BUSINESS PLAN

VIRGOTECH
“Strengthening ties through technology ”
 CONTENTS

Executive Summary………………………………………………..3

Company Description……………………………………………..4

Industry Analysis………………………………………………….6

Services Overview……………………………………………….7

Marketing Plan………………………………………………….8

Management and Ownership………………………………….12

Operating Costs……………………………………………….12

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 1) EXECUTIVE SUMMARY

1.1) Company overview:

Virgotech is a start-up based in Yaoundé, Cameroun. It provides IT and computer based

services which are good in quality, research and innovation oriented and customer centred.
Virgotech is also engaged in research in Computing fields like Artificial Intelligence, Internet of
things(IoT), Framework development. Use of IT and computing in agriculture, health, nutrition,
education, energy, marketing and finance.

1.2) Mission and Vision:

Vision: To create awareness about the use of IT and computing services and its benefits.
Mission: To provide and integrate valuable solutions to the world through computing and IT.

1.3) Industry Analysis

The IT sector generated gross revenue of CFAF426billion in 2010, a growth of 7.7% over 2009
(ARCEP, 2010). This makes IT one of the most dynamic branches of the tertiary sector in
Cameroon. The industry is driven primarily by the strong mobile subsector. According to the
African Development Bank (AfDB), the agricultural sector is no longer the backbone of the
country’s economy. Agriculture’s contribution to GDP has tumbled (standing at 21.3% in 2008)
while the tertiary sector (the services sector) has become the largest contributor to national income
(46.2% in 2008) (AfDB, 2009). This fact stresses out the importance of companies like Virgotech
to provide quality IT services in the country and come up with sustainable development projects
in the fields of science and Technology which are related to Information Technology(IT).

1.4) Services Offered

Virgotech will provide the following IT related services;

Ø Data Analytics and SEO
Ø Software Development and Upgrades
Ø Web Development
Ø Networking
Ø PC Building
Ø Cloud Storage and Solutions
Ø Data Recovery and backup
Ø Hardware Maintenance and Repairs
Ø IT Training

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 2) COMPANY DESCRIPTION

1.5) Company overview:

Virgotech is a start-up based in Yaoundé, Cameroun. It provides IT and computer based

services which are good in quality, research and innovation oriented and customer centred. The
services provided by Virgotech are as follows;
Ø Web applications development and SEO.
Ø Software development and Enterprise management systems.
Ø Mobile applications development.
Ø Graphics Design and Game development.
Ø Data Analytics and Business Intelligence
Ø PC Building
Ø Computer networking and Repairs
Ø Data Recovery
Ø Training Services
Virgotech is also engaged in research in Computing fields like Artificial Intelligence, Internet of
things(IoT), Framework development. Use of IT and computing in agriculture, health, nutrition,
education, energy, marketing and finance

1.6) Mission and Vision:

Vision: To create awareness about the use of IT and computing services and its benefits.
Mission: To provide and integrate valuable solutions to the world through computing and IT.

1.7) Strengths and Core competencies:

Ø High quality services which are customer centered.
Ø Experienced personnel with real world experience in the software development market
Ø Predictive analytics which provides insights and the basis for better decision making.
Ø Research is at the fore front of our main activities so as to keep up with the rapidly
growing technological trends and equally create innovative solutions to underlying
challenges in IT and computing and its related fields.

1.8) Challenges:
Virgotech will face a challenging situation in creating its brand image and attracting
customers towards their services due to presence of already established players in the local
market such as:
CREOLINK COMMUNICATIONS, GLOBEXCAM, YAMELATECH, VTC
Cameroon(Visionary Technologies Company), SACONETS and many others.

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 3) INDUSTRY ANALYSIS

As business leaders, you work hard to ensure that your company has all the resources and
materials it needs to achieve operational and strategic goals. However, you may be missing the
one crucial resource that isn’t just vital to your company’s day-to-day operations; it’s also critical
to your company’s growth.
Information technology, or IT, provides a solid foundation for businesses to conduct daily
operations, enhance your company’s communications, increase workplace productivity, and
provide a layer of security for confidential data. In short, information technology can give your
business the boost it needs to compete at a higher level within your industry, no matter what your
size or the number of employees you have.
Fortunately, you don’t need to implement a full-time IT department in your business to enjoy the
benefits of information technology. A high-quality IT outsourcing company can provide you with
the services your business needs to meet its objectives. Apart from advice on your IT needs, an IT
outsourcing company can estimate, manage, implement, deploy, and administer IT systems on
your company’s behalf. This range of services can include the following;- Web applications
development, Cooperate cybersecurity, Software development, Network Installation and Office
Setup, Onsite and Offsite Maintenance and Support, Employee Training and software and
hardware updates.

