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1
HKRUSH
BUSINESS PLAN
Prepared by:
LI MING LOK/ SIU CHI TIM/ LO CHEONG WA
14/7/2015
2
Table of Contents
Page
1) Executive Summary 3
2) Service 4-6
3) Marketing Strategies 7-10
4) Financial Plan 11-18
5) Marketing and Promotion 19-20
6) Organisation Chart 21
3
Executive Summary
Who We Are?
HKRushis a logisticsstartup fillingthe gapof same-daydeliveryinHongKong.The P2P
platformcreatedsecuresdeliveryefficiencyatareasonable price bycrowdsourcingthe
logisticsnetworkinthe city.
It isfoundedbythree passionate youngsterswhohave workedina renownedlogisticsfirm
aftergraduation. Breakingthe oldrulesof logisticsindustrywouldbe ourvisionbehind. This
model invites all residentsinHongKongtojoinour team.Everyone couldbe couriers and
everyone canearnmoney.
Thismodel also helpstoincrease the competitivenessof online sellersbyimprovingthe
shoppingexperience of customersasgoodscanbe deliveredwithinhours.
What are our Goals?
Our goal is literallyrelatedtoourcompanyname - HKRush.Creatingthe mostefficiency
logistics networkisourfirstgoal forthe people andforthe society. Betterutilizingthe
hiddenresourcesinthe societyandbuildingabetterrelationshipforthe people inthe
“crowd” wouldbe the secondgoal.If we could make these achievements,abettersociety
couldbe built.
Financial Summary
Our revenue-generatingmodel wouldbe mainlybychargingcommissionfromthe freight
rate andcultivatinganewshoppinghabitforthe customersafterourlogisticsnetworkis
mature.
Thisfinancial planwasdevelopedbasedonourexistingcashamountandtrackingtrendsin
revenuesandexpenses.A three yearstrackof saleswithrelatedexpenseshasbeen
estimated.Salesof the firstyearare projectedabout1.5 million,witha netloss of
HKD158,500 since no commission wouldbe chargedaswe want to strengthenourlogistics
network.Majorexpenseswouldbe spentonpromotionandthe set-upcost. The netprofit
ratiowill increase to 4.58% and 8.44% respectivelywhen we startstocooperate with
businessinO2OdeliveryinYeartwo.
4
Service
1. Nature and feature of service
I. Crowdsourced same-day delivery platform
HKRushprovidesasolutionforsimple,affordable,andconvenientsame-daydelivery.This
bridgesthe lastmile gapbetween businesstocustomerorcustomerto customer.
The peerto peerlogistics platformwe built helpsthe societytounleashthe potential logistic
power.We act as a middlemantobridge the informationgapbetweensenderandcourier.
Thishelpstobetterutilise the hiddenlogisticspowerinHongKong. Simplyregisteringasa
courierthroughour applicationandprovidingthe requiredinformation,everyonecouldbe a
courier. Thisis the mainideawe wouldlike tobringout. Sendercanmatch withcourier, vice
versa,throughour platformwithouthassle.
The platformwill be built inthree ecosystems –Android,iOSanddesktopversioninorderto
suitthe needsof differentmarkets.Mobileversionprovidesabasicinterface fornormal
usersto create a delivery.Webversionmainlytargetsbusinesseswhichneedalarge inputof
data and a sophisticatedinterface providingfeedbackandtrackingfroma listof waybills.
2. Businessgoal
I. Searchingnewsource of capital
Thisbusiness model requirescapital supporttofastenthe implantationof demandamong
citizensin the firststage and diversify the service linesinthe secondstage of development.
Huntingforcapital injection fromdifferentseedfunding wouldbe ourprimarygoalsinthe
comingyears.Thiscan put our businessonthe fasttrack to growth.
II.Generatingnewsource of revenues
We wouldlike toinvolve every citizentojoinourplatformandcreate an enormouslogistics
network. Hiddenresourcesinourcitycan be betterutilised.Byspendingayearto
consolidate ourlogisticsnetworks, providingconveniencetopeople ineverydaylife would
be our ultimate goal.
The firstone we wouldlike to revolutionise isthe online shoppingexperience. By
cooperatingwithO2Osellers, expressdeliverywithintwohourstothe userscan be
promisedata reasonable price. Thishelpssellerstosolve the last-mile problemand increase
theircompetitivenesscomparingtothe physical store.
Creatinga “one hour livingcircle”wouldbe oursecondgoal.Deliveryfrom foodtakeawayto
freshproduce wouldbe availablewithinanhourinour secondstage. Justa few clickson
theirsmartphone,theycangetwhatevertheywantwithouthassle.
5
III.Buildingbrand recognition
Innovative,reliable andtrustworthywouldbe the image we would like toimplantonevery
user.Such image isessentialforusto developourservice linesandnegotiate with
businesses.
IV.Findingnewmarketsforourservices
For the traditional expressindustry (businesstobusiness),we wouldliketo be a game
changerand rejuvenate the local deliverymarketandprovide flexibilitytosmall firms.
Higherefficiency andshortertransittime are the thingslackinginthe currentmarket. That is
the reason whywe are here and that iswhat we are tryingto offer.
3. IndustryOutlook
PayPal expects the total onlinesalesvolume inHongKong wouldbe overUSD2.5 billionin
thisyear. We couldforesee there will be a continuous uphill climbforthe demandof local
deliveriesasthe O2O salesvolume keepsraisinginthe pastseveral years.
Deliveryof dailynecessitywouldbe the nextarenaassmartphonesmake shoppingeasier
and sellerscouldmake directcontactswithcustomersjustthroughamobile application. We
couldforesee the marketexpandingat afasterpace inthe near future.
Insufficientmanpower,however,hindersthe growthinlogisticsfield. One of the challenges
inattracting newblood tothe industry isthat the workingconditionisconsideredtoughby
the newgenerations.
4. Service Niche
What we offeronthisplatformis door-to-doorsame daydelivery. The platformhelpsusto
match out the bestdeliveryroute andprovide the easiestwaytogetthe thingsdone.
Same day Delivery:
Platform TransitTime Tracking Areas
covered
Delivery
efficiency&
flexibility
SMS
verification
Specified
delivery
time
Insurance
HKRush
P2P
Platform
Withintwo
hours
GPS, real
time
tracking
All regions
including
outlying
islands
4 Yes Yes Yes
6
Remark: 4 is the highestand1 is the lowest
A comparisonhasbeenmade acrossus and differentcompetitorsfromthe table above.
The most apparent advantage wouldbe the safetymeasureswe have done.Real time
trackingof parcelscouldbe possible ascourier’sphone helpstoidentifyitslocation.
