BUSINESS PLAN ON SECURITY

SERVICES

FOR
CLAEWATER TECHNOLOGIES LIMITED

October, 2014

1.0 Executive Summary

Today the world is defined by the term 'Information Age.' All businesses, both large and
small, require effective and efficient business communication solutions in order to
continuously meet their customer expectations and attain a competitive advantage,
and therefore be successful. Whether a company is large or small it is realized that, the
right amount of financing, materials, talent, and experience are not enough to succeed
without a good communication system in place that enables smooth transaction sealing.
Communications is at the heart of regional and international integration, with the
development of an efficient, cost effective and technologically advanced communications
infrastructure essential to Nigeria's success in the global market. With the economies of
most countries becoming increasingly sophisticated and knowledge-intensive, there is a
greater need for the existence of an efficient network that will enable decision-makers to
have access to timely and accurate data to facilitate decision-making and transaction
sealing.
We are on the brink of penetrating a lucrative market in a rapidly growing industry. The
current increase in the security situation in Nigeria and competition among existing
companies presents an opportunity for Claewater Technologies to penetrate the market. Our
services/products will be positioned very carefully. They will be of extremely high quality to
ensure

client

satisfaction,

supported

by impeccable

customer

service.

Claewater

Technologies will offer the expertise that a proactive oriented and market-opportunity
seeking company needs to develop and maintain a good communications system. We intend
to provide a number of necessary services to the business community and to the public.
Initial plans are to introduce security services in two different categories in the security
market namely Guarding Technology and Protocol & Armed Control with the primary focus
on providing armed protection for the movement of both asset personnel in Nigeria. These
services includes: VIP Protection, meet and greet airport pick-up and drop-off assignment as
well

as

dedicated

Armed

Escort

Services.

We intend to provide an armed response team that will undergo a great deal of highly
specialized training in order to deliver the best armed response and 24 hour guard services.
They shall undergo several training courses which will involve perfect training in the

Claewater Technologies Ltd Business Plan on Security Services

Page 2

installation and operations of closed circuit television or CCTV services, electronic security
systems such as alarms and electric fencing and so forth.
We realize that, for us to prosper there is need to be flexible and responsive, to delight
clients by providing them what they want, when they want it, and before the competition
can offer it. The company intends to achieve this through a systematic approach that is
customer-centric, and in which the customer's business objectives enjoy top priority. This
involves not only skill and depth of knowledge, but time devoted to studying a customer's
needs. Claewater Technologies will view the provision of value-added services over the
entire scope of our customers' requirements as not only essential, but as a competitive
advantage which the company protects as a key asset; from service concept to service
provision, the intention will be to ensure that every policy and procedure, system and
process has the objective of improving the flexibility and response of the whole company.
There is a need for interaction between all functional areas, particularly between marketing
and service logistics, if the project is to realize its full potential, with marketing being
employed

as

strategic

weapon.

Once the needs and processes are understood and described, leading edge products and
best-of-industry skills will be applied to design and develop a fitting solution to satisfy the
need and enable the client's business in the most cost effective way.
Our marketing strategy will be based mainly on ensuring customers know what need the
service(s) is able to fulfill, and making the right service and information available to the
right target client. We intend to implement a market penetration strategy that will ensure
that our services are well known and respected in our respective industry. Our marketing
strategy will convey the sense of quality and satisfaction in every picture, every promotion,
and every publication. Our promotional strategy will involve integrating traditional
advertising, breakfast seminars, events, Internet marketing, personal selling, public
relations, and direct marketing, details of which are provided in the marketing section of this
plan.
The intention is to go into partnership with foreign organizations that provides top security
to add value to our business in Nigeria.
In a nutshell, we don't just intend to market and sell our service, but to market and provide
a service that will ensure our client's customer satisfaction, ease of communication,
improved corporate logistics, and cost savings on transactions ensuring a total-quality
environment. This will ensure we establish and maintain a reputable corporate image.

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However it should be noted that timing and information provision will be of the utmost
importance and significance in terms of the project's introduction onto the market. In
addition we are appreciative of the fact that entering such a market is not a bed of roses,
particularly as it is still a relatively new concept needing to be implanted in people's minds
in terms of the benefits it may bring to them, as well as the number of 'laggard' firms who
often do not easily appreciate the need for change, be it to their benefit. In such a case the
need will exist to aggressively market the concept to these organizations and individuals
through various means. Hence the intention is to utilize the technical and business knowhow of technical partners in order to implement and attain our business objectives.

NOTE: All currency values in this plan are expressed in US Dollars since most of the
transactions shall be in Dollars.

1.1 Objectives
Our business strategy will revolve around the need to provide quality service and products
to our various target clients, in the process fully satisfying their needs. This shall be
undertaken through recruitment of a professional telemarketing, sales and technical team
and the provision of good quality custom-designed services, catering for the clients'
particular needs.
With time our marketing campaign will increase the knowledge of our services to the various
market segments we shall be targeting. This is particularly so with organizations looking at
establishing a competitive advantage(s) on the market due to increased competition, hence
providing them with the opportunity to focus on their core activities whilst procuring
increased business from new and existing customers. Marketing material shall be
professionally done so as to be reflective of our intended image and reputation. We shall
position ourselves as a quality total communications solution service provider that strives to
provide effective and efficient communication solutions. We intend to establish a good
rapport with all the relevant stakeholders.
In summary we intend to attain the following objectives:

Continuously provide professional quality security services on time and on budget.

