The document provides a business plan for a GPS tracking system called BAIC to be integrated into bicycle frames. It aims to reduce bike theft by making the tracker nearly impossible to remove. It will also allow users to track bike routes and performance data. The plan outlines the product, market analysis, strategy, and financial projections. It finds opportunity in the growing bike market and environmental/health trends, but risks from the Italian economic situation and competitive landscape.
3. MADEMBEPO 2
BUSINESS PLAN BAIC & ICARUS
INDEX
1. Executive summary……………………………………………..3
2. Values, vision, mission, strategy ……………………………...4
3. Description of products/services………………………………7
4. External environment analysis………………………………...8
5. Internal environment analysis………………………………..20
6. Swot………………………………………………………….…24
7. Economic and financial plan…………………………………26
8. Appendix……………………………………………………….28
4. MADEMBEPO 3
BUSINESS PLAN BAIC & ICARUS
1. EXECUTIVE SUMMARY
Our business idea was born when we asked ourselves “how can we reduce bike theft?”.
Our answer was to develop a gps system integrated in the frame of the bike in a position
not reachable by thieves, but this was not enough. We understood that the detection of the
position was something that had to be simple and always available, so we decided to
connect the device with a complete interface which allows the user to connect him to his
bicycle from his mobile phone as well as from his pc or tablet. Considering that we were
developing a gps system app-integrated the next step in our mind was to add other
functions like the opportunity for the user to track his route and his performance, always
having the entire world of his bike controlled and secured.
One of the main advantage of our product is that it is supposed to be integrated inside the
frame during the production, guaranteeing synergy between the management of the
service and the production of the bike and, as mentioned before, the impossibility to
remove it.
Finally, another big opportunity given by this item is the data collecting useful even for the
bike companies, as well as institutions such as ISTAT. Firstly, by the bike industry, it is
useful for the development of the market and the product; on the other hand, for the
institutions, it is useful to develop the use of the bike, a ‘green’ means of transportation,
something more and more important in an age of the health care and the environmental
issue-solving.
5. MADEMBEPO 4
BUSINESS PLAN BAIC & ICARUS
2. VALUES, VISION, MISSION, STRATEGY
Values
• Security: of never losing what you love
• Serenity: having everything you love under your control and trackable
• Comfort: through the use of friendly user apps to control everything
• High performance: thanks to the best IT and connecting technologies (GPS/GSM)
• Quality: having a product built with the best materials intended to be damage-proof
• Adaptability: our products are suitable for every kind of model
• Accessibility: our devices are something intended to be designed for every kind of
bike and for all users
• Simplicity: our products can work automatically and we want to provide a complete
customer experience with a high post sale assistance
• Sustainability: our products are produced with ecologically friendly materials and
green technology because working for an eco-friendly means of transportation we
want to be the first to work and produce in this way
Vision
To bring security in a smart, sustainable and useful way
To find what you love, dreaming of a world without thieves, where people’s property is
always protected
Mission
Tracking and securing the things you usually move.
To support customer’s sport activities in the best way, through specific and innovative
accessories and technologies, reflecting the stakeholder’s value.
To discover the pleasure to move by bike without worries.
We want to improve a commonly used product, the bike, providing it with an anti-theft
system, that allow you to find it.
We believe that the bike is the most sustainable means of transport, which best fits in with
urban realities of our planet.
6. MADEMBEPO 5
BUSINESS PLAN BAIC & ICARUS
Strategy
We have chosen the focus differentiation strategy. We offer our product to a niche: the
cyclists with a medium-high level bike that are willing to pay a premium price for our item.
We can’t apply the wide industry because the price of our product is too high, due to the
high cost of the materials and labor required to assemble.
For the same reasons we have approached a differentiation strategy instead of a low cost
strategy. Our chip offers both anti-theft and tracking service.
In the anti-theft industry our product stands out because our competitors are offering
solutions that could be easily taken of, if recognized. Our chip, being inside the bike frame,
can’t be removed.
We differentiate from our competitors in the track service too. BAIC allows cyclists to track
performances without rely on smartphones during the sport activity, in fact they can easily
download data about the performance once it is finished. In this way they can focus on
their activity without care on the battery status of the smartphone.
