Académique Documents
Professionnel Documents
Culture Documents
Contents
1. Executive Summary and review of past year .................................................................................. 3 1.1. 1.2. 1.3. 1.4. 1.5. 2. Company / Business Description ............................................................................................ 3 Objectives ............................................................................................................................... 3 Mission Statement ................................................................................................................... 4 Keys to Success....................................................................................................................... 4 Financial Highlights ................................................................................................................ 4
Analysis of the business environment. ............................................................................................ 5 2.1. 2.2. Company Ownership .............................................................................................................. 5 Company Locations and Facilities .......................................................................................... 6
3.
4.
Market Analysis Summary.............................................................................................................. 6 4.1. 4.2. 4.3. Target Market Segment Strategy ............................................................................................ 6 The Market: Growth and Opportunities .................................................................................. 6 Market Segmentation .............................................................................................................. 7
5.
Marketing Strategy.......................................................................................................................... 7 5.1. 5.2. 5.3. 5.4. Pricing Strategy ....................................................................................................................... 8 Promotion Strategy ................................................................................................................. 8 Marketing Programs ................................................................................................................ 8 Competitive Edge.................................................................................................................... 8
6. 7.
8.
Financial Plan................................................................................................................................ 10 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 8.7. Funding Requirements .......................................................................................................... 10 Important Assumptions ......................................................................................................... 11 Break-even Analysis ............................................................................................................. 11 Projected Profit and Loss ...................................................................................................... 11 Projected Cash Flow ............................................................................................................. 13 Projected Balance Sheet ........................................................................................................ 13 Business Ratios ..................................................................................................................... 14
9.
References ..................................................................................................................................... 15
Not just a reseller, NOUPATEL is a facility based telecommunications company that offers a high quality network through direct access, maintenance, and innovation of its infrastructure. It owns network equipment based on the needs of the customer and uses the latest technologies. Its versatility allows it to provide its customers with customized, cost effective, and reliable integrated solutions to meet their individual needs. NOUPATEL is a proactive and technologically oriented company that has the expertise and four years of successful operating experience to perform its operations efficiently and effectively by concentrating on its core activities while deploying the latest in IT and telecommunications technology. NOUPATEL has been gradually increasing its market share and level of operations, diversifying its services, and taking advantage of the changing telecom environment and the tremendous growth opportunities available in the regions it serves. Attracted by the huge potential of the telecom industry and based on its own business vision, NOUPATEL has developed a practical and realistic growth strategy by gradually expanding its services and spreading its wings into other regions of Cameroon.
1.2. Objectives
Implement an internet cafe and a VoIP sales point in the West and North West of Cameroon by September 1, 2004. Implement an extensive marketing campaign to introduce the new internet cafe and sales point. Achieve $0.5 million in sales revenues in West and North West part of Cameroon in 2013, $2 million in 2014, $5 million in 2015, $9 million in 2016 and $14 million in 2017.
Revenues Gross Profit Net Income Total Assets Liabilities Equity Total Liabilities & Equity
The following table provides the financial projections highlights of NOUPATEL for the next five years, which include the proposed VoIP sales point and Internet cafe implementation project for West and North West part of Cameroon. Revenues are projected to reach $98.2 million by 2008, a 13.3-fold increase from actual revenues in 2011. Gross profit is projected to reach $59.2 million by 2008, a 52-fold increase from actual gross profit in 2011. Net income is projected to reach $44.7 million by 2008.
