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Description

Our Idea is : Eco receipts it is an app proposed by 2 students are eager to increase the
levels of recycling and reduce waste caused by receipts. We have worked on an app that will
allow individuals to keep hold of receipts as electronic copies in case they need them in the
future. The app will have a small convenient cost which will help generate an income. Most
importantly, we are trying to raise awareness of the importance of recycling even as small as
receipts; and the huge impact it has on society. I want you to write for me part 5 : 5. OWNERSHIP &
MANAGEMENT PLAN . part 6 : BUSINESS MODEL &
RISK ANALYSIS. and part 7 : . FINANCIAL PLAN . From the business plan report . I will upload the rubric. and some previouses of other students work to get an idea.I will also upload a report about our idea to get more information.College of Business Administration
Fundamentals Of Innovation And
Entrepreneurship – 033200
Fall semester 2022/2023
Business plan
Presented by:
• Asma Ibrahim Almulla U20100043
•Madiya Alketbi U20103998
•Noof Saleh Bafleh U19104322
•Masa Ahmad Yaser U20104156
Presented to:
Dr. Yazid Abubakar
Abdullahi
•Mirna kasouma U19200383
•Tala abdulrahim shrem U20102290
•Zeena Sameer aziz U20103785
TABLE OF CONTENT
01
Executive summary
02
Business overview
03
Market analysis & competition
04
Marketing plan
05
Ownership and management plan
06
Business model & risk analysis
07
Financial plan
EXECUTIVE SUMMARY
Green Community is an online educational institution that offers a variety of courses in
sustainable and environmental topics to students all over the world. Our sponsors include
UNICEF, Dubai Cares, Emirates Red Crescent, and others. Green Community is a nonprofit
organization that aspires to offer low-cost education and work opportunities after graduating. Our
sponsors have a significant impact on our path in offering our students with volunteering programs
based in the United Arab Emirates and internationally.Given that tuition costs were so exorbitant
that some students were unable to finish their studies or even have the opportunity to do so, the
green community was created to assist students in pursuing their careers. As they work for the
organization, students will be able to receive tuition cost discounts, as well as a monthly payment
plan that will relieve some of their financial stress.
Many students attempted to apply for student loans to pay for tuition fees or even scholarships, but
because there were so many applicants, the scholarships were unable to support all of them, and
they were rejected, which led them to give up on their careers and dreams. However, with the help
of the Green Community, students are now able to apply since it only costs a small sum of money
and can select the appropriate course for themselves. they will gain experience from the
volunteering programs and be able to add it to their CVs, which will be advantageous for them in
the future. Flexible scheduling will allow students to attend at a time that is convenient for them,
and with the assistance of our team, they will be able to contact the doctors whenever they like.
BUSINESS OVERVIEW
A non-profit organization with two cooperatives
1.
An online educational institution where students from all over the world can enroll and share
their creativity and ideas with one another, as well as gain a better understanding of the
environmental, social and economic impacts. However, after completing the courses students will be
offered job opportunities.
2.
Students are required to participate and volunteer, and they will have the option to do so in
different countries to gain more experience and knowledge of other countries
SALES
Green community is based in Dubai, but our
educational institution is available online,
allowing people from all over the world to
participate. We have partnerships who will
financially help us in supporting the system and
volunteering. We will, however, pay the
students on a monthly basis and offer them job
opportunities both within and outside of the
UAE.
VISION
Make future and solutions to address and improve
the environmental, social, and economic impact
MISSION
To empower, educate, and inspire the next
generations to be involved in sustainability as well
as to allow the community to share their energy,
creativity, and ideas
MARKET ANALYSIS &
COMPETITION
Green Community is a new age educational platform which aims to invest in the ideas and creativity of
students. It is a platform which shall not only empower students studying in and around UAE but students all
across the globe. Green Community is a revolutionary platform for all age students as there are no any
restrictions for joining and onboarding the platform. Green Community’s implementation shall be carried out
in phases as more and more countries will be added in the list, but students who shall be initially benefitted
would be students studying in various educational institutions such as colleges, schools and universities in
and around UAE.
