Presentation | Business Plan for The American Fintech Inc.

Business Plan for The American Fintech
Inc. (TAF)

Marketing

Part 1. Marketing strategy
 Product strategies:
 PayEasy (B2C):
 PayEasy would be the B2C product of TAF which would target the individual customers.
 The fintech would be available to individual consumers which they would be able to download on their
smart phones.
 The software would also be compatible to laptops and tablets. The customers would be able to make and
receive payments using the platform.
 PayBiz(B2B):
 PayBiz would be the B2B product which The American Fintech Inc. would market in its markets with the
US being its initial market.
 The app would be linked to the current accounts of the business customers. The business organisations using
the app would be make and receive business related payments.
 They would also be able to make payments like payments of utility bills and making payments related to
their projects.

Part 1. Marketing strategy contd…
 Partnerships with organisations:
 The American Fintech Inc. would partner would partner with business organisations of
different types in order to enter the market of the US.
 The company would partner with leading information and telecommunication companies
like Vodafone.
 The next categories of partners of TAF would consist of banks like Bank of America with
which the company would partner to offer the app.
 The company would also partner with retail chains.

Part 2. The Market
 Part 2.1. Market description:
 The target market of The American Fintech Inc. would be the United States of America, its home market in
the initial years.
 The company would expand into host markets which would enable it to strengthen its market position
internationally and generate more revenue.
 The main host market of the company would be the United Kingdom in the first stage of expansion.
 The company in its second stage of expansion would enter the European Union market followed by entry
into Asia. T
 he company would target emerging markets like China and India to get access to immense customer bases
in these countries to generate immense revenue.

Part 2.1.1 Market research of the United
States of America
 Political factors:
 The United States of America is a politically stable country with the President of the
US as its head. This politically stability of the country enables the government to form
strong policies and laws.
 The second political factor which the business organisations have to consider while
functioning in the United States of America is the strong political relationships which
the country shares internationally.

Part 2.1.1 Market research of the United States of America
contd…
 Economic factors:
 The first economic factor which
TAF should take into account
while making its strategies is
GDP of the country.
 The second economic factor
which the fintech companies
should consider to enter the
market of the USA would be the
value of the USD in the
international currency market.

Part 2.1.1 Market research of the United States
of America contd…
 Technological factors:
 The level of technological
advancements directly impact the
numbers of the financial transactions
fintech platforms owned by particular
companies can handle.
 Financial technology platforms are
prone to data theft and cyber security
risks. Hackers try to steal the financial
details of the users of the platforms,
both companies and individual
consumers to get access to their funds

Part 2.1.1 Market research of the United States
of America contd…
 Social factors:
 The social factors of the United States are one of the
most important factors which promote the fintech
industry.
 The disposable income in the American society is around
USD 45284 with around 70% people between 15 to 64
years are employed (Oecdbetterlifeindex.org. 2020).
This means the people of the USA can afford to buy
expensive goods like high end electronic gadgets. These
high value purchases necessitate payments using fintech
platforms.
 The shops and retail outlets prefer facilitating online
payment systems to satisfy consumers

Part 2.3. Market trends
 The first trend which have come forward is the US is politically strong and has strong bilateral
relationships with both the developed and emerging markets.
 These markets provide with opportunities to the fintech companies to expand into foreign
countries.
 The second trend which is evident from the above market research is that increase in the
preference among consumers to use online payments.
 The third trend which has come to the forefront upon the market research of the US is that
technological advancements is greatly responsible for growth and expansion of the fintech
companies.

Part 2.4. Any risks and mitigating factors
 Revenue risks
 Data theft risks

Part 2.5. Market size and potential accessible
market
 The market size of the fintech industry is expected to grow by 6% average in the
future (Businesswire.com. 2019).
 The nations like the UK and Singapore are strong fintech markets (Adamovich
2018).
 This means that The American Fintech Inc. would be able to expand into these
markets in the future to strengthen its competitive position and financial
strength.

Part 3. Customers
 Part 3.1. Customer segments:
 The two main customer segments which TAF would aim would consist of
business customers and individual customers.
 The segment among the business customers which the company would target
primarily would consist of the small and medium sized firms which cannot
afford expensive fintech platforms like Amazon.
 The company would also serve large scale firms.
 The individual customer segments which the company would aim to serve with
its fintech products would be consumers who prefer making online payments.

