Executive Summary



PROMPT Technologies Business PlanPrepared by: Madison MorganOn behalf of: Saint Mary’s University Entrepreneurship Centre923 Robie StreetHalifax, Nova Scotia B3H 2Y4Tel: (902) 491-6500Email: madison.morgan@smu.caJanuary 22, 2020 INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET DISCLAIMERThis business plan has been prepared in conjunction with PROMPT Technologies on a best-efforts basis? and reflects conditions prevailing at the time the analysis was completed on January 22, 2020. The advice,?recommendations, and conclusions contained in the report are based to some degree, on information derived from? the client and on opinions and assumptions that are subject to variation depending upon evolving events. The total aggregate liability of Saint Mary’s University and Saint Mary’s University Entrepreneurship Centre arising?out of or in connection with this consulting engagement howsoever arising shall in no event exceed the fee paid by the client in relation to this engagement.Saint Mary’s University Entrepreneurship CentreJanuary 22, 2020CONTENTS TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc30605312 \h 4Description of the Business PAGEREF _Toc30605313 \h 4Major demographic, economic, social and cultural factors PAGEREF _Toc30605314 \h 4Major Players PAGEREF _Toc30605315 \h 5Industry Overview PAGEREF _Toc30605316 \h 7Nature of the Industry PAGEREF _Toc30605317 \h 7Trends in the Industry PAGEREF _Toc30605318 \h 8Government Regulation PAGEREF _Toc30605319 \h 9Market Segment PAGEREF _Toc30605320 \h 9Products & Services PAGEREF _Toc30605321 \h 10Pricing and Distribution PAGEREF _Toc30605322 \h 10Risk Factors and Response PAGEREF _Toc30605323 \h 10THE COMPETITION PAGEREF _Toc30605324 \h 11Overview PAGEREF _Toc30605325 \h 11Booksy PAGEREF _Toc30605326 \h 12Vagaro PAGEREF _Toc30605327 \h 15Schedulicity PAGEREF _Toc30605328 \h 19StyleSeat PAGEREF _Toc30605329 \h 22Booker PAGEREF _Toc30605330 \h 25SimplyBook PAGEREF _Toc30605331 \h 28TaskRabbit PAGEREF _Toc30605332 \h 31Porch PAGEREF _Toc30605333 \h 34Competitor Analysis Conclusion PAGEREF _Toc30605334 \h 38Advertising & Promotion PAGEREF _Toc30605335 \h 40POLICIES AND PROCEDURES PAGEREF _Toc30605336 \h 42APPENDIX PAGEREF _Toc30605337 \h 44Financial Projections PAGEREF _Toc30605338 \h 49Executive SummaryOn demand services are defined in the basic model as gig workers who enter into formal agreements with on-demand?companies to provide?services?to clients. Prospective clients request?services?through an Internet-based technological platform or smartphone application that allows them to search for providers or to specify jobs. PROMPT is entering this space, positioning themselves competitively among others by operating on a 24-hour timeframe that all bookings are scheduled within, utilizing both professional and casual temporary staffing to satisfy a variety of consumer demands. Description of the Business??PROMPT Technologies have identified a need in the last minute, real time appointment scheduling realm and seek to provide a solution through a mobile app-based platform entitled ‘PROMPT’. The platform will operate as an intermediary between service providers and clients, on a last-minute basis. Service providers are able to make themselves available to be booked by users in a 24 hour advance time frame. Users who express interest in the service that is being provided, in the given time period and geographically relevant area are matched with the provider and are able to schedule an appointment with them through the two-sided application. Examples of such services that can be provided through the app include doctors, hair stylists, massage therapists or other professionals who have gaps in their schedule or otherwise last-minute cancelations. A secondary market for this application includes temporary or non-professional workers such as a handy-man or dog walking service. These gaps can be filled via the connection made through PROMPT, for a cost to the service provider of $1 per booking. Major demographic, economic, social and cultural factors??The Halifax area grew at a rate of 1.6% in 2018 to 431,000 people, driven largely by immigration with over 4,500 international immigrants and 1,349 interprovincial immigrants arriving in the city. Immigrants now make up 9.4% of the HRM’s population, up from 8.1%, and the visible minority population continues to grow – from 9.1% to 11.4%.1 Halifax has added 3,430 people in the 25-39 year old age bracket but lost a small amount in the 40-54 year old group.1 The urban area of Halifax was home to 308,159 people in 2018 with 844.5 people per square kilometer spread over 365 square kilometres.1 The median total income per household in the Halifax area was $69,522 annually in 2016.1Disposable income in Nova Scotia grew 3.1% between 2015 and 2016, reaching an average household disposable income per capita to $30,864.20 for the year. This represents a portion of the money that PROMPT users are able to expend at their leisure for some of the offered services which are deemed to be of more luxury status over others (ie not required for the basic support of life).2As a provincial population overall, Nova Scotians have presented a negative savings rate of -3.6% reported in 2016.2 This indicates that people are spending more than their income technically allows them to and this money is being dispersed and flowing through the economy. There are 225,940 people within the labour force in Halifax – 209,425 of whom are employed, and 16,515 are unemployed, representing an unemployment rate of just greater than 7%.1 As reported in June 2019, full-time employment declined by 2,500 while part-time employment was up by 2,100 persons when compared to the same time period from the year before.2 When examining the labour force, it increased by 9,400 people and overall employment increased to 15,400 people between June 2018 and June 2019. This overall increase over the year includes a rise of 5,200 full time employment positions and 10,100 in part time. As such, the unemployment rate was decreased by 1.3% comparatively.2 Definitions: Labour force – all the people aged 16-64 who are able to work in a country or area (both employed as well as unemployed) Unemployment rate – the percentage of unemployed workers in the total labour force. Workers are considered to be unemployed if they currently do not work, despite being willing and able to do so. Disposable income – income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.Major Players??Suppliers – According to a survey of 2,500 people carried out by , 43% of people who had full-time employment reported working on the side as well and 51% of part-time employed people reported also having a secondary job. Of these groups, a reported 27% said that at least half of their monthly income came from what they did on the side.2 Overall, an average of 31% of those engaging in this additional work needed to do so to make ends meet, while 36% use the additional income as their disposable income and 24% were working to boost their savings.2For the Halifax market, this represents an approximate average of 53,760 people working a side job in addition to their full time job (based on the 125,025 full-year full time workers in the Halifax Region). Additionally, an approximate average of 54,200 people working a secondary job in addition to the part time employment (of the total 106,275 part time workers in the area).4 This is important for PROMPT as it is a concept of the ‘gig economy’ and the willingness of workers to engage in additional employment and those who are available as potential suppliers as part of the casual labour component of the app. Users – The concept of instant gratification is evident among today’s consumers, as seen in Amazon’s successful ‘Prime’ delivery service allowing packages to show up at your doorstep by the next day, the ability to access the latest movies, music, and audiobooks at their fingertips, and the rapid adoption of click and collect. This also plays in effectively to the limited amount of time people have throughout their day to get the tasks that they need to get done completed. Being exposed to an average of 10,000 brand messages a day, attention spans are on the decline and people want what they see and they want it now. Apps are available to service a wide range of consumer needs, as demonstrated by the over 2 million apps available in Apple App Store and 2.9 million apps available from the Google Play Store – people are used to using apps and comfortable with the concept as the average individual has 60 to 90 apps on their phone. These apps meet the demand for instant gratification, which often consumers are willing to pay a price premium for, such as UberEats’ 15% order fee. The same concepts can be translated from the consumption of goods to the provision and redemption of services – ie in the case of PROMPT’s offerings. The 24 hour time frame for booking will be very attractive to this market, with the ability to instantly satisfy their needs, and the indication of opportunity to create a premium pricing model for services.Industry Overview??The global online appointment scheduling market was valued at US $ 205.85 million in 2018 and is expected to surpass US $546 million by 2026. Advances in technology and implementation of technology in businesses, busy lifestyles, and a need for convenience are some of the drivers of this growing market – people want to have the option for getting things done conveniently and in a timely manner. Across industries, the average no-show rates for appointments are typically between 10% to 15%, citing a huge source of lost revenue potential, with one of the biggest reasons being that customers forget about their appointment. Appointment scheduling apps are readily available to businesses and users who have access to the internet. Online appointment scheduling apps are disrupting the market by providing simple booking processes, appointment reminders and online payment options. There are low barriers to enter the market as business resources required are primarily focused on capital for app development and expansion in to new markets can occur without any additional expenditure required (highly scalable). As a result there are several companies operating in the same industry leading to high competition. To have a competitive advantage, companies are now investing in AI technologies to make the booking process simpler and attempt to differentiate themselves from their competitors.Nature of the Industry??The on-demand mobile app economy is encouraging over 22.4 million users annually to spend approximately $57.6 billion attaining real-time services in the US alone. The market tends to be fragmented due to the presence of a vast number of small vendors, making it a highly competitive sector to enter and succeed within. In order to do succeed, vendors must be able to differentiate themselves in a way that is clearly valuable to the consumers and communicated through their value proposition. PROMPT is able to differentiate themselves with their low cost to service providers, geographic relevance, wide variety of offerings, and prompt service provision. Industries who have operated in ‘traditional’ brick-and-mortar style ways for centuries are being disrupted by the on-demand economy. Businesses and industries as a whole have been required to evolve into on-demand parallels, or else they will simply be phased out.Trends in the Industry??Customers searching for expert help are trending away from dependence on phonebooks or other online catalogs to locate telephone numbers.5 Skilled labourers have, thus, shifted from posting their telephone numbers across various websites and channels but alternatively elect to promote their skills on customized stages where customers are looking for them such as on-demand platforms.The on-demand services market is ever growing with the introduction of new providers and platforms for them to share their skillset through. On-demand services have disrupted many industries from the way that they are traditionally used to carrying out their business activities. On-demand companies are being created and seen as attractive to investors based on the 30.14% year-over-year growth that the on-demand home services market saw in 2018. In the US alone, the sector is valued at over $600 billion.6 Currently, service industries that drive the on-demand industry include the food delivery business, transportation and travel, healthcare industry, the beauty industry and homecare services.5 Examples include Uber, Instacart, TaskRabbit, Vagaro, and Mopp. As noted in a report published by Forbes, by 2025 about 75% of the workforce globally will be millennials (born between the years of 1981 and 1996). This means that it will be largely shaped by their habits and expectations – including the integration of technology in the workplace and flexibility of work hours.4 From the supplier side of the app, this is an appetizing opportunity for workers to make their own hours and focus on using their strongest skills. Conversely, from the user side they are able to able to utilize technology to fill needs gaps and get the assistance that they need in a short time period and working around their own schedule. Government Regulation??The Nova Scotian Government and the Department of Labour Standards oversee legislation which sets out the minimum employment rules that both employers and employees in the province must follow. These rules include items such as hours worked per week, right to refuse work, holiday and vacation pay and more. PROMPT Technologies is required to abide by these regulations when hiring their staff and can also expect for users of the app to stand by them as well. Government also oversees legislation to the ownership and operation of business both provincially as well as federally. In accordance with this, both a business number as well as a CRA program account will need to be established with the Canada Revenue Agency. A CRA program account will be required as soon as employees are paid (to account for Mandatory Employment Costs) and required once taxes are collected on behalf of the government. A business number is used for collecting, reporting, and remitting GST/HST and any other ongoing business interactions with CRA throughout the life of the business. Registration for a business number can be completed online through the ‘BRO’ portal at . There is no registration or maintenance fees associated with this and the BN stays with the business for its duration. THE MARKETMarket Segment??The specific market to be targeted is those who live busy lifestyles and do not have time in their schedules to allow for advance bookings. According to a study conducted by LSA Insider, the average lead time between booking and the fulfillment of the desired service was 44.8 hours. Additionally, 40% of the booking were made outside of regular business hours.8 A total of 68% of online bookers were female and an overall total of 76% of clients use mobile devices to book appointments.8 These factors help to align with PROMPT’s target market segment. Products & ServicesServices offered through the PROMPT Technologies app are at the discretion of suppliers and the success of each will be based on the amount of supply and demand. Potential services to be offered range from professional services such as those hosted in a salon, spa, or clinic to casual labour such as furniture assembly and house cleaning. The intention of the app is to allow individuals to become entrepreneurial and enable them to make additional income based on their individual skillset and availability while customers are having their needs fulfilled. Pricing and DistributionPROMPT Technologies Inc. has developed a mobile based app to be introduced to the market through Apple and Android platforms. The app is free of charge to download and register. A $1 fee is charged to the service provider for each connection that is made to a new client through PROMPT. As an example, service provider TaskRabbit collects a service fee of 15% from suppliers which identifies their primary revenue source and additionally charges a Trust & Support fee to users. This additional fee charged to the service recipent assures that that there will be there for support if something unexpected happens during a task.10 Comparatively, on-demand transportation provisioner Uber, takes a comission of 20% from its providers as well as a $1.65 rider fee.10 PROMPT does not host any transactions between the service provider and the user. The service provider will be billed on a monthly basis for all use during the current time period. If for example, the service provider makes 150 connections through the PROMPT app during the course of the month, they will be billed at the end of the cycle for 150 transactions at $1 each plus HST. Risk Factors and Response??Risk factors include adoption rates and high levels of competition. In order for PROMPT to be successful, there must be a high adoption rate – to create a pool of suppliers and users encouraging healthy competition and the overall availability of services. As an app based on service provision, those on the supplier side of the app must be present followed by the users selecting and hiring the provider. As part of this identified risk, PROMPT is threatened by the lag in adoption and the requirement to deal with customers’ impatience. If the consumer is unable to access the service that they are looking for any more than a few times, they are likely to lose interest and faith in the app and it’s ability to provide services and will be reluctant to try again in the future. Competition is inherent in business, and the app development space is no exception. Response to threats of rivalry include the anticipation of such a response in the market by preparing marketing strategies to reflect to consumers that PROMPT is the superior option. THE COMPETITIONOverviewIn identifying the competitors of PROMPT – Booksy, Vagaro, Schedulicity, StyleSeat, Booker, SimplyBook, TaskRabbit and Porch – the features and services, as well as the type of industry they serve were taken into consideration. The competitors examined offer a variety of services to their customers in a range of industries, and an analysis of these companies will give PROMPT a broader view of the online scheduling software market and on-demand home services market to help them make informed decisions moving forward. Booksy, Vagaro, Schedulicity, StyleSeat, Booker and SimplyBook are some of the industry leaders in the online appointment scheduling market and TaskRabbit and Porch are companies operating in the on-demand home services market. In the following, the term “business(es)” is used to refer to businesses that are using online scheduling software to offer their services and the term “user(s)” is used to refer to the people who are using the software to book appointments with these businesses. To complete a competitor analysis, the services the company provided to the businesses and users were analyzed, and a SWOT analysis was conducted. The opportunities and threats are included following the company analysis as a general market opportunities and threats informant. The global online appointment scheduling market is growing rapidly and is expected to reach US $546 million by 2026. There is high competition in the market due to low barriers of entry and many different competitors. Initially, Vagaro and TaskRabbit would be the strongest competitors for PROMPT. Vagaro is a subscription model online booking and management software and is the least expensive at US $25/month for a single user (employee) and US $85/month for unlimited users. TaskRabbit collects 15% of the total fee users pay for their job whereas PROMPT charges service providers $1/booking. The PROMPT app should be easy to use, have a friendly user interface, and have a clean and modern look. The PROMPT app should also include some features like reminders, highly customizable search options, flexible booking options and online payment options. PROMPT Technologies should recruit a solid customer service team as all of these businesses have identified facing customer service issues. PROMPT can invest in AI technologies that will make the booking process easier and simpler.BooksyBooksy is an online platform that allows users to find and book beauty and wellness services near them. Booksy was founded by Konrad Howard and Stefan Batory in March 2013. The company has over 200 employees working in offices in 6 countries and has their headquarters in San Francisco. It is a private company and has raised a total of US $48.7 million in funding. In July 2018, Booksy acquired Lavito, another appointment scheduling company in the beauty industry. Booksy has more than 3 million bookings on their software per month and operates globally in more than 29 countries across all continents. In Canada, Booksy operates in multiple cities including Halifax; the only business that uses Booksy in Halifax is a barbershop. The company has been a leader for the online booking services market and as such Booksy has partnered with Facebook and Instagram to make integrations much smoother and offer appointment bookings through Facebook and Instagram business pages. The Booksy app was also the top-rated app in the Apple App Store and the top grossing app in the Google Play Store in the industry it serves. Booksy’s revenue model is a simple monthly subscription model for businesses and is free for users.Booksy launched in the US in 2017 and “rapidly became the number one booking app in the world,” said founder Batory. He went on to explain, “We will use the funding to drive global growth, recruit high profile talent and develop proprietary technologies that will further support beauty businesses,” he said. “That includes the implementation of one-click booking, a feature that uses machine learning and AI technologies, to determine each user’s buying pattern and offer them the best dates with their favorite stylists, thus simplifying user experience for both merchants and their customers.”.BusinessBooksy provides businesses with an opportunity to manage their day-to-day bookings. The main features available to businesses through Booksy are Client Self Service, Calendar, Payments and Marketing. For businesses, Booksy costs US $29.99/month for one user, with an additional US $10/month for each extra user, or US $119/month for an unlimited number of users. Other than the number of users, there are no differences between the two pricing models, and they both have all Booksy features included.Calendar – Users can book services through the Booksy website or app whenever they want. Booksy uses email and text notifications and cancellation fees to reduce “no-shows”. The cancellation fee and free cancellation time period are set by the business and businesses even have the option to not set any cancellation fees; the cancellation fee is not charged unless an appointment is cancelled after the free cancellation period or unless the customer does not show up.Payments – Through Booksy, businesses can collect online payments from customers and the Booksy dashboard helps with customer record management and tracking. The booking options are flexible with customizable features like recurring booking, back-to-back booking etc. Since Booksy operates in different countries and regions, businesses also have the option of setting different tax and tip rates.Marketing – Booksy provides different management and market tools that allow businesses to manage inventory, sell products online through the Booksy app, send promotional offers, send referral promotions, send timely automated reminders, generate reports and monitor finances.UsersBooksy is free for users. Users can search for different services on the Booksy website or the mobile app. A list of available services appears and users can view their prices, availability, reviews and book an appointment. Users can also view the list of services on a map. Users can pay online through a variety of payment options, get reminders about upcoming appointments, and have the option to create recurring appointments. ReviewsBooksy reviews are mostly positive with a lot of businesses saying that its simplicity is instrumental in helping them manage and run their business easily. A lot of users have also mentioned the ease of managing bookings. On the other hand, negative reviews mention how they have experienced glitches that resulted in appointments being cancelled or double booked. A few comments also mention that the app has become slower after a certain update and it takes some time before the app can load. Website/Mobile App AnalysisThe Booksy website and mobile app have a clean look with a video showing service providers working on its landing page. Booksy is the only competitor on this list who has a video on their landing page, and because of that, the mobile app is slow when first launched. Although the app runs smoothly, the user interface is not very friendly and has a boring look.Strengths Strong Partnerships – Booksy has partnerships with Facebook and Instagram, people can now book appointments directly from a business’ social media page and this has been made possible through integration with Booksy. They made these partnerships in March 2019, and with this partnership Booksy can grow and generate more revenue. Funding – Booksy has significant funding to invest in research and development and they are already investing in AI technologies to make the whole booking process simpler.Location – Booksy is an industry leader and operates globally. The number of countries that Booksy serves in gives them a competitive advantage as they were one of the first to enter the market.WeaknessesMobile App – The Booksy mobile app user interface is not very interactive. The app also takes time to load due to the video on the landing page, leading to an unpleasant experience for users.Like Booksy, PROMPT should also invest in AI technologies. If PROMPT invests in AI technologies and machine learning, this will allow them to innovate and succeed in the market. Also, moving forward if PROMPT decides to move into the online appointment scheduling market, Booksy’s simple subscription model is something that PROMPT should adopt as it is better than other confusing pricing models. Vagaro??Vagaro is an online platform that allows businesses to manage their daily operations. The web-based application provides smooth liaison between businesses and customers and helps to promote businesses in the proximity of customers. Vagaro was founded by Fred Helou in Dublin, California in 2009. The company is funded by private equity and has raised a total of $63 million in funding since 2009 and has over 100 employees. In 2017, Vagaro reported having over 51.3 million appointment bookings throughout the year, 8% of which were booked after midnight. The company mostly serves the beauty and fitness industries and has an estimated annual revenue of US $2 million.BusinessVagaro is a scheduling and management software for businesses. Calendar, online booking, notifications, mobile app, customer tracking, payment processing, marketing, online forms, online reports, invoices, website builder, memberships, branded app and inventory tracking are all the features available to business through Vagaro, with each feature being highly customizable. With their list of services, Vagaro helps businesses to manage their day to day operations. For businesses, Vagaro costs US $25/per month for one business user, with an additional US $10/per month for each extra user. If there are more than 7 users, Vagaro charges a flat rate of US $85/per month.Among their list of services, calendar and online booking are the most frequently used – it allows customers to book appointments online. Notifications can be sent to customers regarding their appointment via email and text, and if the customer has the Vagaro mobile app installed, they can also receive push notifications and in app notifications. Customers can pay online – for small businesses (charges of less than US $4,000/month), Vagaro takes 2.75% of all transactions and for large businesses (charges of more than US $4,000/month), Vagaro takes 2.2% of each transaction plus US $0.19. Large businesses also have to pay an extra US $10/per month to use payment processing features. Vagaro also provides other useful features to businesses – it lets businesses track customer profiles to better understand and fulfill customer needs, market to customers through automated emails and texts, use online forms and surveys to collect customer information, access reports generated by Vagaro regarding sales, appointments, etc. If a business does not have a website, Vagaro allows businesses to build their own website and businesses can choose templates from Vagaro’s collection or make their own. Vagaro can be fully integrated with Facebook, Instagram, Yelp, Xero and Quickbooks – this allows new customers to find businesses on Yelp, go the business’ appointment booking page directly from their social media pages and keeps the businesses accounting practices up to date if the businesses are using Xero or Quickbooks. Vagaro can also be easily integrated with existing business website with the help of their WordPress plugin. Branded app is a feature which allows businesses to have their own mobile app through which businesses can boost their brand and retain exclusive customers by allowing them to book/reschedule appointments anytime. Clients can also browse their online store and purchase products, gift cards and memberships through the branded app. Clients can also easily manage membership history, bookings and payment information through their customer profile management. UsersCustomers can use the Vagaro website or the Vagaro mobile app – which can also be used on smart watches. Customers can search for a variety of services and Vagaro provides a list of services available in the area based on the customer’s selected time, price range and reviews. The list of services available in the area can be viewed as a list, on the map or on both simultaneously. Customers can also compare the search results, view business profiles, read customer reviews and easily book their desired appointment and make payments online. Clients can easily get reminders about their upcoming appointments, create recurring appointments and payment options, and also browse and purchase products online from their preferred service providers. Daily promotions can easily be found along with booking and cancelation options. Moreover, clients can book or reschedule appointments whenever it’s convenient for them and sync appointments to their calendar to be updated. They can earn rewards points as well, which can be redeemed for additional discounts and complimentary products. ReviewsVagaro customer reviews are mostly positive – the customers love how simple it is to find services and book appointments. Some customers have mentioned that it can be challenging to find their preferred service provider on the map and that they would have to scroll the map before finding the business they were looking for. Most of Vagaro’s negative reviews come from businesses – business owners have mentioned how Vagaro is sometimes advertised as free when it is not. Negative reviews also mention how the company has poor customer service, with ill-trained customer service representatives and long wait times. Some other older negative reviews have also mentioned how the mobile app does not work on some Android phones. Website/Mobile App AnalysisThe name “Vagaro” is unique and as a result the website and the mobile app are the first results to show up when searched for on the internet or any app store respectively. The website and mobile app have a clean and modern look. Both the website and the mobile app are very user friendly.Strengths Funding – Although Vagaro is a privately funded company, it has raised US $63 million in funding, which would mean that the company can invest a significant sum in research and development. This could lead to further innovations that would let Vagaro stay ahead of competition. Integration – Vagaro can be integrated into existing business websites and social media pages. The software can also be integrated with accounting software and keep business accounting practices up to date. Website/App Builder – Businesses can create their own websites using Vagaro and Vagaro also builds mobile apps for businesses (Branded App). Map – Vagaro shows businesses as a list, and on a map and this shows customers how far the businesses are from them. Customers can also scroll the map to look for more businesses in the area.WeaknessesCustomer Service – Vagaro has poor customer service, the customer service representatives are not properly trained and wait times are long.False Advertisement – Vagaro for businesses has been advertised as free, when it is not. This has resulted in people developing negative views towards the company.Vagaro also has a simple pricing model like Booksy. Vagaro’s search option is highly customizable with results that can be viewed on a map. To avoid problems that Vagaro has faced, PROMPT should have a smooth-running app which is integrated with map, so that the search on the map is not slow.Schedulicity??Schedulicity is the leading online appointment scheduling platform for service, class, and workshop based businesses. Schedulicity is private led organization founded in 2009 by Jerry Nettuno. The company has its headquarters in Bozeman, Montana and has over 50 employees. More than 80 million appointments have been booked through Schedulicity in more than 3,400 cities across the U.S. and Canada, generating more than US $5 million in annual revenue. Schedulicity is free for users but has a complicated pricing model for businesses.BusinessSchedulicity helps businesses run smoothly with all-in-one platform design which enables businesses to manage their services efficiently. Their seamless scheduling software gives businesses a foresight of upcoming events so they can manage time effectively. . They also have a small business grant program called #schedulicitycares that awards US $5,000 monthly to their deserving Schedulicity businesses. But, the pricing model for Schedulicity is complicated – they have both a free version and paid version for businesses. The free version only allows for 10 online appointment bookings per month and is not suitable for businesses to use effectively, and to use any other feature, businesses need to pay. The paid online tools are described as add-ons, with Schedulicity having seven add-ons – unlimited bookings, client text reminders, package management, automated billing, multiple locations, automated marketing and payment partners. If all add-ons are included, the total cost per month for one business user comes to US $70 and for unlimited users it comes to US $145. Schedulicity also takes a portion of all payments made to the business.Appointment Scheduling – Interactive booking software helps businesses and their clients to book appointments with ease. Businesses can control their calendar with customizable policies for booking, deposits etc. If on the move, business owners can see the updates and be on track with the mobile app and send text and email reminders to cut down on cancellations and rescheduling. Online Payment – Schedulicity helps to manage multiple aspects of the business in one place by keeping tabs on their transactions as easily as scheduling appointments and setting payments at your own timeframe. Class Management – Schedulicity software keeps track of all the tedious work like planning the routine of upcoming classes and email campaigns. So, automated waitlists and reminders are created to keep the classes engaged and clients updated to reduce no shows. Marketing – Automated marketing tools push the business to reach out for potential customers through listing in the marketplace which reaches to 25 million+ consumers. Features like customizable emails, birthday discount coupons, custom packages, and other deals will help to build a strong customer grid. UsersWith the mobile app or the webpage, users can book appointments online from a list of services based on their location. While surfing through different service providers, users can easily click and get more information regarding the company and services, along with viewing them on the map to get the exact location. While surfing, users get pop-ups for daily deals. Users also get reminders about their upcoming appointments, and can create recurring appointments. ReviewsMost Schedulicity reviews are positive, consisting of comments related to the simple interface of the app and website which helps to get tasks done easily. Some stated diverse appointments can be managed without any confusion on their devices with affordable prices and solid customer service. Whereas, some clients said that the add-on features to get the marketing tools leads to double the monthly cost for businesses which makes it less cost effective. Sometimes the app runs slow and glitches slow down the process. Website/Mobile App AnalysisThe website and mobile app are very user friendly, with a modern interface which provides features to accommodate the needs of diverse consumers. On the website homepage, users can choose from a wide variety of services with daily offers and availability of services. For the mobile app, it works similar to the web page and is convenient for booking appointments and receiving notifications. Schedulicity has its own blog page where they help other businesses by posting different articles frequently related to topics like client and time management, text reminders etc. On the website they have listed success stories of the diverse users to attract more consumers.StrengthsReal-time Calendar Refresh – Schedulicity automatically refreshes your appointment calendar whenever customers make a booking. This ensures that other interested individuals only see slots that remain available. As such, you can prevent double booking and avoid disappointed clients.Small Business Grant – Schedulicity awards US $5,000 monthly to one business of their choosing. The businesses enter the competition by posting their success stories on social media and a winner is picked every month. This helps in promoting Schedulicity.Promotion Capping – People like promotions and the most attractive ones receive overwhelming responses. However, they can also make businesses lose money. That is why Schedulicity helps protect your business by letting you cap promotions. This means that you can limit the number of coupons or promo codes that can be redeemed.Weaknesses Pricing Model – Schedulicity has a complicated pricing model. Businesses have to pay extra to get add on features like text message reminders with automated emails, etc. This adds up to an expensive software.Marketing Tools – More theme options should be available to identify the business’ brand. Tools should be available to add your own branding and images into email marketing, instead of using the same templates. The small business grant program that Schedulicity has is a positive marketing strategy – businesses promote Schedulicity while taking part in the program and Schedulicity builds its reputation as a company that helps businesses grow. PROMPT could also implement similar strategies to promote themselves once the company has grown. The real time calendar refresh is also another feature that PROMPT would benefit from.StyleSeatStyleSeat is web-based platform for matching beauty and wellness professionals to their clients. It offers features like online booking, client management, marketing, and offers the opportunity to showcase their work. Businesses are listed in the database, with the ability to control the time which they are available to be scheduled for appointments and services by clients. On the other side, clients can discover service providers, make appointments, and share their experience. It is a private led company founded in 2011 with headquarters based in California, San Francisco and currently employ over 50 people. The company has over 1 million monthly users and has an estimated annual revenue of US $4 million. StyleSeat is the largest and fastest growing marketplace in the beauty and wellness industry. BusinessBeauty professionals are provided with premier business tools to grow their community and customer base. StyleSeat has a simple price plan of US $35/month with a risk-free 30-day trial option. In the advanced features, they have included some additional benefits and competitive pricing with respect to competitors. StyleSeat also has its own blog page where articles are posted frequently for the businesses to learn about and use the promotional marketing tools.Smart Scheduling – Users book online appointments hassle free with clearly defined pre-payment, no-show, and late cancellation polices. Moreover, businesses can capture more clients with an option called Premium Scheduling in which clients can request an appointment outside the business’ calendar, where they have to pay 20% extra if it gets accepted. With the auto checkout feature, businesses can provide satisfactory experience to their clients with automated check-out feature in which the client’s fee is deducted through a credit card an hour after the appointment ends. Pre-Payments and Instant Deposit – As an advanced paying option, service providers can send a text message to clients to pay before check-in. The fee to accept pre-payments is 2.9% + US $0.30 per transaction. With instant deposit business get the payment directly to their account any time of the week for US $0.50 per deposit. UsersStyleSeat takes user viewpoints into consideration and focuses on providing an easy way to book services. Users can easily book the preferred appointment from the webpage or mobile app and sync it to calendar; users get a seamless experience with an auto checkout option in which they are charged automatically one hour after the set service time. Users also get premium booking options in which they can request appointments outside the booking window. If accepted, the user needs to pay 20% extra of the regular fee, which has to paid within 48 hours. Frequent clients can also earn reward points which they can redeem at their service provider’s location, building lasting relationships. ReviewsStyleSeat has a lot of both positive and negative reviews. The positive reviews mention how user friendly the interface is and how easy it is to use. On the other hand, most of the negative reviews are regarding StyleSeat’s customer service – there have been multiple mentions of users receiving poor quality work and StyleSeat not doing anything to resolve these issues.Website/Mobile App Analysis The StyleSeat website is well organized with a simple interface and have highlighted tabs related to services they can offer to the users. The StyleSeat community page shows their recent mentions in Forbes, The New York Times, Fortune, and various stories have been posted by existing professionals o show their positive experiences with StyleSeat. The mobile app is available on all devices and is user friendly, with options to be used by either the business user or the customer. StrengthsCustomization – StyleSeat allows businesses to manage schedules, appointments, bookings and client notes effectively. The scheduling program allows users to properly manage specific tasks with precision. It lets businesses send appointment reminders to clients automatically via mobile software.Convenience – Connects services with clients in a more convenient and time-efficient manner as it allows them to find the business faster and book their reservations in a time-saving fashion.User Rewards – Users receive points for every dollar they spend through the website or mobile app. This incentive can attract and encourage people to use StyleSeat and use it more frequently.WeaknessesPoor Customer Service – StyleSeat has very poor customer service. There are no customer service representatives that users can reach by phone. If users experience any issues, they can only send an email, and even then most issues remain unresolved.PROMPT should put emphasis on having strong customer service; poor customer service has been an issue with several online scheduling companies which drives away users. StyleSeat’s premium appointment booking is also a unique feature that lets users book appointments outside of the usual hours for a premium rate – this is also something that PROMPT can benefit from.BookerBooker by MINDBODY is a cloud-based booking solution that provides businesses in the cosmetics and wellness industries, such as spas and salons, tools to help them to manage their booking routines, payments, customer interactions, and marketing activities. Booker was founded in January, 2007 and was later acquired by?MINDBODY in March, 2018, overall raising a total of?$77M in funding.?Currently, they have over 500 employees in the organization. Booker also enables businesses to sell their services online, through their website and a network of partner sites and apps, creating a seamless online booking experience for consumers. Moreover, they process over one million appointments each month across 70 countries. Headquartered in New York City, Booker’s customers include Fortune 500 companies as well as thousands of local service businesses. Business Businesses get a number of benefits to attract and retain customers in smarter ways. Booker understands the market well for the businesses and provides them with greater visibility on social channels and online listings, so new customers can easily connect with them. Booker provides three different types of monthly plans - Essential Plan (US $129), Accelerate Plan (US $239) and Ultimate Plan (US $349). Each plan has its own features, with the Accelerate Plan being the most popular among businesses. Online/Mobile Booking – With Booker’s online booking page, users can book appointments anytime. Businesses can customize the booking design so the users can see available slots, schedule multiple services and view their descriptions. Automated Retention Marketing – Booker helps create potential contact lists through smart marketing that updates instantly based on clients’ satisfaction and interaction with the service provider. This automatically sends them customizable emails and texts that convert drop-ins, win back lost customers, and retains customers.Management – With Booker’s employee scheduling software and payroll management, businesses can skip the manual updating to avoid errors and be well organized. For businesses, Booker helps to track customer bookings, memberships and manage marketing campaigns.Users Users can easily access the mobile app or the website and search for their desired service, manage their calendar and book their appointment with a service provider based on their history and proximity. With mobile payment on checkout, it becomes convenient for both parties as it becomes fast and reliable. Customers can even purchase customizable gift cards from the website or through the app.ReviewsPositive reviews talk about how the app is easy to use and easy to set up, with businesses often mentioning that it is easy to train new employees to use the software. Negative reviews, on the other hand, mention how there are unexpected issues with the app, with problems occurring like confirmation emails not being sent, recurring appointments not going through, etc.Website/Mobile App AnalysisThe Booker app is accessible on all the devices which gives more flexibility to the businesses and users. The website homepage has a simple interface with different features elaborated effectively of what they are offering to consumers. People can view customer stories to get a wider personal experience from them. Moreover, they have listed marketing tools for the businesses to grow. The mobile app is very flexible for customers and their clients. Managing the calendar is seamless as the service providers and their clients can view, manage, update, and cancel their appointments. Payments and customer profiles can be monitored as well, providing additional benefits. Strengths Funding – Although Booker is a private company, they have raised US $77 million in funding, which will allow them to further develop the software. Location – Booker operates in more than 70 countries which gives them a competitive advantage.Ease of Use – The interface is user friendly which works well for the customer to browse anized – Booker helps to keep business organized and saves all clients information during repeat booking. It also helps to view the information needed to prepare for each client before the appointment. This helps the business to provide a better experience to their clients.WeaknessesMobile App – Sometimes the system glitches and cash amounts do not match with the Point of Sale (POS) systems. There were other issues noted as occurring frequently while trying to book multiple appointments. These glitches and the app not running properly lead to an unsatisfactory experience for users.SimplyBook??SimplyBook, also known as Notando Ltd. is an online scheduling solution for small and medium-sized businesses of all types. Service companies can book online with any online devices and accept bookings through websites and mobile apps. SimplyBook was founded in December, 2001 and their headquarters are in the European Union. They provide high quality booking services for companies all over the world and seek to help them grow and prosper. Their main idea is to be simple, yet flexible so that their software can be adapted to meet different business needs. Their secure appointment system is designed to make bookings easy and comfortable for both of their users and client. Currently, there are about 50 employees working in the organization. BusinessSimplyBook focuses on providing services to small and medium size businesses of all types and strives to provide high quality service to businesses from all over the world to grow. SimplyBook offers a range of services to businesses like online bookings, notifications, online payments, business analytics etc. SimplyBook for businesses has a free version and 3 payment plans – Basic plan for US $9.90/month, Standard plan for US $29.90/month and Premium plan for US $59.90/month. The free version only has only select key features, and businesses get access to more features the more they pay. Online Booking – Businesses have to organize their schedules differently, so flexibility is key. Organizations can set specific opening hours for the business and can add buffer time in between services to avoid back to back bookings. Businesses can choose to set their own cancellation policy and can also set options to book recurring appointments. Service providers can easily sync their bookings into their Google/Outlook calendar which can help them to see what’s coming up in the future. Simultaneously, personal engagement can be viewed with professional bookings, giving a complete overview of their schedule. Notifications – Reminders play a crucial role in appointment scheduling as it keeps the clients and service providers on track. Booking confirmation and appointment reminders are automatically sent to the designated client through email and text message. This helps to decrease no shows. Website – Businesses can create their own personalized website without any design skills needed and can choose from variety of templates. They can adjust colors based on their branding and logo. To make it more attractive they can add background images similar to their business to improve online presence. Online Payment – Online payment and Point of Sale (POS) systems are offered to clients to enjoy a seamless experience from booking an appointment to checkout. With online payment options, providers can charge full or partial payment online. A range of payment options are available such as PayPal, Zooz, Stripe, Skrill and Dwolla. Automated emails are sent to customers after the service to gather feedback.UsersUsers can get multiple benefits through SimplyBook – they can book an appointment through SimplyBook, through the business’ website or social media pages, make recurring bookings, and receive automated booking notifications. Users can also visit the “marketplace” which has the list of all the companies in the area and can book appointments with them. Clients can also benefit from daily offers, coupons etc. and book or reschedule appointments whenever it’s convenient for them and sync appointments to their calendar.Reviews Most reviews done by the business users showed a positive response as they were satisfied with the great features and user friendly interface of SimplyBook. Customers were happy with the reliable software system as their customers were giving them positive feedback for being able to easily schedule an appointment. Negative feedback was related to the cost of the technology as some thought it was too expensive. Time zone confusion created some problems in scheduling appointments for clients. Website/Mobile App Analysis The website it gives a clear outline of and information on the online booking system for various sectors with a great interface. Scrolling down the page, all benefits and customization options are available for businesses to look into for a better understanding of what is being offered. Reviews and testimonials are also listed by a range of businesses which are currently using SimplyBook. Tutorial videos and latest blog posts are at the end of the page. The mobile app is very user friendly and operates smoothly.StrengthsPayment Plugins – A number of online payment options are available through PayPal, Zooz, Skrill, Dwolla, and Bitcoin. Website Builder – Various templates are available for businesses to choose from when they build their own website. This helps them to establish their own brand differentiation. Customer Service – The technical support is responsive via web chat and staff are friendly. A focus is placed upon solving the problem quickly. WeaknessesMerge feature – The same client information can be input into the system multiple times and this can create multiple client profiles, which do not merge like they are supposed to.Calendar Sync – Rescheduling an appointment by the user does not always sync properly which can lead to confusion.TaskRabbit??TaskRabbit is an online on-demand service platform that connects users to cleaning, moving, handyman services, and more . TaskRabbit was founded by Brian Leonard, Kevin Busque, and Leah Busque in January 2008. The company’s headquarters are located in the San Francisco, California and has around 100 employees. TaskRabbit has made two acquisitions – in January, 2012, the company bought SkillSlate, an online service provider directory, and in November, 2012, TaskRabbit bought One Jackson, an e-commerce site for children’s clothing. On September 28, 2017, IKEA bought TaskRabbit (vertical integration). Prior to being purchased by IKEA, TaskRabbit had received approximately US $37.8 million in funding. It is still a private company, but TaskRabbit pre-IPO stocks are now being traded in the market. TaskRabbit has a simple revenue model, where they take 15% of what users pay for services.BusinessPeople who sign up on TaskRabbit for the purpose of finding work are called “Taskers”. People register to be Taskers, TaskRabbit then verifies the identity of applicants and also provides info sessions for them. Taskers can choose when they want to work and can also set their own hourly rates for different types of tasks. When users post tasks, Taskers can accept the job, set a time which works best for both the user and the Tasker, complete the work and then invoice the user. UsersUsers can use the TaskRabbit website or the TaskRabbit app – users can post what work they need to get done or users can choose from hundreds of existing categories, then choose their Tasker based on the Tasker’s reviews and price, and confirm the details of when and how the work is going to be done. After the work is done the user can pay the Tasker through TaskRabbit and also leave a review.ReviewsCustomer service reviews vary greatly for TaskRabbit. Most of the positive reviews mention how easy it is to use the app and book services, with great in-app chat and email notifications. The positive reviews also mention how the Taskers are helpful, skilled, quick, and friendly. On the other hand, the negative reviews talk about how the Taskers are strangers which has made some users feel unsafe. Other negative reviews mention sudden cancellations, Taskers not being skilled, and invoicing problems that take long periods of time to resolve. Issues also seem to arise when a user tries to book more than one task at the same location concurrently .Website/Mobile App AnalysisThe TaskRabbit website and the mobile app both have a clean and modern user interface. They are easy to use, and they have featured projects and several different service types to choose from, making it easier for users to describe their tasks. Strengths Branding – IKEA bought TaskRabbit, and since then IKEA has been referring customers to use TaskRabbit for all their furniture assembly and other home services.Location – TaskRabbit operates in multiple cities across the United States, Canada and Britain, they have the advantage of having entered the market early.WeaknessesCustomer Service – TaskRabbit provides poor customer service – there are long wait times to resolve issues and sometimes users are not reimbursed even after having received low quality work.Tasker – The Taskers are not always skilled and qualified to do the work. The verifying process for Taskers is not very effective, which results in unskilled workers and users are driven away due to having experienced unprofessional work.In contrast to TaskRabbit’s pricing model, where they charge users 15% of their total cost, PROMPT’s pricing model charges service providers $1/booking. The on-demand home services market is also a potential market for PROMPT, and PROMPT may want to adopt a version similar to TaskRabbit’s pricing model to generate more revenue. Porch??Porch is a Seattle based company which serves as a platform to help homeowners in maintenance of their home with professional installation, assembly, repair, maintenance, and other home services and to get projects done by connecting them with skilled home improvement professionals. Porch was founded in September 2012 and is currently operating with more than 250 employees. Porch has raised a total of US $101 million in funding. Their most recent acquisition was HireAHelper, LLC for an undisclosed amount in July 2019.?Their estimated annual revenue is US $260 million. Porch also partners with some big brands and retailers like LOWE’S, Walmart, and Google. These partnerships can help them increase their user base as the consumers will be assured of receiving quality services. Their main idea is to be fast and easy to tackle whatever's on your home to-do list and to connect users with a suite of free services, including a dedicated Home Assistant, 24/7 help, online project management, pro reviews, and much more. They also feature advice articles and let users connect and review local home improvement contractors and browse photos of home improvement projects. Porch has information on 3.8 million home improvement professionals and 140 million projects across the United States. The software is free for users and has a confusing pricing model when it comes to professionals.Business Porch provides registered professionals the right control of the opportunities with which they can get the work done in the way they want. The pricing model for Porch is complicated – professionals cannot see and take jobs unless they buy “leads” from Porch, and these leads vary in price from US $5 - $65 depending on the type of job and the location (leads vary in price depending on the postal code of the work). Moreover, buying leads does not guarantee the job because the user has to approve of the professional as well. Porch also has a subscription model called Vetted Pro, which costs US $360 per year. This provides a competitive advantage to them with some upgraded features. Moreover, they get Pro Reward for every dollar they spend on Porch by earning a 5% credit which they can apply to future fees. Profile Customization – Professionals can highlight and modify their profile content to become informative and attractive to the customers. Work Preference – Professionals can specify about the type of work and project they offer; this helps to manage time and work efficiently. Notifications – Porch provides options to get notified for work through email, text, or direct phone calls which helps them to be available for their customers as quickly as possible. Users Porch provides users with a simple software in which they can easily define the nature of the work and then Porch Home Assistant will match the work with a vetted professional to get it done, providing upfront pricing and a presetermined project timeline – all the user is required to do is agree to the scope and price of the work. While booking with Porch, users can view the ratings and basic information for the service provider. Porch offers another option to clients where they can connect them with several local professionals who can complete the project and it is then up to the homeowner to get their own estimates and manage the messaging, scheduling, and timeline themselves.Users are also protected with the Property Protection plan in which Porch provides up to US $1,000 against losses from deposits on unstarted work or property damage. Additionally, When you use Porch Services, they commit to getting the job done right. If something isn't right the first time, they promise to make it right whenever possible. Otherwise, refund could be offered.ReviewsPositive reviews about Porch talk about how the workers were skilled and finished the work in a timely manner, how it was easy to search for the job that the user wanted to get done. Negative reviews talk about poor quality work, poor customer service, and professionals complained about how they had to buy leads that do not result in getting work.Website/Mobile App AnalysisPorch website has an easy interface in which consumers have an abundance of services to choose from. Professionals can also have highlighted projects so users can know the latest trends in the market. All projects are clearly stated with cost guidelines and cost calculator in which users can get an estimated quote with cost comparison options as well. Additional features are provided to consumers such as planning guidelines, inspections for quoted prices, Porch Home Assistant etc. Porch also has a mobile web-based app which both iOS and Android users can install. The app has similar interface and features to the website. StrengthsLocation – Porch has impressive funding and revenue, and this is due to all the different areas they serve.Partnerships – Strong partnerships with companies like Walmart and Google boost Porch’s brand image, leading to more people using the software.WeaknessesUnprofessionalism – Communication gaps between professionals and users, and unprofessionalism leads to scheduling errors, no-shows, and unprofessional work. Pricing Model – Porch’s pricing model is very inconvenient for professionals as they cannot get customers without buying leads and buying leads do not guarantee customers.Market OpportunitiesExpansion – Companies operating in the online appointment scheduling market are scalable. If companies can differentiate themselves and gain a competitive advantage in the market, they will be able to expand quickly to other areas.Market ThreatsCompetition – There is high competition in the market. There are several scheduling apps in the market, with each having their own unique offerings in attempt to gain a competitive advantage in the market.Businesses – Existing businesses using other appointment scheduling software can also be a threat, as customers who are loyal to those businesses will adopt whichever appointment scheduling software the business is petitor Analysis Conclusion??The competitors in the online appointment scheduling market and the on-demand home services market each have their own advantages, disadvantages, and overall points of differentiation. Among the competitors for PROMPT, Booksy, Vagaro, Schedulicity, TaskRabbit, and Porch already operate in Halifax, Nova Scotia. To compete against these companies, PROMPT Technologies will have to differentiate themselves. Ease of using the software, a user-friendly interface, a simple, clean, modern looking webpage/app, online payment options and good customer service are all features that users value. Notifications/reminders and cancellation fees are some features that businesses use to reduce no-shows. Rewards points, discounts, and coupons can be used to promote the business. PROMPT should focus on these features and build an app that runs smoothly and without any major glitches. PROMPT already has a simple pricing model, and is able to simplify their operations by not offering employee tracking (payroll services, hour logging) or payment options. If PROMPT was looking to change their revenue model, they should implement a simple subscription model similar to others such as StyleSeat. PROMPT is able to differentiate themselves based on their 24-hour timeframe that all bookings are scheduled within, utilizing both professional and the casual temporary staff space. PROMPTBooksyVagaroSchedulicityStyleSeatBookerSimplyBookTaskRabbitPorchActive in Halifax marketAvailability of professional staffAvailability of casual staffOpenness to early stage entrepreneurs and home based businessesQuick, easy implementationSimple, flat rate feeAdvertising & Promotion??PROMPT will be able to advertise and market their business to customers within their defined target market through the effective use of online advertising. Brand PerceptionThere are a number of other businesses in the region who are also offering a similar style of service through mobile apps that will be competing for the same potential customers. The brand that the organization has and uses to represent themselves speaks to others before you are given the opportunity to - it is important that it is sending the right message. It may seem clear to those within the business that they are the best choice and the right company to choose to do business with, although there is a certain amount of persuasion required to encourage others to come to the same conclusion as those on the inside3. The consistency of the brand and what it symbolizes should have the strength to inspire people to seek their servicers through the app or otherwise see the PROMPT brand in a positive way. The audience must be able to easily identify the value that the company is trying to communicate – what makes them different and the superior choice within the market compared to competitors such as Porch, TaskRabbit, and Booksy.?This is exhibited in part by PROMPT’s high level of customer service, specific booking timeframe, economical pricing model, and more that they have to offer. The perceived value that a consumer is able to recognize correlates to the price that they are willing to pay for a good or a service, but further to that their willingness to choose one app over another and their overall trust and confidence in the brand. Establishing this value is a method to encourage differentiation from other apps who are offering similar services and competing for the same customer buy-in.Brand PersonalityAll brands evoke different responses from different people. The personality of a brand is the consumers’ connection (whether it is positive or negative) that drives them to either seek out a brand or avoid it.6 How the organization manages their brand’s impact on consumers is the difference between a successful and unsuccessful brand. It is important for businesses to have a full awareness of their brand’s personality and how that aligns with their core identity, and is perceived by the consumer. As this is a subjective judgement, there can be difficulties in deciding which words/depictions represent the business best and the value that it has to offer, but also have a positive impact on different individuals. This can be a difficult area to navigate, but is of exceptional importance to build a strong brand and encourage users to select PROMPT over others. Platforms to be UsedFacebook stands out among social media platforms for its wide reach, targeting capabilities, and detailed analytics. The platform has 2 billion monthly active users worldwide. Businesses typically use Facebook as an advertising medium to build relationships and brand loyalty. The most common demographic of Facebook’s ad audience is aged 25 through 34 (30% are in this age range) – a large portion of PROMPT’s target. According to a consumer report, 78% of Americans have discovered products to buy on Facebook – easily justified by the fact that 98% of B2C businesses use Facebook. The average time spent per Facebook visit is 20 minutes, making it very important to make a bold impression in this limited timeframe. Instagram is largely used as a visual medium, which is excellent for building brand awareness. Instagram has a common overlap with Facebook in their most common age demographic, with 270 million users ages 25-34 (32% of total users), and then an additional 131 million users between the ages of 35 and 44 (15% of total users). Instagram for business can be advantageous with 80% of users following at least one business, 60% of users discovering products on Instagram, and 75% of users taking action on what they’ve seen by visiting a website or seeking more information on what the business is presenting. In this search it is vital that consumers see positive content supporting what they would hope for in such a service – this can be through information and details presented on the website, customer reviews etc. Social media traffic can further be directed to app stores by including a call to action, encouraging the viewer to download the app. Links to the Apple App Store and Android’s Google Play on social media profiles/accounts can be useful for conversion – turning a viewer in to a customer. Engaging in Search Engine Optimization (SEO) techniques such as using keyword rich content (using words that people might search for when interested in finding temporary work in the gig economy or those looking to fill a need with a service) can be of particular relevance to ensure that PROMPT is the first brand that consumers see when looking for on-demand services such as those made available by them. Customer Service Policy??Customer service inquiries related to specific services, providers, and the provision of services will be directed to suppliers. PROMPT will manage customer service from the app perspective only – managing any issues related to booking challenges, questions related to terms of use, profile registration, app crashes etc. PROMPT will employ one person who will be responsible for the management of this role. Expectations will be outlined for customer service strategies including anticipated response time and remediation of various challenges encountered. PROMPT will put a strong emphasis on customer service and customer satisfaction as part of their strategy to differentiate from competitors who commonly lack in this area. In this In this section, describe the physical aspect of your business operations: your location, current and future capacity, lease details, your equipment and technological requirements, and any environmental or other regulations that apply.Location??PROMPT Technologies will begin operations in Halifax, Nova Scotia with plans to expand as consumer adoption and uptake allows. Halifax is home to a diverse population of over 431,500 people, approximately 70% of whom are between the working ages of 15 to 64.13 Users will be able to view a map that will show their current location and options of service providers near to their general geographic locale. Users will then be given the autonomy and choice of the service provider to hire. POLICIES AND PROCEDURESHours of OperationsPROMPT offers a 24-hour advance booking window. The app is available to users 24/7, but only allows for schedule changes and bookings to be made up to 24 hours in advance. Due to this short booking timeframe, cancellations are not allowed and will be penalized along with no-shows according to the individual supplier’s outlined policy – determined at their discretion. Number of Employees??Initially, PROMPT will employ 2 employees – one to be responsible for customer service and customer success, the other to maintain the app and fix any bugs. Details on individual salaries are included in the financial projections as part of the Appendix. Specialized skillsets such as initial app development and digital marketing will be outsourced in order to acquire top tier talent without concerns of internal management (ie office space, payroll, HR responsibilities etc). As the company gets further established, additional employees may be hired as seen fit. Project FinancingA budgeted $250,0000 is required to start the business, to be taken out as a loan from a financial institution of choice (the following calculations are based upon the use of BDC). This monetary requirement is needed to cover startup costs as well as operating expenses until PROMPT reaches a point where they can self-sustain based on growth in revenue. Complete financial projections and analysis can be found in the Appendix. APPENDIXLong Term AssetsPROMPT will require the following long-term assets to maintain operations:Cost AssumptionsThe app will cost 60,000 to be created and is non-depreciableThree computers; one for the owner and two for the employees 3 @ $800/ unit = $2,400Three computer chairs and desks3 Chairs @ $100 /unit = $3003 Desks @ $160/unit = $480 $780A printer for office$225These Assets will depreciate at the following expected rates:ClassRate Description820%Furniture, calculators, cash registers, fax machines, display fixtures, refrigerators, machinery, tools (>$200), and outdoor billboards1030%Automobiles, vans, trucks, buses, tractors, trailers, drive-in-theatres, computers, software, and timber cutting equipmentDepreciation TableYear OneAssetPurchase PriceClassRateYear 1 Dep.Book ValueYear 2 Dep.Book ValueYear 3 Dep.Book ValueInitial PurchasesComputers2,4001030%7201,6805041,176353823Office Furniture780820%156624125499100399Printer225820%451803614429115Sales DistributionThe following assumptions are about the distribution of sales throughout the year, assuming that PROMPT would start up in January.Year 1, there would be steady growth leveling off by the tenth month. Year 2, and 3 distributions show a decline in December. This is a result of increases in consumer spending in the December holiday season, resulting in lower available appointment slots. This results in lower usage for Prompt. The significant increase in January results in the decrease in consumer spending in January, leaving more appointments free and allowing our service to be of greater use to partner companies.Year OneYear TwoYear ThreeMonth 12.0%10.0%10.0%Month 23.0%9.0%9.0%Month 34.0%8.5%8.5%Month 45.0%8.0%8.0%Month 57.0%8.0%8.0%Month 610.0%8.5%8.5%Month 711.0%8.5%8.5%Month 811.0%8.5%8.5%Month 911.0%8.0%8.0%Month 1012.0%8.0%8.0%Month 1112.0%7.5%7.5%Month 1212.0%7.5%7.5%Total100%100%100%Assumptions for Expected Growth RateFor the first year, the assumed initial amount of sales is 5,000. During the second year of operation, their sales growth would be around 80%. In the third year, the growth rate estimates would be around 60%. For the following years, it will level off at around 15%. Projections for Month to Month Earnings (first three years)Year 1100150200250350500550550550600600600Year 2900810765720720765765765720720675675Year 31,4401,2961,2241,1521,1521,2241,2241,2241,1521,1521,0801,080Opening Balance SheetBreak Even AnalysisConsumer PopulationAssuming that PROMPT is a great success, the most we can expect is a 5% adoption rate for those who own smartphones in Nova Scotia. In 2019, 26.6 million people of the 37.59 million population of Canada used smartphones, which equates to 70.76% of Canadians having smartphones. When considering the population of Nova Scotia which is 971,395; there are 687,359 with access to a smartphone. We can expect 5% of them will download the application. This leaves PROMPT with 34,367 potential consumers. Operating ExpensesOn an annual basis, PROMPT will encounter the following expenses. We have chosen not to include loan payments for our break-even analysis, as those will vary based on the year. Our estimate includes the expenses that will always remain with the company. The gross profit margin is 97% because each sale PROMPT generates, is subject to the MasterCard/VISA fees directly associated with it.Gross Margin as a Percent of Sales97%Operating ExpensesAdvertising720Bank Charges600Depreciation921Employee Wages71,000Employee Benefits6,890Insurance504Management Salary35,000Office Supplies600Phone1,800Rent9,000Utilities720Interest on BDC Loan18,144Total Operating Expenses145,899Break Even in Sales Dollars150,411Break Even in Sales Dollars/ Month12,534$1 Revenue ModelTo break even with $1 revenue for the booking model, PROMPT will need to make $150,411 of sales in order to break even. In other words, on average each of our 34,367 customers would need to make 4.4 appointments per year.Alternative 15% Revenue ModelAlternatively, if PROMPT earns the commission of 15% on every booking, PROMPT would have to make $150,411 in sales to break even. In other words, the total transaction through PROMPT App would be $969,406 annually, and every customer would have to spend approximately $29 per year.15% Model Calculation Breakdown:Total amount required through transactions = (15% / 100%) * 150,411 = $ 969,406Expenditure required annually per customer = 969,406 / 34,367 = $ 29Assumptions for Financial ProjectionsAssumptions for sales:It is assumed that all sales will be cash-equivalent sales as they will be charged directly through VISA/Mastercard or PayPal.Assumptions for expenses:PROMPT will start with one management employee (owner) and a support team which consists of a customer service representative (CSR) and a back-end developer. These three individuals will launch the services. These activities will include but are not limited to: setting up offices, marketing activities, etc. Assumed CSR Salary is $28,000 or $2,333.33 monthly.Assumed Back end Developer Salary is $46,000 or $3833.33 monthly.Assumed Manager (Peter’s) Salary to be $35,000 or $2916.67 monthly.Employee benefits will come out to be 6.5% of salaryFor an office space in Dartmouth of 750 feet, it will cost $750 monthly.App Hosting fees on App Store and Google play will be an estimate of $120 annually, or $10 monthly.Based on TruShield insurance, insurance is approximately $42 monthly. Although a business checking account from BMO is free of charge, bank charges of $50 per month for transaction fees.$50 a month towards office necessities such as:Printer Ink/TonerPens, paper, etc.Coffee Maker SuppliesUtilities will cost the business $60 monthly.$60 monthly can be allocated towards advertising (Facebook, Instagram, YouTube, etc.), with tasks being carried out by the CSRA phone plan for each employee will be approximately $150 monthlyFinancial Projections Following are financial projections for PROMPT Technologies during the first 3 years of operation. HOW TO PRINT THESE INSTRUCTIONS ................
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