"Business Development Proposal (BDP)Payment policy for Cloud UK would depend on client’s requirements. If simple and straight –forward requirements are demanded, then payment would be asked at the end of entire cloudimplementation in their work premises. If demands are complex, then some advance paymentis asked probably 25 % of the total amount quoted. After complete cloud implementationremaining amount will be accepted. Modes of payments will be through online banking orcheques. Free trial for personal users’ for duration of 30 days is designed in Cloud UK so thatmore number of customers opt for Cloud UK services. A purchase pattern is as follows: Cloud UK will purchase IaaS cloud service from AmazonWeb Services (AWS) and SaaS services from Salesforce. Then Cloud UK will serve theirclients by providing cloud services. Organisational Feasibility Research Purpose or aim of conducting Organisational feasibility study is to determine if Cloud UKbusiness have sufficient resources, organisational competence and experts in management inorder to start the business. Organisational feasibility research also focuses on non – financialresources. There are mainly two components of Organisational feasibility study. They are: (1)Management Prowess and (2) Resource sufficiency.(1) In the process of Management Prowess, research is conducted to ensure if themanagement team is enough skilled and organised to setup the Cloud UK business.As mentioned earlier, Cloud UK will target highly skilled employees with minimumfour years of experience of work in Cloud Computing domain. In order to attracthighly skilled employees, high salary when compared to other companies will bedesigned and offered to them. As the Cloud UK Company CEO has work experiencein Cloud Computing domain, it is an added advantage to the entire management team.The management team will comprises of a HR (Human Resource) Recruiter to carryout the recruitment process and other tasks, business analysts, developers, designers,testers etc. Thus, number of employees in Cloud UK will be approximately 20employees excluding CEO and two other partners. Management team is wellorganised and skilled enough to set up Cloud UK Company. Also, Cloud UK partnershave been consulting a business consultant at every step of business set up.Networking with few clients has been developed successfully. (Ali, 2013)22 Business Development Proposal (BDP)(2) Resource Sufficiency: The next component of Organisational feasibility study tounderstand the availability of sufficient resources to set up the Cloud UK Company.The type of resource that is studied or researched here is non – financial resources.The necessary non – financial resources to set up Cloud UK Company are describedas follows:- Availability of office or workspace or a plot to build an office- Necessary infrastructure such as desktops or laptops, internet connection, availabilityof landline phones etc- Support from local and State Government to set up Cloud computing business in thatparticular area- Availability of quality labor pool - Good relationship and networking with key suppliers that are Amazon Web Services(AWS) and Salesforce Company and also customers (Ali, 2013)- Recruitment of highly skilled and experienced employees in every domain (testing,development, customer care, support , HR) etc- Intellectual Property (IP) protection in crucial areas of work (Hill, n.d.)Looking at the non – financial resources, it is feasible to proceed for setting up Cloud UKCompany.Cloud UK Organisational Structure:General:(1) Marketing Manager(2) Sales Manager(3) Finance ManagerTechnical Team:(1) Business Analyst23 Business Development Proposal (BDP)(2) Delivery Manager(3) Developers(4) Designers(5) TestersSupport Team:ASG (Advanced Systems Group) Support Team and IT Support team.Financial Feasibility Research Financial Feasibility Research for Cloud UK Company comprises of six different analysisprocesses. They are: Sales Forecast, Project Funding, Cash flow Projections, Profitability,and Break – even Analysis. (1) Project Funding:Initial Project Funding for Cloud UK Company is estimated as £ 80, 000.Project Fundingcan be categorised into four different sections. They are explained as follows:? Capital Expenditures (accounts for each important and crucial expenses of Cloud UKCompany): This type of expenditure includes the cost for setting up state – of – the –art workplace with all amenities. Capital Expenditures also include the costs forprocuring assets such as computers, laptops, network connections, cell - phones,landline phones, IP phones etc. Apart from these, there are some high – cost facilitiessuch as audio conferencing rooms, video conferencing rooms, auditorium etc. Thiscost accounts for some of the important features of a good workplace such as: well - furnished interiors, Air conditioning facility etc. (Accounting-simplified.com, 2015)? Working Capital (Accounts that are payable and accounts that are receivable andinventory, website domain registration expense): This type of expenditure includessome of the recurring expenses that are outsourced to third party companies such asyearly licensing fees of IaaS from Amazon Web Services (AWS) and SaaS fromSalesforce Company. This type of capital also includes payment of taxes to the UKgovernment on a monthly or yearly basis as and when applicable. Other recurring24 Business Development Proposal (BDP)expenses for the normal day – to – day operations such as housekeeping, electricalmaintenance etc are considered under working capital. ? Other crucial expenditures (such as expenses done for Cloud Computing marketresearch, commercializing expenses, travel expenses, recruitment expenses, trainingexpenses, etc): This type of expenditure includes