Business plan

1. Title 2. Executive summary

3. Contents of the plan a. b. c. d. e. f. g. h. i. j. k. l. m. Objectives Company mission keys to success Product plan Market scope Market segmentation Service business analysis Competition and buying patterns Strategy and implementation summary Management summary Personnel plan Financial plan Break-even

4. Appendix iiiStart-up requirement Referencing

2. Executive summary Introduction Electro-tech solution (ETS) will provide electrical services based on telecommunication existing devices to improve security and make things easy. The services that will intend to provide are so narrow in terms of the deployment and cost in the market. ETS will enter into this limited geographical area where it can leverage its staffs' existing collective reputation into long-term contracts centered on excellent service and cost effectiveness. We believe that we can service this limited market better than larger firms and we have better service packages at a more reasonable cost than existing competitors of equal size.

The company ETS will be a limited liability partnership registered in the state of tax purposes. Its founder is Mr. Gauthier. The company will have a limited number of private investors and will not plan to go public. The company will have its main offices in Pretoria, South Africa. The facilities include GSM module for gates, alarms and automation for watering. We will plan to have a conference rooms for presenting our products to customers, laboratories for testing purpose and office spaces. The company expects to begin offering its services as soon as the start-up requirements are finalized. The company's main clients will be major companies and everyone else who desires to have a good security at home as well as the control of gates. By focusing on institutions such as these that have special needs, we believe we will be able to better serve our clients and produce a superior service that is more effective that other electrical-engineering firms. The Services ETS offers comprehensive electrical-engineering services to our diverse clients. Our services fall into two main categories of electrical engineering services and alarms monitoring/laboratory testing. Some of these services include sms gate control, alarms, watering GPS system for cars, and load testing. Each project is customized to our client and its scope, length, depth, reach, and cost are unique. The Market There are plenty of opportunities within this market especially since recent local and federal
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regulations have required many of our potential customers to carryout automation studies and monitoring involving the GSM and GPS systems. The control systems engineering industry has been growing at a very fast rate for the past twenty years. According to the Journal of technologies, the industry has averaged approximately 30% per year over the past five years with the new technologies as LTE and the high speed data transfer. The company will link with others company as suppliers and contractors companies. Financial Considerations Start-up assets required are equipments, personnel, the budge and etc This includes computers in expenses and the rest in cash needed to support operations until revenues reach an acceptable level. Most of the company's liabilities will come from outside private investors and management investment; however, we have obtained Start-up Funding in current borrowing from Bank, the principal to be paid off in two years. A long-term loan will be paid off in ten years. The company expects to reach profitability in year one and does not anticipate any serious cash flow problems. We conservatively believe that during the first three years, average profitability per month per segment will be about R10,000. We expect that about three projects per month will guarantee a break-even point.

3. Contents of the plan a. Objectives

The two year goals for Electro-Tech Solution (ETS) are the following: Achieve break-even by year. Establish long-term contracts with at least five clients. Establish a minimum of a 95% customer satisfaction rate to establish long-term relationships with our clients and create word-of-mouth marketing. b. Company mission It is the mission of ETS to provide innovative approaches to control engineering services and to build effective long-term relations with our clients with excellent services delivered in a timely and cost-effective manner. c. keys to success

