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Gurus ltd Business Plan.pdf

VIEWS: 28 PAGES: 15

									                               2010

    Gurus ltd    .




Gura your mobile market
 Business Plan




                          David KWIZERA
                          Olivier KAMALI
                             Claude RUTI
                                       I. Mission statement

    Gura is a mobile application which allows you to sell or buy products (electronics, cars, houses,
    clothes& shoes, food, etc.) at anytime from anywhere by SMS using your mobile phone.

          Buyers can request and get reply on products/items specifications (price, location, contact
           info, etc.) they need to buy via SMS. They then contact the seller after receiving an SMS
           with seller information

          Individual sellers and companies (shops, supermarkets, etc) will be able to post
           specifications of their products/items by sending a simple SMS or by filling in a form on our
           website.

          Buyers receive free weekly updates on available products and companies can advertise
           through the application, via bulk SMS (buyers are not charged) and website branding.

                                          II. Motivation

 It is hard to find things you want to buy in Kigali




   Individuals seeking to buy any item have to go out searching for it without any specific information
    regarding its price, location and specification.

   People looking for selling any new or used item hire unprofessional brokers who charge them a lot
    of money

 Advertising products is time consuming and expensive

   Small & middle-sized companies find it difficult to get clients and their products known

   High advertisement cost (on radio stations, RTV, billboards, newspapers, etc.) makes it hard for
    small businesses/shops to market their products and grow financially.
   Our application collects useful data on which products/items are mostly requested locally (useful
    for governmental institutions, local and regional investors)

 According to NISR (National Institute of Statistics in Rwanda), 2 of the 10 millions of the Rwandan
  population, which is at 45% young (working class), are mobile subscribers: most of them are
  familiar with sending and receiving SMS.

                                     III. Business Objectives

 Business and life made easier
  Gura will improve doing business in Kigali, as anyone seeking to buy any product will leave his/her
  home having exact information on where to find it and at which price or even book it in advance.
  Selling any item will also be at one click away for any broker or dealer. Life is made easier, and less
  time is spoiled going from shop to shop, bargaining or running after clients.

 Customer satisfaction
  Be a buyer, a seller or a company owner, you are able to find accurate information on a product of
  your choice and make your product known to your customers, at small or no cost, through Gura.
  Sellers are able to check how often their products have been checked and are contacted directly on
  their mobile phones when someone is interested in purchasing their products. This reduces
  overhead on the buyer, and saves a lot of advertising money to companies, at the same time linking
  buyers and sellers via a secure and reliable portal.

 Data gathering
  Gura collects useful data on which products/items are mostly requested locally (useful for
  governmental institutions, local and regional investors).

 Income generation
  Gura will be a source of incomes for our young company , but also make local shops, supermarkets,
  other different companies make money faster as their visibility and awareness of their products to
  the public will be increase. In other words, Gura is almost 50% cheaper than any other type of
  advertisement and promotion available on Rwanda market.
Use of 2 portals: a mobile phone and a website. Subscribers (individual buyers and sellers) and listed
         businesses subscribe either by SMS on their mobile phone or through our website:

   Buyers subscribe to our application for free via SMS (by sending a password and specifying whether
    he/she is a buyer, seller or a company and get a notification) or the website, where they can give
    more detailed information.

   Sellers and companies subscribe through the website by uploading 2 pictures (one showing their
    location and the other showing their different products) and 1 text page detailing their products,
    prices, location and contacts. They can also subscribe by SMS, as an optional feature.
    Sellers will only be able to list products priced at 20,000RWF and up in order to ensure high-value
    transactions using our application.

 Identify and categories subscribers based on their queries (frequent requests) and arrange them by
            groups (which will facilitate customized bulk SMS and avoid annoying subscribers).
                                         IV. Market Analysis

    Target Customer

Target Buyers

        Kigali working class population (aged from 16 to 45 years old) including ordinary people who
         want to buy or sell any new or used item, brokers, etc.
         45% of the Rwandan population in 2008




             Tourists and expatriates who are not familiar with Kigali city markets and shops.
                      980,577 in 2008
    Target Sellers
     Small and middle-sized companies (shops, supermarkets, etc.)
          2232 registered companies and 2017 sole traders in 2008




        Entrepreneurs wishing to start doing business in Kigali, as well as local dealers and brokers in
         various fields.

