"Business Development Proposal (BDP)For year For year For year For year For year For year Year 2015 2016 2017 2018 2019 2020Cash flow(Year 0) (Year 1) (Year 2) (Year 3) (Year 4) (Year 5)ReconciliationOpening Cash 0 £ 15, 000 £ 140, 000 £ 350, 000£ 642, 000 £flow 1,029,000Net cash flow £ 15, 000 £ 125, 000 £ 210, 000 £ 292, 000 £ 387, 000 £ 504,000Closing cash £ 15, 000£ 140, 000 £ 350, 000 £ 642, 000 £ £flow1,029,000 1,533,000Table 3.4 Summary of cash – flow Reconciliation for Cloud UK Company(4) Profit and Loss Statement: In a given time frame, the financial summary of all detailed trading events is known as Profitand Loss Statement. Table 3.5 provides the Profit and Loss Forecast for Cloud UK Companyfrom year 2015 till year 2020. YearFor year For year For year For year For year For year2015 2016 2017 2018 2019 2020Profit Loss(Year 0) (Year 1) (Year 2) (Year 3) (Year 4) (Year 5)Revenue0 £ 300, 000 £ 390, 000 £ 500, 000 £ 600, 000 £ 740, 000Cost of Cloud 0 £ 40, 000 £ 40, 000 £ 50, 000 £ 50, 000 £ 50, 000ServiceslicensingGross Profit in 0£ 260, 000 £ 350, 000 £ 450, 000 £ 550, 000 £ 690, 000£Table 3.5 Profit and Loss Forecast for Cloud UK CompanyOther Expenses: Table 3.6 provides details about other expenses. 29 Business Development Proposal (BDP)For year For year For year For year For year For year Year 2015 (Year 2016 2017 2018 2019 2020Other Expenses0) (Year 1) (Year 2) (Year 3) (Year 4) (Year 5)Office Rent Not £ 10, 000 £ 10, 000 £ 15, 000 £ 15, 000 £ 15, 000charges ApplicableInfrastructure Not £ 20, 000 £ 20, 000 £ 10, 000 £ 10, 000 £ 10, 000(desktops,Applicablephones, internetconnection etc)Employee Not £ 60, 000 £ 60, 000 £ 80, 000 £ 80, 000 £ 100,SalariesApplicable 000Commercializing£ 0 £ 10, 000 £ 15, 000 £ 15, 000 £ 20, 000 £ 20, 000Recruitment and £ 0 £ 10, 000 £ 10, 000 £ 12, 000 £ 12, 000 £ 15, 000TrainingLoan payments £ 0 £ 20, 000 £ 20, 000 £ 20, 000 £ 20, 000 £ 20, 000Total expenses £ 0 £ 130,000 £ 135,000 £ 152,000 £ 157,000 £ 180,000or otheroverheadsTable 3.6 details about other expensesProfit before tax: YearFor year For year For year For year For year For year2015 2016 2017 2018 2019 2020(Year 0) (Year 1) (Year 2) (Year 3) (Year 4) (Year 5)Profit before tax £ 0 £ £ 215,000 £ £ 393,000 £130,000 298,000 510,000£ 0 £ 32,500 £ 53,750 £ 74,500 £ 98,250 £Tax @ 25%127,50030 Business Development Proposal (BDP)£ 0 £ 97,500 £ 161,250 £ £ 294,750 £Profit after tax223,500 382,500£ 0 £ 0 £ 0 £ 0 £ 0 £ 0Dividends£ 0 £ 97,500 £ 161,250 £ £ 294,750 £Reserves Cash223,500 382,500Table 3.7 To calculate Profit before taxROEI:For year For year For year For year For year For year Year 2015 (Year 2016 (Year 2017 (Year 2018 (Year 2019 (Year 2020 (Year0) 1) 2) 3) 4) 5)ROEI Not 1.21 % 2.01% 2.79 % 3.68 % 4.78 %applicableTable 3.8 ROEI (in %) Calculation for years 2015 – year 2020(5) Breakeven analysis:Breakeven Sales Value = Average fixed cost / ( % Contribution )Average fixed cost = (Sum of Total expenses or other overheads) / Number of years= £ 150,800Assuming Contribution = 50 %Revenue Contribution Fixed cost Profit£ 150,800 £ 75,400 £ 150,800 £ -75,400£ 301,600 £ 150,800 £ 150,800 £ 0£ 452,400 £ 226,200 £ 150,800 £ 75,400£ 603,200 £ 301,600 £ 150,800 £ 150,80031 Business Development Proposal (BDP)Table 3.9 Detailed calculations for Break – even analysisPlot of Breakeven analysis:Break even analysis Contribution Fixed Cost Profit Results of Research in terms of Ambition versus AbilityThe Company’s ambition is to become a large – scale provider of Cloud Computing and BigData Services. Through disruptive innovation we aim to become a key player in the latest andniche technologies. The key strategy towards the achievement of this goal is to establish ourCloud UK Company as a reputed company in providing Cloud Computing services. Once thisgoal is achieved, we plan to continue providing Cloud Computing services in a very largescale by incorporating PaaS (Platform as a Service). Then in later stage, Cloud UK Companywill expand their business by serving customers with Big Data services and recruit morenumber of employees. 32 Business Development Proposal (BDP)Emergent Resource NeedsResources that are a must to set up Cloud Computing Company are known as Emergentresources. They are described as follows:1. Workplace with necessary infrastructure2. All legal or regulatory tasks approved from local and state government3. Purchase of Cloud Computing services that are IaaSand SaaS from Amazon WebServices (AWS) and Salesforce Company4. Employees such as developers, designers, testers etc33 Business Development Proposal (BDP)Chapter – 4 the Business ModelBusiness model developed for Cloud UK Company is shown in Table . Partner Network Key Activities Value Customer Customer orPropositio Relationship Client Segments n or Offer 1. Personal1. Partnership (1) DevelopUsersHighbetween excitingProvide high –qualityCEO of the offers 2. MNCquality andservices,Company such as Companieslow costlow – costand two free trialservices to all3. Small andservices,other for 30customers,mediumfree trial,Partnersdaysdesign excitingscale24 / 7(applicabl offers for them2.Maintaining industriessupport,e forregularly andBuyer- highlypersonalthus build 4. Governme Supplierreliable,usersgood nt bodiesrelationshipsecuredonly)relationshipwith Cloudandwith allservice (2) Monitorflexibleexisting clients providers Competito services,that are: (1) rs servicefree loadIaaS services rates and balancingfrom design features Amazon moreWeb efficientServices and plans(2) SaaS(3) RecruitServiceshighlyfromskilledSalesforceemployees Company34 Business Development Proposal (BDP) Key ResourcesDistributionChannelsJob site /premisesElectronicIaaS and SaaS media,servicesNetworkingCustomer detailsServersAnd Technology Cost Structure Revenue StatementsLow cost cloudHigh revenueservices and free 24is expected/ 7 supportafter twosuccessfulyears ofservice andfurtherexpansion ofbusiness byincorporatingPaaS serviceand later BigData Services.Table – Business Model Designed for Cloud UK CompanySource: (Wordstemplates.org, n.d.)Description of each element:1. Partner Network: Cloud UK will have one CEO and two other partners with somepercentage of shares. IaaS Services will be purchased from Amazon Web Servicesand SaaS services will be bought from Salesforce Company. Thus, Cloud UK will 35 "