Develop a follow-up strategy to gauge performance with all our clients.

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Implement and maintain a quality control system and assurance policy.

To continuously formalize and measure cross-functional working communication so

as to ensure that the various departments work harmoniously towards attainment of
company objectives.

To instill a culture of continuous improvement in beating standards of customer

satisfaction and efficiency.

We are fully committed to supporting growth and development in the economy.

1.2 Mission
Claewater Technologies Ltd offers marketing oriented organizations a reliable, high-quality
alternative to in-house resources for business development, market development, and
channel development on a local and regional scale. A true alternative to in-house resources
offers a very high level of practical experience, know-how, contacts, and confidentiality.
Clients will know that working with Claewater Technologies is a more professional, less risky
way to undertake communication with its various stakeholders, than working completely inhouse with their own people. Claewater Technologies must also maintain financial balance,
charge a reasonable value for its services, and deliver a higher value to its clients. Initial
focus will be development in the regional markets, or for international clients in Nigeria.
Claewater Technologies is also an excellent place to work, a professional environment that is
challenging, rewarding, creative, and respectful of ideas and individuals. Claewater
Technologies ultimately provides excellent value to its customers and fair reward to its
owners and employees.
Internally we intend to create and nurture a healthy, creative, respectful and enjoyable
office environment, in which our employees are fairly compensated and encouraged to
respect the customer and the quality of the service we provide. In addition follow-up will be
mandatory

so

as

ensure

customer

satisfaction

and

make

any

improvements

as

recommended by the customers in future. We seek fair and responsible profit, enough to
keep the company financially healthy for the short and long term, and to fairly compensate
investors for the money and risk.

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1.3 Keys to Success

The keys to this project's success will undoubtedly be effective market segmentation
through identification of several niche markets and implementation strategies. Along these
lines the company intends to implement personal selling and direct marketing strategies to
the target markets. Hence the key success factors will include the following:
1. Excellence in fulfilling the promise: Completely confidential, reliable, trustworthy
expertise and service(s) through the provision of an uncompromising service. This
dictates that we have in place the latest technology, hardware and software, and
well-trained personnel so as to fulfill the aforesaid.
2. Timely response to clients' orders: We cannot afford to delay our clients for
whatever reason, as this will have a negative bearing on our image and reputation,
including future business. Hence we need to be continually communicating with the
client ensuring we provide needs-based solutions.
3. Skill and depth of knowledge: Considering the nature of our services and their
relative infancy on the market, the skill and depth of knowledge of our personnel
shall be of utmost importance in determining the provision of the service(s) to the
end-users.
4. Marketing know-how: In a relatively volatile market there will be a need to
aggressively market our business and the services we provide so as to be
continuously at the top of our prospective and current clients minds. This will also act
as a temporary deterrent for companies contemplating entering our market.
Advertising shall be one of our competitive advantages.

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5. Leveraging from a large pool of expertise: The company's various proposed

alliances with technological partners shall prove invaluable considering the skills and
intellectual capacity these partners will have in the fields of design and system
integration, implementation and execution, lifecycle support and understanding, and
in the application of new technology. This has the potential of proving to be an
important differentiator on the market.

1.4 Key Performance Indicators

i. To define professional code of beliefs for the security services industry.
ii. To eliminate access barriers to customers of security products that enhance safety of lives
and property at all times.
iii. To demonstrate the overwhelming desirability for high quality security services at
affordable rates for different categories of clients and customers.

2.0 Company Summary

Claewater Technologies, Ltd. was founded in July, 2014 as a Private Limited Company
through the foresight and vision of the three directors. It was formed through the vision of
the directors having identified a large potential market for their products and services. For
most of its initial existence, the company intends to utilize the large database and

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experience of its directors in obtaining orders, with the intention of establishing close
relationships with its clients.

2.1 Company Ownership

Claewater Technologies is a company incorporated at the Corporate Affairs Commission
(CAC) in Nigeria with RC: Though relatively new, the directors realize their company's vast
potential market and opportunity for growth given implementation of the appropriate
strategies, aided by the necessary finances. Claewater Technologies was established with
2,000,000 shares equally distributed amongst the directors.

2.2 Start-up Summary

Total start-up expenses covered (including legal costs, logo design, stationery and related
expenses) came to approximately USD192,000. Start-up assets required and utilized
included personal computers, vehicles, office furniture, and other office equipment.
NOTE: All currency values in this plan are expressed in US Dollars.

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3.0 Products and Services

Claewater Technologies offers the expertise a proactive oriented and technologically inclined
company needs to perform its operations efficiently and effectively, through allowing it to
concentrate on its core activities whilst deploying the latest communication implements. Its
wide range of solutions will incorporate and embrace customer contact centres, technology
enabled relationship management, technology enabled marketing and technology enabled
selling solutions, multi-service data and voice networking as well as Individualized Customer
Relationship Management centres, integration services and Knowledge Management
Consulting. Hence we intend to provide a number of necessary services to the business
community, primarily the upper echelons, as well as the public. These can be summed up in
three main areas:

Protocol and Armed Reaction

Guard Force

Using Technology to achieve the two (2) aforementioned services

Hence we intend to offer the expertise a high-technology company needs to develop new
product distribution and new market segments in new markets.

