Hajj sim Geotracker business plan

Starting up – FB Hajj SIM Tracker – May 1st 2015
Executive Summary
The Pilgrimage to Mecca (Hajj in Arabic) constitutes one of the five faith pillars of Islam.
http://en.wikipedia.org/wiki/Five_Pillars_of_Islam
Hajj takes place once a year ; it starts on the 8th day of Dhu al-Hijjah, the last month of the
Islamic calendar and involves a long ceremonial trip that lasts 2-3 weeks. The Gregorian date of
Hajj changes from year to year. There is also a side-line perpetual pilgrimage to Mecca, that is
executed throughout the year, and it is called Umrah, having the same duration as Hajj.
Every Muslim with adequate financial means, worldwide, is obliged to exercise the Pilgrimage
to Mecca at least once in his life-time. Millions do every year. It is an expensive trip nonetheless;
a foreign Hajj traveler spends an average of 5,000USD on travel, accommodation, and support
services. All Hajj-related services are price-inflated due to increased demand. Overall, the Mecca
Pilgrimage (Hajj and Umrah) takes place throughout the year -non stop – and it is in-fact the
second biggest money earner for the Kingdom of Saudi Arabia, with oil being money earner No
1. It is a trip that people from poor countries save money for years to fulfill.
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http://en.wikipedia.org/wiki/Hajj
For foreigners of Islamic faith, a special Hajj/Umrah visa is issued by the Saudi authorities, to
grant them access to the holy Islamic grounds of Mecca; Non-Muslim Westerners are not
allowed in. Saudis do not need Mecca-visas. For 2015, the number of Mecca-visas issued for
Hajj and Umrah has been scheduled to reach 8,5 million units. There is fierce competition, and a
complex rationing system, for visa distribution throughout the Muslim world. An estimated 6
mil. Saudis are also expected to participate in the Pilgrimage throughout 2015.
A Mecca pilgrimage lasts between 2-3 weeks. It involves travel in several different places around
Mecca, many times followed by a trip to Medina, negotiating overcrowded sites among millions
of people, staying out at night in tent-racks, spending time in the outdoors in the often
unforgiving climate of Saudi Arabia, and going through long ceremonial foot marches. It is a
dangerous trip, with hundreds of people killed and injured every year, due to criminal activity
and erratic crowd controls.
The mobile telecom companies of Saudi Arabia, Zain, Mobily and Saudi Telecom Company
(STC) offer to pilgrims special SIM cards, called Hajj or Visitor SIMs, which are anonymous,
automatically disconnected from the mobile network within 60 days of their first activation;
SIMs that offer steeply discounted prices for both incoming calls and outgoing calls – to help the
pilgrims communicate easily with their families abroad. Hajj-SIMs are disposable. The roaming
rates to KSA are high, so practically all foreign pilgrims use Hajj-SIMs.
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http://www.stc.com.sa/wps/wcm/connect/english/stc/NewsItems/sawa-visit-pilgrims
15 mil. of these prepaid SIMs are sold every year in Saudi Arabia, since they cater not only to
Mecca Pilgrims, but also to foreign business travelers. A big number of these cards is sent to
Hajj-visa applicants abroad, when they clear their visa fees, before they enter Saudi Arabia.
In 2014, two thirds of foreign mobile users in Hajj still operated cheap feature phones (2nd
generation mobile phones), and only one third smartphones; reasons have to do mostly with 3rd
world origin of many pilgrims, high petty crime occurrence during hajj - so not a wise idea to
carry your latest iPhone around - adverse and harsh conditions, long battery life useful for hajj,
etc.
Who are we?
Based on the Hajj-SIM user population, the SIM anonymity and disposability, the inherent
attributes of Hajj and Umrah, the demographics and expenditure rates of Pilgrims, Yiannis
Hatzopoulos, a Greek electrical engineer is launching a startup – Xyrkadia - with an unusual
mission. We aim to link the anonymous Hajj-SIM cards with their users that have active
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Facebook profiles, letting them project - in real time - their approximate geo-location to their
social network, enhancing their perceived security feeling, and offering a new connection path
with family and friends; by letting people update their Facebook text status even when using the
most elementary mobile phones, or even smartphones without active data-plans; creating a multi-
cast text channel between Hajj-SIM and the Facebook social network; while reaching the
authorities with geo-located alerts, in cases of emergencies and danger, with any mobile device.
The Hajj and Umrah is a once-in-a-life-time experience for most Muslims, thus people feel
extremely proud in participating, and want to share their experience in social media.
What do we Sell?
The product, Facebook Hajj-SIM Tracker (aka FHST), consists of server software, running under
Linux, an open-source operating system which powers most data centers around the globe.
It allows the users of any kind of mobile device, be it a feature phone, smartphone or smartwatch
, to present their user's approximate geo-location on a mapped Facebook service, in real time.
The granularity of geo-location can be user selected, ranging from coarse (eg city the users is in,
to fine-tuned - reaching an accuracy of 200 meters); the user can limit the projection to specific
people among his social network, if he wants, using standard Facebook-post selection actions.
Everything works on the server side, and as such, it does not use GPS, WiFi, Data-plan Mbytes,
and does not drain the device's battery, or over-heat it, like apps running in smartphones
frequently do. The service can be run in the background for weeks, in fact for the full duration of
a Hajj/Umrah trip.
It is noteworthy, that smartwatches are the upcoming wearable trend in mobility devices, and in-
fact an extremely useful gadget for Hajj pilgrims; but smartwatches suffer from their battery's
small capacity. Thus, 'outsourcing' their location related functions to the mobile network's side,
instead of their inbuilt GPS, can offer a big boost in the utility that these devices provide, since it
can increase the stand-by time probably by 6-8 fold.
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The Facebook integration and social interaction adds great virality potential for the mobile
network operator's offerings (MNO). The Facebook tracker service provision can include ad –
banners controlled directly by the MNO, presenting new product offerings to the user's whole
social network as well as normal Facebook ads.
All of the mobile operators in Saudi Arabia are multinational companies with stakes through-out
the Muslim world, in Asia and Africa. The marketing data collected from Facebook interaction
can be used to support subsequent MNO campaigns, and can have extremely high value for
market research and product promotions.
Eventually our corporate mission is to sell not only the described service to MNOs, but also
processed meta-data extracted from the Facebook Graph API.
Who do we Sell To?
The business model is clean B2B. We could do business with one, or possibly more, of the
mobile operators in Saudi Arabia: STC, Mobily, Zain or possibly the MVNO Lebara KSA.
Financial Summary
Initial investment necessary to develop a minimum viable product is around 220,000 USD.
Revenue for the service can gradually grow to around 1.3+ mil USD/year. The company can
have its tax base in a favorable tax domicile such as the free trade zone of RAK in the United
Arab Emirates. The management setting and development crew can be operating under the agile
management principle.
Financial Highlights
The service can either be retailed under a flat price from the MNO – possibly around 1USD,
covering the full duration of the Hajj or Umrah (max of 60 days); or eventually come as a freebie
supported by Facebook ad flow. Indeed revenue can be obtained from Facebook, as it is pushing
ads along the Hajj-SIM tracker service embedded in its site. Facebook CPM and CPC metrics for
most major Islamic countries are around 0,30USD, thus quite significant amounts get collected,
out of which a slice will be shared among our company and the MNO.
CPC is the price Facebook charges advertisers for each ad clicked. CPM is the price paid by
advertisers for each 1,000 impressions of their targeted ads in Facebook.
Statistics show that the average Facebook user has around 300 friends. Let's assume 150 of them
will be checking their friend's track on Hajj or Umrah. Thus, for every million users recruited,
we get a conduit to the Facebook time-lines of 150+mil people, receiving our marketing
messages and the MNO's offerings, when they review their Facebook friend's location and status
updates from Mecca; bringing along a wealth of marketing analysis data, which can be exploited
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for market strategy studies and subsequent promotions. In fact, the marketing data collected can
have significantly higher financial value than the true cost of offering the Tracker service.
The average prices charged by Facebook per 1,000 impressions and associated clicks (~0.1% of
impressions) on ads, per country are listed bellow. Based on the compound figures, a revenue
share can be agreed with Facebook. Typically, Facebook keeps 30% of ad revenue generated and
the associated content provider enjoys 70%.
A typical example; Getting 1,000,000 users engaged in our platform grants access to
150,000,000 Facebook users and their time-lines. To each of them, during the course
of 15-20 days, we push 60+ ad impressions. The associated collective impression
count is 9,000,000,000 ads and the click rate is around 9,000,000. These figures
