Business Plan

Tripoli-Lebanon

Prepared By: Sobhi Braidy

Supervised by: Dr. Razan El Masry

Semester: Spring 2016

Graduation Project

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Table of Contents
Table of Tables........................................................................................................................... 4
1. Business Overview ............................................................................................................. 5
2. Products/Services .................................................................................................................. 6
 Mission Statement: ....................................................................................................... 6
 Vision Statement: .......................................................................................................... 6
3. Market Analysis ..................................................................................................................... 7
4. Competition ........................................................................................................................... 9
5. Marketing Strategy .............................................................................................................. 10
7. Finances ............................................................................................................................... 13
8. Action Plan........................................................................................................................... 14
Appendix I: Competitor Analysis ............................................................................................. 16
Appendix II: Strategic SWOT Analysis...................................................................................... 17
Appendix III: Business Budget ................................................................................................. 18
References ............................................................................................................................... 19

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List of Tables

Table 1: Product/Services Description ...................................................................................... 7

Table 2: Advertisement Cost/Details....................................................................................... 12
Table 3: Small Financial Statement ............................................. Error! Bookmark not defined.
Table 4: Details of Action Plan ................................................................................................. 14
Table 5: Competitors Analysis ................................................................................................. 16

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1. Business Overview

VRS it’s the first of its kind, deliver the E-Tourism service anywhere, anytime, at any

place by merging the virtual reality technology in the travel and tourism section to let

you travel to any place in the world at any time you wish just in one click.

We are not only in tourism, but also we will enter in more sections in the future.

Our service is depending on the VR technology (Virtual Reality), in which you buy

the Virtual Reality Gear with one-time service package that contain all the needed

tools and programs to run the complete service, then you can start buying the location

you wish to see by downloading it directly from our online application or website.

The downloaded Application contain full high definition details of the location you

wish to go to, and without any need to have a hotel reservation, airplane tickets, and

visa, just in one click you will be there. Our services is for those who love to travel,

see, and explore new locations and they don’t have the ability to travel all the time, so

if you can’t see the world we will bring it to you with the lowest cost you can ever

find.

We introduce to the world a new business that not yet existed, and until now it’s just a

dream the people think that it’s impossible, but we say “the dream is coming true”,

and everything is possible. We are entering the travel industry in general, but it’s just

the beginning because in the future we will go further into the medical, educational,

social, and also the entertainment industries.

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We are aiming in the future to create a completely different world, the new world

where any dream will come true.

2. Products/Services

As the overview contain, our business is a type of service but it divide into two parts,

first part is the virtual reality gear camera that used to provide our service to the

customer, and the second part is also divided into two consecutive parts, first is the

photograph part, in which we bring photographers and directors to create an overall

vision for the specified locations, and the second part is the IT section, in which we

will bring IT programmers to merge the photographed scenes and make it in a full live

scenario to make it as an application installed on the Virtual Reality Gear camera, so

the customer can wear the gear and start the scenario and go through it as he like

without any borders or restrictions on how they will go or what they will see, it will

be a fully 3rd person scene in which after starting it the customer can enjoy a full

tourism experience, such as walking in the streets, watching the shops interfaces and

go in some shops to live the shopping experiment, and more of the tourism experience

will be added in the near future.

Our competitive advantage in the market is our mission, vision, and price.

 Mission Statement: Our mission is to offer the full satisfaction to our

customers in all sections. We are aiming to create the new world.

 Vision Statement: Our vision is aiming the middle, low income people and

minorities in the market, those who can’t try the travel or the full tourism and

shopping experience.

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We will deal in the future with the companies who will supply our business with the

needed technology and software resources, and with shops to try selling their products

online through our technology.

It’s the beginning of the new online services age, a whole new experience is awaiting

you, don’t miss it. And for the prices it will be handled, just the price of the gear for

one time only, it will cost around the $1750 including in it our application and one

free destination you can choose to try it. After that you will be able to purchase any

destination you which to go to and download it for a lower cost, around $650 for

every location.

Every package the customers buy it, will include a discount on anything he buy it

online through our service, a permission to include up to 5 persons at the same time to

enjoy the travelling and shopping experience together without any extra charges, and

the ability to use the same location for unlimited time without any other hidden

charges.

