BUSINESS MODEL INNOVATION
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A. Social business design
A1. Business mantra
GypFoam-Pioneering sustainable, multi-purpose, high-quality construction materials made from straw & industrial waste create greener life.
A2. Product/service
A2.1. Products and Services
- Products
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– Biotechnology and material science-based products utilizing 70% agricultural (straw) and industrial (Gypsum – waste from fertilizer production) waste, resulting in products with superior qualities compared to existing materials on the market, and safe for humans. The group initially offers three main products to the market:
– Lightweight partition and wall panels for civil and industrial construction, as well as projects requiring lightweight materials
– Decorative panels, featuring imitation stone, wood, and concrete designs
– Ceiling panels for residential and industrial buildings
- Services
- Construction supervision and product installation consulting services
- Product quality inspection and warranty services
A2.2. Unique Selling Point
- The process of treating straw produces byproducts that can be used as fertilizer for crops. For each 10kg of raw fiber, 3kg of fertilizer is produced. On the market, 1kg of fertilizer is priced at 15,000 VND. The cost to process and produce 3kg of fertilizer from 10kg of raw fiber is 20,000 VND. When sold, the 3kg of fertilizer generates 45,000 VND, resulting in a profit of 25,000 VND for processing 10kg of raw fiber. The profit from selling the fertilizer will offset the cost of processing the straw, thereby reducing the product’s price.
- For the same product model currently available on the market, our product is priced at 319,000 VND (1.6m*1.2m*50mm), which is significantly cheaper compared to the competing product priced at 820,000 VND (1.6m*1.2m*50mm), while also having better physical and mechanical properties.
- Panels with dimensions of (1.8m*2m*0.055m) can be installed quickly and easily compared to traditional materials such as bricks, concrete, etc. The lightweight material allows for lower transportation and installation costs, and faster construction times compared to traditional materials with higher density. This is a great advantage for projects in remote areas or with difficult transportation conditions.
- In addition, due to the fact that the input materials for the product are derived from waste, the output product is cheaper than other materials of natural origin. This is an advantage of the product that makes it more accessible to people in remote areas who cannot afford high-priced products.
B. Business model
B1. Business model overview
| Key Partners |
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| Key Activities |
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| Key Resources |
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| Value Propositions |
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| Customer relationships |
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| Channels |
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| Customer Segments |
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| Cost Structure |
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| Revenue Streams |
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B2. Our customers
B2.1. Customer profile (B2B)
Cost reduction:
- Construction costs: GypFoam panels can be installed quickly and easily compared to traditional building materials, saving labor costs.
- Transportation costs: GypFoam panels are much lighter than traditional building materials, reducing transportation costs.
- Investment costs: GypFoam panels are inexpensive and lighter than traditional materials such as bricks, concrete, and wood, which helps reduce the initial investment cost for the entire construction project.
Increased energy efficiency:
- Thermal insulation: GypFoam panels have good thermal insulation properties, helping to maintain a stable indoor temperature and reducing the need for heating and cooling systems, thus saving energy and utility costs.
- Sound insulation: GypFoam panels have good sound insulation properties, helping to reduce noise from outside, creating a quieter and more comfortable living and working environment.
Income-based groups are typical payers of GYPFOAM. After research, surveys and interviews, we create demographic data of customer segments as follows: They are between the ages of 35-60 years old and are divided into 3 groups including high income group , medium and low. Basically, this is the age that is usually financially stable and begins to form a desire to build projects for business purposes or to meet personal housing needs. First, high-income customers are often investors in industrial parks or social housing construction. The group of customers with average income is usually small and medium sized businesses. Finally, the privatized low-income customer segment often needs to build cold storage facilities, clean rooms, mobile offices, and movie theaters. Stemming from the desire to provide cheap construction materials to reduce capital pressure for partners, Gypfoam targets all 3 customer segments that represent the main economic development class of the country. water. From the perspective of economic, trade and investment development, Gypfoam products deserve to be the leading solution in the process of capital planning and cost savings for customers.
