1CARD
Business Feasibility Study
New Business Venture
Description
1CARD is a technology company that allows consumers to combine multiple cards into one simple and secure location. 1CARD sees a definitive role in the market for technology that allows users to combine loyalty, membership, gift, and credit cards into one simple and secure card. 1CARD was generated as the product of extensive research on consumer spending habits, which resulted in a clear market opportunity. After researching, there was a noticeable consumer pattern to not only use credit for the majority of transactions, but also to use a loyalty or membership card for most transactions. This led to the strategy to combine all of these numerous cards into one simple and secure card.
We see this technology as being easily accessible and highly affordable to all consumers. 1CARD will be profitable among consumers of all incomes, demographics, and ages. This technology will in no way be limited to a certain area of the market. In any location that credit, loyalty, membership, or gift cards can be used, 1CARD will fulfill a pivotal role. Furthermore, this technology eases the consumers’ burden, as it may be implemented into already existing credit cards. There will be no limit as to the number of cards or the amount of information that can be stored with 1CARD technology. In addition to keeping updated with the retailers’ software, 1CARD will also offer a central web space where balances and transactions may be accessed by the end user.
Opportunity
The recent proliferation of brand and store based loyalty and membership cards have come to burden the consumer. While seemingly counterintuitive, this idea which first started as a consumer convenience has spawned into an explosion in number. Yet many retail outlets are now offering sales or reward points only to those consumers who present their respective card. This need to have many cards at all times has become cumbersome to the consumer who has either a wallet or a keychain overflowing with cards. Furthermore, the consumer tendency towards credit transactions fits ideally with our business model.
Unlike other devices that require you to manually select one card at a time, 1CARD contains all of your information securely and simultaneously. The potential for consumers to carry only one card in their wallets will be very attractive to casual and frequent shoppers alike, of all income and demographic sectors, and reaching to all varieties of retail markets and beyond.
We believe that key selling points are the combination of simplicity and security. The addition of 1CARD to the consumers’ wallet will require little work or cost on their part, and will greatly make up for any inconvenience. Furthermore, just as existing personal identification information is stored on a credit card, so too will all of the additional information be secure and only accessible through qualified retail physical devices.
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1CARDBusiness Feasibility StudyNew Business VentureDescrip.docx
1. 1CARD
Business Feasibility Study
New Business Venture
Description
1CARD is a technology company that allows consumers to
combine multiple cards into one simple and secure location.
1CARD sees a definitive role in the market for technology that
allows users to combine loyalty, membership, gift, and credit
cards into one simple and secure card. 1CARD was generated
as the product of extensive research on consumer spending
habits, which resulted in a clear market opportunity. After
researching, there was a noticeable consumer pattern to not only
use credit for the majority of transactions, but also to use a
loyalty or membership card for most transactions. This led to
the strategy to combine all of these numerous cards into one
simple and secure card.
We see this technology as being easily accessible and highly
affordable to all consumers. 1CARD will be profitable among
consumers of all incomes, demographics, and ages. This
technology will in no way be limited to a certain area of the
market. In any location that credit, loyalty, membership, or gift
cards can be used, 1CARD will fulfill a pivotal role.
Furthermore, this technology eases the consumers’ burden, as it
may be implemented into already existing credit cards. There
will be no limit as to the number of cards or the amount of
information that can be stored with 1CARD technology. In
addition to keeping updated with the retailers’ software,
1CARD will also offer a central web space where balances and
transactions may be accessed by the end user.
Opportunity
2. The recent proliferation of brand and store based loyalty and
membership cards have come to burden the consumer. While
seemingly counterintuitive, this idea which first started as a
consumer convenience has spawned into an explosion in
number. Yet many retail outlets are now offering sales or
reward points only to those consumers who present their
respective card. This need to have many cards at all times has
become cumbersome to the consumer who has either a wallet or
a keychain overflowing with cards. Furthermore, the consumer
tendency towards credit transactions fits ideally with our
business model.
