Bussiness

OFZO

OFZO

Table of Contents

I. Executive Summary

Objectives

Mission Statement

Vision Statement

Keys to Success

II. Description of Business

Company Ownership/Legal Entity

Location

Hours of Operation

Suppliers

Manufacturing

Management

III. Financial Management

Year 1

Income Statement

Sales

Balance Sheet

Cash flow

Year 2

Income Statement

Sales

Cash flow

Revenue year 1

Revenue year 2

IV. Marketing

Market Analysis

Market Segmentation

Pricing

OFZO

V. Appendix

Milestones

Miscellaneous Documents

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Executive Summary LINDSAY

Objectives

Our main objective would be to expand to the majority of nightlife goers in a short period of time. We want our

application to be the number one in the party industry. We will start focusing on Brussels, if that works out we

want to expand to Antwerp. Our main goal would be to cover a great part of the market in Europe and be the

leading party application. We estimate that this would take us 5 years.

Mission Statement

‘’We want to take partying to another level by giving our customers exactly what they want, every evening.’’

Vision Statement

‘’To be the number one party app for students international or worldwide.’’

Keys to Success

Our application will entertain the party people. We will make sure there is no disappointment in a night out

because our consumers can filter their preferences, every night again.

We want our application to go viral. It is not meant to be for one individual. If the usage of the app is widely

distributed, it will be more fun. In general, if your friends use an application, you will be more likely to install it as

well and share your thoughts and opinion about it.

As we will explain in our financial plan, we focus on IOS for the first 2 years. In our third year we want to expand

our application for Android users. We want to give everybody the same opportunity to use our party application,

but as we are a start-up, we must see that it will work out with IOS first. Android is a fast growing platform as well.

For sure we will include Android in our roadmap later on.

Furthermore, we are taking into account that is better to focus on smaller markets first. That is the reason why we

are starting with the nightlife in Brussels first. If that works out well, we will expand our focus towards Antwerp.

The 3 of us are no experts if it comes to the mobile traffic. This is why we hire a freelancer who creates the

application. This includes the app icon, the visuals and the design. He will do this the first 3 months. If we are ready

to expand to other cities like , we will need him again to adapt our application to those other cities.

When it comes to marketing, we will a CPI - Cost Antwerp Per Install of 0.47 cents (25 000/52 500). These numbers

are later explained in our financial plan.

One of our biggest advantages is that the use of our application will be free. There is no downloading cost.

https://www.forbes.com/sites/avidlarizadeh/2013/07/19/eight-tips-for-a-successful-

app/2/#167880c67e7f

OFZO

Description of Business

Our business is designed for the nightlife based in Brussels. We will create an application that will help youngsters

to have a night of their preference. The application will provide all the information about every club. This means;

prices, music, locations and promotions. Our nightlife application will use a filter. By filling in your preferences for

that night, the application will search for the most suitable club or party at that evening.

Company Ownership/Legal Entity

OfZo is a Limited liability company The 3 of us have each 33,33% of the company, because we invest 55150 euros

so each of us invest 18 383,33 euros. The 3 of us are also the 3 members in the board of directors of the company.

Location

The official address of our business is located at Boulevard de waterloo 54. We chose this location because it lies in

the center of the city. Boulevard de waterloo is one of the bigger streets in Brussels. You will find the Porte de

Namur metro station and Stefanie additionally where many offices of companies are located. In our office we will

receive our hotline calls and emails that consumers sent us. It is not a location where you can go to when you have

questions. In case of questions you are able to use the hotline or our email address.

OFZO

Hours of Operation

We each work 8 hours per week, which makes 24 hours per week in total.. Additionally, we have a hotline for

people to call if they have a problem what’s or ever. They can always call us on that number. We will always help

them and answer their questions.

Suppliers

We have suppliers for the event tickets we sell on the app. Those suppliers are the clubs, which have events for

which we sell their tickets on our app, and for every ticket sold we get a 3% commission.

Manufacturing

So we only manufacture 1 app the first year. The app we manufacture will be on IOS software. After 2 years we will

reinvest and use our previous profits to invest in the same app but also for the Android software. We use a

freelancer to make the app. He will make all the technical stuff like the app design, the filters, putting it on the app

store, doing the analysis, development, testing, and launch of the app. We pay him 50 euros per hour and for 9

hours a day 450 euros. It will take him 3 months to make the app and launch it. And after that we are established

in Brussels and want to expand in other cities and Europe we will need the freelancer we used before to update

the app.

Management

will be the COO of the company OfZo.

As mentioned before, our team is not specialized in creating applications or in exploring the mobile traffic. In order

to launch our application successfully, we will hire a freelancer.

Financial Management

Our start-up costs (Registration cost, Spanish taxes ID cost, Notary cost) are 2500 euros. It is a limited liability

company so that is what we have to pay for the notary costs.

