blank

blank, llca new multi-modal building concept

926 Liberty Avenue, pittsburgh, pa

partners:emily mccoy, kamille neely, colten gill,and alyssa edwards

december 2016

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Blank, llc executive summary

Blank, LLC is a multipurpose venue that provides space for students and young professionals to live,work, and play. A trendy tertiary space for customers (somewhere in between the home and the office), Blank, LLC will provide a new model for buildings that caters to those looking more for experiences, not things.

Currently, few competitors exist in the coworking space industry, although that is changing quickly. Inaddition, there are a few student housing options in the city, although they tend to be on the more expensive side. As of now, there is nothing on the market that combines the two, creating a unique space for productivity and creativity that will allow our customers to thrive in their personal and professional lives.

Things that separate Blank, LLC from other options include the historic nature of the building, thelocation in Downtown Pittsburgh, and the strategic partnerships that exist with key power-players in the city. With the Pittsburgh Cultural Trust, our gallery space will be in the same footprint as some of the most prestigious theaters and galleries in the region. In addition, working with the Urban Redevelopment Authority, the renovation of the historic building will help to further establish the booming Downtown neighborhood.

Serving as the main management is a group of four driven graduates from Point Park University withvaried experiences in events, logistics, financials, and management. Adding to the drive and creativity isthe wisdom of Blank, LLC's advisory board, consisting of Kevin McMahon, CEO of the Cultural Trust,Jeremy Waldrup, CEO of the Pittsburgh Downtown Partnership, the Urban Redevelopment Authority's Project Development Specialist, and members of Point Park and Duquesne Universities.

Our location on Liberty Avenue is an area that is set to rapidly expand within the next five to ten years. With the redevelopment of Smithfield Street, our building caps off an area that is undergoing major growth. With Real Estate management provided by Meyers Management, Blank, LLC will be able to focus on the larger picture while tenant leasing is managed by one of the top firms in the city. Leasing out space to Espresso a Mano, a top coffee shop in the Lawrenceville neighborhood expanding into the vibrant Downtown market, our lobby will be one full of near-constant activity.

Blank, LLC plans to finance the purchase of the building with an initial loan, aided by investors and sponsorship opportunities (our audience is one of the most sought out markets today). After the initial purchase, grants provided for the renovation of a historic building and for the increase of residential space in Downtown will fund the renovation that will turn the building into a multi-use destination. Our projections show a positive growth for the first two years with the use the of the grant revenue, followed by a small deficit in the third year which is made up by the increasing revenue following the renting out of space in the upper floors. Once renovations are complete, the majority of expenses can be depreciated over several years of the business, and income is projected to trend positive following the completion of construction.

Blank, LLC will be expanding in the long-term, carrying this multi-modal building plan to other cities on a similar scale to Pittsburgh.

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The undersigned reader (Receiving Party) of Blank, LLC’s Business Plan hereby acknowledges that the information provided is completely confidential and therefore the reader agrees not to disclose anything found in the business plan without the express written consent of the owners of Blank, LLC.

It is also acknowledged by the reader that the information to be furnished in this business plan is in all aspects confidential in nature, other than information that is in the public domain through other means and that any disclosure or use of the same by the reader may cause serious harm and or damage to Blank, LLC.

Upon request this business plan document will be immediately returned to Blank, LLC.

This is a business plan. It does not imply an offer of any securities.

Receiving Party

Name:Date:

Important: Non-Disclosure Agreement

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table of contents

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company description

Blank, llc summary description of the business

Blank, LLC was formed in the fall of 2016 in order to fulfill a need in the Downtown Pittsburgh marketplace that has yet to be fulfilled. Establishing a new form of a multi-modal venue that can be applied to various cities across the country in markets similar to Pittsburgh, Blank, LLC seeks to provide important spaces to those looking to create, live, work, and play in an urban environment.

Mission Statement: Blank, LLC will provide affordable, modern housing for students and young professionals while cultivating a creative and dynamic multi-purpose space. Blank, LLC’s customers will develop their talents and ventures through an ever-changing tertiary destination that provides gallery and event space, artistic studios, and a healthy working environment for all involved.

Trademarks, Copyrights, and other Legal Issues:The brand and name of Blank, LLC are both trademarked. In addition, various licenses and permits are required for construction and operation of a facility, which are discussed later in the plan.

Strategy:Blank, LLC will utilize strategic partnerships with key Downtown Pittsburgh stakeholders that can provide necessary connections, expertise, and funding in order to ensure the growth and success of the business.

The key partnerships that have been established include with Point Park University and Duquesne University, as Blank, LLC will be a vital resource in the limited footprint of Downtown Pittsburgh that provides an additional source of student housing. In addition, by partnering with Blank, LLC, these institutions are able to offer valuable studio and work spaces that just cannot exist on their current campuses,.

Additional strategic partnerships include the Pittsburgh Cultural Trust, the Pittsburgh Downtown Partnership, Pittsburgh History and Landmarks Foundation, and the Urban Redevelopment Authority.

