MAPS Business Plan Outline

Startups
A startup is an organization formed to search for a repeatable and scalable business model. Startups are
often product-centric and characterized by innovation.
-http://www.quora.com/Startups

Contents
1.

Executive Summary ........................................................................................................................3

2.

Company Description .....................................................................................................................4

3.

Industry Analysis ............................................................................................................................5

4.

Products & Related Services ..........................................................................................................6

5.

The Target Market..........................................................................................................................7

6.

The Competition.............................................................................................................................8

7.

Marketing Plan & Sales Strategy ....................................................................................................9

8.

Operations....................................................................................................................................10

9.

Management & Organization.......................................................................................................11

10.

Long-Term Development & Exit Plan.......................................................................................12

11.

Financial Data & Projections ....................................................................................................13

12.

Appendices...............................................................................................................................16

1. Executive Summary
Mobile software development is the process of transforming existing software used
by computers into software which can be used in any mobile device. It also refers to the
creation of new software such as mobile web and mobile applications for mobile devices.
Mobile software can be developed by using different platforms and programming
languages based on the type of mobile device the software is being developed for.
Different mobile devices use different hardware components; therefore, their mobile
software and mobile applications have to be developed using different software
architectures. Mobile software development is a difficult process because users of mobile
applications have different preferences; therefore, mobile services providers have to
develop applications based on the demand of the users. In consequence, extensive
improvements to traditional systems development methodologies need to be done in
order to keep up with the demand from the users of mobile systems.
Most of the systems being used are based on the model-driven software which has
three different aspects for the development of the application: (1) the application itself
and its structure, (2) the business logic and (3) the graphical user interface of the
application.

2. Company Description
MAPS Pvt Ltd, a Pune, India based company, will be a small to medium software
firm, that will develop mobile applications on emerging platforms Android and iPhone
and Tablets. The company will be located at Kharadi , Pune, Maharashtra, India.
Mission Statement
The company's goal is that of a multi-faceted success. Our first responsibility is to the
financial well-being of the company. We will meet this goal while trying to consider;
1)
2)
3)
4)

Diversity and Equal Opportunity employment.

Acquire a 1% market share in the first year and establish a brand name.
Conduct business with no compromise on Ethics.
Innovation would be the soul of the organization.

Development & Status

At Ideation stage currently.

Future Plans
Upon Funding approval, Operations would commence.

3. Industry Analysis
Mobile application industry is currently highly fragmented (excluding handset
manufacturers) , comprising many small players and operating at thin margins.
The Mobile application Industry Today
Mobile application industry has a potential to grow very fast and has a potential of
growing to same or even bigger than PC Software.
The Volume of Smart Phones is growing fast, and Number of Smartphone Users is
expected to grow to more than 1 Billion Worldwide by 2014.
Some statistics on SMART phone/TABLET sales:
As per http://www.famousbloggers.net/wp-content/uploads/2012/03/cumulative-ipadsales.jpg ,
iPAD cumulative sales till Q1 12 is approximately 60 M and assuming Apples
share as 50% , TABLET total sales would be 120M)

As per http://www.asymco.com/2012/02/16/ios-devices-in-2011-vs-macs-sold-it-in-28-years/
The iOS platform as a whole reached 316 million cumulative units at the end of last year
(2011).
As per http://www.macstories.net/stories/apples-q1-2012-quarter-recap-and-estimates/
Cumulative sales of iPhone till 2011 was 133 M (plus other figures indicate 2012 sales as
around 30 M)
The above figures indicate that the projection of 1 B by 2014 is quite realistic we are
already close to 500 M mark.

Future Trends & Strategic Opportunities

The predicated growth trend is very positive both in short and long-term projections.