All three customer segments must set high standards in the strategic partner selection process. They encounter business’s own pressure as well as general social pressure to create the best conditions towards strong and sustainable development. Leaders of high-income business units are always concerned about the issue of raw material input prices to compete in the common market and carefully calculate the value spent while finding potential partners. long-term combination. Meanwhile, the middle-income customer segment including small and medium-sized enterprises has a special need to find low-cost material suppliers to consolidate and maintain limited funding sources and avoid investment. Risks lead to difficulty in recovery and even bankruptcy. As for the low-income customer segment, which mainly comes from private businesses or households wishing to expand their businesses, the products have low prices, guaranteed quality and can reduce transportation costs. Moving as well as speeding up construction and installation is always the top priority. Therefore, Gypfoam affirms and commits that all of its panel products meet the criteria of the three main customer segments that make up the economy.
As their strategic investment partners, customers are always looking for distributors for the purpose of long-term cooperation and favorable economic exchanges as well as value creation for society. However, in reality, it is difficult for most customer segments to find strategic partners that are both capable of creating many positive values for society (for example, protecting the environment, owning an economic model). circulation, creating jobs for workers) while still having low raw material supply costs and still having high quality products. From here, Gypfoam has developed products based on data and evidence proving that the created material has many outstanding advantages over materials in the same segment. The products are cheaper than products on the market today while still ensuring the good properties and uses they bring while also helping to protect the environment.
After deciding on potential customer segments, Gypfoam identifies our business’s unique value proposition to solve all their problems: a comprehensive solution of products and services with outstanding and competitive features in the market to provide, contribute and convey value to customers, we divide them into three stages to have the right channel:
Awareness: They are individuals or organizations in our target age group and have a need to build projects for business purposes and socio-economic development. It can be affirmed that these customer segments evaluate capabilities, calculate and refer to products very clearly and in detail before deciding to invest. To attract their attention, we will organize product introduction events such as seminars, conferences, and opening ceremonies. And here, Gypfoam will bring practical application experiences of the product, advise customers and receive feedback from customers. In addition, we invite influencers in the field of construction, architects, or environmental influencers to collaborate on creating content on digital platforms.
Caring: Gypfoam cultivates customer care by building a community to create a space for homeowners, architects, and those concerned about safety and recycling in general. Then plan discussions and direct dialogues to share knowledge and useful information about safe and sustainable construction materials. Additionally, we also have Facebook ads, free webinars, and product promotions as well as direct sales on e-commerce websites. Through that, we will convey product value from direct to indirect and attract thorough attention to customers who are knowledgeable, experienced and willing to cooperate long-term.
Consideration: This is an important step that greatly contributes to the ultimate goal of cooperation, so Gypfoam will promote brand value, price competitiveness and product quality in the market. At the same time, contact construction companies and businesses to have the opportunity to meet and interact directly to clearly see product effectiveness and discuss product prices, shipping costs, and business contracts. as a long-term strategic partner. Especially for businesses that are developing according to the circular economy model, Gypfoam’s products will meet all the necessary criteria to enhance and expand their development while bringing their businesses to international level.
Long-term:
Relationships with organizational customers (businesses, companies, investor units – B2B) and individuals wishing to participate (B2C) to participate in more than one paid seminar, experience the application of Gypfoam products in reality.
Competitive strategy with the purpose of market penetration:
- Selling prices according to product lines (specifically based on the product’s layer thickness) will be different:
- 50mm = 319k/product
- 100mm = 369k/product
- 150mm = 419k/product
- 200mm = 469k/product
- Trade Discount 5% for orders worth over 1 billion VND.
- Cash Discount 2% for orders paid within the day.
- Commission 10% of the first order value of the referred partner.
Personal support: One-on-one consultation and customer service
Telephone consultation with a customer experience expert
Online meeting between Gypfoam and partner representatives to directly consult on the platform as well as the common development strategy that both sides are aiming for.
Community: Long-term support and connection with partners during and after the cooperation process.
Periodically organize professional surveys, exchange values and upgrade experiences from customer feedback.
Cooperate with universities and educational establishments to organize community activities, raise awareness about environmental protection, and prevent construction fires and explosions by using biological materials that are heat-resistant and High durability, typical of Gypfoam products.
Build a team of contributors for social media content – through interviews, our podcast, our YouTube channel.
