AIM Tracking CC

Faraday Street, Southern Industrial Area, Windhoek

P O Box 1032, Aussppanplats, Windhoek

Contact Details Tel/Fax: 061 220011/2

E-mail: info@aimtracking.na

Date of plan: 28 September 2015

Faraday street, Southern Industrial Area, Windhoek P O Box 1032, Aussppanplats, Windhoek
Tel/fax – 061 320043/34 info@aimtracking.na
Members:

Names Student Number

Atshipara Martin 212019716

Iipinge Martha 213049449

Sheehama Hilya 213043610

Nambahu Ndakalako 214023419

Endjala Linus 213045044

Contents
1. Executive Summary...................................................................................................................... 4
2. Business and product or service description ............................................................................ 5
Business description..................................................................................................................... 5
Product description ........................................................................................................................... 6
3. Marketing Strategy........................................................................................................................ 7
Products marketing principle ........................................................................................................... 7
Pricing ................................................................................................................................................. 7
Promotions ......................................................................................................................................... 8
Place and location of the business ................................................................................................. 9
Website Marketing Principle ............................................................................................................ 9
4. MANAGEMENT PLAN ................................................................................................................. 9
Management Summary .............................................................................................................. 10
Management team ...................................................................................................................... 10
Personnel Plan ............................................................................................................................ 11
SWOT Analysis ........................................................................................................................... 11
5. Operation plan ............................................................................................................................. 12
Description of the facilities ......................................................................................................... 12
Location of the business ............................................................................................................ 12
Operations hours ............................................................................................................................. 13
Transportation ............................................................................................................................. 13
6. FINANCIAL PLANS .................................................................................................................... 13
DESCRIPTION OF START UP COSTS.................................................................................. 13
BREAKEVEN ANALYSIS .......................................................................................................... 15
CASH FLOW STATEMENT ...................................................................................................... 16
The income statement and balance sheet .............................................................................. 17
7. APPENDICES ............................................................................................................................. 20
 1. Executive Summary

AIM Tracking CC is a technological advanced company that will be providing installations of

secure fingerprint systems in all kinds of buildings. Institutions and growing companies will be
mainly targeted as their current systems seem to be out of date and unreliable. The
fingerprint system will have details that can be updated at any time by the authorised
personnel.

The company plans to start operations in Windhoek and then later expands its operations as
far as all the corners of the country. This will be done to make sure the service is available
and closer to all the people in need.

Finger-Tech cc will be providing its products and services at affordable prices to the
customers, ensuring that their demands are met. The company plans to have a direct
connection with the leading manufacturer to make sure the designs meet the required
specifications the customer desires. The products will be loaded with the latest system
available at that time, with an option to upgrade whenever a new operating system is
updated.

The company does not consider whether a few or larger fingerprint systems are to be set up.
Whatever the quantity, the company can supply and install. Our competition have limited
number of items to be ordered from them in order to do installation, Finger-Tech cc is for all
(fewer or more machines).

Finger-Tech cc expects to achieve a growth of 30 % from 3 years of operation. With

intuitions, government and growing companies as a targeted market and they tend to be
expanding their operations to every part in the country. The company expects to make a
sales of up to N$24,250,000 in the first year, N$40,000,000 in the second year and
N$50,000,000 for the third year of operation.

Leo Oletu (CEO) is the founder of Finger-Tech cc after having worked for Nam-Breweries.
Leo will recruit Sesilia as MD who worked for Mobile Telecommunications Company (MTC).

Finger-Tech cc plans to put all the stressing of print cards (for students, employees or
employers). This will solve the problem of having to go through a process of reporting that
you forgot your card which leads to time being wasted.
 2. Business and product or service description
Business description
AIM Tracking CC is a vehicle surveillance and security company with advanced
technology. “Keep track on your baby” is our slogan because we plan on making
vehicle owners to keep track on their vehicles every time. AIM Tracking CC office will
be located in the Southern industrial area of Windhoek which is closer to the CBD
and to the people. AIM Tracking plans to provide vehicle tracking systems to
Individuals, Private Companies, State owned companies and also provide a
surveillance and tracking systems for taxi companies/owners. This will allow people
and companies to keep track of their vehicles and make it easier to recover their
vehicles in case of theft. It will also allow taxi companies and owners to control the
movement of their taxis and also to keep track on how the taxi is being used and will
be able to see if the driver brings all the money home.