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Blank, llc Products and services

Blank, LLC’s services provide resources for our customers to be self-sufficient, while also being available to consult on projects in addition to providing affordable housing for young professionals. The overall goal of the service is to ensure a clean and well-maintained facility that is easily adaptable to various needs. Blank, LLC will maintain a supportive and positive environment in all aspects of the business.

Blank, LLC will strive to create a positive work environment for all individuals involved, consisting of management staff, workers in the leased operations, in-house event coordinators, and others. Aside from a focus on creating a healthy work space, Blank, LLC will offer state-of-the-art sound and light technology for our event rentals, as well as computer technology in the work space.

Building layout

Floor 1: Entrance lobby, space for business rental (coffee shop location), lounge space, management officeFloor 2: Co-working space, event and gallery spaceFloors 3 - 6: Apartments for rentRooftop: Shared garden space

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Blank, llc location

The first location for Blank, LLC will be at 926 Liberty Avenue in Downtown Pittsburgh. A busy corridor, the location is close to a major parking garage, offices, restaurants and bars, Point Park University’s campus, and is also in the heart of the Cultural District which provides Broadway-style theaters and contemporary art galleries right within walking distance.

The building is already constructed, and currently vacant. To be purchased by Blank, LLC, the structure will be renovated from the inside with the use of a contractor so that it may be custom-fitted to Blank,LLC’s needs.

development stage and milestones achieved

Blank, LLC is currently in the preliminary stages of planning and development. Milestones achieved to date include the industry and preliminary plans for the business, a formed mission statement, as well as a first location.

Financial status

The financial status is difficult to assess, as Blank, LLC is a start-up company and there are no previous records to base it on. Initial funding, however, will primarily go towards the purchase of the building and making the necessary renovations. Investors include our strategic partners (the Urban Redevelopment Authority, the Pittsburgh Downtown Partnership, Point Park University, Duquesne University, and the Pittsburgh Cultural Trust). In addition, financial contracts must be secured with the real estate management company (Meyers Management) and the coffee shop partner (Espresso a Mano, which has a flagship location in Lawrenceville, Pittsburgh, PA). Grants from the state of Pennsylvania, the city of Pittsburgh, and others focused on redevelopment make up a majority of our financial leverage.

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management

Blank, LLC is a limited-liability corporation that is managed by four partners: Colten Gill, Emily McCoy, Alyssa Edwards, and Kamille Neely. Housing is controlled by a real estate management partner, Meyers Management, based out of Pittsburgh, PA.

In addition to the four business partners, Blank, LLC is served by an Advisory Board consisting of several key players from Downtown Pittsburgh (as Blank, LLC’s goals align heavily with their goals to activate and create a more beautiful urban center in Downtown).

Advisory Board:Jeremy Waldrup, CEO & President of the Pittsburgh Downtown PartnershipKevin J. McMahon, CEO & President of the Pittsburgh Cultural TrustMariann Geyer, Vice President of Point Park UniversityJohn Plante, Vice President for University Advancement of Duquesne UniversityDavid Howe, Manager of Pittsburgh Housing Development Corp, Urban Redevelopment Authority

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industry analysisand trends

Blank, llc size and growth rate of industry

Blank, LLC is unique in that it is made up of multiple industries in one dynamic company.

Student Housing Industry- The National Center for Educational Statistics projects that the student population will reach 23 million by 2020. They have also reported that from 1980-2012 the number of university students grew from 12.1 million to 21.5 million. The sales activity of student housing is mostly stable as well. Real Capital Analytics graph depicts properties sold being within the 100s for 3 years prior to the market drop in 2008 and for 3 years after starting in 2011. However, even during that economic downturn student housing sales still accounted for $491 million.

Coffee Shop Industry- According to First Research in 2011 there were 20,000 coffee shops in the U.S. with combined revenues of $10 billion. In additionaddition, 70 percent of sales are generated from the top 50 coffee shop operators The international sector is a growing area for the top coffee chains. The gross margin for a coffee shop is around 85 percent with an average operating income of 2.5 percent of net sales. The National Coffee Association reports that 78 percent of adults drink coffee and of that 58 percent drink it daily.

Event Space Industry- According to Meeting Professionals International there are roughly 18 million events and meetings organized in the U.S. each year . This translates to $280 billion in spending and $66.8 billion in labor income. It also currently employs 100,000 workers. The U.S. Census Bureau expects that this industry will grow 10 percent by 2024.

Work Space Industry- Forbes reports that there are over more than 7,000 different companies opening up around the globe. The Global Coworking Survey expects to see that number jump to 10,000 spaces in the U.S. alone. The average size of these spaces is 76 members.

industry maturityStudent Housing Industry- This industry has been around for many years. Since the development of colleges, students have been seeking off campus housing to live in. The first college was developed in the 1600s.

