I.

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY………………………………………
2. GENERAL COMPANY DESCRIPTION………………………..
3. PRODUCTS AND SERVICES………………………………….
4. MARKETING PLAN……………………………………………
5. OPERATIONAL PLAN………………………………………...
6. MANAGEMENT AND ORGANIZATION……………………..
7. PERSONAL FINANCIAL STATEMENT……………………….
8. STARTUP EXPENSES AND CAPITALIZATION……………….
9. FINANCIAL PLAN……………………………………………….
10.APPENDICES……………………………………………………..
11.REFINING THE PLAN…………………………………………....
 I. EXECUTIVE SUMMARY
Information about product :
Our product is an application for , which helps users to take care about indoor
and exotic plants in different ways.Consumers can use their smartphones and laptops
to manage with it.Our application has several different programs with different
prices.
Problem, that we set :
For everyone it is familiar situation, when inspired by visiting green place or
surfing through the web site we buy a plant thinking «this will be a stand-in for
interior design sense» or « I will prove I can keep something alive».Or even when we
got plant as a gift and could not recognize which type of plant we have got. Although,
we can’t take right care of it. A month later you have a droopy nightmare in a pot.
Solution of problem :
Enter “Plant diary”, your personal plant assistant and this simple application
will help aspiring plant parents break their murderous cycle — and it'll make life
easier for experts who have a whole jungle to care for.
How it works and looks :
The essence of the application is to help you carry out your daily tasks for
caring for a plant, an interactive and developing function for children, leisure, and a
personal coach.
There are 4 different interesting programs, that we purpose (15- 35dollars).
Сompetitors: existing plant applications
Our team :
● Web Designer
● manager
● florist
● Software developer
● accountant

II. GENERAL COMPANY DESCRIPTION

 Plant diary app - an application that keeps your plants alive & happy.
“Plant diary” is an application for smartphones, which helps users to take care
about indoor plants in different ways.
For everyone it is familiar situation, when inspired by visiting green place or
surfing through the web site we buy a plant thinking "this will be a stand-in for
interior design sense" or "I'll prove I can keep something alive". Or even when we got
plant as a gift and couldn’t recognize which type of plant we have got. So, of course,
we can’t take right care of it. A month later you have a droopy nightmare in a pot.
But solution already existed. Enter “Plant diary”, your personal plant assistant
and this simple application will help aspiring plant parents break their murderous
cycle — and it'll make life easier for experts who have a whole jungle to care for.
Why do you need our offer?
Nowadays, the main tendency all around the world is eco-friendly
consumption and sustainable development. So, consumer prefers plant in a pot over
cut-flower. The main reasons of constantly increasing demand on indoors plants are
that they are:
▪ Modern décor element
▪ Guarantee of comfort and calmness
▪ Perfect gift
▪ Air-cleaner
This app will help you with:
1. watering the plants in time
2. caring of them when they are sick
3. reminding when you need to pour it
4. getting name and birth certificate
5. providing with full necessary information about your plant
6. determining what is wrong with your plant
7. identifying the type of your plant
Plant diary application has 3 main function:
1. Entertainment function:
2. Educational function: “Plant diary” has lessons on the basics of plant
care and important bullets about each plant you have got.You'll never need to
skim paragraphs of junk copy on boring Garden-Advice-Answers-Magazine or
forum again.
3. Plant care function: Like any captive, a houseplant needs water or else it'll die
— but not too much, or it'll drown. So how get to know when and which way is
right? “Plant diary” lists your plants in order of when they will be thirsty next
time.When a plant needs water, you will get a notification.And once you are
done, just swipe it away. Also, “Plant diary” will help you if your plant is
droopy, or yellow, or it's shedding. For solving this problem just tell “Plant
diary” how your plant is hurting, then answer any follow up questions and
“Plant diary” will tell you what is wrong and how to fix it.
Long-term objectives:
▪ animated “Basics-of-plant-care” lessons
▪ web interface for the whole app
▪ possibility sending notifications to someone else if you're away from home
▪ automatic plant identification
▪ ability to buy plants online by using app
▪ cooperation with United Nations
Business philosophy:
− Concept of eco-friendly production and sustainable development
− The internet needs a clean plant database that prioritizes information
− App will help aspiring plant parents break their murderous cycle — and it'll
make life easier for experts who have a whole jungle to care for.
Main tendencies:
• The most responsive age group tends to be young adults, many of whom
are influenced by their children.
• In addition, women are a key target for greener products, and often make
purchases on behalf of men.
• The best 'green' customers are people with more money to spend. As a
result, the most promising products for 'greening' tend to be at the higher end of
 the market.
• In general, green consumers have the education and intellectual
orientation to appreciate value; they will understand evidence that is presented in
support of environmental claims.
Our target customer:
1. Age: 16+
2. Gender: Women
3. Income: Middle and upper-middle class
4. Place of living: Mostly big crowded city
Goals
So the fundraising goal here is the minimum we'll take to bring this app into
existence. This means choosing a single platform to start, which in our case is iOS.
1.That's why the very first stretch goal is going to be an Android version of the
app. It would be silly to leave such a large group of tech-savvy and potentially plant-
savvy users high and dry.
2.The second stretch goal is a series of animated Basics-of-plant-care lessons
that will live online and inside the app.
We'll update this section as things progress, but some other stretch goals
include:
● an online plant database with care instructions
● a web interface for the whole app
● sending notifications to someone else if you're away from home
● IFTTT integration
● automatic plant identification (big expensive one)
● ability to buy plants/supplies from inside the app
One of the stretch goals we'm most excited about is an online plant care
database.
Most of the websites with information on plant care bury the important stuff in
paragraphs of junk copy & advertisements.
The internet needs a clean plant database that prioritizes information! It would
be cool to make that happen.
Products and services
1. You can download this program for free on your device for 30 days
2. If you want to continue using app it will be not for free
3. Full version of the program will be 15-35$ a month

