" Creation of the 'near plumber' application: " - Entrepreneurship - Module " Near Plumber is an application that facilitate - Mohamed Tirani
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Professional Project Entrepreneurship - Module « Creation of the 'near plumber' application: » « Near Plumber is an application that facilitate communication with plumber » Prepared by: Ahmad Nemer Mostafa Instructor: Mohamed Tirani (2017-2018) 1 |P ag e
Table Of Contents 1. Executive summary 0 2. General overview :Industry and Startup 0 3. Market research and External / Internal factors analysis 0 3.1- Marketing research and External factors analysis 0 4. 3.1.1- Primary market research 0 3.1.2- Secondary market research 3.1.3- PESTEL analysis 0 3.1.4- Industry competitive intensity study (Porter’s Forces) 0 3.1.5- Key success factors in the organization's environment 0 3.2- Internal study and decission making : 0 3.2.1- SWOT Analysis 0 3.2.2- TWOS matrix 0 4. Startup execution stages 0 4.1- Conception stage 0 4.1.1- Business Model Canvas 0 4.1.2- Value proposition canavas 0 4.1.3- Adapted economic model 0 4.2- Quality managment system study 0 4.2.1- Processes description 0 4.2.2- Evaluation tools 0 4.2.3- Risk assessment and prevention 0 4.3- Marketing Plan 0 4.3.1- Strategic Marketing study (Segmentation,targeting,positionning) 0 4.3.2- Operational Marketing (4 P of the marketing mix) 0 4.4- Financial study 0 4.4.1- Cost structure 0 4.4.2- Profit structure 0 4.4.3- Provisionnal result 0 4.4.4- Financial analysis 0 Bibliography 0 2 |P ag e
Appendics 0 1. Executive Summary The NEAR PLUMBER is an exciting new service that offers both employees and costumer an easy and efficient communication and fixing service. An extensive part of our company work is based around providing our customers specialized and professional plumbers in and around the area with service with an application about 5 or 6 mg on phone. My service consist 10 country around nabateyye city (nabteyye, nabateyye fouka,zebdin, harouf, dweir , ansar,zawtar al sharkeyye, zawtar al gharbeyye,toul, kafar roman), this countries are included on google map to let the costumer and the plumber to know the location which to visit. we provide the best mod of plumbers, taking into consideration the customer needs, comfort, safety and entertainment at low cost and flexible plumbers schedules. The owner of the application will be me since it doesn’t need a lot of money. I believe that we will be the best and the most used application all Over Lebanon by 2025. The paid money will be online on my application. 3 |P ag e
2. General overview : Industry and Start-up Description -As a civil engineer student my business will be in building structure roads etc .. So that I chose near plumber as a part of civil engineer, I chose a mobile application industry to facilitate the demands of the costumer at any problem to be face in plumbing system in their own houses companies, schools, universities … -near plumber is absolutely a growth business industry since I can add more cities in my application, I can go to other fields such as electricity, tiles, painting. This growth will be due to the satisfaction of the application and the income money each month. -Moreover growth of cities and population increase our plumbing work starting from small plumbing problem to huge and big plumbing work. Our company is high on safety of work, new equipment's is demanded from our plumbers every year if needed, plumber’s sessions given by engineer and sanitary companies. We carry out regular scheduled time based servicing to our Plumbers and customers. We fully understand the importance of safety and therefore make sure all our plumbers are professionals and specialized. Not to forget that safety and satisfaction is what we deliver and our customer pleasure is our business. 4 |P ag e
3. Market research and External / Internal factors analysis 3.1 Market Research and External factors analysis 3.1.1- Primary Market Research I think my primary researches would be urban expansion of building. population in cities Urban expansion Population 3.1.2- Secondary Market Research My other researches will estimating the number of plumbers in each area to be recovered. Estimating plumbing problems in each area I want to recover. Sanitary companies in Lebanon. Some sanitary goods which can advertise on my application as paid ADS 5 |P ag e