4. Products & Related Services

There is a wide range of application categories in the market today : Comics,
Communication, Entertainment, Finance, Health, Software libraries, Lifestyle,
Multimedia, New & Weather, Productivity, Reference, Shopping, Social, Sports, Themes,
Tools, Travel and Games .
MAP would focus on Productivity and Communication categories initially and later
diversify.
The Products
The products would be developed initially for Android platform. Here are some technical
details on Android

Android Android is a Linux-based platform from the Open Handset Alliance, whose 34 members
include Google, HTC, Motorola, Qualcomm, and T-Mobile. It is supported by over 34 major
software, hardware and telecoms companies. The Linux kernel is used as a hardware abstraction
layer (HAL). Application programming is primarily done in Java. The Android specific Java SDK is
required for development although any Java IDE may be used. Performance critical code can be
written in C, C++ or other native code languages using the Android Native Development Kit
(NDK).

The products would be based on market research initiated by MAPS to study the
requirements.
The product would be offered to a group of friends and family for initial beta testing
before market release.

Services
MAPS will also develop expertise in services sector, off shoring of services in
development of Mobile Applications.
Future Opportunities
These are to be identified yet. Due to rapidly evolving market it is little difficult to predict
the exact opportunities at this stage.

5. The Target Market

Initial market would be India and USA and marketing channel would be various portals
on the net.
Market Location & Customers

MAPS products would target customer profiles of Individuals initially in the first year.
Later, from second year onwards, Corporate Users, would also be targeted.

Market Trends & The Future

The Applications are not only a key to success of a mobile phone in the market, they are
also key to sustainability of growth of Telecom business with new avenues of increasing
ARPU (average revenue per user).

6. The Competition
There are a very large number of developers, spread geographically across world.
However, they are unorganized and targeting very small product development.
MAPS has a different vision, it plans to achieve the goals in an organized manner and be
ready for the future smart phones. It will target products at a high maturity level and
build up a brand in the process.
Besides fragmented small developer setups, the major cellular operators and handset
manufacturers are also developing mobile applications.

Competitor's Profile
Competing with MAPS for the target market would be a large number of companies and
it is not possible to list all here, but just for reference some top listed names in Android
Market are :
Dennis Publishing Ltd, Bifrost Studios, Tuso Technologies, Arb Studios LLC, Kumar Mettu,
Appstar Solutions, Indiagames. etc

Competitive Strategy

There are three major ways in which we will create an advantage over our competitors;

Innovation in ideation of products

Innovation in cost control while maintaining employee morale at same time

We will develop a unique model to track market needs and wish list and translate the
same into products.
Staffing Plan: We will Outsource Programming work to a local Mobile Software
Development Company or Contractual Freelancers. Core Team would consist of
Founders, Advisor and Key Consultants. Design , User Experience and UI would be
owned by the Core Team.

7. Marketing Plan & Sales Strategy

Market Penetration
Market Penetration would be measured for the category in which MAPS is participating.
Marketing Strategy
Traditionally the marketing strategy has been word of mouth publicity and online reviews
and feedback and ratings.
We would follow the same approach. Additionally, we would also target campuses of
schools, colleges and IT companies.
Future plans and Strategic Opportunities
We would be working towards tie ups with larger Organizations for outsourcing of their
mobile application development requirements.

8. Operations
Facilities & Offices
Office would be presently at a residential apartment, Venkatesh Flora, Mundwa, Pune.
This will be moved to an IT park after 2 years.
Hours of Operation
Flexi timing.
Employee Training & Education
The programmers would be contractual , they would be mentoring by experienced
consultants in Core Team.
Systems & Controls
Quality frameworks would be implemented from DAY 1. This would be under direct
supervision of the management.

9. Management & Organization

Key Employees & Principals
Sandeep Jain is director of MAPS.
He has a good track record of experience and success in IT and in particular Telecom
industry . His management style is innovative and in keeping with the corporate style
outlined in the mission statement.
Compensation & Incentives
MAPS will offer competitive wages and salaries to all employees. There is no benefit
package planned for first 2 years. But there will be some other long term incentives
planned that will sustain motivation without adding to immediate costs of the company.
Board of Directors
Sandeep is the only Director at present.
Consultants & Professional Support Resources
Outside consultants would be involved at intermittent periods to give a jump start and
accelerate the development process.
Management to be Added
Project/Delivery Manager is to be identified and added to the team.
Management Structure & Style
Sandeep will be the President and Chief Operating Officer.
Ownership
Sandeep Jain and the stockholders will retain ownership with the possibility of offering
stock to key employees if deemed appropriate.

