please help answer #2 executive summary with the all of the information given above. it is supposed to be done on an excel sheet. if u can provide equations that would be perfect. thank u, i appreciate your help.
inyestment fromanelit-up compony called Irucks260. Your company is preparing a business plan to get portion of them angei investors and other venture capitalists, and you are responsible for the cost-benefit analysis portion of the business plan. The company's business model is essentially serving as an "Uber" platform for truck rentals, pairing people who have trucks (pickups, vans, and even larger vehicles like moving vans) with people who need a short-term rental. Your task in this assignment is mainly concemed with the revenue model of Trucks2 6 o, which takes data input from other elements of Truck2Go's business model. Your company provides detailed descriptions of Truks 2 Go's value proposition, competitive analysis, and marketing strategles in other sections of the business plan. Note: all numbers and required calculations in this assignment are simplified to suit the purpose of this assignment. In your group project, you will need to provide detailed justification and calculations for any numbers. you have in your cost-benefit analysis, based on your value proposition, marketing research/strategies and your competitive analysis. A. Cost Assumptions: The initial target market for the business is the city of Los Angeles. Trucks2go needs funding for setting up its Inspection Center (for inte slewing its gig-workers and inspecting their vehicles), the Trucks2Go app, the website development, marketing. personnel, etc. The following are the cost assumptions: 1. An Inspection Center needs to be created, which will cost $100,000 in the first year. 2. The initial website development will cost $200,000 in the first year. 3. The initial Trucks2 Go app development will cost $400,000. 4. The initial eCommerce back-end Database System development including cloud hosting services will cost $700,000 in the first year. 5. The operation cost of the Trucks 2Go system, including website/app/back-end upkeep and admin personnel will be a total of $300,000 in the first year. It is this low because it will only be operational for 3 months in a small test market. The operation cost will increase to 5500,000 for Year 2 . After that the annual increase will be 40% (cost for year 3 is 40% increase from year 2 , and year 4 is 40% increase from year 3 ). 6. Additional infrastructure costs (such as building rental, office equipment, etc.): first year will be $100,000, and this is projected to increase by 30% per year over the previous year for Years 2,3,4, and 5 . 7. Personnel costs: the first year will be just $200,000 (as all executives are not initially taking salary), the second year will be $500,000. After that the annual increase will be 35% for year 3,30% for year 4 , and 20% for Year 5. 8. Marketing costs: these are estimated to be $500,000 for the first year. After that the annual increases will be 10% for Year 2, 15% for Year 3,20% for Year 4 , and 20 5 for Year 5 . The founders of the company have secured a small business startup loan to heip start the company. The loan is secured on the physical assets of the Inspection Center and a founder's personal assets. The loan will cover the initial investment of $100,000 in the inspection Center and initial app development of $400,000 (which is planned to be outsourced). This is a 5 year loan, with an annual interest rate of 6% and a monthly payment is scheduled for payback. B. Revenue Stream Assumptions: Trucks2Go has already done substantial market analysis and surveys. Based on this research there are two major revenue streams anticipated: 1. Transaction fees: Trucks 2Go 's major source of revenue will be earned by taking a 35% cut of the transaction amount (which is on par with Uber and tyft's cut). Based on their extensive marketing research for the Southern California region, the transaction total is estimated to be $350,000 in the first year as the company is testing out the market, recruiting users, and rolling out the app. The second year is estimated to be $5 million, and will continue to increase: by 60% over Year 2 for Year 3 , by 60% over Year 3 for Year 4 , and by 40% over Year 4 for Year 5 . 2. Affiliate marketing revenue: It is estimated that the company will begin to have affiliate marketing revenue of $10,0,9 in Year 2 and this is estimated to increase each year over the previous year by 25%. Assignment Delliverables You will create your analysis using 5 worksheets contained in a single spreadsheet. You must parameterize each variable (e.g. define and document each variable outside of a formula) in the spreadsheet for easy "what if" analysis and also for readability of your spreadsheet. 1. Cover Page: Use a textbox for specifying the title of your report, your name and the date. 2. Executive Summary: Summarize the purpose of the analysis, the content of your worksheets, and your final recommendotion to investors in terms of whether this is a good investment. Also, indicate-based on your what if analysis (see below) what would be the effects on the breakeven point if the marketing costs were $800,000 in the first year, resulting in transaction revenue of $6 million in year 2 , and if this would change your recommendation to investors. 