OWNERS

Ashley Horton
Amanda Mei Shien Kok
Jonathon Kugler
Emily Skrocki

CONTACT
2561 University Drive
Midland MI 48640
989-948-2353
contactjiffydelivery@gmail.com

BUSINESS PLAN
 Table of Contents
1.0 EXECUTIVE SUMMARY ...................................................................................................................... 4
2.0 OPPORTUNITY ................................................................................................................................... 4
3.0 SOLUTION.......................................................................................................................................... 5
4.0 MARKET ANALYSIS AND MARKETING PLAN ...................................................................................... 6
4.1 Marketing Research ...................................................................................................................... 6
4.1.1 Primary Research ................................................................................................................... 6
4.1.2 Secondary Research ............................................................................................................... 7
4.2 Economics ..................................................................................................................................... 7
4.3 Service from Customers Point of View ........................................................................................ 9
4.4 Customers ..................................................................................................................................... 9
4.5 Competition ................................................................................................................................ 10
4.6 Niche ........................................................................................................................................... 11
4.7 Strategy ....................................................................................................................................... 12
4.7.1 Promotion ............................................................................................................................ 12
4.7.2 Price ..................................................................................................................................... 13
4.7.3 Proposed Location ............................................................................................................... 14
4.8 Sales Forecast.............................................................................................................................. 14
5.0 PRODUCTS AND SERVICES .............................................................................................................. 16
6.0 GENERAL COMPANY DESCRIPTION ................................................................................................. 17
6.1 Mission Statement ...................................................................................................................... 17
6.2 Company Goals ........................................................................................................................... 17
6.3 Company Objectives ................................................................................................................... 17
6.4 Business Philosophy .................................................................................................................... 17
6.5 Company Strengths and Core Competencies ............................................................................. 18
6.5.1 Chief Executive Officer/Chief Finance Officer Ashley Horton ........................................... 18
6.5.2 Chief Operating Officer Jonathon Kugler .......................................................................... 18
6.5.3 Chief Marketing Officer Emily Skrocki............................................................................... 19
6.5.4 Chief Customer Officer Amanda Kok ................................................................................ 19
6.6 Legal Form of Ownership ............................................................................................................ 19
7.0 OPERATIONAL PLAN ........................................................................................................................ 20
7.1 Production................................................................................................................................... 20
7.2 Location ....................................................................................................................................... 20
7.3 Legal Environment ...................................................................................................................... 21
7.4 Personnel .................................................................................................................................... 21
7.4.1 Job Description..................................................................................................................... 22

1
 7.5 Collaborators............................................................................................................................... 22
7.5.1 Collaborators in Midland, Michigan..................................................................................... 23
7.5.2 Collaborators in Saginaw, Michigan ..................................................................................... 23
7.5.3 Collaborators in Mount Pleasant, Michigan ........................................................................ 23
7.6 Credit Policies.............................................................................................................................. 24
7.6.1 Managing Accounts Receivable ........................................................................................... 24
7.6.2 Managing Accounts Payable ................................................................................................ 24
7.6.3 Working Capital.................................................................................................................... 24
8.0 MANAGEMENT AND ORGANIZATION ............................................................................................. 25
8.1 Key Employees ............................................................................................................................ 25
8.1.1 Chief Executive Officer/Chief Finance Officer ...................................................................... 25
8.1.2 Chief Operating Officer ........................................................................................................ 25
8.1.3 Chief Marketing Officer........................................................................................................ 25
8.1.4 Chief Customer Officer......................................................................................................... 26
8.1.5 Chief Information Officer ..................................................................................................... 26
9.0 START-UP EXPENSES AND CAPITALIZATION ................................................................................... 27
10.0 FINANCIAL PLAN............................................................................................................................ 28
10.1 12-Month Profit and Loss Projection ........................................................................................ 28
10.2 5-Year Profit Projection............................................................................................................. 28
10.3 Projected Cash Flow (12-Month and 5-Year) ............................................................................ 28
10.4 Break-Even Analysis .................................................................................................................. 29
11.0 APPENDICES .................................................................................................................................. 30
11.1 Website Headers ....................................................................................................................... 30
11.2 Flyers ......................................................................................................................................... 31
11.3 App Logo ................................................................................................................................... 32
11.4 Poster for Collaborators ............................................................................................................ 32
11.5 App Examples ............................................................................................................................ 33
11.6 Proposed Location .................................................................................................................... 35
11.7 Appendix I ................................................................................................................................. 36
11.8 Appendix II ................................................................................................................................ 37
11.9 Example Terms of Contract for Collaborators .......................................................................... 39
11.10 Example Terms of Contract for Drivers ................................................................................... 39
11.11 12-Month Pro Forma .............................................................................................................. 40
11.12 5-Year Pro Forma .................................................................................................................... 41
11.13 12-Month Cash Flow ............................................................................................................... 42
11.14 5-Year Cash Flow ..................................................................................................................... 43

2
12.0 REFINING THE PLAN ...................................................................................................................... 44
12.1 Bankers...................................................................................................................................... 44
12.2 Investors.................................................................................................................................... 44

3
1.0 EXECUTIVE SUMMARY
Our company is Jiffy Delivery, a fast food and grocery delivery application geared
toward college students. We are asking for $10,000 for a 5% stake in our company. Jiffy
Deliverys owners consist of four Northwood University students including Ashley Horton
(Accounting), Emily Skrocki (Management), Amanda Kok (International Business &
Management), and Jonathon Kugler (Management).

Its hard being a college student; all-nighters, finals, and those crazy college weekends.
Students dont always have enough time (or arent sober enough) to go out and get their own
food. Some dont even have cars. Our service offers customers the option of ordering food
and/or groceries from 30+ restaurants and grocery stores in their area.

The future of Jiffy Delivery is limitless. In recent years, similar businesses have seen
tremendous growth in the college market. With three colleges in the tri-cities alone, this
service has plenty of room to grow. We eventually plan to expand into other universities in
Michigan including Grand Valley, Michigan State, and Western Michigan. We cant wait to
bring this type of service to the Mid-Michigan area.

2.0 OPPORTUNITY
In the life of a busy college student, it is often difficult to find time for going out and
getting food. They can order food or groceries from anywhere in the area and have it
delivered to their door while they remain studying on campus. With the price of tuition rising
every year, students dont always have a lot of money to spend on going out.

Our reasonably priced delivery fees would allow students to spend less cash while still
getting a decent meal. Students can also spend less time on travel to get their food and more
time on their school work. Also, many underclassmen dont have vehicles, so it is often
difficult for them to get their food, groceries, and other various supplies. Students are
becoming increasingly more tech-savvy and with the creation of Uber, the idea of seeking out
others to help them with a task, such as food delivery, is expanding. We believe that this idea
has potential due to our competitors, Grub Hub, Mr. Delivery, and EnvoyNow which
specializes in food delivery for colleges and universities. We have also done primary market
research through a survey which resulted in 90.8% of participants saying that the app was a
good idea, 76.3% saying that they would be interested in it, and 53.3% saying they would like
this service.

