Business Plan Guide



Name: Ntoko Franz Ajebe Munge

TEEP ID number: 16757

Business Name: The Franzys Co. Ltd

Business contacts: P.O Box 1505,

Molyko street, Buea,

South West Region, Cameroon

Tel: +237 695462272/ +237 676694434

Email: franzntk@

Brand slogan: “With Us live the excitement of online shopping”.

Table of Contents

Executive Summary 3

1. Introduction 4

2. The Product/Service: 5

3. Industry and Market Analysis: 6

4. Competition 7

5. SWOT Analysis 8

6. Operations Plan 9

7. Marketing Plan 10

8. Management 11

9. Financial Plan 12

10. Appendices 13

Executive Summary

(The Franzys)

(Franz Ntoko Ajebe Munge)

(Address: Molyko, Buea, South West, 00237)

Phone: +237676694434/ +237695462272 Fax:

Email: franzntk@ Web Address:

Business Description: The Franzys uniqueness is to make possible clients to buy online consumable grocery items for their household through a platform without moving an inch and our delivery agents make this delivery to the client’s home. The Franzys will operate two different platforms: the Online/Offline

Company Background: The Franzys head quarter is in Buea and would have showrooms all over the national territory. Its mission is to make retailing closer to the people without stress and its seek to achieve that through is web, App and Operator applications where customers can buy goods directly.

Management: F. Ntoko, Accounting, 5 years in Fin. Management and business development. Laye Mbunkur, Marketing and business development, 5 years in Telecom, W. Ngwa, Supply chain and Purchases, 4 years in procurement, L. Tobias, Logistic and freights, 2 years in service delivery, R. Awah, ACCA, Accounts and Book keeping. B. Lambert, ACA, Financial management, 1-year experience. A. Daniel, Supply chain/Stock, 2 years’ experience in stock control.

Products/Services: Strong liquidity to bring strong innovation, established a strong market share over the years, Good market expansion policy, have faced the period of new entrants into the market, Well established delivery channels for goods to customers. A good control system for tracking profitability, tracking stock and accountability for the Company. E-commerce platform where clients buy online/offline and we deliver to their door steps.

Technologies/Special Know-how: The Franzys patent right is the Franzys-App and Web plus logo. We make meaningful online and offline retails through our App, ‘we bring the showroom to our clients’ mobile phones’. Service delivery is reliable and timely.

Markets: Our industry makes groceries of all type and kind to our target market. We seek to trade in a new market that spans from workers to students. A population of 200,000 people, touching a student population of 50,000, underserved market with our idea and innovation. Revenue will come from online purchase of the product plus a margin for profit plus delivery.

Distribution Channels: through vans, bikes, Trucks, 4x4, Tricargo bikes, courier services, travel agencies, ships and planes, (i.e. website, App (E-commerce) direct sales force, VARs, channel partners, etc.

Competition: The Franzys will compete indirectly with heavy weights like Kaymu, Jumia, Sellam-quick but who are based in tech and fashion online retails. In directly we compete with Supermarkets like Kado, NIKI, Mahima, Eleni etc and small local shops with new-comers like Spar and Super U. The Franzys would have to battle it out in a market that growing fast, with an ever growing youth population making 46% of the total population 22million people with 64% being students and 36% being working class with no particular competitor having more than 15% market share.

Financial Projections (Unaudited):

2017 2018 2019 2020 2021

Revenue: 1,750 2,817 5,155 9,897 21,378

EBIT:

(Dollars in $, 000)

1. Introduction

Overview:

The Franzys is an online retail and wholesaling E-commerce platform where customers can buy their household consumable goods and other stuffs fondly called groceries and these items are delivered to them instantly by our delivery agents.

The Franzys is still in its initial stage concept-development- implementation and its activities will kick off this year 2016 in Buea.

Its market is a new entry and through the various sources it will exert itself into the Cameroonian online market.

The general capital sort stands at 50M FCFA ($100K) to kick start operations

Vision Statement:

We seek to be the No.1 mega online supermarket in the sub-region that serves its customers with reliable and timely services, quality goods, coupled with professionalism and integrity.

Mission statement:

“We provide superior services while aiding the business lives of young peasant farmers, businesspersons, Agro-companies and women groups of the community and entire Cameroon”

“To provide to our customers superior shopping services, access to online shopping, fostering opportunities for wealth and employment creation, while maximizing social and economic returns for our investors.”

Objectives:

The Franzys Co. Ltd has its objectives in the next 01 to 05 years:

1. Start trading through distribution channels in the next coming months.

2. Establish a temporal warehouse for goods while constructing a better secure warehouse structure.

3. Invest 50M FCFA ($100K) in the next 12 months into goods and equipment.

4. Open 10 showrooms in the next 2 years nationwide.

5. Create and launch the App, Web and the E-commerce site within one year after commencement of operation.

6. Target customer base of 1,000 daily sales in the next one year.

7. Increase profitability to 20M FCFA per month to the next one year.

8. Be the number one brand in Cameroon for online grocery retails.

9. Improve on logistics equipment in Tri-cargo bikes 03, Bikes 02, Van 01, Truck 01 for short and long distance deliveries.

