Universal Travel Buddy - Business Plan Example

Universal Travel Buddy AFFILIATION: Table of Contents Executive Summary Universal Travel Buddy:2 Why this business? 3 Target Market: 4 How will you deal with competition and what is our market strategy? 4 SWOT analysis 5 PESTLE analysis 6 Marketing Mix 7 Financial Forecast and Business Operations 7 Reference List 13 List of Tables Table 1 13 Table 2 14 Table 3 15 Competing in the vibrant android community is a tough job, but what comes in the World Wide Web market with the touch of creativity and wide ranges, effective implications always touch the users of androids worldwide. Universal Travel Buddy is the next big boom in the app market. It is an app that helps people to socialize in an economic way. Most of the travellers love to travel with a friend, peers, partners etc. But that is just an idea implemented prior with other such apps like Uber, Lyft and ridejoy. Universal Travel Buddy helps you socialise in the best possible way that not only ends in a friendship longer lasting but also it may be another corporate relationship, new joint business venture, a new product launch, or any idea that is worth your dreams come true. Not only, you travel to a pre-destined spot with your “Travel Buddy”, but by looking at his/her present occupation, you can select the person that best suits your personal interests, may it be dating, business, counselling or other such things. So, you are not only talking and sharing ride with a person but also sharing commonality as well. It’s sleekly and modern design is attractive enough to let the users grab it to bits. The cost effectiveness as compared to other similar apps and it’s easy to operate interface makes it a leading app compared to other similar apps. The target audience is simply “Worldwide” starting from the world’s most famous tourist cities and then reaching up to cross continents availability. Universal Travel Buddy: In recent years, the use of Android apps and smart phones has made the use of mobile phones, an obsolete philosophy of communication and business. Due to the popularity of the Android apps, the market is quickly shifting to the smart phones because less time is consumed to reache global users. The open source platform has the development tools, some of them are free and user friendly, moreover it also has a convenient platform that requires fewer efforts (Shabtai et al, 2010; Butler, 2011; Proffitt, 2011; Tracy, 2012). The product to be launched is an Android application that helps people to travel with the person of their choice nearby, along with the personality of your choice. The Application offers reliable friendly services as a Travel ride with the person of your choice. The android apps are the next big thing for all the businesses around the world. As the telecommunication industry is in a phase of revolution, so is the services and product’s availability because of these mobile phones, communicators, tablet PC and android sets. The Travel Buddy application is another value addition into the world of Android apps. It works by subscribing to the website that is mobile responsive and sleek. The person subscribes with a username and password, and then he/she puts the destination route, the time, and his/her current profession and occupation as well. For the verification of Fraud and Theft issues, a person also upload his/her National Identity card for verification, and there you go; using the online GPS, the internet pops out the individual and their identifications nearby and you can chat with them, socialise, travel and even build a professional relationship because of the transparency of the present occupation and interests. The company is the software company based in UK. It has designers and developers qualified enough to run this app. Most importantly, it gets its revenue from the monthly subscription. The team consists of web designers, web developers, business developers, marketing and media advertisers, campaigners, HR department and main body. The operational capabilities are worldwide (in the near future) as the business will definitely grow. But the mock start-up will be from UK and then USA. The travel buddy mission is to take this application worldwide by 2022. The short term goals include; to introduce it in UK and USA at the same time, for many reasons such as market comparison, success comparison. In the near future to introduce this app to entire Europe, Asia, followed by Africa (provided that the internet connection is reliable and efficient). Why this business? The technology as an open operating system is transforming from the mainframes and computers to the smart phones containing the android software. This enables greater integration and cost effectiveness, along with a short interval to reach millions of app users simultaneously. There are many popular apps of ride sharing such as Uber and Lyft etc. But as these apps are getting popular, so is the problem of security issues related to these apps. It is related to the well-being of the users of the app such as drivers, passengers, and the third party. The success of these apps reached the zenith by April 2014, in which Uber was being used in more than 45 countries around the world. The most important