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Car Park Finder
- 1. CAR PARKING FINDER SOLUTION BUSINESSPLAN GROUP MEMBERS • Geoffrey Nzomo • Myat Thada Kyaw • Robin Pik Kipkoech • Pham Thi Thu Thao • Win Thuzar Than
- 2. Table of contents 2 1)Executive Summary 2) Company Summary & Organizational Structure 3) Product 4) Market and Strategy Analysis 5) Financial plan
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- 4. Executive Summary ◉ CarParking Finder Solution is an application to support travellers or car owners to find the nearest car parking space within short time in responsive way. ◉ It focuses on the providing private parking spaces 4
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- 6. Executive Summary: Objectives GrossProfit Margin: 70% Net Income After Tax : Above 10 percent of Sales Increase Number of Parking Lots: 3 to 4 Times Gain Break-Even after One Year Number of users projected to register in the first Quota: 500 6
- 7. Executive Summary: Mission ServiceMission (for Convenience) Provide a useful application tool to car owners that help them locate the nearest parking place at affordable price within shortest time. Partner Mission (to Generate Profit) Cooperate with parking owners based on honesty and trust Economic Mission (to Gain Break-Even) Operate and grow at a profitable rate (gain break-even and generate profit) 7
- 8. Executive Summary: Keysto Success 1) User Friendly 2) Easy to Search 3) Payment Solution 8
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- 10. Company summary ◉ GeneralPartnership ◉ Five Partners Built on trust and respect Taking active roles in the operations of the business (1 MD and 4 Chief officers) ◉ Financing – equally invested by partners and the other is borrowed from bank ◉ Location First Office : near Tokyo, probably in Chiba area Lease an apartment for office with fully furnished 10
- 11. Start up summary ◉Expense s Table : Start-Up Expenses and Assets Start-Up Requirements Start-Up Expenses : (yen) Legal 300,000 Apartment Lease (6 months) 768,000 Office Supplies 60,000 Electricity Fee, Phone Bills 180,000 Software application development fee(once) 1,500,000 Cloud computing fee 250,000 Website Hosting Fee 120,000 Advertising 200,000 Other Operating Expenses 75,000 Total Start-Up Expenses 3,453,000 11
- 12. ◉ Assets Start-Up Assets: Cash Required 560,000 Other Current Assets 150,000 Long-term Assets (Computers) 2,300,000 Total Assets 3,010,000 Total Requirement 6,463,000 12
- 13. ◉ Funding Table :Start-Up Funding Start-Up Funding (yen) Start-Up Expenses to Fund 3,453,000 Start-Up Assets to Fund 3,010,000 Total Funding Required 6,463,000 Assets Cash Requirement from Start-Up 560,000 Non-Cash Assets from Start-Up (Long-term+Other Current Assets) 2,450,000 Total Assets 3,010,000 13
- 14. ◉ Funding Liabilities andCapital Liabilities Current Borrowing 163,000 Long-term Liabilities 2,300,000 Total Liabilities 2,463,000 Capital Partners' Investment 4,000,000 (Start-Up Expenses) (3,453,000 ) Total Capital 547,000 Total Liabilities and Capital 3,010,000 Total Funding 6,463,000 14
- 15. Management & Organizational Structure ◉ Total Employees ◉First Year (19) ◉ Second Year (28) ◉ Third Year (37) MD Chief Operation Officer Operation (3) Project Manager (1) Developer (1) DB Admin (1) Chief Marketing Officer Marketing (6) Manager (1) Executive (5) Chief Administration Officer Administration (2) Manager (1) Staff (1) Chief Finance Officer Finance (3) Manager (1) Accountant (2) 15
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- 17. The Product Introduction Carpark mobile application will help users to find a free parking spot in the middle of Tokyo conveniently via their mobile phones. Users will easily locate nearest parking, compare prices and reserve a parking spot This great idea will not only be useful car users but to private car park owners as well. It provides private park owners easy and convenient way to commercialize the parking. Park owners will easily find customers to their parking, manage reservations and payments from the parking finder solution 17
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- 19. The Product Description CarPark Finder solution will allow users to search for free parking spots close to their current locations. Users will be able reserve for a parking spot. However reservations made will only be valid for 15 minutes, upon which the user will be expected to make a payment. This approach allows user to drive to the parking and only pay if they feel they like the parking spot. Park owners will be required to update on the solution when their parking becomes free and available for another user to park. 19
- 20. The Product technology ParkFinder Real time Updater Engine • Reservations update • Availability update • Managing alerts • Payment integration Car User Front End Module • Visual map- shows available parking spots available in your current location • Booking and payment functions • Historical e receipts on payments Park Owner Module • This segment of the application will set up all parking spots that are usable in the solutions. • Park owners registration • Parking facility set up 20
- 21. The product technology ParkOwner Module Park Finder Real-time Updater Engine Car User Front End Module This segment of the application will set up all parking spots that are usable in the solutions. ◉ Park owners registration ◉ Parking facility set up ◉ Reservations update ◉ Availability update ◉ Managing alerts ◉ Payment integration ◉ Visual map- shows available parking spots available in your current location ◉ Booking and payment functions ◉ Historical e receipts on payments 21
- 22. Market Analysis & StrategySummary 22
- 23. Market Analysis Market segmentation strategywas based on the behavior pattern of our targeted prospective customers (i.e. rate of car usage, loyalty status, readiness to use private parking etc.). Market Research ◉ For budgetary reasons, we decided to perform a primary market research through an online survey ◉ Survey Monkey – A qualitative online survey tool. ◉ 2 types of surveys - car owners’ & private car park owners. 23
- 24. Survey Results: CarOwners 24
- 25. Survey results: CarOwners’ 25
- 26. Survey results: Privatecar park owners 26
