SuperFast Delivery

“When life gets easier”

January, 2015

Table of Contents

Executive Summary 4

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Mission 5

Company Overview 6

Legal Business Description

Strategic Alliances

Services 7

Research and Development

Production and Delivery

The Market 9

Market Definition

Customer Profile

Marketing Plan

Sales Strategy

Distribution Channels

Advertising, Promotion, PR

Competition 13

Risk/Opportunity 14

Management Team 16

Capital Requirements 17

Financial Plan 18

Financial Statements

Conclusion 24

 

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Executive Summary

SuperFast Delivery is the first French personal service company operating in Africa and The Middle East. We are purely dedicated to save you time, money and effort by running your errands for you. With SuperFast Delivery you can forget about long lines at the market, paying your phone and inter-net bills or forgetting important stuff because we have all these covered for you.

We can bring you what you need so you don't have to leave your place. From your supermarket list to the passport you forget at your home. We will de-liver your order straight to your doorstep.

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SuperFast Delivery will start its services in Egypt, because we have a po-tential market there: population of almost 90 million people, crowded small streets, and people have no time, even further, we will divide the main two big cities ( Cairo and Alexandria ) into smaller regions so that we can esti-mate cost/ time of each order from one place to another.

With a short term goal of 3015130 euros as revenues for the first year, and this number will gradually increase during the next four years reaching 15971070 on the fifth year.

And, as a long term goal, if we succeeded in this field, we'll go to other African countries and then go abroad.

We aim to offer our customers not just a service, but a great experience with a wide range of offered services with the least possible cost, and since time is precious, we simply can’t afford wasting it. That’s why we will offer our ser-vices 24 hours each day, 7 days per week to make your lives much easier via our own hot-line, returning clients calls immediately and listening to their complains plus offering them the best solutions. And that’s what gives us a competitive advantage over other companies operating in the same market.

Mission

SuperFast Delivery's mission is to discover, develop and deliver ideas that improve the quality of your life by meeting the daily personal needs of every client.

And our goal is to become the market-leader in the industry of home delivery services.

We aim to carry a reputation in the marketplace for developing and deliver-ing time saving services delivered at a fair price in the service delivery mar-ket. We can achieve this by a good understanding of market trends and needs plus finding innovative solutions to every market demand.

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To accomplish our goal, SuperFast Delivery needs well-trained human cap-ital, talented management team and a good understanding of the target cus-tomers.

In pursuit of our goal, we resolve to treat stakeholders, customers, and the community with fairness and we will ensure that they can depend on our company. These groups see our company as providing dividends and in-creasing value for stakeholders, quality for our customers and finally, envi-ronmental friendly motorcycles and cars to reduce pollution.

Company

SuperFast Delivery was founded in 2015 (start-up company) and is basi-cally founded to provide customized solutions designed to meet the de-mands of citizens’ busy lifestyle. It is a LLC; A limited liability company, it is a hybrid that legally provides the limited liability features of a corporation and also the tax efficiencies and flexibility of a partnership.

Our principal offices and headquarters are located at 132 el geisha road, Alexandria, Egypt. We will be opening other offices in each country we will operate in if the company succeeded in its main target.

The legal name of the business is SuperFast Services Home Delivery, DBA (doing business as) SuperFast Delivery.

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Regulations and permits

SuperFast Delivery has all necessary permits to operate, and has an up-to-date record of inspections. These permits include; States licenses, Federal li-censes and Sales Tax license.

Strategic Alliances

SuperFast Delivery has developed important and profitable strategic al-liances with the following larger, more established business we have devel-oped marketing agreements with Kia for cars and Honda motorcycles the two market leaders in cars and motorcycles with reasonable prices, which will provide us with the number of motorcycle and cars we need to deliver our services.

The side by side positioning at retail, as well as the ability to share wholesale sales leads with their established customer base can help us penetrate the

market more quickly.

The risk in the relationship is that they may not give us reductions on the prices we need as a wholesale price.

