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Mission
AppSuccess provides low-income students who are qualified to go to a four-year college with the means to get there. We eliminate the college application information gap by matching our Applicants with students from top colleges who guide them through the college application and financial aid process via our interactive online platform.

Theory of Change
If we provide low-income students with personalized college application assistance, then they will get into better colleges and have improved life options and opportunities.

Value Proposition
Our product creates value both to the Applicant and to society.

Value for Applicant

AppSuccess’s primary value proposition is to reduce the cost of achieving education to the Applicant. We do this in three ways:
(1) Reducing information costs: By making information that is relevant for college applications free and accessible for all high school students, AppSuccess allows both students and their parents to learn about the details of applying to, attending, and paying for college;
(2) Reducing application support costs: By providing low-income students with free college counseling services, AppSuccess gives them an opportunity to compete with their high-income peers who often have adult support and assistance with their applications; and
(3) Reducing dollar costs: By assisting Applicants to identify and apply for college fee waivers, scholarships, and grants, AppSuccess works to save each Applicant hundreds, if not thousands, of dollars to make college affordable.
In addition, because the end goal of AppSuccess is to get its Applicants into college, we offer our “customers” the added value that comes with a post-secondary education. Studies over the last decade have confirmed that college graduates reap significant benefits over those that stop at high school (College Board). Compared to high school graduates, college graduates:
· Earn nearly $1 million more over a lifetime;
· Have half the unemployment rate;
· Have one-third the incarceration rate;
· Require $800-$2,700 less in social programs each year; and
· Have more educated children.

Value for Society

The financial return to society for a program like AppSuccess is substantial. Not only does it provide intangible benefits to the Applicant in the form of increased exposure to diversity of ideas and cultures, but also to society in the form of economic benefit. A first-pass analysis suggests that the net present return on investment in an AppSuccess Applicant is over $45,000, the bulk of which is derived from the increased income open to college graduates and graduates of higher tier institutions. We expect this sort of return to attract strong foundation investment, especially after proof-of-concept.

FINANCIAL PLAN

Financial Overview

Business Model Description & Financial Targets

Our model projects that we will be cash-flow positive by our third year of operation. Our expenses will be driven mainly by web-development and personnel costs, and will gradually grow from $325,000 in year one to $650,000 in year six, as we double our headcount to accommodate increased web traffic and recruitment efforts. We will be financed mainly by grants and individual donations, and will slowly introduce additional revenue streams including advertising and corporate partnerships.

There are two key financial criteria to our mission: (1) that the application assistance always be provided free of charge to the Applicants, and (2) that we have a financially sustainable organization by year three of operation. Our projections achieve both of these goals (see Appendix).

Key Assumptions

Start-Up & Growth Expectations

AppSuccess will roll out in four Stages:

Stage 1 (estimated time: 1 year). We will launch the program with 90 Applicants and 90 Mentors. We will recruit Campus Leaders from three colleges—Harvard University, Washington University in St. Louis, and the University of California, Berkeley. The Campus Leaders will be in charge of finding 25-35 Mentors in their school. Mentors will be trained using a curriculum designed specifically to assist the Applicants in the application process. We will partner with a handful of high schools to recruit our first 90 Applicants. Applicants and Mentors will interact using the web-based platform, with a back-end that will allow us to monitor the progress of each Applicant. Throughout Stage 1, we will solicit feedback from all 90 Mentors and Applicants on a bi-weekly basis to make continual improvements to the program based on real-time feedback.

Stage 2 (estimated time: 1 year). We will expand the program to 440 Applicants and 430 Mentors from ten universities. This Stage will require us to find new Campus Leaders, who will drive the increased requirement for Mentors. The website and curriculum will be adjusted and improved in response to feedback gathered in Stage 1.

Stage 3 (estimated time: 2-3 years). We will continue to grow, accepting many more Mentors and Applicants. This Stage will require significantly more resources to support nationwide recruiting. We will need to hire staff to manage the Campus Leaders and the Applicant/Mentor pairs, and ensure that each is fulfilling their obligations.

Stage 4 (estimated time: 2-3 years). We will scale further by creating compatible programs for high school juniors, sophomores, and freshmen, focusing more on college preparation (e.g., taking rigorous classes, participating in extracurricular activities, studying for the SAT and ACT). This will require significant curriculum development, with specific benchmarks and a different set of guidelines for each school year program.

