Paris Mate

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Paris Mate

  1. 1. Cover Page
  2. 2. DAMN! Forgot the guidebook at the hotel
  3. 3. I NEED TO CALL MY FRIEND!!! (but this would be outrageously expensive!)
  4. 4. We see an opportunity here • Language barrier • High cost of using personal phone • Awkward sense of being lost in an unknown country • The inconvenience of information being incomplete or outdated. TOO HEAVY, OUTDATED EXPENSIVE! NOT VERY USEFUL
  5. 5. HARDWARE & SOFTWARE • Audio Guide with City Walks • City Information • Navigation • Text Recognition & Translation • Peer-messaging BUNDLED SERVICES •Cheap National & International Phone Calls •Customer Support Center •Events Calendar •Travel plan suggestions The STATISTICAL USAGE DATA CAPTURE
  6. 6. Competitive Advantages • First Movers • Unique bundle of existing technologies • We are creating a new niche • Small, motivated and focused – Fast reaction time! CORE ADVANTAGE IS THE PRODUCT ITSELF
  7. 7. Audio Guide Tour Guide GuideBook iPhone Applications Paris Digital Mate Competitive Advantages COMPLETE CONVENIENT AFFORDABLE INTERACTIVE
  8. 8. Business Model • Revenues will come from: – Pascal One Rentals • Cost drivers will be: – Phone insurance and periodical replacement – Phone and data service from providers – Marketing campaigns – Support and sales force salaries – Software maintenance (developers)
  9. 9. Why Paris? Addressable Market of: • 7.4M international leisure tourists • 4.9M internationalbusiness tourists First international tourist destination – 28 million tourists, 67.3 million overnight stays – 130+ museums, 70+ cultural sites.
  10. 10. Our Target Market • International Tourists – Visiting Paris for leisure or business – Individuals or unorganized tours – Primarily English, Italian, Spanish, German speakers • Objectives – Year 1: 0.5% of international tourists – Year 5: 1.9% of international tourists …don’tforget the Francophones!
  11. 11. Marketing Strategy • Position as leading integrated solution for customers – Innovative, easy to use, comprehensive • Impulse purchase of service – Affordable price – Emphasis on distribution channel International Tourists Leisure Oriented Language Need
  12. 12. Marketing Strategy Product Intangible: Services associated Tangible: Pascal One Price Rental Model •28,8€ for 3 days •+5 addit. day Premium compared to books / sw Affordable compared to guided tours Placement Airport booths Railway Station booths Hotels & Travel Agents Promotion Teaser Viral to specialised media Trade Shows Salesforce and AD campaign
  13. 13. Development Plan 6 months •Prototyping •Content develop. •Beta Testing •Handset acquisition •Equip’Hotel tradeshow 2011 •Q1 Pascal One Launch Campaign Salon Mondial de Tourisme 2013 •Q2 Infomediary model adoption •Q3 Pascal Two prototyping 2014 •Q1 Pascal two launch and renewal of stock •Q4 Project evaluation 2015 •Q2 Growth plan development • Time to Market  6 months • Service Launch in March 2011 • Renewal and new features in Q1 2014 • New features available Q2 2012
  14. 14. -1000000 0 1000000 2000000 3000000 4000000 5000000 6000000 1 2 3 4 5 6 Financial Requirements • DEVELOPMENT MILESTONE (now) – Total: 100.000€ – We have 40.000 – ASKING: 60.000 • LAUNCH MILESTONE (2011) – Additional 220.000 needed • CASH POSITIVE by 2012 DEVELOPMENT MILESTONE LAUNCH MILESTONE CASH POSITIVE BY 2012
  15. 15. 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 4500000 Sales Total Costs Financial Projections 2010 2011 2012 2013 2014 2015 Net Income -29.356,40€ -121.533,09€ 243.280,97€ 689.828,44€ 1.346.100,64€ 2.323.524,80€ DigitalMate Team 15.205,06€ 43.114,28€ 84.131,29€ 145.220,30€ External Investors 106.435,43€ 301.799,94€ 588.919,03€ 1.016.542,10€Dividends paid 50% rate Investment repaid in dividends
