Business Plan Critique

Business Plan Critique

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Business Plan Critique

Overall Impression of Business Plan

            The presentation of the business plan has a similar format to the universal template of such documents. Thus, most of the features necessary in making the reader or any investor interested are captured. In addition, the language used is apt in describing the importance of capitalizing on the increased used of social media to launch a mobile application that maximizes this potential. However, there is a lack of clarity on the PESTEL analysis since the concepts outlined seem to refer to the same thing. For example, the economic, social, and legal aspects are not clearly demonstrated in order to convince the audience of the superiority of this technology. Furthermore, some glaring grammatical and spelling mistakes present need to be corrected to provide a coherent flow of ideas. Nevertheless, the potential of the mobile application is dominant and this serves to reinforce the focus of the business plan.

Explanation of Business Opportunity

            Millions of people use the internet on a daily basis, most of which is done through their smart phones. As such, the market size is so large that it can adequately sustain the growth of the business. Hence, stability can be achieved by the company due to the large client base envisioned, especially as the Middle East population keeps increasing. Consequently, the need for the program has been appropriately emphasized and the notion has been well tied to Dubai’s strategic 2021 deadline for achieving a media friendly society. In fact, the easy access to information through mobile phones and the fact that the service will be offered freely are logical notions that save the customers time and money thereby making the concept appealing to a large audience.

Sources of Revenue

            The plan does not offer insight into the sources of raising equity to fund this startup. By stating that government entities in the media sector will contribute to the financing, there is no elaborate procedure for indicating the total amount to be collected. Furthermore, it lacks a citation of the waivers to be given on taxation and the influence of such overtures to the balance sheet of the firm. While the administration’s revenue stream may be common knowledge, there is no expression of the rationale for demanding a specific amount from the government. Therefore, this reference is vague and needs to be adjusted to include a reasonable figure based on market estimates. Moreover, the pledge of acquiring 30% cash reserves from the sale of advertising space does not contain the specific leverage to be pitched to them as well. However, the corporation’s specialty of not charging consumers will help to create brand loyalty, which in turn enhances income generation.

Competitive Advantage

            The author seems to have done extensive research on the target market because of the inclusion of young, educated, and technologically savvy people as the company’s niche. These demographics are vulnerable to current cell phone trends and have a global perspective to both local and foreign events. The business owner identifies them as creative and talented individuals whose preferences are influential in the Information Age. This places the media application at a vantage position to rein in this youth by incorporating a user interface that can be easily modified to suit one’s needs. That mechanism gives Emirati Media Box App. a competitive edge over its rivals due to its interactive system. It has been properly articulated to show its cross platform appeal and use of advanced features although there is need for periodical modifications in line with changing tastes. The latter would aid in maintaining relevance in a dynamic society as the UAE.

Marketing Strategies

            The measures proposed for promotional activities are specific. For example, the creation of a mini tutorial would help guide users on ways of navigating the site while blogging about it would stir interest. Participating in Emirati Media forum event exhibitions is a wise commitment to make due to the presence of the target market at such forums. Weekly tweets about the business are also helpful in creating brand awareness as well as visibility thereby drawing more customers to the site. Whereas most of these suggestions are impressive and sustainable in the long-term, the pledge of offering giveaways to people who share the application on social media is not. The number of online users is expected to rise annually and with the popularity of social media networks, such an expense would be costly to operate for a longer period. Nevertheless, the marketing expenditures are reasonable and should be sufficient to provide the corporation with a foundation on which to expand.

Management Team

            This section has been largely ignored. It is unsatisfactory to state that a government institution and the owner would be steering this venture without the technical skills of certain positions being indicated. Online activities are highly risky due to the dynamic nature of internet usage. Thus, such firms require employees with the requisite experience to execute business strategies vital to the day-today operations. As such, Jhone Micle is competent to handle his responsibilities. SPICA is a renowned IT company whose specialization in providing digital solutions would be invaluable to the startup. Furthermore, its global presence would aid Emirati Media Box to gain a foothold in these markets too. While these two entities have the potential to handle their functions well, the projected staff growth is high and it would be necessary to hire a media communications officer to handle customer complaints and other public relations issues.

Financial Projections

The calculations made are a mixture of attainable results with others offering inconclusive criteria. The personal financial statement has a large liabilities column and the savings account is ambitious. Moreover, the net worth is not clearly illustrated. However, the investment section is detailed and specific in the areas for consideration. While prioritizing these ventures, enough money has been reserved for the development of the application’s content. 600,000 AED would be justifiable while the split of marketing expenses over a 2-year period is prudent because it allows the management to monitor and evaluate the consumer’s response to the service. However, the cost for marketing the website should be reduced so that these funds can be channeled to content management over the 3-year period. By so doing, the application would receive significant upgrades that are integral to its success. The revenue projections are modest and these assumptions are based on the expected slow uptake of the business within the current competitive online environment. Costs such as for banners are one-time affairs that do not need repetitive illustrations too. It would be helpful to include the pretax profit as well as a factor of the income generated and the expenses incurred. This would provide the reader with the financial health of the company for assessment on its viability in the Middle East. Consequently, a comparison with other European markets would be more convincing.