oep team tech_preneurs

Technology Entrepreneurship course (Prof .Eesley, Stanford

online) Venture Lab

Assignment submission- Opportunity Execution Project

Team – TechPreneurs

Team Members : Prashant Sahay , Sebastian Almnes

http://www.venture-lab.org/venture/view_profile/92829

Genesis of the idea and the onset of our journey …

The gap 1. About 95.76 % population of a developing economy and about 76.62 % of a developed economy is not proficient in finance literacy.2.The situation is worse in rural segments and for women where about 98 % and 96 % of total population is not literate for finances respectively. ( developing countries).3.People have no time to learn of finances .4.Students are not taught basic finances at schools.5.People want to learn finance but they don’t know how? Where? When ?what? and why ?

The idea 1. We intend to impart education of finances to masses by following methods :- i. For women – educational channels ,internet , print materials. ii. For rural masses- direct teaching by village self help groups, print materials. iii. For pre –university students- internet, school competitions. iv. For working professionals- Internet ,our expert help group.2. We have developed our own website which will be an educational site with additional features like gaming,

trading, consultancy, social financial interactions, forums etc. to name a few.

*internet =finfreedom.com

Our advanced level product prototype…

Stock Alert :

Games and contests

* Sample site taken from internet to illustrate the idea of our prototype

Our value proposition1. Help millions learn finance in simple and easy language in which they can understand the concepts and apply them in all basic and daily transactions.2. Have holistic approach towards finance to make use of it in daily walk of life.3. Provide innovative interactive means using articles, videos. podcasts. slideshows. images, etc to help everyone easily grasp concepts.4. Penetration in rural area which is otherwise isolated with respect to financial knowledge and to build a large network of co –owners and collaborators of our company.

How do we intend to achieve our value proposition.

1. Multi level marketing - To attract new members and retain existing ones.

2. Investment in the company- One can buy stake in our company for as low as $1 . By virtue of multi layered membership escalation , the stake of all existing members grow with each new member in the chain. 3. Gaming/contests/puzzles to attract masses not interested in finance but in entertainment . 4.Personalized end to end solutions to members – a. Members driven – Members ask and other members reply . Forum based. b. Expert driven- Members ask and solutions provided by our panel of experts/consultants.

Key features of our literacy site : finfreedom.com

It is based on concept of multi level marketing wherein one customer recommends the website to other . Customer 1 can buy stake in our co. by investing some money .After that ,he needs to get others to invest in our co. and based on the no. of customers made by 1st customer and his subsequent links, the share of all in the chain will keep on increasing.

It caters to needs of students in high schools .This has been an untapped segment so far and we propose to attract this customer base by including games, reward points, goodies, free educational trip etc. to students who perform well over weeks.

We intend to educate masses in rural regions primarily because about 65 % of population of emerging nations still reside in rural areas. We plan to attract them by organizing village fairs, weekly educational classes in village community centers.

We have also identified armed forces ,small businessmen and retired professional as our potential customers .We intend to contribute to the rehabilitation of retired personnel and army veterans. We would offer then our” know all “ software at throw away prices as a part of our corporate social responsibility.

Key features of our literacy site : finfreedom.com

Though we intend to educate the masses through online media primarily, we will also resort to franchise model of business .this will bring in cash for us which can thus be applied in further growth of the project.

We intend to host weekend lectures on all major FM radio channels.

We intend to target the departmental stores and stationaries to stock and sell our learning tools like workbooks bearing key fin concepts

For ladies /households ,We intend to partner with DTH TV operators to include our educational software in their package so that ladies could learn at ease in home while watching TV.

For students or youth not interested in finance but in entertainment, we intend to attract their attention by advertising our product on popular entertainment sites like fb, youtube etc. .we intend to trap this segment by introducing fun games like finance-ville etc.

No joining fee. Nominal software usage charge. Redeemable reward points.

