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Business Proposal

The selected business proposal for the study is a company, who can easily provide free Wi-Fi in places such as restaurants, cafeterias, public transports as well as public places and taxis (Wu et al. 2015). For this, the proposed business name is EasyAccess WifiKonnect Company that will mainly focus on serving the best interests of the society as a whole where they will get free access to Wi-Fi in proper places (Zanella et al. 2014). At EasyAccess WifiKonnect Company, the start-up company will be engaged or believes in using the information power as and when required. The company aims at getting access over more than 10,000 Wi-Fi hotspots in and across Australia where they will be offering instant as well as easy connectivity so that the user will get high-speed, secured internet services and reliable sources. The main objective behind this business proposal is to build a connected ecosystem so that the information can be properly used that is made available to everyone during right time and right time that enables better as well as faster decision-making process (Wang, Wang and Liu 2016).

Information asymmetry is one of the big causes that give rise to social as well as economic inequality (Vaishnaw and Tandan 2015). EasyAccess WifiKonnect Company had been involved in providing free Wi-Fi that is marginally priced internet access that will help end user to get better life. The team of EasyAccess WifiKonnect Company had been designated and involved in providing best-in-class wireless network solutions. The company had planned to make use of latest tools as well as technologies through cloud servers such as Al and Bigdata that ensure the best in class customer experience. The team of EasyAccess WifiKonnect Company has the necessary expertise and experience in the area of technology, analytics as well as finance that plays senior leadership role especially in a large organization (Thomas et al. 2014).

This business proposal on EasyAccess WifiKonnect Company had been selected for the study to enhance the level of communication between individuals through use of latest technology (Song and Issac 2014). Earlier, there was no internet that restricts individuals to gain over the information instantly. Without internet access or Wi-Fi connectivity, every work that has been done is time consuming. Hence, there was a need for a company whose main motive will be to provide free access of Wi-Fi connection to restaurants, public places, cafeterias and taxis (Niemelä, Isomöttönen and Lipponen 2016).

Information Asymmetry

In order to solve the above-cited problem, EasyAccess WifiKonnect Company will be discovering the invaluable business sense through providing free Wi-Fi access to the customers (Penteado et al. 2016). EasyAccess WifiKonnect Company will be providing free Wi-Fi access to the customers that will help in increasing the revenue margins. The start-up company needs to remain ahead of competition as well as offer customers that will provide world-class user experience of getting high quality internet on any of the wireless device. EasyAccess WifiKonnect Company will be tracking the customer preferences as well as usage behavior to get an idea of the use of products. EasyAccess WifiKonnect Company will be customizing the promotions as well as advertising to some of the special clients as well as in-frequent clients that actually capitalize on low business hours for given period of time (Patil and Kokil 2015). At EasyAccess WifiKonnect Company, the main focus is to manage with the end-to-end requirements that take into account hardware as well as relevant business insights and the further regulatory compliance (Wang, Wang and Liu 2016). EasyAccess WifiKonnect Company needs to be attaining edge over other competitors by reaching out to the diverse audience. In order to become a Hotspot Host, it is required to complete three steps that access services of EasyAccess WifiKonnect Company that is effortless but yet yield maximum returns for the business enterprise. The first step is to contact with the mobile number, the next step responds to some of the questions that is related to current customer interaction (Vaishnaw and Tandan 2015). The third steps that need to be followed is suggesting traffic as well as tariff optimized end-to-end solutions that will help in locating the Wi-Fi enabling and offering unique and personalized experience to the customers. The main purpose of EasyAccess WifiKonnect Company is to bring love for Wi-Fi in the minds of the customers to a whole new level. In order to keep a pace and expressing the lifestyle, EasyAccess WifiKonnect Company will be bringing services that are free, easily accessible as well as high speed and reliable and secure at the same time (Ojasalo and Ojasalo 2015).

Customers need to follow two simple steps for getting limitless surfing. At EasyAccess WifiKonnect Company hotspot, there are steps after selecting the wireless networks that sets the device (Ojasalo and Ojasalo 2015). The first step is entering the mobile number that is present in the login screen. The next step is entering the 4 digit OTP that has been sent from SMS from the mobile number. After performing both the steps, customers can easily enter into the wonderful world of high speed as well as secure internet in an overall manner (Nandi et al. 2016).