COMPETITIVE ADVANTAGE
LOW COSTS DIFFERENTIATION
STRATEGIC
TARGET
WIDE
INDUSTRY
Cost leadership Differentiation
PARTICULAR
SEGMENT
ONLY
Focus on cost
Focus on
differentiation
7. MADEMBEPO 6
BUSINESS PLAN BAIC & ICARUS
UNIQUENESS DRIVERS
• Sales & marketing: we will promote BAIC through Facebook and word-by-mouth.
We also want to develop a long term partnership with Bianchi and Campagnolo,
two of the biggest Italian bicycle producers.
• Product features and performance: we want BAIC to be an high performance
chip in term of weight, battery life and bump resistance.
• Customer service: the most important part of our business is the service we offer
in term of app and after sales assistance (especially in case of theft).
• Employees skills, training, experience: we need high experienced employees to
offer the best service to our customers and to be able to interact with them in the
best way.
VALUE CHAIN
We have decided to focus on customer service and to outsource both assembly and
placement of the chip in the frame of the bike. The customer service is an important area
of the bicycle value chain in the industry. Focusing on it, it will allows us to avoid
competition and forward/backward integrations of our partners.
8. MADEMBEPO 7
BUSINESS PLAN BAIC & ICARUS
3. DESCRIPTION OF PRODUCT/SERVICE
We want to develop an item capable of tracking the bike with two purposes:
• Secure the bike from thefts thanks to technology capable of tracking the unwanted
movement by the user (eg. The item can send a SMS or a notice on the
smartphone of the user if the sensor notices that the bike is moving without
authorization).
• Sport tracking, with a real-time data capture (eg speed, average speed, kilometers
traveled, consumed calories). This data is storable in a cloud database accessible
using a smartphone through a dedicated app or on the web browser of a pc.
Considering the first point, the item should be integrated in the frame of the bike and it will
be positioned there during the production of the bicycle making it almost impossible to
remove. In our opinion the best way to reach the goal is to locate the item in the oblique
frame pole, the hardest zone to reach once the item is assembled in it.
The device will have a long-lasting battery, impact-resistance to face the bumps caused by
the road and an efficient and powerful signal-transmission outdoor and indoor too. The
device is supposed to be wireless-charged using the most innovative induction systems.
Considering that every type of bicycle has its own necessity we want to develop the device
with customized features depending on the bike and how it is used:
• Racing bike: less heavy as possible
• MTB: bump resistance
• City bike: low price and long-lasting battery life
• E-bike: reduction of the battery using the one already integrated in bike
Considering the IT part of the product we want to develop two versions of an app:
• Free version: for the basic use including functions like tracking of the bike, the
stand-by mode with alerts for not-desired movement, recent routes, a limited space
on the cloud to save the data related to the use of the bike
• Pro version: for expert users that want to have a complete bike experience having
advanced data about the usage of the bike and their activity, opportunity to
interface with other devices to enrich the information about the sport-activities (eg.
heart rate monitors, cadence sensors, …), more space in the cloud to store data
about the activities and the emergency mode that will activate a most powerful
signal-transmission using both the gps and the data connection to get immediate
position of the bicycle.
9. MADEMBEPO 8
BUSINESS PLAN BAIC & ICARUS
4. EXTERNAL ENVIRONMENT ANALYSIS
Pestel Analysis
POLITICAL SCENARIO
From the political point of view, we have noticed an increasing attention to the safety of the
cyclists. Last March the Italian government approved a law that fixes at 1.5 m the minimum
distance for overtaking cyclists (ddl 2658).
Moreover, there is an ambitious project, being carried out by ECF (European Cyclists
Foundation), to extend the European cycle paths from the 45.000 km of today to 75.000
km by 2020. This will create 15 itineraries across all European countries.
Source: http://www.linkiesta.it/it/article/2017/03/30/tutta-leuropa-in-bici-adesso-si-puo-con-
75mila-km-di-piste-ciclabili/33701/
Both these scenarios will increase cycling in Europe, particularly in Italy, and also the bike
market.
