Eco-Scape: Green landscaping and design

1. Eco-Scape: Green landscaping and design Prepared for: Irv Bieman HalaAnnabi Jane Sojka John Kiefer Kate Kiefer Prepared by: Dale Andrassy Jessica Fruchey Katie O’Brien Sarah Pels Michael Saul

2. Introduction Eco-Scapeis a sustainable landscaping and design business created for a sustainable community. The main goals off the business are the spread of green and clean ideals and practices and the creation of revenue and employment opportunities for the community in which it exists. This business has great potential for high scalability and hopes to expand outside its community to offer its services to others interested in an environmentally friendly landscape. The purpose of this report is to provide a business model for Eco-Scape. The report will be divided into four sections that will describe the business’ marketing mix according to the business’ target market, services provided, promotion strategy, and financial analysis. Industry Research and Analysis Supports the Need for Eco-Scape The creators of Eco-Scape performed extensive research on sustainable communities and how the landscaping industry fits into these communities.Research suggests that there are three main ideas associated with a sustainable community; environment, equity, and economy. These ideas must work together in harmony for a sustainable community to function correctly. It was also found that there are six main needs that need to be met within a community, these being food, energy, water, shelter, jobs and infrastructure. Eco-Scape brought these ideas together to create a business model that will support the economy and functionality of a sustainable community and create jobs while spreading sustainable goals and ideals to a broad audience. Eco-Scape’s Business Model: Four Landscape Service Segments Eco-Scape’sbusiness model is divided into service segments including basic lawn maintenance, sustainable landscape design, snow removal services, and a nursery. Ideally, all of Eco-Scape’s employees will come from the community where it is located. The employment model consists of four areas including administrative, maintenance, design, and nursery management. The core needs of the company require 29 employees and is highly scalable as the client base expands. Promotional Strategy Eco-Scape will use many promotion outlets to advertise the business. Fliers, yard signs, social networking tools, and a user friendly website will be created and used to attract customers. Eco-Scape has also picked a hypothetical location for their business to show the ease of promoting and encouraging green ideals in a city that is involved in these practices and the possibility for growth. Financial Analysis Finally, Eco-Scape did a financial analysis for the business. This includes costs associated with the initial equipment investment, annual energy expenses, annual employment expenses, forecasted sales breakdown, and a simplified income statement. Using these models, the report provides a break-even analysis of the number of sales that are required to cover costs of one year of operations. Based on these figures, it is apparent that the business will be profitable and add value to sustainable communities. After researching, creating a business model, and doing a financial analysis, it can be seen that Eco-Scape has the potential to grow and prosper as a premier sustainable landscaping business. The value Eco-Scape will add exists n its profitability, employment, and, most importantly, its continuous encouragement and influence on a sustainable and green way of living. Executive Summary

3. Table of Contents Introduction Sustainable Communities: Expressing the Need Eco-Scape: Business Model Maintenance Segment Design Segment Winter Services Segment Nursery Segment Employment Structure and Requirements Promotional Strategy Financial Analysis Equipment Expenses Break Even Analysis 4 5 7 10 11 16 17 18 20 26 27 29 Works Cited 31

4. Introduction • In order to establish a community in which the preservation of the environment is a top priority, people must begin to assess and change the way they visualize the material world. Sustainability can be applied by the community as a whole, by businesses, and by individuals. Each level has started taking initiative in realizing the need for sustainability beyond basic environmental awareness. People are voicing concerns about organizations that aren’t effectively managing wastes, resources and emissions. Parallel to this concern is the future prospect of greenhouse gas emission regulations for businesses.  The continued practice of ignoring sustainability issues also leads to record heat waves, disastrous storms, increased energy prices, and global insecurity. The awareness of these realizations influence individuals to align sustainability goals with business strategies: creating new business values, improving corporate image, reducing risk, and attracting and retaining employees. • Cities, businesses and individuals establishing green values and pursuing more sustainable living habits will lead to the enrichment of the environment. Whether sustainability is practiced by a community as a whole or businesses, it needs to be compounded by individual participation within these organizations. In the following report, a business model for Eco-Scape will be provided. The business model will improve the level of sustainability within communities by providing steady revenue, employment opportunities, and offering a number of services that promote a sustainable lifestyle in citizens with green values. Throughout the remainder of this report, this business model will be discussed in terms of the placement of the business (sustainable communities and beyond), the product itself (in four service segments), the pricing (financial analysis), and the promotion strategy (heavy advertising and use of public relations). Through the implementation of this business model, sustainable communities can expect to experience value through the stable revenues, employment opportunities and the spreading of green values that Eco-Scape provides.

