Business Proposal Engineering Assignment Sample
Industry
A steady increase in the home services industry has been occurring in the United Kingdom for some time now. Home services have taken on new life with the advent of the internet, digital payments, and smartphones.
The UK spent the most on mobile apps in the whole of Europe!
Every service that customers want delivered to their door step is available in the market to choose from. Customers can choose from hundreds of apps.
That’s the crux of the problem! Customers don’t have a single brand name they can trust. A service does not exist that guarantees quality across different kinds of services. It is at this point in the industry that the need for a Super App emerges.
Concept of Super Apps
The super app platform is a generic term for various services offered by an organization. Chinese messaging app WeChat has grown into a super app after starting out as a messaging service and expanding into payments, cabs, shopping, food ordering, and cab services. A mall would serve as a physical world analogy for a super app, as it offers retail space to different brands and shops across various industries and markets. In addition to PayTm, Truecaller, OMNi, Yandex Go, Rappi, Line, etc., there are several other popular apps in the market today all around the world.
Every single app begins as a single purpose application and then evolves into a super application on the basis of its growth trajectory. The Indian digital payment company PayTm, for example, evolved from a digital payment service into an app that offers shopping, banking, train and flight ticket booking, food ordering, and various other services. There is a clear need for an industry-specific super app that can meet unmet needs in the UK home services industry, given the current level of competition.
Competitors
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Home improvement is the segment where most of the competitors are located. Beauty and personal grooming also have a lot of competitors. There are also apps that provide personal shopping services, specialize in electrical and plumbing work, or do other types of work.
Among them, they all share a characteristic: they are highly specialized. There is a market gap between all of them, even though they all have good consumer ratings. Customer complaints include:
- Various services are offered by each
- Customers must compare different apps and keep track of them
- A single point of contact does not exist
- Customer choice is hampered by variable rating scales and variable prices
- The delivery of services is not standardized
- There is no opportunity for all-encompassing customer loyalty or brand recognition
Needs Evaluation
Home services are increasingly being searched for online over time. The following example shows recent changes in search terms.
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Consumer behavior was clearly altered during the COVID 19 pandemic. The apprehension and restrictions on going outside prompted them to look for more services to be delivered to their homes. The UK has also been following this trend, which has been evident globally. As a result, the industry clearly needs new services. However, establishing a reliable brand which can guarantee price, quality, and safety is a greater necessity. This is what the proposed venture is all about.
Solution
The digital version of an integrated Yellow Pages can solve all of the above problems!
These three points are essential to developing an inclusive Super App that is capable of meeting all customer needs and capitalising on the identified market trends.
Market Analysis
PESTLE
Political
- The political stability of the country has been a great strength; however, Brexit (the UK’s withdrawal from the EU) has led to uncertainty and debates on the political front.
- The UK maintains very good rapprochement with the US, and many other nations. It is a permanent member of the UN Security Council, and a great power, with considerable influence on global economic, cultural, military, scientific and political affairs.
Economic
- The UK has the sixth largest economy in the world in terms of nominal GDP.
- Steady growth in household income after the pandemic.
- Steady rise in disposable income for the past 5 years.
- Following the pandemic, the Bank of England pumped an extra £100 billion into the economy in 2020.
- The current corporation tax rate for company profits is 19%.
Social
- By 2039, the population is expected to reach 74 million and continue to grow as births continue to exceed deaths.
- The UK is one of the top 10 countries perceived to have the most educated population in the world.
- Internet use and online ordering are on the rise.
Technological
- London holds a great deal of financial and technological institutions, as well as IT talent.
Legal
- Employers are legally responsible for protecting maternity and paternity leave, minimum wage, holiday pay, sick pay, and some other rights.
- The Employment Act 1996 protects rights of employees
Environmental
- The zeitgeist is increasingly focused on the environment.
Porter’s 5 Forces
Barriers to Entry
- Before operations can begin, the whole application and backend must be developed.
- Set up partnerships with vendors locally across several locations.
- Gain substantial user base to merit expansion.
- Need to develop social capital among consumers and vendors
- Overall, barrier to entry is quite high.
Consumer Power
- Access to the services online already present.
