Entrepreneurship and Innovation (MNG00314) Assignment Sample

• Subject Code : MNG00314
• University : Southern Cross University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Entreprenuership

Assignment 2: Report (Business Plan)

Table of Contents

1. Introduction

2.  Description of entrepreneurial venture

3. Management

3.1 Legal structure

3.2 Operation Management

4. Marketing

4.1 Target market

4.2 Marketing and Communication Strategy

5. Competitor Analysis

5.1 Competitive rivalry

5.2 Threat of New Entrants

6. Financial analysis

7. Key risks and challenges

7.1 Selecting correct platforms

7.2 Mobile App marketing

8. Bibliography

Executive Summary

This report aims to present the business plan of Call of Nature which is a smartphone-based application to find out the nearest public toilets in the quickest way.  In addition to this, the objective of the report is to acquire seed funding from a capable investor as it will support the development of business and application at the early and growth stage. This report also focused on various aspects; description of business venture, competitor analysis, management, marketing, financial analysis and also key challenges and risks related to business. Moreover, it also represents the potential investor with an effective business plan outline. The business will manage the fund from crowdfunding and angel investor.

1. Introduction

The Call of Nature is the smartphone application that aims to help others by finding the lavatory quickly in an emergency.  The Call of Nature is the fastest and simplest way to find out the public bathroom. The person just needs to open the app and it will display the nearest toilets.  Along with this, the applications turn users as per the position of the public toilets or the toilets registered by the firms or shops through GPS when the user required (Chambers and Humble 2017). In the case of firm and shop, this application act as the advertising app that offers the opportunity for the user to become the customer when they visit their toilet. 

The objective of this report is to secure seed funding through the potential investor which helps to establish the business as well as offer the help at initial development stages of this business venture.  In addition to this, the report aims to demonstrate the professional business plan to a potential stakeholder.  The report will outline the succeeding measures; explanation of the entrepreneurial venture, management, marketing, opponent analysis, and financial analysis, significant risks, and challenges.

2. Description of an entrepreneurial venture

 In the present scenario,technology is the best and beautiful thing in the context of business.  Additionally, it has been determined that there are various people who get annoyed for searching the toilet when they are at market or any public place. Therefore, there is a new craze to use the toilet finding application in order to save time. Furthermore, it has been observed that majorly all the business processes become digital or virtual as the popularity of using mobile application is using. It is very valuable to invest in profitable business (Desai 2016)

Through the analysis, it has been determined that the international smartphone application market size is worth $ 106.27 billion in 2018 and in the future it will reach $407.31.   Application-based software is designed to run on different tablets, smartphones, and computer tablets. The key objective of the application is to assistant the users in order to avail of different services with the use of the internet on their portable devices (Deasy et al. 2016). 

Moreover, The Call of Nature is a smartphone application that will help the user to find out the public lavatory in the quickest way.  This app is used to determine the nearest public toilet or firm and shop 's toilet.   Through this app users can find the toilet and also rate it.  The user can navigate the way to the toilets by using Google Maps. Call of Nature will help the user to navigate the nearest toilet. Along with this, firms and shops using this application as an advertising app that offers the opportunity for users to become their customers whenever they visit the toilet.  Furthermore, the design of the app will offer a friendly and interactive experience to the user also with multiple features.

3. Management

3.1 Legal arrangement

The legal arrangement is one of the significant parts of every entrepreneur for his business.  However, it is important to select the accurate legal arrangement for the business. Therefore, selecting a suitable legal structure requires undertaking the knowledge of complexities of an entrepreneur's liabilities and intrinsic tax values. It will also help to identify what capital- formation options will be available (Burns and Dewhurst 2016)

Moreover, the following are the features that need to be considered before selecting the right legal structure for Call of Nature- 

1. Personal liability experience

2. Early and continuing administrative costs in setting up and handling the venture. 

3. Whether they involve partners or investors.

4. Tax efficacy  on the business organization

5. Number of employees  need to be employed 

The following are the benefits and drawbacks of various Australian business structures.

Table 1: Benefits and drawbacks of legal arrangements

Call of Nature will be structured as Pty Ltd (proprietary limited company) in Australia. It successfully built the business as a discrete legal entity.  This legal arrangement proprietor offer security to personal asset from any accountability or debt where only the business assets are at risk in case of legal action. However, the initial set up and administration cost of the business is comparatively high. Though, this structure is more flexible and enables the business to enter with discrete parties in the future into the business where the organization wants to acquire more capital or business growth.

Following is cost and reporting requirements-

Table 2: Cost and reporting  requirements

3.2 Operation Management

Call of Nature will be managed by the owner and initially, the owner will be the company’s only shareholder.  Developing user-friendly and interactive app require to satisfy the demand of the users.  Hence, to satisfy the users, the owner will outsource the design and development of the smartphone application to the best third party who has appropriate information and experience.  In addition to this, a discrete joint venture contract will be signed with the outsource business as per the agreed terms and conditions ( Cassidy 2016). 

4. Marketing

4.1 Target market

Call of Nature directly targeted smartphone users –especially from Australia and Asia (majorly in India, Japan and China).  However, it will majorly target the millennial generation as they mainly use the smartphone.  It has been determined that this demographic has more disposable income and they travel a lot to various places.  Therefore, by using this app the user can easily find the toilet at any place (Henderson, Goldring and Simeon-Dubach 2017). 

4.2 Marketing and Communication Strategy

 In the initial stage, the Call of Nature aims to target and attract more and more users in order to develop the fast growth of the app.  However, in order to accomplish the set target, the company needs to engage more customers as well as need to put more effort into promotion. In addition to this, to attract the large number of users the business will offer the app for free to the users especially at the early stage. Along with this, the company will offer membership to the various firm and shops as they want to show their shop or firm to the users.  Though, membership can be registered online with the particular amount paid.  

