Executive Summary:

An executive summary is a general overview. Its purpose is to summarize, organize the

key points of the business plan for the readers and saving them time while preparing
them for upcoming content. It must be clear, short and concise. When seeking new
partners, business loans or funding it sums up the business plan and opportunity in a
tight document.

“This is your key to getting more capital. Only an effective one will unlock that door or
get commercial lenders or investors to give you any more attention” According to the
author Alejandro Cremades.

It states what problem is the product/service is going to solve. In which market, is the
solution will be proposed and a brief about the state of the competition in this market, it
include also some financial highlights.

This business plan is about a new company “ChatFabrica” a solution provider for
businesses that want an alternative for traditional customer support and communication
tools. Companies are investing heavily to have a consistent and effective help center that
can respond to customer requests at anytime so our agency will provide this bot through
Artificial Intelligence so businesses can offer a unique experience through interaction with
their customers. The market isn’t crowded for now and the companies able to propose
chatbots aren’t numerous, the competition is a little bit aggressive.

A chatbot is a computer-based program designed to simulate a conversation with human

users especially over the internet. The chatbot market will be valued about $2.2B in 2024
compared to $357M in 2017. Our funding will be from a joint venture with Creative
Virtual Ltd one of the key players in the global chatbot market along with Nuance
Communications Codebaby, Anboto, Inbenta Technologies Inc, and Aivo. The use of
Chatbot is segmented in two-part, Web-based and Mobile-based.

Our competitive advantage remains in an online sale, that don’t require any business
owner to relocate, our chatbot effectiveness is higher because of the cognitive support
provided by our specialists that result into a compelling customer experience.

Profitability will be positive from the 1st Quarter of the next year, while always searching
for funds to expand our teams and evolve our technology.
Company Description:

This part describes the company and its activities when forming a business. It includes
the mission statement and values. Things that tell the story of the business and that allow
others to connect with your business.

The company description outlines vital details about the company, such as where you are
located, how large the company is, what you do and what you hope to accomplish. It
describes the vision and direction of the company so potential lenders and partners
develop an accurate impression about the business and the manager.

The elements that can be included can vary, but some of the important information are;
Company name, History, type of business structure, ownership/management team,
location, mission statement, products/services line and target market, objectives, vision
statement. operations (Gregory 2018)

Example

ChatFabrica, LLC. is a new communication agency that provides expertise and

revolutionary service to businesses worldwide (Business-to-business). Our service is
mainly “Chatbot”, a chatbot is an artificial intelligence conversational and interactive robot
that conduct a conversation via auditory or textual methods. It facilitates the
communication between customers and businesses with large base of audience that need
customer support.

ChatFabrica is based in Barcelona, its mission is “to ease the communication between
businesses and their customers”. Our vision “is to facilitate the access to information and
create a flawless customer’s experience by bringing them closer to your brand””

Our goal is to build an intelligent interface to create customizable and automatic

conversations, in order to facilitate the response for customers requests in a smooth
experience via any messaging application.

Service Line

Services:

• Chatbot (B-to-B).
• Interactive Website.
 • Vocal Bots.
• Search Engine Optimization.

Pricing Structure:

• Chatbot: From $5.000 to $13.000.

• Feature-rich and custom-built website: From $1.000 to $15.000.
• Vocal Bots: from $10.000 to $30.000.
• SEO: $100 to $50.000.

Management Summary:

This part is reserved to illustrate the organizational structure, the decision-makers and
team responsible to create and deliver the service. A business is more likely to be
successful when you have the right management and organization for the company. It’s
crucial to attract investors and guarantee the growth of the company. Critical success
factor for a chatbot agency remain in the humans, it’s a knowledge input that will define
and build the service.

Management summary should contain an overview of the team leader background, vision,
responsibility (selecting, coordinating and organizing people). In addition, description of
the whole team, their skills, personal and professional background must be highlighted.
The business structure should be explained depending on the company type (in our case
it’s Limited Liability Company). The governing board should be detailed through a brief
description and the external professionals that the company utilizes to enforce the efforts
of the company. (Wade 2017)

Management summary is an important section in the business plan. It’s where we explain
to investors, financiers and shareholders about the human aspect of the business, defining
the roles and the tasks for each one.

