Plan of Launching a New App

Question: Explain aboutbusiness plan of launching a new app namely Grab-a-Nurse. Answer: This report discusses about a new business idea or business plan of launching a new app namely Grab-a-Nurse. During this report, a detailed analysis is made on the industry as well as target market of the company. Along with that, the report also analyzes and evaluates the business plan in respect to the financial and technical feasibility. However, at the end of the report, an overall conclusion is provided based on the findings of the study. Elements of self-analysis The success of a business depends on the ideology and vision of the entrepreneurs. The behavior of the entrepreneur towards its customers, employees, suppliers, management and other stakeholders decides whether the business will sustain not (Bryman and Bell 2015). According to the entrepreneur behavior theory, there are three types of requirements for the human capital and those are venture specific human capital, general human capital and entrepreneurship specific human capital. Status of these three types of human capital in respect to the entrepreneur of this new business is stated below: Elements Levels Venture specific human capital Knowledge and skills in the specific business area. High Skill of motivating others Moderate General human capital Educational background High Managerial capacity High Entrepreneurship specific human capital Entrepreneurial capacity Moderate Attitude towards business High Product / service The new business idea of Grab-a-Nurse is basically a service that will be provided to the sick people those will require the nursing service by Tech Nursing, a new nursing service provider in Singapore. This will be actually an application that the people can install in their mobile or Smartphones. All types of nursing services like, change of dressing or some in-home care will be available through this application. Description of the proposed venture The proposed venture of Tech Nursing will be first launched in Singapore. This indicates that the facility of Grab-a-Nurse app will be available to the people of Singapore in the very beginning. The main influencer behind this new idea of business includes time and cost savings of the sick people. The business will be a partnership business and the entrepreneurs have planned to make aware the people in Singapore about this new app through social media and mobile marketing. As the idea of this app is much unique and helpful to the people, it is expected that the application will grab the attention of the people. The installation charge of the product will be less because the target customer of the business will be the people of all social classes. The mission, vision and objectives of the business will be as under: Objectives: Grab the attention of 90% people in Singapore within the first 12 months after launching the business. Earn minimum 10% profit to run the business successfully. Make the application easily available in the market. Buying intension survey In order to know the scope of the business in the current market, the entrepreneurs of Tech Nursing have conducted a survey with the 90 people in Singapore. The findings of the survey are stated in the appendix. As per the survey with the people in Singapore, most of the participants belong to the age groups between 30 to 40 years and more than 40 years. Most of them are comfortable with technology and they are very much willing to avail the service like Grab-a-Nurse. Target Market Market research: In order to know the future prospect of the business, it is very important to conduct a market research (Hair et al. 2015). With the help of the market research, the entrepreneurs of Tech Nursing will know the actual demand of the people in Singapore. For this particular business of Grab-a-Nurse app, the entrepreneurs have used the 4Ps tool of marketing. The entrepreneurs found out the followings: 4Ps Findings Product In the market of Singapore, most of the people are technology friendly and so the demand for any new application is high. However, the product or app must be easily accessible and fast to serve in any urgent situation. Price The people in Singapore are ready to pay a standard amount of money in order to get quality service at their homes (Peroni et al. 2016). However, in order to provide the facility to the middle and lower social classes of people, the price level must be within affordable standard. Place As the service is application oriented, it will be better to make the application available in Google Play store, App Store and Microsoft Store. Promotion Most of the people in Singapore use the social networking sites. Therefore, it will be feasible enough if the promotion of Grab-a-Nurse is one through social networking sites. At the same time, the company needs to give television advertisement in order make older people aware about the product Therefore, from the above analysis, it can be said that there is a good scope for the app Grab-a-Nurse. As the service or application is related to human health, there is more chance to catch the market effectively. However, the price must be affordable to all social classes and proper channels must be chosen to aware the people of all age groups. Industry analysis: Industry analysis is one of the most important tasks needed to be done before entering into a new market (Zhou and Liu 2015). In case of the new application Grab-a-Nurse of Tech Nursing, the industry analysis can be done with the help of the Porters Five Forces analysis. The analysis is shown below: Five Forces Findings Industry Rivalry As the new app Grab-a-Nurse will be made in order to provide nursing services, the business is under the nursing industry of Singapore. However, as the service will be available just through a mobile application, this will be unique and in Singapore this kind of