translate into around 2,700,000 – 3,000,000 USD charged by Facebook to advertisers
for every 1mil SIM Users, we engage in our service. Engaging 2mil users brings the
Facebook generated ads sold at around 6+ mil USD. Facebook gets to keep one third
and typically releases the remaining two thirds to the associated content provider, in
this case the MNO and our company. We can get a piece of that to run the service,
and the MNO will get a good reward for offering access to the client base. This is
how the service can be released for free, and this is how the MNO will enjoy an
extremely healthy margin, along with a powerful and free advertising channel.
* CPC is advertising cost per 1 Facebook ad click
* CPM is advertising cost per 1,000 Facebook impressions
Country Avg CPC(*) Avg CPM(*) Compound
Japan 1,32 USD 0,38 USD 1,70 USD
Amer. Samoa 1,21 USD 0,09 USD 1,30 USD
United States 1,09 USD 0,22 USD 1,31 USD
Australia 1,08 USD 0,24 USD 1,32 USD
Russia 1,02 USD 0,40 USD 1,42 USD
Switzerland 0,89 USD 0,16 USD 1,05 USD
Norway 0,87 USD 0,16 USD 1,03 USD
UK 0,79 USD 0,16 USD 0,95 USD
Guernsey 0,76 USD 0,23 USD 0,99 USD
New Zealand 0,76 USD 0,16 USD 0,92 USD
South Africa 0,75 USD 0,25 USD 1,00 USD
Canada 0,73 USD 0,16 USD 0,89 USD
Ireland 0,72 USD 0,36 USD 1,08 USD
Denmark 0,72 USD 0,17 USD 0,89 USD
Nigeria 0,72 USD 0,15 USD 0,87 USD
Sweden 0,70 USD 0,16 USD 0,86 USD
Iceland 0,69 USD 0,34 USD 1,03 USD
Israel 0,66 USD 0,33 USD 0,99 USD
Netherlands 0,65 USD 0,15 USD 0,80 USD
Kazakhstan 0,64 USD 0,23 USD 0,87 USD
Germany 0,59 USD 0,11 USD 0,70 USD
Cayman Isl. 0,56 USD 0,10 USD 0,66 USD
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Singapore 0,53 USD 0,12 USD 0,65 USD
Aland Islands 0,52 USD 0,08 USD 0,60 USD
Finland 0,51 USD 0,09 USD 0,60 USD
Liechtenstein 0,51 USD 0,05 USD 0,56 USD
Austria 0,49 USD 0,11 USD 0,60 USD
Ukraine 0,48 USD 0,14 USD 0,62 USD
Kuwait 0,45 USD 0,09 USD 0,54 USD
France 0,44 USD 0,10 USD 0,54 USD
UAE 0,40 USD 0,10 USD 0,50 USD
Belgium 0,40 USD 0,07 USD 0,47 USD
Jersey 0,39 USD 0,19 USD 0,58 USD
Oman 0,36 USD 0,09 USD 0,45 USD
Bahrain 0,36 USD 0,07 USD 0,43 USD
Luxembourg 0,36 USD 0,04 USD 0,40 USD
South Korea 0,35 USD 0,11 USD 0,46 USD
Saudi Arabia 0,34 USD 0,08 USD 0,42 USD
Qatar 0,33 USD 0,06 USD 0,39 USD
U,S, Virgin Islands
0,33 USD 0,06 USD 0,39 USD
Lebanon 0,32 USD 0,08 USD 0,40 USD
Puerto Rico 0,32 USD 0,07 USD 0,39 USD
Hungary 0,31 USD 0,15 USD 0,46 USD
Spain 0,31 USD 0,08 USD 0,39 USD
Turks and Caicos Islands
0,30 USD 0,06 USD 0,36 USD
Hong Kong 0,29 USD 0,08 USD 0,37 USD
Italy 0,29 USD 0,06 USD 0,35 USD
Reunion 0,28 USD 0,04 USD 0,32 USD
Belarus 0,27 USD 0,10 USD 0,37 USD
Czech Rep. 0,27 USD 0,05 USD 0,32 USD
Isle of Man 0,26 USD 0,13 USD 0,39 USD
Poland 0,26 USD 0,06 USD 0,32 USD
India 0,25 USD 0,13 USD 0,38 USD
Trinidad and Tobago
0,25 USD 0,05 USD 0,30 USD
Martinique 0,24 USD 0,05 USD 0,29 USD
Malta 0,24 USD 0,05 USD 0,29 USD
Guyana 0,23 USD 0,05 USD 0,28 USD
Guadeloupe 0,23 USD 0,05 USD 0,28 USD
Namibia 0,23 USD 0,05 USD 0,28 USD
Slovakia 0,23 USD 0,04 USD 0,27 USD
Panama 0,22 USD 0,05 USD 0,27 USD
Kenya 0,22 USD 0,05 USD 0,27 USD
New Caledonia
0,22 USD 0,05 USD 0,27 USD
Brazil 0,22 USD 0,04 USD 0,26 USD
French Polynesia
0,22 USD 0,04 USD 0,26 USD
Macao 0,21 USD 0,05 USD 0,26 USD
French Guian. 0,21 USD 0,04 USD 0,25 USD
Slovenia 0,21 USD 0,03 USD 0,24 USD
Antigua 0,21 USD 0,03 USD 0,24 USD
Faroe Islands 0,21 USD 0,02 USD 0,23 USD
Monaco 0,21 USD 0,02 USD 0,23 USD
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Guatemala 0,20 USD 0,05 USD 0,25 USD
China 0,20 USD 0,04 USD 0,24 USD
Aruba 0,20 USD 0,03 USD 0,23 USD
Barbados 0,20 USD 0,03 USD 0,23 USD
Iraq 0,19 USD 0,10 USD 0,29 USD
Malaysia 0,19 USD 0,05 USD 0,24 USD
Egypt 0,19 USD 0,04 USD 0,23 USD
Portugal 0,19 USD 0,04 USD 0,23 USD
Bahamas 0,19 USD 0,04 USD 0,23 USD
British Virgin Islands
0,19 USD 0,03 USD 0,22 USD
Greenland 0,19 USD 0,02 USD 0,21 USD
Vatican 0,18 USD 0,09 USD 0,27 USD
Burundi 0,18 USD 0,09 USD 0,27 USD
Latvia 0,18 USD 0,04 USD 0,22 USD
Uzbekistan 0,18 USD 0,04 USD 0,22 USD
Costa Rica 0,18 USD 0,04 USD 0,22 USD
Jordan 0,18 USD 0,04 USD 0,22 USD
Saint Kitts 0,18 USD 0,02 USD 0,20 USD
Indonesia 0,17 USD 0,09 USD 0,26 USD
Papua New Guinea
0,17 USD 0,05 USD 0,22 USD
Kyrgyzstan 0,17 USD 0,04 USD 0,21 USD
Ghana 0,17 USD 0,04 USD 0,21 USD
Taiwan 0,17 USD 0,04 USD 0,21 USD
Azerbaijan 0,17 USD 0,04 USD 0,21 USD
Romania 0,17 USD 0,03 USD 0,20 USD
Estonia 0,17 USD 0,03 USD 0,20 USD
Grenada 0,17 USD 0,02 USD 0,19 USD
Gibraltar 0,17 USD 0,02 USD 0,19 USD
Tanzania 0,16 USD 0,06 USD 0,22 USD
Angola 0,16 USD 0,04 USD 0,20 USD
Jamaica 0,16 USD 0,04 USD 0,20 USD
Cyprus 0,16 USD 0,03 USD 0,19 USD
Botswana 0,15 USD 0,03 USD 0,18 USD
Turkey 0,15 USD 0,03 USD 0,18 USD
Pakistan 0,15 USD 0,03 USD 0,18 USD
Mozambique 0,15 USD 0,03 USD 0,18 USD
Saint Lucia 0,15 USD 0,03 USD 0,18 USD
Andorra 0,15 USD 0,02 USD 0,17 USD
Chile 0,14 USD 0,04 USD 0,18 USD
Mexico 0,14 USD 0,04 USD 0,18 USD
Lesotho 0,14 USD 0,03 USD 0,17 USD
Dominican Rep.
0,14 USD 0,03 USD 0,17 USD
Thailand 0,14 USD 0,03 USD 0,17 USD
Mauritius 0,14 USD 0,03 USD 0,17 USD
Honduras 0,14 USD 0,03 USD 0,17 USD
Belize 0,14 USD 0,03 USD 0,17 USD
Greece 0,14 USD 0,03 USD 0,17 USD
Suriname 0,14 USD 0,03 USD 0,17 USD
Lithuania 0,14 USD 0,02 USD 0,16 USD
Bolivia 0,13 USD 0,07 USD 0,20 USD
Haiti 0,13 USD 0,07 USD 0,20 USD
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Zambia 0,13 USD 0,06 USD 0,19 USD
Morocco 0,13 USD 0,03 USD 0,16 USD
Sri Lanka 0,13 USD 0,03 USD 0,16 USD
Saint Vincent 0,13 USD 0,03 USD 0,16 USD
Dominica 0,13 USD 0,02 USD 0,15 USD
Guam 0,13 USD 0,02 USD 0,15 USD
Mayotte 0,13 USD 0,02 USD 0,15 USD
El Salvador 0,12 USD 0,03 USD 0,15 USD
Armenia 0,12 USD 0,02 USD 0,14 USD
Colombia 0,12 USD 0,02 USD 0,14 USD
San Marino 0,12 USD 0,01 USD 0,13 USD
Anguilla 0,12 USD 0,01 USD 0,13 USD
Benin 0,11 USD 0,06 USD 0,17 USD
Samoa 0,11 USD 0,03 USD 0,14 USD
Afghanistan 0,11 USD 0,03 USD 0,14 USD
Uganda 0,11 USD 0,03 USD 0,14 USD
Argentina 0,11 USD 0,03 USD 0,14 USD
Libya 0,11 USD 0,02 USD 0,13 USD
Yemen 0,11 USD 0,02 USD 0,13 USD
Moldova 0,11 USD 0,02 USD 0,13 USD
Swaziland 0,11 USD 0,02 USD 0,13 USD
Croatia 0,11 USD 0,02 USD 0,13 USD
Nauru 0,11 USD 0,02 USD 0,13 USD
Peru 0,11 USD 0,02 USD 0,13 USD
Uruguay 0,11 USD 0,02 USD 0,13 USD
Philippines 0,11 USD 0,02 USD 0,13 USD
Palestinian Territory
0,11 USD 0,02 USD 0,13 USD
Bulgaria 0,11 USD 0,02 USD 0,13 USD
Paraguay 0,11 USD 0,02 USD 0,13 USD
Malawi 0,10 USD 0,04 USD 0,14 USD
Cameroon 0,10 USD 0,03 USD 0,13 USD
Venezuela 0,10 USD 0,02 USD 0,12 USD
Bangladesh 0,10 USD 0,02 USD 0,12 USD
Rwanda 0,10 USD 0,02 USD 0,12 USD
Nicaragua 0,10 USD 0,02 USD 0,12 USD
Brunei 0,09 USD 0,05 USD 0,14 USD
Gabon 0,09 USD 0,03 USD 0,12 USD
Tajikistan 0,09 USD 0,03 USD 0,12 USD
Fiji 0,09 USD 0,02 USD 0,11 USD
Cambodia 0,09 USD 0,02 USD 0,11 USD
Rep. of Congo 0,09 USD 0,02 USD 0,11 USD
Algeria 0,09 USD 0,02 USD 0,11 USD
Turkmenistan 0,09 USD 0,02 USD 0,11 USD
Madagascar 0,09 USD 0,02 USD 0,11 USD
Seychelles 0,09 USD 0,01 USD 0,10 USD
Vanuatu 0,09 USD 0,01 USD 0,10 USD
Maldives 0,09 USD 0,01 USD 0,10 USD
Tonga 0,09 USD 0,01 USD 0,10 USD
Laos 0,09 USD 0,01 USD 0,10 USD
Falkland Isl. 0,09 USD 0,01 USD 0,10 USD
Vietnam 0,09 USD 0,01 USD 0,10 USD
Nepal 0,08 USD 0,02 USD 0,10 USD
Equ. Guinea 0,08 USD 0,02 USD 0,10 USD
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Solomon Islands 0,08 USD 0,02 USD 0,10 USD
Senegal 0,08 USD 0,02 USD 0,10 USD
Northern Mariana Islands
0,08 USD 0,01 USD 0,09 USD
Tunisia 0,08 USD 0,01 USD 0,09 USD
Democratic Republic of the Congo
0,08 USD 0,01 USD 0,09 USD
Cape Verde 0,08 USD 0,01 USD 0,09 USD
Palau 0,08 USD 0,01 USD 0,09 USD
Sao Tome and Principe
0,07 USD 0,02 USD 0,09 USD
Somalia 0,07 USD 0,02 USD 0,09 USD
Togo 0,07 USD 0,02 USD 0,09 USD
Sierra Leone 0,07 USD 0,02 USD 0,09 USD
Burkina Faso 0,07 USD 0,02 USD 0,09 USD
Ethiopia 0,07 USD 0,02 USD 0,09 USD
Gambia 0,07 USD 0,02 USD 0,09 USD
Mali 0,07 USD 0,02 USD 0,09 USD
Serbia 0,07 USD 0,01 USD 0,08 USD
Micronesia 0,07 USD 0,01 USD 0,08 USD
Bhutan 0,07 USD 0,01 USD 0,08 USD
Georgia 0,07 USD 0,01 USD 0,08 USD
Albania 0,07 USD 0,01 USD 0,08 USD
Kiribati 0,07 USD 0,01 USD 0,08 USD
Eritrea 0,06 USD 0,02 USD 0,08 USD
Guinea 0,06 USD 0,02 USD 0,08 USD
Niger 0,06 USD 0,01 USD 0,07 USD
Chad 0,06 USD 0,01 USD 0,07 USD
Central African Republic
0,06 USD 0,01 USD 0,07 USD
Mongolia 0,06 USD 0,01 USD 0,07 USD
Marshall Islands
0,06 USD 0,01 USD 0,07 USD
Tuvalu 0,06 USD 0,01 USD 0,07 USD
Mauritania 0,06 USD 0,01 USD 0,07 USD
Djibouti 0,06 USD 0,01 USD 0,07 USD
Comoros 0,05 USD 0,02 USD 0,07 USD
Bosnia and Herzegovina
0,05 USD 0,01 USD 0,06 USD
Macedonia 0,05 USD 0,01 USD 0,06 USD
Montenegro 0,05 USD 0,01 USD 0,06 USD
Company Overview
Introduce the company:
• Name: Xyrkadia
• Location: RAK – Free trade zone UAE
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• A software factory company for Xyrkadia will be setup at the site of its software
development team, possibly Greece. Xyrkadia will take charge of the product's marketing
and sales, and its software factory the R&D and support.
• What it does: Xyrkadia markets Linux server software, linking Hajj-SIM cards to
Facebook
• Who owns it: Yiannis Hatzopoulos
• Why do you think it will be a success
The company follows an efficient B2B model. Very low marketing costs are necessary and
minimal customer acquisition costs exist, as the communication of the service to end users is
taken care of by a mobile operator. Low overheads, agile setting and operation, while negotiating
an unconventional purchase of the market space is possible. A small team of engineers is all it
takes to run it. The founder is also the chief technical architect. The players in the market are few
and can be engaged in a deal well before Xyrkadia and its potential investors actually commit
resources past a prototype of the service; thus capital risk is moderate. Attracting a business