Sources of Revenue

Total revenues will grow from a base of approximately $210,000 to over $940,000 by year six of operation. These gains are a direct benefit of the continued support of our donors and partners, as well as advertising related to the growth of our business. Details by line item as follows:

Grants. Foundations provide a large source of funding to education-related nonprofits: four of the top 10 foundations in the US support education. Many other foundations, like the Citi Foundation and the Lumina Foundation, target funds specifically at activities that promote college access among disadvantaged populations. Grants will be a significant source of funding for AppSuccess in our early years, and as we grow we will rely on them increasingly less. In our first year we expect grants to make up 95% of our revenue. By our sixth year of operation we will have reduced our dependence on grants significantly, down to 30% of our revenue. As we continue to build a reputation and a corps of committed financial supporters we expect annual donations to make up an increasingly larger percentage of our revenue stream. Therefore, we plan to apply initially for grants for seed funding from foundations like the Darden Foundation, whose Recipe for Success program offers seed funding to organizations that “impact the educational prospects of underserved youth, ages 14 to 18, by providing them with access to the information and tolls they need to pursue their dreams of higher education.”

Partnership Revenue. AppSuccess will partner with organizations like CollegeBoard, ACT Inc., Princeton Review, Embark, CommonApp, FastWeb, and other organizations geared toward getting students into college. Our goal is to build relationships and eventually point our students toward their websites.

Donations. We will raise donations primarily through our “Sponsor an Applicant” program. The program enables donors to finance all of AppSuccess’s costs associated with supporting an Applicant for $100 per Applicant. To get long-term buy-in from donors, we will require Applicants to write letters of appreciation to their sponsors. Similar sponsorship programs have proven extremely effective for other organizations because it puts human faces to the donation.

Advertising Revenue. Different from our partnerships, our advertisers will be consumer product companies and related companies that market to young adults. Revenue calculations are based on a standard ‘click through’ model. We assume our advertisers will pay us an average click through rate of $0.65, and that our Applicants will click an average of 3 times per month.

Costs and Expenses

Our largest expense is personnel, with salaries and benefits estimated to be around $560,000 during the first two years alone. Note that throughout the six-year projection more than 80% of our expenses are related to personnel, as the hardware/storage, real estate, and miscellaneous costs are minimal.

Net Surplus and Break-Even

Despite a minimal loss in years one and two (that could be financed by guaranteed loans), we will be fiscally sound and self-sustaining thereafter (see Below).

Financial Projections
Revenues Expenses Surplus
$1,000
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
-$100
2012
2013
2014
2015
2016
2017
Dollars (in thousands)

Projected Financials

Statements of Income and Cash Flow

Statement of Income

AppSuccess exhibits seasonality in accordance with the college application process. College application deadlines range from mid-November to early February, thus highest activity levels on our site will be in the first and second fiscal quarters, with web design, advertising and promotion and travel expenses weighted toward the first half of the fiscal year (see Appendix).
Revenues are budgeted to be spread evenly over the fiscal quarters, with the first quarter of 2012 getting a boost from the $25,000 prize related to the HBS Business Plan Competition.

Statement of Cash Flow

Our cash flow statement resembles our projected income statement. This is both due to our nonprofit status (we do not pay any taxes and therefore expense all our software development costs as incurred) and due to the web-based nature of our business, meaning that there are few fixed assets that need to be depreciated. On an annual basis, all our revenues and expenses are received and paid for in cash.
In the first two years of operation we are projected to lose approximately $187,000. This will be financed by debt, raised in advance of incurring the losses and projected to cost approximately 4% on an annual basis (see Appendix).
Note that we will begin to earn a surplus and generate cash in the third year of operation. Any excess cash generated will be used to repay debt.

Sustainability

Sustainability is a serious concern for any enterprise, and especially for those in the not-for-profit realm. Through conservative planning, leveraging our partner relationships and exploiting revenue streams collateral to our core business, we hope to ensure this sustainability for AppSuccess. Our financial projections show that we will be cash flow positive by year three of operation. Yet we recognize that without charging for our services, we are dependent on the funding from individual donors and foundations to be sustainable. We plan to address this challenge in several ways.

Keeping Operating Costs Low

Aside from the handful of staff we need to run the business and develop the website, our operating costs are extremely low, which allows us to focus less of our time on fundraising and more of our time on creating a better product.

Keeping Fundraising Goals Conservative

Our financial projections show that we only need to raise about $200,000 in grants each year to be sustainable. We believe that this is a conservative estimate, since funding for education nonprofits exceed over $5.5 billion annually in the US alone. Importantly, the economic hardships did not affect funding for education.