5. Sustainable Communities: Expressing the Need • Eco-Scape will be placed in a very specific portion of the market: sustainable communities. In order to fully understand the level impact and pressing need for a business model like Eco-Scape, it is important to first understand the current nature of sustainable communities. In the changing world today, the switch to sustainable and green practices has become imperative. According to American City & County Magazine, "each time we build a road or a bridge the way we've been doing it, we're committing ourselves to 50 to 75 more years of doing business as usual". Once these practices are integrated into the daily life of a community, value can be seen in its effects on the economy, the environment, and people's quality of life ( Jackson). • Sustainable communities are becoming increasingly important as more world citizens realize the damaging effects of the world’s harsh treatment of the environment. The three core concepts that establish a successful sustainable community are donned as the "three E's" of sustainability and include economy, equity, and environment (Jackson, 2009). These three factors must work together in harmony in order for communities to be successful over an extended period of time. • Market for Eco-Scape: Sustainable Communities Participants or residents of a sustainable community must consider how their community "meets the needs of the present generation without sacrificing the ability of future generations to meet their needs“ (Beatley, 2009). Some of the most important green practices for green and clean cities include sustainable transport, energy efficiency, green building, recycling and zero waste techniques, but the challenge is finding the strengths in each practice and how they can act together (Beatley,2009). Proponents on the green movement argue that one community in one place is not enough to create change. In order to make any significant difference, people need “tools and practices that can be repeated across space and time” (Welch, 2010). It is clear that the development of sustainable communities is a crucial issue for the future of our society as a whole and should be recognized as such. The realization of the relevance of this issue should encourage cities large and small to make a commitment to change and to the health and sustainability of future generations.  Being sustainable and eco-friendly is not a cheap venture. It involves a large investment of both the time and money of members of the community. When attempting to support a family of their own, the idea of additional resources allocated toward the community can be burdensome to residents. The resources needed are based around six central needs of the sustainable communities.

6. Sustainable Communities: Expressing the Need • These six core needs of the community include water, shelter, energy, food, infrastructure, and jobs. Considering the nature of a sustainable community, it is vital that these needs be provided for in keeping with the green values of the community. The needs of the community must be met in an enduring manner, rather than implementing a temporary fix for the problem. The only way for a community to accommodate these needs is through a significant allocation of funds. In most communities, this idea of funding is the major roadblock. • The generation of a steady revenue will help to sustain the basic needs of these communities. As this steady inflow of cash is collected and builds, the community can satisfy its needs and no longer worry about the day-to-day survival of the community itself. With this worry subsided, leaders in the community can focus their attention on improving the environmental performance of their operations.

7. Now that the market for Eco-Scape is established, the extent of the impact that the business model can have may be fully appreciated. Eco-Scape is a an eco-friendly landscape and design business that will provide services for its customers with a heavy focus on the environment. The business model is comprised of four segments: basic lawn maintenance, sustainable landscape design, snow removal services, and a nursery as a learning facility. Both summer landscaping services would utilize green and clean resources such as hybrid vehicles, organic fertilizers, alternatives to wood, recycling of yard clippings for composting, and a focus on the conservation of water. Eco-Scape will provide sustainable communities with a steady revenue as well as opportunities for employment and learning. Given the business’s highly scalable business model, Eco-Scape has the potential to expand its client base, bringing in substantial revenue. In the following section, a brief overview of the landscaping industry as well as the current industry conditions that Eco-Scape plans to take advantage of will be provided. Eco-Scape’s four business segments will be described in detail. Eco-scape: Business MOdel Eco-Scape’s Mission Statement: Eco-Scape is a environmentally -friendly landscape and design company that specializes in all areas of landscape maintenance and improvement with a heavy focus in sustainable practices. We strive to give customers exceptional service while promoting ways to create greener lifestyles. 

