SYNCBNB BUSINESS PLAN

By Eirini Tougli

Small business management

George Georgasopoulos

New York college

11/06/202
Executive Summary

This business plan will show how Syncbnb could be expanded through the latest

funding that has received. In 2019, the company received 770 thousand euros, to

continue to expand and help more owners to rent their properties at any time.

Syncbnb is a software service company that helps short-term rental property owners

and managers to upload their properties to multiple channels such as Airbnb,

HomeAway, Booking.com, and TripAdvisor. Consequently, property owners and

managers can increase their revenue. The company ensures that all reservations from

all channels are synchronized to avoid double bookings. Additionally, Syncbnb is the

only company in the world that offers a 100% guarantee of successful updating of all

channels. To achieve this, the company combines advanced Artificial Intelligence

systems with Quality Control by specialized team executives. Today, the company

has more than 700 customers in 78 countries. The purpose of this business plan is to

present how Syncbnb can ensure a significant increase in its activities.

Contents
Executive Summary.......................................................................................................1

1. Introduction................................................................................................................3

1.1 Company’s Profile...............................................................................................3

2. Feasibility Analysis....................................................................................................5

2.1 Financial Management.........................................................................................6

3. Industry and Competitor Analysis.............................................................................7

3.1 Industry Forces.....................................................................................................7

3.2 Competitive Landscape........................................................................................8

3.3 Market Analysis.................................................................................................10

4. Business Model........................................................................................................11

4.1 Value Chain........................................................................................................11

4.2 Competitive Edge...............................................................................................12

5. Source of Funding....................................................................................................13

6. Marketing Strategy...................................................................................................14

7. Growth Strategy.......................................................................................................16

8. Conclusion................................................................................................................17

References....................................................................................................................18
1. Introduction

In recent years, start-ups are considered one of the fastest-growing aspects of modern

economic environments. Specifically, in any industry, start-ups are recognized as the

driving force of the economy for improvement and expansion (Ben, 2013). Due to the

opportunities provided by the digital economy and the internet, entrepreneurship

creates new and innovative ideas. Successful entrepreneurs take advantage of these

business opportunities to start their businesses. Entrepreneurs have the opportunity to

start their own business even without capital, or without strong financial resources

(Ben, 2013). The generation of a good idea can create innovative business models that

can be supported by investors such as Business Angels (Parhankangas, & Ehrlich,

2014).

McMullen, Plummer, and Acs, (2007) explained that the field of entrepreneurship is

defined as the opportunities for creating future products and services that are

discovered, evaluated, and exploited. Today, new opportunities are emerging for

entrepreneurs as customer demand changes. Due to the increasing use of the internet,

consumers are looking for products and services that fulfill their preferences. They are

well-informed and influenced by people with common interests. As a result,

entrepreneurs could benefit from the introduction of new and innovative products or

services that meet customers' requirements.

1.1 Company’s Profile

Syncbnb was founded in 2017 by Alexandros Karavitis and Petros Ziogas. The

company built its activities in the growing tourism industry and the short-term rental

market in Greece. Syncbnb is a service that helps owners and managers of short-term

rental properties to upload their properties to multiple channels such as Airbnb,

Homeaway, Booking.com, Tripadvisor, to increase their revenue. It also ensures that

all bookings from all channels are synchronized and consequently avoid double

bookings. It combines advanced Artificial Intelligence systems and Quality Control,

employs techno -scientific executives, and offers an all-in-one type dashboard with a

calendar synchronization function that uses quality controls to make sure everything

is updated (Syncbnb, 2020).

The idea was born out of the need for a reliable service that could synchronize all

calendars in real-time, and avoid double bookings. Specifically, in 2016, Alexandros

Karavitis decided to put his country house on Booking.com while he already had it on

Airbnb (capital.gr, 2020). The entrepreneur immediately found that his reservations

were increased. Then Mr. Karavitis put it on Homeaway and then on other platforms

like Tripadvisor, 9flats, Wimdu. The problem was that every time there was a

reservation from one platform, he had to visit each platform and decrease the dates in

order to avoid the chance of double bookings (Syncbnb, 2020).

In the existing market, there were only programs that were either very expensive and

it was focused on hotels or it was not working properly. Having more than 40 years of

experience in areas such as Software and Web Development and User Experience, the

company's idea was developed. The main service is the synchronization of calendars

in short-term rental accommodation between channels such as Airbnb, Booking.com,

HomeAway, Tripadvisor / Flipkey, and others (Syncbnb, 2020).

2. Feasibility Analysis

Feasibility analysis makes it attainable to explore the possibilities and opportunities of

a business idea. Bonifaci (2013) and his colleagues explained that the feasibility

analysis needs to be focused and specific in order to offer a sustainable solution.

