Emmanuel Adewole | Freelancer Portfolio Item #239703

Safety-Performance-Compliance Turning your data into results SPC Solutions Pty Ltd Business Plan Mark Ronalds Table of Contents Disclaimer and Confidentiality Notice ......................................................................................3 EXECUTIVE SUMMARY ..........................................................................................................5 Service offering ......................................................................................................................5 The Market.............................................................................................................................5 Financial Forecast................................................................................................................. 6 Vision Statement .................................................................................................................. 6 Mission Statement ................................................................................................................ 6 Company Principles .............................................................................................................. 6 BUSINESS OVERVIEW ........................................................................................................... 8 Business Structure ................................................................................................................ 8 Business ownership .............................................................................................................. 8 Company Locations .............................................................................................................. 8 Management team ................................................................................................................ 8 Startup Funding Analysis ..................................................................................................... 9 COMPANY SERVICES ............................................................................................................ 10 Service Overview.................................................................................................................. 10 Service Listing...................................................................................................................... 10 INDUSTRY OVERVIEW ......................................................................................................... 12 Global Industry Overview.................................................................................................... 12 Australia and New Zealand Industry Overview .................................................................. 13 Market Opportunities .......................................................................................................... 13 Market Drivers ..................................................................................................................... 14 Market Constraints .............................................................................................................. 14 Target Market ...................................................................................................................... 14 Porter's Five Forces Analysis ............................................................................................... 15 Competitive Comparison ..................................................................................................... 16 STRATEGY AND IMPLEMENTATION .................................................................................. 17 Evaluation ............................................................................................................................ 17 Strategic Competitive Advantage ........................................................................................ 17 Marketing Strategy .............................................................................................................. 18 Pricing Strategy ................................................................................................................... 19 Publicity and Advertising Strategy ...................................................................................... 19 Sales Strategy ...................................................................................................................... 20 1 Sales Forecast ..................................................................................................................... 20 Client Engagement Model ................................................................................................... 21 Client Engagement Function ............................................................................................... 21 SWOT Analysis ................................................................................................................... 22 OPERATIONS AND HUMAN RESOURCES ......................................................................... 24 Adaptive pathway ............................................................................................................... 24 Operational Plan Summary .................................................................................................25 Operational Segments ........................................................................................................ 26 Client Interaction ................................................................................................................ 26 Systems Requirements ........................................................................................................ 27 Supplier Network ................................................................................................................. 27 Human Resources................................................................................................................ 27 Simplified HRM Target ....................................................................................................... 27 Human Resource Strategy .................................................................................................. 28 Organizational Governance ................................................................................................ 28 Management Team Leadership .......................................................................................... 29 Personnel Plan .................................................................................................................... 29 FINANCIAL OVERVIEW ........................................................................................................ 31 Important Assumptions ...................................................................................................... 31 Financial Outline ................................................................................................................. 31 Start-up Cost ........................................................................................................................ 31 Projected Expenses .............................................................................................................. 31 Sales Forecast ...................................................................................................................... 