Business plan developed during the Entrepreneurship course in collaboration with Anton Bolotin, Anna Serõna, Daniel Spiridonov, Giacomo Zappoli, Ilja VaŠuta, Marta Suitslepp.
The team is definitely multicultural, with members from Estonia, Italy, Germany and Russia.
9999266834 Call Girls In Noida Sector 52 (Delhi) Call Girl Service
Business Plan FoodHub Project
1. TALLINN UNIVERSITY OF TECHNOLOGY
SCHOOL OF BUSINESS AND GOVERNANCE
DEPARTMENT OF BUSINESS ADMINISTRATION
BUSINESS PLAN
Business definition: Application for restaurants’ discount
Authors:
Anton Bolotin
Anna Serõna
Daniel Spiridonov
Giacomo Zappoli
Ilja VaŠuta
Marta Suitslepp
Date of submission: 12/03/17
Tallinn
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2. TABLE OF CONTENTS
1. SUMMARY
1.1. PROJECT COST
1.2 LOAN REQUIREMENT
2. GENERAL DESCRIPTION OF ENTERPRISE
2.1. ENTERPRISE’S MISSION, VISION AND OBJECTIVES
3. ENTREPRENEURSHIP ENVIRONMENT, INDUSTRY AND COMPETITION
3.1. ENTREPRENEURSHIP ENVIROMENT
3.2. INDUSTRY ANALYSIS AND TRENDS
3.3. COMPETITION ANALYSIS
4. BUSINESS MODEL
4.1. PRODUCT SERVICE
4.1.1. NATURE OF PRODUCT/SERVICE
4.1.2. FACTORS AFFECTING THE DEMAND OF THE PRODUCT/SERVICE
4.2. CUSTOMER SEGMENTATION
5. MARKETING PLAN
5.1. MARKET DESCRIPTION AND EVALUATION
5.2. MARKET RESEARCH
5.3. POSITIONING
5.4. MARKETING
5.4.1. CHANNELS
5.4.2. ADVERTISING AND PROMOTION
5.4.3. TOTAL MARKETING COSTS
6. OPERATION PLAN
6.1. THE COMPANY’S EXPLANATIONS FOR SELECTION OF THE LOCATION
6.2. ACQUISITION OF PRODUCTION BUILDING
6.3. DESCRIPTION OF MANUFACTURING AND TECHNOLOGICAL SCHEME
6.4. PRODUCTION EFFECTS OF THE EXTERNAL ENVIRONMENT
6.5. ACCESS TO RAW MATERIALS, PRICE, POSSIBLE CHANGES
6.6. MANUFACTURING CAPACITY
6.7. EQUIPMENT NECESSARY FOR THE PRODUCTION
7. ORGANISATION AND MANAGEMENT
7.1. COMPANY’S MANAGEMENT
7.1.1. COMPANY EXECUTIVES - DESCRIPTION
7.1.2. MANAGEMENT STRUCTURE
7.2. LABOUR REQUIREMENT
8. STRATEGY
8.1. COMPANY PROCESS MAP
8.2. SWOT ANALYSIS
8.3. RISK MANAGEMENT
9. INVESTMENTS
9.1. LAUNCHING THE PROJECT
9.2. MACHINERY AND EQUIPMENT
9.3. INVESTMENT PLAN
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4. Note: All information in business plan is confidential
Company name: FoodHub
1. SUMMARY
FoodHub, established as a private limited company, is a restaurant app business with principal
offices located in Estonia and Italy. The company offers discounts providing the restaurant in a
user-friendly way for people who seek a low-priced restaurant or bar visit experience. FoodHub is
suitable for the international market consisting of individuals of all ages, from all walks of life.
FoodHub management recognizes that the company must establish concrete goals that assist
management in determining whether or not the company is achieving corporate objectives.
FoodHub chance of implementing those goals depends upon management's ability to track progress
toward goals and to measure results in conjunction with those goals. To ensure implementation of
the company's goals, management has established the following corporate objectives:
• Securing start-up funding and subsequent funding through a combination of investment and
long-debt strategies.
• Establishing marketing and sales initiatives to expand the company's app and capture 15%
of the restaurant app industry.
• Based upon market growth projections, generating very healthy sales revenues in next three
years.
FoodHub recognizes that the idea of keys to success is based upon the need for focus. To establish
itself as a leader, the company must display extraordinary competence and intelligent foresight. By
making the company's keys to success the corporate vision, management can ensure the success of
FoodHub.
Total start-up expenses for FoodHub are estimated below. To date, the majority of these expenses
have been financed by bootstrapping; however, FoodHub is seeking to secure additional first-round
funding through an equity and loan strategies that will cover the majority of the company's start-up
expenses.
Most expenses are typical start-up expenses and include, but are not limited to, the following items.
Legal (Business Incorporation Filing and Taxes)
· Business Planning/Development
· Advertising/Marketing
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5. · Research and Development
· Internet Expense
· Business Insurance (Initial Policy)
· Initial Rent
· Office Equipment
· Office Setup/Vehicles
· Web Design
· Reference Materials
· Expensed Equipment
· App creating process
· Administrative and general expenses
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7. 1.2 LOAN REQUIREMENT
Interest rate: 20%
2. GENERAL DESCRIPTION OF ENTERPRISE
• Legal form: Private limited company (OÜ)
• Date of (planned) registration: April 2018
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Years
2018 2019 2020
1. Equity € 75,000.00 € 0.00 € 0.00
2. Debt
2.1 Short-term loans € 0.00 € 0.00 € 0.00
2.2 Long-term loans € 82,310.00 € 79139.19 € 75,334.22
3. Capital Leases € 0.00 € 0.00 € 0.00
TOTAL € 157,310.00 € 79,139.19 € 75,334.22
8. • Total equity capital of that:
- monetary payments (amount): 75000 €
- non-monetary payments (list and values): 0
2.1. ENTERPRISE’S MISSION, VISION AND OBJECTIVES
Mission statement
FoodHub is a food app company dedicated to providing restaurant discounts in a user-friendly way
for people who seek a low-priced restaurant or bar visit experience. Our goal is to provide the
customer an enjoyable, honest service by satisfying customers food preferences at a better price
than usual.
Vision statement
Our Vision, quite simply, is to be: “The World’s Best Food App, Offering Discounts and Reviews,
Superior Tasting Experience at a solid price for everyone”. Being the best food app company in
Estonia and Italy does mean being the best in terms of discount diversity, customer value, customer
service, consistent and predictable growth.
