BANDAID

BUSINESS PLAN
Prepared March 2017
Julian Callan
Darren Doyle
Adrian Naughton
John Reidy
Executive Summary
BandAid is a software company located in Ireland that sells software-as-a-service packages
targeted primarily at the Crche and child care sector. The service is operated through cloud-based
technology for managing documentation and records for children and young adults under 3rd party
care.

This plan includes information on the company, its products and services, market analysis,
company organisation and financial plans.
Company Description
Introduction
Who We Are
BandAid is a crche management company that operates on a software-as-a-service model. This
is backed up by software teams for tech support & training and consulted with through WHAT
DOES THIS MEAN? a direct sales force model.

Customers can access the system via the smart phone app or website with the same log in. The
desktop allows for greater manipulation of information. All relevant documentation for children can
be loaded into the system including soft-copy documentation and accessed via the smart by
scanning a QR code bracelet worn by the child. In line with European regulations everything from
medical records, parent/guardian contact info & fees paid will be tracked on the system.

Software
The software is charged monthly based on how many children are being tracked and will be broken
into bundles the more that are tracked the cheaper each individual becomes. The monthly fee
basically covers cloud storage space which is purchased by the company form Amazon storage
and rented out, this provides detailed security back up for our company. The App and website cost
breakdown is included in the finance file attached in the appendix.

Hardware
Hardware will be purchased branded from a supplier in the UK and be part of an overall
implementation fee invoiced during the initial contract singing but will be available to purchase by
box quantity going forward. The bracelets are child friendly and designed to be comfortable and in
bright colours. They are inexpensive as most will have a shelf life due to activity. The QR code is
embedded under layers of clear varnish lacquer which allows wear and tear. QR codes are quick to
read however any scratches will render it unreadable hence the lacquer.

Service
Our service is our overall company unique value proposition and key differentiator. Although our
main route to market is through our website which is also the platform sued to log in for functional
use we also employ a direct sales model. This means we manage a customers account and
provide productivity solutions and ensure usage going forward. We create a business case to
justify the use of the software and handle training for all staff and implementation of the new
system including guidance on change management. We will also offer additional training at a
charge for the life of the contract.
E- Unique value proposition

Our E-UVP will answer three questions (???) for our current and potential customers.

1. Who uses the site and through what channels We aim to make the colours of the site
under normal marketing principals light green and blue, this appeals visually in a calming
nature and most will associate it with health and wellbeing as well as more appealing to
women seen as though nearly 80% of the industry is staffed and owned by female workers.
The site will have CTAs in the form of Q&A sections to help with site use such as forgotten
password as well as contact us buttons that can be sued for tech support through normal
working hours.

2. Identify needs- The site will identify the needs of potential visitors by highlighting 3 key
differentiators on the main stage (A) this will include our software teams ability to provide
support from start to finish to implementation as well as for the life of the contract. (B)The
site security we provide given the sensitive nature of the information stored, our site uses 2
way encryption data security so all your sensitive information tripled coded via SSL and
monitored 24/7. (C) Clearly defined USP in the industry where we do not charge by user
rather by quantity of children tracked, this model is much more advantageous for
companies and should drive traffic towards the contact us button.

Route to market

There will be a multi-channel approach as a route to market.

1. The traditional field sales model using direct interactions and customer account
management to drive engagement in the initial stages including business case generation
and guidance through the software as well as free demonstrations.

2. The website will be used as a main stage sales channel and also for demonstrations. It will
have a digital contract set up for e signature with a direct debit form attached for upload. For
additional expense and ordering PayPal link will be sued for stock of the hardware needed
in the future.

3. Social media platform Main focus on multi social media platforms will be to drive traffic to
the website. It will not be used as a standard sales platform only for advertising.
Market Analysis
Factors BandAid must consider
As a new business, BandAid need to identify the external factors within our environment that could
potentially impact our entrance in to the market of childcare software. Due to the nature of the
business, factors such as Government and EU legislation, unemployment levels and population
growth directly affecting the number of children in childcare and the status of broadband throughout
Ireland must be taken into consideration in order to properly assess BandAids chances of success
within Ireland.