4
3.0 SOLUTION
There are several food delivery applications currently available, but not many focus
on smaller communities such as the tri-cities. It is difficult for students living on campus,
especially at universities such as Northwood University and Saginaw Valley State University,
to get food. The Jiffy Delivery solution is to bring quick and easy food delivery to these less
urban areas. Students can log onto our application, order their fast food meal, and wait for
our friendly team of drivers to bring their items right to their door. Another need that these
other delivery services dont provide are access to groceries. It can be difficult for students on
campus without access to a vehicle to go out and get groceries. Also, after a long day, no one
wants to go out to the store, search for items, stand in line, etc. Jiffy Delivery offers a delivery
grocery service because we understand that life gets busy.

5
4.0 MARKET ANALYSIS AND MARKETING PLAN
4.1 Marketing Research
4.1.1 Primary Research
We conducted a survey that was sent out through social media to
determine the feasibility of this business.
For our research, we have a total of 79 respondents in which 1.3% is 17
years or younger, about 59% are predicted to be from the age 18 to 22, 15.4%
are 23 to 27 years old, 3.8% are between the ages of 28 to 32, and 20.5% are
32 years or older. A total of 74.4% of our respondents are in the range of our
target market (18 to 27).
Approximately 41 of the respondents live within Midland, Michigan,
about 12 from Saginaw, and 6 throughout Mount Pleasant. As these
respondents are from our target location, we are able to foresee the needs of
our target market.
Over 60% of the respondents consisted of college/university students.
The majority of our surveyors are currently attending or attended Northwood
University, as well as CMU and SVSU. 80.6% are currently employed, which
means that they will have the purchasing power. Some even commented that
with school and work, it would be great to have an app that could help them
work out their time management. 99% of the respondents own a smartphone
and would be able to use the app.
A handful of the respondents mentioned that they would prefer to
have their meals at home. To help accommodate this scenario, Jiffy Delivery
provides a service to bring the meals to the customers. Knowing this, over 90%
expressed that they believed that this app was a good idea and would be
interested in using it. A respondent shared was their concern with a stranger
coming to their house to deliver food. With this, Jiffy Delivery has implemented
a compulsory background check for all drivers to ensure a safe delivery to each
of our customers.

6
 4.1.2 Secondary Research
We conducted many researches regarding this business through
websites and articles related to our competitors - EnvoyNow, UberEATS,
GrubHub, ezCater, and BringMeThat that assisted us in aligning our
competitive strategies and goals. Further research into the competition in
general gave us the ability to try and incorporate an edge to Jiffy Delivery.
For our market research, we have found statistics of the population in
the areas. Currently, the population for Midland is 42,181 people, the
population for Saginaw is 50,303 people, and for Mount Pleasant, 26,185
people. There are 6,829 students currently enrolled in Northwood University,
approximately 10,000 students in Saginaw Valley State University, and 26,968
students in Central Michigan University.
We also searched up the numbers of international students in these
universities as they will be perceived to be using most of our services,
considering most of them have no personal transport. In Northwood University,
there are 1,473 international students, for Saginaw Valley State University,
there are approximately 600 active international students, and 2,710
international students in Central Michigan University.

4.2 Economics
The total size of our market currently entails those university students that
attend Saginaw Valley State University, Northwood University, and Central Michigan
University. We will also be targeting people who are not able to physically obtain their
own food and groceries or do not have the time to do so. The market trend may
eventually include a variety of universities and offices, which can expand our service
area. With a successful collaboration with Meijer, the grocery service offered will
make it easier and quicker to obtain the groceries and deliver them in a timely manner.
Based on our current target market, we are only targeting approximately 30%
of the markets at the proposed locations. We are projected to target at least 60% of
the market shares within 5 years with a sales growth of 20% each year.
A few trends noticed within the target market of university students was that
many of them prefer eating at home or ordering for delivery. Based on our survey, a
few students commented that they constantly order pizza as it is one of the only
deliveries available. This is a potential advantage for Jiffy Delivery as we will be
providing food from many different restaurants that includes a variety of cuisines, and
also a delivery of groceries. As most of our target market are millennials who are tech-
savvy, the tracking system provides an advantage to the market who would want to
know the exact location of where their order might me. As our business is app-based,
there is always room for further development with the implementation of new
features to attract the market of these students. For the market of young adults or

7
working adults, many of them are starting to be career-oriented and some of them
suggested that it would be a good way for them to have their groceries delivered to
them as they would not have to make rounds after work and can head straight home.
Jiffy Deliverys potential growth will be to expand to more universities in
different cities in Michigan. The opportunities could be endless if the demand is there.
Based on the surveys we sent out and by hearsay, the market is out there and people
are interested in the potential that Jiffy Delivery has to offer in the industry. The
expansion of our industry would begin state-wide within Michigan which would
include other markets in Lansing, Bay City, Ann Arbor, Grand Rapids etc. There is a
potential growth for the market of the assisted living as they wont be able to
physically obtain food and groceries.
A few barriers to entry is the consumer acceptance and brand recognition at
this time of start up as many people will be as doubtful as they are excited for this new
delivery services. Firstly, we have to slowly persuade the customers to use our services
as it will save them time and money of going out to purchase food or groceries, which
most people will have to get used to. Also, some people might be doubtful of the
legitimacy of this service as crime rates are increasing these days. Although the
targeted location is known to be safer compared to more urbanized cities, some
people will still take precaution to be safe. We will also need to focus on technological
advancement and development to make sure we are keeping up with the trend and
coming up with new satisfiers.
Customer services and feedback is most important in dealing with these
barriers. We have to constantly get feedback and support from customers to comply
to their needs and wants to satisfy their demands. For the safety of our customers, we
will also be conducting a background check on our hired drivers before putting them
up for the job. We do not need a patent for our app or website but we need to
constantly keep our business on the edge as there could be a potential customer at
any point of time.
A change in technology could drastically affect our companys sustainability.
Since we are an app-based business, any changes in technology are crucial to keep the
customers satisfied. It is important to keep up with the times and what the consumers
want. We will have a team of developers who will constantly decide and come up with
new programmes for our app. A change in government regulation that would
potentially affect us is the rules on hired drivers. Given the scenario, people may have
to consent to allowing more information to be released or even have more/different
drug tests take place. If this were to happen, there could be a much more drastic
change in hiring employees, because people may not feel comfortable giving up that
kind of information and just wont apply. On the other hand, if the government
regulations dropped some of what a background check consists of, the customers may
become dissatisfied.

8
 If the economy went into a recession, the restaurant prices might increase and
customers might purchase lesser of outside food. In this case, we may have to focus
on the demand for grocery deliveries rather than food as people would probably
rather purchase groceries to cook by themselves. The food industry is a necessity and
the only change that would cause our industry to diminish or slow down would go
hand in hand with economy changes. More people may want to start eating in more
for the health of the family, but this would not truly diminish Jiffy Delivery from staying
in business. It may slow the business down quite a bit, but seeing as though it is a need
it will not be going out of business.

4.3 Service from Customers Point of View

The majority of our customers have proven to be employed based on our
survey. From the customers perspective, an application that one can order food and
have it delivered right to their doorstep seemed to be a huge hit. Over 50% of the
surveyed customers stated that they would like and use the Jiffy Delivery application
as it would make their lives much easier, especially those who are not able to
physically purchase food and groceries from a store or do not possess any mode of
transportation.