10. Sign a two-year partnership with a courier service provider for delivery to our long distant customers.

11. Acquire 10% of the Cameroonian retail market in 05 years.

12. Grow the business to a 1-million-dollar net worth by early 2018.

The Value Proposition:

• Timeliness and reliability of delivery goods to customers.

• Workaholic and disability persons can do their shopping’s without them moving an inch due to their incapacities or ability not.

• All kinds of consumable household products will be sold online so clients don’t have to move an inch to get them elsewhere.

• Shopping needs for family consumption.

• Integrity, professionalism and Accountability to the company and to the customers.

• Timely, reliable and quality services for all who believe in the perfection of online delivery of goods.

• Service delivery to customer’s door step through an affordable delivery service structure.

• Pricing of goods way below competitor’s reach but flexible enough to give the company some gains and same quality to clients.

• Promotions and discount to loyal clients.

• Customers gain value in using credit/debit cards to buy without keeping much cash on them as well as they gain value in receiving these items at the door step thereby they will reduce their cost of transport to local supermarkets.

• Support trade fairs and festivals that promote consumers’ trends

• Through our web and App customers can use their phones to buy online and decide which way to pay. Either online through credit card and debit cards, cash payment upon delivery or through cheques for high profile customers who buy huge quantity of goods. These customers can be other small buisnesses, shops, customers that buy to resell and event planners etcs.

• With our services, we are bound to sell and touch more customers than our competitors i.e we guide our clients to go in for the best, quality, reliability and timeliness

2. The Product/Service:

The Franzys services will be online as well as offline service operators’ platforms where customers can buy their goods without stress. It will make available three forms of customers purchase platform plus showrooms where customers can buy by handpicking items.

These services are the Web, the App and Operator Call and SMS platforms. As described below:

The Web:

This going to be one of the major service centers where clients will by their products especially for those who don’t have smart phones. The web will highlight the items which the customer can buy and it will be link to an e-commerce site where payments will be effectuated. It will involve:

• The company logo plus contacts

• Items to be bought as well as different categories of goods

• It will also have a section for credit/debit card payments, cash payments as well as other payments forms like Paypal, Wazapay, mobile Money, cheques and Metropay facilities where customers would have options on what to use.

The App:

This is a mobile Application which will be launch under the Google Play system where loyal customers can download and start using it to buy their goods online using their smart phones and naturally this App will have the same characteristics as the web operator above and it will be an easy way for clients to buy from The Franzys. The App will be an android as well as IOS model for all phone types and customers.

The Operator Call/SMS:

This will be another platform where clients would buy their goods from us. The main characteristics are the customer would need to call and operator or customers service and pass on their commands on item they need and the sale and delivery service will make the transaction and deliver to the customer for payments. So the option for the customer will be either by placing a call or sending and SMS to our customer service.

The Pick N Pay showrooms:

The Franzys will provide showrooms to those other customers who cannot traditionally use our other buying platforms to be about to trade with us using the “pick n pay” method of buying in our showrooms. This service will be for all who may not trust the system of online purchasing because of trust.

The Franzys will also distribute and wholesale to other areas where social media trends and data networking are not alarming to serve other customers.

Key Marchandises for The Franzys:

Key to The Franzys products for Value Proposition are goods are consumable and consumable goods used at home. Examples of such goods that are different and perculiar to us are:

• Grocerries like Cereals e.g corn flakes, Rice, Spaghettis, Quaker oaks, corn meal, cerealacs etcs

• Liquors like strong drinks exp.whiskies, brandies, wines of all types available in the market.

• Beers like Heineken, Kronenbourg, Estrella, San Miguel, Guinness, 66, Siagon, Calsberg, Pilsners all foreign and local brands

• Beverages like Ovaltine, Malta, Maltina, Amstel malta, Peak and Nestle products etcs.

• Juice like Disfrutas, Pepsi, 5-Alive, Planets, foreign juice extras etcs all available in the market

• Cosmetics like detergents, soaps, ruubbing oil with various brands open to sell in the Cameroonian market.

• Vegetables of all types canned and washed vegetables

• Fruits like oranges, apples, mangoes, watermelon etcs

Top to this list are products that will and can be consumed at home by students, civil servant homes, nesting mothers and the general public. We are particular about the kind of customers we will be dealing with, so getting into other goods and gadgets will not make a detailed differentiation to our competitors.

Estimated figures for The Franzys Merchandise monthly: Product specs – packs and pallets of 6, 12 and 24 packs.