There is stringent competition in the education industry in the UAE as well as in the overseas market. The
prime competitors in UAE include new age digital learning solutions as well as existing educational
institutions. Xpert Leaning and Edufic Digital are the primary new age digital learning companies which
shall be major competitors in UAE along with conventional academic institutions such as Pinnacle
Education, Course Takers, Unique World, Meccademia, My Private Tutor and Ascentria PACE. Similar is
the situation of the competitive market in the global scenario wherein companies such as Udemy, Coursera,
Byju’s and UnSchool shall be the prime competitors to Green Community.
Green Community is different from its competitors in a number of ways because it boasts of a number of
USP’s. This is because Green Community is a unique platform where students can co-work on sustainable,
eco-friendly and innovative projects with our sponsors such as Masdar and Beeah even while studying and
this service isn’t offered by any of the competitors. Students shall be empowered to participate on a
voluntary basis when compared with other institutions where students are asked for compulsory participation
in institution run activities. Last but not the least, one of the major USP’s is how the students can get a
chance to open their own online store after they meet certain T&C.
The market positioning for Green Community shall be based on the product attributes and benefits strategy.
This is because Green Community offers numerous product attributes and value based services which will
distinguish Green Community from its competitors. Green Community’s activities grant it a unique market
aspect and its commitment to provide a more student centric education will garner the attention of the target
audience. Also, the stress on eco-friendly and sustainable education shall add on the brand value of Green
Community since sustainable education is the need of hour when the world is battling climate change and
global warming. Ultimately, Green Community is one of the unique educational institution of the modern
day with a unique and important cause.
MARKETING PLAN
1
PRODUCT
Green community is a nonprofit business started by seven University of Sharjah students with the
purpose of low-cost online education, protecting the environment, minimizing loans, conserving
natural resources, and helping people to get an education.We will help make it possible for
outstanding students to enter their chosen fields of study at affordable prices, as well as to give them
access to the channels and platforms they need to develop their skills and become successful
entrepreneurs. Our aim is to share the community’s enthusiasm, creativity, and ideas while educating,
inspiring, and generating interest in environmental issues among the next generation. Our goal is to
develop future plans and solutions that will have a positive influence on the environment, society, and
the economy.
2
PLACE
Green community employs direct to the website, which means that every registration,
conversation or payment will be made through our website. Our company plans to improve and
update our website into an app. However, this will only happen if our company succeeds before the
deadline.
3
PROMOTION
Our company will have a potent arsenal of inexpensive, short-term marketing strategies to
draw in new customers and raise awareness of our startup company.Social media will be our
main tool for marketing our business. Without a doubt, social media marketing has a number of
advantages for both new and established firms. Regularly updating the appropriate social media
marketing strategy can lead to more traffic, improved brand loyalty, higher consumer happiness,
and much more.Tiktok and Instagram have been crucial in helping a business market itself,
which has increased demand for the existing company. We have chosen to promote our business
for the time being on social media, particularly Instagram and TikTok.
43
Priority SDG
MARKETING
To advertise our business, we will use different advertising methods starting from social media
platforms such as Instagram and TikTok to attract more people and introduce them to our product a
We will also make special offers for new customers and construction companies to implement our
website while they’re still being developed.
MARKETING PLAN
INSTAGRAM
TIKTOK
OWNERSHIP
Creative people who have new innovative ideas or solutions that can be converted into successful
projects are known as entrepreneurs, however, the work is not yet accomplished because it is just the
beginning. Working individually is exhausting and time-consuming. For that reason, the importance of
teamwork arises because businesses have several operations, objectives, and duties that must be
fulfilled to succeed, and as entrepreneurs, a team with diverse skills and specializations must be taken
into consideration for the success and growth of any business.
OWNERSHIP
The main goal of starting any business in the world is making money, however, green community is a
non-profit organization, separate legal entity that aims to provide social benefits for students who are not
able to pursue higher education in order to serve community rather than generating revenues. The
evaluation of the succuss of our business is by achieving our goals and missions.
TEAM RECRUITING
The success of any organization starts from its teams, and in green community, we make sure that we
hire candidates with the best qualities, talents, and experience that fit our mission, vision, and strategies so
we grow rapidly. And this indicates the significance of recruitment which is through various stages.
