BUSINESS PLAN

BUSINESS NAME: DEOMAR SECURITY SYSTEMS LTD

BUSINESS TYPE: CCTV, Access Control, Alarm and Intrusion Detection Systems Installation
and Management.
EXECUTIVE SUMMARY BUSINESS DESCRIPTION

The name of the business is Deomar Security Systems Ltd, a startup offering services in
Kakamega and its environs. It falls under service industry and its main objective is to sell and
offer installation and maintenance of cutting edge digital security surveillance, alarm and access
control systems to corporate installations and private residential homes within our target market.
The business will also be actively involved in offering intensive consulting services for large
corporations with sophisticated security system needs.

MARKETING PLAN

The firm’s primary target market will be corporate security installations, with a special focus
market segment consisting of colleges, schools, religious organizations, commercial enterprises
and high end residential premises within our geographic market. By focusing on our strengths,
our key customers and the values that they need, Deomar Security Systems Ltd aims to increase
its sales to more than Kshs 100,000,000.00 by the end of year 3. The projected market share is
30% at the end of one year in operation. The company will offer an affordable pricing model that
meets the standard pricing in the industry, but will also adopt different marketing strategies to be
able to cope with the competition. One of these will be sale of trusted brands of security systems
that will stand the test of time while offering highest qualified installation services and training
to our clients, in a bid to encourage referrals and word of mouth advertising technique.

ORGANIZATIONAL STRUCTURE

The firm will adopt a flat organizational structure to ensure effective communication and faster
operations. It will have the directors at the strategic level of management, but will employ
managers and technical human resource at operational level. The business will adopt an
appropriate policy on employment of staff; recruitment, remuneration, appraisal, motivation,
training and development.

PRODUCTION/OPERATION PLAN

Deomar Security Systems will form partnerships with manufacturers and dealers of the security
systems both in and outside the country to import or purchase locally the required items and
accessories in bulk at subsidized rates. The firm will invoke the assistance of the mandated
Government agencies in seeking tax waivers and rebates on imported security systems
earmarked for public learning institutions and religious facilities.

FINANCIAL PLAN

Deomar Security Systems Ltd will start with an initial capital of Kenya Shillings Three Million.
It will aim at maximizing its profits so as to break even in the shortest period possible, and
estimates profits of approximately Kshs 2 million by year 3 with a net profit margin of 25%. This
business plan contains details of working capital requirements, projected cash flow, income
statements, balance sheets and efficiency ratios. The enterprise will also aim to operate within its
projected budget so that it can effectively achieve its objectives without any deficits.

BUSINESS INFORMATION

BACKGROUND INFORMATION

In Kenya, like in many other parts of the developing world, cases of insecurity have continued to
rise largely due to high levels of poverty, unemployment, high inflation rates, political
intolerance, emerging threats of religious extremism, terrorism and generally declining moral
and ethical values specifically among the young generation. The challenge of insecurity
especially in Kakamega and its surrounding metropolis has resulted in several corporate entities,
Government institutions and individual residents searching for viable solutions, with most of
them incurring huge expenses on private security guards, who have their shortcomings too when
it comes to the complexity of physical security management.

Businesses, non-profit organizations and individuals have also grappled with the challenge of
rising insurance premiums, forcing them to explore other cost-effective risk management options
to enhance their security and loss prevention programs. Digital surveillance, intrusion detection
technology, access control and alarm systems therefore offer this cheaper and efficient risk
management option to corporates, small businesses and private residences. It is with this in mind
that the founders of this business came up with the idea of starting a company specializing in
sales and installation of high tech security surveillance systems, fire alarm systems, perimeter
wall razor wire reinforcements with intrusion detection technology, biometric access control
systems and other physical security management systems, whose main customers would be
corporate installations, religious and learning institutions, business premises and private
residential homes.

BUSINESS DESCRIPTION

Deomar Security Systems Ltd is a startup offering services in Kakamega and its environs. It falls
under service industry and its main objective is to sell and offer installation and maintenance of
cutting edge digital security surveillance, alarm and access control systems to corporate
installations and private residential homes within our target market.

The company will also be actively involved in offering intensive consulting services for large
corporations and Government agencies that have sophisticated security system needs.

