Survey…………………………………………………...25-26</li></ul>Financial Plan<br /><ul><li>Start- up Cost …………………………………………. ii
Income Statement – One year by month……………...iii
Cash Flow Statement – One year by month…………..iv
Balance Sheet – End of year…………………………..v</li></ul>Appendix<br /><ul><li>Resume of all partners…………………………………33-35
Bibliography…………………………………………….36</li></ul>4087495438785<br />EXECUTIVE SUMMARY<br />-426085440690<br />Business Description<br /><ul><li>26555704730115 Smart Card is an innovative, convenient pre-paid public transportation card for those who use public transportation in their daily life. Because of Smart Card, consumers will not have to carry around loose change in order to buy their ticket to get around. Smart Card wants their customers to experience the new technology; they will be able to travel around many different cities in the Bay Area without having to worry if they have enough money or not. We carry public transportation services with SFMTA (Muni), BART, Cal Train, AC Transit and Sam Trans in addition, this card works within more than nine different cities and counties. We also have a contract with BART and Cal Train parking; by doing so, our customers can pay their parking fee without carrying change with them. Smart Card has collaborate with Walgreens and Starbucks, thus allowing consumers to easily get their coffee and grocery services.</li></ul>Our Mission Statement<br /><ul><li> Designed to make your daily commute easy, convenient and secure, Smart Card can be used in all transit systems in the nine-county Bay Area. The new Smart Card allows you to take transit without worrying about having the exact change, carrying papers passes or tickets. Smart Card, designed to make life easier. </li></ul>-293370332740<br /> <br />Management & Ownership<br />The top three founders will run Smart Card and financial decisions will be made by Daniele Vuong, Jacqualine Li, and Ruchell Sosa. We are in partnership with Bart, Muni, Cal Train, Sam Trans, AC Transit, Walgreen’s, Starbucks, Visa and MasterCard Company. There will be 30 workers hired part time in which they will earn $9.50 per hour. There will be five part time and five full time hired as technicians in which they will earn $15-$18 per hour. Advertising agency, MintSF will help Smart Card get promoted through billboards, magazines, posters and media ads. The website management company, Delta Decision Inc. will manage all the transactions and purchase orders online, and will also update and maintain the Smart Card website. Smart Card will have its own private lawyer, accountant, and banker. <br />Three young women decided to expand a business to better a public service; all three have managerial experience, and graduated with Merchandise Marketing Degree from the Fashion Institute of Design and Merchandising. They are energetic, dedicated, hard working, and have a willingness to learn something new. Daniele Vuong is an Assistant Manager for Neiman Marcus; her experience with a big corporation will incorporate a good characteristic for a start up company like Smart Card. Jacqualine Li is currently a Merchandiser for Macy’s, she is responsible for servicing and selling to retail accounts within an assigned territory to ensure client standards are met and volume is increased. Her experience will benefit Smart Card in terms of providing the best way to promote the product and make it well known. Ruchell Sosa is currently an Assistant Manager for Nordstrom. Her experience as a supervisor for a well-known company will benefit Smart Card because of her ability to train as an achiever and maintain a high level of customer service by ensuring that service standards are high and customer issues are quickly and efficiently resolved. Smart Card will hire team leaders to manage and train the staff in smaller locations in the six major cities/locations: Gilroy, Powell, Downtown Oakland, Millbrae, and Santa Clara.<br />Product of Service<br /><ul><li> Smart Card is pre-paid transportation card that provide an easier way for transportation and grocery every day. Smart Card is made in Black and Gold color with the logo on the top. The card has a built-in sensor computer chip inside to recognize each card like our Visa Card. We sell Smart Card for $3 individually and $20 for customers who add $20 value in the card at the first time, they will get the card for free. We also provide customized card design in our official website for customers to differentiate their card, such as choosing a provided pattern or adding their own photos on the card.
