The main balance sheet item is represented by intangible assets which have registered expenses linked to the design of the visual identity, the creation of the graphics charter, the legal environment, but especially to the IT development -\> MVP (minimum viable product) + Version V.1 + Version V.2 + Backoffice + internet site + Beacon Technology.
The debt of over a year represents a loan taken out with BNP Paribas comprising 2 tranches of 50,000€. The first repayable in May 2017 and the second in May 2019. This loan is guaranteed by a personal guarantee.
The profit and loss accounts shows:
- very careful management of the current expenditures (no payment for the manager - office provided free of charge)
- an initial turnover (first invoices issued in November 2015) after a prospecting period between June and October.
The 3-year financial plan, developed by the management of QTH Services and reviewed by its chartered accountant, is shown below:
Brief reminder of the different sources of revenue:
- Bars pay an annual subscription of between 300 and 500€ (listing, promotional offers, beacons, promotion of events, etc.)
- On the horizon for 2018: introduction of a variable fee calculated on the number of consumers generated by the application
- The additional options over and above the annual fee (e.g.: 15€/promoted event)
- Sponsoring by major industry players (advertising/product placement/etc.)
From its launch, Barnaby has been able to count on a dozen establishments (the historical partners) which have accepted to pay an initial annual subscription knowing that they will only benefit from all the features during the course of 2016. Thanks to this raising of funds, which will enable Barnaby to finalize the paying functions of the application and the creation/formation of a dedicated sales team, it is planned to acquire 60 new partners (10+60= 70) by the end of 2016, +/- 230 in 2017, and +/- 500 in 2018. It is obvious that in accordance with its strategy, these acquisitions of new clients are spread out across different towns and different countries (e.g.: Barnaby wants to limit itself to 150 establishments, in keeping with its policy of rigorous selection, in Paris). Barnaby believes it will be able to be present in 2018 in 20 towns throughout Europe and Asia as well as in the United States.
In 2016, since Barnaby is a start-up, it will have the chance to modulate its pricing terms. Why? Because at first it was Barnaby himself who would prospect individual institutions but today, due to a growing reputation in the market, it is the turn of some establishments to ask Barnaby to list them in the app :) YES -\> very encouraging
In 2016, Barnaby's aim is to integrate its second source of income. This involves getting a leading "drinks company" interested (e.g.: Moët Hennessy, Bacardi Martini, Pernod Ricard, etc.) in the Barnaby product (indeed, the listing and the top of the range community represented an innovative and promising channel of communications in their eyes). In 2017, Barnaby will offer its partners and other prospects (e.g.: cooking schools) the chance to purchase visibility on the app so as to promote events and different types of offers (assumption given: 20 partners each month purchase visibility for 20€). 2018 will see commissions on consumption being added to the Barnaby income (hypothesis made: 1000 users of the application consume an average of 10€/person from which Barnaby will take a commission of 12%).
- manager gross salary: 2016: 1.500€ - 2017: 2.000€ - 2018: 2.000€
- sales director gross salary: 2016: 2.000€ - 2017: 2.200€ - 2018: 2.500€
- communications director gross salary: 2017: 2.000€ - 2018: 2.200€
- student placements net salary 1000€/month --\> 2016: 4 placements / 2017: 8 placements / 2018: 12 placements
- IT development: android version, integration of new sites, site redesign, etc.
- rent 2016: 1.000€ / rent 2017: 1.500€ / rent 2017: 2.000€
- transport costs: business travel for prospecting in France, Europe, and internationally.
- community manager (social networks manager, SEO, etc.) : external service provider
- legal fees: assistance/drafting of contracts/brand protection/monitoring o the legislation in force in the target countries
- translation of the application, back office and of the site: English/Dutch/Chinese/ Spanish/etc.
Estimote® Beacon: Each box costs 25$ Very low price obtained from the supplier based on the number of units purchased. 16$/beacon (for 300).
Very heavy growth in turnover in 3 years and in gross operating profit.
Break even volume
At this stage, the company would normally be break even at the end of the first half 2018