Example: Even with Artificial Intelligence advancements, engineers, developers,

ethnographers and psychologists are needed to keep enhancing and perfecting the
conversational experiences of bots.
 Figure 1 The Skills Needed to Build a Bot. Source: Chatbot Magazine (Muralidhar 2017)

The board will be composed by;

• Chief Executive Officer (Major corporate decision, Vision, Managing the overall
operations and resources, Communicator and Linker, Public face of the company)
• Chief People Officer (A team builder and a strategist in recruitment and retainment,
culture creator)
• Chief Technical Officer jointly with Chief Operations Officer. (Division responsible
for the creation of the service)
• Chief Financial Officer. (Manage financial action, tracking cash flow, financial
planning, analyze company financial health and propose corrective actions)

Divisions and Teams;

• Conversational interface and applied AI Team (Computer science, AI and agent-

based computing figures)
• Development Team.
• Design Team.
• Deep learning Team.
• Finance and Administrative Team.

Some Important Roles;

• Product Manager/Supervisor
• Project Manager/Supervisor
• Developer/Architect
• Release Manager
 • User Experience Manager (Conversational Expert/Designer and Live Agent
Support)
• Quality Assurance Engineer.

Market Analysis:

This section provides a detailed overview of the industry that we intend to sell our
service/product in. Analyze the competition and the state of the market as a whole. It
begins by extrapolate information from different sources, segmentation of the market,
assess the market size, growth and trends (Berry 2005)

This part will help to understand a company positioning compared to the competition. It’s
accurate to include information on the core target of the business, profiles of your ideal
customers and other market research.

By analyzing the environment around the business from an internal and external
dimension, it’s a general overview about the industry, using relevant numerical data and
trends of the market and illustrating them in this part is critical to emphasis the market
needs and to understand the best actions and practices to undertake.

The market analysis must contain statistics that should be related to the company and
their product/service and help outline the target market’s needs so we can avoid a waste
of resource and time and make sure we have the customers that will pay for the product
or service. (Kerr 2019)

Example

For the ChatFabrica, the relevant data that will be critical to efficiently penetrate the
market, can be statistic on which companies have the highest customer service traffic.

The statistics and forecast of future customer services trends and customers preference
to be responded by humans or robots and if companies are willing to invest in chatbots
to reduce customer support cost up to 30%.

According to worldwide Statista questioning in 2017, 34% respondents would prefer to

be answered by a chatbot in regard to online retail industry, while 27% for healthcare
and 25% in telecommunications.
There is a viable market where we can introduce our service to sell, our ideal customer
can be anywhere, our customers are the businesses with an online platform or present in
social media.

Opportunity

Bot Industry is a new trend and it’s expected to mature in 3-5 years from now. If we retain
the expertise, we will lead the market by developing our agency and perfectionate the
voice-based bot to be more realistic so people can adhere to them.

Figure 2 Bots evolution in the next 3 Years. Source: Chatbots Magazine (Muralidhar 2017)

In the beginning we are going to focus, on these 3 industries to offer our services for
them and include Transport Industry because it’s one of the most active customer services.
Our service will fill the need of businesses to build interaction with their target consumer
via a user-friendly intelligent interface that will replace the traditional human interaction.
We are providing a cost-effective solution.

