Business Idea: Around the world Name of the Student: ABDUL SAMI MOHAMMED Name of the University: CENTRAL QUEENSLAND UNIVERSITY SUBJECT: THINK BIG ST.ID:S0275798  Executive summary The report is intended to propose the business idea to develop a mobile application for Australians that describes the law and offences of every country around the world and also explain Australian law and offences in native language to migrants coming to Australia with Non-English speaking background. The mission of this idea has been seen in terms of the being dedicated to provide accurate legal advice to Australian travellers and tourists travelling to different parts of the world and for migrants coming to Australia as well. The goals of the company have been further seen in terms of bringing a revolution through mobile platforms such as android and iOS to provide seamless access to the laws and offences which are practised in a particular country. The application will provide the users with an opportunity to sign up for a 24 hour free trial before actually buying the product. Initially, “Around the World” will be able to provide the laws of some of the major destinations such as Japan, China, UAE, U.S., France, Russia, Germany, Switzerland. The application will gradually provide the users with update thereby increasing the list of countries. The main idea of developing this app will focus on providing the laws and offences of all 195 nations which exists in the world at present. . Marketing plan ⦁ Channels to market –The non-incentivized consumer price index will be adopted by the company for having an impact of high lifetime value which will be able to translate into more number of active users a month and better monetisation for the company. Both the platform of Apple iOS and Android charges 30% of the total revenue generated by the app ("Android OS or Apple iOS: Which One Is Easier for Developers to Work With?", 2017). The other effective strategy for the channels to marketing has been identified in form of social media and Facebook advertising. The company for the looks forward to adopt co-promotional partnerships which will allow mutually beneficial partnership for reducing the overall cost of the venture (Brus Media, 2017). ⦁ Customer segments – The main form of the customer segment segregation has been done with people aged 19-80 years. As the main aspect of the service has been identified in form of providing legal information of all the countries. It is an exclusive app for Australians and migrants coming to Australia.. ⦁ Customer relationship – The customer relationship will be maintained in a “customer relationship management software”. The company will further use the information of customers through the feedback given in the app stores of both Android and Apple users. This will allow the company in categorize the customer base in spreadsheets and lists (Holzer, A., & Ondrus, J. 2011. Mobile application market: A developer’s perspective. Telematics and informatics, 28(1), 22-31). ⦁ Marketing expenditure –The expenditure cost will be spend mostly on social media like Youtube and Facebook. The advertising costs for the application has been further calculated based on cost per mile (CPM) and cost per click (CPC) rates in both android and iOS platforms. This is the cost per thousand rates an advertiser needs to pay for displaying the ads and for every time and user clicks on the ad. This is important for considering the advertising costs associated to the application. Further details are given in appendix. Organizational plan ⦁ Resources to be used: The main resources needed requirement for the company are seen in form of a team and as Project Manager of the team. The team will include software developer, Quality assurance, operations department, marketing department and accounts department. The total requirement of the personnel’s has been seen in form of 6 workers employees in total. The main form of the segregation of the workers has been seen in terms of 1 Project Manager, 1 person as software developers,1 Quality assurance, 1 person in the operations department, 1 person in the marketing department and 1person in the accounts department. ⦁ Expected wages: Due to limited budget of $100k all the process will be outsourced in India. Project manager annual wage is $27,890, Program Developer will be $ 15307.413 AUD per year, Quality assurance-$14396.AUD per year. Operations -$6542 AUD per year, Accountant-$4938 AUD per year, Marketing department-$7386 per year ("Software Developer Salary (India)", 2017). ⦁ Abide policies – The Company needs to adhere to the various types of confidentiality agreement including permission from all the country’s around the world for providing detail information of Laws. It needs to further make a copyright protection as it will give the evidence and prove that ownership of copyright (Deegan, 2013). The next step is to create an app developer contract so that the company is able to ensure it does not pass the final codes to the third party app developers. ⦁ Hire places – Fully furnished,3000 square foot office at film nagar, Hyderabad, India  will cost monthly  $1500 (2017). ⦁ Business model- After developing the app it will be released at the mobile platforms, where it will be sell to the customers. It will be sell at $ 2.00 AUD, out of which 0.60 cents were retained by selling platforms. So, the app will generate $1.40 