Cloud Computing Service Provider Business Plan

This assignment provides a detailed business plan for a cloud computing service provider, covering various aspects such as target markets (smart-sized hotels and bed and breakfast businesses), customer segments, channels (personalized services and online services), customer relationships (quality, efficiency, reliance, and business integrity), cost structure (license, administrative expense, marketing, and capital expense), revenue streams (unique platform delivery and personalized consultation services), value proposition (better information access and sound reporting), cash flow analysis (pre-operating year to year 3), profit and loss statement (year 1 to year 3), and personnel budget. The plan includes specific financial projections, including net cash flow and net profit for each year.

Business Venture Proposal

Table of Contents
OUTLINE OF THE BUSINESS PLAN..........................................................................................1
Background of the proposed business.........................................................................................2
Vision...........................................................................................................................................3
Mission........................................................................................................................................3
Business goals..............................................................................................................................3
Core value....................................................................................................................................4
Market segmentation for the target market selection..................................................................4
Customer analysis........................................................................................................................5
Business environment..................................................................................................................5
Market research...........................................................................................................................5
Canvas business model................................................................................................................6
Market and competitor analysis...................................................................................................6
Management of the business and employees...............................................................................7
Distribution and supply chain management................................................................................8
Promotional plan..........................................................................................................................8
PESTLE analysis.........................................................................................................................9
SWOT analysis..........................................................................................................................10
Marketing strategy.....................................................................................................................13
Marketing plan...........................................................................................................................14
Implementation plan..................................................................................................................14
Anticipation on the problem and risk and way to overcome from it.........................................15
Financial projection...................................................................................................................15
Cash flow...................................................................................................................................17
Profit and loss statement............................................................................................................17

Funding requirement..................................................................................................................18
Break-even point........................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
APPENDIX....................................................................................................................................23
Canvas business model..............................................................................................................23
Appendix 1: Cash flow analysis................................................................................................23
Appendix 2: Profit and loss statement.......................................................................................24
Appendix 3: personnel budget...................................................................................................25

Index of figures
Figure 1 Core values of Business Innovation Technologies...........................................................4
Figure 2 Porter's 5 forces model......................................................................................................6
Figure 3 Pestle framework for external analysis.............................................................................9

OUTLINE OF THE BUSINESS PLAN
Company Name: (BIT) Business Innovation Technologies Inc. (BIT)
Business Idea:Providing internet-based cloud business intelligence and big data analytics
services to small and medium scale businesses in the UK.
In today’s era, IT industry undertook major changes in the corporate world through
different means such as digitalization, cloud computing, artificial intelligence, data security,
analytical software and others. Such IT meta-trends, more importantly, new software and
technologies gain high demand in the global market as companies use different business
analytics software for the data mining, analysis, performance evaluation, prediction and
computerized management of their regular operations. Evidencing from the current statistics, in
Europe, UK became the leading nation in digitalized and technological investment which
contributed £97bn to the economic GDP.
Therefore, the proposed business plan will develop a unique digitalized platform and will
deliver cloud computing services to the consumers.BIT aims at using cloud computing services
that will be offered to small sized companies like hoteliers and Bed and breakfast companies
(B&B) with cloud ERP, cloud hosting technologies and Management Information Technologies
(MIS) as well. The reason behind this is due to lack of adequate funds, Small sized businesses
like small hoteliers are unable to integrate their all the business functions through MIS as it is
available at high cost; hence, they prefer manual system. Two of the main reasons as to why
companies are increasing their use of Business Intelligence in the cloud services sector include;
cost and flexibility. Other reasons are the decreased software/hardware maintenance, the
implementation speed, speed of deployment and reduced administration costs as well.
