Вы находитесь на странице: 1из 19

MAYA KAPUR, RAMYASRI DRONAMRAJU,

MICHELLE WANG,
JANAE ZHANG, & KATIE CHEN
MONTA VISTA HIGH SCHOOL
21840 MCCLELLAN ROAD
CUPERTINO, CA, 95014

TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY.................................................2-3
1.1 INITIAL BENEFITS STATEMENT..................................................2
1.2 COMPANY MISSION STATEMENT..............................................2
1.3 ENTERPRISE CHARACTERISTICS.............................................2-3

2.0 COMPETITIVE ADVANTAGE.........................................3-5


2.1 OPPORTUNITY...........................................................................3
2.2 PRE-EXISTING PROBLEMS.........................................................4

3.0 INDUSTRY ANALYSIS...................................................5-9


3.1
3.2
3.3
3.4

PRODUCT5
ILLUSTRATIONS6
KEY GRAPHS..............................7
COMPARISONS...................8

4.0 MARKET...................................................................10-11
4.1
4.2
4.3
4.4

MARKET PROFILE..10
TARGET MARKET...10
KEY MESSAGE.11
MARKETING STRATEGY..11

5.1
5.2
5.3
5.4
5.5

FIVE-YEAR PERFORMANCE......................................................12
USE OF PROCEEDS..................................................................14
INCOME STATEMENT..............................................................15
BALANCE SHEET.....................................................................15
CASH FLOW............................................................................16

5.0 FINANCIAL PLAN............................ ........................12-16

6.0 EXIT STRATEGY............................................................16

6.1 EXIT STRATEGY.......................................................................16

7.0 ASSUMPTIONS..........................................................17

7.1 ASSUMPTIONS.........................................................................17

8.0 APPENDIX.....................................................................18
8.1 APPENDIX...............................................................................18

CONVENIOLOGY 1

1.0 EXECUTIVE SUMMARY


1.1 INITIAL BENEFITS STATEMENT
Living in or near urban areas, all of us have encountered a problem with parking. Here at
Conveniology, we believe that we have created one of the most innovative technologies to solve
the pesky problem: CityPark, a comprehensive meter-parking app. We are seeking an investment
of $9,000,000 for 30% stake of our company, Conveniology. CityPark is sure to become the goto application for all drivers, from daily commuters to visiting tourists.

1.2 COMPANY MISSION STATEMENT


We believe that our newest software will help people solve the all too common problem
of parking in large, crowded cities. Conveniology aims to provide the world with more efficient
solutions to everyday problems by combining technology with the finest in convenience. At
Conveniology, we believe that everyone deserves to have efficient software that helps them get
through the muddle of everyday life.

1.3 ENTERPRISE CHARACTERISTICS


Chairman and Chief Executive Officer (CEO) Maya Kapur will be responsible for
maintaining the business visions and strategies, cultivating the companys charismatic culture,
and administering the business capital allocation and expenditures. As the CEO of this new
startup, Maya Kapur will adopt a collaborative management decision style and will be involved
with all aspects of the business, including interaction with all employees. Kapurs daily tasks will
involve decisions on critical adjustments.
Chief Financial Officer (CFO) Michelle Wang will be responsible for all the financial
record-keeping. This will include income statements, cash flow projections, balance sheets,
sources of funding, investment approvals made in the company, and other fiscal documentation.

CONVENIOLOGY 2

Chief Marketing Officer (CMO) Ramya Dronamraju will be in charge of sales


management, merchandise pricing, and market research. Dronamrajus primary engagements
will consist of expediting Conveniologys advancements and increasing the companys profit
margin on a quarterly basis. Dronamrajus other tasks will include overseeing the development
and execution of Conveniologys marketing strategies through utilizing media outlets and mobile
advertising.
Director of Business and Public Relations Janae Zhang will maintain business
partnerships with all appropriate corporations. She will oversee all business liaisons, as well as
preserve relationships with customers. Zhang will work to build a brand image and name for
Conveniology. She will manage the organization of promotional events, issue press releases, and
represent the company at professional and community events.
Director of Information Technology Katie Chen will oversee the development and timely
update of the company website, which will be the primary forum for order placements and a
center for promotional information. Chen will also manage the internal computer system that
processes all of the order placements.