31 Cash Flow ............................................................................................................................ 32 Profit and Loss .................................................................................................................... 32 2 Disclaimer and Confidentiality Notice This Information Memorandum (“Memorandum”) is being provided to select parties (the “Recipient”) for the purposes of providing Recipients with information relating to the business of SPC Solutions Pty Ltd ACN:- (“SPCS” or the “Company”) in relation to the proposed raising of capital and issuing of shares. It does not purport to contain all the information Recipients may require in order to assess the investment opportunity. The information is of an indicative nature and subject to change. SPCS may, in its absolute discretion, but without any obligation to do so, update, amend or supplement the information. Each Recipient of the Memorandum should make their own independent assessment, investigation and enquiry of the information contained in this Memorandum and seek such advice from its advisers as it considers necessary. Any decision by a Recipient in relation to the investment proposal herein should be based on independent assessment, investment and enquiry and advice. SPCS and/or its associated entities, officers, employees, agents , consultants and advisors, make no representation or warranty as to the accuracy, reliability or completeness of the information (or any information that may subsequently be provided to the Recipient by SPCS or any of its officers, employees, agents, consultants and advisors) including, without limitation, any financial information, estimates and projections contained in this Memorandum and any other financial information derived therefrom. The estimates and projections contained in the Memorandum involve significant elements of subjective judgment and analysis, which may or may not be correct when considered within the context of actual events. There may be differences between projected and actual results because events and circumstances frequently do not occur as projected and these differences may be material. The Recipient, intending investors and their respective advisers should make their own independent assessment of the relevant assumptions, calculations and accounting policies upon which the estimates and projections are based. This Memorandum may include certain statements, estimates or projections regarding the future performance of SPCS, its business activities and the poultry industry. These are preliminary and reflect various assumptions that may not be correct or necessarily take place and are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of SPCS. Past performance may not be a reliable indicator of future performance. No representation or warranty is given as to the accuracy, completeness, likelihood or achievement or reasonableness of such statements, estimates or projections or the assumptions on which they are based. Nothing contained in this Memorandum is, or may be relied upon as, a promise or representation, whether as to the present or the future. SPCS and/or its associated entities, 3 officers, employees, agents, consultants or advisors exclude liability to the full extent permitted by law (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (expressed or implied) arising out of, contained in or derived from, or any omissions from the Memorandum. This Memorandum, including any up-date or supplement to this document, does not and will not form part of any legal agreement that may result from the review, investigation and analysis of the Memorandum by the Recipient, intending investors and/or their respective advisers. Any agreement for the investment will contain any and all information, representation and warranties upon which the Recipient or any other intending investor should rely. The Memorandum (and the information contained herein) in confidential. It is not intended for and should not be distributed to any person other than as permitted herein. By accepting delivery of the Memorandum, the Recipient agrees that it will not transmit, reproduce or make available the Memorandum (or any information contained in it) to anyone other than to its professional advisers. Any such disclosure to the advisers of the Recipient must be on a confidential basis, for the purposes only of assessing the information contained herein as adviser to the Recipient. It is also a condition that the Recipient will immediately return this Memorandum and all information subsequently provided in relation to it as soon as the Recipient decides not to proceed with the investment opportunity or on request by SPCS. SPCS reserves the right to (a) suspend, cancel, prolong or shorten the period for considering, evaluating or making funding offers; (b) evaluate any funding offers and to reject any and all offers submitted, without giving reasons for rejection. Neither SPCS, Proserpine Capital Partners Pty Ltd nor MP Capital Partners Pty Ltd shall be liable to compensate the Recipient or any intending investors for any costs or expenses incurred in reviewing, investigating or analyzing any information in relation to the investment opportunity described hereto in making an offer or otherwise; and (c) in any case reject funding offers from investors who are not sophisticated or professional investors (or foreign equivalent) or who would require a disclosure document (or foreign equivalent). 4 EXECUTIVE SUMMARY SPC Solutions is committed to improving the Safety, Performance and Compliance outcomes within our client’s businesses. SPC Solutions is a response to a problem that many companies who have a need to manage their physical Assets, Transport and Logistics functions frequently struggle with. There is an ever-increasing focus on improving safety and compliance. Of course, delivering performance outcomes, cost and uptime, was still critical. There is also an increase in the number of businesses that struggle with getting the full benefit of Technologies or outsourced solutions they had invested. Many workers and laborers gets stretched too thin and largely distracted from the core responsibilities of their businesses. Today’s business environment demands greater focus on compliance to legislative regulation with greater penalties for non-compliance whilst concurrently having to deliver increased value to shareholders. Managing Fleet in today's world is complex and requires a level of expertise and dedication to stay abreast of an everchanging labyrinth of expectation. At SPC Solutions, we provide a new and fresh approach by giving our clients’ access to a ‘Centre of Excellence’ that is focused on developing and delivering solutions that are bespoke to our client needs and commensurate to the size of their organization. Every business is unique. Every solution is tailored. We have a passion to help achieve the results clients are wanting. We are ready to find a way and support their success. We support our clients through the provision of capability in the form of our knowledge (expertise) and capacity as they can access our center of excellence (Operations Centre) that supports their business to achieve results. Service offering At SPC solutions, we specialize in providing tailored solutions to organisations that need to manage Fleet, Transport & Logistics functions. This includes the provision of IVMS & Digital Technologies, Consulting & Labour Hire combined with traditional and nontraditional Fleet, Transport & Logistics administration and management services. Our solutions are offered across a broader range of the value chain than what traditional Fleet Management Organisation and/or Telematics Service Providers currently offer. The Market Global Fleet Management Market size is expected to reach $34,629 million by 2022, from $7,755 million in 2015, growing at a CAGR of 24.5% from 2016 to 2022. The Global market for this industry is also estimated to cross $55 billion by 2026. The number of Fleet management systems in active use in Australia and New Zealand is forecasted to grow at a compound annual growth rate (CAGR) of 16.4% from almost 0.8 million units in 2017 to nearly 1.7 million by 2022. 