Why Vehicle Tracking System

• Vehicle theft will be eliminated

• Taxi drivers will not going to places where they are not supposed to go or park
under the tree the whole day and come say there were no customers.
• Taxi drivers will not be keeping some money to themselves because you will
know approximately how much they made for the day.
• Parents will not be worried about where their sons might go if they want to
send them somewhere with the car.
• Usage of company/government cars with work unrelated activities will be
eliminated.
• Drivers will not be transporting passengers or family members when going for
business trips.
Product description
There are two tracking options available and people will choose according to what
they exactly want.

1. The TC tracking device is a small plug and play tracking device with GPS on board
and can be connected to the owner’s smart phone or home computer. This is only
meant for individuals who want to track their cars in case of theft or just want to know
the location of their cars and not really have a video surveillance of their car. The
client will choose whether the device should also be connected to our systems for us
to be able to track their car for them in case they are unable to do so themselves.
The device is very accurate and easy to install and use as long as you have internet
access.

For those who own more than one vehicle, the good news is that the package comes
with two extra mini chips which can be linked to the main chip and thus you will not
be required to buy and install the device for your second and third vehicle. The
system come with a software on a disc which can be installed on a personal
computer (windows and mac) and we can also install it on the owner’s smart phone
and will provide the owner with options such as deleting the car from the system in
case if the owner sells it or something happens to it that it is no longer used.

2. The second option is the DMH-300 system which is mainly designed for
companies including taxis and government vehicles. This system provides GPS
tracking and also satellite surveillance for easy monitoring and control of government,
company cars and taxis.

When you buy this system, you will be required to be registered into our servers for
satellite surveillance and then we will give you access to our servers through your
computer or smart phone on which you will be monitoring your vehicles.

Unlike the first option, this does not come with two extra chips, once you buy the first
package you can register up to 5 vehicles on the same package, with an option of
upgrading it to a number of cars of your choice on which an extra fee will be charged.
This system is also easy to use, all you need is a good internet connection.

For both options, the tracking devices are installed on the cars by us, and only we
can do it. This is because we provide guarantee for the devices and if we allow
someone else to install it, that person might not do it correctly which might cause the
device will be damaged and then we will be required to provide you with another one,
and therefore to be safe, the devices can only be installed by us.

The devices are designed by AIM Tracking CC and manufactured by Smart Tracker-
corporation in China. For a customer specific design, the customer has to put in an
order at least a month earlier

3. Marketing Strategy

The marketing strategy for Finger-Tech cc depends on following main principles:

Products marketing principle

The quality of the Finger-Tech cc products is made such that it gives satisfaction to the
customers. Products are ordered straight from the manufacturer hence there is a direct link
between the manufacturer and the company. Finger-Tech cc fingerprint detector attendance
technology is unique from that of other companies simply because the company gives the
preferences to the manufacturer on how the design of the attendance should be. This
enables the products to be have unique features such as performance, design, and
emergency and data back-up security.

Satisfied clients are the results for the most effective form of marketing. When a client feels
they can rely on Finger-Tech cc for satisfying, impeccable quality, fast and friendly service
they are eager to share that confidence with friends and other partners.

Pricing
As our potential customers are growing companies, academic institutions and government;
under normal sales run 10% discounts will be given for each register if order of attendance
register was made by one company for more than two branches in different locations.

Labour cost varies with the size of the attendance register but reduces as the ordered
quantity increases as it has 10% discount. Since the company has well trained staff on how
the fingerprint detector attendance technology works; labour cost includes the installation and
training of the basic operation of this technology to the clientele. Regular maintenance every
four months for eighteen months is also part of the package.
 Promotions
Promotion plan is divided into two part namely at the start-up and during the operation of the
business. The tables below summaries the promotion plans and estimated costs during the
two operations.

Promotion Budget (before start-up):

Category Item Cost associated

Launch Event Invitations N$750

Venue & Catering N$3000

...

Promotion Freebies with signage N$350

Free setting & maintenance N$5000

...

Advertising Newspaper N$2500

Television N$5000

Pamphlets

Total (N$) N$ 16600

Promotion Budget (ongoing):

Category Item Cost

Month 1 Month2 ...