3.1 SWOT Analysis

We are presently in a highly lucrative market in a rapidly growing economy. We foresee our
strengths as the ability to respond timely to the market dictates and to provide custom
designed technological services. Our key personnel will have a wide and thorough
knowledge of the technological services we intend to provide, and expertise, which will go a
long way towards penetrating the market. Below are the summarized strengths,
weaknesses, opportunities and threats.

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3.2 Macro-environment
Research indicates that the younger more ambitious market presently in the executive and
overall business sector, being more educated and aware of the global environment, assesses
and implements its core activities to a much higher degree than past trends have indicated.
This is exacerbated by the increase in competition in all industries. Therefore with the
emergence of this generation of individuals, the appreciation of quality services and
business communication solutions/recommendations that provide for and enable company
growth, dictates that our service lines will be popular.
The current drive by the government towards a more diversified economy presents an
opportunity for our business to propel and excel in our intended markets, benefiting from
the support of the concerned institutions and trade bodies. In addition with the country
increasingly becoming an economic hub, we foresee a demand for high quality business
communication solutions. Through undertaking our business activities professionally, we
foresee that it should not be too difficult to gain market acceptance if we deliver the final
service timely and of good quality, at competitive rates.

3.3 Sales Literature

The business will begin with a general services brochure establishing the positioning of the
company and services clients are able to benefit from. These shall be designed for the
decision-makers ensuring they are not too technical, but short and concise. Literature and
mailings shall also be designed in such a way that they establish a high-quality look and
feel, in order to create and fulfill the right sense of professionalism. Breakfast seminars shall
be undertaken in the initial period of the project targeting decision-makers and ensuring
they understand the benefits of our services in today's business environment.
Another important marketing tool will be CD-ROMS. These shall be targeted at business
executives who often do not have much time on their hands and are looking at utilizing
every second productively. These CD-ROMS shall be most useful as they will listen to them
whilst in transit from one business meeting to another.
We also intend to have well designed posters, table tents, T-shirts, mouse pads, keysholders, and mugs distributed at strategic points and procured through reputable
manufacturers so as not to compromise on quality. Potential strategic points for our
literature include hotels, lodges, computer hardware and software distributors, multinational
organizations, banks, financial institutions, Government agencies amongst others.

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3.4 Technology
Claewater Technologies will strive to maintain the latest business communication hardware
and software capabilities so as to ensure we are continuously at the forefront in our market
arena. The one certainty in our industry is that technology will continue to evolve and
develop, changing what we market as well as how we market it. Our aim will be to be aware
of the implications of this new technology and utilize it in our existing framework where
possible.
Complete presentation facilities for preparation and delivery of multimedia presentations on
Windows machines, in formats that include on-disk presentation or video presentation are
also possibilities that still are being looked into. We also intend to have the latest and most
efficient software in place to enable smooth operations. Please see the capital equipment for
further details.

3.5 Future Products and Services

In putting the project together we have attempted to offer enough services to allow us to
always be in demand by our clients. However, technological developments have provided us
with a new era of opportunities for the various organizations in which we can only guess at
the needs. For example, current rapid innovations/ development of Wireless Application
Protocol (WAP) technology, which is seeing a new service being introduced almost on a
fortnightly basis overseas, presents an opportunity to be realized, particularly focusing on
WAP enabled cellphones that enable individuals to access or send their email messages over
the cellphone.
There is also the possibility to introduce video-conferencing, as we will have the necessary
infrastructure in place. Applications such as banking by cellphone, online telephone
directories and delivery of breaking news headlines are also future services to be utilized.
However, the most important factor in developing future services will be market need. Our
understanding of the needs of our target market segments will be one of our competitive
advantages. It is critical to our effort to develop the right new services.

3.5 Guard Force

Our proposed Guard Force members are generally uniformed and act to protect property
and individuals by maintaining a high visibility presence to deter illegal and inappropriate

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actions, observing (either directly, through patrols, or by watching alarm systems or video
cameras) for signs of crime, fire or disorder; then taking action and reporting any incidents
to our proposed clients and emergency services as appropriate.

3.5.1 Guard Force Profiles and Duties

Our proposed Guard Force shall comprise of able bodied men and women who have served
in various field of security such as electronics security, industrial, private premises and
government institutions, with many years of experience. The minimum entry qualification
for enrolment into our Guard Force is a Secondary Education having passed the WAEC,
SSCE, GCE or NECO examinations.
The Chief Security Officer (CSO) shall coordinate the activities of the Security Officers, the
Supervisors or Surveillance Officers and the entire Guard Force. The Guards shall be posted
to mann the various beats in the location according to the vulnerability, schedule of duties
and shifts. Daily incident reports, handling and taking-over reports are generated by the
Guards in each beat.
The Supervisor (Surveillance Officer) shall collate daily reports from the beats and submits
same to the Chief Security Officer (CSO) and the CSO shall log the report into the incident
log books as it happens on daily basis in the location. The report shall be investigated upon
by the CSO and passed to our proposed clients for necessary action.
Further, the reports collated from the location/beats shall be forwarded to Claewater
Technologies Limited for proper examination and scrutiny and where there are shortcomings necessary actions are taken with the knowledge, consent and authority of the
client.