8. Eco-Scape • Landscaping Service Industry Overview While sustainable communitiesmake up the general placement for Eco-Scape, it is important to understand the nature of the industry in which the company will be directly competing. The landscaping industry provides service that includes lawn maintenance, design, and construction. The industry has a low concentration level, with the top four competitors accounting for only seven percent of the total industry.  The industry leader is a major home services franchising company, and the remaining three major competitors are privately owned. The landscaping industry as a whole is segmented and contains a large number of small operators. (IBIS World, 2009). There are no key players in industry that must be overcome or competed with, Eco-Scape will have little problem gaining market share from the current players. Especially considering the green focus that Eco-Scape maintains, the company will be even further differentiated from the current composition of the industry. Current industry conditions are viewed as a large opportunity for Eco-Scape to quickly gain brand awareness and market loyalty. • The market for landscaping services are broken down into four categories. The market is largely dominated by single-family residences which make up about 63% of the total market, followed by commercial and industrial segments making up 24%.  Residual segments include multi-family residences, apartment, and duplex complexes combined with governmental institutions make up slightly more than ten percent of the general market. • The current market distribution for the landscaping industry is an important factor in developing a growth strategy for Eco-Scape. In keeping with the established distribution for the industry as a whole, Eco-Scape will grow its business starting with homeowners, transitioning to businesses and apartment complexes, and culminating in governmental institutions such as city governments. The following section will provide a description of the company’s target market as well as a discussion of its growth strategy and intended benefits.

9. Eco-Scape • Eco-Scape’s business model has the ability to be highly scalable. As the business itself expands, the benefits that Eco-Scape will experience exist in two forms. The first form of benefits will be experienced on an ideological level, through the spreading of sustainable values and practices to a large range of people. The second form of benefits are more tangible through continuous revenues and increased employment opportunities. The services that will provide these revenues will be discussed following this break down of Eco-Scape’s target market and plan for employment. The business model proposed is the core foundation of Eco-Scape, and as the business experiences growth, it will be positioned to expand as well, allowing all benefits will grow as well. • Green landscaping can be targeted to any person or corporation with a brick and motor location that desires a beautiful and environmentally sensitive landscape. Eco-Scape will initiate its client base within the residential neighborhoods of the sustainable community. Its initial revenues will be provided by the rates that these community members pay the company for the green landscape and design services it provides. The company will start to build its reputation through its advertising strategy and through its growing base of satisfied customers. As its reputation is strengthened, Eco-Scape will be able to take on bigger projects such as businesses with office buildings and apartment complexes on large grounds. This will allow Eco-Scape to promote its green business values to other corporations, encouraging them to adopt these values in a meaningful way as well. • As the community successfully grows in these markets, Eco-Scape will be marketable to city governments, which will require both the initial design and constant upkeep of public areas such as parks, road sides, public gardens, and schools. With the support of city governments, Eco-Scape will expand its green values to an even larger audience, spreading the ideals and practices of an environmentally sustainable lifestyle. Growth Strategy

10. Eco-Scape • Providing exceptional maintenance and services is essential for any landscaping business to function successfully. Eco-Scape provides various services such as mowing, mulching, weeding, fertilizing, and other basic maintenance services. Eco-Scape offers premium fixed price plans from which its customers can choose that most appropriately fit what type of services they'd require. Eco-friendly landscaping is somewhat different regarding landscaping techniques and resources, however, an eco-friendly landscaping business often provides as good if not better service that’s beneficial for all parties involved.  Eco-Scape will provide completely clean methods of landscaping maintenance through a variety of strategies. These strategies include: Using and planting regionally native plants and trees, reducing gas powered equipment through hybrid operating trucks, utilizing electric powered equipment, and composting used trash and debris.  When these attributes are incorporated into Eco-Scape’s maintenance service segment, the ideas and practices it offers are ones that appeal to an environmentally conscious population. • Using regionally native plants for the bulk portion of landscaping is one aspect of Eco-Scape’s green maintenance segment. As a result of being easier to maintain and grow, native plants, shrubs, and perennials are typically more cost effective and environmentally friendly. Since thee types of plants and grasses are more adapt to their environment, they are also easy to keep alive. In addition, regional plants are more eco-friendly and will also keep the local insect population flourishing. • The main way Eco-Scape will reduce its footprint is through the use of electric equipment and hybrid trucks. For a breakdown of the equipment purchased, initial costs, and energy expenses, please see page 26 within the Financial Analysis section. Using electric replacements for typical gas-guzzlers has a huge impact on the sustainability of the business. To power the electric units, it is assumed that the communities will have an established system of solar or wind generators. With this assumption in place, Eco-Scape’s business model calculates its energy expenses using a $1 per watt rate, as that is the current rate of energy. In addition to electric powered equipment, Eco-Scape will use “reel” lawn mowers or mulching mowers as an eco-friendly alternative. Overall, the use of electric machinery is the main source of sustainability within Eco-Scape’s maintenance segment. • Eco-Scape: Sustainable Landscape Maintenance Segment