- Access to alternatives
- Low cost of switching
- Consumer power is high
Supplier Power
- Vendors have existing businesses with existing client bases
- Suppliers have existing supply chains
- But there are several suppliers available
- Supplier power is low
Threat of Substitution
- There does not exist any single alternative to the proposed business
- Threat of substitution is low at the current time.
Competitive Rivalry
- Competitive rivalry in the online home services delivery is high.
- No integrated player present, however, individual companies have established market share that will have to be disrupted.
- Competitive Rivalry is high
Business Plan
Key Partners
- Vendors
- These are service providing companies that wish to provide services through our app
- High Power, High involvement
- Individual Workers
- These are individual tradesmen who offer their services through the app.
- Main growth potential
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- Low Power, high involvement
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- Technical Support
- They help in developing and maintain all aspects of the app and its functionality
- High Power, high involvement
- These will be all in house employees
Key Activities
- Growth
- Improving App experience
- Improving quality of Service
- Increasing the scope
- Adding more vendors
- Adding more customers
- Expansion of services
- Increasing reach geographically
- Increasing the number of segments in which services offered
Key Resources
- Service Quality Checks
- CRD Checks for all workers
- Ensuring standardized level of service delivery
- Standardized Rates for services
- Marketing
- Local and National marketing campaigns
- Target less fulfilled spaces first then provide add-on services
- Build a brand name and develop customer loyalty through subscription offers, loyalty programs and referral benefits
- Community Building
- In app messaging services
- Technical Team
- Maintaining and updating the apps
- 24/7 technical support
- Customer Data
- Collect processed customer data to finesse services and marketing efforts
- Collect feedback for new services in-demand to be offered
Customer Relationships
- Feedback and Rating
- On iOS App Store and Google Play store
- Through in app customer interactions
- Customer Support
- 24/7 customer support
- Human customer service executives for escalated issues
- Online automated support for common issues
- Loyalty and Referral
- Discount offers for repeat customers
- Referral benefits to promote worth-of-mouth
- Build customer satisfaction and retention
- Cross service marketing
- Subscription
- To ensure customer loyalty, offer subscription services for regular users at reduced costs
- Set up long term relationships
Channels
- Mobile App
- In app feedback and messaging
- Tracking user behaviour data to target advertising
- Social Media
- Targeted marketing
- Generalized feedback collection
- Tracking brand image
- Two-way interaction
- Referrals
- Generate positive word-of-mouth
- Advertisements and Marketing
- Traditional media marketing as a convenient alternative available online
- One stop shop for all services
Customer Segments
There are three major customer segments, that we have identified broadly.
The first is the Young Adult category, which is the young energetic employed person between the ages of 18-45. They are dedicated to their work and have lees time to go out and seek the services online. There main issues are
- Time management
- Convenience
- Flexibility
- User Experience
The second Group is that of seniors. They are aged 50 and above, employed or retired. They are less likely to seek these services on a regular basis outside. They are more likely to enjoy these services if they are delivered to their homes. They would prefer to know one app that does it all for them.
The third is the broad genera group who are tech savvy, look for offers online, find discounts and use them. These have tremendous potential for word-of-mouth. They are also active on the social media. Main issues for them are price sensitivity, brand value, and product quality. They are also the most difficult to retain.
Value Proposition
For Customers
| Feature | Benefit |
| One-stop shop | All services available at one app |
| Online payment | Easier to manage payments |
| Upfront quotes | No hidden fees, more easy to compare |
| Flexible on scheduling | Easier to order services according to customer’s needs |
| Door step delivery | Lower prices, no establishment costs and surcharges |
| CRD check | Trustworthy and certified professionals |
For Vendors
| Feature | Benefit |
| Work time management | Allows the vendors and workers to set their own work times and we find the right clients for them |
| Training | Access to additional training and certification |
| Better Income | Higher wages by forgoing establishment costs of traditional brick and mortar stores |
| Support | Offer support for parts, accessories and know how to all vendors |
Marketing Plan
Product
- Identify and offer services in sectors that are underserved:
- Men’s grooming
- Tailoring
- Cooking
- Child Care and Health Care
- Shopping Assist
- Expand to compete with existing market players
- Women’s beauty and skin care
- Message
- Home Improvement
Price
- Focus on cost elimination
- Volume based price incentive plans with vendors
- Variable commission rates for repeat customers
- Offer discounts for new customers and referral credits for existing customers
- A cost focus approach in pricing
Place
- iOS App Store
- Google Play Store
Promotion
- Differentiation Focus
- One-stop shop for all needs
- Standardized service
- Safe and Secure
- For vendors and individual workers
- Flexible Work timings
- Reliable Work flow
- Standardized Rates
- For Customers
- Access to several types of services under one roof
- Early bird discounts
- Rewards for referrals and brand loyalty
- Easy search, easy pay, and easy delivery of services
Marketing Strategy
It will be necessary to hire marketing skills that are tailored to their urban services to make them stand out from the competition. Using this approach, we can develop a cohesive strategy which is universally applicable. For instance, we may approach the advertisement as follows:
Basic PPC or Search Ads
An advertisement’s main purpose is to direct you or your prospective customers to their desired or necessary destination. You can accomplish this with Google search ads. If you enter some keywords related to their website, you can see their search ads on the browser.