Short term objectives (1 year):
• App publication
• Be in the black → optional: Gaining profit
• Growth and expansion → Growth of the company (restaurants offers, number of users)
• Expanding the overall management of the company
• 250.000+ downloads
Name Type of share, value No of shares
subscribed
Contributi
ons
Marta Suitslepp 16.67% 1 12,500
Anna Serõna 16.67% 1 12,500
Ilja Vashuta 16.67% 1 12,500
Anton Bolotin 16.67% 1 12,500
Giacomo Zappoli 16.67% 1 12,500
Daniel Spiridonov 16.67% 1 12,500
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9. Long term objectives (2-3 years):
• Increase personal wealth → increase of the financial situation of the founders
• Improving the life of the employees
• To create a company with a familiar atmosphere
• Our company will increase its market share in Italy and Estonia by 20%
• 500.000+ downloads
3. ENTREPRENEURSHIP ENVIRONMENT, INDUSTRY AND COMPETITION
3.1. ENTREPRENEURSHIP ENVIRONMENT
3.2. INDUSTRY ANALYSIS AND TRENDS
The Italian market is characterized by more than 150,000 restaurants. This market is growing every
year and every day more than 30 restaurants are opened since 2012. The growth rate is around 10%
which is increasing every year. The value of this entire economy is 85 billion €, considering both
Political Economic Social Technological
tax policies (-) economic growth
(+)
population
growth rate (+)
life cycle of current
technology (-)
employment laws
(-)
interest and
exchange rates (+)
age distribution
(+)
role of the internet
(+)
trade regulations
and tariffs (-)
economic stability
(+)
career attitudes
(+)
technological growth
(+)
political stability
(-)
labour market
policies (-)
R&D funding (+)
international
conflicts (-)
inflation rates (-) automation (+)
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10. private and companies, and it is one of the most important market in Europe, the third one in
absolute value. That is one of the reasons why this market was chosen as the first target. In
particular, our focus will be on the restaurants at an early stage. Considering that every year more
than ten thousand restaurants usually open, and bearing in mind our interviews, we think that we
can at least expect 1/3 of this commercial activity can be related to our business. From the statistics
emerges that only 52 restaurants of 100 survive for more than 5 years, that could be a negative sign
for the economy but at the same time we can use that in our favour because there’ll be always
demand from the restaurants for higher visibility and more clients.
Since 2009 Estonia has a constant increase of restaurant and mobile food services. In terms of
revenue. In 2016, the restaurants and food services have reached a revenue of approximately 491,8
million U.S. dollars. The growth rate of tourism in 2016 was about seven percent more than in
2015. 3,32 million foreign and domestic tourists stayed overnight in the accommodation
establishments of Estonia. Furthermore, Estonia offers diverse possibilities of international and
gourmet food. New restaurants pop up regularly in local towns and seaside villages. For this reason,
the diversity of different cuisines and the steady growth of tourism offer us optimum conditions for
a smooth implementation of FoodHub.
Since there is very small amount of barriers to entry and capital requirements, there is high
probability that in the nearest future new firms who offer identical or alternative product will be
introduced, which can negatively influence market share and profitability. Despite the possible
substitute products, the perceived level of product differentiation, product innovation and unique
features will help our product to stay competitive, even if the number of companies in the industry
will be increasing. One of the possible challenges is the bargaining power of customers: the ability
of customers to put the firm under pressure, which also affects the customer's sensitivity to price
changes. Another aspect is the bargaining power of partners, who may refuse working due to high
fees.
3.3. COMPETITION ANALYSIS
1. DIRECT COMPETITORS
• The Fork ( Google Play: 4 stars - 30.469 reviews/ Apple Store: 4.7 stars - 118 reviews):
TheFork offers more than 30,000 restaurants available at any time, at the best price, in France,
Spain, Switzerland, Belgium, Italy, Sweden, and more! With over 5 million reliable reviews to
guide you, you will definitely find the perfect restaurant.
Advantages: special offers up to 50%, booking without a phone call, founded by TripAdvisor (big
network)
Disadvantages: technical problems with booking -> you cannot trust the reservation system, bad
reviews on social media.
• EasyDinner (Google Play: 3.8 stars - 304 reviews / Not on Apple Store ):
An Italian app which everyday suggests offers and promotions in locals.
Advantages: only Italian app for discounts, high discounts, easy to use
Disadvantages: works only in Rome, few restaurants associated, bad reviews on the store,
presence of bug, no Asian restaurants, works only in Rome, latest update 2015
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11. 2. INDIRECT COMPETITORS
• Zomato (Google play: 4 stars - 275.109 reviews / Apple Store: 4.5 stars - 134 reviews)
A restaurant search and discovery app, providing in-depth information for over 1 million
restaurants across 23 countries. Zomato is used by consumers globally to discover, rate, and
review restaurants, as well as create their own personal networks of fellow food enthusiasts for
trusted recommendations.
Advantages: easy interface/easy to use, large community, leader in different countries
Disadvantages: limited variation of countries regarding restaurants, too much permissions
• Wolt (Google play: 4 stars - 1848 reviews / Apple Store: Not enough ratings)
“Wolt is the one app for discovering and getting great food in your city. Find the best restaurants
in town, send your order with a couple clicks only”
Advantages: convenient app, big variety of restaurants, easy to make an order, in general it comes
on time
Disadvantages: Sometimes can take much time to be delivered, only in 2 countries available now,
sometimes the food comes not in a way you ordered it (for ex. a deliverer dropped it or ate
something from it and so on)
• JustEat: (Google play: 4 stars - 27.039 reviews / Apple Store: 4.4 stars - 201 reviews)
An App which provides a service of delivery between the restaurants and the clients. It’s settted
in London but it works in 13 different countries.
Advantages: Colorful page, easy to use
Disadvantages: Rude agents, not good restaurants, late food, problem with orders, wrong orders,
cold food, uncomfortable services for connecting with a deliverer.
• Foodora: (Google play: 3.7 stars - 8180 reviews / Apple Store: 4 stars - 463 reviews):
Is a Berlin-based online food delivery company which offers meals from over 9,000 selected
restaurants in 10 countries worldwide. Using the Foodora app, website or the corporate platform,
customers can browse local restaurants, place an order, and track it as it’s prepared and delivered
by a bike courier or delivery driver.