angel's cash to launch the service is significantly easier when the first deal is ready to run.
Mission Statement
Our aim is to build a link between Hajj-SIM cards and Facebook, allowing people to selectively
present their location in real time to their social network, for very long periods of time, without
draining battery, nor consuming data plan Mbytes, without relying on GPS, or Wi-Fi, and
without overheating a smartphone, like most GPS based apps do. Service will work on all mobile
devices, regardless of price, type, OS, or make. Facebook status updates can be broadcast from
any mobile device as well as geo-located emergency alerts to the authorities.
We aim to process marketing information and meta-data from the users' Facebook population
social graph and sell this processed information to the MNO to be used in focused marketing
campaigns.
A clear Mission Statement:
• State the vision: where do you want to be?
The FB Hajj-tracker service is a first step product, towards building a platform that can support
geo-space social interactions on smartphones and mobile apps; running background geo-
tracking services, that work inside the mobile network as a daemon service; lasting far longer
than an activated GPS can be supported on a normal smartphone battery.
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Strategy -Summary statement regarding the strategy to fulfill your Mission : How will you get
there?
The first step has to be a bold one. The FHST is actually a mobile Value-Added-Service (VAS)
running inside a Mobile Operator's data center. As such, marketing the service to end-users is
delegated to the associated MNO. Basic tools to be used are MNO SMS campaigns, web and
social media, point of sales exposure. The MNO has already in place the infrastructure, the tools
and the marketing expertise to lead the users to the service. The strategy is to make optimal use
of resources and established sales networks.
Management Team
At the moment the company is run by Yiannis Hatzopoulos; benchmarking and prototyping the
platform, does not need significant resources. The team will grow with people bringing in
complementary engineering and marketing skills according to market feedback. Yiannis had
designed a SIM card for Muslim users with Bluefish Technologies, a Danish SIM manufacturer;
and has contacts to mobile operators in the Islamic markets.
(Yiannis Hatzopoulos – Founder)
Brief professional track of Yiannis Hatzopoulos
Degree in Electrical engineering; PhD drop out in combinatorial optimization.
15 year professional track, covering several roles:
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Technical architect, Mobile design lead, product manager, Senior software engineer.
Domain areas included
• SIM cards, Crypto communications
• Powerline communications
• Smart-Grid technologies,
• CAD/CAM engineering – laser plotting
• Antipiracy technologies,
• Smart-Cards, Digital rights management
• Electronic Fund Transfer systems
• Mobile Applications, Web applications.
Ownership status Yiannis Hatzopoulos – the owner at 100% stake.
Provide a rationale for your choice of the specific management team.
The founder has the expertise to prototype the service; and go through the first steps to market
the evaluation run by MNOs. It is important at this stage to keep the overhead low, to have a very
clear vision of the product development cycle, and the way to deliver it to the client. The team
will grow according to the feedback received by clients.
Products and Services
A detailed analysis of your product(s) and/or service(s) e.g. principles of product/service design
like a House of Quality, prototype products
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The product is a mobile Value Added Service (VAS) running as software inside the MNO's data
center. As such it can be instantly monitored remotely, updated, upgraded and enriched with new
features. The servers which will host the system belong to the MNO.
Without going into technical detail, the system uses signal strength triangulation from mobile
network cell towers to geo-locate the user – the user grants the necessary rights to do so by
activating the service.
This geo-location data can be presented on an embedded map application in Facebook, for easy
access by the user's social network. Additionally, we offer a service to broadcast Facebook text
status updates, to enrich the content. We do not need a data-plan or GPS on the mobile device to
offer the service nor WiFi. Geo-location wise, the cell tower concentration in the area we are
interested in is very dense, due to the high congregation of people it must support; thus the
triangulation results can be quite accurate .
Is there a service-product mix?
Yes, prepaid SIM cards sold by MNOs and our software inside their data centers.
Are you expecting to expand your product/service offering in the future and how? What
will be the objective for the expansion?
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Yes; there are additional clusters in the world, that can benefit from a perpetual tracking service,
that does not draw power for a smartphone's battery and can last for weeks. If the Hajj-SIM
tracker is a success, it is quite probable that Facebook will take notice and possibly help the
marketing effort in other sites around the world.
The business-case can involve statistical processing of Facebook Graph API data, which can be
monetized by our customers.
PEST analysis of the general business environment:
• Politics: How the political system, institutions, government regulation, possible
corruption, labor & corporate governance laws. political parties & attitudes that affect
your business
The service is marketed in the Kingdom of Saudi Arabia, the world's largest oil producer ruled
by an absolutist monarchy; the Al Saud royal family. The royal family is politically divided by
factions based on clan loyalties, personal ambitions and ideological differences, and partly owns
KSA's mobile operators. There is corruption, and every significant financial deal has to allocate
part of the revenues to cover it. The occurrence of irregular payments and bribes is still common,
representing potential difficulties on doing business in Saudi Arabia.
• Economics: The international/national economic outlook (current and future),
government policies, financial system and access to capital, taxation & subsidies,
exchange rates, interest rates, macroeconomic risks affecting your business
The Saudi Currency SAR is pegged to the dollar. Overall the Hajj/Umrah business is growing –
reflecting the economy growth in countries where Muslims live. The KSA economy is heavily
influenced by oil revenues.
Our company will be registered in a Free Trade Zone in UAE, where no capital gains and sale
taxes are imposed for export on products and services. We will be doing business in Saudi Arabia
though – cooperating with KSA resident companies, in cases of sales of mobile VAS; the latter
does not apply as such if the service is backed by Facebook ad revenue – in which case our
revenue will be coming from Facebook in either Ireland or US, with the rules applicable in these
jurisdictions.
KSA
There is no VAT or other similar sales (or consumption) tax in Saudi Arabia.
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A resident company is taxed on income arising in the Kingdom. A corporation is resident if it is
registered in accordance with the Regulations for Companies in Saudi Arabia or if it is
headquartered in the Kingdom. A non-resident company carrying out its business activities in the
Kingdom through a permanent establishment is taxed on income arising from or related to the
permanent establishment.
The tax rate is 20% on a non-Saudi's share in a resident company and on income derived by a
non-resident from a permanent establishment in Saudi Arabia.
Capital Gains Taxation
20% capital gains tax is imposed on the disposal of shares in a residential company. However, as
per the new tax regulations, the capital gains on disposal of shares on the Saudi stock exchange
are exempt if the shares were acquired after 2004. Main Allowable Deductions and Tax Credits
Bad debt, repairs, natural disasters, charitable donation, R&D expenses, etc.
Other Corporate Taxes
Capital duty, Payroll Tax, Real property tax, Stamp Tax are imposed on companies in Saudi
Arabia. Additionally, Saudi companies of all types and companies owned by nationals of GCC
(Cooperation Council for the Arab States of the Gulf) states that conduct business in the
Kingdom, and shares of Saudis and nationals of GCC states in joint companies are subject to
Zakat. Zakat is an Islamic direct tax on property and income levied at a flat rate of 2.5%.
Social Security (9% of the employee's salary) needs to be paid for Saudi employees, in addition
accident insurance at 2% of salary needs to be paid for both Saudi and non-Saudi employees.
The tax rate on companies (both Saudi and non-Saudi) working in the exploitation of the natural
gas sector is 30%, and those involved in production of oil and hydrocarbons is 85%.
Facebook payment information and tax compliance
https://developers.Facebook.com/policy/payments_terms
• Socio-cultural: Trends that affect your product that might include cultural issues
(Europeanisation, openness, women, minorities, youth etc), demographic issues
(population growth, population aging, urbanisation etc), educational skills, local habits &
cultural traits, entrenched mentalities, social classes/groups and their attitude to your
product
The Saudi society follows the Islamic sharia law. It is a conservative society. Our service is also
marketable to the international Muslim population. We are focusing on Facebook users; they can
be considered the tech-savvy part of their respective societies. And we aim to add value to their
social interactions.
16