Part 3. Customers
 Part 3.2. Customer behaviour:
 The main customer behaviour which The American
Fintech Company would seek would be preferences
for making online payments.
 The company would encourage this behaviour of
customers of making online payments instead of cash
payments by offering discounts and cash back offers
on making online payments.

Part 3. Customers
 Part 3.3. Average customer spend per
transaction and frequency of transacting:
 The average amount of money which customers
spend in the US to make online payment is
around $200.
 One can also point out that since more numbers
of consumers today prefer making online
payments, it can be inferred that the frequency of
making online payments is on the rise.
 The businesses prefer making online payments
since the amount of payments they require to
make is usually huge. Online payments results in
payments made on real time basis which enables
them to purchase bulk inventory and acquire
assets like property in shorter span of time.

Part 3. Customers
 Part 3.4. Data tracking method:
 TAF should track the usage of its fintech platforms by tracking the bodies of data like
payment details and amount in very stringent manner.
 The company should partner with reputed cyber security firms to ensure that platforms
are relatively free from data security thefts.

Part 3. Customers
 Part 3.5. Customer services:
 The American Fintech Inc should provide round the clock customer services on its
platform.
 The customers would be able to get instant assistance from the customer service staff
members on mobile communication and email if they face any problem while
operating the fintech platform owned by TAF.
 Part 3.6. New customer target markets:
 TAF should acquire new customer bases in target host markets and expand overseas.
 The first host market which the company would enter would be the UK followed by
the EU.
 The company would also enter the emerging Asian economic giants like India and
China.

Part 4. Financials
 Projected cash flows:
Cash flow and profit and loss forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales revenue $ 50,000 $ 52,500 $ 55,125 $ 57,881 $ 60,775
Cost of goods sold
$
(20,000)
$
(21,000)
$
(22,050)
$
(23,153)
$
(24,310)
Gross profit $ 30,000 $ 31,500 $ 33,075 $ 34,729 $ 36,465
Expenses:
Selling and administrative
expenses
$
(5,000)
$
(5,250)
$
(5,513)
$
(5,788)
$
(6,078)
Other expenses
$
(2,000)
$
(2,000)
$
(2,000)
$
(2,000)
$
(2,000)
Depreciation expense
$
(6,000)
$
(6,000)
$
(6,000)
$
(6,000)
$
(6,000)
Total expenses
$
(13,000)
$
(13,250)
$
(13,513)
$
(13,788)
$
(14,078)
Profit before tax $ 17,000 $ 18,250 $ 19,563 $ 20,941 $ 22,388
Income tax expense
$
(5,100)
$
(5,475)
$
(5,869)
$
(6,282)
$
(6,716)
Profit after tax $ 11,900 $ 12,775 $ 13,694 $ 14,658 $ 15,671

Part 4. Financials
 Breakeven analysis:
Breakeven sales
Year 1 Year 2 Year 3 Year 4 Year 5
Contribution margin 60% 60% 60% 60% 60%
Total fixed costs
$
13,000
$
13,250
$
13,513
$
13,788
$
14,078
Breakeven sales
$
21,667
$
22,083
$
22,521
$
22,980
$
23,463

Part 4. Financials
 Ratio analysis:
Profitability and financial ratios
Year 1 Year 2 Year 3 Year 4 Year 5
Profitability Ratios:
Gross profit margin 60% 60% 60% 60% 60%
Net profit margin 24% 24% 25% 25% 26%
Financial ratios:
Current ratio 5.00 4.11 3.50 3.38 3.00
Quick ratio 5.00 4.11 3.50 3.38 3.00
Debt to equity ratio 2.13 1.82 1.44 1.38 1.42
Debt ratio 1.47 1.55 1.69 1.73 1.70
Return on investment 25.87% 26.07% 24.90% 25.94% 27.98%

Conclusions
 It can be observed from the above analysis and discussion that, the
proposed business plan is having a good profitability and sustainability.
 The industry is not that much crowded by companies.
 Hence, it could be a good opportunity for the business to accept the
proposal and start the business.

Thank You..!!