AVANCE INTERNATIONAL UNIVERSITY
P.O. BOX 12385, NABWERU, KAMPALA, UGANDA
FACULITY OF BUSINESS ADMINISTARATION AND ICT
A BUSINESS PLAN FOR A BUS BOOKING APP
WEEKEND GROUP
YEAR:
2018/2019
DEPT:
BUSINESS ADMINISARATION AND ICT
COURSE UNIT:
INNOVATION, CREATIVITY AND
ENTREPRENEURSHIP
LECTURER:
MR. BATTE GEORGE
SESSION:
WEEKEND
GROUP MEMBERS
BAKA JOSHUA
17/S/BSCS/001/WKD
OKOT RICKY
17/S/DBA/024/DAY
ZUBAIRI KASIRYE
TABLE OF CONTENTS
CHAPTER ONE ............................................................................................................................. 4
BACKGROUND INFORMATION ............................................................................................... 4
1.1 Name and Address of the Business ........................................................................................... 6
1.2 Name and Address of the manager ........................................................................................... 6
1.4 The statement of financing........................................................................................................ 6
1.5 Statement of confidentiality .......................................... Ошибка! Закладка не определена.
1.6 Mission...................................................................................................................................... 6
1.7 Vision ........................................................................................................................................ 7
EXECUTIVE SUMMARY ............................................................................................................ 5
TARGET MARKET ....................................................................................................................... 7
MARKETING................................................................................................................................. 7
SALES ESTIMATES ..................................................................................................................... 9
COMPETITION ........................................................................................................................... 10
FINANCIAL PROJECTIONS ...................................................................................................... 11
APPENDICES .............................................................................................................................. 11
APPENDIX 1: Legal requirement ...................................... Ошибка! Закладка не определена.
APPENDIX 11: Management ............................................. Ошибка! Закладка не определена.
APPENDIX 111: Financial projections .............................. Ошибка! Закладка не определена.
CHAPTER ONE
BACKGROUND OF THE APP
In today’s Dotcom era, life has become fancy; people want to accomplish everything from where they are. People today are willing to
pay more for something convenient and trending. IT today is to focus on meeting the needs of people in a technological way. IT
consumers in Uganda have increased in number since many have realized that IT simplifies life. This has given a rapid evolution and
advancement in the IT domain. This is a manifest rapid explosion of hardware gadgets and software systems around the globe. More
specifically is the explosion of mobile devices that are all around us everywhere. Today almost everything is done on phone, everywhere
by everyone because of his or her affordability and availability. Coupled with the various needs of people today, transport is another
domain in life. Bus Booking App is a mobile application that shall be created to allow users to always book for the spares and tickets in
different bus companies in the country to reduce on lack of ready bus to transport the passengers most especially in festival seasons
when travelling is necessary.
The transport system has been facing some challenges where by passengers would be in need of a bus but fail due to lack of specific
tools that can help them to book for spares in bus ever when they are at a distant place from the bus station.
There have been also a problem of time consuming in the different bus station when bus could be taking long to full up thus delaying
passengers on bus stations where people are very many and the buses are few. Preparation of accurate and prompt reports this becomes
a difficult task as information is difficult to collect from various books.
Being unable to update their manual records. Moreover, above the App shall eliminate all such challenges and do away with all the
manual processes that a person has to do if he/she is to travel by bus.
.
From this observation, we have decided to join the Transport sector in order to grab the opportunity of solving peoples’ challenge as we
help them achieve their desired life through a Bus Booking App using the knowledge and skills attained and developed in our respective
courses.
EXECUTIVE SUMMARY
The proposed Application is a Bus booking APP that will run on mobile devices and android in particular. The development process
shall be carried out through mobile computing that requires no physical premises. IT consumers in Uganda have increased in number
since many have realized that IT simplifies life. This has given a rapid evolution and advancement in the IT domain. This is a manifest
rapid explosion of hardware gadgets and software systems around the globe. More specifically is the explosion of mobile devices that
are all around us everywhere. Today almost everything is done on phone, everywhere by everyone because of his or her affordability
and availability. Coupled with the various needs of people today, transport is another domain in life. Bus Booking App is a mobile
application that shall be created to allow users to always book for the spares and tickets in different bus companies in the country to
reduce on lack of ready bus to transport the passengers most especially in festival seasons when travelling is necessary
The company has been registered as Easy life enterprise ltd and will be incorporated under the companies Act of Uganda. Easy life
enterprise ltd marketing efforts will be aimed primarily at youths between the ages of 14 and 49. Population projections published in
1983 by the ministry of Economic planning and Development’s Bureau of statistics estimated 4.6 million youths in this age group for
the 1987. To test user acceptance as well as general perceptions of potential users has been conducted.
Easy life enterprises ltd product will be sold through regional distributors who will supply supermarkets and Universities throughout
Uganda. Direct competition for the product is the local food vendors and restaurants. The company’s goal is to capture at least 15% of
the total market by the fifth year of operation. The company is expected to be profitable from year one. It is also anticipated that by the
end of the fifth year of operation, exports will account for over 30% of the company’s total sales.