Promotion Freebies with signage N$1500

 20% off N$8000

...

Advertising Newspaper N$6000

TV N$8000

...

Total (N$) N$ 10300 N$ 16200 ...

The ongoing promotion is planned to be taking place at occasions like expo, trade fair and so
on that take place in different towns.

Place and location of the business

The main branch is based in Windhoek but soon decentralization will be taking place. The
whole information about the business’s services and products and any other sort of
assistance and clarification is going to be made avail to the clients.

Website Marketing Principle

Finger-Tech cc is currently developing a website. This website will serve three purposes:

The Finger-Tech cc website will have company information, including contact info and
services offered. The primary function of the website will be to serve as a reference for both
Finger-Tech cc staff and clients. Finger-Tech cc will carry the fingerprint attendance register
technology of a large variety of companies, and a website will be the solution to several
practical issues. Website is an effective way to centralize information and make it accessible
to customers.

The website will also be an online store, where customers can make their order, posting their
comments and questions. This website is going to be advertised through the signage on the
freebies company uses for promotions and also through the advertisements on different
media.

4. MANAGEMENT PLAN
Management Summary

AIM Tracker CC will have employees of different expertise. The management team
will consist of highly qualified people with experience in order to make sure our
business’s aim and objectives are achieved. AIM Tracker cc will be organized and
managed in a creative and innovative manner to meet our customer’s need and
make sure they are well satisfied with our service and product and also to create a
working environment contributing to personal development and economics
satisfaction for employees.

Management team
Chief Executive Officer
Ms Diana Nambahu

Mr Nambahu holds a master’s degree in Electronics and Telecommunications from

Sheffield University with 8 years of experience in the engineering sector. She also
holds a master’s in industrial engineering from the University of Wits and a higher
certificate in project management from University of Stellenbosch. She was acting
CEO at another local company before joining AIM Tracker CC. Ms Nambahu has the
skills, knowledge and capabilities of running a well organised business and drive it to
success. She is very competent and does not believe in failure but dreams of
success and that’s why with her being the youngest in the management, she is the
one trusted to be the driving head of the AIM Tracker cc.

Production Manager/Operational:
Mr Martin Atshipara

Mr Atshipara holds a bachelor’s degree in Mechanical engineering from Stanford

University with his main focus on manufacturing. He has worked under some big
manufacturing and production companies such General Motors, VW South Africa,
Sab Miller Namibia, and other local companies with about 13 years of experience in
the engineering industry and therefore he has expertise, skills and knowledge
required for this position. Apart from his engineering career, Mr Atshipara also holds
a higher degree in project management from university of Cape Town and busy
studying towards a Master’s degree in Industrial engineering at NUST.
Financial Manager
Ms Martha Iipinge
Ms Iipinge is a professional registered Chattered Accounted having spent about 11
years in the financial and accounting sector. Being top of her class, she graduated
with distinction in financial accounting from university of Pretoria. She also holds an
MBA from the same university. She is a very business minded person at the same
time, she is seen by many as one of the best financial managers in the country.

Ms Hixy Sheehama and Mr Linus Endjala will be brought on board as Information and
Marketing managers’ respectively. Ms Sheehama is an engineer by profession who
has managed quite a number of businesses in Namibia and Mr Endjala has a
master’s in marketing with a bit of knowledge on engineering and installations.

Personnel Plan
The table below outlines the personnel financial needs of Finger-Tech cc:

Personnel Plan Salary/month

Chief Executive Officer N$100,000

All Manager N$70,000

All other employees N$ 350,000

Total payroll N$ N$660,000

SWOT Analysis

Strengths
1. Maximum security.
2. Environmentally friendly
3. Market experience
 4. Strong leadership

Weaknesses

1. Likely to be costly

Opportunities

1. Employment Opportunities
2. Project may improve local economy
3. Will improve safety

Threats
1. Firms may react on this establishment and may negatively affect our
profitability and sustainability.
2. Failure for manufacturing company to deliver on time.

5. Operation plan
Description of the facilities
An agreement was reached between AIM Tracking CC and Smart Tracker
Corporation, a company which located in China and majors in manufacturing
electronic components including trackers. The company will be manufacturing tracker
devices according to designs made by AIM Tracking CC.

