Transcript Document

By: Touch & Go Apps
Magdalena Wegrzyniak and Morgan Ziegler
Sport and Medical Sciences Academy
Hartford, CT
Mission Statement
Mission Statement
 Handy Wear by Touch & Go Apps allows users to view their
closet virtually on an Apple application. Our users can take a
picture of the apparel they own, upload it onto their
application, and customize their look, all in the palm of their
hand.
Opportunity
 Apple is the fastest growing market
 Users can wear their clothing in a variety of ways saving them
time and money
Business Profile
Type of Business
 Retail
• Provide customers with an Apple application
Legal Structure
 Partnership
•
•
•
•
Collaboration of ideas
Business stability
Limited start up fee
Faster work ethic
Qualifications
We’re qualified to run this business because:
 We have contact with an Apple developer
 High math skills
 One partner is a part of a family business that has been operating
successfully for 11 years
 We are a part of our own target market
Market Analysis
Total
Population
The number of Apple devices sold
worldwide containing a camera.
188,782,000
Target Market
Potential
Market
Apple device users between the
ages of 13 to 34.
In our survey
•88% showed interest in the
application
•55% showed a willingness to pay
$0.99+
72,632,540
35,154,149
Target Market Segment
Demographics
 Apple device users between the ages
of 13 to 34. Majority of the users are
projected to be females.
Geographics
 The application is sold through the
Apple Store, so Apple users worldwide
will have access to our product.
Psychographics
 Our application targets users who will
enjoy creating new looks in a virtual way.
Buying Patterns
 The user will have a large closet and a love
for shopping but little free time to
personalize their outfits.
Competitive Advantage
Handy
Wear
Factors
Pocket
Closet
MyCloset.
com
Price
$0.99
Free
$0.99
Quality of
Product/Service
Poor
Satisfactory
Excellent
Location
App Store
Online
App Store
Reputation/Brands
Decent
Good
Excellent
Unique Factors/
Knowledge
Calendar For
Outfits
Online
Blogs
Avatar
Selection
Marketing Mix
•Social networks
Apple device users
with a large closet
and little time
People
Apple Store
•Internet ads
•Word of mouth
Product
Virtual closet
application
Place
Price
$0.99 per
application
Promotion
Promotional Mix
Promotional Expense
Advertising
Internet ads
Monthly
Amount
$30.00
Publicity
Facebook, Twitter, YouTube
$0.00
Personal
Selling
Word of mouth
$0.00
Total Monthly Promotional Expense
$30.00
Cost of Materials/Labor
14,600 Downloads for Year 1 for
Definition of One Unit
Handy Wear
Materials
Material Description
Cost/Total Quantity
Application
$5,420.25/One Unit
Total Material Cost per Unit
Cost per Unit
$5,420.25
$5,420.25
Labor
Type of Labor
Labor Cost per
Hour
Time (in Hours) to
Make One Unit
Design
$9.00
100
$900.00
Develop
$9.00
400
$3,600.00
Total Labor Cost per Unit
COGS (per Units)
Labor Cost per
Unit
$4,500.00
$9,920.25
Economics of One Unit
914,600 Downloads in Year 1
Selling Price (per Unit)
Application ($.99), Enhancement ($.99, 25% of users),
Advertisement ($20 per day)
COGS (per Unit)
Other Variable Expenses (per Unit)
Total Variable Expenses (per Unit)
Contribution Margin (per Unit)
$25,367.50
$9,920.25
$0.00
$9,920.25
$15,447.25
Average Monthly Fixed Expenses
Fixed Expense
Advertising
Salary
Average Monthly Expense
$30.00
$2,000.00
Depreciation (iMac, iPad)
$26.63
Utilities (Internet, electricity, iOS program,
$70.00
phone)
Rent
Total Average Monthly Fixed Expenses
$40.00
$2,166.63
Time-Management Plan
Schedule for a Typical Week
Magdalena
Morgan
88
Free Time
36
Work
44
New Business
0
50
Hours
78
Free Time
100
Work
46
New Business
44
0
20
40
Hours
60
80
Monthly Sales Projections
First Year
Total Units
Sold
4
Monthly Break-Even Units
Yearly Fixed Expenses
Contribution Margin per Unit
$25,999.56
$ 61,789.00
X
X
1
=
12
1
12
Monthly Break-Even Units
=
0.035
In an average month, the company will begin to
make a profit after selling 0.035 units.
This equals about 171 downloads per
month per application
Projected Yearly Income Statement
Selling Price per Unit
$25,367.50
Number of Units Sold
4
$101,470.00
Total Sales
Variable Expenses
$36,798.24
$64,671.76
Contribution Margin
Fixed Operating Expenses
$25,999.56
$38,672.20
Pre-Tax Profit
Taxes @ 15%
Net Profit
$5,800.83
$32,871.37
Start-Up Investment
Start-Up Expenditures
Item
Where Will I Buy This?
Cost
Partnership Agreement
Weber &Myers , LLC
$150.00
DBA
New Britain, CT
$10.00
iMac
Apple Store
$1,199.00
iPad, iPhone
Apple Store
Already Own
Total Start-Up Expenditures
$1,359.00
Cash Reserves
Emergency Fund
Reserve for Fixed Expenses
Total Start-Up Investment
$679.50
$1,099.89
$3,138.39
ROS & ROI
ROS: Return on Sales
For My Business:
$32,871.37
$101,470.00
X 100 =
32%
Dollar
Equivalent = $0.32
ROI: Return on Investment
For My Business:
$32,871.37
$3,138.39
X 100 =
1,047%
Dollar
Equivalent =$10.47
Financing Strategy
Total Start-Up Investment
Source
Amount
Personal
Savings
$3,138.39
Totals
$3,138.39
$3,138.39
Debt
Equity
X
Gift
Business Responsibility &
Philanthropy
Philanthropy
 Our business will use 5% of its net profit to buy clothes to
donate to the Salvation Army.
Business Responsibility
 Our business strives to help give clean clothes to people in
need of help. Each application will feature the logo of the
Salvation Army as a reminder of our responsibility to help.
Business & Personal Goals
Short-Term
Business
Personal
•
Application features
completed
•
Learn how to use the iOS
Developer Program
•
Reach 9,855 downloads
•
Graduate high school
•
Create a tutorial website and
video
•
Acceptance to the college of
our choice
Long-Term
•
•
Create a 3-D avatar
•
Reach 20,000 downloads
•
Advertise on social networks
Release a new app every 3
months
•
Enrolled in college

Pre Med Program

Forensic Program
Embrace the Designer in You
Thank you for your consideration.
By: Touch & Go Apps