1.1 APPLICATION DESCRIPTION
1.1.1 Name of the App
Avance Course Registration App
1.1.2 Industry of operation
The application system falls under public transport the transport of industry. In Uganda Public, transport is one of the business domains.
It consists of buses, special hire cars, taxis, bodaboda, and a small scale of Tukituki and bicycles. Of recent, the public transport has
gone technological in Uganda as we are witnessing safe bodas, taxify motorcycle and cars. This is a big improvement, which lays a
good platform for this app.
1.1.3 Current Situation and Future prospects
Today 90 percent of public bus transport processing is manual where everything is done on paper i.e. booking a sit, receipting etc.
People have to move physically to the bus terminal offices to do the processing and after sit and wait for his time of travel or even wait
the bus to get full. This puts the app on demand more especially in this forth-coming festive season.
In two years’ time from now all bus company administration will be carried out on the app as it is too customized to accommodate all
office duties related to bus companies.
1.1.4 Mission
To be recognized as the leading innovators and proprietors of high quality applications in the public transport sector.
1.1.5 Vision
Eliminating passenger collision within the bus offices and parks during bus booking and bording.
1.1.6 Goals and Objectives

Digitize the work done to ease bus management

Bring quick access to bus services

To reduce the time taken through manual system in order to maintain all the records
PRODUCT DESCRIPTION
Companies today are adopting the use of the computerized systems to reduce on the different challenges in the organization. Bus booking
system aims to reduce on the passenger collision with in the parks during bus booking. BBS provides different pages/software that help
a passenger to book the bus of his choice, time of departure and the price for the route he wants to take. It also aims to reduce time taken
through manual system in order to maintain all the records
Functionality
This system will be used to track information of all passengers who come to book a service. It will also be able to register all the
passengers and give them random numbers to prevent any data application. It will also be able to retain the details of all passengers in
the database.
It will also be able to reduce on the congestion and collision on buses and in the stations since spaces/seats will have been booked
already. The app will exhibit a competitive advantage because it is the only one of its kind in Bus transportation in Uganda.
BUSINESS ANALYSIS
The Bus Booking App development is a new project that shall require experience in various programming languages and being new in
the industry this pauses to be our weakness but this can’t outweigh the fact that we practicing programmers with potential to face the
new challenge at hand. More so, since the App shall be downloaded free from google play store most users will have ease of access to
the app, coupled with the circulation of mobile phone. The market base is large as bus companies are various in number today in Uganda
with various branches scattered around the countryside. This is more fueled by frequent travel season that hit the industry and this
firmament the app. Opportunity wise there is no current app like this proposed Bus Booking App and this gives us the highest drive to
achieve it though potential competitors might manifest in the near future.
The first target market are all bus companies in Uganda with a pilot study to be conducted at Bakulu Coaches Ltd.
TARGET MARKET
The segment of the population at which Bus Booking App is aiming its marketing efforts is well defined.
This target market is made up of youths between the ages of 15 and 55 (generally referred to as the reproductive ages). The app shall
cater for all people who travel to different parts of the country.
The population of potential users of Bus Booking App in Uganda is unlimited. Most people have to travel from Kampala back to their
villages and vice versa.
Population projections of 2 million users within 2 years. Assuming constant level of mortality and fertility, this figure is expected to rise
up to 5.2 million by 2030. The present data shows that approximately 6 million of people live in urban areas.
Bus companies in order to strengthen their customer base and have competitive advantage over others shall buy the app. The users will
automatically adopt it because it will be downloadable freely and it will be more convenient to them than ever before in process of
booking a bus ticket. More so it trendy in in this era of Dotcom.
THE OPPORTUNITY
SALES ESTIMATES
Of the one million urban Ugandan youths between the ages of 14 and 49, management estimates conservatively that at least 50% will
be the users of the food vending machines. The company aims at capturing 25% (approximately 75,000) of the local market by the fifth
year of operation. Based on the assumption that at least each university will use two machines, total units sold locally should exceed 10
machines by the fifth year. Projected total unit sales for year fifth including exports 15 machines. The actual numerical calculation is
provided below:
The product will be sold through the following regional distributors who will supply supermarkets, universities and grocery shops in
their respective territories:
Uganda area
Kampala town
Gulu area
Mbale area
Gulu University
IUIU university
Hoima area
Bunyoro university
Toro area
Mt of the moon university
COMPETITION
Direct competition for Easy life enterprise ltd is expected to come from the local shops. The services produced by these local shops are
similarly except that for us we prove our services in an electronic way.
Easy life enterprises ltd will first launch its product under one brand name and depending on the experience in the market, may introduce
another brand. The competitive strategy that Easy life enterprise ltd will consist of offering a high quality product at the same retail
price.
FINANCIAL PROJECTIONS
Included in Appendix are the projected financial statements for the first five years of operations. Also included a list of assumptions
used for the forecasts. The financial statements include a projected five-year pro forma Balance sheet, an Income Statement, a cash flow
statement, a depreciation schedule, a salaries projection, an expenditure projection, a working capital schedule and a net present value
computation sheet.