Over the years the IT sector in Cameroon has known some drawbacks as well certain remarkable
improvements. The IT sector generated gross revenue of CFAF426billion in 2010, a growth of
7.7% over 2009 (ARCEP, 2010). This makes IT one of the most dynamic branches of the tertiary
sector in Cameroon. The industry is driven primarily by the strong mobile subsector. According
to the African Development Bank (AfDB), the agricultural sector is no longer the backbone of the
country’s economy. Agriculture’s contribution to GDP has tumbled (standing at 21.3% in 2008)
while the tertiary sector (the services sector) has become the largest contributor to national income
(46.2% in 2008) (AfDB, 2009). This fact stresses out the importance of companies like Virgotech
to provide quality IT services in the country and come up with sustainable development projects
in the fields of science and Technology which are related to Information Technology(IT).

New information technologies (IT), in particular high-speed internet, are changing the way
companies do business, transforming public service delivery and democratizing innovation. This
has improved the working and living conditions of both customers and employees of the banking,
educational, commercial and health sectors.

With all these improvements the country still has a major problem in the IT sector. This is because
there is shortage of services offered in quality, quantity and affordable prices. Most of the services
listed above are too costly due to the cost of resources used to run these services. One of
Virgotech’s objectives would be to address this problem, propose and integrate solutions to solve
these problems by developing suitable technologies.

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 4) SERVICES OVERVIEW

Virgotech will provide the following IT related services;

Ø Data Analytics and SEO
Ø Software Development and Upgrades
Ø Web Development
Ø Networking
Ø PC Building
Ø Cloud Storage and Solutions
Ø Data Recovery and backup
Ø Hardware Maintenance and Repairs
Ø IT Training

4.1) Benefits and Features

Ø Research and innovation oriented, in other to provide quality and valuable solutions to
existing challenges in the field of computing with relation to sectors like finance, energy,
education, health, e-commerce and agriculture.
Ø Provides a variety of services which are essential for the running of many businesses,
organizations and companies today.

4.2) Why People Need these Services

In order for Cameroon to become an emerging country, it will require the application of
science and technology to get solutions for the many economic, social and environmental
challenges. Solutions and breakthroughs to most of these challenges can be found through
various computational techniques. IT services such as data analytics and machine learning,
can provide insights from complex and large data sets which will be the basis for better
decision making, advanced automated systems such as fraud detection software and many
others.

The IT industry grows day by day consequently, the release of new and robust technologies
which require experts in the field to implement these new solutions through various software
and hardware upgrades thereby being in pace with changes in technology.

Information technology, or IT, provides a solid foundation for businesses to conduct daily
operations, enhance your company’s communications, increase workplace productivity, and
provide a layer of security for confidential data. In short, information technology can give
your business the boost it needs to compete at a higher level within your industry, no matter
what your size or the number of employees you have.

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 5) MARKETING PLAN

5.1) Market Description.

The IT market in Cameroon is strongly dominated by the Mobile telephony companies. As

earlier said, according to the African Development Bank (AfDB), the agricultural sector is no
longer the backbone of the country’s economy. Agriculture’s contribution to GDP has tumbled
(standing at 21.3% in 2008) while the tertiary sector (the services sector) has become the largest
contributor to national income (46.2% in 2008) (AfDB, 2009). This makes the tertiary sector
become the largest contributor to national income in the country. The table below shows the use
of certain IT services in the country from 2008 to 2012.

Year Computer Internet

2012 8.6% 1.3%

2008 4.1% 1.2%

“Courtesy RIA surveys”

5.2) Some Startups in Cameroon

Kiro'o Games aka Kiro'o Studios founded in 2003 by a Cameroonian, Madiba Olivier is making
huge gains financially and also gaining popularity. As of April 10, 2015, Kiro'o Games
announces the closing of its investment funds of 182,504 euros and is projected into the future of
becoming an actual company. Kiro'o Games is privately held video game, animation,
development and publishing company based in Cameroon and headquartered in Yaounde,
Cameroon. Kiro'o Tales is currently working on finalizing the finishing touches on the upcoming
Action-RPG Aurion Legacy of Kori-Odan. As of March 7 the game has successfully been
Greenlit by Steam software to distribute the game.

