North South University

School of Business and Economics

MBA Program

Course Name: Entrepreneurship (MGT 607)

Section: 1 - Fall 2021

Group Assignment: Business Plan

’A Proposal for New Mobile Application: Parking Finder”

Submitted to:
Dr. M. Shahedul Alam
Assistant Professor
Department of Management

Submitted by: Group 6

Gazi Salma Tanjeem 1815201060

Maisha Mubashira 2035208660
S. M. Mehedi Hasan 2016298660
Md Fahad Bin Siddique 1715376660
Sukanta Paul 2016329660

Date of Submission: 05/01/2022

 Acknowledgement

We offer my earnest gratitude to the Almighty Allah for his absolute favors that enabled us to

prepare our business plan.

We would like to sincerely express our deep appreciation to our course instructor, Dr. M.

Shahedul Alam, Assistant Professor, Department of Management, for his valuable guidance and

advice for helping us present our proposed business plan on “A Proposal for New Mobile

Application: Parking Finder”. It helped me in doing a lot of research and has broaden my

knowledge on entrepreneurial initiatives.

Finally, we would like to expand our gratitude to all those who have directly and indirectly

guided us in writing this proposal.

 Table of Contents

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A proposal for new mobile application – Parking Finder

 Introduction

As we all know every day we find problem in our daily life in this city is about going from one
place to another. There are lots of apps for hiring a transport in this city like Uber, Pathao, Sohoz
etc. But we rarely see any apps which give information regarding parking slot to keep the
transport we use daily for keeping it safe for both the driver and the passenger. In addition we
don’t see any apps which give information for stoppage where we can side our transport without
any hazard. In various western countries there are many services like this. Yes we know finding
a parking slot in this city is not easy. Actually there is no proper plan like this in this city. But we
want an app that will give us at least common public parking/stoppage area where we can safely
park our vehicles. Traffic jam is a huge problem in Dhaka city. One of the reasons is for that not
having proper parking area. So our main aim is to track those areas and give information to the
user about it.

We are basically trying to solve and focus on the following areas regarding the issue -

▪ Finding Parking Slot: In our city every day thousands of cars, bikes, buses move from one
place to another. But there is rarely any authorized data about public parking slots where user
can park his/her transport. For this a proper digital documentation can be helpful. Our app
will play the key role for that part. Where any user can find proper and authentic information
regarding parking slots easily.
▪ Providing Information on Secured Parking Place: Security becomes a huge issue
regarding parking. User wants a safe place to park his/her vehicles. That’s why it is necessary
to find a parking area with secured place. In our apps data we will provide and track
continuously those areas to keep an update to user about it.
▪ Live feed of Parking Space Availability: Another issue regarding parking is capacity. We
find places but it may be fully occupied. It becomes a hazard also. So we will provide user
about live feed through google maps regarding the current situation on different parking area.
▪ Easy Communication between Renter and Lender: We also want to give user information
regarding garage in both commercial and residential area. Any owner can put rent
announcement their and interested person can communicate through it.
▪ Customized Data According to Parking Demand: In our city we generally see the demand
for public parking areas vary from time to time. Working hour is the pick time which is the
day time. We see the demand goes less in night time. So we will customize our data and
provide it to the user in accordance to it.

 Design & Feature

There will be features like GPS, Web Cams, Parking Location, Maps, Real time feeds, User
feedback regarding the parking area, Traffic in the road, appropriate time need to reach the
nearby parking area etc.

GPS: The app will have GPS system tracker. User need to turn on their location on their device
so that we can track the current position of the user and provide him/her the real time
information regarding a parking place.

Security Cams/Web Cams: we need data from security cameras in nearby parking areas to
provide user real time information. We know there will be hazard to find data regarding that for
less security cameras in different areas but for further data transactions we will collect data from
Google earth’s satellite feeds and Google maps feed etc. we may need user permission to use
his/her web cams for providing better positioning systems in and out. But we will be committed
to our user regarding security.

Parking locations: when user will login our apps giving information regarding his/her current
positions he/she will be able to view available parking areas nearby. The information will show
up in Google maps. The areas position will also show the current capacity of vehicles.