Firstly, we identify the positions that need to be occupied based on the needs of our operations and
determine the qualities and skills that meet our needs. Secondly, our website includes a portal with
intelligent tools where it shows the job vacancies. As well as employment websites like LinkedIn and
Indeed that will advertise the job opportunities we offer. The third stage is selection, which will be through
classifications our intelligent tools make by the answers applicants provide while filling out forms. The
fourth stage is contacting the top applicants to engage them which includes interviews. The interviews will
be through video interviewing software (HireVue) which will make the process easier, faster, and less
costly. Then we compare our candidates to the job requirement, so we make the hiring decision efficiently.
And the final stage of recruitment is the onboarding strategy.
OWNERSHIP
COMPENSATION
REWARDS
In green community, we believe that our employees are one of our main assets where the success of
our business stands which leads to increase efficient and effective productivity. for that reason, we
prioritize their satisfaction, appreciation, and recognition to motivate them. In our organization, we
implement the reward management program once goals are achieved, fairly for our employees according
to their efforts and values they add to the organization, by giving them additional pay, incentives, or
bonuses, recognizing them publicly, and giving them paid days’ vacation. However, our students also can
be rewarded if they pursue high grades or participate in eco-friendly activities and events by getting
discounts on tuition fees or learning materials. There will be a points system for our students where they
can collect points and get rewards based on the points they collected under certain conditions.
CULTURE
Culture plays a major role in the reputation maintenance and the development of any business, and in
green community we ensure to have a positive culture to attract talents, enhance engagement, drives our
business to succeed, and affects the happiness and satisfaction of our employees. Thus, creating a positive
culture that helps in business growth will be as follows:
Create a solid sense of teamwork: all team members work on the same objective and share the same
commitment, and every member is aware of their role and duty. trust and respect must be built between
group members. Finally helping each other because the team’s interest comes before their own.
Being aware of the differences in personalities of key people: people have different personalities and
understanding them is significant because it helps to improve the leadership, communication,
collaboration, and negotiation within employees and the organization.
Strengthen internal communication: there are different forms of communication (verbal, written, and
digital) that employees should practice in order to flow the information effectively and encourage
collaboration and engagement among employees and managers.
Being receptive and open to suggestions and ideas: the tendency of openness to ideas is critical because
it gives others the chance to share and expresses their ideas and solutions, which diversify the
productivity of our organization, enhances innovation, and makes the workplace environment flexible.
Target creative and innovative candidates: ideas come from creativity which leads to enhancement and
encourages workers to think out of the box and lead the company to new opportunities, by recruiting
candidates with different skills and diverse cultural backgrounds.
MANAGEMENT PLAN
MANAGEMENT
TEAM
Green community management is a group of specialized individuals who ensure that business
operations are effectively accomplished. Green community basic management categories are as follows:
IT DEPARTMENT
This department is the most important in our institution since all our services will be provided 100%
online so we ensure that the members of this section are highly professional and expert. This department
effectively delivers the most updated technological infrastructure for the administration department of our
institution as well as our academic staff and students. IT department is responsible for supporting users
(students and faculty) technically, fixing issues, and installing the best software and hardware needed.
Also, it protects the network of our organization and repairs it.
FINANCE & ACCOUNTING DEPARTMENT
This department is in charge of making sure that all of our activities are supported by effective
financial management and financial controls. Also, it provides the best financial services in order to
develop a financial strategy for our start-up. Bookkeeping, financial analysis, budgeting, and business
planning are the main tasks of this department.
ADMINTRATION DEPARTMENT
1. HUMAN RESOURCE
This department is responsible for hiring the high qualified employees and faculty members, training
and developing them, ensuring the creation of the best environment for our employees, and maintaining
the culture of our organization.
2. ADMISSION
This department is responsible for the evaluation of our applicants, filtering applications, handling the
procedures, tracking them, and organizing the required documents of our applicants.
MANAGEMENT PLAN
3. STUDENT’S EMPLOYMENT DEPARTMENT
This department is responsible for offering the best internships or job opportunities for our students
and graduates in order to adapt their energies and knowledge.
INTERNATIONAL RELATIONS
our programs are available for all students around the world, so this department supports our programs
by building, agreements, relationships, partnerships, and sponsorships locally and globally with accredited
organizations.
MARKETING
This department is responsible for raising the profile of our organization, involving the largest possible
audience in our organization, promoting our institution, posting news of our achievements, and
maintaining our reputation up.