11. Eco-Scape • Eco-Scape: Sustainable Landscape Design Segment • Eco-Scape will provide its customers with the latest green research and sustainable design principles. In order to contribute to the level of sustainability, Eco-Scape will use up to five green design practices in the landscape design segment of the business. These practices will including shade tree strategies, xeriscaping, bamboo as an alternative to wood, and green roofing. • Eco-Scape will utilize tree positioning strategies to reduce air conditioning costs in the summer and provide a wind break to reduce heating costs in fall and winter. Design teams will use xeriscaping to promote water conservation strategies in order to manage landscapes. Bamboo will be used for fencing and other purposes as a substitute for wood to prevent deforestation. Finally, Green roofing is the extension of conventional roofs by adding vegetation and will reduce energy use and air pollution. Eco-Scape’s design consultants will provide its customers with a customized landscape based on these principles and encourage the implementation by explaining the environmental benefits associated Eco-Scape’s services.  • Each design team consists of an expert landscape consultant and two to three landscape assistants to carry out the consultant’s design. The design segment will take place in three stages. The first stage involves the landscape consultant performing a site analysis of the property. The purpose of this analysis is to identify any unique constraints or opportunities the property offers such as wall location, driveway position, pools or tennis courts, and topographic conditions. • The second step is conceptual planning. During this phase, several ideas focusing mainly on improved sustainability with varied cost impacts are proposed to the client. These ideas are a culmination of various ways to use the space that work to accommodate the client’s needs. • The final phase is to discuss the final solution that the client is most comfortable with. The consultant will draw up a final master plan that displays the final landscape layout. This involves a final cost analysis and a final sustainability impact statement. The following sections will describe each aspect of Eco-Scape’s design innovation.

12. Eco-Scape • In addition to its other sustainable landscaping practices, Eco-Scape will also offer the use of shade tree strategies. Shade trees are strategically planted trees or shrubs that create energy efficient benefits for a private or public building (Schrope, 2009). Some of the most effective trees used in this process are deciduous trees and shrubs placed on the north side of a private residence or other building. This provides summer shade, which reduces cooling costs, and also winter access to lower heating costs (Sustainability Victoria, 2009). A shading unit can increase air conditioner efficiency by 10% (U.S. Department of Energy, 2010). Other benefits of using shade trees include the storing of carbon to reduce greenhouse gases and the further development and creation of a green workforce (Schrope, 2009). • In addition to trees, shrubs and vines can also be used for strategic shading practices. Shrubs serve to shade a building as well as the ground around the building, which is beneficial because it reduces heat radiation and cools the air before it reaches the building. Vines can be grown along the walls of a building for fast shading, because of their rapid growth rate. Any type of shading device also provides an additional windbreak benefit. Eco-Scape hopes to encourage customers to choose to implement shade trees in their landscape but effectively communicating these benefits and designing the most energy efficient landscape as possible.  Deciduous trees provide summer shade Planting to promote ventilation to reduce air conditioning costs

13. Eco-Scape • Another way Eco-Scape will promote sustainability is through xeriscaping. The term “xeriscaping” refers to strategic landscaping that focuses on the minimization of the dependency on natural resources, specifically water conservation.  Xeriscaping is most useful in arid regions due to the lack of an excess water supply, making it difficult to maintain a healthy terrain. However, xeriscaping methods can be applied in any region to help conserve water. • Xeriscaping can save up to 60 percent more water than traditional landscaping. Though the benefits of xeriscaping far outweigh the disadvantages, the drawbacks include an extended planning process, increased start up work, more maintenance than a traditional lawn, and more sophisticated irrigation systems. These downfalls discourage the average property owner from implementing xeriscaping designs on their own. Ultimately, this provides Eco-Scape will an opportunity to provide this service to its clients. • One of the methods Xeriscaping emphasizes is plant selection. Hydro zoning refers to the grouping of plants based on their water requirements.  The less water-efficient plants should also be planted to avoid wind and sun so that they require less water. When implementing xeriscaping, turf areas should also be avoided because of their excessive water needs. Another important principle of xeriscaping is correct application of water.  For example, plants that need water should be hydrated in the morning or evening because the water is less likely to be evaporated or blown away. • Irrigation is an integral part of landscape planning. Efficient irrigation applies water only where it is needed and does not waste any water.  The irrigation of different sections of plants should be managed according to their water needs. In these ways, Eco-Scape will implement xeriscaping in its landscape design projects in order to spread sustainability through water conservation. Group plants according to water requirements Efficient irrigation systems Correct application of water Sustainability through water conservation

