Business Plan for a Niche Market

Easygo card services Business Plan

Customers

Since our target market is students, the basis of their purchasing decision will be price and convenience. Our marketing message will remind them that it is often not very cost-effective to cook for one person and a lot of money can be saved by buying only what you need. Secondly, most students find it time consuming and an effort to cook for themselves and therefore we'll rely on the fact that they are looking for a convenient way to overcome those hazards when we market our product/service.

Industry

South Africa has one of the fastest growing markets for international fast food companies, as well as many home-grown chains, thus making the fast food industry an attractive prospect for new entrants.

The current total market for students aged between 19 and 23,living in Pretoria and studying at various institutions, consists of an estimated 75 000 students, where only a third still lives with their parents. This leaves us with a potential market of 50 000 students living on their own.

Competition

Direct competition: Our biggest competitors will be fast food outlets in Pretoria East that doesn't provide the Easygo card.

Indirect competition: Easygo sees any food outlet and every consumer product aimed at convenience as indirect competition (Woolworths' ready to eat meals etc.)

Our competitive advantage will be that we are the first service in this market of its kind in that the Easygo card can be used for the same purpose at various fast food outlets and restaurants.

Management Plan

Our company will consist of two owners, Ruben Gough and Alison Ntondo. Alison will head the Easygo project. This full-time position will oversee all activities for the project. Alison interfaces with each partner and staff member. This places Alison at the role of administrator and coordinator of development and marketing activities, but also requires her to implement training and individual development activities for each staff member.

We need an agile organizational structure that recognizes the need for a smooth flow of ideas and implementation between sales, marketing and general management. In time, when we grow in size, structure will become more necessary and each staff member will have a definite job-describtion.

Employees will be doing mostly data capturing and front office employees will deal with customer enquiries , complaints and requests.

Financial Plan

Please refer to our Financial Plan page for more information on what the Financial Plan entails.

Financial Overview

Required Capital Funding

Capital required for startup will amount to R1,200,000.00

Break-even Analysis

Please refer to our Break Even Calculator for a formula to calculate the Break-even point.

Cash flow Analysis

An income cash flow of R170 000 per month is used in calculating the viability of the Easygo Card System. This figure of R170 000 is the estimated average monthly figures based on research done for Easygo Card System. Refer to calculation averages below.

The analyses shows that the Easygo Card System will be viable and the entrepreneurs will be able to service the debt repayment schedule as required.

Click here to download a Cash Flow template.

Projected Income Statement (Profit and Loss)

Click here to download an Income Statement template.

Projected Balance Sheet

Click here to download a Balance Sheet template.

 

 

 

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