Verification code willbe senttoreceiver’sphonenumber andneedtobe enteredwhenthe
parcel isdelivered. Thisensuresthe parcel isdeliveredwithinthe promisedhourstothe
rightconsignee.
Regardingcost-efficiencyanalysis, the highestefficiency withthe lowestprice isprovided to
our users.Everycourierunderourplatformbasicallycould deliveronlyone tothree parcels
each time andthe commissionthey earnisaboutfourfoldscomparingtothe traditional
couriers. Highcommission guaranteesthe quality. Ourpoint-to-pointdeliveryalsoeliminate
the time wastedindistributioncentre andspeedupthe deliveryprocess.
From the standpointof users,we enable the ultimate customerexperience. Userscan
choose the pick-uptime andthe deliverytime accordingto theirdesires.Thisisnotplausible
for traditional couriers todeliverata particulartime.Thiscangreatlyincrease the successful
rate of first-time deliveryandreduce the burdenof sellerstofollow upunsuccessful
deliveries.
Market Strategies
Traditional
couriers
withinsix
hours
Only
sizeable
couriers
provide
limited
tracking
services
Major
commercial
areas
1 No No Yes
In-house
delivery
team
Dependson
route
planning
No All regions
excluding
outlying
islands
2 No No Yes
Logistics
start-ups
Withintwo
hours
No All regions
excluding
outlying
islands
3 No Yes No
7
Target customer
Our service isa P2P platform providingcrowdsourced same-daydeliveryservice.Itincludes
bothcouriers and customer.
Our targetcouriers are all the citizenswhowanttoearn extraincome bydeliveringthings
for people inthe community.Thatmeansnomatter whatthe occupationof the couriers is,
he/she canstill applytojoinourteam.
Basedon the statisticsgivenbythe government,the numbersof 2.5G and 3G/4G mobile
subscribersinHongKongare 12,323,114. Therefore,the potential numberof couriersin
Hong Kongare overthan 5 millionbasedonthe researchfromthe Japanese mediathateach
personownmore than twomobileswithdatausages.
Our targetcustomersare all the people whoneedtodelivertheirstuff immediatelyoron
the same day. Inthe firstyear,we mainlytargetindividual customers. Afterthat,
cooperationwithbusinessclientsandprovisionof customizedserviceswouldbe ourmain
focus.It iswelcome forrestaurants,officesorindividualstoplace anorder onour platform.
Market positioning
We positionourselvesasa specialistof same-daydelivery. Traditional couriers suchasS.F.
Express,MorningExpressclaimthattheycan provide the same daydomesticservice if the
orderis placedinthe morning. The service,however,isrestrictedto the commercial area
and couldnotpromise todeliver atspecified time. Moreover,the cost isprohibitivelyhigh
for normal usersto requestthe courierstodeliverthe parcelswithintwohours.Thus,the
marketislackinga providerwithflexible orderingtime and placesof delivery atthis
moment.
The service thatwe provide tocustomers isdifferentfromthe vehicles-bookingcompanies
such as Gogovanand Uber.They merely connectregisteredvehicleswithcustomers to
provide point-to-pointtransportationservices. We,incontrast,connectsevenmillions
citizenstoprovide door-to-doordelivery. The logisticsnetworkwouldbe massive underthis
design.Also, ourtargetcouriersare all the citizenswhowantto earnextramoneyby
choosingavailable dealsthatfitthe routesof theirjourneys.Thisprovideshighflexibilityto
the users.
Hong Kongcitizens are busyand deliveryefficiency isof paramountimportance.Ourunique
service couldmeetthe highstandardrequiredatareasonable price. We allow themto‘set
theirown price’andfindsomeone to matchwiththe offer.If urgentdeliveryisrequired,a
higherprice couldbe setto reduce the time formatching.Thispractice wouldbe fairto the
partiesonboth sides.
8
Therefore,we putourmarket positioningonthe place thatthe customerscandirectlyenjoy
the customizedsame-daydeliveryservicebyhavingafew clicksontheirphones.Itisthe
mostconvenientwayforthemtodelivertheirparcel ata reasonable price.
Market competition
Directand indirectcompetitionscanbe facedfromtraditional couriers,in-house delivery
teamsand otherlogisticsstart-ups.
Traditional courierslikeSFExpress,DHL,Yamato andUC Expressare the major market
playersindomesticdelivery.The bestlogisticssolutionofferedisnextdaydeliveryandextra
workingdaysneedtobe addedfor remote areas.The majorhurdlesfortraditional couriers
achievingsame-daydeliveryare insufficientcapacityandprohibitivecost.Currentlogistics
model wouldbe infeasible asminimumfourtofive hoursare spentonassemblingparcelsin
distributioncentres beforethe firstdeliveryattempt.Furthermore,couriersare assignedto
deliveratmulti-pointandthislengthensthe average time neededforasingle delivery.
The largestmarketplayerprovidingdomesticdeliveryservice inHongKongisS.F.Express.It
providesthe same daydeliveryserviceif the customermake anorderbefore 11:00am. But
the deliveryislimited tothe industrial orcommercial areainHongKong.
Theywouldalsoprovide the Two-HoursExpressDeliveryService whichensures thatthe
parcel can be deliveredwithintwohours.Butthisservice isonlyapplicabletothe 5kg or
belowparcel only.The traditional deliverycompanieshave the brand advantage andbetter
customerservice andsupporting.Theyhave aclearstepto show youhow yourparcel is
transportedfromone place to others.However,the transittime cannotbe guaranteed
unlessyoupaymore to arrange a special delivery.
What they can offerisinsurance coveredpoliciesandcontinuoustrackingforparcels.The
sophisticatedin-house builtlogisticssystemandprofessionalimagesgiveconfidenceto
businessesandconsumers.
Normal Delivery:
9
Couriers Price ≤ 1 kg Price ≤ 3 kg TransitTime Additional charge
DHL** HKD24 HKD72 Before 1030 (majorcommercial
area)
Before 945 (otherareascovered),
same day
OthersT+1
New Territories:
HKD25
Remote areainHong
KongIsland:
HKD25
SF Express HKD22 HKD28 Before 1100, same day (B2B)
OthersT+1
Residential AreaT+1-2
Residential Area:
HKD30
UC
Express***
HKD17 HKD37 Before 1300, same day (B2B)
OthersT+1
Residential AreaT+1-2
Residential Area:
HKD30-150
** Onlyprovidespickupservice forDHLaccount’s holders
*** Needsto purchase a bundle of ticketsforuse
ExpressDelivery:
Couriers Price ≤ 1 kg Price ≤ 3 kg TransitTime Available to
residentialarea
DHL - - Unavailable -
SF Express HKD142 HKD148 Withintwohours No
UC
Express***
HKD77 HKD97 Withinfourhours HKD30-150
*** Needstopurchase a bundle of ticketsforuse and make pre-booking
An in-house deliveryteamreferstothe courierhiredbyfirmstodeliverthe productstoend-
users.Thislogisticssolutionprovideshighflexibilitiesforbusinesstosetoutitsdelivery
route and transittime can be easilycontrolled.Pressures,however,will be builtwhen
seasonal demandssurge andoperationalefficiencycanbe easilycompromised.Idle
workforce,vice versa,willeatupthe profitof the company.Thisdeficiencyrestrictsthe
flexibilityof the firmandresultsincostinefficiency.
