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Written by Mr. Jonathan Camilleri IADCS, who is referred to as “the entrepreneur” within this document, may be contacted on for further queries: Email: Postal address:
33, L. Casolani street, Birkirkara BKR 4535, Malta (EU)
Online resume and testimonials on the founder of this project are available online at
http://mt.linkedin.com/in/jonathancamilleri. The logo pertains to the Balanced Scorecard, and, was used in conjunction with the terms and conditions of the Creative Commons Attribution ShareAlike 3.0. Version 1.0 (draft) written during June 2013
therefore the reader agrees not to disclose it without the explicit written consent of the entrepreneur. has a good grasp of the English language. It is assumed that the reader is familiar with business terminology. and. The document remains the property of the author.Confidentiality agreement The reader acknowledges that the information provided within this business plan is confidential. acceptance of reading this document is assumed to be an acceptance of this agreement. other than information which is in the public domain through other means and that disclosure of use of same by reader may put the reader as liable for the infringement of intellectual property. 2 . unless the entrepreneur publishes this document on the world wide web. It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature. accounting. and.
often in terms of projects and programs. it can be seen as a matter of organisational decision making within a social. management. technologies and their impact. It entails specifying the organization's mission. Reporting and analytic capabilities are planned to be included. political and cultural context. involvingresources and performance in internal and external environments. reengineering the processes and resources as required to meet the original strategic objectives. and then allocating resources to implement the policies and plans. The software project will involve designing.0. social responsibilities. reselling it through a subscription-based administration information system. According to Johnson and Scholes (1993). Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. maintenance and marketing of an information systems targeted to be used for corporate strategic management. in order to read 'big data' into aggregated reports in the form of dashboards and reports that can allow trend analysis of the external and internal factors which may affect strategic direction and alignment within an organization. throughout this document with the kind permission to reproduce granted under the Creative Commons Attribution ShareAlike 3. 1 Excerpts taken from Wikipedia. These include political factors. environmental concerns.Executive summary The business project involves the software development. projects and programs1. and. which indicates an increasing perception of the use of corporate standards to measure organizational performance and align strategy to tactical objectives. developing policies and plans. which are designed to achieve these objectives. legal aspects and the global influence of international diplomatic and trade agreements. including the public sector. Strategic management analyzes the major initiatives taken by a company's top management on behalf of owners. development and deployment of the software within a hosted cloud service. vision and objectives. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. 3 . both within the private and within the non-profit making sector.
Marketing strategy Viral marketing.com/research/Moodys-Negative-credit-outlook-onMaltese-banks-reflects-weakening-domestic—PR_175538 and other articles on www. Partnerships with existing brands and pursuit of expansion by engaging shareholders and seed funding are intended to make a cash cow of this business. Economic outlook According to Prof. currently targeting to apply for an office at the Kordin Business Incubation Centre. within an established industrial area. his profile is available at http://www. Edward Scicluna is the Minister of Finance in Malta. targeting pricing that would be competitive within the local market where established brands are already established and popular.edwardscicluna.com/profile/. and. Sourced from an online article at http://www. with bank deposits being on the rise 3 2 3 Prof. even amongst women. Cost savings is passed on to the end-customer in the form of loyalty schemes and promotion. which is a perception held in common according to persons interviewed by the entrepreneur. and. 4 . The Malta Development Act 1967 and subsequent legislation related to the governance of business development in the Maltese Islands are considered a useful source of reference in this respect.com. that offers various business-related services provided by Malta Enterprise.Company summary The external environment The business environment will be originally started off in Malta or Gozo. Moody's had reported that the medium-term credit outlook for the Maltese banking system is negative in 2009. The loyalty scheme is intended to attract members to commit themselves to subscribe as members and keep up a lifestyle that promotes healthy living and regular fitness training. web marketing (e-shop) and social media shall be mainly used used to promote the business. dated 29th June 2013.moodys. however admitting that the Maltese banking system is adequately capitalized. this may encourage consumerism and more people to engage in a healthy lifestyle. The Kordin Business Incubation Centre is considered to provide sufficient office facilities to take up office subject to approval of funding from the several financial sources being sought out.timesofmalta. Scicluna2 there are positive signs of economic growth for the Maltese economy.
