BUS303 1

AiroCity

BUS303

AiroCity
20
 BUS303 2
AiroCity

Executive Summary:

This business “AIROCITY” concentrate towards its product will be used to control the mass
movements in the street and look into places where people like firefighters can't get into the
fire place like; landslide and flooding areas and so on (we take the product as disaster control
security). The product is based on AI which will allow it to return back to the flight place when it
dries off its battery power and will be able to signal other Drones to take its place. At the same
time it will be able to take flights up to 34 minutes and go as far as 10 km return and travel
time. Portable and easy to take images of 48MP and shoot Hyper lapse of 8K. Record 4k/60P
HRD videos and slow it up to 210Fps. The product is featured with automatic obstacle
avoidance. If the user is looking for entertainment use our DJI flying app to directly upload a pic
to social media.
 BUS303 3
Business Model Canvas: AIROCITY
AiroCity
 BUS303 4
AiroCity

Mission Statement:

Our mission is to establish an aerial drone company that will make available a wide range of services and products as it relates to
aerial drone business at affordable prices and to build a business that will grow to become one of the top 10 aerial drone
photography companies

Well Being Vision:

Our vision is to build an aerial drone multi-use company that will have active presence all over the world starting with major cities in
Australia like Sydney, Melbourne, and so on.

AIROCITY Business Structure

In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are
ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their
performance for a period of three years or more. In view of that, we have decided to hire qualified and competent hands to occupy the
following positions;
 BUS303 5
AiroCity

• Chief Executive Officer (Owner)

• Admin and Human Resources Manager
• Sales and Marketing Manager
• Aerial Drone Photographic Specialist / Operators
• Accountant
• Client Services Executiv

The three-dimension of “AIROCITY”

1. Customer Group: Who is being satisfied/targeted by us? : Individuals and units who are in need for drone for entertainment and security purpose.

2. Customer Function: What we aim to form our services? : Deliver the highest quality product to match the value of money that the customers pay
to us.

3. Alternative Technologies: How the service is being delivered? : Our services will be delivered with the best materials used and latest technology
that first come in the market suiting the customers’ needs.
 BUS303 6
AiroCity

Market Analysis
Target Market:

• Businesses in the Agriculture Industry

• Film Makers
• Surveyors
• Government agencies
• Every other organizations / businesses and individual who would need the services of an aerial drone photography company

Competitive advantage:

The competitions that exist in the aerial drone line of business may not be stiff simply because the business requires some level of
technical skills and certifications. Although, the aerial drone business requires some form of trainings, certifications and expertise, it does
not stop any serious minded entrepreneur to start the business and still make good profit out of this business.

AIROCITY Company is launching a standard aerial drone business that will indeed become the preferred choice of businesses and
government agencies in Australia and in every other location where our business will be opened.

The strategic locations we intend covering, the business model we will be operating on, ease of payment, wide range of products and our
excellent customer service culture will definitely count as a competitive advantage for AIROCITY. So also we have a well – experienced and
qualified team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to
details.
 BUS303 7
AiroCity

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups
photography / aerial drone photography companies) in the industry meaning that they will be more than willing to build the business with
us and help deliver our set goals and achieve all our aims and objectives.

SWOT Analysis

i. Strengths

The strategic locations we intend covering, the business model we will be operating on, ease of payment, wide range of products and our
excellent customer service culture will definitely count as a strong strength for Wide – Spread Pictures. So also, we have a well –
experienced and qualified team that can go all the way to give our clients value for their money; a team that are trained and equipped to
pay attention to details.

ii. Weakness

A major weakness that may count against us is the fact that we are a new aerial photography business and we don’t have the financial
capacity to compete with multi – million dollars photography companies who are also into aerial photography and videography business.

iii. Opportunity

The fact that we are launching out in Australia, provides us with unlimited opportunities to sell our products and services to a large
number of corporate organization, research institute, and film makers who need the services of aerial drone photography companies.
 BUS303 8
AiroCity

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for
when they hire our services; we are well positioned to take on the opportunities that will come our way.

iv. Threats

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic
downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of an aerial company or a Drone
company in same location where ours is located. Unfavorable government policies can also pose a major threat to businesses such as
ours.

Location Analysis
‘AIROCITY’ the ultimate drones can be more effective to the urban population, as, the population in this location is more of exploring
lifestyle, at works, family, and many more. Nonetheless, as the product is modern and can be used by anyone with, it will cover
almost all the spectrum of the people in the society.

Pricing Strategy
Pricing is one of the key factors that gives leverage to aerial drone business, it is normal for consumers to go to places where they can get
good deals or hire the services of a company that can give them good bargain for their money. We are aware of this trend which is why we
have put structures in place that will enable us charge fees that are a little below the industry’s average.
 BUS303 9
AiroCity

We will ensure that we reduce our overhead, and we are ready to run on low profit margin for the first six months of launching the
business just for the purpose of attracting loyal clients and build our clientele base.

AIROCITY Startup Budget and Expenditure

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Australia – $750.

• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software)
– $1,300.
• Marketing promotion expenses for the grand opening of the business in the amount of $3,500 and as well as flyer printing (2,000
flyers at $0.04 per copy) for the total amount of $3400
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for the facility and remodeling (construction of racks and shelves) – $70,000.
• The cost for the purchase of aerial drones, cameras and accessories (a 3D Robotics’ Iris or DJI’s Phantom series, GoPro Hero3 Black
Edition, built-in Wi-Fi for downloading your footage and maximum compatibility with OEM and third-party accessories, a video
transmitter, such as the Immersion RC 5.8 GHz 600mw, which greatly increases the range of a 5.8GHz link, and then you can pair it
with a Duo5800 or Uno5800 receiver on the ground to get noise-free video.) – $150,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory (stocking with printing and photography supplies) – $100,000
 BUS303 10
AiroCity

• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: – $10,000
• The cost for the purchase of furniture and gadgets for the office (Computers, Printers, Telephone, TVs, Sound System, tables and
chairs et al): $80,000.
• The cost of Launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $800,000 to successfully set up our aerial drone business in Australia. Please note that this amount
includes the salaries of all the staff for the first month of operation and some of the costs might be a subject to change.

• Sources of Income

This Company is established with the aim of maximizing profits in the aerial drone industry and we are going to go all the way to ensure
that we do all it takes to offer our services and products to a wide range of customers.

AIROCITY will generate income by offering the following services and products;

• Phase I Environmental Site Assessments for property analysis

• Create orthophotos, alternatively known as orthophotomaps (Orthophotos are commonly used in geographic information
systems)
• Cartography services particularly in photogrammetric surveys, which are often the basis for topographic maps, land-use planning,
archaeology, movie production, environmental studies, power line inspection, surveillance, commercial advertising, conveyancing,
and artistic projects
 BUS303 11
AiroCity

• Other related aerial drone photography advisory and consulting services.

• Sales and Distribution Process

 BUS303 12
AiroCity

Sales Forecast

One thing is certain; there would always be corporate organizations, businesses and government agencies in Bay – Orleans, Massachusetts
and in the United States of America who would always need the services of aerial drone photography companies for the various purposes.

We are well positioned to take on the available market in Australia. We are quite optimistic that we will meet our set target of generating
enough income / profits from the first six month of operations and grow the business and our clientele base beyond Australia where we
intend marketing our services.

We have been able to critically examine the aerial drone industry and we have analyzed our chances in the industry and we have been
able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some
assumptions that are peculiar to startups in Bay – Orleans, Massachusetts.

Below is the sales projection for AIROCITY, it is based on the location of our business and the wide range of products and services that we
will be offering;

• First Fiscal Year-: $1,00,000

• Second Fiscal Year-: $2,500,000
• Third Fiscal Year-: $7,500,000
 BUS303 13
AiroCity

Financial Feasibility of AiroCity

Given our existing commercial relationships with 4 of the largest Drone service center, we believe our initial roll out program
designed to introduce the service to the market will produce the following revenue outcomes in the first year of operation:
Projections have been calculated assuming an average of 200 Drones in Center per week initial roll out is $1500 per center while
monthly service is $500.

Service Takers Initial roll out rental fee 500$ Ongoing monthly service fee
per center retainer of 50$ per Drone
Goldberg state Air Security 50*500=25000 12*50=600

25000*50=1,250,000
Kobold regional Street Guard 50*500=25000 12*50=600
Company
25000*50=1,250,000
Southwestern APF Police 50*500=25000 12*50=600
force
25000*50=1,250,000
National Disaster control 50*500=25000 12*50=600

25000*50=1,250,000
Total expected return $5,000,000
 BUS303 14
AiroCity

To date, getting the service ready for market has been funded by the founding owners’ equity. In order to be able to get to the next
level, “AiroCity needs investors to provide funds. Well beings founder has considered the fund providers options and would be
comfortable with a combination of both debt and equity finance, under the right conditions. We need finance in the short term to
have our monitoring devices produced so we can roll out the service to 25 additional centers in the first year. We recognize that we
are in the start-up stage of the business life cycle and would also be open to the idea of venture capital opportunities. We are
seeking an investment of AUD $3,000,000 to fund the start-up costs of this venture in its first year.
 BUS303 15
AiroCity

Timeline for Business Development (2020)