3.1.3- PESTEL analysis The environmental influences on the company into six main macro-environmental categories: Political, Economic, Sociological, Technological, Ecological and Legal. Impact Time Category Possible factors Business impact Opportunity /Threat frame Political pending tax reform -will effect on plumbers adopted by my application since Opportunity /Threat work will increase and tax too Increasing international trade Sanitary goods cost less which encourage consume to buy opportunity agreement causing much work for plumbers Enhancing public health -pollution of water and soil is caused by plumber problem opportunity policies when waste water goes through water and soil Economic Decrease of growth of -danger in all field Threat economy Unemployment rate People will fix their plumbing problem with their hands Threat and many will learn to be a plumber Social Increase in population It will cause increasing in plumbing system problem Opportunity since more we use which will cause more work and money. Widening wealth gap Will cause more advanced plumbing system which will Opportunity cost more and have more problems to fix in future And uses of technology which enhance to download my application Technological Service business software -keep in touch with technology market threat updates 6 |P ag e
Legal local health regulation -if plumbing system worked wrongly may cause a lot of Opportunity 6 month diseases in our life so professionalized plumber is needed Ecologic Climate change -climate change may cause some plumbing problems Opportunity 2 years due to expansion and contraction of pipes… PESTEL Analysis – Study Result Years Category 1 2 3 4 5 Political Economic Social/Sociocultural Technological Ecologic Legal Indications for the result Highly risky Risky Not Risky Good 7 |P ag e
3.1.4- - Competitive intensity study in the industry 1. low switching cost – strong force 2. moderate number of buyers – moderate force 1. Cost of application –strong force Customers/Bu yers New Entrants 2. Unemployment people – weak force Strong Power Weak 1. new idea which not consumed by any before -weak force Substitutes or Substitution Competitive Rivalry Public Power 1. Universities, schools, municipality’s Strong regulations - strong force Strong Strong 2. Sanitary companies – strong force Suppliers 1. Big family suppliers – strong force strong 1. Large number of competitors – strong force 8 |P ag e
3.1.5- Key success factors in the industry Each force of competition can be countered by a series of elements, which constitute as many KSF when this force is preponderant. Force of competition Elements to counteract it Threat of substitutes o Improved quality for application o Fair price for both plumber and customer o Take into consideration the comments and rating system for each plumber Threat of potential entrants o Build good relationship with municipalise o Guarantee the work if done wrong and redo without money Bargaining power of buyers o Have a better quality (companies ADS) / price ratio. o Honesty and work guarantee for good reputation Bargaining power of suppliers o Establishment of transfer costs (monthly subscription(plumbers, obligation or orientation according to the schools) Role of public authorities o Adaptation of international certifications (ISO 9001 'quality of services') o Have cooperation agreements or links with prestigious sanitary institutions. 3.2 – Internal study and decission making: 3.2.1- SWOT analysis Environmental scanning can influence an organization's strategy by creating both threats and opportunities. However, the structure of the environment does not in itself explain the success or the strategic failure: The differences between the organizations involved must also be taken into account, ie. Internal strengths and weaknesses must also be analyzed in order to finally reach strategic recommendations . 9 |P ag e
Analysis of internal and external factors of the startup Strengths (Internal Factors) Opportunities (External Factors) An ambition hardworking team Sanitary companies which will support us to use their goods Family support (money, words …) Lot of problems in plumbing system and lack of communication Easy access to the application between people and plumbers Trust of people Municipalities which will work with to solve people problems easily Low cost amount Adding other field and cities Weaknesses (Internal factors) Threats (External Factors) Gain trust of people Less awareness about harmful result of wrongly plumbing system Bad internet and Google maps doesn’t cover all places work or problems Honesty of plumbers I work with Software recommendation and help 10 |P age
