1.
CAR PARKING FINDER
SOLUTION
BUSINESS PLAN
GROUP MEMBERS
• Geoffrey Nzomo
• Myat Thada Kyaw
• Robin Pik Kipkoech
• Pham Thi Thu Thao
• Win Thuzar Than

2.
Table of contents
2
1) Executive Summary
2) Company Summary & Organizational Structure
3) Product
4) Market and Strategy Analysis
5) Financial plan

3.
Overview: Executive
summary
3

4.
Executive Summary
◉ Car Parking Finder Solution
is an application to support
travellers or car owners to
find the nearest car parking
space within short time in
responsive way.
◉ It focuses on the providing
private parking spaces
4

5.
5

6.
Executive Summary: Objectives
Gross Profit Margin: 70%
Net Income After Tax : Above 10 percent of Sales
Increase Number of Parking Lots: 3 to 4 Times
Gain Break-Even after One Year
Number of users projected to register in the first Quota: 500
6

7.
Executive Summary: Mission
Service Mission (for Convenience)
Provide a useful application tool to car owners that help them locate the
nearest parking place at affordable price within shortest time.
Partner Mission (to Generate Profit)
Cooperate with parking owners based on honesty and trust
Economic Mission (to Gain Break-Even)
Operate and grow at a profitable rate (gain break-even and generate profit)
7

8.
Executive Summary: Keys to Success
1) User Friendly
2) Easy to Search
3) Payment Solution
8

9.
Company Summary
9

10.
Company summary
◉ General Partnership
◉ Five Partners
Built on trust and respect
Taking active roles in the operations of the business (1 MD and 4 Chief officers)
◉ Financing – equally invested by partners and the other is borrowed from bank
◉ Location
First Office : near Tokyo, probably in Chiba area
Lease an apartment for office with fully furnished
10

11.
Start up summary
◉ Expense
s
Table : Start-Up Expenses and Assets
Start-Up Requirements
Start-Up Expenses : (yen)
Legal 300,000
Apartment Lease (6 months) 768,000
Office Supplies 60,000
Electricity Fee, Phone Bills 180,000
Software application development fee(once) 1,500,000
Cloud computing fee 250,000
Website Hosting Fee 120,000
Advertising 200,000
Other Operating Expenses 75,000
Total Start-Up Expenses 3,453,000
11

12.
◉ Assets
Start-Up Assets :
Cash Required 560,000
Other Current Assets 150,000
Long-term Assets (Computers) 2,300,000
Total Assets 3,010,000
Total Requirement 6,463,000
12

13.
◉ Funding
Table : Start-Up Funding
Start-Up Funding (yen)
Start-Up Expenses to Fund
3,453,000
Start-Up Assets to Fund
3,010,000
Total Funding Required
6,463,000
Assets
Cash Requirement from Start-Up
560,000
Non-Cash Assets from Start-Up
(Long-term+Other Current Assets) 2,450,000
Total Assets
3,010,000
13

14.
◉ Funding
Liabilities and Capital
Liabilities
Current Borrowing
163,000
Long-term Liabilities
2,300,000
Total Liabilities
2,463,000
Capital
Partners' Investment
4,000,000
(Start-Up Expenses)
(3,453,000 )
Total Capital
547,000
Total Liabilities and Capital
3,010,000
Total Funding
6,463,000
14

15.
Management
&
Organizational
Structure
◉ Total Employees
◉ First Year (19)
◉ Second Year (28)
◉ Third Year (37)
MD
Chief Operation
Officer
Operation
(3)
Project Manager
(1)
Developer (1)
DB Admin (1)
Chief Marketing
Officer
Marketing
(6)
Manager (1)
Executive (5)
Chief
Administration
Officer
Administration
(2)
Manager (1)
Staff (1)
Chief Finance
Officer
Finance
(3)
Manager (1)
Accountant (2)
15

