COHORT A5

Business Plan

Peer Group F
Kudakwashe Solomon Mavuru
Nehemie Niyomahoro
Adrianna Ramamonjisoa
Contents:

Executive Summary 1

Products and Services 2

Industry and Market Analysis 5

Competitive Analysis/Advantage 8

Marketing and Distribution Plan 9

Management Plan 11

Operating Plan 13

Financial Plan 14

Legal Plan 15

References and Citation 17

Appendices 18
Executive ​Summary​
SAFE HOME is a home automation company located at Kigali,Rwanda that sells and helps
install retail smart devices (smart plugs and smart switches). Unlike ordinary home automation
companies, we aim to provide cheap, easy to use, cutting edge technology and services that
reduce and monitor the use of electricity around homes. According to UCI (2015) report on
Characterization and potential home of home energy management (HEM) technology,the home
energy management (HEM) market is rapidly expanding alongside substantial investment to
improve energy efficiency and upgrade electricity infrastructure to smart grid.These changes
enable consumers to take larger or the greater control of their energy use, which can be enabled
through the use of Home Energy Management System (HEMS). We saw this as an opportunity
to penetrate an unexplored new market here in Rwanda.

The​​Problem

When we were doing our research , we found out that for the past three months, ALU students
living in the shared houses have been using more electricity than the estimated budget of
$50.This resulted in them incurring high bills and sometimes running out of power every
month.The reason behind all this was that they would always leave the lights and other
appliances on when going to sleep or when going to work or school in the morning. After a
solid problem analysis and evaluation,we discovered that this was the problem for most of the
middle-aged working and schooling class in Rwanda.

Our​​Solution​​and​​Product​​Description

We want to introduce modified smart devices(smart plugs and smart switches) in the student
residences that can be controlled with the help of an application on a smartphone/laptop. Our full
service works in four simple steps. Step one: We offer a home consultation service to see how
smart plugs and smart devices the customers house might need. Step two :The customer
purchases the required package from us. Step three: We help to install the smart plugs and smart
devices as well as the application in the house of the customer.Step four : We help to maintain
the system in cases of problems. The application that controls the smart plugs and smart switches
enables the user to turn on or off his appliances and lights as way as schedule a time he/she might
want them on. This entire system works over a wifi connection and has an knowledge center that
will serve to provide information on the different ways that an individual can save energy around
the house .

Company Overview

Company Slogan
“Save energy the smart way”

Company Vision
SAFE HOME aims to be the number one primary supplier of home automation systems on the
continent within the next 10 years. We aim to revolutionise the way that people save electricity
in homes around the continent as well as help them keep up with technological advancements
around the world.

Company Mission

To offer a unique home automation package at a revolutionary price, while leading the way for
environmentally-conscious businesses.

Products and services

We want to introduce modified smart devices(smart plugs and smart switches) in the student
residences that can be controlled with the help of an application on a smartphone/laptop. Our full
service works in four simple steps.Home Consultation,Purchases of required smart package,
Installation, Monitoring and Maintenance
Product Features.
The smart devices package that we offer will have a mobile app which enables the turning off of
lights and appliances from anywhere.It also allows you to monitor for energy usage.It requires an
existing home WiFi network and that’s why we decided to partner with Liquid telecom to help
with the connection for customers that do not have.Our smart plugs and smart devices supplied
from Tp-link have a space saving design and are easy set up and use. One of our service is to
help maintain these smart devices in terms of faults.

Pricing analysis
SAFE HOME will use a combination of pricing options and revenue streams to achieve our
financial goals. For the first three services we offer (home consultation,purchases and delivery
of the smart devices and installation), we will have a three-month installments payment plan
for our customers. This plan on average will cost on average $60 but will vary with factors such
has how many smart plugs and smart devices the customer has purchased.Since we help some
of our customers do not Wifi connection,we approach Liquid telecom with our customer and
they give us 3% of the money they pay for the installation.In terms of maintenance and
problems with the smart devices we have a 1-year warranty but after that the customers have to
pay for our service.

Industry ​and​Market Analysis

SAFE HOME is in the home automation industry, a fast growing global industry that is trying
to combine two fundamental​​parts​​of​​today’s​​world​​—​​natural resource management​​and​
​technology.