3.2.2- TWOS Matrix : The TWOS matrix is built from the SWOT analysis conclusions or it allows to generate strategic options that correspond to different combinations of internal and external factors. The TWOS matrix Opportunity points Threat points S / O: Use forces to seize opportunities: S /T : Use forces to avoid threats: Strengths Points Link companies with our application Recommend some personal question by plumbers More demands for adopted plumbers to be showed on application to be trusted Simplify the access of customer with easy platform Monthly application revision When visiting see people other problems than plumbing issue Rating system Security system W / O: Minimize weaknesses to seize opportunities: W /T : Minimize weaknesses to avoid threats: Weakness Points Event in municipalise, schools, universities Certificate from sanitary companies to be given to Encourage companies to ADS on application my team plumbers Widening my relationship with some targeted people in cities which can support us in money, honesty … 11 |P age
4. Startup execution stages 4.1- Conception Stage 4.1.1- The "Business Model Canvas" Key partners Key activities Customer relationship Customer segments Family and friends Plumber service mobile feedback for all people aged more than 12 years since plumbing Companies Sanitary ADS is necessary for all building Municipalities (advertisement) Key resources Distribution channels people payments Mobile App -companies ads Advertising -plumbers adopted by application -product marketing 12 |P age
Cost structure Sources of income Software Visa card Employers Account marketing for the application Cash if necessary 13 |P age
4.1.2- The value proposition canvas It represents the group of products and services that creates value for the customer. It aims to address an unmet customer need and improve its current situation. Collaborators side Arrive on time (plumber) Fair price Professional plumber Tasks Easy payment (application) Wait a long time Unsafe fixing of the problem Obliged by specific plumber in the city Pains Lack of communication between people and costumer Communicate with plumber by application Get direction Find the plumber (by CV inserted to be professional) Desired gains Fixed and fair price 14 |P age
Value Proposition Side (Product / Service) -Save time -Professional and specialized plumber with the problem that face him Characteristics -Rating system of the products or services Instant booking Assigned plumber Cost system Pain Relief -plumber smart phone service (android/ios) -Trusted companies to buy our plumbing products from and to be linked with application. Gains Creator --Visual map 15 |P age
4.1.3- Adapted Economic Model The adapted economic model: -percentage income money to the plumber from the costumer -ADS from companies. -subscription fee from plumbers. 4.2- Quality Management System Study The "PDCA" method, also called the Deming wheel, is adapted to the creation approach and the implementation of the platform, which has helped to: o Better understand the needs of applicants. o Implement the processes necessary to achieve these needs. o Measure the satisfaction of these applicants and evaluate the performance of the processes implemented. o Make improvements and corrections decisions of the platform processes. 16 |P age
4.2.1- Processes description Process Title Process Actors Process Description Process Remarks Documents/Resources Registration All people Who’s not in need of plumbing system in his -full name home today? Application of plumber should be -phone number with all people. The amazing thing about cell -location on Google phones is that they are no longer just used for map calling or texting. Then, what are the positive uses of this application? Steps: -Click on the check plumber -See who is the nearest plumber to your location -Choose the plumber you want do to his rating or whatever -Enter your location on Google maps to go to -fix the problem then pay buy visa card or cash Registration Plumber 1- The user create new account and present all necessary - Credit Card Number -5 % from the paid money documents .A verification by telephone number are used in - cv + name of engineers from customer place via SMS verification code. he worked with 2-Credential information’s (Username & Password) are -location send to actors via email. -full name, age …. -monthly payment 30 $ 3-plumber should pay a simple fee to be adopted by our -experience years - each plumber application (Via Visa Or Master Card are used in place.) -15% for big plumbing project from municipalise 17 |P age