Cereals – 500

Liquors - 500

Beer - 4000

Beverages - 1500

Juice - 500

Cosmetics - 150

Vegetable - 250

Fruits – 100

Total monthly goods in Packs = 7500 packs

Total yearly estimated sales in packs = 90000 packs

Revenue estimate per month with avarage selling price:

Total sales in volume * average selling price per item

7500 * $15 = $112,500 per month of gross revenue.

3. Industry and Market Analysis:

The Franzys will operate in the Retail, wholesale and distribution industry in Cameroon and the central African sub-region and its principal activities will be selling groceries and other household related items to the general public and the sub-region.

Demographic:

This industry is booming now in Cameroon and the sub-region because of its rich youth population all between the ages of 18-45 which makes about 46% of the population of the country as well as sub-region. So there is bound to be a customer’s base where youths are eager to embrace the challenges of every modern day with ICTs, smart phones, Internet provisions and social media trends bring innovation to the retail industry in Africa, With a population of more than 22M people and a sub-regional population flow of 50M with 47% being youths there is bound to be potentials for good business in the sub-region. Population growth rate at 2.6% with urban population of 52.1% with growth rate at 3.23% make Cameroon an ideal venue for the retail market.

Social Trends:

Many Cameroonians are embracing ICT and internet base solutions because of its youthful population as well as Countries like Nigeria, South Africa, Kenya and Ghana leading in small start-up companies in the Tech industry. So youth embracing these kinds of innovation in doing things have greatly established a market for many retail companies coming to Cameroon such as Kaymu, Jumia, sellam-quick.

Financial trends:

With intercontinental financial giants like ECOBANK, UBA, Standard Chartered, First Banks all in Cameroon, there is reasons for E-commerce sites to work and be launched successfully. Provision of internet being cheap by Operators like MTN, Orange, Nexttel and Camtel, there is reason for growth potentials in the region because 7 out of 10 youths do possess a smart phone which they can use to buy our goods online.

Transport/Infrastructure/economy:

Cameroonian Government as well as its other neighbours are building regional infrastructural networks, such as Sea and land fibre optic cable network, intercity roads with many logistic companies operating in the region that will greatly assist our flow of goods to our customers wherever they are. The general economy has been growing above 4.5% in the last 3 years with an exceptional breakthrough of 5.7% in 2014. So we see reason for high growth in the retail industry in the next 25 years as a booming industry with great potential. With over more than 380,000 small businesses sprouting in 52 division of the Country with a bulk of them in Douala, Yaounde, Garoua, Bafoussam, Bamenda, Buea and Limbe then there is need for economic growth in Cameroon with increase in GDP (PPP) of $67.2Billion and per capita income of $2,981 coupled with a stable inflation rate of 1.9%. The Cameroon retail market holds a turnover of 100 Billion FCFA annually since 2010.

The Government Actions:

Generally the government is putting in mechanism for small and medium size companies to growth such as:

• 72 hours to register a business now in Cameroon and Cameroon winning the first place in an appraisal of 18 countries in the world some days ago in July 2016 in Nairobi, Kenya.

• Small and medium Size bank to provide start ups with funding created in 2013-2014.

• Two years tax exoneration for starting businesses

• Partnership with Cameroon leasing Company/ SGC bank, Alios Finance and the Government to provide equipments to small businesses so that they would limit themselves on too much capital expenditure.

• Funding from Government agencies like National Employment Fund, PIASSI, CIVIC Education Ministry, ACEFA, Ministry of Economy and planning etcs to help small businesses foster.

Market

The Cameroonian market has a population of 22Million people with 47% of these being youths between the ages of 18-45 years, so there is bound to be an emerging youth workforce where a bulk of them are students or working class employees under the private/public civil service. So Cameroon greatly attracts the market for the retail industry either in online fashion, TECH, grocery purchases. The Buea market where we intend to start and launch our activities has a population of 200,000 inhabitants where it counts a student population of 35% making it one of the towns with the largest student population base with Professional schools and universities taking a mass of the workforce, and small businesses that we will deal with. The tech and ICT market is growing exponentially and it will beat this year a mark up of 150 Billion FCFA because of its booming nature in Cameroon. Urban exodus brings about urban consumption trends, so there is need for more creative retailers to canvas the market for consumers.

The Franzys major customer groupings will be students, private sector workers, government civil servants, military personnel, nesting and pregnant mothers in their various capacities and it will place emphasis on the student, workers and military personnel business connection because they are more susceptible to buy online because of their exposure to online media trends and changing consumer perceptions.

This spheres of persons make more than 46% of Cameroon’s population and there figure is growth year in year out amongst other African countries. The Franzys seeks to gain a market share of 10% of the Cameroon’s retail market in the next 05 years.

The major players being traditional market place, supermarkets, shops and other online retailers in the Tech, Household equipment and fashion businesses, Major players are:-

• Jumia, Kaymu, C-discount, Sellam-quick in the tech and fashion industries.