3.5.2 Guard Thumb Printing and Background Checks

Our proposed security operatives shall be individuals who have gone through an extensive
background checks. This vetting process shall be carried out by both an internal vetting
department and by the Nigerian Police. This vetting process which shall include amongst
others, thumb printing and the taking of photographs by the Police is to ensure that guards
are properly vetted and as such cannot escape from the law if crimes are committed.

3.5.3 Guards Packaging/Turnout

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Our proposed Guards presentation shall be highly competitive in the industry. Claewater
Technologies Limited Guards uniforms shall be in conformity with Industrial Standards and
Federal Government directives for Private Security providers uniforms approval. Our guards
shall be well-kitted with required accessories such as Berets, Boots, Lanyards, Mufflers,
Whistles, Anklets, Communications Gadgets and PR24 which looks similar to that of the
Para-military.

4.0 Market Analysis Summary

Since the return of democracy in 1999, the security situation in Nigeria has been quite
disturbing, and in the past fifteen years things have been worsening on a daily basis. Of
course like any other human society, conventional crimes have always been part of the
experience, especially after the civil war, but the more recent experience in violent
extremism, insurgency and other forms of militancy have made the situation much more
complex. Currently, the most serious security threats in Nigeria are those in the category of
discontent or separatist agenda, specifically the violent extremism of Boko Haram and the
violent militancy in the Niger Delta. While the former uses religion as its platform,
employing such tactics as suicide bombing, organized attacks on police and military

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installations, terrorizing rural communities, etc; the latter us resource-based ansd uses the
control of oil found in its domain as its platform, knowing that about 90 percent of Nigerias
revenue comes from that natural resource.
In addition, the spate of crimes in urban cities in Nigeria makes the need for current
expertise in security services imperative. For over three (3) years, terrorism has been the
order of the day, leaving death and destruction in its wake. This has prompted the need for
security services to ensure protection of lives and properties.
The current drive and emphasis by the government on diversification of the industrial base
away from the oil and gas sector presents an opportunity for Claewater Technologies to
make a valuable contribution towards achieving this goal. Coupled with the fact that the
security situation in Nigeria provides an enabling platform for the provision of our proposed
services and this will require implementation of modern Information Technology services
and techniques, and transfer of knowledge.
Aware of the fact that we will be operating in a predominantly strong market we intend to
ensure that our marketing strategies are considerate of the importance of the fit between
our services capabilities and benefits, and the target market, so as to develop a strong
sustainable competitive position in the market. As a result we intend to implement a niche
marketing strategy, focusing on certain target markets.
It should be appreciated that entering such a market is not a bed of roses, particularly
considering its infancy and hence the intention will be to implement an aggressive
marketing strategy, well supported by the other business functions. The above prognosis
influenced our decision to enter the Security Services business with the intention of using
the IT business communication service provision/consultancy industry as a platform for the
delivery of our services to our esteemed clients.

4.1 Market Segmentation

We will be focusing on proactive, market seeking organizations, security-conscious
individuals who want to get required security within the Nigerian market. These are mostly
larger companies, medium-sized companies, high-ranking individuals (VIPs), Banks & other
financial institutions, Oil & Gas Companies and other Multinational Organizations.
Our most important group of potential customers are business executives in large, medium
and small corporations. These are marketing managers, general managers, sales managers,

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sometimes charged with international focus and sometimes charged with market or even
specific channel focus. They do not want to waste their time on frivolous spending on
security services, but on reliable security agencies that provides real-time, on-line services
with prompt response to security alerts.
As they go into markets looking at new opportunities, they are very sensitive to risking their
lives, company's name and reputation. Hence the need to professionally provide security
services to them, offering impeccable expertise. Our intention will be to offer an attractive
development alternative to the company that is management constrained and unable to
address opportunities in new markets and new market segments due to technological
shortfalls.

MARKET ANALYSIS

4.2 Target Market Segment Strategy

Our marketing strategy will be based mainly on making the right service(s) available to the
right target customer. We will ensure that our services' prices take into consideration
organizations'/peoples' budgets, and that these people appreciate the service and know that

it exists, including where to find it. The marketing will convey the sense of quality in every
picture, every promotion, and every publication.

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Our intention will be to target those innovative or proactive companies and individuals
whose objective is to have all-round security services using latest unique system of
communication. We realize the need to focus our marketing message and our service
offerings. We need to develop our message, communicate it, and make good on it.

4.2.1 Market Needs

Claewater Technologies intends to provide customers with the necessary systems and
services to provide cutting-edge customer service, by essentially offering a certain spectrum
of communications solutions, primarily the interaction applications.
We understand that our target markets need more than just continuous communication and
information from their various stakeholders, but communication and information that will
enable them to make more informed decisions and transactions at the earliest opportunity.
We don't just intend to provide a service(s), but to provide one of unparalleled nature
relative to the market. Our target market are not businesses that want to make decisions
solely on the basis of price, but instead are mainly concerned with having reliable providers
of expertise and a good security communications network in place.

4.2.2 Market Trends

Today we are passing through a technological discontinuity of epic proportions. The growth
of Insecurity shows no signs of abating and has profound implications for businesses not
only in Nigeria, but also throughout the African region. As insecurity knows no boundaries
the

intention

of

Claewater

Technologies

will

be

to

assist

clients

in

undertaking

communication and transactions with ease by providing them adequate security, initially on
a regional level, but also at the National level. This has resulted in the significant trend
toward greater international sales and communication between organizations throughout the
world. Another important trend is the one toward greater use of specialized and focused
security equipments. Companies are increasingly looking for more out-sourcing and, in
general, a preference for variable costs instead of fixed costs. This shall have important
implications on the acceptance of our services on the market.