the technology platforms may be used to build the software tools as opposed to reinventing the wheel. 5 . as Gartners reports.Low risk Substitutes for all services Business intelligence tools are available on the market and they are already established brands. Medium risk High risk New entrants to the market During the development stage. the process model may be pilot tested to monitor competition and the risk of aggressive competition outmarketing the strategic management software tool. Depends on the buyer's potential value added and their commitment to buy services from the entrepreneur. Buyers bargaining power Suppliers bargaining Higher value orders power are expected to avail from bulk buying. Diligent and ethical negotiation shall enable the entrepreneur to gain from cost economics and lower production and transaction costs. however.
willingness to commit themselves to a regular schedule. 6 . demand. depending on the financial and other commitments of the entrepreneur and the company or individual(s) involved. although some might prefer to provide services as a sub-contractor to the company. This will be negotiated on a case-by-case basis. employment. and. environmental. financial and other legislation which is required to comply with financial and other incentives that may be granted by the Government of Malta or one of its agencies and authorities.Workers' unions are not expected to have a strong influence. Professionals may be offered employment on a part-time basis depending on availability. The anatomy of the business process is expected to be influenced mainly by demand and supply. Influence of the nation-state and regional authorities is expected to be low to medium with the exception of basic regulatory obligations related to health and safety.
Strengths Flexibility and competitive pricing can be provided. Business development may be a challenge due to established international competition. Threats Local and international competition within IT Services. reselling of hosting. Weaknesses Work-life balance of entrepreneur and employees/sub-contractors 7 . hence. higher price elasticity. therefore providing opportunity for career development to the software development team expected to be engaged. Pricing scheme encourages members to commit themselves to a program. Opportunities Ancillary services such as application support. The entrepreneur may engage in donating a percentage of the income to charity institutions which have a cause that fall within the policies of the organization in view of corporate social responsibility. social media marketing and web site development can be provided alongside the development of the strategic management tool when the project is closed.
which builds upon Commission Recommendation 96/280/EC concerning the definition of small and medium-sized enterprises. and. legal advice shall be undertaken by the entrepreneur. the entrepreneur intends to venture into setting up a one-person business – thus a micro-enterprise4. a web designer. and. is available online at http://eur-lex. small.eu/LexUriServ/LexUriServ. and.europa. The above information is available at http://en. a systems administrator and possibly accounting/administration staff may be engaged by the entrepreneur. a turnover below €2M.com/ is responsible for attracting inward investment and supporting enterprises.do? uri=OJ:L:2003:124:0036:0041:EN:PDF. Initially the involvement of an accounting professional is expected to be high. Software developers. Independent business advisory. available online at http://eur-lex.do? uri=CELEX:31996H0280:EN:HTML. Their profiles will be available on the website for the purposes of public relations. the Malta Enterprise (http://www. and. has a balance sheet total of less than €2M.eu/enterprise/policies/sme/facts-figuresanalysis/sme-definition/index_en.Human capital analysis For the time being. 4 A micro-enterprise is a type of small business. and business growth is perceived to be one of the performance indicators.wikipedia. Within the Maltese Islands.maltaenterprise. at the website of teh European Commission for Small to Medium enterprises at http://ec. medium-sized enterprises. 8 .europa.europa.eu/LexUriServ/LexUriServ. Commission recommendation 2003/361/EC concerning the definition of micro.htm.org/wiki/Micro-enterprise. defined by the European Union as those (businesses) that meet 2 of the following criteria: has less than 10 employees.