ECONOMICAL SCENARIO
Bike market trend
Source: http://www.conebi.eu/facts-and-figures/
The European sales of bicycles remained flat for the last 15 years then in the 2015 a sharp
increase in production.
10. MADEMBEPO 9
BUSINESS PLAN BAIC & ICARUS
The Italian scenario is worse than the European one. Though Italy is the first bicycle
producer in Europe the production decreased dramatically in the first years of 21st century.
Also, the boost in 2012 and 2013 vanished in 2014 and 2015. In fact, the sales of bicycles
have had an important decline since the economic crisis in 2008.
To sum up we can say that the flat European sales won’t affect our performance in the
long term. But the Italian situation could penalize our firm in its early life because we will
start selling our chip on the Italian bicycle market.
HORIZON 2020
Horizon 2020 is the biggest EU Research and Innovation program ever with nearly €80
billions of funding available over 7 years (2014 to 2020).
The subsection “Smart, Green and Integrated Transport” of Horizon 2020 allocate a
budget of €6339 million for the period 2014-2020.
Source: https://ec.europa.eu/programmes/horizon2020/en/h2020-section/smart-green-
and-integrated-transport
“Horizon 2020 will provide funding for a resource efficient transport that respects
the environment by making aircraft, vehicles and vessels cleaner and quieter to minimize
transport systems impact on climate and the environment, by developing smart
equipment, infrastructures and services and by improving transport and mobility in
urban areas.”
Referring to this subsection of Horizon 2020, we think we can get financing to develop our
chip BAIC.
11. MADEMBEPO 10
BUSINESS PLAN BAIC & ICARUS
SOCIAL-ENVIRONMENTAL SCENARIO
The attention to environmental issues have grown a lot especially in Europe. A lot of
European city administrations are trying to boost electric and bicycle mobility to reduce
pollution.
Also sport activities are gaining a lot of attention especially in the Western world. In order
to avoid the damage of a sedentary life more and more Europeans spend their time doing
sport. Since cycling is one of the most practiced sport in Europe, we expect it to grow in
the future.
Another important social issue is related to the growth of thefts in Europe. In Italy the thefts
were about 320.000 in 2012. And the Italian cyclists’ association says they have increased
by 20% by now. The association considers the Italian bicycles’ black market in more than
100 millions of euro. And real numbers could be even worse because only one person on
five denounce the theft in Italy.
Source: http://www.fiab-onlus.it/bici/attivita/campagne-ed-interventi/lotta-al-furto/item/772-
indagine-furti-bici.html
TECHNOLOGICAL SCENARIO
The full development of the wireless recharge allows us to better implement our chip on
the bikes. With this technology users can easily recharge the item when required.
The precision of GPS systems has improved a lot recently. Moreover, the new European
positioning system Galileo was launched on 15th December 2016. All of this will allow us
to provide our customers with a reliable device both to measure their physical performance
and to rescue their bike.
Another important data we have to consider is the smartphone’s penetration in Europe.
12. MADEMBEPO 11
BUSINESS PLAN BAIC & ICARUS
Source: https://www.statista.com/statistics/203722/smartphone-penetration-per-capita-in-
western-europe-since-2000/
Source: https://www.statista.com/statistics/203726/smartphone-penetration-per-capita-in-
eastern-europe-since-2005/
Now we have to consider which apps smartphone’s users use the most.
The data consider the time spent in the different types of apps in 2016 compared to 2015.
This data considers only UK, Germany and France. Though we can use them as an
indicator of the European situation since these three countries include almost a half of
European citizens.
Source:http://www.digitalstrategyconsulting.com/intelligence/2017/02/european_app_trend
s_in_2017_business_apps_on_the_rise.php
Both the penetration of smartphones and the usage of sports apps are increasing. This will
allow us to better perform our business.