ETSs keys to long-term survival and profitability are as follows: Create long-term contracts that demand constant monitoring or on-call services. Keeping close contact with clients and establishing a well functioning long-term relationship with them to generate repeat business and obtain a top-notch reputation. Establish a comprehensive service experience for our clients that include consultation, field and laboratory work, in-house design, analysis, and follow up monitoring of hazards.
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d- Products plan. The company will design some powerful gadgets for security, remote control for variety of devices, GPS tracker, watering systems based on the weather and it will provide to customers maintenance and monitoring services. Our product plan is more based in our abilities to design and the needs in the society. We hope this will be a growing field as the technologies are keeping improving as day going. e- Market scope ETS will be concentrating on four main types of market segments. These include major bank companies, local governments, other companies, and water and utility companies. This is because these types of organizations have the greatest needs and/or the best capitalized of all our potential clients. The control system industry has been growing at a very fast rate for the past ten years. According to the digital system by Grimm, the industry has averaged approximately 30% growth per year over the past five years. An analysis of the market using the five forces of profitability indicates that the greatest threat at the moment is in new entrants to the market who will want to capitalize on this high growth. Currently rivalry among different geotechnical companies is relatively moderate as much of the potential rivalry is absorbed by this high growth rate. Many of the competitors are able to improve profitability simply by keeping up with industry expansion. Our most serious competitors are Consultants companies. These companies affect us most because of their higher capitalization or geographical proximity. Companies usually enter into contracts with technical companies based on their reputation of professionalism and quality of services rendered in the past. This reputation is difficult to obtain by new firms unless its personnel bring it with them from previous companies, as we are. Price and scope are also important reasons for accepting contracts, especially if the company is small. f- Market segmentation There are various land-use companies and organizations within the state of electrical services that ETS will be concentrating on. These include: Major shop companies. Local and state governments. Electronic & construction companies. Other. We are concentrating on these specific market segments for a variety of reasons. The construction industry now requires, by law, certain certifications of safe practices including retaining wall and foundation load bearing capacities, slope stabilities, and geo-instrumentation installation.

Local and state governments often require services such as checking in morning and knockoff time by employees. Real estate companies are in need of high security and systems of emergencies. Finally utility companies require a wide variety of services that also include alarm and water analysis, seismicity studies, aerial photo interpretation that could be done automatically using a camera designed for this specific need. All these companies further require ongoing services that will provide ETS with long-term profitability. The market analysis table and graph which follows shows the number of each type of organizations. This will be our expected geographical focus. It must be noted however, that some of the segments, although they are quite small in the number of potential clients, have very high profitability levels.

g- Service Business Analysis Electrical field has been growing at a very fast rate for the past ten years. Much of this growth has been due to increased of the need of people to have high speed data, protection of private properties and research in the field of natural sciences and spatial. The automation consulting business consists of several smaller consulting organizations and individual consultants for every one of the few well-known companies. These companies range from major international name-brand firms to tens of thousands of individuals. ETS believes that the greatest threat at the moment is in new entrants to market who will want to capitalize on this high growth industry. The most likely entrants will be new, small consulting companies with fewer than ten employees. However, the one major disadvantage to new entrants is that all firms engaged in contracting to engineering firms face significant switching costs when bringing on a consulting partner. Furthermore, ETS understands that in this industry there is a significant learning curve that creates declining "unit" costs as a firm gains more cumulative experience in the field itself and with long-term clients specifically.

Rivalry among different technical companies is relatively moderate as much of the potential rivalry is absorbed by the high growth rate. Many of the competitors are able to improve profitability simply by keeping up with industry growth. The power of potential clients is very great in this industry because most clients are very concentrated in our geographical area. Furthermore, because of the high cost of our services, clients tend to "shop around" for the best package of services and cost. Finally, some of our market segments, such as governments have "profitability" restraints that cause them to pressure auto-technical companies for superior terms. h- Competition and Buying Patterns Competition Competition includes all potential technical companies in our geographical operating area. The engineering industry is highly fragmented, with a large number of small companies that mainly cater to small firms and a few large companies that seek the largest contracts. Our most serious competitors are electrical Consultants that offer the same services. JIIMAH is an established company that has been in operation for the past four years, with a fine track record of quality work. It currently employees two consultants and has long-term contracts with the city of Durban and the Gauteng. This company is analogous to ETS in size, capabilities, services, and estimated profits. REGRO technology is one of the largest and best known South Africa technical firms is expected to expand into a nationwide company within the next five years. It has hundreds of staff consultants and very deep pockets that can be used to counter any sort of competitive move. Buying Patterns and Needs Companies usually enter into contracts with technical companies based on their reputation of professionalism and quality of services rendered in the past. This reputation is difficult to obtain by new firms unless; its personnel bring it with them from previous companies, as we are. Price and scope are also important reasons for accepting contracts, especially if the company is small. I- Strategy and Implementation Summary

Electro-Tech Solutions business strategy is to enter into a limited geographical area where it can leverage its staff's existing collective reputation into long-term contracts centered on employee service and cost effectiveness. We believe that we can service this limited market better than larger firms and we have better service packages at a more reasonable cost than existing competitors of equal size.

