Cadi Ayyad University- Marrakech

Operational internship

Theme:
Business plan of a digital startup.

BENBRIK Kenza

Supervised by: Ms. Bouchra LEBZAR

Ms. Latifa AAZI

College year: 2019/2020

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Index :
Acknowledgments........................................................................................................ 4
I. Executive summary ..................................................................................................... 5
1. Company overview ............................................................................................................ 5
2. Business idea description .................................................................................................. 5
3. Mission & reason of elaboration of Business Plan ............................................................. 5
4. Seed capital ....................................................................................................................... 5
5. Capital sources .................................................................................................................. 5
II. Business and market idea ............................................................................................ 6
1. Business idea ..................................................................................................................... 6
2. Market idea ....................................................................................................................... 6
III. Marketing plan ........................................................................................................... 7
1. Mix-Marketing -4P- ............................................................................................................ 7
a_ Product.......................................................................................................................... 7
b_ Place.............................................................................................................................. 9
c_ Promotion ................................................................................................................... 10
d_ Price ............................................................................................................................ 14
IV. Environment analysis ................................................................................................ 15
1. Internal audit ................................................................................................................... 15
a_ SWOT analysis ............................................................................................................. 15
b_ Startup matrix ............................................................................................................. 17
2. External audit................................................................................................................... 18
a_ 5 forces of PORTER ..................................................................................................... 18
b_ PESTEL analysis ........................................................................................................... 21
c_ Benchmarking study .................................................................................................... 26
V. Legal structure .......................................................................................................... 27
1. Legal form of business ..................................................................................................... 27
a_ Legal status ................................................................................................................. 27
b_ Choice demonstration ................................................................................................ 28
2. Seed capital...................................................................................................................... 29

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 a_ Investment statement ............................................................................................... 29
b_ Future investments framing ....................................................................................... 29
c_ Details about funding sources .................................................................................... 30
VI. Organization and management ................................................................................ 30
1. Staff requirement ............................................................................................................ 30
2. Company’s organizational chart....................................................................................... 31
3. Staff cost estimation ........................................................................................................ 32
VII. Financial projections ............................................................................................... 34
1. Operations and cost analysis ........................................................................................... 34
a_ Operating sales plan .................................................................................................. 34
b_ Annual operational cost plan .................................................................................... 35
2. Profit margin .................................................................................................................... 36
3. Starting balance ............................................................................................................... 37
VIII. Appendices ............................................................................................................... 38
IX. References ............................................................................................................... 40

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 Acknowledgement:

I want to start my acknowledgement by thanking my school: National School of Business and

Management-Marrakech for forming me and instructing me through the skills that I have today.
It would not been possible without the help of all my academic Professors.

I wish to express my sincere appreciation and gratitude towards my supervisor, Professor.

Bouchra Lebzar, who suggested me the idea of creating a business plan since I got to work with
a startup during this internship. Without her persistent help, the goal of this project would never
have been realized.

I am highly indebted to Ms.Latifa Aazi, owner of the fresh company “ENLEM”, for her
continuous guidance and constant supervision all along my internship. Thank you for providing
me with the necessary information regarding my report and for allowing me to telecommute in
these tough conditions.

Finally, my deep and sincere gratitude to my family for their continuous and unparalleled love,
help and support. I am grateful to my sister for always being there for me as a friend and as a
mentor. I am forever thankful to my parents for giving me the opportunities and experiences
that have made me who I am. A big thank you to my brother and his family for always standing
by my side.

Thank you.

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 I. Executive summary:
1. Company overview:
ENLEM is a startup company, initiated by the computer engineer Latifa Aazi, which operates
in the digital transformation field. Based in Tangier, it helps national companies to take steps
further towards digitalization and convert their traditional factories into smart ones that
engages less cost and more productivity. The company privileges costumers operating in the
industrial sector because they tend to have bigger projects that needs to be revolutionized.
Since the company is a service provider, the manager chose to have a B2B relationship and
work exclusively with organizations functioning in the national territory.

2. Business idea description:

ENLEM is a startup, service-provider, fresh firm, being active in the digital domain. It helps
businesses to include the latest trends of technology in their operating process in order to keep
up with the industrial revolutions and have a more structured shortcut that saves not only time
and efforts but money as well. The concept of industry 4.0 is getting more and more spread
around the world, “old-school” factories are now turning into “Smart” factories and this
transformation could only be beneficial to organizations these days.

3. Mission and reason of elaboration of business plan:

The startup mission is to bring the concept of digitalization to Moroccan companies and revolve
the industrial sector in the territory. Therefore, ENLEM needs a well-structured and detailed
business plan in order to convince investors and potential clients with its purpose.

4. Seed capital:
The company started with a seed capital that has a total net worth of 100 000 MAD.

5. Capital sources:
The company’s capital arises partially from the managing director own funds whose been
previously collected throughout her many experiences working as a an employee in the same
field, in addition to her personal savings.

