WeM@CH | A Business, Finance, and Communications IT System
To be developed by CariWEBS
ECONOMICS
ECONOMIC EVALUATION
These assumed figures are based on an average of 100,000 people out of a total population size of 1.3M+ people using this service anywhere from five (5) times per day to just once a day.
A cost-benefit assessment visualizes the lowest or most minimum service cost of $0.10 per transaction, a mere cost of charging cents on the dollar.
This is to determine and to have a basic idea as to how much revenue is possible that can be generated from the lowest cost, per transaction.
On that basis, an evaluation can then be made to see how profitable such a service could operate and be sustainable as a business with such a source of income using different use case scenarios.
User Case Scenario 1
Examining the data on each chart, the assumption looks at an average user target of 100,000 people consistently using the system about five (5) times per day for all its offerings provided in total for what people would be able to use the system to do.
This would naturally generate its maximum revenue potential. However, if the target of 100,000 users is not reached then a few scenarios would then have to be considered.
User Case Scenario 2
If the target of 100,000 users is not achieved, but half of that instead of 50,000 users consistently using the system about five (5) times a day, this would now generate a revenue potential half that of previously assumed.
The data representing this new assumption is presented in each chart shown.
User Case Scenario 3
If the target of 50,000 users is not achieved, but half of that instead of 25,000 users, quarter of 100,000, consistently using the system about five (5) times a day, this would now generate a revenue potential half that of previously assumed again.
The data representing this new assumption is again presented in each chart shown.
User Case Scenario 4
These figures all look great because of their share size as numbers. However, assuming the target of 100,000 users is achieved of people consistently using the system but only once per day, this would now change the whole economic outlook as the revenue potential would be drastically reduced to generating a much lower level income.
The data representing this change in assumption is presented in each chart shown.
Use Case Scenario 5
If the target of 100,000 users is not achieved, but half of that instead of 50,000 users consistently using the system about just once per day, this would now generate a revenue potential half that of previously assumed.
The data representing this new assumption is presented in each chart shown.
Use Case Scenario 6
If the target of 50,000 users is not achieved, but half of that instead of 25,000 users, quarter of 100,000, consistently using the system just once per day, this would now generate a revenue potential half that of previously assumed.
The data representing this new assumption is again presented in each chart shown.
FINANCIAL ANALYSIS
In the data presented, it assumes how profitable this service may become as a business based on investment capital needed, any possible debts arising from investor or sponsor involvement, operating expenses, payroll expenses (if people may need to be hired to assist with daily running of the business), applicable taxes, and what the gross and net income figures would look like that would make this project feasible or not as a potential worthy investment.
From the data, using only mere minimum figures at the lowest cost, potential profitability seems to show the system running as a business offering all of its services makes it as a doable venture in being able to repay all debts from sponsorship with a favourable and sizable interest, cover all expenses, handle paying of necessary taxes where applicable, and remain with an acceptable amount of net income at the end of the day.
In the chart and tabulated data views presented above, the data depicts from a revenue generated from 100,000 down to 25,000 users using the system just once per day at a minimum cost of $0.10 per transaction what would occur when deductions are applied. For instances where gross or net profits fall below an acceptable business operating level, by applying an increase of $0.05 could bring revenue levels back up to an appreciable level that can support regular business operations.
However, under two separate instances a different user base amount produced the exact same revenue potentials projected from 50,000 and 25,000 users using the system just once per day at $0.10 and $0.20 per transaction respectively. This shows that even at a much lower cost of service charge the exact same revenue potential can be achieved, once there is a larger user base target, as apposed to a much higher service charge with a smaller user base.
Therefore, to increase revenue output the focus can be better placed on setting a goal for a larger user base as the target to increasing the number of users using the system or aim for a higher frequency of use of the system per day or both so that by volume a higher revenue and profit potential can more sustainably support the economic and financial position of the business to more comfortably handle all necessary financial deduction undertakings.