14. Eco-Scape • Another way Eco-Scape will increase its sustainability by decreasing its environmental footprint is through the use of bamboo as an alternative to less eco-friendly resources. Bamboo is a smart alternative to traditional wood, plastic, and other man-made materials for landscaping needs such as fencing, hedging and other design aspects. Eco-Scape will use bamboo for various areas of the landscaping process. The specific uses of bamboo will include planters, climbing walls for vines, overhead sheltered structures, and fencing. • Bamboo is a beneficial substitute to using wood. A bamboo forest can be harvested for over 20 times more material than a forest is harvested for wood. Unlike trees, bamboo culms (canes) can be cut to a specific length and will never re-grow, and most bamboos are easily controlled through root pruning.  Bamboo has an underground system of rhizomes and roots which create a dense, soil grabbing network. A rhizome is a horizontally creeping underground stem which bears roots and leaves and usually persists from season to season.  The rhizomes penetrate up to six feet deep into the soil, providing air holes that act like straws for water percolation. Bamboo roots and rhizomes live short lives, usually less than 5 years, and break down quickly.  In this way bamboo increases soil breakability and cohesion, and helps water move more efficiently. • Through the use of bamboo, Eco-Scape will experience the benefits of these advantages. However, these benefits are indirect in comparison to the main reason for the use of bamboo: the attempt to halt deforestation. The clearing of forests on a massive scale destroys natural habitats, which can lead to the extinction of animals and plant species. The use of bamboo is just one of the many ways in which Eco-Scape’s design segment will promote sustainability. Advantages of Using Bamboo Extreme strength Saves trees Easy to maintain Soil aeration

15. Eco-Scape • One of the landscaping services Eco-Scape’s design team will offer is the installation and maintenance of green roof system. A green roof is essentially the extension of a conventional roof with a contained green space (Green Roofs for Healthier Cities, 2010). Green roofs can be installed on many different types of buildings and offer many benefits. Some of these benefits include protection of the roof membrane, savings on heating and cooling costs, reduced air pollution, and aesthetic appeal. These benefits vary between the two different types of green roofs, extensive and intensive. • An extensive green roof is usually made up of plants that are suitable for alpine environments and can stand up to most weather conditions. They require little maintenance and the least amount of added structural support, improving cost-effectiveness. Extensive green roofs cost around ten dollars per square foot. Intensive green roofs are different from extensive roofs as they resemble a conventional garden. This type of green roof is the most aesthetically pleasing and usually contains large trees and shrubs. These rooftop gardens save energy while providing a garden environment. Intensive green roofs require a higher initial investment than extensive roofs and also require an irrigation system. • Most green roofs have ten different layers including the vegetation, growing medium, filter membrane, drainage layer, root barrier, waterproofing membrane, cover board, thermal insulation, vapor barrier, and roof structural support (United States Environmental Protection Agency, 2010). We believe that offering green roofs as a part of our green landscaping business will prove to be profitable and will please customers because of its environmental benefits. Also, if customers choose to install a green roof on either their residential or business property there is a possibility they will receive governmental tax incentives. In August 2009, a bill was proposed to offer a 30% tax credit for qualified green roof investments (Green Roofs for Healthier Cities, 2010). This will encourage the residents in sustainable communities to invest in a green roof system and will help our business to grow and cater to customers in other communities as well.  

16. Eco-Scape • Eco-Scape’s Winter Service Segment • Eco-Scape provides its clients with additional services during the winter months when the landscaping season is slow. The trucks have a snow plow attachment for clearing roads, driveways, and parking lots. The trucks will also be available to provide contracted services to governments or apartment complexes. These services will be essential to the community because winter weather is unpredictable, and controls the demand for snow/ice removal services. For smaller snow/ice removal jobs Eco-Scape will promote sustainability by using the Sno Wovel, an eco-friendly alternative to snow blowers. The Snow Wovel is designed to reduce the strain and difficulty of traditional shoveling, as well as eliminate the carbon footprint of snow blowers. Eco-Scape also has access to Calcium Magnesium Acetate, a compound used to break down ice as an alternative to Sodium Chloride (salt). Available upon request from cities or governments, Eco-Scape will distribute CMA on roadways. CMA promotes sustainability because it is harmless to plants, noncorrosive to metals, and nondestructive to concrete and other highway materials. Another winter service Eco-Scape will provide is eco-friendly firewood distribution. A green alternative to wood logs is the Java-log. It is made up of coffee grounds which are more efficient, and emit almost 80% less carbon monoxide than wood when combusted. Java-logs are sustainable because they divert about 12 million pounds of coffee from landfills annually. Winter Services Snow plow attachment with hybrid trucks Sno Wovel Calcium Magnesium Acetate Java-logs