Furthermore, the company will provide a wide array of IT solutions which will revolve around
various areas such as cloud services, security, manufacturing, distribution, systems integration,
business continuity and so on. However, initially, the prospective business will specifically target
bed and breakfast (B&B) or small sized hotels so as to build trust, integrity and resilience. It is
necessary because the proposed business will be going to host confidential and highly important
data on the behalf of other companies therefore; entity can only attract more and more consumers
through building integrity and trust among them. It will focus on satisfying the user’s needs and
operations such as inventory management, automated manufacturing, room booking, check-in
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and check-out, rent per room, total sales, costs, profitability, merchandising, hotel booking on
web, on consumer visiting, through mobile app and other areas of business. Thus, the system
functioning will be designed keeping into account their business requirement. All the small sized
hoteliers and Bed & Breakfast (B&B) founded in UK will be the target audiences of the
proposed business. For the funding purpose, it will collect required capital from different sources
such as personal savings and bank borrowings.
Background of the proposed business
Business Innovation Technologies (BIT) will be a collective group of various application,
technological platform, infrastructure, hardware and software and various business practices that
will enable the entity to analyse the big database to optimize prudent policy formulation and
sound decisions. Thus, its data analytics software i.e. cloud ERP, MIS and others will provide
services of information collection, analysis and sound decisions so as to maximize business
performance of small sized UK hotels and B&B businesses.
(Source: Gevorgyan, Krob and Spencer, 2016)
It will provide them various data analytics software like cloud ERP, MIS and other along
with the personalized consultation services so that small sized businesses will not need to spend
a lot of money to purchase the software just by outsourcing the data base integration &
management system to the experienced professionals (Barringer, 2012).
Reasons to choose BIT
 Outperforming competitors in the hospitality industry
 Prudent and sound decision-making through historical performance evaluation and future
forecasting
 Reaching industrial benchmark position
 Business growth, progress and long-run sustainability
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 Better reporting
Vision
The key vision of the BIT is “To gain a leading position in the data analytics and
business intelligence industry by the end of 2025”
Mission
The mission of the company is “To provide highly innovative and technological platform
to small and medium sized businesses in UK at competitive prices”.
Business goals
 To provide a unique technology platform to the UK SMEs
 To reduce the gaps between small and medium sized businesses and ICT advancement
through providing them innovative cloud computing services
 To maximize business efficiency and minimize database management issues
 To provide data collection, management and integration facilities with high security and
privacy
 To promote business capability and productivity
 To facilitate efficient and prudent decision making process and better policy formulation
 To provide better excess to the managerial team through keeping all the information at a
single database
 To generate maximum sales and highest return on the total revenue by delivering great
quality offerings
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Core value
Figure 1 Core values of Business Innovation Technologies
Market segmentation for the target market selection
Segmentation, Targeting and Positioning approach
STP is a strategic approach and considered as one of the most important framework to
determine the target market. It helps marketers to identify the target market whose requirement
will be assessed and examined to engage with the target audiences.
Segmentation: This process involves categorizing the market into different parts
considering various elements and factors i.e. demographic, psychographic, and geographic and
others (Grant, 2016). For the Business Innovation Technologies (BIT), company will segment
their market into small, medium and large sized businesses considering demographic factors.
Moreover, taking into account the geographical segmentation, it will segregate the market
considering the country as a factor of market segmentation.
Targeting: It is not possible for the company to serve the needs and expectations of the
entire consumer’s population as their demand may vary from each other. Therefore, it has been
decided to select a target market whose desires and expectations will be prioritize by the entity.
In the context of BIT, it will target only the small sized hoteliers and small & medium sized bed
and breakfast businesses that are operating in UK (Gevorgyan, Krob and Spencer, 2016). It is
because; the planned business involves collection, integration and management of their huge
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EfficiencyExpertiseQuality

quantum of database which requires high integrity & trust. Therefore, initially, by targeting small
sized businesses, it will be able to build trust and resilience and afterwards, more and more
audiences can be attracted to the BIT for promoting growth.
Positioning: A portfolio of Innovative business analytics software and the best
consultation services through a team of competent and experienced professionals will be the part
of its positioning strategy (Aithal, 2016). It will encourage and attract more and more proportion
of the target population to use its services and maximize BIT’s competitive strength and brand
reputation.
