Module 2 business idea

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  • 1. Module 2 Business Idea Introduction Mobile phone cash transaction application Area of use: Selected African countries within a common market e.g COMESA Region (Africa

2. Projected Market & Demographics Adult mobile phone users in the countries of the Common Market of East and Southern Africa region. Remotely stationed farmers who need to make acquisitions and money transfer to other business counterparts or personal transfers 3. Projected profitability Profit margin: 138 000.00 in the first year Patent of products is required and requires working in conjunction with a mobile phone service provider and a commercial bank The trend is to refine the current usage methods so that it is easy to use by the less literate 4. Pricing Pricing is based on subscription to membership of the commercial bank partnered with. 5. Projected production and updates Estimated cost to develop the application will reach Minimum Viable Product: 50000 The application will need to be updated after about year or one and half years. 6. Market Research and Risks Secondary research on mobile phone usage has been done by going through reports by the World Bank and the African Development bank. The results look promising as the trend is now for cashless transactions. High risks do exist due the fact that electricity supply is not very reliable in some African countries as mobile phones require sources of charging the batteries. It is a highly competitive market, as those who are already established have established a large clientele. Possibility of forced appropriation by government due to political instability in Africa 7. Management skills Marketing Skills: Use of social media such as Facebook and Twitter. Financial skills of finance management. Outsourcing of Application developers 8. Profit and Loss Projection Profit and Loss Cross platform application development Application update Server site costs Project management Overheads Total Costs PROJECTED REVENUE 1st Year100 000.00 45 000.00 8 000.00 3 000.00 12 000.00 168 000.00 300 000.00 9. Conclusion This proposal is for a country which is politically stable and whose economy is on the upcoming such as Rwanda.