Smart Card carries services with SFMTA (Muni), BART, Cal Trans, AC Transit and Sam Trans with more than nine different cities and counties; customers may also pay for their BART and Cal Train parking. Customers can buy grocery in Walgreens and purchase beverages with Starbucks using our Smart Card. The wonderful thing about these cards is that each one has a built-in sensor chip; this is convenient for the consumer so that they won’t have to show their card every time they pass the gate. They can simply put it in their wallets and purses, and then tag it on our Smart Card machine and go.
For security purpose, we have a Smart Card register program which is free for the customer to register their card online. Each card has a serial number on the back of the card that verifies the owner therefore; the customer can create their profile in our official website. When logged into their account, they can easily check their balance, add values, and sign up for service for auto load values with their credit card when the balance has less than $3. If the customer reports a loss of their card, our system will block the card immediately and replace a new card for them to pick it up in our booth locations and/or mail it directly to their home.
When customers add value to the card, they can add money from our machines which are located in 6 main station booths, 15 other stations with Smart Card built-in Add Value Machines, and in Walgreens. Moreover, Smart Card service is not only for people who travel around with public transportation, but they are to provide grocery service for our customers too. Customers can buy grocery in Walgreens and beverages in Starbucks by simply tagging the card on our Smart Card’s machines.</li></ul>Market Overview / Competition / Market Share<br /><ul><li>Industry Analysis
Nearly every company, business, government and consumer in the world is, to some degree, dependent on the transportation industry. As such, the shipping of supplies, products and consumer goods is essential to the domestic and international economic system. Since 1998, the transportation industry has accounted for 3% of the U.S. GDP each year. The transportation industry can be broken down into three major groups of companies: Shipping, passenger transport, and equipment manufacturers. In some cases, particularly within shipping and passenger transport, companies provide services in multiple areas of the industry. Shipping companies are responsible for the transportation of supplies, and products to businesses, governments and individual consumers and operate on a global basis. The passenger transport segment provides people with the means to get anywhere on the planet, whether it is by air, sea or land. Finally, the manufacturing segment produces the trucks, planes, ships and railcars along with all the technology that allow transportation to exist in its current form. These manufacturers are just as essential to the transportation of materials and people as are the companies that transport them.
The San Francisco Bay Area is a metropolitan region that surrounds the San Francisco and San Pablo estuaries in Northern California. The region encompasses large cities such as San Francisco, Oakland, and San Jose, along with smaller urban and rural areas. Overall, the Bay Area consists of nine counties, 101 cities, and 7,000 square miles. The nine counties are Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma The Bay Area when defined as a Combined Statistical Area, is the sixth largest in the country, with approximately 7.4 million people. It encompasses the metropolitan areas of San Francisco (12th largest in the country) and San Jose (31st largest in the country), as well as four other smaller, surrounding metropolitan areas. The Bay Area hosts many cities, towns, military bases, airports, and associated regional, state, and national parks, connected by a massive network of roads, highways, railroads, bridges, tunnels and commuter rail. The combined urban area of San Francisco and San Jose is the 46th largest urban area in the world. San Francisco is the cultural and financial center of the Bay Area, and has the second highest population density of any major city in North America after New York City. San Jose is the largest city in terms of population, land area, and industrial development. Oakland is a major manufacturing and distribution center, rail terminus/hub, and has the fourth largest container shipping port in the United States. The Bay Area is renowned for its natural beauty, liberal politics, affluence, diversity, and new age reputation. The nine-county Bay Area region grew at a slightly faster rate of 1.4 percent, adding 100,443 residents for a total of more than 7.3 million people. San Francisco's population of 824,525 is the city's biggest ever, the state figures show. San Jose, which grew by 1.8 percent last year, now numbers just a shade under 1 million people - 989,496. The city of Dublin's 7.7 percent growth was the highest in the Bay Area in 2007. Only three cities in the region saw their populations shrink: St. Helena (down 0.3 percent), Yountville (0.3 percent) and Sebastopol (0.2 percent). California's overall growth means 1 in 8 Americans now lives in the state.