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II. Business and market idea:
1. Business idea:
ENLEM is a young startup active in the digital field. It escorts businesses to digitalize many
aspects of their production chain, logistics and even sometimes-administrative affairs, through
the help of the new technologic tools. The company aspires to give her clients the pleasure to
experience a high-speed digital transformation within the alpha processes of the clients’ firm;
and since the companies’ digitalization concept is a new one in the territory, not many
companies are practicing the same profession here in Morocco; Therefore, ENLEM does not
have many direct competitors in the national market. The startup offers to her clients a diverse
portfolio of services such as:

 Technologies, information systems, industrial and software engineering.

 4.0 Industry, digital transformation of companies, integration of innovative solutions
and innovation consultancy.
 Training, consulting and outsourcing.
 Industrial control systems conducted by artificial vision.
 IT application development, website, mobile and ERPS/CRM implementation.

2. Market idea:
The company is aiming to conquer national market only, it would be a huge risk to focus on
the international opportunities without building it’s own notoriety within the home country.
Nationally, ENLEM is based in Tangier, more precisely in the free zone, it’s considered as a
very strategic place of headquarters since the company is dealing with foreign markets in
order to import software’s licenses and patents to use it as a material while working on
national projects. Thus, the choice of having Tangier as a home city was clearly the right one
to make. Moreover, ENLEM has a future vision to add Casablanca, Rabat and Tetouan to her
future active map to guarantee a surer pervade of the company’s name.

In regards of the firm’s competitors, we may mention names such as TECHNIU, ABSIX.0
and VISIATIV, these companies suggest the same services that ENLEM offers and even
sometimes a little more to persuade the target market, but as a further specification, these
competitors have their head offices in the EU which makes them different than our Moroccan

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initiated startup. As for our local competitors, we can name LOGIKA, WEELITE and APEN,
these organizations produces identical services offered for sale within our same target market.
In addition to this, these companies have their main offices here in Morocco same as our firm.

III. Marketing plan:

1. Mix-Marketing -4P- :
a. Product:
 Product/service presentation:

ENLEM is providing a service of digitalization, it helps companies turn their traditional

procedures into smart and even zero paper. This way firms will have easier access to their
document management without any missing information. In addition to this, ENLEM offers
services of quality control to observe if the designed product is complying to the pre-
established requirements; This service do not only bring more accuracy to the firm, but it also
helps the decision makers have a more clear view on the state of progress of the production
chain as well as other departments. This full package of services previously mentioned is
mainly benefited by automobile grand houses. As for costumers like telecommunication
operators, another service package is available, one that includes preventive maintenance of
telecom shelters (BTS) through the use of robot-camera connection. Shelters are small
chambers usually placed on the top of network panels containing gadgets responsible of the
network flow and due to the difficulty to access this chamber, the use of digitalized camera
and robots could majorly help in the control process. This type of clients usually asks for
services of visioning too, and by visioning, we mean establishment of softwares placed for
channeling numerous information within the company and have the right to adjust and modify
the software according to the business current needs.

 3 Product layers:

Material elements: Official website, business card with QR-Code that gives access to the
official mobile app (On both platforms: App store and Play store).

Functional layer: Gives potential clients a full view of the company, a close look into the
provided services and the quality of the outcome, without having to move to the head office.

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Symbolic elements: Digitalization, revolution, future, robots, business, trust.

 Product’s features:

Accessibility: The use of the official company’s platforms is very practical and easy to access,
in order to give our clients a first glance on the many services that we provide which we could
customize according to the client’s preferences and accommodations. We bet on the fluidity
of the platforms in order to guarantee a first satisfaction and official meeting with our future
costumers.

Rapidity: After taking a call from firms that wants to organize a meeting in order to discuss a
prospect project, ENLEM staff make sure to suggest prompt dates so that the client feels
comfortable dealing with us and trusting us with large setups that would be surely ready in the
briefest deadlines.

Confidentiality: We guarantee our clients a confidentiality advantage where our provided

services remain confidential and private. After concluding a successful project, the firm may
ask the clients company for approval to use their name and logo in the official platforms
within our client partners.

 Product’s nature:

The company offers complementary services in order to improve the traditional production
chain in the territory and digitalize as many aspects as possible inside the client’s firms. These
kind of services offers improvement of quality and productivity of the whole firm, which
makes it adequate to the international standards if there were any opportunities to conclude
external markets.

 Product’s life cycle:

Concerning the product’s life cycle, the goal is to shortcut launching phase, extend phases of
growth and maturity, and delay decline phase. The phases duration depend mainly on the
game of supply and demand.

