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Business Case Dating app for LGBTQ The project is the creation of an online dating application specifically for the LGBTQ community

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Business Case

Dating app for LGBTQ

The project is the creation of an online dating application specifically for the LGBTQ community. The dating application will be made to cater to the group, providing privacy, exclusivity, and protection to the group.

1.2.         Issue

Most of the current dating apps are not made for groups of people. The problem with all-inclusive dating apps is that finding love becomes harder for a minority group of people such as LGBTQ (Shadel, 2019). For the dating applications that are group-specified, they tend to be a lot expensive hence making more people of the same group unable to pay for the premiums.  

1.3.         Anticipated Outcomes

Creating a freemium dating application for LGBTQ will allow more people to access the service hence not only making it easier for a person to find love but also making it cheaper to even access other premium services within the application. 

1.4.         Justification

The freemium online dating application for LGBTQ will allow most people to access most services within the application for free. The application will sell adverts spaces within the application in a correctly designed format to still make the user experience good. It will again sell premium services such as exclusivity for other users who would want to pay for those services. The application is much needed by the group as the current options are either expensive or unable to cater to specific group needs (Shadel, 2019).

2.            Strategic business goals

2.1          Goals and Objectives

The project must meet the following objectives.

Business Goal/Objective              Description

Affordable          The free services should be enough to ensure one gets love through the application.

Privacy  It should protect the users from targeted reproach.

Exclusivity           For the premium users, it should provide very exclusive services

 

2.2          SWOT Analysis

2.2.1      Strengths

a.            It has a targeted group hence the design, marketing concepts and algorithm will be highly relevant to the whole user base.

b.            It offers both free and premium services.

c.             High demand for exclusive dating applications

2.2.2      Weaknesses

a.            It will have a limited user base

b.            There is no way to prevent other people who are not in the group from registering accounts.

2.2.3      Opportunities

a.            There are so many in-app services that can be sold through the app such as exclusivity which will increase the revenue for the company.

b.            With proper marketing, the application can be used globally which will again increase the user base and, thus, the earnings for the company.

2.2.4      Threats

a.            Data regulations may limit the use of user data in analytics that improve the user experience in the application.

b.            The application may be targeted for its group-based approach.

 

3.            Stakeholders

The stakeholders for the project include.

Role       Description         Name/Title

Management    Provide executive leadership and be involved with final decision-making.             CEO

Management Support   Provide executive support          CFO, HR manager, Marketing Manager,

Employees          Perform day-to-day operational tasks    Programmers, Technical writers, Data analysts, sales representatives, Application analysts, Clerks, and Accountants, among others

Customers          Use the application.        Customers

Advertisers         Advertise on the platform           Advertisers

 

4.            Recommendation Summary

The project has a high demand in the targeted user base. A freemium product will get a lot of initial registrations with increased demand for better services (E-commerce Payment Methods, 2021). Currently, there are a lot of similar products that have a broader user base and better funding that allow for a good user experience. The product has to be improved consistently to meet the current standards.

The constraints for the project may include initial limited funding, lack of enough data in the targeted user base, and data regulations that limit the manipulation of user data for business purposes.

5.            Operational Feasibility

5.1          Usability

The application will be user-friendly. It will allow for easier registration using emails or phone numbers. It will also be easy to log in and re-request passwords in case one loses one.

5.2          Security

The application will limit bots and ‘catfishing’ through the use of data and other proofing mechanisms.

The data for users will also be protected from other people and other unauthorized third parties.

5.3          Reliability

Data will be key in improving the application to meet the desired needs of the user base. A way to improve the reliability of the app will be to use better server hosts that allow for quick surfing through both the website and the application.

5.4          Pricing

The company will make money through both advertisements and in-app purchases. The free services will increase demand which will allow for a huge group of people for advertisements. Another group will want a lot of the premium features such as exclusivity. The in-app purchases will be priced competitively to encourage more people to purchase. That will create enough revenue to cater to both the expected return on capital and the costs.

The company will also reduce the costs of operation without lowering the quality of services being offered in the application.

6.            Economic Feasibility

6.1          Cost-benefit analysis

6.1.1      Start-up costs

Star-up costs

Website design $              10,000.00

Application design                            62,000.00

Initial Research                    2,500.00

Equipment                             4,000.00

Computer                            13,500.00

Working Capital                  10,000.00

Total      $           102,000.00

 

6.1.2      Operational costs

The expected operational costs for the first year are shown below. The costs are expected to increase in the preceding year based on the expected revenue growth except for the rent expense.

Operating Expenses       Year 1

Salary Expense       36,000.00

Subscription expenses       18,000.00

Utility Expenses                       9,000.00

Rent expense         12,000.00

Depreciation expense          2,728.57

Insurance Expense               12,000.00

Miscellaneous expenses                     6,000.00

               

Total Operating Expenses                 95,728.57

 

 

6.2          Benefit analysis

The expected revenue for the first year will be as shown below;

Year       1

               

In-app Purchases                  50,000.00

Advertisement revenue                  108,891.67

Total revenue       158,891.67

 

In-app purchases are expected to increase by 5% annually while advertisement revenue is expected to grow by 3% annually.

6.3          Proforma statements

6.3.1      Income statement

Proforma Income Statement

Year       1

               

In-app Purchases                  50,000.00

Advertisement revenue                  108,891.67

Total revenue       158,891.67

               

Operating Expenses      

Salary Expense       36,000.00

Subscription expenses       18,000.00

Utility Expenses                       9,000.00

Rent expense         12,000.00

Depreciation expense          2,728.57

Insurance Expense               12,000.00

Miscellaneous expenses                     6,000.00

               

Total Operating Expenses                 95,728.57

               

Net Profit                 63,163.10

 

6.3.2      Proforma Balance sheet

Balance sheet

Year       1

                 

 Assets  

Current Assets 

Cash         187,700.00

Accounts Receivable                          -  

Prepaid Rent             6,000.00

Prepaid Insurance                12,000.00

Total Current Assets          205,700.00

Long-term Assets           

Website                    10,000.00

Application              62,000.00

Directory                    2,500.00

Furniture                    4,000.00

Computer                13,500.00

Accumulated Depreciation               (2,728.57)

Total Long-term assets       89,271.43

                 

Total assets           294,971.43

                 

Liabilities and Equity      

Liabilities             

Current liabilities             

Unearned Subscription Revenue                 127,808.33

Accounts Payable                 24,000.00

Total Liabilities      151,808.33

                 

Equity  

Common stock       80,000.00

Retained Earnings                 63,163.10

Total Equity           143,163.10

                 

Total Liabilities and Equity               294,971.43

6.4          ROI

The expected return on investment for the project is 40.36% for the first year and will be maintained or improved as the company growth increases.

7.            Technical Feasibility

7.1          Resource availability

The company requires talent that is available for programming and other technical tasks. The expected start-up costs are enough to cater to the costs of the needed talent and other resources.

7.2          Maintenance

The operational maintenance of both applications will require little costs which will be offset by the earnings of company. The application, however, needs constant improvement to have a competitive advantage over other similar applications.

8.            Schedule Feasibility

The project will be completed within three months of starting and will be ready for the initial release to the public within three months.

 

 

 

 

 

9.            Reference

E-commerce Payment Methods. (2021). Retrieved from PennState Extension: https://extension.psu.edu/e-commerce-payment-methods

Shadel, J. (2019). A queer user’s guide to the wild and terrifying world of LGBTQ dating apps. Retrieved from Washingpost: https://www.washingtonpost.com/lifestyle/2019/10/08/queer-users-guide-wild-terrifying-world-lgbt-dating-apps/