10.

Long-Term Development & Exit Plan

Goals
MAPS is an innovative concept that targets a new, growing market. We assume that the
market will respond, and grow quickly in the next 5 years. Our goals are to create a
reputation of quality, consistency and innovation, that will make us a leader in our
segment.
Strategy
We will address unique positioning with the Apps arena and eliminate branding as me
too. There is sufficient space for new comers as well.
Challenges
First Round of funding would also be a major challenge as the business proposal would
be at a conceptual stage while seeking the investment.
Milestones
1st Year: Publish 5 medium size applications on Android and iOS platform and establish a
Brand name and develop a core competency in the field.
2nd Year: Take the business to next level and acquire next round of funding.
Risk Evaluation
With any new venture, there is risk involved. The success of our project hinges on the
strength and acceptance of a fairly new market. Below are some obvious risks in this
area.
-

Keeping Pace with Moving target, fast evolving hardware and software
Evolve and Deliver a business model in aggressive schedule
Maintaining and growing core competency and knowledgebase in an attrition
prone industry
Identifying potential application needs within India and similar markets is feasible
but doing across geographies and cultures, would require scaling unchartered
territories.
Overlap of scope of any projects with anything coming out from giants like
Google.

Exit Plan
Ideally, MAPS will expand to about 200 employee in the next 5 years. At that time, we
will entertain the possibility of a buy-out by a larger IT company.

11.

Financial Data & Projections

Financial statements have been prepared for Costs projection as of now. It is a little
early to estimate the assets (applications) value and project revenue from sales or
services.
Total Costs
1st Year Annual Costs
Total Monthly Costs
1st Year Annual + Monthly Costs

Rs
1,318,000
968,400
2,286,400

USD
22,724
16,697
39,421

Year 1 Annual Costs

Outsourced Development Cost for SMS Scheduler
Outsourced Development Cost for Meeting
Collaboration
Company Secretary Incorporation/Consulting Charges
Real Estate Agent
Office Furniture+Fixtures
Desktops / Laptop
Printer
Mobile Phone and TABLET for Testing
Accounting Services
Registration at Android Market Place
Insurance and Legal Stuff
Training
UPS
ROUTER

Rs
500,000

USD
8,621

500,000
10,000
10,000
100,000
60,000
6,000
75,000
10,000
5,000
10,000
10,000
20,000
2,000

8,621
172
172
1,724
1,034
103
1,293
172
86
172
172
345
34

Total
1,318,000
22,724

Year 1 Monthly Recurring Costs

Consultant Charges
Office Rental+Utility Bills
Stationery
Mobile Application Testing Services
Communication Costs-Internet
Communication Costs-Telephone
Local Travel
Other Office Supplies/Consumables
Office Attendant
Meeting / Event / Seminar /
Conferences
Market Surveys
Periodicals
Lunch with Advisors

Monthly Costs

Annual
Costs

Annual Costs
(USD)

10,000
20,000
200
5,000
1,500
1,500
15,000
10,000
8,000

120,000
240,000
2,400
60,000
18,000
18,000
180,000
120,000
96,000

2,069
4,138
41
1,034
310
310
3,103
2,069
1,655

3,000
3,000
500
3,000

36,000
36,000
6,000
36,000

621
621
103
621

Total
Rs
968,400

Deposits
Office Lease

Rs
60,000

USD
1176

USD
16,697

Start UP Stages
Technical
Feasibility

Commercial Grade
prototype in 1
Year

Self Assessment

Market Analysis

Pre-Seed Funding ($50K)

Business Plan

We are
here

12.

Appendices

References
http://www.excellny.com/uploads/File/Start-Up%20Stages-091506S.pdf