• Big supermarkets like Fokou, Cedipral, Mahima, Kado, Niki, Njeiforbi, St. Lucia, etcs who are all in the retail of groceries and household consumable and non-consumable goods.

• Then local market places all over the country where customers bring goods to sell and buy

• Local street shops and boutiques.

The Franzys customer segment will be people of all works of life but will concentration itself to Students, nesting mothers and young working class workers who are the most in accepting, consuming social media trend products and services. Concentrating on this segment of persons will greatly strength our market share quest in the marketplace. These segments of people are the most reliable in the consumption of innovative services and will greatly use our service because of the personal constraints to time. Our products and services will be geared towards all type of people through:

• Festivals and anniversaries

• Other small distributors

• Local quarter shops

• Weddings and celebrations

• Hotels and restaurants

4. Competition

The Franzys major direct competitors are supermarkets who have developed a considerable market share over the years such as Kado, Njeiforbi, Mahima, Fokou, NIKI, St. Lucia, Imagine, across the national territory as well as local traditional market place by African design where buyers come to sell as buy other items for their household. Shops and boutiques in local street settings are also our major competitors.

While other in-direct competitors are other local as well as regional online retail players like Jumia, Kaymu, Sellam-quick, C-discounts but with all or the majority like the online tech and fashion business, household equipment and cars sales.

Competitor’s competitive advantages:

• Strong liquidity to bring strong innovation.

• Established a strong market share over the years

• Good market expansion policy

• Have faced the period of new entrants into the market

• Well established delivery channels for goods to customers

• A good control mechanistic system for tracking profitability, tracking stock, accountability for their companies

• They have built a brand name over the years.

• We will also distribute and wholesale into the rural communities where other customers will need our goods not limiting ourselves to online retails

Competitor’s competitive disadvantages:

• Do not embrace innovation where customers can buy online.

• Are not creative in their approach to customers

• Focus on selling all type of items to the public.

• Have not refined their own value propositions for what kind of customer segment to deal with.

• No established brand name in the Cameroonian retail market.

Customers segment:

Their product and services entail handpicking of showroom items by their customers and in most cases if the customer buys in bulk they go and delivery to their customers homes, while others sell phones, dresses, shoes, TV set, radios, and cars online where customers enter the platform and buys.

Competitor focus product:

Most of the direct competitors focus on consumable household purchase customers who they wait for to come and by in their showrooms but naturally they sell all types of goods like groceries, non-grocery items, tech gadget as well as fashion but most of our in-direct competitors have specialized in tech and fashion sales. They believe in selling all to buying all type of business, but we see reasons to concentrate on the items that youth ones and needs. Things like liquor, beverages, whiskies, household cooking commodities, cleaning detergents, cosmetics etcs. Our competitors concentrate more on electronics, phones gadgets, fashion and clothing, luxuries like watches and jewelleries.

Entry the market will not be easy for The Franzys but we hope to achieve that through our online –e-commerce platform where we make shopping easy for our customers. The general probability of new entrants is 25%.

Potential new competitors in the market are KONGA Nigeria, Tesco in the South African states; other traditional players start embracing innovative and creative ways for selling their goods would definitely fight the Cameroonian retail market with a new entrant like The Franzys. Entry is never easy but creating a difference with our online approach will give us a better path provided also we do an efficient and effective marketing and Pub campaign.

Switching to competitors may just take no time if they decide to embrace online retailing but by then we would have established ourselves in the market place because Cameroon has a big market for all players with no one having more than 20% market share. So there is no major barrier because of their time in the market but it might take some time for them to design a working prototype to enter into online retails and wholesales. The cost and barriers are slim for our competitors to switch to the online platforms but we are in a big market for all.

Customer’s loyalty:

This will be achieved through:

• Building a strong brand name where all other players will see us as a threat.

• More flexible and concise marketing and publicity campaigns to the public

• Advertise over media, radio and billboards

• Launch timely youth promotional and discount campaigns when they buy online

• Make sure our delivery is timely and reliable

• Good s are of major quality

• E-commerce site, web and App are flexible, effective, and efficient to use (user-friendliness online purchase platform).

• Customer suggestions and worries are taken into consideration and responsive solutions meted.

• Various premium platforms where celebrities, the rich can buy premium expensive items like wines, whisky and some other valuable consumable items.

• We send promotional updates to loyal customers to inform them on new items, new services, and discounted items and just a normal public holiday or festive period greetings (National day, X-mass and New Year greetings).