• Technology: access to technology, availability of tech-skilled employees, R&D issues,
population open to technology related products, technological infrastructures, tech
literacy of population.
We are focusing on smartphone and feature phone users with active Facebook accounts to adopt
the tracker service, based on SIM cards that are anonymous, and only used a couple of weeks,
then disposed of by the foreign pilgrims. The technical sophistication of an existing Facebook
user is adequate to make use of our service. Note that the MNO has the option to market the
same solution to normal prepaid SIMs used by Saudis.
Industry Analysis
This is the first part of your 5-Forces analysis focusing on Demand & Suppliers:
• Demand: Market size (industry turnover), growth prospects, purchasing power of
consumers and broad characteristics, market segments, elasticity of demand, product
differentiation, buyers information availability, product distribution
channels/infrastructures, Government regulation issues,
There are around 4.5 million of active Facebook users in our overall market segment (both
Saudis and foreign Pilgrims). 2 million of them use feature-phones, and around 2.5 million use
smartphones . The number of Facebook users grows every year.
Each foreigner spends around 5,000USD on average to take the Hajj/Umrah pilgrimage, Saudis
spend one third of this figure. To avoid the high roaming costs to Saudi Arabia, foreign mobile
users resort to Visitor or Hajj SIMs, which are prepaid cards, sold at around 8-9USD, containing
5-6USD telecom credit. The FHST service is designed to retail at a flat price of around 1USD
out of their SIM credit, OR be completely free, based on ad revenues derived from Facebook.
The MNO will make the choice.
Note that an MNO can actually offer the service even to local SIMs for Saudi users, as 85%
of the mobile market in the KSA involves prepaid SIMs.
Hajj is a dangerous event; it is useful for pilgrims to have a tool that ensures somebody is
tracking them continuously for their own safety, and equally important for families and friends,
possibly thousands of miles away, to feel assured everything is OK at the location of their
beloved ones. This need is taken care of by our platform, in an easy to use, viral and cheap way,
compatible with every possible mobile device and operating system.
17