Location of the business

AIM Tracking is located in the southern industrial area of Windhoek. The location was
mainly influenced by the market place and size, and also by the fact that most
technology advancements are happening in Windhoek. AIM Tracking will also be
having offices in Oshakati and Swakopmund and also other places, depending on the
market demand.
Operations hours
AIM Tracking CC will be operating as from 8:00 to 16:30, Monday to Friday and from 9:00 to
12:00 on Saturdays. There will always be someone on standby after working hours to cater
for emergencies after working hours.

Transportation
If you are currently not in Windhoek, we can come to you and we will deliver and
install the system for you at your place or wherever you and thus we will have 3
vehicles and drivers at the office. Drivers will not be required after working hours and
therefore the cars will be staying at the office.

Guarantee

If you buy our product, you automatically get a 2 year guarantee on system failure
and installation. Therefore if your system fails, or have a software problem before you
guarantee is over, will repair or install a new device for you. The guarantee does not
cover physical damage.

6. FINANCIAL PLANS
In the following section, the financial estimations and projections of Finger-Tech cc shall be
presented. The business is expected to grow steadily over the first few years, but growth may
increase steeply overtime. This is because the product and service that shall be offered is
still new but as more awareness about its benefits and as the world grows into a more
technological one, the market is expected to increase rapidly in the future. We plan on taking
on the market by storm, by offering our services to large educational institutions such as
universities and big companies that employ large groups of people. These types of
institutions would provide a very high income at the beginning and therefore the business will
be able to come to a stable state quickly.

DESCRIPTION OF START UP COSTS

The startup costs will involve the establishment costs which will be required to start up the
business and bring it to full functionality and the operating costs which will involve finances
required to keep the business running for the first few months until it can sufficiently sustain
itself. These costs are calculated estimates based on thorough financial and market
 research. The values presented in this section are all rounded off to the nearest thousand or
hundred thousand to make the statements more presentable.

The various start up and operating costs are shown in the costing sheet shown below:

Table 6.1 Start up costing sheet

COST ESTIMATED AMOUNT N$

START-UP

OFFICE SPACE
Office Rent(3 Months) N$15,000
Improvements N$10,000
Office Equipment N$40,000
Water and Electricity(3 months) N$3,000
Heating and ventilation N$10,000

COMMUNICATIONS
Internet(1 year contract) N$12000
Telephone(1 year contract) N$6000
Employee cellphone plans(1 year contract) N$8000

LEGAL MATTERS
Business registration N$500
Vehicle registration N$400
Lawyer’s fees N$8000
Insurance-Equipment, inventory, vehicles N$5000

OPERATING COSTS

Starting Inventory N$2,000,000

Employee Salaries (6 months) N$968,000
Advertising and marketing N$30,000
Market research N$5,000
Printed market material N$3000
Creating and maintaining website N$1,000
Cash on hand N$1,000,000
TOTAL COST OF SALES N$3,124,900

The startup costs for Finger-Tech cc are estimated to be N$3,124,900. The owners will
contribute about 40% of the amount of N$1,249,960 in total, and the remaining N$1,874,940
shall be obtained in the form of a business loan that shall be obtained from FNB or the
Development bank of Namibia. Business loan applications have already been submitted at
point of this writing.

The loan shall be repaid in yearly equal installments over a period of 5 years with interest.
The source to repay this loan will be the total income generated on a yearly basis. From the
financial statements below, it is evident that the business shall be able to pay the first fifth of
the loan after just the first year, while maintaining adequate liquidity and generating
positive cash flow, and sufficient cash reserves for unforeseen future events

BREAKEVEN ANALYSIS
The total operating costs were estimated to be around N$3,124,900 therefore on order to
ensure that the business is a viable one and should therefore be allowed continue to operate,
we need to analyze the breakeven point.

Breakeven shall be realized when the net profit of the business is exactly zero and this point
should be used to determine the minimum sales turnover that may be achieved.

For this breakeven to occur, sales turnover should equal the sum of operating costs and cost
of sales. We the find the required sales turnover to be:

Operating costs = N$4,007,000

Cost of sales = N$17,000,000

Therefore: for breakeven point,

Cost of sales = operating costs + cost of sales = N$4007000 + N$17 000000 =

N$21,007,000 From our projection financial statements, we can see that we are well
above this point.

