Business Plan

MAPS Business Plan Outline

Startups

A startup is an organization formed to search for a repeatable and scalable business model. Startups are often product-centric and characterized by innovation.

Contents

1. Executive Summary ... 3

2. Company Description ... 4

3. Industry Analysis ... 5

4. Products & Related Services ... 6

5. The Target Market... 7

6. The Competition... 8

7. Marketing Plan & Sales Strategy ... 9

8. Operations...10

9. Management & Organization...11

10. Long-Term Development & Exit Plan...12

11. Financial Data & Projections ...13

1.

Executive Summary

Mobile software development is the process of transforming existing software used by computers into software which can be used in any mobile device. It also refers to the creation of new software such as mobile web and mobile applications for mobile devices. Mobile software can be developed by using different platforms and programming languages based on the type of mobile device the software is being developed for. Different mobile devices use different hardware components; therefore, their mobile software and mobile applications have to be developed using different software architectures. Mobile software development is a difficult process because users of mobile applications have different preferences; therefore, mobile services providers have to develop applications based on the demand of the users. In consequence, extensive improvements to traditional systems development methodologies need to be done in order to keep up with the demand from the users of mobile systems.

Most of the systems being used are based on the model-driven software which has three different aspects for the development of the application: (1) the application itself and its structure, (2) the business logic and (3) the graphical user interface of the application.

2.

Company Description

MAPS Pvt Ltd, a Pune, India based company, will be a small to medium software firm, that will develop mobile applications on emerging platforms – Android and iPhone and Tablets. The company will be located at Kharadi , Pune, Maharashtra, India. Mission Statement

The company's goal is that of a multi-faceted success. Our first responsibility is to the financial well-being of the company. We will meet this goal while trying to consider; 1) Diversity and Equal Opportunity employment.

2) Acquire a 1% market share in the first year and establish a brand name. 3) Conduct business with no compromise on Ethics.

4) Innovation would be the soul of the organization. Development & Status

At Ideation stage currently.

Future Plans

3.

Industry Analysis

Mobile application industry is currently highly fragmented (excluding handset manufacturers) , comprising many small players and operating at thin margins. The Mobile application Industry Today

Mobile application industry has a potential to grow very fast and has a potential of growing to same or even bigger than PC Software.

The Volume of Smart Phones is growing fast, and Number of Smartphone Users is expected to grow to more than 1 Billion Worldwide by 2014.

Some statistics on SMART phone/TABLET sales:

As per http://www.famousbloggers.net/wp-content/uploads/2012/03/cumulative-ipad-sales.jpg ,

iPAD cumulative sales till Q1 ’12 is approximately 60 M and assuming Apple’s share as 50% , TABLET total sales would be 120M)

As per http://www.asymco.com/2012/02/16/ios-devices-in-2011-vs-macs-sold-it-in-28-years/ The iOS platform as a whole reached 316 million cumulative units at the end of last year (2011).

As per

http://www.macstories.net/stories/apples-q1-2012-quarter-recap-and-estimates/

The above figures indicate that the projection of 1 B by 2014 is quite realistic we are already close to 500 M mark.

Future Trends & Strategic Opportunities

4.

Products & Related Services

There is a wide range of application categories in the market today : Comics, Communication, Entertainment, Finance, Health, Software libraries, Lifestyle,

Multimedia, New & Weather, Productivity, Reference, Shopping, Social, Sports, Themes, Tools, Travel and Games .

MAP would focus on Productivity and Communication categories initially and later diversify.

The Products

The products would be developed initially for Android platform. Here are some technical details on Android

• Android Android is a Linux-based platform from the Open Handset Alliance, whose 34 members include Google, HTC, Motorola, Qualcomm, and T-Mobile. It is supported by over 34 major software, hardware and telecoms companies. The Linux kernel is used as a hardware abstraction layer (HAL). Application programming is primarily done in Java. The Android specific Java SDK is required for development although any Java IDE may be used. Performance critical code can be written in C, C++ or other native code languages using the Android Native Development Kit (NDK).

The products would be based on market research initiated by MAPS to study the requirements.

The product would be offered to a group of friends and family for initial beta testing before market release.

Services

MAPS will also develop expertise in services sector, off shoring of services in development of Mobile Applications.

Future Opportunities

These are to be identified yet. Due to rapidly evolving market it is little difficult to predict the exact opportunities at this stage.

5.

The Target Market

Initial market would be India and USA and marketing channel would be various portals on the net.

Market Location & Customers

MAPS’ products would target customer profiles of Individuals initially in the first year. Later, from second year onwards, Corporate Users, would also be targeted.

Market Trends & The Future

The Applications are not only a key to success of a mobile phone in the market, they are also key to sustainability of growth of Telecom business with new avenues of increasing ARPU (average revenue per user).

6.

The Competition

There are a very large number of developers, spread geographically across world. However, they are unorganized and targeting very small product development.

MAPS has a different vision, it plans to achieve the goals in an organized manner and be ready for the future smart phones. It will target products at a high maturity level and build up a brand in the process.

Besides fragmented small developer setups, the major cellular operators and handset manufacturers are also developing mobile applications.

Competitor's Profile

Competing with MAPS for the target market would be a large number of companies and it is not possible to list all here, but just for reference some top listed names in Android Market are :

Dennis Publishing Ltd, Bifrost Studios, Tuso Technologies, Arb Studios LLC, Kumar Mettu, Appstar Solutions, Indiagames. etc

Competitive Strategy

There are three major ways in which we will create an advantage over our competitors;

• Innovation in ideation of products

• Innovation in cost control while maintaining employee morale at same time We will develop a unique model to track market needs and wish list and translate the same into products.