- 27. SWOT Analysis Strengths Strong DeveloperTeam: the developers of the mobile app are key developers of the R&D department with very strong skills. First to Market: We have and must always keep a step ahead. A first mover may not always be an advantage. Secondary or late movers to an industry or market, have the ability to study the first movers and their techniques and strategies. They can learn from their mistakes. The competition is also allowed to benefit and not incur the costs, which the first mover has to sustain. Solid Technology: It is an open and very configurable technology. 27
- 28. SWOT Analysis Weaknesses No strongmarketing capacity: we are a technology firm, not marketing one. We need to accumulate some marketing knowledge. Monetization model: we are unsure about the business model to use in order to make profit and to grow. The monetizing model is not fixed; we are free to experiment with it and it will have to be fine-tuned after some time. 28
- 29. SWOT Analysis Opportunities Offering aunique service that uses or utilizes dispatch software to send the nearest parking to a driver’s location that is in search of a convenient parking. Threats Competitors Emerge: as we are first to the market, we need to be sure to stay one step ahead of the competition. Evolution of Apps: as mobile technology is evolving very quickly, it is hard to predict how mobile apps will evolve in the future 29
- 30. Nokisaki Inc (DirectCompetitor) ◉ Eaves Parking Solution can be accessed both website and mobile. ◉ In 2014: Nearly 1,000 parking spaces registered mainly in Tokyo and Osaka. Member list : About 9,000. Make Free Membership. Register parking lot before they are going out Pay with credit card after register Get Booking Information Input their car number information Get the ticket issue Competitors 30
- 31. ParkMe (Significant Competitor) ◉A Web and Mobile Worldwide application ◉ Store Data over 84,000 locations in over 64 countries including Japan ◉ Provide car parking full information with Google map and show the status of availability. ◉ Customer can ◉ Search the nearest location with compare price ◉ Reserve parking location. 31
- 32. Indirect Competitors No NameAddress 1) Sanrio Co. (hello kitty parking lot) (http://en.puroland.jp ) 2) Park24 Co., Ltd. (http://www.park24.co.jp) 3) TokyoToMo (http://www.tokyotomo.com) 4) Other parking offer from Hotel, Apartment, Shopping Malls, etc., 32
- 33. Marketing strategy ◉ Target- Tokyo population ◉ For our car park finder mobile application, we are going to use mass marketing as our main strategy ◉ Our mass marketing channels - mainly the Internet ◉ Furthermore, we are going divide our marketing strategy to a pre-launch and post-launch Pre-launch - to create awareness and visibility Post-launch - to maintain existing customers, increase the conversion rate and create user retention. 33
- 34. Marketing strategy (Cont) MassMarketing - we will try to reach our niche using internet, and will include; ◉ Getting our app into the iPhone app store & Google Play ◉ Using social media ◉ Making an app-specific web site ◉ Participating in events – such as meet ups, exhibitions and conferences ◉ Advertisement 34
- 35. Marketing Strategy (Cont) Pre-launchstrategy ◉ Landing page – typically a one page website that is an advertising tool for our app ◉ Blog – to regularly write about issues that our product covers ◉ Social Media Profiles - use profiles to spread word on blog posts, landing page & website. ◉ Search Engine Optimization ◉ Tech Blogs – such as TechCrunch ◉ Forums - participating in online forums to keep discussion about our product active and on-going 35
- 36. Marketing Strategy (Cont) Post-launchstrategy ◉ App Store marketing: having a catchy app icon to grab attention on online audience ◉ App Review Websites: setting up app review sites ◉ Tech Blog re-communication ◉ Ratings and Reviews: encourage our customers to review & rate our application 36
- 37. Pricing Strategy Factor thatshould help us determine what charge for our service. ◉ pricing of our service in relation to the existing competitors ◉ Willingness of customer to pay for the service From the survey we were able to establish that car owners were willing to pay ¥100 per 15 minutes in order to park at the private parking. 37
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- 39. Sales strategy ◉ Thecar park finder system will be a service that allows you to request private parking through applications for iPhone and Android devices. ◉ Freemium business model. We decided to choose the free option because it is a good motivator to get people to download the mobile application. ◉ The application will be free, but the objective will remain; to make money. This model will generate income only from charging 10% from the parking fee. ◉ The service provides a cashless solution that charges your parking directly to the credit card on file with your account. 39
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- 41. 41 ◉ Estimate lossfor the first year operation is about -3,865,200 yen, ◉ From the second year our company starts gaining profit. ◉ From the third year the profit will increase significantly. ◉ We don’t own inventory as well as producing machines, only computers , printers.... ◉ Concentrate on employees who contribute considerably to generate sales for our company as well as employees contributing in operating activities Financial Plan
- 42. ◉ 10% fromparking owners for each parking lot found How to get revenue 42
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- 44. Cost of goodssold : component 1 (software application) (yen) 44
- 45. Cost of goodssold : component 2 (salary for IT department) 45
- 46. Salary adding foroperating expense 46
- 47. Key financial indicators 47 •Sales, • Gross margin, • Cost of goods sold • Inventory turnover. Sale is expected to increase from 150 to 200 percent. The gross profit margin is forecasted to account for above 85 percent.
- 48. 48 Break-Even Analysis Monthly parkinglots break-even 348 Monthly revenue break-even 3135000 Yen Assumptions: Average of 1 parking lot finding revenue per hour 40 Yen Average variable cost per 1 parking lot 8 Yen Estimated monthly fixed cost 2,508,000 Yen Parking lot using fully 25 days/month and 9 hour/day So we will get break-even point after 14 months.
- 49. Cash Flow statement(Yen) 49
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