Developing Other Potential Sources of Revenue

The very nature of our web-based platform lends itself to two potential sources of revenue in the future:
· Data sales: By year six, we will have worked with over 16,500 Applicants and completed tens of thousands of college applications. Using the lessons learned and the data accumulated from these applications, we could compile this information into a workable format to make available to high schools for a fee. Schools, both Title 1 and others, could use this data to help them inform their college counseling, as well as distributing the material to students. Ours would be a classic razor-razor blade model. Due to our technology focus, data accumulation and customization costs would be modest. We could give away the initial data package for free and then charge increasing amounts per school per year for updates. Longer term, we hope to be working with hundreds of Title I high schools (not to mention the thousands of overall high schools in the US), and charging several thousands of dollars annually for updates – this could be a dramatic addition to our revenue model.
· Source code sales: Our operational success will be closely tied to the robustness of our web-based platform. The source code that we will develop, which will allow for complex and multi-faceted interactions to take place remotely, could be sold to other non- competing companies. This could include any multi-person, multi-location operation, including SAT preparation, general tutoring, consulting, medical services, etc.

Key Data

AppSuccess
2012-2017

GROWTH STRATEGY

2012

2013

2014

2015

2016

2017

MENTORS

# Campuses

3

10

25

50

100

100

# Mentors

90

430

1200

2330

4890

6210

APPLICANTS

Avg. applicants per mentor

1

1.02

1.05

1.08

1.08 1.12

# Applicants

90

440

1260

2520

5280 6960

STAFF (FTE)

# Computer designers

1.5

1.5

2

2

2

2

# Other employees

4

4

5

6

8

9

Total headcount

5.5

5.5

7

8

10

11

SALARY EXPENSE

Web designer

60,000

Other employees

40,000

ADVERTISING
price per click through 0.65
# click thru/member/month 3

Statement of Income

AppSuccess
Projected Quarterly Income Statement Fiscal Years 2012-2014
2012-2013

2013-2014

REVENUES

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Grants

68,750

43,750

43,750

43,750

50,000

50,000

50,000

50,000

Partnership

Donations

2,250

2,250

2,250

2,250

11,000

11,000

11,000

11,000

Advertising

530

700

530

350

2,570

3,430

2,570

1,720

TOTAL REVENUES

71,530

46,700

46,530

46,350

63,570

64,430

63,570

62,720

EXPENSES

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Web Design

30,000

30,000

15,000

15,000

30,000

30,000

15,000

15,000

Salaries

40,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

Benefits

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

Real Estate

Travel Expenses

4,500

4,500

1,500

1,500

4,500

4,500

1,500

1,500

Advertising

6,500

6,500

2,000

2,000

6,500

6,500

2,000

2,000

Interest Expense

600

600

1,200

1,200

1,200

1,200

1,200

1,200

Other

3,000

3,000

2,500

2,500

3,000

3,000

2,500

2,500

TOTAL EXPENSES

92,600

92,600

70,200

70,200

93,200

93,200

70,200

70,200

NET SURPLUS

(21,100)

(45,900)

(23,700)

(23,900)

(29,600)

(28,800)

(6,600)

(7,500)

AppSuccess
Projected Annual Income Statement Fiscal Years 2012-2017

REVEUNES

2012

2013

2014

2015

2016

2017

Grants

200,000

200,000

250,000

250,000

250,000

280,000

Partnership

55,000

75,000

100,000

150,000

Donations

9,000

44,000

113,400

189,000

343,200

348,000

Advertising

2,100

10,300

29,500

59,000

123,600

162,900

TOTAL REVENUES

211,100

254,300

447,900

573,000

816,800

940,900

EXPENSES

2012

2013

2014

2015

2016

2017

Web Design

90,000

90,000

120,000

120,000

120,000

120,000

Salaries

160,000

160,000

200,000

240,000

320,000

360,000

Benefits

32,000

32,000

40,000

48,000

64,000

72,000

Real Estate

40,000

40,000

40,000

40,000

Travel Expenses

12,000

12,000

12,000

15,000

15,000

15,000

Advertising

17,000

17,000

17,000

20,000

20,000

25,000

Interest Expense (inc)

3,600

4,800

4,800

3,600

2,000

(2,800)

Other

11,000

11,000

11,000

15,000

15,000

20,000

TOTAL EXPENSES

325,600

326,800

444,800

501,600

596,000

649,200

NET SURPLUS

(114,500)

(72,500)

3,100

71,400

220,800

291,700

Statement of Cash Flow

AppSuccess
Fiscal Years 2011-2017

CASH INFLOW

2011

2012

2013

2014

2015

2016

2017

Beginning Cash

20,000

25,500

(49,000)

(45,900)

2,500

163,300

HBS Award

25,000

Debt Incurred

120,000

Operating Surplus

3,100

71,400

220,800

291,700

TOTAL INFLOW

25,000

120,000

3,100

71,400

220,800

291,700

CASH OUTFLOW

2011

2012

2013

2014

2015

2016

2017

Operating Losses

114,500

72,500

Investments

5,000

2,000

3,000

Debt Repaid

20,000

60,000

40,000

TOTAL OUTFLOW

5,000

114,500

74,500

23,000

60,000

40,000

NET CASH

20,000

25,500

(49,000)

(45,900)

2,500

163,300

415,000

8.1 Financial Overview
a) Business Model Description

Moving Beyond Depression
is a set of protocols to train and guide the work of therapists and home visitors in the in-home treatment for mothers who are identified with clinical depression. This successful home visiting model was borne out of the research of two prominent doctors who will participate in the Affiliate implementations.
In addition, the efficacy of the intervention has been validated in three independent Affiliates. Therapists, a Business Manager, a Program Manager and a Research Coordinator will also participate in Affiliate implementations.