Ⅲ. PRODUCTS AND SERVICES

We have lots different programs, that users can bye and open more functions in
application.We set an average price for them, last of which are premium.Before
purchasing, you can get a demo version during 30 days to learn how to use the
program.
So, our first program costs 15 dollars.It includes basic stickers, rewards and
possibility to name your plant.
Second program costs 20 dollars and it has enhanced sticker pack(A "Plant
Parenthood" Sticker ; "Water your Plants" Sticker ; A "Freak in the Leafs" Sticker, a
Logo Sticker, «Freak in the Leafs Sticker»).In addition to this user can get nominal
cover case free when he complete all the tasks in this pledge.Participation in contests
and different online games is a good bonus for users, which will be added in the
program.
Third pledge consists off everything which were before, but your name will be
add to the app's random plant name suggestion database.This program is premium,
because off this benefit.
And the last program has more possibilities for users. First of all your name
will go in the Sponsors section of the app, baked in, seat of honor.
You can hear a «Thank You Song» after you finish a task, you obtain a Plant
Birth Certificate, a Plant Parenthood Shirt, full Sticker pack and Free visit to home
plants exhibitions.
Benefits and features of our product:
• Educational function
• Entertaiment function
• Healthy of your plant
• Great gift
• Convinience-time ratio
• Identification function
• Ease of use
• Gifts and impressions

Ⅳ.MARKETING PLAN
Main tendencies:
 1. Young adults, many of whom are influenced by their children.
2. Women are a key target for greener products, and often make purchases on
behalf of men.
3. The best 'green' customers are people with more money to spend. As a result,
the most promising products for 'greening' tend to be at the higher end of the
market.
4. Green consumers have the education and intellectual orientation to appreciate
value; they will understand evidence that is presented in support of
environmental claims.
Up to 80-90 % of your time is indoors. Indoor air pollution can increase your
risk for: stroke, by 34 percent; ischemic heart disease, by 26 percent; COPD, by 22
percent; respiratory infections in children, by 12 percent; lung cancer, by 6 percent.
Barriers to entering the market.First of all, Start-Up Costs - high start-up costs
can keep new firms from entering an our industry; technology- a new technology that
require lots of money to develop; high marketing costs; learning curve - our industry
are characterized by complex operations and demand trainings which aren't always
easy to learn.
COMPANY GOALS
The fundraising goal here is the minimum we'll take to bring this app into
existence. This means choosing a single platform to start, which in our case is iOS.
1. Going to be an Android version of the app.
2. A series of animated Basics-of-plant-care lessons that will live online and
inside the app
 This program: are designed to satisfy the needs of adults and children; for free
on your device for 30 days; unique technology, new skills are not required to
accomplish our mutual purposes.
Best way for retailers to promote eco-friendly products

Best way for retailers to promote eco-friendly products:

Product
We have lots different programs, that users can bye and open more functions in
application.We set an average price for them, last of which are premium.Before
purchasing, you can get a demo version during 30 days to learn how to use the
program.
So, our first program costs 15 dollars.It includes basic stickers, rewards and
possibility to name your plant.
Second program costs 20 dollars and it has enhanced sticker pack(A "Plant
Parenthood" Sticker ; "Water your Plants" Sticker ; A "Freak in the Leafs" Sticker, a
Logo Sticker, «Freak in the Leafs Sticker»).In addition to this user can get nominal
cover case free when he complete all the tasks in this pledge.Participation in contests
and different online games is a good bonus for users, which will be added in the
program.
Third pledge consists off everything which were before, but your name will be
add to the app's random plant name suggestion database.This program is premium,
because off this benefit.
And the last program has more possibilities for users. First of all your name
will go in the Sponsors section of the app, baked in, seat of honor.
You can hear a «Thank You Song» after you finish a task, you obtain a Plant
Birth Certificate, a Plant Parenthood Shirt, full Sticker pack and Free visit to home
plants exhibitions.
Benefits and features of our product:
• Educational function
• Entertaiment function
• Healthy of your plant
• Great gift
• Convinience-time ratio
• Identification function
• Ease of use
• Gifts and impressions
Customers
To analyze the target market of our application, we used the well-known Google
trends.
Popularity “app for plant” by region in Google

The main regions of the world, where the largest number of requests was found
to be related to plant applications, were as follows:

1 India

2 Australia

3 USA
 4 Canada

5 Great Britain

+ Ukraine

The Ukrainian market has been chosen as one where we can launch the initial
application “Plant Diary” and analyze the real-time market situation.
The next step was to identify the closest competitors by finding similar related
queries to the "plant for app".
Related queries "plant for app" in Google

Further, it was discovered that each year the number of "app for plants" records
increased. That is, the popularity and consumer demand of this product is growing.
Timeline of queries "plant for app" in Google
 To properly see what the situation of the plants application is in the ukrainian
environment, a simple survey was done and asked to approximately 100 respondents
from different cities of Ukraine. Here we can see the answers to the survey:
1. How old are you?

2. Gender
3. Do you have a smartphone?

4. Do you have a houseplants?

5. Have you ever used plant care applications?

 So, based on our analysis of worldwide search queries in the Google and the
questionnaire of Ukrainian mobile app users, we compiled a portrait of our target
consumer.
Age: 18-55
Gender: Women
Income: Middle and upper-middle class
Place of living: City
Target market: India, Australia, USA, Canada, Great Britain and Ukraine
Strategy
Marketing strategy is the section of our business plan that outlines our overall
game plan for finding clients and customers for our business. Sometimes marketing
strategy is confused with a marketing plan, but they are different.
First of all, it is necessary to say about how consumers will download app «Plant
diary»
There are 2 main methods:
1.Google play
2.App store
Second that it is necessary to said, it is how consumers will know about our app?
We think that the best ways for this are:
− Advertising in flower shops and near them (brochures)
− Flower exhibitions
− Social networks (Facebook, VK, Instagram and etc.)
 − Billboards
Now we want to analyze our promotional budget and some costs on our
marketing expenses. We want to spend 12% of our budget on the advertising and 5%
on market research.(Diagram 1)

Diagram 1.Some costs of our startup

How will we have a good result and success of our startup?
We will:
− research target market.
− perform competitor research
− create a landing page that sells
− make our app visible in app store and google play( we should increase SEO
through quality of our app’s title, description, icon and screenshots)
− create viral video content (can create video for YouTube as it’s a powerful tool
to spread the word about your product)
− reach our audience with social networks
− measure our app KPIs
We’d imagine our app’s brochure that is on the Picture 1:
Picture 1.Brochure
 V. OPERATIONAL PLAN
Production
Our product is delivered 100% digitally, thus there is no need to physically
produce or to rent a large place to install our equipment. To deliver our product to our
customers the app will be uploaded into the App Store for the IOS platform and to
Google Play for Android, where our clients will be able to download them for free
and start to make use of our services. Through these two channels we will also
announce future updates of the application.
To maintain consistency in the quality of our services there will be regular
check ups every week and more thorough ones every month. These analyses will
consist of different parts so that we can evolve into a better m-payment app.
▪ Analysis of the customer feedbacks:
The feedback can come both from the app or mouth-to-mouth communication. From
the app there are 2 different channels, app reviews from Google Play or the App
Store, or in-app reviews from our users. Mouth-to-mouth comes basically from the
interaction of our marketing specialists and personnel in the stands or spots we set up
with the public.
In Plant Diary we take extremely seriously the customer feedbacks, as it is they
who allow us to grow, evolve and continue our business.
▪ Analysis of the server feedbacks:
The servers and the code itself will send direct and indirect feedback to the
Web & App Development team. Direct feedback will be given when the code does
not work or the servers are saturated, or when certain functions or services of the app
are not fully functional. The indirect feedback will be read by the team when
analysing: the response of the server to the different functions, it's time lag, capacity,
saturation and others.
▪ Analysis of the teams feedback:
The team responsible for the informatics developments will be the ones closer
to the core of the product, thus they will be continuously observing its strengths as
well as its weaknesses. They will be able to report in any drawback or mistake, no
matter how small, so that it gets fixed right away.
▪ Server extension when possible:
The servers will continuously get upgraded, checked and extended so that our
product never gets hanged and it is not operational. In U-Pay we want to differentiate
us by being a trustworthy business that will never fail.