We rely on the MNO's communication channels to make users aware of the service, namely SMS
campaigns on the first time a user connects to the network; social media and web, information at
the location of the sales of Hajj-SIMs (airports, stations, mobile services outlets). These channels
are controlled by the MNO (Mobile Network Operator) .
The KSA law does not forbid offering geo-location and tracking services following the user's
consent; the activity is legal and can be executed by the MNO.
• Suppliers: availability of raw materials and other inputs, costs of materials, labor costs &
union power, characteristics of suppliers (market segmentation, competition), market
types of suppliers and their bargaining power, distribution channels, substitutes for inputs,
reliability of suppliers (prompt delivery and lead times), quality of delivered inputs,
ability to collaborate & network with suppliers, terms of payment.
The service is Linux software running inside the MNO's servers. Development and support can
be taken care of by a small group of engineers and support personnel. No physical distribution of
assets or hardware is needed. The SIM card sales network is already in-place and remains as is;
we do not disrupt any kind of contractual arrangement an MNO has with a SIM vendor. We just
add software to the MNO's data-center to link the SIM cards with special Facebook services.
Usual terms of payment clear within 60 days of statements issued. In case of problems and
significant delays, we can disable the service, since digital rights management tools are
integrated in our software (time-lease), thus we can force the operator into settling the payments
agreed.
Competitors
This is the second part of your 5-forces analysis relating to competition:
• Competitive products: substitutes from other industries, switching costs for customer,
pricing of substitutes, structure of competition & market type, complementarity with
other products
The only real piece of competition out there consists of iPhone and Android Hajj-tracker apps.
These work point-to-point, by letting one user project his current location on the smartphone of a
correspondent, using the same app. The culprit is that wireless Internet access is required, and
GPS activation which drains the smartphone battery in a couple of hours --causing possible
overheating problems, especially on the cheap smartphones.
18

Some apps are free, others are paid-for, usually at 0,99USD range.
Also, there is the option for smartphone users to 'check-in' their location status manually on
Facebook, but of course, this also requires access to a data-plan or a Wifi hot-spot. This option is
not available to feature phone users. This is were we lock-in. Our project aims to enhance the
Facebook location sharing experience, automate it, by adding a transparent real-time geo-
location tracker that works on the background, without using resources from the mobile device.
Activation of the Hajj-SIM tracker is easy to do – basically done either with a text message to a
specific number, or an MNO web service, establishing the link between a SIM and its owner's
Facebook profile.
The tracking is automatic, it does not use wireless bandwidth, it is real-time, and can run 24x7
for weeks on end, something not possible with smartphone apps. And of course it is a unique
proposition for feature phone users; as such it can be used to interact with the Facebook social
network, updating Facebook status, and creating a multi-cast link between the SIM and
Facebook.
• Existing competitors: the overall competitive structure of the industry, market type and
segmentation, the dominant players and their strategies, key competitive advantages of
existing players, sustainability of their competitive advantage via innovation, flexibility
via customization-product variety, discount policies, importance of advertising, on-line
versus off-line competition.
Competition is basically comprised of Indy mobile app developers – fighting for attention in the
plethora of similar apps inside the overcrowded space of AppStore or Google-Play. Moreover,
there are inherent technology limitations on the performance of their apps for long periods of
operation.
• Potential competitors: potential new entrants to the market (domestic and foreign),
potential evolution of market type, customer brand loyalty to existing products, barriers
to entry (patents, rights), capital requirements for entrants, government policies (tariffs,
licenses), industry profitability as incentive to entry, product distribution & other
operational barriers
In the mid-term future, competition is unlikely to come from smartphone app developers, in any
different form than what is already visible. No significant patent infringement problems are
identified by offering the FSHT service. Competition is also unlikely to come from other MNOs.
19