UK France Germany
Messaging and social +46% +32% +96%
Utilities & Productivity +45% -13% +23%
Sports +31% +190% +49%
Business & Finance +2% +106% +69%
Games -9% -13% -11%
13. MADEMBEPO 12
BUSINESS PLAN BAIC & ICARUS
Porter’s Analysis
THREAT OF NEW ENTRANCE (MEDIUM ATTRACTIVENESS)
1) Need of a partnership with a bike producer to develop the item (high barrier at the
entrance)à high attractiveness
2) Low switching costà low attractiveness
3) Access to raw materials and to distribution channel is easyàlow attractiveness
4) Low investmentà low attractiveness
5) Scale economy à high attractiveness
BARGAINING POWER OF SUPPLIERS (VERY HIGH ATTRACTIVENESS)
1) High number of suppliersà high attractiveness
2) Reputation of the supplier is not importantà high attractiveness
3) Low switching costà high attractiveness
4) No opportunity of forward integrationà high attractiveness
BARGAINING POWER OF CUSTOMERS (MEDIUM ATTRACTIVENESS)
1) High opportunity of backward integrationà low attractiveness
2) High switching costà high attractiveness
3) High power of the customersà low attractiveness
4) Low frequency of bicycle purchasingà high attractiveness
PRESSURE OF SUBSTITUTIVE PRODUCTS (VERY HIGH ATTRACTIVENESS)
1) There are no complete substitutiveàhigh attractiveness
COMPETITION (LOW-MEDIUM ATTRACTIVENESS)
1) High number of alternatives (but incomplete)à medium attractiveness
2) For the App high developed marketà low attractiveness
3) No exit barriersà high attractiveness
4) Big companies ready to enterà low attractiveness
TOTAL ATTRACTIVNESS: MEDIUM-HIGH ATTRACTIVNESS
14. MADEMBEPO 13
BUSINESS PLAN BAIC & ICARUS
Demand Analysis
To estimate the total market demand we have used, as reference data, both publications
made by agencies and data found with an online survey. The sources can be found on the
following links:
- http://www.ancma.it/statistiche/
- http://www.conebi.eu/facts-and-figures/
The model that we have developed is based on these parameters:
• A = European bicycle production based on past data and linear forecasting models
• B = The percentage of Italian bicycle production compared with the whole amount of
the European bicycle production
• C = parameter that allows to convert the Italian sample obtained through the survey
to the European market, considering the ratio between the Italian population and the
population of the main European countries where bikes are sold (Germany, UK,
Netherlands, France, Poland, Spain)
• D = sold bicycles percentage by a single producer (Bianchi) in Italy. (this parameter
is considered because our intention is to enter in the market with a partnership with
this producer)
• E = The percentage of bicycles sold with a price higher than 1500€, obtained
comparing the catalog of the producer with the revenue of the company
• F = percentage of positive answers to acquire the bicycle with a mark-up to cover the
cost of the item
The model is obtained using this formula:
Demand = A x B x C x D x E x F
We have also used some assumptions to simplify the model:
• The ratio of bike per category (race bike, MTB, …) produced and sold in Europe and
in Italy is obtained using ANCMA data considering them as a constant through
countries and years
• The Italian sample has been applicable to the European one, multiplying it by the
ratio between the Italian and European population
• The maximum capability of the producer has been assumed to be 22.000 frames
per year, as reported by ‘Eco di Bergamo’
(http://www.ecodibergamo.it/stories/Economia/piu-biciclette-prodotte-a-treviglioper-
il-130-anniversario-della-bianchi_1101392_11/ )
• We have decided to convert the production evaluations to sales evaluations
considering similarities between production and sales of the European market
• The e-bike market has been analyzed separately because of the lack of data
available
15. MADEMBEPO 14
BUSINESS PLAN BAIC & ICARUS
Parameter A definition
We have considered data available from CONEBI and ANCMA regarding the past
production of bicycles in Europe and in Italy. We have used a linear forecasting algorithm to
define the production volumes from 2018 to 2022. In 2015 A = 13.149.000
Parameter B definition
We have considered data available from CONEBI which declare a production of 2.346.173
units for the Italian production compared to a production of 13.149.000 for the European
production. These data have allowed us to define B = 18%
Parameter C definition
From the website ‘Populationpyramid’ (https://www.populationpyramid.net/ ) we have
obtained data about the population in the following European countries and the sold bicycle
percentage in each country from CONEBI statistics:
Country Population Bikes Sold
Germany 80.636.124 21%
UK 65.511.097 17%
France 64.938.715 14%
Italy 59.797.977 8%
Poland 38.563.573 6%
Spain 46.070.145 5%
