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Bus Tracker

Business Plan

Conor Dorman
80 Rossbrook,
Model Farm Road,
Cork,
Ireland
0875648921
conordorman@bustracker.com
www.bustracker.com
9th January 2015

BusTracker Business Plan

Page 0

Contents
Executive Summary............................................................................................... 2
Company Description............................................................................................ 3
SWOT Analysis.................................................................................................... 3
Market Analysis...................................................................................................... 3
Sales Strategy....................................................................................................... 4
Research and Development................................................................................... 4
Staffing and Operations......................................................................................... 5
Health and Safety.................................................................................................. 5
Failure Determination and Analysis Table...........................................................5
ISO Standard...................................................................................................... 5
Engineering Ethics Investigation........................................................................6
3 Year Financial Projections.................................................................................... 7
Key Assumptions................................................................................................ 7
Cash Flow........................................................................................................... 7
Funding Requirements........................................................................................... 8

BusTracker Business Plan

Page 1

Executive Summary
Bus Tracker is a new company which uses an intelligent user-friendly mobile app
to help bus passengers to track their bus at a click of a finger. Bus ireann and
Bus Tracker have agreed a contract and our technology will be rolled out to their
entire fleet. The mobile app market has been growing consistently for a number
of years and our app was developed by Future Processing in Poland who have
almost 15 years expertise in the business. Our research team worked closely
with the Future Processing team to develop a suitable mobile app and webpage
for bus passengers of all ages. Our office which is located in Forge Hill Industrial
Estate has 20 workers in 4 separate departments including Research and IT,
Marketing, Sales and General Admin.
In partnership with Bus ireann every bus in Bus ireanns fleet will be installed
with a GPS which can be tracked from all smart phones via the Bus Tracker app.
The easy to use app provides real time information on bus locations and
estimated time of arrival base on traffic consumption. Our app will help current
and potential passengers to better plan their trips to work, college, etc. Bus
ireanns passenger numbers have dropped dramatically as more and more
people are choosing to drive rather than wait for unreliable buses. Their recent
price increase of from 1.90 to 2.00 shows how the company is struggling. Our
new app will lead to reliability for passengers who are sick of incorrect bus
schedules.
We will target city workers and college students primarily but in truth our app is
useful for everyone. Each Bus ireann bus stop in the country which has an
advertisement board will display our logo and details on how to download and
use our app. College campuses up and down the country will be visited by our
sales team who will promote the app through interactive games where students
have the possibility of winning a year free bus pass. Leaflets and flyers will also
be handed out in colleges and offices in the city.
The app will be free to download on all smart phones via the App Store for
iPhones and the Play Store for Androids. Passengers who dont have a
smartphone can access our webpage on a PC, laptop, etc free of charge also.
Companies/Businesses can pay for advertising space on the App and the
webpage. Bus ireann have already agreed to use or app and they will be
utilising our service and will pay an annual subscription and annual maintenance
charge. That will be the same for future companies who choose to avail of our
product. Our technology can be used for a wide range of transport such as trains,
trams, delivery vans, etc.
Bus Tracker requires 400,000 investments to help our company grow and will
provide 100% return to all investors over a four year period. Our potential
finances for our first 3 years are shown below and portrays a healthy business.

Income

BusTracker Business Plan

Year 1
1,925,00
0
Page 2

Year 2
1,560,0
00

Year 3
1,600,0
00

Expenditure
Taxable Profit
Tax
Net Profit

1,655,15
0
269,850
33,731
236,11
9

1,585,8
70
210,24
9
26,281
183,9
68

1,520,2
40
263,72
8
32,966
230,7
62

Company Description
Bus Tracker is a new partnership company located in Forge Hill Industrial Estate,
Cork City Centre, Co. Cork that provides expertise in GPS tracking for buses
nationwide. We will work with Bus ireann and will cater to all people with a
greater emphasis on commuters. We will provide up-to-date information on bus
schedules nationwide via a free easy to use mobile phone app. Our new
company will provide precise tracking on buses for the public and can be
developed further for a wide range of transport.
The app is designed to tell you the precise location of your chosen Bus ireann
bus at a click of a finger. The app is developed further to let you know how far
away you are from the nearest bus stop that will bring you on your chosen route
using your GPS location on your mobile phone, PC, laptop, etc. It will also give
you an estimated time of arrival for your chosen bus to your chosen bus stop
taking traffic in to consideration.