4.2.2- Evaluation tools Quality objectives have been set with performance indicators for each of these objectives, the purpose of which is to compare them with the measured results. Table of objectives Goal KPI Formula Target Frequency of measurement 150 costumer -15 costumer at first month /6month 2 customer should download our Max the costumer number At the end of each quarter -5 plumbers /first month application /3day/first 3 month 10 plumbers /6 month Level of customer Resolve all customer complaints 1 complaints costumer / 10 costumer 90 % At the end of each quarter satisfaction Maximize risk prevention 2 plans is enough Level of security should be > 90 % 0 At the end of each quarter Average number of buyers Maximize profit Revenue > cost 300$/year At the end of each quarter of our services or products Amount of the budget Amount of budget spent / Total amount of Respect the expenditure budget spent compared to the
4.2.3- Risk assessment and prevention Potentiality Impact The risks The causes Potential impacts Preventive action -Disconnection of the internet in Lebanon. -Loss of trust among users / On mobile application: -Failures or technical problems in the hosting customers -Adapt an emergency plan or the mobile Moderate Moderate application can work for some services server or in the platform itself. -lose of ADS companies Unavailability of the platform offline internet by using email On mobile -hackers attack payment application. -bad reputation of the platform Customer changes his mind The service Loss of trust among users / Costumer should pay 15$ if he recommended a plumber to the location he Moderate The customer refuses to accept presented to the customer does not meet his customers Frequent demand. or pay the service after requests (quality, cost, Interns confirmation). Financial losses (plumber, confirmation. application, employers ) If there is a lot of people want specific Loss of trust among users / Privacy in a way plumber cv wouldn’t be plumber that will cause losing of time and customers shown for very far people so that cant call serious him high High demands on plumber maybe other plumber in application will Financial losses (plumber, leave. application, employers ) 19 |P age
4.3- Marketing Plan : 4.3.1- Strategic Marketing (segmentation,targeting and positioning ) Customer Target Segmentation: The adapted segmentation variables differ for each of the collaborators: Plumbers People: all people that may have plumbing problems in their houses companies... Municipalities Universities and schools Targeting : Targeting variables adapted for: Plumbers Parents 20 |P age
Adult people Ngo s who cares about environment and people health People aged >12 years The positioning : Competition: The competition will be with the trust of people and nothing else since a new idea The other competition will be with the plumber who work lonely in his city and refuse to be adopted by any. Competitive Analysis 21 |P age
Me Competitor A Factor Weakness Point Strength Weakness Point Strength points over 5 Points over 5 Points Points This service is for Unique idea that may 2 Have a historical Individual work which may 2 all people not be accepted by relationship with cause him lot of work that Products/Se rvices people people in his city can’t handle alone free application It may cost a little bit 2 All the income -time 2 download but some more than plumbers goes to him Price extra paid plumber who work individual to pay for us Can guarantee work none 4 none If any problem happen can’t since we don’t want fix for lack of time and Quality to lose our good response picture in community Selection 22 |P age
Me Competitor A Factor Weakness Point Strength Weakness Point Strength points over 5 Points over 5 Points Points Easy to use and call Be afraid of our 2 Customer any plumber he service Service or after sale want service Plumber adopted No experience 2 Good experience none should have As a person on market Expertise experience Events and New on market and 2 Moderate Work alone so all 1 advertisement everything is new reputation responsibilities is his duty if Company should give us a people afraid of any problem happens it cost Reputation good Reputation him a lot of bad reputation happens it cost him a lot of bad reputation Nabatieh as a start Not a lot building 3 The place he live construction projects Location 23 |P age
Me Competitor A Factor Weakness Point Strength Weakness Point Strength points over 5 Points over 5 Points Points And there is a lack number of plumbers Reorts by medias, Languages dificulities 2 pages on facebook Sales Method … Reviewed at stated Not evaluated 2 intervals Credit Policies Can make any ADS for any Advertising company to increase our incomes 24 |P age