Unlike other devices that require you to manually select one
card at a time, 1CARD contains all of your information securely
and simultaneously. The potential for consumers to carry only
one card in their wallets will be very attractive to casual and
frequent shoppers alike, of all income and demographic sectors,
and reaching to all varieties of retail markets and beyond.
We believe that key selling points are the combination of
simplicity and security. The addition of 1CARD to the
consumers’ wallet will require little work or cost on their part,
and will greatly make up for any inconvenience. Furthermore,
just as existing personal identification information is stored on
a credit card, so too will all of the additional information be
secure and only accessible through qualified retail physical
devices.
Methodology
1CARD solves the impending consumer burden by securely
storing all loyalty, membership, and gift card information
within the magnetic strip of an existing credit card. Therefore,
1CARD will keep physical costs to a minimum, and will rely on
3. the software and data mine backbone, while licensing the
technology to existing institutions. We see our business as one
who creates and builds the virtual background and technological
basis, and then licenses the technology to large corporations
who will pay a miniscule fee per transaction. Consumers can
enjoy the freedom of only having to carry a single card, while
also knowing that their balances and points will be stored
accurately and securely. This will place no additional cost or
burden on retailers, as our technology is specially tailored to
comply with existing card-reader technology.
1CARD will maintain routing devices that will direct the
transaction to the appropriate retailer’s software for the purpose
of validation and transaction storage in addition to storing the
information in our database, and will also reflect this
information via their web portal. Our web space will be self-
service on the customer’s part, as they will have the opportunity
to not only enter more loyalty and membership cards into their
1CARD account, but also to track their balances and
transactions.
1CARD seeks go generate revenue at the onset by licensing the
technology to major credit card companies. Our guarded first-
year goal is to have our technology on one percent of each of
the five major credit corporation’s transactions. This is a very
cautious estimate, being offered at an extremely low rate, which
still will provide for generous return on capital. Future growth
stands to be aggressive, as we strive to increase our market
share by licensing our technology to credit companies for more
and more of their consumer’s transactions, and by expanding
our target markets. We also see a future role for our data mine,
as we can release information on consumer buying habits for
targeted advertising, without violating consumer trust. This
stands to bring in significantly more revenue than at our onset.
4. As 1CARD is a new company with a radical new idea, we are
fully prepared with a trained customer service staff ready to
serve not only consumers but also retail and corporate clients.
We believe that a smooth transition into the marketplace will
assure our future success and permanent role in the
marketplace.
Competitive Advantage
1CARD is seeking to embrace a blue ocean strategy by stepping
out of the traditional roles of credit cards and loyalty cards by
combining them. We believe that we are market initiators who
will serve a pivotal role once consumers take notice of our
product. We furthermore believe that we have a product and
technology that stands to be a permanent player in the market.
We see retailers as being minimally inconvenienced by our
technology, and consumers finding our technology to be
indispensable.
In order to stand out from any present or future competitors,
1CARD offers:
( One simple and secure card that contains all of your
membership, loyalty, and gift cards
( One card where all contained cards are ready at all times
( Minimal burden to retailers
5. ( No new physical infrastructure required
( Unrivaled customer support
( Customer-friendly web space that tracks all balances and
transactions
Our customers will receive great benefits from demanding the
1CARD, and our business model allows for the transition to be
quick and easy for both retailers and consumers. This simple
and effective technology stands to quickly be a permanent
member of the marketplace.
Industry
Product/Service Analysis
The emphasis in today’s economy is always on convenience.
Consumers are willing to spend extra money for added
convenience and that is what this 1CARD will provide them.
Our product will allow consumers to add their credit cards,
loyalty card as well as gift cards, all on this 1CARD. The
consumers will not have to worry about carrying an entire
wallet filled with cards, because they will have access to all of
them all from our product.
Since our product will be in a form of a credit card, there are no
licenses that will be needed. The original patent for a
Magnetically Coded Identification Card was first filed in
February of 1981 with the patent number 4253017.
According to the law, since a patent was filed over 20 years
ago, it does not require a license for us to use.