Idea Generation Idea Selection Start of Development End of Development Launch

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Business Analytics testing

BUS303 16
AiroCity
 BUS303 17
AiroCity

Financial Statements for AiroCity

Statement of Start-up Costs Forecast

equipment/capital
start-up cost cost cost2
cost
registrations $750 start-up capital $300,000
business name/domain
$500 plant and equipment 100,000
name
trade
$3,000 computer equipment $100,000
marks/design/patents
accountant fees $25,000 computer software $50,000
solicitors fees $1,300 phones $25,000
rental, lease cost $105,600 security system $15,000
utility connection $50,000 office equipment 20,000
phone connection $4,000 furniture $20,000
internet connection $12,000
computer software $250,000
training $250,000
wages 0
stock/raw materials $10,000
insurance 2,400
building and contents $25,000
public liability $50,000
professional $5,000
stationary and office
$24,000
supplies
marketing and advertising $3,400

total start up cost $821,950 total equipment cost 630,000

 BUS303 18
AiroCity

Balance Sheet Forecast

Balance Sheet Forecast
Balance Sheet Forecast Year 1 Year 2 Year 3
Current Assets
$ $ $
Cash 254,980.00 377,890.00 500,400.00
$ $ $
Inventory 1,800,790.00 2,858,900.00 2,906,000.00
$ $ $
Account Receiveable 70,000.00 65,000.00 80,000.00
Short-term $ $ $
Investments 100,000.00 230,500.00 346,000.00
$
Prepaid Expenses $ - - $ -
Fixed Assets
$ $ $
Office Supplies 350,000.00 476,000.00 559,000.00
$ $ $
Office Equipment 150,000.00 2,000,000.00 2,806,000.00
$ $ $
Computer Hardware 765,880.00 876,900.00 1,000,000.00
$ $ $
Softwares 89,000.00 150,000.00 210,000.00
$ $ $
Machinery 130,000.00 160,000.00 190,000.00
$ $ $
Total Assets 3,710,650.00 7,195,190.00 8,597,400.00
Current/ short-term Laibilities
Accounts Payable $ $ $
 BUS303 19
AiroCity

950,000.00 1,200,000.00 2,000,000.00

$ $ $
Income Tax 100,900.00 145,000.00 187,000.00
$ $ $
Interest Payable 90,000.00 120,000.00 110,000.00
Long-term Liabilities
$ $ $
Long-term Debt 1,587,900.00 2,897,000.00 3,005,000.00
$ $ $
Total Liabilities 2,728,800.00 4,362,000.00 5,302,000.00

$ $ $
Net Assets 981,850.00 2,833,190.00 3,295,400.00
 BUS303 20
AiroCity

Statement of Profit and Loss Forecast

Profit and Loss Forecast
Profit and Loss Forecast Year 1 Year 2 Year 3
Sales $1,000,000.00 $2,500,000.00 $7,500,000.00
Less: Cost of Goods Sold $21,000.00 $46,000.00 $53,000.00

Gross Profit / Net Sales $979,000.00 $2,454,000.00 $7,447,000.00

Expenses
Salaries and Wages $20,000.00 $80,000.00 $100,000.00
Rent $10,000.00 $12,000.00 $12,500.00
Travel and Entertainment $5,000.00 $7,000.00 $6,800.00
Stationery and Printing $11,000.00 $12,000.00 $15,400.00
Advertisment Expenses $10,000.00 $10,000.00 $10,000.00
Elecetricity Expenses $15,000.00 $15,000.00 $15,000.00
Insurance $1,300.00 $1,300.00 $5,000.00
Telephone $10,000.00 $10,000.00 $10,000.00
Repair and Maintanance Cost $7,000.00 $20,000.00 $35,000.00
Total Expenses $89,300.00 $167,300.00 $209,700.00

Net Profit $889,700.00 $2,286,700.00 $7,237,300.00

 BUS303 21
AiroCity

References:

Bookfresh.com, “Role of Technology in Business” Retrieved from: https://www.oksbdc.org/the-role-of-

technology-in-business/ on 20th May 2020

Business.gov.au,12 Feb 2020,” Department of Industry, Innovation and Science (AU) “,

https://www.business.gov.au/Planning/New-businesses/Legal-essentials-for-business

Churcille, N. and Lewis, V., 2020. The Five Stages Of Small Business Growth. [online] Harvard Business Review.
Available at: https://hbr.org/1983/05/the-five-stages-of-small-business-growth [Accessed 21 May 2020].

Daniel Evans & Thierry Volery (2001),”Online business development services for entrepreneurs: an
exploratory study, Entrepreneurship & Regional Development”, 13:4, 333-350, DOI:
10.1080/08985620110052274

Gronroos, Christian, 1998, Review of Business: “Service Quality: The Six Criteria Of Good Perceived
Service”, New York Vol. 9, Iss. 3,

Kuhr, T., October 27, 2017. “How emerging technologies will affect your business in 2018”, Retrieved
from: https://martechtoday.com/emerging-technologies-will-affect-business-2018-206042 on 18th May
2020.

LegalZoom. 2020. Business Formation - Choose A Business Structure: LLC, Corporation, Sole Proprietorship,
Partnership | Legalzoom. [online] Available at: https://www.legalzoom.com/business/business-formation/
[Accessed 21 May 2020].

LUI, J.H., MARCUS, D.K. and BARRY, C.T., 2017. Evidence-based apps? A review of mental health mobile

n.d. Facts & Figures About Mental Heath. [ebook] Sydney, Australia: Black Dog Institute, pp.1-2. Available at:
BUS303 22
AiroCity