Garage information: any garage owner will be able to give rent announcement using this app
both for commercial and residential areas. Any interested person can response in accordance to
it.

Time to reach the available area: we will provide real time feeds regarding the current traffic
situation through Google maps and calculate an approximate time to reach there. It will be
helpful to the user to act accordingly.

Social media transactions: user can reach and connect his/her social media accounts to this app
so that one can easily give his/her valuable feedback regarding the service of the apps. Our
customer feedback will be our main assets to develop the app more user friendly and valuable to
the user. So it’s a necessary feature in order to it. Regarding the design the app will be very much
user friendly. The app size will be light in size (not need much storage) and will be committed to
protect user data secure.
 Picture – Sample of a digital parking apps

 Key points regarding the design:

▪ We will develop the apps for android currently. It will be free to download from play
store. On the other hand it will not take high storage on the device. The apps itself will
consume less ram on the device and it will be user friendly.
▪ In the app our main focus will be on core features like navigation on map, GPS, current
traffic situations, dashboards, social media integration etc. so we will put these features
first on the app. There will be menu option and different tabs for switching to different
options.
▪ We will always act accordingly our target audience. For this the app will consume less
data as soon as it can. The internet connectivity is needed but we will try to minimize the
data level as possible as can.
▪ There will be premium feature on the apps. Such as: using the apps incognito mode
without showing ads. Security is big concern nowadays. So we will follow guidelines on
security in today’s business intelligence to make it more secure. We will not take any
data from the user for unethical purpose. It will be clearly mention in our term of policies
and privacy policies.
▪ The app will be designed in such a way that user from different location can accumulate
the service without any network traffic hazard. There will be continuous flow of data
management among the user and the infrastructure.
 ▪ User will be able to log in by just providing his/her phone number. He/she can have the
options for additional options like email address, age, gender etc. to provide but it will be
not compulsory.

The Business Model

 Target Market:

Initially app will be launched in Dhaka city. In Dhaka city people commonly face road
congestion for improper parking space. Often car and bike owner gets police case for illegal
parking on streets. This app brings the solution to those people who are suffering from this
problem. App will provide real time update based on gps location and availability of parking
space.

Self-driven car owners, middle aged people from age 30 or above, businessman, corporate and
educated tech savvy people will be our primary focus at the beginning of the app launch.
However, app coverage will be added to other major cities like Sylhet, Chittagong other cities
depending on app analytics. The app is targeted for following segments.

 Demographic segmentation: Age group from thirty to above of both male and female
gender. Socially upper middle class who can afford car or have the facility to drive or ride car
from office are included as our target customers. Though in Bangladesh very small number
of students who drives their own car will also be considered in our target customers. Pathao,
Uber and other app based car drivers will is also considered.
 Geographic segmentation: Firstly we will be covering Dhaka city. Then gradually we will
extend our service to other major cities. We will be focusing major office and business based
cluster location, hospitals, schools, super shops & shopping malls. Many offices, business
organizations, schools, super shops, hospital, airport, event like trade fair concert, bus stand
does not have parking facility or limited capacity of parking. Based on those location app
will show real parking space to those people. As we have a short number of competitors and
 they have less in number like one of them known as “Parking Koi” but unfortunately they
don’t capture the market and also their target customer as well.
 Psychographic segmentation: A group of people those who are educated and tech savvy,
those who use smart phone and always interested to use app for every day necessity to find
solution. The app is targeted to the people who are independent, those who want a safe and
secure place for their car parking without much hassle. There are people looking for digital
payment facility without carrying cash, they can do card payment via debit or credit card
payment from app.
 Positioning

The app ‘Parking Finder’, the name itself gives a vibe that it can help customers to save time at
the same they will feel reliable and affordable and easy to use. Ensuring safety and security with
quality navigation will real time update. Part from finding convenient space for parking we want
to position the brand as an affordable and reliable to our target customer.