costs that are involved in performinga detailed and thorough analysis of the current market trend of Cloud Computing andthe projected future trend. The success of a Company is dependent on effectivecommercialization strategies and vision. This involves advertising of Cloud UKCompany on websites, social networking sites such as Facebook, Twitter etc,newspapers, hoardings, television channels etc. Initially to attract more clients, clientmeetings will necessitate travel and accommodation expenses of business executives.Such expenses are covered under other crucial expenditures. In order to ensure thatCloud UK Company are hiring the right talent capable of delivering world classsolutions it is important to associate with the right recruitment agencies. The costinvolved in researching and paying these recruitment agencies are accounted in othercrucial expenditures. Post recruitment in order to make sure that the workforce is upto date with the latest technologies in market it is important to provide them withtraining from top class trainers. These costs add up to the other crucial expenditures.? Legal and Regulatory expenditures: Preliminary tasks such as setting up Cloud UKCompany and registering as a private company with the government involvesdocumentation, legal expertise and registration charges. Since the skills such as legalexpertise demand high charges Legal and Regulatory expenditures caters to this need.(2) Sales Forecast:On the basis of Market research conducted on cloud computing services in United Kingdom,the sales figures are estimated. According to the requirements provided by the clientcompany, the efforts required might vary, thus affecting the estimated figures. If therequirements are directly available out – of – the – box in the Software Stack then the cost of Sales of that particular requirement are less. Cloud UK Company has considered average ofboth the situations. In real – time business, these figures might vary. On a yearly basis, theGross margin has to be maintained. If client’s requirements are direct and simple, payments25 Business Development Proposal (BDP)are received after complete implementation of cloud in client’s workplace. And if client’srequirements are complex and require extra design, development and testing efforts, then partpayment of up to 25 % is expected. Table 3.1 gives the details on Sales Forecast for Cloud UK Company from year 2016 to year2020. New For year For year For year For year For year For yearClients 2015 2016 (Year 2017 (Year 2018 (Year 2019 (Year 2020 (Yearper year (Year 0) 1) 2) 3) 4) 5)Cloud Not 150 195 250 300 370Service ApplicableDeliveriesSales at £ Not £ 300000 £ 390000 £ 500000 £ 600000 £ 7400002000per ApplicableDelivery Table 3.1 Sales Forecast for Cloud UK Company from year 2016 to year 2020(3) Cash flow Projections: Cash flow is a mechanism to measure how much cash flow in and how much cash flow out ofthe company. It is an important and vital tool in managing and letting Cloud UK company know when there is a surplus in the cash flow so that it can be invested in high yieldingsectors. On the contrary side, if there is a dip in the cash flow it gives Cloud UK Company anearly insight in arranging finance to counter unexpected reductions in cash flow. Cash flowprojection is the sole basis and evidence to prove to a bank or financial institution that CloudUK Company deserves a financial support. Cash – flow projections for Cloud UK Company can be categorised into three different parts.They are described as follows:- Cash – flow Revenue: This consists of revenue earned by Cloud UK Company for theCloud Computing services provided to various customers. 26 Business Development Proposal (BDP)- Cash – flow disbursements: This consists of revenue expenditure made by Cloud UKCompany towards the expenses explained in the above sections. - Difference between Cash flow Revenue and Cash – flow disbursements (Cash – flowReconciliation): Reconciliation gives a clear picture of the opening balance for themonth which is calculated on the basis of sum of existing balance and cash – flowrevenue followed by subtracting cash – flow disbursement. (Ward, 2015)Table 3.2 provides details about the Cash – inflow or revenue of Cloud UK Company. For year For year For year For year For year For year Year 2015 (Year 2016 (Year 2017 (Year 2018 (Year 2019 (Year 2020 (YearCash0) 1) 2) 3) 4) 5)RevenueCash Not £ 300000 £ 390000 £ 500000 £ 600000 £ 740000earned Applicable fromCloudservicedeliveries Bank £ 80, 000 LoansTotal Cash £ 80, 000 £ 300, 000 £ 390, 000 £ 500, 000 £ 600, 000 £ 740, 000revenueTable 3.2 Cash – inflow or revenue of Cloud UK CompanyTable 3.3 provides details about the Cash – outflow or cash flow disbursement of Cloud UKCompany. For year For year For year For year For year For year Year 27 Business Development Proposal (BDP)2015 2016 2017 2018 2019 2020CashDisbursement (Year 0) (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)Cloud Services Not £ 40, 000 £ 40, 000 £ 50, 000 £ 50, 000 £ 50, 000licensing feesApplicablepayable to AWSand SalesforceCompaniesEmployee Not £ 60, 000 £ 60, 000 £ 80, 000 £ 80, 000 £ 100,SalariesApplicable 000Government Tax £ 15,000 £ 5,000 £ 5,000 £ 6,000 £ 6,000 £ 6,000payments andLegal andRegulatoryTasksCommercializing£ 10, 000 £ 10, 000 £ 15, 000 £ 15, 000 £ 20, 000 £ 20, 000Recruitment and £ 10, 000 £ 10, 000 £ 10, 000 £ 12, 000 £ 12, 000 £ 15, 000TrainingLoan payments £ 20, 000 £ 20, 000 £ 20, 000 £ 20, 000 £ 20, 000 £ 20, 000Total Amount in £ 55, 000 £ 175, £ 180, £ 208, £ 213, £ 236,£ 000 000 000 000 000Table 3.3 Cash – outflow or cash flow disbursement of Cloud UK CompanySummary of cash – flow (Reconciliation):Table 3.4 provides Summary of cash – flow Reconciliation for Cloud UK Company28 "