Business Plan for the American Fintech Inc.

Running head: BUSINESS PLAN FOR THE AMERICAN FINTECH INC.
Business Plan for the American Fintech Inc.
Name of the Student:
Name of the University:
Author’s Note:

BUSINESS PLAN FOR THE AMERICAN FINTECH INC.1
Table of Contents
A. Executive Summary:............................................................................................2
B. Marketing:.................................................................................................................2
Part 1. Marketing strategy:.........................................................................................2
Product strategies:..................................................................................................2
PayEasy (B2C):......................................................................................................2
PayBiz(B2B):.........................................................................................................3
Partnerships with organisations:............................................................................3
Part 2. The Market:....................................................................................................4
Part 2.1. Market description:..................................................................................4
Part 2.1.1 Market research of the United States of America:.................................4
Part 2.3. Market trends:..........................................................................................8
Part 2.4. Any risks and mitigating factors:.............................................................9
Part 2.5. Market size and potential accessible market:........................................10
Part 3. Customers:....................................................................................................10
Part 3.1. Customer segments:...............................................................................10
Part 3.2. Customer behaviour:..............................................................................10
Part 3.3. Average customer spend per transaction and frequency of transacting:11
Part 3.4. Data tracking method:............................................................................12
Part 3.5. Customer services:.................................................................................12
Part 3.6. New customer target markets:...............................................................12
Part 4. Competitor’s competitive analysis:..............................................................12
Part 4.1. Direct competitors:................................................................................12
Part 4.2. Indirect competitors:..............................................................................12
Part 4.3. USPs of competitors:.............................................................................13
Part 4.4. SWOT analysis of competitors:.............................................................13

BUSINESS PLAN FOR THE AMERICAN FINTECH INC.2
Part 5. Marketing plan:.............................................................................................13
Part 5.1. Description of marketing and advertising and PR plans.......................13
Part 5.2. Social media:.........................................................................................16
Part 6. Pricing:..........................................................................................................16
Part 6.1. How to price the products:.....................................................................16
Part 6.2. How to charge:.......................................................................................17
Part 6.3. Brand positioning and margins:.............................................................17
Part 6.4. Comparison with the competitors:.........................................................18
C. Operations:..............................................................................................................20
Part 1. Product/services:...........................................................................................20
Part 2. Method of product/service manufacturing operations:.................................20
Part 3. Sources of technology:.................................................................................21
Part 4. Method of selling:.........................................................................................21
Part 5. Methods of receiving payments:...................................................................22
Part 6. Methods to track customers:.........................................................................22
Part 7. Methods of using data points across business:.............................................22
Part 8. Logistics used to acquire hardware:.............................................................23
Part 9. Legal aspects of the business:.......................................................................23
Part 10. Regulatory aspects of the business:............................................................24
Part 11. Corporate governance:................................................................................24
Part 12. Certifications:.............................................................................................24
Part 13. Management teams:....................................................................................25
D. Financials:...............................................................................................................26
Part 1. 3 Years Balance Sheet..................................................................................26
Part 2. Month & 3 (5) Year Sales Forecast..............................................................26
Part 3. 12 Month & 3 (5) Year Cash Flows.............................................................26
Part 4. Break-Even Analysis....................................................................................26

BUSINESS PLAN FOR THE AMERICAN FINTECH INC.3
Part 5. Profitability Financial Ratio Analysis..........................................................26
Part 6. Summary of financial set up and activity to date Current cap table.............26
Part 7. Summary of forecasted financials 12 Month & 3 (5) Year Profit & Loss. . .26
Part 8. P&L Summary of highlights with Gross and Net margins, as well as average
customer spend per transaction in the summary box...........................................................26
Part 9. The actual financials – historical and forecasted – cashflow forecasts and P
& Ls,.....................................................................................................................................26
Part 10. BS Funding required Uses for finance........................................................26
Part 11. Anticipated return on investment................................................................26
Part 12. Indicate possible timing for next round funding, if appropriate Company
valuation...............................................................................................................................26
Part 13. Potential exit...............................................................................................26
References....................................................................................................................27

BUSINESS PLAN FOR THE AMERICAN FINTECH INC.4
A. Executive Summary:
The Fintech (financial technology) companies are seeing new emerging trends in the
upcoming years. The financial technology in the form of various software applications in area
of loan management, transaction, credit card system, budgeting, and project allocation of
resources are used. This paper aims to discuss how a fintech startup named The American
Fintech Inc. wants develop a payment gateway channel form of financial technology as its
business. To start a business, the paper thus discusses the proposed business plan structure
right from marketing and operations to financial plan in order to execute the business
framework.

BUSINESS PLAN FOR THE AMERICAN FINTECH INC.5
B. Marketing:
Part 1. Marketing strategy:
The strategy of The American Fintech Inc. (TAF) would be marketing financial
payment system platform which would enable users to make and receive payments. The
fintech products would be available for use of both individual consumers and business firms.
This means that that the company would engage in both B2B and B2C business. The
company would use mass marketing technique to market its fintech platform. The company
would enter into partnerships with companies operating in different sectors in order to
acquire customers and market its products. The marketing strategies of the company would
be divided into two categories namely, product strategies and partnering strategies.
Product strategies:
The product strategies of the The American Fintech Inc. would consist of offering the
fintech, the products and after sales services to the existing customers. The following are the
two variants of fintech platforms products which TAF would market in its markets. The
initial market of the company would comprise of its home country, the United States of
America. The company at a later stage expand its business to host countries. The first host
country which the company would enter would be the United Kingdom. The following are
the two main product variants which The American Fintech Inc. would offer in its markets:
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. The
app would allow different types of payments like utility bill payments, fringe payments of as
small as single units of currency payments (like payments as small as USD 1, GBP 1 or INR

BUSINESS PLAN FOR THE AMERICAN FINTECH INC.6
1), restaurant bill payments and payments for buying products on the ecommerce platforms.
The users of the app would be able to enjoy benefits like cash back on making payments on
the app. The app would be also enable facilities like breaking up of payments and giving
reminders to people to make payments. The customers would also be able to use the app to
make payments at retail chains. However, there would be an upper threshold on the amount
which could be transferred on the platform at a given time. This would ensure that the
customers do not misuse the app to make business transactions. This upper threshold to a
certain extent enable the app prevent illegal fund transfers and money laundering.
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. There would be no
upper threshold for the business customers pertaining to the amounts of payments which they
can be receive and pay. PayBiz would enable the business customer enjoy offers like cash
back and discounts upon buying inventory from partner companies of TAF namely like
Amazon.
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 account holders of the bank would be able to download
the app and get discounts on making payments. The company would also partner with retail

BUSINESS PLAN FOR THE AMERICAN FINTECH INC.7
chains. The consumers shopping in these retail chains would be able to enjoy offers like cash
back and discounts upon making payments for purchase of products at these 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. The 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:
The following section would conduct research on the market conditions of the USA
which would impact the business operations of The American Fintech Inc.:
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. However, the political stability of the country has has declined owing to
internal political clashes yet the country remains to be one of the politically stable nations in
the world (Rusli 2017). This high level of political stability and formation of strong laws have
encouraged growth of large number companies including fintech companies. This is evident
from the fact that the US is the home to global fintech companies like Paypal (Paypal.com.
2020).