 Competitive Analysis

According to the report published by BRTA on April 2019, there are 34010 jeeps, 69588
microbuses, 469888 motorcycles and 247324 private cars registered in Dhaka city till 2018. The
report also indicates that the rate at which the new vehicles are registered each year is extremely
high considering the area of Dhaka city. So, we can see that the app has a huge potential
customer base. On the other hand, managing parking spaces in this small and congested city of
Dhaka poses a huge challenge since the capacity of the parking spaces in most establishments in
Dhaka city is inadequate. Therefore, to gain the competitive advantage, we need to utilize those
inadequate number of parking spaces in Dhaka city as efficiently and conveniently as possible
through this app.

The detailed competitive analysis of this app is as follows-

1. Competitive Rivalry: There are few apps, NexParc and Parking Koi, for parking solution in
Bangladesh which has been operating over a year. Besides, there is a new app called YES
parking which has been launched recently. Based on our researches and the reviews from
customers on different websites and social media, it is evident that these apps are not popular
as they do not operate all over Dhaka city and the parking spaces they offer are very limited
 which results in service failure to the customers. Besides, many people reported these apps
are not user friendly and the registration process is quite lengthy. On the other hand,
individuals who want to enlist their parking spaces in the apps have to go through a much
hassled process for which they gave up. So, in short, we can say that the apps for parking that
are available now failed to attract customers and they failed in their promotional activities too
as few people in Dhaka city has ever heard of these apps.

We can easily exploit the benefits of these circumstances by making the app user-friendly,
making the registration and enlistment process easier and hassle-free. But, most importantly,
we need to ensure adequate number of parking facilities for our customers which is a big
challenge in this small and congested city of Dhaka. Apart from the traditional individual
enlistments through app, we will also affiliate and get in a partnership with real-estate
companies, big shopping malls, and establishments with huge number of parking facilities,
local welfare associations and apartment owners’ associations to ensure effective and
efficient utilization of parking facilities. Moreover, we will introduce available time slots so
that the authority or the owner can set the time of the availability of the parking facility
which will ensure more efficient utilization of parking spaces, Besides, ensuring adequate
parking facilities, we will undergo extensive promotional campaigns through social media to
use this app and make them aware how illegal parking contribute to road congestions and
road safety.

2. Supplier Power: In this app, the suppliers are mainly the individuals, groups or institutions
who will provide and enlist the parking facilities to the app. basically, anyone or any
institution or group that own parking facilities are our potential suppliers. The major
challenge in Dhaka city and in this app is to ensure proper adequate parking facilities to the
customers. So, the suppliers have to play a major role in the success of this app. We will
make the enlistment process of the parking facilities easier and hassle-free for the suppliers.
Unlike other apps, we will also affiliate and get in a partnership with real-estate companies,
big shopping malls, and establishments with huge number of parking facilities, local welfare
associations, apartment owners’ associations and office buildings. We will also add the
feature of setting time slots for the suppliers to leverage more control of their parking
facilities, such as a person while on office can rent his home parking facilities through the
 app and set the time, again the office buildings can offer parking facilities in the evening
when the parking demand for shopping centers and restaurants are high. The suppliers, in this
app, are not only generating money by renting the parking facilities, but also they are
contributing to a solution of a big problem in Dhaka city.

3. Threat of new entry: There are many app based services now getting popular in
Bangladesh, especially in Dhaka city like Pathao, Uber, Shohoz in transportation industry,
they are providing rented bike and car solution through app, day by day the number of user
also increasing significantly. These transportation industry app can be significant threat as
they can bring easily bring this parking feature inside their app. So threat of new entry in this
parking app industry is very high. However, we do not have other features like renting bike
car we are specialized on parking solution and we keep this branding as ultimate parking
finder solution and we will be getting first mover advantage in this industry and most of the
deals will be captured by us initially.

4. Buyer Power: Competitor in the market does not have full coverage in Dhaka city but we
will be covering whole day city map initially to give customer support with adequate parking
facility in every corners of Dhaka city with our affordable pricing for any given services.

5. Threat of substitution: Those shopping malls, hospitals, schools and other establishments
already having their own adequate parking space will not affiliate with us. In these places we
might lose our pace of affiliation, however, we will knock them different ways to come with
us with any sort minimum negotiation.

