1. “A 21st century pen pal system.”
Deena Abubaker
17 years old
Senior, Monroe High School

2. Problem Foreign language is often required in high school
Only about 7% of people become fluent in a foreign language they learn in school
Most people believe that the best way to learn a language is to travel to other countries… but 70% of these people do not have the time or money to travel

3. Solution/Benefits
NetPal brings the travel abroad experience to the mobile phone.
provides a chat platform for people to practice new languages
chat with native speakers
affordable and easy to use

4. Mission & Social Impact
Mission Statement: NetPal’s goal is to unite people in a global network to practice and enhance foreign language skills by modernizing the pen pal system to appeal to a new generation.
Social Impact: NetPal also allows people to write to their pen pals electronically, which saves a lot of paper.

5. Description of Service
Customers search for the NetPal app in the Apple or Android app store
Members choose to download the NetPal app
Customers pay a one-time fee of $2.99 to add NetPal to their smartphone
Members gain access to all the features of NetPal

6. Business Model Definition of One Unit
1 download of the NetPal app from the Android or Apple app store.
Description of Expenses
Variable Material Expenses
Total: $0.00*
N/A $0
*15% commission per download
Fixed Expenses
Total: $1,333.00
Insurance
$50.00
Salaries
$1,000.00
Interest
$100.00
Depreciation
$33.00
Utilities
$150.00
Economics of One Unit
Selling Price
$2.99
Cost of materials
$0.00
Cost of labor
App Store Commission
$0.45
Total COSS
Contribution Margin
$2.54
Monthly Break Even Units
$1,333.00 =
524.80 ≈
units
$2.54

7. Description of Target Consumer
Market Analysis
Market Statistics
Industry Name:
Mobile-App Software Publisher
Annual Industry Sales:
$ 25 billion
Description of Target Consumer
Demographics
Geographics
High school students
New York City
Attend school that requires foreign language
Psychographics
Buying Patterns
Plans on attending college
Outgoing personality
Interested in the language they are learning
Does not have additional money for travel
Total population of targeted geographic area
Population of target market
329,007
Market size
(based on
survey)
Target Market Size
35,000
32,200

8. Marketing & Sales
1. Personal sales: Word of mouth through foreign language teachers
2. Social Media: Facebook, Twitter, and Tumblr
3. Mobile Advertisements: Mobile advertisements to drive traffic to app stores
4. Google Play Store: tutorial videos/images with features and benefits

9. Our Competitive Advantages
Competition
NetPal
ePenPal
PenPalWorld
Factor 1:
Price
One time download fee
Free
Freemium (offers paid VIP packages)
Factor 2:
Security
Secure login for members
Requires profile picture and personal information
Gives members own inbox to avoid spam
Factor 3:
Language Practice
Strengthens language skills
Meeting new people in English only
Cannot filter by language
Our Competitive Advantages
1. Help users practice a foreign language while meeting new people.
2. Creates a network that is safe for students to use.
3. Allows people to filter pals based on the language they wish to practice.

10. Qualifications I took an entrepreneurship course at my high school.
I speak three languages fluently.
I plan on taking coding and computer science classes in college.

11. Sales Projections Net Profit Total Units Gross Revenue $2,595.90 7,500
$22,425

12. ROI: Return on Investment
Start-Up Funds
Item
Why Needed
Cost
App Development
Fee to outsource app development
$10,250
Laptop
Computer to maintain app
$350
LLC Filing
File for business structure
$250
Total Startup Expenditures
$10,850
Emergency Fund
$5,425
Reserve for Fixed Expenses
$3,339
Total Startup Investment
$19,614
ROI: Return on Investment
$2,595.90 =
13.2% ≈
$0.13
$19,614
ROS: Return on Sales
$2,595.90 =
11.6% ≈
$0.12
$22,425

13. Future Plans Plans for Growth: Plans for Philanthropy:
Target more classes locally
Eventually include college students and adults
Expand to different schools in different countries
Plans for Philanthropy:
NetPal will award free app downloads for schools in under-resourced communities

14. “A 21st century pen pal system.”