Business Plan

All we are missing id the couple of bits we spoke about earlier Sanne 🙂 I have emailed this to ye too – Trish

Executive Summary:

At MiBoard, we aim to produce a product that will modernize the way people organize themselves at work. Especially for the busy offices in the hospitality industry more specifically, the hotel sector.

Our product mainly aims to reduce the loss of important reminders and documents. We also limit the amount of paper used in the office, and assist in the day-to-day running’s of the various departments of a hotel. Convince is our promise as MiBoard will be able to store all important data, documents, reminders and updates in the one place accessed easily at the touch of a hand.

We originally began our project with the aim to create an interactive mirror but further research led us to see that this was already on the market and available to consumers but what we did see was that there is a gap for a digital interactive organizing board (to replace the white-board, black-board and cork-board) available so we decided to pursue this. Our aim is to market our product to the hospitality industry, mainly hotels in Ireland for the first year. We want to focus on a more commercial route. We have looked at the data and all agree that this product will work well in the hotel market segments. Our Customer Value Proposition is that our product is one of a kind as there is currently no other digital organizer board on the market. Our product is more convenient than its competitors will save organisations money and loss of information by storing everything in one board that can be accessed easily.

 

Company Structure:

companywork 

Turnover in year one:

Our first year of business will be aimed solely on the Irish hotel market. As this market is small it will be a test market and we aim to sell a minimum of 200 MiBoards in the first twelve months of business. With this goal being reached we will have a potential turnover of €8,172.12 in year 1 in or Irish Market Segment.

Costs: €31,827.88

Potential Sales Return: €40,000

Potential Profit year 1: €8,172.12

We will require a €5,000 investment from friends and family as well as our individual investments of €5,000 each for equal share in the company. We will also require a €10,000 loan from the Credit Union to be paid back within the first to years of the company at €460.00 a month. This will be a personal loan with a 9.9% APR.

Milestone:

We intend to sell a minimum of 200 MiBoards within the first 12 months of business in order to make €40,000. To reach this maximum sales potential, we will visit a minimum of 25% of the 798 hotels in Ireland and pitch our product to the managers and supervisors within these organisations.

 

 

 

 

 

 

 

 

 

 

 

 

2A

 

Product or Service:

Our product, the MiBoard wants to help eliminate loss of important documents in the home. We want our customers to be organized without having to worry about losing an important letter or receipt by allowing them to scan their documents and saving them to the board. We want to eliminate all the hassle that comes with your regular old pin-board while keeping the same organization essentials. The scanner is just one of many helpful aspects to the MiBoard, users can also type, write, or draw notes onto the board as well as set reminders and organize their personal calendar. The board is set up to support the whole family with their day to day planning.

 

Value Proposition:

The MiBoard will provide value to our customers as, unlike products such as the traditional pin board and the whiteboard, MiBoard won’t have to be replaced. With your regular pin board, the cork tends to wear away which can cause pins to fall out resulting in lost documentation. You also won’t need to purchase any pins in order to put information onto the board or purchase any markers to write on the board. Customers also get a 2year guarantee with every board this give us an advantage over Apple who only offer 1 year.

Unique Selling Point:

Our product is unique in itself as it is the only digital organiser board currently on the market. Our engaging easy to use interface is consumer friendly for all ages. MiBoard will not only last longer than the average ‘classic’ organiser board, it will assist to eliminate the loss of notes and documents, reduce the amount of paper being used and

Future plans:

In the future we want to expand our product for use in restaurants, gashouse and busy offices. We plan to offer a more advanced board suitable to be implemented in busy offices. This board will contain all the same organization tools offered in our current product but will have added features to allow people to collaborate on work between different boards across the office. We also hope to move in to the Netherlands and UK market and sell to hotels in the Netherlands and the UK once our reputation has been established in year one.

Section 2B Interface

Design Brief

Design requirements 

MiBoard is an interactive pinboard that will make it easier to store documents and creates a well-arranged place with all of the users most important information. To make the MiBoard we need a Raspberry Pi ZERO, Raspberry PI USB, a capacitive Touchscreen, a small HD camera and frames, 32 inch screen.