16.
Product
16

17.
The Product
Introduction Car park mobile application will help users to find a free parking spot in
the middle of Tokyo conveniently via their mobile phones.
Users will easily locate nearest parking, compare prices and reserve a
parking spot
This great idea will not only be useful car users but to private car park
owners as well.
It provides private park owners easy and convenient way to commercialize
the parking.
Park owners will easily find customers to their parking, manage
reservations and payments from the parking finder solution
17

18.
The Product Overview

19.
The Product
Description Car Park Finder solution will allow users to search for free parking
spots close to their current locations. Users will be able reserve for a
parking spot.
However reservations made will only be valid for 15 minutes, upon
which the user will be expected to make a payment.
This approach allows user to drive to the parking and only pay if they
feel they like the parking spot.
Park owners will be required to update on the solution when their
parking becomes free and available for another user to park.
19

20.
The Product technology
Park Finder
Real time
Updater
Engine
• Reservations update
• Availability update
• Managing alerts
• Payment integration
Car User
Front End
Module
• Visual map- shows available
parking spots available in your
current location
• Booking and payment
functions
• Historical e receipts on
payments
Park
Owner
Module
• This segment of the application will set
up all parking spots that are usable in
the solutions.
• Park owners registration
• Parking facility set up
20

21.
The product technology
Park Owner
Module
Park Finder
Real-time
Updater
Engine
Car User
Front End
Module
This segment of the application will set up all parking spots that
are usable in the solutions.
◉ Park owners registration
◉ Parking facility set up
◉ Reservations update
◉ Availability update
◉ Managing alerts
◉ Payment integration
◉ Visual map- shows available parking spots available in your
current location
◉ Booking and payment functions
◉ Historical e receipts on payments
21

22.
Market Analysis &
Strategy Summary
22

23.
Market Analysis
Market segmentation
strategy was based on the behavior pattern of our targeted prospective customers (i.e.
rate of car usage, loyalty status, readiness to use private parking etc.).
Market Research
◉ For budgetary reasons, we decided to perform a primary market research
through an online survey
◉ Survey Monkey – A qualitative online survey tool.
◉ 2 types of surveys - car owners’ & private car park owners.
23

24.
Survey Results: Car Owners
24

25.
Survey results: Car Owners’
25

26.
Survey results: Private car park owners
26

27.
SWOT Analysis
Strengths
Strong Developer Team: the developers of the mobile app are key developers of the
R&D department with very strong skills.
First to Market: We have and must always keep a step ahead. A first mover may not
always be an advantage. Secondary or late movers to an industry or market, have the
ability to study the first movers and their techniques and strategies. They can learn
from their mistakes. The competition is also allowed to benefit and not incur the costs,
which the first mover has to sustain.
Solid Technology: It is an open and very configurable technology.
27

28.
SWOT Analysis
Weaknesses
No strong marketing capacity: we are a technology firm, not marketing one. We
need to accumulate some marketing knowledge.
Monetization model: we are unsure about the business model to use in order to make
profit and to grow. The monetizing model is not fixed; we are free to experiment with it
and it will have to be fine-tuned after some time.
28

29.
SWOT Analysis
Opportunities
Offering a unique service that uses or utilizes dispatch software to send the nearest
parking to a driver’s location that is in search of a convenient parking.
Threats
Competitors Emerge: as we are first to the market, we need to be sure to stay one
step ahead of the competition.
Evolution of Apps: as mobile technology is evolving very quickly, it is hard to predict
how mobile apps will evolve in the future
29

30.
Nokisaki Inc (Direct Competitor)
◉ Eaves Parking Solution can be
accessed both website and mobile.
◉ In 2014: Nearly 1,000 parking
spaces registered mainly in Tokyo and
Osaka. Member list : About 9,000.
Make Free
Membership.
Register parking
lot before they
are going out
Pay with credit
card after
register
Get Booking
Information
Input their car
number
information
Get the ticket
issue
Competitors
30

31.
ParkMe (Significant Competitor)
◉ A Web and Mobile Worldwide application
◉ Store Data over 84,000 locations in over 64 countries including Japan
◉ Provide car parking full information with Google map and show the status of availability.
◉ Customer can
◉ Search the nearest location with compare price
◉ Reserve parking location.
31