Cameroonian born Arthur Zang invented the patented touchscreen Cardio Pad. He has invented
what is believed to be Africa’s first medical tablet, which will allow health-care workers in rural
areas to send the results of cardiac tests to heart specialists via a mobile-phone connection.

Also, "GiftedMom" created by Alain Nteff uses mobile phones to remind pregnant women when
to come for antenatal care and alert mothers on vaccination schedules for their infants. It is
believed to help reduce maternal and child deaths in Cameroon.

Academia, locally developed software from Cameroon’s lone tech hub ActivSpaces in its first
year of launch with a low budget strikingly garnered over 25 secondary schools within a month

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of release and have proven to be effective. Despite its difficulty to configure, the software was
found very easy to use that even computer-shy teachers were able to get on board and were soon
hands free.

Acad_design The team reports to be already working on another release which will fix the issues
of the first release. Cameroon will need to continue to motivate its SME’s especially those in the
tech scene, to continue to motivate them so that they can be the drivers of such ICT solutions in
its various sectors as their role is central to an emerging economy.

5.3) Commercial Strategy

Ø Virgotech will provide it’s services in four folds, these will be through contracts, monthly
subscriptions, orders and product purchase.
Ø Virgotech’s services will be designed to target the following audience presented in the
table below;

Audience TARGET MARKET SERVICE PROVIDED

Individuals Individuals of both sex from Ø Computer hardware maintenance
the ages of 16 and above. Ø Computer repairs
Ø Data recovery
Ø Home/office networking services
Ø Electronic repairs
Ø Web development
Ø PC building and Gaming services

Organization Schools, Hospitals, Ø Data analytics services

Government agencies, NGOs, Ø Networking services
non profit organizations, etc. Ø Data recovery services
Ø Web development
Ø SEO
Ø Software development
Ø Hardware maintenance
Ø Computer repairs
Ø Electronics repairs
Ø etc
Companies Large business cooperatives, Ø Data analytics services
Large supermarkets, …etc Ø Networking services
Ø Data recovery services
Ø Web development
Ø SEO
Ø Software development
Ø Hardware maintenance
Ø Computer repairs
Ø Electronics repairs
Ø E-commerce
etc

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 Small businesses Little shops, Ø Data analytics services
Ø Networking services
Ø Data recovery services
Ø Web development
Ø SEO
Ø Software development
Ø Hardware maintenance
Ø Computer repairs
Ø Electronics repairs
etc

Ø Pricing Strategy

SERVICE PRICING STRATEGY PRICE

Data Analytics Ø For customers with small scale
businesses or small organizations
data analytics will be done using
simple analytical tools like Power
Bi and MS excel and a platform
setup where results can be
communicated to them in real time
and excel templates downloaded
saved in their database.
Ø For larger businesses and
Organizations, Advanced tools,
like Power Bi, Python, R, NoSQL,
will be used. A private content
management system will be set for
such organizations and analytical
results communicated in real time
to the company or organization in
question.
Ø Depending on the kind of activity
exercised by larger businesses and
organizations, special software
will be put in place in order to
enhance workflow and
productivity.
Web Development Depending on the nature of the website or
Services and SEO web application pricing will be done at
equal rates with every class of persons.
Hosting charges excluded.
Ø Excel analytics shall be
done at a constant rate of
150,000 FCFA monthly(
Cost for being registered
on platform will be 5000
FCFA yearly)
Ø For larger businesses and
organizations, data
analytics shall be done at
a rate of 300,000FCFA
monthly.
Ø Rate for Individual
Content management
system 500,000FCFA
and maintenance services
will be rated at
25000FCFA monthly
Ø For simple static
websites price is fixed at
60000FCFA excluding
maintenance fare.
Ø For websites with photo,
audio and video galleries

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 It should be noted that all websites will be (multimedia sites) price
responsive(accessible on any device) and is fixed at 150000FCFA
built with up to date technology. Ø Dynamic websites with
user accounts will be
charged at 100000FCFA.
Data Recovery Data recovery will be charged based on Ø For formatted and
the nature of the storage device and undamaged SD cards and
amount of data to be recovered. USB sticks the fixed rate
is 5000FCFA/GB
Ø Data recovery on
Undamaged HDD is
fixed at
20000FCFA/40GB
Ø For All Damaged
Devices price is fixed at
15000/10GB for HDD
and 8000FCFA/GB
Networking Services Pricing will be done after a thorough
study of the infrastructure to be networked
has been carried out.
Computer Hardware Diagnostics will be free of charge. Price
Repairs will be fixed after diagnostics have been
done.
Software dev’t and Price will be fixed after discussion with
mobile app dev’t clients.