Furthermore, we will concentrate on consistent and steady SEO approaches in addition to Google search ads to get higher organic results.
Social Media Advertisement
Social networking sites are becoming increasingly popular among Internet users. They are an excellent tool for reaching out to the general public. By using Facebook and Instagram ads, they hope to reach every potential customer.
Video Advertisement On Platforms Like YouTube
We It will also be necessary to produce video content for the YouTube and Facebook spaces. Written content has a lower engagement rate and visibility than videos. It will also be necessary to keep a special focus on that aspect.
Paid Marketing via Social Media Influencers
One thing social media influencers have in common is that they have a huge following of genuinely trusting customers. So, sharing your service with influencers on social media and asking them to promote it is a very clever move that we need to make right from the get-go.
SWOT Analysis
Financial Projections
Balance Sheet
| ASSETS | ||||||
| Current Assets | Initial balance | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Cash and short-term investments | 50,000.00 | 1,85,955.05 | 1,88,022.86 | 3,00,027.37 | 4,96,308.21 | 6,59,071.54 |
| Accounts receivable | 3,000.00 | 3,000.00 | 3,000.00 | 3,000.00 | 3,000.00 | 3,000.00 |
| Total inventory | 25,000.00 | 25,000.00 | 25,000.00 | 25,000.00 | 25,000.00 | 25,000.00 |
| Prepaid expenses | – | – | – | – | – | – |
| Deferred income tax | – | – | – | – | – | – |
| Other current assets | 5,000.00 | 5,000.00 | 5,000.00 | 5,000.00 | 5,000.00 | 5,000.00 |
| Total current assets | 83,000.00 | 2,18,955.05 | 2,21,022.86 | 3,33,027.37 | 5,29,308.21 | 6,92,071.54 |
| Property and Equipment | Initial balance | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Buildings | 20,000.00 | 20,000.00 | 20,000.00 | 20,000.00 | 20,000.00 | 20,000.00 |
| Land | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 |
| Capital improvements | – | – | – | – | – | – |
| Machinery and equipment | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 |
| Less Accumulated depreciation expense | 6,000.00 | 12,120.00 | 18,360.00 | 24,720.00 | 31,200.00 | |
| Total Property and Equipment | 40,000.00 | 34,000.00 | 27,880.00 | 21,640.00 | 15,280.00 | 8,800.00 |
| TOTAL ASSETS | 1,23,000.00 | 2,52,955.05 | 2,48,902.86 | 3,54,667.37 | 5,44,588.21 | 7,00,871.54 |
| LIABILITIES | ||||||
| Current Liabilities | Initial balance | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Accounts payable | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 |
| Accrued expenses | – | – | – | – | – | – |
| Notes payable/short-term debt | – | – | – | – | – | – |
| Capital leases | – | – | – | – | – | – |
| Other current liabilities | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 |
| Total Current Liabilities | 2,100.00 | 2,100.00 | 2,100.00 | 2,100.00 | 2,100.00 | 2,100.00 |
| Debt | Initial balance | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Long-term debt/loan | 6,00,000.00 | 4,90,325.02 | 3,75,714.66 | 2,55,946.83 | 1,30,789.46 | – |
| Other long-term debt | 1,00,000.00 | 2,00,000.00 | 1,50,000.00 | 1,75,000.00 | 2,25,000.00 | 1,50,000.00 |