 Product’s conditioning:
o Approach:

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Ensure services of digitalization and many others of the 4.0 industry for national companies.

o Transmission:

The “About” tab in the official platforms contains information about the company and its
main office as well as its coordinates. These platforms are established in order to build the
company’s brand image.

Usually, in order to conclude a project with a client a meeting is required. During the meeting,
both the firm and the client discuss the desired services, the delegated project and the eventual
price. A teleconference could be held if needed and request from the client.

 Reason of launching the new product:

Need to keep up with the new industrial revolution. After recognizing what the developed
countries use within their industrial sector, it was only fair to keep up with trend of revolution
and fill in the international standards that turn around the concept of digitalization day after
another. The company chose this activity and aspired to be one of the first companies to
introduce services of 4.0 industry in Morocco, due to the fact that giant national companies
could use this kind of services inside its firms.

b. Place:
 Firm’s location:

Firm’s location description:

As to our company, we decided that our head office would be located in the Free Zone of
Tangier. It is due to the fact that the manager and most of her staff live in the city, and more
importantly: the Tangier Free Zone offers so many advantages for fresh companies that
proves having national and international relationships with stakeholders that could be
beneficial for both the company and the national economy. However, our future vision
include being spread into many strategic cities such as Casablanca, Rabat and Tetouan.

Choice justification:

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The reason we chose Tangier Free Zone as our head office location is because of the many
advantages it offers. Large amounts of investments and high degree of infrastructure quality
are few of the many motives that encourages companies, which have international
relationships, to settle in the zone. Moreover, multitude facilities are offered such as tax
exemption, exemption from trade control regime and even special customs procedures.

Costumers are effected by the channel:

In order to reach prospect clients, ENLEM has thought of using the meeting and mailing
options as channels to inform the national companies of the availability of the digitalization
concept here in Morocco as well as the other services that our company guarantee to provide
under the theme of 4.0 industry. We found out that these kind of direct channels are the most
effective while wanting to communicate with large businesses.

Our distribution strategy aim to inform most of national firms about our services and make
sure to conclude as many partnerships as possible, which will lead to more coverage of
digitalization market in the territory.

Promotion channel choice justification:

Our choice of adopting direct channels as medium between ENLEM and her future costumers
is based mainly on the fact that there will not be any intermediator between both sides.
Moreover, this channel gives us the opportunity to benefit from many advantages such as:

 In-depth knowledge of our costumer’s needs ( Better understanding of the market)

 A launch phase for each new service ( Speedy promotion)
 Gain in commercial margin ( The margin of wholesalers or other intermediaries)

c. Promotion:
Project object: Setting up the official platform of the company as well as other promotional
aspects of ENLEM.
Logo development:
Previously, ENLEM staff has developed a very basic and elementary logo that did not suit
neither the company’s active field nor the color psychology in Marketing. It was unclear from
the costumer’s vision, to identify and have an idea about the company and its services.

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The previous logo was held like this:

We decided then to change the logo in order to fit inside the market and among our national
and international competitors. ENLEM means in Turkish “Lines of latitude”, the founder
chose this name in order to build a vision of worldwide coverage even if ENLEM decided
first of all to emerge the national territory before moving to international borders. Therefore,
we chose to work with a compass as a main sign to include the first concept and remind the
purpose and meaning of ENLEM. We then decided to bring the logo to life through colors of :

 Purple: main color of digitalization, it reminds qualities of creativeness, wise and

futuristic content.
 Blue: Reminds qualities of trust, strength, dependableness and confidence.
 Grey: Refers to neutral, calm, balanced and luxury intuitions.

The design has combined two concepts: First, we tried to have a graduation in colors between
purple and blue, the graduation refers mostly to the industrial revolutions moving from 3.0
Industry to 4.0 Industry “the newest trend of technology”. The second concept, we tried to
deconstruct the purple side into the shape of disproportionate pixels, so that we give allusion
that the content is purely digital.

The new logo resulting from both the manager and my proper efforts is the following:

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Elaboration of business card:

Since the logo has changed, it became necessary to change the manager’s business card. After
consulting her expectations and vision, she wanted a basic card, neutral that focused more on
the new logo and listed the most important services the firm provides. She insisted on putting
a QR-Code template to fit with her visions of having a mobile application of ENLEM. The
QR-Code comes in the context of having an Augmented-Reality (RA) business card. Here is
the draft of the business card that the manager used to work with:

Here is the new business card after consulting the manager:

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Target market of ENLEM:

National companies of telecommunication and automobile grand houses are the most targeted
companies of the firm. Therefore, the marketing strategy ENLEM is going to adopt depends
mainly on the type of targeted clients. Consequently, we have a created a “Persona-Buyer”
profile who represents what our prospect clients look like:

“Mounir, CEO of telecommunication company in Morocco, 35 years old, ambitious and

wanting to incorporate new technologies to his firm. Advocates working with new startups
that offers new concepts and services in the territory. His company is holding over 50% of the
market shares. He get most of his agreements done on the internet and gives importance to
supplier’s image on social media and mobile apps. He aspires to digitalize as many aspects
as possible within his company to become the first 100% digitalized organization in
Morocco.”