Netherlands 17.032.845 5%
From these data, the Italian population ratio is 16.1% of the considered countries. C = 16.1%
Parameter D definition
From the survey, the ratio of people having a bicycle ‘Bianchi’ is 43 of 1001, then D = 4.3%
Parameter E definition
Considering the revenue of ‘Bianchi’ in 2015 (52.865.897€) as indicated on reportaziende
(http://www.reportaziende.it/fiv_fabbrica_italiana_velocipedi_edoardo_bianchi_spa) is
possible to identify the average price of a bicycle sold by the company:
52.865.897
22.000
= 2.400
€
𝑏𝑖𝑘𝑒
The price list of Bianchi (http://www.bicisupermarket.it/listini/1491507610_Listino-Prezzi-
Bianchi-2017.pdf ) allowed us to estimate the portion of the market of ‘Bianchi’ with a price
higher than 1.500 €. E=65%
16. MADEMBEPO 15
BUSINESS PLAN BAIC & ICARUS
Parameter F definition
From the survey, 899 people on a total of 1001 declared themselves favorable to buy a
bicycle with a mark-up in order to have the item. F = 89.6%
Definition of market demand
Applying the formula with the parameters found we have obtained a demand for the 2015
equal to:
𝑑𝑒𝑚𝑎𝑛𝑑 = 13.149.000 × 0,18 × 0,161 × 0,043 × 0,65 × 0,896 = 9.542 𝑏𝑖𝑘𝑒𝑠/𝑦𝑒𝑎𝑟
Using an Excel spreadsheet we have been able to extend the demand estimation to the
following years, and after the integration of data about the e-bike market, we have
considered the production percentage for type in order to identify the target market.
% bikes 2018 2019 2020 2021 2022
Race bike 5% 499 496 497 506 508
Mountain bike 27% 2.697 2.678 2.684 2.731 2.743
Adult bike 25% 2.497 2.480 2.485 2.528 2.540
Kid bike 43% 4.295 4.265 4.274 4.349 4.368
Total 9.988 9.918 9.939 10.114 10.159
e-bike 137 163 187 211 236
Total Demand 10.125 10.081 10.126 10.325 10.395
17. MADEMBEPO 16
BUSINESS PLAN BAIC & ICARUS
Market Penetration
Considering the 2018-2022 total demand we have decided to penetrate the ‘Bianchi’ market
dividing it into 5 main segments:
• Race bicycles: High interesting segment because of the high value of the bikes and
the high interest for the item (detected thanks to the survey)
• MTB: Wide segment including both the traditional bikes and high-performance and
high-cost bikes
• Adult bikes: Segment including city-bikes, tourism bikes, vintage bikes, folding bikes
• Kid bikes: low interest segment because of the high-frequency change. It could be
interesting only for the high value bicycles
• E-bikes: Extremely interesting segment because of the opportunity to connect the
charging system of the bike with the item, guaranteeing a quicker time to market
without the necessity of a charging system
The five years plan is based on penetrating mainly racing bikes and e-bikes segments,
followed by a progressive increase of MTB and adult bikes market and, finally by entering
in a small part of the kid segment
This approach allowed us to define the number of sold products and the forecasted
revenue with a price 90 €/pcs (this is an evaluation that does not consider the differences
of price of the item between the different segments)
2018 2019 2020 2021 2022
Pieces Sold 901 2.164 3.447 4.064 4.990
Revenue [€] 81.090 194.760 310.230 365.760 449.100
18. MADEMBEPO 17
BUSINESS PLAN BAIC & ICARUS
Offer Analysis
Considering the market of our product we have found 3 different kinds of competitors:
• Anti-theft devices
• Apps
• Gps-tracker
For each kind of competitor we have identified the key features which define the
competitive advantage and through a weighted method we have been able to identify the
strongest competitors for each category
Anti-theft devices
For this kind of products we have considered:
• Removability: the position on the bike and the opportunity to reach the device in
order to remove or damage it by the thief
• App connection: the opportunity to have an app to manage the functions of the
device
• Price: the price of the device plus the installment for the use of it
• Country: the position of the competitor (the closer to Italy it is, the more dangerous it
is for us)
• Weight: the weight of the device, the heavier it is the less dangerous it is, in fact,
our device is thought to be installed in low-heavy-frames
• Charge and duration of battery: the way to charge the battery and how long the
battery lasts
Through this analysis we have identified the most dangerous competitors:
19. MADEMBEPO 18
BUSINESS PLAN BAIC & ICARUS
Apps
For this kind of competitors we have considered:
• Pro: the opportunity to have some extra features in the app paying for them
• OS: the operating system where the app works
• Store evaluation: the evaluation given by the reviews of the users
• N° evaluations: number of reviews that have defined the store evaluation
• Price: the price of the app
Through this analysis we have identified the most dangerous competitors:
20. MADEMBEPO 19
BUSINESS PLAN BAIC & ICARUS
