Substantiate the Valuation of MadHungry

Our company, MadHungry, is asking the sharks $10,000 for 10% stake in our company, because we plan on making $150,000 during the first fiscal year. In order to start our business, we need $4,700. This amount does not include the necessary programming for our company website. Our company will open in November of 2014 and by March of 2015 we will be able to pay off all of our expenses. Between our marketing and social media, we have diligently created plans to notify our customers about our latest updates.Therefore, we decided that 10% equity is fair for the sharks to invest $10,000 in our company. According to our business plan, they are 300,000 deliveries in the United States everyday. Clearly, there is a market for our business.Our company provides its services to East Greenwich, North Kingstown, and Warwick, which leaves us with no competitors in our area. Our company will grow easily without any major problems to deal with. From having no competitors to growth of the food industry, with our hard work and dedication from MadHungry’s staff our business will continue to expand and improve. The food market will never slow down since it is a daily requirement to survive. This is just one of the many reasons why we value our company at this price.  

Social Media for MadHungry

We realize that social media is a major part of publicizing our company. Although social media is a commonly used strategy, most companies do not use it the correct way. In a survey conducted by HBR, seventy-nine percent of the companies are using or plan on integrating social media to leverage their company. Forty- three percent of the users voted that they use social media ineffectively. Some companies lack communication with their audience. They do not give the audience the most recent information of their company actions, and the audience is rarely informed about the companies progress. In addition, they do not monitor the comments from the audience, which makes no connection with the company. Some companies also lack digital communication. To ensure that we are successful in our advertising approach, we have gathered ideas that will help our social media attract customers.

Although not every company has the correct strategies that make their social media effective, there are some businesses that benefit from social media. Companies like Ben & Jerry’s had contests on twitter to see who could come up with the newest ice cream flavor by using #MyBenandJerrys. This not only drew attention to the company but also allowed the Ben & Jerry’s followers to get involved and feel important to the company. Through the use of hashtags in contests we can utilize this strategy when adding and expanding our restaurant diversity.  Another company by the name of Bonobos used contest but in a different way. This company used the “Flock to Unlock” method. This means followers were told to spread the word by retweeting one of the company’s tweets. Once there was a certain amount of retweets, a discount code was released. This will draw attention to MadHungry’s twitter and lead to more customers utilizing the service.

Our company came up  with some strategies to help maximize the efficiency of our social media accounts. Another strategy that we have come up with is partnering with a restaurant. We also plan on partnering with restaurants to increase our accounts trafficking. By partnering with a restaurant, they will advertise our company in their location and on their social media,  which would drive even more attention to our company. Our company is still in the early development stages but with the correct use of social media we can become a well-known and influential  company.

Executive Summary

Executive Summary

MadHungry’s mission is to provide diverse options in food delivery, while satisfying every customer with quick service and reasonable prices. MadHungry was founded by Nicole Grady and Brooke Fennell in a high school entrepreneurship class at East Greenwich High School on Friday, March 7, 2014. Along with Nicole and Brooke, Andrew Robins is the CMO, in charge of all marketing affairs and expenses. Daniel Ng is the CFO, in charge of all of the financial information. Nicole and Brooke are the Co-CEO’s, and oversee everything that goes on as well as make executive decisions for the company. MadHungry is a service which provides varying options of food for customers that may not have the ability or time to get the food. The customer has the option to either call, visit our online website, or download the MadHungry app to order the food they desire. Our professional, bonded, and efficient staff will delivery the food as quickly as possible. MadHungry will provide their services to East Greenwich, North Kingstown, and Warwick. Our future plans are to expand through Rhode Island and eventually New England. Through our research, we discovered that a total of 300,000 deliveries occur everyday in the United States. Given this information, we are sure that there is success in this industry for MadHungry.