Coffee Shop Industry- Coffee became popular in 1773 during the Boston Tea Party for obvious reasons. Since then coffee shops have been popping up. In 1950 Dunkin Donuts was established and Starbucks came later in 1971.

Event Space Industry- People have been holding events, meetings, and gatherings for centuries. However, it has not been until recent decades that this has turned into aan industry.

Work Space Industry- In 1999 DeKoven first came up with the term “coworking” in the hopes to facilitate collaborative work and meetings coordinated by computers.

33.7%Population growth inDowntown between 2010and 2015.

Source: Pittsburgh Downtown Partnership “State of Downtown.” 2016. 6

Blank, llc sensitivity to economic cycles

Student Housing Industry- Off campus privately owned apartments/rentals are highly sensitive to economic cycles.

Coffee Shop Industry- Coffee Shops have a medium sensitivity to the changing economic cycles. People are always drinking coffee: it is a luxury but not enough to be the first thing that individuals cut out.

Event Space Industry-This is considered to be of medium sensitivity. When the economy is bad people will still rent the space but require no extras from the company.

Work Space Industry- This is highly sensitive to economic cycles. This would be considered a luxury and one of the first things people would cut out from their budgets during an economic downtown turn. When the economy is good more people would be interested in getting involved in this industry.

Seasonal factorsSince Blank, LLC’s target market consists primarily of college students, we are likely to have more down time in the summer since many students go back home during this time. This would be a time when the in-house event coordinator will take over greatly, to ensure that there are not many dark days in the summer. The coffee shop will also market itself more during the summer months, boosting revenue for the organization.

technology factors

Student Housing- One of the biggest factors in this industry is the Wi-Fi capabilities. People today want fast and reliable internet access. Many buildings offer free Wi-Fi in the common spaces and even in outdoor spaces.

Coffee Shop- Technology is very important in this field for both customer experience and brewing the coffee itself. It is important that the machines used to make the drinks are up to date so as to be able to keep up with trends. It is also important to keep up with customer experience trends. For exampleexample, you can pay at Starbucks off your phone and order ahead to skip the line. This technology would be incorporated by the coffee business that is leasing the space and operating the actual shop.

Event Space- Technology is an important factor here as well. Customers want to have access to up to date lights and sounds systems. For presentations they will need to be able to have access to Wi-Fi, projector, or TV with the proper cables. Lack of up to date technology could cause customers to go elsewhere to hold their events.

Work Space- One of the biggest demands right now is easy-to-integrate technology to connect members. In additionaddition, cloud connectivity for different forms of technology is big right now. Being able to have the air conditioner programed to turn on an hour before the building opens, elevators accounting for rush hour, and printing over Wi-Fi are all aspects of the cloud.

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Blank, llc Regulation and certification

Blank, LLC will need to acquire a number of permits and certifications in order to begin the process of operating a multi-use venue.- Construction/Renovation Permit- Sales Permit- Sales Tax Permit- Liquor License- Food & Beverage Sales License- Occupancy License- Alarm Permit

financial characteristics

Coffee Shop- The average revenue of a coffee shop for the last 4 years (2011-2015) is $7,562,647.20. The average owner earnings for those same 4 years are $553,476.40.

changes and trends in industry

Student Housing- In the student and young professionals housing market some of the trends presently are included utilities, micro unit housing, mixed use, incorporating collaborative spaces to encourage engagement, innovative flexible common spaces, affordable cost, and eco-friendly features.

Coffee Shops- Coffee Shop trends for 2016 include: non cookie cutter environment, interactive (family style serving, long-communal tables, barista’s that come out from behind the counter), Signature blends (baristas mixing blends to create their own), coffee “On Tap”, mixed use (different nighttime menu, fresh baked breads), and), and innovative menus that are not just focused on sweet treats.

Event Space- There are many trends in the event industry some of these include: attendee engagement, security, participant matchmaking (apps and planning tools to help people connect), and streamlined tools.

Coworking Space- The trends in this industry include: targeting niche communities to build a stronger sense of community and therefore more loyalty to their individual brands, multiple locations, larger spaces, new services (Concierge, group discounts, etc.), corporate partnerships, and expanding beyond work.

$74.2 billionAmount that consumers spent on coffee beverages in 2015.

Source: National Coffee Association. 2016.

operations

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Blank, llc plant and facilities

Location: 926 Liberty Avenue, Pittsburgh, PA 15222Building Status: Currently VacantCost to purchase: approximately $1.1 million (compared to the city average for similar sized and placed structures)Estimated Renovation Costs: approximately $1 million (compared to other similar projects in the city of Pittsburgh)Building terms: Owned by Blank, LLCUtilities: utilizing Duquesne Light for electricity, Pittsburgh Sewer and Water Authority, Peoples Natural Gas, and Verizon for telephone/internet/cable service

labor requirementsBlank, LLC will require the core management team, an on-site event coordinator, and janitorial staff.

capital utilization

Blank, LLC will need $1.1 million to purchase the building, $1 million for renovations and fitting out the spaces, and will seek funding from the following sources: private loans, investors, sponsorship opportunities, and partner contributions.