5 Financial Forecast SPC Solutions financial projections are conservative yet very bright. We will consciously work to sign up clients, gain momentum to generate appreciable sales, and consciously build a large client base with a robust marketing scheme to assist our expansion and economies of scale phase. Our sales revenue for year one is strategically and cautiously projected to be $400,000 and a net profit of $-68,000 growing to $900,000 and $240,000 in the second year, $1,500,000 and $668,000 in the third year, $2,000,000 and $976,000 in the fourth year, and finally climbing to $3,000,000 and $1,592,000 in the fifth year. Our operating costs have been carefully kept on the low to allow for more profitability and company growth. Financial projections- Year 1 Year 2 Year 3 Year 4 Year 5 -500000 Revenue net Profit Vision Statement To inspire a culture of continued improvement that makes those with whom we work better. Mission Statement To work in stewardship with clients to deliver revolutionizing safety, performance, and compliance outcomes, while we learn and adapt faster than our competitors. Company Principles We are a dynamic company guided by the following five principles: 6 Service Excellence: We are in business primarily for our client’s satisfaction. So, we are always interested in delivering consistent result through updated and improved excellence to our clients. Teamwork: We are always team focused, as we work collaboratively within our organization and with our clients. Simplicity: We believe business processes should be made simpler for everyone to understand and navigate easily. We are committed to ensuring that we always make the complex easier and simpler. Quality Management: We strongly believe in the essential role of good management and measurement in attaining our business vision. Innovation: We are always in a competition with our yesterday’s standard, innovating to be ahead of the market and the client’s needs. We always incorporate client’s feedback and input into our policies and strategies. 7 BUSINESS OVERVIEW SPC Solutions is committed to improving the Safety, Performance and Compliance outcomes within our client’s businesses. SPC Solutions is a response to a problem that many companies who have a need to manage their physical Assets, Transport and Logistics functions frequently struggle with. At SPC Solutions, we provide a new and fresh approach by giving our clients’ access to a ‘Centre of Excellence’ that is focused on developing and delivering solutions that are bespoke to our client needs and commensurate to the size of their organization. We support our clients through the provision of capability in the form of our knowledge (expertise) and capacity as they can access our center of excellence (Operations Centre) that supports their business to achieve results. Business Structure SPC Solutions Pty Ltd is a registered company with an Australian Business Number of- and Australian Company Number of-. It is an Australian proprietary Company, Limited by Shares. Business ownership At the current stage, SPC Solutions Pty Ltd is a partnership business currently owned equally by Mark Ronalds and Steve Boyce. The company is currently running as a partnership business, however, it is open to every form of partnership from investors or corporate organizations as it grows for the purpose of expansion and vision achievement. Company Locations SPC Solutions Pty Ltd business and operations center is located at 102 Foxton St Morningside QLD 4170. This location is perfect for our business, as it helps us reach our target clients easily and cost-effectively. We will also ensure we setup a strong digital presence that can cater for clients in need of our services outside our geographical location. SPC Solutions will not be geographically limited, as we will ensure we respond to our company’s growth over time in other territories digitally and physically when the need arise to aid business growth and smooth operations. Management team People are the single most important element in our operations. For the company’s success, we value everyone that is linked with our business; the directors, managers, staffs, clients, partners and customers. The company’s management team will be led by Mark Ronalds, who has spent 15 years in the corporate world under the Caterpillar banner before building several businesses over the past 8 years including a plant hire company of which he experienced first-hand the difficulties one faces managing complex assets. He brings a 8 wealth of experience as a business manager / entrepreneur and understands the difficulties faced by business owners and is a subject matter expert as it relates to Telematics and other digital solutions. Mark will be assisted by Steve Boyce who has gained over 30+ years of experience in Fleet and Asset Management. Startup Funding Analysis Below is a table highlighting our startup requirements and needs? (Provide some basic data to fill up this section). 9 COMPANY SERVICES Service Overview Managing Fleet, Assets, transport, and Logistics in today's world is complex and requires a high level of expertise and dedication to stay abreast of an ever-changing labyrinth of expectation. This high level of expertise is often unaffordable and unmanageable for many businesses. At SPC solutions, we specialize in providing tailored solutions to organisations that need to manage Fleet, Transport & Logistics functions. This includes the provision of IVMS & Digital Technologies, Consulting & Labour Hire combined with traditional and nontraditional Fleet, Transport & Logistics administration and management services. Our solutions are offered across a broader range of the value chain than what traditional Fleet Management Organisation and/or Telematics Service Providers currently offer. Our products and services are primarily delivered through our Operations Centre which integrates technologies with our expertise to deliver Safety, Performance and Compliance results. SPC Solutions are built and focused on Fleet, Transport and Logistics Value Chain. Service Listing Highlighted below is a detailed breakdown of our business services: Fleet and logistics Strategy development: Our fleet and Logistics strategy development services features services such as the Development & Execution of Strategic Asset Management Plans (SAMP), Development & Execution of Asset Management Plans (AMP), Fleet Resource Planning & Specialised Labour Hire, Fleet Replacement Planning Services & Consulting, and the Development and Monitoring of Fleet Performance Scorecards. Transport & Logistics Administrative Solutions: We have developed excellent and Industry standard transport and logistics administrative solutions over the years. Our solutions in this category include; Access to Route Planning & Vehicle Allocation Solutions, Scheduling Services, Mass Management - Load Security Services & Consulting, Driver Management Solutions, and Subcontractor / Grey Fleet Management Solutions. Fleet Administration Solutions: We offer fleet administration and management solutions via the following services; Asset procurement & Build Management Services, Fleet Administration Services (In-life management of transactional costs), Pool Fleet Administration Services, and Asset decommissioning & Disposal Services. Maintenance and reliability Solutions: We offer maintenance and reliability solutions to our clients via the following sub-services: Maintenance Planning & Scheduling Services, Repair Authorisation, Management & Maintenance History Capture, Maintenance 10 Contracts & Management Services, Access to Asset Health (EWS) Monitoring, and Maintenance Optimisation & Reliability Services & Consulting. Access to Fleet Systems and data: We also further provide to our clients access to Fleet systems and data to boost their operation efficiency. This service is rendered through the provision of Fleet Management Systems, Transport Management Systems, In-Vehicle Monitoring Systems (Telematics), Route Optimisation (Last Mile), Fleet Data Sources, Booking System, and Business Intelligence Systems Governance and risk management solutions: Every business needs to be well managed and risk well mitigated to survive and succeed. We offer the following solutions to our clients to help them achieve quality governance and risk management; Records & Documentation (Technical Writing Services), Risk Management Services & Consulting, Supplier Readiness Program/s & Network, Facilitation of Training & Education, and Audit & Review Services & Consulting. Delivery via SPC solutions operation center: We also serve our target clients through top-notch delivery via our SPC Solutions operation center. Our delivery system is known to offer clients the following; Reduced Safety incidents, improved performance (Reduced cost, improved availability/utilisation), improved compliance, increased revenues, and improved customer retention & satisfaction. 11 INDUSTRY OVERVIEW Global Industry Overview Global Fleet Management Market size is expected to reach $34,629 million by 2022, from $7,755 million in 2015, growing at a CAGR of 24.5% from 2016 to 2022. The Global market for this industry is also estimated to cross $55 billion by 2026. Fleet management enables enterprises to track and maintain their vehicles in a cost-effective, quick, and accessible way. It involves functions such as vehicle tracking & diagnostics, financing, driver management, and others. It helps business organizations that depend greatly on transportation to lower or completely eliminate the risks associated with staff cost, performance and operations, regulations compliance, and others. Reduced fuel & overall running costs, enhanced safety, and optimized fleet operations, with real-time fleet tracking and monitoring are the benefits offered by fleet management. Growth in adoption of wireless technology, obligatory incorporation of ELD, need of operational competency in fleet management, and increase in international trades are the major factors that fuel the growth of the fleet management market. The impact of adoption of wireless technology in fleet management is expected to be high in the near future, owing to its advantages such as quick access & response, wide-area coverage, and cost reduction, which help the vendors to increase their productivity, efficiency, and ROI. Furthermore, cost sensitivity among local players is expected to decrease, as the average service prices of fleet management software & communication technology are expected to decline during the analysis period. Efficient fleet management requires a lucrative operation management system, which can perform all the processes without much error. The activities that are crucial in fleet management include vehicle & driver tracking, asset management, two-way communication, driver safety & time management, after-sales services, customer relationship management, and others. 12 Global fleet management market by geography. Australia and New Zealand Industry Overview Berg Insight is of the opinion that the market for fleet management (FM) in Australia and New Zealand is in a growth period which will continue in the years to come. The number of Fleet management systems in active use is forecasted to grow at a compound annual growth rate (CAGR) of 16.4% from almost 0.8 million units in 2017 to nearly 1.7 million by 2022. FLEET MANAGEMENT SYSTEMS Fleet Management Systems'- 2022 The penetration rate in the total population of non-privately owned fleet vehicles used by businesses is at the same time estimated to increase from 16.9% in 2017 to 32.7% in 2022. The fleet telematics market in this region is today influenced positively by a number of different drivers including regulatory developments related to health and safety regulations, chain of responsibility legislation and road user charges. A large number of diverse vendors are active on the Fleet Management market in Australia and New Zealand, including several of the leading international players, as well as a plethora of small and medium-sized companies mainly focused on this region. Currently car park size is estimated at 2.3 M Assets in Australia, and AFMA forecast suggests that there will be continued growth in Assets in the industry. Market Opportunities There are several factors that drives the growth of the Fleet Management Market globally and locally. We have highlighted the most important ones to our business, which are listed below: Need of operational competency in fleet management, 13 Rising concerns about fleet safety, Mandatory government regulations, Compulsion of ELD implementation Rising adoption of wireless technology due to falling prices. Increasing local and international trades for good and services. COVID Recovery Infra-structure projects expected to further stimulate the industry Market Drivers Outsourcing benefits cost control: Large companies in Australia are focusing on digitization and automation of fleet management functions. Outsourcing car leasing and fleet management helps them to reduce the administrative overhead and save cost. Fleet is not the core area of companies, and they prefer to outsource fleet management and focus on core business Maturity of leasing industry: Australia is one of the most matured market for fleet management in APAC. Interest rates are lower, while cost of purchasing a vehicle is higher. Safe roads for sales force: An increasing sales force that requires mobility solutions results in increased fleet size, which drives the fleet management industry. Moreover, Australian roads are considered as one of the safest in the world, and organizations do not need to worry about the safety of drivers on the road Market Constraints Video conferencing and webinars: With the advent of new technology, like live webinars and video conferencing, it is possible to conduct online meetings and sales presentations, reducing the travel time and cost. Support network: The usage of support networks, like insurance, maintenance, servicing, and remarketing, which is required in this