B2.2. Value for customers
- Quality ensures Vietnamese fire protection standards
- The price meets the factor of optimizing construction costs
- Minimize construction time (70%), reduce raw material costs (30%), save transportation costs (16%)
- Product durability (10 years) compared to alternative products (5-7 years)
- The price of the product is 30% cheaper than alternative products
- No CO & CO2 emissions during production
- Creative solutions to the waste problem and contribute to promoting the construction industry to develop in a sustainable direction
B3. Target social impacts (and ESG integration)
- Key value propositions of our business: Given this situation, GypFoam offers products that are lightweight, environmentally friendly, cost-effective (compared to two existing products on the market, EPS and PU panels), and high-quality construction materials (excelling in certain criteria such as thermal insulation, fire resistance, durability, waterproofing, and soundproofing). Our solutions tackle the excess of agricultural and industrial waste, striving towards circular production systems.
Specific:
| Meet UN Goals |
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| Economic value propositions |
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| Environmental value propositions |
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| Create new jobs, decrease unemployment | Establishing a new industry and creating jobs at GypFoam’s main manufacturing plants, waste material collection facilities, etc. |
| Health value propositions |
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B4. Feasibility
- Social-oriented activities vs profit-oriented activities
| Profit-oriented activities (must-have) |
3 main products: All products are passed through strict quality control before being sent to customers
Secondary products: Fertilizer(This is a by-product in the process of processing sugarcane bagasse and straw that can be used as fertilizer for plants. During the process of treating agricultural waste with Gypfoam’s biotechnology. Profit from selling fertilizer will be compensates for the cost of fiber processing so it will reduce the cost of the product. Provide consulting services
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| Social-oriented activities (must-have) |
=> Oriented activities complement profit-generating activities. In particular, environmental education programs can create loyal customers who care about sustainability. |
- Thoroughly research the market and demand for fireproof and soundproof materials. The fireproof materials market is expected to register a CAGR of greater than 7% during the forecast period. Increasing rate of industrialization and usage of flame retardants is expected to drive the market growth. During the projected period, it is anticipated that the growing use of electrical products, whether in buildings or electric vehicles, will create opportunities for the fireproof materials market to grow. Currently, the Asia-Pacific region dominates the fire protection products market. Additionally, the soundproofing market size is estimated to reach USD 16.90 billion by 2024 and is expected to reach USD 22.20 billion by 2029, growing at a CAGR of 5.59% during the period. forecast period (2024-2029). In the short term, government regulations on noise pollution control and increasing adoption of residential applications are the key factors driving the market studied. Additionally, rising demand from emerging economies is also driving market growth. Furthermore, the need for aesthetic outlook and fireproof acoustic properties may soon become an opportunity. Because of the above two factors, Gypfoam has identified great demand from users in the market and produced products that meet good fireproof and soundproofing properties while also having a low price.
- Search and establish sources of waste materials from industry and agriculture. The project manager has collaborated with parties to take large amounts of waste such as Hoa Binh, Lam Son, Son La sugarcane factories,…. and some factories to take Gypsum such as: DAP Vinachem – Dinh Vu Joint Stock Company , DAP Joint Stock Company No. 2, Duc Giang – Lao Cai Chemical and Fertilizer Joint Stock Company,…. Along with that, Gypfoam also pays great attention to the process of collaborating with raw material suppliers. waste material. To aim for cooperation and sustainable development, the agreement and signing of contracts are always based on the criteria of mutual benefit. This is also an important goal to ensure a stable supply of waste materials on a large scale and of high quality. The following is the process of collecting and treating waste using biotechnology:
- Develop an effective marketing strategy, focusing on promoting the advantages of sustainability, material performance and conveying the environmental protection message, combined with establishing a widespread distribution network to achieve to potential customers with solutions to build distribution channels:
- Direct distribution channel: Businesses sell directly to customers through channels such as stores, showrooms, agents,…
- Indirect distribution channel: Businesses cooperate with distributors to bring products to consumers.
- Multi-level distribution channel: Enterprises build distribution networks based on sales staff.
- Online distribution channels: businesses rely on multimedia communication channels of the manufacturing business such as Website, Tiktok, Facebook, Email, Intagram, Youtube, Hotline to sell products to consumers.