They usually prefer to receive turn-key solutions that get them fast revenues instead of investing
in R&D and managing development teams. We can simply work with them, sharing the
advertising revenues we generate, instead of competing against them.
The 3 Saudi MNO's are the key players in our intended market space. We can run the business
with any or eventually all of them. Service life is reasonably expected to be 3-4 years, with a
possible extension of another 2. Advancements in smartphone battery capacity could shrink our
market utility in the future as the technology evolves.
Corporate Operations - Strategy & Operations
State and explain your choice of competitive strategy:
Having defined your product/service and market type and other market characteristics (PEST, 5-
Forces) you are able to evaluate your Value Chain versus competitors so as to broadly define
your competitive strategy (low cost, differentiation, response, customization, mixed strategy).
Our competitive edge is simple. We can improve the location pinning of Facebook users,
transforming it from a manual process, into a real-time automated one, working in the
background at Mobile network's servers, regardless of mobile platform used; without the cost of
using mobile bandwidth. What we get back to monetize the service, is advertising space and a
marketing path to metrics on meta-data.
The next step is to use your strategy as a guide to achieve your Strategic Fit i.e. making
your corporate operations compatible to this strategy in the following subsections
Production - How are you going to produce your product?
The product is Linux based server software. R&D requires the co-operation and development
work of a small group of software engineers to execute.
• The production processes to be employed (method of production)
Standard software engineering practices will be used.
• Choice of outsourcing modules and costs
FHST is our core business, outsourcing will not be used. The small team necessary does not
justify the outsourcing overhead at this stage of the company's development. The founder will
serve as chief architect overseeing the software product development.
20

Initial Development cost is in the area of 200,000 USD.
• Capital/technology, Land and Labour to be used
Open source software dev tools – under Linux. They came free of charge. The
development can be executed with Greek software engineers.
• Cost structure characteristics (choice of scale, efficient scale, costs of alternative
production methods)
Quality Management
Standard software development techniques will be used: Unit testing, Stress testing,
Simulations, Software metrics and execution profiling, usability tests, CASE tools. Also
software design, coding, source code control, code reviews, software configuration
management, testing, release management, and product integration.
TQM techniques to be employed to safeguard quality:
Not applicable in our case
Corporate processes and TQM models to be employed for quality management
At which stages of the corporate operations is quality management to be applied and which tools
of quality management will be used?
Standard software quality assurance methodologies will be used. Server software will be
designed with incorporated fall-back measures to ensure stability and fault recovery.
How will quality management serve your strategy?
Quality management is integral in any Software engineering project.
Supply Chain & Logistics
N/A
Supply chain management:
21

N/A
• Supply chain strategy: many, few, vertical integration, virtual integration
Target Market
Hajj and Umrah pilgrims who are also Facebook users; either users of smartphones, feature-
phones or smartwatches.
Market Overview
In this section you are to segment the market. This means, slice the market into smaller groups
(segments) and describe each one of them.
Our target market consists of Facebook users among the Hajj and Umrah pilgrim population.
1. Demographic and geographic segmentation
22

We could not get precise metrics; thus we have to assume similarities to general population
trends. Hajj and Umrah involve adult people, with adequate financial means.
The number of Smartphone users in our collective target pool is around 8.5 million people (2.5
mil foreigners + 6 mil Saudis, since practically all Saudis use smartphones). Over one third of
smartphone users for Hajj and Umrah are expected to be Facebook users, leading the figures to
around 3 mil, possibly more.
The feature phone users among Hajj and Umrah participants are around 5 mil, out of which 30%
- or around 1,6 million people - are estimated to be Facebook users. Combined, our potential
user pool is around 4.5 million people; and growing by the year.
2. Benefit segmentation
Smartphone users without an active data-plan, as well as feature phone users, will be able, not
only to post real-time geo-tracking data, but also update their Facebook status; something which
was not possible without a data-plan or wifi access.
Security perception is also one major concern; since it allows the authorities to come to the
rescue quickly in case of emergency; the system can deliver geo-located emergency alerts, with a
good degree of accuracy on any type of mobile device, even with 10USD phones.
3. Psychographic and lifestyle segmentation
NUMBERS:
• Segment size
4.5 million users
• Buying frequency
Almost all foreign visitors use Hajj SIMs on a Hajj/Umrah trip – Saudi roaming charges are
high and buying a local SIM is the way to avoid them. The tracking service can be offered as a
freebie, based on advertising income derived from Facebook. Local prepaid SIM cards can also
use the service.
• Average income
23

Unknown; but the target group comes with proven adequate financial means to fund the
pilgrimage, otherwise visas would not be issued.
Market Trends
Examine the trends in order to take them into account when you are choosing your target
market/s. Refer to trends that are specific and affect directly your business. Quantify the effect.
That is, what will the impact be on demand (give specific numbers).
The number of Hajj/Umrah pilgrims is steadily on the rise and so is the usage of
Facebook worldwide. The trend is very likely to continue for the next 3-4 years.
Fluctuations in growth exist around the globe, but have marginal effect on overall Mecca
pilgrimage participation; usually a slow market in one area of the world is accompanied
by a strong growth in another, thus all available Hajj visas eventually get their
recipient. In fact there are a lot more people wishing to take the trip, than available
spots to cater for them; the trend is likely to remain steady for the next few years.
Market Needs
Try to relate this section to the Market Overview section. See what needs exist out there and
which your company or business idea can satisfy. Decide which segment/s you are going to
address and define them on the basis of the previous section. This will be your target market.
Justification must be sales related (expressed with specific number).
Smartphone apps that perform Hajj tracking are frequently used, but have their
limitations mainly due to GPS related intensive battery drain, and device overheating;
thus can work just for a few hours before the phone runs out of energy. A few million
Hajj tracker apps downloads are executed each year. These apps come usually for free
from AppStore or Google play. We can follow a same path – supported by ad revenue
from Facebook , and simply add the functionality that is missing in apps; namely no
wireless connectivity use, and perpetual range, covering the whole hajj trip duration.
Market Growth
You do not necessarily need to address a growing market. It is, however, a substantial advantage
when you do so. Examine your target market choice in terms of growth so as to incorporate in
your planning not only current demand but future demand as well. Quantify your expectations.
The pilgrimage market is growing by a healthy pace of around 5% a year. Facebook
penetration growth follows a similar rate.
24