4.4 Customers
Our customer target market consists mostly of university students from the
age of 18 to 27 of all gender and we also plan to expand out to young or working adults.
We will begin our marketing to local universities within Michigan. Our hopes are to
eventually widen our horizons to other cities and universities such as Ferris State
University, University of Michigan, Michigan State University, Grand Valley, and others.
We would also like to eventually expand into the market of the assisted living.
Most of the university students have an annual income of $20,000 or less, as
many are also saving up to purchase cars or pay off their student loans. The
international students who live on campus will be the main source of income as most
of them have an annual income of less than $10,000, considering they are only allowed
to work on campus for 20 hours a week. Most of them also do not possess any cars
and to get food, they will have to either take a cab or rent a car, which will cost them
a lot more money.
We are not looking for any specific Collaborators as any restaurant that are
interested is welcomed to be featured on Jiffy Delivery. This is also beneficial for their
business as with a small fee of 20% per transaction, they will be able to gain profits
and have free advertisement as well. As the price of food or groceries is up to the
businesses, they will be able to mark up their prices solely for delivery, but we will also
limit the mark up price not more than 30%.

9
4.5 Competition
Jiffy Deliverys number one competitor will be EnvoyNow, who charges a flat
rate delivery fee of $2.99 with no minimums and no mark-ups. They have an under
30-minute policy for delivery time and only offers a one-mile radius from campuses.
Their target market is exclusively for university students. EnvoyNow also offers
positions as a driver or campus manager. According to EnvoyNows website
information section, to be an Envoy driver the person must be a student. Additionally,
they must be over 18, own an iPhone, a mode of transportation (car, bike, skateboard,
truck, scooter or motorcycle), and have a valid US social security number. Employees
receive the majority of the delivery fee, plus 100% of the tip on each order and can
make up to $25 an hour at peak hours. They are allowed to work as little or as much
as they want and can pick their hours and be their own boss so they can make money
while still having time to be a student. They have positions for a sales manager,
operations manager, or a marketing manager as well. They do not offer visa
sponsorship, which means that EnvoyNow does not hire anyone who is not a US citizen.
Another competitor is GrubHub, who charges on average a 13.5% commission
fee per order. It is not a student friendly position. They offer a range of 45,000
different restaurants that they deliver from in over 1,100 U.S. cities, such as Alvin,
Bellaire, Fresno, Friendswood, and Galena Park of which are based out of Texas. They
have offices in Chicago, New York, and London. They offer a selection of American,
Asian, barbeque, bakery, and breakfast foods. GrubHubs brands include Seamless,
Allmenus, Menu Pages, Dine in, Restaurants on the Run, Delivered Dish, and LA bite.
It has been around since 1999 when it was founded by two lawyers that were fed up
with out-of-date paper menus. GrubHubs career options are endless. They hold
positions ranging from customer care, data, information technology, legal, marketing,
operations, people team, and product departments. It is a well-known service that has
still not reached Michigan.
UberEATS is available in parts of North America, Europe, Asia, and Africa. They
mainly target bigger urbanized cities compared to smaller cities. The Booking Fee on
UberEATS is a charge you pay to Uber on every delivery that helps to cover
operational costs. They charge an extra fee for busy areas. This may fluctuate
depending on the time of day and restaurant demand. It is unpredictable and is not
a set in stone fee for every restaurant. Depending on the circumstances of a
restaurant, meaning if it is busy or not, means that the customer will have to pay an
additional fee on top of the booking fees. To be a driver, the person must be at least
19 years old (21 years old in Canada), have a drivers license, insurance, and vehicle
registration, must have at least 1 year of driving experience, and be able to lift 30lbs.
The fortunate aspect about this competition is that the way UberEATS is set up would
never work in Midland, Saginaw, or Mount Pleasant. If they changed how it was run
it may work, but since these are such tiny cities compared to where UberEATS is

10
located the business may struggle to draw in enough customers to stay afloat. The
nearest UberEATS competition would be at New Haven, Michigan.
EzCater and BringMeThat are website based competitors. Both of these food
delivery websites offer an extreme resemblance to Jiffy Delivery. They will be our most
challenging competitors, because they offer similar delivery services through a variety
of restaurants in the Midland, Saginaw, and Mount Pleasant area. Jiffy Deliverys
advantage is the grocery service and target market of university students. We also
have a competitive advantage of fast delivery of up to 25 minutes with a live GPS
tracker to allow customers to track their food.
Our competitors will be competing with us almost across the board. They hold
very similar features in their service as we do with delivering food to the customers,
but we hold grocery delivery over all five competitors. EnvoyNow is the most similar
to Jiffy Delivery in that the target market is directed toward university students; they
offer a food delivery service, and are hiring to student employees. The advantage we
hold over EnvoyNow is that we offer groceries, conduct fast delivery and implement
live tracking. UberEATS and GrubHub has the similarity in food delivery as well, but as
mentioned before Jiffy Delivery has more features. The largest advantage we carry
over all three of these businesses is location. UberEATS, and GrubHub have no
connections with the areas Jiffy Delivery is targeting either. EzCater and BringMeThat
are going to be our main competitors because they are within the Midland, Saginaw,
and Mount Pleasant area.

4.6 Niche
Jiffy Delivery is a food and groceries based business that delivers our
Collaborators food and groceries to our customers. Our competitive edge is in our
fast and efficient delivery time or the delivery fee will be waived off for the meal. After
the restaurant finishes with the preparation of the meal, our app will send a text
message to the customers indicating that the meal will be there within 25 minutes.
This is a niche market as were implementing technological features into our app, that
most delivery app does not have. Considering that our target market is more tech-
savvy, this will be an interesting twist to normal deliveries.

11
4.7 Strategy
4.7.1 Promotion
We will be conducting ongoing promotions especially during the initial
stages of the business. These includes conducting events in universities,
attending community events, digital media, and print media. As we need to
start getting a name of our business out to the market, we will need to conduct
more entry-based marketing to spread the word.
For low-cost methods, we will conduct live events on universities as
university students are our main target market. We will set up a booth around
the universities and conduct a roadshow of giving out free goodies to the
students when they download our app and sign up, and conduct games and
activities to attract the crowd. As these cities are mainly residential towns,
there are many community events that provides us the opportunity to
promote our business as well. We will be able to similarly give out flyers and
free goodies to the event attendees. As we will be collaborating with
restaurants and supermarkets, we will also base our promotion through them
as they will be able to promote our brand to their customers.
For methods that cost some money, we will need to print flyers,
goodies, and advertise on social media. We have targeted Facebook and
Snapchat to be our main social media platform as most of our target market
are students and they will be more active in these social media platforms. Since
our target market are more tech-savvy and spend ample of time on their digital
gadgets, marketing through social media and technology is the best way as our
app is also a web-based business.
The concept we want to sell is a Uber for food idea that people will
potentially be able to grasp easily. We will conduct many ongoing promotions
such as a free $3 off first order, and referral promotions when a user refers the
app to another user who registers and conducts a purchase. Seasonally, we will
also provide discounts on special occasions such as Thanksgiving, Christmas etc.

