Brussels to a larger office, with an anticipated cost of €15,000 in 2017.
IT INNOVATION: In 2017, investments will be dedicated to the head office including in IT investments to reach a greater level of automatic connectivity (API) with partners, and web marketing tools to create a community of users. 2017 anticipated costs are €50,000.
ASIA OFFICE: Anticipated costs in Tokyo are €40,000, which is reduced due to support of the Japanese Government. 120 reservations from Asia are expected in 2017, with a reach goal of 250.
LAUNCH OF A MARKETING CAMPAIGN: The company will aim to create a safe and welcoming image on the internet through social media and a specialised magazine. Anticipated cost: €30,000.
In order to develop the company in the best possible conditions, the founder Yann Le Metayer will not receive a salary until the end of 2017.
Break even volume
Incomes of the company already covered its costs after 3 month of activity.