edge to the Universal Travel Buddy is that, its date can be tracked down by the law and enforcement agencies such as the police. Its GPS system having a radar track in it can be tracked by the police at any time. In the app, there is a red alarm button that in case of any emergency can be clicked and it will auto dial the call to the police emergency number, It can be tracked down by any nearby police. Target Market: The target market defines the success of an app. Higher the target market, higher is the chances of success keeping in view the other criteria of demand and budget in mind. In case of the Universal Travel Buddy, its target market is almost global. Because of the presence of high-security options, the leverage of traveling with the person that aligns with your interests and career likes, it will soon gain the target audience that is beyond imaginable. Everybody needs security along with the joy of traveling with the person that is reliable and friendly. The Universal Travel Buddy enables you not only to choose a traveller, but a companion as well, that has a legal Identity card and a legal citizen status. How will you deal with competition and what is our market strategy? The google play store is the success hub for the Android apps. As we know that there are competitors such as Uber and Lyft with this app that we will launch, but we will deal with the competition because of the presence of secure and reliable travelling. As, in order to sign up, one must submit his/her ID card and after its validity check and account availability, the person can get a login in one day. Now, the question arises that why should people bother to wait for one day in order to get the login, the answer is again reliability. People are often afraid of travelling with a person whose is unreliable, or travelling with a person has a suspicious record. This makes travellers feel unsafe. With the availability of an auto dialler, people will feel safer and they would like to buy this friendly and reliable service at any cost, and perhaps life has a worth that money can’t buy. The Ubers and Lyft background check that all the drivers are strict, yet they have some drawbacks because of the number of clean years before being allotted the Ubers or Lyft driver eligibility. For example, Lyft has the compulsion that a driver must not have had a felony charge, drug violation or extreme infraction within the last 7 years. The Universal Travel Buddy will have the violation years limit for up to 9 years. A person has to install the app for 2 pounds, and 0.5 pounds per service. The person that needs to share the Universal Travel Buddy must have a valid ID card in order to be more secure while traveling with the person. There are many other new companies in the market that offers different services compared to the Uber and Lyft. For example, there is a company named Sidecar that allows peer-to-peer travel along with the leverage to the driver to set their own price. But having that leverage means unfixed prices that dissatisfy the customer each time they travel. As the prices vary, so does the mood of a traveller. Universal Travel Buddy ensures that the prices are in the demand and reach for all the travellers and passengers, by the help of premium services that shows the exact in demand price for the required destinations. SWOT analysis The SWOT analysis in any given project includes the strengths, weaknesses, opportunities and threats. The strengths of Travel buddy is that it cover the most important marketing expertise that includes internet media for its marketing. It’s security as an innovation, the like-minded people that travels as an added value, and its legal processes and procedures are its strengths. The weaknesses of this app could be the undifferentiated services that have already been in the market lacking some new add-ons and innovation. As far as the quality of services is at front, there is no threat of a poor quality or service of this business, the only thing that matters the most is the security of the travellers. The opportunities with this travel app are huge, because of its presence on a highly developed and innovative marketing platform called the internet. As it is an international market, in the near future, the opportunity and scope of the projects grows, so it is going to be worth millions. The future threats to this app could be a more innovative app that includes the special add-ons that has never been introduced before, the updating of the existing marketing competitors, the price wars with the new and existing competitors and the tax rates. But as far as the quality of the service is not compromised, and the uncertainty of the market is kept at bay, this will not create a bigger problem for this innovative travel app. PESTLE analysis The PESTLE analysis is used for improved decision making. The services that travel buddy is offering is wide enough for the scope of improved political drawbacks, the tax policy will be according to the transport government policy of the related country in which the app will be implemented. The infrastructure and regulations would be according to the government regulations of each country. The Economic section includes the growth rate that is predicted