Syncbnb is the first and only business worldwide that can synchronize reservations

among over 200 channels. The main innovation of this platform is a Quality Control

Mechanism that controls all reservations and secure that all channels are updated. If

for any reason a reservation is not properly updated, the System tries again until each

channel is suitably updated. This process ensures 100% success in refreshing all

channels (Syncbnb, 2020).

Furthermore, the company provides the best ratio of cost to time and money, as in less

than one hour, the customer can add his property to a channel and start receiving new

reservations on the same day. Syncbnb offers synchronization of calendars so that

property owners do not have to go through a time-consuming process. Additionally,

the company follows multiple information methods and quality control at all stages of

the process ensuring a leading position in its industry. Moreover, users of the

company's platform come from 87 countries. The strongest markets are Spain, Italy,

Portugal, Greece, New Zealand, the United States, England, Slovakia, Australia

(Syncbnb, 2020).

Syncbnb is not the only reservation and synchronization service between multiple

channels. However, the company holds specific comparative advantages, such the

pricing. Most of the competitive channel managers are focused on large management

companies that have more than 100 properties, consequently, the cost is prohibitive

for the average owner. At the same time, a few services that have recently made a
modest appearance are aimed at owners who have limited capabilities and reduced

reliability, creating a gap in the market. The main advantage of Syncbnb is that it is

the only service in the world that can synchronize all major channels and hundreds of

locally small ones in almost real-time (less than 5 minutes). Also, it is the only service

that can still synchronize accommodation websites, as long as they are addressed to

some known content management platform such as Wordpress, Wix, Squarespace,

Joomla, and Drupal.

The main company's goal is to receive first place in the management of short-term

rental bookings worldwide. The goal is considered achievable as the company

operates an innovative idea and applies a differentiation strategy. Moreover, the

internet allows all consumers to access anywhere in the world (Syncbnb, 2020). Τhe

diversification strategy is being identified as the company is the only service in the

world that can synchronize reservations between more than 200 channels and

provides its service at an affordable price.

2.1 Financial Management

Since this business plan is presented for a start-up business, there are no significant

financial data available. Nevertheless, the available data showed that Syncbnb

received significant funding over the five years. More specifically, the initial funding

was € 200,000 and the company's venture was supported by Greek investors. In 2019,

it received 770 thousand euros, in order to continue to expand its activities. Today, the

company tries to reach into an agreement with international funds for further

expansion (Capital.gr, 2020). Additionally, the service costs 13 euros per month per

property, and there is a free 30-day trial available on the company's official website

(Syncbnb, 2020).
3. Industry and Competitor Analysis

3.1 Industry Forces

Travel and tourism have increased by 1.3%, while the direct contribution of tourism

and employment can be estimated at 1.8% (Haddad, et al., 2015). Moreover, the

international online travel market will reach $ 1,091 billion in 2022 (Llach, et al.,

2013). As a result, market growth is estimated to provide an annual growth rate of

about 5.5%. Another force of the tourism industry is wider economic recovery, which

is related to the development of channel managers (Granados, Gupta & Kauffman,

2012) as more and more travelers search for information and book their vacations

online. At the same time, more and more hoteliers and short-term rental owners are

implementing channel manager programs to increase reservations and reduce failures.

Furthermore, the global software industry worths $ 1.1 trillion, and ninety percent of

global software exports come from the United States and Europe. The software

industry significantly affects the financial systems of these countries (McManus,

2007).

Even though there is significant rapid growth in the tourism industry for short-term

rentals, they face significant challenges. Hsieh (2012) explained that platforms allow

many households to become a small business and reduce rental costs. Travelers also

pay less money and have a more local and authentic experience of a country, city, or

area. On the contrary, many short-term rental owners rent their entire homes for the

long term, which is illegal in many cities (Guttentag, 2015). This use also includes

two other critical issues. Homes used for short-term rentals may be removed from

local housing markets, which may increase rents. The entry of more travelers may be

annoying for residential neighborhoods (Palombo, 2015).

3.2 Competitive Landscape

By understanding the company's competitive landscape, Porter's five forces analysis

can be presented. The analysis focuses on the perception that Syncbnb's external

environment can be addressed. The analysis can also highlight the opportunities and

threats that the company may face (Tavitiyaman, Qu, & Zhang, 2011).

Rivalry among Existing Competitors

The rivalry between existing competitors is significant, as there is growth in

companies in the industry (Lapsley, et al., 2010). Although no companies are offering

the same service at a low price, profitability within the industry is strong as more and

more users are looking for short-term rentals (Palombo, 2015). As a result, companies

in the industry will be driven to reduce their prices or to invest in advertising

campaigns to compete effectively.