Location
For the first year, to avoid having extra costs, Plant Diary is set up in a small
location found by the founder that is set in Kyiv. This location will serve as the base
of operations, and considering that in the first year Plant Diary will consist of 3
employees and then grow to 6-8 (focusing mainly in the technical areas) and that for
the majority of the work there is no need to be in the office but can be done from
home, there is no need for a large space. The location has de following
characteristics:
− Size: 30 m2.
− Type of building: Living Place.
− Zone: Kyiv
− Accessibility for employees: Accessible by car with Parking
− Costs: 200$/month.
− Utilities: 1 bathroom, 1 big space (ex living room), 1 small room (ex kitchen).

To successfully deliver our product we need just powerful servers and a

competent code. Aside from these, the equipment necessary to start the business
consists of:
− Computers
− Printers
− Desktop material

Legal environment
Copyright
In accordance with the current legislation, “computer programs” refer to
intellectual property, namely, to objects of copyright. It is impossible to get a patent
for a mobile application for IOS, Android in Ukraine and in most countries of the
world, but you can issue and register copyright that is valid throughout the world (a
“patent” is issued for inventions, utility models, industrial design, but not for
“computer program, mobile application ").
Workplace, health and environmental regulations
Ukrainian legislation sets an obligation for all employers to provide safe and
harmless work environment. Article 19 of the Law of Ukraine “On occupational
safety and health” provides that expenses defrayed for occupational safety and health
must be not less than 0.5% from the amount of salary fund from the previous year.
Non fulfillment of regulatory requirements related to occupational safety and health
may result in imposition of sanctions which may even include prohibition for an
enterprise to conduct its activities.
Now, in 2018, hired labor is gradually becoming a thing of the past - it is much
more profitable for companies to work with outsourcing teams than to hire employees
in the staff. Since we are working on a plant application, we don’t have an office, we
focus on several employees outsource.
Personnel
We need four outsourcers with technical and biological education, accountant;
work experience is not important. We are seeking responsible workers with
interest at work and we want to see continuous improvement and advanced training
and skills.
Specific of payment
1. Payment for the program
2. SEO optimization every month
3. 4 work days
4. Partial work day is possible
5. The total benefit for us we can result in 20-25% of the payroll accountants,
informatics, biologists who are responsible for calculating the salaries of
employees.
Duties for employee
1)Biologist-1:development of sequences and tasks for users,working with
plants and ability to handle them
2)Accounter-1:Salary calculation
3)Programmer-1:Development of programs and their continuous improvement
and simplification for users and Monitoring of competitor`s programs
4)Web designer-1(Site design)
Salaries
− Programmer: 1000 dollars for creation
− 200 dollars- SEO optimization every month
− Web designer-1000 dollars for an unique design style and creativity
− 200 dollars- SEO optimization every month
− Accountant-230 dollars
− Biologist-250 dollars
Suppliers&Inventory
It's hard to sell products that you never see, but in today's world, it's
possible to become an expert in just about everything through information online.
Selling our App from AppStore or PlayMarket with detailed describing will
allow our clients easy familiar with full imagine of our software. And when they
do need to answer specific question about a product, a quick call to our supplier
give them the answer they need. So, we define as suppliers our developers and
designers.
When they do need to answer specific question about a product, a quick call
to our supplier give them the answer they need.
That’s why, we define as suppliers our developers and designers.
Development Requirements
The first question we have to ask our self is which type of application we
want to develop.
There are basically two types:
● a native version
● a web based version.
Both have advantages as well as inconveniences, which we will run through
in this paragraph.
 A native app is for a certain mobile device (smartphone, tablet, etc.) and
installed directly onto the device. Users typically acquire these apps through an
online store or marketplace such as The App Store or Android Apps on Google
Play.
When we talk about mobile web apps, we’re referring to Internet-enabled
apps that have specific functionality for mobile devices. They’re accessed through