cents revenue for one download. Available in appendix. ⦁ Approvals needed from Australian Gov: The main form of the government approval has been seen in terms of adhering to the copyright laws, Internet, importation of software into Australia, anti-trust provisions and limitation of liability (Australia.gov.au, 2017). Financial plan Initial cost- The initial cost will be around $ 6500 AUD which include  first month rent payment of $ 1500 AUD, $4632 AUD for Pc's and the remaining for overhead expenses. ⦁ Proposed pricing strategy –These days lots of apps are available online, to make our application gain market shares we will follow market penetration. It will be sell at $ 2.00 AUD, out of which 0.60 cents were retained by selling platforms. So, the app will generate $1.40 cents revenue for one download. ⦁ Strategy to be followed to survive in the market- “Around the World” is identified as a one-stop application for knowing about laws and offences across all the major nations of the world. This is identified as the main driving force towards a differentiated marketing strategy. The company further stands apart by providing the users with opportunity to sign up for a 24 hour free trial before actually buying the product (Bushman, 2014). ⦁ Breakeven point – The breakeven point show that the company needs to sell services worth $142,857 to reach a breakeven point of $100,000 ⦁ Fixed cost and variable cost – The fixed cost of the company has been seen in terms rent for the premises and buying of electronic equipments. Some of the main forms of the variable cost of the company have been further seen in terms of Direct Labour Costs, third-party developer of the application, Direct Material Costs and Electricity cost. The fixed cost has been evident in form of $ 6500 paid for the rent of the premises ⦁ Conclusion Thus for the application to do well and make profit, then it must have 100,000 downloads a year. It will start making a profit $40,000, if only it reaches the target of 100,000 downloads from the first year itself and payback period will be in the third year of its launch. References: Apps | australia.gov.au. (2017). Australia.gov.au. Retrieved 13 May 2017, from http://www.australia.gov.au/news-and-social-media/apps Android OS or Apple iOS: Which One Is Easier for Developers to Work With?. (2017). Lifewire. Retrieved 14 May 2017, from https://www.lifewire.com/android-os-vs-apple-ios-for-developers-2373400 10 Mobile Marketing Channels to Market Your App | Brus Media. (2017). Brus Media. Retrieved 12 May 2017, from http://www.brusmedia.com/resources/10-mobile-marketing-channels-market-app/ Holzer, A., & Ondrus, J. (2011). Mobile application market: A developer’s perspective. Telematics and informatics, 28(1), 22-31. Software Developer Salary (India). (2017). Payscale.com. Retrieved 14 May 2017, from http://www.payscale.com/research/IN/Job=Software_Developer/Salary Deegan, C. (2013). Financial accounting theory. McGraw-Hill Education Australia. http://www.magicbricks.com/property-for-rent/Commercial-Office-Space-real-estate-Hyderabad Bushman, R. M. (2014). Thoughts on financial accounting and the banking industry. Journal of Accounting and Economics, 58(2), 384-395. 3416.0 - Perspectives On Migrants, 2007". Abs.gov.au. N.p., 2017. Web. 14 May 2017. Australia, Tourism. "Visitor Arrivals Data - Research - Tourism Australia". Tourism.australia.com. N.p., 2017. Web. 14 May 2017. Johnston, M. (2014). What Are Average CPM Rates in 2015?. MonetizePros. Retrieved 13 May 2017, from https://monetizepros.com/display-advertising/average-cpm-rates/ Appendix Reasons for Application development. ⦁ Last year a total of 37.7 million Australians crosses international border for holidays, business and for family visits, among which a major portion of 52% travelled overseas for holidays ("3416.0 - Perspectives On Migrants, 2007"). On the other hand there are about 768,500 visiotrs arrive in Australia last year (Australia).Among which 27.2% visitor were non English speakers ("3416.0 - Perspectives On Migrants, 2007"). whether migrants coming to Australia from a specific of 27.7 % Non English speaking background or Australians travelling to other countries with a giant 37.7 million shows that they have Curiosity to know the world and Around the World application will help their curiosity of knowing world safely. Outsourcing: ⦁ The whole development and as well as operation, marketing and accounting will take place in India because of the cheap labour available to satisfy the total availability of $100,000. But this application is limited to Australians or Migrants living in Australia. Advertising Expenses for CPC and CPM Parameter Average Rate Year 1 Year 2 Year 3 Year 4 Year 5 CPC $ 2.14 1400 1600 1700 1700 1800 CPM (Government & Politics) $ 1.33 1800 1,696 1,695 1,797 1,802 Total   3,200 3,296 3,395 3,497 3,602 Table: “Around the World’s advertising Expenditure” (Source: Johnston, 2014) ⦁ Business Model (Holzer, A., & Ondrus, J. (2011). Direct cost and indirect cost Resources Required for first year Cost In AUD (per annum) Project manager $27,890 Program Developer $15307.403 Quality assurance $14396 . Operations $6542 Accountant $4938 Marketing department $7386 Rentals for office $1800 Overheads (advertising,etc) $5541 Total $100,000 Payback period: ⦁ Total investment/year-$100,000 ⦁ Annual profit /year- $40.000 ⦁ Payback period will be at-$100.000/40.000=2.5 years