Online Parking Business Plan: EasePark
ONLINE PARKING BUSINESS PLAN
Business plan summary:
The business is all about online parking allotment prior reaching the premises. The company, being virtually present will follow the flat organizational structure due to its simple organizational operation. Name of the business is EasePark.
Growing demand of the online parking and growing population in the country has created the space of developing the industry and increasing prospect of earning through such new business concept.
The mission statement of the company is to be the market leader in the industry through effective integration and value addition services. The company also aims to increase its revenue and profitability over the years through delivering satisfaction and value for money.
The financial requirements to start the business are high affecting further operation of the business. The financial forecasting comprises of probable profit at the end of the year that will steadily grow over the years.
The business will deliver the online parking facilities to the car owners in different parking premises. In the rapid growth of population and improved standard of living, parking congestion has been a crucial issue that in turn creates traffic congestion and unnecessary crowd in public places. Therefore, this online parking would cater people prior allotment of parking spaces to avoid unnecessary vehicle congestion, specifically for the pedestrian.
Not yet registered
Being virtual entity, the business will require a space to control and monitor the online parking system and efficient parking allotment. However, the business will have collaboration of ample number of parking premises in Australia. The company will start with Sydney and spread over the country steadily through examining the acceptance and growing demand of this service.
The central office in Sydney will be acquired through rental mechanism or on lease to move the office with ease to other places or develop subcentres for an effective and easy monitoring process.
Virtual presence of the organization and application based operational procedure enforces the business to develop flat organizational structure where the departments will be separately governed under individual authorities under a single ownership. As the prime operation of this business will rely on the technical expertise and IT related intellect, other departmental operations will have initial contribution while the entire business will be operated through tracking devices and online payment system. IT experts will work under the ownership directly where financial and marketing operations will be executed by individuals associated to different teams.
Management and ownership:
The business will be a partnership venture involving two owners where the entire operation of online parking booking will be executed under direct governance of the business owners. Management of the business will incur owners, IT head, finance manager and marketing manager to make strategic decisions with active participation of these people.
Key personnel for this business will be IT experts who will directly work in developing and controlling the online parking apps. Moreover, the marketing and financial operations will be performed by the individuals only because of the severity and demand of employees in those positions. However, these two operations would also be outsourced to reduce regular cost in remuneration. The reason behind the decision would be its irregular need.
|Job Title||Quantity||Expected staff turnover||Skills necessary||Date required|
|It expert||6||12-18 months||Within a month|
|Marketing executive||1||12-18 months||Within 2 weeks|
|Human resource manager||1||12-18 months||Within 2 weeks|
|Finance Manager||1||12-18 months||Within 1 week|
In case of recruitment, internal recruitment and classified adverts will be the key employment strategy where the level of competency will be judged by the owners to impose direct responsibilities to the employees.
Product and services:
EasePark belongs to the service industry and thus serves the application for allotment of car parking premises prior to reach the place. In that case, Visnjic et al. (2016) stated that the product or service needs to add value to customers’ money to survive and run the business further. Regarding the same, EasePark has develop the strategy of delivering discount on parking booking charges from any of the shops of customers’ choice on a certain amount of purchase to indirectly influence the customers to avail the parking premises for the purpose only.
Mobile application is the basic feature of the business where the customers would avail the parking premises through prior booking of the same. The application will be based on internet usage where it will be transformed into mobile application to ease the booking process. Key innovation for this business would be integration of the application with several payment modes including online fund transfer, mobile wallet.
It is the prime concern where the assets of the business like office premises, software, and other computing equipments need insurance to be compensated due to its uncertain longevity.
Insurance of apps:
The applications will be insured to avoid theft and piracy so that the uniqueness and ownership would be maintained consistently.
Public liability insurance:
Once the registration of the business is completed, it would be the next attempt to insure employee compensation and life of individuals.