Otherlogisticsstart-upslikeGogovanand Easyvanwouldbe anotherpartyhaving a
competitionwithus.These start-upsconnectvandriversandusersandwantto make last-
mile deliverieseasierforusers.The service canbe availedtomove furniture tonew
apartmentinanotherarea or to deliverweeklyneedsforastore to maintainstocklevels.
The start-upaims to be a one-size fitsall solution.Customisedlogisticssolutionandvast
base of driverswouldbe itskeyadvantages.
The basic pricingmodel,however,onlyprovidesdeliveryfrompick-uppointstodrop-off
points.Pricingfordoor-to-doordeliveryisunclearandvariesamongdrivers.Moreover,
10
parcelsare notcoveredbyinsurance underthese platformsandtrackingare notavailable
for users.Thiscouldnotgive sufficientconfidencetothe clientsforthe safetyof the parcels.
There iskeencompetitionbetween these companies.Theyprovide differentbenefitstothe
driversandcustomersinorderto increase the marketshare.Itis unstoppable forthemto
spendmore andmore money.Besides,S.F.Expressisgoingtoestablish the new appS.F.Car
to enterintothe market. Furthermarketcompetitionwill be stirredup.
Point-to- PointDelivery:
Couriers Price TransitTime Door-to-door
delivery
Additional charge
Logistics
start-ups
Dependson
the vehicle
typesand
distance
Withintwohours Additional charge:
Needtonegotiate
withthe drivers
Tunnel’sfee
Financial Plan
11
SalesForecast
Pricing ofService
C customers
C customersare the fundamental andthe initial groupof ourcustomerswhocontribute
100% of our salesincome inthe firstyear.We,the platformof the transitionof the goods,
stronglybelieve thatthe price shouldbe fullydeterminedbythe market.Therefore,atthe
beginningof ourbusinessstart-up,we onlyprovidethe suggestedpricesdeterminedbythe
marketprice of those expressdeliveryservicesinHongKongas referencesforthe customers
to setup theirmarketprice.Afterthe collectionof sufficientsalesdata,we will provide the
marketprice of differentgoodsindifferentweightsbyourselvesinorderthatthe market
priceswouldbe more accurate.
SalesForecast Table
Year 1 Year 2 Year3
(HKD$) (HKD$) (HKD$)
Sales
- C Customers 1,458,000 6,804,000 8,165,000
- B Customers - 6,000,000 12,000,000
Total Sales 1,458,000 12,804,000 20,165,000
Cost of goodssold
C CustomersWrittenOff 1,458,000 6,804,000 7,349,000
B CustomersWrittenOff 4,800,000 9,600,000
1,458,000 11,604,000 16,949,000
Gross Profit - 1,200,000 3,216,000
Gross ProfitRatio 0% 9% 16%
12
Income GenerationPlan
FirstSix Months
We will notgenerate anyincome inthe firstsix monthof ourbusinessbecause we are still in
the stage of appsdeveloping.The service hasnotyetlaunchedinthe market.
NextSix Months- NoCommissionCharged
At the firstyearof our business,we intendednottocharge any commissionfromall couriers
inorder to attract more people tojoinusas couriersand promote ourbrand name.We
thinkthat thisnewandinnovative ideainconjunctionwithourefficientmarketingand
promotionplancan catch customers’andgeneral public’seyeswhichleadtoa dramatic
start of ourbusiness.
SecondYear - B customers
Afterourbusinessgetsontrack, the accumulationof sufficientCcustomersandcouriers,we
will diversifyourincome source byexpandingourbusinesstoBcustomers.We majorly
target onretailingande-commencebusinessandwe provide the platformforthose
13
companiestodeliverthe goodstotheircustomersina more efficientway.We will charge a
certainpercentage of theirincome generatedthroughourplatform.Therefore,startingfrom
secondyearof our business,we change ourcustomertargetfromCto B inorderto expand
our businessfurthermore.
ThirdYear - 10% CommissionCharged
Afterourbusinessgetsontrack, the accumulationof sufficientCcustomersandcouriers,
expectinthe firstseasonof the secondyear,we will charge 10% of eachtransactionas
commissionorservice chargedinordertocover our lossesinthe firstyear.However,the
exacttimingandthe percentage chargedcan be changed accordingto the actual situation.
Budget
Budget Table
Year 1 Year 2 Year 3
(HKD$) (HKD$) (HKD$)
Rent 36,000 54,000 96,000
Marketing& Promotion 80,000 240,000 360,000
Salary - 396,000 972,000
Utility 16,000 36,000 48,000
StartingExpense 5,000 - -
Insurance 1,500 3,000 3,000
AppsDevelopmentExpensesWritten Off 12,000 24,000 24,000
FixedAssets - Depreciation 8,000 12,000 12,000
Total Expense 158,500 765,000 1,515,000
14
OperatingCost Incurred
FirstFour Months - AppsDeveloping
In the firstfourmonthsof our business,itis the stage of preparationandappsdevelopment.
We will inviteanotherpartnerwhose majorworkistofocuson applicationdevelopment.
NextSix Months - Preparation of Launching
We will move intothe officetoprepare the launchof the business,forexample,the testing
of the apps,the promotionof our servicesthroughinternet,the testingof ouroperation
flowandso on.Therefore,itincurscostof rental,marketing,utilityetc.
SecondYear – Focusingonbusinessclients
Afterthe shiftingof the focusfromindividualstobusinesses,we have tospendextracostsin
marketingandpromotion.The expansionof ourbusinessbringusextrapressure whichleads
to the hiringof two extracolleaguesandthe additional costof utility.
ThirdYear - GettingOn Track
Afterourbusinessgetsontrack, we needextra3 to 4 colleaguesaswell tomaintainthe
service qualityandsystemstability.Inaddition,the expansionof ourbusiness andthe
increase innumberof colleaguesleadstothe insufficientworking place.Therefore,the
rentingof a biggeroffice causesanextracost as well.More capital shouldalsobe investedin
marketinginorderto attract more B customers.