Table 1: Product/Services Description

Services Specifications Price and Description

Products

Number of users: 1 $1750

Dimension: 7.95" (W) x 3.65"
VR Gear (H) x 4.58" (D)
Type: Accelerometer,
Gyrometer, Proximity
(Mount/Unmount Detection)
Include one free destination
chosen by the buyer and one
randomly chosen trial
version

3. Market Analysis

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Our business provides a local and national services, starting from our country (local)

right now and over several countries around (national) in the future. The target market

of our business is anyone who wants to travel but he can’t. Also we will aim for the

people who have special needs. It’s an additional segment that we aim on it and our

competitive advantage because the real-life tourism cannot stand in it due to rules and

conditions, for example those who can’t walk or get on an airplane or can’t have the

full experience of travel. And with a low cost than a regular travel package, we can

afford for them the maximum satisfaction needed.

Also the travel market in our current location is growing but it face many problems,

starting from financial problems to security and many other reasons, so in our

business we can offer to our customers the wanted satisfaction in those points (more

secured, less costs, more freedom in their travel experience...). Also we will have

seasonal price to differ us from our competitors. In other word, we will offer

competitive packages in competitive prices, for example; in holidays such as New

Year, Christmas and other special days.

Based on the questionnaire completed in the local market, we can reduce the cost by

starting with the most needed places so we can give people what they want with a

lower cost, also we will offer a middle pricing service with a normal package that

contains the needed satisfaction for the customers. In this point we will have another

competitive advantage; the airlines can’t reduce their prices because of their highly

costed materials such as; fuel for airplane, regular service cost, wages.....

As we see from the questionnaire, there are two different types of customers, one who

is looking for fun, shopping, exciting night-life, and enjoying the life. The second

type is, those who are searching for the peaceful, they just looking for a quite place in

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the nature to sit and relax, or just walking for a little time. So we create two sections,

one for the young people and one for the old ones, as we see in the questionnaire.

4. Competition

Any business in this world have a competitors, also our business have a competitors

regardless that it’s a new idea, for sure our competitors are many such as the airlines,

tourist agencies, tourist guidelines, and hotels, those are the major competitors of our

business, because our service will let the customers travel around the world without

the need to pay for travel tickets or hotel reservations and they can travel without

needing the help of a travel agency.

Our service will provide a free trial to the customers before the purchasing, so they

can try it with its full features and then make the decision about buying it; also we

will provide our service in a competitor price. A standard travel for two persons for 10

days to UAE for example, will cost a minimum of 3000$ distributed as (tickets $320

per person, hotel reservation; 2 persons for 10 days cost $1500, regular restaurant for

two persons once per day cost $200 also there is the dinner cost around $250, with a

minimum of $500 for transportation, and buying souvenir). Our service will provide a

travel to UAE unlimited time with a cost of 2000$ for one time paying only, after that

the customer can use our service to travel to this destination for an unlimited time for

free, and any updated needed for this place will cost a very low price, for example

20$ only and unlimited use.

Also our service it can be shared with family members, up to 5 members can travel

with each other to the same destination using our service with the same cost, without

any additional or hidden costs.

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We will also offer competitive prices for those who like to try our service by group,

more than 5 members if they want to travel to the same destination at once we can

provide them with a premium package.

In addition, we will provide our customers with an online shopping feature, so they

can walk between the stores and if they are interested in something they can chose to

review, and make an online purchase so they can enjoy the shopping experience in the

same way of the real-life shopping.

Our customers will benefit from lower costs in travel, and in their online shopping by

providing to them a package with discounts on any product they buy it online through

our service.

In the normal case, customers need to go to a travel agency to make the reservation

and create a travel plan, or to do it by their own by going to an airline company and

hotels to make the reservations needed. But unlike our competitors, our customers

don’t need to do any of these steps; they only need to visit us once to buy the main

product, and then they can buy any package that satisfy their needs including in it our

service and all its features online without any need to do any effort.