4.3.2- Operational Marketing (4 P of the marketing mix) The marketing mix: "The marketing mix (sometimes referred to as a market plan or a marketing policy) refers to the coherent set of product, price, distribution and communication decisions of a company's or brand's products. Product / Service Policy: Provide plumbers to fix people problem in their house. Provide plumbers for government and municipalities projects in cities Provide work for many unemployed people such as cce engineer, plumbers … Provide a paid ADS for sanitary companies to display their goods Safety and security of plumbing working Name, logo and slogan of the product / service : Product name justification: Near Plumber is the name of my application to show that the plumber is near to you and ready to fix your plumbing problem. Slogan justification: “We repair what your husband fixed“ A funny slogan to let people more curious to download our application. Logo justification: Having an attractive logo, with a colorful posters all around your country. Reports by different media, and creating own page on your social media surely will reach all costumers 25 |P age
Year 1 /$ Year 2 /$ Year 3 /$ Year 4 /$ Year 5 /$ Details Details Details Details Details Amount Amount Amount Amount Amount CPC($0.3 per People 1000x0.3=300$ 1500x0.3= People Facebook People People 750x0.3=225 People 2000x0.3 Plumbers click on Plumbers Plumbers Plumbers Plumbe Campaign average ) need $ 450$ =600$ Companies Companie Companies Companies rs 500 click to Cost Per Click s Compan (CPC)Click to our show site/Facebook page 500x 0.3 = 150 ies Cost Per Mile (CPM) $ Impression of our ads (site or page) Google Adwords Near 200$ per year Near 200$ per year Near 200$ per year Near 200$ per Near 200$ plumber plumbe plumber plumber year plumb per SEO (Search r er year Engine Optimasation) Events Plumbers 5 event/year = Plumbers 5 event/year = Plumbers 5 event/year = Plumbers 5 Plumber 5 People 1000$ People 1000$ People 1000$ People event/year s event/yea Schools Schools Schools Schools = 1000$ People r= Universities Universiti Universities Universities Schools 1000$ Municipalis es Municipalise Municipalis Universit e Municipa e ies lise Municip alise 26 |P age
Blogger blogger 4 blogger = blogger 4 blogger = blogger every 4 blogger = blogger 4 blogger blogger 4 blogger every 3 300$/year every 3 300$/year 3 months 300$/year every 3 = every 3 = months months months 300$/year months 300$/yea r Total 2400 $ 1750$ 1800 $ 1950 2100 27 |P age
Pricing Pricing take place due to problem in plumbing system in the market rather than ADS from companies and subscription fee from plumber . Location The location is in Nabatieh, but as a online service ,the place isn’t very important for people but it is important for plumbers since they have some ignorance in technology. Distribution Channels Nabatieh as first step 28 |P age
4.4- Financial study: 4.4.1- Cost Structure: 2019 2020 2021 2022 2023 2024 Purchase of goods + $0 $0 $0 $0 $0 $0 Purchase raw materials + $0 $0 $0 $0 $0 $0 Supply charges + $0 $0 $0 $0 $0 $0 Rent and rental charges + $0 $0 $0 $0 $0 $0 Repairs charges + $400 $200 $200 $200 $200 $200 Furnitures + $0 $0 $0 $0 $0 $0 Advertising costs at Google + $200 $200 $200 $200 $200 $200 Advertising costs on Facebook + $150 $225 $300 $450 $600 $700 Advertising costs by email + $0 $0 $0 $0 $0 $0 Advertising costs by e-mail + $0 $0 $0 $0 $0 $0 Cost structure Event expenses + $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Shipping costs + $0 $0 $0 $0 $0 $0 Development and hosting of the technical platform (Website) + $3,500 $300 $300 $300 $300 $300 Development and hosting of the Mobile Web Application Technical + $3,500 $500 $500 $500 $500 $500 Platform "Android and IOS" Salaries and wages (1 employee) + $9,400 $9,400 $9,400 $9,400 $9,400 $9,400 blogger + $300 $300 $300 $300 $300 $300 + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 Sum of costs = $18,450 $12,125 $12,200 $12,350 $12,500 $12,600 4.4.2- Profit Structure: -plumber adopted first year = 20 plumber should pay 30 each month to be adopted by our application 30$ x 12x 15 = 5400 $ 29 |P age