32.
Indirect Competitors
No Name Address
1) Sanrio Co. (hello kitty parking
lot)
(http://en.puroland.jp )
2) Park24 Co., Ltd. (http://www.park24.co.jp)
3) TokyoToMo (http://www.tokyotomo.com)
4) Other parking offer from Hotel, Apartment, Shopping Malls, etc.,
32

33.
Marketing strategy
◉ Target - Tokyo population
◉ For our car park finder mobile application, we are going to use mass marketing
as our main strategy
◉ Our mass marketing channels - mainly the Internet
◉ Furthermore, we are going divide our marketing strategy to a pre-launch and
post-launch
Pre-launch - to create awareness and visibility
Post-launch - to maintain existing customers, increase the conversion rate
and create user retention.
33

34.
Marketing strategy (Cont)
Mass Marketing - we will try to reach our niche using internet, and will
include;
◉ Getting our app into the iPhone app store & Google Play
◉ Using social media
◉ Making an app-specific web site
◉ Participating in events – such as meet ups, exhibitions and conferences
◉ Advertisement
34

35.
Marketing Strategy (Cont)
Pre-launch strategy
◉ Landing page – typically a one page website that is an advertising tool for our
app
◉ Blog – to regularly write about issues that our product covers
◉ Social Media Profiles - use profiles to spread word on blog posts, landing page
& website.
◉ Search Engine Optimization
◉ Tech Blogs – such as TechCrunch
◉ Forums - participating in online forums to keep discussion about our product
active and on-going
35

36.
Marketing Strategy (Cont)
Post-launch strategy
◉ App Store marketing: having a catchy app icon to grab attention on online
audience
◉ App Review Websites: setting up app review sites
◉ Tech Blog re-communication
◉ Ratings and Reviews: encourage our customers to review & rate our application
36

37.
Pricing Strategy
Factor that should help us determine what charge for our service.
◉ pricing of our service in relation to the existing competitors
◉ Willingness of customer to pay for the service
From the survey we were able to establish that car owners were willing to pay ¥100
per 15 minutes in order to park at the private parking.
37

38.
38

39.
Sales strategy
◉ The car park finder system will be a service that allows you to request private
parking through applications for iPhone and Android devices.
◉ Freemium business model. We decided to choose the free option because it is
a good motivator to get people to download the mobile application.
◉ The application will be free, but the objective will remain; to make money. This
model will generate income only from charging 10% from the parking fee.
◉ The service provides a cashless solution that charges your parking directly to the
credit card on file with your account.
39

40.
Financial Analysis
Summary
40

41.
41
◉ Estimate loss for the first year operation is about -3,865,200 yen,
◉ From the second year our company starts gaining profit.
◉ From the third year the profit will increase significantly.
◉ We don’t own inventory as well as producing machines, only computers ,
printers....
◉ Concentrate on employees who contribute considerably to generate sales for our
company as well as employees contributing in operating activities
Financial Plan

42.
◉ 10% from parking owners for each parking lot found
How to get revenue
42

43.
Income statement
43
Assumptions

44.
Cost of goods sold : component 1 (software application)
(yen)
44

45.
Cost of goods sold : component 2 (salary for IT department)
45

46.
Salary adding for operating expense
46

47.
Key financial indicators
47
• Sales,
• Gross margin,
• Cost of goods sold
• Inventory turnover.
Sale is expected to increase from 150
to 200 percent.
The gross profit margin is forecasted
to account for above 85 percent.

48.
48
Break-Even Analysis
Monthly parking lots break-even 348
Monthly revenue break-even 3135000 Yen
Assumptions:
Average of 1 parking lot finding revenue per hour 40 Yen
Average variable cost per 1 parking lot 8 Yen
Estimated monthly fixed cost 2,508,000 Yen
Parking lot using fully 25 days/month and 9 hour/day
So we will get break-even point after 14 months.

49.
Cash Flow statement (Yen)
49

50.
(yen)
Balance sheet
50

51.
THANKS!
Any questions?