Projected Financial Highlights: 2012 2016 2012 $12,140,332 $3,304,722 $628,026 $12,811,895 $10,709,993 $2,101,903 $12,811,895 2013 $31,447,598 $17,384,287 $6,699,614 $31,879,741 $23,078,224 $8,801,517 $31,879,741 2014 $48,896,638 $30,001,613 $17,388,874 $44,221,737 $18,031,347 $26,190,391 $44,221,737 2015 $71,724,957 $44,245,182 $30,867,625 $69,514,048 $12,456,032 $57,058,016 $69,514,048 2016 $98,191,436 $59,200,768 $44,705,976 $102,117,352 $353,360 $101,763,992 $102,117,352
Revenues Gross Profit Net Income Total Assets Liabilities Equity Total Liabilities & Equity
100000000 90000000 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 2012 2013 2014 2015 2016 Revenue Gross Profit Net Income
3. Services
NOUPATELs innovative product and service offerings provide the following advantages to customers. Implementation of VoIP services to different customers A full range of sleek, modern handsets to choose from. Internet cafe. Data capability. A full range of features. A big coverage network.
3.2. Technology
NOUPATEL's business tools may be considered to be those assets that keep the business running smoothly. These tools include computers, software, business forms, standard agreements, various internal process standards, and other company-specific documentation.
There will be 288 million users of Voice-over-Internet Protocol (VoIP) by 2013, according to market research firm In-Stat. Worldwide total subscribers have increased from 30 million in 2007 to 122 million in 2011. VoIP services would turn into a $40 billion a year market by 2015 according to a new report from research firm Point Topic The number of African VoIP subscribers (mainly from companies) has increased from 14 million in 2011 to 149 million in 2011, representing an 87.25 fold increase over nine years and is continuing to increase due to its cheapest rate.
5. Marketing Strategy
NOUPATEL developed its sales and marketing strategy by analyzing its own internal strengths and then analyzing current market conditions. This process helped NOUPATEL create its marketing and sales strategy to leverage its competitive advantages with a unique marketing strategy, thus establishing it as the nation's leading VoIP communications service provider for businesses and consumers. The company will create momentum through critical mass and brand recognition. NOUPATEL will monitor the effectiveness of its marketing efforts in order to determine the advertising return on investment and the commerce generated from the various channels. The overall marketing plan for NOUPATEL's service is based on the following fundamentals: 7 The segment of the market(s) planned to reach. Distribution channels planned to be used to reach market segments: retail outlets, sales representatives, and telemarketing. Share of the market expected to capture over a fixed period of time. Our year 2013 marketing goals include the following: Capture 100% market share of businesses in the West and North West market areas. Capture 100% market share of consumers in the West and North West market areas.
Capture 5% market share of consumers in Douala and Yaound market areas. Educate businesses and consumers about services provided. Position the company as the number one provider of solutions to VoIP communications. Make a major branding effort emphasizing NOUPATEL's name and array of services. Initiate new marketing program with a budget of $240,000. Create new collateral marketing materials (brochures, radio ads, and video). Media placements including magazine, TV, radio, Internet, print, and banner advertising. Expand product and service offerings. Provide sales reps with free demo systems.
Our future is highly dependent upon measuring resources we need in order to execute our plans and be competitive. Our method includes qualitative and/or quantitative measurements of competition and by estimating our own company growth, sales, and cash flows. Our resources are also measured in terms of people, equipment, financial, and critique to see if the resources fit are adequate for the situation. Resources are available as needed to meet the technology curve. In general our strengths include business management, accounting and finance, knowledge of the VoIP services industry, and experience in running successful businesses in the past.
6. Sales Forecast
The following table and chart illustrates the projected sales forecast of NOUPATEL in the West and the North West of Cameroon. Table: Sales Forecast
Sales Forecast Sales Personal User Sales Business User Sales Total Sales Direct Cost of Sales Personal User Sales Business User Sales Subtotal Direct Cost of Sales 2013 $1,734,283 $419,800 $2,154,083 2013 $728,399 $188,910 $917,309 2014 $4,800,000 $960,000 $5,760,000 2014 $2,030,400 $406,080 $2,436,480 2015 $8,000,000 $1,920,000 $9,920,000 2015 $3,400,000 $812,160 $4,212,160
7. Management Team
Cellular Providers has a world class management team with direct knowledge of the industry, extensive research experience, and unique administrative skills. Its team includes Brice FOPA, president; Cyrille FONKOU, vice president; and Thomas Pafe, an expert in Radio communications.