We also intend to provide expert consultancy solutions (end to end) by one user to other. The idea is that on a forum a member may post his problem(s). This problem will be open an any other viewer can see it and provide his solutions . All solutions will be ranked/graded by other members and the solution getting maximum votes/likes will get reward points.

We intend to provide professional consultancy solutions for critical problems through our pool of experts. This will be chargeable.

Business Model Canvas : Promotion of finance literacy and knowledge to masses Canvas submitted By Team " TechPreneurs"

Member(s) : Prashant Sahay

Key Partnership:-1. Major online education channels on

youtube ( viz.,khan academy) and other sites.

2. Village community centres3. Financial institutions like SEBI,

BSE, NSE,KOSPI etc. 4. Financial /trading companies and

stock brokers5.Publishing houses.

6. Banks-websites7.General stores.

8.MBA institutions

Key Activities:1. Create contents which explain the

basics of fianace catering to sensiblities,needs,intelligence,

availablity and interest of its target segments.

2. Finance related games,puzzles,questions and contests

to attract the user.3. Knowledge sharing

blogs,discussion forums, quary addressal

4. Create videos /post links that bear knowledge related to understanding of

savings, investing, cashflow etc5. Rural empowerment with the help of company created finance education

softwares.

Value Propositions :1. Help millions learn finance in

simple and easy language in which they can understand the concepts and

apply them in all basic and daily transactions.

2. Have holistic approach towards finance to make use of it in daily walk

of life.3. Provide innovative interactive

means using articles, videos. podcasts. slideshows. images, etc to help everyone easily grasp concepts.

4. Penetration in rural area which is otherwise isolated with respect to

financial knowledge and to build a large network of co –owners and

collaborators of our company.

Customer Relationships:1. Direct customer relationship

through website2.Various offers to retain and maintain

mature customer relationships.3.Customers becomes part of the mission by means of donation for

charity.4. Customer can buy stake in the

organisation .5. Customer grows with the help of

multi layer/level marketing strategy that we shall apply.

Customer Segments:-1. High school students who are

primed to learn the basic nuances of finance.

2. Youth who find it difficult to comprehend finance basics .

3..All undergraduate Students 4. Housewives and ladies who want to

learn finance from comfort of their homes.

5. Elderly retired citizens who want to learn finance for stock trading.

6.Working professionals who can afford learning on weekends.

7.Rural students (in community centres).

8. Denizens who hang out on internet for fun/entertainment/monetary

rewards.9. Businessmen

10. Armed forces

Key Resources : 1. Our partner websites.

2. Our partner Companies3. Students

4. Teachers and professors5. Stock agencies/agents

6. Finance professionals and users7. Blog sites, discussion forums.

Channels :1. Our own websites2. Partner websites.

3.online ad sites.4.. Youtube. twitter. facebook (social

media)5. Newspaper advertisements

6. Radio7.. Television ads

8.Word of mouth -people to people9.Educational and financial

institutions10. Hoardings and banners.

Cost Structure : 1. Domain name =$ 10 per year 2. Hosting cost= $200 per year

3. Content writers= $ 200 per year 4. Marketing/ Advertising = $ 3000 per year

5. Overhead costs:- $ 150 /year 6.Electricity and other resources :- $ 50 /year

7.Misc:- $ 200 /year

Total= $3800 per year (approx)

Revenue Streams:1. Workshops in partner companies and affiliates.

2. Customers buying rights in our company.3.Software sales.4.Membership fee

5.Google ads (via adsense)6.Francise sales.

7. By selling trading platforms from our website8.Sell third party products and franchise fee.

9.Seminars and classes for finance courses10.Consultancy

Business Model

Strategy 1

S.no. Parameters to judge the viability of my marketing ideas Multi-level marketing

1 Have you taken feedbacks from all media possible, on this idea? yes. Interviews, surveys and online questionnaire.

2 What is the estimated cost incurred on its launch? nominal

3 How big is your customer base? (estimate) 10 million with a growth rate of 3-5 % per annum.

4 What is your strategy for launching it ?

1. We will ask the potential customer to invest in our co. with $1 and thus he purchases a small share in our company.

2. With the help of multi level Marketing, his share grows with the number of people he brings into the company for investments.