17. Eco-Scape • In addition to being a service to the landscaping needs of the community, Eco-Scape offers a place of learning in its nursery segment. One of the most important aspects of a sustainable community is that its members are well-informed on how to lead a green lifestyle. Eco-Scape will create a fully functioning nursery in each community and will encourage community members to take a leading role in the operation and maintenance of the grounds. The nursery will create two main benefits. The direct benefit will be the education of the members of the community on green value and practices. The indirect benefit will be the actual vegetation grown in the nursery that can be sold to Eco-Scape’s clients. • The main function of the nursery is that it will serve as a place of learning for community members. A core group of trainers will be the catalyst for the learning that will take place in each community Eco-Scape will serve. These trainers will work closely with a group of ten to twenty community members over the course of six months. During these six months, the people participating in the course will learn how to do a multitude of green gardening practices that can be used in their homes as well as in the scope of a large community. Some of the learning outcomes will include the basics of maintaining a garden, how to build and properly use a compost, how to make and properly use eco-friendly fertilizers, understanding how certain plants improve the environment or can be used in alternative ways in the home, as well as many other significant skills. The skills that community members will gain throughout this process will be essential in regards to the future success of sustainable communities. The people who walk away from this program will be agents in spreading and promoting green practices and values. • In addition to being a place of learning for community members, the nursery will provide several intangible benefits. There will be a heightened sense of pride and unity throughout the community. The experience in working together to create something of substantial value will be an important outcome of the nursery. Community members can also visit the nursery at any time, whether or not he or she has participated in the workshops. The nursery can be a place of relaxation and community, as people can gather there and spend time together while adding value to their community. • Eco-Scape: Nursery Segment

18. Eco-Scape • The two tangible benefits that Eco-Scape will being to sustainable communities are the stable revenues through its services and its employment opportunities. The previously described services will not only provide the stable revenue that is so valuable to these communities, the services will also provide significant employment opportunities. The services demand both physical labor to perform the direct day-to-day operations as well as the behind the scenes administrative roles. Eco-Scape’s business model is highly scalable and will start with employing a minimum of 29 workers. • Eco-Scape's employment model will consist of four departments including administrative, maintenance, design, and nursery management. The core business model will employ a total of twenty-seven people with varying levels of expertise, availabilities, and age groups. Eco-Scape’s focus for employment will be to hire from within the community, however the company will look to surrounding communities for employees if the community lacks appropriate qualifications. • The administrative team will consists of one accounting worker, one administrative assistant, one marketer, and one general manager, all of whom are college educated. The accounting employee’s main responsibility will be the handling of all the financial needs of the business. • The marketer will be in charge of all marketing plans and communication with the community. This employee will also maintain the website and the blog, requiring the employee to also have a background in information systems or web development.   • The general manager has administrative responsibilities including hiring, inventory management, and scheduling. In addition, the general manager will serve as the main landscape design consultant. This will require an extensive knowledge of sustainable practices and green ideals pertaining to landscape architecture. The administrative assistant will work under the general manager, taking on any extra assignments or tasks that need to be completed.  • Employment Structure and Requirements

19. Eco-Scape • The maintenance crew will consist of four teams of three people per team. Each crew will have one adult who will serve the team as its maintenance manager. The main responsibility of the manager is the on-the-job overseeing of the maintenance work and two other employees. These two additional employees are the landscape assistants who are preferably young workers between the ages of 16-30. Each team will be in charge of the basic upkeep of Eco-Scape's client's yards and will operate the trucks and equipment at each job site. These positions will not require a college education, but some experience in landscaping maintenance is preferred. The maintenance team will be mostly seasonal workers but the landscape managers will continue to work in the winter months to provide assistance with snow removal needs for Eco-Scape’s clients.  • Each design and consulting team will consist of four employees. As previously mentioned, the general manger also functions as the main design consultant. The consultant  will be in charge of meeting with clients and customizing their sustainable landscape based on the three step method mentioned in the design segment overview. In addition to overseeing the implementation, the consultant will be responsible for dealing with any customer service issues that arise. The other three employees will be responsible for the design labor and implementation of sustainable practices that Eco-Scape provides. The design laborers will have be trained in the installation practices of the sustainable landscape features.  • Finally, the nursery department will consist of 3 employees. These employees will act as caretakers of the nursery and will also conduct the classes that Eco-Scape will provide. These workers will be required to have extensive gardening knowledge and knowledge of sustainable landscaping processes. They are not required to have a college degree but their degree of expertise will be judged and tested by the general manager. 

