Financial

Financials:

Revenue Generation:

Revenue can be generated by charging the service offered to the bank. The software and other support during installation would be a major cost and can be sold to the interested banks. In future, if the company gets a good business, then the service for the specific institute can be provided to the bank which secures the tender agreement floated.

Apart from this a reasonable maintenance cost can also be charged per month/annual basis and the profit shares can be bargained based on the competitions and number of institute users of the service.

Expenses:

A prototype can be developed with just the cost incurred for the software development, with 5 developers working for 1 months, 8 hours a day -> 5*1*20*8*$10 = $8000= 4,80,000

Advertising Cost : 2,00,000 (sponsoring for few college-fest)

Miscellaneous Expense : 3,00,000

Total : 10,00,000 (approx)

For hardware costs are not included as it can be made after receiving the initial payment from banks.

Financial Projections:

Year | 2013-14 | 2014-15 | 2015-16 | 2016-17 (Break Even) | Net |

Revenue | 0 | 5,00,000 | 13,00,000 | 24,00,000 | |

Expenditure | 8,00,000 | 7,00,000 | 5,00,000 | 5,00,000 | |

Net | -8,00,000 | -2,00,000 | 8,00,000 | 19,00,000 | 17,00,000 |

Exit Strategy:

If the business model gets an instant success and popularity, then it would be a good idea to cash in from the idea/firm by selling it to the highest bidder for a bargaining rate, as this idea could be very well used by such big players to make their own integration mechanism. However, the timing needs to be such that, it would fetch the maximum bargain. However, if the instant success or response is not achieved, then the first-mover advantage can be used to perform well in the market.

Other Social and Environmental benefits:

Customer could get access to information about their transactions and the transaction from the theft card can be tracked when used by the transaction message...