the mobile device’s web browser (i.e. on the iPhone, which is Safari by default)
and do not need to be downloaded and installed on the device.
Development for native apps, each mobile application development
platform (e.g. iOS, Android) requires its own development process and has its own
native programming language.
Hardware interfacing:
Native apps can interface with the device’s native features, information and
hardware (camera, accelerometer, etc.)
Mobile web apps can access a limited amount of the device’s native features
and information (orientation, geo-location, media, etc.)
We are planning to employee our staff on outsourse services.
When we’ll realize that we cant deal with it by ourselves we are planning to
create our green space.
Credit policies
We want to add about credit policies of sratup. So, consumer can buy full
version of our app «Plant diary» by 2 ways:
1)full payment for 1 time (consumer will do it through the Internet)
2)payment by installment by Privat Bank (will be given for 12 months)
As we told previously, we will have courses on which we will teach people to
care for plants in future.
How to buy our courses (also 2 ways):
1.full payment for 1 time (cash and cashless)
2.payment by installment by Privat Bank
3.credit
Types of credit that we can provide for our clients:
 1)payment by installment by Privat Bank (Loan without overpayment , 0%
commission, fast and convenient because consumer will not spend the whole amount
at once)
2)payment credit limit that is given also by Privat Bank. Credit limit is installed
by PB and if consumer have Universal Card or Credit Card it will give he or she an
opportunity to spend credit limit and return this money to 25th day of the next month
without overpaying interest
3)loan from Ukrsibbank and Privat for various credit programs from these banks
 VI. MANAGEMENT AND ORGANIZATION
The use of outsourcing gives us the opportunity to focus on the four main
components of management:
• professionalism;
• entrepreneurial thinking;
• internationalism (important for an international team in the context of
openness for flexible management)
•Social responsibility.
The involvement of highly qualified specialists in the management of an
organization, the carriers of a new economic thinking based on these principles,
brings management to a new level. Outsourcing of the sphere of management of the
organization, in addition, contributes to the wide dissemination of new methods, tools
and management technologies, to enhance the qualifications of middle managers.
Along with the formation of a qualitatively new level of management,
outsourcing of the sphere of management of an organization allows you to:
• focus on the development of those functions that are essential for ensuring
competitiveness. Since now applications of this type for plants are very popular on
the wave of fashion for greening the planet, we need to focus primarily on the
advantages of our application
• to involve in management the organization of knowledge and experience of
high-class specialists
• make the transition to modern information technology management;
• reduce management costs.
We need four outsourcers with technical and biological education, accountant;
work experience is not important. For continuous improvement and training and
skills.
Duties for employee:
As we sad before, we are planning to have 4 employee in out team, that will be
outsources. So, our team will be consist of :
1)Biologist-1:development of sequences and tasks for users and working with
plants and ability to handle them
 2)Accounter-1:Salary calculation
3)Programmer-1:Development of programs and their continuous improvement
and simplification for users and Monitoring of competitor`s programs
4)Web designer-1( Original site design)

VII. PERSONAL FINANCIAL STATEMENT

Personal Financial
Statement of:
Plant Diary
as of:
03.12.2018

Amount in Liabilities Amount in

Assets Dollars Dollars
Cash - checking $ 2 Current Debt (Credit $ 27
accounts 390 cards, Accounts) 672
2 Notes payable
Cash - savings accounts 800 (describe below) -
Taxes payable 1
Certificates of deposit - 660
Securities - stocks / Real estate mortgages 2
bonds / mutual funds (describe) 400
Notes & contracts 3 Other liabilities
receivable 870 (specify)
Life insurance (cash 5 Other liabilities
surrender value) 000 (specify) -
Personal property (autos, 5 Total Liabilities $ 31
jewelry, etc.) 734 732
Retirement Funds (eg.
IRAs, 401k) -
Real estate (market
value) -
8
Other assets (specify) 970
2
Other assets (specify) 968
$ 31
Total Assets 732
$
Net Worth -

Signature: Date: 03.12.2018

Personal Finance Statement of:
Plant Diary

Details

1. ASSETS -
Details

Notes and
Contracts held
From Whom Balance Original Monthly
Owing Owing Amount Original Date Payment
$ $ $
Investor 1 5 190 2/01/2019 216,25
Investor 2 6 838 2/01/2019 284,91