 Mounir, 35 years
 CEO of telecommunication firm in Morocco
 Taking over 50% of market shares
 Advocates working with startups
 Aspires to 100% digitalize his company
 Gets his most work done on the internet
 Valorizes social media presence

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Media selection:

In order to promote our services and reach our customers who are mainly businesses, we
decided to resort to these mediums:

 Internet advertising while selecting those that are relevant to our business and target
(as suppose: LinkedIn, official website, official mobile-app)
 Developing a sponsorship program to encourage our current costumers to spread
word-to-mouth information about us.
 Establishment of a mailing process to inform our clients of any new offers of ENLEM

d. Price:
The price policy is considered as a very important element in launching a new product and for
the good development of the company.

Costumers attributes a value to product or a service depending on its ability to meet his needs.

Before adopting a pricing policy in our company, we sat down and discussed many advances
with the manager such as:

 Determining our marketing strategy

 Raising the price charged by our competitors
 Studying the price that our potential customers are willing to pay
 Estimating the cost price
 Calculating the optimal price

In order to put together our price policy, the manager organized a chart of average cost and
requested price of a normal project of digitalization. It is put in the following form:

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Total agent traceability solution: 30 000 MAD

Tasks Price (MAD)

Location Agent 4.000
Taking Before and After pictures in real 5.000
time
Agent security detection 10.000
Tag detection 4.000
Statistics Observation 6.000
Sending the full report: 1.000
Intervening Agent
Date
Location
..

IV. Environment analysis:

1. Internal audit:
a. SWOT analysis:
The decisions made inside the company have to consider a number of factors at once. These
factors simultaneously concern the internal and external environment of ENLEM. This
SWOT analysis will allow us to identify Strenghts, Weaknesses, Opportunities as well as
relative Threats to the project. The SWOT study is part of the strategic analysis that we are
led to carry out in order to better understand the elements having a positive or negative
influence on the company’s performance.

 Strenghts:
Expertise in terms of:

 Digital engineering
 Management
 Industrial studies

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  Preventive maintenance/ Quality consulting
 Marketing

Qualified and experienced staff

Knowledge about the targeted market

Superior personnel

Motivation and obstinacy

 Weaknesses:

Weak brand name due to its novelty

Lack of access to good software licenses used in the process of digitalization

High cost structure

Poor access to key distribution channels

 Opportunities:

Loosening of regulations

A very growing market segment

Exploring new market segments and niches

New technologies to improve clients’ experiences

Improve local industrial companies’ efficiency

Technological change and improvement due to imported revolution

Professional and qualified staff offering their services and expertise to potential clients.

 Threats:

Significant competition: on the services market we can see the clear presence of companies
offering different services, but which meet the same types of needs:

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  VISIATIV
 TECHNIU
 ABSIX.0
 LOGIKA
 WEELITE
 APEN

Technological changes that threaten to make ours services obsolete

Threats of changes in laws and regulations

Negative socio-cultural changes

b. Startup matrix:
To start with, many startup tend to nourish their business plan with studies and analyzes in
order to convince foreign investors of the company’s business and its potential to be
successful in the near future. We can find the BCG Matrix as one of the analyzes which
provides a strategy for analyzing products according to growth and relative market share. It
sure is a distinguishable study to add, but in our case as a startup, it is nearly impossible to
draw a BCG matrix because of its variable: Market share. Market shares are close to zero in
any startup. Furthermore, there can be a situation where a startup is gaining a large market
share in a niche market, or a small market share in a mass market. Market share is not the
dominant metric for a startup. Therefore, we decided to have a startup matrix instead, it is
similar to the BCG matrix, since it has four quadrants as well: Hobbyist, Consultant, Dreamer
and Money Maker measured on two variables: Feasibility and Potential. It is introduced as the
illustration below:

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ENLEM is a Dreamer in the startups matrix because of its idea and active field. ENLEM is
the type of innovative startups: success is projected in the long term but the startup has a low
feasibility in the short term. This could be problematic, as the potential of the startup cannot
be fully reached due to liquidity problems. However, we should keep in mind that many high-
tech startups are in this quadrant, where they have long time-to-market and will need deep
pocket to get their first customers.

2. External audit:
a. PORTER’s five forces analysis:
Rivalry among existing competitors:
There is strong competition in this digital transformation industry, since there is a large
number of companies offering the same service, such as:

 Visiativ, Visiativ Africa is an organization based in Casablanca; it supports French-

speaking companies in Africa throughout their digital transformation. It supports
businesses to build their HSDT (High-Speed Digital transformation) together. This
company is kind of the market leader, it usually offers different services and with a
very high price

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  ABSIX.0
 TECHNIU, TechniU is a service company within the IT environment offering many
services like a high technical knowledge in systems and operations, application
maintenance and development, outsourcing solutions and software factory.