5 Practical/feasible? yes6 Media for it? website, print, Word of mouth7 Measures to reduce on cost of marketing? none since expense on it is low.

8 Key Suggestions from potential end users ?

1. must check if the cash inflow is always greater the cash out flow.2. make it lucrative by attaching this scheme to rewards/badge points.

3.benefits only if implemented on large scale. So you need to use this tool vigorously and exhaustively.

9 Incorporated changes in marketing strategy based on feedbacks? yes. Share ratio decided based on positive balance of cash flow.

10 Differentiating factor ? never been tried in fields of financial literacy.

11 Potential revenue that this strategy can generate/year? $ 200 million

12 Loopholes ? it may collapse if > 100 million people invest within one year.

13 Remedial actions to plug the loop holes? Offer it by invitation for first few months to check on huge influx of people.

14 Resources that you will need? web media, human developers, paypal , banking institutions

15 Priortity ? 1

Strategy 2

S.no. Parameters to judge the viability of my marketing ideas Reward points

1 Have you taken feedbacks from all media possible, on this idea? yes. Interviews, surveys and online questinonaire.

2 What is the estimated cost incurred on its launch? nominal



1. We will ask the potential customer to become members of our web portal (free of cost) and win reward points for :

1. question/answers2.consultancy solutions

3.software developments4.gaming

5.other activities2. Rewards points redeemable for goodies.

5 Practical/feasible? yes6 Media for it? website, print, Word of mouth7 Measures to reduce on cost of marketing? none since expense on it is low.

8 Key Suggestions from potential end users ?

1. must check if the reward scheme is always in favor of companys' revenue inflow.

2. make it lucrative by attaching this scheme to multi level marketing.

3.benefits only if implemented on large scale. So you need to use this tool vigourously and exaustively.

9 Incorporated changes in marketing strategy based on feedbacks? yes.reward points decided based on positive balance of cash flow.


11 Potential revenue that this strategy can generate/year? $250 million




15 Priortity ? 2

Strategy 3

S.no.

Parameters to judge the viability of my marketing ideas Collaboration with village self help groups

1Have you taken feedbacks from all media possible, on this

idea? yes. Interviews, surveys and online questinonaire.

2 What is the estimated cost incurred on its launch? $ 1 million per year



1. We will approach the village self help groups and explain it to them, The incentive for then would be company shares.they should explain the villagers

about :-

1. question/answers

2.consultancy solutions

3.software developments

4.gaming

5.other activities

2. Rewards points redeemable for goodies.

5 Practical/feasible? yes

6 Media for it? print media, word of mouth, local level meeting

7 Measures to reduce on cost of marketing? none since expense on it is low.

8 Key Suggestions from potential end users ? 1. Periodically check on effectiveness of this marketing strategy.

2. make it lucrative by attaching this scheme to self help group in villages.

3.benefits only if implemented on large scale. So you need to use this tool

vigourously and exaustively.

9Incorporated changes in marketing strategy based on

feedbacks?yes.based on feedback to approach village self help group instead of village

panchayats .


11 Potential revenue that this strategy can generate/year? > $1 billion




15 Priortity ? 2

Strategy 4

S.no.Parameters to judge the viability of my marketing

ideas

Interactive TV channels on various satellite tv service providers

1Have you taken feedbacks from all media possible,

on this idea? yes. Interviews, surveys and online questinonaire.2 What is the estimated cost incurred on its launch? $ 5 million per year3 How big is your customer base? (estimate) 35 million with a growth rate of 4.5- 6.5 % per annum.

4 What is your strategy for launching it ?1. We will approach the satelllite tv providers with our educational programmes

epecially designed for women .These programmes will have:- 1. question/answers 2.consultancy solutions 3.software developments 4.gaming 5.other activities 2.Rewards points redeemable for goodies.5 Practical/feasible? yes6 Media for it? print media, word of mouth, TV ,advertisements7 Measures to reduce on cost of marketing? start with broadcast in afternoons (women prime time slot)8 Key Suggestions from potential end users ? 1. Periodically check on effectiveness of this marketing strategy.