Risk management plan:
Following is the risk management plan to ensure lowest possible losses from the operation:
|Loss of assets||Likely||Moderate impact||The assets would be handled properly and safety to avoid the loss of assets|
|Unavailability of finance||Very likely||High impact||Budgeting and financial forecasting should be based on market research report and current trend of the industry|
|Increase in service cost||Very likely||High impact||Cost trimming strategy would be developed on the basis of the periodic evaluation|
A minimum cost buffer should be maintained to adjust the unnecessary but crucial cost increment
Commercial registration, patenting of the application software, human resource policies and government legislations will be the legal considerations that the owners of EasePark needs to consider while running the business operation. The legal considerations are undernoted below:
- Patenting of parking application
- Minimum wage act
- Health and safety policies
- Security and confidentiality policies
- Data protection act
- Tax liability and payment
- Registration of business entity
The operation of EasePark will be virtual entirely in terms of parking allotment and payment system. People can book their parking slot at their desired location through online parking apps. In that case, the customers need to register in the app before proceeding with the parking booking allotment. In this process, the customers need to input their account details to proceed with the payment procedure.
Due to absence of production process the environmental impact is minimal in nature. The business is based on the application based operation and thus, it does not affect environment. Moreover, the business indirectly influences in minimizing the environmental; hazards through minimizing scattered parking and thus, traffic congestion.
Local residents and shop keepers will be benefitted from the online parking allotment. The shopping and resident premises will be parking free and thus, the society development and upgradation will be eased.
The anticipated risk factors associated to the business are:
- Unavailability of start-up funds
- Loss of assets
- Unavailability of ample number of parking slots
- High rental costs to tie up with the parking owners
Different strategies like proper handling of assets, effective awareness of online parking will be the prime strategy to avoid such uncertainty and its consequences.
A number of factors affect in driving the industry of online parking where population has been one of the same that influences in increasing demand of parking allotment and premises for the same purpose. The population growth in Australia has been 9.6% during the last decade that is expected to increase in future. 92% employment in last few years has increased the demand of parking services which in turn is expected to grow in future too (Weareparking.org. 2018). In this context, Sarstedt and Mooi (2014) observed that growing demand influence further growth prospect and sustainability of company for longer future.
The market target will be as follows:
- The business would attain at least 1000 allotment from a region
- At least 100 parking allotments at a single parking zone
- Increase of sales by 40% at second year
Porter’s five forces analysis:
Competitiveness is low due to less number of companies
New business idea and thus, probability of developing rivalry
|Threat of substitute:|
The threat of substitute is low
The company would not face any obstacle in running its operation
No substitute will influence the customers to avail the company
|Bargaining power of suppliers:|
Bargaining power of suppliers are low
Virtual presence of the company requires no suppliers due to to its basis on service provision
|Bargaining power of buyers:|
Bargaining power of buyers are low
No substitute will reduce the this force for the company and enforce the buyers to avail its services
|Threat of new entrants:|
Cost of developing software and parking allotment application would interrupt the new entrants.
There is no other force in this aspect to stop other organisations to enter this industry
Start-up cost is comparatively lower than other industries
Prime customers of EasePark will be the vehicle owners, specifically the two wheelers and four wheelers. As a reason, two wheelers and four wheelers are the key reason for the traffic congestion and unsystematic parking activities where the same is observed specifically in the market places and shopping centres. Apart, public transport would also be a type of customers where only the tourist vehicles will be allowed for parking. In summary, following is the list of customers to be targeted.
- Owners of two wheelers
- Owners of four wheelers
- Tourist vans/buses
- Public cabs (parking charge will be levied separately to the travelers)
|Unique business idea with minimal competition||High rental expenses|
Lack of awareness regarding online parking
Tendency of people to park in non-parking zone
|Increasing traffic congestion|
Increasing population and disposable income
|Online transactional problems|
Unauthentic parking without booking
Incapability of tracking the booking process
There is no competitor in this industry that would lead to create a sound rivalry to EasePark. The only rival firm of EasePark is Divvy parking that would be the sound rival for EasePark. Therefore, the company needs to be aware of the policies and actions of Divvy Parking system to develop the tracking system accordingly.