We will however file a patent for our product once it is
completed which will allow us to collect a small share of profits
from the credit card companies for having the license to use our
product.
6. Industry/Market Analysis
The credit card industry has been on an incline as of late. Due
to its continuous growth, MasterCard went public with VISA
soon to follow. The new and younger generation often feels
that using credit cards is far more convenient then carrying cash
around. As seen in recent VISA card commercials, that person
using cash only slows down the economy. Not all consumers
feel that way, but many of the younger generation find credit
cards much easier. In the future, analysts have predicted credit
card transactions will only continue to grow. Credit cards will
continue to expand to other countries that have not yet been
exposed to them in a manner that United States has. It is
predicted that only about 11% of the consumers in the world
carry credit cards, and that number is expected to grow by 2%-
3% every year for the next 10 years.
This proves that credit card transactions will only continue to
rise across the world, which creates an even larger market for
our product. The graph below shows how far ahead the United
States is in comparison to the rest of the world that has just
begun using this form of technology.
Table 1 below shows the extent to which credit card and charge
card were used in different countries in 1998 and 2005 to show
the continuous growth across the world.
Table 2 below shows the actual and forecasted growth by
region. This is just further proof of another study done by
Global Insights to prove that continuous growth in the credit
card industry.
Data above assures that the credit card industry is going to
continue to grow. Because of this growth I feel they will accept
our product and be willing to pay us a small percentage of their
7. profit ($0.0033) for each transaction because of the added
convenience our product will provide the consumers. Credit
card companies will find it is much easier to sell their credit
card to consumers because of the perks they could offer. There
are several consumers that are not comfortable with having
various credit cards and like to carry one. Our product will
cater to that group, who can have various credit card accounts,
but can manage all of them through one credit card. We feel
that our product will only help the credit card companies market
their product even more effectively with the use of 1CARD.
Competitive Analysis
Currently there are not many competitors in the market
providing this product. There is a competitor providing a
product called iCache. The way iCache works is that users
register their cards on the company Web site and upload the
information into the iCache. When they want to use it, they
activate the device with a fingerprint on its biometric strip,
scroll through a list of cards on its screen, and choose one. Out
pops a plastic card with a magnetic stripe, temporarily loaded
with the chosen card's data. Just swipe the card and pop it back
into the iCache. After one use, the information on the card
disappears. The device even works with loyalty cards, such as
those handed out by supermarkets. The inherent problem with
this product is that only one card can be selected at a time.
After you use a card, you will have to insert your iCache card
back into the device to load it with the identification of another
loyalty card. This is precisely the inconvenience that 1CARD
seeks to avoid.
Although this product is not completely similar to the product
we are producing, it still serves the same consumer base and the
market that we are trying to launch ourselves into. This product
seems to be more technologically complicated then our product.
Our product would be a simple credit card that can be swiped
through a regular credit card machine. This will allow the
consumers that are not technologically advanced to still use our
8. product without having to deal with any technology
deficiencies.
iCache is expected to go on sale sometime this year and expects
to sell 7 Million units at the end of 2009 for $99 each. Our
product is not directly being sold to the consumers, but to the
major credit card companies instead, ho will then issue our
product to the consumers and provide us a very small portion of
their proceeds to allow their consumers to have the added
convenience of having all cards in one.
1CARD is the solution for all types of consumers from all parts
of the world without having any direct cost to the consumers.
This next generation credit card is sure to be a success for all
credit, loyalty and gift card users.
Five Forces Model
1. The threat of substitute product – As stated above, There
currently isn’t a product available similar to the one we are
producing. There is the iCache, which is not similar to our
product. There isn’t a substitute in the market for the product
we are offering as it will be a new product.
2. The threat of the entry of the new competitors – For this
reason, we are going to have a patent for our product once it is
produced. This will entitle us to licensing fees from anyone
that wishes to use our product. As we more towards the future,
it is very likely that there may be products out in the market
that sell the same idea we do, but we want to the first ones with
this idea.
3. The intensity of the competitive rivalry – This really does not
apply to us as this is a new idea and a new product that will be
available in the market. It is likely that the competitive rivalry
will began once there are more similar products out in the
market, but current the rivalry does not exist.
9. 4. The bargaining power of the customers – Our customers will
be credit card companies mainly. The will not have much of a
bargaining power since our product is so unique and there isn’t
a competitor in the market that provides them a similar product.
Plus our product will provide added convenience for their
consumers, which will in turn generate more revenue for them.
We admit that with a high volume product like ours, who seeks
to earn revenues based on fees per transactions, stands at risk of
collective bargaining power, we feel that the sheer volume of
our transaction base will absorb any risk involved.
5. The bargaining power of the suppliers – We are not going to
be creating a product, we will be licensing it. Therefore this
will not apply to us.
Based on our research of our competition and our analysis of
the Five Forces Mode, we believe that our product is unique to
the market and will be successful because of the convenience
that it will provide for the end users. We expect the product to
be in high demand once the benefits of the products are
marketed to our customers who are mainly the credit card
companies and consumers who are the end users.
Operational Structure
Our current team and advisors will consist of the following:
· Chief Executive Officer: Athar Adam
· Chief Financial Officer:
· Chief Operating Officer:
· Chief Marketing Officer:
· Chief Technology Officer:
· External Consultants
10. Our current advisors are very well educated in the area in which
they specialize. We will be hiring consultants in order to help
us design the software and help implement it as well. They will
provide us with good knowledge in order for us to make
valuable decisions in order for our company to succeed. Legal
Structure
The 1CARD will be an LLC corporation for several reasons.
One of the main reasons is due to the fact the owners will have
limited liability if in the event a law suit were to take place
against the corporation the owners are protected to some extent.
Technology
The technology we intend to use is entirely software based. In
order for us to accomplish our idea we will be using the
magnetic strips on the cards. The magnetic strips currently hold
the consumers information, we will use the same concept and
our software will be able to add the information from all the
other cards as well. The magnetic strip will contain loyalty
cards, gift cards, and membership information and balances.
Our software will also be able to recognize the store and give
the consumer the option to use the gift card they have stored on
file or use their credit card. Consumers will be able to view
their balances and information online and be able to upload or
delete cards. We intend to create the software and be able to
sell it to the current major credit card companies i.e. Visa,
MasterCard, Discover, American Express, and Diner’s Club.The
consultants that we hire will be a crucial part in the
development and implementation process. The research and
design phase will essentially be their section and verification
through the CTO. We will then produce the software and
market it to all the credit card companies. After distributing the
software we will provide technical support to the companies in
case there are any glitches with the software.
Benefits
11. The customer will receive several benefits from this product. In
today’s society it seems like there is a card for everything. It is
practically impossible to carry all cards at all times. A lot of
people have to pick and choose and most of the times they
forget to use the cards they do not have in their wallet. Since
all the information will be saved on the one card that they will
always have they will always have the opportunity to use their
gift cards and or loyalty cards with out having a huge wallet.
The consumer will also be able to access all of their information
on a secure website. They will be able to track all their
purchases balances and reward points to any applicable card.
They will also be able to upload a document to their computer
in order for accounting purposes.
As a company we will not need any suppliers since we will be
creating the software and selling the software to the major
credit card companies. We believe there is a real “value
innovation” inherent to this card, and it will convenience the
consumer in turn causing the use of the card to increase causing
higher revenue for the credit card company. Currently there is
only 1 product out on the market; however the product appears
to be heavier and larger than the standard credit card. The
competition also provides no benefit to the credit card company.
We are directing all of our focus to the credit card company
because at the end of the day the credit company is buying our
software and causing our company to be successful. The most
important aspect to the credit card company is for them to be
successful because of the licensing we sell them. The only way
the credit card company can make money is when their
consumer uses their card. If the card has an attractive attribute
that makes the consumers life much easier than they will use the
card a lot more than any other card.