Securities: stocks / bonds /

mutual funds
Date of
Number of Acquisitio
Name of Security Shares Cost Market Value n
$ $
None - -

Stock in Privately Held

Companies
Est. Market
Company Name No. of shares $ Invested Value
$ $
None - -

Real Estate
Description / Amount Purchase
Location Market Value Owing Original Cost Date
$ $ $
None - - -
2. LIABILITIES
- Details

Credit Card & Charge Card Debt

Amount
Name of Card / Creditor Due
Privat Bank (Loan
without overpayment ,
0% ) $ 8 970
Universal Card by Privat
Bank $ 2 400
Ukrsibbank $ 1 780

Notes Payable (excluding monthly

bills)
Original Monthly Interest
Name of Creditor Amount Owing Amount Payment Rate
$ $ $
Kyivoblenergo 480 40 0

Ukrtelecom 592 49 0

Ukrnafta 240 20 0

Mortgage / Real Estate Loans

Payable
Original Monthly Interest
Name of Creditor Amount Owing Amount Payment Rate
$ $ $

VC Built 200 200 200 0,00%

Sources of Funds: Where the money for all funding is going to come from.
We need to take into consideration that rely on just one sources of funds is too risky
for us, so, we will have a mix of different funds for different parts of your plan. Due
to our business plan, the main part of our Assets consists of Investor’s money, what
we can see on the Row ‘Other assets’. We decide contributing office furniture by our
self, getting a loan for purchasing major equipment, and getting a line of credit for
working capital from two different bank institution in Ukraine: Private Banka and
Ukrsibbank.

Ⅷ. STARTUP EXPENSES AND CAPITALIZATION

1. Initial Investment

To view in more detail the initial investment we need to first divide between the
equipment already in our possession and personnel that already we have and those that had to
be bought for the start of the company or that will need to be bought.
Already in possession:
− Location
− 3 Laptops
− 1 Desktop
Materials bought or that need to be bought:
− 1 Printer: HP LaserJet Enterprise M606x – 1287,35$ (1.514,52$ with a 15% discount).
− Desktop Materials: Paper, Writing Material, Printer Ink, Storage Material – 300€
initial, 150 $ refilling.
− 1 Coffee machine: Genio 2 automatic Nescafé – 116 $.
− Hygiene materials: Toilet paper, mop, all-purpose cleaner, glass cleaner, tile cleaner,
duster, sponges, toilet brush, vacuum (75$), bucket – 175$.

2. Administrative Costs

1. Rent of the location - 200$/month

2. Internet: Kolo TV – 31,90$/month.
3. Phone - 10,40$/month
4. Light – 40$/month.
5. Gas – 20$/month.
6. Cleaning service – 60$/month (15$/h*2h*2days/month).
7. Attorney for legal contracts – 200$.
8. Legal costs: Formation process, which includes company formation, founders stock
issuances , option plan, offer letters for early employees and advisor and consulting
 agreements – 2.500$/year.
9. Cloud services provider Google – 57$/month ilimitado
10.App maintenance – 108$/month (an estimate of 6h a month for 18$/h)
11.Freelance Accountants – 30$/h

Type of Accountant Average Hourly Rate

Junior accountant, Billing analyst, Accounts payable

20-35$
analyst
Senior accountant 35-50$

Expected Marketing Expenses for the next year

Quote for the Website creation, maintenance and evolution – 2 000$. This estimate was
given by WebpageFX

Estimate annual quote for the creation,maintenance and future evolution of the Plant diary
website.Estimate to $2 000

− Social Media – there will be a spending of 100€ the first year, and as we expand to
 other campuses and universities, this number will increase to 200$.
− Publicity Campaign – there will be a spending of 500 $ every year.
Next table below shows the recapitulation of all cost and expenses for the next 12 months.

Estimate Cost and Expenses from the next 12 months of Plant Diary

January February March April May June

2019 2019 2019 2019 2019 2019
Initial Investment and Administrative costs
One time expenses
Printer 1300 0 0 0 0 0
Coffee
Machine 116 0 0 0 0 0
Legal costs 0 0 0 0 0 0
Periodical Expenses
Desktop
Materials 300 0 0 0 0 150
Hygiene
Materials 175 0 0 0 0 75
Internet and
Phone 49,3 49,3 49,3 49,3 49,3 49,3
Light 40 40 40 40 40 40
Gas 20 20 20 20 20 20
Cleaning
Service 60 60 60 60 60 60
Cloud
Services 57 57 57 57 57 57
App
Maintenance
(72h/year) 108 108 108 108 108 108
Accountant 120 120 120 120 120 120
GoogleDrive
Business
(8$/month*us
er) 24 24 24 24 24 24
Rent 200 200 200 200 200 200
Marketing

