able of Contents 1.

0 Executive Summary
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8

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.................................. The Company and its Products/Services . . . . Financial Highlights . . . . . . . . . . . . Objectives . . . . . . . . . . . . . . . . . Mission . . . . . . . . . . . . . . . . . . . Keys to Success . . . . . . . . . . . . . . . Management Summary . . . . . . . . . . . . . The Market: Growth & Opportunities . . . . .. Funding Requirements . . . . . . . . . . . . The Company . . . . . . . . . . . . . . . . . . . . . 2.1 Company Ownership . . . . . . . . . . . . . . 2.2 Start-up Summary (with table & chart). . . . 2.3 Company Locations and Facilities . . . . . . 2.4 Company History (if applicable) . . . . . . . 2.5 References . . . . . . . . . . . . . . . . . 2.6 Strengths and Weaknesses . . . . . . . . . . Products and Services . . . . . . . . . . . . . . . . 3.1 Product and Service Description . . . . . . . 3.2 Future Products and Services . . . . . . . . 3.3 Service and Support . . . . . . . . . . . . . Market Analysis . . . . . . . . . . . . . . . . . . . 4.1 Market Segmentation . . . . . . . . . . . . . 4.2 Target Market Segment Strategy . . . . . . . 4.2.1 Market Needs . . . . . . . . . . . . 4.2.2 Market Trends . . . . . . . . . . . . 4.2.3 Market Growth . . . . . . . . . . . . 4.3 Industry Analysis & Competition. . . . . . .. 4.3.1 Industry Participants . . . . . . . . 4.3.2 Distribution . . . . . . . . 4.3.3 Competition and Buying Patterns . . . 4.3.4 Main Competitors & comparison. . . . Strategy and Implementation . . . . . . . . . . . . . 5.1 Marketing Strategy . . . . . . . . . . . . . 5.1.1 Pricing Strategy . . . . . . . . . . 5.1.2 Promotion Strategy . . . . . . . . . 5.1.3 Distribution Strategy . . . . . . . . 5.2 Sales Strategy . . . . . . . . . . . . . . . 5.2.1 Sales Forecast (with table & chart). 5.3 Operations Strategy . . . . . . . . . . . . . . 5.4 Strategic Alliances . . . . . . . . . . . . . . 5.5 Milestone Schedule (with table & chart) . . . . Management & Organizational Structure . . . . . . . . 6.1 Organizational Structure . . . . . . . . . . 6.2 Management Team . . . . . . . . . . . . . . 6.3 Management Team Gaps . . . . . . . . . . . . 6.4 Personnel Plan (with table). . . . . . . . . 6.5 Personnel Recruitment & Training . . . . . . Financial Plan Projections . . . . . . . . . . . . . 7.1 General Assumptions . . . . . . . . . . . . . 7.2 Key Financial Indicators . . . . . . . . . . 7.3 Break-even Analysis . . . . . . . . . . . . . 7.4 Profit and Loss Statement (3 or 5 years) . . 7.5 Cash Flow Statement (3 or 5 years). . . . . .

This next phase of development is the establishment of a GSM cellular network in the Democratic Republic of Congo. $21. Business Ratios . Inc.   1. Its versatility allows it to provide its customers with customized. . XYZ Telecom is a proactive and technologically oriented company that has the expertise and seven years of successful operating experience to perform its operations efficiently and effectively by concentrating on its core activities while deploying the latest in telecommunications technology. XYZ Telecom is a facility based telecommunications company that offers a high quality network through direct access. XYZ Telecom has undergone an impressive transition from a small operation selling phones and accessories to its present status as a leader and significant player in providing a variety of profitable telecom services. .4 Keys to Success Maintain and build upon existing customer contacts and relationships.4 million in 2008.3 Mission Statement The mission of XYZ Telecom is to continue providing customized telecommunications services to its current wholesale customer base in Africa and the United States while expanding into the end-user GSM market of Africa and Latin America. . The company is 100 percent owned by its founder. . . . $12. . Internet and satellite service provider serving customers in the USA.5 million in sales revenues for USA based services in 2004 (42% increase over 2003). $14. providing the following telecommunications services: Wholesale Long Distance Provider Satellite Service Provider Telecom Infrastructure Equipment and Products Sales GSM Network Services (planned expansion) Not just a reseller. maintenance.3 million in 2006.8 million in 2005.0 Executive Summary This business plan has been prepared to introduce XYZ Telecom and provide a comprehensive understanding of its business operations. Achieve $10. Alexander XXX. . and taking advantage of the changing telecom environment and the tremendous growth opportunities available in the regions it serves. XYZ Telecom has rapidly become a well-established voice.7 Balance Sheet (3 or 5 years). diversifying its services. Implement an extensive marketing campaign to introduce the new GSM cellular service. Continue to provide quality services at competitive prices.7 million in 2008 (a 50% increase over 2007). . $18. . The company’s proven track record throughout its seven-year history provides the necessary foundation to enter its next phase of major development and growth by taking advantage of the tremendous opportunities that exist in providing telecom services in Africa and other regions. its growth strategy and funding requirements necessary to achieve its expansion plan objectives. .6 million in sales revenues in D R Congo in 2004. and reliable integrated solutions to meet their individual needs.2 Objectives Establish the first phase of a GSM cellular network in the D R Congo by September 1. It owns network equipment based on the latest existing developments via fiber optic or satellite directed links. . XYZ Telecom has been gradually increasing its market share and level of operations. Achieve $1.9 million in 2007 and $65. .6 million in 2005 (20% increase over 2004). 1.         1. Attracted by the huge potential of the telecom industry and based on its own business vision. XYZ Telecom has developed a practical and realistic growth strategy by gradually expanding its services and spreading its wings into other countries. $49.6 7. and has been operating under the trade name XYZ Telecom. . 1. Africa and other future geographic locations. .1 Company / Business Description The company is an existing corporation that was established in New York in 1996 under the registered name of XXX Group Telecommunications. . 2004.8 million in 2007 (50% increase over 2006). .5 million in 2006 (15% increase over 2005). $34. . . .7. . . and $32. and innovation of its infrastructure. . 1. cost effective.