Marketing & Sales Strategy
Marketing – Pre-Launch
Market Segmentation
1CARD will be geared specifically towards the five credit card
12. companies: American Express, Discover, Diner’s Club
International, MasterCard, and Visa. Through 1CARD, we are
implanting technology within the magnetic stripe of existing
credit cards that will allow users to add membership, loyalty,
and gift cards onto existing credit cards so that customers are
served with the most convenience available.
Marketing Strategy
Currently, aggregate annual credit card transactions are
estimated at roughly 50B in the United States alone. 1CARD’s
primary objective is to target the five credit card brands:
American Express, Discover, Diner’s Club International,
MasterCard, and Visa. Unlike conventional credit cards,
1CARD is unique in that it allows major credit card companies
to give their customers the option to add membership, loyalty,
and gift cards all onto “1CARD,” so that they only have to carry
“1CARD” with them. We plan on building a multi-tiered
marketing strategy in order to effectively target the creditors
who cater to different demographic segments within the overall
market of credit card users. As part of our business plan,
creditors who sign on to the 1CARD program will pay 1CARD
1/3 of a cent of the fees which they collect from purchases made
by their card users. Our marketing strategy is based on
convenience for the customer so that they can always be rest
assured that they don’t forget a gift card from a year ago or a
credit card since it will be “1CARD.”
Traditional Marketing Strategy
As a company, 1CARD, our traditional strategy will involve
contacting major publications such as, but not limited to, the
“Wall-Street Journal,” “Economist Magazine,” and the “Chicago
Tribune.” By targeting major magazine and newspaper
distributors, we will be able to better reach the consumer base.
We will also use various billboards and plan on using the direct
mail method so we can reach out to a mass amount of consumers
who will see that the “1CARD” is the most convenient card
13. around. The direct mail method is also one of the most
inexpensive ways of marketing. Additionally, we will then
release a statement for a later date where we will hold press
conference listing out more of the facts about our product.
Unique Marketing Strategy
“1CARD, 1
Solution
.” Simply, convenience is one of the top priorities for
consumers to achieve in any purchase they make. By building a
market through mass advertising, we will create a market that
will leave the five major credit card companies no choice but to
satisfy their customers and license the “1CARD.” For a small
fee you can provide your customers with ease and convenience.
Viral Marketing Strategy
The pre-launch viral marketing strategy best for our product
would be to obtain the customers interest in our idea through
our various advertising strategies, to then have those customers
spread the word of the convenience of our product through word
of mouth, which would then in return credit a demand for our
service and entice the credit card companies.
Marketing Post-Launch
Market Segmentation
14. After successfully reaching our goal of obtaining the five major
credit card companies, we believe that retailers, restaurants, gas
stations, and others who offer some form of loyalty points or
rewards to their customers will find the 1CARD a necessity and
be part of our post-launch target market. Whether you are a
retailer offering your own credit card or you are a company that
offers gift cards, you will want to allow your customers the
convenience of accepting these forms of cards and transferring
them over to the 1CARD. Since we already have the major
credit card brands, obtaining the other sectors of the crediting
industry will become simpler as the customer will create a
demand that the creditors will want to meet to keep their
customers satisfied.
Marketing Strategy
Our strategy will be slightly different than our pre-launch
strategy as we plan to market to a broader market. By reaching
out to different retailers, restaurants, gas stations and other
major companies, we will continue to retain our 1/3 of a cent
charge. For example, retail companies would allow their
customers the convenience of not having to worry about losing
gift cards they receive as presents on holidays or special
occasions because customers would be able to transfer this
information onto the 1CARD. Peace of mind is something a
customer wants and needs assurance of and what better way to
15. do so then offering a service that will allow their customers
convenience and the ability to lessen the burden on their wallet.
Furthermore, credit cards are a major form of a tender for a
transaction and through our service, the industry will prosper
and become even more efficient.