Threat of New Entrants

New entrants can bring new skills and the passion to earn market share. Additionally,

they set pressure on prices, costs, and the required percentage of investment to

compete effectively (Tavitiyaman, Qu, & Zhang, 2011). However, the threat of new

entrants depends on how high the entry barriers are. In e-commerce, it is considered

important to differentiate between existing products. Otherwise, the company's idea is

not viable. Also, it is very difficult for new entrants to join a market as investment

funding has a key role. Apart from the capital, investors offer market knowledge and

experience. Hence, effective management ensures the position of existing companies

and strengthens their position in the international markets, while at the same time

discouraging the new entrants. Consequently, the threat of new entrants is estimated

low.
Bargaining Power of Suppliers

Suppliers' bargaining power can have a detrimental effect on profitability in an

industry, as suppliers can threaten increased prices of products and services (Lapsley,

et al., 2010). There are hundreds of millions of travelers around the world and a

significant number of people who are interested in renting their space to earn extra

money. In contrast, there are few global software service companies that owners can

trust. This also reduces the size of the suppliers. Therefore, it can be argued that the

suppliers' bargaining power is not dynamic.

The Bargaining Power of Buyers

In a monopoly market, buyers have the greatest bargaining power. By examining the

tourism market, there is a large number of buyers and a small number of suppliers.

Therefore, buyers can compete by imposing prices. However, the bargaining power of

buyers in the industry is moderate, as suppliers are few and there are no substitutes for

consumers to turn to.

Threat of Substitute Products and Services

The threat of substitutes refers to products or services that can fulfill the same purpose

as the products or services of a similar industry, such as the goods of the industry

under examination (Tavitiyaman, Qu, & Zhang, 2011). There is no direct substitute in

this industry as Syncbnb offers a unique software service. It is therefore understood

that the threat of substitutes is weak and the company's services offer a wide range of

advantages.
3.3 Market Analysis

Syncbnb pays attention to the continuous expansion of the countries that will be its

users. As mentioned above, the company is located in 78 countries and wants to

import as many properties as it can by offering property owners the opportunity to

increase their bookings and eliminate the possibility of double bookings.

Consumers want to find the best offer package that meets their needs and make them

feel satisfied with the good quality services they receive (Ke, 2017). It is important for

consumers to feel safe that their data will not be made public (Smith & Gallicano,

2015). Therefore, the companies of this market intend to achieve commitment,

satisfaction, and, consequently customer loyalty.

Analyzing the market should not be omitted to mention, the risks he may face a

company. The instability of the international environment is likely to damage the

tourism market. A major market issue could be COVID-19, which is a principal

concern in the international and domestic markets (Gourinchas, 2020). In recent years,

the number of terrorist attacks in Europe has threatened travelers. Another market

issue can be identified by the UK's exit from the EU (Crotti, & Misrahi, 2015).
4. Business Model

A business model describes how a company can create value (Joyce, & Paquin, 2016).

More specifically, this model can highlight the potential of the business, offering the

opportunity to grow in a specific market. Therefore, creating a business model is

necessary to expand into a new market or even to change strategy. The above table

gathers the key elements that constitute the Syncbnb business model.

Business Model Canvas Syncbnb

Οwners and manager of a short-term rental People who own a house or apartment and they
Key Partners
accommodation Customer want to earn extra money
Segment
Assist their partners to upload their properties
People who love to travel
to multiple channels
Key Activities
Ensures that all bookings from all channels are Airbnb, Homeaway, Booking.com, Tripadvisor
Channels
synchronized to avoid double bookings. (website and mobile app)
Local Hosts Technological Set up & runninh costs
Cost Structure
Skilled Employees Salaries of permanent employees
Key Resources
Revenue
Technology Revenue come from software installation
Streams

Income increase
Value
Entry in multiple channels
Propositions
Eliminating the possibility of double bookings

The core strategy used by the company is the differentiation strategy. A

differentiation strategy is implemented when a company offers a product or service

with perceived or tangible unique characteristics that cannot be easily replicated by its

competitors (Blažek, et al., 2013). According to Feasibility Analysis, Syncbnb is the

only service in the world that can synchronize reservations between more than 200

channels and provides its service at an affordable price.

4.1 Value Chain

The value chain analysis examines the company's internal activities (Gereffi, &

Fernandez-Stark, 2011). This strategic model aims to recognize which valuable

activities can provide a competitive advantage. The analysis can also identify

activities that need improvement. The following table shows the Syncbnb value chain

analysis.

Primary Activities Support Activities

Inbound Human
Data Collection Skilled Employees
Logistics Resources
Technology Quality Control
Operations Software Installation
Development Mechanism
Marketing Online Marketing
After Sales Customer Service

Syncbnb has increased its perceptual value with the installation of modern and

innovative software. It has also managed to reduce the operating costs of its partners

while at the same time increasing its customers' revenues through expanding their

reservations.