000 €500.000 2017 €712. Financial forecasts The entrepreneur envisages gross revenue streams to total up to circa €165.000 €260.000 €500. which are expected to provide no credit to members or customers.000 €162. although other external economic factors which are not predictable would be taken into consideration at the start of each financial year.000 €212. the entrepreneur intends to set up a private company with the name of Business Strategy 2013 Limited. Strategy summary In order to benefit from limited liability. administration and management of the affairs of the business. and. the value and volume of business will help the entrepreneur with the financial forecasts for subsequent years.000 €500. 75% being paid upfront. although there is a risk that competitors attempt to out-market the newly established firm. Therefore healthy business relationships need to be established with competing firms as well. The entrepreneur shall endeavour to match creditors' terms with the debtors' terms so as to reduce the impact of negative cashflow impacting the business. will be reviewed regularly with the business performance and financial indicators. in liason with a business consultant. The initial application for shares must entail a commitment to buying at least 2. The location of the enterprise still has to be established since the entrepreneur is looking for a strategic location that provides visibility and ease of access to potential subscribed and walk-in customers.000 ordinary shares. The entrepreneur shall pursue opportunities for business networking. Accounting.125 €500. and. this gives them a share of the profits during the company's annual shareholders' meeting.000 2015 €500. as a form of trade financing option. 9 .500 2018 €900.000 2016 €750. will be carried out assuming that the business is a going concern.000 €250.000 per year. in order to create collaborative ventures and seek seed funding for rapid business growth with providers of ancillary services.500 €138.500 €500. and. The following table illustrates the expected revenues.000 5It is expected that the initial 2 years shall be the learning curve of the start-up business.000 €400. totalled over 5 years 5: 2014 Target sales on deployments Operating costs Profit before tax Profit after 35% tax €500. Thus the forecast is illustrative.Funding The key persons engaged would be involved in taking ownership and participating in management decisions by being offered share options that they can purchase at a nominal value of €2 per share.
accounting cost.000 75 licenses x €10.Revenues from deployments Year by year 2014 2015 2016 2017 2018 €3. and. The entrepreneur aims business development to improve the overall business and market share of website development. Sales exclude customizations and reporting which are charged at €200 per man-hour excluding VAT.000 The above sales figures exclude targeted sales on a subscription basis. and. All the above prices exclude VAT. 10 .500 100 licenses x €9. such as Balanced Scorecard. will be monitored using performance management methodologies. in the medium term. The pricing may be revised in view of market prices.500 50 licenses x €10. 417 subscriptions at EUR 100 excluding VAT per month are expected to be targeted.000 75 licenses x €9. consultancy projects.362.000 50 licenses x €10. or by simple reconciliation of planned versus actual sales. which is to be estimated following a market survey. In order to attain the above sales revenues.
6 Estimates and financial feasibility will be confirmed by an independent business advisor in due course.00 To be estimated To be estimated To be estimated Provision of doubtful debts is to be provided for at 10% of the balance of debtors.000 Still being estimated up to €5000. The accounting policies including policies for depreciation and financial modeling still has to be revised by an accounting professional. and. in line with relevant news. The financial forecasts will be reviewed accordingly. 11 . compliance fees. in order to start-up a new company. and. other permits Corporate tax (35%) less tax credits Rent €1.Business venture and networking in order to improve capital inflows would improve the business model. stimulate business growth.6 Start-up costs forecast and operating costs € Company start-up fees Software licenses Purchase of server equipment and software licenses for software development Trade licenses.
000.000 yearly €500 yearly €30.Operating costs Water and electricity Cleaning expenses Audit fees Stationery and office equipment Maintenance and cleaning of offices Communication expenses including mobile phone and internet Travelling expenses (including fuel) Insurance on buildings Professional indemnity insurance Sub-contracting and employment including entrepreneur's remuneration €3.000 per year €600 per year €6.000 yearly To be estimated €100 yearly €2. education and certification Marketing and public relations Compliance fees Research Franchise and branding Wages and salaries Travelling expenses Business partnerships. 12 .000 yearly €50. and.500 per year €5. subscriptions and branding Entertainment Accounting and administration Intellectual property and other legal fees Hosting Professional associations The entrepreneur is expecting payback within 3 years.000 per year. which may include overdraft and start-up financing for fixed costs. certification. revised. sub-contracting and maintenance.000 per year €1. repayable at the interest rates applicable by the banking institution and within the established terms and conditions of the facility.000 yearly Health and safety Training. which includes €20.000 per year To be estimated Starting from €200.300 per year €2. To be estimated €100.000 per year €2.000 per year To be estimated To be estimated € 950 yearly To be estimated €5. considering an upfront investment or total credit amount to around €500.000 gross yearly per employee and a budget for contingency.