SWOT Analysis

Strengths
Our specialist marketing
expertise.
Location of our business.
Our apps user-friendly
interface.
Our vast market.

Opportunities
Expand to trains, delivery
lorry/trucks, etc.
A developing market.
International market
available.
Security of working with the
government.

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Weaknesses
Irish City Traffic.
Customers must have a
smart phone.
Company has only one
product, if product fails so
too does the company.
Threats
Dublin Bus has a similar app.
Bus driver strikes.
Potential hackers.

Market Analysis
Bus Tracker Corporation sees Bus ireann and Dublin Bus as the two main public
bus companies in Ireland. Dublin Bus has a similar app in place. Dublin Bus
however are confined to Dublin only and hasnt the same nationwide potential as
us. Bus ireann have no such app and is struggling financially, as can be seen by
the recent price increases on bus tariffs. This price increase, coupled with the
publics growing need for reliable bus arrival times has lead to Bus ireann to
seek help. More reliable bus arrival times will lead to an increase in passenger
numbers and customer satisfaction.
As previously explained, Dublin Bus has a similar app and their market is
confined to Dublin whereas Bus ireann is nationwide. Bus ireanns fleet
consists of 1,300 buses of various makes and models. Agreeing a contract was
just the beginning for our company but is the most important step for our
business. We predict that we will control 80% of the market when the app is
introduced.
Traffic in Ireland is a serious problem for buses not being on schedule. However if
passengers know where buses are at any point in time this will help them plan
their trip more efficiently. We will also include approximate time of arrivals for
buses taking into account the traffic situations to make it easier for passengers
to plan their journey.

Sales Strategy
Bus Tracker will provide a free app available on all smart phones. iPhone users
can download the app for free on the iTunes Store and Android users can
download it on the Play Store. The app will also be accessible online. Our
revenue will come from bus companies such as Bus ireann utilising the
technology as well as advertisements on the app and webpage. Bus companies
will pay an annual subscription year for the service as well as a maintenance fee
each year. The cost of subscription and maintenance will depend on the size of
the company. Businesses can also pay for advertisement spacing on the app and
webpage.
The target market for our app is everyone but we will put a greater emphasis on
current and potential commuters. Current commuters who already avail of public
buses will welcome this new technology which will aid them in effectively
planning their journey. The potential commuters are those who choose not to use
public buses due to their unreliability. We will target these commuters by
handing out leaflets to offices in each city and big town nationwide.
In addition the first time a person downloads the app they will receive one
standard bus trip for free. Furthermore, every bus stop nationwide with an
advertisement board will have a sign of our app displayed. We will also launch a
number of campaigns on the campuses of the main universities and colleges
nationwide to target students. An interactive game for students will be available

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for students to play on campus to win prizes such as a year-long bus pass and
leaflets and flyers will be distributed.

Research and Development


Our research team found that there was an obvious need for this app because of
the publics frustration with public buses. Bus ireanns unreliability acted as a
deterrent for customers and it was obvious that an alteration to bus schedules
were needed. Bus ireann is also struggling financially, which can be seen by the
recent price increase from 1.90 to 2.00 for a standard adult trip.
We researched Dublin Bus app which was launched in 2013. By the end of 2013
the app had almost 400,000 downloads. Dublin Bus has only has a fleet of 160
buses which is much less than Bus ireanns 1,300. We feel that our app will
surpass Dublin Bus as we have a considerably larger market and are in talks to
expand our app to other types of transport.
Future Processing located in Poland designed and developed our app. They have
expertise and experience in the development of mobile apps since their
foundation in 2000. In 2014 they were named one of the top 100 businesses in
Europe in 2013/2014 edition of European Business Awards.

Staffing and Operations


Mangement
Sales and General Manager: John
OConnor
Signs off on sales teams
decisions.
Day to day running of the
business.
Hiring and firing of staff.
Marketing and H & S Manager:
Mary Twomey
Detail any accidents/incidents.
Signs off o Marketing teams
decisions.

Research and IT Manager: Tom


Murphy
Signs off on Research and It
teams decision.
Responsible for final design of
app.
General Administration Manager:
Tim Long
Manages financial side of
business.
Issue the payslips of workers.

Staffing

20 office workers in total.


4 office workers in each of the following department:
o Sales
o Marketing
o Research and IT
o General Administration
1 manager for each department.