Our solution will be, offering a range of chatbots for each specific industry, that we will
build according to their specific businesses, our competitive advantage is the ability to
implement the chatbot without in place presence. The chatbot will be created in our
headquarters in Barcelona and delivered wherever the demand is.
 Figure 3 Number of apps and bots available at 3 months vs 6 months Source: Business Insider Intelligence (Nguyen 2017)

Customers are switching to the use of chatbots rather than uploading a new application
to satisfy their requests. this is what explain the increase of chatbot presence. The global
chatbot market is expected to surpass $2.2B by 2024, an annual growth of 29%. (Rake
and Baul 2019)

Figure 4 Potential Benefit of Chatbot Source: The Chatbot report 2018

67% of consumers worldwide used a chatbot for customer support in the past year, and
85% of all customer interactions will be handled without a human agent by 2020.
Chatbots can help businesses save on customer service costs by speeding up response
times and answering up to 80% of routine questions (Shukairy 2019)

In Barcelona, the direct competitors and the most important chatbot startups offering
multiple services are (Magyar 2017);
 • CorreYvuela.
• IndieLabs.es
• Hubtype.
• CogniCor.
• Caravelo.

The scene is getting crowded but with high-skilled collaborators we will be able to
differentiate from the competitors.

Marketing and Sales:

The marketing and sales strategy should be built and evolve to fit unique needs for each
business. The goal of this part is to describe how a business will attract and retain
customers. In addition, how the sale will actually happen and the channels to use.

It’s important to know the market and competition in our environment. Also, mastering
the design of product/service messaging, pricing and other critical marketing strategies
to maximize sales. It’s recommended to measure the marketing mix success through the
5P’s (Product, Price, Promotion, Place, People) that form the basis of the marketing plan
and it’s advised to evaluate the marketing effectiveness (like A/B testing techniques to
measure social media analytics) (Duermyer 2019)

Example

For ChatFabrica LLC;

• Growth Strategy: Networking at Services, Technology, Tourism,

Telecommunication, Healthcare and Transport conferences. Creating our website
that contains engaging content about our interactive service. Presence on social
media while creating traffic and using our own chatbot to make contact with
customers. As the business grows, we will focus on online advertising, proactive
public relations campaigns and attending tradeshows to reach our target
industries.
• Communicate with the target: Promote action through the line with 360°
Marketing and Digital Marketing. (Pahwa 2019)
 In addition, hosting a monthly marketing event to promote the service among the
potential customers and reinforce relations with existing customers while always
creating traffic on social media.
• Sales: Currently the only person in charge of sales is the business founder and
CEO, Youssef Elloumi. As profits increase, we will look to hire more employees to
assist with the account management/coordination. Reinforcing support for online
sales in the same time to vary opportunities. The online presence for sales and
promotion will increase awareness to our target customers.

Financial Plan:

This part may include targets for the first few years of the business and any potential
investors. It should contain the overall budget, current and projected financing, funding
possibilities and sources, financial market analysis and the marketing strategy budget.

A business owner should project revenues and expenses for a certain period of time and
describes the operational activity and costs related to the business. (Kenton 2019)

The financial plan is a document to define the roadmap for an organization for the 3 to
5 fiscal years after its foundation. A financial plan should consider some core components
such as (Alcocer 2018);

• Assumption and Limitations. (Define the framework under the financial plan
estimated)
• Total funding needs for the project (Cash needed for the investment plan, pay
company expenses for the 1st year, run business for the first 6th months, Value
added taxes, unexpected events and expenses)
• Funding Mix.
• Estimation of the financial statements (Projected profit and loss, cash-flow
statement, balance sheet, changes in the equity, Gross Margin, Pro Forma P&L)
• Financial ratios analysis (Liquidity, solvency, activity/rotation, profitability,
valuation)
• Breakeven point.
• Investment appraisal (Economic feasibility of the project)
• Scenario Analysis.
• Making a financial conclusion.
The revenue streams will actually make money. We are beginning to direct sales through
online sales only.

Financial Projection:

• Revenue estimated for the 1st Quarter: $300.000.

• Expenses for 1st Year (Direct Costs and General and Administrative Costs:
$200.000.
• Total income: $100.000.
• Income Taxes: 1st year exoneration.

Cash Flow Projection:

• Cash Revenues (Sales for the 1st Year): $600.000.

• Cash Disbursements: $100.000.
• Reconciliation of Cash Revenues to Cash Disbursements.
• Note.

Balance Sheet:

• Assets: N/D
• Liabilities: N/D
• Equity: N/D
• Note.
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