this depends by far and large on the actual contractual agreements negotiated and agreed upon. supplies or their part thereof are sub-contracted. 13 . No agreement has yet been reached on the brands of choice to be promoted. The entrepreneur is seeking to establish business partnerships with suppliers. Customers are expected to pay membership fees upfront according to the pricing model established within this business proposal. however. for example by seeking to negotiate favourable credit terms with suppliers and providers. The entrepreneur shall seek to participate in local business associations of choice and follow standards of good practice when it comes to credit management and due diligence when dealing with third parties. and.Start-up funding and financial model The entrepreneur has limited financial capacity at the moment. The entrepreneur shall seek to establish favourable credit terms with sub-contractors where services. both in writing and through verbal negotiation for discounts. offers and other promotions. to ensure that the customers avail from goods of high quality and reputable brands. is therefore proactively seeking seed investors with experience within the information systems management as business partners to collaborate and pay up seed capital. The entrepreneur shall seek to negotiate credit terms with creditors so that they are not paid until the debtors have settled their dues relating to the same services or product being on-sold whether at a profit or not.
000 per deployment excluding VAT €10. Customers may also avail from free gifts and services offered through the entrepreneur's private ventures for providing health and fitness and information systems management.000 per deployment excluding VAT €9. and avail from the ability to modify the software. free gifts such as free smartphones may be offered to new customers. The product is expected to have a shelf life of 5 years.000 per deployment excluding VAT Discounts.Pricing Technical support calls shall be charged at the following rates. from time to time establish upgrades to be rolled out within the standard package due to the ongoing market and technology research that is planned to be undertaken by the software development team. maintenance for fixing bugs is covered by a maintenance agreement.000 yearly in order to avail from the source code.500 per deployment excluding VAT 2018 €9. In the case where the source code is not modified. other promotions such as an initial 4 hours of free training may be provided after implementation at the discretion of the entrepreneur. 14 .000 per deployment excluding VAT €10. vouchers. should the effort be considered as economically feasible in the short term. Pricing Year 2014 2015 2016 2017 Price €10. In this case maintenance and support would not be guaranteed by the entrepreneur. prior to being analyzed again for a major upgrade after which re-branding of the product is aimed to enhance the viability of the product in view of changing technology trends and the increasing need for innovation within information systems. software changes such as custom changes and specific reports are quoted on a case-by-case basis. Depending on the potential future value of the customer. if the projects are approved for funding through the financial institutions and through seed funding. unless other rates have been negotiated or agreed explicitly within a contract of service. and. The entrepreneur may. The client might be asked to pay a license fee of €5. The product is expected to adjust to supply and demand during the last two years of the first product launch during which demand is expected to increase due to a decrease in the retail price and an optimist belief that the product would have gained market share by the fourth year of operation. and. After the fourth year of operation an upgrade shall be planned in view of technology trends and the marketing plans shall be revised. as shown by research.
compliance costs. and. business growth. so that the payments are scheduled and paid on a regular basis. cost of living allowance increases which are allowed to human resources. including the relevant financial costs such as interests which are then charged to the clients' account according to the agreement stipulated with the customer.The entrepreneur seeks to establish a subscription based product. The prices shall be available upon request. other internal factors. since the standard package may have to be modified with customizations requested by the potential customer and the pricing shall be reviewed according to the effort planned in terms of man-hours worked on the project. The entrepreneur reserves the right to conduct sufficient background and credit checks to establish the financial stability of dealing with the particular customers. consumer price index which is expected to reflect an increase in expenses. where the customer shall avail from standard functionality on a version installed on a hosted and maintained provider on the “cloud”. and. with the bullet payment being financed by a financial institution. and. ensuring that the appropriate disclaimers are drafted in consultation with a legal advisor appointed by the entrepreneur. 15 . market conditions. The entrepreneur may bundle and package the pricing model. other external factors such as taxation and obligations and commitments that the firm might be contractually bound with. the client shall pay an initial installation and maintenance fee equivalent to the above and €100 per month for maintenance and support. Pricing shall be reviewed from time to time by the entrepreneur in view of business performance.
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