5. SWOT Analysis

|Strength |Weaknesses |

|-Superior online/offline buying platform such as Web, App and |-We will lack detailed market experience for the first 2 years |

|operator customer services. |of operation. |

|-More effective and efficient means of selling to the public |-Low markets share as a new entrant. |

|without stress to customer’s movements. |-Dependence on huge capital thereby limiting our ability to |

|-Quality goods and timely delivery to our customers. |satisfy customers needs. |

|-Out source long distant delivery to our logistic and courier |-Might detect too rapid expansion which may pose serious |

|partners. |problems in order to canvas for potential customers. |

|- We retail and wholesale to our clients |-Problems faced with market entrance. |

|-We rely on particular goods of ostentation, goods that are |- Lack of ability to manage external cost heads because of too |

|rapidly bought in the market. |much reliance on external logistic source services. |

|-Qualified staff and a competitive salary. |-Lack of capital to purchase more delivery equipments. |

|-High motivation to staff as well as issuance of shares to our |-Lack of mastery on the general delivery routes of Buea and |

|staff. |Cameroon in general. |

|-Innovative online payment services to customers without too |-May not meet at all times with customers specs and time of |

|much reliance on cash. |delivery |

|-Customers stay at home and make purchases. |-Weak brand as a new entrant so we spend more on advertisement |

|-Check up on customer’s satisfaction and appraise their |in order to reach our customers. |

|perception to our services for control measures. | |

|-Start small so we capitalise in serving our customers needs | |

|with integrity, professionalism. | |

|- A strong brand story and market analysis to gain market | |

|share. | |

|-Target specific segment of clients such as students, military | |

|personnel, working-class and public civil servants. | |

|-Flexible and time-saving delivery | |

|- we will be investing over $100K in our first funding round | |

|then $1000k in the second round to boost working capital and | |

|sales. | |

| | |

| | |

|Opportunities |Threats |

|-Growth in population. |-Sustained price competition would erode margins |

|-Rely on increase needs of a student population. |-Potential war could impact on spending for example marketing |

|-Growing retail market sector |expenditure. |

|-Differentiated prices on rival products, services and goods |Competitors may have much experience on market research and |

|-Benefits on new customer’s entry into the retail market in |product development. |

|Cameroon. |-Volatile Cameroon retail sector market with too many |

|-Customers dissatisfaction on existing competitors. |bootlenecks and government regulations. |

|-No competitor holds more than 15% of the market share. |-Many competitors may switch to online purchase services and |

|-Government incentives to new entrants and tax exoneration. |home delivery if they see how profitable it is. |

|-Social media exposures, trends and platform to advertise to |-Rising price and inflation will greatly disturb our operation |

|customers our services. |at one point in time. |

|-Increase in urban population movements | |

|-Many youths embracing social media trends like facebook and | |

|instagram where we can advertise our services to them. | |

|- A more dynamic transport system in Cameroon will aid us | |

|profusely. | |

| | |

| | |

Our strengths will allow us to exploit the opportunities in the market: our quality services, low prices. Technological advancements experienced staff which we will train, harness and establish would be better placed to that of rivals. We will take advantage of our online buying platform, the dissatisfaction existing amongst customers trekking everyday to hand pick items from shops, which we will use to our advantage to help us attract other new customer in the market. Our low cost base and quality goods, timely delivery, will allow us to sustain on price activity and greatly increasing our ability to meet swift customer demand on our services thereby reaching massive customers satisfaction.

We will militate against weaknesses and threats: through our low cost base we will partner with other organizations and with their know-how and our quality staffs, we will be able to contract necessary outsourced activities to contracting agencies. We will also be less vulnerable to price competition because of lower cost involved in our products and services. We will outsource long distance delivery to courier partners; bring in IT consultants to strength our platform. Buy our good for resale from manufacturers, wholesalers, importers and wholesale distributors in order to get a meaning profit margin when we retail.

Our business model will be:

● Customer Intimacy, where we will collect information on a daily basis about what our customers want! What they are asking the most? What other items as supplements they might buy and how to generally service them every day.

● Operation Efficiency, where our online item will be sufficiently cheap to meet competitor’s daily price but will get the best quality to always bring back our customers. Customers want affordable price and quality, so The Franzys will do just that.

● Product Leadership, our online E-commerce service p[altform will be very user-friendly that at all times customers can get what they want, can fill in the necessary steps to buy without hitches and that the right goods bought is delivered to them.

● The Marketplace, will be our strongest stand point where all levels of customers can buy their goods, where premium items will have its clients as well as any other customers who wants to be with all categories highlighted and items showcased by our up to date system.

6. Operations Plan

• The Franzys will need to construct an App, Website, Call operator customer service platform linked to an E-commerce site to be able to operate with its customers after its must have registered its business venture in the Cameroon trade market registry. Its registration process has already been validated and soon the Website will be up running.

• To meet up with its day-today-day service to its clients, The Franzys need to source an office as well as warehouse with which it will purchase goods from distributors, preserve and will resell to customers through retailing and wholesaling platform.