industry, is high and acts as a constraint to manage these small support service providers. Alternate strategies: Mobility solutions, like ride hailing, car sharing, etc., have started gaining prominence in Australia. However, it is still in its nascent stage. Target Market The industry we operate in is a highly lucrative one, as it is rapidly growing due to its connection with local and international businesses, which is bound to grow over the years. We will primarily be targeting businesses in Australia in our early years of operation with major focus on the highlighted market segment below: End-User-Fleet-Organizations – These are organizations that have their own Fleet and Logistics functions and need assistance in finding a means of improving the efficiency and/or effectiveness of its management. These organizations possess 14 and operate assets such as Specialized Light Commercial, Light, Medium & Heavy Trucks, and Plant & Equipment in Construction, Forestry, and Mining. Industry Service Providers – These are organizations that provide products or services into the fleet industry already and want to either expand their service offerings to add to or further captivate and retain their clients. They work with assets such as Specialized Light Commercial, Light, Medium & Heavy Trucks, and Plant & Equipment in Construction, Forestry, and Mining. Fixed Plant & Building Operators – These are organizations that operate fixed plant and/or Assets inclusive of manufacturing, assembly lines or smart buildings that can be monitored for Asset Health. Their asset types include; Fixed generators & engines, escalators, elevators and other connected buildings components, and smart manufacturing lines. Porter's Five Forces Analysis The fleet management market in Australia is dominated by few local suppliers with majority of the market share, however, there is intense rivalry among suppliers, resulting in medium buyer and supplier power. There is a high barrier for new entrants. Threat of substitutes is low– though moderate at this point. Supplier Power: Local suppliers dominate the market with global suppliers having a presence through partnership. All fleet leasing companies provide the notated leasing model, along with operational leasing. Fleet management companies have moderate power, owing to the competitive supply market. Barriers to New Entrants: The supply market is highly competitive, and it is complex for new entrants to capitalize the market. Setting up maintenance network, providing widespread services across Australia, and initial investments are barriers for new entrants. Intensity of Rivalry There is intense rivalry among the existing players, and all of the companies offer similar services. There is an intense rivalry among the top suppliers, owing to competitive pricing strategy. Threat of Substitutes Organizations have started to pilot alternate mobility solutions, like ride hailing services and avail taxi services, for other mobility needs. 15 Ride hailing companies are expanding geographic reach across Australia cities. However, the threat of substitutes is low–moderate, as the geographic presence of these suppliers is low and adoption by corporate is minimal. Buyer Power Large organizations prefer the novated lease model. Corporate leasing contributes to high percentage of leasing business. However, the cost of switching the suppliers restricts the buyer power to be within the moderate level. Competitive Comparison There are two major categories of competitors in the Australian Fleet and Asset management industry. These competitors can be categorized as FMOs and TSPs. FMOs focuses more on finance and not really fleet management, while TSPs focus more on SaaS (self-service). According to Berg insights ranking, Teletrac Navmanas is the largest provider in Australia and New Zealand, having surpassed the milestone of 100,000 active units in the region. Verizon Connect is estimated to be the second largest player, followed by E-ROAD and MTData. There are also other leading competitors such as Leaseplan, Eclipx, Toyota Finance, Element, and Mix. We will set ourselves apart from every other competitor through several strategic competitive advantage explained in the next section. 16 STRATEGY AND IMPLEMENTATION Evaluation We will closely and strictly monitor the following areas to evaluate our business performance and determine lapses that needs to be filled: Monthly and annual sales. Monthly and annual profit. Repeat business. Customer satisfaction and referrals. We strongly believe that our success depends on the quality and convenience of our service, brand image, client’s opinions, and competitor response. Strategic Competitive Advantage Differentiation Focused Tactics: Broaden the supply chain to provide additional services that neither FMOs nor TSPs have for example EWS. We will also change the way current services are delivered to be more aligned with modern needs. Differentiation: FMOs focus is on Leasing (Finance) & not built upon Fleet Management offering, while TSPs are focused on SaaS and not full service. So, neither FMOs nor TSPs can offer solutions across the entire value chain. Customer Intimate Tactics: Give clients a real say in the development of our business, e.g. through the creation of a Think Tank. We will respect the decision maker – Our expertise and our client's decision. This will be exemplified through the creation of a system that engages by first understanding then being understood – Offer solutions). We will also monitor client results and not just our results. This for example will be carried out through the development of success measures that champion the client KPIs and not our KPIs. Differentiation: FMOs are internally focused and they lose sight of the clients and their needs, while TSPs don’t have fleet management knowledge or necessary capabilities. Our prospects tell us that both FMO and TSPs are not providing any value other than some administrative services. Their focus majorly remains on developing further self-service rather than change management. Deliver through excellence Tactics: We will deliver services through established and proven methodologies. This will be carried out by implementing Risk Based Asset Management approach. We will deliver with quality by obtaining Excellence or NHVAS Accreditation. We 17 will also demonstrate to the clients with proven track records through Audit and Review capabilities. Differentiation: Competitor’s services are delivered in ad-hoc manner and inconsistently. FMOs do not want the responsibility of managing complex assets as it does not fir the cookie cutter approach of their business. No services delivered by these two categories actually meet HVNL standards. Marketing Strategy Content marketing: Content marketing strategy is an important strategy that will help us emphasize education to influence potential clients. Our content marketing effort will focus on creating and distributing information relevant to prospects’ needs in order to attract those best aligned. Since communication is ongoing, content can be tailored to reflect what we learn about leads over time, and may include varied formats like infographics, webpages, podcasts, videos, blogs, white papers, webinars etc. Inbound marketing: We will use messaging that is relevant and appears in the right place at the right time. Our inbound marketing efforts will be designed and executed by creative