Social media 0 0 0 0 0 0
Webpage 0 0 0 0 0 0
Publicity
Campaign 0 0 0 0 0 0
Total Costs 2869,3 678,3 678,3 678,3 678,3 1053,3
Total Costs
Accumulated 2869,3 3547,6 4225,9 4904,2 5582,5 6635,8

July August September October November December

2019 2019 2019 2019 2019 2019
One time expenses
Printer 0 0 0 0 0 0
Coffee
Machine 0 0 0 0 0 0
Legal costs 0 0 0 0 0 2500
Periodical Expenses
Desktop
Materials 0 0 0 0 0 0
Hygiene
Materials 0 0 0 0 0 0
Internet and
Phone 49,3 49,3 49,3 49,3 49,3 49,3
Light 40 40 40 40 40 40
Gas 20 20 20 20 20 20
Cleaning
Service 60 60 60 60 60 60
Cloud
Services 57 57 57 57 57 57
App
Maintenance
(72h/year) 108 108 108 108 108 108
Accountant 120 120 120 120 120 120
GoogleDrive
Business
(8$/month*us
er) 24 24 24 24 24 24
Rent 200 200 200 200 200 200
Marketing

Social media 0 0 0 0 0 100

Webpage 0 0 0 0 0 2000
Publicity
Campaign 0 0 0 0 0 500
Total Costs 678,3 678,3 678,3 678,3 678,3 5778,3
Total Costs
Accumulated 7314,1 7992,4 8670,7 9349 10027,3 15805,6

Next table showing the costs and expenses for the next 3 years.

Costs and
Expenses
1 year 2 year 3 year
Printer 1.300 0,00 0,00
Coffee Machine 116,00 30,00 30,90
Legal costs 2.500,00 2.575,00 2.652,25
Desktop Materials 450,00 200,00 206,00
Hygiene Materials 250,00 180,00 185,40
Internet and Phone 591,60 609,35 627,63
Light 480,00 494,40 509,23
Gas 240,00 247,20 254,62
Cleaning Service 720,00 741,60 763,85
Cloud Services 684,00 704,52 725,66
App Maintenance (72h/year) 1.296,00 1.334,88 1.374,93
Accountant 1.440,00 1.483,20 1.527,70
GoogleDrive Business 288,00 593,28 611,08
(8$/month*user)
Rent 2.400,00 2.554,00 2.609,62
Marketing
Table 11.5: Income, Costs and Benefits estimate for the next 3 years.
Social Media 100 200 206
Webpage 2.000 2.000 2.000
Publicity Campaign 500 515 530,45
Salaries
Salaries 12.160 10.560 10.560
Total Costs Accumulated 17.190,95 14.280,45 14.280,45

Analyzing the costs of each year in a percentage, we get the following:

Total expenses of “Plant diary”in percentile ratio in the first year of existence

Total expenses of “Plant diary”in percentile ratio in the second year of existence
Total expenses of “Plant diary”in percentile ratio in the third year of existence
 Ⅸ. FINANCIAL PLAN
The financial plan consists of a 12-month profit and loss projection, a four-year
profit and loss projection (optional), a cash flow projection, a projected balance sheet,
and a breakeven calculation. Together they constitute a reasonable estimate of our
company's financial future. More importantly, however, the process of thinking
through the financial plan will improve our insight into the inner financial workings
of our company(app).
We want to present our 12-month profit and loss projection spreadsheet of our
startup. Many business owners think of this as the centerpiece of their plan. This is
where we put it all together in numbers and get an idea of what it will take to make a
profit and be successful. The 12-month projection is the heart of our financial plan
Fiscal Year Begins
Jan-19

Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec-
янв.19 19 19 19 19 19 19 19 19 19 19 19 YEARL
Revenue (Sales)
Revenue from 3 3 2 2 2 2 2 2 2 2
realization of app 3 500 3 200 100 000 900 800 700 600 500 400 300 200 33 20
Total Revenue 3 3 2 2 2 2 2 2 2 2
(Sales) 3 500 3 200 100 000 900 800 700 600 500 400 300 200 33 20

Cost of Sales
Total Cost of Sales 0 0 0 0 0 0 0 0 0 0 0 0

3 3 2 2 2 2 2 2 2 2
Gross Profit 3 500 3 200 100 000 900 800 700 600 500 400 300 200 33 20