• Raw materials will be bought as well as through our partnerships; companies will give us their products, goods for us to sell directly to our customers. Through the various platforms, customers will buy their goods and through our warehousing management, these goods would be issued to our delivery and sale agents on bikes, vans, trucks and or to courier service providers to our clients’ homes. The Franzys will need to procure Fixed and movable assets like Warehouse, Vans, bikes, Trucks, Office space and other intangible asset like web, App- E-commerce platforms and software to carry out its operation.

• Long distant deliveries will be contracted to Courier services like the Solex, Postal services and TNT while bulky goods or items will be delivered through Travel agencies to our clients.

• The Franzys will also seek to procure its delivery equipments through Government leasing platform like Cameroon leasing Company, SGC Bank etc. As per partnerships, we are still to go in for some through a Memorandum of Understanding as well as sign agreements and contracts relating to our service deliveries, goods on credits, marketing camapaigns, Advert and billboard campaigns and also web and e-commerce management. Our suppliers will definite by food production and distribution companies, non-consumable goods companies, farmers and third party distributors.

• Buying will be done through credit/debit cards through our e-commerce payment platform and also through cash through our daily sale agents, cashiers, and cheques. The Franzys will partner with Automatic Monetic service providers for automated Point of Sale machine commonly called I-CARD where customers can slot their credit cards and pay for their items direct through the Pick n Pay system or daily sales agents or at the cash desk without actually using cash.

• Cash payments, cheques for large quantity purchases will be accepted as well as for wholesale sales to small and medium size businesses but not individuals.

7. Marketing Plan

• Our marketing will be done by us through a campaign where we will recruit marketers for during the period to make out information to potential customers on our products and services. Words-of-the-mouth has been an excellent and cheap way of communicating to the community so we will be using more of that.

• Through TV ads, radio Ads, interviews, posters, flyers and banners we will also market our services to the population

• We will use social media services like Facebook, Instagram, Google ads, WhatsApp groupings, LinkedIn to make visible what we are doing to the community and the world at large. This department will be managed by a marketing and communication team to definitely educate and make aware our goods and services to new customers as well as promotions, discount campaigns to existing customers for particular goods or items and also for particular buying platform i.e. web or App or Operator call & SMS customer service lines.

• Through trade fairs, cultural events, music festivals we will also make marketing campaigns.

• Our services will be priced based on Market base pricing i.e. the amount of the goods in the marketing plus a small margin for delivery charge plus any mark up for profit. So The Franys will make sure that its goods are sold based on the public price for its competitors plus a margin for overheads.

• Our purchases from be from main producers or distributors or manufacturers, so that we buy our goods from major wholesale price then cost these goods to reflex the selling retail price. This is so as to make provisions when need arises for discounts and promotion to our customers. It may negatively have influence on our cash flow but then we will allocate discount in such a way that we can breakeven and as well as for some particular items not the general goods and services we sell to clients.

• For any business to survive it need to make profit, so for every transaction we will need to make profit while serving the customers with quality.

• Most retail online businesses do have a flexible cash flow because customers do pay for items on cash but to be able to make wholesale to other customers, will warrant that we enter into agreements that warrants our clients to pay us after a given period that will be agreed into by before parties. This will be a legally binding agreement so that conflict of interest as well as breach of contract is avoided by both parties.

• Goods and items will be channelled to clients through our sales and delivery department through bikes, Tri-cargo bikes, Vans, trucks and other delivery means like courier services, transport travel agencies to long distant customers and depending on the weight of the items bought.

• Generally The Franzys will have an online market platform where customers will buy their goods through a web and an App and also through departmental showrooms, supermarket, wholesale/distribution as well as sales agents and third party distributors all across the nation with our goods and services.

8. Management

The Franzys will require a lot of skill labour to be able to run its operations:-

• Chief Executive Officer – General supervision and manages board of directors of the company

• Chief Managing Director – General management of staff and day to day running of operations of the company

• Assistant Managing Director – Treasury management, cash flows, general liquidity and solvency as well as other credit levels of the company

• Chief accounting Officer – Prepares financial reports, book keeping, payment of company bills and reports to CMD and CEO on financial matter of the company (Payroll,

• Chief Operations Officer – Operations and IT, manages overall operations of the company, updates web and App for new items. Manages customers service and operator call platform for commands and coming orders

• Sales and Marketing Manager – Manages sales and marketing to clients, marketing team and campaigns, develop new markets, customer’s satisfaction campaigns, brand stories, consumer perception and as well as TV and radio Ads

• Chief Stocks Manager – manages stock, warehouse movements, manages reorder levels & replenishing of goods and items etc.

• Human resource manager – Manages skill gaps, motivation, staff promotions, bonuses, leave and claims, litigations

• Logistics and Supply Chain Manager – In charge of logistics, procurements, purchases of warehouse goods and stocks. Facilitates supply of goods.