since its focus will be on inviting people to try our business out, rather than general traditional advertising. Social Media Marketing: Our social media marketing efforts will be targeted at business pages and channels. We will employ tools like LinkedIn and Facebook business ads to target and reach out to businesses that are potential clients. We will also share contents such as videos and images frequently to boost our search engine optimization (SEO) ranking. Search Engine Optimization: Our website is an anchor for our digital marketing efforts. So, we will ensure we drive traffic to our website with the right keywords, ensuring it appears among the top unpaid search results on search engines. We believe this will help us generate a sizable amount of leads since most people turn to the internet for their business solutions today. Media and PR: We will ensure we spend adequately on our public relations, ensuring we build a solidly good brand reputation and image with the public, which we believe will help us go a long way in converting clients. We will also make good use of client’s testimonials, word-of-mouth, interviews, and quality editorials. Strategic Alliance: We will form strategic partnerships and alliances with businesses and organizations we believe will help us generate and convert more leads. We will strive to form partnerships and alliances with organizations and associations that most of our potential clients belong to. This will help us gain credibility and easy access to their client base, which happens to be our target client. Industry Events: We will use this as a much targeted source to establish and strengthen relationships with key industry partners, customers, and prospects; identify market trends 18 and opportunities; and gain an understanding of what our competition is offering in the market. Face to face Sales: This will be the larger focus. It involves real-time interaction, which gets the right information in front of prospects and customers at the right time, where questions are addressed immediately. This will also help us build on current existing relationships. Pricing Strategy At SPC Solutions, our pricing system will be based on what is obtainable in the industry, as we don’t intent to overcharge (except for premium and customized services), and we don’t intend to charge less than our competitors. We strongly believe that ridiculously low price affect trust and reputation in our industry, so we will charge fairly for our services. Our management will put plans in place to offer discount services to reward loyal clients and premium registered clients. The management will also reward clients who refer people to us with special discounts. Publicity and Advertising Strategy We are aware of the power of publicity and advertisement for new businesses like ours which is why we will create a budget that will help us access various publicity and advertising platforms that will enable us reach out to our potential market. At SPC Solutions, we will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our business. Here are some of the platforms we intend leveraging on to promote and advertise SPC Solutions in the early years of operation: Encourage our loyal clients to help us use Word of Mouth mode of advertisement (referrals) Advertise our business in relevant print media and popular business and entrepreneur shows and events. Promote our business online via our official website List our business on local directories Sponsor relevant community programs Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our brand Engage customers with monthly SMS Install one or two billboards in strategic locations Direct coupon mailing approach Engage in business Event sponsorship and partnership from time to time. Distribute our fliers and handbills in target areas. 19 Sales Strategy We will start off by matching the industry’s prices and we will be closely monitoring our financials to make sure that we develop a sustainable business without heavily discounting our services to win clients. We will train all our employees, especially those facing the clients, in customer relations to make sure that our clients are fully satisfied, as such clients will not only stay longer with us but will also refer other clients to us. We will offer a 21st century client support system for all our clients with our customized customer care line. We will offer limited discounts to our clients with large orders and also provide incentives for new client referrals. Sales Forecast The sales forecast indicates that growth will be slow and steady. Growth will be slow because of the time and effort needed to develop the client database. Our operations won’t be the slowing element, but external market factors. The following table and charts illustrate the sales forecast. We're sure this is a manageable forecast. Data Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $400,000 $900,000 $1,500,000 $2,000,000 $3,000,000 COGS $105,000 $237,000 $396,000 $528,000 $792,000 Gross profit $295,000 $663,000 $1,104,000 $1,472,000 $2,208,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Year 1 Year 2 Revenue Year 3 COGS Year 4 Year 5 Gross profit 20 Client Engagement Model Our client engagement model will be client-centered, which studies has revealed that increases revenue over the years. We will be a client-focused company, as we strongly that finding opportunities for the client leads to opportunities for SPC Solutions. This will enable SPC Solutions to further develop profitability over-time. Highlighted below are a summary of our client engagement model: 1. Connected Assets enable data capture 2. Data mining & analysis leading to improvement opportunity 3. Business case development 4. Include additional administration services or deliver consulting projects Connected Assets Additional Services and/or Project Delivery Administ ration Data Mining & Analysis Business Case Development Client Engagement Function At the center of client engagement is the SPC Solutions Centre of Excellence (Operations Centre). Connected Assets: Online via portal, CoE & Fleet Managers. Data Mining & Analysis: On-line via portal, CoE, Data Scientists, Consultants & Fleet Managers. Maintenance & Reliability: Online via portal, Reliability & Maintenance Planners, Fleet Managers & CoE. Continued Improvement/Consultancy: Consultants, Fleet Managers, Labor Hire, Coe, and online Portal. 21 Reporting: Online via portal, Fleet Managers, Consultants. Administration Services: On-line via portal Dedicated Fleet Manager, CoE, Labor Hire, 3rd Parties. Connected Assets Administration & Governance Services Centre of Excellence (Operations Centre) Reporting Data Mining & Analysis Maintenance & Reliability Continued Improvement/ Consultancy SWOT Analysis Strengths A unique offering in the marketplace. High level of customer interest. Strong initial relationships. Reliable and credible suppliers. Highly skilled workforce with on-the-field years of experience. Automation of activities to consistently deliver quality to our clients. No direct competitors (Competitors don’t integrate IVMS technologies) Weaknesses New company and product offering. Investment needed in new technologies and operations. The company has a need for financial backing to show strength for new clients. There are gaps in the product range currently. The need to rely on external operational support from potential investors Opportunities Advantage in new technology and gain in market share in the new product category. The market development will lead to dilution of competitor’s advantage and enable us to increase competitiveness compared to the other competitors. Lower inflation rate – The low inflation rate brings more stability in the market. Opening of new markets because of government agreement. 