Bange Bau

Business Plan

Bange Bau AG
Business Plan
Max Bangemann

Contents
1. Executive Summary

Page 2

2. Products and Services

Page 3

3. Market Analysis

Page 5

4. Strategy and Implementation

Page 7

5. Company and Management

Page 10

6. Financial Plan

Page 12

7. Works Cited

Page 14

Bangemann 1

Bange Bau AG
Business Plan
Max Bangemann

Executive Summary
Currently Germany is facing major issues to do with the influx of refugees who are seeking asylum in
Germany. By the end of 2015, there will be around 800,000 refugees who will be seeking shelter in the
borders of Germany. This creates a diverse range of problems that the Government will have to face.
One of the major and pressing issues, is how to house many of the refugees who plan to stay in Germany
for the long term. Currently there have only been attempts at creating a housing solution to this problem,
for example by refurbishing old unused town houses, or through housing refugees in modified
containers. These solutions have been ineffective and are relatively expensive to maintain and produce,
and most importantly do not take into account many of the refugees that aim to stay in the long term.
That is why Bange Bau aims to tackle this issue by providing a new approach to the ongoing housing
problem.
The product that Bange Bau provides, is a cost effective easy to manufacture house which uses modular
design as well as German and Syrian architecture. With this Bange Bau also contracts different
companies in order to manufacture the house in an effective cost effective manner. The house is aimed
at local district Governments in Germany, and through the government would provide the housing
solution to refugees who are seeking to stay in the long term in Germany.
This business plan will delve into the different aspects of how Bange Bau would be operated as a
company, the benefits of investing, as well as the financial projection of the company over the next five
years.

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Bange Bau AG
Business Plan
Max Bangemann

Products and Services

The innovative solution that Bange Bau provides, is a sustainable easy to manufacture house that
incorporates both modern German as well as traditional Syrian architecture, as well as a modular design.
In this way many of the problems that have been faced by the refugees as well as the district
governments can be alleviated. The name of the house that would be produced is licenced under
BHaus. Through sustainable materials as well as alternative manufacturing and construction methods,
the cost of the houses have been significantly reduced for district governments; furthermore, with the
use of both German as well as Syrian architecture styles, as well as a modular design, refugees will be
able to feel a cultural connection to the house, and the house can be built according to the size and the
needs of individual families without raising the costs of the house significantly.
Figure A. Below are the first developmental software designs of the BHaus. The software designs
show the main structure of the house only (this includes that main frame, walls and windows).
Figure A.1. Front view of model house.

Figure A.2. Back view of model House.

With the product shown in Figure A, the first stages of the design of the building have been completed.
The main benefits of using this the BHaus design are numerous and are listed below:
1. The main structure of the product would be made of concrete, and the support structure and
frame would be reinforced through the use of aluminium and steel. The use of materials of the
structure of the house would be highly durable, and would be able to last a minimum of 7 years
in the German climate with minimal maintenance.
2. The house would first be prefabricated and sections of the house produced in factories close to
the appropriate construction site, and finally the house would be assembled using the separate
sections of the house at the construction site. Through this construction method, building costs
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Bange Bau AG
Business Plan
Max Bangemann

of the house would be able to be kept low and the production numbers of the house would be
able to be kept at a steady pace.
3. Through using both the simple modern German architecture, as well as aspects of the traditional
Syrian architecture, for example the open atrium space that can be seen in Figure A.1., taken
from a Syrian courtyard theme, refugees would be able to feel culturally connected to the house
while at the same time appreciate the German architecture, this would also work vice versa with
the local German population.
4. With separate sections of the house being produced, the houses design can be modular. This
allows the same design of the house to be altered depending on the number of occupants and
the needs of the occupants of the house. This allows for a wide range of designs for the house,
while at the same time keeping production costs low.
With the product outlined above, Bange Bau would base its business on architectural services (as
outlined above), but furthermore the company would provide logistical support when manufacturing
the BHaus through organising different manufacturing locations around Germany and providing these
location with the exact specification to produce the BHaus. In addition Bange Bau would work in
partnership with district governments to offer this solution to districts which are currently faced with
the problem of housing.
Bange Bau would be a local business, which would only operate nationally in Germany, though if the
product is well received in different states and districts in Germany, Bange Bau would consider to
expand to different nations across the globe which are faced with the same issue of housing migrants
or refugees. The company would start off with 10 employees which would cover the initial stage of
operation within Germany; the expansion of staff would depend on different factors such as demand for
the product the number of manufacturing locations and global expansion.

