Prepared by: Francis R. Rabe Ivan Jay T. Buere John Paul N. Rayco
March 19, 2014
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. i Table of Contents
Page
Confidentiality Agreement ii
1) Executive Summary 1 2) Company Description 2 Promoters, shareholders and Board 2 Advisors 2 Products and services 3 Long Term Aim of Business 3 Objectives 3 S.W.O.T. Analysis 3
3) Market Analysis 4 Target market 4 Total market valuation 4 Targeted share 5 Market trends 5 Profile of competitors 5 Competitive advantage 6 Benefits to clients 6
4) Marketing/Sales Strategy 7 Marketing strategy 7 Sales Strategy 7 Pricing 8 Marketing and Communication Strategy 8
5) Research & Development 9 Patents, copyrights and brands Product/Service Development R&D 6) Staffing and Operations 10 Management Organisation Charts Staffing Training Plans Operations 7) Financial Projections 12 Key Assumptions 12 Profit and Loss Accounts 13 Cashflow Projections 14 8) Funding Requirements 15 Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. ii
Confidentiality Agreement
The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of the following; Mr. Francis R. Rabe, Mr. Ivan T. Buere, and Mr. John Paul N. Rayco.
It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information that is in the public domain through other means, and that any disclosure or use of this confidential information by the reader may cause serious harm or damage to Global Spot.
Upon request, this document is to be immediately returned to the following; Mr. Francis R. Rabe, Mr. Ivan T. Buere, and Mr. John Paul N. Rayco.
_____________________ Signature
_____________________ Name (printed)
_____________________ Date
This is a business plan. It does not imply offering of securities.
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 1 1. Executive Summary
GLOBAL SPOTs key markets for DSL are small and medium businesses in Bicol Region. GLOBAL SPOTs key markets for Web hosting and resale accounts are Web design firms, individuals, and small businesses with a need for space on a server. GLOBAL SPOTs key markets for dedicated servers are small companies where security and speed are necessary. The GLOBAL SPOT is located at San Roque, Iriga City, beside LCC mall. This company is owned and manage by partnership of Mr. Ivan Buere, Mr. Francis Rabe, and Mr.John Paul Rayco. This company will provide innovative quality Internet services and customer support to Internet users in Bicol Region including consumers and corporate customers. We are open every Monday to Saturday at 8 am to 5 pm. Client can visit our Facebook fan page, and can follow us on twitter for more updates.
Year 1 Year 2 Year 3 Sales 70,000 130,000 260,000 Net Profit before Tax 80,500 149,500 290,000 Investment 30,000 60,000 90,000 Employment 30,000 60,000 85,000 Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 2 IVAN JAY BUERE CO-OWNER/MANAGER/TECHNICIAN FRANCIS RABE CO-OWNER/OPERATION MANAGER/TECHNICIAN TECHNICIAN JOHN PAUL RAYCO CO-OWNER/ FINANCE MANAGER/TECHNICIAN 2. Company Description
Promoters and Shareholders
Mr. Ivan Jay T. Buere He is responsible for the strategy, tactics and programs to create interest, demand and recognition for GLOBAL SPOT and its product through the use of public relation, product marketing. He is also responsible for planning, organizing, staffing, training ang managing all marketing functions.
Mr. John Paul N. Rayco Mr. Rayco is the person who assists in the valuation of businesses, securities, and tangible assets. He will work on a variety of valuation assignments in numerous industries and responsible for developing financial models.
Mr. Francis R. Rabe Responsible to perform and select the most-qualified employee. This includes taking the Fair Hiring workshop, forming a committee, job description, recruitment and documenting the selection.
Technician Responsible for installation and troubleshooting of the system. Field services, returned materials, and setups are part of his work.
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 3 Advisors
For financial needs we tied-up with Land Bank of the Philippines located at the back of the Blue Building.
Products and services
GLOBAL SPOT (Internet Service Provider) offers:
DSL - Digital Subscriber Line Dedicated Server Co-location
Long Term Aim of the Business
Is to grow through acquisitions of smaller companies and separate itself from the competition by price and services.
Objectives
Contribute to government income by means of tax. Job opportunity Provide a fast and high quality internet connection with high security.
SWOT Analysis
Strengths ability to change rapidly Can offer features that are tailored for the market, such as local news and information, something a large company cannot do. Can ensure that they get the cheapest deal.
Weaknesses purchasing behaviour is dependent on profit, regardless of their growth or potential own no infrastructure and therefore have no control over the Internet backbone Opportunities customers opens up opportunities that are not available to larger companies easy for a company to expand into a related area
Threats shakeout occurring in the industry bankruptcy
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 4 2011 2012 2013 Internet Owner (LEGAL) 50 60 70 Non-owner(HACKER) 20 20 20 Totally No Internet Access 30 20 10 0 10 20 30 40 50 60 70 80 S i z e
b y
% Market Segment Growth 3. Market Analysis
GLOBAL SPOT can provide a reliable and secure internet connection, satisfactory service for home and commercial services.
