Restaurant App

The analysis of my five-year plan assumes that the period of ranges from the beginning of the prospect to the end of the fifth year. The plan takes into consideration all cash flows that get calculated at the end of every year. The restaurant app does not entail buying or selling of any tangible goods. Therefore, the estimated taxation levels will be 30% of the total revenue minus expenses (total revenue- expenses). The operations of the company will proceed in several major stages.

The development of the restaurant app begins with an initial amount of $4500. The amount covers the payment for any assistance in the development process as well as the equipment needed in the development process for the restaurant app. The first stage involves gathering the necessary data required for the development of the restaurant app. It entails searching for the best restaurants, meals. It also involves collecting data from prospect clients on the issues that the app can tackle. It also involves a thorough assessment of effective market penetration. These expenses consume a total of $1200 for the entire activity.

The second phase entails development of the restaurant app and introduction to the market. The second step also entails the proper documentation of the restaurant app. It involves patenting to prevent theft of ideas by other firms. It will consume about roughly $100. The business will aim to acquire a business license that will cost $350 and find liability insurance for the company at an expected cost of $400 per head with a total of six members listed. The business targets when the market for restaurants is high that is the summer vacation as such the entire activities of development and registration should end by May. These activities mark the end of the first fiscal year with a cash overflow of about $1650.

The third phase involves the establishment of the restaurant app in the market. The business aims to observe the trends in the market for the application (Riggs, Bedworth& Radhawa, 1977). The business will focus on maximizing the set marketing ploys to develop awareness for the application in the second step. One among the strategies employed will include the development of a video to get posted into youtube it will cost an estimated $640. Participation of the restaurant app in competitions will cost about $150. The internet required to carry out online advertisements will sum up to $500, and the total overhead costs will sum up to $360. While taking into consideration all these expenses and the revenue accrued minus the taxes the business has a total cash flow of $1250 at the second fiscal year.

The fourth phase will include an assessment of the impact of the marketing strategies of market penetration and app usage. The business will carry out a study entailing the number of restaurant app downloads as well as access daily, weekly and monthly to estimate the usage of the app. The fourth stage does not require any financial investment. The fifth stage takes the results acquired in the analysis and implementing modifications to the system or the operations to improve the company’s revenue and reduce overhead costs. The fifth stage also focuses on maintenance of the restaurant app. The fifth year entails the years three, four and five of the business plan (Riggs, Bedworth& Radhawa, 1977). It follows the systematic application of performance evaluation, maintenance, and modification. The fifth step will ensure that the company has more than five thousand users and growing that will allow growth and diversification of the company. Each user will contribute a membership fee of $10 and an additional amount paid by the mobile servers for the use of the application amounting to $5 per person every month.

Details of alternative plans

The alternatives one, two and three will follow similar steps as that of the primary five-year plan other than a few modifications in each step to maximize the number of users.  The several modifications get done to the alternatives include

In alternative one, the business plan will follow steps one which involves clear visibility study of the all the factors that concern the development of the business. The development of the restaurant app will also be similar as that of the primary five-year plan. The alternative will employ a new marketing strategy that allows the users to use the application free of any cost for the beginning month after which they have to pay a premium. The charges for the premium will also reduce however the features of the application will limit to the necessary information.

In the alternative to the Restaurant, app model will add extra features to the application. The alternative will offer a free download however the access of the application will depend on the network provider. The alternative shifts the source of revenue business will deal with the network provider. Another modification involves the addition of resources to the application of rich media ad networks such as Greystripe that helps catch and retain the interest of my clients. The method applies the addition of resources to the marketing to build the number of customers in the company. The tactic targets long term effects rather than short term effects.

Alternative three also follows step one of the primary five-year plan that involves the study of the market to come up with effective strategies in the implementation stage. The third alternative also follows the second step of development and documentation of the Restaurant app. The third alternative, however, varies with the third and the fourth stages. After development and introduction to the market, the alternative allows the app to run for a gestation period while examining the changes in the market and the current trends (Park, 2002). The alternative then makes modifications to the app. The strategy consumes an extra $500. The alternative also introduces several more strategies in the marketing. The Restaurant app provides premium usage of the app for every ten users a client adds to the app. The plan seeks to broaden the client usage of the app to compensate for the amount lost acquiring these clients (Boehm, 1981).

Conclusion

For the Restaurant app to grow there is a need for the steady growth of the user base of the application in the market. The alternative that provided a higher customer attraction in the market brought about an increase in the revenue received in the company. However, the business incurred more costs and risks to achieve this growth. The application flourishes in densely populated areas full of young people within the age of twenty and the age of sixty.

 

References

Boehm, B. W. (1981). Software engineering economics (Vol. 197). Englewood Cliffs (NJ): Prentice-hall.

Park, C. S. (2002). Contemporary engineering economics (Vol. 3). Upper Saddle River, NJ: Prentice Hall.

Riggs, J. L., Bedworth, D. D., & Randhawa, S. U. (1977). Engineering economics (pp. 528-549). McGraw-Hill.

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