TransLink is a new transit fare payment system being implemented in the San Francisco Bay Area. It utilizes a reloadable card with a dual interface, making it capable of both contact and contactless transactions. TransLink was introduced as a pilot program in 2002 by the Metropolitan Transportation Commission (MTC) to reduce the number of fare systems and help integrate transit systems in the Bay Area. TransLink is being rolled out in phases; currently five transit agencies, AC Transit, BART, Cal rain, Golden Gate Transit, and Muni accept the card on all routes except for Muni's San Francisco cable cars. TransLink is fully functional for five transit agencies:
AC Transit (including its subsidiary, Dumbarton Express) - Starting October 1, 2009, passengers will no longer be able to use paper 10-Ride and 31-Day Transbay tickets for rides across the Bay. Passengers can only obtain an AC Transit Transbay pass via TransLink, or they may pay their fares in cash. Transbay magnetic-stripe tickets will no long be accepted throughout the AC Transit service area, including lines operating over the Dumbarton and San Mateo Bridge.
Golden Gate Bridge, Highway and Transportation District's public transportation services: Golden Gate Transit & Golden Gate Ferry.
Muni (SFMTA - San Francisco Municipal Transportation Agency) - TransLink is accepted for payment throughout the Muni system except for cable cars. Customers can load both e-cash and a monthly Fast Pass onto their TransLink card. A TransLink card with a Fast Pass loaded is also good for free trips on BART within San Francisco.
BART - BART has begun a rollout of TransLink to its customers, which started on August 3, 2009 and will last for approximately five months. All TransLink cardholders are now able to use their cards on BART.
Cal Train – Cal Train has also begun use of TransLink as of August 17, 2009 with a select group of customers. While the commuter rail agency encourages people to register to participate in surveys, TransLink welcomes all cardholders to use the rail system.
The TransLink system's expansion will continue in 2010 to include the VTA network, part of which participated in the pilot program, and the SamTrans bus network, which did not participate in the pilot program at all. Finally, WHEELS, Tri-Delta Transit, WestCAT, County Connection and other smaller transit agencies which did not participate in the pilot program are expected to install TransLink on their bus and ferry lines in 2011 or later.
Important transit agencies that will not install TransLink capability include Amtrak and the Altamont Commuter Express (ACE), both of which provide rail links between Fremont and San Jose. Some VTA bus lines serving this corridor, however, have been TransLink-equipped since the start of the pilot program.
Approximately 182,000 cards have been distributed throughout the region as of August 2009. The average number of weekday transactions in that month was 31,850. AC Transit riders accounted for about 44% of the riders using TransLink, Golden Gate Transit and Ferry accounted for 31%, Muni riders 21%, and BART and Cal Train together under 4% (both systems began accepting TransLink in August 2009).
Each transit agency has conducted surveys of its customers to determine customer satisfaction. Below are some highlights of the findings:
AC Transit: 89.9% of customers surveyed would recommend TransLink to a friend. (May 2008)
Golden Gate Transit: 85.5% of customers surveyed are satisfied or very satisfied. (October 2008)
Muni: 82.9% of customers surveyed are satisfied or very satisfied, and 92.1% would recommend TransLink to a friend. (Summer 2009)</li></ul>Customer Profile<br /><ul><li>Male/Female Age: 18-45Location: SF, Bay Area Income: $25,000Education: High school degreeAttend cultural/arts eventsOwns an Apple/Mac PCOwns an iPodOwns a smart cellularRunning/jogging as a hobby
Upper-Mid, Middle Age w/o Kids - Executive Suites consists of upper-middle-class singles and couples typically living just beyond the nation's beltways. Filled with significant numbers of Asian Americans and college graduates--both groups are represented at more than twice the national average--this segment is a haven for white-collar professionals drawn to comfortable homes and apartments within a manageable commute to downtown jobs, restaurants, and entertainment.
Upscale, Older Family Mix - The residents of Money & Brains seem to have it all: high incomes, advanced degrees, and sophisticated tastes to match their credentials. Many of these city dwellers are married couples with few children who live in fashionable homes on small, manicured lots.