Traditional Marketing Strategy
Our traditional strategy is to present our idea in a press
conference with the major credit card companies, retailers,
restaurants, gas stations, and other major companies. Since we
have an idea and want to obtain business from major credit card
companies and various markets, we believe that the best way to
reach out would be to present the facts and why our idea and
product will benefit each company, which is mainly based on
the convenience aspect. Furthermore, we would continue to
advertise through magazines, newspapers, and direct mail. The
release of our webpage would allow customers to track their
transactions and check their balances on their gift cards and
their points they have earned on their loyalty cards.
Unique Marketing Strategy
““Transfer all of your cards into one: Introducing the 1CARD,
the one solution for managing your wallet.” The ability to use
the 1CARD is a convenience rather than a benefit because it
allows creditors to allow their customers the convenience of
16. carrying 1CARD rather than having a completely overflowing
wallet. Furthermore, you can allow your customers to never
worry about losing gift cards or forgetting the balances on their
accounts as it will be available through our webpage.
Viral Marketing Strategy
With the release of our webpage, we will allow customers
access to certain account information. We will have a field box
in which you can forward the webpage address and 1CARD
information to family, friends, and colleagues so that we can
continue to create a larger market for our service. Additionally,
we will allow our customers to add our slogan to the bottom of
their email if they chose. This will benefit customers as it will
allow them to be proud users of our service and show their
support and will also provide a link that will allow others to
join our site and learn about our services. It will be a new and
unique service that everyone will want because convenience is
part of everyone’s goals in whatever they do.
Sales Pre-Launch
Direct Method
Unlike many firms that chose to sell directly to consumers, we
plan to sell directly to the five major credit card companies:
American Express, Discover, Diner’s Club International, Master
Card, and Visa. We believe by implementing the
17. disintermediation process, we will be able to sell directly to
major credit card companies that will allow us to later obtain a
larger market which will consist of retailers, restaurants, gas
stations, and similar markets.
Distribution Channel
In the pre-launch, 1CARD will be distributed to the five major
credit card companies: American Express, Discover, Diner’s
Club International, Master Card, and Visa. Our distribution
channel is very unique as it is only geared to a specific market.
Sales Post-Launch
Direct Method
Our direct method approach will still be directed to businesses.
However, we will additionally contact retailers, restaurants, gas
stations, and similar vendors. Also, we will approach the
consumer market using credit card companies and similar
vendors as the intermediaries.
Distribution Channel
The post-launch distribution channel will differ from the pre-
launch distribution channel as 1CARD will be distributed to a
wider range of vendors who will also act as intermediaries
between consumers. However, we will still have control in
being able to market and advertise so to customers so that the
market is not minimized in any way.
Financial Pro-Forma
18. Unit Cost Build-up and Financial Rule Model
Unit Cost/Price Build-up
Financial Rule Model
Unit Price (per transaction)
$0.0033
100.00%
Unit Cost (per transaction, estimated at 645,000,000
transactions)
$0.00041
12.42%
Gross Profit
$0.00289
87.57%
Budget
($0.00239)
19. 72.42%
Operating expense (per unit)
$0.00141
42.72%
General Admin. expense
$0.000981
29.72%
NPBT
$0.00091
27.57%
Price and Profitability Assumptions:
Pricing Structure:
1CARD has decided to set the price of our licensing fee on a per
transaction basis for every transaction regardless of customer
20. type. The fee will incur to the five major credit card
companies. A flat rate of $0.0033 (1/3 of a cent) was set as the
level of convenience to the credit card companies and to
maximize the profit of 1CARD.
Cost of Service Provided Assumptions:
1CARD is a product currently under development that can be
used to store multiple cards in a one convenient card. We will
be targeting major credit card companies in order for people to
use the convenience card. Start-up costs are the primary costs
associated with delivering this product. Other major costs
associated with this product are prototype cost, engineering,
tech. cost, and consultation cost.
Start-up Capital Requirements
1CARD. Pro-Forma 03/13/08
STARTUP REQUIREMENTS
26. $203,435.56
MULTIPLIED BY 7
TOTAL AMORTIZED PER MONTH
$26,024.20
ProForma2
$11,301.98
DIVIDED BY 18
Start-up Capital Requirements Assumptions:
(1) Legal fees include licensing and incorporation as well as
attorney fees to set up the product.