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4.3 Service Business Analysis

A general market study about the benefits of using latest technology in the provision of
security services in Nigeria undertaken by a Research Company was conducted on the use
of information technology in the provision of security services. The study notes that with the
provision of wireless technology to various sub-Saharan countries, telecommunications
systems could be profitably established.
The use of technology in providing security services has added value to the sector.
Security systems relies on the convergence of Internet technologies, mobile devices, cellular
phones, band-width and a whole lot of companies champing at the bit of m-commerce. Mcommerce is about being able to transact business through any portable intelligent device
and some of the greatest growth in the m-commerce arena is coming from the development
of the cellular phone. The one wireless standard uniting and gaining momentum in the use
of personal digital assistants (PDA) is the Wireless Application Protocol (WAP). This protocol
uses wireless means to connect any mobile device to specific Internet information. The
computing device has to be WAP enabling and only a few Internet sites have been set up to
cope with WAP transactions.
It is an obvious fact that the wireless revolution will have a positive impact on the economic
and social development of Nigeria.

4.3.1 Competition and Buying Patterns

The key element in purchase or subscription decisions made at the company's client level is
trust in the professional reputation and reliability of the firm. The most important factor in
this market will be the quality of the service. This is particularly so considering the potential
impact technology have on security systems in them meeting their bottom lines. The very
nature of our services dictates that occasionally the pricing of our projects and billing rates
will be variable, as different clients require different needs to be fulfilled in variable industry
environments.
In our line of business clients rarely compare service providers directly, looking for two, or
more, possible providers of a proposed project or job. Usually they follow word-of-mouth

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recommendations and either go for the job or not, rather than selecting from a menu of
possible providers.
The most important element of general competition, by far, is what it takes to keep clients
for repeat business. It is worth making concessions in any single service to maintain a client
relationship that brings the client back for future services -- realizing customer-lifetime
value.

4.3.2 Main Competitors

In identifying competition in this market, we find a lot of companies currently offering
services similar to ours. There are numerous providers of the older established security
services. Hence there will be a need to strongly differentiate ourselves from these other
businesses and market the benefit of utilizing our service(s). However on a broader scale
our competition comes in several forms:
1. The most significant competition will be the traditional security systems currently in
place within the respective organizations, particularly considering advances in
technology enabling these organizations (potential clients) to better handle their
alarms, inquiries, and general security needs. Many organizations are currently
investing in technological instruments that will enable them to better handle their
customers. This is particularly so considering the advances that have been made in
terms of customer relationship management and all its related hardware and
software programs, many of which have not yet been fully exposed on the local and
African markets. The current onset and wave of customer relationship management
overseas does pose a serious challenge for Claewater Technologies' intended
services, as they are bound to infiltrate into the region in the form of software
programs and hardware components.
2. The increasing investment in training by organizations also represents competition in
the area of intent. With organizations striving to instill a performance culture through
training there will be a need to market the benefits of utilizing our service in
conjunction with these organizations' respective communications systems. This is
due to the fact that these same organizations may feel that there is no need to
utilize our service(s) as they would have invested large amounts into hardware
and customer handling training of front office personnel.

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3. Major potential competitors will include all those service providers that offer security
services using Internet protocol services to enhance their services. These companies
already have a firm footing in their Security businesses and are carefully analyzing
the prospects of enhance IT technology in their service provision.
However, upon closer analysis of the above competitors it may be observed that several of
these potential competitors also represent client opportunities to be realized by us.

4.3.3 Distributing a Service

Service provision and consulting will be sold and purchased mainly on a word-of-mouth
basis, with relationships and previous experience being, by far, the most important factor. In
this regard we intend to provide a service that exceeds customer expectations so as to
ensure they refer us to potential clients through word-of-mouth.

New business shall be developed through industry associations, business associations, and
in some cases, social associations such as country clubs.
As our services are relatively new on both the Nigeria and regional markets we intend to
host breakfast seminars and workshops primarily for senior managers and decision-makers,
who may benefit from our services. This function will involve a considerable amount of
networking on our part, as these individuals often do not have a lot of spare time.

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5.0 Strategy and Implementation Summary

Initially, Claewater Technologies will focus on the local and regional markets in the
previously mentioned services. The target customers will include key decision-makers in the
large, medium, and small-sized organizations, be they in a start-up, stable, or growth
period.
Our marketing strategy will emphasize focus. This will be the key. We are a relatively new
company on the market and must focus on certain kinds of services with certain kinds of
clients. The project will focus on the local and regional markets, expanding into the
international markets as time progresses, and as we gain the necessary experience. The
form of growth that shall be initially pursued will be that of organic growth mainly due to
limited resources and the need to instill awareness and confidence in our services. The
target customers will include key decision-makers, sales and marketing personnel involved
in decision-making and transaction sealing.

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We intend to build image and awareness through consistency and distinctiveness in

our service provision.

We intend to focus on delivering quality services and end products that in turn
produces good referrals, which can then generate revenue.

We intend to always have a relatively heavy personal selling component to our

marketing.