UGX. 160,000,000 of the original investment will be used for factory construction and purchase of equipment which will be used for
making the machine. The remaining monies UGX.40, 000,000, will remain as cash available for payment of start-up and operational
expenses. There is an import duty on the equipment equal to 25% of its value. This amount is shown as part of the equipment cost and
is depreciated over a ten-year period.
When the company starts production in December 2019, a much slower production rate than the maximum possible will be scheduled
to assure the quality of the product. The factory will be capable of producing approximately 2 machines per year 8-hour shift for 317
days per year.
BFF Integrated Farm
Number of operational days in a year
Number of months in a year
317
12
Corporation Tax
30%
Discount factor
25%
Capacity indicators
Capacity (Volume in units) per year
2
Depreciation policy
Buildings
Machinery & Equipment
0% UGX
10% UGX
Motor Vehicles
0% UGX
Furniture, Fixtures
0% UGX
Computers
20% UGX
Working capital requirements
Inventory purchases
2 days
Debtors - 1 months' revenue
0 month
Creditors 1 month's expenses (Excluding
salaries)
0 month
% of
Cost indicators
Power & lighting
revenue
0.45%
Direct cost (raw materials/inventory)
0%
Water
0%
Airtime, telephone bills
0.20%
Transportation
0.55%
Admin Expenses
0.25%
Business Promotion (advertising, etc)
0.25%
Maintenance & Repairs
0.20%
Security
0%
Cleaning
0%
Financing
Friends and family (fundraising)
%
33.30%
Personal Savings
66.70%
Underutilized land and building
Underutilized pickup
0%
Donated furniture and fitting
Donated computer
Total
100%
APPENDICES
APPENDIX 1: Legal requirement
According to the Ugandan laws any person is free to establish a technological business as long as he has the necessary capital.
However before, when and after establishing the business, it has to meet the following requirements
1. The business must deal in products accepted by both the society, the ministry of trade and the Uganda revenue authority
2. Register with local government
3. Pay tax/license
APPENDIX 11: Management
BAKA JOSHUA
……..………...Managing director
OKOT RICKY …………………...Marketing manager
EMILY GIFT ……………... …..
Finance manager
KASIRYE ZUBAIRI ……………... ….Operation manager
APPENDIX III. FINANCIAL PROJECTIONS
BUS BOOKING
APP
Initial Investment (startup costs)
(Amount in GX)
Investment Item
Fixed Assets:
Land & Building (underutilised)
Land & site development
Total Land & building
Machinery & Equipment:
Equipment
Machinery
Total Machinery & Equipment
Amount
Year 0
-
-
Motor Vehicles:
Saloon car
Pick up (underutilised)
Total Motor Vehicles
-
Furniture & Fittings (donated)
Furniture & fittings
500,000
Other
Total Furniture, fittings & others
Computers (donated)
500,000
5,000,000
5,000,000
Pre- Operating Expenses
Plant layout
Legal costs
General expenses
Total pre- operating expenses
-
Working Capital
Total Investment cost
Financing structure
Sale of shares in class (fundraising)
5,500,000
%
Amount
Grants
Underutilized land and building
Underutilized pickup
Donated furniture and fitting
Donated computer
Total
-
BUS BOOKING
APP
Sales
projections
(Amount in
UGX)
Price indicators
Year 1
Annual price growth rate
BBS APP
Volume indicators
Annual volume growth rate
10,000,000
Year 1
Year 2
Year 3
Year 4
15%
20%
25%
11,500,000
-
13,800,000
17,250,000
-
Year 2
Year 3
40%
Year 5
60%
17,250,000
-
Year 4
80%
-
Year 5
APPS
0
Annual Sales Revenue
APPS
0
Total sales revenue
3
3
5
-
-
8
14
-
Year 1
14
-
Year 2
-
-
Year 3
Year 4
Year 5
238,464,000
-
238,464,000
-
238,464,000
238,464,000
30,000,000
-
55,200,000
-
105,984,000
30,000,000
55,200,000
105,984,000
-
Alpha Technologies
Limited
Depreciation
schedule
(Amount in UGX)
Year 0
Building
Opening cost
Additions
Depreciation
Net Book Value
Year 1
-
0%
Year 2
Year 3
Year 4
Year 5
-
-
-
-
-
-
-
-
-
-
MACHINERY AND
EQUIPMENT
Opening cost
Additions
Depreciation
Accumulated Depreciation
Net Book Value
MOTOR VEHICLES
Opening cost
Additions
Depreciation
Accumulated Depreciation
Net Book Value
FURNITURE
Opening cost
Additions
Depreciation
Accumulated Depreciation
Net Book Value
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0%
0%
15%
-
Computers
Opening cost
Additions
Depreciation
5,000,000
20%
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
Accumulated Depreciation
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
5,000,000
-
5,000,000
5,000,000
-
5,000,000
5,000,000
-
5,000,000
-
Total Depreciation
-
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
Total Accumulated Depr
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
Net Book Value
TOTALs
Opening cost
Total Additions
Total Net Book Value
-
-