This document provides an agenda and details for a promotion plan, risk management strategies, and cash flow analysis for a new business opportunity described as a gentler alternative to current practices with an annual growth of 16% and market value over $7.6 million. The promotion plan discusses informing, persuading, and reminding target customers through various online and offline channels. Risk management identifies potential quality, training, after-sales service, and obsolescence risks and proposes solutions. The cash flow analysis compares three customer usage scenarios and calculates the monthly net cash inflow. The conclusion recommends the S.T. Peel equipment alternative and notes new equipment and treatment can improve cash flow while appropriate measures can control risks.

1. CPA Case-Body Benefits
Centennial College

2. Agenda
• Introduction
• Promotion plan
– Informing
– Persuading
– Reminding
• Risk management
• Cash flow analysis
• Conclusion

3. Introduction
• Relatively high annual growth (16%)
• Market value larger than $7.6 million
• Favorable location
• Highly professional skills
• New business opportunity:
– Gentler alternative to current practices
– Potential customers
– Manufacturer support

4. Promotion plan-informing
Online
• Channel:
– Google keyword
– Facebook news feed
– YouTube video
• Selling point:
– Low cost
– Convenient
• Advantage:
– Access to 64% of target market
– Cost efficient
– Viral spreading
– More creativity
Offline
• Channel:
– Campus promotion
– Travel agency collaboration
– Outdoor ads
• Selling point:
– same
• Advantage:
– Geo-selective
– Repetition

5. Promotion plan-persuading
Online
• Channel:
– Facebook
– Instagram
– Pinterest
• Selling point:
– Favorable effect
– Good service
– Build good service image
• Advantage:
– interactive
Offline
• Channel:
– Part-time promoter
– Students
(it depends on budget)
• Selling point:
– Referral & testimony
• Advantage:
– Trusted recommendation

6. Promotion plan-reminding
Online
• Channel:
– Email
– Online message
• Selling point:
– Loyalty discount
– Seasonal feature
– New product & service
– Build relationship with
customer
• Advantage:
– Lower cost
Offline
• Channel:
– Phone call
– Mail
• Selling point:
– same
• Advantage:
– same

7. Risk management
Quality Risk
• Identification:
– Equipment failure
– Accidental damage
• Solution:
– Pre-purchase inspection
– Product understanding
– Product warranty
Training
• Identification:
– Operating issue
– Maintenance
• Solution:
– Additional training & support

8. Risk management
After-sales service
• Identification:
– Response speed
– Additional charges for repair
• Solution:
– Clarify in contract
– Keep contact with vendor
Obsolescence risk
• Identification:
– Treatment
– Equipment
• Solution:
– Shorten the useful term for
current equipment
– Ask discount for new
equipment with vendor

9. Cash flow analysis
Inflow:
clients # service
revenue @
$175
monthly alternatives
light user 6 4 $ 4,200
$ 2,917 $ 2,479moderate user 6 6 $ 6,300
heavy user 4 10 $ 7,000

10. Cash flow analysis
Outflow:
down payment $ 5,000
$ 86
alternatives
warranty $ 150 scene #1 scene #2
installment $ 700 $ 5,000 $ 300 $ 208
interest
expense
$ 13 $ 5,000 $ 80 $ 117
operating
expense
$ 463
$ 472
$ 5,000 $ 195 $ 165
$ 8
supplies $ 296
total $ 1,270

11. Cash flow analysis
Net cash flow
ST alternatives
net cash inflow $ 1,647 $ 1,611.67 $ 1,787
(monthly) $ 1,831.67 $ 1,878
$ 1,716.67 $ 1,830
*no present value conversion required because the inflow is matched to the same period with outflow

12. 1. S.T Peel is our first choice for new
equipment.
2. New equipment & treatment can
remit the difficulty of cash for the
owner.
3. Risks associated with new
equipment can be controlled by
appropriate measures.
Conclusion