" Creation of the 'near plumber' application: " - Entrepreneurship - Module " Near Plumber is an application that facilitate - Mohamed Tirani

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" Creation of the 'near plumber' application: " - Entrepreneurship - Module " Near Plumber is an application that facilitate - Mohamed Tirani
Professional Project

     Entrepreneurship - Module

« Creation of the 'near plumber'
         application: »
 « Near Plumber is an application that facilitate
        communication with plumber »

   Prepared by: Ahmad Nemer Mostafa

   Instructor: Mohamed Tirani

                        (2017-2018)

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" Creation of the 'near plumber' application: " - Entrepreneurship - Module " Near Plumber is an application that facilitate - Mohamed Tirani
Table Of Contents

1. Executive summary                                                                          0

2. General overview :Industry and Startup                                                     0
3. Market research and External / Internal factors analysis                                   0

      3.1- Marketing research and External factors analysis                                   0
4.
         3.1.1- Primary market research                                                       0

         3.1.2- Secondary market research

         3.1.3- PESTEL analysis                                                               0

         3.1.4- Industry competitive intensity study (Porter’s Forces)                        0
         3.1.5- Key success factors in the organization's environment                         0

      3.2- Internal study and decission making :                                              0
         3.2.1- SWOT Analysis                                                                 0

         3.2.2- TWOS matrix                                                                   0

4. Startup execution stages                                                                   0

      4.1- Conception stage                                                                   0

         4.1.1- Business Model Canvas                                                         0
         4.1.2- Value proposition canavas                                                     0

         4.1.3- Adapted economic model                                                        0

      4.2- Quality managment system study                                                     0
         4.2.1- Processes description                                                         0
         4.2.2- Evaluation tools                                                              0

         4.2.3- Risk assessment and prevention                                                0

      4.3- Marketing Plan                                                                     0
         4.3.1- Strategic Marketing study (Segmentation,targeting,positionning)               0

         4.3.2- Operational Marketing (4 P of the marketing mix)                              0

      4.4- Financial study                                                                    0

         4.4.1- Cost structure                                                                0

         4.4.2- Profit structure                                                              0

         4.4.3- Provisionnal result                                                           0
         4.4.4- Financial analysis                                                            0

Bibliography                                                                                  0

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" Creation of the 'near plumber' application: " - Entrepreneurship - Module " Near Plumber is an application that facilitate - Mohamed Tirani
Appendics                                                                              0

                               1. Executive Summary

  The NEAR PLUMBER is an exciting new service that offers both employees and
  costumer an easy and efficient communication and fixing service.

  An extensive part of our company work is based around providing our customers
  specialized and professional plumbers in and around the area with service with an
  application about 5 or 6 mg on phone.

  My service consist 10 country around nabateyye city (nabteyye, nabateyye
  fouka,zebdin, harouf, dweir , ansar,zawtar al sharkeyye, zawtar al gharbeyye,toul,
  kafar roman), this countries are included on google map to let the costumer and
  the plumber to know the location which to visit.

  we provide the best mod of plumbers, taking into consideration the customer
  needs, comfort, safety and entertainment at low cost and flexible plumbers
  schedules.

  The owner of the application will be me since it doesn’t need a lot of money.

  I believe that we will be the best and the most used application all

  Over Lebanon by 2025.

  The paid money will be online on my application.

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" Creation of the 'near plumber' application: " - Entrepreneurship - Module " Near Plumber is an application that facilitate - Mohamed Tirani
2. General overview : Industry and Start-up

Description
       -As a civil engineer student my business will be in building structure roads etc ..

       So that I chose near plumber as a part of civil engineer, I chose a mobile application
industry to facilitate the demands of the costumer at any problem to be face in plumbing system
in their own houses companies, schools, universities …

       -near plumber is absolutely a growth business industry since I can add more cities in my
application, I can go to other fields such as electricity, tiles, painting. This growth will be due to
the satisfaction of the application and the income money each month.

       -Moreover growth of cities and population increase our plumbing work starting from
small plumbing problem to huge and big plumbing work.

       Our company is high on safety of work, new equipment's is demanded from our plumbers
every year if needed, plumber’s sessions given by engineer and sanitary companies.

       We carry out regular scheduled time based servicing to our

       Plumbers and customers. We fully understand the importance of safety and therefore
make sure all our plumbers are professionals and specialized. Not to forget that safety and
satisfaction is what we deliver and our customer pleasure is our business.

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" Creation of the 'near plumber' application: " - Entrepreneurship - Module " Near Plumber is an application that facilitate - Mohamed Tirani
3. Market research and External / Internal factors analysis
    3.1 Market Research and External factors analysis

           3.1.1- Primary Market Research
   I think my primary researches would be urban expansion of building.
   population in cities

    Urban expansion                                         Population

           3.1.2- Secondary Market Research

   My other researches will estimating the number of plumbers in each area to be recovered.
   Estimating plumbing problems in each area I want to recover.
   Sanitary companies in Lebanon.

             Some sanitary goods which can advertise on my application as paid ADS

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" Creation of the 'near plumber' application: " - Entrepreneurship - Module " Near Plumber is an application that facilitate - Mohamed Tirani
3.1.3- PESTEL analysis

The environmental influences on the company into six main macro-environmental categories: Political, Economic, Sociological, Technological, Ecological
and Legal.

                                                                                                                         Impact               Time
     Category              Possible factors                              Business impact
                                                                                                                   Opportunity /Threat       frame
 Political          pending tax reform               -will effect on plumbers adopted by my application since     Opportunity /Threat
                                                     work will increase and tax too
                    Increasing international trade   Sanitary goods cost less which encourage consume to buy      opportunity
                    agreement                        causing much work for plumbers
                    Enhancing public health          -pollution of water and soil is caused by plumber problem    opportunity
                    policies                         when waste water goes through water and soil
 Economic           Decrease of growth of            -danger in all field                                         Threat
                    economy
                    Unemployment rate                   People will fix their plumbing problem with their hands   Threat
                                                        and many will learn to be a plumber

 Social             Increase in population              It will cause increasing in plumbing system problem       Opportunity
                                                        since more we use which will cause more work and
                                                        money.
                    Widening wealth gap                 Will cause more advanced plumbing system which will       Opportunity
                                                        cost more and have more problems to fix in future
                                                        And uses of technology which enhance to download
                                                        my application

 Technological      Service business software        -keep in touch with technology market                        threat
                    updates

                                                                                                                                           6 |P ag e
Legal            local health regulation     -if plumbing system worked wrongly may cause a lot of        Opportunity      6 month
                                             diseases in our life so professionalized plumber is needed
Ecologic         Climate change                   -climate change may cause some plumbing problems        Opportunity      2 years
                                                  due to expansion and contraction of pipes…

            PESTEL Analysis – Study Result

                                                                                        Years
            Category                         1                     2                      3                     4          5
Political
Economic
Social/Sociocultural
Technological
Ecologic
Legal

Indications for the result Highly risky                Risky                           Not Risky                    Good

                                                                                                                            7 |P ag e
3.1.4- - Competitive intensity study in the industry

1. low switching cost – strong force
2. moderate number of buyers – moderate
force                                                                                                               1. Cost of application –strong force
                                                     Customers/Bu
                                                         yers                              New Entrants             2. Unemployment people – weak force
                                                                                            Strong Power
                                                            Weak

1. new idea which not consumed by any
before -weak force
                                          Substitutes or
                                           Substitution                   Competitive
                                                                            Rivalry                   Public Power           1. Universities, schools, municipality’s
                                               Strong                                                                        regulations - strong force
                                                                                                           Strong
                                                                              Strong                                         2. Sanitary companies – strong force

                                                                               Suppliers

                  1. Big family suppliers – strong force                         strong
                                                                                                       1. Large number of competitors – strong force

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3.1.5- Key success factors in the industry

Each force of competition can be countered by a series of elements, which constitute as many
KSF when this force is preponderant.

          Force of competition                         Elements to counteract it

    Threat of substitutes                o   Improved quality for application
                                         o   Fair price for both plumber and customer
                                         o   Take into consideration the comments and rating
                                             system for each plumber

    Threat of potential entrants         o   Build good relationship with municipalise
                                         o   Guarantee the work if done wrong and redo without
                                             money

    Bargaining power of buyers           o   Have a better quality (companies ADS) / price ratio.
                                         o   Honesty and work guarantee for good reputation

    Bargaining power of suppliers        o   Establishment of transfer costs (monthly
                                             subscription(plumbers, obligation or orientation
                                             according to the schools)

    Role of public authorities           o   Adaptation of international certifications (ISO 9001
                                             'quality of services')
                                         o   Have cooperation agreements or links with prestigious
                                             sanitary institutions.

          3.2 – Internal study and decission making:

                  3.2.1- SWOT analysis

Environmental scanning can influence an organization's strategy by creating both threats and
opportunities.

However, the structure of the environment does not in itself explain the success or the strategic
failure: The differences between the organizations involved must also be taken into account, ie.
Internal strengths and weaknesses must also be analyzed in order to finally reach strategic
recommendations

.

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Analysis of internal and external factors of the startup

                  Strengths (Internal Factors)                                                          Opportunities (External Factors)

   An ambition hardworking team                                                         Sanitary companies which will support us to use their goods
   Family support (money, words …)                                                     Lot of problems in plumbing system and lack of communication
   Easy access to the application                                                       between people and plumbers
   Trust of people                                                                     Municipalities which will work with to solve people problems easily
   Low cost amount
   Adding other field and cities

                 Weaknesses (Internal factors)                                                              Threats (External Factors)

   Gain trust of people                                                                Less awareness about harmful result of wrongly plumbing system
   Bad internet and Google maps doesn’t cover all places                                work or problems
   Honesty of plumbers I work with                                                     Software recommendation and help


                                                                                                                                              10 |P age
3.2.2- TWOS Matrix :

The TWOS matrix is built from the SWOT analysis conclusions or it allows to generate strategic options that correspond to different combinations of
internal and external factors.
                                                                                 The TWOS matrix

                                              Opportunity points                                                   Threat points

                                     S / O: Use forces to seize opportunities:                            S /T : Use forces to avoid threats:
 Strengths Points

                             Link companies with our application                                     Recommend some personal question by plumbers
                             More demands for adopted plumbers to be showed on application            to be trusted
                             Simplify the access of customer with easy platform                      Monthly application revision
                             When visiting see people other problems than plumbing issue             Rating system
                                                                                                      Security system

                               W / O: Minimize weaknesses to seize opportunities:                  W /T : Minimize weaknesses to avoid threats:
 Weakness Points

                            Event in municipalise, schools, universities                             Certificate from sanitary companies to be given to
                            Encourage companies to ADS on application                                 my team plumbers
                                                                                                     Widening my relationship with some targeted
                                                                                                       people in cities which can support us in money,
                                                                                                       honesty …
                                                                                                                                                  11 |P age
4. Startup execution stages
      4.1- Conception Stage
             4.1.1- The "Business Model Canvas"

Key partners              Key activities           Customer relationship   Customer segments
 Family and friends       Plumber service         mobile feedback        for all people aged more than 12 years since plumbing
 Companies                Sanitary ADS                                       is necessary for all building
 Municipalities              (advertisement)
                          

                          Key resources            Distribution channels
                           people payments         Mobile App
                           -companies ads          Advertising
                           -plumbers adopted by
                              application
                           -product marketing

                                                                                                                                     12 |P age
Cost structure                    Sources of income
 Software                         Visa card
 Employers                        Account
 marketing for the application    Cash if necessary


                                                        13 |P age
4.1.2- The value proposition canvas

       It represents the group of products and services that creates value for the customer. It aims to
       address an unmet customer need and improve its current situation.

                Collaborators side
Arrive on time (plumber)

Fair price

Professional plumber
                                                                                           Tasks
Easy payment (application)

                   Wait a long time

                   Unsafe fixing of the problem

                   Obliged by specific plumber in the city
  Pains
                   Lack of communication between people and costumer

Communicate with plumber by application

Get direction

Find the plumber (by CV inserted to be professional)                                    Desired
                                                                                        gains
Fixed and fair price

                                                                                          14 |P age
     Value Proposition Side (Product / Service)

-Save time

-Professional and specialized plumber with the problem that face him
                                                                          Characteristics
-Rating system                                                            of the products
                                                                          or services

                        Instant booking

                        Assigned plumber

                        Cost system
 Pain Relief

-plumber smart phone service (android/ios)

-Trusted companies to buy our plumbing products from and to be linked
with application.
                                                                        Gains Creator
--Visual   map

                                                                             15 |P age
4.1.3- Adapted Economic Model

      The adapted economic model:
       -percentage income money to the plumber from the costumer
      -ADS from companies.
      -subscription fee from plumbers.

      4.2- Quality Management System Study
     The "PDCA" method, also called the Deming wheel, is adapted
     to the creation approach and the implementation of the
     platform, which has helped to:

o Better understand the needs of applicants.
o Implement the processes necessary to achieve these needs.
o Measure the satisfaction of these applicants and evaluate
  the performance of the processes implemented.
o Make improvements and corrections decisions of the
  platform processes.

                                                                   16 |P age
4.2.1- Processes description

      Process Title            Process Actors                      Process Description                            Process                      Remarks
                                                                                                             Documents/Resources

 Registration         All people                Who’s not in need of plumbing system in his                 -full name
                                                home today? Application of plumber should be                -phone number
                                                with all people. The amazing thing about cell               -location on Google
                                                phones is that they are no longer just used for             map
                                                calling or texting. Then, what are the positive uses
                                                of this application? Steps:
                                                -Click on the check plumber
                                                -See who is the nearest plumber to your location
                                                -Choose the plumber you want do to his rating or
                                                whatever
                                                -Enter your location on Google maps to go to
                                                -fix the problem then pay buy visa card or cash
 Registration         Plumber                   1- The user create new account and present all necessary    - Credit Card Number       -5 % from the paid money
                                                documents .A verification by telephone number are used in   - cv + name of engineers   from customer
                                                place via SMS verification code.                            he worked with
                                                2-Credential information’s (Username & Password) are        -location
                                                send to actors via email.                                   -full name, age ….         -monthly payment 30 $
                                                3-plumber should pay a simple fee to be adopted by our      -experience years
                                                                                                            -                          each plumber
                                                application
                                                (Via Visa Or Master Card are used in place.)
                                                                                                                                       -15% for big plumbing
                                                                                                                                       project from municipalise

                                                                                                                                                   17 |P age
4.2.2- Evaluation tools

Quality objectives have been set with performance indicators for each of these objectives, the purpose of which is to compare them with the measured results.
                                                                        Table of objectives

               Goal                             KPI                                  Formula                            Target           Frequency of measurement

                                                                                                                150 costumer
                                    -15 costumer at first month                                                 /6month
                                                                      2 customer should download our
Max the costumer number                                                                                                                 At the end of each quarter
                                    -5 plumbers /first month          application /3day/first 3 month
                                                                                                                10 plumbers /6
                                                                                                                month

                                    Level of customer
Resolve all customer complaints                                   1 complaints costumer / 10 costumer           90 %                    At the end of each quarter
                                    satisfaction

Maximize risk prevention            2 plans is enough             Level of security should be > 90 %            0                       At the end of each quarter

                                    Average number of buyers
Maximize profit                                                       Revenue > cost                            300$/year               At the end of each quarter
                                    of our services or products

                                    Amount of the budget
                                                                  Amount of budget spent / Total amount of
Respect the expenditure budget      spent compared to the
4.2.3- Risk assessment and prevention

                                  Potentiality

                                                 Impact
           The risks                                                          The causes                           Potential impacts                      Preventive action

                                                            -Disconnection of the internet in Lebanon. -Loss of trust among users /          On mobile application:
                                                            -Failures or technical problems in the hosting customers                         -Adapt an emergency plan or the mobile

                                  Moderate
                                                 Moderate
                                                                                                                                             application can work for some services
                                                            server or in the platform itself.              -lose of ADS companies
 Unavailability of the platform                                                                                                              offline internet by using email On mobile
                                                            -hackers attack                                payment                           application.
                                                                                                           -bad reputation of the platform

                                                            Customer changes his mind The service           Loss of trust among users /      Costumer should pay 15$ if he
                                                                                                                                             recommended a plumber to the location he
                                  Moderate

The customer refuses to accept                              presented to the customer does not meet his customers
                                                 Frequent

                                                                                                                                             demand.
or pay the service after                                    requests (quality, cost, Interns confirmation). Financial losses (plumber,
confirmation.                                                                                               application, employers )

                                                            If there is a lot of people want specific      Loss of trust among users /       Privacy in a way plumber cv wouldn’t be
                                                            plumber that will cause losing of time and     customers                         shown for very far people so that cant call
                                                 serious

                                                                                                                                             him
                                  high

High demands on plumber                                     maybe other plumber in application will        Financial losses (plumber,
                                                            leave.                                         application, employers )

                                                                                                                                                                            19 |P age
4.3- Marketing Plan :

       4.3.1- Strategic Marketing (segmentation,targeting and positioning )

        Customer Target Segmentation:

The adapted segmentation variables differ for each of the collaborators:

      Plumbers

      People: all people that may have plumbing problems in their houses companies...

      Municipalities

      Universities and schools

       Targeting :

Targeting variables adapted for:

      Plumbers
      Parents

                                                                                         20 |P age
   Adult people
      Ngo s who cares about environment and people health
      People aged >12 years

       The positioning :

Competition:

      The competition will be with the trust of people and nothing else since a new idea
      The other competition will be with the plumber who work lonely in his city and refuse to be adopted by any.

Competitive Analysis

                                                                                                                     21 |P age
Me                                                Competitor A

   Factor
                                    Weakness               Point Strength             Weakness                      Point
               Strength points                             over 5 Points                                            over 5
                                    Points                                            Points

              This service is for   Unique idea that may 2       Have a historical    Individual work which may 2
              all people            not be accepted by           relationship with    cause him lot of work that
Products/Se
rvices                              people                       people in his city   can’t handle alone

               free application   It may cost a little bit 2      All the income       -time                        2
               download but some more than plumbers               goes to him
Price          extra paid plumber who work individual
               to pay for us

              Can guarantee work none                     4      none                 If any problem happen can’t
              since we don’t want                                                     fix for lack of time and
Quality       to lose our good                                                        response
              picture in
              community

Selection

                                                                                                                             22 |P age
Me                                                Competitor A

   Factor
                                  Weakness                Point Strength             Weakness                       Point
             Strength points                              over 5 Points                                             over 5
                                  Points                                             Points

             Easy to use and call Be afraid of our        2
Customer
             any plumber he       service
Service or
after sale   want
service

             Plumber adopted     No experience            2      Good experience none
             should have         As a person on market
Expertise    experience

             Events and           New on market and       2     Moderate            Work alone so all               1
             advertisement       everything is new              reputation          responsibilities is his duty if
Company      should give us a    people afraid of                                   any problem happens it cost
Reputation   good Reputation                                                        him a lot of bad reputation
                                                                                    happens it cost him a lot of
                                                                                    bad reputation

              Nabatieh as a start Not a lot building      3     The place he live
                                  construction projects
Location

                                                                                                                             23 |P age
Me                                  Competitor A

   Factor
                                    Weakness           Point Strength   Weakness         Point
              Strength points                          over 5 Points                     over 5
                                    Points                              Points

              And there is a lack
              number of
              plumbers

              Reorts by medias, Languages dificulities 2
              pages on facebook
Sales
Method        …

              Reviewed at stated       Not evaluated   2
              intervals
Credit
Policies

              Can make any
              ADS for any
Advertising   company to
              increase our
              incomes

                                                                                                  24 |P age
4.3.2- Operational Marketing (4 P of the marketing mix)
       The marketing mix:

"The marketing mix (sometimes referred to as a market plan or a marketing policy) refers to the
coherent set of product, price, distribution and communication decisions of a company's or
brand's products.

       Product / Service Policy:

                           Provide plumbers to fix people problem in their house.
                           Provide plumbers for government and municipalities projects in cities
                           Provide work for many unemployed people such as cce engineer,
                            plumbers …
                           Provide a paid ADS for sanitary companies to display their goods
                           Safety and security of plumbing working

                 Name, logo and slogan of the product / service :

Product name justification:
      Near Plumber is the name of my application to show that the plumber is near to you and
       ready to fix your plumbing problem.

Slogan justification:
“We repair what your husband fixed“
A funny slogan to let people more curious to download our application.

Logo justification:

Having an attractive logo, with a colorful posters all around your country. Reports by different
media, and creating own page on your social media surely will reach all costumers

                                                                                        25 |P age
Year 1 /$                             Year 2 /$                                Year 3 /$                                Year 4 /$                          Year 5 /$

                                  Details

                                                                         Details

                                                                                                                 Details

                                                                                                                                                             Details

                                                                                                                                                                                                Details
                                                     Amount

                                                                                           Amount

                                                                                                                                       Amount

                                                                                                                                                                                Amount

                                                                                                                                                                                                                 Amount
                                                   CPC($0.3 per                                                   People
                                                                                                                                      1000x0.3=300$                           1500x0.3=        People
    Facebook                       People                                 People
                                                                                              750x0.3=225                                                    People
                                                                                                                                                                                                               2000x0.3
                                  Plumbers          click on            Plumbers                                   Plumbers                               Plumbers                          Plumbe
    Campaign                                         average ) need                            $                                                                               450$                            =600$
                                  Companies                             Companie                                   Companies                              Companies                          rs
                                                     500 click to
    Cost Per Click                                                       s                                                                                                                     Compan
     (CPC)Click to our                               show
     site/Facebook page                             500x 0.3 = 150
                                                                                                                                                                                                 ies
    Cost Per Mile (CPM)                             $
     Impression of our ads
     (site or page)

    Google Adwords                 Near             200$ per year        Near            200$ per year         Near                  200$ per year         Near             200$ per         Near           200$
                                   plumber                                plumbe                                 plumber                                      plumber           year             plumb           per
    SEO (Search                                                           r                                                                                                                      er              year
    Engine
    Optimasation)

    Events                       Plumbers     5 event/year =            Plumbers       5 event/year =        Plumbers                 5 event/year =        Plumbers     5                     Plumber         5
                                 People       1000$                     People         1000$                 People                   1000$                 People       event/year            s               event/yea
                                 Schools                                Schools                              Schools                                        Schools      = 1000$               People          r=
                                 Universities                           Universiti                           Universities                                   Universities                       Schools         1000$
                                 Municipalis                            es                                   Municipalise                                   Municipalis                        Universit
                                 e                                      Municipa                                                                            e                                  ies
                                                                        lise                                                                                                                   Municip
                                                                                                                                                                                               alise

                                                                                                                                                                                                 26 |P age
Blogger      blogger   4 blogger =   blogger   4 blogger =   blogger every 4 blogger =   blogger   4 blogger   blogger   4 blogger
             every 3   300$/year     every 3   300$/year     3 months      300$/year     every 3   =           every 3   =
             months                  months                                              months    300$/year   months    300$/yea
                                                                                                                         r

     Total   2400 $                  1750$                   1800 $                      1950                  2100

                                                                                                                 27 |P age
Pricing

              Pricing take place due to problem in plumbing system in the market rather than
               ADS from companies and subscription fee from plumber .

       Location

The location is in Nabatieh, but as a online service ,the place isn’t very important for people but
it is important for plumbers since they have some ignorance in technology.

       Distribution Channels

Nabatieh as first step

                                                                                      28 |P age
4.4- Financial study:

                       4.4.1- Cost Structure:

                                                              2019      2020      2021      2022       2023      2024
                              Purchase of goods          +     $0        $0        $0        $0         $0        $0
                           Purchase raw materials        +     $0        $0        $0        $0         $0        $0
                               Supply charges            +     $0        $0        $0        $0         $0        $0
                          Rent and rental charges        +     $0        $0        $0        $0         $0        $0
                               Repairs charges           +    $400      $200      $200      $200       $200      $200
                                  Furnitures             +     $0        $0        $0        $0         $0        $0
                         Advertising costs at Google     +    $200      $200      $200      $200       $200      $200
                       Advertising costs on Facebook     +    $150      $225      $300      $450       $600      $700
                         Advertising costs by email      +     $0        $0        $0        $0         $0        $0
                         Advertising costs by e-mail     +     $0        $0        $0        $0         $0        $0
Cost structure

                               Event expenses            +   $1,000    $1,000    $1,000    $1,000     $1,000    $1,000
                                Shipping costs           +     $0        $0        $0        $0         $0        $0
                       Development and hosting of the
                        technical platform (Website)
                                                         +   $3,500     $300      $300      $300      $300       $300
                       Development and hosting of the
                      Mobile Web Application Technical   +   $3,500     $500      $500      $500      $500       $500
                         Platform "Android and IOS"
                      Salaries and wages (1 employee)    +   $9,400    $9,400    $9,400    $9,400     $9,400    $9,400
                                   blogger               +    $300      $300      $300      $300       $300      $300
                                                         +     $0        $0        $0        $0         $0        $0
                                                         +     $0        $0        $0        $0         $0        $0
                                                         +     $0        $0        $0        $0         $0        $0
                                                         +     $0        $0        $0        $0         $0        $0
                                                         +     $0        $0        $0        $0         $0        $0

                               Sum of costs              =   $18,450   $12,125   $12,200   $12,350   $12,500    $12,600

                       4.4.2- Profit Structure:
                   -plumber adopted first year = 20 plumber should pay 30 each month to be adopted by our
                   application

                   30$ x 12x 15 = 5400 $

                                                                                                    29 |P age
-5% from income money to plumber after fixing any problem to people

                     Let’s say every problem cost 50$

                     So 0.2x50x500 problem = 5000 $

                         -big projects who needs engineer supervise I’ll take 15 % of income money from
                         plumber
                         Let’s say 2 big projects in first year
                         15000$ x 0.15= 2.250 $ (engineer + application)
                         2250+5000+5400=12650$

                                                                       2019      2020      2021      2022      2023     2024
                                   companies ADS                 +    $3,000    $4,000    $5,000    $6,000    $7,000   $8,000
                                   Sales of services             +   $12,650   $15,000   $18,000   $21,000   $30,000   $38,000
Profit structure

                        Sale of advertisements on the platform   +      $0        $0        $0        $0        $0       $0
                                   Sale of products              +      $0        $0        $0        $0        $0       $0
                                                                 +      $0        $0        $0        $0        $0       $0
                                                                 +      $0        $0        $0        $0        $0       $0
                                                                 +      $0        $0        $0        $0        $0       $0
                                                                 +      $0        $0        $0        $0        $0       $0
                                                                 +      $0        $0        $0        $0        $0       $0

                                   Sum of profits                =   $15,650   $19,000   $23,000   $27,000   $37,000   $46,000

                   4.4.3- Provisional Results

                   We started with a starting balance sheet at the end of the year 2017, then the five years of
                   investment (2018-2022) and the balance sheet of the year 2023 which will help us make
                   decisions.

                                                                                                      30 |P age
Gross Operating Surplus
(EBE) = Profit Structure - Cost   =   ($2,800)   $6,875   $10,800   $14,650    $24,500   $33,400
          Structure
   Margin rate = EBITDA /
                                       -0.18      0.36     0.47      0.54       0.66      0.73
          Turnover
 Depreciation and amortization    -    $400      $400      $400      $400       $400      $400
          Provisions              -     $0        $0        $0        $0         $0        $0

  Gross Operating Result =
     EBE-depreciation
                                  =   ($3,200)   $6,475   $10,400   $14,250    $24,100   $33,000
      Financial products          +     $0        $0        $0        $0         $0        $0
      Financial charges           -     $0        $0        $0        $0         $0        $0
    Exceptional products          +     $0        $0        $0        $0         $0        $0
     Exceptional charges          -     $0        $0        $0        $0         $0        $0

  Current result before tax       =   ($3,200)   $6,475   $10,400   $14,250    $24,100   $33,000
   Taxes on profits (15%)         -      $0       $971    $1,560    $2,138     $3,615    $4,950

  Net predicted result (RN)       =   ($3,200)   $5,504   $8,840    $12,113    $20,485   $28,050
   forecast cash flow from
  operations = Net result +       =   ($2,800)   $5,904   $9,240    $12,513    $20,885   $28,450
  amortization + provisions

   forecast cash flow from
      operations update
                                  =   ($2,545)   $4,879   $6,942    $8,546     $12,968   $16,059

                                                                              31 |P age
4.4.4- Financial analysis

   Net present value (NPV) over 5 years :
Net present value (NPV) is the difference between the present value of cash inflows and the
present value of cash outflows over a period of time. NPV is used in capital budgeting to analyze
the profitability of a projected investment or project..

   o VAN = -I + CF1 / (1+i) + CF2 / (1+i) ^2 + CF3 / (1 +i)^3+ CF4 / (1 +i)^4+ CF5 / (1 +i)^5

               -   (I) it is the amount invested
               -   CF is the estimated cash flow of each year.
               -    i it is the discount rate which is equal to 10% (interest on Treasury bills in
                   Lebanon = 7.08% and the risk is 1.5).

                          Net present value (NPV) over 5 years calculation

                                   -20000 Invested amount
                                  ($2,545)        Year             1
                                    $4,879        Year             2
                                    $6,942        Year             3
                                    $8,546        Year             4
                                  $12,968         Year             5
                                  $16,059         Year             6

                                $9,888.32 NPV

   Internal rate of return calculation
Internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of
potential investments. Internal rate of return is a discount rate that makes the net present
value (NPV) of all cash flows from a particular project equal to zero.

An investment project will generally be retained only if its predictable IRR is sufficiently higher
than the bank interest rate, to take into account, in particular, the risk premium specific to the
type of project.

                                                                                      32 |P age
Internal rate of return calculation over the 5 years

                                              Invested
                                      -20000 amount
                                     ($2,545)      Year              1
                                       $4,879      Year              2
                                       $6,942      Year              3
                                       $8,546      Year              4
                                     $12,968       Year              5
                                     $16,059       Year              6

                                   $9,888.32 NPV
                                             Internal rate of
                                        20% return
                                             Profitability
                                       $1.49 index

Recovery time of the amount invested:
                                                                                  33 |P age
Recovery time of the projet

                        Operating cash flow               Recovery time

  Year       1                       ($2,545)                      ($2,545)
  Year       2                         $4,879                        $2,334
  Year       3                         $6,942                        $9,276
                                                                                       2
  Year       4                        $8,546                        $17,822    $17,822 months
                                                                              $2,178.0 1080.66
  Year       5                       $12,968                        $30,790          0        7
  Year       6                       $16,059                        $46,849

                                                                   $104,525

                                                          To recover the
                                                          amount
                                                          invested $
                                                          20000 we need
                                                          5 years and 2
                                                          months

    Profitability Index:
The profitability index is an index that attempts to identify the relationship between the costs
and benefits of a proposed project

Profitability Index = (Net present value + invested amount) / invested amount

                       = (9888+20000) /20000

                       = 1.49> 1 => the project is profitable.

The company can expect to cash $ 0.49 for every dollar invested. That is, the net present value
is $ 0.49.

                                        Bibliography
                                                                                      34 |P age
   Books : Google form

   Studies, research projects… : Google form

   Reports :none

   Websites: didn’t state any but lot of website researches

                                                               35 |P age
Appendices

                        Study with people about providing plumbing importance

My name is AHMAD MOSTAFA; student at Islamic University. I'm working on a professional project that aims to
create a mobile platform that allows several parties "PLUMBERS, PUBLIC, PARENTS … " to facilitate communication
between people and plumbers with high work performance and safety.

The purpose of this questionnaire is to receive your proposals and recommendations to improve this proposed
service.

This study also allows us to know whether or not you match the profile of the NEAR PLUMBER.

Responses will remain confidential and will only be used for the purposes of the project.

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37 |P age
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