-5% from income money to plumber after fixing any problem to people Let’s say every problem cost 50$ So 0.2x50x500 problem = 5000 $ -big projects who needs engineer supervise I’ll take 15 % of income money from plumber Let’s say 2 big projects in first year 15000$ x 0.15= 2.250 $ (engineer + application) 2250+5000+5400=12650$ 2019 2020 2021 2022 2023 2024 companies ADS + $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Sales of services + $12,650 $15,000 $18,000 $21,000 $30,000 $38,000 Profit structure Sale of advertisements on the platform + $0 $0 $0 $0 $0 $0 Sale of products + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 + $0 $0 $0 $0 $0 $0 Sum of profits = $15,650 $19,000 $23,000 $27,000 $37,000 $46,000 4.4.3- Provisional Results We started with a starting balance sheet at the end of the year 2017, then the five years of investment (2018-2022) and the balance sheet of the year 2023 which will help us make decisions. 30 |P age
Gross Operating Surplus (EBE) = Profit Structure - Cost = ($2,800) $6,875 $10,800 $14,650 $24,500 $33,400 Structure Margin rate = EBITDA / -0.18 0.36 0.47 0.54 0.66 0.73 Turnover Depreciation and amortization - $400 $400 $400 $400 $400 $400 Provisions - $0 $0 $0 $0 $0 $0 Gross Operating Result = EBE-depreciation = ($3,200) $6,475 $10,400 $14,250 $24,100 $33,000 Financial products + $0 $0 $0 $0 $0 $0 Financial charges - $0 $0 $0 $0 $0 $0 Exceptional products + $0 $0 $0 $0 $0 $0 Exceptional charges - $0 $0 $0 $0 $0 $0 Current result before tax = ($3,200) $6,475 $10,400 $14,250 $24,100 $33,000 Taxes on profits (15%) - $0 $971 $1,560 $2,138 $3,615 $4,950 Net predicted result (RN) = ($3,200) $5,504 $8,840 $12,113 $20,485 $28,050 forecast cash flow from operations = Net result + = ($2,800) $5,904 $9,240 $12,513 $20,885 $28,450 amortization + provisions forecast cash flow from operations update = ($2,545) $4,879 $6,942 $8,546 $12,968 $16,059 31 |P age
4.4.4- Financial analysis Net present value (NPV) over 5 years : Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting to analyze the profitability of a projected investment or project.. o VAN = -I + CF1 / (1+i) + CF2 / (1+i) ^2 + CF3 / (1 +i)^3+ CF4 / (1 +i)^4+ CF5 / (1 +i)^5 - (I) it is the amount invested - CF is the estimated cash flow of each year. - i it is the discount rate which is equal to 10% (interest on Treasury bills in Lebanon = 7.08% and the risk is 1.5). Net present value (NPV) over 5 years calculation -20000 Invested amount ($2,545) Year 1 $4,879 Year 2 $6,942 Year 3 $8,546 Year 4 $12,968 Year 5 $16,059 Year 6 $9,888.32 NPV Internal rate of return calculation Internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. Internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. An investment project will generally be retained only if its predictable IRR is sufficiently higher than the bank interest rate, to take into account, in particular, the risk premium specific to the type of project. 32 |P age
Internal rate of return calculation over the 5 years Invested -20000 amount ($2,545) Year 1 $4,879 Year 2 $6,942 Year 3 $8,546 Year 4 $12,968 Year 5 $16,059 Year 6 $9,888.32 NPV Internal rate of 20% return Profitability $1.49 index Recovery time of the amount invested: 33 |P age
Recovery time of the projet Operating cash flow Recovery time Year 1 ($2,545) ($2,545) Year 2 $4,879 $2,334 Year 3 $6,942 $9,276 2 Year 4 $8,546 $17,822 $17,822 months $2,178.0 1080.66 Year 5 $12,968 $30,790 0 7 Year 6 $16,059 $46,849 $104,525 To recover the amount invested $ 20000 we need 5 years and 2 months Profitability Index: The profitability index is an index that attempts to identify the relationship between the costs and benefits of a proposed project Profitability Index = (Net present value + invested amount) / invested amount = (9888+20000) /20000 = 1.49> 1 => the project is profitable. The company can expect to cash $ 0.49 for every dollar invested. That is, the net present value is $ 0.49. Bibliography 34 |P age
Books : Google form Studies, research projects… : Google form Reports :none Websites: didn’t state any but lot of website researches 35 |P age
Appendices Study with people about providing plumbing importance My name is AHMAD MOSTAFA; student at Islamic University. I'm working on a professional project that aims to create a mobile platform that allows several parties "PLUMBERS, PUBLIC, PARENTS … " to facilitate communication between people and plumbers with high work performance and safety. The purpose of this questionnaire is to receive your proposals and recommendations to improve this proposed service. This study also allows us to know whether or not you match the profile of the NEAR PLUMBER. Responses will remain confidential and will only be used for the purposes of the project. 36 |P age
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