Midscale, Younger w/o Kids - Once known as the home of the nation's yuppies, Young Influentials reflects the fading glow of acquisitive yuppiedom. Today, the segment is a common address for younger, middle-class singles and couples who are more preoccupied with balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health clubs, and casual-dining restaurants.
Wealthy, Middle Age w/ Kids - Among the wealthy suburban lifestyles, Winner's Circle is the youngest, a collection of mostly 35 to 54 year-old couples with large families in new-money subdivisions. Surrounding their homes are the signs of upscale living: recreational parks, golf courses and upscale malls. With a median income over $100,000, Winner's Circle residents are big spenders who like to travel, ski, go out to eat, shop at clothing boutiques, and take in a show.
Downscale, Middle Age Family Mix - Suburban Pioneers represents one of the nation's eclectic lifestyles, a mix of young singles, recent divorcees, and single parents who have moved into older, inner-ring suburbs. They live in aging homes and garden-style apartment buildings, where the jobs are blue collar and the money is tight. However, what unite these residents--a diverse mix of whites, Asians, Hispanics, and African-Americans--are a working-class sensibility and an appreciation for their off-the-beaten-track neighborhoods.</li></ul>Financial Summary / Sales Forecast<br />The total start-up requirement is $471,931; this will cover the initial expenses (office supplies, rent, lawyer, banking, telephone, internet, insurance cost, etc.) which totaled to $362,485. The monthly money reserves consist of salary, rent, utilities, banking, etc. which totaled to $96,496; lastly, the Smart Card inventory totaling to $12,500. When added, it is a total of $471,931; all of these numbers is what the company needs in order to progress. Each of the three founders, Ruchell Sosa, Jacqualine Li, and Daniele Vuong will all put in $50,000 from their savings. The rest of the money needed will come from a bank lender, which they will borrow $25,000, in return they will be able to invest in Smart Card. Payment to the bank will be $3500 with 5.25% interest per month. <br />The first two months of our business will not be making profit, January and February will spend more money on expenses than total income because the company is just starting off. As soon as March begins, we will slowly make more profit, almost doubling each month. Our cash flow shows the money received from the business, coming from all the stations, Walgreens and Starbucks included. While the cash out are all the utilities, rent, and salaries for workers. The cash flow reveals that the company is making 50% profits and that the net worth after all assets and liabilities will come out to $310,281; showing that Smart Card is and will be a success. <br />Objectives & Strategy<br /><ul><li>Product Strategy
Smart Card is designed to make transportation convenient for people who often use multiple methods to get around the Bay Area. By having a card that can be used in multiple transportation outlets, consumers do not have to worry about carrying other cards or change around. Smart Card also allows consumers to customize their cards with images of their choice (done for free) on our website. This will let the consumer feel as if they can interact with our company and have decisions made on their own. Customers will choose Smart Card because it gives them variety in many areas and convenience is an important aspect in a person’s life when they are busy and always on the run.
Smart Card will be sold in all Walgreens location found in the Bay Area, on our online site, 15 stations, and 6 booths. Booths will be set up at participating locations: Powell, Millbrae, Santa Clara, Downtown Oakland and Gilroy. These locations are specifically tailored to meet the needs of our consumers as they are strategically placed in all areas of the Bay Area. Consumer will have a variety of places they can buy the Smart Card in case they are not in close proximity to another location.
Our pricing will be to either buy at Walgreens $3 per card (with zero amount) or $20 per card (with $20 to spend). Either of these cards can be constantly refilled with money by doing so at the booths or online. The better deal is the $20 card and ultimately that is our strategy at getting more consumers to buy those cards. The $3 cards are for those who are trying to test out Smart Card and putting in $10 just for a trial. The maximum anyone can put into a car will be $300 and these Smart Cards will never expire.
Most of our sales will done through Walgreens stores and booths located in certain places of the Bay Area, and online through our website. We will have part time workers that will be available at the stations to help customers if they have any questions on how to buy a ticket at the booth. As said before, because most of our sales do not need workers unless someone has an issue/question on how to purchase a card through a machine. Therefore, we do not need to hire a full staff that is part time (only technicians – in the case of technical difficulties). In order to support the sales effort, management will check up on how sales are doing and think of promotions to draw in more consumers.