• IT operator Manager – in charge of System operation and update, repairs and maintenance.

• Store Managers – in charge of managing showrooms, store outlets, junior operational staff, hand picking supermarkets

• Cash tellers – collects and receive cash in the showrooms

• Drivers – conveys items and goods to outside outlets.

• Marketing agents – in charge of marketing campaigns, publicities, promotions and events.

• Sales and delivery agents – make delivery to customers and sell to other external clients.

The Franzys will need staffing in the following qualifications:

• Accounting and Finance (ACCA, CPA, CIMA)

• Marketing and management preferably CIMS qualifications

• Financial management and business Administration

• Stock control, Logistics and supply chains

• IT and web design management

• Human resource management and Law

• Drivers

Staffing experience for top managers will be for 02 years and above in the retail industry while for other junior staff will be at least 06 months in any field of worker provided they can prove work experience.

But presently The Franzys already have skilled staffing in the following persons: -

1. CEO/Founder, Ntoko Franz Ajebe Munge, degree in Accounting, ACCA part 2, TEEP training on Entrepreneurship with 07 years’ experience in Accounting and finance, Micro finance and banking experience, small business development and start ups.

- He is in charge of day to day running of the business, supervises management staff, makes liaison and signs partnership treaty with other business. Manages cash flow and liquidity.

2. CMD, Laye Mbunkur, Degree in management, qualification in CIMS, and 05 years’ experience in Telecom industry, small business and consultancy, Marketing and sales.

- He is in charge of all operations of the Company. Manages employees, chairs management meetings, see to it that operations are running. Outline procedures for great profit achievements. See to it that all start-up reports are met and validated. He is designing by laws, work regulations and operational manual.

3. LSCM, Walters Ngwa, Degree in Food processing and supply chain management, 05 Experience in procurement, purchasing, logistics.

- He manages for now local partnerships for future purchases. Create liaison with distributors and wholesalers for future agreements. He is designing the flow of operations when we kick start later this year.

4. CAO, Awara Benjamin, ACCA short courses, 04 years in Accounting and book keeping, Experience in accounts in Brewery industry.

- In charge of local treasury for now until we gain full financial funding. Keeps books and update us on how and where we could get funding for our business

5. CSM, Awah Rachel, ACCA part 3, 01-year experience in accounting, stock, book keeping.

- Assist in book keeping and other start up financial reporting. Prepare management reports as well as activity reports before pre funding.

The Franzys Organizational Structure

[pic]

| |

9. Financial Plan

Financing of The Franzys Activities:

Our activities will be financed by 06 major ways;

• Personal savings

• Venture capital from the TEF program

• Debt financing from NEF

• Credit from suppliers

• Bank loans

• Private equity

With the major financing need being the first 03 funding types above. The Franzys intend to start its Activities with a first funding seed round of $60,000 to finance the start up process in equipments and working capital.

This is outline as follows:-

1. Personal savings = $3,000

2. TEF program = $5,000

3. N.E.F grants = $32,000

4. Credit suppliers = $10,000

5. CGA Co. PME grants = $10,000

Total = $60,000

This money will be use exactly to finance the start-up process through:

• Rents of showroom and warehouse = $2,500

• 02 Tri-cargo bike (3-wheels) = $3,200

• Office equipments = $2000

• Office Furniture = $1,500

• P.O.S software system = $800

• Others = $1,000

Working capital purchase of goods = $45,000

Bank = $4,000

Total = $60,000

But throughout the year many other dispensations’ will be made for more warehouse space, delivery vans and bikes, showroom space, the E-commerce platform and more office equipments and furniture.

Our debts will be paid monthly after every major monthly sales to our creditors while for the debt financing grant programme of National Employment Fund grants, we will pay yearly with an interest rate of 6% over three years.

Revenue Projections

The Franzys products range will be Liquor of all types, beers, wine, whiskies, beverages, cosmetics, Cooking ingredients, vegetables, tubers, detergents, biscuits, cereals etcs

Our products will be priced through Market-based pricing

Year 1: sales volume = 90000

Year 2” sales volume = 150000

Year 3: Sales volume = 210000

Year 1: Revenue = $1,750,000

Year 2: Revenue =$2,817,000

Year 3: Revenue =$5,155,000

Milestones and Key Performance Indicator

Key Milestones for the next 02 years>

Quarter

Products

Solution

Clients

Patent and Others

Coverage area

Sales Stats

1st

Start purchase with $30,000 monthly

Wholesale distribution channels

Shops, business persons, event planners

No patents yet. 15 staff

Buea, Limbe, Tiko, Kumba

1000 sales a week

2nd

Increase purchase to $60,000 monthly

Use WDC and 01 showroom

Target shops, Business persons and E.P

No patents. Acquire delivery equipment like bikes and trucks. 15 staff maintained

Same as above

2000 sales per week

3rd

Purchase increased $150,000 monthly

Increase WDC to other areas then open other 02 showrooms

Start prototype of E-commerce and target students, working-class personnel

Establish the App, Web and the Operator platform. Patents right. Staff increased to 35.