Input: MiBoard will have a touchscreen so the input will be supported by touching the screen with your vinger.

Output: The materials above will be used for the MiBoard. It will also have audio for opening programs or notifications. The screen will be 32 inch and you can hang the MiBoard on the wall.

Delivery requirements 

The MiBoard is 32 inch and need to have 9 functions: a calendar, to do list, time and date, camera/scanner, documents, tools (drawing, writing, erasing), different lay-outs, creating folders and deleting documents.

Background research

  • 
 
 
User Experience
If you look at the other websites, there are using all the same type of user interface. They have only a menu bar where you can add new posts and paste a sticky note on your page. If you are done you can scrap it but if deleted you can’t find it back anywhere. It is not touchable, only by using a mouse.

You need to login to the program every time you want to use it and you don’t have any other options to add time, documents etc. only 1 website offers a video option where you can place movies.
Visuals
For the visuals I looked at different websites that offer the same methods as a pinboard. When looking at it you can see that they all have an easy design so people can use it and it’s accessible for lots of different people. There are only website available and no touchable features like we want to do with MiBoard. The visuals are all inspired to be like a pinboard and are not visually attractive or modern. Most of these sites are only for business related things and not introduced to the house holding, this doesn’t exist at the moment.

Design prototypes.

Scribbles of potential designs and colour schemes.

Design Solution

Proposed solution with short explanation.

Usability issues

Data both positive and negative relating to its use. This should also include some conclusion re the design phase but also what proposed changes could be implemented in future developments

Section 3, Marketing

 

We originally began our project with the aim to create an interactive mirror but further research led us to see that this was already on the market and available to consumers but what we did see was that there is a gap for a digital interactive organizing board (to replace the white-board, black-board and cork-board) available so we decided to pursue this.

Our aim is to market our product to the hospitality industry, mainly hotels in Ireland for the first year. We want to focus on a more commercial route. We have looked at the data and all agree that this product will work well in this market segments.

 

Primary Research:

We began our research by first seeing how many hotels and restaurants there are in Ireland and in each county in order to size our market as we plan to sell our product and focus all of our energy in year 1 to the Irish market hotel industry. We found that there are 798 hotels in total in Ireland,

Carlow: 10 Hotels

Cavan: 14 Hotels

Clare: 38 Hotels

Cork: 78 Hotels

Donegal: 53 Hotels

Dublin: 147 Hotels

Galway: 79 Hotels

Kerry: 73 Hotels

Kildare: 21 Hotels

Kilkenny: 16 Hotels

Laois: 10 Hotels

Leitrim: 8 Hotels

Limerick: 28 Hotels

Longford: 2 Hotels

Louth: 9 Hotels

Mayo: 44 Hotels

Meath: 18 Hotels

Monaghan: 8 Hotels

Offlay: 8 Hotels

Roscommon: 6 Hotels

Sligo: 14 Hotels

Tipperary: 23 Hotels

Waterford: 24 Hotels

Westmeath: 16 Hotels

Wexford: 27 Hotels

Wicklow: 24 Hotels

National: 798

All above figures from Failte Ireland,ie

For our primary research we carried out 2 surveys’, interviews and researched on what organisational boards are being used in hotels in Cork and what the stores have to offer.

 

Survey Created on Survey Monkey to aim to collect data on whether or not there is a demand for this on the market. Out of 25 people surveyed, the results stand below:

  • 43% Males & 28.57% Females Surveyed
  • 58% between 21-29 years old
  • 43% were married
  • 43% had children
  • 60% said they used an organisational tool in the home
  • 85% said they used a pin board or cork board as this organisational tool
  • 85% had a calendar hanging on their wall
  • 57% had a black or white board as a reminder, notes or shopping list
  • 85% said they would use a digital pin board in the home

Survey number 2 results:

  • 86% Males & 57.14% Females Surveyed
  • 71% between 18-24years old
  • 71% between 25-34years old
  • 57% between 35-44years old
  • 85% married
  • 69% in domestic partnership
  • 69% single but cohabiting with a significant other
  • 77% single
  • 23% own their own home
  • 92% rent
  • 78% said they would use a digital organiser at work or at home

From these results we are confident that there is a market for MiBoard and it would sell as an organisational tool.