Primary​​Research

In interviews with representatives from our target market, including ALU students living in the
shared houses,schools’ ops teams, natural resource management organizations and electricity
utility companies such as EUCL here in Rwanda, there was a general consensus that the need
for better and efficient technology that helps saves power and monitor the cost of electricity
being used especially given the increased usage of smartphone apps. Consumers want to
customized, they want professionally installed systems, which are at their convenience and easy
to use.There was a repeated emphasis on developing a solution that saves time, energy efficient
and a system that is easy to operate.

Market​​Size

Global Home Automation Market was valued at $39,607 million in 2016, and is projected to
reach at $81,645 million by 2023, growing at a CAGR of 11.2% from 2017 to 2023. Home
automation is utilization of intelligent terminals, which is automation system to control home
appliances and equipment. Increase in awareness for efficient energy usage, rise in electricity
prices, and technological advancements are expected to drive the home automation market
growth. Moreover, increase in safety & security concerns fueled the adoption of home
automation system, thus boosting the market growth.

However, lack of awareness about home automation products and high initial investments in
home automation are expected to hamper the home automation market growth. Increase in
adoption of automated services is expected to provide lucrative opportunities for the global home
automation market.

Source : https://www.alliedmarketresearch.com/home-automation-market

Key P
​ layers​​and​​Stakeholders​

On a global level,some of the key market players in home automation market are AMX, ADT
Pulse, Control4 Corporation, Crestron, Vera, HomeSeer, SmartThings, Frontpoint, Savant,
Siemens AG, Johnson Controls, Honeywell.On a regional level, looking at Africa and
particularly in East Africa, some key players in this space are Touch Home Automation,
Parallel Systems (Pty) Ltd and Endeavour Africa Limited but currently in Rwanda there is none
that we have found.

Industry​​Trends​​and​​Challenges
Some major trends and factors that are seen to contribute to the current and projected home
automation industry​​size,​​and​​that​​are​​relevant ​to​our​​market o​ n​​the​​African​continent​​​include:

1. Mobile p​ enetration​

2. Internet​​accessibility

3. Increased​​use​​of​​technology​​in​homes.

That​​being​​said,​​some​​other​​challenges​we​envision​​include:​

1. Cost​​of​​internet​​accessibility

2. Technology​​competency a​ nd​expertise​

3. Culture: change is difficult and most people have come to see devices as an hindrance
rather than a tool to make lives easier. We might need to at some point begin a campaign that
educates ​people​​on​​the​​power​​of​​ smart devices​​​on​​the​​continent.

Partnerships

We have identified some of our partners to be tp-link and CNET.The aim is to have a good
supply of smart devices that are high-quality, value-added, feature enriched . We recognise the
need to also have a wifi connection at the house of the user so we decided to have Liquid
Telecom as a partner to help us set up a connection for customers that do not have.

Competitive ​Analysis/Advantage​

As noted in the Industry Analysis section above, the home automation industry is a growing
industry with a steady increase in interest and innovation within the industry. A globally
projection to reach at $81,645 million in revenue by 2023, growing at a CAGR of 11.2% from
2017 to 2023, Allied Market Research (2017),shows not only that the industry growing is
indeed growing, it is also shows that it is an attractive investment opportunity. It is no wonder
that the number​​of​​home automation​​companies​​are​​equally​​increasing.
 Source : https://www.alliedmarketresearch.com/home-automation-market

SAFE HOME’s​​Place ​in​​the​​Industry​

SAFE HOME is uniquely placed in the intersection between resource management, culture and
technology on the African continent. With approximately 15000 houses with WIFI connection
in Rwanda and an approximate $900 purchase of a smart devices per home, we have 13,5
million USD market potential. Our product offering is yet untapped in Rwanda.