Target Market
Internet is now rapidly changing the world and every person is now using online applications. Our primary target is the internet cafe and households that needs an internet connection and small offices..
Total Market Valuation
The demand for internet connection increases 10% every year thus making the future interconnected via network resulting for more business opportunities.
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
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Target Company revenue
Our company is aiming on increasing sales, net profit, investment, and employment. This chart shows the growth of the company for 3 years.
Market Trends
The demand for internet connection increases 10% every year. In 3 more years we are assuming that more families or individual will avail and have internet connection.
Profile of Competitors
Globalink Online Network, Inc. - Pacific Mall GLOBALink was a former pioneer Internet service provider in Albay that provided dial-up postpaid and prepaid Internet connectivity services. Currently, it has two business centers in Legazpi City each located in the two most popular malls in the area -- LCC Metro and Pacific Mall.
Bicol Broadband Internet Center (BBIC) Provide 1 Megabit high-speed Internet connection with BBICs fail safe network using dual DSL lines and backup systems against electricity failures.
Year 1 Year 2 Year 3 Sales 70,000 130,000 260,000 Net Profit 80,500 149,500 290,000 Investment 70,000 60,000 90,000 Employment 30,000 60,000 85,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 T a r g e t
C o m p a n y
R e v e n u e Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 6 Competitive Advantage
Global spot can offer fast, stable and reliable internet connection in a price that small costumer can avail and with guaranteed security. We will enable the company to guarantee 100% uptime for any dedicated server and co-location client where uptime is critical to their business.
Benefits to Clients
The Clients can Increase sales for small business like net caf, increase efficiencies, save money, save time, reduce errors, reduce downtime, and improve their service with a guaranteed security. Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 7 4. Marketing/Sales Strategy
Marketing Strategy
GLOBAL SPOT markets its products as solutions to high traffic and bandwidth-intensive Web companies whose online reliability and speed are critical to daily business. Target companies include online stock trading companies, and corporations with graphics and/or streaming video. The key message associated with the company's products and services is better reliability, speed, and bandwidth for the same price.
Sales Strategy
GLOBAL SPOTs strategy is to advertise key competitive advantages in an advertising campaign. The customer will call our sales line or go to our website. The company's promotional plan is diverse and includes a range of marketing communications: Public relations. Press releases issued to both technical trade journals and major business publications such as Philippine Daily Inquirer, Business Week, and others. Internet. The company currently has plans to redevelop its current website because that is a primary marketing channel
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
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Other price depends on the promo or set that our client will choose. Location is also a factor of price change. We will make sure that our clients will be satisfied not only with the prices but also with the services that we will offer.
Marketing and Communications Strategy
On promoting our business, we will be on social networking sites. Clients can browse or find us on facebook and twitter for many updates that will come. Pamphlets, brochures will also be available.
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 9 5. Research and Development
Technology Roadmap
In order for our business to achieve success, we will conduct surveys and researches for us to know on what we have to change or adjust about our services. Feedbacks and suggestions will help us on setting and doing modifications on our product.
Research and Development
The employees will attend seminars and training about the latest updates to technology that will help our business. Knowledge that was gained on the seminars and trainings will be applied.
PLDT and Denver Computer Shoppe will be our main supplier of trusted and reliable materials. Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 10 IVAN JAY BUERE CO-OWNER/ MANAGER/TECHNICIAN FRANCIS RABE CO-OWNER/OPERATION MANAGER/TECHNICIAN TECHNICIAN JOHN PAUL RAYCO CO-OWNER/ FINANCE MANAGER/TECHNICIAN 6. Staffing and Operations
Management Organisation Chart
Staffing
We will hire a college graduate with competitive and has a computer background. Interview will be the first part on choosing the right person on the job. Trainings will be needed before starting on the real work. Loyalty will be the most important thing on joining our staff.
Training Plans
Every 6 months the company will join a seminar that will help them on boosting their skills. Consider the goals of your organization. The purpose of the training may be to prepare employees for emergencies, improve business offerings or protect the privacy of clients. Identify the benefits for trainees. Outline the skills, information and certifications that participants will gain by undergoing the training. These might include mastery of specific software applications, detailed knowledge of company policies and procedures, or enhanced customer service skills.