15
Profit / Loss
Gross Profit - 1,200,000 3,216,000
Gross ProfitRatio - 9% 16%
NetProfit(Loss) (158,500) 435,000 1,701,000
NetProfit(Loss) Ratio (11%) 4.58% 8.44%
Despite the factthat the netlossin the firstyearseemsveryhuge,itcomposeshugelythe
cost of developmentof the appssince the applicationshouldbe ahuge assetforus. More
importantly,thisinvestmentcostwill be furthercoveredbythe profitsintwoyearsafter.
Therefore,itisa worthyinvestmentplan.
16
Means ofCapital
FirstYear / BeginningOf The Business
At the beginningof the business,we have tospendover$100,000 in application
developmentandpurchasingassets.There are twomajorsourcesof our capital. The first
one isour saving.We,three personsgraduatedlessthanayear,lack of sufficientsavingto
start our business.We have some tensof thousands of HongKongdollars whichmay be
sufficienttomake ourown application; butsadly,itisnotenoughtosupportour further
operation.
Therefore,we stronglyrelyonthe secondmeansof capital - Fundingfromoperations.We
will applyforfundingnomatterfromgovernment,private companies,non-profit
organizationsinorderthatwe can obtainsufficientallowances,technical supports,
professionaladvicesandsoonto leadto a strongerstart of our business.
17
SecondYear Or After
In orderto maintaina highcompetitivenessinthe market,we lookforan investorwhois
interestedininvestingandsupportingourbusiness.We lookformore capital because itcan
maintaina highliquiditysituationof ourbusinesstoavoidrisksfrommarketturmoil thatwe
can take a fasterreactionif we have sufficientcapital.Inadditional,the capital andtechnical
supportfrominvestorscanleadto an upgrade of our servicesprovidedtoimprove our
competitiveness.
In case of no allowance andinvestment
In case there are no allowancesorinvestmentsfrompartiesorcompanies,ourmaintargetis
to come throughthe difficultsituation,suchas confrontinganegative cashflow situationin
the firstyear.However,afterfirstyear,afterthe successful cooperationwith business
clients,the financialsituationwill improve progressively.
ProjectedCash FlowStatement
Year 1 Year 2 Year 3
($HKD) ($HKD) ($HKD)
Operation
NetProfit(Loss) ($158,500) $435,000 $1,305,000
DepreciationorAmortization $20,000 $36,000 $36,000
NetCash FlowfromOperations ($138,500) $471,000 $1,341,000
InvestingandFinancing
AssetsPurchased ($40,000) $0 $0
ApplicationDevelopment ($70,000) $0 $0
NetCash FlowfromInvestingand
Financing
($110,000) $0 $0
Cash at the Beginningof Period $90,000 ($158,500) $312,500
18
ProjectedBalance Sheet
As of Period'sEnd Year 1 Year 2 Year 3
($HKD) ($HKD) ($HKD)
CurrentAssets
Cash ($158,500) $312,500 $2,049,500
Non-CurrentAssets $32,000 $20,000 $8,000
Application $58,000 $34,000 $10,000
Total Assets ($68,500) $366,500 $2,067,500
RetainedEarning $90,000 ($68,500) $366,500
NetProfit(Loss) ($158,500) $435,000 $1,701,000
Total LiabilitiesandEquility ($68,500) $366,500 $2,067,500
Marketing andPromotion
Cash at the End of Period ($158,500) $312,500 $1,653,500
19
Channel / locationof providingyour product / service
SimilartootherP2P platform,people canenjoythe service byenteringtheirinformationof
arrival and parcel inthe apps. People will be able todownloadthe freemobile apponApp
Store in IOSand on Google PlayinAndroid.Once theydownloadthe apps,theycanmake an
orderdirectly.Theycanalso take some orderswhichare on theirwayto somewhere toearn
some easymoney.Thatmeansyoucan enjoythe deliveryservice nomatterwhere youare
inHong Kong if youhave a smartphone withourapps.
Scale ofbusiness
The cost is nota huge amountat the beginningof ourbusiness. The customertarget is
limitedtoC2Cso the scale is small at the very beginning.Andwe donothave a profit-
generatingmodel inthe firstyearbecause we focus onenlargingourdeliverynetworkand
hope that there will be totallyover20,000 active couriersafterone year.Searchingfor
medium-sizedbusinessclientwouldbe ourfocus tobuildupour businessmodel inthe
secondyear.We hope thatour businesswillhave over$10,000,000 sales volume andaimto
have the scale as big as Gogovan.The growthof scale of businesswill dependonthe
investmentfromothercompaniesand we are confidenttosaythat ourbusinesswill have a
promisingfuture.
Promotion
We donot have a great amountof capital to supportourpromotion.We mainlyemphasise
online promotionandroadshowswhichminimizeourspending.
i. Facebook
Accordingto the statisticsof the Facebook,HongKonghas 4.4 millionFacebookusers.That
translatestoa penetrationrate of 63 percent,or4.4 millionpeople outof apopulationof
7million.Itisthe mostdirectwayto connectwithmost of the Hong Kongpeople.We would
postdifferentkindsof informationsuchasthe activityof HKRush andalsothe processof our
start-up.We hope to catch the eyesof boththe people needingourservice andteenagers
wholike innovation andourstart-upstory.
ii. Forum-seeding
We wouldpostsomethingaboutHKRushatthe fourm such as HKDiscuss,Uwants,
BabyKindom.We wouldtake advantage of discussionsonforumstodopromotional
20
penetration.Ourobjective istoincrease publicawareness.Mostof the people after using
HKRushwill findmore informationaboutourservice.We cangrasp the opportunity tobuild
up our brandimage and increase the numberof customers.
iii. Road Show
Since we needtoinvolve more citizenstoenlarge ourlogisticnetwork,we needtodothe
road showinsome urban districtsuchas Mong Kok,CausewayBay. We can pass the
message tothe citizensdirectly.We willfocuson the promotionof the applicationtothe
couriersinorderto enlarge ourdeliverynetworkasfastas possible.Andalsowe canteach
themhowto use our apps to take or start an order.
iv. Mediainterview/Report
We hope thatHKRush can getsome interviewsfromthe mediasuchas bloggers,magazines
and radios.Itwill greatlyboostourpopularityand arouse social discussions.Apple Dailyis
our primarychoice because ithasthe largestreadercoverage rate inHong Kongand the
newsonthe nextmediaappsalwaysbecome one of the hottesttopic.We wouldadoptthis
methodif the cost iswithinourbudget.