At breakeven point with sales turnover equal to N$21,007,000, it brings us to compute that
we will have to sell an average amount of 5000 fingerprint machines in the initial year in order
to achieve a breakeven point.
This is quite attainable and we expect to sell much more than that in the future years. But as
we have learned with business, it is much wiser to understate your income than over stating
it.

CASH FLOW STATEMENT

We do not expect to have problems with cash flow for the first few months. This is mainly
because we shall be operating on a tender basis for the large institutes, meaning the
customer will pay for the service before it is delivered. This money can then be used to
purchase the fingerprint machines from our suppliers for the next tender whilst we use the
product in storage. However we expect to have a lower cash income for the startup year
compared to other years.

Most spending involved will be with the purchasing of inventory and faulty product
maintenance for customers over the course of the year. Expenses will also be expected to
increase with time as the business and demand for the product grows. We can expect to
spend a lot on maintenance and more than product transport services. Any unforeseen cash
flow problems that we may encounter will be solved by short term loans we may obtain form
various financial institutions and credit purchases from our suppliers. The Pro forma cash
flow budget for a three month basis is shown below:

Jan (N$) Feb (N$) Mar (N$)

Opening Balance 1,000,000 1,356,433 1,567,510

Cash receipts:
Cash sales 800,000 1,000,000 2,000,000
Receipts from credit sales 20063 100,000 100,000
Interest 10870 12,000 15,000
Sundries 20500 20,500 20,500
Total cash receipts 851,433 1,132,500 2,135,500

Cash purchases 200,000 400,000 500,000

Stock purchases 100,000 300,000 300,000
Trade creditors 20,000 50,000 50,000
Other creditors 5000 6423 10,000
Operating costs 150,000 160,000 200,000
Other 20,000 5000 5000
Total cash disbursements 495,000 921,423 1,065,000
Cash increase/decrease 356,433 211,077 1,070,500
Closing balance 1,356,433 1,567,510 2,638,010

The graph below will give a visual representation of the increase in cash on a monthly basis

3000000

2500000

2000000

1500000
Series1
1000000

500000

0
1 2 3
years after start up

The income statement and balance sheet

Our fingerprint machines will be sold for N$3500.00 per machine including installation fee,
therefore for a large institution, for example the university of Namibia, we could expect at
least more than 100 purchases , bringing us to an average sale of about N$350,000 per
institute. we can expect to sell to more than 50 large institutes at minimum over the course of
the year and at least more than 1500 individuals for home alarm installations at a price of
N$4500 around Windhoek, giving us a total gross income of about N$24,250,000 excluding
credit purchases allowed only for the home alarm system for individual customers. This is the
value of sales we expect to make in the first year
We can expect cash sales to double by the end of the second financial year and keep
increasing by the third as the market expands and our range of products becomes wider. We
plan on expanding our services to the rest of the country, thus increasing our market and
potential income greatly.

INCOME STATEMENT
2015 2016 2017

Sales N$24,250,000 N$40,000,000 N$50,000,000

Less cost of sales N$12,000,000 N$20,000,000 N$25,000,000

Gross profit N$12,250,000 N$20,000,000 N$25,000,000

Less expenses N$5,000,000 N$10,000,000 N$10,000,000

Net income before taxes N$7,250,000 N$10,000,000 N$15,000,000

Provision for taxes N$2,175,000 N$3,000,000 N$4,500,000

Net income after taxes N$5,075,000 N$ 7,000,000 N$ 11,500,000

BALANCE SHEET
 The Balance Sheet at the end of Year One shows a healthy surplus of current assets over
current liabilities. We have shown a conservative funding position, which does not include
any of the additional capital that we hope to secure. We have also shown a fast growth in net
worth of the company.