Another type of strategic relationship that benefits the company is our de-velopment joint venture with The Public Egyptian Telecommunications Company (Al masreya lletisalat), we would never be able to establish a Hot-line number that customers can dial to reach us more easily but with an agreement with this company we cut search time and effort in half.

We have a strategic relationship with a number of suppliers. In exchange for a blanket commitment to purchase more than 80% of our office supplies, they have agreed to give us a preferential price.

Business

SuperFast Delivery is a service provider of your purchased goods, paying bills, etc.. We make your life easier by delivering anything, anywhere, 24/7 right to your doorstep.

Our company is at the start-up stage of business, having just established our main office, hired our first employees and made a future plan of how the business will operate and deliver the promised services.

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Services

SuperFast Delivery delivers the following services; Shopping everything, buying tickets, paying bills, delivering important documents, and many other services..

Presently, our service is in the introductory stage, where it’s still newly intro-duced to the market even though it’s an existing idea but we worked on de-veloping this idea and introducing new services with many competitive ad-vantages.

We plan to follow this service with extensions to our line, which include ser-vices diversification and penetrating new markets in different countries other

than where we will start operating (Egypt).

Others in the market are able to provide somewhat similar services, but we are able to differentiate ourselves in the market because of the critical fac-tors in the delivery of our service which are time and cost. Our service is unique because it can reach you wherever you are and whenever you need it and it saves a lot of money and time and/or we have an advantage in the marketplace because of our speed, low costs, and unique provided services.

Even further, all our employees are thoroughly selected and handpicked from well-known multinationals to ensure a high quality service and avoid or-der mix-ups, and that’s what makes us stand out.

Research and Development

Our research and development is headed by Antoine FAUCHILLE whose ma-jor objective is to use market input to be more efficient and to provide supe-rior benefits to customers. SuperFast Delivery has spent 10% of revenues in the past year in R&D, and plans to spend 15% in the next year. We focus mainly on logistics and new technologies tools to increase the efficiency.

Production

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Our service is provided by our very well trained staff and delivered at the clients’ residence or where ours clients wish it.

Critical factors in the production of our delivery of our service are the time to reach the orders points and the speed to reach it.

To be confident in this way we choose to be equipped with the most efficient vehicle brand into the delivery sector. Our parking will be checked each week to avoid logistics problems with vehicles.

Uniqueness

Our service is unique because of our relatively low prices, our time saving services and we have an advantage in the marketplace because of our speed to respond to different market needs.

The Market

We define our market as delivering personalized services to households, which means that our main market sector that we will compete in is “per-sonal services”. This market was approximately 101.8 B of market capital in Jan, 2015 according to http://biz.yahoo.com/p/7conamed.html

We believe, the major future trend in the industry will be toward high quality and value oriented services offerings.

Different market researchs suggested that this market will grow dramatically within the next 10 years due to the increasing demand on customized ser-vices.

We expect the niche in which we compete to grow during this time. The ma-jor forces affecting this change will be the increasing demand on customized services and on-demand market where the customer is involved in basically

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every step. The area of greatest growth within the industry will be the up-coming years.

Market Segment

We define our markets by different variables; firstly we have got the geographical areas (cf. “Areas of delivery”). The second one is more economical, we want to reach people who are busy with their work so they call us to save time, or very rich people who prefer pay more but without doing anything. We cannot do a de-mographical segmentation of the market because our service can be use by ev-eryone older than 14/15 years old because the consumer can pay by cash directly in his house. And nowadays more and more purchasing are done thanks to inter-net or mobile apps.

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As we only provide the service of delivery, our margin depend on the areas of dis-tributions, the red one and green one are very packed as a consequence the time of delivery (in others words our costs of delivery) decrease. At the opposite more those costs will increase as the distance of delivery increase. It’s why we have minimums prices of delivery for each zone. From 1$ in the red to a 15$ minimum for the purple one.