2. make it lucrative by attaching this scheme to self employment and empowerment

of women.

3.benefits only if implemented on large scale. So you need to use this tool

vigourously and exaustively.

9Incorporated changes in marketing strategy based

on feedbacks? yes.Changed strategy from massive to selective programme broadcast.10 Differentiating factor ? never been tried in fields of financial literacy.

11Potential revenue that this strategy can

generate/year? > $1.5 billion 12 Loopholes ? dependence on TV satellite providers13 Remedial actions to plug the loop holes? can we go for joint venture with service providers?14 Resources that you will need? web media, human developers, paypal , banking institutions15 Priortity ? 1

Strategy 5

S.no. Parameters to judge the viability of my marketing ideas

Online stock trading portal

1Have you taken feedbacks from all media possible, on

this idea? yes. Interviews, surveys and online questionnaire.

2 What is the estimated cost incurred on its launch? $ 2 million per year

3 How big is your customer base? (estimate) 35 million with a growth rate of 4.5- 6.5 % per annum.

4 What is your strategy for launching it ?1. We will approach the stock trading platforms for working professionals . This will also

have:-

1. question/answers

2.consultancy solutions

3.software developments

4.gaming

5.other activities

2.Rewards points redeemable for goodies.

5 Practical/feasible? yes

6 Media for it? print media, word of mouth, TV ,advertisements

7 Measures to reduce on cost of marketing? start with stock trading and stock news only.

8 Key Suggestions from potential end users ? 1. Periodically check on effectiveness of this marketing strategy.

2. make it lucrative by attaching least brokerage charges

3.benefits only if implemented on large scale. So you need to use this tool vigorously and

exhaustively.

9Incorporated changes in marketing strategy based on

feedbacks? yes.Changed strategy from massive to selectivestock trading


11 Potential revenue that this strategy can generate/year? > $5 billion

12 Loopholes ? dependence on trading platforms

13 Remedial actions to plug the loop holes? can we go for joint venture with service providers?


15 Priortity ? 3

Customer segments and Revenue model

Customer Segments:-1. High school students who are primed to learn the basic nuances of finance.2. Youth who find it difficult to comprehend finance basics .3..All undergraduate Students 4. Housewives and ladies who want to learn finance from comfort of their homes.5. Elderly retired citizens who want to learn finance for stock trading.6.Working professionals who can afford learning on weekends.7.Rural students (in community centres).8. Denizens who hang out on internet for fun/entertainment/monetary rewards.9. Businessmen10. Armed forces

Revenue Streams:1. Workshops in partner companies and affiliates.2. Customers buying rights in our company.3.Software sales.4.Membership fee5.Google ads (via adsense)6.Francise sales.7. By selling trading platforms from our website8.Sell third party products9.Seminars and classes for finance courses10.Consultancy

Key partnerships and customer relationships

Key Partnership:-1. Major online education channels on youtube ( viz.,khan academy) and other sites.2. Village community centres3. Financial institutions like SEBI, BSE, NSE,KOSPI etc. 4. Financial /trading companies and stock brokers5.Publishing houses. 6. Banks-websites7.General stores.8.MBA institutions

Customer Relationships:1. Direct customer relationship through website2.Various offers to retain and maintain mature customer relationships.3.Customers becomes part of the mission by means of donation for charity.4. Customer can buy stake in the organisation .5. Customer grows with the help of multi layer/level marketing strategy that we shall apply.

Distribution Channels :1. Our own websites2. Partner websites.3.online ad sites.4.. Youtube. twitter. facebook (social media)5. Newspaper advertisements6. Radio7.. Television ads8.Word of mouth -people to people9.Educational and financial institutions10. Hoardings and banners.