25

Key Customers
Try to prioritize your target market segment/s or key customers for industrial products in terms
of importance to the success of your revenue and profit objectives. Key customers may be
determined in terms of their importance in things like opinion leadership, volume of expected
purchasing, expected loyalty (i.e. high switching costs), ease of access and others. This
prioritizing will help you develop the marketing strategy section so as to maximize effectiveness
by primarily focusing on the key customers. Quantify the effect of key customers in terms of
sales. Justify why you consider them key customers.
First Customer(s)
Who do you have in mind as first customer? (size, description)
The service has to be offered under a B2B agreement with one of the three main mobile
operators in Saudi Arabia. Zain, Mobily or STC. STC sells 50% of Hajj SIMs and the rest is
shared between Zain and Mobily. The first MNO most likely to adopt the service could be the
smallest and most agile operator of the three, Zain, which has an excellent reputation of
embracing tech innovation.
Either-way, a mobile operator has the means to organize a promotion and communicate the
service to the user base. Usual tools deployed are social media, SMS campaigns, mobile product
outlets at points of entry in the country etc. We only have to deal with setting up the tech
infrastructure to make the platform work efficiently inside the MNO's data-center. The rest is the
MNO's responsibility.
Strategy and Implementation - Marketing Plan
Positioning
The service is positioned as a mobile VAS. It runs in the MNO's data-center and does not
need any type of download or installation on a mobile device. It can be either marketed
for a flat price of around 1USD or be a freebie supported by advertising revenue – based
on the MNO's preference.
Show on an axis the positioning of your mix in terms of competition and 2 more mix
characteristics (e.g. price, product line, size, etc.)
Product
• Objectives
26

To help Hajj/umrah pilgrims stay connected with family and friends over Facebook with
any mobile device, without using data-plan/Wifi/GPS;
• product characteristics
The service will work with smartphones and feature-phones and Smartwatches without draining
battery; without using GPS,Wifi,GPS; granting Facebook access even to feature phones; helping
to alert the authorities, with geo-location info in cases of emergency.
• product benefits
The product can come as a freebie service, or with a low flat price; it can work will all mobile
platforms and operating systems for weeks.
• product line
Mobile VAS
• warranty
Standard support for the duration of use.
• cost factors and cost Pricing
The MNO has the choice to market the service under a flat price, around 1USD, debited from the
prepaid balance of the SIM it has already sold to users. The user credit has to be spent somehow
as it can not be redeemed following the Hajj/Umrah trip. Far easier to spend something you have
already paid for, than taking new money out of your pocket.
Alternatively, the business model can be partially or fully funded by ad revenue from Facebook;
for every million users recruited, 150+ mil of users (each adopter's average social net-count is
around 300 people) will see the tracking app embedded with ads. Getting 2 mil users to adopt the
service, grants access to 300+ mil sets of eyes. Thus a slice of ad revenue can support the
service, and give the MNO big chunks of marketing metrics to monetize in additional
promotions. The Facebook friend network within Hajj extends globally.
• Objectives
Hajj-SIM tracking will be the first step; we are exploring the concept of launching background
tracking services to power social apps that need geo-information for long periods of time, much
27

longer than a smartphone's battery with activated GPS can support; and monetize Facebook
Graph API meta-data extracted from our platform, to add value to MNO marketing campaigns.
• price and price range for product lines
If we move for a flat price for the end-user, it is estimated to be around 1USD. If the MNO
agrees on an ad-backed service provision, the service can be free for mobile users.
• ways of payment
If a payment model is selected, it will involve sending a service activation SMS to a specific
number. Accordingly the user's prepaid balance would be reduced by 1USD. In the freebie ad-
based service, we could be getting our payments directly from Facebook.
• discount policy and discount promotional strategy
Not an option at sales-point; we will certainly give the MNO volume discounts, per million of
recruited users. Hajj prices are inflated due to high demand.
• cost
The cost of supporting and running the service is relatively low; around 200,000 – 250,000 USD
per million users (all costs inclusive); The figure becomes lower as the user count grows due to
economies of scale.
Promotion
• Objectives
The users have to be made aware of the service. Type of communication path used
-SMS campaigns on the first connection to the MNO's network of a new Hajj-SIM
-Retail point promotion-ware; as executed in point of sales (airports, outlets etc)
-MNO web site
- Social media
28

Facebook virality is self-fueled with a FB Hajj SIM tracker. The next line-up of Hajj/Umrah
pilgrims is very likely to belong to the social net of current ones; thus the awareness of the
service is instantaneous and can be capitalized very fast. Umrah goes on throughout the year!
• target market/s for communication
- This is a service that targets Facebook users; thus social media can be a prime communication
tool. The platform self propagates and fuels virality in Facebook, landing-in our next line of
users.
Distribution
• Objectives
The distribution of the FHST system does not involve shipping goods or physically distributing
anything to consumers. Nonetheless it is bound to the distribution of SIMs, which is already
taken care of by Mobile operators quite efficiently, in the associated retail outlets they control, in
airports, department stores etc. No disruption in the distribution of SIMs is necessitated, or any
kind of alternation of existing contractual arrangements between SIM vendors, SIM
manufacturers and MNO.
• points of sale (geographical, content, image)
All Saudi MNOs operate extensive point of sales networks, to cover the needs of local
population and pilgrims. We will use existing infrastructure.
• time availability
The service is server backed and works without human intervention 24x7
• cost
The promotion cost is covered by the MNO.
Milestones
The prime time to launch the service is right before Hajj. Marketing the service is the
responsibility of the MNO.
29

Milestone Due Date Details
Marketing Plan
Deadline
May 16 2014 Draft of Marketing Plan
Financial Plan
Sales Forecast
All prices are in USD. In the table bellow we assume the revenue that Xyrkadia receives from
each activation of the Hajj SIM tracker Service. Revenues can be either directly related to license
fees from the service, or ad revenues obtained from the operation of the service. There is
additional income to be generated from Facebook Social Graph meta-data processing.
Personnel Plan
We will be using a small team of engineers. The team will gradually grow.
Personnel Table
(+ Founder serving as tech leader)
About the Personnel Plan
30
Personnel Year 1 Year 2 Year 3
Count 3 7 9
Average Salary 22.000,00 25.000,00 27.000,00
total cost 66.000,00 175.000,00 243.000,00
Sales Year 1 Year 2 Year 3 sums
Unit Sales 1.008.000,00 2.000.000,00 3.000.000,00 6.008.000,00
Price Per Unit 0,50 0,45 0,40
Total Sales 504.000,00 900.000,00 1.200.000,00 2.604.000,00
Direct Cost Per Unit 0,15 0,16 0,15
Total Direct Cost 147.700,00 312.000,00 443.600,00 903.300,00
Gross Margin 356.300,00 588.000,00 756.400,00 1.700.700,00
Gross Margin % 70,69 65,33 63,03

Budget
Budget Table
About the Budget
Startup costs
They should cover the total expenses listed, for year 1 with a safety margin of 50%. Under the
current scenario, our startup cost is
31
Startup cost 221.550,00
Expenses Year 1 Year 2 Year 3 sums
Salaries 66.000,00 175.000,00 243.000,00 484.000,00
Employee Related Expenses 13.200,00 35.000,00 48.600,00 96.800,00
Marketing & Promotion 15.000,00 20.000,00 30.000,00 65.000,00
Rent 12.000,00 15.000,00 20.000,00 47.000,00
Utilities 4.500,00 7.000,00 12.000,00 23.500,00
Office Supplies 5.000,00 7.000,00 10.000,00 22.000,00
Insurance 7.000,00 13.000,00 20.000,00 40.000,00
Misc (legal, consulting etc) 25.000,00 40.000,00 60.000,00 125.000,00
Total Expenses 147.700,00 312.000,00 443.600,00 903.300,00