Disadvantages: delivery service is not reliable (order is not complete), insufficient customer
support, delivery takes too long, payment process by phone does not work properly, sometimes it
can be happen that the app crashes, high amount of bad reviews (bad reputation)
• Deliveroo: (Google play: 4 stars - 27032 reviews / Apple Store: 5 stars - 8551 reviews):
Deliveroo is a British online food delivery company with operations spread across eighty-four
cities in the UK, the Netherlands, France, Germany, Belgium, Ireland, Spain, Italy, Australia,
Singapore, United Arab Emirates, and Hong Kong. Orders are placed through its website and then
either employed or self-employed bicycle, motorcycle or car couriers transport orders from
restaurants to customers.
Advantages: great customer service, reliable, fast, amazing app and top restaurants, easy to use
app interface.
Disadvantages: many bad comments, sometimes the food appears cold, the driver is not
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12. professional with the customers, the problem with location, sometimes technical problems with
the app
3. POTENTIAL COMPETITORS
• Foodguide (Google play: 2 stars - 292 reviews / Apple Store: Not enough):
A German App which gives you suggestions about good restaurants in your city. The app is just
in Germany useful but the growth of the company is steady.
Advantages: high amount of follower on social media platforms (Instagram), easy to use
Disadvantages: technical problems (error notifications), bad reviews
• Tripadvisor (Google play: 4.4 stars - 1,082,160 reviews / Apple Store: 4 stars - 57000 reviews):
An American travel website company providing hotel bookings as well as reviews of travel-
related content. It also includes interactive travel forums.
Advantages: compact travel guide for different occasions (food, hotel, sightseeing etc.), big
network of people who are using this app (plenty of reviews for different restaurants), 4.9 Mio.
follower on Facebook, service is available everywhere,
Disadvantages: Sometimes technical problems, reviews of the restaurants could be faked
• Eatigo (Google Play: 4.4 stars - 15.207 reviews / Apple Store: 4.3 stars - 161 reviews):
Is Thailand's leading dining deal and online restaurant reservation portal offering real-time deals
of up to 50% off the whole food bill for every restaurant.
Advantages: Up to 50% discounts, Opportunity to select the number of people with whom you
want to visit the restaurant, easy to use
Disadvantages: just available in Asia (Singapore, Thailand), number of restaurants should be
higher (variety), not a large community in Europe/US
• Offpeak (Google play: 3.5 stars - 588 reviwes / Apple Store: Not enough ratings):
Offers food, beverage and dining discounts at some of the Best Restaurants in Malaysia,
Singapore, Thailand & Vietnam. Get the best dining discounts and save up to 50% at top
restaurants in town on your daily dining.
Disadvantage: not really popular in the Apple Appstore, more than 120 bad reviews
• Foodeal ( Google Play: 4.2 stars / Not on Apple Store): Here’s your new restaurant promos
finder! Unlike other restaurant and coupon apps, Foodeal is the only restaurant app in the
Philippines that let’s you search all restaurant promos nearby or at any restaurant where you’re
planning to eat in the Metro.
Advantages: it is the only restaurant app in the Philippines that let’s you search all restaurant
promos nearby, provide discounts for clients, discovers today’s best food deals.
Disadvantages: Small market, mainly asian kitchen
• Booky ( Google Play: 3.8 stars - Apple store: 4 stars - 120 reviwes) : The #1 food app in the
Philippines. Booky lets you search restaurants OFFLINE (no internet needed) and helps you save
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13. a ton of money. + Book the table and get the discount
Advantages: you can search 13,000 restaurants and over 9000 menus covering Metro Manila,
Tagaytay and Baguio, beneficial offers, you can find restaurants offline, convenient website and
app.
Disadvantages: not so popular among people, asian food mainly
• EazyDiner ( Google Play: 4.3 stars - 811 reviews / Apple Store: 4 stars - 55 reviews):
“EazyDiner is your one-stop-shop for instant table bookings & a convenient dining experience. It
is an online reservation app that offers exciting & exclusive deals with every single reservation
along with being a complete curated guide to discovering the newest & hottest places to eat &
drink”
Advantages: convenient app, provides information about newest food and drinks in the
restaurants, pubs, cafes, variety of food, collaboration with TripAdvisor.
Disadvantages: no discounts provided or any special offers, asian market
• Biglion (Google Play: 4.7 stars - 58000 reviews / Apple Store: not enough reviews):
A Russian app which provides discounts for different occasions. (Children, Health, Concerts,
Cars, Fitness, Leisure activities)
Advantages: high discounts and coupons,, easy to use, different offers, works with different
services
Disadvantages: mostly for Russians, specifies mainly on travelling, sometimes people can be
fooled, rare response on the complaint
• BigDish (Google Play: 4.4 stars/ Apple Store: 5 stars - 36 reviews ): Restaurant reservations
with hourly discounts of up to 50%. 100% free to use with no credit card needed. It’s simple to
use: search, book & enjoy! Want to dine at restaurants nearby and get unlimited food discounts?
Our restaurant app lets you have a great dining experience at 100s of restaurants from across
Manila, Hong Kong and Jakarta.”
Advantages: Up to 50% discount (huge discounts), The app is available in 3 languages,
convenient, No need for print-out coupons
Disadvantages: not a huge variety of different restaurants.
of13 43
15. 4.1. PRODUCT/SERVICE
Service: an app called “FoodHub”
4.1.1. NATURE OF PRODUCT/SERVICE
The app provides different discounts for customers in the restaurants. The app determines your
location when a customer turns it on. After, the app provides information about restaurants which
are nearby the customer. The customer can choose a restaurant he/she likes and and check the
information. The information contains address of restaurants, mails, phone number, rating,
customers reviews, photos, working hours, places available and different discounts for booking.
The discounts are dependable on numbers of people which are coming. In addition, the app allows
customers to book places at any time.
Moreover, our app provides coupons after some attendings or some usage of our app. The coupons
will provide an additional discount or will allow to eat for free for small amount (5-10 euros).
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16. 4.1.2. FACTORS AFFECTING THE DEMAND OF THE PRODUCT/SERVICE
4.2. CUSTOMER SEGMENTATION
Who are they?
Our customers are people of the age of 18 and above. The people can be men and women. It can be
a student, employed person, self-employed person, families. Our app will be specified on European
market, but firstly on Estonian and Italian market, but the app can be used by people of different
nationalities as we know there are a lot of people living in Europe from different not european
countries. So, as we will be partners with restaurants which provide different kind of food,
atmosphere, opportunities then it will help us to find a good place for everyone in our market.