SUSTAINABILITY
This department is responsible for ensuring that our organization is operating in accordance with the
standards of sustainability in education and generating profits from sustainable sources. We will outsource
employees for this department. .
BUSINESS MODEL
RISK ANALYSIS
Risk
How to prepare
Can we afford the starting costs
We must save enough money before starting the project
How can we be famous and popular, and be the one
who wins
Starting advertising early, and we publish a good
quality picture of ourselves before starting the project
Can we achieve our goal and deliver the information’s
that will make our world green
We will provide doctors with high certificates so that
the students will know what they should know and
achieve our goals
FINANCIAL PLAN
Business Plan
Fundamental Of Innovation and Entrepreneurship
Executive Summary
The goal of our software is to provide a platform for small businesses to start, grow, and manage
their operations. Anyone can use the subscription-based application to create an online store and
sell their goods or services. On any given day, a business owner can showcase things, engage
with customers, accept payments, ship a product, and manage their day-to-day finances and
operations.We plan to create an app where all small businesses may join and showcase what they
have to offer, allowing people to become aware of their presence in the market. Furthermore,
rather than their product or service being restricted to the grounds of their home or a tiny shop,
these firms would move to a larger and more technical platform. Moreover, consumers are more
likely to look at an app that offers a variety of items and services than an app that only offers
one, and this element improves the likelihood of people purchasing from those firms. Also, we
have to look at the fact that those businesses are small, so they most likely have small capital;
because of that, they cannot waste much money on marketing, so by them being in this app
anytime the business would have a new product or a promotion it would be known to the
customer through the app. This will save them a lot of money that they can use instead of on
something else.
Our business’s model is B2B (business to business), in which a firm sells its product or service to
another business, and our main goal is to provide a proficient platform for various small startups. The structure of our company is straightforward because there will be few people in
charge. It consists of the CEO, CTO (chief technology officer), product manager, CMO (chief
marketing officer), CSO (chief sales officer), and CFO (chief financial officer) (chief finance
officer). Our marketing strategy is to promote our business mainly through digital PR such as
display ads, social ads and google search ads. Digital PR efficiently translates everything that is
wonderful about traditional PR — press coverage, events, outreach, and thought leadership
content — to the internet world. This company also plans to use blogging as a potent sales and
marketing tool to help gain the necessary exposure.
Business Overview
Our app falls under the e-commerce industry. E-commerce (electronic commerce) is the practice
of purchasing and selling things via the Internet or through online services. Mobile commerce,
electronic funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and automated
data gathering systems are all examples of e-commerce technology. E-commerce, which is the
largest sector of the electronics business, is driven by technical breakthroughs in the
semiconductor industry. The e-commerce industry has been one of the most transformational
businesses in the world because it provides comfort, convenience, and personalisation that
traditional brick-and-mortar buying techniques sometimes lack. E-commerce has become the
backbone of most businesses, and it will continue to shape how we purchase and sell in the
future. Our vision is to create a convenient and efficient platform for small businesses owners to
grow their business with ease.
Market Analysis and Competition
For our business, we have narrowed down the consumers that will be targeted, and this would
explain the characteristics of our market. Our target market will be; both be male and female
since our app would have many businesses that provide many different kinds of products. The
income level of our customers does not matter as our app would include various products with
varying prices. The users that would more likely be using our app are individuals between the
ages of 18-45 as people above the age of 45 would less likely use an app to purchase items as
they would prefer the traditional face to face interaction. Additionally, the app would only be for
individuals living in the United Arab Emirates when it comes to the geographic location as a
start.
Through the study we have done, it is clear that our app has a demand and feasibility. Looking at
the last ten years, we see online shopping apps taking over. Online shopping has skyrocketed as
it went through significant growth, and even for so after the covid-19 pandemic. Seeing as it
shows a more convenient approach to acquiring goods and services than the more traditional way
of acquiring goods and services through going to stores/places physically. Having different
products and services come right to your door is what people want and are looking for nowadays,
so the success rate of our business is high. Small businesses would also have an opportunity to
directly sell their products on a platform designated just for them and interact with other
businesses which will decrease their chance of going bankrupt. Furthermore, operating through
an app saves so much time, money, and resources. In addition, if our business were to fail
potentially, our losses would be minimal since what is being bought from our app is from
businesses unrelated to us.