12
 4.7.1.1 Promotional Budget
We will allocate a $1,000 budget for our printing of free gifts.
We will be outsourcing from gift-printing companies. We will be
purchasing drinkware, writing instruments, etc. These can be added on
in future as we are currently focusing on the start-up promotions. A
company we have surveyed is Promotional Products. We have
surveyed the average price for a stadium cup, pen with stylus, and
magnet bottle opener. We will be ordering 500 units of a 22-ounce
stadium cup, 500 units of a pen with stylus, and 500 units of magnet
bottle opener. The average rate for a 22-ounce stadium cup is $0.60
and 500 units will cost $300. The average cost for a pen with stylus is
$0.60 and 500 units will cost $300. A magnet bottle opener will cost
$0.80 per unit and 500 units will cost $400.
We will also be printing flyers and the average fee for a basic
flyer is $0.02 for 5000 pieces of flyers which will cost up to $100. Our
flyer will be basic as most of the information will be provided in the app,
and the flyer will attract the viewers to head to the app to find out more
about it. We will be conducting more advertisements on social media
and Facebook advertisements will offer us about $0.50 per click for a
duration of one month. This would be an added cost as we need the
traffic and side advertisements to attract people to notice our business,
especially our target market. We will set aside a $500 budget for
Facebook promotions.

4.7.2 Price
We are setting the delivery price at $3 for each location and the user
can set their own tipping percentage. Based on our competitive analysis, the
rate we chose is an average of our competitors rates. This was also based on
our market survey on how much people are willing to pay to use our services.
Price is indeed a factor as our customers have the option to purchase their own
food and groceries if our cost is too high. We are leveraging between the
delivery cost and time used, as some people might suggest that a trip to the
grocery store will take up more time and they do not have the time.
All transactions will go through the app, even the tipping. Customers
are able to use PayPal or their debit/credit card to conduct any transactions.
Our credit policy is to take out the payment after the errand has been
performed.

13
 4.7.3 Proposed Location
We do not have the need of a physical location at the moment as our
app is web-based, but our app will be targeting customers from Midland,
Saginaw, and Mount Pleasant as these are the cities with high student numbers.
Currently, most of our competitors have not penetrated widely in any of these
markets yet as well. We are targeting to obtain a physical location about 6
months after our start up as we will need a location to directly liaise with
customers and conduct our meetings and researches. We have proposed our
location to be in Midland, Michigan, as its the centre of the three targeted
cities.

4.8 Sales Forecast

After reviewing our competitors, we have a reached a sales forecast that starts
off at 200 orders in January and by December we are projecting to roll out over 2000
orders a month. The reason we are expecting this enormous growth is mainly from
our research on one of our fellow competitors, EnvoyNow. They are also a college-
oriented delivery service. In a recent interview with The Michigan Daily, EnvoyNows
executive board stated that, In the month and a half since launching they said they've
gone from 30 orders a week to 200. One of their strategic development managers,
Jacob Frank, even said, We have about an 80 percent yield rate in overturning
customers, which is like 50 percent more than other delivery services. People really
like the fact that it is student oriented and convenient. (11.7 Appendix I)

The student-focused delivery market is clearly underserved and provides

plenty of room for growth. EnvoyNow is not at Saginaw Valley State University or
Northwood University, so we are hoping to gain this same, overwhelming response
from these colleges and receive a lot of orders from these areas.

Our best case scenario is based off of this high growth rate that our
competitor is experiencing. Our worst case scenario is based off of our conservative,
best estimate.

14
 Sales Forecast
Best Case Scenario
Month # of Orders Price per Order Total Sales Forecast
January 200 $ 3.00 $ 600.00
February 600 $ 3.00 $ 1,800.00
March 700 $ 3.00 $ 2,100.00
April 800 $ 3.00 $ 2,400.00
May 900 $ 3.00 $ 2,700.00
June 700 $ 3.00 $ 2,100.00
July 700 $ 3.00 $ 2,100.00
August 700 $ 3.00 $ 2,100.00
September 1000 $ 3.00 $ 3,000.00
October 1300 $ 3.00 $ 3,900.00
November 1500 $ 3.00 $ 4,500.00
December 2000 $ 3.00 $ 6,000.00
TOTAL 11100

Sales Forecast
Worst Case Scenario
Month # of Orders Price per Order Total Sales Forecast
January 200 $ 3.00 $ 600.00
February 300 $ 3.00 $ 900.00
March 350 $ 3.00 $ 1,050.00
April 350 $ 3.00 $ 1,050.00
May 400 $ 3.00 $ 1,200.00
June 300 $ 3.00 $ 900.00
July 300 $ 3.00 $ 900.00
August 300 $ 3.00 $ 900.00
September 400 $ 3.00 $ 1,200.00
October 500 $ 3.00 $ 1,500.00
November 600 $ 3.00 $ 1,800.00
December 700 $ 3.00 $ 2,100.00
TOTAL 4700

15
5.0 PRODUCTS AND SERVICES
A large competitive advantage Jiffy Delivery offers is not only does it consist of food
delivery, but we also incorporated a grocery delivery service as well. It is a service that
provides ease for the customer. It is actually quite simple. The customer downloads the app,
searches their location to find what restaurants are offered, chose a restaurant, order an item
or two, and then pay. After this takes place it is all in the hands of the delivery person to grab
the order and deliver it within 25 minutes upon pick up from the restaurant to when it is
placed in the customers hands or the delivery fee is free. The best part about Jiffy Delivery,
is that the customer can track their delivery. This can also be done through Jiffy Deliverys
website as well. It is the same concept and is a fast and painless process. It offers great quality
service with entrusted employees including a clean background. Our pricing will be set at $3
for each transaction. There will be an additional tipping option that will also go through the
app and customers will be able to set their percentage.

16
6.0 GENERAL COMPANY DESCRIPTION
6.1 Mission Statement
Quick and efficient delivery services of food and groceries from your favourite stores
to your doorstep with just one click.

6.2 Company Goals

Our goal is to provide a multi-featured app that provides delivery services of
all sorts of commodity. We are looking to venture into different markets apart from
the food and groceries industry, and we are also planning to further expand our
demographics to people of all ages and to different cities in North America. We are
expecting an exponential growth in sales as the services we provide grants our users
more time to focus on their studies or work while we satisfy their demands.

6.3 Company Objectives

One of our most important objectives is customer satisfaction. With a network
of loyal customers, we will be able to fulfil our company goals of achieving an
exponential sales growth as well as expanding our markets. We are also looking
towards a friendly and modernized working environment for our current and future
employees to retain good employees which will in turn also satisfy our customers.

6.4 Business Philosophy

We put our customers first and strive to build a loyal customer base through quality
goods delivered in a timely manner.
We empower our employees and strive to help them reach their full potential
within the organization.
We provide good opportunities for our employees to move up through the ranks of
the corporate structure through incentives and quality work.
We strive for excellence and professionalism in every delivery that is made.
Provide a good communication network for our customers and employees to offer
feedback in an effective and efficient way.
We like to hire within the communities to which our business is centered to help
make the community better.

Customer service and quality are two of the main things that our business will
focus on. Our drivers, who will be physically interacting with our customers will be
able to obtain feedback from the customers to assist our company to better
understand what we need to be working on. We hope that this will also empower our
employees to be involved in the business as we value them as much as we value our
customers. With that, we strive to deliver the best of qualities to our customers

17
6.5 Company Strengths and Core Competencies
The idea of Jiffy Delivery was discussed and collaborated by students of
different majors and different ethnicities. With a combination of different minds and
ideas, we are able to view our business from different perspectives. One of the most
important things in businesses is not to be ethnocentric and be open to different point
of views and strategies, and this is one of the strengths that our company possesses.
We are also competent as we are able to strategize and adapt our business to a variety
of fields, not just in food and groceries. We also possess the ability to come up with
the technology that follows it.