Face to Face interview with Chris Crowley, Operations Manager, Imperial Hotel, Cork.

11th November 2016

09.15 am

Insights:

  • The imperial Hotel has 10 different departments, all with its own manager appointed, all of these managers must be in contact constantly in order to ensure smooth running’s of the hotel.
  • From this interview we feel that a digital board would work well with an organisation like the hospitality industry. An industry that is so fast paced and receives a high volume of enquiries and has a high volume of staff in various departments
  • The constant changes and updates can be stored on this board for all to see in one place
  • The features it would assist in the day to day duties, everything in the ne place and easily accessed
  • Lower the amount of loss on reminders and notes alone would be a huge asset to any business
  • Built in Wifi would mean that managers and staff could communicate via email on the calendar feature on the board
  • Notes and comments for shift change would save time on daily pre shift meetings as staff can see this on the board
  • We must look at the price, originally we were aiming to sell this product for €200 but from this interview and the survey it seems that €150 is the maximum people are willing to pay, therefore we must look at our costings or work on our sales plan to prove that MiBoard is worth the price of €200
  • On hotel could possibly need at least 3 boards as there are a number of manger offices on the property.

 

 

 

 

 

 

Face to Face Interview with mother of 3 kids aging between 7 and 14 who also owns a restaurant, Pepperstack.

20th November 2016

7.00pm

Insights:

  • Seemed more interested in using it in the business as opposed to using it at home, was open to using it at home for a lower price point
  • Board would be used as a hub for management and staff to keep organized, it could replace every one of the boards I have in the images below
  • With it being able to be accessed from smartphones, it would be useful for staff to check their roster for the week to save members having to ring during the week to check their weekend hours
  • Overall, serious interest was shown over the product so I think the hospitality business is definitely one to strongly market this towards with maybe a smaller cheaper version for home use.

 

From our primary research of what was on offer in stores and what people are using as organisational tools, found that whiteboards, blackboards, planners and calendars are among the most popular tools used in businesses in relation to organisational tools. Many tend to have a multiple of these on their walls within the various manger’s offices throughout the premises. Look at the two from the Imperial Hotel Events Office in Cork, you will see both a planner and white board. Pepperstack Restaurant has numerous black-boards, white-boards and daily planners displayed on the walls also, please see imagery section of appendix.

What we are offering will be all this and more in one digital board nailed to the wall. It will not only create more space in the office but can’t store all data from separate boards into one and hols staff rota’s, reminders, messages, daily specials for the restaurants, manger notes and sift change updates.

We visited retail stores in Cork to see what was offered to consumers and found that in stores we found that again white boards, cork boards, chalk boards are all offered individually but nothing that has all in one. MiBoard can combine all these products into one easy to use digital board.

 

 

Secondary Research:

Market Segment 1:

Segment

 

Hotels in Ireland
Age

 

Not age specific
Sex

 

Both
Occupation Staff members from all departments
Classification Segment Lifestyle/ Demographic
Specific Requirements 2 or more departments within a hotel
Estimated Size of Segment 798 Hotels in Ireland
Estimated Maximum Sales Potential 200 (25% of market segment)
Segment Value €40,000

There are 798 Hotels in total in Ireland, all of which have numerous departments within the premises and all match our specific requirement of 2 departments. We will use Ireland as our test market in year 1 with hopes of moving into the UK market in year 2. Urban hotels and 5 star and 4 star hotels will be our preference to break into first as these hotels have strong reputations among customers and the equity to purchase our product.

798*€200= €159,600, Our Total Available Market

There are currently 399 five and four star hotels in Ireland, 50% of our target market and market segment.

We feel that hotels would need a minimum of two MiBoards as there are various staff areas and manager’s offices, we have based our segment value on one board purchased by 25% of hotels nationwide in our first year, this would ensue that we would break even.