ASSUMPTIONS

 It is assumed that Deomar Security Systems Ltd will attract a lot of business from mainly the
medium sized business premises, religious installations, learning institutions and upcoming
residential developments.
 It is assumed that the company will grow and within 2 years’ time it will have bought its own
premises.

 Another assumption is that the firm will outshine the other small and medium enterprises
dealing in security installations because of the expertise of the founder in security matters, and
because it will employ highly qualified and motivated technicians.

 It is assumed that no new competition will arise before Deomar Security Systems Ltd hits the
market and builds its niche.

PRIMARY OBJECTIVES

DEOMAR SECURITY SYSTEMS has been founded to take advantage of the big market within
Kakamega and its environs arising from the aforementioned cases of insecurity and therefore a
glaring need by corporate organizations, learning institutions, religious facilities and individuals
to install high tech security surveillance, alarm and access control systems with a view to
minimizing the risk and securing their investments, employees and visitors.

The firm will also seek to take advantage of the significant weakness and inadequacies in the
current local and regional businesses offering security systems installation services in terms of
professionalism, dynamism, quality of service and customer satisfaction.

Other objectives include:

 To provide exceptional services that will make a lasting impression.

 To maintain a consistent service and product quality.

 To properly manage internal finances and cash flow to enable upward capital growth and
profit maximization.

 To create and maintain good public relations with the local society by enhancing corporate
social responsibility.

 To promote community policing and advocate for good morals among the youth through
training and advocacy.

MISSION STATEMENT

‘To offer first class, reliable and affordable service in the sale and installation of high quality
business and home security systems’

OUR VISION
 To create a strong reputation as the most trusted brand in the physical and personnel security
management industry both within Kenya and the East African region through commitment to
excellence in the provision of high quality and tamper-proof surveillance, alarm and biometric
access control systems, and providing expert consultation and training in physical and people
security management.

OWNERSHIP STRUCTURE

The business will be a private limited company. The shareholders are Dennis Ayodi -
Chairman/CEO (50%), Cate Karani (30%), Mitch Kimathi (10%) and Leon Maingi (10%). The
four will act as the directors of the company. All the decisions of the enterprise will be made by
the board of directors comprising of the aforementioned members, but the firm will employ
competent managers and technical staff at operational level in tandem with its business strategy.

The advantage of starting the business as a private company is that it has limited liability and
therefore in case of any loss or debts incurred by the business the property of the owners cannot
be attached. It is also the owners’ intent to start the business as a private company because it
acquires a legal personality once incorporated and this guarantees its perpetual existence. In this
right the business will still exist and thrive even in the unfortunate demise or departure of one or
all of the founding owners unlike in partnership or sole proprietorship where the business has to
be dissolved in such circumstances.

THE MARKET

The firm’s primary target market will be corporate installations, with a special focus market
segment of colleges, high schools, churches, small and medium enterprise facilities e.g. factories,
industrial premises, corporate offices and high end private residences.

Deomar Security Systems Ltd will seek to offer consultancy and training to large corporates,
Government and non-governmental organizations with sophisticated security system needs.

The company will also seek collaboration with security firms in offering consultancy and
training their security officers and guards on the operation of surveillance, alarm and access
control systems.

As part of our community engagement, we will seek partnerships with county Government
mechanisms, local authorities and community leadership with a view to educating the masses
especially school going children, college students and women on physical security risk
management and personal security safeguards.

THE INDUSTRY
The business falls under service industry. It shall be involved in importing, selling and installing
the said security gadgets. Within the product service mix we can categorize it as offering service
with supporting products.

Type

The business will be offering security services to its clients in form of sale and installation of
security surveillance systems (CCTV), Perimeter wall razor wire reinforcement, Alarm systems
and biometric Access Control systems.

Technological trends and prospects

The business will make use of the latest trends in technology in the area of advertising, ordering
and payment for the services. The business will deal in cutting edge digital surveillance cameras
and the latest screen technology for its CCTV systems, which produces superior quality and clear
images. The business will also use computer applications for data storage, records management
and financial arithmetic to ascertain profit or loss incurred. This will help to improve efficiency
and accuracy in the business. Cloud computing will be used to manage clientele database for
ease of follow up.