We are using our workers as the main way to add value for customers for they will be available to help when/if consumers have questions on how to operate the machine. Machines will be clearly labeled for assistance and will be easier for the customers to understand. Smart Cards will be manufactured in China and be shipped overseas two times a week in order to supply enough cards to consumers. The quality of the cards is considered low quality because it is made of plastic; as long as it functions through the machines, then that is all that matters. Much stress will be emphasized on giving assistance to those who need help or assistance with the new machines. We want the customers to feel comfortable asking us for help if they do not understand how to work the machines.
In order to get the business running, signing of many contracts with various companies need to take place. In order for each company to get profit from this, an agreement needs to be signed in order for Smart Card to work with Bart/Muni/Cal Train/Sam Trans/AC Transit. To make this concept work and come together, the amount of money available is crucial therefore, we need to have loans in order before having the ability to get the business going. Risks involved are whether there will be enough money loaned to the company and whether profits will be gained in the end. The strongest competitor for Smart Card is TransLink; in order for the company to grow, it must always be aware of its competitor’s actions and be ready to upgrade and improve business. There must always be a new and fresh idea out there that will draw customers toward Smart Card’s direction. </li></ul>Advertising & Promotion<br /><ul><li>Advertisements will be put on billboard throughout downtown San Francisco, in all the BART/MUNI locations, buses and bus stops. We are relying heavily on word of mouth as we will give out cards to 50 lucky winners (for them to use the card) and they will give their opinions to the public in order to get this card rolling out smoothly. Smart Card will also be featured in the newspapers such as the San Francisco Chronicle and San Jose Mercury News as well as a Facebook page dedicated to informing the public upcoming promotions we will have. Signs will also be included in Walgreens stores to bring out more awareness to our customers. Senior discounts will be given to those who are 65 and over; they will receive a 20% discount to any amount they load into the card.
Current & Future Outlook</li></ul>Smart Card wants to expand the business approximately in the next three years depending on how the business is going. We will expand the business to more grocery stores such as Safeway, CVS, and Rite Aid because they are the most popular convenience store that people go to buy quick items. We put forth into contracting with more cafés and shopping mall food courts; by doing so, our customers can purchase food and drinks with our Smart Card and will not need to carry their money with them. Furthermore, we want to collaborate with the State Highway Transportation Agency. This will allow consumers to use Smart Card to pay for the toll fee at seven main bridges we have in Bay Area (Golden Gate Bridge, Bay Bridge, San Mateo Bridge, Vallejo Bridge, etc). By doing so, our customers can have the card to pay for tolls without worrying about not having enough cash on hand. To benefit the agency, they can reduce the number of workers they have for each bridge, and as a result, lower their expenses. In addition, we would like to do business with the Yellow Cab Taxi Company in Bay Area. Plans in doing business outside of the Bay Area, we want to introduce our system and service to Los Angeles and also New York because those two places have a large amount of people taking public transportation every day. We would like to make their travel easier and experience our service.