The​​Competition

SWOT ANALYSIS

Touch Home Parallel Systems Endeavour

Automation, (Pty) Ltd Africa Limited Safe Home

Website https://www.touchhome.c http://www.parall http://www.endea Nehemie054.github.io

o.za/ elsystems.co.za/ vourafrica.com/

Installation
Fees
✔️ ✔️ ✔️ Included in the a fill
automation package

Professional
Installation
❌ ❌ ❌ ✔️
options

Pricing Starter kits range from requires a bid basic automation Starter kits range from
$149.99 to $249 and from a dealer, but setup will cost $180 to $200 and include
include a Hub. prices generally around an installation fee
start at $1,000 $2,000–$4,000,
per room. with an average
system running in
the
$8,000–$10,000
range.
Warranty Only 1-year warranty ❌ Only three-year
warranty (versus a
Only 1-year warranty

lifetime warranty)

Strength Famous for its online Cheap They have a good Cheap and it includes
store in South installation fees warranty offer. home consultation
services.
Africa/cheap

Weaknesses No professional No attractive Do not have an Unreliable marketing

installation options. website online store strategies

Opportunities Use of social media to They do not help Have good clients The industry is still new in
promote brand equity. with the that they can use Rwanda.
installations and for strategic
maintenance partnership
marketing

Threats Products are not It is still new in Potential Competition

diversified/Competition. the market and --- from companies like
has many Endeavour Africa Limited
competitors in if they expand
the country

Our​​Unique​Advantage​

Looking at these competitors, our main differentiator and unique advantages are that at SAFE
HOME we have professional installation options, we give a 10-day trial period with full refund,
we have a 1-year warranty and our services are cheaper. We also link up our customer to a WIFI
company(Liquid Telecom) which contributes well to our excellent customer service.

Marketing ​and​​Distribution​P
​ lan​`

SAFE HOME aims to position itself as the go-to destination for high quality and unique home
automation packages, focusing on reducing electricity costs. To do this, we will first begin
building our brand, credibility, and followership in this niche by launching a social media
campaign on Facebook,Twitter and Instagram. On our dedicated social media channels, we will
create and upload unique content daily.

Marketing and​​Distribution​​Strategy​

In the first six months of launching our social media campaign, the target is to have 3,000
followers on all platforms and 800 email subscribers. With this traction, we will begin
developing a mobile-friendly web platform to co-host our video content and also host other
forms of content including graphics and a weekly news updated titled, ‘Control47’. With this
web platform, our target reach in​six​​months​​is​​projected​​at​​7,000 ​unique​​​page​​visits​​and​​1,000​
​subscribers.

Within a year, we hope to start speaking engagements in communities around Rwanda. At these
events we will make use of offline ads such as flyers. In the first 3 months following the launch
of this feature, we estimate we will have 250 new subscribers with a​​quarterly​​growth​​rate​​of​​7%.

Although our initial focus will be on the Rwandan market, our content will be immediately
relevant to other locations, as such, within five years, we will expand to multiple markets -
moving from Rwanda to Kenya, Uganda and beyond. In ten years, we will have presence within
every major region in Africa: North, East, West, Central and Southern Africa with regional
headquarters​​in​​each.

Sales ​Strategy​

Our sales strategy comprises of direct sales to customers at our office, online advertising and
sales, cold calls, hosting events and getting stands at fairs and conferences to promote and sell
our products. We will generate leads through all these channels and we aim to close them by
calls, email marketing, and​​in-person.
As such (and in line with our pricing) we will be targeting higher income families since some of
the sales will be done on the online shop. Smartphone penetration in Rwanda is relatively low, ,
with roughly 1,478,216 Internet Users in Rwanda (2016*) but will try as much as possible to
maximum the use of this available population and given the partnership with Liquid Telecom
this number is likely to increase.

Source : http://www.internetlivestats.com/internet-users/rwanda/

Pricing​​Plan

Our pricing plan is purchase-based dependent on needs and the target user on a three month
payment plan. We have identified three (2) broad categories of users to target:family,​​and​
​organisation​s.