Bangemann 4

Bange Bau AG
Business Plan
Max Bangemann

Market Analysis
The main target market that Bange Bau is aiming to reach are two main streams of people, firstly clients
which would stay in the house and in the long term would maintain the house, these clients would
mainly be refugees who are currently seeking a method of housing in order to stay in the long term in
Germany. The second target market that needs to be addressed is the local district Governments in
Germany, and the respective department of those district governments which would be in charge of
handing the current situation of incoming refugees. Bange Bau would be able to market the solution
directly toward the clients (refugees), and this would create further interest in staying in the long term
in Germany, though many of the refugees would not be able to fully pay for such housing, and thus
addressing this solution to district governments is important due to the subsidizes that the Government
would bring in support of housing the clients in more effective manners.

Income

and/or

spending habits

Target Market 1

Target Market 2

Clients (Refugees)

District Governments

Mainly low income, and do not have

The

a high spending power.

Germany has allocated Euros 17

national

government

in

Billion to ward aid and integration of

refugees in Germany.
Market size

From January to October of 2015, The

there were 243,721 Syrian refugees
seeking

asylum

in

German

Government

only

operates within German borders.

Germany

according to the Interior Ministry.

Location

The main locations of refugees

Nationally in Germany.

seeking asylum in Germany are

Munich,

Frankfurt,

Berlin

and

Stuttgart.

Many refugees who are coming to Germany in order to seek a better life come with the whole family,
these family sizes can vary greatly from two members to seven members. Thus the use of the modular
design would be able to support all sizes of families which wish to be housed in Germany. The main
areas where refugees are located are I urban areas, where most arrive and go through the application
process. These urban areas as stated above are Germanys largest cities, Munich, Berlin, Frankfurt and
Stuttgart, though once refugees are through the application process, many of the refugees are allocated
to different towns and districts depending on the space available by the government.
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Bange Bau AG
Business Plan
Max Bangemann

Through a partnership with the German government, Bange Bau would be able to reach the necessary
customers needed in order to be able to create a successful business. Furthermore the local district
Governments would be able to use the architectural services provided by Bange Bau through a small
fee. In this way the government would benefit from a low cost, but reliable solution and the refugees
would benefit through the housing solution provided. In this way both target markets would be satisfied.
Currently there are no competitors in the market that Bange Bau would enter, as up till the current
moment the German government has not worked with any architectural company in finding housing
solutions. This would provide Bange Bau with 100% of the market share when first entering the market.
Though this may be threatened due to the possibility of other architectural firms entering the market,
but through smart investments and continuing innovations Bange Bau would be able to stay competitive
in that market.

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Bange Bau AG
Business Plan
Max Bangemann

Strategy and Implementation

In order for Bange Bau to be able to run a successful business and attract the attention and cooperation
of district governments, the company needs to be organised in an effective manner. The company Bange
Bau would consist of three main branches that would be in charge of separate tasks, all together the
three branches would work together to run the business. The three departments would be Design,
Contractor Management and Finance and Admin. In conjunction with the three branches the company
would also have a project management team and executive board, all these branches of the company
will be expanded on in the Company and Management section.
Marketing strategies need to be identified and set up in order to advertise to both of the target markets.
Below Bange Bau will be put through a strengths, weaknesses, opportunities and threats analysis
(SWOT), in order to identify the strengths and weaknesses that the company has:
Figure B. Strengths, Weaknesses, Opportunity and Threats (SWOT) analysis of Bange Bau.
Strengths

Weaknesses

Opportunity

Products and - The BHaus is an

- Materials used -

Services

in

innovative

solution

Through

Threats
the

the modular design, a

Other

architectural

that has not yet been

construction

used in order to tackle

the BHaus may the product can be

interested

the

not be viewed as created to suit the

adopting the same

faced by refugees.

sustainable

neds of refugees

solutions.