Factors influencing demand Direction of
impact
(+/-)
Unit of
measure
Information source
1. Rising Internet Connection Coverage +
Percentage of
internet
growth
http://
www.businessinsider.com/
the-on-demand-
economy-2014-7
1. Rising Smartphone users +
Percentage of
smartphone
users growth
http://
www.business2community
.com/mobile-apps/2017-
mobile-app-market-
statistics-trends-
analysis-01750346#4kTg
YPTAcd6blXKL.97
2. Rising salaries +
Percentage of
salaries
growth (price
index)
https://www.tutor2u.net/
business/blog/qa-what-
factors-affect-the-demand-
for-a-product
4. Number of restaurants, partners +
Percentage of
restaurants
growth
http://
www.economicsdiscussion
.net/essays/economics/6-
important-factors-that-
influence-the-demand-of-
goods/926
5. Good environment for entrepreneurs +
Index of
techology
development
of a country,
percentage of
internet users
https://www.quora.com/
Which-factors-affect-
demand-and-supply-the-
most
6. Rising of population +
Percentage of
population
grow
https://
www.slideshare.net/
Geckos/factors-affecting-
demand-presentation
7. Number of consumers in the market
+
Percentage of
consumers in
the market
http://www.econport.org/
content/handbook/
Demand/Factors.html
8. Rising of the food price -
Percentage of
price grow for
food
https://
www.economicshelp.org/
microessays/equilibrium/
demand/
9. Rising of Competitors -
Percentage of
competitors
grow
http://
www.wikinvest.com/
stock/Home_Depot_(HD)/
Increased_Competition_A
dversely_Affect_Prices_D
emand_Products_Services
of16 43
17. Why these people?
Many people go to eat to restaurants everyday or spend time with families, friends in restaurants,
bars, pubs or even to celebrate a holiday, etc.
4.3. REVENUE
The revenue source: fixed monthly payments in percentage from our partners (restaurants) for
using/connecting the app.
5. MARKETING PLAN
5.1. MARKET DESCRIPTION AND EVALUATION
Customers of FoodHub are the individuals of different ages/ communities/ locations who want to
visit restaurants and cafe on beneficial prices. Ours a target group - solvent people who like to
spend free time with the maximum comfort.
According to our research, the main clients are students, self-employed or employed for wages,
family and people who eat out with friends. Conditionally we divided them into two castes: students
and weekend customers. These are the people preferring pizzerias and restaurants (medium/high
level) and capable to look for the best options for a dinner by means of the Internet.
of17 43
18. The potential market for us are tourists. As our application covers two markets (Estonia and Italy.
about 50,000 restaurants), would be desirable for us that tourists used it in these countries and
provided word of mouth advertizing in own ones. For gaining the potential market we developed
strategy according to which we will use social networks and advertizing in various applications for
travel.
5.2. MARKET RESEARCH
Our intention is to launch this app first of all in the Estonian and Italian market. We’ve chosen this
market for two reasons:
1. The Estonian is one of the most hi-tech country in Europe, so a lot of people are used to use their
smartphones. Furthermore, half of the team is from Estonia, so we know very well the Estonian
restaurant scenario.
2. The Italian have the habit to go out to have lunch and dinner very often, more than other
countries, hence will be the perfect target group for our app. Also one member of the team is from
Italy, so we have experience in that market;
In particular, the Italian market is characterised by more than 150,000 restaurants. This market is
growing every year and every day more than 30 restaurants open, since 2012. The growth rate is
around 10% and it is increasing every year. The value of this entire economy is 85 billion €,
considering both private and companies, and it is one of the most important market in Europe,
actually the third one in absolute value. That is one of the reasons why we have chosen this market
as our first target. In particular, our focus will be on the restaurants at an early stage (as results from
our interview). Considering that every year more than ten thousand restaurants usually open, and
bearing in mind our interviews, we think that we can at least expect 1/3 of this commercial activity
can be 16 of 17 related to our app. Furthermore, if you consider that there are more than four
restaurants per capita in Italy, the need of be different and visibility could be particular high. From
the statistic emerges that only 52 restaurants of 100 survive for more than 5 years, that could be a
negative sign for the economy but at the same time we can use that in our favor because there’ll be
always demand from the restaurants for more clients and visibility.
Since 2009 Estonia has a constant increase of restaurant and mobile food services regarding
revenue. In 2016, the restaurants and food services have reached a revenue of approximately 491,8
million U.S. dollars. The growth rate of tourism in 2016 was about seven percent more than in
of18 43
19. 2015. 3,32 million foreign and domestic tourists stayed overnight in the accommodation
establishments of Estonia. Furthermore, Estonia offers diverse possibilities of international and
gourmet food. New restaurants pop up regularly in local towns and seaside villages. For this reason,
the diversity of different cuisines and the steady growth of tourism offer us optimum conditions for
a smooth implementation of FoodHub.
5.3. POSITIONING
Key to the competitive analysis is an opportunity to completely understand the competition and any
gaps between a line item of FoodHub and competitors through an innovation and pricing. The
perceptual card gives a good idea of what positions in the market are taken by direct competitors
and our company. For example, EasyDinner has the affordable prices (paid content from €4,92 to
29,51). However if to consider this application from the point of view of availability, then we see a
clear shortcoming. The problem is not that the application works faulty, and that there are
competitors with larger market coverage.
As for TheFork, in this case the application is compatible to all devices that gives it an indisputable
benefit. Pricing is also available to people with average earnings that does it even more popular.
of19 43
20. As for FoodHub, we dare to assume that this application is capable to cover much larger segment of
the market than TheFork. At the moment we expect the whole market in Italy and Estonia, but not
on the certain cities. Taking into account all features of our competitors, we dare to assume that in
the pricing plan we could correspond to TheFork.
FoodHub uses differentiated targeting strategy its makes sure that it provides algorithmically
individualised offerings meant for the specific person based on the way he/she operates their
accounts and where he/she is located.
It uses value-based positioning strategy and believes in engaging people so that people could spend
free time with pleasure and advantage.
5.4. MARKETING
At FoodHub, our aim is to create value that can be sustained over the long term by offering
consumers a wide variety of restaurants with a good discounts, and offer the restaurants the solvent
clients.
The way we market our service is equally important. While we believe that consumer
communication such as advertising helps consumers exercise an informed choice, we also believe
its practice must follow certain principles to ensure we gain and maintain consumers’ trust in our
company.
Consumer communication is a two-way matter. The increasing importance of internet and digital
media, such as social networks and mobile communication, has changed forever the way to engage
with consumers. In this context, FoodHub must demonstrate a responsible and careful management
of our consumer communication, both at brand and corporate level. Our company keep learning and
enters a basis of it is getting feedback from people in real time. We use reporting tools to learn
about our clents and places they find more interesting.
of20 43
21. 5.4.1. CHANNELS
This table might be used only for FoodHub situation
Internet Marketing Channels
Email Marketing:
• The process of collecting email addresses from potential leads and marketing to them via email
messages
• Examples: Email newsletters, brand building emails, conversion-focused emails, etc.