The main players of the company are Ashley Horton, Emily Skrocki, Amanda
Kok, and Jonathon Kugler. The four of us are and will be Bachelor of Business
Administration holders from Northwood University, a prestigious private business
school that promotes free-enterprise. We have a variety of majors, mainly in
management, accounting, and international business.

6.5.1 Chief Executive Officer/Chief Finance Officer Ashley Horton

Ashley Horton is an Accounting major and will Graduate in 2017. She is
a senior in Northwood University and has past experiences in 2 different CPA
firms as an intern and an accounting assistant. Ashley also has 2 years worth
of working experiences as a manager at a bar where she oversaw the wait staff,
servers, and kitchen staff. With both management and accounting background,
she is suited to be both CEO and CFO as she is able to bring years of accounting
related school and work experience to the company to achieve the company
goals.

6.5.2 Chief Operating Officer Jonathon Kugler

Jonathon is a senior and will be graduating in 2017 with a Management
major. He has previous work experiences in retail, food, operations, and
customer service departments. Having experience in various fields, he is
suitable to oversee Jiffy Deliverys operations. He had past experiences in
selling merchandise, dishwashing and cooking, salesperson, cashier, and
customer service associate. He has a total of He has a total of 5 years of
working experience prior to starting up this company.

His previous companies are Kirbys Coney Island in Brighton, Michigan,

M-Den in Ann Arbor, Michigan, Dicks Sporting Goods in Brighton, Michigan,
and Mens Warehouse in Brighton, Michigan, where he is currently employed.
As a local, he is also familiar with the operations based in Michigan.

18
 6.5.3 Chief Marketing Officer Emily Skrocki
Emily is a business management major and is a senior at Northwood
University. She has 4 years of working experience in Enbridge and has worked
on several job tasks throughout her stay at the company. Although she is a
management major, she has been dealing with office work that involves
contract agreements, scheduling, and paper presentation. Through her
creativity, she has also worked on a few marketing strategies for several
business plans and she is well-versed with the designing programme on the
computer such as Adobe Photoshop and Adobe Illustrator.
With Emilys creativity and management skills, she is well suited to
design a good marketing strategy for Jiffy Delivery.

6.5.4 Chief Customer Officer Amanda Kok

Amanda is a senior and will be graduating by December 2016. She is
currently pursuing a dual major in International Business and Management.
Born and growing up in Malaysia, she has the experience of interacting with
various cultures in Asia and also an exchange experience of a semester in
Vancouver, Canada. She has 9 years of experience in the service industry,
providing music classes and also conducting administrative work that requires
her to personally interact with the customers. Furthermore, Amanda also has
a past internship with Allianz Life Insurance Malaysia, dealing with the
insurance agents.

Fluent in 4 languages (English, Mandarin, Cantonese, and Malay),

Amanda is also currently taking classes for Korean, Japanese, and French. She
will be most suited to deal with customers as our target customers are from
different ethnicities. With past experiences of dealing with customers,
Amanda will be able to handle customers efficiently.

6.6 Legal Form of Ownership

The corporate structure of the business will be a limited liability partnership
(LLP) this means that all of the partners will have limited liability. Each partner is not
liable for another partners negligence or misconduct. Liability will be divided evenly
to what each person has contributed as well as the profits.

19
7.0 OPERATIONAL PLAN
Our opening hours will be from 4pm to 2am as these are the hours that our target
market are most active, especially weekends. Our customers will order through the app, and
this will generate a print out of the order to our Collaborators. After the food is prepared and
ready for pick up, our driver will pick up the food and send an automatically generated text
message to our customer stating that the order will arrive within 25 minutes or its free. The
customer will also be able to track their order through a live GPS location of the driver.

7.1 Production
The services of food delivery will be taken through the app or website. We do
not directly supply the food or groceries but we act as an agent between the
restaurant or grocer and the customer.
Our main cost will be the development and maintenance of both the app and
the website. As we do not sell or produce tangible items, only offering the services,
we do not have a main production line. Our quality control will be handled by the
customer service department to make sure the customers needs are satisfied. This
will also include the drivers as they will be physically dealing with the customers. As
our main objective for the business is customer satisfaction, we will accept any
complaints, suggestions, or feedback. Our customer service hotline will be open until
10pm and we will have a form to collect any sorts of feedback from the customers.
There will also be a section in the app for customers to leave their review on our
services or the items ordered.
The app and website will be maintained by our IT department to make sure
that the system does not crash and has working functions as this is an important factor
in running our app-based business.

7.2 Location
During the start-up of our business, we will not require a physical location for
the first 6 months after start-up as we would like to save as much cost as possible.
Instead, we will have meetings and discussion, as well as app development at our
CEOs house. After 6 months, we will need an office space with a few offices for the
different departments. We have surveyed the market and managed to target a
strategic location for an office. We are estimating a size of about 1000 square feet and
targeting an existing building with cubical areas.

As our location is mainly a hub for our daily business plans, meetings, and
where customers can access, we do not need an attractive location and we decided
that Midland will be the best location as it is the current centralized area between
Mount Pleasant and Saginaw. We also do not have to be close to our Collaborators
and transporters. We will have to have a front desk for any customer inquiries as well
as prepare some parking lots for our customers. Below is the proposed office layout.

20
7.3 Legal Environment
Jiffy Delivery will need a business license, food vending license as well as a food
handling permit. Our drivers will need a valid US drivers license as well as a valid
registration and insurance for the car they will be driving.

After obtaining a physical location, we will be inspected annually to assure that

we comply with the proper working conditions. Some of these laws include, but are
not limited to, having two bathrooms for men and women each, and also to be cleaned
on a regular basis. There must also be proper ventilation within the office building.
Fire safety persuasions must be taken into considerations. We will also need liability
insurance in case an unforeseen incident occurs while a driver is performing their
duties. An insurance will also cover any damages to our property as well.

7.4 Personnel
For the first 3 months of the start-up, we will be conducting all services within
ourselves and a hired Chief Information Officer. We will each handle one or two
different aspects of the business and this will be further elaborated in the
management section. We will start hiring drivers as the business grows as the turnover
for orders might start increasing and we need to fulfil a delivery time of 25 minutes
and below. We will also need to hire additional IT staff to include new features and
ideas for our business. If the business reaches a huge growth, we might start hiring
professionals to make important decisions for the company.

21
 We want to hire within the communities and will look for employees within
the Midland, Mount Pleasant and Saginaw areas. This will make it easy for the
employees to deliver as well as generating money within the local economy. We might
need to outsource on marketing research as our company progresses, but in the
meantime, we will conduct those surveys and feedback based on our information of
the target markets.

A skilled worker (IT) will be paid as a full-time employee and that would be a
rate of $10 an hour for 8 hours a day. The annual income will be about $19,200. Our
drivers will be paid a base wage of $2 per transaction and they will be earning a 100%
of the tipping amount as well.

The training provided will be mostly practical tests to make sure that the
drivers are competent to carry out their jobs well. There will also be a training on
proper etiquette when dealing with customers. A requirement for drivers will be that
they have a minimum number of 4 points on their license for at least 3 months. A
morality test will be administered prior to the hiring process.