4.2 Competitive Edge

Initially, the competitive advantages were identified in the feasibility analysis. Then

the business model analysis and the value chain analysis focused further and are

presented below. The company is the only service in the world that can synchronize

reservations between more than 200 channels. The main innovation of the platform is

the Quality Control Mechanism that checks all reservations and guarantees that all

channels are updated, ensuring that there are no double bookings. It provides the best

ratio of result to cost in time and money, as it offers an affordable price program in

contrast to Syncbnb's competitors.

5. Source of Funding

Startups need investors who bring not only capitals but also their networks and

business knowledge. Therefore, they can provide experience and direction. Syncbnb

has been funded by Greek investors since its beginning (Capital.gr, 2020). These

investors can be considered as Business Angels (Parhankangas & Ehrlich, 2014).

Angel Investors provided funding to the company in the very early stages. Along with

funding, they guided entrepreneurs. Syncbnb operates in the market for five years. As

a result, it is vital to find permanent investment to continue its growth.

Technology companies are usually associated with capital venture (Li, & Zahra,

2012). The fund decision can be difficult for a company because of the variety of

available funding structures. Each type of investment has its risks and benefits for the

business. Syncbnb has demonstrated significant growth in the market, offering an

innovative product. At the same time, the company is considered to have high growth

potential. Therefore, Capital Venture will be needed to promote its business goals and

will offer resources to growth prospects (Ozmel, Robinson, & Stuart, 2013). Investors

can receive a percentage from the company or equity. Furthermore, Capital Venture

can support the company's marketing strategy as well as the company's growth

strategy.

6. Marketing Strategy

Developing a business requires a viable idea. As mentioned above, Syncbnb follows a

differentiation strategy, which allows the company to stand out from the competition.

As a result, a strong marketing strategy will boost the company's growth, and increase
its position in the market. To understand the marketing strategy, four key elements

can be analyzed. These refer to product, place, price, and promotion (Berthon, et al.,

2012). The company offers an innovative service that synchronizes reservations

among over 200 channels. The main innovation of this platform is the Quality Control

Mechanism that controls all reservations and guarantees that all channels are updated

and double bookings are avoided. Also, Syncbnb provides its service at an affordable

price in contrast to its competitors. As mentioned above, it already has a presence in

78 countries. Moreover, it maintains an official website and presents all the necessary

information about the company and its services. By understanding today's customer

need for online information and communication has developed its social media and

blog (Syncbnb, 2020).

According to the above- mentioned, the company can further develop its presence by

designing an online marketing strategy. More specifically, it can gather its advertising

efforts around the opportunities that social media can offer. Syncbnb can benefit from

LinkedIn in terms of the target audience, as it can find an unexploited source of

customers. Additionally, an SEO strategy is likely to attain great outcomes. Today,

high search engine visibility is the key to success (Patrutiu-Baltes, 2016). Although

the company offers extremely unique services that can attract many customers, SEO

can help.

Although software programs can operate remotely thanks to the cloud services which

are available today, the majority of people prefer local companies. Therefore, it is

equally important to focus on the local audience while planning a marketing strategy.

People search for information on the Internet and are influenced by people who share

common interests (Berthon, et al., 2012). Therefore, the company can post on its blog
the experience of its customers. So that potential stakeholders are informed about the

quality of the company's services with the help of the company's real customer.
7. Growth Strategy

The growth strategy plans to help the company obtain a larger market share, even if it

may minimize its short-term profit (Paternoster et al., 2014). As mentioned above,

Syncbnb's main goal is to reach first place in the worldwide market. Therefore,

Syncbnb could focus on an internal development strategy. In particular, the company

intends to market its existing services in a new market. The new market includes new

geographical areas and new distribution channels (Raddats, & Easingwood, 2010).

New geographical areas are parts of the world where the company can penetrate. As

the company has a presence in 78 countries, it can continue to promote its service in

the international market. Today, it is important to consider carefully the potential risks

because of COVID-19. The short-term rental sector has been seriously shaken.

Therefore, the company needs to conduct thorough market research in order to ensure

that these areas can support its technology and successfully promote the company's

services (Paternoster et al., 2014).

8. Conclusion

Syncbnb is a service that helps short-term rental property owners and managers to

upload their properties to multiple channels. The company is based in 78 countries

and wants to import as many properties as it can, offering property owners the

opportunity to increase their reservations and eliminate the possibility of double

bookings. The business plan that was analyzed, presents the company's potential for

further development in new markets as well as the development of marketing strategy

through targeted practices. Even though the company utilizes its capabilities and

funding, it could receive sustainable investments through venture capital and enhance

its growth.
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