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- Seek out opportunities to collaborate with industry partners to expand your production footprint and reach a broader market, while benefiting from the complementary skills and resources your partner can bring to the table . Partner parties include:
- Professional sponsoring partners:
– Institute of Tropical Technology – Vietnam Academy of Science and Technology
– Department of Construction Materials – Hanoi University of Construction
- Business Partners:
– AVI MORE Limited Liability Company
– Nha Viet Design Architecture & Interior Joint Stock Company
- Development strategy:
Development goal: Orient the business in the next 10 years to be a leading enterprise in the construction materials manufacturing industry of light materials. Orientation to 2035 to account for 40% of Vietnam’s light materials market share, exporting to countries in the EU and the US
Continuously update technology and production processes to optimize operations, while focusing on improving product quality to maintain and expand market share in the construction materials manufacturing industry. Gypfoam is always ready to absorb and apply in the 4.0 technology era by participating in seminars on green technology and new transformation technology in production and consumption. In addition, cooperation with research institutes combined with calling for capital to invest in automation models are also important parts in the process of updating and upgrading technology transformation. Along with that, Gypfoam also implements a continuous improvement process within the business’s internal apparatus when using product output quality assessment tools and implementing human resource training programs aimed at The purpose is to improve production efficiency, product quality and strengthen the internal operating system to become more and more perfect.
- Team’s composition, members’ profiles, and HR strategy
| Name | Title | Function |
| Cao Đức Tâm | Founder |
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| Lê Ngọc Anh | Co-founder |
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- Partners
| Partners | Support | motivates |
| Potential payers:
– Construction companies and contractors who are concerned purchasing light and green construction materials (customers from 3 provinces) |
Purchase of GypFoam products for construction projects due to their cost-effectiveness, quality, and compliance with standards. | – Provide product demonstrations and performance data.
– Offer cost-benefit analysis comparing GypFoam to traditional materials. – Continuous product upgrades based on customer feedback. |
| Supplier
– Factory in Rural Areas (Hai Phong, Thai Binh, Hoa Binh) |
Advocacy for using GypFoam in construction projects due to its environmental benefits and job creation potential. | – Highlight environmental benefits and job creation opportunities.
– Engage in dialogue to address concerns and build trust. |
| Investors:
– Angel investors, venture (Vinacapital, Sydney cantral) capitalists, and impact investors interested in sustainable business models. – Social investment funds and organizations supporting environmental initiatives. |
Investment capital, financial backing, advises | – Present a compelling business case demonstrating market demand and scalability.
– Highlight the potential for financial returns alongside positive social and environmental impact. |
| Partners:
R&D – The Institute of Tropical Technology under the Vietnam Academy of Science and Technology: Research and development partner. – Hanoi University of Civil Engineering: Providing expertise and testing facilities. Distribution channel – Avi More Company Limited: Partner in production and distribution. – Nha Viet Design Architecture & Interior Joint Stock Company: Collaborator in construction projects. |
R&D
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Emphasizing mutual benefits, shared values and goals |
B5. Profitability.
Profitable activities:
- Product Sales: Selling main products (building panels) (70% profit) and by-products (organic fertilizer) (3%) from the production process.
Specifically, the by-product organic fertilizer will be boosted through the following channels: targeting target markets such as organic farms, nurseries, and small and medium-sized farmers who are seeking safe and environmentally friendly fertilizer solutions.
- Franchising part of the production technology (15%)
- The franchising process will include the following steps:
Step 1: Evaluating and selecting potential franchise partners based on criteria such as industry experience, financial capability, and commitment to sustainable development.
Step 2: Negotiating and signing franchise agreements, including terms on intellectual property, business secrets, and obligations of both parties.
Step 3: Providing training and technical support to franchise partners to ensure they have the necessary skills and knowledge to operate the production technology effectively.
Step 4: Monitoring and evaluating the performance of franchise partners to ensure they meet our quality and safety standards.
- Conditions for franchise partners include:
- Having experience in the construction or agriculture industry
- Having the financial capability to invest in technology and infrastructure
- Committing to sustainable development and reducing environmental impact
- Franchising technology can drive business growth by:
- Expanding production scale and increasing revenue
- Enhancing competitiveness in the market
- Promoting sustainable development and reducing environmental impact
- Potential partners for franchising: Tonmat Group, Panel Việt, Panel Bảo Tín, Matec, …
- Providing construction, design, and installation consultancy (12%)
GypFoam’s consulting services include:
- Construction Consulting: We provide comprehensive construction consulting services, including design, construction, and installation of environmentally friendly building materials.
- Design Consulting: We offer design consulting services for building projects, including architectural design, structural design, and technical system design.
- Installation Consulting: We provide installation consulting services for building projects, including installation of building materials, technical systems, and equipment.
GypFoam’s consulting service packages include:
- Basic Consulting Package: Includes basic construction, design, and installation consulting services
- Advanced Consulting Package: Includes advanced construction, design, and installation consulting services, including consulting services on environmentally friendly building materials and energy-saving solutions.