2.0 COMPETITIVE ADVANTAGE


2.1 OPPORTUNITY
Conveniology intends to move fast into expansion. We wish to begin our enterprise
small, and grow out to be an app that would be applicable nationwide. Efficiency and a large
target market is what we are aiming for. Our app would include many features making it
convenient for drivers and also locating free or paid parking places. We wish to see ourselves to
have a steady but profitable growth in initial years, as the app would be introduced in new states,
our profit margin would steadily increase and this is the direction we wish to go in.

CONVENIOLOGY 3

2.2 PRE-EXISTING PROBLEMS


The issue at hand is that it is becoming difficult for people to find parking spaces, in and
around the area people wish to go. The outlines below are the major problems we wish to address
with our app.
Inadequate information - There is not enough information for motorists on parking
availability. Motorists are likely to be frustrated if they expect abundant and free parking but find
limited or expensive parking, or if they have to spend extra time searching for one.
Inefficient use of existing parking capacity - Local zoning ordinances, building codes,
and other development practices can result in an oversupply of parking spaces and their
inefficient use.
Loading and Unloading Zones - Scarce parking for commercial vehicles to load or
unload is difficult to find.
Confusing parking policies - Regulation and fees may apply at certain times but not
others.

CONVENIOLOGY 4

These are just few of the many problems presented to us in this sector; our entire focus is
on efficiency and the convenience of our app, which we will provide to our users to use to the
fullest of its capabilities.

3.0 INDUSTRY ANALYSIS


3.1 PRODUCT
Conveniology is developing an app called CityPark. The app, categorized on the Apple
iTunes store as navigation, will help users find metered parking spaces quickly and efficiently,
saving the user valuable time in addition to decongesting traffic in the city.
Real-Time Data - One of CityParks landmark features is the utilization of real-time
data. Users no longer need to rush out of an important meeting or spend fifty minutes driving
around a city looking for a parking space. Thanks to CityParks real-time data, the user will be
kept up-to-date with everything from available parking meters to the time left on the meter. With
CityPark, users will never have to struggle with constantly keeping track of precious time, which
would cut into the time allotted for other plans.
GPS - The GPS feature of the app locates the users position and uses it to find the
nearest available meter. Once the user has chosen which meter to park at, the GPS then guides
them to their spot using the phones speakers or Bluetooth and a highlighted route on screen.
Payment System - Once users have arrived at their spot, CityPark allows users to pay
either at the meter using coins or through their phone. Users can set the amount of time they are
parking for and the app will display the cost. Should users choose to pay through their phone
with a debit or credit card, CityPark will charge them $0.25 + 20% transaction fee that will be
made as profit, while a $0.50 charge is placed on those who choose to pay with coins.
Voice Activation and Bluetooth - Once the CityPark app has been opened, the user can
say preset commands to activate the apps numerous features. For example, the user can say,
find a parking space to activate the GPS locator and choose a meter. Commands can be
changed (and recorded for further voice technology refinement) in settings.

CONVENIOLOGY 5

3.2 ILLUSTRATIONS

HOME SCREEN

ICON

CONVENIOLOGY 6

3.3 KEY GRAPHS

http://www.parking.org/media/245544/2013_emerging%20trends_web.pdf
http://www.parking.org/media/245544/2013_emerging%20trends_web.pdf
3
The following information is from each companys respective official website.
2

CONVENIOLOGY 7

3.4 COMPARISONS
Similar apps such as SFPark, ParkNow, ParkWhiz, and SpotHero only provide
information about parking garages (and not meters), are limited in their locations, and/or do not
provide real-time data. Our app will not only address all these problems, but also go beyond to
predict which meters will soon be available based on their time limit.

The following information is from each companys respective official website.