We first are only going to launch it on IOS and want to launch it on android 2 years later.

The total cost of the making the app is 30150 euros. We use a freelancer to make the app. It takes around 3

months for the freelancer to make it and we pay him 50 € an hour so 450 € for a day. So he works on it for 9 hours

a day. For the price he does the analysis, development, testing and launch of the app. Our app is a medium app.

Some of the characteristics of the app is we have an email/password sign up, the design for the app is a normal

one easy to navigate it has a searching element, a calendar, an app icon design and in app purchase. Our app is a

more a sort of in technical terms a database, API app.

· So the email/password sign up is for the regular users and also for our customers who want the newsletter

of every week with the events and parties there are in Barcelona that week.

· We took a normal design for the app, so it is easy to use for our customers.

OFZO

· It has a searching element, so you can put some filters to find the perfect part for you and your friends.

Some of the filters are: age, dates (that is why we need the calendar), what kind of music genre it is, you can

also choose the clubs you like. It also gives a little information about the clubs when you click on one. The

information will be of what events they have in the further, what music they normally put on, how much an

average night costs and where it is in Barcelona.

· The app icon design is just because you need one if you want people download your app.

· And in app purchase because we sell tickets on it for events and get a 3% commission on every ticket we

sell.

We depreciate the app on 5 years, so that makes 6030 euros for every year we depreciate it.

The total of the app cost is 30150 euros. It takes 3 months for the freelancer to make it and do everything. So all

the element we pay for are for the size of the app we pay 13500 euros, for the view of the app we pay 6750 euros,

for the email/Password sign up we pay 450 euros, for the searching element we pay 1350 euros, for the app icon

design we pay 3150 euros, for the filters and calendar we pay 2700 euros and for the in app purchase we pay 2250

euros.

We put 25000 euros for marketing in the first year. In the first year we will put a lot in marketing because it’s the

beginning and because the second year we are already set up and are doing everything for word to mouth. So that

people tell and tell each other about our app. But we will also still continue with the classic marketing strategies.

So we target around 150000 people to download and use our app so that is around 10% pf the population of

Barcelona. We expect that 35% will download it the first year which makes 52500 and expect that 35000 of them

will use it on a regular basis. The second year we expect to have 75000 download and 50000 regular users. Our

first revenue is the one on the download of the app. We calculated that for 52500 download that revenue would

be 5200 euros. Which is around 9 cents per download. Our second revenue is than on the average users per day

(on excel) with how many minutes they are on the app (around 2 minutes), with the average ad impressions per

minutes (2), the average ad network fill rate (80%). Which is all calculated in excel. But if we would take it for 500

daily users that would be a daily revenue of 32€. And our third revenue is on selling tickets for events and take a

commission of 3%.

Our CPI (cost per install) for our first year is around 0,47. That is calculated by (Marketing/Total installs), so

25000/52500.

OFZO

Market Analysis

Demographics

Brussels is the capital of Belgium. It’s the largest city in Belgium. Brussels counted an estimated population of 2,1

million in 2019. These numbers are based on residents in administrative limits.

Brussels is a city that has a lot to offer. What we mean is that it is one of the leading cities when it comes to

culture, sports, economics, tourism, arts, science, fashion and the commerce center. According to the World

Population Review of 2019, Brussels is one of the most economically powerful city based on their GDP in the

European Union.

Brussels is home to many immigrants with approximately 70% of people of foreign origin, Approximately 32%,

Brussels has a population growth of 0.78% each year.

http://worldpopulationreview.com/world-cities/barcelona-population/

Nightlife in Brussels

One of the things that is known for the party culture in Brussels is that the nightlife does not end until after the sun

has come up. How does a night out look like in Brussels?

The most traditional way to start an evening out, is to have dinner first. Most people go out for dinner between

7pm to 9pm. After that, going to a music bar and have some alcoholic drinks is very common. When the clubs

open, around 12.00 at night, you are able to go. Most of the party people will have pre-drinks until 1AM and than

leave to the party. As said before, the party does not end until the sun comes up. Most of the clubs in Brussels

close at 6am.

Brussels offers a great variety of music styles. One way to enjoy nightlife would be by dancing to the latest techno

sounds. Nowadays, the nightclubs in Brussels are famous for their electronic music. The city receives many top DJ’s

from all over the world. Depending on what type of music you want to listen will also determined the location for

example if you want hard techno you will most likely end up at the fuse which is located not far from port de Hal. If

you want some commercial you would go to jeux d’hiver which is located at the end of the avenue Louis.

Trends

https://www.thespiritsbusiness.com/2017/04/top-five-global-nightlife-trends/6/

According to The Spirit Business, the clubbing landscape has undergone a huge transformation. The sticky floors,

cheap tonic and velour seating have made a decrease. Fortunately, people are not drinking less.