Same as above. Showrooms in Kumba, Limbe and Buea

Maintain sales

4th

Increase purchase to $300,000 monthly

Open 03 showrooms in three other towns

Prepare to launch the E-commerce site. Make sales through WBC, Retails hand pick and E-C platform

Sign partnership for long distance delivery. Brand rights for the Franzys.. staff increased to 40.

Buea, Kumba,

Limbe,

Bamenda,

Bafoussam,

Kribi areas.

At least 2500 items to be sold daily in all channel

5th

Increase quarterly purchase by $450,000 monthly

Open supermarkets in Douala and Yaounde

National launch for the E-commerce platform

Same as above. Staff strength increased to 60.

Same as above plus Douala and Yaounde

Increase sales to 10000 items per month

6th

maintain purchases on a monthly $450,000

Maintain the 06 showrooms and 02 supermarkets

Brand clients to online, wholesale, offline KPIs

Invest in Logistic equipment to meet up with more long distant delivery

Same as above

12500 items per month

7th

Increase purchase by 500,000 monthly

Open one mega market in Douala and maintain the showrooms

Same as above and also increase e-commerce site traffic

More logistic delivery equipment and office equipment for more effective operation. Staff increased to 150 employees full time.

Mega shop in Douala and preparing ground work for Mega shops in Limbe, Buea and Yaounde

Monthly sales maintain at 12500 items

8th

Maintain monthly purchase at $500,000 monthly

Distribute to other internal areas like the North and East of Cameroon

Students, Nesting mothers, civil and private servant workers, business persons, event planners and small shops.

The Franzys patent right. Establish a market place for new services. Increase employee strength to 200 full time

Same as above

Increase sales to 15,000 items per month

Sales Key Performance Indicators:

• Hourly, daily, weekly, monthly, quarterly, and annual sales

• Average order size of 1000 orders daily

• Average margin of

• Increase and expand shopping cart rate

• New customer orders versus returning customer sales

• Cost of goods sold

• Total available market relative to a retailer's share of market

• Product affinity for similar goods bought.

• Product relationship (which products are viewed consecutively)

• Inventory levels and top up policies for reorder levels

• Competitive pricing through market-base pricing

Marketing Key Performance Indicators: 

• Site traffic increased to 20% in the second year

• Unique visitors versus returning visitors comparism analysis

• Time on site for any purchase is minimised by 10 mins

• Page views per visit at most 3-4 pages

• Traffic source

• Day part monitoring (when site visitors come)

• Newsletter subscribers

• Texting subscribers

• Facebook, Twitter, or Pinterest followers or fans to our services

• Pay-per-click traffic volume

• Blog traffic

• Number and quality of product reviews by clients

• Brand or display advertising click-through rates

• Affiliate performance rates

Customer Service Key Performance Indicators:

• Customer service email count

• Customer service phone call count

• Customer service chat count

• Average resolution time for our site

• Concern classification of items on the site

Once we have set our goals and selected KPIs, monitoring those indicators shall become our everyday exercise. And most importantly: Performance would inform business decisions, and we would use KPIs to drive our actions.

10. Appendices

Abbreviations:

NEF.......................... National Employment Fund

TEF.......................... Tony Elumelu Foundation

WDC.................... Wholesale Distribution channels

EP............................ Event planners

CGA Co PME........................ Cooperative Generale Agree Co Petite et Moyen Entreprise

TEEP........................... Tony Elumelu Entrepreneurship program

UBA...................... United bank for Africa

MetroCredit...................... Metropolitan Credit and Finance Ltd

Sales, Operation expense and gross profit analysis of The Franzys for 03 Years.

In US Dollars. | | | | |

| | | | |[pic] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Templates by | | | | | | | | | | | | | | | | | | | | | |© 2009 Vertex42 LLC | | | | | | | | | | | | | | | | | | | | | |Terms of Use | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |140+ Excel Tips | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

-----------------------

© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.

© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.

© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.

© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.

© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.

Management:

CEO

MD

AMD Finance/Treasury

AMD Sale/Mktg

COO

CAO

CLO

CSA

Others 12

Industry: i.e. Online Retail, App

Number of Employees: 20

Bank: UBA, CreaInvest, MetroCredit, BICEC, SGC.

Future Auditor: AEG Partners

Law Firm(s): Poubom Law Firm

Amount of Financing Sought: 50M FCFA equity ($100K)

Current Investors:

Any Venture Capitalists, Personal Funds

Use of Funds: i.e. Product development, marketing/sales, distribution, Warehousing, App and E-commerce platform, W.C.

Partners: Solex courier, Musango Bus services, AgroShop, Agribio+

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download