Customer analysis
Due to shortage of adequate fund availability and less access to capital, small sized
hoteliers and B&B businesses are not able to use big data analytics software as it requires
excessive funding (Blank, 2013). However, the planned business will definitely bridge such gap
by providing data analytics software i.e. cloud ERP, MIS and others to the small sized businesses
at competitive rates. They will be able to use such services as they not will be required to
purchase software and just need to provide their critical data to the analytics that will integrate
and analyze the data using updated software with high privacy and confidentiality. Initially, BIT
will target such audience to build trust so that afterwards, company can target other businesses
too like retail sector and others and gain success (Gevorgyan, Krob and Spencer, 2016).
Business environment
The two most important reasons why business intelligence is growing in the market
comprises cost and flexibility. Besides this, decrease cost of hardware and software maintenance
and high speed provide various IT solutions which covers various areas of cloud computing
business i.e. security, manufacturing, distribution, system integration, performance analysis and
others (Barringer, 2012). Thus, it becomes clear that there are opportunities in the market for the
potential entrepreneur to set up his own business intelligence company, BIT.
Market research
Data Explosion is a revolutionized business which provides robust data analytics services
to the companies to support data analysis and decision-making process. It becomes the forefront
of the British success story and it focuses upon expanding digital tech sector comprising business
intelligence, data analytics and others (McGoogan, 2017). Thus, it provides opportunity to the
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ventures to bring unique technologies for the businesses to streamline their operations through
digitalization. Therefore, it has been decided to open a cloud computing business named BIT that
will provide various data analytics software like cloud ERP, MIS and other along with the
personalized consultation services to the small sized hoteliers and B&B (Ham, Park and Jung,
2012).
Canvas business model
Refer to Appendix
Market and competitor analysis
Porter’s 5 forces is the great tool for examining the market through the analysis of
competition in the industry, enumerated underneath:
Figure 2 Porter's 5 forces model
(Source: Bohnsack, Pinkse and Kolk, 2014)
Threat of New Entrants: From the past few decades, the IT industry reported a rapid
growth with the high market demand. Lower up-front cost, faster time, reduced financial riskand
high growth potential of the market encourage entrepreneurs to set up their own cloud computing
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business, still, on the other hand, high cost of infrastructure development stated that threats of
new entrants is low in the industry (Albrecht, Albrecht, Holland, Holland, Peters and Peters,
2016).
Bargaining Power of Buyers: Buyers have number of choices from where they can get
advanced and updated big data analytics software and cloud computing services i.e. ERP, MIS
and others. Thus, bargaining power of consumers can be considered high.
Threat of Substitutes: There are number of cloud computing companies such asMetaphor
IT, Host Venture, Acertis, Appware and others who are delivering quality software to the users,
still, their software cannot be considered as close substitute because they run different functions
and operations considering the client’s need, hence, threat of substitute is low (Zhao, Zuo, Wu,
Yan and Zillante, 2016).
Suppliers’ Bargaining Power: Lack of IaaS providers in the country demonstrates high
bargaining power of the suppliers where they can charge desired prices from the companies
operating in BI industry.
Industry rivalry: There are number of businesses such as Cloud Monkey Ltd, DAGEOP,
Ampflex, Metaphor IT, Pwc, Accenture, Oracle, Acertis, Appware and others who are serving
major proportion of the market, thus, it is probable that BIT will face tough & stiff competition
from the competitors (Hu and Yang, 2016).
Management of the business and employees
Management of employees is necessary to increase the productivity of the business. BIT
has made plan to manage its staff members in order to increase their effectiveness and efficiency
at work place. BIT plans for employees’ management which is as follows:
 The company will focus on behaving properly with each and every individual working
with an organization. Treating workers equally encourage them for effective functioning
of production operations.
 BIT will provide adequate training to staff of every department to ensure proper
functioning. The firm is focusing on investing in leadership training for employees so that
they can perform effectively in every stage of organizational functions (DaSilva and
Trkman, 2014).
 The firm will also focus on conflict management of employees because when disputes are
most common within organizational environment.
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Distribution and supply chain management
BIT will follow a structured distribution and supply chain management system where it
provides personalized services to the hoteliers and bed and breakfast companies. The services
delivered to them depend upon their necessity and is tailor made according to their requirements.
The customers are required to tell the personnel involved about their preferences of software and
what they want to get customized in it. The entity provides option of pricing based upon the
selected configuration and services.