 Business Model Analysis

Parking Finder is a social e-commerce based traffic & navigation service app based on the
largest community of drivers sharing real-time road info and contributing to the “common good”
out there on the road. By simply driving around with Parking Finder open, users inertly
contribute traffic and other road data.

● Solve Parking issue: In our country the parking issue is a common phenomenon. Large
number of vehicles is found wrong parking beside the road, in front of private property which
is not reasonable issue. Parking Finder will be the first App by which the user will get the
 best parking related information nearby or the unknown destination for vehicle users. As it’s
not only information based App but Map will be appear, the users will get the best service
from our end.

● Serving the community by free MAP: Parking Finder will be introduced as a social service
for the community, by which the user can get the help while using their vehicle. They will
get the map of the destination & more importantly parking related issue. This will be free of
cost for the users by which they can get the best solution in the road and parking.

● The best solution for route:

Parking Finder is a community base GPS navigation App. The main purpose will be to provide
drivers with the best route possible. When users run into delays in their route such as traffic jam
& parking zone the user will get notified instant through our App. Based on this real time data,
the algorithm updates the map and driving directions for other drivers. Using data coming
directly from other drivers is something that other navigation apps are not able to do yet.

● Make easy the ride: Users can find parking easily along with gas stations, restaurants, and
other interesting places via the app, because this will not only parking information desk as we
are looking forward to shape this App as a Map not only for Bangladesh but also globally. As
the app is completely free to use, Parking Finder will find ways to generate revenue. As
 Google will be acquired it, it will be a logical step to use ads as a revenue stream. Local
businesses can buy ads to bring drivers to their business.

● Connecting people & drive together: Connecting drivers with people that need a ride will
be the motto of Parking Finder. In comparison with all the other ride-sharing companies
existing currently, Parking Finder will not connect professional drivers only but every
vehicle users. Parking Finder will connect people to drive to work together and facilitates
splitting the costs of gas and tolls, reducing the number of cars in the streets which is a
common phenomenon for our country.

Financial Analysis

 Start-up Costs: Based on our research and judgement we have prepared an estimated start-
up cost of our Parking Finder business. There are many things to consider, such as – app
development cost, legal expenses, office rent, salaries & wages, advertising & marketing
costs and operating and maintenance (O&M) cost etc. The start-up capital will be used to
cover these expenses for first one year.

Here is the detailed list of our startup costs:

Financial Pro-forma of Parking Finder (Estimated)

Start-up Expenses Amount in BDT
Software Expenses 550,000
App Development Costs 400,000
Website Costs 300,000
Office Rent 1,800,000
Office Supplies 50,000
Salaries & Wages 3,000,000
Advertising & Marketing Costs 1,500,000
Operating & Maintenance (O&M) Cost 200,000
Legal 1,000,000
Insurance 300,000
 Miscellaneous 300,000
Total Start-up Expenses 9,400,000

 Financial Analysis: According to our estimates, Parking Finder will require BDT 9.40
million (estimated) to cover its costs for the first one year. We intend to maintain a healthy
financial position over the next five years. The following plan summaries the financial
development of our company. The business will be initially financed by a BDT 50,00,000
five-year term loan from a bank and owner’s investment of BDT 50,00,000 (BDT 10 lac each
owner’s personal investment). The source to pay off the loan will be the cash flow generated
from operations. The company will also finance growth through cash flow. After an initial
period of five years, the company is expected to make a further expansion. To do so a bank
loan will be required to finance the new expansion, in addition to personal investment.

 Breakeven Analysis: For our break-even analysis, let us assume the normal space demand

and capacity will be 1000 parking spot per month. Based on our assumption, it will take 4

years for the company to come to a Break Event Point if the company is selling 509 parking

space per month at a rate of BDT 2,000 per parking space. Since our normal operating

capacity is expected to be 1000 parking space per month and the average projected sales of

BDT 2000 per month, then at only 50.9% of operating capacity we are expected to meet

break-even point in 4 years. Therefore, we believe that our company is likely to easily reach

and maintain profitability.