We notice that within this sector, there is a large price and quality competition. This only
proves that our company could face many challenges in the near future as well as having a big
trouble to anchor its name in the market.

Threat of substitutes:

Regarding the substitute products of our project, we can consider our indirect competitors as
potential substitute products, but we can also talk about an alternative offer to our customers
while neglecting the competing offer. The traditional procedures are going to be still
operational in many companies not wanting to ride the wave of 4.0 industrial revolution,
which can generate a threat of substitution to our offered services. Another threat could be
embodied in the tools and offers of the next revolution wave, which is the 5.0 industrial
revolution, also known as “Industrial upcycling”. The latest industrial trend may offer the
opportunity to utilize efficiently workforce of machines and people, in synergy environment.
To go back from virtual environment to a real one, and this may create a difference. Industry
5.0 promises to valuate life standard, creativity and high quality custom-made products; the
emergence of this kind of offers may bring more to companies that could see itself renouncing
our services which can create a big threat to ENLEM.

Bargaining power of buyers:

The bargaining power of clients represents the ability of buyers to negotiate price or terms of
sale. The price have a tendency to get higher if there are few customers interested, if there are
existing substitute products, if changing the supplier is not very expensive, and if they can
produce the offer themselves.

In ENLEM case, clients are many types of business holders being active in different fields,
demanding to import digitalization services in order to transform the majority of the

19
traditional processes of their companies. ENLEM sets a price to each personalized offered
service since businesses tend to have diverse needs that seeks to be satisfied.

ENLEM may have few clients because of its recent launch, but it is expected that the situation
would increase if everything goes well. However, we should bear in mind that the majority of
our competitors or companies having the same activity as ours discuss the price according to
the type of service demanded and the type of the clients’ company. These two variables
influence rationally the price estimated. Therefore, before having an exact price for a
requested service many procedures should come to place with the supplier firm, often
discussed through a meeting on the spot.

Bargaining power of suppliers:

The bargaining power of suppliers is the mirror image of the bargaining power of buyers and
refers to the pressure that suppliers can put on companies by raising their prices, lowering
their quality, or reducing the availability of their products. It affects the competitive
environment and profit potential of the buyers. The buyers are the companies and the
suppliers are those who supply the companies.

As to our startup, ENLEM has mainly contact with five main international suppliers from
which all of the software licenses and innovative IT tools are bought. It is safe to say that
there is a low competition between our suppliers because of their reasonable and stagnant
prices.

Threat of new entrants:

As for this aspect of new entrants, we can see that there is a very low entry barrier from the
outset, almost non-existent; anyone wishing to start this activity is able to do so if it has the
necessary resources. Many entrepreneurs may enter this field and have their own business
easily, thanks to the lack of legal or regulatory restrictions that could hamper the access. In
addition, the procedures for setting up a business have become rather easy. As well as this
activity does not necessarily require having big machines or any other material resources.

20
 b. PESTEL analysis:
Opportunities: Threats:
Political  Opening a company  There is not a program
here is straightforward. for the "Go-to-market"
On the administrative [it's a marketing
plan, it takes little strategy], although we
almost four to six find that many people
weeks, if we obviously working there. Yet it is

21
 have adequate an essential element,
documents. because a startup that
does not know how to
 The country's political sell will disappear
regime is characterized necessarily. It’s as basic
by politics stability. as that. When an
Morocco is both an investor is interested in
exception and a model your project, he will ask
in the region at the level
you, first of all, if you
of political crisis already have gained a
management and the benefit. If not, he will
democratic certainly tell you to
development process
come back when you
especially after the have figure it out.
Arab Spring. However,
the king is still the
cornerstone of our
Political system.

 1 ° Capping the IR on
salaries at the rate of
20%,released for
recruitments during the
3 to 5 years following
activity launch, 2 °
Grant an exemption or
allowance to the
founders on their stock
options (part of the
capital) to encourage
the creation of startups.