OrganizationChart
21
HKRush,at the beginningof the business operatedinpartnershipwithequal sharesof each
of the partner,isdividedintofourmajordepartments,eachof whichisledbyone of the
partnerswhoare responsible of separate worksinoperation&finance,marketing&sales,
businessdevelopment andInternetTechnology.However,ingatheringideasandmaking
seriousdecisions,we will discusstogethertogainideasonthe route of the maindirectionof
the company.
William
Operation & Finance
Tim
Marketing & Sales
Stormy
Business Development
Vacant
Internet Technology

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375 business plan

  • 1. 1 HKRUSH BUSINESS PLAN Prepared by: LI MING LOK/ SIU CHI TIM/ LO CHEONG WA 14/7/2015
  • 2. 2 Table of Contents Page 1) Executive Summary 3 2) Service 4-6 3) Marketing Strategies 7-10 4) Financial Plan 11-18 5) Marketing and Promotion 19-20 6) Organisation Chart 21
  • 3. 3 Executive Summary Who We Are? HKRushis a logisticsstartup fillingthe gapof same-daydeliveryinHongKong.The P2P platformcreatedsecuresdeliveryefficiencyatareasonable price bycrowdsourcingthe logisticsnetworkinthe city. It isfoundedbythree passionate youngsterswhohave workedina renownedlogisticsfirm aftergraduation. Breakingthe oldrulesof logisticsindustrywouldbe ourvisionbehind. This model invites all residentsinHongKongtojoinour team.Everyone couldbe couriers and everyone canearnmoney. Thismodel also helpstoincrease the competitivenessof online sellersbyimprovingthe shoppingexperience of customersasgoodscanbe deliveredwithinhours. What are our Goals? Our goal is literallyrelatedtoourcompanyname - HKRush.Creatingthe mostefficiency logistics networkisourfirstgoal forthe people andforthe society. Betterutilizingthe hiddenresourcesinthe societyandbuildingabetterrelationshipforthe people inthe “crowd” wouldbe the secondgoal.If we could make these achievements,abettersociety couldbe built. Financial Summary Our revenue-generatingmodel wouldbe mainlybychargingcommissionfromthe freight rate andcultivatinganewshoppinghabitforthe customersafterourlogisticsnetworkis mature. Thisfinancial planwasdevelopedbasedonourexistingcashamountandtrackingtrendsin revenuesandexpenses.A three yearstrackof saleswithrelatedexpenseshasbeen estimated.Salesof the firstyearare projectedabout1.5 million,witha netloss of HKD158,500 since no commission wouldbe chargedaswe want to strengthenourlogistics network.Majorexpenseswouldbe spentonpromotionandthe set-upcost. The netprofit ratiowill increase to 4.58% and 8.44% respectivelywhen we startstocooperate with businessinO2OdeliveryinYeartwo.
  • 4. 4 Service 1. Nature and feature of service I. Crowdsourced same-day delivery platform HKRushprovidesasolutionforsimple,affordable,andconvenientsame-daydelivery.This bridgesthe lastmile gapbetween businesstocustomerorcustomerto customer. The peerto peerlogistics platformwe built helpsthe societytounleashthe potential logistic power.We act as a middlemantobridge the informationgapbetweensenderandcourier. Thishelpstobetterutilise the hiddenlogisticspowerinHongKong. Simplyregisteringasa courierthroughour applicationandprovidingthe requiredinformation,everyonecouldbe a courier. Thisis the mainideawe wouldlike tobringout. Sendercanmatch withcourier, vice versa,throughour platformwithouthassle. The platformwill be built inthree ecosystems –Android,iOSanddesktopversioninorderto suitthe needsof differentmarkets.Mobileversionprovidesabasicinterface fornormal usersto create a delivery.Webversionmainlytargetsbusinesseswhichneedalarge inputof data and a sophisticatedinterface providingfeedbackandtrackingfroma listof waybills. 2. Businessgoal I. Searchingnewsource of capital Thisbusiness model requirescapital supporttofastenthe implantationof demandamong citizensin the firststage and diversify the service linesinthe secondstage of development. Huntingforcapital injection fromdifferentseedfunding wouldbe ourprimarygoalsinthe comingyears.Thiscan put our businessonthe fasttrack to growth. II.Generatingnewsource of revenues We wouldlike toinvolve every citizentojoinourplatformandcreate an enormouslogistics network. Hiddenresourcesinourcitycan be betterutilised.Byspendingayearto consolidate ourlogisticsnetworks, providingconveniencetopeople ineverydaylife would be our ultimate goal. The firstone we wouldlike to revolutionise isthe online shoppingexperience. By cooperatingwithO2Osellers, expressdeliverywithintwohourstothe userscan be promisedata reasonable price. Thishelpssellerstosolve the last-mile problemand increase theircompetitivenesscomparingtothe physical store. Creatinga “one hour livingcircle”wouldbe oursecondgoal.Deliveryfrom foodtakeawayto freshproduce wouldbe availablewithinanhourinour secondstage. Justa few clickson theirsmartphone,theycangetwhatevertheywantwithouthassle.