Marketing Strategy

In order to attract clients, ETS will begin to contact promising organizations and offer free consultations, and an initial contract at reduced prices. These promotions will allow us to begin to make our reputation. In addition, some of our staffs will be traveling to six conventions across the country during the first year of operations where we will have booths to advertise our services. Finally we will be setting up cold calls to potential clients and have half- and fullpage advertisements in various publications that address our clients needs. Sales Strategy ETS's management will be focusing on leveraging its extensive contacts in its various market segments to generate contracts. ETS will associate with some varsity to recruit his staff and for the sales; we will contact companies such that we can proposed and present our services. Universities are one of our mayor targets as new technologies and designs can be conceptually designed and implemented there and some companies could hear and awareness our move. j- Management Summary The company will have four officers including our president, Mr. Gauthier. Our head of operations will be Mr. David, plus we will have two initial technical consultants. Finances and general admin will be handled by Ms. Masilelo The company plans to hire additional consultants, design support and administrative personnel as we begin to get large numbers of contracts. k- Personnel plan ETS's management brings to the company strong capabilities in creative flair, research, and a unique combination of skills drawn from other businesses. Key Personnel Mr. Gauthier is a graduate of the Tshwane University of Technology where he obtained his electrical engineering diploma in 2012 and he worked for a well-known telecommunication company for the past 3 years. Since then, Mr. Gauthier has had extensive experience in site specific municipal, commercial and residential electrical projects. This includes experience in budgeting, project oversight, resolving engineering issues, etc. In 2011 he obtained an award of recognition of knowing the technologies he dealing with. Mr. David graduated University of Pretoria with a bachelors degree in control system in 2011. From 2011-2012 Mr. John worked for The BMW as a senior sale manager. Mid 2012 he went to work for Jiimah Consulting in their technical division where he worked on P.O issue and customer acceptance report as well as the contracts , tunnel and shaft rehabilitation, and designing procedures for laboratory testing.

l- Financial Plan Our financial plan anticipates one year of negative profits as we gain sales volume. We will budget enough investment to cover these losses and have an additional credit line available if sales do not match predictions. Important Assumptions We are assuming approximately 75% sales on credit and average interest rates of 10%. These are considered to be conservative in case our predictions are erroneous.

Break-even Analysis Our Break-even Analysis is based on the assumptions that our gross margin is 100%. In other words, we will have insignificant direct cost of sales. Since each project will be of different scope, length, and complexity, it is difficult to assign and average per unit revenue figure. However, it is conservatively believed that during the first two years, average profitability per month per segment will be about R10,000. This is because we will be dealing with smaller companies at first that have smaller projects. We expect that about three projects per month will guarantee a break-even point.

5. Appendix The start-up is based in the different assets need to start our business. The below picture show our taking point.

Start-up Requirements
Start-up Expenses Legal Insurance Utilities Rent Accounting and bookkeeping fees Expensed equipment Advertising Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements R104700 R10000 R125000 R239700 R239700 R3000 R5000 R5000 R20000 R700 R60000 R3000 R8000 R104700

Ratio Analysis
Year 1 Sales Growth Percent of Total Assets 0.00% Year 2 15.50%

Other Current Assets

6.91%

5.97%

Total Current Assets Long-term Assets Total Assets

97.12% 2.88% 100.00%

121.90% -21.90% 100.00%

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First Edition: January 2008 Reprint: December 2009 Published by: Directorate of Studies The Institute of Cost and Works Accountants of India 12, Sudder Street, Kolkata - 700 016
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