3. Cost-benefit Analysis: This sheet should include: - an appropriate titie for this analysis and, on the second line, type "Bus311, cyour names, ctoday's dates". The title should be centered and large. - the structure of the cost-benefit analysis should be similar to-but not exoctly the same as - the one on page 353 of the course text book. - the interest cost for each year in your calculation. (Hint: your monthly payment is not your cost). - a break-even analysis chart. In your spreadsheet, you should indicate which year is the breakeven year by using the If function in Excel. Print "Breakeven year" below that cell only. - a professional recommendotion regarding your proposal based on the cost-benefit analysis (and this should also be included in the Executive Summary). inyestment fromanelit-up compony called Irucks260. Your company is preparing a business plan to get portion of them angei investors and other venture capitalists, and you are responsible for the cost-benefit analysis portion of the business plan. The company's business model is essentially serving as an "Uber" platform for truck rentals, pairing people who have trucks (pickups, vans, and even larger vehicles like moving vans) with people who need a short-term rental. Your task in this assignment is mainly concemed with the revenue model of Trucks2 6 o, which takes data input from other elements of Truck2Go's business model. Your company provides detailed descriptions of Truks 2 Go's value proposition, competitive analysis, and marketing strategles in other sections of the business plan. Note: all numbers and required calculations in this assignment are simplified to suit the purpose of this assignment. In your group project, you will need to provide detailed justification and calculations for any numbers. you have in your cost-benefit analysis, based on your value proposition, marketing research/strategies and your competitive analysis. A. Cost Assumptions: The initial target market for the business is the city of Los Angeles. Trucks2go needs funding for setting up its Inspection Center (for inte slewing its gig-workers and inspecting their vehicles), the Trucks2Go app, the website development, marketing. personnel, etc. The following are the cost assumptions: 1. An Inspection Center needs to be created, which will cost $100,000 in the first year. 2. The initial website development will cost $200,000 in the first year. 3. The initial Trucks2 Go app development will cost $400,000. 4. The initial eCommerce back-end Database System development including cloud hosting services will cost $700,000 in the first year. 5. The operation cost of the Trucks 2Go system, including website/app/back-end upkeep and admin personnel will be a total of $300,000 in the first year. It is this low because it will only be operational for 3 months in a small test market. The operation cost will increase to 5500,000 for Year 2 . After that the annual increase will be 40% (cost for year 3 is 40% increase from year 2 , and year 4 is 40% increase from year 3 ). 6. Additional infrastructure costs (such as building rental, office equipment, etc.): first year will be $100,000, and this is projected to increase by 30% per year over the previous year for Years 2,3,4, and 5 . 7. Personnel costs: the first year will be just $200,000 (as all executives are not initially taking salary), the second year will be $500,000. After that the annual increase will be 35% for year 3,30% for year 4 , and 20% for Year 5. 8. Marketing costs: these are estimated to be $500,000 for the first year. After that the annual increases will be 10% for Year 2, 15% for Year 3,20% for Year 4 , and 20 5 for Year 5 . The founders of the company have secured a small business startup loan to heip start the company. The loan is secured on the physical assets of the Inspection Center and a founder's personal assets. The loan will cover the initial investment of $100,000 in the inspection Center and initial app development of $400,000 (which is planned to be outsourced). This is a 5 year loan, with an annual interest rate of 6% and a monthly payment is scheduled for payback. B. Revenue Stream Assumptions: Trucks2Go has already done substantial market analysis and surveys. Based on this research there are two major revenue streams anticipated: 1. Transaction fees: Trucks 2Go 's major source of revenue will be earned by taking a 35% cut of the transaction amount (which is on par with Uber and tyft's cut). Based on their extensive marketing research for the Southern California region, the transaction total is estimated to be $350,000 in the first year as the company is testing out the market, recruiting users, and rolling out the app. The second year is estimated to be $5 million, and will continue to increase: by 60% over Year 2 for Year 3 , by 60% over Year 3 for Year 4 , and by 40% over Year 4 for Year 5 . 2. Affiliate marketing revenue: It is estimated that the company will begin to have affiliate marketing revenue of $10,0,9 in Year 2 and this is estimated to increase each year over the previous year by 25%. Assignment Delliverables You will create your analysis using 5 worksheets contained in a single spreadsheet. You must parameterize each variable (e.g. define and document each variable outside of a formula) in the spreadsheet for easy "what if" analysis and also for readability of your spreadsheet. 1. Cover Page: Use a textbox for specifying the title of your report, your name and the date. 2. Executive Summary: Summarize the purpose of the analysis, the content of your worksheets, and your final recommendotion to investors in terms of whether this is a good investment. Also, indicate-based on your what if analysis (see below) what would be the effects on the breakeven point if the marketing costs were $800,000 in the first year, resulting in transaction revenue of $6 million in year 2 , and if this would change your recommendation to investors. 3. Cost-benefit Analysis: This sheet should include: - an appropriate titie for this analysis and, on the second line, type "Bus311, cyour names, ctoday's dates". The title should be centered and large. - the structure of the cost-benefit analysis should be similar to-but not exoctly the same as - the one on page 353 of the course text book. - the interest cost for each year in your calculation. (Hint: your monthly payment is not your cost). - a break-even analysis chart. In your spreadsheet, you should indicate which year is the breakeven year by using the If function in Excel. Print "Breakeven year" below that cell only. - a professional recommendotion regarding your proposal based on the cost-benefit analysis (and this should also be included in the Executive Summary)
