BUSINESS DEVELOPMENT PROPOSAL

FOR
XTRACASH
Executive Summary:

Xtra-cash has a direct partnership with Boctrust Microfinance Bank.

By courtesy, Boctrust microfinance bank will help Xtracash deploy
modern customer acquisition strategies in addition to providing
other professional banking services.

This business proposal will analyze how Xtra-cash intends to achieve

at least 50,000 service users monthly using modern marketing
strategies.
Company Description:

Xtra-cash offers Quickteller customers a convenient and

instantaneous way to obtain cash loans to repay, purchase and pay
bills online. Loans are reserved on their Quickteller accounts, used
to pay bills, acquire goods, buy airtime, and cash out.

Xtra-cash intends to offer a minimum loan amount of 1,000 and an

upper limit of 10,000 for starter customers with no collateral or
guarantor.

Users can repay loans through Quickteller ATM, mobile transfer, and
loan bank transfer. Users can access loans from Xtra-cash when they
have limited amounts to pay bills at Quickteller.
Goals and Objectives:

• To offer flexible loans to Quickteller customers

• To give minimum loan of 1,000 and above.
• To increase Xtra-cash subscribers to at least 50,000 users monthly.
• To partner with Boctrust Microfinance bank for professional
banking and marketing support services.
• To breakeven and achieve the expected ROI.
• To be pioneer & partner of Quickteller.
• To bring users from Quickteller to Xtracash for loan and nurture
email lists for future transactions
Industry and Product Analysis:

• Nigeria's online platforms have disbursed over a 160 billion naira

with triple ROI gained from the prior investment.

• Providing loans & payment infrastructure, processing, insurance,

and digital cash are innovative solutions Quickteller has
implemented to keep staying on the top .

• Increasing the number of Quickteller subscribers depending on

Xtra-cash as an alternative source of funding for bill repayment
has become an essential requirement for growth.
SWOT Analysis

Strength Weakness Opportunity Threat

Some
Progressive
Lack of regulatory government
Quick services growth in the
framework regulations are
lending sector
unfavorable

Inadequate data Strategic Low access to

Support and
protection & Partnershipss funding &
communication
privacy with banks investors

Cybercrime &
Openness and Entry to
excessive
Transparency Blockchain
borrowing
Customer Analysis:

Quickteller in recent times has managed to improve engagement

and customer conversion to 66% with its Netcore’s smart-tech
software

More than 1 million customers visited Quickteller in July 2021 from

Nigeria which made it of the most utilized online payment platforms
in Nigeria

Xtra-cash targets Quickteller's huge customer base to integrate

users ATM to obtain loans either into their bank accounts or
Quickteller accounts.
Tailored Marketing Strategies:

To meet marketing targets, Xtra-cash will promote its endeavors

online to more millennials and Gen Z (ages 18 to 35. In that case,
Xtra-cash will focus more on educated subscribers.

Our marketing plan will target 38% formally segmented employees

and 62% SME businesses. To ensure that e-commerce businesses are
receiving loans from Xtra-cash, we intend to offer users with
Quickteller active cards & USSDs an opportunity to do e-commerce
shopping and mobile transactions with Xtra-cash loans
 Inbound Marketing Action Plan

• Inbound Marketing methodology involves 4 customer engagement stages which are

Attracting, Converting, Closing & Delighting audiences in your target segment.

1. Inbound Methodology to ATTRACT

This action plan includes services meant to attract visitors to the Xtrascash brand
• Development of a Growth Driven Website/Mobile App
• Optimizing Your Website/App for Search Engines
• Amplifying Content with Social Media
• Use Content Marketing with a Purpose
• Use Paid Online Adverts
 Cont. Inbound Marketing plan

2. Inbound Methodology to CONVERT

This action plan includes services meant to convert a portion of your
audiences after you have attracted them
• Landing Page & Conversion Rate Optimization
• Enticing Clicks with Calls-to-Action
• Guiding the Next Step with Thank You Pages
 Cont. Inbound Marketing plan

3. Inbound Methodology to CLOSE

This action plan includes services meant to convert a portion of your
registered leads into actual customers
Using CRM & Marketing Automation
Taking Your Online Marketing Process Inbound

4. Inbound Methodology to DELIGHT

This action plan includes services meant to covert a portion of your paying
customers into advocates by creating a user-centric customer experience
The Pillars of Delight
I. Learn how to delight your prospective customers
II. Implement modern customer referral and loyalty systems
 Review & Critique

Little has been said about its loan provision services as such users
are likely to log out of offers when they cannot afford orders. Xtra-
cash tends to offer an optimistic resolution to Quickteller users
wishing to complete payment by obtaining low-interest loans.