Advertising and sales:
|Planned promotion /advertising type||Expected business improvement||Cost ($)||Target date|
|Visual adverts||Acquisition of 50% of the total market share due to visual influence and delivery of detailed information||2700||3 months from now|
|Printed advertising||Customers would get to know about the utilisation and mechanism of acquitting market share||250||1 month from now|
Sales and marketing objectives:
As mentioned above that EasePark aims to provide secure and wider accessibility of parking premises in Australia, the sales objectives of the company are:
- To increase its sales by 15-20% every years
- To increase its market share by 40% in the second year over the initial year
- To introduce improved online parking allotment system and convenient payment mechanism to the customers
- To improve stakeholders’ relation
- To promote the business in every possible promotional channels to attain maximum client reach for survival purpose
- To enlarge its operation from local to national platform
- To develop the marketing portfolio in such a way that maximum satisfaction would be delivered to the customers while ensuring targeted profitability as well
Unique selling proposition:
Unique selling proposition refers to the tagline or slogan that entails principles and values the company will follow while delivering services to its customers. Moreover, Shao and Bao (2015) observed that unique selling proposition it’s the factor that the customers cannot feel from its rivals’ services. As the business is a new concept in Australia, discount on any purchase due to car parking would be a unique feature where the customers would be influenced to avail the online parking rather creating traffic congestion in public premises.
Sales and distribution channels:
|Channel type||Percentage of sales (%)||Advantages||Disadvantages|
|Printed media||10%||Visual aid and information regarding service portfolio||Less influential to acquire customers|
|Social media||50%||Maximum customer reach||High change of data leakage due to openness|
|Word of mouth||30%||Effective influence to customers||Lack in authenticity in information|
EasePark will be the most popular, trusted and preferred sources of car parking allotment bringing integrity and value to all its relationships including both internal and external.
The mission statement of EasePark is to be the market leader in providing profitable, secure and widely accessible parking allotment and management.
Goals and objectives:
Key goal of EasePark is to deliver an effective parking solution and minimize the traffic congestion due to scattered parking activities on road. However, in the opinion of Lee et al. (2015), there could be a security issue in terms of car damage that would be vulnerable for the business to be run further. Therefore, another objective of the company will be to ensure secure parking solution at any point of the region to build and enhance trustworthiness of customers on the company.
Key objectives and financial review:
The financial objectives of EasePark are as follows:
- To maximize the profit and ensure the cost of at least four months ahead
- To ensure the return of investments and maximum repayment of the borrowings
- To increase the revenue by 40% every year
- To enhance the profitability of the company by years
- To repay the loan by 5 years
There are a number of assumptions that the company needs to consider while initiating the business further. However, any little change or absence of the factor would enforce EasePark to modify its planning and act accordingly. The assumptions are as below:
- The financial resources in terms of funding will be easily available for start-up capital acquisition.
- Demand of EasePark will be steadily growing in future with increasing awareness regarding traffic congestion in public premises.
- There will be no or less security issues in terms of property damage, theft and other losses.
- Sales of the online parking services will be increasing by years hence
- Plant and equipments will be invested initially where only6 the maintenance cost will be incurred further.
- No property loss will be during carrying out the business or the loss will be negligible.
|Business Name||150||Start-up capital||149860|
|Licences||10000||Plant and equipments|
|Accountant fees||50000||Office equipments|
|Rental lease cost||11500||Office Fitouts||150|
|Building and Contents||6500|
|Marketing and advertising||2100|
(Source: Canstar Blue. 2018)
Balance sheet forecast:
|Year 1||Year 2||Year 3|
|Property and land||6500||7000||8000|
Profit and loss statement:
|Year 1||Year 2||Year 3|
|Less: Cost of goods sold||11000||15400||21560|
|Advertising and marketing||2100||2940||4116|
Expected cash flow: