Determine Financial Planning In Start Up Company: A Case Study of Hi! Drops

Abstract

According to the McKinsey report, the Internet of Things or IoT is predicted to become the most disruptive technology. The new form of IoT known as Internet of Living Things or IoLT. It helps humans to understand more of the other living things and know the right treatment for them. One of IoLT products is a smart flower pot. A lot of companies are interested in using IoT into their product system. 

Through this study, researchers chose Hi!Drops as the company to be analyzed based on its problems. Hi!Drops create a smart flower pot that helps people to be possible having indoor gardening with any type of plants. The product also supports people to minimize efforts, reducing cost, and saving more time. However, the company faces a difficulty to keep the company sustain. 

A limited fund becomes the company's problem, furthermore it also needs a longer time in the research and development process. The purpose of this study is to determine the most product price fit to Hi!Drops and creates the most appropriate financial scenario in order to help the company manage their fund. Researchers design the scenarios through financial planning by making the cash flow projection, NPV, IRR, and payback period. Hi!Drops can use the planning as their business strategy for the next 5 years. 

Researchers use a qualitative method in collecting the datas. The source of data is primary and secondary data. Hi!Drops Financial Statement in 2019 will be the primary data along with an interview. The interview aims to understand the consumer preferences from Hi!Drops target market, notably price recommendation and purchasing power. In addition, the research also uses  supporting datas from BPS reports and analyzes it through literature review and synthesis. Through the secondary data, researchers are also able to find the right market size for Hi!Drops.