Staffing Plan: We will Outsource Programming work to a local Mobile Software Development Company or Contractual Freelancers. Core Team would consist of Founders, Advisor and Key Consultants. Design , User Experience and UI would be owned by the Core Team.

7.

Marketing Plan & Sales Strategy

Market Penetration would be measured for the category in which MAPS is participating. Marketing Strategy

Traditionally the marketing strategy has been word of mouth publicity and online reviews and feedback and ratings.

We would follow the same approach. Additionally, we would also target campuses of schools, colleges and IT companies.

Future plans and Strategic Opportunities

We would be working towards tie ups with larger Organizations for outsourcing of their mobile application development requirements.

8.

Operations

Office would be presently at a residential apartment, Venkatesh Flora, Mundwa, Pune. This will be moved to an IT park after 2 years.

Hours of Operation

F

Employee Training & Education

The programmers would be contractual , they would be mentoring by experienced consultants in Core Team.

Systems & Controls

Quality frameworks would be implemented from DAY 1. This would be under direct supervision of the management.

9.

Management & Organization

Sandeep Jain is director of MAPS.

He has a good track record of experience and success in IT and in particular Telecom industry . His management style is innovative and in keeping with the corporate style outlined in the mission statement.

Compensation & Incentives

MAPS will offer competitive wages and salaries to all employees. There is no benefit package planned for first 2 years. But there will be some other long term incentives planned that will sustain motivation without adding to immediate costs of the company. Board of Directors

Sandeep is the only Director at present.

Consultants & Professional Support Resources

Outside consultants would be involved at intermittent periods to give a jump start and accelerate the development process.

Management to be Added

Project/Delivery Manager is to be identified and added to the team. Management Structure & Style

Sandeep will be the President and Chief Operating Officer. Ownership

Sandeep Jain and the stockholders will retain ownership with the possibility of offering stock to key employees if deemed appropriate.

10.

Long-Term Development & Exit Plan

MAPS is an innovative concept that targets a new, growing market. We assume that the market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation of quality, consistency and innovation, that will make us a leader in our segment.

Strategy

We will address unique positioning with the Apps arena and eliminate branding as “me too”. There is sufficient space for new comers as well.

Challenges

First Round of funding would also be a major challenge as the business proposal would be at a conceptual stage while seeking the investment.

Milestones

1st Year: Publish 5 medium size applications on Android and iOS platform and establish a Brand name and develop a core competency in the field.

2nd _{Year: Take the business to next level and acquire next round of funding.}

Risk Evaluation

With any new venture, there is risk involved. The success of our project hinges on the strength and acceptance of a fairly new market. Below are some obvious risks in this area.

- Keeping Pace with Moving target, fast evolving hardware and software - Evolve and Deliver a business model in aggressive schedule

- Maintaining and growing core competency and knowledgebase in an attrition prone industry

- Identifying potential application needs within India and similar markets is feasible but doing across geographies and cultures, would require scaling unchartered territories.

- Overlap of scope of any projects with anything coming out from giants like Google.

Exit Plan

Ideally, MAPS will expand to about 200 employee in the next 5 years. At that time, we will entertain the possibility of a buy-out by a larger IT company.

11.

Financial Data & Projections

Financial statements have been prepared for Costs projection as of now. It is a little early to estimate the assets (applications) value and project revenue from sales or services.

Total Costs Rs USD

1st Year Annual Costs 1,318,000 22,724

Total Monthly Costs 968,400 16,697

1st Year Annual + Monthly Costs 2,286,400 39,421

Year 1 Annual Costs Rs USD

Outsourced Development Cost for SMS Scheduler 500,000 8,621 Outsourced Development Cost for Meeting

Collaboration 500,000 8,621

Company Secretary Incorporation/Consulting Charges 10,000 172

Real Estate Agent 10,000 172

Office Furniture+Fixtures 100,000 1,724

Desktops / Laptop 60,000 1,034

Printer 6,000 103

Mobile Phone and TABLET for Testing 75,000 1,293

Accounting Services 10,000 172

Registration at Android Market Place 5,000 86

Insurance and Legal Stuff 10,000 172

Training 10,000 172 Total

UPS 20,000 345 1,318,000 22,724

Year 1 Monthly Recurring Costs Monthly Costs Annual Costs Annual Costs (USD) Consultant Charges 10,000 120,000 2,069

Office Rental+Utility Bills 20,000 240,000 4,138

Stationery 200 2,400 41

Mobile Application Testing Services 5,000 60,000 1,034

Communication Costs-Internet 1,500 18,000 310

Communication Costs-Telephone 1,500 18,000 310

Local Travel 15,000 180,000 3,103

Other Office Supplies/Consumables 10,000 120,000 2,069

Office Attendant 8,000 96,000 1,655

Meeting / Event / Seminar /

Conferences 3,000 36,000 621

Market Surveys 3,000 36,000 621

Periodicals 500 6,000 103

Lunch with Advisors 3,000 36,000 621

Total Rs USD 968,400 16,697 Deposits Rs USD Office Lease 60,000 1176

Start UP Stages

Technical

Feasibility

Self Assessment

Market Analysis

Pre-Seed Funding ($50K)

Business Plan

Commercial Grade

prototype in 1

Year

We are here

12.

Appendices