Business Model- Jakubowski
By Max Jakubowski
February 13, 2017
My app- Home Cooked- is an app that is a food delivery application that connects local bakers/cooks who want to share/sell their meals and recipes to the those who are looking for a home cooked meal and an alternative to the “greasy, fast food” delivery service already available. The app works similar to other food delivery services (i.e. GrubHub). Cooks/Bakers sign up to show what meals they are cooking, how much they are preparing, times available and price. Customers then can look at reviews and photos of the meals and select the meal. Delivery or pickup is determined by the seller. For demo purposes, i limited my spreadsheet to the Syracuse area only for financial reasons.
For initial expenses, there will be a heavy marketing campaign in the begin so people can learn about the app, both the cooks and the customers. Ads will be made and also a marketing team will be consulted. The website/application will also incur beginning costs, though the idea and framework is simple enough that it won’t be terribly expensive. Legal fees are needed due to FDA policies on selling food and making sure the cooks are approved. Only two employees to start for year 1, in order to keep costs low.
For revenue, each cook that signs up pays a $60 membership fee. In month 1, 5 cooks are projected to sign up, with 5 new cooks signing up each additional month. So 60 total cooks on hand (for only Syracuse area) by end of year 1. There is also a commission portion, where the company takes 15% of each sale made by the cook. We project that each cook will make 3 sales per week, averaging at about $25 per sale. In months 1, the company will only make about $225 on commission, but month 12 we make nearly $3000. Commissions are the key to our business model.
Jakubowski-Business model spreadsheet