  • 5. 5 III.Buildingbrand recognition Innovative,reliable andtrustworthywouldbe the image we would like toimplantonevery user.Such image isessentialforusto developourservice linesandnegotiate with businesses. IV.Findingnewmarketsforourservices For the traditional expressindustry (businesstobusiness),we wouldliketo be a game changerand rejuvenate the local deliverymarketandprovide flexibilitytosmall firms. Higherefficiency andshortertransittime are the thingslackinginthe currentmarket. That is the reason whywe are here and that iswhat we are tryingto offer. 3. IndustryOutlook PayPal expects the total onlinesalesvolume inHongKong wouldbe overUSD2.5 billionin thisyear. We couldforesee there will be a continuous uphill climbforthe demandof local deliveriesasthe O2O salesvolume keepsraisinginthe pastseveral years. Deliveryof dailynecessitywouldbe the nextarenaassmartphonesmake shoppingeasier and sellerscouldmake directcontactswithcustomersjustthroughamobile application. We couldforesee the marketexpandingat afasterpace inthe near future. Insufficientmanpower,however,hindersthe growthinlogisticsfield. One of the challenges inattracting newblood tothe industry isthat the workingconditionisconsideredtoughby the newgenerations. 4. Service Niche What we offeronthisplatformis door-to-doorsame daydelivery. The platformhelpsusto match out the bestdeliveryroute andprovide the easiestwaytogetthe thingsdone. Same day Delivery: Platform TransitTime Tracking Areas covered Delivery efficiency& flexibility SMS verification Specified delivery time Insurance HKRush P2P Platform Withintwo hours GPS, real time tracking All regions including outlying islands 4 Yes Yes Yes
  • 6. 6 Remark: 4 is the highestand1 is the lowest A comparisonhasbeenmade acrossus and differentcompetitorsfromthe table above. The most apparent advantage wouldbe the safetymeasureswe have done.Real time trackingof parcelscouldbe possible ascourier’sphone helpstoidentifyitslocation. Verification code willbe senttoreceiver’sphonenumber andneedtobe enteredwhenthe parcel isdelivered. Thisensuresthe parcel isdeliveredwithinthe promisedhourstothe rightconsignee. Regardingcost-efficiencyanalysis, the highestefficiency withthe lowestprice isprovided to our users.Everycourierunderourplatformbasicallycould deliveronlyone tothree parcels each time andthe commissionthey earnisaboutfourfoldscomparingtothe traditional couriers. Highcommission guaranteesthe quality. Ourpoint-to-pointdeliveryalsoeliminate the time wastedindistributioncentre andspeedupthe deliveryprocess. From the standpointof users,we enable the ultimate customerexperience. Userscan choose the pick-uptime andthe deliverytime accordingto theirdesires.Thisisnotplausible for traditional couriers todeliverata particulartime.Thiscangreatlyincrease the successful rate of first-time deliveryandreduce the burdenof sellerstofollow upunsuccessful deliveries. Market Strategies Traditional couriers withinsix hours Only sizeable couriers provide limited tracking services Major commercial areas 1 No No Yes In-house delivery team Dependson route planning No All regions excluding outlying islands 2 No No Yes Logistics start-ups Withintwo hours No All regions excluding outlying islands 3 No Yes No
  • 7. 7 Target customer Our service isa P2P platform providingcrowdsourced same-daydeliveryservice.Itincludes bothcouriers and customer. Our targetcouriers are all the citizenswhowanttoearn extraincome bydeliveringthings for people inthe community.Thatmeansnomatter whatthe occupationof the couriers is, he/she canstill applytojoinourteam. Basedon the statisticsgivenbythe government,the numbersof 2.5G and 3G/4G mobile subscribersinHongKongare 12,323,114. Therefore,the potential numberof couriersin Hong Kongare overthan 5 millionbasedonthe researchfromthe Japanese mediathateach personownmore than twomobileswithdatausages. Our targetcustomersare all the people whoneedtodelivertheirstuff immediatelyoron the same day. Inthe firstyear,we mainlytargetindividual customers. Afterthat, cooperationwithbusinessclientsandprovisionof customizedserviceswouldbe ourmain focus.It iswelcome forrestaurants,officesorindividualstoplace anorder onour platform. Market positioning We positionourselvesasa specialistof same-daydelivery. Traditional couriers suchasS.F. Express,MorningExpressclaimthattheycan provide the same daydomesticservice if the orderis placedinthe morning. The service,however,isrestrictedto the commercial area and couldnotpromise todeliver atspecified time. Moreover,the cost isprohibitivelyhigh for normal usersto requestthe courierstodeliverthe parcelswithintwohours.Thus,the marketislackinga providerwithflexible orderingtime and placesof delivery atthis moment. The service thatwe provide tocustomers isdifferentfromthe vehicles-bookingcompanies such as Gogovanand Uber.They merely connectregisteredvehicleswithcustomers to provide point-to-pointtransportationservices. We,incontrast,connectsevenmillions citizenstoprovide door-to-doordelivery. The logisticsnetworkwouldbe massive underthis design.Also, ourtargetcouriersare all the citizenswhowantto earnextramoneyby choosingavailable dealsthatfitthe routesof theirjourneys.Thisprovideshighflexibilityto the users. Hong Kongcitizens are busyand deliveryefficiency isof paramountimportance.Ourunique service couldmeetthe highstandardrequiredatareasonable price. We allow themto‘set theirown price’andfindsomeone to matchwiththe offer.If urgentdeliveryisrequired,a higherprice couldbe setto reduce the time formatching.Thispractice wouldbe fairto the partiesonboth sides.
  • 8. 8 Therefore,we putourmarket positioningonthe place thatthe customerscandirectlyenjoy the customizedsame-daydeliveryservicebyhavingafew clicksontheirphones.Itisthe mostconvenientwayforthemtodelivertheirparcel ata reasonable price. Market competition Directand indirectcompetitionscanbe facedfromtraditional couriers,in-house delivery teamsand otherlogisticsstart-ups. Traditional courierslikeSFExpress,DHL,Yamato andUC Expressare the major market playersindomesticdelivery.The bestlogisticssolutionofferedisnextdaydeliveryandextra workingdaysneedtobe addedfor remote areas.The majorhurdlesfortraditional couriers achievingsame-daydeliveryare insufficientcapacityandprohibitivecost.Currentlogistics model wouldbe infeasible asminimumfourtofive hoursare spentonassemblingparcelsin distributioncentres beforethe firstdeliveryattempt.Furthermore,couriersare assignedto deliveratmulti-pointandthislengthensthe average time neededforasingle delivery. The largestmarketplayerprovidingdomesticdeliveryservice inHongKongisS.F.Express.It providesthe same daydeliveryserviceif the customermake anorderbefore 11:00am. But the deliveryislimited tothe industrial orcommercial areainHongKong. Theywouldalsoprovide the Two-HoursExpressDeliveryService whichensures thatthe parcel can be deliveredwithintwohours.Butthisservice isonlyapplicabletothe 5kg or belowparcel only.The traditional deliverycompanieshave the brand advantage andbetter customerservice andsupporting.Theyhave aclearstepto show youhow yourparcel is transportedfromone place to others.However,the transittime cannotbe guaranteed unlessyoupaymore to arrange a special delivery. What they can offerisinsurance coveredpoliciesandcontinuoustrackingforparcels.The sophisticatedin-house builtlogisticssystemandprofessionalimagesgiveconfidenceto businessesandconsumers. Normal Delivery:
  • 9. 9 Couriers Price ≤ 1 kg Price ≤ 3 kg TransitTime Additional charge DHL** HKD24 HKD72 Before 1030 (majorcommercial area) Before 945 (otherareascovered), same day OthersT+1 New Territories: HKD25 Remote areainHong KongIsland: HKD25 SF Express HKD22 HKD28 Before 1100, same day (B2B) OthersT+1 Residential AreaT+1-2 Residential Area: HKD30 UC Express*** HKD17 HKD37 Before 1300, same day (B2B) OthersT+1 Residential AreaT+1-2 Residential Area: HKD30-150 ** Onlyprovidespickupservice forDHLaccount’s holders *** Needsto purchase a bundle of ticketsforuse ExpressDelivery: Couriers Price ≤ 1 kg Price ≤ 3 kg TransitTime Available to residentialarea DHL - - Unavailable - SF Express HKD142 HKD148 Withintwohours No UC Express*** HKD77 HKD97 Withinfourhours HKD30-150 *** Needstopurchase a bundle of ticketsforuse and make pre-booking An in-house deliveryteamreferstothe courierhiredbyfirmstodeliverthe productstoend- users.Thislogisticssolutionprovideshighflexibilitiesforbusinesstosetoutitsdelivery route and transittime can be easilycontrolled.Pressures,however,will be builtwhen seasonal demandssurge andoperationalefficiencycanbe easilycompromised.Idle workforce,vice versa,willeatupthe profitof the company.Thisdeficiencyrestrictsthe flexibilityof the firmandresultsincostinefficiency. Otherlogisticsstart-upslikeGogovanand Easyvanwouldbe anotherpartyhaving a competitionwithus.These start-upsconnectvandriversandusersandwantto make last- mile deliverieseasierforusers.The service canbe availedtomove furniture tonew apartmentinanotherarea or to deliverweeklyneedsforastore to maintainstocklevels. The start-upaims to be a one-size fitsall solution.Customisedlogisticssolutionandvast base of driverswouldbe itskeyadvantages. The basic pricingmodel,however,onlyprovidesdeliveryfrompick-uppointstodrop-off points.Pricingfordoor-to-doordeliveryisunclearandvariesamongdrivers.Moreover,
  • 10. 10 parcelsare notcoveredbyinsurance underthese platformsandtrackingare notavailable for users.Thiscouldnotgive sufficientconfidencetothe clientsforthe safetyof the parcels. There iskeencompetitionbetween these companies.Theyprovide differentbenefitstothe driversandcustomersinorderto increase the marketshare.Itis unstoppable forthemto spendmore andmore money.Besides,S.F.Expressisgoingtoestablish the new appS.F.Car to enterintothe market. Furthermarketcompetitionwill be stirredup. Point-to- PointDelivery: Couriers Price TransitTime Door-to-door delivery Additional charge Logistics start-ups Dependson the vehicle typesand distance Withintwohours Additional charge: Needtonegotiate withthe drivers Tunnel’sfee Financial Plan
  • 11. 11 SalesForecast Pricing ofService C customers C customersare the fundamental andthe initial groupof ourcustomerswhocontribute 100% of our salesincome inthe firstyear.We,the platformof the transitionof the goods, stronglybelieve thatthe price shouldbe fullydeterminedbythe market.Therefore,atthe beginningof ourbusinessstart-up,we onlyprovidethe suggestedpricesdeterminedbythe marketprice of those expressdeliveryservicesinHongKongas referencesforthe customers to setup theirmarketprice.Afterthe collectionof sufficientsalesdata,we will provide the marketprice of differentgoodsindifferentweightsbyourselvesinorderthatthe market priceswouldbe more accurate. SalesForecast Table Year 1 Year 2 Year3 (HKD$) (HKD$) (HKD$) Sales - C Customers 1,458,000 6,804,000 8,165,000 - B Customers - 6,000,000 12,000,000 Total Sales 1,458,000 12,804,000 20,165,000 Cost of goodssold C CustomersWrittenOff 1,458,000 6,804,000 7,349,000 B CustomersWrittenOff 4,800,000 9,600,000 1,458,000 11,604,000 16,949,000 Gross Profit - 1,200,000 3,216,000 Gross ProfitRatio 0% 9% 16%
  • 12. 12 Income GenerationPlan FirstSix Months We will notgenerate anyincome inthe firstsix monthof ourbusinessbecause we are still in the stage of appsdeveloping.The service hasnotyetlaunchedinthe market. NextSix Months- NoCommissionCharged At the firstyearof our business,we intendednottocharge any commissionfromall couriers inorder to attract more people tojoinusas couriersand promote ourbrand name.We thinkthat thisnewandinnovative ideainconjunctionwithourefficientmarketingand promotionplancan catch customers’andgeneral public’seyeswhichleadtoa dramatic start of ourbusiness. SecondYear - B customers Afterourbusinessgetsontrack, the accumulationof sufficientCcustomersandcouriers,we will diversifyourincome source byexpandingourbusinesstoBcustomers.We majorly target onretailingande-commencebusinessandwe provide the platformforthose
  • 13. 13 companiestodeliverthe goodstotheircustomersina more efficientway.We will charge a certainpercentage of theirincome generatedthroughourplatform.Therefore,startingfrom secondyearof our business,we change ourcustomertargetfromCto B inorderto expand our businessfurthermore. ThirdYear - 10% CommissionCharged Afterourbusinessgetsontrack, the accumulationof sufficientCcustomersandcouriers, expectinthe firstseasonof the secondyear,we will charge 10% of eachtransactionas commissionorservice chargedinordertocover our lossesinthe firstyear.However,the exacttimingandthe percentage chargedcan be changed accordingto the actual situation. Budget Budget Table Year 1 Year 2 Year 3 (HKD$) (HKD$) (HKD$) Rent 36,000 54,000 96,000 Marketing& Promotion 80,000 240,000 360,000 Salary - 396,000 972,000 Utility 16,000 36,000 48,000 StartingExpense 5,000 - - Insurance 1,500 3,000 3,000 AppsDevelopmentExpensesWritten Off 12,000 24,000 24,000 FixedAssets - Depreciation 8,000 12,000 12,000 Total Expense 158,500 765,000 1,515,000
  • 14. 14 OperatingCost Incurred FirstFour Months - AppsDeveloping In the firstfourmonthsof our business,itis the stage of preparationandappsdevelopment. We will inviteanotherpartnerwhose majorworkistofocuson applicationdevelopment. NextSix Months - Preparation of Launching We will move intothe officetoprepare the launchof the business,forexample,the testing of the apps,the promotionof our servicesthroughinternet,the testingof ouroperation flowandso on.Therefore,itincurscostof rental,marketing,utilityetc. SecondYear – Focusingonbusinessclients Afterthe shiftingof the focusfromindividualstobusinesses,we have tospendextracostsin marketingandpromotion.The expansionof ourbusinessbringusextrapressure whichleads to the hiringof two extracolleaguesandthe additional costof utility. ThirdYear - GettingOn Track Afterourbusinessgetsontrack, we needextra3 to 4 colleaguesaswell tomaintainthe service qualityandsystemstability.Inaddition,the expansionof ourbusiness andthe increase innumberof colleaguesleadstothe insufficientworking place.Therefore,the rentingof a biggeroffice causesanextracost as well.More capital shouldalsobe investedin marketinginorderto attract more B customers.