The breakeven point analysis has been elaborated below:

 Total Fixed Cost – BDT 8,850,000

Fixed cost in a month – BDT 8,850,000/ 12 = BDT 737,500

 Total Variable Cost – BDT 550,000

Variable cost per unit (Parking lot) 550,000/ 1000 = BDT 550
 Calculating the Breakeven point in units:

Fixed cost per month / (Selling price per unit – Variable cost per unit)

= 737,500/ (2,000 – 550) = 508.6206897

To round it up we can say the breakeven point in units for the company is 509 parking lots.

 Payback Period formula = Investment cost / Cash flow per year (Total revenue – Total

cost)

If we are selling 509 parking lot in a month total monthly revenue will be 509 * 2000 = BDT

1,018,000

 Total Yearly Revenue = 1,018,000 * 12 = BDT 12,216,000

 Cash Flow per year = 12,216,000 (Total revenue) - 9,400,000 (Total cost) = BDT 2,816,000

 Payback Period Calculation

= Investment cost / Cash flow per year

= 9,400,000 / 2,816,000

= 3.34 (To round it up we can say 4)

Summary:

It will take 4 years for the company to come to a Break Event Point if the company is selling 509

parking space per month at a rate of BDT 2,000 per parking space.

 Operating and maintenance Costs: Operating and maintenance (O&M) costs cover such
ongoing expenses as that keeps the business running. It is better to reserve some money for
maintenance and repairs etc. It iss assumed that O&M costs would be approximately BDT
2,000,000.
 Revenue Models

This part of the project focuses on the potential parking revenues the business could earn.

 Potential Parking Fees: An important consideration in the development of a potential paid

parking program is to set the amount of the parking fees to be paid. There will be two types
of parking options. Public and Private. In Public Space, there will not be any charge
applicable. However, it cannot be rented on monthly basis. This option will not ensure you
will have the same spot available the next day for parking. Whereas, private parking space
will be chargeable for lenders. It will be available to rent on hourly, weekly, monthly basis.
We plan to charge the renters BDT 2000 (average) per month per spot. A minimum and
maximum charge will be fixed to charge the lenders by renters. We have to keep in mind that
the fees that the renter will pay the company should be set at a price which is enough for
Parking Finder to earn revenue, but not too high that renter cannot make any profit by renting
his/her free space. As a result the app will not have enough space to offer its users and they
might park their car in nearby neighborhoods on their own.

 Advertising Revenue Model: A publicizing bolstered income model is a business approach

that accentuates the offer of promoting as a significant wellspring of income. This structure is
generally unmistakable in customary communicated and print media, just as online media.
Media organizations for the most part gain income from publicizing, client memberships or a
blend of the two.

SWOT Analysis

Strengths

⮚ Rearranges installment and assortment

⮚ New to the marketplace and easy to use

⮚ Decreases requirement for implementation work force

⮚ Serious cost, upgradeable

⮚ Disposal of stopping entryways

⮚ Extraordinary assistance application

⮚ Can be scaled up broadly and universally

⮚ Creative application that will make finding a parking space brisk, modest and simple

⮚ Has no rivals in the area/network/city.

⮚ Moderately modest help application and time saving

⮚ Preliminary rendition will permit clients to know whether they need to utilize the
administration.

⮚ There are a great deal of room that can be created

⮚ There are numerous understudies and resources.

Weaknesses

⮚ No brand acknowledgment in the commercial center

⮚ Capital costs for strong penetration and new software

⮚ Innovation isn't yet recognizable to clients

⮚ No earlier administration experience of the group in this space

⮚ Absence of business contacts

⮚ Unpracticed administration and representatives

⮚ Significant expense fire up and advancement

⮚ High possibility of breakdowns, glitches or bugs

⮚ Not every person has a cell phone or an android equipped for utilizing the administration.

Opportunities

⮚ Extend broadly and globally

⮚ Collaborations with other GPS operated Apps

⮚ Actualize online life to help advance the application

⮚ "In App" promoting (significant income source)

⮚ Can grow high due to the wide target market

⮚ Set up a decent and dependable help application and improve it however much as could
reasonably be expected

⮚ Populace development prompting more vehicles

⮚ Vital organizations with part the executives organizations

⮚ Securing by Federal APD as a potential leave technique

Threats

⮚ Restricted monetary financing for fire up expenses and dispatch of application

⮚ New contenders are probably going to offer same assistance in different urban communities

⮚ Not very popular in the beginning period with low budget

⮚ Government and Other guidelines

⮚ Campaigning bunches affecting shopper observations

⮚ Vulnerability of accomplice intrigue

⮚ Switch over expense to the parking garage proprietors

⮚ Risk of different organizations to present a comparative arrangement before us.