1. Government Influence and Economic Factors

The Governments influence on Irelands infrastructure has altered the situation of our marketplace,
in the form of tax reliefs and budgets. Consideration must also be given to the potential impact
Brexit will have on the market.

1a. Childcare Package of Budget 2017

From September 2017 onwards, as part of Budget 20171, a new Affordable Childcare Scheme will
be introduced to help families pay for childcare services via subsidies paid directly to the childcare
providers. This encourages parents to enrol children in Tusla-registered childcare facilities. This
new Affordable Childcare Scheme is set up in addition to the Early Childhood Care and Education
(ECCE) scheme we will discuss when looking at the level of childcare uptake in Ireland (section 2).

According to Minister for Children and Youth Affairs Katherine Zappone, the scheme will improve
access to affordable childcare through being open to all childcare providers registered with Tusla2.

BandAid believe that this new scheme will directly increase the numbers of children attending
childcare, as the ECCE scheme before it did (see section 2). This increase in children attending
childcare presents BandAid with an ever-growing market to enter into.

1b. Tax Relief for Start-Ups, TCA 1997 Section 486C

1 Budget 2017: Q&A on the Affordable Childcare Scheme

https://www.dcya.gov.ie/documents/earlyyears/20161018Budget2017FAQDoc.pdf

2 Affordable Childcare Scheme, https://www.dcya.gov.ie/viewdoc.asp?fn=%2Fdocuments

%2Fearlyyears%2F20161011SingleAffordableChildcareSchemeMainPage.htm&mn=chio&nID=2
The Irish Government provides tax relief to start-up companies under the Finance (No.2) Act of
2008.

Section 486c of the Tax Consolidation Act 1997 was introduced by the Finance (No.2) Act of 2008
and provides corporation tax relief for start-up companies in their first three years of trading.

Section 486c provides this relief for companies that

are incorporated after 14 October 2008
set up and commence a qualifying trade between 1 January 2009 and 31 December 2018, and
have corporation tax liabilities which do not exceed specific levels.

BandAid will be able to avail of this tax relief if its corporation tax payable does not exceed 40,000
per year.

Although the maximum relief available for the three years is 120,000, the Irish Government
enhanced this relief with changes made in the Finance Act of 2013. Under the 2013 act, any relief
not claimed in this first three year period can be carried over to subsequent years, under the same
rules as mentioned above.

1c. Potential Brexit Implications for Data Transfer and Storage

The EU Protection of Personal Data Directive 95/46/EC states that personal data can only be
transferred to countries outside the EU and the EEA when an adequate level of protection is
guaranteed.

At the moment, transfer of Data between EU states is regulated by Irelands Data Protection Acts,
written in accordance with EU Data Protection Directive. As BandAid plan to use Amazon Cloud
storage based in Dublin, there should be no issue regarding the storage or transfer of data.

Depending on the outcome of Brexit, consideration must be given as to whether or not BandAid will
wish to operate in Northern Ireland, assuming that it, too, leaves the European Union.

1d. Unemployment and Working Hours

According to the Central Statistics Office, Irelands unemployment rate has reached a nine-year low
in February 2017, at 6.6 percent. The Economic and Social Research Institute predicts that the
economy will return to full employment (a 5% unemployment rate) by 2020.
This low unemployment rate will result in an increase in the need for creches as parents return to
work and will be greatly beneficial to BandAid.

Irelands working regimen also benefits BandAid:

Irelands Organisation of Working Time Act 1997 allows for a weekly work total of up to 48 hours.
Assuming 9 hours worked per weekday, parents of children too young to attend school will be
forced to look for daycare services.
2. Population Growth and Childcare Uptake
2a. Population Growth
Irelands population grew by 170,00 people in a five year period between 2011 and 2016. Although
Irelands birth rate has dropped by 4% in 2015-2016 Third Quarter statistics, Ireland still boasts one
of the European

Unions top birth rates. According to Eurostat, 14.4 babies are born per 1,000 residents in 2014
Ireland, ahead of the EU average of 10.1 and Irelands birth rates have been consistently higher
than the EU average for the past thirteen years.3

This consistently high birth rate will increase the demand for creche facilities throughout Ireland,
thus expanding BandAids potential market.

