FINANCING PLAN
REVENUE SOURCES
ADS
Get revenue from third parties
SUCCESS FEE
If we bring more than XY customers to pubs, pub owners will have to pay - in the beginning, 1st month - free trial with all the benefits
MONTHLY SUBSCRIPTION
Freemium/Premium (not having ads, promo deals, happy hours, possibility to book a spot in a pub)
Pubs- additional revenue from appearing in the “first ones”
CROSS-
SELLING
Game Lads events are the opportunity to sell tickets for real games and merchandising from brands
COLLABORATIONS
Collaborations with TV sports channesl; beverage brands (Heineken 0) and organization of "tasting nights"
SPECIAL
EVENTS
Sport pub quizzes, possibility to buy merchandising, sports raffle...
HYPOTHESIS RELATED TO REVENUE SOURCES
We believe offering a Premium model to users (solo travellers) could fit their needs according to their frequency of use of the app
We believe that bars would be willing to subscribe to our offer if the first events organized through Game Lads, thanks to a success fee model, are satisfying enough
We believe that offering additional services and sales related to sport events (merch, game tickets) will interest sports fans traveling
We believe that customers will be interested in special events such as sports pub quizzes or sports raffle.
PRICING FOR PUBS
PRICING FOR FANS
The pricing for pubs is mainly based on the pricing strategies of the main competitor based in the UK, England (MatchPint - Fanzo), but the prices of every options are slightly decreased. Firstly, during the first month, pubs can use all the benefits for free and then see if it worked and decide which option they would like to follow.
The pricing for sport fans is based on the freemium business model where the free version contains adds and the paid version (8 Euro/month) is offering a potential customers lots of benefits. We believe that this amount of money is easily reversible (e.g. with this option you can easily save 8 Euro for 2/3 drinks in a happy hour). Therefore, we believe that the paid version is much more convenient for the average sport fan.
The pricing - testing:
A/B testing - where two price versions (app prototypes) can be displayed and we will see which one the pubs/sport fans are more likely to pay. That can be done for instance via the landing page
1 to 1 interview - implementing the questions about the price to our interview scripts to see the opinions and suggestions to those prices (from our focus group)
ONE YEAR FINANCIAL PLAN
5 YEAR FINANCIAL PROJECTION
Sales:
Product line 1 = Revenue from the pub owners
Product line 2 =Revenue from the sport fans
Product line 3 = Revenue from the ads
We assume, that we will expand outside of the Portugal in the year 3 (therefore the significant increase of the sales from sport fans and pub owners) and also every year in another country. Thus, at the end of the 5th year, GameLads will be operating in 3 countries.
The average price of unit is calculated based on the fact that we believe the amount of users will be overall increasing (number of free users will be decreasing & number of paid users will be increasing), same for the pub owners
Raw Material:
we do not have any raw material in our business
Other expenses:
Office - we do not need an office for the first 2 years when our business will be starting, however we plan to rent some budget friendly office in the shared spaces from year 3 onwards (due to the expansion).
App development + Design + Go to Market campaign + Data acquisition + Third party service integration - are the only ones expenses just for the 1st year
IT Equipment - occurs in the 1st and 3rd year (these are computer and tablet)
App maintenance + storage of data + License Fees - are annual expenses
Marketing - is an annual expense, however varying each year (increasing each year)
Personnel:
We as a founders will obtain just a small amount of the wages. Nextly, we need the developer and website maintainer, customer service and marketing expert. Our team will count on part-time workers too that will assist the Game Lads team at "special events" will be needed. Lastly, we plan to hire a business development team and IT engineers to support the development of our service with new features in Year 3.
Profitability:
Game Lads is expected to generate a profit in the beginning of the 4th year. Positive net cash flow will be reached in the end of year 3. The positive cumulative cashflow will be reached in the beginning of year 5.
KEY INDICATORS
Customer Acquisition Cost (CAC) at first month sales = 44,98€
Customer Acquisition Cost (CAC) at last month sales = 1,38€
Lifetime value
Churn Rate = 50-45/50 = 0.1 x 100 - 10% (We believe we will lose 5 out of initial 50 sport fans)
1000 customers = 4000€ --> ARPU = 4€
LTV = 4*(1/0.1) = 40€