Through the implementation of a fair, effective and competitive remuneration policy we

intend to optimize our human resource output and advancement. We need the right people
in the right place at the right time if we are to ensure optimum growth. We intend to
develop our team so that our people can grow as the company grows - a mutually beneficial
relationship. As a result we intend to vigorously search and find the right people for our
organization.

5.1 Competitive Edge

A key factor to the future success of this company is the background and experience of the
management team and strategic partners, and their ability to work the market based on an
innate understanding of both the business processes and market structures. The delivery of
whole, end-to-end solutions will have a significant impact on gaining commitment from the
market at all levels. Therefore, the company believes in partnering with its customers to
bring the future in security services using communication and information technology into
the customer contact zone. Inevitably this shall involve constant liaison with the client, a
customer-centric approach that is need-based.

5.2 Marketing Strategy

One core element of our strategy will be that of differentiation from our competitors. In
terms of marketing, we intend to sell our company as a differentiated strategic ally, not just
our services. In price, we intend to offer reasonable and competitive prices in comparison to
competition and we need to be able to sustain that. Market penetration through lower prices
shall be undertaken where need be whilst premium pricing in the case of high quality
services targeted at the upper-end of the market. Our service marketing will strive to
ensure that we establish long-term relationships with clients. Our primary intention will be
to sell a relationship more than services.

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Our service marketing will emphasize the benefits of speed, interaction and flexibility to be
gained from utilizing our services. The approach will be entirely needs-driven and a
thorough understanding of the business requirements, business processes and technology
strategy of the customer being the basis on which a Claewater Technologies solution will be
built. Once the needs and processes are understood and described, leading edge products
and best-of-industry skills will be applied to design and develop a fitting solution to satisfy
the need and enable the clients live business in the most cost effective way.

5.2.1 Positioning Statement

Claewater Technologies intends to be uniquely positioned to help customers apply
communication and information technology products and skills to meet the challenges facing
their businesses today. Our competitive edge will be our dominance of the market as early
entrants, customer orientation and traditional hard work. Though our clients might range
from large corporations to medium or even small businesses, what is important to the client
irrespective of the size or industry is total satisfaction with the end product matched to their
capabilities and resources.

5.2.2 Pricing Strategy

Claewater Technologies will be competitively priced in relation to the dictates of the market.
The pricing fits with the general positioning of Claewater Technologies as providing highlevel quality service and expertise. Due to the introductory nature of the vast majority of
our services we intend to implement a penetration pricing strategy which will ensure that
potential clients are not frightened away by our prices up until our services are appreciated
and fully operational. However this will dictate that our costs are prudently kept so as to
ensure our financial goals come to fruition. Once development of the online applications is
completed it is our intention to charge a monthly/six-monthly, or whichever the client
prefers, recurring fee which will be charged to their account. This fee will be worked out in
such a way that it covers for operating expenses as much as possible.

We will make sure that we charge for the service, expertise and any delivery with our
aim being to achieve a gross profit margin of at least 60%. Naturally services targeted
at the higher end of the market will have higher mark ups as these clients are less price
sensitive. All in all we intend our prices to be extremely competitive on the market.

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5.2.3 Promotion Strategy

Claewater Technologies intends to utilize an aggressive promotional campaign to introduce
its business units to the market. The intention will be to take advantage of several media
sources in announcing the services and in the process reinforcing awareness of its
existence. It should be stressed that these promotional campaigns shall be designed in such
a way that they do not undermine the organization's current corporate image but instead
enhance it.
Our promotional activities shall be focused towards driving the organization's overall
strategy relentlessly, developing internal consistency and preparing it to confront any radical
changes that may arise. This strategy will be based primarily on informing potential
customers of the existence of our services and making the right information available to our
target customer. The intention will be to highlight the benefit of utilizing our service(s) which
will include:

Ease of communication

Improved corporate logistics

Cost savings on transactions

Chance to maintain if not improve the corporate image

Improvements in the operations of the value chain

Chance to improve corporate visibility regionally as well as globally, and develop

niche strategies.

In such a market we cannot afford to appear in or produce second-rate services with poor
delivery strategies that make our services look less than they are. We intend to leverage our
presence using quality brochures and other sales literature, including promotional material
such as pens, complimentary slips and pads. We intend to spread the word about our
business through the following:
1.

Advertising

2.

Personal Selling

Claewater Technologies Ltd Business Plan on Security Services

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3.

Public Relations

4.

Events

5.

Direct Marketing

6.

Internet Marketing

In all the above we intend to communicate our ability to deliver a service of uncompromised
nature and high quality that will satisfy the clients needs. Hence our messages will influence
the decisions of prospective clients by emphasizing our unique selling proposition and,
persuade prospective clients that we are different from our competitors. All the above
promotional tools shall be well integrated and utilized in concert so as to maximize their
effect.

5.3 Sales Strategy

The sales forecast monthly table is included in the appendix. The annual sales projections
are included here. It should be noted that as we become established and known on the
market we project sales to increase at a faster rate than during the initial year.

5.3.1 Sales Forecast

Claewater Technologies will receive its initial revenue streams from a combination of
Guarding Services, Personal Security Services for VIPs and Protocol and Armed Security
services. The derived value of Claewater Technologies will come from the key partnerships
established and developed in order to deliver a service provision of security based activities,
providing opportunity to build brand and loyalty, around which relationship marketing will
play a key role.