- Comprehensive Consulting Package: Includes comprehensive construction, design, and installation consulting services, including consulting services on environmentally friendly building materials, energy-saving solutions, and project management.
Estimate Cost:
| Costs | Cost Description | Estimated Cost (%/total cost) |
| Collection and transporation cost of raw materials | To reduce this costs, GypFoam have implemented measures such as partnering with local suppliers, applying advanced logistics technology, optimizing transportation routes, and using efficient transportation vehicles.
In the future, we will build facilities near raw material sources, develop relationships with local suppliers, and apply new logistics technologies. |
7% |
| Production Costs | Labor
Utilities Equipment maintenance |
32% |
| Marketing & Sales | Main Marketing Channels
– Digital Marketing (Facebook, Instagram, LinkedIn, Google Ads) – 40% total Marketing & Sales costs. – Influencer Marketing (partner with industry influencers) – 20% total Marketing & Sales costs. – Event Marketing (industry events and exhibitions) – 20% total Marketing & Sales costs. – Content Marketing (high-quality blog posts, videos, infographics) – 20% total Marketing & Sales costs. |
20% |
| Interest rate | Interest rates from bank loans and other parties | 13% |
| Legal consultant | Issues related to technology licensing, intellectual property protection, and commercial contracts | 8% |
| Administration | Office rent & supplies
Salaries (administrative staff) |
20% |
C. Business model validation
C1. Crowdfunding/crowdsourcing campaign
Present the results from your campaigns to get support from within and outside of your organization
Results from Campaigns:
New resource acquisitions like equipment machines, factory, warehouse and transportation needs. On plan, we suppose to raise external fund including: 4 billion VND in a 5-year loan Venture capital fund, and Social Policy Bank to purchase essential machinery.
Straw Brick Press Machine:
- Description: This machine converts straw into construction bricks
- Benefits: Utilizes the abundant straw from agriculture, minimizes agricultural waste, and produces sustainable building materials.
Fiber Grinder:
- Description: This machine grinds into materials such as fiberboard.
- Benefits: to create environmentally friendly construction products and reduce fiber waste.
Biomaterial Mixer:
- Description: This machine mixes various biological materials such as straw, coconut fibers, and other agricultural by-products to create construction mixtures.
- Benefits: Increases production efficiency and ensures uniform quality of construction materials.
Networking added: partnerships with agricultural producers for their waste, agreements with manufacturers for processing equipment, or pre-orders from construction companies.
Agricultural partners:
Agricultural Cooperative (Hanoi):
- Project Benefits: Helps stabilize the raw material supply, reduces collection and transportation costs, and ensures high-quality raw material input. Moreover, Cooperative would work for the best interest of participant so we can value from the increase in social recognition
Agricultural Products Co., Ltd:
Project Benefits: Ensures a stable and quality raw material supply, minimizes raw material costs.
Risks to Organization:
Potential risks include resistance from traditional suppliers or manufacturers in the construction industry, regulatory hurdles from government bodies, scalability issues for a brand new project in processing from agricultural waste into viable building materials to the finished goods to sell out. Specifically:
Risk 1: Resistance from Traditional Suppliers or Manufacturers in the Construction Industry
Traditional suppliers or current building material manufacturers may have long-standing relationships with their customers and might resist transitioning to new building materials made from agricultural waste. They may feel threatened by the new products and refuse to cooperate or offer competitive prices.
- Challenges: Difficulty in market penetration, challenges in building a new customer network, and potential price suppression.
Mitigation Strategies:
Building Relationships:
- Organize meetings and workshops to introduce the products and share the benefits of using building materials made from agricultural waste.
- Participate in construction industry associations to build relationships with traditional partners.
Trial Programs:
- Offer free or discounted trial programs to suppliers and manufacturers to let them experience the quality and benefits of the new products firsthand.
Risk 2: Regulatory Barriers from Government Agencies
Safety, quality, and construction standards regulations may limit the use of new building materials. The approval and certification processes can be complex and time-consuming.
- Challenges: Delays in bringing products to market, increased compliance costs, and the risk of not meeting standards.
Mitigation Strategies:
Collaboration with Government Agencies:
- Establish close relationships with relevant authorities, attend meetings, and workshops to stay updated and comply with the latest regulations.
- Seek advice and support from experts in the regulatory field to ensure legal compliance.