‘Failte Ireland Tourism and Research Statistics’

Hotels Nationwide/ 4 and 5 star hotels Nationwide

798 Total Hotels, 200 MiBoards sold = 25%, our Serviceable Available market

From our workings in Segment 1 we know that there are 798 hotels in the Ireland. Our maximum potential units sold in 25% of this segment is:

€200* 200 Hotels= €40,000 potential sales for year one

Market Segment 2:

Segment

 

Hotels in the UK
Age

 

Not age specific
Sex

 

Both
Occupation Staff members from all departments
Classification Segment Lifestyle/ Demographic
Specific Requirements 2 or more departments within a hotel
Estimated Size of Segment 45,000 Hotels in Ireland
Estimated Maximum Sales Potential 2,500 (5%of market segment)
Segment Value €450,000

There are an estimated 45,000 Hotels in total in the United Kingdom, all hotels will again have numerous departments within the premises and match our specific requirement of 2 departments. We hope to enter this market in year 2, having succeeded in our Irish market in year 1. The largest segment is now independent hotels (51%). Corporate branded hotels make up 44.3%, and just 4.7% are consortia. (hotel-industry.co.uk)

We will focus our sales potential on urban hotels and 5 star and 4 star hotels will be our preference to break into first as these hotels have strong reputations among customers and the equity to purchase our product.

45,000* €200= €9,000,000, Our Total Available Market (hotel-industry.co.uk)

We feel that hotels would need a minimum of two MiBoards as there are various staff areas and manager’s offices, we have based our segment value on one board purchased by 5% of hotels in the UK in our second year.

From our workings in segment 2 we know that there are 45,000 hotels in the United Kingdom. Our maximum potential units sold in 5% of this segment is:

€200* 2,500 Hotels= €450,000 potential sales

Overall Total Addressable Market Valuation over 2 years:

Segment: 200Units x €200= €40,000

Segment 2: 2,500 Units x €200- €450,000

Though many hotels are using the classic organisational boards these must be replace quite regularly due to wear and tear and damages. While some may be reluctant we are confident that our product will be worth the money spent due to its long shelf life, 2year guarantee, easy to use interface and securely stored documents and data feature.

Market trends:

Current trends on the market are the classic White-board, Cork-board and Black-board, we have seen this repeatedly throughout our primary and secondary research. Technology is growing and will soon be the way forward in all businesses and organisations, Miboard will be the new organizational tool, the digital replacement to the current trends on the market.

 

Customers/ Target Market:

From our extensive research we have drawn together our market segment, the hotel industry and home owners/ renters. Our primary and secondary research has convinced us to aim our product at these markets. Hotels staff are men and women ages between 16 and 65 who work in the various departments and must be in constant contact in order to deal with regular changes that occur hourly in order for a smooth day to day running of the business. There is a need for everything in the one place that can be accessed constantly. This product can be used as a means of communication among staff to save on time. It is a simple product that will have an interface that will engage the user and display all information laid out in a simple format and can easily be used by all ages.

Competitors:

Though, we are not without competition but we are the only 3D physical pin board on the market. Most of our competition is online, Apps, website and features on smart tablets. Our main direct competition being the “classic organiser boards” and our indirect competition being the Apple iPad.

MiBoard Organiser Boards
Profitability / Turnover €40,000 (Sales Year 1) €98,000
Pricing €200 €10-€40
Product Range n/a ·       Whiteboard

·       Blackboard

·       Corkboard

·       Calenders

Strengths ·       Easy to use

·       All features in on place

·       Cheaper than iPad

·       Can be mounted on to a wall easily

·       Cheap

·       Well known

·       Easy to use

·       Non complicated

Weaknesses ·       More expensive than organiser boards

·       One hotel could require more than one

·       Information can get lost easily

·       Cannot store information securely

·       Muliple baords are need for various task/ duties/ information

In-Direct Competition:

Profitability / Turnover Apple
Pricing $187.6m (2016)
Product Range $457
Strengths ·       iPad

·       iPhone

·       Macbook, Macbook Air, Mcbook Pro

·       iPod

Weaknesses ·       Strong brand image

·       Hight profit margin

·       Effective innovation process

·       Expensive

·       Small size

·       Too many features

·       Cannot mount on to a wall

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Competitive Advantage:

Our product is unique as we are the only product of our kind on the market, there is no other digital organiser board. Our unique features and easy to use interface will set the product on a higher advantage to its competitors. Though we are more expensive than the traditional organiser boards we feel our features are worth paying for and people will see that.