5. Marketing Strategy

The most important thing in our strategy is to use the right way to market our service

and deliver it to our customers. We choose 3 ways to attract our customers;

Firstly using the television ads, by using this method we can reach a large number of

customers, from different markets, locations, and types. Refer to our questionnaire,

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we see the three different ages available, “teenagers, young and adult people” so our

service is opened to a large sector include in it a different types of people that only

can reach them by using a popular and daily used methods. We can put our ads. In

time which a large number of people available, for example; we can put our ads. On

news channels on the 20:00 pm news, in which too many people are watching it, or

putting them on a specific hour which a popular TV program are shown and collect a

large number of viewers.

Secondly using the billboard, too many people don’t watch news channel or specific

TV programs; they prefer doing something else such sports or going to some places

with friends, etc.... So to reach this type of people, we may using the billboard

available on the road, so when they are walking or driving a car they can see our

service and they may be attracted to know more information about it.

Thirdly using the social media websites, we are now in the age of speed and internet

uses, there is millions of people use social media everyday for example; Facebook,

Twitter, Instagram, Snapchat, and too many other social medias available, so we can

use those medias to put our ads. On them and benefit from the large number of people

available there.

Of course we are not stopping here, we are working on brochures that contain a

definition for our business, products and services provided by our company, also by

distributing business cards to our customers so they can find how they can reach us

and communicate with our specialized employees.

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For more information about our company, they can reach us on our website:
www.vrs.com/AboutUs

Facebook.com/VRS

Twitter.com/VRS

YouTube.com/VRSChannel

Table 2: Advertisement Cost/Details

Type Television Ads. Printed Ads. Social Media Ads.

Details

Local 30 second ads. Cost Cost of full Cost per month

$3000 - $5000 coloured page $1000 - $3000

$20 - $100

National 30 second ads. Cost Cost of full Cost per month

$5000 - $15000 coloured page $5,000

$1000 - $2500

International 30 second ads. Cost Cost of full Cost per month

$8000 - $20000 coloured page $20,000

$1500 - $6000

 Exit Strategy:

Consistently I read about a little business shutting its entryways in light of the fact

that the "new rent is excessively costly", "the owner had a stroke", "just got tired", or

on the grounds that "business was moderate". Several organizations go out along

these lines each day. Frequently a little shop, a little development organization, a shoe

store, or a specialist's offices are closed every day.

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If we face such issues, we will take some steps to fix it, but no to fully retrieve from

the market or shutdown the business. We will save our name and reputation by

resizing our business to a small application service that provide a simple service to the

customers, such as the ability to take 360 degree picture with their mobiles, or by

going so far and entering other segments such as virtual training for army’s, or other

related services.

Second step, if there is nothing to do and the business fall back, we start the planning

process to sell the business in the open market; it’s the best way to sell a small

business to other company or other owner in the market, so they pay a good amount

of money in order to take the business in its current situation.

7. Finances
Every business need to be financed either by a personnel investment or by external

investors such as investment companies, bank loans, other business owner’s...

Our business will be financed by other business owner, who will provide us with the

needed budget to start our business in order to re-pay the investment by giving the

investors a percentage of the net income or by a specified amount that will determine

in the contract later.

This is our first option of the financial plane to our business, but also it’s able to

negotiate with the investors to find other way or offers to finance the business.

A financial table can be founded in the end of the business plan will show how much

we expect to gain profit in the end of the first year and expectations table for the

second year who will provide information about sales increasing and profit also.

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 8. Action Plan

Any business plan need to be provided by an action plan to show how the business

will begin, and start. It show all the procedure from scratch until the moment of the

start-up of a business, also it provide some information about the beginning of the

business.