- The product includes

enough.

from

housing

crisis

sustainable materials

of further line up of

firms

may

be
in

different

nations.

and is cost effective

and

simple

to

manufacture.
- The BHaus provides
simple design with
high

functionality,

especially

with

the

modular design.
Marketing

- The BHaus is a

- Bange Bau is a -

highly

start-up company, showing

innovative

Through
the

Other

Architectural

solution to a problem

and thus trust may successes of first

companies

that

be lost as the houses

launch

has

not

been

being

may

Bangemann 7

Bange Bau AG
Business Plan
Max Bangemann

addressed

by

any

company could be used,

architects towards the

seen

as company

German Government

inexperienced.

yet.

the

advertising

could

campaigns

advertise

the

reliability of the

against

Bange

Bau.

product.
Staff

- The staff that would

- Starting with a - Incentives can

- Staff may not

be hired would be

small amount off be put up for

see

professionally

staff may be a FTEs to stay at

benefits in staying

educated in their field.

challenge for each the

company,

at the company,

- Staff would be paid

department.

such as bonus pay

thus some FTEs

with a living salary

for

may leave.

with differing levels

and securities.

performance

short

term

above the minimum

wage depending on
level in company.
Market

- Currently there are

- Refugees may -

many refugees who

not

would wish to stay in

money needed to of

Germany in the long

purchase

term, but do not have

BHaus

the means to purchase

from

a property.

company.

The

government
currently

German
is

have

Through

the

the growing numbers

The

German

government may

refugees

not be willing to

the seeking asylum in

invest money in

directly Germany,
the company
expand

the
could

sustainable
housing refugees.

its

product range to
suit more needs.

struggling

with housing many of

the refugees entering
Germany.

Through the SWOT analysis that has been conducted above, it is safe to say that in the current situation
Bange Bau would be able to be run as a profitable and sustainable business. Overall the strengths of
each factor outweighs the weaknesses. Some of the factors that will ensure the companys success are
product and services and marketing, these are the two strongest points, as the product that is being
offered is unique on the current market and marketing such a product would stand out from the
competition.

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Bange Bau AG
Business Plan
Max Bangemann

Some of the threats or challenges that the company would face in the initial stage of setting up the
company and starting operation is the competition, as well as the possibility that certain district
governments may not be willing to cooperate in the project. Firstly the competition (other architectural
firms) may adopt many of the ideas used by Bange Bau and use them in their own projects. Secondly
certain district government may say that their local community is not open to the idea of welcoming
refugees and using architecture to integrate and provide a house for them in Germany.

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Bange Bau AG
Business Plan
Max Bangemann

Company and Management

Bange Bau as discussed above will be operated through three main departments. The departments are
Finance and Administration, Design, and Contractor Management; the purposes of these departments
and the details of operation are listed as follows:
1. Finance and Admin
This department focuses on the accounting of the company as well as the Human Resources.
Within this department there would be four sub departments, though these departments would
be held by only two employees in the early stages of the company.
2. Design
This is the largest department of the company, and focuses on the architectural design of the
product as well as the electrical, structural and technical engineering aspects of the building.
This department of the company would be initially occupied by five employees.
3. Contract Management
This department is in charge or organising the contractors which would be collecting the
materials, manufacturing sections of the house, and constructing the building at different
locations.

President
Personal
Assistant
Finance and
Admin

Design

Contractor
Management

Accounting

Architectural
Design

Project
Management

Public
Relations

Structural
Engineering

Contractor
Procurement

HR
General
Admin

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Bange Bau AG
Business Plan
Max Bangemann
The key member of the company are listed below:

President Max Bangemann

Head of Finance and Admin - Clifton Todd
Head of Design - Joisse Laurencia
Head of Contractor Management - Kasey Andy

Bangemann 11

Bange Bau AG
Business Plan
Max Bangemann

Financial Plan
With a loan of Euro 1,000,000 Bange Bau aims to get the business running within the first quarter of
starting the business and would like to product the first houses within the second quarter. Through
financial projections the aim of the company is to pay back the loan within five years of starting the
business. The cash flow projections are shown below:
Cash Flow
Cash In
Product Sales
Loans
Interest Income
Equity
Total income
Cash Out
Spendings
Fees
Loan repayment
Asset purchase
Total spent
Cash Flow
Total Balance

