Module 2 Business Idea

IntroductionMobile phone cash transaction application

Area of use: Selected African countries within a common market e.g COMESA Region (Africa

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

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

Pricing

• Pricing is based on subscription to membership of the commercial bank partnered with.

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.

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

Management skills

• Marketing Skills: Use of social media such as Facebook and Twitter.

• Financial skills of finance management.• Outsourcing of Application developers

Profit and Loss Projection

• Profit and Loss• Cross platform application development £100 000.00• Application update 45 000.00• Server site costs 8 000.00• Project management 3 000.00• Overheads 12 000.00• Total Costs £168 000.00• PROJECTED REVENUE• 1st Year 300

000.00

Conclusion

• This proposal is for a country which is politically stable and whose economy is on the upcoming such as Rwanda.