Table 4: Details of Action Plan

Key Objectives Task By Whom By When

Establishment
Register business and Owner 13 July
trademark
Research and purchase Owner 14 July
licences
Finalise premises - Rental agreement General 4 Aug
- Redecorate Manager
- Finalise office set up
Legal
Contracts Consult with lawyer General 15 Sep
Manager
Finalise contracts General 30 Sep
Manager/Owner
Sign General 10 Oct
Manager/Owner
Finance
Determine fixed - Get costing Owner 15 Nov
overheads - Meet with accountant
Determine financial Identify amount to reduce Owner 23 Nov
objectives loan
Finalise cash flow - Review P&L with managers Owner/General 1 Dec
plan - Complete cash flow plan Manager
Finalise initial finance Review finance documents General 20 Dec

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 Manager
Marketing
Determine sales and Identify sales in each Marketing 1 Jan
marketing objectives quarter for first year Manager
Determine launch Outline plan Marketing 1 Feb
plan Manager
Agreement and decision on Marketing 1 March
implementation Manager/Owner
/General
Manager
Create a brochure Agree concept Marketing 17 March
Manager
Approval of copy Owner/General 14 Apr
Manager
Print Marketing 26 Apr
Department
Distribute brochure Marketing 9 May
Department

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Appendix I: Competitor Analysis

Our competitors are too many; we can’t just list them in a simple table. We face

the airlines, hotels, travel agencies, and any person or business concerned in this

section, because we offer the same experience to the customers with less cost

and without any needing to do any of the knowing long routine.

Simple as that, the table below will show who the competitors are in a simple

way with some description:

Table 5: Competitors Analysis

Competitors Their Services Our Competitive

Advantage
Airlines Transportation of the No need to pay a lot of
costumers to anywhere money, and take flight risk
Travel Agencies Make reservations for No need to make
the travellers in return reservations and pay every
of money time you want to travel
Tourist Guides People stay with you E-Guide, you can hide it
along the way to give and explore freely on your
you information about own way, and able to show
the current place it when you want
Hotels Which a traveller need You are at your own home,
to reserve in it, so he you don’t have to reserve
can find a place to stay and pay a large amount of
in money, you can stay as
long as you want

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 Appendix II: Strategic SWOT Analysis
Strengths
 Good customer service
 Creative Idea
 unique services
 Competitive price
Opportunities Strategies using strengths
to address opportunities
 Lack of similar  Promoting good customer
business in the service to attract
market competitor’s customers
 Ability to introduce  Using a pre-service trying, to
new services in a let the customers try the
wide range in service before the purchasing
different sections
 Giving our customers a free
in the future
premium package at the first
 Can reach a wide
purchasing operation
range of
people(Old people,  Reduced price, to face the
special needs competitors with a new and
people) low-cost service
Threats Strategies to counter threats
with strengths
 Decrease in  launching new service to
consumer demand revitalise consumer demand
after trying it  Charge very low fees in a
 Sudden increase in type of extra options
costs  Create a very good
 Probability to show reputation, and bring a loyal
other similar customers by delivering for
competitors in the them what they expect to
market see and much more
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Weaknesses
 New business in classic world
 Lot of adult people may not
interest in technological
section
 Poor of trained employees
Strategies to reverse
weaknesses to address
opportunities
 hiring an experienced trainer
to up-skill staff
 Provide better marketing
strategy with a wide range of
age scale to let the old
people try our service.
 Provide better view for the
business and using free
proto-type and trial versions
of the service.
Strategies to fix
vulnerabilities
 Utilising new technologies or
social media to reach
potential customers
 Adapting green practices to
minimise costs
 Open our service to social
media section, so we can
attract more customers
Appendix III: Business Budget

I. Personnel Budget:

A. Salaries $ 288,000.00

B. Medical Insurance $ 11,520.00

II. Office Budget:

A. Rent $ 14,400.00

B. Supplies (5 computers, 3 work stations, editing and programming

accessories, private generator) $ 10,000.00

C. Furniture $ 3,000.00

D. Bills (Internet, Electricity)

E. Other Expenses

III. Travel:

A. Airfare $ 150,000.00

B. Hotel Expenses (Average of 3 stars hotel for 60$ per night for 5

persons)

$ 250,000.00

This is our first budget list and its cover the whole expenses of our business for two

consecutive years before its startup. Its cover the salaries, freight of the equipment’s,

rents, hotels expenses, air transports, and other expenses needed.

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References

25/03/2016:

Marketing Strategy:

http://www.entrepreneur.com/article/226603

Exit Strategy:

22/04/2016:

http://groundfloorpartners.com/exit-strategies-for-small-business-owners/

25/04/2016 :

http://sbinfocanada.about.com/od/businessplanning/a/exitstrategies.htm

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