Expenses
Salary expenses 2 480 880 880 880 880 880 880 880 880 880 880 880 12 16
Supplies (office and
operating) 1 000 50 50 50 50 50 50 50 50 50 50 50 1 55
Advertising 50 50 50 50 50 50 50 50 50 50 50 50 60
Rent & Related Costs 200 200 200 200 200 200 200 200 200 200 200 200 2 40
Telephone 40 40 40 40 40 40 40 40 40 40 40 40 48
1 1 1 1 1 1 1 1 1 1
Sub-total Expenses 3 770 1 220 220 220 220 220 220 220 220 220 220 220 17 19
Reserve for
Contingencies 377 122 122 122 122 122 122 122 122 122 122 122 1 71
1 1 1 1 1 1 1 1 1 1
Total Expenses 4 147 1 342 342 342 342 342 342 342 342 342 342 342 18 90

Net Profit Before 1 1 1 1 1 1 1 1

Taxes -647 1 858 758 658 558 458 358 258 158 058 958 858 14 29
Federal Income
Taxes
State Income Taxes
Local Income Taxes
Net Operating 1 1 1 1 1 1 1 1
Income -647 1 858 758 658 558 458 358 258 158 058 958 858 14 29
As we can see, total revenue in 2019 year will be 33 200$ and total expenses
are 18909 $. As a result, net profit will be 14291$ in 2019 year. It is a not bad result
as for the app.
Now let’s introduce Four Year Profit Protection

As we can see from this datas, sales will decrease from 2019 to 2022, because
the main part of our potential customers will buy full version of our app in 1 st and 2nd
years. In 2020 total expenses will decrease because of 1) we won’t spend 2000 $ on
development of our app and 2) we will not spend so much money on supplies (office,
etc.). Net profit will be the most in 2019 and then to 2022 it will be decrease.Net
profit in 2019 will be 16010 $ and in 2022 it will be loss.
Also we want to present our Cash Flow Spreadsheet (12 months) in 2019.
 Now let’s analyze Breakeven Analysis (2019 year).
A breakeven predicts the sales volume, at a given price, required to recover total
costs. In other words, it’s the sales level that is the dividing line between operating at a
loss and operating at a profit .
Expressed as a formula, breakeven is:
¿ Costs
Breakeven Sales = 1−Variable Costs

(Where fixed costs are expressed in dollars, but variable costs are expressed as a
percent of total sales.)
Fixed costs of our startup in 2019 will be 16090$ and variable costs will be
10% of total sales.
So,
16900
Breakeven sales = 1−0,1 =18779 $
 X. APPENDICES
XI. REFINING THE PLAN
The app economy is already booming. In 2016, analyst firm App Annie
estimates that global gross consumer spend on mobile apps was $1.3 trillion. This
figure though, is forecast to increase by 385 percent over the next five years to a
colossal $6.35 trillion.
The country contributing to this figure the most, is and will be China. Come
2021, some $2.6 trillion of revenue is expected to come out of the country - an
increase of 228 percent. Of the major markets, the United States is set to provide the
biggest proportional increase - hitting $820 billion on the back of a 310 percent rise.

Nowadays, the main tendency all around the world is eco-friendly

consumption and sustainable development. So, consumer prefers plant in a pot over
cut-flower. “Plant diary” is an application for smartphones, which helps users to take
care about indoor plants in different ways. We have lots different programs, that users
can bye and open more functions in application.We set an average price for them, last
of which are premium.Before purchasing, you can get a demo version during 30 days
to learn how to use the program.
Our company is imposing strict requirements for candidates for work with our
online application. Special attention is devoted to the programmer and specialists
from the high-tech sphere. How successful the application directly depends on the
level of their qualifications. Accordingly, our specialists will create and maintain
necessary resources and an online database to support and strengthen the competitive
position of our company in the online application market.
How will we have a good result and success of our startup? We will:
− research target market.
− perform competitor research
− create a landing page that sells
− make our app visible in app store and google play( we should increase SEO
through quality of our app’s title, description, icon and screenshots)
− create viral video content (can create video for YouTube as it’s a powerful tool
to spread the word about your product)
− reach our audience with social networks
− measure our app KPIs
To deliver our product to our customers the app will be uploaded into the App
Store for the IOS platform and to Google Play for Android, where our clients will be
able to download them for free and start to make use of our services. In order to
maintain the rights to intellectual property, we will use the patenting of our online
application.