<br />Survey (25 People)<br /> <br />Financial Plan<br />-420370572135<br />Start- Up Cost<br />Initial ExpensesLegal(Lawyer, Accountant, Banker)$7,500Office Supplies$1,000Office Equipment$3,000Brochures/Design/Letterhead, Business Card$1,000Web Site Development$1,500Utility Deposits and Installation$15,000Rent Deposits$12,000Licenses$4,585Telephone & Internet (Comcast)$500Banking Set-Up fees$100Computer (12 Dell Computer Desktop)$5,000Software(Smart Card Operation Program)$3,500Insurance$5,000Construction Costs$15,000Other15 Smart Machine (Wall Built-In)$67,500100 Smart Tag Machine (Store)$40,000400 Smart Tag machine (Bus & Station)$180,000Visa Card Company$300Total Initial Expenses$362,485Monthly Money ReservesSalary of Manager (2)$5,000Part Time Workers (5 Part Time + 30 Seasonal)$54,720Full Time Workers (11)$20,826Rent$12,000Advertising/Promotion$250Utilities$200Operation Supplies$500Telephone/ Internet$250Insurance$2,500Maintenance and Repairs$500Banking Charges/ Visa Card Company$200Total Monthly Expenses$96,946Start-Up InventorySignage$1,500Fixtures$1,000Equipments$5,000Other10000 Smart Card$5,000Total Start-Up Cost$12,500Total Start-Up Requirements$471,931<br />Balance SheetAssetLiabilitiesCurrent AssetsCurrent LiabilitesCash $ 88,281 Accounts Payable $ 10,000 Accounts Receivable $ - Accured Expenses $ 35,000 Inventory $ 4,500 Total Current Liabilities $ 45,000 Total Current Assets $ 92,781 Long-Term LiabilitiesFixed AssetsCommerical Bank Loan $ 25,000 15 Smart Machine (Wall Built-In) $ 67,500 100 Smart Tag Machine (Store) $ 40,000 Total Liabilities $ 25,000 400 Smart Tag machine (Bus & Station) $ 180,000 Total Fixed Assets $ 287,500 Total Liabilities and Equity $ 70,000 Total Assets $ 380,281 Net Worth $ 310,281 <br />Appendix<br />-4191007125970<br />Ruchell Sosa<br />15310 Ultio St.<br />San Leandro, CA. 94578<br />(510) 512-4746<br />Objective: To obtain a meaningful and challenging position that enables me to learn the management field and allows for advancement.<br />Related Skills<br /><ul><li>Providing Customer Service
Motivated team player with dedicated talent for deploying research and organizational skills toward analyzing and upgrading
Enthusiastic self- starter who can boost productivity, cut cost, foster efficiency, and ensure profitability
Goal-driven achiever with strong organization skills, detail orientation.
Education</li></ul>Fashion Institute of Design and Merchandising Fall 2007-Present<br />San Francisco, California<br />Graduation Date: December 2009Major: Merchandise Marketing<br />Experience<br />Manager Nordstrom<br />June 2007-Present San Francisco, CA<br /> <br /><ul><li>Over three years of management experience
Excellent Customer Service</li></ul>Assistant Manager Coach<br /> Feb 2006- June 2007 Emeryville, CA<br /><ul><li>Excellent Customer Service
Skilled in problem solutions and customer relations
Adept at training, motivating and managing personnel </li></ul>Daniele Vuong<br />1582 Steven Creeks Blvd<br />San Jose, CA 95128<br />(408) 852-8758<br />Objective: Marketing position that utilizes my writing skills and enables me to make a positive contribution to the organization.<br />Related Skills<br /><ul><li>Motivated team player with dedicated talent for deploying research and organizational skills toward analyzing and upgrading
Analyze regular corporate retail sales reports and tailor each local marketing profit-plan with retail leadership.
Managed payroll, scheduling, reports, email, inventory, and maintained clientele book and records</li></ul>Education<br />Fashion Institute of Design and Merchandising Summer 2008-Present <br />San Francisco, California<br />Graduation Date: December 2009Major: Merchandise Marketing<br />Experience <br />Assistant Manager Neiman Marcus <br />July 2007 – Present Santa Clara, CA<br /><ul><li>Merchandised designer women's wear
Set-up trunk shows and attended clinics for new incoming fashion lines
Worked with tailors and seamstresses for fittings
Scheduled private shopping appointments with high-end customers</li></ul>Jacqualine Li<br />156 Powell St.<br />San Francisco, Ca 94132<br />(415) 852-2452<br />Objective: Sales management where my experience can be effectively utilized to increase product sales volume by developing a dynamic team.<br />Education<br />Fashion Institute of Design and Merchandising Spring 2008-Present <br />San Francisco, California<br />Graduation Date: December 2009Major: Merchandise Marketing<br />Experience <br />Merchandiser Macy’s<br />January 2007 – Present San Francisco, CA<br /><ul><li>Increased sales volume by 150% in less than three years
Designed more attractive merchandise presentation strategies and special marketing campaigns; resulting in increased store traffic and profits