 In addition to this, the target users use the smartphone and they also uses the major social media platforms such as Facebook, Twitter and Snapchat and so on.   Therefore, in order to attract the target audience, the company can use the social media platform by using the appropriate online content (Magalhães et al. 2020). Also, Call of Nature will use Google Adwords and Search Ads to enhance linked keywords explorations.  Additionally, after the app launch, Call of Nature will do constant marketing through using services of App Media in order to endorse the app at over all channels that includes iOS, Android platforms, and iOS .

5. Competitor Analysis

 Through analyzing the competitor of the business, the company is able to enhance the business strategy and also allow the company to evaluate threats from the present competitors as well as from the new entrants in the market.  By using Porter's five forces, the company is able to determine the competitive environment with profitability. However, through determining competitive rivalry and the threat of new entrants the competitor analysis will be done. 

5.1 Competitive rivalry

The major competitors of the Call of Nature are Toilet Finder, Flush toilet finder and the National Public Toilet Map of Australia.  In recent years, all these apps have been launched and will act as the intense competitors for Call of Nature. However, the usage of mobile applications is to increase competition in the industry (Griffiths, Fenton, and Fletcher  2019)

5.2 Threat of New Entrants

As per the research, approximately 1500-2000 new applications are launching every day.  Therefore, it becomes important for the Call of Nature to differentiate with other mobile application toilet finder services. Along with this, it becomes significant for the company to position the app in the market as the first choice of users. 

6. Financial analysis

In the context of financial analysis, there are various approaches to base the capital for a business venture that involves equity, venture capital, private placements, crowdfunding, and angel investors. 

 It has been determined that this business will require seed funding to the value of $ 210,000 for phase one and phase two requires $ 42,0000.  In addition to this, crowdfunding is selected for sourcing fund in case of phase 1 and on the other hand angel investor is selected for phase 2.  Both the options offer the various advantages to the businesses which are as follow- 

1. The owner is not needed to offer away the equity of the business.

2. No security or credit record is needed. 

3. Both the investing option enables a broad pool of investors to build small equity investments in a business.  

Furthermore,  Call of Nature will approach  GoFundMe which is a crowdfunding platform in order to establish the crowdfunding movement. Here, all the members can do the donations for the Call of Nature smartphone application (Andjelic, and Vesic  2017). 

Table 3: Phase 1-Crowfunding

Table 4: Phase2- Angel Investors

 Phase 2  of the business is considered as the best-funded by angel investors. Moreover, the angel investor will invest in the venture at all the stages and also the angel investor invest their own capital in the trade as well as they also offer their expertise such as mentoring and support in daily operations of the business.

7. Key risks and challenges

 The expansion of mobile applications is comprised of various risks and challenges. However, it has been observed that the majority of downloaded applications are rapidly getting deleted because of their poor performance.  The effective app requires various features such as performance, user-friendliness, quality and so on.  The enhancement in using the smartphone leads to an increase in mobile applications on a daily basis.  However, there are more than 4 million apps available in the market and facing challenges in order to promote potential customers.  In addition, there are two major challenges that are associated with the business as they may affect business growth.

7.1 Selecting correct platforms

It is already known that smartphone is dominated by iOS and Android platform. By using both platforms it will act the duopoly and will capture 99 percent market. However, the Android platform dominates the market, especially in India and China. On the other hand, the iOS platformmajorly uses in Australia and Japan. Therefore, Apple and Google both have the largest app store across the world.  So, to capture the largest market share, Call of Nature needs to establish the app on both the platform (Lacity 2018).

7.2 Mobile App marketing

Marketing of mobile app is an as challenging task. Though, marketing is a significant task for the Call of Nature app to gain potential users.  Also, there is intense competition among the different app companies.  So, it becomes important for Call of Nature to consult with marketing professionals in order to develop an effective marketing strategy, for example, using celebrity endorsement in order to promote the app.

Bibliography

Andjelic, S. and Vesic, T. 2017.The importance of financial analysis for business decision making.In Book of proceedings from Sixth International Scientific Conference Employment, Education and Entrepreneurship. 9-25.

Burns, P. and Dewhurst, J. eds. 2016. Small business and entrepreneurship.London: Macmillan International Higher Education.

Cassidy, A. 2016. A practical guide to information systems strategic planning.Boca Raton: Auerbach Publications.

Chambers, I. and Humble, J. 2017. Plan for the planet: a business plan for a sustainable world. London: Routledge.

Deasy, S., Meyer, R., Newell, C., Emil, S.I.T., Wisner, P., Furodet, D., Gyuris, V. and Strudel, F., VMware Inc, 2016. Controlling use of a business environment on a mobile device.U.S. Patent 9,247,042.

Desai, N.S. 2016. Mobile cloud computing in business. International Journal of Information, 6, 1/2.

Griffiths, M., Fenton, A. and Fletcher, G. 2019. 4.1 Competitor analysis. Strategic Digital Transformation: A Results-Driven Approach.

Henderson, M.K., Goldring, K. and Simeon-Dubach, D. 2017. Achieving and maintaining sustainability in biobanking through business planning, marketing, and access.

Lacity, M.C. 2018. Addressing key challenges to making enterprise blockchain applications a reality. MIS Quarterly Executive, 17.3.201-222.

Magalhães, M., Pereira, M., Cardoso, A., Cairrão, Á. and Figueiredo, J. 2020. Canvas marketing plan: How to structure a marketing plan with interactive value?. In Handbook of Research on Emerging Technologies for Effective Project Management .158-168. Hershey: IGI Global.