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SALES FORECAST
Please see attached Proforma Sales Forecast

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5.4 Strategic Alliances

In today's volatile and competitive environment it is becoming increasingly essential for
organizations to concentrate on their core activities so as to gain and maintain a competitive
advantage. This brings out the advantage of undertaking strategic alliances with
organizations that the firm may benefit from and vise versa. The solid partnerships the
company intends to entrench with several companies will ensure that its solutions are worldclass, best-of-breed products and systems. They will also reassure our customers that they
are investing in "winning" technology and service that is maintainable, flexible and scalable
enough to meet future demands.
At this writing, strategic alliances with several firms are possibilities, including foreign
organizations to provide latest technologies in the security industry giving the content of
existing interest and discussions. By going into strategic partnerships with suitable
organizations we intend to benefit from being able to concentrate on our core activities in
the delivery of our service(s) to the end-user, whilst ensuring that we do not have to
compromise on quality of execution or the number of services we are able to deliver.

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6.0 Management Summary

The human resources element shall be an essential component in the delivery of the
total service. By encouraging all employees close to our clients to think tactically about
what the companys service offerings should be, and by having enthusiastic, capable
and empowered people interacting with our clients, we intend to build the competitive
advantage of being able to comprehensively meet our clients' needs. We also intend to
give our teams enough leverage in decision-making (empowerment) in order to ensure
that clients are handled promptly and to reduce lead-time in actual delivery of the
service.
There will be a need to evaluate jobs and remuneration packages against market
benchmarks to ensure they are competitive. These principles extend to accident,
medical, death and welfare benefits such as (but not limited to) support for housing
finance, education and training. Consonant with its efforts to create added value by
employees, Claewater Technologies seeks to negotiate the provision of incentive pay
delivery mechanisms against achievement of agreed targets relating to accomplishment
in the areas of customer satisfaction, service provision, and other specific successes,
that is, the implementation of an effective performance management system.

6.1 Organizational Structure

The organization structure the business units shall take will be that of a matrix structure
where staff reports into a functional structure but are grouped together in project or product
focus teams when necessary. A project focus team will typically be headed up by a project
manager or supervisor, while a service/product focus team will typically be headed by
another supervisor.

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In a highly volatile industry and environment, with increased competition and market entry,
we recognize the need to be constantly changing so as to adapt to the prevailing
environment. Hence we intend to have in place a highly flexible structure allowing for the
above to be undertaken swiftly and smoothly. It shall be noted that the customer will be the
focus in all instances as we strive to provide the ideal custom-designed service(s).
The following main functional groupings shall be our departments:

Sales & Marketing

Professional Services

Customer Service

Logistics

Finance

6.2 Management Team

Management style will reflect the participation of the shareholders. The company intends to
respect its community and treat all employees well. We will develop and nurture the
company as community. We do not intend to be very hierarchical. Management's ongoing
initiatives to drive sales, market share, and productivity will provide additional impetus.

6.3 Personnel Plan

The detailed monthly personnel plan for the first year is included in the appendix. The
annual

personnel

estimates

are

included

here.

We

believe

this

plan

is

an

acceptable compromise between fairness and expedience, and meets the commitments of
our vision and ethos. We do not intend to be a large organization or "top heavy" as our
industry does not require our doing so. We want the company to stay lean and flexible so
that we can respond to a client's needs quickly. However as we expand and increase in size
(increase in our client base) we do expect to increase our personnel.
We intend to compensate our personnel well, so as to retain their invaluable expertise and
to

ensure

job

satisfaction

and

enrichment

through

delegation

of

authority.

Our

compensation will include health care, generous profit sharing, plus a minimum of three
weeks vacation. Since multifunctional teams have to be established there is need to
establish a support system that will enable members to easily work together effectively,
meshing well with each others' activities. This will also allow members of a team to
appreciate the implications of the concerns and issues that may be expressed by their

Claewater Technologies Ltd Business Plan on Security Services

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colleagues. All the above point to the fact that there is need to instill a good corporate
culture that nurtures a fruitful working relationship amongst all individuals/team members.
In-house training shall be continuous with regular external training being undertaken
particularly following any new developments in the market. This is so as to ensure that we
are continuously able to anticipate our markets needs -- a proactive approach, which is so
essential if we are to gain and maintain a competitive advantage.
PERSONNEL PLAN
Please see attached Personnel Plan

7.0 Financial Plan

We want to finance growth mainly through cash flow and equity. We recognize that this
means we will have to grow more slowly than we might like.
The most important factor in our case is collection days. We can't push our clients hard on
collection days, because they are in larger companies and will normally have marketing
authority, not financial authority. Therefore we need to develop a permanent system of
receivables financing, using one of the established accounting systems. In turn we intend to
ensure that our investors are compatible with our growth plan, management style and
vision. Compatibility in this regard means:

A fundamental respect for giving our customers value, and for maintaining a healthy
and congenial workplace.

Respect for realistic forecasts, and conservative cash flow and financial management.

Cash flow as first priority, growth second, profits third.

Willingness to follow the project objectives and contribute valuable input to strategy
and implementation decisions.