Key Performance Indicators

EasyAccess WifiKonnect Company will aim at creating a memorable experience for the customers after ensuring priceless for the business where the company need to join hot spot hosts that provides customers with free as well as high quality internet. At EasyAccess WifiKonnect Company, the company needs to involve in serving the end-to-end requirements in an internal network that is taken into consideration in the most appropriate way (Nidagundi and Novickis 2017).  

Figure: The Business Model Canvas

(Source: Wang, Wang and Liu 2016)

Key Performance Indicator is one of the types that are used for measuring the level of performance. Addition to that, these key metrics will help in evaluating the success of given business organization for a given activity that they are engaged in (Monroy, Solís and Patrón 2015).

EasyAccess WifiKonnect Company is a lean start-up business. There is lot of attributes that need to be taken into consideration after trying to accomplish or accommodate with the limited initial budget (Mariotti and Glackin 2014). The management of new start-up business cannot even think of generating profit in the initial years and it is next to impossible to measure the level of success at current stage (Nagadapally et al. 2015). In that case, as EasyAccess WifiKonnect Company is a start-up business, there is a no limit of metrics that can be used for measuring the progress level of that company. Some of the popular ones have been used for measuring the success of EasyAccess WifiKonnect Company within a given period of time (Manyi et al. 2015).

Customer Retention

Retention of customers is really important for any type of business, be it a start-up business or an established business. In this lean startup business, the most interesting part is the short product development cycles as well as iterative product release (Lima and Baudier 2017). In that case, customers who have already adopted the business model that had turned off a next product release as well as others can engage. It is important for the lean start-up company to measure the customer retention rate (Khan et al. 2016).

Viral Reach

Lean Start-up Company Such As EasyAccess WifiKonnect Company should be focusing on getting the wider audience through social media networking sites such as Facebook, Twitter as well as Instagram (Islam 2016). In order to reach the customers, it is time to teats apart from the quality of those connections on looking at how valuable it is. The start-up company needs not to be discouraged with the fact if they have slower viral growth but has more relevance in their offerings. EasyAccess WifiKonnect Company should be concerned with the rapid viral growth without any of the quality participants (Liang et al. 2014).

Customer Retention

Turnover

Turnover is a one of the important key financial metrics that help in measuring how rapidly EasyAccess WifiKonnect Company is losing their team members or in those case customers (Li et al. 2016). As far as internal metric is concerned, turnover need to be assessed for viewing as and when expected where the natural part of EasyAccess WifiKonnect Company is a sign that signifies actual estimation

Revenue

Revenue is other popular financial metric that focus on whether it turns into a profit for realizing the revenue for EasyAccess WifiKonnect Company. In the first few years of start-up of EasyAccess WifiKonnect Company, it is needed to control over the operations cost as well as maintenance costs. The company should focus on revenue not just the overall profit for a given period of time (Larson 2015).

In order to plan for long-term business, it is needed for EasyAccess WifiKonnect Company in having a solid operating business model (Khan et al. 2016). The reason behind it is after the business starts generating revenue, it is not difficult to bring more number of customers in the business. Furthermore, Customer Acquisition Cost is one of the costs that come forward at every stage of business development for EasyAccess WifiKonnect Company. It is required to measure the customer acquisition cost through use of mathematical model that will estimate it if the company is early on or do not have lot of data. In that case, if proper data can be generated from the business, then calculation is conducted for getting the customer acquisition cost (Jones 2014).

EasyAccess WifiKonnect Company

Customer Acquisition Cost

2017

2018

2019

Number of new customers per month

60

70

80

Costs to develop or set Wi-Fi hotspots  

$1,250

$1,560

$2,350

Estimated life of Wi-Fi hotspots  

10

12

15

Monthly marketing costs (Costs*12)

$6,240

$7,800

$9,120

Monthly maintenance costs (Costs*12)

$5,760

$6,720

$8,640

 Table: Customer Acquisition Cost of EasyAccess WifiKonnect Company

(Source: Created by Author)

The above table represents the customer acquisition cost for the start-up company named as EasyAccess WifiKonnect Company where the cost can change over the period of time because of rolling out of new products as well as services that streamlines or complicate the actual operations in a given form. It is important for the company to continuously reevaluate with the above listed costs on a regular basis in order to keep a track on the mentioned target (Ghezzi et al. 2015).