22
Economic  State support for the  Declining Business
purchasing power of Confidence Index (ICE):
companies: On the the confidence index

budgetary level, the of companies (ICE),

government should give whose components

priority for expenses relate to perception of

related to investment, changes in

infrastructure and investments, work

support for purchasing opportunities as well

power of companies (+6 as financial position of

companies, stood at
billion increase for
74.8 points in the third
public salaries and +26
trimester in 2019,
billion aid to small and
compared to 74.9
medium enterprises).
points recorded during
the quarter previous
 Maintaining the growth
and 82.5 points a year
of secondary sector: At
ago, according to the
the same time, the
HCP.
sector secondary school
should maintain its
growth rate of 3.3% in
2020, following the
stagnation of industrial
activities, in particular,
those of import and
export, driven by the
vigor of domestic
demand. As for the
other industrial
activities, they should
consolidate to generate

23
 an added value of 3% in
2020.
Social  According to a study  According to a
carried out, the habits of
businesses in Morocco
are difficult to change:
The study shows that
newly created small
businesses are twice as
apt to resort to recent
technological solutions
as traditional companies
are. We can see that
even if large amounts of
investments come from
old companies of
Morocco, it is the small
companies that are
making steps towards  The fact that ENLEM
technological change.
 According to a study by
the ORF foundation,
Morocco ranks first in
terms of growth in the
technology sector in the
Africa-Middle East
region with 10%
followed very closely
by Egypt. The study
also showed that the
24
published study having
as subject the
appreciation of
Moroccan companies’
confidence degree, it
shows that there are
several fears felt by
firms towards their use
of technological
services which are
mainly the lack of
information credibility
and threat of losing
confidential data of the
organization.
is working on
transforming her
partners’ traditional
factories into “smart-
factories” using only
cameras and machines
could also bring up
many problems of
unemployment and
marginalization of a
large number of
employees.
 Kingdom captures the
largest share of
technology exports
from this region with
nearly 45% of the total.
Technological  Morocco represents  Lack of labor having
today the most good qualification
developed country in and technical skills.
the technological field  Possibility of force
throughout the African majeure. Dependence
continent. on technology means
 Growth of the possibility of
technological sector for occurrence of any
10% over the past 5 technical difficulties
years. (sometimes internal)
 The trend of that cannot be fixed.
technological
instrument use becomes
more and more a
necessity and this will
only help us to develop
further our project.
Environmental  Our startup was made  There is a risk of not
in order to save the finding the necessary
environment from information requested
companies global at a certain time if it
waste, our concept is coincides with a
founded on the low to technical difficulty or
no productivity waste maintenance day of the
and transition from companies’ softwares.
traditional

25
 administrative affairs
that needs more papers
to a computer system
that absorbs more
information in less
space and no excess.
Legal  Monitor and comply  Risk of change in
with work rights regulations soon.
regulations in Morocco.  Difficulty in
 Benefit from the rights obtaining credit from
of paid absences, right the State that does
to public holidays, not fully encourage
rights of information. this kind of activities.
 Training support of
commercial rights,
business rights, etc

c. Benchmarking summary analysis:

In order to complete a benchmarking analysis for ENLEM, we have to figure out first of all its
use and the purpose behind putting this kind of studies inside the business plan. First, Thanks
to a benchmark, you will be able to know the performance of all aspects of the business.
Second, managers are required to compare the performance of their products or processes
with those of their competitors and their partners.

We searched for national or international competitors of ENLEM that presents its financial
statements, study results and quantitative indicators on the internet. We found a research that
explains the current situation of companies using the 4.0 industrial tools in order to digitalize
the whole process of the industrial sector within their countries. This research focuses more
on countries of France, Germany and the European Union. The research took into account
many criteria such as: degrees of purchases of Cloud services. Use of RFID technology. Use

26
of ERP +++ to share information on purchases / sales. Use of GRC+++ software. Hiring ICT
specialists. Organizing ICT training.

The research shows that only 17% of the E.U purchased and works with Cloud services,
compared to 10% in Germany and France. 8% of E.U uses the RFID technology that is the
most important technology among 4.0 industry tools, compared to 3% on both Germany and
France. Furthermore, as to the ICT technologies that are the key solutions to apply the 4.0
resolution, we notice that only 33% of Germany tends to hire ICT specialists to treat the
internal industrial processes (we should bear in mind that Germany is the first country that
started and launched the 4.0 industrial revolution). Compared to France and the European
Union that marks 10% only in the same criteria. This research shows us the reality of the 4.0
industry around the world; it may be a little concerning due to the fact that even the most
advanced countries haven’t been able to move forward in the domain, but it creates a sparkle of
hope for countries like Morocco to show its’ latest discoveries throughout this new revolution.

V. Legal structure:
1. Legal form of business:
a. Legal status:
The legal status of the company is: Limited liability Company (LLC)

ENLEM is a company dedicated to digital transformation of firms inside the Moroccan

territory. It is a fresh startup introducing a new concept of digitalization for industrial affairs
in Morocco. The manager chose the legal status of a limited liability company to apply for
ENLEM, due to its’ many beneficial advantages for fresh starters.