Year 1
Q1

Q2

Q3

Q4

Year 2
Q1

Q2

Q3

Q4

Year 3
Q1

Q2

Q3

Q4

Year 4
Q1

Q2

Q3

Q4

Year 5
Q1

Q2

Q3

Q4

0 1,000,000 1,400,000 1,960,000 2,744,000 3,841,600 4,609,920 5,531,904 6,638,285 7,965,942 9,559,130 11,470,956 13,765,147 16,518,177 19,821,812 23,786,175 27,354,101 31,457,216 36,175,798 41,602,168
1,000,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,248
1,309
1,396
1,518
1,589
1,728
1,916
2,161
2,474
2,871
3,367
3,982
4,741
5,672
6,809
8,194
9,803
11,767
14,027
100,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,100,000 1,000,000 1,400,000 1,960,000 2,744,000 3,841,600 4,609,920 5,531,904 6,638,285 7,965,942 9,559,130 11,470,956 13,765,147 16,518,177 19,821,812 23,786,175 27,354,101 31,457,216 36,175,798 41,602,168
50,000 950,000 1,330,000 1,862,000 2,606,800 3,649,520 4,379,424 5,255,309 6,306,371 7,567,645 9,081,174 10,897,408 13,076,890 15,692,268 18,830,722 22,596,866 25,986,396 29,884,355
20,000
500
500
500
500
500
500
500
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
0
0
0
0
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
0
32,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
102,000 950,500 1,330,500 1,862,500 2,687,300 3,730,020 4,459,924 5,335,809 6,387,571 7,648,845 9,162,374 10,978,608 13,158,090 15,773,468 18,911,922 22,678,066 26,067,596 29,885,555
998,000
49,500
69,500
97,500
56,700 111,580 149,996 196,095 250,714 317,097 396,757
492,348
607,057
744,709
909,891 1,108,109 1,286,505 1,571,661
998,000 1,047,500 1,117,000 1,214,500 1,271,200 1,382,780 1,532,776 1,728,871 1,979,585 2,296,683 2,693,439 3,185,787 3,792,844 4,537,553 5,447,444 6,555,552 7,842,057 9,413,718

34,367,008
1,200
0
0
34,368,208
1,807,590
11,221,308

39,522,060
1,200
0
0
39,523,260
2,078,908
13,300,217

Amount (Euro)

Total Balance
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Quarters

The projections of sales for Bange Bau are EU 1,000,000 in the second quarter with the sale of 5 housing
units, each costing EU 20,000. Sales are expected in increase by 40% in the first two financial years
through each quarter and then growth is expected to stay at 20 % through each quarter in years three
and four, lastly sales are expected to stay at 15% each quarter in the fifth year of operation. The spending
is expected to stay at around 95% of the sales throughout the five years. The repayment of the loan is
expected to start in the first quarter of year two and be fully paid off by the first quarter of year five.
Below is the profit and loss chart, which outlines how the business will stay profitable throughout the
initial 5 year period of paying back loans:
Profit and Loss Statement

Year 1
Year 2
Year 3
Year 4
Year 5
Income
Sales Turnover
4,360,000 16,727,424 35,634,313 73,891,311 136,589,283
Interest Income
3,953
6,752
10,873
21,205
43,791
Expenses
Spendings
Fees
Loan repayment
Depreciation of Assets
Profit

4,192,000 15,891,053 33,852,597 70,196,745 129,759,819

21,500
2,000
4,800
4,800
4,800
0
320,000
320,000
320,000
80,000
6400
6400
6400
6400
6400
144,053

514,723 1,461,389 3,384,570

6,782,055

Bangemann 12

Bange Bau AG
Business Plan
Max Bangemann

Profit
8,000,000

Amount (Euro)

7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Year 1

Year 2

Year 3

Year 4

Year 5

Years

Through the projection assumptions that have been outlined above through the use of a cash flow table
as well as a profit and loss chart, the results have shown that the Bange Bau company would be able to
be run as a profitable business, while still providing an innovative easy to manufacture and cost effective
solution to local district governments who are in need of a housing solution.

Bangemann 13

Bange Bau AG
Business Plan
Max Bangemann

Works Cited
SWOT Analysis Worksheet. N.p.: SCORE, n.d. Word Document.
"Syrians in Germany." Wikipedia. Wikimedia Foundation, 12 Jan. 2016. Web. 02 Mar. 2016.
<https://en.wikipedia.org/wiki/Syrians_in_Germany>.
Target Market Data Worksheet. N.p.: SCORE, n.d. Word Document.
"2015 UNHCR Subregional Operations Profile." UNHCR. United Nations, n.d. Web. 02 Mar. 2016.
<http://www.unhcr.org/pages/49e48e5f6.html>.

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