> For the complete documentation index, see [llms.txt](https://arvo.gitbook.io/arvo/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arvo.gitbook.io/arvo/3.-operating-businesses.md).

# 3. Operating Businesses

Operating businesses provide the economic foundation of Arvo.

Each operating business trades independently and generates profits through its normal commercial activities. After operating costs, taxation, working capital requirements and growth capital have been met, a proportion of distributable profits is contributed to the Arvo Treasury in accordance with the protocol's capital allocation policy.

Arvo's first operating business focuses on the acquisition, enhancement and resale of land. Initially, operations are focused on opportunities within the United Kingdom, where the founding team has established extensive industry relationships, a proven operating model and an established route to market through auction and private sale.

Rather than launching with an untested concept, Arvo begins with a business model that has already been successfully executed over many years. [The Chief Executive Officer](https://arvoprotocol.com/team) brings more than 30 years of experience in the land and property sector, while the wider team has extensive experience acquiring, enhancing and selling land using the same operating model that forms the foundation of Arvo. Through its existing businesses, the founding team has **completed more than $35 million of land and property transactions**.

The land business has been selected as Arvo's first operating business because it builds upon the team's existing expertise, established commercial relationships and proven transaction process. Beginning with a business that already has an operational track record reduces execution risk while providing a strong platform from which the Treasury can grow and diversify into additional sectors over time.

The initial operating business is expected to provide the first recurring source of distributable profits to the Treasury, demonstrating the protocol's operating model before capital is deployed into additional business acquisitions.

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The business creates value through a repeatable process that typically includes:

* Acquiring underutilised or overlooked land.
* Improving planning status where appropriate.
* Subdividing larger sites into individual plots where appropriate.
* Enhancing marketability through access, infrastructure and other value-adding improvements.
* Packaging opportunities for developers and investors.
* Selling completed projects through auction or private sale.

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Arvo therefore begins with:

* A proven land acquisition and resale model.
* More than $35 million of completed land and property transactions.
* Over 30 years of leadership experience in the land and property sector.
* An established operating business with a proven route to market.
* Established relationships with landowners, developers, investors and auction partners.
* Legal structure supported by [GLC Legal](https://glclegal.com/).
* Membership of the [RWA Association](https://www.rwa.io/).

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As the Treasury grows, the protocol will apply the same disciplined investment framework when acquiring and operating businesses across additional sectors. Every acquisition will be assessed on its commercial merits and its expected long-term contribution to Treasury growth.

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