The pricing of the product will be directly related to the amount of time required of personnel for each phase of the program per unit. [A unit is defined as the full product lifecycle for up to four therapists. An Affiliate with more than four therapists engaged in the program will require multiple units.] The product price will be determined by the following:
· Direct personnel time required per unit
· Indirect personnel time required per unit
· Travel Expenses per unit
· Profit Margin per unit

Due to the nature of the product, a training and support program, the majority of the venture’s expenses are attributed to the cost of personnel. Year over year, personnel expenses will comprise an average of 77 percent of total venture expenses for the first five years.

b) Financial Targets
The two core underlying financial targets for
Moving Beyond Depression
are the following:
1. Reach self-sustainability after year 2
2. Generate a sustainable annual profit margin of 15-20 percent to be used to fund expansion of the parent program as well as additional research and continued investment in the
Moving Beyond Depression
venture.
Based on the assumptions stated in section 8.2, the revenue, expenses and profit margin for the first five years of the venture are noted below.
·
Moving Beyond Depression
will be profitable Years 3-5
· The cost of sales as a percentage of revenue will average 89% during Years 3-5

Year 1

Year 2

Year 3

Year 4

Year 5

# of Units*

3

6

7

8

9

Revenue

$779,755

$725,675

$707,441

$860,452

$1,007,334

Expenses

$777,320

$668,036

$690,171

$705,065

$868,645

Net Income

$2,435

$57,639

$17,271

$155,387

$138,688

Profit Margin

0%

8%

2%

18%

14%

Revenue Growth

175%

47%

22%

17%

Cost of Sales

100%

92%

98%

82%

86%

Cumulative Cash Flow

$2,435

$60,074

$77,345

$232,732

$371,420

Debt Ratio

1.00

0.69

0.98

0.82

0.86

Current Ratio

1.00

1.45

1.03

1.22

1.16

*A ‘unit’ comprises four therapists. A single Affiliate may have multiple units depending on the number of therapists to be trained.
*$605,000 of the revenue of $774,755 for year 1 and $245,000 of the revenue of $730,765 for year 2 can be attributed to the assumption of the receipt of a start- up grant.

8.2 Key Assumptions
The revenue targets noted in Section 8.1 are predicated on the following assumptions:
a) Start-up Funds

Moving Beyond Depression
will receive a grant for $850,000 to cover startup expenses and a portion of operating expenses during Year 1 and Year 2. This total is composed of the following:

Year 1 Expenses

System Development Costs:

· Portal Development – $100,000

· Website Development – $35,000

· CRM implementation – $20,000

$156,000

 Licenses – $1,000

Personnel

$409,940*

Government Relations Specialist

$100,000

Facility

$60,600

Marketing

$20,000

General Administrative Costs

$15,780

Legal Costs

$5,000

Advisory Council Meetings

$10,000

*Personnel expenses include base salary, benefits, taxes and expenses.
b) Program Price
· The table below displays the components of the program price of $98,478.
· The program price for affiliates with less than four therapists will be $70,342.
· The program price for affiliates with greater than four therapists will be $98,478 plus $24,620 for each additional therapist.
· The price for additional training services will be determined by multiplying a fullyloaded hourly rate for the staff member performing the work by the estimated time required of the service.

Components of the Average Program Price per Unit

Average Direct Personnel Cost to
MBD

$ 52,493

Indirect Personnel Costs (10 percent)

$ 5,249

Travel Expenses: Phase I

$ 3,200

Travel Expenses: Phase III

$ 6,400

Expenses

$ 3,000

Total

$ 70,342

Mark up

40%

Program Price

$ 98,478

Number of Therapists per Unit

4

Average Price Per Therapist

$ 24,620

Average Cost Per Therapist

$ 17,585

c) Year 1 Personnel
· Only personnel critical to the launch of the venture are employed in Year 1.
· The table below denotes which personnel are critical Year 1:

Title

Name

Capacity

Program Director

Robert T. Ammerman, Ph.D.

50%

Research Director

Frank W. Putnam, M.D.