Communication and advertisements of our activities to individuals and the general public, will be
done by setting up Facebook pages for the startup and run an advertisement which will go
through every Facebook profile and page, brochures will be made and distributed to maximum
number of people and businesses, the brochures will be mainly to sensitize the general public on
the advantages they will enjoy if they subscribe to our services.

In order to attract more attention, free training workshops will be organized for the general
public in order to train individuals on the use of basic IT tools such as word processors, proper
use of smartphones, use of basic computer applications and basic maintenance tools.

We will also offer some services that are currently unique, such as our visit services,
where one of our trained staff will perform routine (weekly/monthly) visits to our clients
providing them with necessary awareness and basic skills to solve low level problems and
equally save both us and our clients the time to deal with technical problems without stress or
pressure.

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 6) MANAGEMENT AND OWNERSHIP

VIRGOTECH will be owned by its founder and co-founders. It would have a management
board comprised of the following posts:
Ø A CEO
Ø Vice CEO
Ø Secretary
Ø Marketing and management director
Ø An Accountant
Ø 1 Technical Directors
Ø Specialized Staff comprising;- 2 software developers, 2 data analysts, 2 web developers
and 3 Network professionals.
Ø Advisory Board comprising of start-up patron: Mr. Ojong Francis.
This gives our team a total head count of 16 employees at start up and one Adviser.

Location Of Virgotech

Virgotech will be located in a calm neighbourhood with little or no noise from the surroundings.

OPERATING COSTS

Ø Start-up Expenses

Investments Cost (CFAF)

Location rents for two years 1 500 000

Equipments
3 core i7 Desktop PCs 1 500 000
RAM=8-16Go
Processor=Intel core i7 ,3.4GHz,
3 core i5 Desktop PCs 750 000
Dell Optiplex 990 SFF Desktop Core i5-
2500 3.3GHz 8GB 750GB

15 Core i3 Desktop PCs 2 500 000

Dell Optiplex 990 SFF Desktop Core i5-
2500 3.3GHz 8GB 750GB

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 Employee Salaries 3 000 000
Founder and Co-Founders -----------

Communication and Adverts 1 000 000

Furniture 1 000 000

TOTAL START UP CAPITAL 11 250 000

THREE YEARS ACTIVITY FORECAST and EXPENDITURES

Activity Forecast

ACTIVITY Year 1 Year 2 Year 3

Web Development 20 000 000 CFAF 30 000 000 CFAF 50 000 000 CFAF
and SEO

Software 30 000 000 CFAF 50 000 000 CFAF 70 000 000 CFAF
Development

Networking and 20 000 000 CFAF 40 000 000CFAF 80 000 000 CFAF
Cloud Services

Data Analytics 30 000 000 CFAF 60 000 000 CFAF 100 000 000CFAF

Hardware 10 000 000 CFAF 15 000 000 CFAF 30 000 000 CFAF
Maintenance and
Repairs

Data recovery 5 000 000 CFAF 9 000 000 CFAF 25 000 000 CFAF

TOTAL 115 000 000 CFAF 344 000 000 CFAF 355 000 000 CFAF

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 Expenditures

Expenditure Year 1 Year 2 Year 3

Research 10 000 000 CFAF 15 000 000 CFAF 20 000 000 CFAF

Internet 720 000 CFAF 1 500 000 CFAF 3 000 000 CFAF

Transport 2 000 000 CFAF 4 000 000CFAF 8 000 000 CFAF

Salaries 3 000 000 CFAF 6 000 000 CFAF 10 000 000CFAF

rents 500 000 CFAF 1 500 000 CFAF 3 000 000 CFAF

Seminars and 500 000 CFAF 1 000 000 CFAF 2 000 000 CFAF
Workshops

TOTAL 16 720 000 CFAF 29 000 000 CFAF 45 000 000 CFAF

Net Profit 98 280 000 CFAF 315 000 CFAF 310 000 000 CFAF

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