services is not widely available (DeMartino and Barbato 2015). On the other side, there are many good organizations available in Singapore which provides better services at lower cost. Therefore, from these points of views, it can be said the industry rivalry will be moderate. Threat of new entrants The threat of new entrants in this similar type of business is low because it is still not guaranteed that this will be successful (Schlaegel et al. 2015). So, for first three to five years the threat of new entrants will be low. However, if the business gets success then more organizations may come to similar business and then this threat may increase. Threat of substitute product The threat of substitute product will be high because there are many hospitals and nursing homes available in Singapore that provide better services at an affordable price range. At the same time, they also provide services on time. Bargaining power of suppliers Bargaining power of the suppliers will be low because there are many nurses available in Singapore who are ready to provide such services to the people. Bargaining power of the buyers The bargaining power of the customer will be moderate because this service is related to the health and the prices of such services are generally fixed. However, as there are some poor people, the companies sometimes need to lower the price. Therefore, the bargaining power of the customers will be moderate. Therefore, from this five forces analysis, it can be said that the industry situation is good for the new business. However, the new venture needs to maintain the time and price factors in order to get a good market share. At the same time, the new venture needs to maintain the service quality also. Technical feasibility analysis As the new business of Grab-a-Nurse is an application based business, the technical feasibility analysis is most important. Presently, there are many types of new applications available to the people in Singapore that help the people in solving their problems within a minimum time (Yaacob et al. 2016). However, in case of nursing service related application, the company must have a strong network through which it can make the application available to all the people in Singapore. Software is the primary factor of this business. As per the plan of the partners or entrepreneurs of Tech Nursing, the company will choose the operating systems of Android, Windows and IOS. On the other side, if the technical feasibility is analyzed in respect to the external market, then it can be identified that the above-mentioned software are easily available in the market. On the other side, the main required device is a mobile phone or Smartphone, which is also widely available in the market. Therefore, from the technical ground, the business will be feasible. Financial feasibility analysis As per the planning of the entrepreneurs of Grab-a-Nursing, 70% of the initial capital will be arranged by the entrepreneurs and 30% will be gathered by taking long-term bank loan at 10% interest per annum. The company has also decided that the initial investment will be same as the initial total cost of the company. However, the budgeted cost, profit and revenue of the company for initial three years are shown below: Particulars Amount (in $) (1st year) Amount (in $) (2nd year) Amount (in $) (3rd year) Revenue 10000 13900 14700 Cost of goods sold 6300 3100 3900 Gross profit 3700 10800 10800 Expenses for software maintenance 300 300 300 Salaries to the nurses 1000 1000 1400 Fees to the software developer 270 270 270 Distribution and advertisement expenses 410 680 710 Operating income 1720 8550 8120 Interest payment (10% on 1890) 189 189 189 Profit before tax 1531 8361 7931 Tax payment (30%) 459.3 2508.3 2379.3 Net profit 1071.7 5852.7 5551.7 Workings: Calculation of loan amount = 6300 * 30% From the above table, it can be said that in the second year the net profit of the company is expected to be highest. This is because in the first year, the initial cost of preparing the application is high, due to which the cost of goods sold will be higher, which is not applicable for the second and third years. However, as the company has a plan to increase the number of nurses in the third year for providing more services, the cost for paying the salaries will be higher and due to which the profit will decrease. Scenario versions There are many situations that may change the overall scenario of the new business. Here some of these situations are mentioned below: What if the existing hospitals and nursing homes pay more salary to the nurses? The availability of the nurses will reduce and the company will face difficulties in providing services on time. What if new company with quicker application comes in to the market? The popularity of Grab-a-Nurse will reduce and the customer base and revenue will also reduce. What if the company fails to recover the initial investment? The budgeted revenue of the company will decrease to the extent to which it will be suitable for the internal funds. Scalability The scalability of a new business can be identified with the help of three factors and those are entrepreneur base, owners capabilities and comprehensiveness of the business plan (Chua and Bedford 2015). In case of this new business, the entrepreneur base is strong because the partners of the business have enough financial backup and they have good knowledge of software and application. On the other side, the owners of the business have good motivational and managerial capacities to run a business and the business is new and with unique concept, the future of it is bright. Conclusion In this business plan, it has been identified that Grab-a-Nurse has a strong market opportunity, which it can use to earn more revenue. On the other side, business is also technically feasible. 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