  • 15. 15 Profit / Loss Gross Profit - 1,200,000 3,216,000 Gross ProfitRatio - 9% 16% NetProfit(Loss) (158,500) 435,000 1,701,000 NetProfit(Loss) Ratio (11%) 4.58% 8.44% Despite the factthat the netlossin the firstyearseemsveryhuge,itcomposeshugelythe cost of developmentof the appssince the applicationshouldbe ahuge assetforus. More importantly,thisinvestmentcostwill be furthercoveredbythe profitsintwoyearsafter. Therefore,itisa worthyinvestmentplan.
  • 16. 16 Means ofCapital FirstYear / BeginningOf The Business At the beginningof the business,we have tospendover$100,000 in application developmentandpurchasingassets.There are twomajorsourcesof our capital. The first one isour saving.We,three personsgraduatedlessthanayear,lack of sufficientsavingto start our business.We have some tensof thousands of HongKongdollars whichmay be sufficienttomake ourown application; butsadly,itisnotenoughtosupportour further operation. Therefore,we stronglyrelyonthe secondmeansof capital - Fundingfromoperations.We will applyforfundingnomatterfromgovernment,private companies,non-profit organizationsinorderthatwe can obtainsufficientallowances,technical supports, professionaladvicesandsoonto leadto a strongerstart of our business.
  • 17. 17 SecondYear Or After In orderto maintaina highcompetitivenessinthe market,we lookforan investorwhois interestedininvestingandsupportingourbusiness.We lookformore capital because itcan maintaina highliquiditysituationof ourbusinesstoavoidrisksfrommarketturmoil thatwe can take a fasterreactionif we have sufficientcapital.Inadditional,the capital andtechnical supportfrominvestorscanleadto an upgrade of our servicesprovidedtoimprove our competitiveness. In case of no allowance andinvestment In case there are no allowancesorinvestmentsfrompartiesorcompanies,ourmaintargetis to come throughthe difficultsituation,suchas confrontinganegative cashflow situationin the firstyear.However,afterfirstyear,afterthe successful cooperationwith business clients,the financialsituationwill improve progressively. ProjectedCash FlowStatement Year 1 Year 2 Year 3 ($HKD) ($HKD) ($HKD) Operation NetProfit(Loss) ($158,500) $435,000 $1,305,000 DepreciationorAmortization $20,000 $36,000 $36,000 NetCash FlowfromOperations ($138,500) $471,000 $1,341,000 InvestingandFinancing AssetsPurchased ($40,000) $0 $0 ApplicationDevelopment ($70,000) $0 $0 NetCash FlowfromInvestingand Financing ($110,000) $0 $0 Cash at the Beginningof Period $90,000 ($158,500) $312,500
  • 18. 18 ProjectedBalance Sheet As of Period'sEnd Year 1 Year 2 Year 3 ($HKD) ($HKD) ($HKD) CurrentAssets Cash ($158,500) $312,500 $2,049,500 Non-CurrentAssets $32,000 $20,000 $8,000 Application $58,000 $34,000 $10,000 Total Assets ($68,500) $366,500 $2,067,500 RetainedEarning $90,000 ($68,500) $366,500 NetProfit(Loss) ($158,500) $435,000 $1,701,000 Total LiabilitiesandEquility ($68,500) $366,500 $2,067,500 Marketing andPromotion Cash at the End of Period ($158,500) $312,500 $1,653,500
  • 19. 19 Channel / locationof providingyour product / service SimilartootherP2P platform,people canenjoythe service byenteringtheirinformationof arrival and parcel inthe apps. People will be able todownloadthe freemobile apponApp Store in IOSand on Google PlayinAndroid.Once theydownloadthe apps,theycanmake an orderdirectly.Theycanalso take some orderswhichare on theirwayto somewhere toearn some easymoney.Thatmeansyoucan enjoythe deliveryservice nomatterwhere youare inHong Kong if youhave a smartphone withourapps. Scale ofbusiness The cost is nota huge amountat the beginningof ourbusiness. The customertarget is limitedtoC2Cso the scale is small at the very beginning.Andwe donothave a profit- generatingmodel inthe firstyearbecause we focus onenlargingourdeliverynetworkand hope that there will be totallyover20,000 active couriersafterone year.Searchingfor medium-sizedbusinessclientwouldbe ourfocus tobuildupour businessmodel inthe secondyear.We hope thatour businesswillhave over$10,000,000 sales volume andaimto have the scale as big as Gogovan.The growthof scale of businesswill dependonthe investmentfromothercompaniesand we are confidenttosaythat ourbusinesswill have a promisingfuture. Promotion We donot have a great amountof capital to supportourpromotion.We mainlyemphasise online promotionandroadshowswhichminimizeourspending. i. Facebook Accordingto the statisticsof the Facebook,HongKonghas 4.4 millionFacebookusers.That translatestoa penetrationrate of 63 percent,or4.4 millionpeople outof apopulationof 7million.Itisthe mostdirectwayto connectwithmost of the Hong Kongpeople.We would postdifferentkindsof informationsuchasthe activityof HKRush andalsothe processof our start-up.We hope to catch the eyesof boththe people needingourservice andteenagers wholike innovation andourstart-upstory. ii. Forum-seeding We wouldpostsomethingaboutHKRushatthe fourm such as HKDiscuss,Uwants, BabyKindom.We wouldtake advantage of discussionsonforumstodopromotional
  • 20. 20 penetration.Ourobjective istoincrease publicawareness.Mostof the people after using HKRushwill findmore informationaboutourservice.We cangrasp the opportunity tobuild up our brandimage and increase the numberof customers. iii. Road Show Since we needtoinvolve more citizenstoenlarge ourlogisticnetwork,we needtodothe road showinsome urban districtsuchas Mong Kok,CausewayBay. We can pass the message tothe citizensdirectly.We willfocuson the promotionof the applicationtothe couriersinorderto enlarge ourdeliverynetworkasfastas possible.Andalsowe canteach themhowto use our apps to take or start an order. iv. Mediainterview/Report We hope thatHKRush can getsome interviewsfromthe mediasuchas bloggers,magazines and radios.Itwill greatlyboostourpopularityand arouse social discussions.Apple Dailyis our primarychoice because ithasthe largestreadercoverage rate inHong Kongand the newsonthe nextmediaappsalwaysbecome one of the hottesttopic.We wouldadoptthis methodif the cost iswithinourbudget. OrganizationChart
  • 21. 21 HKRush,at the beginningof the business operatedinpartnershipwithequal sharesof each of the partner,isdividedintofourmajordepartments,eachof whichisledbyone of the partnerswhoare responsible of separate worksinoperation&finance,marketing&sales, businessdevelopment andInternetTechnology.However,ingatheringideasandmaking seriousdecisions,we will discusstogethertogainideasonthe route of the maindirectionof the company. William Operation & Finance Tim Marketing & Sales Stormy Business Development Vacant Internet Technology