Place/Channels or distribution/ Roots to market:

We will sell this product indirectly to the consumer. We will visit hotels and meet with managers and staff members in order for them to test our product and see first-hand the features offered. Future hopes would be to sell in electrical stores across Ireland where there is a test product like that of a tablet or laptop so that potential customers and future target markets, eg, home owners can try this product and buy in the store.

 

Section 4: Finance:

 

Pricing

From our market research we have decided to price our product at €200 per MiBoard.

The cost to make one board is €100.50-€102.00:

  • Raspberry Pi ZERO (€5)
  • Raspberry Pi USB hub (€2)
  • Capacitive Touchscreen (€80)
  • Small HD Camera (€10)
  • Frames (€0.50 – €5)

Sales

  • Sales assumptions. Provide details of the sales assumptions.

 

Month 1 2 3 4 5 6
Sales € 10 10 20 20 20 20
Month 7 8 9 10 11 12 Total
Sales € 20 20 10 20 20 10 200

 

We expect our busy season to be March to August as hotels prepare for the seasonal trade. High volume of weddings, communions, social engagemnets and tourism in these months and preperation for Christmas in the hotel industry will start early August. We hope that our strong reputation will have been established by October in year one and our sale will climb for October and November.

 

Funding

 

 

Project Costs €31,827.88 Sources of Funding
Equipment/tools  €1000 Promoter  €0
Heat & Power  €700 Family/Friends  €20,000
Telephone & Internet  €480 Banks/ Credit Union  €10,000
Vehicle Expenses  €2,014 Loan repayments (€460.99 x 12)  
Advertising & Promotion  €1,600
Materials €20,100    
Office Supplies & Postage  €400  Total Funding  €30,000

 

We will each invest €5,000 each and have family and friends the remainder to reach €20,000. We will also take out a personal loan from the credit union of €10,000 with a 9.9% interest rate over 2years.

 

 

 

 

 

Capital Costs

 

Capital Items Owned Value €
Equipment/tools  €1000
Fixtures & fittings  €0
Vehicle  €0
Security & safety  €0
ICT  €0
   
Total:  €1000

 

 

Fixtures & fittings: We have a premises free of charge for a work-shop for year 1, please see imagery in appendix of this.

ICT: Adam will run all ICT related aspects to the company

Equipment/tools: We will budget €1,000 for tools in year 1

 

Fixed Costs

 

Fixed Costs
Rent & Rates  €0
Heat & Power  €700
Telephone & Internet  €480
Vehicle Expenses  €2,014
Advertising & Promotion  €1,600
Office Supplies & Postage  €400
Loan Repayments €5,531.88
Total:  €10,725.88

 

Car Insurance: €1,254.00

Petrol:  42.3 MPG (11.5 per litre) @ €1.25, we expect to travel 7,000km (€760) in the first year in order to visit hotels to demonstarte our product.

Advertising: €20 for business cards, social media at a cost of €80 and face to face selling in hotels. We will budget €1,500 for radio advertising.

Office Supplies & Postage: Depends on sales volume

Sundries: 10% of profits will be drawings

 

Variable Costs

 

Variable Costs Costs Per Annum €
Year 1x 200 Boards  €20,100
Materials (Cost per board)  €100.50
Wages (0-200 Boards= 0 wages, 200+ will be €10.13 per board) €0
Total:  €20,100

 

It takes 1 hours to manufacturer 1 board= €9.15 + Employers PRSI @ 10.75%= €10.13 per Board

Overall year one:

Costs: €31,827.88

Potential Sales Return: €40,000

Potential Profit year 1: €8,172.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

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