Online Public Relation:
• The process of generating media from primarily online outlets in order to earn branding and
traffic
• Examples: PRNewswire, PRWeb, Internet media focused PR agency work, etc.
Search Engine Optimization (SEO)
• The process of earning rankings in the "organic" results of the major search engines
(Google, Yahoo!, Bing)
• Examples: Keyword research, on-page optimization, link building, etc.
Social Media Marketing (SMM)
• The process of leveraging social media platforms (small and large) to earn visibility and
traffic
• Examples: Facebook Group pages, Twitter marketing, pushing content on Digg, etc.
Conversion Rate Optimization (CRO)
Marketing Channel Average ROI Average Effort Average Cost
Conversion rate
optimization
high high mid
SEO high high mid
SMM mid high mid
Email marketing high mid mid
Online public
relations
low mid mid
of21 43
22. • The process of improving the path from landing to conversion to get more leads/signups/
customers
• Examples: Split & multivariate testing, click-through-rate improvements, purchase-process
simplification, etc.
5.4.2. ADVERTISING AND SALES PROMOTION
FoodHub seeks out restaurants that are nearby or share attraction’s audience. Offer to include a
special offer from them on receipts or on signage at customers attraction. And partner restaurants
could offer special packages to guests that include admission to customer`s attraction.Such
cooperation provides world mouth advertizing to both parties.
Direct: App Store,Google Play
Viral channels:
YouTube- 0.10-0.30$/view
https://www.youtube.com/yt/advertise/
Google Ads- starting price for click 1$ https://support.google.com/adwords/answer/14074?hl=eng
Facebook- For Estonia and Italy 0.23$/click
https://www.facebook.com/business/learn/how-much-facebook-ads-cost
Instagram -SMM(salary) Photo Ads -0.20$ per one showing (1.500 accounts)
https://business.instagram.com/advertising
flyers in restaurants- about 40$/100pcs
http://mprint.ee/reklaamtrukk/trukised/flaierid-plakatid/
TripAdvisor- from 0.50$ -1.50$/click
https://www.tripadvisor.com/TripAdvisorInsights/t639/topic/cost-click-campaigns
5.4.3. TOTAL MARKETING COSTS
Type of cost price volume Sum for
month
Online advertising 2.33 2.000 4.660
flyers & brochures 2.5 1000 2.500
promotional items 500 1 package 500
partner marketing 1000 1 1000
direct marketing 2000 1 2000
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23. 6. OPERATION PLAN
6.1. THE COMPANY'S EXPLANATION FOR SELECTION OF THE LOCATION
The company will be settled in Estonia, in particular in Tallinn, for two different reasons:
1) in Estonia it’s easy and cheap to establish and run a company thanks to a fast bureaucracy;
2) all the team is living in Estonia
Estonia is famous for its IT growth in the last few years, for this reason, can be easier to find a
developer for our platform and will be easier for them to reach our company’s office. For the
location of our first office, we don’t need an expensive office in a skyscraper, for this reason, the
office will be set close to the Tallinn University of Technology, in Mustamäe. In this way, we can
save some money from the renting of the office and invest them to make a better platform.
Furthermore, the closeness to the University can be used to be known among the students and the
one interested in our company can easily access our office to talk with us. One problem for this
location can be that is not so easy to reach it if you’re living in the city centre because it can take
more than 40 minutes with public transportations if there’s traffic. The customer service will be
divided into two groups: one for the Estonian market and one for the Italian market. Our intention is
to enter the Italian market, for this reason, another office will be set in Italy. The office will be set
close to Bologna, an Italian city with more than 500 thousand habitants. Thanks to the closeness to
Bologna, it’ll be easy to find people that can work in our office and handle the customer service.
Another reason for the choice of an office in that city is that one of the members of our team usually
lives there, in this way he can manage the customer service in Italy and provide a good service. The
main problem of this choice is that the office rent will be quite high, indeed the average price for an
office of 150 square meters is over one thousand euros. Another problem related to the office in
Italy is due to the higher salary that workers ask, compared to the Estonian ones.
6.2. ACQUISITION OF PRODUCTION BUILDING
To start our business we need two premises, one in Estonia and one in Italy.
The premise in Estonia is a rented flat in Mustamäe because it’s cheaper to rent a flat instead of an
office and also it’s too expensive to buy a new one. The locations' choice is due to the cheaper price
of that district compared to the ones closer to the city centre. The price is about €300 each month
(from www.city24.ee) for a flat where 4/5 people can work (around 90 square meters). We’ll
transform each room in an office, by moving in a desk, a computer and a chair, so that everyone can
work in this place.
The other office will be in Italy, and in particular in Bologna. The place chosen is 30 minutes by car
from the city centre, because it’s cheaper to rent a place, not in the city centre. This office will be
used by Italian workers for the customer service. The flats’ price in Italy usually are higher than in
Estonia, that’s the reason why the lease for this flat will be around €500 (http://www.casa.it/
immobile-appartamento-emilia-romagna-ozzano%20dell'emilia-33858794).
6.3. DESCRIPTION OF MANUFACTURING AND TECHNOLOGICAL SCHEME
6.4. PRODUCTION EFFECTS OF THE EXTERNAL ENVIRONMENT
Our company will not produce any waste because we’re providing a service in an App online,
consequently, there isn’t a production process.
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24. 6.5. ACCESS TO RAW MATERIALS, PRICE, POSSIBLE CHANGES
Our company will provide a service in an App online, due to this fact we don’t need any kind of raw
material.
6.6. MANUFACTURING CAPACITY
At the beginning, and probably for the first few years, our App will not meet any limit on the
number of clients and restaurants. If in the future the number of users will tremendously increase,
we’ll have a huge increase in the information collected that can be translated in an increase of our
database. If the database will reach 1 Terabyte, we’ll need to increase the storage available for the
App and for this reason, we’ll upgrade our cloud storage plan.
6.7. EQUIPMENT NECESSARY FOR THE PRODUCTION
First of all, we need to develop our App. To estimate the cost of our App I’ve used this website
(http://howmuchtomakeanapp.com/estimates/results) and at it’ll be around €75.000.