10%

Program Manager

Future Hire

100%

Business Manager

Glenn T. Flick

50%

Therapist 1

Future Hire

50%

Research Coordinator

Future Hire

50%

Sr. Administrative Assistant

Jennifer L. Diers

25%

d) Resource Capacity

 MBD has modeled the capacity needed with growth – it is available upon request.
e) Incremental Personnel
 Additional personnel will be hired on an incremental basis according to what the growth in units demands.
f) Program Growth
 The revenue estimates are based on conservative growth projections. The first year target is three new units. Through word of mouth, marketing efforts and lobbying efforts, the second year target is six new units. Incremental growth is targeted for years 3 through 5, with seven new units targeted for year 3, eight new units for year 4 and nine new units for year 5.

g) Annuity Revenue (Year 3 and Beyond)
 65 percent of Affiliates will subscribe to an annual organizational
MBD

Membership Program for $5000/year which will consist of the following:
· Access to
MBD
Portal o Discounts on additional Training o Research Updates o Therapist Newsletter
· Discounts and early access to new
MBD
products

h) Personnel Expenses
· The table below displays the base salary, benefit amount and total salary for each of the personnel in the venture.

Title

Base Salary

Benefits (28%)

Total Salary

Program Director

$ 181,250

$ 50,750

$ 232,000

Research Director

$ 243,750

$ 68,250

$ 312,000

Doctor 3

$ 101,563

$ 28,438

$ 130,000

Program Manager

$ 84,500

$ 23,660

$ 108,160

Business Manager

$ 84,500

$ 23,660

$ 108,160

Therapist 1

$ 50,000

$ 14,000

$ 64,000

Therapist 2

$ 50,000

$ 14,000

$ 64,000

Research Coordinator

$ 67,969

$ 19,031

$ 87,000

Administrative Assistant

$ 31,250

$ 8,750

$ 40,000

Government Relations
Specialist

$ 100,000

$ 0

$ 100,000

·
MBD
Personnel will receive an annual base salary raise of 3 percent

i) Facilities
 Facility expenses have been estimated based on the market value of an office space that can accommodate 15-20 personnel. The Facility expense of $60,600 for year one is comprised of the following monthly costs:
· Rent: $2,500
· Utilities, Internet, and Phone: $850 o Insurance: $200 o Building Expenses: $1,500

8.4 Projected Financials

8.4.1 Income Statement
· Summary of Projected Net Income: Our revenue projections for the five-year plan include revenue increases every year (excluding the grant) based on the growth in the number of units.
· 59 percent of the program price of $98,478 is allocated to the first year of the program (Current Revenue) and 41 percent is allocated to the second year of the program (Deferred Revenue) to account for revenue that has been received but not yet earned.

Year 1

Year 2 Year 3 Year 4 Year 5

Revenues

Current Revenue

$174,755

$359,995 $432,594 $509,225 $590,064

Deferred Revenue

$ –

$ 120,681 $ 248,602 $ 298,737 $ 351,656

Membership-based fees

$ –

$ – $ 10,000 $ 20,000 $ 25,000

Additional Training

Grants

TOTAL REVENUES

$ –
$605,000

$ 16,245 $ 32,491 $ 40,614

$245,000 $0

$0 $0

$779,755

$725,675 $707,441

$860,452 $1,007,334

Costs

Launch development costs

$155,000

$0

$0

$0 $0

Ongoing costs

Tech. Infrastructure

Sales/Marketing

Personnel

Facility

General & Admin.

$1,000
$20,000
$509,940
$60,600
$15,780

$38,050
$12,500
$530,928
$62,418
$8,590

$39,953
$20,000
$545,306
$64,291
$4,500

$41,950 $44,048

$12,500 $20,000

$560,185 $713,744

$66,219 $68,206

$7,495 $5,315

Legal

$5,000

$5,250

$5,513

$5,788 $6,078

Advisory Council

$10,000

$10,300

$10,609

$10,927 $11,255

Total Ongoing

Costs

$622,320

$668,036

$690,171

$705,065 $868,645

Depreciation

TOTAL COSTS

$0

$0

$0

$0 $0

$777,320

$668,036

$690,171

$705,065 $868,645

Operating Income

Income Tax (at 0%)

Net Income

$2,435

$0 $2,435

$57,639

$0 $57,639

$17,271

$0 $17,271

$155,387

$0

$155,387

$138,688

$0

$138,688

Profit
Margin

0.3%

7.9%

2.4%

18.1%

13.8%

8.4.2 Cash Flow Statement

Year 1

Year 2

Year 3

Year 4 Year 5

Operations

Cash receipts from Affiliates/Grants

$779,755

$725,675

$707,441

$860,452 $1,007,334

Cash Paid for

Tech. Infrastructure

($1,000)

($38,050)

($39,953)

($41,950)

($44,048)

Sales/Marketing

($20,000)

($12,500)

($20,000)

($12,500)

($20,000)

Personnel

($509,940)

($530,928)

($545,306)

($560,185)

($713,744)

Facility

($60,600)

($62,418)

($64,291)

($66,219)

($68,206)

General & Admin.