EasyAccess WifiKonnect Company will be providing free Wi-Fi access to the customers where they will have distribution costs that amount to $360 per month (Wang, Wang and Liu 2016).

EasyAccess WifiKonnect Company need to involve in hosting the operations within their range so that they can individuals can get the free access to Wi-Fi anywhere and anytime (Vaishnaw and Tandan 2015).

Viral Reach

EasyAccess WifiKonnect Company will remain ahead of competition where they will offer the customers with world-class user experience of high quality internet on any of the wireless device. The lean start-up company had been involved in recruiting experienced and knowledgeable human resources who will work hard together for achieving common goals as well as objectives at the same time (Chen et al. 2013).

A revenue stream is the quantity of money that comes into a business or association from a given source. In this case, new start-up lean business named as EasyAccess WifiKonnect Company where the revenue model explain how a trade create proceeds stream from products such as Free Wi-Fi  that is easily accessible anywhere and anytime in and across Australia (Bush and Mahony 2014). They are resultantly a key feature of the income representation. EasyAccess WifiKonnect Company will be generating revenue through the use of the revenue model mechanism planned in the most appropriate way. Furthermore, trade constantly seeks for innovative ways of generating proceeds, hence new revenue streams. EasyAccess WifiKonnect Company finds a new revenue stream has steadily taken on a separate and particular significance in convinced framework for mean a new, novel, undiscovered, potentially profitable, pioneering, and original means of generating profits or exploiting a prospective (Vaishnaw and Tandan 2015). EasyAccess WifiKonnect Company should be using approach in exacting that particularly is functional to new knowledge and internet trade which find enormously inventive ways of generating revenues, often ways which seemed not to be probable. EasyAccess WifiKonnect Company will be using technology-based businesses such as Free Wi-Fi that will be continually updating their revenue models so that the start-up business can compete in this present competitive world. In addition, Advertising can be seen as a constituent of the revenue model, though, when the EasyAccess WifiKonnect Company will be advertising its own products such as Free Wi-Fi to places, this would consequence as a cost for the trade that is the exact conflicting of profits (Wang, Wang and Liu 2016). On the contrary, promotion can lead to an augment in sales consequently revenue for specific time. EasyAccess WifiKonnect Company will add value to a product such as Free Wi-Fi to places that will be purchased by a client; promotion is frequently a constituent of their trade plan. Therefore, Expenditure for EasyAccess WifiKonnect Company that is an exacting constituent is forecasted as it can create better revenues for the upcoming financial year (Bulchand-Gidumal, Melián-González and Lopez-Valcarcel 2013).

Turnover

Advertising- The ads that are placed on the website that mainly generates the majority of the revenue in EasyAccess WifiKonnect Company

Ticket Sales- EasyAccess WifiKonnect Company will be selling tickets for most of the events as well as earns commission through these sales.

Consulting- EasyAccess WifiKonnect Company will be owing to huge databases of restaurants where they will offer Free Wi-Fi services to their users after understanding their preferences. EasyAccess WifiKonnect Company will be providing business consulting as well as data analytics services to its potential clients.

The revenue model is a key constituent of the business model in the given lean start-up business where it is a necessary issue for delivering products such as free Wi-Fi with high margins and financial support the trade (Blank 2013). With Less than 50% of the investment required to set up a business such as EasyAccess WifiKonnect Company will be used in revenue-producing areas. It cannot resultantly be viewed as being indistinguishable to the trade representation as it does not manipulate all the given elements but more should be viewed as an inner constituent of it (Wang, Wang and Liu 2016).