20. Due to the nature of Eco-Scape as a landscape service, the success of the business is highly dependant on the retention and expansion of the client base. There are a few ways that Eco-Scape will expand without the use of advertising such as positive word of mouth exposure and retaining customers through satisfying experiences. The advertising strategy that Eco-Scape will implement will work to support the growth of the business to include a constantly growing client base. There are four components to Eco-Scape’s promotional strategy: yard signs after satisfied service, flyer distribution, a highly user-focused website, and public relations/social networking. These components will be described in the following section. The purpose of the promotion strategy is to grow the business’ client base while expanding green ideals and values to a wide range of people. In the following section, a brief hypothetical market for Eco-Scape will be described followed by a detailed description and visualization of each of the four segments of the promotion strategy. Promotion

21. Promotion • In order to Eco-Scape’s promotional strategy to be put into a realistic context, consider the city of Chicago as a prototype area for the business to begin. The city of Chicago, Illinois is an appropriate hypothetical location for Eco-Scape to start a business with serious growth in the future. The reason Eco-Scape would thrive in an area like Chicago is due to its high prioritization of green values. Chicago is one of the most innovative and advanced cities when it comes to green and clean practices. The Chicago Center for Green Technology uses the most the most advanced green technology available and is home to many green organizations. It is also a place a of learning and offers education to anyone interested in a green and sustainable way of living. Chicago also has many green museums, such as Shedd Aquarium and Lincoln Park Zoo, and is the national leader in installation of green roofs on city buildings (City of Chicago, 2010).  • Eco-Scape's first community will consist of about 200 people (about 50 families) and hopes to expand into larger communities. The many suburbs in the Chicago area could be an area of focus for this business. The area northwest of Chicago contains many small affluent suburbs such as Barrington, Barrington Hills, and Lake Zurich. All of these cities have a median income ranging from 100,000-125,000, population ranging from 5,000 to 20,000, and a median age of around 35 years old. Research has shown that these are some of the ideal demographics for customers of landscaping businesses. "Creel and Baldwin contend that the younger generation of homeowners is looking for a lot more than do-it-yourself solutions at big box or small garden centers. They want style and they'll pay for it. This trend, which Creel and Baldwin have documented, means more money will flow into landscape services in the future" (Nielson, 2010). Eco-Scape feels that the combination of these current trends and the large influence of sustainable and green practices in the Chicago area would create a perfect market for its services and allow it to grow in future business endeavors.

22. Promotion • Eco-Scape will promote its services using advertising techniques such as fliers and yard signs. Fliers will contain basic information about the business and the link where the website can be accessed. This sparkscuriosity among potential customers and encouragethem to go to the website to obtain more in depth information about Eco-Scape. Fliers will be made from recycled paper and placed in mailboxes and other strategic locations around the community. Eco-Scape will also use yard signs as a way to promote the business. This will allow current clients to showcase their dedication to sustainable practices while getting Eco-Scape’s name out in the community and encouraging the use of their services. • Eco-Scape will operate a high-functioning website to help promote the business and support its customers.  The effectiveness of the website will be a critical factor in the success of the business. The user friendly design of eco-scape.com will give Eco-Scape a competitive advantage over other green landscaping businesses in the area. The website will serve two main functions: support through general business information and support through building community.  • Eco-scape.com will provide its customers with an extensive description of its general business operations, including services offered, rates of services, hours of operation. Customers will be able to view photos of Eco-Scape’s past projects, giving them a visual representation of what their customized landscape could be. There will also be a section of the website dedicated to our nursery. Gardening tips and ideas will be offered, as well as a description of the classes offered for the community members through the nursery.  • Eco-scape will also build a community for its customers through its website. Additional resources and websites will be posted the page to help customers better understand the purpose of our organization and the sustainable practices associated with it. The customer will also have access to Eco-Scape’s blog. This will allow Eco-scape’s existing and potential customers to communicate about their experiences with the business and what green landscape design practices they chose to have implemented at their homes. Eco-Scape will also offer our customers a ten dollar gift card to another green business in the area as an incentive for posting a review of their experiences with Eco-Scape. • Finally, Eco-Scape hopes to run advertisements in regional newspapers and possibly magazines. The business will be able to access customers outside the community and will also reach the community members in an additional way. In order to reach all kinds of customers, Eco-Scape will also develop pages on social networking sites such as Facebook and Twitter. This will be a good way to reach friends and family that employees are connected to on these sites and also other potential customers.