quality controlBlank, LLC will provide quality housing, host quality events, and create a positive work environment for students and young professionals. Blank, LLC will utilize an online system available for customers to make maintence requests and host satisfaction surveys, and then will use the information in order to make necessary changes.

equipment and furnitureBlank, LLC will have future equipment leases with sound and light companies for events, as well as event furniture. Apartments will be mainly unfurnished, allowing customers to customize their space. The lobby, work, and event spaces will be supplemented with chairs, desks, and tables.

supply and distributionWhile Blank, LLC will not be distributing any product, the services that we provide need supplies to be able to properly perform. Our maintenance staff will need cleaning supplies and tools to clean all common areas. Our office will need regular supplies like pens, paper, ink, paper clips, stables, tape, etc. W.B. Mason can provide all of these supplies and deliver it straight to our building. The areas in which they offer supplies are: office supplies (envelopes, stamps, shredders, post it notes), paper (regular computer paper, cardstock, notepads, colored paper, photo paper), ink and toner (Canon, HP, Brother, Epson, Xerox), technology (printers [including 3-D], laminators, calculators, mice, keyboards, computer cables), facilities maintenance (ice melt, dollies, trash bags, trash cans, floor mats, restroom accessories), furniture ( desks, chairs, filing cabinets, safes, partitions, pegboards), and industrial (bulk quantities of cleaning supplies, trash bags, protective gear).

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Blank, llc order fulfillment and customer service

Customer Service will be handled mainly through the four managers for the event spaces, with housing questions and services going through the real estate management company.

financial controlFinancial control will remain with the four managers. To prevent loss and embezzlement, checks will be written by one manager and signed by another, with checks over $5,000.00 requiring a signature from both a manager and a member of the advisory board.

contingency planning

Planning includes the prevention of foreseeable accidents. With the building meeting appropriate fire codes, and by maintaining the safe environment of the building, most incidents that may occur would be small or handled with the plan in place. Plans to be developed: fire safety plans, severe weather plans, burglary and vandalism plans, etc.

other operational concernsMaintaining the event space which will be accomplished by developing a set of use guidelines. Maintaining the living quarters will be accomplished by the lease terms, limiting any potential damaging behavior.

security, insurance, licences, and permitsA full-building security system will be in place, along with the required insurances. The security system will be monitored 24 hours a day, 7 days a week. Building access will be restricted outside of normal building hours, and only authorized tenants can access the elevators to the upper floors through the use of a key fob.

Necessary permits:- Construction/Renovation Permit- Sales Permit- Sales Tax Permit- Liquor License- Food & Beverage Sales License- Occupancy License- Alarm Permit

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technology plan

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Blank, llc technology goals and position

Blank, LLC’s position is to utilize the most recent technology in order to both entice our customers and to provide sales and support. With a website that is regularly updated, and by utilizing software and technologies that are industry standards, Blank, LLC will be able to provide the best experience to our demographic.

internet goals and plansBy utilizing a web-host such as Squarespace, Blank, LLC will be able to have a modern website that is responsive in design and able to be flexible to both provide information and also act as a resource for customers (by paying rent online or renting spaces on your phone).

Software Needs

Blank, LLC will need a ticketing software, such as EventBrite , for any events hosted in the space. Blank, LLC will need Adobe systems as well as Microsoft systems to help with graphic design, advertising needs, and financial structure. QuickBooks will also be utilized for accounting for the organization. Blank, LLC will use QuickBooks Plus, which is $40 a month. This allows Blank to directly provide invoices for customers, track income and expenses, create and manage estimates, pay bills, and gives instant sale and profit reports. It will be related to Blank’s customer relationship management in the sense that we are directly providing a customer invoice. It is a cloud-based solution, as Quick Books is entirely online.

hardware needsHardware needs include computers for the management office, printers, a phone system, and internet hardware. Blank, LLC will be utilizing Windows Operating System on laptop computers.

telecommunications needsTelecom needs include telephones and internet routers to provide Wi-Fi throughout the space, both for management and for customer use.

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management and organization

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Blank, llc key employees/principals

Blank, LLC’s key employees are made up of the four managing partners: Colten Gill (Director of Marketing), Emily McCoy (Director of Finance), Alyssa Edwards (Director of Operations), and Kamille Neely (Director of Events/Sales).

compensation and incentives for key employeesKey employees will receive health and dental insurance, participation in a retirement plan, and a scaled number of Paid Time Off days based on experience and longevitiy with the company.

advisory board

management to be added

organizational chart

management style/corporate cultureThe management style is, for the time being, focused greatly on teamwork. None of the managers hold a higher position above the other, and are all working together toward a common goal. The mission statement is what the company is greatly guided by, wanting to provide a safe, positive, creative environment for aspiring young professionals, while also ensuring that the employees and management staff is involved in a positive environment, as well.