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1 overall manager who is the Sales Manager also.


Every 3 years a Health & Safety Officer is elected from one of the three
remaining department mangers.

Office
Our office is located in Forge Hill Industrial Estate, Forge Hill, Cork City Centre,
Co. Cork. The office is close to Cork airport and close to one of Irelands main city
centres.

Health and Safety


Failure Determination and Analysis Table
Step
Bus passengers dont
have the App.
App hacked.

App gets a virus.


GPS onboard bus breaks.
App crashes.

Hazard
Bus passengers cannot
use the service.
Passengers bank,
address, etc details
taken.
Passengers phones get
viruses.
Passengers do not know
location of bus.
Passengers cannot avail
of the app.

Solution
Webpage is available free
online.
Passengers not asked to
provide private details.
Ant-virus installed on
app.
Spare GPSs available at
bus stations.
Procedure put in place to
get app up and running
again as quick as
possible.

ISO Standard
ISO 20000-1. IT Service Management. For any company concerned with robust
and effective management of IT resources.

Engineering Ethics Investigation


Social Conscious
Far too many people are driving to work, college, etc nowadays. Too make it
worse most workers/college students drive themselves rather than car-pooling.
They are dissatisfied with Bus Eireanns unreliable bus schedule which would
lead them to be late. Our app is designed for the public. It is easy-to-use for all
ages and is provided free of charge. Our app will lead to a reduction in traffic in
built up areas as more and more people will ditch their cars for a newly reliable
bus stop. A reduction in traffic consumption is better for everyone.
Sustainability
Our app is here for the long term. It will provide a very important service to the
public that is very much needed. Beyond public bus transport we hope to provide
for public buses all over Europe aswell as public trains, delivery vans and planes
in Ireland and Europe. We are backed by the Transport for Ireland and Bus
Eireann who are mainstays and have the backing of the Irish Governent. They
provide the security and sustainability for our business.
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Environmental Awareness
All our data is stored in our office computers while passengers will deal solely
with the app. No hardcopy of information is available for passengers so no
rubbish is accumulated. Our leaflets, flyers and other advertisements are all fully
recyclable.
Our app will lead to less traffic on Irish roads as people convert from cars to
public buses. The drop in emissions from this is very positive to the environment.

3 Year Financial Projections


Key Assumptions

Bus Eireann pay us annually 1,200,000 subscription and 250,000


maintenance.
Funding is required for 2015.
An initial fee of 300,000 was paid to Future Processing for developing the
app and each year a maintenance fee of 30,000 is paid.
We have a 10 year lease on our office costing 350,000 per annum.

Cash Flow

Subscriptions
Maintenance
Fees
Funding
Advertisements
Income

Year 1

1200000

Year 2

1200000

Year 3

1200000

250000
400000
75000
1925000

250000

250000

110000
1560000

150000
1600000

6000
50000

62000
40000

6450
35000

Accounting
Advertising
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App Development
300000
App Maintenace
30000
Anti-virus
protetction
10000
Bank Charges
42000
Electricity
3000
Insurance
1500
Lease
350000
Maintenace
700
Miscellaneous
2000
Office Supplies
3000
Repayment to Investors
Security
750
Telephone
2000
Utilities
4200
Wages
750000
Website
100000
Total Operating
Exp.
1655150
Gross Profit
269850
Net Cash
Taxable Profit
Tax
Net Profit

0
269850
33731
236119

30000

30000

10000
43000
2900
1550
350000
700
1800
2000
200000
720
2200
4000
760000
75000

10000
40000
2600
1650
350000
680
1600
1800
200000
760
2100
3600
765000
69000

1585870
-25870

1520240
79760

236119
210249
26281
183968

183968
263728
32966
230762

Funding Requirements
In Year 1 400,000 is required to get the business up and running. This
investment capital is of vital importance to Bus Tracker so enough finance is
available to maintain the business. Potential businesses can have confidence in a
business which is striving to become a major player in the transport industry. We
have plans to expand our business to cater for private bus companies, public
trains, etc.
Investors will be rewarded by receiving a 100% return on their investment over
a 4 year period. 4 equal repayments plus interest will be paid annually to
investors in our company. It is a huge chance for potential investors to make a
profit but also for them to help Ireland and the public during this difficult time.

BusTracker Business Plan

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