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
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Operations
Equipment
Router Switch Utp Cables
Communications facilities
Telephone Fax Computers
Suppliers
Denver PLDT
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 12 7. Financial Projections
Number of employees projected for each year and their salaries Personel Year 1 Year 2 Year 3 Manager 180,000.00 204,000.00 228,000.00 Operations Manager 168,000.00 192,000.00 216,000.00 Finance Manager 164,000.00 186,000.00 210,000.00 Technician 120,000.00 144,000.00 168,000.00 Total Payroll 632,000.00 726,000.00 822,000.00 No. Of People 4 4 4
Projected investment in equipment and material Repairs and Maintenance Php 75,000.00 Product Development Php 75,000.00 Rent Php 50,000.00/year Insurance Php 100,000.00 Computer set Php 40,000.00 Modem Php 5,000.00 Operating Systems (Windows 7 Ultimate) Php 6,750.00 Any Anti-Virus Software, Anti-Spy software Php 16,000.00 Any Application Systems for operation Word, Processing, Spreadsheets and other Software Php 14,000.00 Supplies and Materials (Papers, CDs, Diskettes, Printer Cartridges, Pens) Php 5,000.00 Telephone Php 1,500.00 Internet Service Provider (ISP)/DSL Php 4,500.00 Others Php 50,000.00 TOTAL Php 442,750.00
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 13 II Profit & Loss Accounts
Direct cost of sales 1,500,000.00 1,500,000.00 1,500,000.00 Production payroll 400,000.00 400,000.00 400,000.00 Total Cost of Sales 1,500,000.00 1,500,000.00 1,500,000.00
Total Expenses 160,000.00 160,000.00 160,000.00 Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
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IV Cashflow
Cash flow statement Global Spot (Internet Service Provider) Year 2011 Net Earnimgs Depriciation Degree in accounts Recievable Net Cash from Operation Equipment Notes Payable Total January 250,000.00 5,000.00 12,000.00 198,000.00 15,000.00 10,000.00 490,000.00 February 198,000.00 4,500.00 12,000.00 200,000.00 15,000.00 10,000.00 439,500.00 March 175,000.00 3,800.00 12,000.00 175,000.00 15,000.00 10,000.00 390,800.00 April 245,000.00 5,000.00 12,000.00 326,000.00 15,000.00 10,000.00 613,000.00 May 160,000.00 4,000.00 12,000.00 259,000.00 15,000.00 10,000.00 435,000.00 June 275,000.00 4,400.00 12,000.00 234,000.00 15,000.00 15,000.00 555,400.00 July 140,000.00 4,300.00 12,000.00 301,000.00 15,000.00 12,000.00 484,300.00 August 165,000.00 4,200.00 12,000.00 295,000.00 15,000.00 10,000.00 501,000.00 September 140,000.00 4,700.00 12,000.00 300,000.00 15,000.00 10,000.00 481,700.00 October 220,000.00 3,900.00 12,000.00 250,000.00 15,000.00 10,000.00 510,900.00 Novenber 210,000.00 4,000.00 12,000.00 295,000.00 15,000.00 10,000.00 546,000.00 December 250,000.00 4,600.00 12,000.00 264,000.00 15,000.00 10,000.00 555,600.00
TOTAL 6,003,200.00
Cash flow statement Global Spot (Internet Service Provider) Year 2012
Net Earnimgs Depriciation Degree in accounts Recievable Net Cash from Operation Equipment Notes Payable Total January 255,000.00 5,000.00 12,000.00 198,000.00 15,000.00 10,000.00 495,000.00 February 198,000.00 4,500.00 12,000.00 215,000.00 15,000.00 10,000.00 454,500.00 March 175,000.00 3,800.00 12,000.00 175,000.00 15,000.00 10,000.00 390,800.00 April 245,000.00 5,000.00 12,000.00 326,000.00 12,000.00 10,000.00 610,000.00 May 170,000.00 4,000.00 12,000.00 259,000.00 15,000.00 10,000.00 440,000.00 June 275,000.00 4,400.00 12,000.00 234,000.00 15,000.00 15,000.00 555,400.00 July 140,000.00 4,300.00 12,000.00 301,000.00 15,000.00 12,000.00 484,300.00 August 165,000.00 4,200.00 12,000.00 295,000.00 15,000.00 10,000.00 501,000.00 September 140,000.00 4,700.00 12,000.00 300,000.00 15,000.00 10,000.00 481,700.00 October 220,000.00 3,900.00 12,000.00 250,000.00 15,000.00 10,000.00 510,900.00 Novenber 210,000.00 4,000.00 12,000.00 295,000.00 15,000.00 10,000.00 546,000.00 December 230,000.00 4,600.00 12,000.00 264,000.00 15,000.00 10,000.00 535,600.00
TOTAL 6,010,200.00
Strictly Private & Confidential Global Spot (Internet Service Provider) 2014
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9. Funding Requirements
Total funding requirements of the business, and how those are intended to be provided.
Amount Promoters fund 200,000.00 Bank lending 50,000.00
Required for:
Rent Php 50,000.00/year Insurance Php 100,000.00 Computer set Php 40,000.00 Modem Php 5,000.00 Operating Systems (Windows 7 Ultimate) Php 6,750.00 softwares Php 25,000.00 Supplies and Materials (Papers, CDs, Diskettes, Printer Cartridges, Pens) Php 5,000.00 Telephone Php 1,500.00 Internet Service Provider (ISP)/DSL Php 4,500.00 Others Php 50,000.00 Application for Start-up Entrepreneur Programme
This document is the proprietary property of Global Spot (Internet Service Provider). Copying or otherwise distributing the information contained herein is a breach of confidentiality agreement. 16