OFZO

One of the major changes is the upcoming cocktail industry. This has influenced the way consumers enjoy alcoholic

drinks. Also experienced drinkers place quality above everything else. Cocktail bars have grown over the past years

because people enjoy the music with a free entrance. Additionally you get great service and nice cocktails.

Lately it is very important in the party industry to promote simplified cocktails to stay unique as a club. You must

create an experience. Promoting cocktails will make the choice easier for the consumer, also the bartender has the

opportunity to create a high-quality drink quicker.

This does not mean that the clubbing experience is shrinking. People still want a bottle brought to their table, and

all the drama that belongs to that part of clubbing.

People always seek for more. They are demanding more quality, better service and increasing entertainment. The

key is to build a strong business in the current clubbing industry.

Competitive Industry

Many industries and companies are using mobile applications to promote themselves. In our industry we do have

competitors. Our competitors are have to same purpose as we have which is; inform our consumers about the

parties that night. Nevertheless, our competitive advantage is, that we can use filters that are able to filter all you

different preferences related to price, music, style, people, age and many more.

Target Market

We are creating an application for the nightlife in Brussels. This already states that we are focusing on the people

who want to party. Students and young adults will be our target market.

The age range of our target group will be 18 until 26 years old. We will be focusing on both men and women. Most

of the time these youngsters are independent, not married. A greater amount of the students will receive an

income from their parents. It might either be students who are doing Erasmus or students who study for their

Bachelor in Brussels. That is going to be our focus, mainly in the winter periods. On the other hand we have tourist

season as well in Brussels. With tourist season we mean the months May, June, July, August and a part of

September. In this time of the year we will focus on our tourists, who are willing to spend more as they are on a

holiday and want to party.

We will have to invest in advertising in order to make people aware of our application. By asking clubs to hang up

posters of our application, we will be able to reach the target market in which we are operating.

We as a company can make it more attractive to go out if you are able to filter the way you want to party. If there

is an opportunity to party with the right music, the right people in the right club and at the right location by using

an app, you might be more willing to go out. Purchasing habits of young adult might increase.

OFZO

Future plans could be to focus on events, not only for youngsters but also adults. For example you filter, rooftop -

fancy - middle age, and then find the party. Using this strategy, we can expand our business idea.

We will always adapt towards the demand in the market. We are youngsters ourselves so we are able to know

when the market changes.

The motivation behind this demographical chosen target market, is that we have a quite specific target market. We

are focusing on people who want to party because we are creating an app focused on the clubs in Barcelona.

Market Segmentation

We are targeting people between 18 and 26 years old. This is a 6-year age difference. We are able to segment the

market in three different groups; 18 -20 years, 21 – 23 years, 24 – 26 years old. Age differences will change

preferences as well. Our application is able to filter those preferences in order to make sure that every segment in

our target market will be satisfied. The segment that will benefit most of our party application will be the people

from 21 to 23 years old because they are the biggest percentage of the market.

OFZO

Pricing

We don’t have a price, our app is free. It is free in order that we can get more people to download it. But we have

prices on the tickets we sell on our app. be the price is decided by the club who sells them and we get 3% on each

ticket sold.

Advertising and Promotion

Our budget for the Marketing Plan is 25 000 euros. With this amount of money we will invest in advertisements

and promotions.

Advertising is related to your target market. As we are focusing most on students, young adults, we are more likely

to reach them through social media platforms.

Our way to promote our application via social media would be the organic promotion. Organic promotion means

having a presence. This can be a Facebook page, a Twitter account or an Instagram profile. We will create these

accounts in order to be able to follow the people within our target market. Trying to connect with our audience is

one of the key aspects to get their attention. Be posting relevant information we will increase followers.

Because of their broad audiences and ability to segment, Facebook and Instagram are very effective advertisement

platforms for mobile apps. And since Facebook owns Instagram, they make it incredibly easy to places app install

ads on both.

Furthermore, there are many celebrities and influencers on social media platforms that suit our target market.

Reaching those people would be a great boost for our brand awareness. They will post something about OfZo (our

party application) and reach a very widely spread amount of followers who will get aware of our application. Many

of their followers are inspired by that post and will download OfZo.

Another way we will promote our app is through traditional advertising. This means promoting in-stores. The most

effective places to hang up our flyer, would be the clubs that we are selling the tickets for. Also places that our

target audience comes a lot.

As we mentioned before, we will spend 8 hours a week on our application ourselves. This means we will spend an

hour a day on updating our Facebook, Instagram and Twitter accounts.

http://info.localytics.com/blog/8-ways-to-promote-your-app

OFZO

Appendix

Milestones

After 2 years we want to have the app also on the Android software. After 3 years we want to expand to Madrid

and after 5 years we want to be in at least 5 major cities in europe and employe a couple of people to help us. And

after that we want to be the first app students use in major cities we are in when they are going to a party or to

look for information.

OFZO

Here you will find the resumes of Lavinia, Arthur and Lindsay.

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