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Jeremy Waldrup, CEO & President of the Pittsburgh Downtown PartnershipKevin J. McMahon, CEO & President of the Pittsburgh Cultural TrustMariann Geyer, Vice President of Point Park UniversityJohn Plante, Vice President for University Advancement of Duquesne UniversityDavid Howe, Manager of Pittsburgh Housing Development Corp, Urban Redevelopment Authority

As Blank, LLC expands into further cities, the four partners who form the management team will move into more senior advisory roles to plan the larger picture of the operations and additional management staff will be added.

Advisory Board

Colten Gill Emily McCoy Alyssa Edwards Kamille Neely

Event Coordinator

Marketing Finance Operations Events/Sales

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Target Market

Blank, llc Demographics/geographics

Demographics: Blank, LLC will be seeking customers and consumers who are college/university students and young professionals between the ages of 18 and 28.

Geographics: Blank, LLC’s customers and consumers will be people that live and work in the Downtown Pittsburgh geographic region.

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lifestyle and pyschographics

A snapshot of the typical Blank, LLC customer: “Creative Cathy.”Personality: creative, ambitious, works in addition to schoolingLifestyle: active, multi-tasking, ”very East Coast”Hobbies: not sleeping, art, music, danceReads: New Yorker, NextPittsburgh, City PaperLikes: Coffee, being on-the-go, gallery openings, underground parties

buying sensitivities

As Blank, LLC is targeting predominantly students and young professionals, their buying sensitivities will focus greatly on price and value. Blank, LLC’s customers will constatnly be sensitive to a better offer coming about, so Blank will ensure that the prices remain reasonable and offer the best accomodations and event/working spaces in the area. To ensure a loyal customer base, Blank, LLC will offer specials and discounts to returning customers using our studios, work and event spaces, as well as offer discounts to those spaces and to the coffee shop for our residents.

Market Size and Trends

Student Housing Industry- The National Center for Educational Statistics projects that the student population will reach 23 million by 2020. They have also reported that from 1980-2012 the number of university students grew from 12.1 million to 21.5 million. The sales activity of student housing is mostly stable as well. Real Capital Analytics graph depicts properties sold being within the 100s for 3 years prior to the market drop in 2008 and for 3 years after starting in 2011. However, even during that economic downturn student housing sales still accounted for $491 million.

Coffee Shop Industry- According to First Research in 2011 there were 20,000 coffee shops in the U.S. with combined revenues of $10 billion. In addition, 70 percent of sales are generated from the top 50 coffee shop operators. The National Coffee Association reports that 78 percent of adults drink coffee and of that 58 percent drink it daily.

Event Space Industry- According to Meeting Professionals International there are roughly 18 million events and meetings organized in the U.S. each year. This translates to $280 billion in spending and $66.8 billion in labor income. It also currently employs 100,000 workers. The U.S. Census Bureau expects that this industry will grow 10 percent by 2024.

Work Space Industry- Forbes reports that there are over more than 7,000 different companies opening up around the globe. The Global Coworking Survey expects to see that number jump to 10,000 spaces in the U.S. alone. The average size of these spaces is 76 members.

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For the local market, Pittsburgh, the size is as follows:

University of Pittsburgh reports that in 2016 they had 28,649 students currently enrolled. Of this number 44 percent live on campus while the other 56 percent live off campus. On campus housing costs students $10,950 for room and board every year.

Point Park University reports for 2016 that total enrollment was 3,844 students. Of this number only 32 percent live in campus housing and the other 68 percent live off campus. On campus housing costs students $10,840 every year.

Duquesne University states that 5,961 students were enrolled for the 2016/17 school year. Here 56 percent live on campus and the other 44 percent live off campus. On campus housing costs these students $11,760 every year.From the three big universities in the city there are 38,454 students in total.

Suburbanstats.org estimates that there are 34,998 individuals living in Pittsburgh from the ages of 18-29. In addition the U.S. Census Bureau reports that the median rent in Pittsburgh from 2010-2014 was $794.

68%Number of Point ParkUniversity students wholive off-campus.

Source: Point Park University

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The competition

Blank, llc Competitive position

In order to keep Blank, LLC striving above all of the rest, the company will offer benefit packages that no other event space has, including incentives that are only available for students and residents of Blank, LLC. We will maintain a fun and ever-evolving working space that is suitable to any and all needs while offering a coffee bar and lounge space. Blank, LLC is extremely adaptable and we want to give not only our residents, but other Pittsburgh locals a safe place to productively work on their craft of choice and express it freely.

By offering an off-campus environment for students and a tertiary space for working professional, Blank, LLC fills a need in Downtown Pittsburgh for adaptable space to work and recreate that is different from a chain coffee shop or school library. In addition, the location in the heart of the Cultural District ensures heavy foot traffic while being close to nearby amenities and places of gathering.