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 b. Choice demonstration:
ENLEM is a small business, and given the economic fabric of the country, we chose LLC
thanks to the advantages it provides for entrepreneurs. A legal hybrid form that takes place
halfway between the partnership and the limited company. Among these advantages, we
mention:

 Limitation of the financial risk of partners (unlike civil companies): The main
advantage of the LLC status is to limit the liability of the partners. They freely set the
amount of share capital and therefore the contributions they want to make to the
company’s constitution and are only liable for the amount of their contributions.
 No legal minimum seed capital is required (unlike S.A Corporation): the company’s
associate(s) could start their firm without having a seed capital to proclaim.
 Legal security for Limited Liability Companies (LLC): The Moroccan law strongly
frames the status of the LLC; there are very few possible exemptions for the clauses of
the status of LLC in order to protect the partners. This is a relatively standardized
operation.
 Contributions can be in kind. An auditor values them if their net worth exceeds half of
the capital in cash.
 For the constitution, it is necessary to bring together at least two partners, but it is
possible to constitute an LLC with a single partner. However, the number of partners
cannot be more than 50. They can be both natural and legal persons and may or may
not be residents of Morocco.

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 2. Seed capital:
a. Investment statement:

Seed capital
Seed capital estimation Sum
INVESTMENT
Land -- --
Building -- --
Workshop -- 4.000
Industrial equipment/ -- 50.000
machines
Website -- 3.000
Others Advertising costs 1.500
Communication platforms 2.000
costs
Total worth of investments 60.500
b. Future investments framing:
Investment good Details Price
Workshop Area: 200 m² 4.000
Equipment and machines 436.600
LabVIEW License 60.000
Solid WORKS License 70.000
PCB range CNC machine 39.600
Industrial equipment CNC milling machine 130.000
CNC lathe 85.000
Workshop tools 10.000
2 computers with a high 32.000
processor performance
1 computer (average) 10.000
Advertising costs 1.500
Online advertising ( 1.500
Others Facebook and google Ads)
Communication platforms 2.000
costs
Net worth of future 444.100
investments

29
 c. Details about funding sources:
The seed capital used to launch ENLEM was basically collected throughout equity of both
ENLEM associates. Both partners did not feel the need to be financed by a bank loan, a fund
from a credit institution nor a substantive lender. They believe that ENLEM may need to
resort to these solutions in a weakness context or in an investment opportunity.

Seed capital  Equity  Own savings of both associates  100.000 MAD

VI. Organization and management:

a. Staff requirement:
Function Tasks and responsibility
 Oversees regional and local sales
managers and their staffs
 Resolves customer complaints
regarding sales and service
Sales manager  Prepares budgets and approve budget
expenditures
 Monitors customer preferences to
determine the focus of sales efforts
 Analyses sales statistics
 Projects sales and determines the
profitability of products and services
 Determines discount rates or special
pricing plans
 Plans and coordinates training
programs for sales staff

IT Engineers manage organizations’

computer systems, including software,
IT development engineer
hardware and networks. They may be
responsible for designing, installing, and
supporting the entire system or may

30
 specialize in one area of the computer
system, such as security infrastructure or
telecommunications.
 Identifies and Resolves System
Issues
 Develops Systems
 Documents Work
 Manages Projects
 Create a variety of models and
diagrams (such as flowcharts).

b. Company’s organizational chart:

Associate 1 (CEO and

Associate 2
manager)

IT engineer

Industrial computer
technicien

Network and
telecommunication
technicien

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c. Staff cost estimation:
Function Responsibilities Cost
IT Engineer: helps to address 25% of total gross profit
the issues of the workforce for
PC equipment, programming
and systems and
administration. They work to
create, test, introduce, design
Associate 1 (CEO and and investigate PC equipment
Manager)
and programming. As a feature
of this procedure, they work to
make legitimate
documentation, processes and
other systems to help different
representatives make the best
utilization of software and
applications.
Engineer and technical 25% of total gross profit
manager: Assists management
in creating training materials
pertaining to computer
troubleshooting and usage.
Organizes and file documentation
Associate 2
pertaining to warranties and
instructional guides for computer
hardware.
Attend in-person meetings
with clients to analyze,
troubleshoot and diagnose
hardware problems

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  Helps monitoring and Gross salary: 8407.00 MAD
support of IT projects
(Product, system and
service)
IT Engineer
 Work to create proper
documentation,
diagrams and other
detailed instructions
for hierarchical inferior
technicians.
 Designs and Gross salary: 4383.5 MAD
implements IT
developments.
 Installation,
Industrial computer programming and
technician
maintenance of the
computer installation.
 Supports the
deployment of
solutions.
 installation and Gross salary: 4383.5 MAD
commissioning of
computer network and
telecommunications
Network and
telecommunication systems
technician
 Connection of all IT
and telephone devices
to the external
network, software
implementation

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VII. Financial projections:
1. Operations and cost analysis:
a. Operating sales plan:

Unit price

SERVICE1 30.000 MAD

AgentTrack

SERVICE2 40.000 MAD

FleetManagement

SERVICE3 35.000 MAD

QualityMonitor

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 b. Annual operational cost plan:

1 2 3 4 5 6 7 8 9 10 11 12
Staff cost 26 301 26 301 26 301 26 301 26 301 26 301 26 301 26 301 26 301 26 301 26 301 26 301
Others 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Total cost 27 301 27 301 27 301 27 301 27 301 27 301 27 301 27 301 27 301 27 301 27 301 27 301
1 2 3 4 5 6 7 8 9 10 11 12
30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Price
Service n°1
AgentTrack Quantity 0 0 0 0 1 2 4 6 8 8 8 8
Turnover 0 0 0 0 30000 60000 120000 180000 240000 240000 240000 240000
Price 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000
Service n°2
FleetManagement Quantity 0 0 0 0 1 2 4 6 8 8 8 8
Turnover 0 0 0 0 40000 80000 160000 240000 320000 320000 320000 320000
35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000
Price
Service n°3
QualityMonitor Quantity 0 0 0 0 1 2 4 6 8 8 8 8
Turnover 0 0 0 0 35000 70000 140000 210000 280000 280000 280000 280000

Total turnover 0 0 0 0 105000 210000 420000 650000 840000 840000 840000 840000

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 2. Profit margin:

1 2 3 4 5 6 7 8 9 10 11 12
30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Price
Service n° 1
Quantity 0 0 0 0 1 2 4 6 8 8 8 8
Turnover 0 0 0 0 30000 60000 120000 180000 240000 240000 240000 240000
Price 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000
Service n° 2
Quantity 0 0 0 0 1 2 4 6 8 8 8 8
Turnover 0 0 0 0 40000 80000 160000 240000 320000 320000 320000 320000
35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000
Price
Service n° 3
Quantity 0 0 0 0 1 2 4 6 8 8 8 8
Turnover 0 0 0 0 35000 70000 140000 210000 280000 280000 280000 280000

Total turnover 0 0 0 0 105000 210000 420000 650000 840000 840000 840000 840000
Operational cost 27301 27301 27301 27301 27301 27301 27301 27301 27301 27301 27301 27301
Profit -27301 -27301 -27301 -27301 77699 182699 392699 622699 812699 812699 812699 812699

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3. Starting balance:

STARTING BALANCE
ASSETS AMOUNT CAPITAL AND LIABILITIES AMOUNT
Fixed assets 20.000 Equity 100.000

Licenses assets 40.000 Loans -

Intangible assets 15.000

Others - Others -
Total fixed assets 75.000 Total of permanent funding 100.000
Current assets 2.000 Short-term debts -
- -

Supply Suppliers
Receivables 3.000 Due taxes -
Treasury 10.000
Total current assets 15.000 Total of short-term debts -
Bank 10.000
Total 100.000 Total 100.000

37
VIII. Appendices:

38
39
IX. References:

 L’industrie du futur: Une compétition mondiale, Thibaut Bidet-Mayer, editing 2016-

La Fabrique de l’industrie. 88 pages-Paris.
 https://www.ni.com/en-lb/shop/labview/select-edition.html
 https://www.optimachines.com/centre-de-fraisage/12245-fraiseuse-optimum-mh-25-
cnc-kit-complet.html
 https://nouvelleindustrie.wordpress.com/2017/10/30/de-la-digitalisation-
transformation-numerique-et-ce-genre-de-choses/
 https://corporatefinanceinstitute.com/resources/knowledge/strategy/bargaining-power-
of-
suppliers/#:~:text=The%20Bargaining%20Power%20of%20Suppliers,the%20availabi
lity%20of%20their%20products.
 https://www.smartinsights.com/marketing-planning/marketing-models/pestle-analysis-
model/
 https://www.leconomiste.com/article/1028598-technologie-le-maroc-un-champion-
regional
 https://www.captaincontrat.com/articles-creation-entreprise/statut-
sarl#:~:text=L'avantage%20principal%20du%20statut,du%20montant%20de%20leurs
%20apports.
 https://wecount.ma/fr/sarl-maroc
 https://www.careerexplorer.com/
 https://www.jobhero.com/
 https://www.cdiscount.com/bricolage/r-graveur+cnc.html#_his_
 https://fr.made-in-china.com/co_tacrystal/product_China-Cheap-and-Economic-CNC-
Lathe-Machine-CK6140A-_hoghhnnyy.html
 https://www.entrepreneur.com/
 https://goldeneggcheck.wordpress.com/2016/07/20/introducing-and-explaining-the-
golden-egg-check-matrix-for-startup-strategies/
 https://medium.com/golden-egg-check/introducing-and-explaining-the-startup-matrix-
for-startup-strategies-33067370a7ea
 https://www.businessnewsdaily.com/5693-bcg-matrix.html

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