A typical customer for our service is a person who currently may use internet, a smartphone or a phone for calling or ordering theirs products. They are motivated to use our service thanks to the speed of deliver, the slow margin and the variety of products proposed. We feel our customers perceive our service as good value, fast, safe and confident.

Our service, however, have the following weaknesses: high level of potential com-petitors, the need to have since the beginning a lot of money to buy some vehi-cles, weak brand identity. We are working to position our service as making an Apple and Android application in order to reduce this vulnerability.

Marketing

Our marketing plan is based on the following fundamentals;

We expect to penetrate the market and achieve this by using the fast retail, phone order, internet as our primary distribution channels. At the end of the first year, we plan to capture 14% of the market’s consumers.

Position

We will position our service as good value for price, top deliver quality (no prod-uct in bad condition), good relationship with the end consumers thanks to our policy to integrate the transport in hour house of for example heavy products or your shopping of supermarket. Our consumers can order the delivery of a big, heavy or bulky, and we tailor our positioning accordingly with buying more goods vehicles.

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Pricing

Our pricing strategy is in the first year only based on low margin to reduce the cost of delivery to be more and more preset in the consumer mind. Dur-ing the increase of the number of consumers we will increase a bit the price of a run to grow faster. We review this pricing monthly to ensure that poten-tial profits are not squandered.

Distribution channels

The distribution channels we use for our service are wholesalers, cata-loguers, mass merchant retailers, consolidators. These make sense for deliv-ering any kind of product to the end user because of the different customers’ profiles. The competition uses only one wholesalers’ channel. Our channel will prove more advantageous because we can fit many needs.

Advertising, promotion, trade shows

SuperFast Delivery has developed a comprehensive advertising and pro-motion strategy, which will be implemented by the best possible firm when funded is completed. We expect to have a presence in several national mag-azines as well as the trade press. We will produce our own ads and be a part of ad campaigns of our JV partners or OEMs. Our publicity plan is to remain in constant contact with editors and writers of the trade journals that serve our service and seek stories and coverage that will enhance our reputation and introduce us to buyers.

We plan to promote our product through a variety of onsite product sam-pling, demonstrations at high profile events, give-aways at fund raisers and other high leverage events. The objective of all our promotions is to expand the audience, position our product as a premium brand, and strengthen our ties to the community.

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Our company participates in trade shows. We have a regular 20 foot display booth of knock down construction which allows us to display our existing products and introduce new ones, or we prefer to attend trade shows as visi-tors and walk the show while displaying our wares only to pre-qualified buy-ers who will come to our nearby hospitality suite.

Competition

SuperFast Delivery will have directs competitors into the delivery market in Egypt.

First of all, Aramex which since 1997 became the first Arab-based Interna-tional logistic company to trade theirs share on the NASDAQ stock exchange. They are now establishing into 60 countries worldwide. Others competitors will be group as UPS Egypt or FEDEX Egypt into the logistic sector.

The business model of SuperFast delivery responds to primal needs as a sim-ple order of that logistics groups as UPS, FEDEX or ARAMEX do not have into their mains targets. Our mains competitors are mainly focused on national logistics or even worldwide transportation of goods.

Our main strategic advantage is to be able to respond to our local clients in efficient way to satisfy the local needs of our clients. Superfast Delivery is fo-cused on the way to respond on a local demand into a specific area of ac-tions. This characteristic will provide us the image of a close and local solu-tion to satisfy our clients’ requests.

Risk/Opportunity

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Business Risks

Superfast delivery has the same business model as “Aramex” but we are targeting a wide range of customers within the higher level of the society and we are adding different and more beneficial services with give us com-petitive advantages over our competitors.

Moreover, entrepreneurs nowadays face many challenges when starting a new business. Including economy depression, uncertain market conditions and financial changes. But we, as business owners, must determine the types of risks that are most likely to affect us and create solutions that will enable the company to succeed despite having those risks.