Finding Strategic Partners:
- Collaborate with quality certification and inspection organizations to ensure products meet the necessary standards.
- Look for reputable strategic partners in the construction industry to jointly develop and market the products.
Proactive Investment in Research and Development (R&D):
- Invest in R&D to improve product quality and ensure compliance with stringent standards and regulations.
- Conduct tests and obtain certifications before bringing products to market.
Risk 3: Challenges in Scaling Up for New Projects
Expanding production from small to industrial scale can be challenging, including maintaining product quality, ensuring a stable supply of raw materials, and effectively managing the production process.
- Challenges: Difficulty in increasing production capacity, high investment costs, and the risk of not meeting market demand.
Mitigation Strategies:
Supply Chain Management:
- Develop an effective supply chain management system to ensure a stable and quality supply of raw materials.
- Establish long-term contracts with agricultural raw material suppliers to ensure sustainable supply.
Seeking Investment Sources:
- Look for funding and investment from venture capital funds, banks, or financial institutions to secure sufficient capital for scaling up. In which, our plan for funds allocated as following: 2 billion VND in equity (10% ownership), 3 billion VND in a 5-year loan Angel investor, Social Policy Bank Covers fixed costs (48%) and part of variable costs (52%) in the first year of operation.
- Develop a detailed business plan to convince investors of the project’s growth potential and profitability.
Parties Welcoming and Opposing the Model:
Supporters: Environmental organizations, sustainable development agencies, socially responsible investors, and customers who are concerned about using green/light household construction materials, green/light construction materials for industries, and building container houses.
Environmental Organizations:
- Reason for Support: They care about protecting the environment and reducing the negative impact of the construction industry. Building materials made from agricultural waste help reduce waste and use sustainable resources.
- Impact: Support from environmental organizations can bring positive public attention and attract environmentally conscious investors. They can also help connect with funding sources and provide technical support.
- Interaction Strategy: Collaborate with environmental organizations to run awareness campaigns, participate in environmental events, and publish reports on the positive environmental impacts of the project.
Sustainable Development Agencies:
- Reason for Support: They promote sustainable development projects and may see your model as an example of efficient resource use and environmental protection.
- Impact: They can provide funding, technical support, and help access new markets.
- Interaction Strategy: Participate in sustainable development programs and projects, share information and results of the project, and apply for grants from these agencies.
Socially Responsible Investors:
- Reason for Support: They are interested in investing in projects that provide social and environmental benefits alongside financial returns.
- Impact: Investment from this group can provide the necessary capital for the project and enhance the company’s positive image.
- Interaction Strategy: Create clear reports on the social and environmental benefits of the project, reach out to socially responsible investors, and participate in socially responsible investment events.
Customers Interested in Green/Light Materials:
- Reason for Support: They want to use environmentally friendly products that are also beneficial for health.
- Impact: They can become potential customers, boost sales, and spread awareness of the product to a wider community.
- Interaction Strategy: Develop marketing campaigns focused on the benefits of green and light building materials, provide detailed product information, and demonstrate benefits through real-life cases.
Opposers: Traditional construction material manufacturers, suppliers heavily invested in non-sustainable practices, and regulatory bodies resistant to change might oppose our model due to its disruptive nature.
Traditional Building Material Manufacturers:
- Reason for Opposition: They may see your model as a direct competitive threat, reducing revenue from their traditional products.
- Impact: They might launch opposition campaigns and pressure distributors and contractors not to use the new product.
- Interaction Strategy: Organize workshops to present mutual benefits and explore ways to collaborate instead of competing. For example, collaborate for them to supply materials or support services for your product.
Suppliers Heavily Invested in Unsustainable Practices:
- Reason for Opposition: They have invested heavily in unsustainable practices and may see your model as a threat to their investments.
- Impact: They might refuse to supply materials or services, complicating your supply chain.
- Interaction Strategy: Seek alternative supply partners or collaborate with these suppliers to help them transition to sustainable practices. Highlight the economic and environmental benefits to persuade them.
Regulatory Agencies Slow to Innovate:
- Reason for Opposition: They may resist changing existing regulations and standards, especially if new processes require updates and additional approvals.
- Impact: They could slow down the approval process for new products, causing delays in bringing products to market.
- Interaction Strategy: Build good relationships with regulatory agencies by participating in meetings, workshops, and industry events. Provide scientific and technical evidence to prove the safety and effectiveness of new products.