According to figures obtained from the CSOs 2011 census4 (the latest available at the time of
writing), there are approximately 356,000 children aged between 0-4 in Ireland. This large number
has led to an increase in Childcare uptake in Ireland, as we will discuss below:

3 Crude Birth Rate, Eurostat http://ec.europa.eu/eurostat/web/products-datasets/-/tps00112

4 Census 2011 Profile 2 - Older and Younger

http://www.cso.ie/en/media/csoie/census/documents/census2011profile2/Profile2_Older_and_Youn
ger_Entire_Document.pdf
2b. Childcare Uptake
In a statement dated 22nd January 2017, Minister for Children and Youth Affairs, Dr Katherine
Zappone confirmed that the numbers in the free pre-school scheme have passed 100,000 for the
first time.5

This figure represents an almost 60% increase from the 2014/2015 figures, following an expansion
of the Early Childhood Care and Education (ECCE) scheme in September 2016. This enormous
increase in the number of children in pre-school facilities presents a clear opportunity for BandAid
to exploit.

5 http://www.dcya.gov.ie/viewdoc.asp?DocID=4097
3. Is Irelands Environment Tech-Ready for BandAid?
Does the technology exist in Ireland for BandAid to operate at the level childcare facilities will
require? Absolutely. BandAid propose to make use of pre-existing technologies to develop their
software-as-a-service business, all the while taking advantage of Irelands ever-increasing
broadband penetration.

BandAids main environmental concerns revolve around the standards of internet connectivity in
Rural areas. Internet connectivity is essential to BandAids service. While desktop devices can rely
on fixed-line connections, mobile apps will require WiFi or data connectivity.

3a. Nationwide Access to High-Speed Internet

At the moment, Eir claim that up to 1.6 million homes and businesses can access high speed fibre
broadband6 and according to the current governments Action Plan on Rural Development,
launched January 23rd 2017, all homes and businesses will be connected to broadband by 2020
under the National Broadband Plan7.

According to the Department of Communications, Climate Action &Environments December 2016

Report of the Mobile Phone and Broadband Taskforce, over 4 million people in Ireland are now
using 3G and 4G mobile networks.8

In this report, the DCCAE have recommended a relaxation of telecommunications infrastructure

planning regulations to ensure a smoother deployment of enhanced mobile network coverage
throughout Ireland.9

All of this bodes well for BandAids chances of implementing their software as a service model
throughout Ireland. Due to the always-online nature of the service, a country-wide renovation of
both fixed-line and mobile-based internet connectivity is welcomed.

3b. Smartphone Penetration Levels in Ireland

6 http://fibrerollout.ie/where-and-when/

7 http://www.ahrrga.gov.ie/app/uploads/2017/01/162404-rural-ireland-action-plan-web-2-1.pdf

8 http://dccae.gov.ie/communications/Lists/Publications%20Documents/Taskforce%20Report.pdf

9 Provisions relating to planning exemptions for telecommunications infrastructure should be

amended to facilitate its smoother deployment and the removal of barriers to investment.
BandAids software will be developed for both desktop and mobile users. According to Deloittes
Global Mobile Consumer Survey: Ireland 2016, the overwhelming majority10 of Irish adults have
access to a smartphone (86% of Irish adults). This presents a massive opportunity for BandAid to
push its software-as-a-service onto mobile devices.

3c. Desktop Platforms

BandAid will develop a browser-based app to ensure compatibility between all desktop platforms.

There are three main benefits to web-based applications11:

Cost Effective Development via the uniform environment of a web browser:
We will not have to test the application on every combination of machine.

Accessible Anywhere via any computer connected to the internet:

As the application is web-based anyway, internet connectivity will be assumed.