Xtra-cash is exploiting this market opportunity to offer alternative

financing to Quickteller users. It is significant and recommended to
partner with other financial institutions, marketers and business
strategists that can help Xtracash reach its goal.
Financial forecast: Assumptions

- It is expected that Xtracash will onboard 600,000 in its first year,

700,000
customers in the second and 800,000 customers in the third year.
- We have between 1,000 to 10,000 Loan Category.
- Xtracash loan is expected to be 10% from quick teller.
- Xtracash loan will be given to customers at 15% interest rate.
- Tax is expected to be at 15%
- Insurance will be at 5% of the value of assets annually
Pre-Scale up Expenses:

START UP ACTIVITIES DESCRIPTION/ DETAILS AMOUNT N

Software Value Assumed Value of Xtracash Tech 8,500,000

Inflation 15% Increase in the value of 1,275,000

software
Insurance 5% of software 425,000

Total
10,000,000
Funds Needed for Business Scaleup

Item Description/Details AMOUNT N

Marketing & Digital Assets Marketing Costs 28,329,500

Cost Forecast 1 Month Cost Forecast 220,454,545

Total value of Investment 248,784,045
Sources of Fund
Source Amount Percentage
Funds from Quickteller 220,454,545 88%
Investment 28,329,500 12%
Total Funds Sourced 248,784,045 100%
Sales Forecast:

N1,000 to N9,000 Naira loan values values values

Sub Total (N) See document See document See document

10,000 Loan
No. of Customers 10,909 12,727 14,545
Loan (N) 10,000 10,000 10,000
Loan Amount (N) 109,090,909 127,272,727 145,454,545
Interest Rate 1.15 1.15 1.15
Sub Total (N) 125,454,545 146,363,636 167,272,727

Grand Total 2,760,000,000 3,220,000,000 3,680,000,000

Cost Forecast

N1,000 to N9,000 Naira loan values values values

Sub Total (N) See document See document See document

10,000 Loan
No. of Customers 10,909 12,727 14,545
Loan (N) 10,000 10,000 10,000
Loan Amount (N) 109,090,909 127,272,727 145,454,545

Interest Rate 1.15 1.15 1.15

Sub Total (N) 125,454,545 146,363,636 167,272,727

Grand Total 2,645,454,545 3,086,363,636 3,527,272,727

Marketing Expenses Schedule

Year 1 2 3
N N N
Website & Mobile App 2,500,000 - -
SMS Marketing 500,000 550,000 600,000
Search Engine Optimization 750,000 825,000 900,000
CRM & Marketing Automation 750,000 825,000 900,000

Google Ads 1,500,000 1500000 1,500,000

Youtube Video Marketing 1,000,000 1100000 1,210,000
Social Media Maketing 1,500,000 1,650,000 1,815,000
Nairaland Forum Ads 750,000 825,000 907,500
Miscellaneous 1,200,000 1,320,000 1,452,000
TOTAL MARKETING EXP. 7,950,000 8,595,000 9,284,500
 Profit Forecast:
Year 1 2 3
N N N N
Revenue Forecast 2,760,000,000 3,220,000,000 3,680,000,000 9,660,000,000

Cost Forecast 2,645,454,545 3,086,363,636 3,527,272,727 9,259,090,909

Gross Profit 114,545,455 133,636,364 152,727,273 400,909,091

Expenses
Operating Expenses 10,450,000 8,595,000 9,284,500 28,329,500
Depreciation 3,666,667 3,666,667 3,666,667 11,000,000
Insurance 425,000 425,000 425,000 1,275,000
Total Expenses 14,541,000 12,686,667 13,376,167 40,604,500
Net Profit Before Tax 100,003,788 120,949,697 139,351,106 360,304,591
Income Tax 15,000,568 18,142,455 20,902,666 54,045,689
Net Profit After Tax 85,003,220 118,448,440 123,904,732 306,258,902
 Break Even Analysis
Year 1 2 3
Number of Customers 600,000 700,000 800,000
N N N
TOTAL REVENUE 2,760,000,000 3,220,000,000 3,680,000,000

VARIABLE COSTS
Cost Forecast 2,645,454,545 3,086,363,636 3,527,272,727

CONTRIBUTION 114,545,455 133,636,364 152,727,273

FIXED COSTS
Total Expenses 14,541,667 12,686,667 13,376,167
TOTAL FIXED COSTS 14,541,667 12,686,667 13,376,167

OPERATING PROFIT 100,003,788 120,949,364 139,351,106

INFLOW/CUSTOMER 4,600 4,600 4,600
OUTFLOW/CUSTOMER 4,409 4,409 4,409
CONTRIBUTION/CUSTOMER 91 191 191
CONTRIBUTION MARGIN RATIO 0.04 0.04 0.04
BREAK EVEN POINT (CUSTOMER) 76,171 66,454 70,066
BREAK EVEN POINT (N) 350,384,921 305,688,254 322,301,921
MARGIN OF SAFETY (CUSTOMER) 523,829 633,546 729,934
MARGIN OF SAFETY (N) 2,409,615,079 2,914,311,746 3,357,698,079
 Conclusions:

According to the cost benefits, Xtracash is expected to generate over

₦100,000,000 in its first year of scale-up marketing . The business cash flow,
customer numbers, and revenue are in the margin of safety based on the
Break Even Analysis.

Thank You