We need computers to start our business in Estonia. This computer will be bought new and we
estimate to buy each one for around €200 (https://www.wmepoint.com/shop/051/pc-assemblati-
amd-a-series/5883-pc-assemblato-desktop-completo-amd-a-series-dual-core-ram-4gb-hard-disk-
hd-500gb-offerta-l7ama4x24500.html). This asset will be used by our founders to start the business.
The computers are necessary for the accounting, customer service, customer research, market
analysis, partnership research, etc.
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25. Regarding the Italian office, we estimate that we need four computers to start because there’ll not
be more than four workers at the same time in that office. The price of them will be the same of the
first ones, around €200 for each one. (https://www.wmepoint.com/shop/051/pc-assemblati-amd-a-
series/5883-pc-assemblato-desktop-completo-amd-a-series-dual-core-ram-4gb-hard-disk-hd-500gb-
offerta-l7ama4x24500.html).
In every office, there’ll be also a personal phone for each employee and we estimate that the cost
will be €75 per month for each smartphone (https://www.verizonwireless.com/support/single-line-
plan-faqs/). The total number of smartphones will be four, only for the employees in Italy. These
smartphones are necessary to help the customers if they have some issues with our platform. The
funders have already their own phone and they can use that also to work, this is why the company
will not provide to them a new phone.
Other key assets for the office will be:
- 10 desks, €80 each one (http://www.ikea.com/it/it/catalog/products/90214308/)
- 10 chairs, €45 each one (http://www.ikea.com/it/it/catalog/products/20339420/)
We also need a Wi-Fi router for each office:
- Estonia, router + 150 mb/s connection, €25 per each month (https://www.telia.ee/en/ari/kontor/
paketid
- Italy, router + 300 mb/s connection + fixed phone office, €30 per each month (http://
w w w. v o d a f o n e . i t / p o r t a l / A z i e n d e / P a r t i t a - I VA / R e t e - F i s s a / S o l u z i o n i / R e d ?
icmp=BZ_HP_richiesti_1)
To keep the data that we collect from the App we need a Cloud Storage and the price at beginning
will be €9.99 each month for 1 TB. If the need of storage will increase we’ll subscribe the plan for
10TB per month ( €99,99). (https://www.google.com/drive/pricing/ )
6.8. THE COMPANY'S ASSET INSURANCE
The company can run several risks, even it doesn’t own the offices but they’re only rented. For this
reason, the best way to be safe from this risks is to underwrite an insurance All Risks. It might be
expensive at the beginning, but at least we know that we’ll be safe in each condition. In particular,
at the beginning, a little damage to our property can determine the death of the company.
By underwriting the insurance with an Italian company, the guarantees will be:
- company civil liability;
- indirect damages (interruption of the service)
- theft and robbery
Source: https://www.axa.it/all-risk-aziende
The insurance rate cannot be determined right now because the insurance company should view the
company’s asset to understand what are the potential risks.
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26. 7. ORGANISATION AND MANAGEMENT
7.1. COMPANY’S MANAGEMENT
7.1.1. COMPANY EXECUTIVES - DESCRIPTION
The distribution of responsibilities is based on personal abilities and previous experience related to
the field. Below is the description of strengths and competencies of company’s executives.
Position: Chief Executive Officer
Employee has an experience in developing profitable strategies and implementing vision,
understands corporate finance and performance management principles, is aware of different
operating areas (marketing, PR, finance etc.), has an entrepreneurial mindset with outstanding
organizational and leadership skills, analytical abilities and problem-solving skills, and excellent
communication and public speaking skills.
Position: Project Manager
Employee has a technical background with understanding of software development and web
technologies, has a high level of written and verbal communication skills, as well as organizational
skills including attention to detail and multitasking skills.
Position: Business Analyst
Employee is experienced in analysing data, is able to draw business-relevant conclusions and use
data visualization techniques and tools, has strong written and verbal communication skills
including technical writing skills.
Name Position Area of responsibility Monthly
salary
Giacomo
Zappoli
Chief
Executive
Officer
Creating, communicating and implementing the organization's vision,
mission, and overall direction, formulating and implementing the
strategic plan, leading the development and implementation of the
overall organization's strategy, leading, guiding, directing, and
evaluating the work of other executive leaders, evaluating the success
of the organization in reaching its goals, maintaining awareness of
both the external and the internal competitive landscape, opportunities
for expansion, customers, markets, new industry developments and
standards
€1
Marta
Suitslepp
Project
Manager
Coordinating internal resources and third parties for the execution of
projects, developing project scopes and objectives, measuring project
performance using appropriate systems, tools and techniques, perform
risk management to minimize project risks
€1
Anton
Bolotin
Business
Analyst
Interacting with business community, identifying opportunities for
improvement to processes and business operations, analysing a
customer's needs, gathering and documenting requirements and
creating a project plan to design the resulting technology solution
€1
Daniel
Spiridonov
Software
Development
Manager
Prioritizing, planning and tracking project progress, researching
product development options, consulting with internal departments,
evaluating subordinate performance, setting expectations and goals
for department
€1
Anna
Serõna
Sales Manager
Building long-lasting customer relationships, execution of sales
targets, phone calls, meetings, conferences and drafting proposals
€1
Ilja Vašuta
Customer
Service
Manager
Improving customer service experience, creating engaged customers
and facilitate organic growth, recruiting, mentoring and developing
customer service agents
€1
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27. Position: Software Development Manager
Employee has strong technical and analytical skills, has knowledge of computer software
languages, platforms, and current methodologies, strong in such areas as budgeting, leadership, and
managerial abilities: ability to hire, train, and evaluate staff.
Position: Sales Manager
Employee is able to measure and analyze key performance indicators on a high level, is familiar
with CRM software, has good communication and strong organizational skills with a problem-
solving attitude.
Position: Customer Service Manager
Employee has a previous experience in providing customer service support, has excellent
knowledge of management methods and techniques along with customer service software,
databases and tools, also aware of industry’s latest technology trends and applications, has strong
client-facing and communication skills, and proficient in English.
7.1.2. MANAGEMENT STRUCTURE
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28. 7.2. LABOUR REQUIREMENT
EMPLOYEES’AVAILABILITY IN THE REGION, POSSIBLE CHANGES IN THE
LABOUR MARKET, THE LABOUR PRICE CHANGE FORECAST
The employment level in Italy is gradually increasing, along with moderate growth in gross
domestic product, amount of employees involved into service sector is growing. The labour market
continued to experience a year-on-year increase in participation linked to the higher number of
workers and jobseekers, which will have a positive impact on employees’ availability in the region.