Key Resources : 1. Our partner websites. 2. Our partner Companies3. Students4. Teachers and professors5. Stock agencies/agents6. Finance professionals and users7. Blog sites, discussion forums.

Key Resources & distribution channels

Profit and Loss Projection (3 Years)finfreedom.com

20122012 % 2013 % 2014 %

Sales $ 7,870 100.00% $ 11,110 100.00% $ 15,557 100.00%Cost/ Goods Sold (COGS) 8,750 111.18% 9,406 84.66% 10,347 66.51%Gross Profit $ (880) -11.18% $ 1,704 15.34% $ 5,210 33.49%

Operating ExpensesSalary (Office & Overhead) $ 1,000 12.71% $ 1,075 9.68% $ 1,183 7.60%Payroll (taxes etc.) 500 6.35% $ 538 4.84% $ 591 3.80%Outside Services 1,000 12.71% $ 1,075 9.68% $ 1,183 7.60%Supplies (off and operation) 200 2.54% $ 215 1.94% $ 237 1.52%Repairs/ Maintenance 100 1.27% $ 108 0.97% $ 118 0.76%Advertising 2,500 31.77% $ 2,688 24.19% $ 2,956 19.00%Car, Delivery and Travel 100 1.27% $ 108 0.97% $ 118 0.76%Accounting and Legal 100 1.27% $ 108 0.97% $ 118 0.76%Rent & Related Costs 1,000 12.71% $ 1,075 9.68% $ 1,183 7.60%Telephone 50 0.64% $ 54 0.48% $ 59 0.38%Utilities - 0.00% $ - 0.00% $ - 0.00%Insurance 100 1.27% $ 108 0.97% $ 118 0.76%Taxes (real estate etc.) 300 3.81% $ 323 2.90% $ 355 2.28%Interest 1,000 12.71% $ 1,075 9.68% $ 1,183 7.60%Depreciation 500 6.35% $ 538 4.84% $ 591 3.80%Other expense (specify) 300 3.81% $ 323 2.90% $ 355 2.28%Other expense (specify) - 0.00% $ - 0.00% $ - 0.00%Total Expenses $ 8,750 111.18% $ 9,406 84.66% $ 10,347 66.51%

Cost benefit analysis

P& L statement presented here. Projected cash flow, financial ratio analysis, income statement, startup funds requirement, projected balance sheets and expense sheets can be shared with you on request.

finfreedom.comRequired Start-Up Funds for a New Business

Required Start-Up Funds Amount Totals Depreciation NotesFixed Assets

Real Estate-Land/rent $ 500 Buildings/rent 500 20.00 yearsLeasehold Improvements 100 7.00 yearsEquipment+software+hardware 1,500 7.00 yearsFurniture and Fixtures 100 5.00 yearsVehicles rent 50 5.00 yearsOther Fixed Assets 500 5.00 years

Total Fixed Assets 3,250

Operating CapitalPre-Opening Salaries and Wages 1,000 Prepaid Insurance Premiums - Inventory - Legal and Accounting Fees 50 Rent Deposits 500 Utility Deposits 100 Supplies 100 Advertising and Promotions 2,500 Licenses 100 Other Initial Start-Up Costs 500

Working Capital (Cash On Hand) 10,000 For existing businesses = Cash+Ppd Exp+A/R-A/P-Accrd Exp See Note below#

Total Operating Capital 14,850

Total Required Funds $ 18,100

Sources of Funding Amount Totals Loan Rate Term in Months Monthly PaymentsOwner's Equity 27.62% 5,000 Outside Investors 165.75% 30,000 Additional Loans or Debt

Commercial Loan -97.79% (17,700) 7.00% 84.00 $267.14 Commercial Mortgage 4.42% 800 8.00% 240.00 $6.69

Credit Card Debt 0.00% - 7.00% 60.00 $0.00 Vehicle Loans 0.00% - 6.00% 48.00 $0.00 Other Bank Debt 0.00% - 5.00% 36.00 $0.00

Total Sources of Funding 100.00% $ 18,100 $273.83

oep team tech_preneurs

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