1. Startup Expenses 

The startup expenses include the initial expenses that need to be considered for launching our company. As we estimate a startup period of 3 years before officially launching our product service system to the public, multiple steps need to be taken beforehand.  

1.1 Market research 

To get a better overview of how to successfully launch this startup, we will conduct market research through online surveys, interviews, and focus groups. This approach will enable us to get a deeper understanding of the needs of the customer and identify the key factors that influence the decision-making process when renting our power banks. They will be executed over a one-year period, to really get a deeper understanding of the tourist situation in Amsterdam throughout the entire year. For this purpose, we are estimating a budget of 2.000 Euros. 

1.2 Product Development 

Given the uniqueness of our product, design-wise it is necessary to further optimize and design the product to the best possible outcome, taking into account both production and maintenance. Additionally, we recognize the need for further development of the power bank station. For this, we are considering a budget of 5.000 Euros, for hiring a professional design team.  

1.3 Legal Fees & Permits: 

For the legal fees and permits, we acknowledge the importance of consulting with a business law attorney specializing in Amsterdam. Nevertheless, we are thinking of considering the following aspects: 

• Business registration 
• Contracts and Agreements 
• Employment and Labor Law 

1.4 Technological Infrastructure:  

For the technological infrastructure, these aspects are considered:

• Hardware  
• Software and Application for renting and returning the power banks and the customer service 
• IT Infrastructure (ex. Wi-Fi routers and their maintenance) 
• Website and Online Presence, by hosting and maintaining it through updates 
• Security Measure, to fund cybersecurity that protects the whole infrastructure and our customers’ data 
• Training of the team to ensure it has sufficient knowledge on how to use the IT technology infrastructure 

For all these aspects, we are considering a budget of 3.000 Euros. 

1.5 Production Costs 

For the Production Costs we are considering the following Suppliers for our wireless power banks 

Possible suppliers 

• Panasonic Corporation: A renowned global supplier offering a wide range of batteries, including lithium-ion batteries suitable for portable power banks. 
• Samsung SDI: Known for producing high-quality lithium-ion batteries used in various applications, including portable power banks. 
• LG Chem: A leading manufacturer of lithium-ion batteries, offering reliable and high-performance battery solutions. 
• Sony Corporation: Known for its expertise in electronics, Sony produces lithium-ion batteries used in portable devices and may have suitable options for power banks.
• BYD Company Limited: A diversified company that manufactures rechargeable batteries, including lithium-ion batteries used in portable power banks. 

As they are not publishing the exact costs of the power banks, we took a look at an estimation, which states that they cost around 14 dollars per.

Throughout Amsterdam, we want to implement 25 Stations, where every station has two sides. Per station, we will have 100 power banks, 50 on each side of the station.

From this, we estimate a total need of 2.500 power banks additionally with 50 extra power banks. This would cost estimating us 357.000 Euros.

Total Startup Expenses 

Looking now at the total startup expenses we estimate around plus/minus 367.000 Euros. 

2. Income 

We came up with different subscription and payment plans that satisfy different needs and fits a different kind of tourists: 

2.1 Two Subscriptions

1. Daily Subscription  

The fixed fee of 7 euros lets the customer exchange 3 batteries throughout one day. After 24 hours of his subscription, they are required to return the power bank that is in their possession, or they will be charged a fee of 15 euros. This fee will continue to be applied until the system recognizes that the customer has returned the last power bank in their belonging. However, there is a possibility to extend the daily subscription plan for another day if desired. The app will provide a reminder with a specific time limit to ensure the customer is aware of the extension option.

This subscription plan targets tourists who require a constant power supply during their short-term visits to the city. It would be offered to the customers intending to get the pay-per-use plan. 

2. Weekly Subscription 

The weekly plan operates similarly to the daily plan but covers a period of seven days. The customer here is charged 25 euros (purchasing the daily plan for 7 days would cost 49 euros). If the power bank is not returned after the week, the customer will get charged 30 euros per day until all power banks are returned. However, customers will have the opportunity to extend their plan and will be reminded of this option before the subscription ends. Throughout the entire week, customers have the possibility to exchange up to 30 power banks.

This plan is suitable for tourists who want to stay a little bit longer in Amsterdam (ex. business tourists). 

2.2 Other Payment Plans

1. Pay-Per-Use Plan  

This plan gives the tourists the chance to rent a power bank from us without the need for a subscription. They can simply rent a power bank whenever they need it for a charge of 5 euros. If the power bank is not returned after 24 hours from the time of payment, a daily charge of 15 euros will be applied until the registered power bank is returned to one of the power bank stations. 

This plan fits tourists who may unexpectedly find themselves in need of a power bank unexpectedly or those who only require power banks infrequently.

2. Family/Group Plan  

This plan offers the usage of multiple power banks simultaneously, at a more discounted price. The first power bank would cost the normal 5 euros and for every extra one an additional amount of 3 euros, with a minimum of renting 5 power banks in total. The subscription here works the same as in the Pay-Per-Use (same return time and penalization for not returning) 

3. Insurance Plan 

Amsterdam is a city with a lot of pickpockets (in 2022 with 15 to 20 pickpocket reports a day¹), so there is a chance for the customer to get additional insurance for the power bank. The insurance costs 7 euros daily, which is added on top of the chosen plan/subscription. In the event of theft, the insurance coverage would be separate from the 10 euros charged when the power bank is not returned in time. Additionally, if the power bank is reported missing or stolen, there will be a specific fee associated (as outlined in the Payment Fee for stolen or lost power banks).