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future competition

As far as future competition is concerned, other locations in the Pittsburgh area that offer off campus student housing will pose a threat to the company because all students are always looking for the next great deal. Students and young professionals want to ensure they are getting the best return for their investment, which does not just stop at affordable apartments: they are also looking for amenities that allow for creative outlets that no one else offers in the Pittsburgh area.

barriers to entry

Barriers to entry include the capital requirements that align with purchasing and renovating a building in Downtown Pittsburgh, in addition to the other start-up costs. A limited amount of real estate is available Downtown, and, once established, future competitiors would have to secure the numerous permits and licenses that accompany building purchase, zoning laws, renovation and construction, etc.

Market share distributionAs Blank, LLC is filling an unmet need in Downtown Pittsburgh, the company will have limited difficulties in establishing and maintaining a majority stake in the market share of Downtown. Limited other options at the current time further increase the majority hold that Blank, LLC will be able to establish.

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Strategic position andrisk assessment

Blank, llc industry trends

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Student Housing- In the student and young professionals housing market some of the trends presently are included utilities, micro unit housing, mixed use, incorporating collaborative spaces to encourage engagement, innovative flexible common spaces, affordable cost, and eco-friendly features.

Coffee Shops- Coffee Shop trends for 2016 include: non cookie cutter environment, interactive (family style serving, long-communal tables, barista’s that come out from behind the counter), Signature blends (baristas mixing blends to create their own), coffee “On Tap”, mixed use (different nighttime menu, fresh baked breads), and), and innovative menus that are not just focused on sweet treats.

Event Space- There are many trends in the event industry some of these include: attendee engagement, security, participant matchmaking (apps and planning tools to help people connect), and streamlined tools.

Coworking Space- The trends in this industry include: targeting niche communities to build a stronger sense of community and therefore more loyalty to their individual brands, multiple locations, larger spaces, new services (Concierge, group discounts, etc.), corporate partnerships, and expanding beyond work.

target marketBlank, LLC’s target market is students and young professionals primarily within the Downtown Pittsburgh area. These individuals seek to live in a creative, dynamic, and modern space at a low price point while still maintaining a high-quality environment.

competitive environmentBlank, LLC’s major competition is with other living arrangements, both on- and off-campus for students especially. Blank will remain competitive by offering a low price point at a convenient location to campus. In addition, Blank, LLC will remain competitive with other workspaces and studio spaces as well by offering lower prices and more options for our users.

company strengthsThe strengths of Blank, LLC include the location being in the center of the Business District giving students and professionals the opportunity to thrive in a professional environment. The multipurpose facility will allow Blank, LLC to serve a large variety of customers and consumers. In addition, by employing an in-house event coordinator, Blank, LLC will be able to provide hands-on assistance to our customers while turning over the management of apartment leasing to a real estate company will lift some of the liability and concerns away from the LLC.

In addition, the modular nature of the business allows for trial-and-error, while the basic idea can easily be transferred from one locale to another, providing for immense opportunities for growth.

Blank, llc risks assessment

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Some of the major risks facing Blank, LLC can be broken up into five different categories: market risk, technology risk, product risk, execution risk, and capitalization risk.

Market Risk: There is a medium risk factor with the market due to the competition of other student housing, coffee shops, event space, and coworking buildings. In order to combat this Blank, LLC will continuously research what other companies are doing to make sure that it stays one step ahead of the competition.

Technology Risk: This is a low risk factor. There is only one way in which Blank, LLC must be prepared for changes and that is with the sound and light systems for the event space. Blank will research changes to stay abreast of trends.

Product Risk: Blank’s risk factor for this is at a medium level. There are other housing and event space options available in downtown. However, these do not cater to students. As Blank puts young professionals and students as the priority, Blank, LLC will have an advantage over the other properties.

Execution Risk: This is the highest risk factor that Blank has. There are very high start up costs associated with buying and renovating older buildings. Partnerships with the Pittsburgh Cultural Trust, Urban Redevelopment Authority, and local universities will help to lower the costs. Budgeting properly estimated costs for the renovation will help us to ensure that we do not go over budget drastically.

Capitalization Risk: Blank’s risk factor here is at a medium level. Since the starts up costs are so high it will take a significant amount of time to earn back all of the money spent and turn a profit. Pricing of our products and services while utilizing grant funding will be key so as to cover expenses while customer costs low.

definition of strategic positionBlank, LLC’s customers will develop their talents and ventures through an ever-changing secondary destination that provides gallery and event space, artistic studios, and a healthy working environment for all involved. A much needed reprieve from the crowded Starbucks and boring University libraries, Blank will make money by activating Downtown Pittsburgh by utilizing one of its largest populations. An easily replicated “modular” business model that can be adapted to fit specific locales as Blank expands, investors can expect to become part of a new model that caters to the experience-based generation, one that is more likely to spend money towards experiences over retail goods. By surrounding a creative space with different modules (coffee shop, concert hall, community garden, etc.), Blank can fit whatever the space requires.