Easy Installation, as all desktop PCs are pre-installed with web browsers:
Windows - Edge, Internet Explorer
MacOS - Safari
Linux - Firefox, Chrome

3d. Mobile Platforms

According to the IDC, worldwide smartphone usage is totally dominated by Android and iOS. Using
Q3 2016 figures, we are able to see that over 99% of Worldwide Smartphone usage is on the
Android and iOS platforms.12

Due to their negligible figures, Windows Phone and other OS systems are not worth developing
apps for. BandAid will focus entirely on Android and iOS platforms when developing mobile
software.

10 Deloitte Global Mobile Consumer Survey: Ireland 2016

11 http://www.magicwebsolutions.co.uk/blog/the-benefits-of-web-based-applications.htm

12 http://www.idc.com/promo/smartphone-market-share/os
4. Child Safety: Legality and Ethics
Laws that effect BandAids operations have been examined thoroughly.

BandAid are fully committed to the safety of children.

BandAid will implement a strict Data Protection policy in accordance with Irish and EU laws.

The eight Principles of the Irish Data Protection Act, 198813

1. Obtain and process information fairly
2. Keep it only for one or more specified, explicit and lawful purposes
3. Use and disclose it only in ways compatible with these purposes
4. Keep it safe and secure
5. Keep it accurate, complete and up-to-date
6. Ensure that it is adequate, relevant and not excessive
7. Retain it for no longer than is necessary for the purpose
8. Give a copy of his/her personal data to that
individual on request

BandAid have written an extensive Data

Protection Policy, available at
https://tinyurl.com/bandaidprotection

13 https://www.dataprotection.ie/docs/The-Data-Protection-Rules/21.htm
In this document, we outline the 8 principles of the Data Protection act, as well as how they relate
to children. Please see Appendix INSERT APPENDIX for the full document.

Organisation and Management

There are 4 senior members involved with BandAid.

John Reidy - BandAids creator and CEO. He initially developed the idea through a story he
read about a crche accidentally mixing up twin babies medication, combining this idea
with his knowledge in the asset management industry the idea for the company was
created.

Julian Callan - BandAids web & technology developer. He is responsible for the cloud and
maintains its operations on a daily basis. Julian also takes lead on the software team and
manages the support needed during implementation.

Darren Doyle- Member of BandAids Marketing/Sales Team. He is responsible for website

content and processing orders from the website.

Adrian Naughton Member of BandAids Marketing/Sales Team. He is responsible for the

Website content and liaising with customers in terms of their needs. Adrian is also a keen
Beer Brewer, he has won numerous awards for his creations.
Marketing and Sales
NEEDS SUBHEADINGS, too long as one section

We want to position BandAid as the leading provider of childcare software solutions. Our marketing
objective is to increase traffic to our website and lead generation by 30% and reduce cost per lead
by 20% in the first 12 months of our marketing campaign. We aim to grow our client base by 10%
this year.

Our target audience is childcare provider owners, directors, supervisors, managers and
employees, and also parents, in particular, two income professional families as the segment that
can most afford childcare and need it because of their work obligations.

Our aim is to establish an authentic, meaningful connection with both childcare providers and
parents. The key to achieving this, we believe, is in comprehending and balancing the needs of
both the provider as administrator and manager in a broad sense seeking to save time and money
and move to a more paperless system, and parents who seek security and peace of mind.

We will use a direct promotion channel, directly visiting crche facilities and childcare providers and
providing owners/managers with a demo of the BandAid system before setting up a free trial.

Based on competitor analysis BandAid will need to create a marketing campaign that drives
awareness to their brand, particularly in Ireland. Competitors have several years of experience in
the market and a significant head start in terms of establishing market presence. BandAid will
employ an SEO optimised content marketing strategy in line with best SEO practices to ensure a
strong web presence, creating consistent, fresh content and regular blog post updates in order to
drive organic traffic to the site. This content will include, for example, blog posts on the benefits of
software management solutions, videos and webinars with existing customers on the benefits of
BandAid software, and trend reports on the development of children in childcare services. We will
conduct regular audits of the traffic sources and measure our KPIs using Google Analytics. From
Website Grader tool which focuses on score-based SEO optimisation, we see that the many of our
competitor sites are not optimised for smartphones. This is something we will prioritise.