  16. 16. Financial Projections • CF Positive in 2012Payback of 2 years • Rate of return of 229% & around 3,6 million€ NPV – Assumed opportunity cost of 20% • 20% ROIC for year 5 (40% without dividends) 2010 2011 2012 2013 2014 2015 Free Cash Flow -88.806 -79.433 510.479 1.257.538 2.361.017 3.893.926 NET PRESENT VALUE :3.630.729,29€ IRR :229% PAYBACK :2,0 years
  17. 17. Financial : Income StatementsINCOME STATEMENT Initial Inv. 0 1 2 3 4 5 Sales 0.00€ 805,893.58€ 1,403,538.55€ 2,086,765.15€ 3,059,542.89€ 4,146,429.45€ Direct Costs Phone import tax 77.00€ 7,700.00€ 3,011.01€ 11,459.77€ 4,053.56€ 19,997.56€ Phone Freight 500.00€ 500.00€ 500.00€ 500.00€ 500.00€ 500.00€ Office 0.00€ 12,000.00€ 12,480.00€ 13,104.00€ 27,780.48€ 29,447.31€ Corporate Labour 0.00€ 52,800.00€ 68,640.00€ 85,662.72€ 118,785.64€ 123,537.06€ Sales Force 0.00€ 144,000.00€ 179,712.00€ 218,050.56€ 291,564.75€ 336,919.27€ Top Management 0.00€ 42,000.00€ 43,680.00€ 45,427.20€ 47,244.29€ 49,134.06€ Total Direct Costs 577.00€ 259,000.00€ 308,023.01€ 374,204.25€ 489,928.72€ 559,535.26€ Indirect Costs Office Equipment 0.00€ 4,000.00€ 800.00€ 1,120.00€ 12,000.00€ 1,200.00€ Product Test 2,000.00€ 2,200.00€ 2,420.00€ 2,662.00€ 2,928.20€ 3,221.02€ Data Tariff 0.00€ 120,000.00€ 123,840.00€ 157,680.00€ 159,840.00€ 193,536.00€ Google Maps + Scanr 15,000.00€ 15,600.00€ 16,224.00€ 16,872.96€ 17,547.88€ 18,249.79€ Cell-phones insurance 179.40€ 17,940.00€ 24,685.44€ 31,430.88€ 39,826.80€ 48,222.72€ Web-Site 3,000.00€ 1,050.00€ 1,102.50€ 4,500.00€ 1,260.00€ 1,050.00€ Training Staff 0.00€ 6,000.00€ 7,500.00€ 9,375.00€ 11,718.75€ 14,648.44€ Telephone & Internet 300.00€ 1,500.00€ 2,520.00€ 3,960.00€ 5,040.00€ 6,300.00€ Point of Sale Rent 0.00€ 238,680.00€ 248,227.20€ 258,156.29€ 268,482.54€ 279,221.84€ Transportation 4,000.00€ 5,000.00€ 5,000.00€ 1,040.00€ 1,081.60€ 1,124.86€ Package 2,000.00€ 1,000.00€ 1,376.00€ 1,752.00€ 2,220.00€ 2,688.00€ -Google 0.00€ 37,440.00€ 38,937.60€ 40,495.10€ 42,114.91€ 43,799.50€ Total Indirect Costs 43,779.40€ 671,843.33€ 827,941.91€ 981,419.69€ 1,144,748.85€ 1,182,412.37€ 44,356.40€ 930,843.33€ 1,135,964.91€ 1,355,623.94€ 1,634,677.57€ 1,741,947.63€ EBITDA -44,356.40 -124,949.75 267,573.64€ 731,141.21€ 1,424,865.32€ 2,404,481.82€ Depreciation Expense 0.00 12,183.33 40,516.67€ 58,185.73€ 96,312.56€ 99,206.81€ EBIT -44,356.40 -137,133.09 227,056.97€ 672,955.48€ 1,328,552.76€ 2,305,275.00€ Interests 0.00 0.00 0.00€ 0.00€ 0.00€ 0.00€ EBT -44,356.40 -137,133.09 227,056.97€ 672,955.48€ 1,328,552.76€ 2,305,275.00€ Tax 0.00 0.00 0.00€ 0.00€ 0.00€ 0.00€ Net Income -44,356.40 -137,133.09 227,056.97€ 672,955.48€ 1,328,552.76€ 2,305,275.00€ Dividends 0.00€ 0.00€ 113,528.49€ 336,477.74€ 664,276.38€ 1,152,637.50€ Year
  18. 18. Thank you for your attention watch our video on youtube Please do not hesitate to make any questions now
  19. 19. Exit Strategies • Exit milestone  Every three years – Halting of investment (R&D, Mkt…) – Dilution of salesforce – 2 additional years of operation on minimum costs • Sale of the company – To Travel agencies or Telecom based software companies – Trade value of customer data or business model STATISTICAL USAGE DATA CAPTURE
  20. 20. Growth Plans & Options • Inclusion of new features – Booking service • Geographical Expansion – Limited to France – International Expansion • Inclusion of infomediary model – Additional revenue stream FROM YEAR 2 WILL DEPEND ON FUNDING 1 2 WILL DEPEND ON INITIAL SUCCESS3
  21. 21. Risk Assesment 1/2 • No competitors on start • New niche – Confusing position for industry big players • High scalability • Low structure costs – Use of cloud computing • Management salaries highly tied to result
  22. 22. Risk Assesment 2/2 • High investment needed to keep operations • Existing technologies means business model can be easily replicated • If international expansion is delayed  Risk of losing those markets to follower businesses

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