Payment Fee for stolen or lost power banks 

Lost power banks can be reported to our customer service, and GPS tracking is available to assist in locating the device. Once a power bank is reported lost, the daily charges will be disabled. However, there will be a fee of 25 euros for the lost power bank. Alternatively, if the customer chooses to help us locate the power bank and returns it to one of our designated power bank stations the fee can be reduced to 15 euros. 

In case of stolen power banks, a fee of 25 euros will be charged.

3. Revenue Projections 

For calculating an estimation of the revenue projections we take a look at the pay-per-use plan. We estimate a rent of 20 power banks per station and per day: 

• Rental fee per power bank: €5 per day 
• Estimated average rentals per day: 20 
• Monthly revenue projection: €5 x 20 x 30 = €3,000 
• Annual revenue projection: €3,000 x 12 = €36,000 

Additionally, we estimate around 5 daily new subscriptions to our daily subscription plan (all over Amsterdam): 

• Rental fee per power bank: €7 per day 
• Estimated average rentals per day: 5 
• Monthly revenue projection: €7 x 5 x 30 = €1,050 
• Annual revenue projection: €1,050 x 12 = €12,060 

4. Fixed Expenses 

4.1 Office Space 

The concept is to have the headquarters of the company U’charge within the heart of Amsterdam itself. From there we would install our servers and operate our customer service. For a unit with 6 desks, the price would be around 2.000 euros monthly including the service costs. 

4.2 Storage Space 

Next to the office space we also need to consider the storage space of the spare power banks that were bought in the batch from the supplier, as well as the case around it. For a storage space of 11 square meters, it would be around 55 Euros per week. 

4.3 Marketing and advertising 

In general, the options considered for marketing and advertising are the following: 

• Outdoor Billboards: The cost of billboard advertising in Amsterdam can range from 1.000 Euros to 10.000 Euros or more per month, depending on the size, location, and prominence of the billboard. 

• Digital Screens: digital screens in high-traffic areas or popular tourist spots can cost between 2.000 Euros and 15.000 Euros per month, depending on factors such as screen size, location, and duration of the campaign. 

• Public Transport Advertising: Advertising on buses, trams, or metro stations in Amsterdam can range from 500 Euros to 5.000 Euros per month, depending on the type and size of the ad, the number of vehicles or bus stations involved, and the duration of the campaign. 

A specific example of costs that can be considered for estimation is the following: 

There is also the chance to collaborate with Iamamsterdam, a common platform for tourists visiting Amsterdam. 

Collaboration opportunities: 

• IamAmsterdam website 
• City guidebook 
• Their social media 
• Out of Home Advertisement in the city center 
• See the PDF for more information:

file:///C:/Users/Ana/Downloads/5c4651b9-2ed3-49d3-8adc-55ebe1db50d0.pdf

Costs for that are:  

The pdf includes all the different advertising packages IamAmsterdam offers: 

file:///C:/Users/Ana/Downloads/79yxw2rdtxlv-bijlage-prijzen-en-formaten-2022.pdf  

Next to all of this we also need to consider the advertisement taxes from the municipality in Amsterdam²: 

5. Salaries 

5.1 Maintenance Team

The maintenance team consists of a maximum of 2 people who are responsible for conducting check-ups, whenever the station reports some kind of error. Those errors can be either when there are not enough power banks in the station or the paper for printing the QR code is missing. They also replace damaged power banks with new ones, maintaining the equal distribution of functional and charged power banks. Another task that is done regularly is cleaning the glass structure. 

The maximum salary for those is 14 euros/hrs. 

5.2. Technical Team 

For serious errors or damages to the station, there is a technical team that is responsible for maintaining the station. We are expecting to rent those from other companies and train them for our station through augmented reality. 

6. Other Expenses 

6.1 Payment Processing 

We are targeting tourists coming from all around the world. This means that we need to take into consideration the different banks and payment options of different countries. For giving the customer different payment options and also making sure that that money reaches us it is necessary to do the following steps: 

• Set up a business account 

• Find a merchant service or a company that offers payment processing services to process the money from the customers’ bank account to us 

• What is essential to consider for the budget plan 

• Transaction Fees 

• The pricing structure of the service 

Websites that were used as references: 

https://www.practicalbusinessskills.com/managing-a-business/financial-management/payment-options

https://www.shopify.com/blog/payment-processing-for-small-business

References:  

(Article about Pickpocket in Amsterdam) 

1. https://www.telegraaf.nl/nieuws/564516934/zakkenroller-terug-van-weggeweest-let-op-je-telefoon

(Advertisement taxes in Amsterdam) 

2. https://www.amsterdam.nl/en/municipal-taxes/advertising-tax/

(Company that offers outdoor advertisement)

3. https://wtm-outdoor-advertising.com/presentation/?title=amsterdam-billboard-advertising