Almost all of them deliver overseas when it comes to online shop apps. So, it is both
present in the UAE and overseas since worldwide shipping has become a normal phenomenon.
However, if we had to pin it down, our main competitors would be Amazon and Noon. Starting
with Amazon, they are the most successful online shopping app globally as it is thriving,
especially more so in the last few years due to covid-19. Amazon is also a very well-known and
influential company; they have a significant grip on the market, which is why they are our
biggest competitor. A closer-to-home example would be noon; they are also an online shop app;
however, it is only centered in 3 countries; United Arab Emirates, Saudi Arabia, and Egypt.
Moreover, they are relatively new compared to Amazon. Nevertheless, it would be fair to say
that noon is our main competitor as they are based in the United Arab Emirates, and so are we.
Furthermore, when it comes to what they offer, we are pretty similar because they provide not
only various products but also food and drinks. In addition, because of those facts, this makes
those two companies our primary competitors.
There is no app identical to our app; that is why it is unique in many ways. The unique
part about our online shopping app is that the products and the services that are going to be
provided are ones of small businesses. The difference between our online app and other online
apps is that our app contains small businesses which are there to grow and make it big. Ones who
have not yet reached success and fame. On the other hand, other apps with different businesses
operating within them have already reached a certain high level of success and are predominantly
well known. To add to that. Our app would have small businesses that provide products, foods,
drinks, and services, which is all in one app that makes it different from other apps since no other
app provides all those in one template.
Sales and Marketing Plan
A Startup Marketing Strategy would be utilized as a marketing plan because of its
capability of fitting the limited startup budget besides promising faster growth as compared to
the traditional marketing strategies. However, there is a need for incorporating certain strategies
to make this plan a success. For instance, posting on social media would act as a viable sales and
marketing strategy and would significantly help in acquiring the most customers since more than
3 billion people are using social media worldwide (Setiyawati et al., 2021). Besides, most of the
social media networks like Twitter, Facebook, and Pinterest enable businesses to pay for
exposure and traffic. For instance, Facebook Ads can allow a startup to create Ads appearing
within the news feeds of users or even within the Facebook’s website right column.
This startup will also consider using Paid Search Advertising, which would enable the
company in buying laser-targeted traffic from various search engines like Bing and Google.
Kaiser and Berger (2021) observe that Bing Ads and Google AdWords are among the most
leading paid search networks, of which both of them feature keywords that are targeted with a
cost-per-click (CPC) pricing model. Utilizing either of such networks can significantly enable a
startup in creating custom ads that can appear within search results, particularly when an
individual searches for a related keyword to the business.
This startup also intends to use Blogging as a powerful sales and marketing strategy to
assist in generating the needed exposure. Besides, a research by Noelia and Rosalia (2020)
determined that businesses with online blogs are capable of generating about 126% more leads as
compared to their rivals without blogs. A blog can as well enable a startup in positioning itself as
a leading source while at the same time attracting more organic search traffic to the company’s
site. Therefore, this startup would consider publishing the appropriate content for the audience to
read as a means of creating an effective business blog on its website.
Ownership and Management
In order to manage the app, a role distribution is needed through the organization; hierarchy.
Hierarchy is the dividing individuals in an organization into according to their power, functions
and role. Generally, orgainzation is ranking individuals/groups above one another depending on
their authority in the organization. It’s done in order to know who will make decisions, and who
will follow them.
In our business, which is a small start-up business, hierarchy is simple as there are only a couple
people managing the organization. It includes CEO (chief executive officer), CTO (chief
technology officer), product manager, CMO (chief marketing officer), CSO (chief sales officer)
and CFO (chief finance officer) (Figure ). These are the top job roles that must be filled before
hiring other employees. If there is no one to fill a certain role, a single employee can do the job
of two roles. This can be caused by lack of employees or lack of finance (unable to hire an extra
employee.). However, this may cause the employee to overwork and lack clarity of their position
in the company.
CEO
CTO
Product
CMO
CSO
CFO
Figure . Hierarchy of start-up.