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With sufficient working capital the forecasted revenues and sales should be within the
forecasted market demands for the company's services. From the second year onwards, the
various divisions should be able to bring in adequate sales revenues. It is assumed that by
then the objective of investing in computer equipment and retraining will have taken effect,
the trained technicians will have become adept at their crafts and new service offers for
corporate clients will be added to the company's product line on a regular basis.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the
following table as annual assumptions. The monthly assumptions are included in the
appendix. From the beginning, we recognize that collection days are critical, but not a
factor we can influence easily. At least we are planning on the problem, and dealing
with it. Interest rates, tax rates, and personnel burden are based on conservative
assumptions.
Some of the more important underlying assumptions are:

We assume a strong economy, without major recession.

We assume, of course, that there are no unforeseen changes in economic policy

to make our clients' products or services immediately obsolete, though we do
forecast technological changes.

General Assumptions
Please see attached General Assumptions Analysis

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7.2 Key Financial Indicators

We foresee a slow initial growth in sales, though operating expenses will be relatively high,
and a bump in our sales and revenue generation as we spread our services during
expansion.
Collection days are very important. We do not want to let our average collection days get
above the client's actual subscription period under any circumstances. This could cause a
serious problem with cash flow, because our working capital situation is chronically tight.
However, we recognize that we cannot control this factor easily, because of the relationship
we wish to create with our clients.

7.3 Break-even Analysis

Our Break-even Analysis will be based on running costs, that is, costs we shall incur in
keeping the business running, including salaries and wages, rent, computer maintenance
costs, water and electricity, and insurance amongst others. Hence many fixed costs shall be

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included in these costs. We will thus ensure that our sales levels are running comfortably
above break-even.
The following table summarizes our break-even analysis

7.4 Projected Profit and Loss

The following table presents the profit and loss information for Claewater Technologies
Limited.
Initial marketing and training expenses will be relatively high as we seek to become
known on the market and staff get trained in provision of our services. This will be
brought about by the development of sales literature, advertising expenses, function
expenses including lunches and dinners with interested stakeholders. As our market
share increases and capital is generated, further marketing programs and the
expansion of those in existence at the time will be undertaken, to ensure market
development. However with time these programs will start generating revenue for the
business, which we shall in turn reinvest.

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Claewater Technologies Ltd Business Plan on Security Services

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PRO FORMA PROFIT & LOSS

Please see attached Pro Forma Profit & Loss

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7.5 Projected Cash Flow

The chart and table below provide details to the company's cash flow situation. The chart shows a monthly
breakdown while the table shows a year-end statement.

PRO FORMA CASH FLOW

Please see attached Pro Forma Cash Flow

7.6 Projected Balance Sheet

Please see attached Pro Forma Balance Sheet

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7.7 Business Ratios

The following table presents important business ratios for Claewater Technology. These figures come from
the security services industry.

Ratio Analysis

Year 2

Year 3

Industry Profile

0.00%

50.00%

49.19%

0.00%

Accounts Receivable

11.08%

15.09%

18.16%

0.00%

Inventory

4.13%

4.50%

5.42%

0.00%

Other Current Assets

0.00%

0.00%

0.00%

100.00%

Total Current Assets

19.95%

27.33%

41.36%

100.00%

Long-term Assets

80.05%

72.67%

58.64%

0.00%

Total Assets

100.00%

100.00%

100.00%

100.00%

Current Liabilities

4.12%

3.23%

4.14%

0.00%

Long-term Liabilities

0.00%

0.00%

0.00%

0.00%

Total Liabilities

4.12%

3.23%

4.14%

0.00%

Net Worth

95.88%

96.77%

95.86%

100.00%

Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

50.00%

60.00%

60.00%

0.00%

Sales Growth

Percent of Total Assets

Percent of Sales

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Selling, General &

Administrative Expenses

79.98%

48.98%

43.18%

0.00%

Advertising Expenses

2.56%

0.00%

0.00%

0.00%

Profit Before Interest and

Taxes

-18.27%

14.69%

22.42%

0.00%

Current

4.85

8.46

9.99

0.00

Quick

3.84

7.07

8.68

0.00

Total Debt to Total Assets

4.12%

3.23%

4.14%

0.00%

Pre-tax Return on Net

Worth

-12.35%

13.41%

24.86%

0.00%

Pre-tax Return on Assets

-11.85%

12.97%

23.83%

0.00%

Additional Ratios

Year 1

Net Profit Margin

-18.27%

11.02%

16.72%

n.a

Return on Equity

-12.35%

10.05%

18.54%

n.a

Accounts Receivable
Turnover

4.39

4.39

4.39

n.a

Collection Days

56

69

69

n.a

Inventory Turnover

10.91

8.56

9.40

n.a

Accounts Payable
Turnover

10.52

12.17

12.17

n.a

Payment Days

27

32

24

n.a

Main Ratios

Year 2

Year 3

Activity Ratios

Claewater Technologies Ltd Business Plan on Security Services

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Total Asset Turnover

0.65

0.88

1.06

n.a

Debt to Net Worth

0.04

0.03

0.04

n.a

Current Liab. to Liab.

1.00

1.00

1.00

n.a

Net Working Capital

$200,200

$335,740

$642,635

n.a

Interest Coverage

0.00

0.00

0.00

n.a

Assets to Sales

1.54

1.13

0.94

n.a

Current Debt/Total Assets

4%

3%

4%

n.a

Acid Test

1.15

2.40

4.30

n.a

Sales/Net Worth

0.68

0.91

1.11

n.a

Dividend Payout

0.00

0.00

0.00

n.a

Debt Ratios

Liquidity Ratios

Additional Ratios

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