     Market Size
- According to governmental sources, about 1million people spend their day in Kigali for work and 800,000
live there.
- Most shops around Kigali don’t have websites or any proper marketing strategy to boost their business
- We are starting with the following items:
     Electronics (PCs, laptops, refrigerators, TVs, phones, etc...)
     Cars
     Houses
     Food (market prices)
     Clothes& shoes
     Cosmetics
     baskets (agaseke)
     art works
     statutes
     jewelries
 Market Penetration
  We are confident to reach a 10% penetration of our targeted market in the first 3 months.
  We expect a 60% penetration in a 6 months period, at the point where we’ll start working with
  Telco companies.

  Competitive Landscape
  Usually people go from door to door searching for products/items they wish to buy
  People selling items (cars, houses, used things) hire a commissioner at a high price
  Local advertisement means: radios, TV, websites, billboards, posters, etc.
  For most shops and small & middle-sized companies, this is simply too expensive
 esoko.com provides its users with various market prices in Kigali

 Competitive Advantage
  SMS is an immediate, more reliable way to convey information to a wide range of customers:

   User friendly, accessible and flexible way to buy, sell using simple SMS and web technology

   Gura is able to process and reply queries in both English and Kinyarwanda

   Up to date and accurate information about various products (business opportunities) with
    small/starting businesses gaining visibility

   Individual sellers and companies pay (cheaper and more reliable) for sending bulk SMS to all or
    selected buyers containing information about special promotion prices and discount, new products
    in store, etc.

   Our database is easily up-datable (mostly by its users) and will generate fast reply to users’ query:
    part of our data will be provided by individual sellers and companies updating their accounts via
    both portals.

 Potential Growth
  Important metrics for us are number of users and profitability:
 We project a number of 1000 users the first month, reaching to 5000 in a period of 3 weeks.
 Income growth of 5% in 3 months, reaching 20% in the next 6 months.
                                  V. Product Description + Features




    Components of the system

Laptop
The SMS application, database and website will be managed from a laptop connected to the internet
through the modem.
We will extend to a server in the next 3 months to improve reliability as the number of subscribers and
request increases.

SMS application (Java application)
Parses SMS and requests sent by users, removes the keywords, queries the database and generates an
reply through the modem (SMS) or web page.

Database (My SQL server)
Stores all subscribers accounts information.

Modem
All the incoming request and outgoing replies will be received and sent through it.
Website
Companies and individuals can post and search products specifications (interact directly with the
database). Will be hosted on a remote server.

Administrators
Manage and troubleshoot the system, check queries, and uploads for prohibited products.

    Use Case
      Buyers
       How to subscribe:
        To subscribe using the phone, a user must send an SMS to our center (to the modem SIM card
          number) with his/her password followed by his/her category (buyer or seller). The user then
          receives a confirmation SMS telling him/her whether the subscription was successful or not.
        Subscription on the website will be through a form where the user indicates his/her category
          (buyer, seller, and company), password, etc. and uploads information about him/herself or the
          company (location, phone number, products/items and respective prices).
        Users can also unsubscribe by SMS or on the web.
    How to buy:




   Sellers
    How to buy and sell:
    Sellers can also buy, but buyers can only buy. They add a product to their accounts as shown below.
    They can remove a listed item from their account by typing: del password productId




 Bulk SMS
    Sellers and companies pay to inbox subscribed buyers about new products and discounts on their
    products (specification and price).
                                         VI. Operations Strategy

Charging

On the short run:
    We will make money by charging listed sellers and companies on in boxing (bulk SMS) subscribers
       about new products and discounts available.
    Charge for adding more contents (from listed companies and subscribed sellers) to our database
       through the website.

On the long run:
On top of that:
    Charge per SMS sent by users subscribing, querying for products/items or updating their accounts:
       Partner at this stage with the Telco companies as the number of people familiar with Gura would
       have increased (number of subscribers and their recorded queries).
    Advertisement and branding of big companies through both portals.
    Sell our data to governmental and international institutions as well as local and foreign investors.