Capital Structure

The business capital will come in form of shares by the shareholders. The total starting capital is
Kenya Shillings Three Million (Kshs 3,000,000.00). Dennis Ayodi, the majority shareholder,
will contribute 50% equivalent to One Million Five Hundred Thousand Kenya Shillings (Kshs
1,500,000.00). Cate Karani will contribute 30% share equivalent to Nine Hundred Thousand
Kenya Shillings (Kshs 900,000.00), Mitch Kimathi Kshs 300,000 (10%) and Leon Maingi Kshs
300,000.00 (10%).

Seasonal problem and hitches

The business is likely to experience the following seasonal hitches;

 Heightened political climate – This may cause inflation or deflation in the economy. This may
make prices of products high and that may affect the business negatively.

 Entry hitches – The business may experience low business in the starting days due to lack of
experience and reference, since a big number of customers especially the corporates would like
to do business with a renowned brand.

 Fluctuations in internet and electricity supply in the target market – Some of our target clients
especially schools and colleges may not have internet connection in their premises, which would
derail the actualization of our technology-based security systems and therefore deny us business.

GROWTH AND EXPANSION FORECAST

Deomar Security Systems Ltd will start business at rented premises at Kakamega Ambwere
Plaza and as the business flourishes more space will be sourced, particularly on the upper floors
of the building. The company will aim at acquiring its own premises within Kakamega where it
will have its offices, warehouse and possibly a training school for CCTV technicians. This will
enable the business take care of the needs of many more clients and also cut cost in terms of rent,
while also ensuring comfort and competence of its employees.

COMPETITIVE TRENDS

The business expects to face competition from other established companies dealing in the same
products and services. The company will apply the strategies highlighted below to beat the
competitors;

The firm will carry out a SWOT analysis which will enable the management know its strengths
and maintain them, weaknesses so that it can work on reducing them and also to enable them
explore the opportunities available.

 The company will offer exclusive service and keep up with the current technological trends in
order to conquer the market.

 The firm will strive to maintain a good relationship with its customers by employing people
with good customer care skills and public relations too.

 The firm will adopt a flexible and employee friendly policy which will attract and retain
highly qualified and talented employees, whom in return will do a good job and maintain a high
level of credibility and high rating by our customers.

MARKET SHARE

Deomar Security Systems Ltd expects to attract a large market as compared to its competitors.
This is because it’s the only of its kind that seeks to attract small and medium enterprises,
schools and middle class residential premises. Its market share will be 30% of the target market.
The other businesses have the remaining 70% which the experienced firms will have 50%
between them and the competing small startups and foreign companies 20%.

ENTRY AND GROWTH STRATEGIES

Deomar Security Systems Ltd is going to offer free installation to the first 20 clients that agree to
procure its products. The business will also have posters displayed at strategic points within the
city. The management will also write up articles about the business in local daily newspapers and
security publications. This will enable the firm to be known by many business operators and
school managements who are the target customers. The business will be very active in the social
media platform e.g. Facebook, tweeter, Instagram and Snapchat. The Founder/CEO will also try
and find opportunities to appear on TV shows discussing and analyzing security matters, offer
free consultancy and advocacy for security risk mitigation and management. The business will
invest heavily in research and development of new technologies as time goes so as to remain
ahead of the pack as far as physical security management is concerned.

MARKETING PLAN

Customer Analysis

The customers of Deomar Security Systems Ltd will fall under the following demographic
categories;

(a) The big and medium sized corporate entities

These are the manufacturing industries and factories with sales of up to Kshs
1,000,000.00 per day. The managements of these businesses require absolute security to
their business premises and offices. Deomar Security Systems Ltd will offer to install for
these corporates access control systems to ease the management of employees and
visitors entering the premises, and also maintaining a proper and verifiable record on
employees work attendance. The sophisticated technology that Deomar Security Systems
Ltd offers is such that the top management of such corporates can access the above
information in real time on the screens of their mobile phones wherever they are.
(b) The Colleges/Schools Deomar
Security Systems Ltd will offer cutting edge security management solutions to schools
and colleges by offering razor wire reinforcements, security cameras and alarm systems
all-round the school perimeter fence. The firm will go a step ahead of competitors in
offering high tech access control systems which will record entry and exit details of
visitors, staff and students, such that whenever a staff member walks in or out, details of
such a staff member automatically logged in a special database accessed only by the
school management. This will deter employees from absconding duty and reporting late
for work. The student entry/exit management system will ensure that once a student
enters or leaves the school gate, details of such a student are logged in a special database
in the Principal’s office, and also the system sends a text to a pre-set phone number of the
parent/guardian.
(c) Small and medium businesses
Majority of this group are shops in the Central Business District and within the town
estates which are primary targets of gun totting robbers and shoplifters. These businesses
will require the services of Deomar Security Systems Ltd in the installation of security
cameras and alarm systems, including panic buttons in case of invasion by the said
criminals. Once the panic button is pressed, the system sends a distress call to pre-set
numbers including the nearest police station and the proprietor or owner of the business,
which enables prompt action to arrest the culprits.
(d) Residential Premises
 These are people of all walks life, living in residential areas within Kakamega and its
environs. The insecurity challenges in some of these estates necessitate the provision of
reinforced perimeter walls including electric fences, CCTV surveillance cameras and
alarm systems. Deomar Security Systems Ltd will offer sophisticated alarm systems that
send text and live images to the owner of the premises on their smart phones wherever
they are.

