ASSAR. Business Plan July 2015 EARN MONEY DOING WHAT YOU LIKE
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1 ASSAR EARN MONEY DOING WHAT YOU LIKE Business Plan July 2015 ASSAR Av. Xalapa, Esq. Ávila Camacho Xalapa, Veracruz (228) azzar@gmail.com
2 Table of Contents 1. Business Plan... 3 Executive Summary... 3 Business Description... 3 Products and Services... 4 The Market... 5 Competition... 6 Operations... 8 Management Team... 9 Risk/Opportunity Financial Summary Capital Requirements APPENDICES Sales Projection Cash Flow
3 1. Business Plan Executive Summary ASSAR is a mobile application where users can find people with hobbies of interest nearby. With ASSAR they make money teaching or doing a hobby. The idea came from those occasions when people have a task they cannot do, and do not realize that there are people close that they do. ASSAR Mexico wants to reach all people with hobbies, a cell with more than 18 years, which is why we have chosen for university students assume they have more than 18 years, which in Mexico there are approximately 3 million 419 thousand. For reasons of logistics and resources Veracruz state was selected, also sixth in number of students in higher level with around students according to statistics from the SEP ( cycle), Xalapa which has about 132, 000 students, of which about 129, 927 have hobbies, cell and according to their market study was selected. During the first year of work have two phases in the first earn income from the release of the Android application, in the second stage earn income from the release of the ios application According to projections total revenue the first year will be about $ 74,000, of which 0.16% are advertising, the 1.62% is ios sales and 98.22% for transactions. Transactions are operations that users perform on the mobile application, for each transaction ASSAR charges 7% for the service. It is estimated that to reach the breakeven users are needed in the Android application and 163 users on ios, performing once a month a transaction of at least $ ASSAR require $ 35, to provide legal, accounting expenses, financial, infrastructure, technology and marketing. The return on investment is projected as 19 months, paying a monthly interest of 9%, which is equivalent to 2.1 times its initial investment. The ASSAR team consists of two computer science students. Currently he is finishing to develop the prototype test to begin testing and so know what hobbies demand and supply of these. Business Description ASSAR is a Mexican startup based in Xalapa, dedicated to solving society's problems through technology, it is being created by two computer science students. Whose vision is to become an international benchmark in creating software for solving problems of society, and mission is to connect people around the world who have similar interests to gain new opportunities that benefit all. The training process is considered as a company whose corporate name is among S.A. or S. de R. L. Currently only has two employees and has facilities in terms of the mobile application is the design of a first prototype which will be developed and launched initially on the Android platform, and later for ios. It will be tested in the target market that are university students in the city of Xalapa, which for the first year is estimated to have about registered users, who according to forecasts will generate revenues close to $ 74,000. 3
4 Products and Services ASSAR provides various services for users to find interesting hobbies and hobbies provide teaching or performing other users getting extra income. The following services are classified as users search and offer: Search: Construction of a system based on ratings of users who hired profile. Secure payment to help users who contract the service to any user, to protect your payment. Section popular hobbies. Negotiating a payment through a chat, allowing users to agree a fair price for both the seeker and for those who offer the hobby. Recommendations secure locations, providing insurance options to receive service from the provider of places hobby. Search filters as negotiable or non-negotiable price, type of hobby, location and qualification of the bidder, allowing you to find what you want faster. Offer: Hobby publication providing assurance that your ad will be available to other users. Construction of a system based on ratings of users who have hired profile. Top search so that your ad is displayed on the top of a search. The entire set of services described above are addressed to persons who need to perform or learn a hobby, but do not know how to do or learn. The services are offered through a mobile application which is installed on any smartphone that has a GPS and internet, which sign in with Facebook, Google or creating an account with an and password and providing access only to the person who owns the account. The system was developed by employees and founders Assar and has been placed on an Internet server managed by third parties which provides an availability of 99% access. 4
5 The Market The market for ASSAR Mexico students are over 18, having a cell phone and hobbies, so it is assumed that university students have more than 18 years, and these are more than 3 million 419 thousand the Addressable representing the Total Market. For reasons of logistics and resources we have chosen the state of Veracruz, which has about university students, as well as being the 6th state in number of university students according to SEP ( ). ESTUDIANTES ESTUDIANTES Mexico Veracruz [VALOR] TAM Resto UV y ITSX It began in the city of Xalapa as a first step, as it has over 50% of students in the state of Veracruz. Besides in Xalapa it has access to known market, which are students of the UV and ITSX. Both institutions have about 132 thousand students, representing 76% of university students of Veracruz. According to surveys of 70 students from the UV and ITSX it was obtained 98.43% of the students have a hobby, and that 99% of them has a Smartphone. Therefore the target market is the intersection of mobile phone holders and students with a hobby, which are about 129, 927 students. According to SEP growth rate of university students in to cycle it is 1.04%. MERCADO OBJETIVO Resto ObjeDvo As growth strategy is intended to secure the support of students and UV ITSX as part of the marketing strategy. When the service is adopted in this niche market it may lead to other universities through the recommendation of users, and also through the habit of using this service can generate. Some benefits are expected to result from achieving a dominant position in this market: 5
6 1. Solid base of users on the platform, ensure that there will be things of interest to new users. 2. Refine the platform with the initial market feedback. 3. Students are new market entrants who graduate and help them grow. Competition 6