($15,780)

($8,590)

($4,500)

($7,495)

($5,315)

Legal

($5,000)

($5,250)

($5,513)

($5,788)

($6,078)

Advisory Council

($10,000)

($10,300)

($10,609)

($10,927)

($11,255)

Operating Costs

Net Cash Flow from Operations

($622,320)

$157,435

($668,036)

$57,639

($690,171)

$17,271

($705,065) ($868,645)

$155,387 $138,688

Taxes

$0

$0

$0

$0 $0

Deferred Tax Credit

$0

$0

$0

$0 $0

Adjusted Taxes

Net Cash from Operating Activities

$0

$0

$0

$0 $0

$157,435

$57,639

$17,271

$155,387 $138,688

Investing Activities

Capital

Expenditures

($155,000)

$0

$0

$0 $0

Net Cash Flow

$2,435

$57,639

$17,271

$155,387 $138,688

Cumulative Cash Flow

$2,435

$60,074

$77,345

$232,732 $371,420

Discounted Cash Flow (10%)

$2,435

$52,399

$14,273

$116,745 $94,726

Cumulative Disc Cash Flow

$2,435

$54,834

$69,107

$185,852 $280,578

Help4 Group
Box program

December 16, 2020 version 2

Social Business Model Canvas Template
2

Anchor Purpose
Help4 Group aims at promoting healthy food at affordable prices that will allow the households to access quality and healthy food.
Box A is original grocery box which provides a wider variety of fruits and veggies with door the door delivery subscription service.
Box B will ensure that people can cook healthy foods using the attached recipes and healthy ingredients provided.
Box C: Help4 group provides a grocery box with instruction books which have fun activities focus on interaction between children and parents

Stakeholders
Clients and customers: families, people living below poverty line, busy people, and people with disabilities.
Business partners: Vegetable suppliers, logistics companies and transport services providers
Management and employees of the company Unique Value Proposition
Delivering fresh vegetables with high quality original food box door to door to disabled, seniors who are inconvenient to go shopping in the grocery store
Food box with affordable price provides people who living below the poverty line or care cost-effective
Working professionals with busy lifestyle could save time by select Box B with food recipe inside
Parents who lack of way to interact with their children or need engagement could choose Box C with education instructions book

Reach
Take advantage of exiting customers
Use of online platforms
Promotion of the Boxes through advertising,

Community Need

More than 150 survey collected.
80% people shows strong interest and would like to try Box A
30% would like to try box B
People would like to try Box C only for free to decide whether subscribe Outreach Strategy
Through messaging feature in the company’s website.
In person intercations through public marketing strategies.
Trial period/ free couponing

Key Activities & Resources
Training the employees on the different categories of the boxes.
Solving customer issues that may arise
Excellent commutation and social skills with famers and logistics
Rich personal network with local government and VC Costs
Adopt a cost-optimization strategy
Staff salaries and wages
Premises rent
Delivery costs
Cost of acquiring the vegetables and fruits
Printing costs
Cost of developing learning materials for box C Sustainable Revenue Streams
Low margin revenue streams from box deliveries
Revenue from Box A
Revenue from Box B
Revenue from Box C
Donation
Sliding Scale

Impact
The intended community benefit of the organization and how it will measure its outcomes and impact

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30-WORD DESCRIPTION PLACEHOLDER:
Help4 Group is a social enterprise based in China
with the objective of reducing food wastage and
improving the welfare of children in the poor neighborhood through
dietary health. Box program aimed to fix the unbalanced revenue stream
and a new business model to make profits
Get more information at: www.help4group.com

Anchor Purpose
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Due to the unbalanced revenue stream of Help4 Group (90% revenue from government purchase) the company will try new business models to make profits: prmote the sales of fruits and vegetables categorized in 3 different boxes depending on the services offered and target market.
Box A: Box A is original grocery box which provides a wider variety of fruits and veggies at affordable price with door the door delivery subscription service.
Box B:Help4 group provides a small grocery box at affordable price along easy-to-follow, well-designed recipe cards for each meal
Box C: Help4 group provides a grocery box with instruction books which have fun activities focus on interaction between children and parents and children

Research shows that grocery box idea is pretty new in China, only a few companies are developing related products and services. Many food giants have not yet entered this field yet.
Study shows as China enters aging society in 2020, an increasing number of people will reduce the number of times to go out shopping. Seniors expect food to be delivered to their door rather than directly going to the grocery store to buy it.
It is estimated that in 2025, food box and related delivery service will account for around 8% of food purchase share. Market share will increase to 15% in 2030. There is a huge market gap exist.