Categories of Backers:
- Environmental NGOs and Advocates:
Why: They should contribute because our project aligns with their mission to promote sustainability and reduce environmental impact.
Offer: In exchange, we can provide visibility for their cause through joint marketing efforts or recognition in our products.
Delivery: They can contribute through funds, expertise in sustainable practices, and advocacy support via media, or encourage their networks to try our products.
- Government or Municipal Bodies:
Why: They have an interest in promoting sustainable practices and reducing waste.
Offer: Collaboration on regulatory support, grants, or subsidies for sustainable initiatives.
Delivery: Contributions could come in the form of grants, tax incentives, or streamlined permitting processes.
- Investors and Venture Capital Firms:
Why: They seek promising ventures with potential for growth and positive societal impact.
Offer: Potential for financial returns, access to networks and expertise.
Delivery: Investments in your project in exchange for equity or revenue-sharing agreements.
- Construction Companies and Developers:
Why: They seek innovative materials that align with sustainability goals and regulatory requirements.
Offer: Access to a new, sustainable building material supply chain, potentially at competitive prices.
Delivery: Pre-orders, joint development agreements, or strategic partnerships.
- Academic Institutions and Research Centers:
Why: They are interested in advancing knowledge and technology in sustainable construction.
Offer: Research collaboration, access to facilities, and expertise.
Delivery: Collaborative research projects, access to laboratories or testing facilities.
Importance of Contributions to Business Development:
Contributions from these backers are crucial for scaling up production, conducting further research and development, and establishing market presence to the public.
They also help cover costs associated with material processing, marketing, distribution, and compliance with regulations.
Matching Business Needs with Contributions:
| Business Need | Contribution Required | Potential Backers | Impact on Development |
| Production equipment | Operational Funding | Equipment suppliers, Investors | Scaling, Funding resource |
| Market Entry | Market Access, Marketing | NGOs, Marketing firms | Market Presence, Demand from potential customers |
| Regulatory Compliance | Advisory Services | Government bodies | Compliance, Credibility |
C2. Risk Managements
Explain the key lessons learned from your fieldwork to highlight the most important factors that can bring your business to social and financial strength as well as the key risks that can kill your business
- Financial risk management:
| Agent | Affect | Proposed Solutions |
| Operating costs are higher than the set level | – Affects or slows down the progress of the project
– Reduces net profit – Difficulty in repaying debt, investing in product development or expanding scale |
– Use ABC in cost management
Reconciling advertising indicators reporting like eCPM, Ad Request, Fillrate or CTR |
| Revenue did not meet expectations | – Reduce profits or even cause losses | – Optimize marketing activities, reduce unnecessary operating costs |
| Inventory | – Too many products compared to the actual quantity sold -> large inventory: A lot of capital is retained, difficult to liquidate, difficult to preserve products
– Lacking too many products compared to consumer needs -> loss of business reputation, bringing a bad experience to customers |
– Use the following inventory management strategies:
1. Determine the ideal inventory level (It is expected that the amount of inventory will be about 20% of the number of products sold. In 2024, the amount of inventory: 2000 products) 2. Secure reliable supply chain: Develop strong relationships with suppliers to guarantee consistent product availability and quality. 3. Conduct inventory audits: Regularly assess inventory based on factors like coconut crop cycles to identify and address any discrepancies or losses. |
| Loan interest increases | – Businesses have to pay a larger debt, pressure to repay short-term debt
– Limit the ability to invest in expanding operations, researching new products, and investing in facilities |
– Debt restructuring
– Mobilize capital from owners (issuing shares) – Increase revenue and profits – Find additional sources of income other than sales – Seek advice from financial experts to provide specific solutions for your business’s financial situation. |
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Material source risk:
Scarcity of straw raw materials due to natural disasters: Natural disasters can trigger straw shortages. Events like typhoons (e.g., Typhoon Noru in 2022) devastate growing regions, leading to seed scarcity and production disruptions.
This risk assessment group has quite serious consequences but can be foreseen by updating weather forecast information and reserving straw materials, changing the supply source to other provinces and regions in the country.
The main straw material is scarce due to massive exports: High demand from export markets (Japan, Australia, New Zealand) poses a risk of raw material shortages for Vietnamese straw production. While government and supplier information can help anticipate this risk, only short-term solutions are available, like adjusting production or sourcing strategies.
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