Together, they have a combined total of over 5 years experience in the VoIP and telecommunications industries and will coordinate the expansion of the company.
8. Financial Plan
The following sections outline the financial plan for NOUPATEL in the areas of its expansion.
10
Legal & Consulting $5,000 Fees Closing Costs $3,000 Total Expansion Costs $500,000
$0 $0 $144,000
$8,000
$0
$0 $0 $1,383,000 $297,000
11
Revenues are derived from sales of VoIP and internet services, products, and accessories to businesses and consumers. Annual Growth: We expect growth to increase by 200% per year on the basis that the company will be stepping up marketing and sales efforts, as well as initiating new partnerships and alliances that will foster growth and extensions of our existing markets. These strategies are aimed to build momentum and critical mass within the company and its overall sales results. Cost of Goods: Cellular Providers expects that its products will bear a reasonably high mark-up, which translates to a relatively low cost of goods. Our cost of goods includes consideration cost of products, shipping charges (which may be passed along to the consumer), and sales commissions. Marketing/Promotion: We group advertising, promotions, and retail outlet marketing under this category. Retail Outlets: We estimate that each retail location will cost $30,000 to set up and we anticipate opening up 10 new stores. Other: We estimate that we may need additional funds for other promotions and this is set aside in a special fund. Rent: It is assumed that rent will be an average $1,500 per month per store. Repairs and Maintenance: This is an estimated figure which is expected to grow with the setup of service centres. Salary: Figures are estimated based on the national average for similar positions. They assume however, the hiring of a store manager, a regional manager, a CFO, an HR manager, and acquiring the services of a marketing company. Utilities: Figures are estimated. Management estimates that utilities will be at $800 per month per store. Table: Profit and Loss
Pro Forma Profit and Loss Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Store Set Up Costs Repairs and Maintenance Utilities Insurance Rent Payroll Taxes Legal/Consultants Inventory Control systems 2013 $2,154,083 $917,309 $0 $917,309 $1,236,774 57.42% $391,658 $473,712 $4,992 $90,000 $6,000 $22,400 $21,600 $42,000 $58,749 $6,000 $20,000 2014 $5,760,000 $2,436,480 $0 $2,436,480 $3,323,520 57.70% $951,500 $917,200 $5,000 $60,000 $6,000 $57,600 $50,000 $78,000 $142,725 $6,000 $0 2015 $9,920,000 $4,212,160 $0 $4,212,160 $5,707,840 57.54% $1,310,500 $1,476,200 $5,000 $90,000 $6,000 $76,800 $66,000 $134,000 $196,575 $6,000 $0
12
Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
14
Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout
100.00% 57.42% 58.41% 10.00% 4.63% 1.65 1.26 350.92% 5.14% -12.90% 2000 -3.09% 0.00% 4.89 61 10.91 8.72 27 4.18 0.00 0.16 $186,084 0.60 0.24 55% 0.83 0.00 0.00
100.00% 57.70% 45.60% 10.00% 18.22% 2.35 1.58 168.88% -137.64% 94.80% 2001 11.02% 0.00% 4.89 51 11.85 12.17 24 6.02 0.00 0.24 $526,009 7.37 0.17 41% 0.74 0.00 0.00
100.00% 57.54% 40.45% 10.00% 23.60% 3.68 2.82 59.21% 246.29% 100.46% 2002 15.82% 172.40% 4.89 59 10.34 12.17 24 4.45 1.45 0.45 $1,600,146 23.61 0.22 27% 1.86 10.90 0.00
100.00% 57.80% 35.50% 1.00% 1.90% 1.17 0.95 69.90% 4.20% 14.00% n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a
9. References
Nel, W.P. (ed.), 2nd ed., 2006. Management for engineers, technologists and scientists. Cape Town: Juta. Graham Friend, Stefam Z. , 2nd ed ,Guide To Business Planning (Economist) www.bplans.com/
15