The levels of salary for the were set based on the position averages in Italy, lower values were taken
Position Labour requirement
(no of people)
Staff cost
(per
month)
Staff cost (per
year)
2018 2019 2020 2018 2019 2020 2020 2019 2020
Chief
Executive
Officer
1 1 1 €0 €400 €400 €1000 €1500 €1500
Project
Manager
1 1 1 €0 €400 €1650 €1500 €1500 €1500
Business
Analyst
1 1 1 €0 €400 €1500 €1500 €1500 €1500
Software
Developm
ent
Manager
1 1 1 €0 €400 €1300 €1500 €1500 €1500
Sales
Manager
1 1 1 €0 €400 €1250 €1500 €1500 €1500
Customer
Service
Manager
1 1 1 €0 €400 €1250 €1500 €1500 €1500
Software
Engineer
0 2 2 €0 €1500 €1500 €1500 €1800 €1800
Web
Designer
0 1 1 €0 €750 €850 €1000 €1000 €1000
Test
Analyst
0 1 1 €0 €750 €850 €850 €850 €1000
Systems
Analyst
0 1 1 €0 €850 €950 €950 €950 €1000
Network
Engineer
0 1 1 €0 €1000 €1150 €1150 €1150 €1300
Helpdesk
Support
0 2 4 €0 €1300 €1300 €1300 €1500 €1500
Technical
Consultant
0 1 2 €0 €900 €1000 €1150 €1150 €1150
Marketing
Manager
0 1 2 €0 €1000 €1300 €1500 €1800 €2000
TOTAL 6 16 20 €0 €10450 €16250 €17900 €19200 €19750
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29. as a base. At the beginning of the company the salaries will be zero for the first year, after that the
normal employees will be paid while the funders will receive a lower salary to contain the cost. The
salary will be then stable after two years and will only increase if the company will earn more
customers.
Source: www.payscale.com
EMPLOYEE TRAINING AND MOTIVATION PLAN
• Committees
Staff from different areas of the organization will enhance learning by allowing members
to see issues from different perspectives.
• Conferences and forums
Employees can attend conferences that focus on topics of relevance to their position and
the organization.
• Job aids
Tools can be given to employees to help them perform their jobs better. These tools
include: manuals, checklists, phone lists, procedural guidelines, decision guidelines and so
forth.
• Job expanding
Once an employee has mastered the requirements of his or her job and is performing
satisfactorily, s/he may want greater challenges and our company will provide such
opportunities.
• Job rotation
On a temporary basis, employees can be given the opportunity to work in a different area
of the organization.
• Peer-assisted learning
Two employees agree to help each other learn different tasks. Both employees should have
an area of expertise that the co-worker can benefit from.
• Special projects
Give an employee an opportunity to work on a project that is normally outside his or her
job duties.
• Coaching
The prearranged agreement between an experienced manager and his or her employee. The
role of the coach is to demonstrate skills and to give the employee guidance, feedback, and
reassurance while s/he practices the new skill.
• Courses, seminars, workshops
These are formal training opportunities that can be offered to employees either internally
or externally. A trainer, facilitator and/or subject matter expert can be brought into the
organization to provide the training session or an employee can be sent to one of these
learning opportunities during work time.
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30. 8. STRATEGY
8.1. COMPANIES PROCESS MAP
8.2. SWOT ANALYSIS
Explaining our strengths:
1. Italian member: He knows the italian market because he is in touch with different
restaurant owners. Moreover, he gathered a lot of experience in the gastronomic business
over the years.
2. Hi-tech: FoodHub meets the latest technological standards what make the operation of the
app especially easy.
3. User-friendly: Our app has an user interface which is easy to use for everyone.
4. Easy to apply: Our app is going to be easy in usage for customers
5. Marketing knowledge: All of us have good marketing background to enlarge the publicity
of FoodHub and reach a large community
Strengths Weaknesses
Italian team member
Hi-tech
User-friendly
Easy to apply
Marketing knowledge
Low require of capital
No experience with app creating process
Difficulty to reach large community
Newbie in building businesses
Search of developers
Opportunities Threats
Growing markets
Lack of direct competitors
Lifestyle trends
Increasing smartphone users
Religions
People might not to use our platform
Restaurants might not to cooperate
Competitors/Apps with similar business
ideas
Low possibilities of capital
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31. 7. Low require of capital: For creating and developing the app we do not need to much
capital. Mainly computers, money and internet
Explaining our weaknesses:
1. No experience with app creating process: Our team consists of people who have not
knowledge about IT. We have to outsource our app development.
2. Difficulty to reach large community: Hard to establish a foothold as a startup in the social
media world. Additionally, we do not have a lot of capital for public advertising.
3. Newbie in building businesses: Team of students who have no experience in building a
business. To some extent we are undecided because we have not enough self-confidence due
to lack of experience.
4. Search of developers: The process of finding a competent developer for our app is really
important because our whole business idea is based on the app which has to be better than
the existing apps. Unfortunately, we are rely on people out of our team due to lack of
experience in app creating.
Explaining our opportunities:
1. Growing markets: growth rate of restaurants in Italy is 10%
2. Lack of direct competitors: a lot of markets at the moment are not covered by any
competitors
3. Lifestyle trends: the Italians/Spanish are used to go out to eat/drink; english people go out
for beers at pubs;
4. Religions: during festivity there could be an increase of App users because they’re going to
eat in restaurants.
Explaining our threats:
1. People might not to use our platform: Customers have other platforms to use to book
restaurants
2. Restaurants might not to cooperate: restaurants with large client bases don’t have the need
to use the platform and some restaurants don’t want to offer discounts or benefits for groups
3. Competitors/Apps with similar business ideas: similar apps are already in the app stores,
so we have to share the market with companies which are providing related apps
4. Low possibilities of capital: We are a young team which only consist of students with few
cash deposit
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32. 8.3. RISK MANAGEMENT
Evaluate risks for business. How to minimize the weaknesses and threats (Can we do something to
minimize these risks?)
Weaknesses:
1. No experience with app creating process: Gathering experience by meeting IT-experts/app
publisher
2. Difficulty to reach large community: Intensive marketing on all social media platforms
3. Newbie in building businesses: Seeking for advices by people who have already managed
to build a business successfully
4. Search of developers: Building a good network of skilled developers by attending IT fairs
and doing social networking with well-known app experts
Threats:
1. People might not to use our platform: Through intensive marketing we can lower the risk
of non-use
2. Restaurants might not to cooperate: We have a young, dynamic team with a great power
of persuasion and a competitive advantage since our concept and implementation are
unique.