The Market Share

The market share of Deomar Security Systems Ltd is estimated to be 30% of the potential
customer population. Approximately Kakamega has a population of 30,000 businesses/people
who fall under the category of Deomar Security Systems Ltd customers. Therefore the firm will
serve 15,000 customers;

Pricing strategy

One of the methods that Deomar Security Systems Ltd will use to price its services is skimming
strategy. This involves fixing prices slightly higher than those of the competitors. This happens
when a business has a competitive advantage over its competitors. Deomar Security Systems Ltd
will be using new technology and will be well furnished with modern systems as compared to its
competitor Eurotech Security Company. The location of its office premises is also central hence
will attract more customers. Therefore skim price will be appropriate. Another strategy to be
used is the geographical pricing. Different locations cost differently in terms of rent, production
costs and the customers are also of different classes. For example, for customers in Amalemba
area which is a middle income earners region, prices will be fixed to suit this class of people. In
the same way customers from the upmarket estates of Kifinco, Police –line and Fitina will attract
a price variation in tandem with their locus and standing in the market segmentation.

A third pricing method is the competitor based pricing. The proprietors will compare the
competitor’s prices. These include even the other similar businesses in the country and therefore
know the range of prices. This will assist the company in coming up with appropriate pricing for
its services. The charges for CCTV, Access Control System, Alarm System and electric fence
will be depending on the package and the size of the area to be covered. However the charges for
consultation will be fixed in line with current market trends.

Advertising and promotion strategy

Advertising is the art of making people aware of existence of the business, what it offers and
persuading them to buy. The following methods will be used to advertise and promote the
services offered by Deomar Security Systems Ltd;

Newspapers and Magazines

Deomar Security Systems Ltd will have an article about the business published in the local daily
newspapers. This will enable the business to be known by many potential customers especially
business executives who read the newspapers. The business will also have advertisements in the
daily newspapers and security magazines occasionally.

TV/Radio Advertisements

The company will invest in captive TV and radio adverts that will capture the imagination of the
target customers. The founder will also take advantage of his expertise in security matters to
secure interviews on TV and radio talk shows where he will take advantage to highlight the
services offered by the company.

Sign boards

Signboards will be put along Muliro Garden Avenue and Golf Hotel road leading to the business
premises. The sign boards will bear the name of the business, the services offered, the location
and contacts of the business.

Brochures

Brochures detailing the firm’s products and operation will be distributed by the marketing team
along strategic main highways, drive ways and other positions that the potential customers can
be found. These brochures will also bear the contacts of the business; and the charges.

Calendars

The business will be publishing calendars every year with pictures of the products and
showcasing previous successful installations undertaken by the company. This will create
awareness to a wider market.

Car Stickers

Our marketers will distribute car stickers to private and public vehicles within Nairobi detailing
the company’s products and contact information.

Internet

Deomar Security Systems Ltd will develop a website where its customers can search for the
latest security systems and will also have a provision for online booking of its products and
services. This will be a good advertising tool because the company will include pictures of its
products, list the services offered and also the address and location of the business premises. It
will also give a detailed explanation of the working of each security system and charges per
package. The company will also have presence on social media platforms where it will engage
potential customers and showcase its products and services.
Door to Door campaigns

The company will involve its marketing team in door to door marketing campaigns to various
target customers within the city. This will involve explaining to the potential customers how the
products work and the importance of having the services offered by the company.