7.4.1 Job Description

The drivers of the company will accept an order by the customer and
proceed to the restaurant to pick up the order. Once the order is picked up
they then have 25 minutes to get to the address of the customer and drop it
off. The main job of the IT personnel will be to develop the app and website
for our company. They will also develop the support system to prevent the app
or website from any downtime, as well as keeping up with the new software
and technology needed for the business.

7.5 Collaborators
Our main Collaborators are different from a traditional service company as
they are providing us with the tangible product while we provide the intangible
services. Most of our Collaborators will be either food or grocers at the moment, until
we intent to expand into different industries. Below is a list of our proposed
Collaborators. Some of the restaurants are big chains so the reliability of them will be
very well especially if there is a contract involved. However, there are small chain
restaurants that we will attempt to contract with so the reliability of those contacts
will be questionable until a relationship is developed. We must always expect that
there will be at least some delivery problems and that some of the meals will be given
for free. We have a fund set up for this but we will do everything in our power to make
sure that it doesnt happen.

22
7.5.1 Collaborators in Midland, Michigan
Name of Business Address
Walmart 910 Joe Mann Blvd Midland, MI 48642
Meijer 7300 Eastman Ave Midland, MI 48642
Kroger 2808 Ashman St Midland, MI 48642
Big Es Sports Grill 810 Cinema Dr. Midland, MI 48642
Bennigans 6603 Eastman Ave Midland, MI 48642
Buffalo Wild Wings 6728 Eastman Ave Midland, MI 48642
Burger king 6730 Eastman Ave Midland, MI 48642
Panera Bread 6707 Eastman Ave Midland, MI 48642
Olive Garden 6803 Eastman Ave Midland, MI 48642

7.5.2 Collaborators in Saginaw, Michigan

Name of Business Address
Taco Bell 1472 N Michigan Ave Saginaw, MI 48602
McDonalds 1454 N Michigan Ave Midland, MI 48602
Park Asia 220 N Michigan Ave Saginaw, MI 48602
Jakes Old City Grill 100 S Hamilton St Saginaw, MI 48602
Subway 220 S Michigan Ave Midland, MI 48602
Jimmy Johns 118 S Michigan Ave Unit A Saginaw, MI
48602
China City 318 S Michigan Ave Saginaw, MI 48602
Vintage Pointe Mexican Deli 418 S Michigan Ave Saginaw, MI 48602
Joes Diner 1608 S Harrison St Saginaw, MI 48602
Wendys 4305 Bay Rd Saginaw, MI 48603

7.5.3 Collaborators in Mount Pleasant, Michigan

Name of Business Address
Wendys 1619 S Mission St Mount Pleasant, MI
48858
Qdoba Mexican Grill 1569 S Mission St Mount Pleasant, MI
48858
Rallys 1501 S Mission St Mount Pleasant, MI
48858
Mennas Joint 1418 S Mission St Mount Pleasant, MI
48858
Taco Bell 1143 S Mission St Mount Pleasant, MI
48858

23
 Panda Express 1107 S Mission St Mount Pleasant, MI
48858
Jons Drive In 1030 S Mission St Mount Pleasant, MI
48858
Chinese Restaurant Great 1025 S Mission St Mount Pleasant, MI
Wall Buffet 48858
Popeyes Louisiana Kitchen 807 S Mission St Mount Pleasant, MI 48858
Little Caesars Pizza 324 S Mission St Mount Pleasant, MI 48858

7.6 Credit Policies

Credit will not be extended to customers. Users of the application will input
their credit/debit card information and their purchase will be immediately charged to
their card.

7.6.1 Managing Accounts Receivable

We will have very little money tied up in accounts receivable. The only
money that should be tied up in accounts receivable would the 2-3 days that it
takes the money from customers credit cards to come in to us. Therefore, our
accounts receivable account should not age more than a couple days since we
are not extending any credit terms.

7.6.2 Managing Accounts Payable

There will also be little money tied up in our accounts payable. We will
reimburse our employees on a bi-weekly basis, so our accounts payable aging
should not remain intact past approximately two weeks. Our accounts payable
will also include our monthly fixed expenses including payroll, interest, rent,
utilities, insurance, and research & development.

7.6.3 Working Capital

Due to the fact that we will have very little accounts payable and
accounts receivable, we will also have very little working capital. Our accounts
payable will be equal to our wages and will be paid off within two weeks.
Therefore, our working capital must be enough to cover this expense.

24
8.0 MANAGEMENT AND ORGANIZATION
As we will be a newly start-up company, the current management aspects will be dealt
with by ourselves. All four of us will be overseeing the progress and technicalities of the
business until the business is more stable to run on its own.

8.1 Key Employees

Our management structure will consist of 5 departments, each oversee and
carried out by one individual, until we hire more employees. The delivery services will
also be carried out by ourselves.

8.1.1 Chief Executive Officer/Chief Finance Officer

The CEOs task will be to manage and oversee the whole company,
including all the various departments to make sure that each department is
performing according to the necessary standards. The CEO will also keep to the
company values, mission and vision, making sure the business is headed in the
correct direction.

The CFO will keep track of the accounting and finances of the company.
He or she will make sure that the income statements and balance sheets are
filled correctly, as well as making sure the accounts receivable and payable are
collected on time.

8.1.2 Chief Operating Officer

The COO needs to oversee the daily operations of the business and
keep the CEO in check of any important events or decisions to be made. He or
she will have to come up with new operation strategies to promote a sales
growth for the company, and communicates these to the other departments.
The COO will also oversee human resource management and oversee the
employees and their tasks.

8.1.3 Chief Marketing Officer

The CMO will be conducting market research on our target markets to
facilitate growth and keep our marketing strategy on track. He or she will also
need to oversee the different promotions or advertisements that will be
carried out to promote the business and create brand recognition. The CMO
must be familiar with the product as they need to be flexible in changing
strategies especially with the need of co-operating with other departments.

25
8.1.4 Chief Customer Officer
As our business is customer-oriented, the CCO will be dealing with
customer service relations and how to maximize customer satisfaction and
deal with any customer complaints and feedback. The main goals of the CCO
is to maximize customer acquisition, retention, and profitability. They must be
able to know and study the market to make sure that they are aware of the
customers tastes and preference and to make sure the new features are
satisfiers.

8.1.5 Chief Information Officer

The CIO will be the backbone of the company as he or she will be
developing the app that constructs the whole business. He or she will be
overseeing the IT and technical part of the business such as app and website
development, minimizing downtime, making sure the features work properly,
and making sure the system is safe and secure, as we contain customer
database.

26
9.0 START-UP EXPENSES AND CAPITALIZATION
We plan to get our capital primarily from a bank loan, but will also plan to reach out
to family, friends, and other potential investors.

Were hoping to receive a 5-yr, 7%, $50,000 bank loan along with $50,000 from
investors. Our investors will be comprised of Jennifer Watz, Bill Watz, Andrea Skrocki, Janey
Chwee Leng Loo, and Tom Kugler. Each investor will contribute $10,000 in exchange for 5%
equity in Jiffy Delivery bringing us to our total of $50,000. This makes the total amount of
equity given up to be 25% leaving us, the creators, with 75% which we will distribute evenly
among the four of us.

