9th,16th and 23rd March 2021
Virtual Car Team Week 40, 41 and 42: 'Stepping into Greenpower's shoes'....a three part series!!!
Over the last three weeks, CAUC have dipped our toes into the world of Greenpower by taking part in a 'Step into Greenpower's shoes' design challenge.
As usual, the team were split into two with half forming 'Team Dylan' and the other half forming 'Team Basil'.
Both were given a resource sheet outlining the task:
TASK 1: Design a venue and decide upon a Greenpower race format.
TASK 2: Cost up both the venue and race format before considering what revenue streams you could introduce to raise funds
TASK 3: Work out how much you would need from the bank and create a pitch to deliver to the corporate investors (....aka Mr G, Richard, Jane and Jeff!)
---WEEK 1---
Both teams spent the entirety of the first week in break out rooms designing their venue and race format.
To save on building costs, Team Basil decided to hold a street race, in Sandbach, during the town's infamous yearly Transport Festival. During the day, they had planned to host three 30 minute sprint races (one for each Greenpower age category) and a 2.5 hour Endurance Race with 1 battery change allowed for F24 teams.
Team Dylan also had the same idea to save on building costs, except they chose to hold the event in Scotland at Loch Ness. Planning to host a two day event, with practice on the Saturday and race on the Sunday, they will host an endurance race around the loch with 4 different checkpoints for teams to change drivers and batteries. Rachel's research on the area had been that extensive, she was able to quote Act 16 from Scottish Law that permits closing of roads for events provided you give three weeks notice!!!!
---WEEK 2---
In Week 2, both teams spent the first 30 minutes finalising costs and finishing their presentation for the bank.
With time on the clock up, it was Team Basil's turn to meet the 'investors' and persuade them to back their race...
During the presentation, each team member took it in turns to discuss the event; key features discussed were:
-Income streams would come from team entrance fees, spectator fees and paddock passes
-Sponsorship - companies could pay a fee to display banners and advertising boards
-Careers Fair to encourage local businesses to get involved
-Social media challenges for both spectators and teams.
Taking into consideration the initial costings (not including sponsorship money), Team Basil's total event cost came to a mere £68290.65!!!!!
After some tricky questions from the investors, it was over to Team Dylan to take the floor and present their ideas!
Taking the same approach as Team Basil, each member took it in turns to discuss a different element of the event. Some of the key features to their presentation included:
-Income from team entrance fees, spectators fees and would take £20 commission from lodges that were rented out around the lake
-The event's main sponsor would be the Loch Ness Monster!!
-A number of activities such as helicopter trips over the lake, boat rides and opportunity to hire bikes and cycle around the track would all be available to spectators.
Taking in their projected revenue, Team Dylan estimated that they would need £122990.00 from the bank.
Following an intense Q&A session, the investors headed into a breakout room to make a decision.
10 minutes later, they returned to deliver the verdict....
We quickly realised that this set of bankers are a very tough nut to crack!! Unfortunately, they weren't happy with either investment as the income was much less than expected. As they were uncertain on whether they would be able to get their money back, they had decided not to invest in either team.
Thankfully, they were happy to give them both another chance, provided they are able to come up with further ways to generate revenue and work out how long it will take to re-pay the loan.
---WEEK 3---
Having had their presentation request refused the week before, both teams spent the first half of the session back in the breakout rooms reviewing their costings and attempting to come up with new ways to generate an income.
Satisfied with the projections, it was time to head back to see the investors!
First up was Team Basil.
Their plan was to tap into the digital market, by creating YouTube videos and tutorials to post to Skillshare generating an income through subscription fees, payment per views and ad sense. In addition, they would also use entrance fees, paddock fees and careers fair pitch fees to increase their income.
The projected income was £57,300 and therefore were asking the bank to lend £50,000.
Next to face the investors was Team Dylan
Team Dylan's approach was to explain further how they were able to raise sufficient funds from renting out lodges, the other activities taking place during the day and the profits made from selling merchandise.
They requested a loan of £37310 with a promise to pay back the full amount in 7 years.
Once again, the bankers headed off to discuss both presentations before coming back to announce the final decision.....
After lengthy deliberations, the team that the investors would like to back is.....
TEAM DYLAN
....who were given a £40,000 loan, with 10% interest and a negation on the payback rate!
Unfortunately, Team Basil's numbers and revenue stream was a little more speculative and hopeful compared to Team Dylan's more sustainable approach!!
Who would be your winner? You'll have to let us know over on our social media pages!!!!
We've got an Easter themed Adults vs Students Quiz Night next week for our last call before the end of term, therefore there will be no blog.
We hope you have a lovely Easter and we'll catch up with you all again once we return from the Easter Holidays!