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Printed from https://www.writing.com/main/view_item/item_id/1961377-Business-Plan
Rated: E · Sample · Business · #1961377
This is a sample of a business plan I wrote.

BUSINESS PLAN FOR A CLOUD RESELLER

CONTENTS

Executive Summary

  • Objectives

  • Mission

  • Key to Success

Company Summary

  • Start up summary

Product

Industry Analysis

  • Macro analysis

  • Pestel analysis

  • Future of Industry

  • Micro analysis

Strategy and Implementation

  • Product and services strategy

  • Price strategy

  • Publicity and sales strategy

Competitive Analysis

  • Main competitors

  • Competitive edge

Operations Plan

  • Long-term plan

  • Short-term plan

Financial Projection


EXECUTIVE SUMMARY

Cloud computing is the virtualization of data, which simply is storage of data in a virtual cloud and can be accessed through a high speed internet access. The technology is offered to clients through cloud resellers.

The cloud reselling business is projected to grow by over 100% from 2010 to 2016. This is according to a research done by Gartner Inc. The research indicates that public expenditure on cloud services will rise to about 210 billion dollars by the year 2016.

The business is a promising venture especially in the African region as infrastructure is being set up and people are being educated about the internet more and more. The region has the best growth opportunity as it is a rare venture in the region. The total population in Africa that has ventured into cloud reselling is very small and thus a need for the business venture. Moreover, with the increased literacy in the IT department in the region, the cloud computing will have a great response since it is a faster and more efficient way of storing data.

Since the invention of the cloud computing technology, the security of the data stored has always been the limiting factor, according to most people. The company will ensure that the technology used in cloud storage will be up to date, using next generation technology. We shall also hire a professional in the IT department to assess the technology and determine what cloud based applications will be needed to ensure clients have a secure method to undertake their tasks without any risks. Kenya has not fully exploited the market niche for the cloud storage.

Objectives

  • To be the cloud reselling company of choice.

  • To attract as many small and medium enterprises as possible.

  • To create a large market base in East Africa in five years.

Mission

The company is dedicated to providing the latest and most secure cloud computing technology to the clients to ensure the non-core services outsourced to the cloud run smoothly and effectively.

The company is aimed at attracting small and middle enterprises (SME) by explaining how the use of cloud storage can help in cutting costs. Besides, the cloud will help them connect with the rest of the world, giving them a platform to compete with other multi-nationals.

Key to Success

In order for the company to meet the objectives set, we must:

  • Advertise the cloud and ensure the marketing strategy reaches as many potential clients as possible. This will include using SEO writing.

  • Ensure that the cloud services being offered are at a reasonable rate, earning a modest profit.

  • Partner with a good cloud hosting company whose policies have common interests as ours.



COMPANY SUMMARY

The company is a sole proprietorship company.

Start-up Summary

The company`s start-up capital is $110,000. The money will be used majorly for purchasing of stock, marketing the company and other expenses.



PRODUCT

A cloud reseller provides a virtual data storage system which can be accessed from through the internet from any computer. The cloud also offers services such hosting and back up. The company will always ensure that software and applications used in the technology are updated, robust and secure.



INDUSTRY ANALYSIS

Macro-market Analysis

The cloud computing technology has created a lucrative industry. Being an online, business, the market is very wide, as one can communicate to people around the globe. Gartner predicted a 19.6% growth rate in the cloud services industry in 2012. The growth in the software-as-a-service business promises for the growth of the ICT sector, which will enable the market to grow even further.

The market for cloud services, on a global scale, is increasing and is set to be on the increase for years to come. According to Gartner`s report, Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 4Q12 Update Published: 8 February 2013, the revenue from cloud services will have increased by more than 100% by 2016.



Pestel Analysis

Politics

The country`s political stability is at its best, having a new constitution that ensures that law and order is maintained. Besides, the government is working on uniting the country to work together without political boundaries.

Economics

The country has the strongest economy in the region, with more rapid growth expected in the future. According to the World Bank report 2013, Kenya is in the right direction in implementing the policies to help in growth of the economy. The government plans on having grown the economy to that of a developed country by 2030.

Socio-cultural

Kenya`s population is majorly influenced by the country`s leadership. The current government has run a campaign of migration to the digital error. This campaign has led to more awareness about the ICT industry. This has made the cloud products more common and hence a need for the business in the country.