Gps-tracker
For this kind of products we have considered:
• Price: the price of the device
• Evaluation: the evaluation of expert blogger on the internet
• Connection: how the gps tracker interface with other devices
• Battery Life: how long the battery lasts
• Weight: the weight of the device, the heavier it is the less dangerous it is, in fact,
our device is thought to be installed in low-heavy-frames
• Dimensions: the area of the device in mm2
• Company revenue: the annual revenue of the producer of the device
• Country: the position of the competitor (the closer to Italy it is, the more dangerous it
is for us)
• App connection: the opportunity to have an app to manage the functions of the
device
Through this analysis we have identified the most dangerous competitors:
21. MADEMBEPO 20
BUSINESS PLAN BAIC & ICARUS
5. INTERNAL ENVIRONMENT ANALYSIS
Resources and Capabilities
RESOURCES
Tangible
• Being a startup, we don’t have any financial resources
• We have identified a possible location for renting an office in an easily reachable
position and well connected by the infrastructure
• Being in an industrial district highly developed in the bike industry
Intangible
• We are developing an item that is unique for it’s app connection, the implementation
of various functions as security and tracking and the position in the frame of the
bike that make the item almost impossible to remove
• Collecting data from the tracking system is possible for us to sell to third parties: to
the companies to better understand the consumer uses, to government bodies to
analyze the bicycle use, and to statistical agencies for their reports
• Considering the culture, all members of our company are born in a highly developed
technological age, that allow us to understand and solve a lot of possible problems
related to app connection, gps connection, the interface of the app and all the IT
issues related to our product
Human
• Thanks to our technical know-how we can communicate and interface with all the
technicians
• Strategic approach to the business development
• We have a good ability with public relations and to create interest on the product,
basing this on the feedback of the market research
• Management skills of the group thanks to our studies
CAPABILITIES
Being a company that is not yet born we haven’t developed any capabilities
22. MADEMBEPO 21
BUSINESS PLAN BAIC & ICARUS
Location
The location for the office of the company (Viale F. Crispi,Vicenza), from which we will
manage the service, has been chosen considering the need of reaching easily the main
supposed partner:
• Campagnolo, located in ‘Vicenza Ovest’, about 2 kms from the chosen zone for
the office
• Bianchi, located in Treviglio (BG), easily reachable through the highway which
entrance is near the chosen zone
Last but not least in this zone there are many offices rentable with an affordable price.
23. MADEMBEPO 22
BUSINESS PLAN BAIC & ICARUS
Organizational chart key human resources
Even if we consider each other members at the same level, we think that having a chief
coordinator is necessary. Considering the business so complicated, we found the following
key functional structure:
• Sales & Marketing: It manages the relations with the bicycle producer, ‘Bianchi’ at
the begin. It is responsible for the advertising campaigns and all the other things
related to marketing
• Purchasing: It manages the relationship with the producer of BAIC (Campagnolo),
to collaborate on the creation of item, the purchasing of the components and
establishing the partnership
• Finance: It manages the funds, the relation with the business consultant and all the
economic affairs of the company
• IT: It develops and manages the whole information network including app, web
interface and data analysis
• Customer Relationship: It follows the final customers (cyclists) managing
feedbacks, issues and helping customers during the procedures after a theft
• R&D: Transversal functional area that manages the technological, operative and
functional update of the company, chasing the technological innovation of the
industry
Considering the capabilities of each member we have developed the organizational chart
as follow:
24. MADEMBEPO 23
BUSINESS PLAN BAIC & ICARUS
4P Marketing
1. Product: Already described before [cfr. DESCRIPTION OF PRODUCT/SERVICE]
2. Price: we have based our choice on the survey (see following exhibit), we have set
an average price for each segment, considering the number of responses based on
the different type of bike owned by the sample; then through a weighted average
system we have obtained the final price. Considering the fact that during a survey
every answer is given a little below the real price that the consumer is willing to pay,
we have increased the price by 15%. So, the final result is 90€.
