IV. Financial Plan
The financial plan outlines the revenue streams, projected expenses, and profitability of the FoodFind marketplace.
Revenue Streams:
Advertising: The FoodFind marketplace will generate revenue through advertising partnerships with local and national businesses. We will offer targeted advertising opportunities to promote specific food and drink items, events, and deals.
Commission Fees: A commission fee will be charged for orders placed through the FoodFind marketplace. The commission fee will be a percentage of the total order value.
Projected Expenses:
Employee Salaries: The FoodFind marketplace will require employees to manage operations, customer support, and marketing. We anticipate hiring a team of experienced professionals to ensure the success of the marketplace.
Technology: Technology infrastructure and software development will be required to maintain the marketplace, facilitate transactions, and ensure security. We will need to invest in technology upgrades and maintenance as needed.
Marketing: We will invest in targeted marketing campaigns to drive awareness and user acquisition. This will include social media, email marketing, and paid advertising.
Profitability:
Based on our revenue streams and projected expenses, we anticipate strong profitability within the first year of operation. Our revenue will grow as more restaurants and cafes join the platform, and we establish new partnerships with local and national businesses. Our goal is to achieve profitability within the first 18 months of operation.
We will regularly monitor and analyze our financial performance to ensure the sustainability and long-term success of the FoodFind marketplace.
Poor calculation if we give our cafe an average of 3-4 orders per day:
Assuming an average check of $15 per order, the net income per order after deducting payment processing fees, manager commissions, and CPF redemption fees will be 2.1% or $0.315.
With an average of 50 orders for delivery and 50 orders for pickup per month, the total net income from a single cafe will be $31.5 per month ($0.315 x 100).
Assuming an average of 5 new cafes are connected daily, we will have a total of 3,650 connected cafes at the end of the first year.
So, in the first year, our total net income from all connected cafes will be $114,975 per month ($31.5 x 3,650 cafes).
For cafe advertising, assuming an average check of $500 per month and no more than 10% of cafes participating, we can expect to earn $18,250 per month from cafe advertising.
Our total monthly revenue for the first year will be $133,225 ($114,975 + $18,250).
In the second year, assuming an average of 10 new cafes are connected daily, we will have a total of 6,650 connected cafes at the end of the second year.
So, in the second year, our total net income from all connected cafes will be $209,475 per month ($31.5 x 6,650 cafes).
For cafe advertising, assuming an average check of $750 per month and no more than 10% of cafes participating, we can expect to earn $41,625 per month from cafe advertising.
Our total monthly revenue for the second year will be $251,100 ($209,475 + $41,625).
Assuming our expenses for server hosting, app maintenance, employee salaries, and other operating costs are $60,000 per month in the first year and $100,000 per month in the second year, our net profit for the first year will be $73,225 per month ($114,975 - $60,000) and our net profit for the second year will be $151,100 per month ($251,100 - $100,000).
Year 1: Total profit(7% of check): $4,818,000. Bank commissions costs(2.9% of check): $1,905,300. Payments to managers (1% of check): $657,000. CPF buyback (1% of check): $657,000. FoodFind Marketplace (2.1% of check + advertising revenue): Revenue: $1,598,700. Expense: $720,000. Net profit: $878,700. Year 2: Total profit(7% of check): $8,878,500. Bank commission expense(2.9% of check): $3,471,300. Payments to managers (1% of check): $1,197,000. CPF buyback (1% of check): $1,197,000. FoodFind Marketplace (2.1% of check + advertising revenue): Revenue: $3,013,200. Expense: $1,200,000. Net profit: $1,813,200. In summary, FoodFind's net profit in year one is expected to be $878,700, while year two is expected to generate $1,813,200 in net profit. Over two years, the total net profit is expected to be $2,691,900.
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