Below​​is​​a​​detailed​​breakdown​​of​​this​​pricing​​plan:

Level Paid Paid (organisation package)

(Family​​Package)

Cost $180 - $210 (but depends on Yet to be decided (future plan)

the required number of smart
devices)

Management ​Plan​
The management team of SAFE HOME is currently made up of its three founders.We are a
group of three all of which we originate from different countries and backgrounds. Kudakwashe
Mavuru will serve as the President and Chief Executive Officer. He is the co-founder of
SPECTRA, a solar energy company launching in March and with corporate experience in sales
,marketing and management,when he worked for Staycute Investments,Mr. Mavuru is a
visionary. Mr. Nehemie Niyomahoro will oversee SAFE HOME’s technical operations and
identify any other project opportunities around Rwanda.He is currently studying for a BSc in
Computer Science at the African Leadership University. SAFE HOME’s marketing will mostly
be handled by Ms. Adrianna Ramamonjisoa. She has traveled extensively around the
world,including the US where she forged business partnership with students working on the
same problem of saving energy in homes in smart way.

Our biggest gaps as founders are in technology, finance, and other technicals. To complement
the skills already available in SAFE HOME, we plan to expand our management team to bring
in an expert in home automation technicalities We also plan to bring someone with financial
expertise in the retail sector, and someone with marketing experience in the sector onto the
management team to complement our skills. Our team in the future will largely be made up of
technicians and retailers across​​the​​continent,​​with​​regional​​sales​​and​​marketing​​teams,​​and​​a​
​centralised​​managerial​​team.

We​​are​​currently​​curating a​ n​advisory​​board​​to ​include:​

● A​home automation expert

● A​n ​electrician

● A ​board​​member​​with​​a​​legal​​background

● A ​financial​expert(esp in the retail sector).

Initially our advisory board will be made up of mostly East Africans as this is where we will
launch, but​​as​​we​​expand​​to​​new​​territories​​we​​will​​form​​additional​​regional​​advisory​​boards

Our management philosophy will focus on a people-centric, flexible organisation, with a

network of​​freelancers​​and​​a​​dispersed​​team​​that​​can​​work​​from​​anywhere. Over the next five
years as we expand to multiple regions, we will flesh out the team to grow to twenty-six people
including the founders at the end of the five years. Our future org​​chart​​is​​shown​​below.
Operating ​Plan​
Current stage of Development

This business plan is the first step in our operating plan.From start we will be operating
remotely in our various homes. Because the products do not as require no intensive capital
expenditure or physical assets, we will use the tools available to us including our personal
internet connections,​​personal​​laptops​​and​​mobile​​devices.

As things progress, we will need to rent out a space that acts both as an office and as a store for
people to come and buy, we will start off in a co-working space to keep overheads low. One risk
we have identified is the founders being located in different countries. When we begin
operations, however, the company will be initially headquartered in Kigali, Rwanda since​​it​​is​
​our​​primary​​market​​and ​as​​such,​we​​would​​need​​to​​be ​close.

Business ​Process
Currently, our day-to-day activities involve research and development of a pilot for our service
launch. It also involves developing effective marketing strategies -- including making purchase
calls to TP_link(our supplier), and building relationships within the home automation sector. As
we grow, the main activities that will form part of our​​day-to-day​​operations​​include:

1. Home Consultation

2. Technology
3. Sales,​​marketing​​and​​distribution

4. Finance

We will operate a full time outfit that runs from 9am to 5pm daily. We will need to purchase
windows desktops for financial transactions. We will also need to​​install​​high​​speed​​internet​
​connection​​and​​ensure​​that​​the​​office​​has​​steady​​power. To run this operation, we will need an
initial team of 5 more people, in addition to the founders. These will be a finance person, a
technician and a sales and marketing​​personnel​​and​​an​​accountant.

Financial ​Plan​
For our initial proof of concept, we need ten thousand USD . This investment would be used to
set up our online platforms (a website and online store ), to hire technicians who will set up and
install the smart devices in the customers’ houses and accountants for sales, marketing team and
distribution. We expect that this amount would give us 3 months in which to conduct more in
depth research and develop a stronger customer base.

Our revenue streams will consist of a three-month payment plan. We will also provide
maintenance services for our customers in terms of damage or faults. Since we help some of
our customers do not Wifi connection,we approach Liquid telecom with our customer and they
give us 3% of the money they pay for the installation.Our monthly costs will include
maintaining our website, paying the staff workers, rent , shipping costs ,insurance and
purchasing other electronics and accessories.