| Total Debt | 7,02,100.00 | 6,92,425.02 | 5,27,814.66 | 4,33,046.83 | 3,57,889.46 | 1,52,100.00 |
| Other Liabilities | Initial balance | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Other liabilities (specify) | – | – | – | – | – | – |
| Other liabilities (specify) | – | – | – | – | – | – |
| Total Other Liabilities | – | – | – | – | – | – |
| TOTAL LIABILITIES | 6,02,100.00 | 4,92,425.02 | 3,77,814.66 | 2,58,046.83 | 1,32,889.46 | 2,100.00 |
| EQUITY | ||||||
| Initial balance | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Owner’s equity (common) | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 |
| Paid-in capital | 2,50,000.00 | 2,50,000.00 | 2,50,000.00 | 2,50,000.00 | 2,50,000.00 | 2,50,000.00 |
| Preferred equity | – | – | – | – | – | – |
| Retained earnings | – | 1,39,630.04 | 3,00,188.20 | 5,01,720.54 | 7,66,798.76 | 11,28,871.54 |
| TOTAL EQUITY | 3,00,000.00 | 4,39,630.04 | 6,00,188.20 | 8,01,720.54 | 10,66,798.76 | 14,28,871.54 |
| TOTAL LIABILITIES AND EQUITY | 9,02,100.00 | 9,32,055.05 | 9,78,002.86 | 10,59,767.37 | 11,99,688.21 | 14,30,971.54 |
Profit and Loss Statement
| PROFIT AND LOSS ASSUMPTION | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Annual cumulative price (revenue) increase | 0.00% | 4.00% | 8.00% | 12.00% | 16.00% |
| Annual cumulative inflation (expense) increase | 0.00% | 2.00% | 4.00% | 6.00% | 8.00% |
| INCOME | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Revenue | |||||
| Subscription | 5,00,000.00 | 5,20,000.00 | 5,61,600.00 | 6,28,992.00 | 7,29,630.72 |
| Sponsorship payment from vendors | 30,000.00 | 31,200.00 | 33,696.00 | 37,739.52 | 43,777.84 |
| Commissions | 4,00,000.00 | 4,16,000.00 | 4,49,280.00 | 5,03,193.60 | 5,83,704.58 |
| 0 | – | – | – | – | – |
| Total revenue | 9,30,000.00 | 9,67,200.00 | 10,44,576.00 | 11,69,925.12 | 13,57,113.14 |
| Cost of Sales | |||||
| Subscription | 3,25,000.00 | 3,31,500.00 | 3,44,760.00 | 3,65,445.60 | 3,94,681.25 |
| Sponsorship payment from vendors | 16,500.00 | 16,830.00 | 17,503.20 | 18,553.39 | 20,037.66 |
| Commissions | 3,20,000.00 | 3,26,400.00 | 3,39,456.00 | 3,59,823.36 | 3,88,609.23 |
| 0 | – | – | – | – | – |
| Cost of goods sold | 6,61,500.00 | 6,74,730.00 | 7,01,719.20 | 7,43,822.35 | 8,03,328.14 |
| Gross Profit | 2,68,500.00 | 2,92,470.00 | 3,42,856.80 | 4,26,102.77 | 5,53,785.00 |
| Non-Operation Income | |||||
| Rental | – | – | – | – | – |
| Interest income | – | – | – | – | – |
| Loss (gain) on sale of assets | – | – | 1,000.00 | – | – |
| Other income (specify) | – | – | – | – | – |
| Total Non-Operation Income | – | – | 1,000.00 | – | – |
| TOTAL INCOME | 2,68,500.00 | 2,92,470.00 | 3,43,856.80 | 4,26,102.77 | 5,53,785.00 |
| EXPENSES | |||||
| Operating expenses | |||||
| Sales and marketing | 15,000.00 | 15,300.00 | 15,912.00 | 16,866.72 | 18,216.06 |
| Depreciation | 6,000.00 | 6,120.00 | 6,240.00 | 6,360.00 | 6,480.00 |
| Insurance | 7,500.00 | 7,650.00 | 7,956.00 | 8,433.36 | 9,108.03 |
| Payroll and Payroll Tax | 21,000.00 | 21,420.00 | 22,276.80 | 23,613.41 | 25,502.48 |
| Property taxes | 2,500.00 | 2,550.00 | 2,652.00 | 2,811.12 | 3,036.01 |