Our competitor analysis reveals a very poor use of social media platforms.

We believe that BandAid can exploit this gap through the use of an online communications strategy
that places a strong emphasis on social media marketing, particularly Facebook. For example,
when Kids Venture Early Learning Centre14 implemented a Facebook marketing strategy, they

14 https://www.facebook.com/business/success/kidz-venture
found that Facebook was the number on source of referral to their site, resulting in a 50%
conversion rate. The main advantage with social media marketing is that it is highly targeted and
interactive, meaning BandAid will be able to build relationships with potential childcare providers
and indeed parents by communicating and sharing. Using Local Awareness advertising on
Facebook, Ruby Tuesday was able to create a 2.6% week-on-week increase in sales by targeting
Facebook users within a 3-mile radius15. By using this sort of Local Awareness advertising in the
vicinity of childcare facilities, BandAid hope to replicate these sorts of increases.

As well as well as SEO optimised content we will use Pay-per-click Facebook Ads. In terms of
value for money, we believe Facebook PPC to be our best option and it is generally considerably
cheaper than Google PPC. To ensure a strong campaign we will allocate a dedicated 2-4 hours a
week plus ? Per month in ad spend. We will use Facebook Audience Insights to measure
engagement and to target new potential customers based on page profiles and demographics of
people who already like our page.

Most competitor sites do not employ active video content to promote their product; this is an aspect
we will feature prominently on our website and social media platforms. For example, Twitter cites a
14% increase in brand affinity for companies using video to promote their services16.

We will ensure consistent alignment between Facebook ads and landing page to increase our
conversion rate, obtain a higher Ad Relevance score and therefore pay less per click.

We will ensure prominent and compelling CTAs on our websites landing page to collect email
contacts for permission and email marketing campaigns with social proofs, testimonials and
reviews below the CTA. These campaigns will be largely then depend on BandAid creating
excellent content, segmenting our lists and profiles so that relevant content is sent to each,
examining our analytics in terms of open rates and click-through rates to see what is successful.
We will employ a CRM system properly maintained that will enable us to record and filter the
different profiles of our customers, their preferences and the contacts we have had with them. This
will allow BandAid to segment its customer base so we can send out specifically tailored offers that
will be relevant to those who receive it.

15 https://www.facebook.com/business/success/ruby-tuesday

16 https://blog.twitter.com/2015/new-research-five-best-practices-for-promoted-video-0
Financial Plan
Seed Capital

Initial seed capital is derived from an Ulster bank business loan for 100k payable over 5 years with
9.12% Apr. Initial infrastructure investments have been outlined for this fund including 65k set
aside for APP and website development. The remainder of the seed money will be sued as a
capital reserve to keep the business afloat until a viability point is reached. Currently this is
predicted mid-year 1 as outlined below:

Charging Model
Main revenue streams are derived from monthly SW fees as described above, the monthly fee is
based on the amount of children being tracked Bundle 1 10 bundle track 30 per month
and not by user so it is purely cloud space Bundle 2 20 bundle track - 55 per month
Bundle 3 30+ bundle track - 65 per month
rental and gets cheaper the larger bundle that Set support - 270
is tracked. The bundle size doubles in quantity Tags - 5 each (box qty of 10)

and attains a 20% reduction from bundle 1 -2

and 30% from bundle 1 -3.
Hardware- Raw material supply for hardware is sourced at a total cost of 3 per bracelet purchased
as agreed with the manufacturer with the current forecast of materials needed, this can be
renegotiated at the end of year 1 if quantities reach there forecasted sales for year 1. The selling
price of each bracelets is 5 leaving a margin of 40% per item sold.

R&D Budget
After breakeven point is reached the staff will not get a pay increase within the first 24
month period, these funds will be redirected towards R&D for software improvements
and storage space purchase. An R&D budget of approx. 5k per month is allocated
with potential for expansion and further staff allocation if the expected levels are
achieved.