CONVENIOLOGY 8

SWOT ANALYSIS

CONVENIOLOGY 9

4.0 MARKET
4.1 MARKET PROFILE
In 2013, the U.S. Commerce Department predicted a growth of a new high of foreign
travellers of 69.6 million. This is just the foreign community, there are millions in the United
States travelling coast to coast, exploring the countrys land. 95% of the American population
owns a vehicle where in which the number of owned vehicles is increasing on an average of
eleven million per year. According to the Bureau of Transportation Statistics for 2012, there
were 254,639,386 registered vehicles and this number is growing along with the number of
people who have a drivers license4. Our size extends to the extent of the American population
who commute in their own vehicles in metropolitan cities all across the United States of
America. In addition, there were an estimated 163.9 million5 smartphone users in the United
States. This number is expected to reach around 220 million (around 66% of Americas
population) by the year 2018. These two numbers share many of the same members; These
figures show that CityPark will appeal to a large number of people nationwide as they flock to
cities like San Francisco without the hassle of trying to find a parking space.

4.2 TARGET MARKET


City Parks target market would incorporate all commuters; local and foreign to the
city/area. It is for everyone who desires to obtain convenience in locating a parking space closest
and most convenient for themselves. Our goal is to combine technology with convenience for
our customers ultimate satisfaction.
Growth Potential - Our companies potential to extend boundaries will be nationwide.
We plan on starting with San Francisco, California then later to extend our service to the major
metropolitan cities in California. Phase 2 would then be the further extension of our services to

4
5

http://www.statemaster.com/graph/trn_lic_dri_tot_num-transportation-licensed-drivers-total-number
http://www.statista.com/statistics/201182/forecast-of-smartphone-users-in-the-us/

CONVENIOLOGY 10

all major cities across the country. Following our nationwide expansion, we wish to gain the
status as an independent company.

4.3 KEY MESSAGE


We aim to convey CityPark as the most comprehensive meter-parking app, with features
such as voice-activation, Bluetooth, payment renewal, and real-time data.

4.4 MARKETING STRATEGY


CityPark will use mainstream advertising to reach our target audiences. This includes
viral marketing, advertisements on other popular apps, and some print advertisements. We will
employ all of these strategies during our first phase of deployment within San Francisco. This
will aid in the initial promotion and sales of City Park.
Viral Marketing - We will develop short television and radio commercials to help
promote our app to the general public. These commercials will be in character with the apps
efficiency ideals in that they will be more straightforward with less fluff.
Other Apps - We will put pop-up advertisements on relevant apps, such as those for
travel or navigation. This will lead to an increased chance of downloads of our app.
Print - Flyers and handouts promoting our app will be posted in various parking areas,
such as garages and on the meters themselves. They will also be placed near exits of large
shopping malls and on the windshields of parked cars.

CONVENIOLOGY 11

5.0 FINANCIAL PLAN


5.1 FIVE-YEAR PERFORMANCE

CONVENIOLOGY 12

CONVENIOLOGY 13

5.2 USE OF PROCEEDS

Proceeds will be directed towards employee salary, purchasing of supplies and


equipment, data storage, office rent, and advertising. There is no cost to sell the app on iTunes.

CONVENIOLOGY 14

5.3 INCOME STATEMENT


INCO M E STATEM ENT
YEAR
1
2
3
4
5
Revenue from Sales
253192.5 337590 11523600
15364800 24775353.9
Revenue from Services
33567187.5 44766250 1527790000 3284671313 3284691313
Total Revenue
33820380 45103840 1539313600 3300036113 3309466666
Cost of Goods Sold
0
0
0
0
0
Gross Profit
33820380 45103840 1539313600 3300036113 3309466666
Research and Development
900000 1100000
1300000
1500000
1500000
Selling General and Administrative
96000
77000
85000
85000
99000
Non Recurring
8000
8000
8000
8000
8000
Operating Income
32816380 43918840 1537920600 3298443113 3307859666
Interest Income
Earnings Before Interest and Tax
32816380 43918840 1537920600 3298443113 3307859666
Interest Expense
Income Before Tax
32816380 43918840 1537920600 3298443113 3307859666
Income Tax Expense
8204095 10979710 384480150 824610778.1 826964916.6
Net Income
24612285 32939130 1153440450 2473832334 2480894750

