Business Proposal Healthy lifestyle consultation Case Study Solution
Financial Estimations
App designing is a complex procedure, because it requires equipment as well as experts’ knowledge along with some heavy investment. The total projection for the project is Rs: 1,160,000. The heavy investment is comprised of the total fixed cost, which will be minimized by increasing the number of sales. App designing would require approximately Rs: 300,000, because this app will be comprised of heavy features with daily functions, along with number of options for booking and consultation. (See appendix 4 for project estimations).
Following estimation has been projected for the proposed application,which has the tendency to harness the company with the given problem.
| Preliminary High-Level Estimates | Rs |
| App & website including 3 email account + online purchasing | Rs300,000 |
| Domain & hosting 1 year | Rs15,000 |
| Dash board login data entry | Rs240,000 |
| Legal fees & documentation | Rs40,000 |
| Laptops | Rs50,000 |
| Salary | Rs305,000 |
| Marketing online social media + SMS | Rs80,000 |
| Total Fixed Cost | Rs1,030,000 |
| Contingency | Rs30,000 |
| Initial Working Capital | Rs100,000 |
| Total Project Cost | Rs1,160,000 |
Project Team
To cope up with this complex problem;the company is going to develop a new application which would not only be user friendly but will also add value to the company’s consulting services.
For developing this application; the company would need to hire some employees based on the project requirements. The company would need app developer for application designing, IT experts for managing day to day requirements, finance manager to deal with project financials, number of subordinates for smooth operational running and finally the sales managers to boost its sales. The following schedule provides us with the number of employees required for the project, along with the estimated salaries for the employees:
| People | Responsibilities | No. of employees | Salary |
| Sales manager | Sale promotions
Customer care Review plan Control marketing |
1 | 40,000 |
| Finance manager | Budgeting
Making financial statements Report to owners |
1 | 40,000 |
| I.T manager | Web designing
Quality control Finishing of task |
2 | 35,000 |
| Developer | App designing
Training Mange day to day app activities |
2 | 40,000 |
| Subordinates | Report to supervisor
Focus on project goal Completion of task |
5 | 15,000 |
Release Plan and Road map
A Road map has been made to analyze that how the selected strategy would work to achieve the set targets. The Road map identifies the process that should be followed with the alignment of chosen strategy in order to achieve the desired outcomes. (M Svahnberg, T Gorschek, R Feldt, R Torkar, 2010)
A high-level release plan along with timely road map has been made to analyze that how the project would be completed. The road map consists of timelines along with the provision of a complete years’ day to day operation running. Additionally, the release plan comprises of the full project plan, which indicates to the complete project objectives and the infrastructure along with bi-figuration from start to end point. A detailed road map along with the release plan indicate that the project would require to adopt the defined procedure for its completion. The set procedure propose an app development, its marketing, staffing and regular maintenance on timely basis.(See appendix 2 for detailed release plan and road map).(KH Bennett, VT Rajlich, 2000)
Milestones
The proposed budget will require some adjusted milestones with time specification. The Milestone consists of the start and end dates of suggested activities, which would be accomplished on timely basis for a smooth project execution.
| Activities | Milestones | Duration |
| A | Startup planning and market search | 15 Days |
| B | App development | 15 Days |
| C | Approval from investors | 3 Days |
| D | Budget and costing | 10 Days |
| E | Arrange IT manger and staff | 5 Days |
| F | Advertising and promotion | 10 Days |
| G | Execution | 2 Day |
The above chart proposes the set milestone for timely completion of the project by considering all the possible activities.
Projected Cost and Revenues
The five-year projection plan has been made to analyze the revenues that would be generated with the help of this proposed technology. It suggests a huge increase in number of customers and sales, because of the user-friendly technology. It also suggests a positive increase in the total profit with the short increase margin. All the estimations are based on some assumptions which propose some percentage increase for the following years, based on some research analyzation.
| PROJECTIONS | ||||||
| 1 | 2 | 3 | 4 | 5 | ||
| Sales (Units) | 10,000 | 11,900 | 14,161 | 16,852 | 20,053 | |
| Sales Price (PKR) | 129 | 142 | 149 | 156 | 164 | |
| Sales | 1,290,000 | 1,689,800 | 2,109,989 | 2,628,848 | 3,288,756 | |
| Cost of Sales | 5% | 800,000 | 840,000 | 882,000 | 926,100 | 972,405 |
| DIRECT LABOR | 10% | 103,000 | 113,300 | 124,630 | 137,093 | 150,802 |
| Gross Profit | 387,000 | 736,500 | 1,103,359 | 1,565,655 | 2,165,549 | |
| Operating Expenses | ||||||
| ADMINITRATION | 5% | 10,000 | 10,500 | 11,025 | 11,576 | 12,155 |
| COMMUNICATION | 2% | 20,000 | 20,400 | 20,808 | 21,224 | 21,649 |
| UTILITY EXPENSE | 5% | 61,800 | 64,890 | 68,135 | 71,541 | 75,118 |
| DEPRECIATION | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | |
| MISCELLANEOUS | 2% | 5,000 | 5,100 | 5,202 | 5,306 | 5,412 |
| PROMOTIONAL | 10% | 80,000 | 88,000 | 96,800 | 106,480 | 117,128 |
| Total Operating Expense | 196,800 | 208,890 | 221,970 | 236,128 | 251,462 | |
| EBIT | 190,200 | 527,610 | 881,390 | 1,329,527 | 1,914,087 | |
| Taxes | 30% | 57,060 | 158,283 | 264,417 | 398,858 | 574,226 |
| Net Income | 133,140 | 369,327 | 616,973 | 930,669 | 1,339,861 | |
Project Risks
In this project, some risks are also involved, which should be handled on time for achieving the desired targets. The proposed technology is new for the customers and they are unaware of the usage of this new technology. To resolve this issue, the company should arrange some awareness programs and write some informational articles on their website in order to address the proper usage of this app to its targeted customers. This will help the customers and make the technology user friendly. Additionally, the app should involve some basic features, which should be very simple to use so that the users wouldn’t face any hardship while using the app.
In this competitive world, it would be difficult for the company to attract a huge customer base, so for averting this essential risk; the company should analyze its rivals’ strategies for targeting their customers, which will help the company to know the expected moves of its rivals and eventually the company will be able to take a forward step after making every strategically more meticulously than its competitors.
Project Limitations
This project involves some limitations, which should be considered for handling. The project should be completed on time. There are set standards for completing all proposed activities with the limited budget specifications. The important part in this project is app designing by consuming limited budget, which should address and include more advanced features. Moreover, the number of staffs to manage this project is also limited with limited budget allocation.
Appendices
Appendix: 1(SWOT Analysis)
| Strengths | Weaknesses |
| · Number of expert athletes and fitness trainers.
· Innovative service. · Our contractors are our partners. · First app in the area of medical consultation. · Providing up to 5% discount to our customers.
|
· Lack of application awareness. · No experience of customers. · New application. · Weak touch point.
|
| Opportunities | Threats |
| · Growing number of customers and patients.
· Creation of loyal customers. · Cost efficient technology. · Internet users. · Growing sedentary lifestyle. · New culture of innovation.
|
· Increasing competition.
· Economic factor. · Increase of general sales tax.
|
Appendix: 2 (High level Road map)
Appendix: 3 (Communication planning)
Appendix: 4 (Road map estimates planning)
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