Our investors and amounts were reached through talks with potential investors. They
all agreed that $10,000 for 5% would be a reasonable amount. We the creators also agreed
that we would be willing to give up 25% of our company.

Estimated expenses will include wages of $1,600, variable delivery fees of

approximately $2,000, advertising & marketing of $2650, interest expense of $500, App R&D
of $500, rent of $670, utilities of $200, renters insurance of $73, and contingencies equalling
20% of each months total expense. These numbers are further outlined in the pro-forma
statements.

Our wage expense was estimated through talks with our potential app developer, Nick
Poli. He agreed that $10/hr for approximately eight hours a day would be a fair starting wage.
Our advertising & marketing costs were estimated by researching how much money it will
take to print brochures, posters, advertisements, etc, how much a Facebook ad costs, and
how much money it will take to keep our website operating. Our interest expense was
calculated using an interest calculating website which took into account our principal
borrowing amount, our payback period, and our interest rate. Our research and development
costs were calculated through a Google search of typical app development costs. We came
across an iPhone app development site which estimated these costs to be between $3000
and $8000. To determine our rent expense, we found a small office building for rent in the
Midland area and are renting 1000 square feet to start. Utilities were estimated through a
website that takes into account total square footage. Renters insurance was also calculated
using an estimation site. The article for app-development can be found in 11.8 Appendix II.

27
10.0 FINANCIAL PLAN
10.1 12-Month Profit and Loss Projection
Similar to our sales forecast, we based our profit and loss projection on
EnvoyNows recent success. The service revenue number was taken from our best
case scenario sales forecast order number. Our royalty revenue was calculated by
taking our number of orders from each month, then multiplying that by the $5
(estimated average cost per fast food order), then multiplying that by 20% (the
percentage we receive from the restaurants proceeds). Our expenses are laid out in
the Start-up Expenses and Capitalization section above. The table can be found in
11.11 12-Month Pro Forma of the Appendices section.

10.2 5-Year Profit Projection

In 2018, were expecting a 200% growth, in 2019 is a 50% growth, 2020 is a 30%
growth, and 2021 is a 20% growth. We chose these numbers based on our
competitors extreme growth. We also came to this conclusion based off of talks with
our investors who said that sales typically take off drastically in the first year or two
and then tend to taper off once the business becomes established. Also, our
competitors took off rather quickly as stated previously in the Sales Forecast section.
Therefore, I projected that well take off rapidly especially since we are starting off at
three different colleges. Well continue to grow because well expand to other
universities, hire more staff, and reach a wider customer base.

Our payroll expense increased $19,200 in both 2018 and 2020 due to the fact
that we will hire more employees (IT, customer service, etc) Our delivery fees
increase proportionally with our sales growth because our drivers are paid through
our sales (delivery fee). Advertising & marketing costs will gradually decrease once
Jiffy Delivery starts to become more well-known. R&D expenses will decrease to
virtually nothing. App maintenance will be required periodically, but will not cost
much in comparison to start-up. Other fixed expenses will remain relatively constant.
This table can be found in 11.12 5-Year Pro Forma of the Appendices section.

10.3 Projected Cash Flow (12-Month and 5-Year)

The 12-month cash flow statement starts out at $100,000 because that is how
much total that we are borrowing from the bank and investors. Our accounts payable
is how much that we will be paying our drivers (number of orders/month X $2.00).
Our capital expense is the total amount of what our equipment (computers, desks,
printers, etc) will cost once we start renting office space in July of the first year. Our
principal loan payment equals approximately $10,000/year due to the fact that our
loan term covers five years.

28
 The 5-year cash flow statement starts off in 2017 as a summary of the 12-
month statement. $10,000 was added in 2019 and 2021 as an estimate for future
equipment expenses (new/more computers, desks, printers, etc) Our principal loan
payment will also continue through all five years of this statement until it is paid off.
The table can be viewed in 11.13 12-Month Cash Flow and 11.14 5-Year Cash Flow of
the Appendices section.

10.4 Break-Even Analysis

Our break-even calculation is 0 = 2x 53158

$53,158 is based off of the total of all of our fixed expenses, $2 is our variable
expense (money paid to drivers), and x stands for the number of orders that we will
need to run in order to break-even. This is elaborated below.

29
11.0 APPENDICES
11.1 Website Headers

30
11.2 Flyers

31
11.3 App Logo

11.4 Poster for Collaborators

32
11.5 App Examples

33
34
11.6 Proposed Location

This is a proposed location for Jiffy Deliverys headquarters. It is a 1,000 square

feet office at 3200 James Savage Midland, MI 48642 for $800 per month.

35
 11.7 Appendix I

Student start-up allows food delivery straight

to dorm rooms
Rebecca Solberg

Daily Staff Reporter

Wednesday, January 20, 2016 - 4:34pm

Though Forbes Magazine reports that 90 percent of start-ups fail overall, a start-
up new to the University, EnvoyNow, is defying the odds and nourishing in the college
market. EnvoyNow is a student-run food delivery service that came to Ann Arbor this fall.
The start-up aims to deliver local restaurant food directly to the customers locations. The
delivery service says it is the only service that can directly deliver food to dorm rooms and
library study areas, and employs students who have MCards to deliver the food so they
have access to University buildings.

Weve had great reception so far, said LSA freshman Robin Elihu, head of
marketing for the Universitys EnvoyNow. Most people have told us they love the service
because it is very convenient for them because they dont have to go anywhere. The
company was started by Anthony Zhang, a University of Southern California student, who
wanted a more convenient way to have food delivered. In an interview, EnvoyNows
University executive board said Zhang realized that the only way the food could be
delivered directly to him was if students were the delivery people and were able to get
through the dorm or library security systems. This led to the formation of EnvoyNow at
USC, and after a $100,000 investment from Shark Tanks Mark Burnett, it has made its
way to universities all around the United States.

LSA freshman Patrick Skelly, the senior expansion manager at EnvoyNow, knew
Zhang from his high school, and brought the company to the University, where he helped
develop the executive board of seven members, six of whom are freshman. In order to
use the service, students connect their credit cards to the EnvoyNow app, which allows
them order food from restaurants in Ann Arbor like Burger Fi, Salads UP, Chipotle, Buffalo
Wild Wings, Frita Batidos and more. The first delivery fee is waived and for subsequent
orders at $2.99 delivery fee is added to each order. The Universitys EnvoyNow executive
board noted positive responses from students, leading to the fast growth of the company
in the month and a half since launching they said they've gone from 30 orders a week
to 200.

The Michigan Daily Edited and managed by the students at the University of Michigan since 1890.

Retrieved from: https://www.michigandaily.com/section/news/food-delivery-startup-finds-

success-campus

36
 11.8 Appendix II

iPhone Development Costs

Sep 7, 2010 - 74 Comments

iPhone development costs Ever since Apple introduced the App Store, theres been a gold rush
of sorts to the iPhone & iOS platform. With the release of the iPod touch and iPad, interest in
the devices has only grown, but unfortunately so have development costs. So what is it going
to cost you to get that app developed for the iPhone? It depends on a number of factors, so
here are some numbers on hourly and project rates to give you an idea. Its generally not
cheap, but there are some solutions for affordable app development.