Future directions - Utilizing the understanding from SWOT analysis

As our product is service oriented application software, it has the bright future not only for the
service provider but also for the consumers. Day by day the system of the world is getting
upgraded technologically. People are getting depended on the smart devices, which is making the
lifestyle of a person easy. As our project is on a application software which is very useful for
country like Bangladesh, definitely has bright future.

Bangladesh is an over populated country which is known by all, but here in Bangladesh the
density of vehicle is also very thick. The roads of the Dhaka city are totally unplanned and
parking is very limited, unplanned and very few in option. Most of the time the parking issue
arises when a person wants to park his or her vehicle for a few minutes at least face huge
dilemma. In Bangladesh it can be seen that most of the vehicle park beside the busy road, which
is a no parking zone. So, in the future people’s purchasing power will be increase and the
number of vehicle will also increase and thus the need of parking place will also increase. If
someone knows where to park the vehicle before he or she start the journey it will make the
system very easy and less time consuming finding parking place.

If “Parking Finder” application can make any positive effect on the consumers of it, then in
future it has a global impact. If we make it collaborate with other GPS operated Apps and spread
globally then it will be a huge success for us. Like, if someone from our country goes to another
country for the first time, through our app he or she can easily get help without any hassle. The
parking App is not only a parking App it’s a map also, because when the parking area will show
in the screen it will show the entire map and provide direction, so it has a future where it will be
expand in the combine form of perking App and Map.
As the target market is not a particular group of people like niche market, and then the wide area
and number of target market is ahead of us to serve through our App.

One vital thing of our App is the more people use this, the more develop it can be. If the real
time update can be found from the consumer and feedback also, then the more upgraded service
it will be able to provide. If the technology get developed then more vehicle will be add, which
may not sound good but who does not want a personal vehicle and definitely when there will be
less security and parking issue.

Basically, the future of “Parking Finder” indicates towards moderate help to make easy of
vehicle users and also time saving issue. The using feature of this App will be very easy and
understandable, which is called user-friendly. And as a pioneer in this segment of service it will
definitely have so many chances to develop as per the requirements of consumers to make it
more flexible. This App we are thinking of is not only a profit making center, if it will contribute
a little help in the society and make any difference then the future will be definitely upward
sloping, As Business is not all about money always; society, people also have the right to get
something which add value to their daily life.

Conclusion

“Parking Finder” is an App which will be an exceptional contribution in the Application based e-
commerce service sector. In this segment of service there are many kinds of App which can give
the directions, exact location of a particular establishment. But there is a huge sector which is
overlooked till now. AS we have discussed the vehicle density of our country, it’s not a domestic
issue any more; there are many countries where vehicle use rate is increasing. But what if these
vehicle need to be place for some time off a bit longer, for this reason parking is there. In most of
case in our country the parking’s are full or some people does not know where parking’s are in
around the destination. Parking Finder will be the first contribution on this issue solving matter.
This App will be provide the exact parking location which will be very user friendly, helpful to
 the users and make easy, tension free ride-park and ride. While doing this project it is found that
there will be features like GPS, Web Cams, Parking Location, Maps, Real-time feeds, User
feedback regarding the parking area, Traffic in the road, appropriate time need to reach the
nearby parking area. Target market are the people who has vehicle and want to make the whole
ride from the starting point to ending point easy. There will be no threat of competitors in the
beginning, but transportation industry Pathao, Uber, Shohoz etc. app can be significant threat as
they can bring easily bring this parking feature inside their app. Customer’s relationship part is
important and one of the major parts after providing service related product, because any
institution or group that own parking facilities are our potential suppliers. But through many
analyses it has found that the future of “Parking Finder” is good because it will not be money
snatching scheming service but social contribution will be the major part of this service.

Reference

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