Starting up
Monthly expenses Y1
32
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only
with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan
author.
Revenue Year 1 Year 2 Year 3 sums
Direct Cost 147.700,00 312.000,00 443.600,00 903.300,00
Gross Margin 356.300,00 588.000,00 756.400,00 1.700.700,00
Gross Margin % 70,69 65,33 63,03
Expenses (misc) 25.000,00 40.000,00 60.000,00 125.000,00
Salaries 66.000,00 175.000,00 243.000,00 484.000,00
Employee Related Expenses 13.200,00 35.000,00 48.600,00 96.800,00
Marketing & Promotion 15.000,00 20.000,00 30.000,00 65.000,00
Rent 12.000,00 15.000,00 20.000,00 47.000,00
Utilities 4.500,00 7.000,00 12.000,00 23.500,00
Office Supplies 5.000,00 7.000,00 10.000,00 22.000,00
Insurance 7.000,00 13.000,00 20.000,00 40.000,00
Total Expenses 147.700,00 312.000,00 443.600,00 903.300,00
Operating Income 188.350,00 255.749,00 292.548,00 736.647,00
Taxes 117.579,00 194.040,00 249.612,00 561.231,00
Net Profit 285.040,00 470.400,00 605.120,00 1.360.560,00
Net Profit / Sales 0,57 0,52 0,50
Avg tax percentage 33,00 33,00 33,00
Annual asset depreciation 20.250,00 20.251,00 20.252,00

Starting up
Monthly expenses Y1
* A 33% tax rate is included in the calculation, based on Greek CFC tax mandates. Based on careful tax-engineering, and
appropriate setup, the taxes paid can be lower.
Sales Forecast Table (With Monthly Detail)
(Note that for the first few months the service will be under integration development and testing; thus sales will commence from
month No 5. There is a sales spike in the scenario, which coincides with the Hajj month). The initial investment in the company is
adequate to fund its operation for at least 1.5 years. The company will not distribute dividends for the first 3 years of operation.
33
author.
Unit Sales Y1 Y2 Y3 sums
Price Per Unit 0,50 0,45 0,40
Total Sales 504.000,00 900.000,00 1.200.000,00 2.604.000,00
Direct Cost Per Unit 0,15 0,16 0,15
Total Direct Cost 147.700,00 312.000,00 443.600,00 903.300,00
Gross Margin 356.300,00 588.000,00 756.400,00 1.700.700,00
Gross Margin % 70,69 65,33 63,03
Year 1 Y1M1 Y1M2 Y1M3 Y1M4 Y1M5 Y1M6 Y1M7 Y1M8 Y1M9 Y1M10 Y1M11 Y1M12 sums
Unit Sales 0,00 0,00 0,00 0,00 0,00 105.000,00 150.000,00 212.000,00 138.000,00 148.000,00 123.000,00 132.000,00 1.008.000,00
Price Per Unit 0,50 0,50 0,50 0,50 0,50 0,50 0,50 0,50 0,50 0,50 0,50 0,50
Total Sales 0,00 0,00 0,00 0,00 0,00 52.500,00 75.000,00 106.000,00 69.000,00 74.000,00 61.500,00 66.000,00 504.000,00
Direct Cost Per Unit 0,15 0,15 0,15 0,15 0,15 0,15 0,15 0,15 0,15 0,15 0,15 0,15
Total Direct Cost 0,00 0,00 0,00 0,00 0,00 15.385,42 21.979,17 31.063,89 20.220,83 21.686,11 18.022,92 19.341,67 147.700,00
Gross Margin 0,00 0,00 0,00 0,00 0,00 37.114,58 53.020,83 74.936,11 48.779,17 52.313,89 43.477,08 46.658,33 356.300,00
Gross Margin % 0,00 0,00 0,00 0,00 0,00 70,69 70,69 70,69 70,69 70,69 70,69 70,69

Starting up
Monthly expenses Y1
Personnel Plan
Personnel Table (With Monthly Detail)
(+ founder as Technical Architect)
(+ founder as Technical Architect)
Budget
Budget Table (With Monthly Detail)
34
author.
Employee list Y1 Y2 Y3
New Employee 3 4 2
Total 3 7 9
Year 1 Y1M1 Y1M2 Y1M3 Y1M4 Y1M5 Y1M6 Y1M7 Y1M8 Y1M9 Y1M10 Y1M11 Y1M12
NewEmployee 3 0 0 0 0 0 0 0 0 0 0 0
Total 3 3 3 3 3 3 3 3 3 3 3 3

Starting up
Monthly expenses Y1
(Revenue Flow vs Expenses for Y1)
35
author.
Expenses (misc) 12.500,00 ,00 ,00 ,00 ,00 12.500,00 ,00 ,00 ,00 ,00 ,00 ,00 25.000,00
Salary 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 66.000,00
Employee Related Expenses 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 13.200,00
Marketing & Promotion ,00 ,00 ,00 ,00 9.000,00 ,00 ,00 ,00 ,00 6.000,00 ,00 ,00 15.000,00
Rent 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 12.000,00
Utilities 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 4.500,00
Office Supplies 1.000,00 ,00 1.000,00 ,00 1.000,00 ,00 1.000,00 ,00 1.000,00 ,00 ,00 ,00 5.000,00
Insurance 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 7.000,00
Total Expenses 22.058,33 8.558,33 9.558,33 8.558,33 18.558,33 21.058,33 9.558,33 8.558,33 9.558,33 14.558,33 8.558,33 8.558,33 147.700,00
Revenue ,00 ,00 ,00 ,00 ,00 52.500,00 75.000,00 106.000,00 69.000,00 74.000,00 61.500,00 66.000,00 504.000,00
Direct Cost ,00 ,00 ,00 ,00 ,00 15.385,42 21.979,17 31.063,89 20.220,83 21.686,11 18.022,92 19.341,67 147.700,00
Gross Margin ,00 ,00 ,00 ,00 ,00 37.114,58 53.020,83 74.936,11 48.779,17 52.313,89 43.477,08 46.658,33 356.300,00
Gross Margin % ,00 ,00 ,00 ,00 ,00 70,69 70,69 70,69 70,69 70,69 70,69 70,69
Expenses
Salary 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 5.500,00 66.000,00
Employee Related Expenses 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 1.100,00 13.200,00
Marketing & Promotion ,00 ,00 ,00 ,00 9.000,00 ,00 ,00 ,00 ,00 6.000,00 ,00 ,00 15.000,00
Rent 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 12.000,00
Utilities 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 375,00 4.500,00
Office Supplies 1.000,00 ,00 1.000,00 ,00 1.000,00 ,00 1.000,00 ,00 1.000,00 ,00 ,00 ,00 5.000,00
Insurance 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 583,33 7.000,00
Total Expenses 9.558,33 8.558,33 9.558,33 8.558,33 18.558,33 8.558,33 9.558,33 8.558,33 9.558,33 14.558,33 8.558,33 8.558,33 122.700,00
Monthly Cash balance -9.558,33 -8.558,33 -9.558,33 -8.558,33 -18.558,33 43.941,67 65.441,67 97.441,67 59.441,67 59.441,67 52.941,67 57.441,67 381.300,00

Starting up
Monthly expenses Y1
Profit and Loss Statement
The revenue of the company can be augmented by providing to the MNO marketing metrics extracted from user network
Facebook Graph API meta-data. Consulting fees can improve the Company's margins by around 40-50%. This revenue source
is an option, and is to follow the successful launch of the platform; dependent on current Facebook policies regarding Graph
API data access; thus we chose not to include this revenue source in our forecasts.
36
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