FYI, Im going to refer to the iPhone here but obviously this pertains to the iPad and iPod touch
just the same, its all the iOS platform.

iPhone Development Costs

Its no surprise that iPhone developers are short on supply and high on demand, and naturally
this means its going to cost quite a bit to develop an app. Theres really two routes to go if
youre looking to have an iPhone app developed; you can pay a contractor hourly, or you can
pay a flat bid rate from either a company that specializes in app development or to an
outsourced agency that pumps out apps.

Contract iPhone Development Hourly Wages

For developers in the USA and the EU zone, its not unusual for an iPhone developer to charge
well over $100/hour to do contract iOS development, but realistically the hourly range is
anywhere from $50/hour to $250/hour, with experience and name recognition usually setting
the price. The hourly costs have been this high for going on two years now, and given the
limited pool of dev talent its no surprise that its a developers market. If this is completely out
of your price range, read on and youll find cheaper solutions thanks to outsourcing to
overseas developers.

iPhone Development Project Bids & Rates

Coming along for the iPhone ride are a number of boutique development companies that
focus only on mobile app work. If you decide to go with a company that specializes in iOS
development youll likely be given a flat project rate that covers all the development costs.
Depending on which outfit you go through, you can get a decent deal this way or be in for
major sticker shock. Here are some examples:

Relatively Simple or Small App: $3000-$8000 this is based on a sample of data from
TechCrunch that polled 124 developers, and found the average development cost was $6,453.

37
This is in line with what LOLerApps paid for the development of their app called Baby Maker,
which isnt terribly complex and cost around $5000 via outsourcing on ELance. After 50 days
LOLerApps sold just enough copies of Baby Maker to break even on development costs, which
isnt terrible but who knows what they spent on marketing and advertising the app.

If youre interested in developing an iPhone app and want a realistic assessment on sales
numbers and development costs, LOLerApps is amazingly candid and their blog is well worth
a read since they share just about everything.

More Complex or Recognized Brand App: $50,000-$150,000 it was reported that the official
Barack Obama app was developed in 22 days at a rate of $100-$150/hour, with roughly 500-
1000 hours put into the app. The Obama app isnt simple but it isnt as complex as some of
the other apps out there, so I imagine some of the costs here are scaled up based purely on
the recognizable brand associated with the app itself.

The bottom line; if youre looking to develop either a very complicated app, or youre a large
recognized entity and looking to put out an iPhone app, its going to cost you some serious
cash.

App Development = Expensive: Is it Cost Effective?

The big question remains: Is app development cost effective? This really depends on so many
factors that its impossible to answer for everyone. Things to consider when you ask this
question are: which category of app you fall into, how strongly you feel about the idea, how
complex the app is, and what your marketing budget looks like.

A post on OReilly Digital Media blog sums up the situation for higher expenditure apps:

a full-time contract iPhone developer costs $5,000/week and it may take four to six weeks for
an application to be developed. Sometimes it will take less and sometimes it will take more.
Add to development the other costs project management, design, QA, and marketing, to
name a few. Its not uncommon to spend $30,000 and up on an iPhone development project.

Youll need to run the numbers yourself and see if it makes sense. Its obviously not cost
effective to spend $150,000 on development and marketing to sell only 2000 apps a year for
$1 each. The solution might be to find a cheaper route to get your product to market.

Outsourcing iPhone App Development the Most Cost Effective?

Before you get totally discouraged with some of the costs and numbers, realize that you can
certainly find cheaper app developers, particularly if you outsource the development through
a site like ELance or oDesk, where you can get experienced developers in India, Russia, and
Ukraine, for as little as $15/hour. Outsourcing has its own pros and cons, and Ill leave it up to

38
you to decide if its a worthwhile approach for your apps development. The big advantage of
going the ELance/ODesk route is obviously price, you set a flat budget and have developers
bid proposals for the project, which will save you a lot of money.

Keeping Development Costs Low

Regardless of which approach you take, its best to have your idea as fleshed out as possible
so there is little question in terms of what you want. The more details you can document and
explain the better, a developer cant read your mind but will certainly charge you while
attempting to. Any ambiguity on things like the apps functionality or GUI just leads to longer
development time and ultimately more money out of your pocket. Be as specific as possible,
sketch out the functionality in something like Visio clone for Mac, and be very clear when
communicating your vision.

Developing an iPhone App Yourself

Of course the other option is to just learn Cocoa and Objective C and write an iPhone app
yourself. If you decide to go this route, be sure to download and install the iPhone SDK first,
and then pick up a good book on the topic, like Beginning iPhone 3 Development: Exploring
the iPhone SDK. This certainly isnt the easiest route, but it may be the cheapest if you are
technically inclined.

11.9 Example Terms of Contract for Collaborators

This contract is valid for a 2-year period.
If the collaborator wants to sign or take up services from another delivery company,
they have to provide us with a minimum 30 days of notice.
For each transaction, Jiffy Delivery will earn a 20% from each transaction, before taxes.
Jiffy Delivery will provide free advertisements on our apps and websites for our
collaborators.
Jiffy Delivery will not change the set prices of the collaborators, but the collaborators
are not allowed to mark up their prices to more than 30% of the original price.

11.10 Example Terms of Contract for Drivers

Must be 18 or older.
Must have a reliable vehicle in good condition and proof of insurance and
vehicle registration.
Must have a license.
Must have a bank account for the purpose of payment.
Must be a US citizen with no convictions.

39
11.11 12-Month Pro Forma

40
11.12 5-Year Pro Forma

41
11.13 12-Month Cash Flow

42
11.14 5-Year Cash Flow

43
12.0 REFINING THE PLAN
12.1 Bankers
The initial amount to help launch production and get the business started will
be a 5-year, 7%, $50,000 loan. The funds will be used for all marketing expenses
including but not limited to, posters, brochures, radio advertisement, and appliances;
such as computers, printers, telephone/internet service, and filing cabinets. Everything
included will help get the business name out to the public and to kick start the business.
Being that we are young students, we dont exactly have enough assets to equal
$50,000, so our collateral for this bank loan will be in the form of two parent co-signers,
Jennifer Watz and Andrea Skrocki.

12.2 Investors
According to our 5-year pro forma statement, our investors who invested
$10,000 for 5% ownership should start to receive their investments back within 2019
and 2020. We do not expect to require too much more funds in the next two to five
years. If our projected cash flows prove to be true, we should be able to maintain a
healthy cash level to pay off our bank loan and investors.

The short-term funds will include purchases pertaining to mostly office uses,
such as desks, more computers, and other supplies, such as tracking devices/software.
These items will be critical in the growth of Jiffy Delivery. In the future, Jiffy Delivery
is hoping to expand and grow to other cities throughout Michigan.

Our standard exit strategy will include the buyback of shares after a minimum
of three years (approximate year that we will begin turning a profit). We will buyback
these shares at full value ($10,000/person) plus a 5% return ($500/person).

The financial statements that are presented in this document include a sales
forecast, 12-month pro forma & 12-month cash flow statement, sensitivity analysis,
5-year pro forma & 5-year cash flow statement, and break-even analysis.

Investors will be involved in monthly Board of Directors meetings. We value

the professional expertise of our investors and will be open to any ideas/decisions that
they would like to make. Investors will hold a decision-making position on the Board
of Directors and will play a key role in the way our company grows.

44