3. Competitors/Apps with similar business ideas: Comparative competitive advantage in
Italy and Estonia
4. Low possibilities of capital: Trying to find financial investors and sponsors
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33. 9. INVESTMENTS
9.1. Launching the project
9.2. Machinery and equipment
9.3. Investment plan
Activity 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL
Writing the
business plan
X X € 0.00
Company
registration
X € 2,700.00
Renting office X X X X X X X X X X X € 20,000.00
Buying
equipment
X X € 10,610.00
Advertising X X X X X X X X X X X € 49,000.00
Finding of
partners
X X X X X X X X X X X € 0.00
App creating
process
X X X X X X X X X X X X € 75,000.00
TOTAL € 157,310.00
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34. 9.4. Financial resources
9.4.1. Financing
9.4.2. Loan amortization table
Interest rate: 20%
Years
2018 2019 2020
1. Equity € 75,000.00 € 0.00 € 0.00
2. Debt
2.1 Short-term loans € 0.00 € 0.00 € 0.00
2.2 Long-term loans € 82,310.00 € 79139.19 € 75,334.22
3. Capital Leases € 0.00 € 0.00 € 0.00
TOTAL € 157,310.00 € 79,139.19 € 75,334.22
Period
Loan balance at
the beginning of
the period
Interest Loan principle Loan payment
Loan balance at
the end of the
period
1 €82,310 16462 3170.81 19632.81 79139.19
2 79139.19 15827.83838 3804.97 19632.81 75334.22
3 75334.22 15066.84443 4565.96 19632.81 70768.26
4 70768.26 14153.65169 5479.16 19632.81 65289.10
5 65289.10 13057.8204 6574.99 19632.81 58714.11
6 58714.11 11742.82286 7889.99 19632.81 50824.13
7 50824.13 10164.82581 9467.98 19632.81 41356.15
8 41356.15 8271.229346 11361.58 19632.81 29994.57
9 29994.57 5998.913592 13633.89 19632.81 16360.67
10 16360.67 3272.134687 16360.67 19632.81 0.00
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35. 10. EXPENSES
10.1 Variable costs
10.1.1. Variable raw material costs
We do not have any raw materials because we are providing a service.
10.1.2. Variable staff costs (cost for employer)
The variable staff, except for the cleaning staff, is working only in the first two month of
the year to develop the App. After that period we do not need them anymore.
From the second year all the variable staff (except for the cleaning staff) will be hired, so
their cost will be calculated in the Fixed Staff Costs section (10.2.1.)
Occupation Staff
costs
(EUR a
month)
2018
Staff
costs
(EUR a
month)
2019
Staff
costs
(EUR a
month)
2020
Staff
costs
(EUR a
year)
2018
Staff
costs
(EUR a
year)
2019
Staff
costs
(EUR a
year)
2020
Cleaning Staff €400 €400 €400 €4800 €4800 €4800
Software
engineer
€1500 - - €3000 - -
Web designer €750 - - €1500 - -
Test analyst €750 - - €1500 - -
System analyst €850 - - €1700 - -
Network
engineer
€1000 - - €2000 - -
Helpdesk
support
€1300 - - €2600 - -
Technical
consultant
€900 - - €1800 - -
Marketing
manager
€1000 - - €2000 - -
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36. 10.1.3. Total variable costs
10.2. Fixed costs
10.2.1. Fixed staff costs (cost for employer)
Cost EUR a year
2018 2019 2020
Cleaning staff cost €4800 €4800 €4800
Software engineer €3000
- -
Web designer €1500
- -
Test analyst €1500
- -
System analyst €1700
- -
Network engineer €2000
- -
Helpdesk support €2600
- -
Technical consultant €1800
- -
Marketing manager €2000
- -
Total €20.900
€4800 €4800
Position
Labour
requirement
Salary (per month) Salary (per year)
(no of people)
2018 2019 2020 2018 2019 2020 2018 2019 2020
CEO 1 1 1 €0.00 €40,000 €40,000 €- €4.800,00 €4.800,00
Project
manager
1 1 1 €0.00 €1.650,00 €1.650,00 €- €19.800,00 €19.800,00
Business
analyst
1 1 1 €0.00 €1.500,00 €1.500,00 €- €18.000,00 €18.000,00
Software
Develop
ment
Manager
1 1 1 €0.00 €1.300,00 €1.300,00 €- €15.600,00 €15.600,00
Sales
manager
1 1 1 €0.00 €1.250,00 €1.250,00 €- €15.000,00 €15.000,00
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42. 15. CONCLUSION
All strategies employed are essential in order to meet both short term and long term objectives. The
initial strategies, however, may need adjustments throughout the course of the business. This is a
typical practice for competitive ventures.
FoodHub app business plan provides detailed information regarding all the major functional areas
of restaurant discount; namely, the operating, production, marketing and sales, finance, accounting,
human resources, organization structure, and information systems. The relative emphasis or
importance for each functional area is summarized below.
The organizational structure, company culture, and human resources are connected in one form or
another. Each team member must be willing to work hard and create their own opportunities.
Our established functional areas form the foundation for all other "departments" within the
company. For example, one of the company's main objectives is to provide good restaurants at a
low cost. By providing a relaxed and open environment, each team member can present own views
on how to lower production costs. Moreover, when employees feel comfortable and are encouraged
to participate in daily operations of a company, they can be more productive and creative. This leads
to a more efficient and productive company.
Another very important objective is to satisfy customers. The technical department and marketer
must work closely together in order to achieve this objective.
FoodHub anticipates having sales of 50,000 units in 2020. However, in order to meet the forecasted
sales figure, an investment of 157,310 is required to pay our higher forecasted operating expenses.
With more revenue to "spread around," the company can look into future ventures. Moreover, by
three years, FoodHub plans to develop new technology concepts.
Since there is very small amount of barriers to entry and capital requirements, there is high
probability that in the nearest future new firms who offer identical or alternative product will be
introduced, which can negatively influence market share and profitability. Despite the possible
substitute products, the perceived level of product differentiation, product innovation and unique
features will help our product to stay competitive, even if the number of companies in the industry
will be increasing. One of the possible challenges is the bargaining power of customers: the ability
of customers to put the firm under pressure, which also affects the customer's sensitivity to price
changes.
But in connection with absence of direct competitors, a certain advantage and serious approach to
business, this application can receive the beginning In Estonia, and then and in Italy.
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43. Our company has quite large chances to enter the market, thanks to the exact analysis of the target
group and to abilities of IT technologists.
“The World’s Best Food App, Offering Discounts and Reviews, Superior Tasting Experience at a
solid price for everyone”
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