according to the finance of the company, the business cycle is required to be in pace with the demands and needs of the society, whereas the inflation is the key factor in the economics of any technology including the travel buddy. The purchasing power affects any available products or services offered. The Social section includes the demography of specific country preferably from where the Travel buddy app is launched, the education among the key factors; more the people are educated the more they understand the need of this creative app that reduces costs, increases security. The cultural norms will be an offset in some countries, as there could be a possibility that in some countries, people are reluctant to share rides with the strangers, so in those countries, the company has to target special audience for this app to be successful. The technological aspects is that is the emerging technology with modifications, the research and development parameters will modify along with the market requirements and the communication should be continuous and updated. The legal aspects include the local law and enforcement authorities of each country, their regional tax laws and court laws for the security breaches and the court systems that must be kept under consideration. The climate uncertainties, the energy availability (specifically for transport in this case) and the work force health is another factor that will increase or decrease the profit for this app. Whereas, all the PESTLE analysis is subject to change according the country in which we are introducing this app. Marketing Mix The marketing mix for travel app includes the product aspect, which in this case, are the services that this app is offering, cost effective and economical, more secure and profitable. The price determines the company’s profit or loss and the market stay. Here in this case, the price of the service is based on the individual transfer route and hence is already known to customers and it will not create a problem. The promotion aspect includes the marketer’s strategy to deliver the app and its services to the desired audience. Here in this case is World Wide Web preferably. Distribution includes the services availability to the customers/audience. Here in this case the services are offered where the tourism is at its peak in UK, and in USA and to rest of the country as well. Financial Forecast and Business Operations The cost associated with establishing this business is about 70,000 pounds. Out of this amount, 35000 pounds are paid to software Development Company while another amount is used for the purchase of office equipment, furniture and stationary while remaining amount is used for daily operations of the business. This amount is raised for two years period at the interest rate of 9% per annum. The Interest rate is higher than normal due to the riskiness of the business. At the maturity of loan, the amount will be 90652.03 pounds. The Company adopts a monthly payment policy to pay the amount of 4000 pounds from the second month of business operation until the maturity date to payoff this liability. The Tax rate of 7% is charged. Revenues of the business are generated by charging 0.5 pounds per services. According to research, more than three hundred thousand people travel nationally and internationally to UK in one month. Our target is to acquire customer at almost 50,000 per month. Whereas other sources of revenues for business are advertisements run on the business application. Actually the composition of total cost includes, purchase, salary, rent expense, electricity expense, parking expense, telephone expense, loan expense, drawings and tax expense. Purchase expense of 35000 pounds are paid to software development company while another amount is used for the purchase of office equipment, furniture and stationary while remaining amount is used for daily operations of the business. While normally purchase expense includes office stationery and other supplies. Salary expense include salary of two part time software engineers (1200 pounds each per month) who work in shift for eight hours just to look after proper functioning of system while one student part time worker (300 pound per month) is for night shift to handle normal queries or report to senior. A small house of Mr. Richard will be rented for the business operation at 8000 pounds per month. Electrical expenses are high due to proper utilisation of electricity for business operations. However, parking expenses are paid for employee car parking. Telephone charges have steady 1000 pounds maximum for national calls only. The loan raised by the company is 70000 pounds for two years period at the interest rate of 9% per annum. The Interest rate is higher than normal due to the riskiness of the business. At the maturity of loan, the amount will be 90652.03 pounds. The Company adopts a monthly payment policy to pay amount of 4000 pounds from the second month of business operation until maturity date to payoff this liability. The Tax rate of 7% is charged. The Owner made different drawings during the financial years and amounts are mentioned in the tables. Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 SALES Sales by value 14000 16000 18000 22000 23000 29000 34000 45000 50000 55000 65000 70000 Receipts Sale-cash 9500 10500 14000 18000 19500 24000 30000 40500 45000 50000 59000 66000 Sale-debtors 4500 5500 4000 4000 3500 5000 4000 4500 5000 5000 6000 4000 Capital Introduced 5000 5500 6000 6000 8000 8000 9000 7000 7500 10000 8000 8500 Grants & Loans 4000 4500 5000 4000 4000 2000 3000 1500 2500 2500 1500 3000 VAT 2000 2000 2000 2000 2000 1000 1250 1000 1750 1500 1750 2000 Total (A) 25000 28000 31000 34000 37000 40000 47250 54500 61750 69000 76250 83500 Cost 46708.36 29124.99 28674.96 25925.79 26388.37 32449.73 16930.71 20871.52 24816.29 30504.49 38459.14 59068.52 Profit -23708.4 -1124.99 2325.041 8074.209 10611.63 7550.272 30319.29 33628.48 36933.71 38495.51 37790.86 24431.48 Expenses Purchase 35000 10000 5000 2000 2000 2000 2000 2000 2000 2000 2000 2000 Salary Expense 3000 3000 3000 3000 3000 3500 3500 3500 3500 3500 3500 3500 Rent Expenses 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 Advertisement 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 Electricity Expenses 2500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 Parking Expenses 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 Telephone 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 Loan Expenses 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 Drawings 0 0 0 0 0 10000 0 0 0 0 10000 Cost (Without Tax Adjustment) 50500 30500 25500 22500 22500 33000 23000 23000 23000 23000 23000 33000 Tax (7%) -3791.65 -1375.02 3174.959 3425.791 3888.372 -550.272 -6069.29 -2128.48 1816.289 7504.486 15459.14 26068.52 Total Cost 46708.36 29124.99 28674.96 25925.79 26388.37 32449.73 16930.71 20871.52 24816.29 30504.49 38459.14 59068.52 Balance Cash INC (dec) (A-B) -21708.36 -1124.99 2325.04 8074.21 10611.63 7550.27 30319.29 33628.48 36933.71 38495.51 37790.86 24431.48 Table 1 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 SALES Sales by value 40000 40000 50000 60000 70000 80000 85000 90000 110000 120000 320000 800000 Receipts Sales-Cash 35000 35000 40000 50000 60000 70000 72000 75000 90000 85000 280000 730000 Sales-Debtors 5000 5000 10000 10000 10000 10000 13000 15000 20000 35000 40000 70000 Capital Introduced 30000 30000 30000 30000 30000 30000 35000 35000 35000 45000 55000 65000 Grants & Loans 12750 20000 22000 20000 20000 20000 30000 35000 30000 30000 20000 35000 VAT 8000 8000 6000 8000 8000 8000 3340 8680 9020 4360 7760 6160 Total (A) Revenue 90750 98000 108000 118000 128000 138000 153340 168680 184020 199360 402760 906160 Cost 77508.25 57085.81 112436.3 102097.7 141157.9 79112.18 68384.33 122343.2 98713.99 83184.16 355588.4 919982.3 Profit 13241.75 40914.19 -4436.3 15902.32 -13157.9 58887.82 84955.67 46336.78 85306.01 116175.8 47171.58 -13822.3 PAYMENTS Purchase 20000 3200 3200 3200 3200 3200 3200 3200 3200 3200 3200 3200 Salary Expense 3500 3500 3500 3500 3500 5000 5000 5000 5000 5000 5000 5000 Rent Expenses 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 Advertisement 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 Electricity Expenses 4500 4500 4500 5500 5500 5500 5500 5500 5500 5500 5500 5500 Parking Expenses 1500 1500 1500 1500 1500 2000 2000 2000 2000 2000 2000 2000 Telephone 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 Loan Expenses 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 Drawings 0 0 0 0 50000 0 0 0 0 0 0 100000 Cost (Without Tax Adjustment) 44000 27200 27200 28200 78200 30200 30200 30200 30200 30200 30200 130200 Tax (7%) 33508.25 29885.81 85236.3 73897.68 62957.93 48912.18 38184.33 92143.22 68513.99 52984.16 325388.4 789782.3 Total Cost 77508.25 57085.81 112436.3 102097.7 141157.9 79112.18 68384.33 122343.2 98713.99 83184.16 355588.4 919982.3 BALANCE Cash INC (dec) (A-B) 13241.75 40914.19 -4436.3 15902.3 -13157.9 58887.82 84955.67 46336.8 85306.01 11615.84 47171.6 -13822.3 Sales Year 3 Year 4 Year 5 Revenue 2109667 3313174 4516681 Cost 1280646 2088307 3518232 Profit 829021.1 1224867 998449.2 Payments Purchase 80000 80000 100000 Salary Expense 78000 78000 198000 Rent Expenses 114000 114000 234000 Electricity Expenses 78000 114000 114000 Parking Expenses 36000 60000 72000 Telephone 36000 36000 48000 Loan Expenses Drawings 500000 700000 800000 Cost (Without Tax Adjustment) 922000 1182000 1566000 Tax (7%) 358645.9 906307.5 1952232 Total Cost 1280646 2088307 3518232 Table 3 Reference List About.com, n.d. Mobile Devices. [Online] Available at: http://mobiledevices.about.com/od/additionalresources/tp/Tips-For-Android-Developers-To-Achieve-Success-In-The-Google-Play-Store.htm [Accessed 6 April 2015]. Butler, 2011. "Android: Changing the Mobile Landscape", Pervasive Computing. pp.4-7. Lyft, 2001. Lyft. [Online] Available at: https://www.lyft.com/ [Accessed 6 April 2015]. Mishra, Patvardhan , 2012. International Journal of Computer Applications (0975 – 8887). Volume 50-No.16. Proffitt, 2011. "Open Adroid-For better and for worse", Spectrum. pp.22-24. Shabtai et al, 2010. A Comprehensive Security Assessment. pp.35-44. Side.cr, 2013. Ride. [Online] Available at: https://www.side.cr/ [Accessed 6 April 2015]. Tracy, 2012. "Mobile Application Development Experiences on Apples iOS and Android OS", Potentials. pp.30-34. uber.com, n.d. uber. [Online] Available at: https://www.uber.com/ [Accessed 5 April 2015]. Read More