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marketing plan andsales strategy

Blank, llc company message

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Blank, LLC is in innovative tertiary space for Downtown: in between home and working spaces, Blank, LLC is an open canvas for students and young professionals to utilize. Nestled among the galleries of Downtown Pittsburgh, the rentable gallery space will provide a workspace for the hundreds of art students and young professionals - something that is currently lacking in the Downtown neighborhood, while also remaing responsible to the community it’s in.

marketing strategyThe marketing strategy will be to focus heavily on the students and young professionals Blank, LLC is looking to target. By placing ads within the universities, targeted social media placements, and through the strategic partnerships, Blank, LLC will be able to engage with a large number of highly segmented demographics, producing the most return on the marketing investment.

marketing tacticsSocial Media: bulk of the marketing; placing ads that target users who live in the city of Pittsburgh and are current or recently graduated college students; engaging with students who are newly accepted to universities and school in Pittsburgh; targeted ad placement of the parents of students who are posting about universities and jobs in Pittsburgh

Print: a focused print campaign in University publications (such as the Globe), on University billboards, and on heavily-populated Port Authority buses

TV/Radio: very limited TV and radio campaign that aims to reach recent graduates and professionals

Program Ads: ads placed in the Cultural Trust and Pittsburgh Playhouse programs will further the reach of Blank, LLC’s efforts

Word-of-Mouth: customer recommendations will provide a reliable source of leads

PR: a targeting PR outreach campaign will build news buzz regarding the development of a historic Downtown building into one that will benefit the local community and provide a new gathering spot for young adults

90%Number of young adultswho utilize social mediain 2016.

Source: Piew Research Center

Blank, llc Strategic Partnerships

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Universities and Colleges: by partnering with Point Park University and Duquesne University, Blank, LLC will be able to reach students while they are looking for housing and amenities in Downtown Pittsburgh. By offering first-use for the studio spaces, Point Park and Duquesne can allow more students to get hands-on experience while leading students to Blank’s housing opportunities.

Pittsburgh Cultural Trust: As a gallery in the Pittsburgh Cultural District, the partnership with the Cultural Trust not only makes Downtown’s art scene better and more fleshed out, but also allows Blank, LLC exclusive programming and marketing opportunities.

Urban Redevelopment Authority: The partnership between the URA and Blank, LLC will provide key support in the construction and development of the project.

Pittsburgh History and Landmarks Foundation: Through the joint efforts of PHLF and Blank, LLC, a historic Downtown building will be able to be revitalized and activated, ensuring the preservation of historic design in Pittsburgh.

Pittsburgh Downtown Partnership: With the PDP’s key stakeholder connections in Downtown, Blank, LLC will be able to leverage numerous relationship opportunities while supporting the PDP’s mission to further activate Downtown.

Online Marketing TacticsSee social media tactics on the previous page. In addition to social media, ad placement in online marketplaces (such as Facebook’s new Marketplace) and on Spotify, YouTube, and Apple music will target our core demographic in a cost-effective manner.

Sales force and structureResidential leases and sales will be managed day-to-day by Meyers Management, a Pittsburgh based real estate firm. Leasing of the coffee shop space will be initiated by our attorney, with payments managed by our Director of Finance. Event space rentals will be managed by the Director of Events/Sales, while the use of workspace will be handled by the Director of Operations.

Utilizing an online payment portal through Blank, LLC’s Squarespace site, memberships to the workspace can be paid daily, monthly, or yearly, while event and studio space rental will be on a case-by-case basis, with a 50 percent deposit due upfront, and remainder of the payment due on the first date of use.

69%Number of consumers who feel that online payments aremore convenient.

Source: VentureBeat.com

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social responsibilityand sustainability

Blank, llc social responsibility goals

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� Energy Star appliances in all apartments� Environmentally friendly furniture, flooring, etc.� Use of recycled and reclaimed materials in construction� Partner with companies who have good employee practices� Coffee shop to serve fair trade coffee� Plan to reduce waste (recycling, composting, etc.)� Discounted event rental for nonprofits and charities� Community garden on the rooftop

community involvement

The company plans on engaging the community through the events hosted in the event and studio space. While many of the events will be hosted by students, the fact that they are open to the public sets Blank, LLC apart from many typical on-campus events. Blank, LLC finds it important for the community to support students striving to succeed within the local colleges and universities. The coffee shop also helps involve the community in Blank’s up and coming business model, as new individuals will constantly be coming in and out of the innovative work, studio, and living space. Partnering with the Cultural Trust, the Urban Redevelopment Authority, and the and the universities will also create more opportunities for community involvement.

company policyIt is the policy of Blank, LLC to be a true P3 corporation, focusing on people, the planet, and Blank, LLC’s profits. By tying these three things into the corporate nature of Blank, LLC, the company can remain a sustainable, responsible community member that adds value to the neighborhoods and demographics it serves.

social responsibility certifications

� LEED Gold Certification for renovation of an existing structure (seeking after construction)� Energy Star Certification in apartment units (seeking after construction)

82%Number of consumers that consider corporate responsibility when decidingwhich services and productsto buy.