Here we list some of the main risks our company may face;

Market Risk

According to many experts, if industry trends are moving away from your service it will be difficult to gain or even keep your customer. Prospective competition and product pricing are also market factors that can affect your company. Therefore, identifying these risks is necessary to avoid the risk of losing your business. So, business owners can effectively manage market risk by performing a market analysis, which helps determine the market po-tential for these particular services. Also, a marketing plan can help define marketing areas as well as uncover customer needs.

Financial Risk

The financial standing of a business is an important factor that can make or break a company’s ability to succeed. New businesses face many financial risks including; not accurately making financial projections or working bud-

gets.

Even more, a lack of startup funds poses a threat to any start-up business, because all businesses need equipment, office supplies and marketing mate-rials and many more expenses to run effectively.

Therefore, we find it obligatory to have a strong financial plan that covers all the parts we stated earlier to avoid this financial risk along with sufficient capital to pay for all the expenses until we start making profits.

Opportunities

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Although our business today has its share of risk, we feel we can overcome these risks because of our strong management team that adds value and knowledge to the whole company.

If we are able to overcome these risks, our company has the opportunity to beat our competitors, capture more market share and become a major force in the industry of home delivery services. We think we can achieve this goal in the next five years.

Management Team

Here’s our management team;

Officers and Key Employees

President: Ayah El Shabassy

Vice President of Marketing: Ayah El Shabassy

Vice President of Sales: Antoine Fauchille

Vice President of Finance: Ana Paulina Domingez

Vice President of R & D: Antoine Fauchille

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Vice President of Operations: Xavier Genre-Grandpierre

Controller: Xavier Genre-Grandpierre

Corporate Attorney: An egyptian lawyer external to the company

Ownership

The following persons or organizations are significant owners of the com-pany;

Name # Shares Held % Ownership

Aya El Shabassy 25 25%

Paolina Dominguez 10 10%

Antoine Fauchille 10 10%

Genre Granpierre Xavier 10 10%

Shareholders 45 45%

Board of Directors

We have also secured the assistance and support of the following business and industry experts to help in the decision making, strategizing, and oppor-tunity pouncing process; SuperFast Delivery is composed of a team where all the members add theirs abilities and advices to offer a realistic vision of what we do and how we do.

In this ways SuperFast Delivery benefits of Marketing & Communication expert Ayah EL SHABASSY graduated from an Egyptian National Business School, Sales Manager Antoine FAUCHILLE graduated from a Sales & Man-agement Institute, Accounting and financial expert Ana paulina DOMINGEZ graduated from The Mexican National Financial Institute and a Logistic ex-pert Xavier GENRE GRANDPIERRE graduated from a French Logistics & Orga-nization school.

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All those different profiles of partners offer to SuperFast Delivery the capac-ity to propose a clear vision of all the requirements that a Delivery company needs to start with complete confidence.

Our employees will fit with our recruiting requirements to form a global team composed of people who trust and support into the company mains goals and opportunities.

Capital Requirements

SuperFast Delivery business model needs to be support to start the project with confidence 140 000 euros. (103499 for expenses plus 30000 for emergencies and unexpected costs)

This launching capital will be reach from personals supports of the partners and from Business Angels.

We already think in the way to attract and contact potentials business an-gels here in France thanks to the Chambre de Commerce of Le Havre where we will expose and develop our project.

We also plan to contact the small business development center of our city to be in contact with local potentials business angels.

Capital needed classify in the mains departments:

Complete development 140 000 euros

Purchase equipment 32 000 euros

Market our new/next product line 16 000 euros

Fund working capital 82 000 euros

We will get 71400 euros from personal funds coming from the four main partners and the other 68600 euros from the Business Angels.

Business Angels who trust into the potential of the company and choose to support us on a long term business relationship will be paid back after 3

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months after the official launch of the company with 25 % of interest on theirs invests. The low price of the initial capital with the high potentials profits will permit to SuperFast Delivery the capacity to refund our loans on time.