7 The services currently offered post and browse ads with prices established in ads. As a business model offering some users to pay to appear in the top positions in any search, plus some offer advertising within web sites or mobile applications. The following table shows competitors. Direct: Name Downloads Features 9CHAT Blendr Poin 500K 1M 600K Find people according to their interests. Find like-minded people that are nearby. Keep in touch with people and organizes activities of a city. Hobby Afinity 100 To find people with similar ideas. JoynMe 500 Locate people around the world who share hobbies to communicate with them. Robbies Hobbies 5K Find and plan favorite activities. Manualidades y Hobbies FindMeAHobby Develiark Curious 10K 14 1K Find people with the same interests. Manage an activity.. It provides basic information about a hobby. They offer video lessons Indirect: 7
8 Name CraigsList Viva Anuncios Helpy Anumex Features Local classifieds ads, forums for jobs, housing, sales, personal issues, services, local communities. Local classified ads, purchases, sales, property, services, events. Post ads. Local classified ads and buying and selling. Assar advantages over the competition are: Negotiate the price. This feature is distinct from the competition because it allows users to interact with each other, in order to agree on a suitable price for both looking to learn or perform a hobby, and for offering it. Secure payment. It allows users to be more confident when making your payment hobbies users offering interesting, because when this payment is frozen until qualification is carried perform hobby reserved. Higher level of confidence. Helps identify users with greater confidence by the rating they are assigned to classes previously assigned. Operations ASSAR operations ranging from development to the placement of the application store Android and ios, these operations are described below: 8
9 1. Legal, financial and accounting consultants. Establishing the terms and conditions of use of the application formalities necessary for company incorporation, projected costs and income tax registration and filing system. 2. Means of payment. Establishment of media accessible to most customers pay to provide a simple way to make payments. 3. After-sales service. Establishment of the service offered to the client once the service has acquired, for example, notifications to events near you within its agenda. 4. Design prototype. Set in a prototype how the application will work by detecting and correcting errors. 5. Marketing. Planning a marketing campaign to promote the application. 6. Staffing. Conducting job interviews with potential candidates to find the required employee. 7. Acquisition of licenses and server hosting contracts. The acquisition of licenses for publishing applications in playstore and AppStore, and the choice of a third party service to host Web platform. 8. Design of the architecture of the web platform. Implementation of services in the contracted web hosting 9. Implementation. Design development made earlier in the Android and ios platform and publication in the app store. 10. Maintenance. Monitor the state of the platform offering upgrades required for proper operation Management Team ASSAR is in the process of founding by two computer science students. The idea of service was conceived by Andrea Prott who will act as CEO and COO will be responsible for the strategic direction of 9
10 the startup, monitoring the development of the application, inform the objectives and achievements of the startup, take high-level decisions. Alfonso Ramirez will serve as CTO and CFO of startup, help in communication technology partners strategies, keep updated about information technology standards, and designing marketing strategies also will be charged with designing the plan business and development financing strategies. Risk/Opportunity The main risks ASSAR features are: Payments outside the application. Payments users conducted without using ASSAR are a major risk, as this causes not get enough income to cover costs. To resolve this risk to users offers a secure payment only if they use the application, so users who do not use the payment methods in the application does not have access to a refund. Disputes about the service. Disputes become present in the service offered, are complaints of poor service offered by the users themselves and to others that affect the payment made. To remove these disputes provide a mechanism qualifications, which is to assign a rating to each user which will be built in the course of using the application. Besides that within the terms of use of the service, it states that ASSAR resolve disputes regarding payments will have the last word. Bank card payments. Today people in Mexico do most of their cash, and very few make purchases online. Therefore the handle various types of payments is a good strategy for people to use the application to make payments in stores or with your cards or PayPal accounts. ASSAR major opportunities presented are: Collaborative model Currently the bank card payment on the internet is not widely used because people use cash to realize them. That is why even though it's a risk at the same time is an opportunity. According to the PWC consulting, services and skills will be the second most sought active in the market, by 2025 moving from a value of 15, 000 million today to 335 dollars, 000 million dollars. Which indicates a good time to enter this market. Financial Summary Financial projections have been developed in order to have an estimate of sales and expenses, according to those projections ASSAR requires an initial investment of $ 35, with interest at 9%. The initial investment includes costs that the application needs to function properly until you can get to pay the initial 10
11 investment, according to the projection will be in 19 months from the launch of the application, returning to the investor up to 2.1 times its initial investment. The balance point is when revenues equal to costs comes in the seventh month of the start of activities, this requires that the number of users is of 11,381 on Android and ios 163, generating at least one transaction per month. The cost of the transaction is set to $ 7.98 at least 70 according to surveys of students and UV ITSX. For each transaction the 7% payment for services platform is obtained. In addition to revenues also obtained from advertising and sales of ios app. Below is a summary of revenues and costs of the first and second year of activities table shows: Year 1 Year 2 Revenue $ 72, $ 224, Gross Profit Operating Costs $ 22, $ 24, Finance & Admin $ 6, $ 107, Sales & Marketing $ 6, $ 6, Total Expenses $ 35, $ 139, Net Income Before Tax $ 37, $ 85, Less: Income Tax $ - $ 63, Net Income $ 37, $ 21, Capital Requirements Based on the financial projections for two years, was obtained that needed to operate for one year is $ 35, Capital, the investment includes cats operation, financial expenses and administration, marketing and sales expenses. 11
12 The investment required was to cover salaries of employees, development licenses, cost of accommodation on the server, internet services, travel expenses, electricity and advertising expenses. Here are some summary tables on the initial investment is. Source of funds Source Year 1 Owners contribution $ - Term loans $ 35, New equity financing $ - Total $ 35, Use of funds. Category Amount Percentage Operations $ 22, % Finance & Administration $ 6, % Sales & Marketing $ 6, % Total $ 35, % The initial investment of $ be paid in 19 months after launching the application with an interest rate of 9%, with interest paid monthly. APPENDICES 12
13 13
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