Source: Entreprenuer.com

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development, milestones,and financials

- Establish the entity as a Limited Liability Company COMPLETED IN FALL 2016- Form the mission statement and goals of the organization COMPLETED IN FALL 2016- Find a suitable first location COMPLETED IN FALL 2016- Develop strategic partnerships COMPLETED IN FALL 2016

- Purchase building TO BE COMPLETED IN FALL 2016- Complete phase one of renovations TO BE COMPLETED IN FALL 2017- Complete phase two of renovations TO BE COMPLETED IN FALL 2018- Purchase second location TO BE COMPLETED IN SPRING 2019- Purchase sixth location TO BE COMPLETED IN SPRING 2026

The growth of the company is going to be completed through effective marketing strategies and through producing quality events, work space, studio space, and living space. Blank, LLC plans to effectively market our new business model to allow it to thrive and grow into other cities.

Blank, llc Long term company goals

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� Blank plans to expand into other locations in different cities throughout the Northeast and Midwest. By the third year of business Blank plans to have one new location. In ten years time, Blank will have four new locations.� The number of employees will grow with the new expansions. Upon the second location the original founders will move into a corporate positions to oversee both locations. Their previous positions will be filled by individuals in the Pittsburgh area or willing to make the move to Pittsburgh. In five years the number of employees will have grown to eighteen. In ten years, with the addition of three other locations, there will be twenty four employees.� Blank will strive to increase the number of interchangeable businesses offered for the lower levels of the buildings so as to better accommodate each individual marketplace.

milestones- Establish the entity as a Limited Liability Company COMPLETED IN FALL 2016- Form the mission statement and goals of the organization COMPLETED IN FALL 2016- Find a suitable first location COMPLETED IN FALL 2016- Develop strategic partnerships COMPLETED IN FALL 2016

- Purchase building TO BE COMPLETED IN FALL 2016- Complete phase one of renovations TO BE COMPLETED IN FALL 2017- Complete phase two of renovations TO BE COMPLETED IN FALL 2018- Purchase second location TO BE COMPLETED IN SPRING 2019- Purchase sixth location TO BE COMPLETED IN SPRING 2026

Growth strategiesThe growth of the company is going to be completed through effective marketing strategies and through producing quality events, work space, studio space, and living space. Blank, LLC plans to effectively market our new business model to allow it to thrive and grow into other cities.

developmental timeline

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Blank, llc assumptions

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Building Purchase Cost: $1.1 million (building sold for $842,500 in 2012 according to the Tribune Review)

Building Renovation: $97.00 per square foot (according to estimates on http://evstudio.com/cost-per-square-foot-of-commercial-construction-by-region/

Insurance: $12,000 per year (according to source estimate from an insurance agent)

Taxes: $29,172 per year in property taxes

Furniture: $3,500 per person; 12 person-capacity co-working space and 5 person employee count

Utilities: $3.00 per square foot based on commercial estimates in Western PA

Permit Applications: $1,000 for initial renovation permit, $40 per permit application after (according to the City of Pittsburgh)

Accountant Fees: $500 per quarter (based on estimates from the Watson CPA Group)

Building Maintenance Costs: $0.50 per square foot per year (according to a 2015 estimate by the National Apartment Association)

Technology: $10,000 initial website development

QuickBooks cost: $40 per year

Computer Purchase: $8,000 for 8 total computer systems

Marketing & Advertising: assessed at 20 - 30% of the annual budget

Property Management Fees (for apartment management): $100 per month, plus $700 for each initial tenant set-up (according to Zillow)

Assume 16 apartments in total for the space

Assumed occupancy rate (based on standards by the Pittsburgh Downtown Partnership: 50% occupancy in year 1 75% occupancy in year 2 90% occupancy in year 3

Blank, llc assumptions (continued)

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Housing Revenue    $1.64/square foot. (http://downtownpittsburgh.com/what-we-do/economic-development/market-facts)

Event Space Rental Fully organized by Blank (6 per year) $100/per hour for event planner 7 hours/event on average/week $1,600 for space Total:$2,300 Total per year: 13,800, 2nd Year = 8 events, $18,400 Partially Organized by Blank (9 per year) $100/hour @ 3 hours/event on average/week $1,600 for space Total:$1,900 Total per year: $17,100 2nd Year =11 events, $20,900 Space Rental Only (12 per year) $1,600 Total: $19,200 2nd Year = 14 events, $22,400Membership Revenue Use of the space, studio access, etc. $10/day: 50 people= $500, 2nd year = 55 people, $550 $35/week: 58 people= $2,030, 2nd year = 60 people, $2,100 $100/ month membership: 10 people= $1,000, 2nd year = 12 people, $1,200Rent Revenue Coffee shop $2,000/monthPartner Contributions Point Park University: $50,000 Duquense University: $50,000Security for apartment $19.99/mo. Yearly $239.88 (www.safe.Frontpointsecuritysolutions.com )