More detailed information can be found in our Financial Model

Legal Plan
Seek Legal Advice
As a start up we must keep up with new developments in local, state, and federal business law.
Laws can change quickly so you must adapt quickly or risk losing competitive advantages. We
are planning to hire a part-time qualified business attorney to help you so you can keep doing
what you do best—running your business.Hiring an attorney with knowledge in the area of
retail business can do more than just keep us updated on changes in the law. They can also help
us make informed business decisions.We must conform legally by complying with all
applicable licenses, zoning ordinances, and other legal regulations.

Legal Business Structure

This is not a decision to be taken lightly; the structure we choose will have legal and tax
implications. We must consider the size and location of your business, risks and liabilities, and
our tax requirements. For now we are a “Sole Proprietorship”.

Obtaining a License and Permit

According to the Rwanda Development Board, the process involves simultaneously obtaining
the certificate of incorporation (business registration), Tax Identification Number (tax
registration) and the Social Security registration for employee pension submission. The
registration of a local company is free.All they require is a copy of an ID/Passport and complete
two copies of Memorandum of Association Art 14 (downloaded from the RDB website).

Sign Non-Disclosure Agreements

Confidentiality and non-disclosure agreements are essential since we require financing for our
business. Before entering into any contracts, it’s a good idea to have our financial institution
sign a confidentiality agreement so that our businesses information is kept private.

Trademarks and Patent

Since we have our own unique inspiring logos and slogans we might require trademark
rights.We will be introducing new devices here in Rwanda so there is also need for a patents.
This is done at the Rwanda Development Board for RWF43000. (source :
http://businessprocedures.rdb.rw/procedure/33/31?l=en )

Equity (Shares and Stocks)

The company’s initial stock types and distribution will be as follows :

Founder’s Stock: The shares will be divided between the three co-founders ( Kudakwashe
Mavuru, Nehemie Niyomahoro and Adrianna Ramamonjisoa) in the ratio 40-30-30 %
respectively.
We are also looking into including a preferred stock for our potential investor since we are
considering to allow the holders special rights (e.g., voting on corporate governance issues and
choosing board associates);This stock will be first to be paid out when a major financial
development occurs (e.g., the company is sold).

References

1.Penn State Physical Plant,(2015). Penn State Physical Plant Website

(Sustainability)[online].[Accessed in November 2017]. Available fom:
http://www.opp.psu.edu/services/energy/energy-usage

2.Belkin,(2018). Wemo Mini Smart Plug[online]. [Accessed in November 2017].Available from:

http://www.belkin.com/us/p/P-F7C063/

3.Cnet, (2018). Best Smart Home plugs and switches 2018 [online].[Accessed in Dember
2017].Avalable from:
https://www.cnet.com/topics/smart-home/best-smart-home-devices/best-smart-plugs-and-switche
s-of-2016/

4. Hickey.S,(2016). The Innovators: The smart plug socket that saves you money and gives peace
of mind.[Accessed in November 2017]. Available from;
https://www.theguardian.com/business/2016/mar/13/the-innovators-the-smart-plug-socket-that-s
aves-you-money-and-peace-of-mind

5.References for Businesses ,(2018). Energy solutions Company [online]. [Accesed December
2017].Available from :
http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-08/Energy-Solutio
ns-Company.html#ixzz57sLFGaVo

6. UCI, (2015). Characterization and Potential of Home Energy Management (HEM)

Technology[online]. [Accessed 14 December 2017]. Available from:
http://www.cusa.uci.edu/wp-content/uploads/2015/02/PGE-HEMS-Report.pdf

7. SAFE HOME, (2018). Customer Survey Responses [online]. [Accessed 14 December 2017].
Available from:
https://docs.google.com/spreadsheets/d/1F_6Jp0Podaw48Za4xh6hOhAh4AvWaGk06188gTiHz2
Y/edit?usp=sharing

8. Allied Market Research, (2017).Home Automation Market Overview[online]. [Accessed 31

March 2018]. Available from: https://www.alliedmarketresearch.com/home-automation-market

Appendices
1. Financial Model
2. Prototyping Worksheet
3. The Prototype
4.Design Metrics Comparison
5. Founders Resumes
6. Design Challenge Worksheet
7. Business Model Canvas