DESCRIPTION

LINGERING QUESTIONS

RESEARCH
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What is the market segmentation for the market that Help4 Group serves?
What ensures that Help4 Group continuously serve their target market of low-income earners?

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The underlying motivation and goals for existing
Its larger purpose within the community

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Community Need
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DESCRIPTION
Help4 group did around 150 surveys during last 5 weeks by collect data from the local students and parents through sent survey to existing customers directly, street survey, official website and promotion of customer feedback platforms to identify the the needs of the different grocery boxes and areas that should be corrected and the services that should be improved.
The company will also liase with the logistics company in collected of data that will be analyzed to show the areas that should be improved in the Box Idea.

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How the organization will determine which needs of the community are not being met and how it can meet them

RESEARCH
Collecting customer survey and feedback is one of the most effective ways to identify the the customer needs and areas that need improvement. That is because a business engages with the customers directly.
According to the survey
80% people (parents)shows strong interest and would like to try Box A
30% would like to try box B
People would like to try Box C only for free to decide whether or not subscribe
Help4 Group decide to start with Box A and mainly focus on Box A in next in the next period of time to see how it goes.

LINGERING QUESTIONS
What is the likelihood that the organization’s customers will provide feedback that will be used in identifying the areas that should be corrected?
What strategies would Help4 Group implement to ensure that the organization meets the needs of the community.

Impact
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DESCRIPTION
People with disabilities, seniors who are inconvenient to go shopping in the grocery store could get benefits from Help4 Group door to door delivery service.
People who living below the poverty line or care cost-effective could also get benefits from our good quality food box with affordable price.
Working professionals with busy lifestyle could save time by select Box B with food recipe inside
Parents who lack of way to interact with their children or need engagement could get benefits from Box C with education instructions book

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The intended community benefit of the organization and how it measures its outcomes

RESEARCH
Research shows people who subscribe our grocery box could save around 30% campare with buy food directly from grocery store.
Study shows there is a huge market gap exist, by 2030, more people will prefer delivery food boxes to home rather than go to the grocery store.
Survey shows 75+% current existing customer shows interest/needs of grocery boxes or have positive attitude on it.

LINGERING QUESTIONS
What are the parties that are involve in the business activities of Help4 Group. What role do they play to the success of the company?
What parties are affected by the operations of Help4 Group?

Stakeholders
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DESCRIPTION
The people living below poverty line, the disabled, busy people, and families that want to experience cooking together are affected by the organization’s outcome.

The organization’s partners such as suppliers and logistic companies are also stakeholders in the organization.

People who are interested in the organization’s sucess if the management of the organization.

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Those who have
a vested interest in organizational success

Those who are affected by organizational outcomes

DESCRIPTION

Help4 Group has partnered with various stakeholders to ensure that the new business sgemnet is a success. The company will provide fruits and vegetables in three boxes to its customers and will implement Box A in the next following weeks
Families that want to experience cooking together can choose box B which has a recipe.
Children learning materials can be accessed through Box C

LINGERING QUESTIONS
What are the parties involved in the operations of the Help4 Group both at the internal environment and the external environment? What are their role and contribution toward the success of the organization?

Unique Value Proposition
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DESCRIPTION
The disabled and the seniors who are inconvenient to shop in the grocery store can benefit from the door-to-door delivery service of Help4 Group.
People who live below the poverty line or are care cost-effective can also benefit from our affordable, high-quality food boxes.
Working professionals with a busy lifestyle can save time by choosing box B with food recipes insides.
Parents who lack or need to interact with their children can benefit from the educational instructions in Box C

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The value brought
to stakeholders and differentiation from existing options
How the value translates to service offerings and delivery

DESCRIPTION

Help4 Group has partnered with different companies in different lines of services to ensure the success of it new business segment.
The organization provides the customers with a choice to choose from Box A, Box B, or Box C.
All the products are of high quality and they are affordable.

LINGERING QUESTIONS
What more value could Help4 Group make beyond mentioned above

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Reach
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DESCRIPTION
The first potential customer of grocery box idea would be local school ‘s students and families who are currently getting food from Help4 Group.
Help4 Group can grow its impacts by expanding its reach through personal network and campaign/promotion activities which can be achieved through partnership with social institutions such as denominational centers , governments and community development programs such as youth groups.
Establishing an online platform and social media that allows public participation on matters related to the development of the organization can also assist in expanding the reach of the organization in its core region.

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How the organization can grow its impact by expanding reach within its core region

RESEARCH
Promotion activities refers to the activities that aim at communicating a service or brand to the user with the intention of introducing the brand or service or induce the buyer in preference over others.

Use of online platforms as a means of user participation in has increased its effectiveness with the development of technology over the years.

LINGERING QUESTIONS
How effective are the methods in promoting the growth of the company’s impact?

Outreach Strategy
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DESCRIPTION
Help4 Group will provide 4 weeks trial periods for free (By invite only) and 40% Off couponing for all customers in order to get paying and repeat customers.
Help4 Group will interact with the community through a set of activities through awareness activities such as direct marketing publicity where team members from the organization will interact with the members of the community at the field.
The organization will also interact with the community through the official website and social media of the organization which will allow members of the community to ask questions and officials of the organization will respond them.

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How the organization will interact with the community, build awareness and achieve initial buy-in

RESEARCH
Help4Group will interview folks in the US doing to learn what marketing techniques work in other countries in the next following monthes and adapting them for China.
Various marketing methods may be used by the organization to reach the community. An example is direct marketing whereby the marketing agents will interact with people at teh community. That will increase the community’s trust on the new business segment.
One of the most effective methods of ensuring interaction through online platforms is by creating a chat program where enquires are made and responded through the online platform. The company may also interact with its customers via the wbsite

LINGERING QUESTIONS
What strategy can be used in enhancing an organization’s website to create interactions between users, customers and the organization?

Key Talent, Activities & Resources
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DESCRIPTION
Excellent communication skills and social skills among the members of the organization, farmers and logistics which include listening and turn-taking, non-verbal communications, stress management and internal control.
Rich personal relationship with the local government or venture capital etc.
Team-building skills among all the stakeholders of the organization particularly those involved in the operations and delivery of the organization’s products.

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What talent is needed to realize impact
What key activities and resources are needed to launch and create value for stakeholders

DESCRIPTION

The organization will partner with its partners to ensure freshness and high-quality of its produce .
The organization will also train the employees about the new business segment, all the boxes and what they entail. That will help in promoting quality and effective services and products.
Consequently, any customer cnflicts that may occur will be solved to ensure that all the customers are satisfied.

LINGERING QUESTIONS
What are the most effective talents required in expanding the impacts of an organization or box idea?

Costs
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DESCRIPTION

The organization will implement a cost-optimization strategy. That will help in the reduction of the costs incurred by the organization
Some of the costs that will be incurred include
Staff salaries and wages
Premises rent
Delivery costs
Cost of acquiring the vegetables and fruits
Printing costs
Cost of developing learning materials for box C

The participation of many volunteer with no charge has reduced expenses of Help4 Group in some ways.

The use of logistic companies reduce the cost of warehousing which is a key cost driver in relation to the operations of the organization.

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The key cost drivers for base operations and service delivery

RESEARCH
A cost-optimization strategy promotes cost reduction while promoting business value (Al Haj & El-Sayegh, 2015).
The costs that the company will incur will cater for the acquisition of the vegetables and fruits until they are delivered to the customers.
Help4 Group applies key cost drivers in managing the cost of operations with the goal of maintaining the affordable prices of the food products. One of the cost driver used is warehousing cost minimization through the logistic companies facility (https://www.help4group.com/).

LINGERING QUESTIONS
What is the most efficient cost driver that the organization can use in ensuring minimum costs are incurred from the operations of the organization?

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Sustainable Revenue Streams
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DESCRIPTION
Besides government purchase, Help4 Group will use a low pricing strategy to generate its income by selling different boxes.
It will receive income from the sales of Box A
It will receive income from the sales of Box B
It will recieve income from the sales of Box C.
Help4 Group ’s website has a three series denomination on the donations possible: $1, $10 and $100 in which well wishers select the donation to be made.

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The key revenue streams and mix of revenue sources required for long-term sustainability

DESCRIPTION

Sliding scale related research will be the on the top list next stage
Since the new business segment targets the low-income earners and the busy people, a low pricing strategy will ensure that the organizations gains a bigger market share in the market
The organization will also receive more income as it will sell different boxes to different customers
Help4 Group are cooperating with serval companies to develop grocery boxes.

LINGERING QUESTIONS
Is there any other good way to generate revenue beyond what mentioned above?

Reference

https://www.help4group.com/
Al Haj, R. A., & El-Sayegh, S. M. (2015). Time–cost optimization model considering float-consumption impact. Journal of Construction Engineering and Management, 141(5), 04015001.
Mothersbaugh, D. L., Hawkin, D. I., & Kleiser, S. B. (2019). Consumer behavior: Building marketing strategy. McGraw-Hill Higher Education.
Chinese business journal 中国商业周刊 人口老龄化趋势

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