In common with many social networks, Neighbourhood will require significant upfront cash to develop our mobile responsive web application, setup client relationships and market to our first users. However, after our initial launch, where we incentivise founding clients to join us, we will start earning affiliate revenue from all of our clients. This will enable us to break even, and to then begin making healthy and rapidly growing profits: a pattern that is common to technology startup businesses, as shown on the graph below:
Source: Amy Shuen ‘Web 2.0 Startup Kit’ (presentation) via Dr Athanassios Tiropanis
To develop the Neighbourhood application, and proceed with our launch plan, we require an investment of £204,400. This will support a successful launch, following which we will break even during year two, and start making a profit before our third year after launch.