22 The new taxation policy can significantly impact the business subject to current R&D opportunities. The new technology provides an opportunity to practice differentiated pricing strategy in the new market. It will enable them to win and maintain loyal customers with great service and lure new customers through other value-oriented propositions. Economic uptick and increase in customer spending, after years of recession and slow growth rate. Threats Increasing prices in China can lead to serious pressure on profitability. Increasing trends toward isolationism in the American economy can lead to similar reactions from other governments thus negatively impacting the international sales. Lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets. Shortage of skilled workforce in certain markets represents a threat to steady growth of profits. No regular supply of innovative products – Over the years we have developed numerous products but those are often responses to the development by other players. 23 OPERATIONS AND HUMAN RESOURCES Fleet, Assets, Transport and Logistics Management is about understanding and managing the flow of data through a process. To be successful we will deliver through a framework that outlines best practice in the form of standards that are to be achieved. This is not done by either FMOs or TSPs. We can achieve this by focusing on the following: Integrating the use of Telematics to capture data as standard within our delivery processes Digitalizing forms and decisions where possible (such as Defect Reports as an example) Using the data to trigger actions that lead to outcomes. Use our CoE for monitoring, engaging when human intervention is needed and to build a case for continued improvement. Capture records to be able to demonstrate compliance as is obliged by regulations. Adaptive pathway A three staged approach over a 5-year period to establish SPC is outlined below. Whilst good planning is a key ingredient to success, we need the ability to be flexible and adapt if necessary. Hence our operation roadmap is considered an adaptive pathway to success. Stage 1 - Building Foundations: This is to ensure that the business is set-up and ready to operate. Stage 2 - Go to Market: Here is where we start prospecting and selling to bring on active clients. Stage 3 - Creating Economies of Scale: This is the phase where we scale up the business to benefit from economies of scale. Building Foundations: The stage 1 will feature the introduction of investment partners and getting onboard strategic partners that will benefit the operations and growth of the company. It will also be characterized by systems implementation, with an estimated fleet size of 800, and revenue generation of $400K PA. The stage is projected to be done and completed by the end of 2021. Go to Market: This stage 2 will feature MVP, creation of brand awareness, targeted prospecting and sales rack up, conscious building of excellence and professionalism. At this stage, we expect the business to generate $1.5M PA from a projected fleet size of 3000. This stage is calculated to finish by the end of 2023. Economies of Scale creation: This is our projected final stage of operations, where we start focusing on expansion and economies of scale. It will bring about innovation of new services, study and penetration of new markets, leveraging on platforms, partnerships, and industry tools for growth, and gaining market and client assurance. This stage is projected 24 to generate a revenue of $3M PA for the business from a fleet size of 6000. This economies of scale stage will be over by the end of 2025. Operational Plan Summary Highlighted in the table below is a summary of our operational and growth plan: Building Foundations Introduce investment partners On-board strategic partners Solutions to start Systems implement ation Establish business plan/s Execute Garrett EWS Agreement Agree initial solutions Identify possible investment partners Identify key partner requirements Identify systems requireme nts Identify key partners – Execute agreements Submit proposals/execute Establish supply & on-board networks investors Go to Market Develop/POC initial solutions Establish Services Agreements/Contracts Develop Sales collateral (Reasons to buy) Select systems providers/ execute agreements Initial prospecting Implement ation of systems Minimum Viable Product Create brand & awareness Targeted prospecting & Sales Building Excellenc e Finalize Minimum Viable Product Review/refresh Website Identify prospects for targeted prospecting Develop Excellence framework specificatio ns Connect with Industry Develop Solutions groups Road-Map Conduct an Awareness campaign (LinkedIn articles) Review/launch marketing Ramp-up prospecting & Sales Develop detailed process flows – Begin automation Implement Fleet Excellence MS approach 25 Creating Economies of Scale Innovation of new Services Penetration of new markets Leveraging for growth Gaining Assuranc e Development and launch of new products/solution s (as per roadmap) Identify additional markets/opportunities to prospect Leverage existing clients to reach new clients Increase existing client wallet with new solutions Monetize the Supply Network Obtain NHVAS/IS O55000 accreditati on Identify in-source opportunities Continue to automate work-flow Operational Segments SPC Solutions Operations is segmented into two key areas of focus, which are highlighted below: Business Administration: This includes all function for the business to operate effectively and evolve through continued development. Functions include Finance, HR, Payroll, Marketing, and IT development. This segment is targeted at utilizing the expertise of investors’ infra-structure to deliver on Business Administration Services. Client Interaction: Client facing includes all functions that are involved in the delivery of services directly to a client. Functions include Fleet Management, Maintenance & Reliability, Centre of Excellence, Administration and Supply Chain Management. We will develop an infrastructure that will support the needs of our clients based upon volumes. A focus on automation of standard work-flows is critical to control costs wherever possible. Client Interaction To deliver Safety, Performance and Compliance outcomes means that we need to deliver as per best practice standards and within a Management System Approach. We have carefully highlighted below our key activities involved in our client interaction to ensure high retention of converted leads: Strategic Fleet Management & Planning: Consulting to SAMP/AMP and Fleet Replacement Planning. Transport Management: Route Planning & Scheduling, Mass Management, Driver Management / Fatigue Management, and Sub-Contractor Management. Fleet Administration: Procurement (Asset/Leasing), Fuel & Fuel Cards, Infringements, Registration Renewals, Tolls, 3rd Party Payments, and Accident Management IVMS. 26 Maintenance and Reliability: Maintenance Optimization/Reliability, Maintenance Planning, Repair Authorization & Management, and Asset