Pro Forma Balance Sheet

2015 2016 2017

Assets

Current Assets

Cash N$5,075,000 N$7,000,000 N$11,500,000

Accounts Receivable N$3,000,000, N$5,000,000 N$8,000,000

Inventory N$5,000,000 N$4,000,000 N$3,000,000

Other Current Assets N$2,000,000 N$3,500,000 N$5,000,000

Total Current Assets N$15,075,000 N$19,500,000 N$25,500,000

Long-term Assets

Long-term Assets N$5,000,000 N$10,000,000 N$25,000,000

Accumulated Depreciation N$750,000 N$1,500,000 N$3,750,000

Total Long-term Assets N$4,250,000 N$8,500,000 N$21,250,000

Total Assets N$19,325,000 N$28,000,000 N$46,750,000

Liabilities and Capital

Current Liabilities

Accounts Payable N$3,000,000 N$7,000,000 N$12,000,000

Current Borrowing N$1,000,000 N$2,500,000 N$3,000,000

Other Current Liabilities N$1,500,000 N$3,000,000 N$2,000,000

Subtotal Current Liabilities N$5,500,000 N$12,500,000 N$17,000,000

Long-term Liabilities N$8,000,000 N$10,000,000 N$13,000,000

Total Liabilities N$13,500,000 N$22,500,000 N$30,000,000

Paid-in Capital N$2,000,000 N$5,000,000 N$10,000,000

Retained Earnings N$0 N$400,000 N$3,000,000

Earnings N$3,825,000 N$100,000 N$3,750,000

Total Capital N$5,825,000 N$5,500,000 N$16,750,000

Total Liabilities and N$19,325,000 N$28,000,000 N$46,750,000

Capital

NET WORTH N$5,825,000 N$5,500,000 N$16,750,000

The graph below gives a visual representation of the net worth by the end of each year

18000000
16000000
14000000
12000000
10000000
8000000
Series1
6000000
4000000
2000000
0
1 2 3
years after startup

7. APPENDICES

Provided are all the important documents that govern and ensure proper and smooth
operation of the business. The attachments are as follow:
 Curriculum Vitae of CEO, General Manager

CURRICULUM VITAE FOR MR L OLETU

PERSONAL DATA
Surname : Oletu
First Name : Leo
Identity Number : 82081100329
Date of Birth : 1982-08-11
Gender : Male
Nationality : Namibian
Marital Status : Married
Driver’s License : Code B
Languages : English, Afrikaans and
French
Religion : Christian
Health : Good
Residential Address : Windhoek-khomas Region
Postal Address : P.O.Box 25907 Windhoek
Contact Number : 0815475663

EDUCATIONAL BACKGROUND

Tertiary Education

a) B. of engineering in Electronics & Telecommunications from the Polytechnic of

Namibia (2005).
b) Master’s in Business Administrations from the University of Pretoria (2009).
EXPERIENCE

Nam-water Company : Supervisor in the communication and computer department,

for two years (2006-2008)

Nam-Breweries Company : Senior manager for the electrical department for five years
(2009-
2014)

EXTRA CURICULUM ACTIVITIES/INTEREST

• Helping students with their projects

• Attending to motivational speeches
• Watching travel channels

REFERENCES

1. Dr. A Sendegeya
Lecture at University of Pretoria
Cell: +264818044339

2. Dr. S Nicholas
National motivational speaker
Cell: +264817654909
Curriculum Vitae of MD

CURRICULUM VITAE FOR MS S MUTILIFA

PERSONAL DATA
Surname : Mutilifa
First Name : Sessy
Identity Number : 88092400329
Date of Birth : 1988-09-24
Gender : Female
Nationality : Namibian
Marital Status : Single
Driver’s License : Code B
Languages : English & oshiwambo
Religion : Christian
Health : Good
Residential Address : Windhoek-Khomas
Region
Postal Address : P.O.Box 25537
Windhoek
Contact Number : 0816583667

EDUCATIONAL BACKGROUND

Tertiary Education

a) B degree in Electronic devices from the Namibian Institute of Science and Technology
(NUST) (2007).

EXPERIENCE

Nam-Power Company : Electronic devices installation for three years (2008-2011).

MTC Company : Software maintenance supervisor for three years (2012-2015).

EXTRA CURICULUM ACTIVITIES/INTEREST

• Repairing devices,
• Watching movies and
• Socialising

REFERENCES

3. Mr. Nakare Christoph

MTC secretary (Maroel
mall)
Cell: +264081279909
4. Mrs. Andrew luke
Mathematic lecturer at NUST
Cell: +2648132467225