| Maintenance, repair, and overhaul | 1,000.00 | 1,020.00 | 1,040.00 | 1,060.00 | 1,080.00 |
| Utilities | 5,000.00 | 5,100.00 | 5,304.00 | 5,622.24 | 6,072.02 |
| Administrative fees | 300.00 | 306.00 | 318.24 | 337.33 | 364.32 |
| Interest expense on long-term debt | 24,259.55 | 19,324.18 | 14,166.71 | 8,777.16 | 3,145.08 |
| Other | 1,000.00 | 1,020.00 | 1,060.80 | 1,124.45 | 1,214.40 |
| Total operating expenses | 83,559.55 | 79,810.18 | 76,926.55 | 75,005.79 | 74,218.40 |
| Non-Recurring Expenses | |||||
| Unexpected Expenses | – | – | – | – | |
| Other expenses | – | – | – | – | – |
| Total Non-Recurring Expenses | – | – | – | – | – |
| TOTAL EXPENSES | 83,559.55 | 79,810.18 | 76,926.55 | 75,005.79 | 74,218.40 |
| TAXES | |||||
| Income Tax | 45,310.41 | 52,101.66 | 65,397.91 | 86,018.76 | 1,17,493.82 |
| Other Tax (specify) | – | – | – | – | – |
| TOTAL TAXES | 45,310.41 | 52,101.66 | 65,397.91 | 86,018.76 | 1,17,493.82 |
| NET PROFIT | 1,39,630.04 | 1,60,558.16 | 2,01,532.34 | 2,65,078.22 | 3,62,072.78 |
Cash Flow Statement
| Operating activities | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total |
| Net income | 1,39,630.04 | 1,60,558.16 | 2,01,532.34 | 2,65,078.22 | 3,62,072.78 | 11,28,871.54 |
| Depreciation | 6,000.00 | 6,120.00 | 6,240.00 | 6,360.00 | 6,480.00 | 31,200.00 |
| Accounts receivable | – | – | – | – | – | – |
| Inventories | – | – | – | – | – | – |
| Accounts payable | – | – | – | – | – | – |
| Amortization | – | – | – | – | – | – |
| Other liabilities | – | – | – | – | – | – |
| Other operating cash flow items | – | – | – | – | – | – |
| Total operating activities | 1,45,630.04 | 1,66,678.16 | 2,07,772.34 | 2,71,438.22 | 3,68,552.78 | 11,60,071.54 |
| Investing activities | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total |
| Capital expenditures | – | – | – | – | – | – |
| Acquisition of business | – | – | – | – | – | |
| Sale of fixed assets | – | – | – 1,000.00 | – | – | – 1,000.00 |
| Other investing cash flow items | – | – | – | – | – | – |
| Total investing activities | – | – | – 1,000.00 | – | – | – 1,000.00 |
| Financing activities | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total |
| Long-term debt/financing | – 9,674.98 | – 1,64,610.36 | – 94,767.82 | – 75,157.38 | – 2,05,789.46 | – 5,50,000.00 |
| Preferred stock | – | – | – | – | – | – |
| Total cash dividends paid | – | – | – | – | – | – |
| Common stock | – | – | – | – | – | – |
| Other financing cash flow items | – | – | – | – | – | – |
| Total financing activities | – 9,674.98 | – 1,64,610.36 | – 94,767.82 | – 75,157.38 | – 2,05,789.46 | – 5,50,000.00 |
| Cumulative cash flow | 1,35,955.05 | 2,067.81 | 1,12,004.51 | 1,96,280.84 | 1,62,763.32 | 6,09,071.54 |
| Beginning cash balance | 50,000.00 | 1,85,955.05 | 1,88,022.86 | 3,00,027.37 | 4,96,308.21 | |
| Ending cash balance | 1,85,955.05 | 1,88,022.86 | 3,00,027.37 | 4,96,308.21 | 6,59,071.54 |
Conclusion
Based on the Market Analysis presented and the key trends observed, the proposed business is a worthwhile investment. Given the right capital boost and a proper management, this business
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