1. Exercise – Game App Frapp

2. Game App “Frapp”-startup
 Frapp is a new and exciting game concept
 The founders of Frapp are building the game app and
hope to launch next July (6 months from now)
 They understand that this will require not only hard work,
but also some investments upfront
 In order to assess the amount of money required, they
made a business plan based on assumptions
 With this business plan, they aim to attract investors to
help fund the company
 The founders have already invested €150K and received
€50K from iMinds
19/02/2014
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3. Key assumptions business plan (1/3)
Revenue
 100K leads will be generated per month at a cost per
lead of €0,01
 10% of leads will be converted into actual customers
 customers will pay €5 per month subscription to the
game
 per customer there is a €2 transaction cost upon sign-on
 per customer there is an estimated €1.5 monthly cost
(data etc.)
 3% of customers leave (annual churn)
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4. Key assumptions business plan (2/3)
Operational expenses
 The team consists of the following people
 3 game developers with annual cost of €60K (active)
 1 manager with annual cost of €80K (active)
 1 business developer with annual cost of €60K to be hired at
1/5/2014
 1 customer service with annul cost of €60K to be hired at
1/7/2014
 Travel costs of €1200 per month starting from 1/6/2014
 Marketing costs of €2000 per month starting from
1/1/2014
19/02/2014
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5. Key assumptions business plan (3/3)
Investments (capex)
 Hardware (server) (-€75K) on 1/3/2014
 Setting up testing environment (-€40K) on 1/6/2014
 Capitalized development (-€30K) on 1/1/2014
 Capitalized development (-€30K) on 1/6/2014
19/02/2014
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