Having a well-structured business model is compulsory for the success of any commerce such as EasyAccess WifiKonnect Company that adds value to a product such as Free Wi-Fi to places for customers. Furthermore, this will as a result comprise having a clear and tailored revenue model which will guarantee its financial health for EasyAccess WifiKonnect Company. It provides the owners of the trade with an essential sympathetic of cash flows as well as how it will create revenue and exploit productivity. Aligning with the business model, EasyAccess WifiKonnect Company need to first engage in estimating the financial targets that forecasted when creating a primary trade plan whereby predictable revenues and proceeds will have to be reachable and consequently intended through the use of revenue models practical by the industry (Vaishnaw and Tandan 2015).

In this particular business proposal on the lean start-up business such as EasyAccess WifiKonnect Company, customer lifetime value as well as lifetime customer value (LCV) that represents the net profit recognized to the intact prospect connection with a client. Furthermore, the prediction model can have unreliable levels of complexity and correctness, where EasyAccess WifiKonnect Company ranges from a crude heuristic to the use of intricate analytical analytics method (Wang, Wang and Liu 2016).

Customer lifetime value can also be distinct as the dollar worth of a client connection, based on the current worth of the predictable future cash flows from the customer relationship for EasyAccess WifiKonnect Company (Vaishnaw and Tandan 2015). Furthermore, Customer lifetime value is a significant perception in that it supports firms to transfer their focus from periodical proceeds to the long-term health of their customer relationships for EasyAccess WifiKonnect Company. Therefore, Customer lifetime value for EasyAccess WifiKonnect Company is a significant number since it represents an upper limit on expenditure to obtain new clientele. For this reason it is a significant constituent in calculating payback of promotion spent in marketing mix modeling for the company named as EasyAccess WifiKonnect Company (Wang, Wang and Liu 2016).

EasyAccess WifiKonnect Company

2017

2018

2019

Sales

$235,000

$334,800

$458,900

Direct Cost of sales

$43,590

$56,790

$65,790

Other

$0

$0

$0

Total cost of sales

$43,590

$56,790

$65,790

Gross Margin

$191,410

$278,010

$393,110

Expenses

Payroll

$5,490

$6,780

$8,970

Sales and Marketing and Other Expenses

$6,670

$7,860

$8,760

Depreciation

$120

$230

$340

Utilities

$650

$770

$870

Insurance

$630

$750

$890

Maintenance/Repairs

$230

$640

$970

Travel

$120

$230

$340

Payroll Taxes

$630

$750

$890

Total Operating Expenses

$14,540

$18,010

$22,030

Profit Before Interest and Taxes

$176,870

$260,000

$371,080

EBITDA

$56,790

$66,790

$87,900

Interest Expense

$340

$560

$980

Taxes Incurred

$320

$450

$770

Net Profit

$176,210

$258,990

$369,330

Revenue

 Table: Income Statement of EasyAccess WifiKonnect Company

(Source: Created by Author)

EasyAccess WifiKonnect Company

2017

2018

2019

Sales

$235,000

$334,800

$458,900

Direct Cost of sales

$43,590

$56,790

$65,790

Other

$0

$0

$0

Total cost of sales

$43,590

$56,790

$65,790

Gross Margin

$191,410

$278,010

$393,110

 Table: Income Statement of EasyAccess WifiKonnect Company

(Source: Created by Author)

Conclusion

At the end of the study, it is easy to conclude the fact that EasyAccess WifiKonnect Company is a new lean start-up company that had been planned so that they can provide free Wi-Fi in places such as restaurants, public places, taxis as well as cafeterias and public transports. With the advancement of technology, it is now necessary for all the individuals to get free access to Wi-Fi network so that they can easily communicate with each other. In this report, there is proper explanation to the topics that has been mentioned in the lean canvas. The above analysis clearly defines the problem that was the main reason as to why EasyAccess WifiKonnect Company had been planned in the initial stages of operation. From the business canvas model, the main aspect that has been explained in the study is key metrics, cost structure as well as revenue streams. Proper calculation has been done for the upcoming year as to how EasyAccess WifiKonnect Company can generate profits and become competitively viable in the current scenario. There was an urgent need to have a company who desire in looking for the comfort of individuals at various places where they actually visit for any purpose, be it work, study and to spend their leisure time. Free access to Wi-Fi will automatically help them to reach every possible person with a single click and there will be enhance over the communication level as far as possible.

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Solid Operating Business Model

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