BIT picks the order from customer's side and asks for their requirements through which
software is required to be prepared. The personalised services give liberty to the client and the
entity to discuss the model to be prepared in better manner. Further, after completion of the
order, it is then transferred to the customers (Sevkli, Oztekin, Uysal, Torlak, Turkyilmaz and
Delen, 2012).
Another way of service distribution is providing services through online portal where no
interaction between the client and entity happen to take place. Cloud computing is performed
through monitoring the work, preparing the financials, checking database, network, block storage
of data etc. Further, it helps in developing and delivering based on customer's demand. It plans,
develop and deliver to the clients according to right course of actions. It also navigates large
amount of information provided by the client and investigate it in deeper manner (Luo, Roach
and Jiratchot, 2016).
Promotional plan
Promotional plan is kind of integral activity of the business enterprise. It is important
activity in order to achieve desired objective. Without the planning of effective promotional plan,
the marketing plan of the firm could waste. A promotional plan should be excellent in order to
bring profitability in the organization. The cost per action is referred as cost per acquisition it’s
like an advertising pricing model which is helpful in making effective promotion planning. At
this model advertiser pays for particular acquisition which can add profitability and productivity
in the business enterprise.
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PESTLE analysis
Figure 3 Pestle framework for external analysis
(Source: Zott and Amit, 2013)
Political factors: IT companies needs to comply with the political rules and regulations
i.e. security network policy, data protection act and other policies. In order to adhere with such,
BIT needs to make appropriate internal business management policies& plans i.e. information
management, privacy & security and others.
Economic factors: Economic downturn brings difficulties for the companies whereas
boom period promotes the industry growth. In current times, it is the fact that cloud computing
industry is growing rapidly with the economic growth (Seifu, 2016). UK is considered as the
early adopter of cloud technology and now the industry reported an impressive growth as more
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and more businesses are taking services of big data analytics software for keeping their database
safe and secure and support decision-making process.
Social factors: Although, rising growth in the market provides an opportunity to company
to maximize sales due to high demand, still, at the same time, change in their concern and need
for the data base integration, management and analysis bring necessity for the BIT to focus on
consumer specification (Rothaermel, 2015).
Technological factors: Virtualization, high security, privacy and compliance, database
management, programming enhancement, metering, adaptability, resource control are the key
technological factors which needs to be focused by the BIT so as to provide best cloud
computing services to the users (Luo, Roach and Jiratchot, 2016).
Legal factors: In UK, cloud computing industry is regulated by different laws and
regulations like Data protection law, Auditing standards, security legacy, software license and
others, hence, change in any of the legislation may bring difficulties for the BIT i.e. new
accounting regulations, laws, cost of license and others (Khodaparast Sareshkeh, Razavi, S.M.H.,
Rezaee Soufi and Safania, 2016).
Environmental factors: BIT can applying environment friendly approach in their function
i.e. outsourcing will enable it to minimize consumption of natural resources energy. Now-a-days,
companies put excessive investment in maintaining eco-friendly data integration & management
system which will minimize equipment wastage and reduction in hardware limit redundancy
(Srdjevic, Bajcetic and Srdjevic, 2012)
SWOT analysis
SWOT is an analytical tool that helps to examine the internal business strength and
weaknesses whereas under the external analysis, it helps to examine opportunities and
weaknesses. For the proposed business BIT, the SWOT analysis is conducted here as under:
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Strength:
Innovative platform: BIT will provide internet based cloud business intelligence and big
data analytics software to the small sized hoteliers and Bed & breakfast companies. Thus,
innovative technological platform will be the core strength of the enterprise through which it will
be able to attract more and more businesses and provide them the best software for the data
analytics and management which will build trust and integrity (Feng and Liu, 2017).
Information technology professionals: BIT will hire a team of highly talented and
experienced professionals in the business who will design data analytics software and provides
cloud computing services to the users through the internet. With this, users will be able to
integrate their large data into a single data base where they can access any information any time
and examine their performance. High data security also helps in business automatization and
minimizes high cost due to paperwork (Seifu, Dahiru, Bass and Allison, 2016).
Capital adequacy: BIT’s finance professional will acquire capital using both the debt and
equity resources. Moreover, proper maintenance of financial source through continuous
supervision & monitoring ensure adequate capital arrangement in the business and prevent itself
against financial risk due to market uncertainty.
Weaknesses:
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StrengthInnovativeplatformInformationtechnologyprofessionalsCapitaladequacyWeaknessHighcostofinfrastructureResourceconstraintsThreatsRapidtechnologicaladvancementIntensityofcompetitiverivalriesLackinglaaSproviders

High cost of infrastructure development: The biggest weakness is in order to create the
technological platform; entity will need high amount of financial resources, hence high
investment and funds required to set up infrastructure is the major weakness of this sector.
Resource constraints: The proposed business will need an innovative infrastructure, a
group of professionals and skilled staff, funds and others, thus, lack of availability of required
resources also might be a weakness (Aithal, 2016).
Opportunities:
Growth in consumer demand: In today’s era, mega IT trends i.e. new software and
technologies gains high demand in the global market as companies use different business
analytics software for the data mining, analysis, performance evaluation, prediction and
computerized management of their regular operations. Thus, it brings into larger demand for the
BIT’s cloud computing services as a result; it will be able to gain larger sales through attracting
more audience base.
New software development: Over the period, BIT can also develop more standardized and
innovative data analytics and cloud computing software adding more functionality so as to
expand their market share and strengthen competitiveness (Wu, Song and Kang, 2016).
Expansion: As decided, in the initial period, the business will target only the small side
hoteliers however over the period; it will be able to expand their target market to medium sized
businesses like retailers, cafes, restaurants and others for whom the software will be designed to
provide cloud services with high security (Siciliano, 2016).
Threats:
Technological advancement: Fastly moving BI industries with the widespread growth of
innovations and technologies in the sector may be a possible threat which has an adverse impact
on the business functionality. Therefore, it seems really important for the BIT to utilise new and
updated techniques to design unique and creative database that perfectly tailor use database
management requirement.
Intensity of competitive rivalries: In UK, Metaphor IT, Host Venture, Cloud Monkey Ltd,
DAGEOP, Ampflex, Acertis, Appware and others are some of the best cloud computing
companies with whom tough competition will be faced by BIT (Feng and Liu, 2017).
Lacking IaaS providers: lack of infrastructure-as-a service providers in the UK also may
bring possible hurdles to the business in the field of cloud computing service deliveries.
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Marketing strategy
Marketing is the process through which BIT will persuade their offerings in the front of
audiences and encourage them to buy their software i.e. cloud ERP, cloud hosting technologies
and management Information Technologies (MIS) and others so as to drive larger sales volume.
7Ps of Marketing mix
7Ps of marketing Strategy
Product Product portfolio: Hardware and software i.e. Application, database
management and analytical software, ERP, MIS, operating system
Services portfolio: consulting, data storage, management and analysis and
networking
Price Pricing mechanism put direct emphasis upon sales and profitability therefore, it
is important for the company to employ an effective pricing policy. Being a new
start-up and considering the stiff competitionit has been decided to use a
competitive pricing policy wherein BIT will consider the charges of rivalry
firm’s products and services and make their own pricing decisions considering
their own software specification and differentiation from that of competitor’s
offerings (Yaghubian, Mahmoudi and Tiji, 2016).
Place In order to gain a position of industry player in the BI industry, BIT will deliver
services to the small and medium sized companies in UK through online.
Moreover, it will also provide cloud computing ERP, MIS and other data
analytics software to the users through its office and authorized distributors
inside UK (Armstrong and Kotler, 2005).
Promotion Over the period, sophistication of consumer demand makes it necessary for the
BIT to provide personalized services to the user so as to satisfy their own
expectations. In this regard, TV ads, website, social networking sites & a mobile
app will be decided to be launched so as to create brand awareness among target
audiences. Besides this, personalized attention of the professionals and staff will
help to promote WOM (word of mouth) publicity in the market (Tuten and
Solomon, 2014).
People Talent acquisition & its efficient management is also very important for the
Business Intelligence Technologies so as to successfully compete with the
rivalries. BIT will outsource its hiring process so as to acquire the best talented
and experienced people in the field of IT sector. Hardware and software
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engineers & management personnel who have experience or if graduates passed
out from the top university of UK will be hired so as to provide best quality
cloud computing facilities & consultation services to the people at no
compromise (Zalengera, Blanchard, Eames, Juma, Chitawo and Gondwe, 2014).
Process A team of experienced staff members and professionals will be responsible to
run the business operations smoothly by making client satisfied according to
their need. Besides this, quality management, security concerns of the
confidential database of the clients through complying with high standards and
laws & compliant management system will assist BIT to ensure smooth
functionality (DaSilva and Trkman, 2014).
Physical evidences Sound administrative work through perfect collaboration with all the team
members will enable BIT to deliver the best quality of data analytics software to
the users. Its physical evidence can be found in its website where a combination
of consumer details is being listed. Furthermore, at the offices, hardware,
equipment and other details will be keep safe and secure (Luo, Roach and
Jiratchot, 2016).
Marketing plan
Preoperative
expenses Year 1 Year 2 Year 3
Print Ads 18000 25000 22000 26580
PR 2000 4000 5600 6500
Sponsorship 18000 25100 36520 45120
TV commercials 5000 3500 5200 6500
43000 57600 69320 84700
Implementation plan
In order to implement the plan successfully, entrepreneur will initially collect financial
resources and search a suitable site for locating the physical office. Moreover, entity will comply
with the regulatory requirement such as payment of license fees and others for the full
compliance. Entity will initially target the B&B and small sized hoteliers through an extensive
marketing campaign via print ads, sponsorship, TV and other modes. Trustworthy relationship
with the audiences leads to gain word of mouth publicity and enable the company to achieve
success (Dobbs, 2014). Different data analytics software that perfectly meets the requirement of
14

the clients will be focused and their functionality will be ensured to consider client safety
concerns. Technological innovations will helps business to gain more and more audience base
and maximize competiveness.
Anticipation on the problem and risk and way to overcome from it
There are various anticipated problem and risk on the basis of developing new business
venture. The business enterprise should focus on this impediment in order to make successful
adoption in new business plan. The five major hindrances are as follows:
Security- The major drawback is there document can be copied because they allow easy
access to the end users. The virtualisation of this document can be infringed which act as new
threats in the area such as virtual switches and hyper-vision.
Privacy- The privacy should be strongly maintained. It includes less accessibility in
controlling process and the availability of audit trails. They have some application on the basis of
which confidential matter can be transfer.
Offerings- They should take initiatives in order to develop strong track record of large
production as well as business system on layman basis.
Legacy complication- The legacy efforts is required to take in order to make modernize
and rational data. The whole data should move in cloud file so that accessibility can be
controlled.
Financial projection
Year 1 Year 2 Year 3
Sales 1300374 1495430.1 1719744.615
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Sales of first three years of BIT reveals that the company is having 20% increment in
each year. In the first-year sales are expected to be 1300374 which has increased to 1495430.1 in
the second year. It has further increased to 1719744.615 in the third year.
Year 1 Year 2 Year 3
Net Profit 909874 1082135.1 1280858.365
There is an increasing phase in net profits of the company.
Year 1 Year 2 Year 3
Cost of sales
Material 5000 5500 6000
Labour 22500 26500 28900
Other 400 600 580
Total cost of sales 27900 32600 35480
The total cost of sales of BIT in the first year is 27900 which have increased to 32600 in
the second year. It has further increased to 35480 in the third year of its operation.
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Cash flow
Attached in Appendix 1
BIT has been involved in the cash inflow and outflow activities. There are various areas
which resulted in outflow of cash such as, legal services, supplies, rent, licensing, travel
telephone etc. Net cash flow is in increasing phase where it is estimated to be 741750 in the pre-
operating phase of the business. Further, in the first year of its operation it managed to gather
560400 in its first year. It increased to 54305 in the second year and 519593.73 in the third year.
Profit and loss statement
P&L attached in appendix 2
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The company have experienced an increase in its net profits. It has grown from 909874 in
the first year to 1082135.1 in the second year. It has further grown up to 1280858.365 in third
years of its operations.
Personnel Budget
Refer appendix 3
Funding requirement
BIT will take bank borrowings worth 700000 with the interest rate of 15% for the loan
duration of 5 years. However, remaining capital requirement worth 223000 will be satisfied
through owner’s capital contribution. Although ban charges interest on loans still due to the tax
shields and trading on equity benefits, it is considered justifiable to finance BIT through
borrowing capital from the bank.
Break-even point
It is the point where revenues of the BIT total comes equal to the total costs.
Breakeven point
Fixed operating cost 181250
Contribution per unit 316.06
Breakeven point 573.4670632158
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Break even point for the company is 573.47 where the company will be able to cover its
fixed cost. It point indicates optimum utilisation of resources and every additional unit of sale
beyond BEP bring profit to the BIT.
CONCLUSION
Based on the above report, it can be inferred that the cloud computing business named
Business Innovation Technologies (BIT) provides various services to its client. The estimated
financial statements reveal that the company will be able to earn profits year by year. It is also
revealed that the company will be able to get enough sales revenues which will help it to cover
all the cost. Hence, it is suggested that the company can plan to invest in this business.
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22

APPENDIX
Canvas business model
Key Partners
 Professionals
 Cloud service
providers
 Vendors
 Users
Key Resources
 Capital
 Professionals and experienced
staff
 Hardware and software
 Equipment
 Others
Key Activities
 Delivering cloud
computing services
i.e. ERP, MIS and
others
 Consultation
services
 Marketing and
promotion
 Database integration
and management
 Better access to
information
 Better reporting
Customer Segments
 Smart sized
hotels
 Bed and
Breakfast
businesses
Channels
 Personalized services
 Online services
Customer Relationships
 Quality
 Efficiency
 Reliance
 Business
integrity
 Expertise
Cost Structure
 License
 Administrativ
e expense
 Marketing
 Capital
expense to
purchase
equipment,
hardware and
software
Revenue Streams
 Revenue
through unique
and innovative
platform
delivery
 Personalized
consultation
services
Value Proposition
 Better information
access and sound
reporting
 Database integration and
management
 Data analytics

Appendix 1: Cash flow analysis
Particulars Pre operating year Year 1 Year 2 Year 3
Cash Inflow
Bank Loan 700000 700000 700000 700000
Owner's equity 223000 223000 223000 223000
Total cash inflow 923000 923000 923000 923000
Cash outflow
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Licensing 111800 0 0 0
Utilities 0 5000 5750 6612.5
Supplies 8850 4500 5175 5951.25
Insurance 6000 7000 8050 9257.5
Legal 11600 4500 5175 5951.25
Bookkeeping 0 2000 2300 2645
Travel 0 16000 18400 21160
Telephone [phone]
Marketing budget 43000 57600 69320 84700
Salary 250500 250500 250500
Rent 0 12000 12000 12000
Total cash outflow 181250 362600 380695 403406.25
Net Cash Flow 741750 560400 542305 519593.75
Appendix 2: Profit and loss statement
Year 1 Year 2 Year 3
Sales 1300374 1495430.1 1719744.615
Cost of sales
Material 5000 5500 6000
Labour 22500 26500 28900
Other 400 600 580
Total cost of sales 27900 32600 35480
Gross profit 1272474 1462830.1 1684264.615
Operating expenses
Utilities 5000 5750 6612.5
Supplies 4500 5175 5951.25
Insurance 7000 8050 9257.5
Legal 4500 5175 5951.25
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Bookkeeping 2000 2300 2645
Travel 16000 18400 21160
Telephone [phone]
Rent 12000 12000 12000
Marketing budget 57600 69320 84700
Salary 250500 250500 250500
Total expenses 362600 380695 403406.25
Net Profit 909874 1082135.1 1280858.365
Appendix 3: personnel budget
per person salary Number of people Total
Lead front engineers 2000 10 20000
Lead back engineers 1500 12 18000
Sales manager 5000 5 25000
Sales representatives 2500 42 105000
Controller 3000 10 30000
Bookkeeper 1500 5 7500
Customer sales representatives 1000 15 15000
Administrative assistants 1500 2 3000
CEO 10000 1 10000
CFO 8500 1 8500
CTO 8500 1 8500
Total 250500
25