CEO
A CEO holds the most important position in the company; they are at the top of the hierarchy
and face of the company. Tierra Wilson, founder of Lovely Impact, has advised any start-up
business to find the CEO of a company first before hiring the other employees. A CEO would
usually look at the overall picture of the company and has the authority to determine the
organization’s vision, mission, direction and culture. In big companies, they determine only
important decisions. However, since our business is a start-up, they’re expected to be involved in
all the decisions the company will make; they are involved in the everyday functions.
Additionally, a study has shown CEOs influencing the organization performance by 45% and its
profits by 14%.
CTO
Seeing as the business of our app heavily depends on technology, a CTO is needed. They are the
CEO’s right hand as they help them find the organization’s goals, and scheme to push the
company into the next step. CTO’s responsible for technology and development of the app. They
are required to constantly evaluate and improve the system of the app to make sure it does not
crash or lag. At the same time, they must search for ways to keep the system up-to-date while
considering everything from hardwares to softwares. As our business is a start-up, CTO’s need to
be involved in all the stages of developing technology of the app including coding and designing.
After setting up the app’s system, a team can be hired later as the business grows, to help CTO’s
in their job- distribute the work between them as the CTO will be overloaded with work.
Product Manager
After the CEO determines the vision and product’s strategy, they are to be managed by a product
manager. Product manager is responsible for identifying the target of the app and making sure
it’s delivered to them. They have to make sure an audience (market) needs the product because if
no audience is identified, the business will surely fail. Additionally, they’re required to identify
the product’s price depending on the size of the market identified, production cost, sales cost and
value of the product. Product managers are to match the value of the product with its intent. The
intent of the app will depend on the type of the features the product manager will include and
how these features are to benefit’s customer’s experience. Therefore, product managers and
CTO, are to work together on setting features of the app (so that both employees don’t waste
their efforts).
CMO
An effective marketing strategy (after doing research) is set by CMO. A strategy is needed to
increase the demand and growth of business. For effective marketing strategy, CMO must use
digital marketing as a main marketing median. They need to attract and maintain a firm
customer’s base, create a brand identity and make the company profitable. A creative employee
must be hired for this position; they need to create content out of the box that will stand out from
other conapmay’s in the same market. As a strat-up, it might be difficult in creating a successful
brand as the marketing strategy could require more financial aid than the budget determined.
CSO
CSO is responsible for selling the product. CSO is required to reach out to potential clients
through emails or calls and sell the product to them. In our case, they are to reach out to small
businesses willing to join the app or encourage stable/big companies to invest in the app.
Therefore, CSO need to have good communication skills and use a befitting median. Software
skills is an important skill needed for a CSO in a strat-up. They will need conviction and
reasoning in order to push clients into signing with the company. This will require confidence,
resolution and profound understanding of the company’s mission and culture.
CFO
CFO is another important position in a strat-up business. They are responsible for the financial
status of the company; taxes, salaries, loans, debts, everyday necessities and dealing with clients.
In the start-up business, they will help maximize the funds the business already has along with
making plans for the company’s expansion. Additionally, they are to analyze business loss and
make counter attack plans to prevent further loss. At the start an account can fill in the job of
CFO as the CEO will be the one to grasp financial issues of the companies. However, as the
business grows, a CFO will be needed to grab the attention of future investors.
Financial Plan
1-How much money is needed to start your business?
The cost of designing an app ranges between 50,000 dirhams to 100,000, depending on
the complexity of the design and number of screens, the development process, the quality
assurance phase, the number of functions and features, the complexity of features, the
complexity of the database, the number and complexity of 3rd party integrations, and the
implementation of security.
2-What is the selling price of your product/service per unit?
Since our business is about an app that companies buy it to put their own products, so
each product is a company. company is selled for 300000 dirhams. And 5000 products in this
company are sealed each month, the variable cost per unit would be 60 dirhams.
In one year we seal 60,000 products from each company in the app so approximately we
gain 3,600,000 dirhams from each company .
3-What is your breakeven?
Business Breakeven= (60 / 299,940) = 12.002)
Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit)
Break even is the point where your total revenue (sales or turnover) equals total costs
The fixed costs are those that do not change no matter how many units are sold
hen determining a break-even point based on sales dollars: Divide the fixed costs by the
contribution margin. The contribution margin is determined by subtracting the variable costs
from the price of a product
4-Prepare cash flow projections (to help you plan for the future)
– Each year we expect to gain more than 3,600,000 dirhams because the variable cost is
60 dirhams each month And the company is selled for 300000 dirhams with 500 products in a
month .