5 Management Summary Alexander XXX.  Africa represents 3% of the world cellular subscribers as of June 2002 with plenty of room to grow.     Expand level of services into new regions. Alexander XXX is assisted by a strong management team that is very knowledgeable in the telecom industry. Implement an aggressive marketing and promotional campaign for the GSM network roll out.9 million in 2002.2 billion in 1992 to 144 billion in 2001. D R Congo.  The number of African cellular subscribers has increased from 0.85% rate from the previous 12 months. Mali. Alexander has paved the way for the expansion of XYZ Telecom’s network into Benin.4 million versus a 32% rise in Eastern Europe.  The average annual cellular expansion rate in Africa increased from 60% in the mid-90s to more than 100% in 2000 per ITU. but is relied heavily upon for his technical and innovative input into the network design process.  Worldwide total traffic minutes are projected to reach 226.5 in the year 2002 from essentially zero in 1994. This is particularly true in Africa where supply has significantly lagged overall demand. 1. In 2003.  Mobile phones surpassed fixed-line phone users since the year 2000. Stay abreast of the latest technological changes and market trends and apply appropriate strategies. South Africa and Togo.  TIA forecasts that the global telecommunications industry will see a 9% increase in compound annual growth between 2003 and 2006. starting in D R Congo. He has extensive contacts and relationships in Africa. representing a fivefold increase over 13 years. The total number of global wireless subscribers is predicted to reach 1. double the world rate. The highlights of research analysis conducted can be summarized as follows:  Worldwide total subscribers have increased from 500 million in 1992 to 2 billion in 2001. Additionally. satellite. Saudi Arabia.6 billion by the end of 2005. Mozambique.  Worldwide total traffic minutes have increased from 43. representing an 87.6 The Market: Growth and Opportunities The needs of individuals and businesses for telecommunications services have undoubtedly been growing at a phenomenal rate and continue to do so. With 650 million people. the number 2 growth .4 million in 1994 to 34. Congo. He firmly believes in the development of telecommunications systems in regions that have largely been neglected by the voice and satellite sectors as a whole. GSM in Africa grew at a 101. mobile subscribers shot up 37% to 34.6 fold increase. is an experienced voice. XYZ Telecom’s partner for the proposed GSM project in D R Congo brings a wealth of experience. Sierra Leone. Since establishing XYZ Telecom in 1996. Offer new services that complement existing services by implementing a GSM network. representing a 41. which is essential in establishing new accounts. founder and CEO of XYZ Telecom. he has gained considerable knowledge in the area of network development and integration through his direct involvement in all of XYZ Telecom projects. Technological change has created opportunities for market competition to replace existing telecommunications monopolies. representing an eightfold increase over 13 years.6 billion by 2005. 1.  Mobile phones per 100 inhabitants in Africa reached a rate of 4.61% of the 34.3 million African cellular subscribers as of February 2003 compared to 70% for the world. Provide turnkey solutions and services.  GSM represented 95. and mobile telecommunications executive with a keen eye for growing markets.25 fold increase over nine years. capabilities and management expertise that will greatly benefit the success of XYZ Telecom’s proposed expansion plans.  Worldwide total subscribers are projected to reach over 4 billion by 2005. Senegal. Mr. He plays a vital role not only in the management of new services.  Worldwide cellular subscribers have increased from 24 million in 1992 to over 1 billion in 2002. As founder of XYZ Telecom. sub-Saharan Africa has emerged as the fastest growing market for mobile phone service.