Health EWS. Governance and Risk Management: Risk Management, Audit & Review, and Training & Education. Fleet Systems and Data: Systems administration, Monitoring, and Reporting. Systems Requirements There are several operating systems that will need to be either fully or partially integrated. They include: Fleet Management System Telematics (IVMS) Asset health Monitoring (Garrett) Business Intelligence System Route Planning Supplier Network A network of key suppliers shall be required to be established. They include: Specialist Partners (Key Partners) Repair Network (Nationwide) Training Providers (RTOs) 24/7 Assistance Providers Registration Authorities Fuel Companies We will also monetize our supplier Network by collecting rebates/discounts and offering to other organizations where they no longer need to conduct the due diligence. Human Resources There are several specialist roles and positions in the organization that will be created to facilitate smooth running of our daily business. They include: Data Scientists Administration Officers Maintenance Planners Reliability & Fleet Consultants Fleet Managers Simplified HRM Target Required number of employees The budget on each employee role 27 What type of Employee Needed? Specific job description and role of required Employee  When the Employee is needed Where and how fast to find the Ideal Employee How best to manage each Employee for business continuity. Human Resource Strategy The successful management of Specialist Roles is a key aspect of ensuring SPC Solutions can be a successful company. These includes: Ensuring the number of people employed or engaged at any time is optimal Ensuring that people have the right experience, capabilities and/or qualifications Automating standard processes where possible to be able to manage more assets with an optimal number of people Having flexibility within the workforce (To ramp up/down and/or have multiple capabilities) To manage our Human Resources effectively we shall; Ensure a core of capable people that we can build knowledge bases around. Meaning that the few core people shall be responsible for major operations of the business. Employ people that either have technical qualifications and/or can demonstrate that they have over 5 years practical experience managing within their discipline. Take advantage of the ‘Grey Workforce’, Contractors and/or Consultants to ramp-up capacity when needed. Employ several younger technicians and/or women that have trade qualifications and want to stay in the trade yet not on the workshop floor in fleet administration roles. These people can further develop to be future Fleet Managers and consultants. This will also enable flexibility in the workforce. Utilize people who may want to work casually and from home to conduct Administration type of activities. Identify and automate process flows to reduce the number of people required to administer tasks Organizational Governance The business is governed by several teams as follows: SPC Solutions Board: They are to provide governance and oversight of the Leadership team. The board will be made up of Founders, Investors and Key Partners as invited. Leadership team: This team shall be made up of a Senior Leadership group actively involved in the development and execution of our business strategy. They will have the following key area of focus: 28 Review the management decision making and reporting framework Review the composition, skills and experience of the Board, relative to the strategic direction Identify gaps in governance policies Develop a risk management and reporting framework Prepare crisis management, disaster recovery and business continuity plans. Think Tank (Mastermind Group): This set of people will be responsible for product roadmaps and innovation. They will be made up of Key partners and Key Customers. This can be informal however are invaluable for VOC. Potential Thought Leaders throughout the industry Management Team Leadership The management team shall be led by the following seasoned business and operations managers: Mark Ronalds: Mark spent 15 years in the corporate world under the Caterpillar banner before building several businesses over the past 8 years including a plant hire company of which he experienced first-hand the difficulties one faces managing complex assets. To solve these issues Mark explored the use of Telematics technologies and when was unable to find a suitable solution, decided to build a team and develop his own telematics offering. The solution was successful and decided to launch into the market and has landing large clients and investors in Australia and New Zealand. Mark brings a wealth of experience as a business manager / entrepreneur and understands the difficulties faced by business owners and is a subject matter expert as it relates to Telematics and other digital solutions. Steve Boyce: Steve has over 30+ years’ experience in Fleet and Asset Management and is at the forefront of Risk Based Asset Management and adopts the latest Asset and Risk Management principles integrated with the latest technologies to achieve results. Steve has managed some of the largest and most diverse fleets in Australia ensuring their Asset are managed effectively. He has unique qualifications within the industry that backs up his 30+ years Fleet and Asset Management experience. He is a Diesel mechanic by trade with Post Graduate Qualifications in Business (Quality Management) from Swinburne University and Post Graduate Qualifications in Applied Science (Innovation and Service Management) from the Royal Melbourne Institute of Technology. Personnel Plan At SPC Solutions, we start a minimum but adequate number of employees. We will hire employees to fill the following roles: Data Scientists, Administration Officers, Maintenance 29 Planners, Reliability & Fleet Consultants, and Fleet Managers. Highlighted below in the table is an estimate of our wage structure: Roles Year 1 Year 2 Data Scientists Provide data Provide data Year 3 Year 4 Year 5 Admin officers Maintenance & Planners Reliability & Fleet Consultants Fleet Managers TOTAL 30 FINANCIAL OVERVIEW Important Assumptions Our financial plan depends on the following important assumptions. The key underlying assumptions are: Growth will be moderate, cash flows steady. Revenue will increase at a steady and high rate for the next five years. Sales rate keeps improving. Costs will increase at a rate of 3% to 5% per year. Slow-growth economy, without major recession. No unforeseen changes in the popularity of business model Access to loan and financing sufficient to fulfil campaigns and expansion plans Financial Outline The following sections outline our financial plan: Start-up Cost Projected Expenses Sales Forecast Cash Flow Profit and Loss Start-up Cost (Provide some basic data to fill up this section). Projected Expenses (Provide some basic data to fill up this section) Sales Forecast Highlighted below is our projected sales forecast showing a steady revenue growth over the years: 31 Data Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $400,000 $900,000 $1,500,000 $2,000,000 $3,000,000 COGS $105,000 $237,000 $396,000 $528,000 $792,000 Gross profit $295,000 $663,000 $1,104,000 $1,472,000 $2,208,000 REVENUE Revenue- Year 1 Year 2 year 3 year 4 Year 5 Cash Flow (Provided data above will be used for this section) Profit and Loss (Provided data above will be used for this section) 32 33