Employees

   Administration & Management department
Management and leadership skills, that we have acquired through our past achievements and experience

    Technical department
Will be taken care of by ourselves in the beginning as related tasks will still be manageable.
We will hire more labor as we grow (programmers, network technicians)
     Sales & Marketing
Will be covered by ourselves in the beginning and hire more professional labor in that area (marketers,
etc.)
                                       VII. Marketing Strategy

      Creating awareness of Gura in Kigali public through local media (radios, websites, newspapers, etc.)
       and organizing a launching event ceremony of Gura.
      Street and on campus promotion, using printed materials (flayers and posters)
      free subscription for buyers and free company listing

                                               VIII. Pricing
    Buyer
         Start with free subscription: buyers will only be charged the usual SMS cost (ranging from
           3RWF – 53RWF) while subscribing or buying.
         On the long turn, charge 60RWF per SMS to register and query for products to buy.

    Seller
    Start with individual sellers and companies subscribing free of charge through both portals, and
     given a limited free space on our website.
     They will also be able to add products to our database by SMS for the usual SMS cost.
      We will charge on Bulk SMS sent to subscribers: 80RWF per SMS.
     Listed sellers and companies (shops, supermarkets, etc.) will pay to post additional products
     (pictures and text) on our website (10,000RWF and 20,000RWF per page for individuals and
     companies respectively).
    On the long turn, we will charge 100RWF per SMS to post products for sell and for sending Bulk
     SMS (on which 30RWF and 50RWF comes to us respectively).
    Price limitation (for registered individual sellers& listed companies): 20,000RWF and up.
    We will be influenced as we grow by the type of distribution channel and make discounts on the
     products that have been queried a lot of times.



ADD TABLE
                                           IX. Financial Plan

Gura project will start with its three co-founders being payed according the monthly income to save money
for the company. The different tasks will be allocated to them in the start.

Start-up Costs
To start we need the following:
     A Modem – RWF 25,000
     Daily airtime of RWF 5,000
     2 laptops (which we already have!)
     2 portals: the SMS application and a website, which are up and running.
     Us three working as administrators and marketers.
        TOTAL START UP COST = RWF 200,000

Projected Revenues
Our main sources of revenue will eventually come from the following components:
    Charging sellers for their registration / web ads
    Charging sellers and buyers for SMS
    Charging sellers for access to our Bulk SMS database


ADD TABLE



Profits over time

In the short time business the Bulk SMS will be charged 60RWF per SMS.

At the stage of partnering with the Telco companies, the SMS will be charge 60RWF (on which we will take
20RWF) and

ADD TABLE

Sources of Funding

The AITI competition prize could be a good starting fund, otherwise the investment require at the early
stage will come from the co-founders of the company mentioned earlier.

 We will be open to investors who are interested in our idea and will proactively encourage collaboration
for the growth of Gura and thereby improved service and outreach to our clientele.

Equity Structure

All stakeholders must come up with the same share of capital for equal share of profits.
Co-founders:

KAMALI: 25%

KWIZERA: 25%

RUTI: 25%

Interested investor: 25%

Valuation

Our company is a long life business with high growth potential. We intend to expand our company by
interesting more shareholders to invest; we are open to any investor, our primary target being the Telco
companies.
At this stage, valuation would be premature given that the project is still at its conception stage. We will
conduct valuation as we engage more with the market in the future based on realized returns on
investment.

                                              Key Milestones

    August 15th 2010: have Gura entirely up and running (both portals in operation)

    15th to 31st August 10: launch a massive 2 weeks marketing and promotion campaign throughout
     Kigali

        September to December 10: gain the targeted number of subscribers to start working with Telco
                                                 companies

                                                Future Goals

       Place Gura application as a pillar in products finding, buying and selling

       Become the most popular and reliable Rwandan product finder application

       Getting 40% of our targeted customers subscribed to and using our application

       Monopolies data on products information and specifications

       Expanding to the rest of Rwanda (rural areas) on our one year anniversary.

       To expand our market by including more categories: construction materials, school materials, etc.
Description of Management (give your own backgrounds and unique skills)

								
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