Financial Plan

In every enterprise, the financial factor has a vital importance due to this plan will determine both the durability and the profitability of it.

The knowledge of the financial resources we own will lead us to a good distri-bution of them, allowing the company to have a benefit of all them.

SuperFast Delivery requires a small initial capital of 150,000€ due to we are a company with a single service: transporting what clients ask to be transported. Therefore, our main invest will be vehicles. The operating costs of our headquarter office, the vehicles maintenance and salaries in Egypt are low, profitable and we are targeting a big market, thus revenues are a tangi-ble reality.

Figure 1.1 Investment budget

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Figure 1.2 Human Capital required for our first year, along with the amount of the salaries and the social insurance that must be included on those salaries, covering a percentage of 23% by law.

Figure 1.3 Law requirements and fees

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Figure 1.4 Operating costs

Figure 1.5 Initial Capital Requirements

As it is shown in order to launch SuperFast Delivery, we will an initial capi-tal of 150 000€ to cover our costs, inversion and preventing extra cash in case any emergency is incurred. We pretend to attract angel investors who will invest in our company an amount of 73500 euros , which equals the 49% of our capital.

The main investment (51%) will be made by the four creators of the com-pany for the first five years as seen in figure 1.6.

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Figure 1.6 Investment percentages.

As we have already shown in our market plan, forecasted sales are 3 935 500 € for our first year, taking expenses, costs, depreciation and taxes, on our first year our Net Income is for 2 998 100 €, a great number for a startup.

Assumptions

The numbers, figures and market analysis had shown that the growth of our market will increase considerably year by year leading us to have the right amount of resources to compete on an exigent sector of the market, main-taining our promise to bring to our customers fastness and quality. Thus, with the growth of our market, it is possible for the company to achieve pretty good revenues.

This is our percent sales increase forecast for the first five years:

2016, 100% increased

2017, 50% increased

2018, 33% increased

2019, 25% increased

Income statements

Sales will increase roughly year by year. Alexandria has the right conditions to expand our services and our monthly forecast shows it.

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In our Income Statement we can see evidently how our company will bring a positive revenue by the end of each year. It’s important to highlight that we are not talking about a small revenue, on the contrary, numbers show an ag-gressive revenue.

Since we are a company who sells services, our cost of goods sold are almost inexistent, nevertheless, we own several operating costs and expenses that will increase as the company does so. For instance, in our year 3 all of our vehicles will have a high technology GPS which will allow them to avoid traf-fic jams since these are one of the main reasons people will use SuperFast Delivery and every year our drivers will have a high technology system that will allow us to have a more efficient communication B to C

Gross profit will remain static as [new introductions will be at higher margins, while we expect margins of older lines to erode].

Selling and administration expense will increase among with the number of our staff member, but the increasing of our sales will cover this percentage and these expenses.

Balance Sheet Summary

Assets and liabilities prove that Egypt has the perfect conditions for Super-Fast Delivery to grow quickly and with a good financial foundation. Our main suppliers’ fees will increase minimally, therefore, accounts payable will maintain a good balance. Bank loans will not be necessary during our first five years, the company will be able to create its own survival resources.

Cash Flow and Break Even Analysis

Due to the results analyzed in this statement, investors and third parties are able to appreciate SuperFast Delivery as a quality company. Since our first year, cash flows show a larger amount than net income identifying a good cash amount flowing in the company.

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According to predicted sales, SuperFast Delivery will be able to reach breakeven point by June 2015, our sixth month, where we will send 170 000€.

Conclusion

By following this detailed plan (Capital, projections and target demographics) SuperFast Delivery will meet its financial goals.

SuperFast Delivery will grow from 200,000 clients to reach its one million customers over the first five years. Moreover, the combination of successful management team with relatively low prices, high quality and fast delivery has our company positioned to be the leader in its market.

Therefore we are requesting 68600 euros from angel investors

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