3. Place: The assembly of the item and the following placement inside the frame are
done by two different companies, both in a partnership with us. The place where the
item will be sold is the same one where the bike will be bought by the customer, in
fact the item is totally integrated into the bike
4. Promotion: At the beginning the publicity will be done through Facebook. We have
also considered some alternative choices as newspapers or TV programs, but they
are too expensive. Our promotion plan is based on word of mouth and special
events like ‘Giro d’Italia’
31
77
54
26
7
47
63
19
78
17
14
3 3
7
4
9
18
31
7
3 1
44
77
31
14
8
37
71
49
28
7
0
10
20
30
40
50
60
70
80
90
Meno di
50€
50-80€ 80-110€ 110-150€ Più di 150€
NumerodiRisposte
Fascia di Prezzo
Survey: Estimated Price
Bici da Corsa
City Bike
City Bike, Bici da Corsa
City Bike, Bici da Turismo
City Bike, Mountainbike
Mountainbike
Mountainbike, Bici da Corsa
25. MADEMBEPO 24
BUSINESS PLAN BAIC & ICARUS
6. SWOT ANALYSIS
STRENGHTS
• We are a team of young students. We are full of enthusiasm and energy and we
can't wait to prove ourselves with the challenge of managing a company.
• We feel confident with technology. Compare to existing companies we are more
aware of the possible applications of technology in everyday life.
• We are a new startup. We neither are in the market nor we have a complex
organizational structure. We are not afraid of experimenting disruptive products on
the market.
• We are all industrial engineers. We are not afraid of putting in practice the most
advanced management techniques. Compared to existing companies we don't have
cultural habits to remove. This will allow us to shape our company on the market we
will serve and be both flexible and cost leader.
WEAKNESSES
• We don't have any production facility nor employees.
• We also have to develop partnership with suppliers and customers and this will
cause an increase in our time to market.
• To sell our product we will have to make agreements with bikes producers. This will
decrease our profit and freedom in the development of the product.
OPPORTUNITIES
• In the North of Italy there are a lot of bicycle producers that could become our
suppliers and customers. This will keep our logistics costs low and allow us to
tightly collaborate with them during the development of our product.
• From the survey we have noticed that our product is very required by the market.
Probably that's because it finally solves the problem of bikes' thefts.
• The market in which we operate is still little developed. The product offered by our
competitors are very superficial and more expensive than ours.
• The market regarding "Internet of things" is rapidly developing and it is considered
one of the most promising market of the future. We think our product is one of the
first applications of IoT on the bikes.
THREATS
• Our product is easy to copy so it could be developed also by companies acting in
bicycle market. This could put us out of the market because we are a little company
without any economic power. This makes our business more risky.