23. Promotion • Flier

24. Promotion • Website Layout Home Page Photo Gallery Page

25. Promotion Green Roof Service Page Interactive Blog Page

26. Eco-Scape’s business model is based on a relatively small foundation of employment and equipment investments. There are many details of the business that must be considered that evaluate the success of Eco-Scape on a monetary scale. The following section takes these details into consideration and discusses a core evaluation of the value added to the community through revenue. First, the analysis will break down the costs of the initial investment of the equipment as well as the energy expenses on an annual basis. Next, a detailed description of annual employee expenses based on the minimum required employment will be provided. A detailed analysis of the predicted revenues based on expected clients interested and number of employees available will be presented followed by a simplified income statement based on those sales numbers. Again, Eco-Scape is intended to be a highly scalable business model that can be expanded to take on a constantly growing client base. The numbers provided in the following financial analysis are based on the core predictions and requirements of the initial implementation of Eco-Scape. Financial Analysis

27. Financial Analysis Equipment Cost and Expense Breakdown • Basic assumptions used in analysis • Sustainable communities possess established alternate energy source (solar/wind/water powered) • Energy costs approximately $1 per Watt • Truck usage: $2.50/gallon of gas, 21 miles/gallon, • Winter-less than 50 miles driving per week, approximately 2 gallons/week, 12 weeks per year • Summer-less than 50 miles driving per week, approximately 2 gallons/week, 25 weeks per year

28. Financial Analysis • In addition to the cost of purchasing and operating the required equipment, the other main cost associated with Eco-Scape is the cost of employment. As mentioned in previous sections, the employment opportunities that Eco-Scape provides are great. In employing almost thirty community members, it is natural that one of Eco-Scape’s most significant costs of operation. In the following table, the employment breakdown for the minimum required employees is laid out. Seven of the twenty-nine employees are on a salary pay rate. The remaining twenty-two employees are paid on a wage basis. Landscape managers will be earning $15 per hour, while landscape and design assistants will be making between $10-12 per hour of work. Each worker has been assigned an average number of hours that he or she will work per week as well as how many weeks per year that employee will be working throughout the year. The total annual employment costs total $440, 600, which are represented between the cost of goods sold and the general selling, general, and administrative lines on the income statement.

29. Eco-Scape • Revenue Breakdown based on Segment Client Expectations • The following is a highly simplified income statement representing Eco-Scape’s break even point after one year of operations. This number is calculated through taking the initial sales of slightly over $1 million and subtracting the cost of materials used in the clients’ projects (calculated by taking 60% of the overall sales, establishing a 40% markup on rates charged to clients). Wage expenses are subtracted, giving the community a gross profit of about $474 thousand. After taking SG&A expenses into consideration, the net income is derived. This model is based on a scalable foundations and can be adjusted with ease as Eco-Escape predicts • Income Statement Below is a break-even analysis considering one year of Eco-Scape’s operations. The breakdown is separated into the three business segments of the company. This analysis is computed using a model that is highly interactive, which is important when working with a scalable business model, such as that of Eco-Scape. The number of clients per week per team may increase or decrease depending on the size and level of receptivity of the community it is positioned. Both the Maintenance and Design segments are divided into three rate categories: Standard, Ultra, and Deluxe packages. These packages are distributed throughout the expected client base according to the predicted number of clients interested in each package.

30. Conclusion Eco-Scape has the ability to add intense value to its home community. Three ways Eco-Scape will add value are through constant revenues, employment opportunities, and through the spreading of green values. As seen in the company’s forecasted financial analysis and sales units breakeven analysis, Eco-Scape will be a highly profitable business. The number of clients required to break even is minimal. As Eco-Scape grows through its promotional strategy and its high-quality service, the company can expect to take on many more clients that the minimum required to break even. The sustainable community which chooses to implement Eco-Scape will benefit from the constant revenues brought in from Eco-Scape’s operations. This amount of revenues will increase strongly as the company’s client base grows to neighboring communities and larger clients such as city governments and multi-family units. The employment opportunity is also great. At a bare minimum, Eco-Scape plans to employ 29 people from the community. This number is scalable in relation to the amount of business the company is able to attract. In reality, the company could expand its employment to include the whole community if the client base is large enough. Ultimately, Eco-Scape will add value to the community through employment opportunities. The final way that Eco-Scape will add value is through the spreading of green values throughout the world. This is possible the most influential way that the business will add value because it works to solve the issue of environmental stress currently facing the world. The two ways it will spread green values is through its support of sustainable communities and by incorporating green practices into its services to clients. Eco-Scape is a business model that can be applied to any size or foundation of a community that desires to benefit through healthy revenues, significant employment, and spreading green values.

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