5-Prepare profit projections (to help you plan for the future)
5 years from now we expect that the customer demand will increase as a result the
companies will would do like to put their business in the app, so we should increase the capacity
of our app in order to fit more companies than now a days, and every. year we should redesign
and re-engineer our app to keep up with modern era.
6-How do you plan to source this finance?
– The Cost of Finance, Attached Risk, Dilution of Control, and Flexibility of Repayment.
Operation Plan and Risk Analysis
A significant operational task and process for a startup is to create and implement an effective
business plan in place. This is because establishing a business plan is involved with utilizing all
the information that can be gathered for formulating a winning strategy. Such a business plan
should be capable of identifying the weaknesses and strengths of the startup, while also
providing details of how the company would make the most of opportunities while minimizing
the associated risks (Oliva et al., 2022). A comprehensive business plan should consider
including business objectives, the company’s marketing plan, financials, strategies,
organizational structure, in addition to industry and market analysis.
A startup should also consider using the selling and manufacturing of its products or
services as key operating tasks to help in producing its revenues. In this case, Vedula and Fitza
(2019) argue that sales activities can mean selling the startup’s own in-house manufactured
products that are supplied by other organizations. Besides, dividend income and interest cannot
act as part of the startup’s overall operational cash flow since they are always not regarded as
important operating activities as they are not part of the organization’s main business activities.
Using analytics and tracking is also part of an operational activity or process that a
startup should consider using. For instance, using Google Analytics can act as a powerful tool to
enable the startup to track anything from conversions to straightforward website visits
(Setiyawati et al., 2021). Besides, within today’s increasing digital world, it is crucial for any
startup in having a web presence, of which Google Analytics should often be utilized as an
essential part to analyze its performance in addition to making data-driven decisions.
A startup should also consider initiating the various tasks of operations management as it
is mainly involved with the management of the processes and operations of a business. Some of
the tasks that should be performed in this case are such as supply chain management, forecasting,
delivery management, product design, in addition to quality control (Kaiser & Berger, 2021).
Therefore, it is necessary for an operations manager to have excellent coordination,
organizational, and people skills in addition to being tech-savvy.
The Risks Involved in Startups and Strategies for Mitigating Them
Most startups are faced with liability risks of which they are always legally liable for
their employees’ actions and products. It means that if anything does not go as expected, then the
owners of the business would be on the hook to pay for the damages, which may result in the risk
of financial as a result of liability lawsuits (Noelia & Rosalia, 2020).Therefore, a startup can
mitigate such a liability risk by obtaining a comprehensive business insurance policy, especially
from a reputable organization like T.S. Peck Insurance. This would help in covering up the
damages to clients’ properties as well as the associated legal fees with fighting employees’
compensation claims and liability claim.
Startups are also likely to be faced with product risks. In this case, some products
produced by a startup may fail in providing the needed material gain to consumers. Besides,
most startups are also fond of not taking enough time for carefully understanding and explaining
the value of their products to consumers, and are hence at high risk of losing everything after the
productions, especially if they are not able of selling their wares (Setiyawati et al., 2021).
Therefore, a startup should consider mitigating product risks by developing a comprehensive
business plan with a clear enunciation concerning the value of the startup within the local market
context. This can significantly assist attract investors, develop effective marketing plan, as well
as generating excitement among customers.
Financial risks can also affect startups because most entrepreneurs do not necessarily take
their own money for covering all the associated startup costs. Therefore, they can seek out for
loans from banks and other lending institutions, which requires taking up a certain level of
financial risk (Vedula & Fitza, 2019). Therefore, financial risks can be mitigated by maintaining
positive relationships with investors and lenders.
Work Distribution
Somaya – Ownership and Management
Samar – Business overview and Executive Summary
Moaza Alia – Sales and Marketing Plan
Amna Roudha – Operation Plan and Risk Analysis
Reference
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Kaiser, M., & Berger, E. S. (2021). Trust in the investor relationship marketing of startups: a
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Kenton, W., (2021). Corporate Hierarchy. Retrieved from
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atus%20or%20authority.
Khamees, N., (2020). Team Members you Need for your Startup. Retrieved from
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