027 2001 $1. Gross Profit has increased from $118.514. Gross profit is projected to reach $59. Local public and private telephone companies.693.737 2007 $71.976 $102. a 13.332 $3.724.144.026 $12. bridges.768 $44.140.614 $31.110.191. population growth and the increase in the number of businesses is putting a strain on existing services.200.638 $30.977 $ 68.454 $ 288.7 million by 2008.119.092 $ 195. Advanced telecommunications capabilities are as critical to the African economy and quality of life as are highways.368.110.306 in 2003. Revenues are projected to reach $98.359.4 fold increase over the five-year period.117.625 $69.741 2006 $48.523 in 1999 to $7. Net income is projected to reach $44. poor postal services and where there is a serious information deficit in most fields.352 .722 $628.304. electrical grids and water systems. weather in Africa or anywhere in the world.048 2008 $98.2008 2004 Revenues Gross Profit Net Income Total Assets $12.3-fold increase from actual revenues in 2003.2 million by 2008.447.530 $ 390.941 $ 650.879. representing a 19. Revenues have steadily increased from $382.365.384. as it is impractical to do so.957 $44.896. Thus.295 Revenues Gross Profit Net Income Total Assets Liabilities Equity Total Liabilities & Equity    The following table provides the financial projections highlights of XYZ Telecom for the next five years.182 $30.165 $ 54. breaking out of decades of stagnation or decline.867.906 $2.7 fold increase over the five-year period.598 $17. Projected Financial Highlights: 2004 .699. It offers Africa a dramatic opportunity to leapfrog into the future.167 $ 12.287 $6.944 $ 953. a 52-fold increase from actual gross profit in 2003. The World Bank estimates that sub-Saharan Africa will spend $3.519 $2. Telecommunications is an essential element for the development and prosperity of African countries. To allow people to be connected from their system to other countries.167 in 1999 to $1.2003 1999 $382.811.874 $44.243 $ 449.705.396 in 2003.836 $ 288.977 in 1999 to $83. 1. Additionally.001.295 $2. necessitating the need for new or expanded services.436 $59.814 $ -9.area. the activities of XYZ Telecom will always be required.2 billion annually over the next five years on wireless infrastructure.027 $ 251.2 million by 2008. In a continent where there is a lack of good roads. representing a 9. according to researcher Gartner. to route calls to an outside operator.221.7 Financial Highlights    The following table summarizes the financial highlights of XYZ Telecom for the last five years of its operating history. Telecommunications is bound to profoundly alter the economic. do not have a complete world telecom network.613 $17.047 in 2003. such as XYZ Telecom. social and political landscapes of Africa.191 $ 36.165 2000 $1.245.858 $ 449.153 $ 32. The trend towards increased satellite telecommunications and the dominance of GSM technology in Africa is unquestionable.204 $ -238.799 $ 13. Past Financial Highlights: 1999 . Net income has increased from $12.523 $118.941 2002 $7.895 2005 $31.25 fold increase over the five-year period. Detailed financial statements projections are included in Section 7. they must utilize intermediary companies.388. telecommunications access is an essential condition for economic progress.366 $ 68. which include the proposed GSM expansion project for D R Congo.799 $ -200. representing a 6.870 $ 181.

920.000 $30.221. which is significantly less than the $472 per subscriber invested by its competitor Vodacom.709.801.000 $100.000 $2.360.000 $250.290.078.000 $250.000 $4.347 $26.970.000 $80.903 $12.000 11/1/2004 $1.000 $150.048 $353.000 $140.811.000 2/1/2005 $12.190.000 $180.970.352 1.000 $28. The term of each loan is 5 years at an assumed interest rate of 10%.000 $380.000 $13.117.000 $750.000 9/1/2004 $4.360 $101.517 $31.101. Due to the fact that infrastructure equipment costs have dropped significantly in the past three years by a factor of 10.290.000 $5.290.456.031.760.000 $10. Use of Funds Description Expansion Telecom Equipment Set-Up Remote Offices Sales & Marketing Legal & Consulting Fees Closing Costs Total Expansion Costs 5/1/2004 $4. XYZ Telecom will be able to enter the market with a capital investment of $100 per subscriber.895 $23.016 $69.000 $60.737 $12.000 $1.000 .224 $8.000 $50.290.741 $18.992 $102.058. starting with the first phase of funding consisting of $5 million on 5/1/2004.830.8 Funding Requirements XYZ Telecom is seeking a total of $28 million in funding in order to implement its expansion plans for a GSM cellular network in the D R Congo.130.000 $1.993 $2.879.000 $0 4/1/2005 $2.000 $0 $0 $0 $1.440. The project will be implemented in five (5) phases.391 $44.000 $0 $0 $0 $0 Total $25.000.000 $30.032 $57.000.514.Liabilities Equity Total Liabilities & Equity $10. The following table summarizes the use of funds and when required.763.

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