5.4 BALANCE SHEET


BALANCE SHEET
YEAR
Cash and Cash Equivalents
Short-Term Investments
Net Receivable
Inventory
Total Current Assets
Long Term Investments
Property and Equipment
Total Assets
Accounts Payable
Long-Term Debt
Total Liabilities
Owner's Equity
Retained Earnings
Total Equity

923000
923000
73000

1121100
1121100
73300

1322990
1322990
83400

1524691
1524691
84000

1532905
1532905
86500

73000

73300

83400

84000

86500

850000

1047800

1239590

1440691

1446405

CONVENIOLOGY 15

5.5 CASH FLOW


CASH FLO W
YEAR
1
2
3
4
5
Net Income
24612285 32939130 1153440450 2473832334 2480894750
Depreciation
0
1900
2110
2299
14935
Adjustments
Accounts Receivable
Deposits
Inventories
Net cash flow from operating activities 24612285 32937230 1153438340 2473830035 2480879815
Capital Expenditures
Investments
Net cash flow from investing activities
Dividends Paid
Sale of Stock
Repayment of Long-Term Debt
Net cash flows From Financing
Activities
Cash Balance
24612285 32937230 1153438340 2473830035 2480879815

6.0 EXIT STRATEGY


6.1 EXIT STRATEGY
By the end of our final phase (in about 5-7 years), we plan to pay back in full the
$9,000,000 invested into the product. By expanding to several cities across the nation with the
$0.99 application, we will have sold this application to an estimated 150 million drivers, and will
have earned almost $148 million in sales from application sales alone. This value, in addition to
in-app purchases, will give an excellent return on investment. However, expanding into other
cities will involve several other payments, which we will request before each new phase. After
nationwide expansion, we plan to gain status as an independent company, before being bought
out by another company, preferably something within the rental car industry.

CONVENIOLOGY 16

7.0 ASSUMPTIONS
7.1 ASSUMPTIONS
We are assuming that in our first year we will have 255,750 cumulative downloads of
CityPark. This number is based on the number of people who commute to San Francisco daily
crossed with people who own smartphones, and we are assuming that this market is sustainable.
From the first year onwards, the number grows somewhat exponentially with our success and
expansion to other cities. We are also estimating that each year, one person might pay by card for
$5 worth of time 75 times and pay by coin 25 times. The $5 would give us $1.25 profit each use,
and each coin payment earns us $0.50. Another assumption is that out of approximately 250
working days a year, a user will renew their spot 25 times for $5 worth of time, giving us a 20%
profit of $1 per renewal. We are inferring that users using this app are able to pay for their
meters, especially concerning card payments, and are not in debt.

CONVENIOLOGY 17

8.0 APPENDIX
8.1 APPENDIX
San Francisco population as of 2014: 852,469
California population as of 2014: 38,802,500
United States population as of 2014: 318,857,056
(Source: U.S. Census Bureau)
Top 50 cities in the U.S. by population as of 2013: data from Infoplease
APP: CITYPARK
YEAR
Price of App
Cumulative Downloads
Advertising Revenue Per Year
Charge to Find a Spot - Card
Per Person Yearly Usage of Card
Charge to Find a Spot - Coin
Per Person Yearly Usage of Coin
Charge for Renewal of Spot
Per Person Yearly Usage of Renewal

1
2
0.99
0.99
255750 341000
0 10000
1.25
1.25
75
75
0.5
0.5
25
25
1
1
25
25

Number of People
Salary Per Employee
Office Rent Per Year
Supplies
Equipment
Advertising Cost
Cost to Sell on iTunes Per App
Data Storage

9
100000
72000
5000
19000
8000
0
1000

11

Depreciation of Assets (%)


Income Tax Rate (%)
Price Per Share
Total Shares
Shares Given Per Executive Employee

10
25
10
200000
2,000

0.99
11640000
40000
1.25
75
0.5
25
1
25

5
0.99

0.99

15520000 25025610

60000
1.25
75
0.5
25
1
25

80000
1.25
75
0.5
25
1
25

13

15

15

72000
1000
4000
8000
0
1300

80000
1000
4000
8000
0
3400

80000
1000
4000
8000
0
4000

80000
1000
18000
8000
0
6500

2000

2000

2000

2000

CONVENIOLOGY 18

Вам также может понравиться