26. MADEMBEPO 25
BUSINESS PLAN BAIC & ICARUS
7. ECONOMIC AND FINANCIAL PLAN
Startup costs:
• Registration tax 168 €
• Stamps and rights 250 €
• Government grant + stamp (310 + 16) €/y
• Deed 1300 € + 22% IVA
• Activation PEC with Aruba to subscribe to CCIAA 5 €/y
• Business consultant 4500 €/y + 22% IVA
• Rights for budget deposit 128 €/y (from the 2nd
year)
• Annual right for CCIAA 200 €/y (from the 2nd
year)
• IRES à 27,5% on income
• IRAP à 4,5% on added value
Rent 171 m2
in Vicenza, Viale Crispi 10800 €/y
Refusal fee (TaRi) 1200 €/y
Tracking App & anti-theft 30000 €
Web site creation 800 €
Computers and servers purchase 1300 €
Printer with fax and scanner 500 €
Google Drive unlimited cloud space 672 €/y
Evaluated bills for electricity and gas with AIM 2800 €/y (-20% from the 2nd
year)
Evaluated bill for water 600 €/y (-10% from the 2nd
year)
Internet with ‘fibra Vodafone’ 300 €/y
Gross wages and payrolls (7 employees) 135520 €/y
- about 1490 €/month gross with 30% withheld
Advertising cost (Facebook) 900 €/y (double in the first year)
Production cost for one item (variable):
• GPS 10 €
• Battery 10 €
• SIM 5 €
• Components assembly (Campagnolo) 10 €
27. MADEMBEPO 26
BUSINESS PLAN BAIC & ICARUS
Furnishings for the office:
• Meeting table (280 x 140cm) 507€
• Meeting chairs (30€ * 8) 240€
• Desks (37€ * 7) 260€
• Office chairs (45€ *7) 310€
• Armchairs (400€ * 2) 800€
• Coffee machine + coffee pods 90€
• Filling cabinets (250€ * 5) 1250€
• Chest of drawers with casters (50€ * 7) 350€
• Shelves 380€ * 2) 760€
• Office items (bins included) 210€
• TV for live conferences + equipment 340€
Incomes
Tracking information selling 0,6 €/device
Revenue from item selling 90 €/pcs
Premium app selling 4,99 €/user
Social Capital
15.000€ from each partner à105.000 €
28. MADEMBEPO 27
BUSINESS PLAN BAIC & ICARUS
For the first three years we will have to ask for funds, so the final cash flow will be positive
only from the fourth year, this can also be seen from the debt ratio index.
Except for the first year, in which we will have a lot of startup costs, the ROA will have a
great value.
The availability index show us that, from the third year, we will have economic resources
for the company development to innovate the service and improve the quality.
POSSIBLE FUNDS SOURCES
Due to the high risk of our business, we think that banks could not invest in it, so we have
identified different sources from which we could receive funds and they can be divided in
these three classes:
● Public Funding, especially the European program Horizon 2020, that sustain
initiatives similar to the one that we are developing;
● Venture Capital or Private Subjects that decide to invest in our startup
● Equity Crowdfunding, in particular two different portals that are indiegogo and
kickstarter which are full of ideas regarding bicycle technology
40. ASSUNZIONI BASE
Descrizione Compenso orario [€] Ore lavoro annuali Costo voce [€]
Personale assunto
Impiegato 1 0,00
Impiegato 2 0,00
Impiegato 3 0,00
Segreteria 0,00
0,00
Personale a contratto o consulenti (no TFR)
Impiegato 4 0,00
Impiegato 5 0,00
Impiegato 6 0,00
Amministratore 135.520,00
135.520,00
TOT. Personale 135.520,00
PARAMETRI DI INPUT : 0 ANNO I ANNO II ANNO III ANNO IV ANNO V ANNO
% accantonamento annuo svalutazione crediti 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%
Crediti Commerciali (aggiustabili fino a 360 giorni)............................................................................................................................................................................................................(in giorni)................................................................................................................................................................................................................30 giorni
Debiti Commerciali (materie prime e servizi).........................................................................................................................................................................................................(in giorni)................................................................................................................................................................................................................60 giorni
0 ANNO I ANNO II ANNO III ANNO IV ANNO V ANNO
Tasso di interesse passivo finanziamenti a MT 3,5% 3,5% 3,5% 3,5% 3,5% 3,5%
CALCOLO DELLE IMPOSTE DA PAGARE
0 ANNO I ANNO II ANNO III ANNO IV ANNO V ANNO
Reddito imponibile prodotto nell'esercizio -117.803 -47.666 26.727 65.402 119.913 #RIF!
Riporto perdite fiscali 117.803 165.469 138.742 73.340 0 #RIF!
Reddito imponibile 0 0 0 0 46.572 #RIF!
Aliquota % di Imposte 40% 40% 40% 40% 40% 40%
Imposte 0 0 0 0 18.629 #RIF!