(2) Fees to develop the necessary mechanics of the product
27. (3) Fee to cover the cost of a physical concept product
(4) Software fees needed to incorporate the product into a
current existing infrastructure.
18-month Profit and Loss Statement
1CARD Pro-Forma 3/13/08
MAR
APR
MAY
JUNE
JULY
AUG
SALES FORECAST
61. 150000
200000
1234567891011121314151617181920
NPBT
ACCUMULATED NET PROFIT/BREAK EVEN
-400000
-200000
0
200000
400000
600000
800000
1000000
12345678910111213141516171819
ACCUM
Figure is stating profit/loss for each month.
NOTE: Month starting January.
Analysis:
Given that our business is making a technological innovation
62. and selling our physical product to credit card companies, we,
in-turn, receive royalty per transaction. Our break-even analysis
assumes that all costs associated with this product are at fixed
level. Our projected revenue and expenses will have us break-
even at or around the 11th month. Approximate revenue at 11th
month will be totaling $165,000 or approximately 50,000,000
credit card transactions. This number breaks downs to about
10,000,000 transactions per credit card Company (assuming five
major credit cards).
NOTE: 50,000,000 transactions for one month represents about
3.63% of all monthly transactions completed in the United
States.
Summary
Sustainability
It is evident from exhaustive research that this product can
survive and grow in the marketplace. Upon industry,
competitor, and market segment analyses, it has become clear
that we have developed a not only viable, but highly profitable
product that will allow us to thrive. Key supporting evidence is
that 1CARD does not focus on a niche market or a narrow
segment, but rather applies to any and every consumer.
Research has shown that there is an apparent trend towards the
use of credit, and the growth of this trend will be highly
correlated with 1CARD’s success.
63. We feel that our product will be demanded by consumers of all
markets and segments, and we stand to become a permanent
fixture in the marketplace. Raised future growth expectations
and aggressive marketing campaigns will fuel this growth.
1CARD has not only the ability to sustain, but also to scale.
Initial costs are significant, but they stand to be absorbed as
time goes on. Our business model allows for increased future
revenues to cost less to deliver than current revenues, and our
profit margins will therefore increase as sales progress over
time. We firmly believe that we have developed a product
where demand will grow progressively and this demand will
continually drive revenues higher.
Profitability
Based on the financials set forth in this analysis, 1CARD will
break even within the first year. Therefore, we stand to turn a
profit within the first year, and the business stands to profit
aggressively after that. Once the startup costs have been
overcome, 1CARD sees significant profits immediately. As this
business stands to see profitability within the first year, we feel
we can stand behind a strong product with realistic goals of
64. future growth.
We have set our initial market expectations as low, with respect
to market share and licensing fees, so we can only go up from
there. Though it is foreseeable that the customer may develop
the ability to dictate price, our volume per customer can only
increase. A long-term transaction goal will be significantly
higher than one percent per credit card corporation.
We have shown that our business model can attain profitability
in a very short time with overly cautious market estimates, and
we can therefore foresee that with a greater share of the market
we stand to be exponentially profitable. Our initial marketing
strategies have laid forth several tactics that can be approached
when seeking future growth. These are realistic targets that will
expand our market share, and we can explore future possibilities
as we grow.
Outlook
We see strong demand and sustainable growth for 1CARD, and
we feel that we have a strong business plan that allows for
future success and optimization. Based on the strength of
initial financial models, we have reason to believe that this
65. business has a strong inclination towards future growth.
We see advertising as a promising future revenue stream, and
based on current market conditions, this stands to remain true.
We are fully prepared for future competition in that we have a
solid product, and have become the market innovator and
initiator. We see our product as surpassing any current
competition, and also warding off future competition due to our
strategic alliances with our major customers. We feel that
1CARD is an ideal product for current and future marketplaces
worldwide and that this company stands to generate significant
revenue.
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