Technology

There has been a tremendous growth in the technology sector in the country. The International Data Corporation (IDC) has projected that with the country`s plan for laying down infrastructure to boost ICT industry, Kenya will be the ICT hub of Africa by 2017. The IT industry is projected to have grown to a $2 Billion industry by 2015. This shows that there is a niche for the cloud reselling business in the country.

The cloud computing technology has also evolved, strengthening the security applications for securing data, which has boosted the confidence of the potential clients in the market. The SMEs also are opting to use cloud storage as it has increased their market base by a wide margin.





Future of the Industry

The industry has a promising future both locally and globally. Currently, only 10% of the population in Africa can access the internet. Even a lesser percentage has access to broadband data communication. Infrastructure is being set up to ensure that the region grows to the same level as the rest of the world. There are even more cloud hosting companies setting up a base in the region. Besides, the market size is increasing as more people are being encouraged to use start their own businesses.

Micro market

The number of people with access to the internet in the country is 10%. This number is set to increase as there is more education available and the government is working to increase the numbers to the required 30% by 2017. The company intends to create awareness about cloud computing across East Africa, since Kenya is set to have the best plans of expansion in the region in the IT department.

The SMEs are also increasing rapidly in the region, with the job creation from job seeking campaign gaining popularity. The businesses are looking on ways to cut down on costs, which makes cloud computing a great opportunity for the CAPEX reduction.

STRATEGY and IMPLIMENTAION

The company will have an online marketing system that will ensure that education is offered to the SMEs through article writing using SEO articles to market our product. The main target is the large number of SMEs that still put in a lot of money into capital expenditure. We will educate the entrepreneurs on the advantages of outsourcing some of their services to the cloud.



MARKETING MIX

Product and Services Strategy

The company will sell the cloud products to small and medium companies in the country`s major towns. Being a cloud reseller company, we are specialized in the business, unlike our competitors who offer a wide range of products. The company will take this advantage to sell to the market as a specialized entity, with a closer and relationship with the client.

The company will also employ software (e-commerce) for online billing, which makes it easy for a client to make payment.



Price Strategy

The company targets to set friendly rates for the sale of the products. This will give us a competitive edge as the prices will be for a modest profit. This will also attract more customers as they will be mostly the small and medium businesses trying to cut down on costs.

Publicity and Sales Promotion

The company will have a website, professionally designed so that it loads easily and will be easy to update. This will be done with html.

The company will also use search engine optimization to make it available easily.

The company will also start forums in the social media including facebook, linkeldn and twitter. This will boost the marketing as it will reach more people.

The program will also involve marketing cloud computing solutions to different government agencies which is expected to boost growth, since, ICT development is one of the government`s pillars.

COMPETITIVE ANALYSIS

Cloud computing has not been fully exploited in the country and the region. The market niche in the region is wide and able to accommodate numerous resellers. This industry, is however, run by foreign multinational companies.

Main Competitors

The main competitors include:

  • Access Kenya

  • Safaricom LTD

  • Google

These companies also serve as the major players in offering complimentary services such as such engines, network connection and networking products.



Competitive Edge

The company will be specialized. this will offer us to offer better services to our customer by giving more attention and having a closer relationship.

We will set our prices fairly, with a modest profit margin to attract clients.



OPERATIONS PLAN

The company will partner with a host whose services are quality and reliable, has experience in cloud hosting and will offer a reasonable resale model that will attract profit after to the company.

The company`s capital will be used in the following way:

ITEM

AMOUNT

Computer


Internet connection


Stock (Cloud services)


Human resource


Total






Short-Term Process

The company will ensure that it has a website, which will be linked to a blog that will be updated regularly with articles about the cloud services` features and advantages. These articles will be SEO articles which will be aimed at marketing the cloud reselling company.

The company shall have a customer care desk which will serve the clients round the clock. There will be forums where the clients may want to engage and learn more about what the company offers.

Long-Term Processes

The company plans to expand the market base all across the region, as the region`s infrastructure for broadband connection increases. The company will partner with a provider willing to set a center in the region, as there are companies already discussing on expanding the cloud computing industry across the borders.

FINANCIAL PROJECTIONS

Quarterly Projections

First quarter

Second quarter

Third quarter

Fourth Quarter

Revenues

15000

25000

30000

35000

Cost of Goods Sold

14000

23000

27000

31000

Gross Profit

1000

2000

3000

4000

Sales & Marketing Expense

100

200

350

400

General & Admin Expense

900

1000

1200

1300

Operating Income

0

800

1450

2300

Depreciation Expense

25

25

25

25

Interest Expense

50

100

125

125

Taxes

0

0

0

0

Net Income

-75

675

1300

2150













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