Executive Summary
Business Overview
Cellphonecare is the Cellcall brand name associated with repair and servicing of cellular handsets. Its objective is to put customers back on air as quickly as possible, regardless of infrastructure, in order to reduce churn and create Cellcall customer loyalty.
Cellphonecare offers in and out- of warranty repairs on all brands of cellular handsets that are distributed by the Cellcall Network. The Cellphonecare cellular handset repair service is an additional service to the already vast offering to the Cellcall customer.
A complete turnkey solution financed by Cellcall is provided, comprising a shop of approximately 140 square meters including fixtures and fittings. It does not however include office furniture, a photocopier a fax machine, telephone and the like.
The Product and Service
A Cellphonecare is normally combined with a Cellcall outlet for economic sustainability and a minimum number of booked–in repairs as well as actual repairs are required in order to be profitable.
A Cellphonecare is normally combined with a Cellcall outlet for economic sustainability and a minimum number of booked – in repairs as well as actual repairs are required in order to be profitable. The number of repaired units is calculated against the known failure rate and the number of subscribers in the area.
Describe the location, premises and — where applicable — production facilities
At present Cellphonecare stores are located nationally, across the country. These stores are opened in an area on the basis of potential repairs calculated on the number of active subscribers on the network in that particular area. The number of repaired units is calculated against the known failure rate and the number of subscribers in the area.
This Cellphonecare franchise outlet is aimed to be opened in the Hazelwood suburb of Pretoria. The final location will only be known once approval for a Cellphonecare franchise outlet is granted. Cellcall is expected to dictate/indicate the location according to their market research and calculations as described above.
Site Selection
Cellcall Service Provider Co. identifies the most suitable location and negotiates the terms and conditions of the Lease. The lease is secured by Cellcall.
Development of site
The Franchiser provides a complete turnkey operation, from design and development to the fixtures and fittings of the site.
Opening of the site
BDP Co.'s operations team will provide you with full assistance in the opening of your Cellphonecare outlet and will provide ongoing support and assistance thereafter.
Company Management
Catherine Green
Catherine Green matriculated with a N3 Business Matric from Damelin with subjects including small business management & entrepreneurship. Catherine also have short course qualifications in Drama, Graphic design, Art & film appreciation, Art management & administration. Her work experience includes (abbreviated):
GSRC International - P.A. to Managing Director, my duties is to handle all Public Relations and Human Resources. Organising all events for staff, clients, etc. Handling clients and suppliers, helping with marketing.
Plan International (UK) - Trainee Manager,
Alison Ntondo
Miss Alison Ntondo has attained the following qualifications:
Diploma in Public Relations, UNISA, 2005
Diploma in Media Studies, Boston City Campus, 2002
Short courses included:
Basic Business Communication (2001), PRISA
Financial Services: Wealth management (2006), Damelin School of Banking
It's My Tender (2005), Sunday Times and Cell C
Her work experience includes (Abbreviated):
First National Bank, Client Service Consultant and Corporate Consultancy with her main responsibility providing financial advice, promoting and selling a range of financial solutions across a broad spectrum of product offerings to best meet and grow the financial service needs of high value customers
Department of Public Service and Administration, Internship and acting as Coordinator of Employee Wellness with main responsibility including responsible for all marketing strategies on Employee Wellness Program, coordinating awareness campaigns and creating awareness on employee wellness campaign
Franchise Management
Franchise Structure
The current structure has been put in place in such a way as to allow the Cellphonecare brand to enter a mature shopping centre with a Franchisee who has a minor investment in the shop.
Currently the Franchisee contributes a franchisee fee (Royalty) of 2% on gross turnover (excluding VAT). Gross turnover comprises all sales taken through the point of sale system.
The key factors within the Cellphonecare are:
the cell phone user (Cellcall customer)
the service provided by the Cellphonecare Franchisee
the support provided by Cellcall Service Provider Co.(Pty) Ltd, the Franchisor
additional support received from Cellcall (Pty) Ltd, the Network
As the cellular industry changes, Cellcall ensure that the Cellphonecare shops continue to offer the very latest in mobile communication technology.
Cellcall has become a trusted brand name ensuring a national Franchise operation, which adheres to a supervised code of conduct fuelled by an aggressive ongoing advertising and marketing campaign.
Operating Management Structure
A private company to act as a vehicle for the business operations will be formed between Me Catherine Green and Me Alison Ntondo in a 50% / 50% shareholding. The management of the outlet will be full time managed by the above partners, overseeing and directing daily operations.
Franchise Operational Staffing
The Franchisor provides a quality service through well trained people who are at all times responsive to customers needs, making it the first choice cellular service and support offering in the country. With Cellcall's support, the Franchisees staff will be trained to have the ability to carry out in- and out- of warranty services with the use of all the latest repair technology, software, spares and equipment of the major manufacturer handsets. The training to the management staff and the operational staff will the very best service and delivery as can be expected from a national market leading company like Cellcall.
Training
All initial training will be provided to the Franchisees as well as the staff. Cellcall there after will provide continuous assistance and support on all related training. Cellcall Service Provider Co. will provide the funding for future training related travel and accommodation cost. The initial training provided will include:
Cellphonecare Operations
Service Base (Webmaster)
Cellphonecare Logistics
Customer Services
Cellphonecare Management
Warranty Vetting
Management supporting systems
Cellcall Service Provider Co. monitors the progress and success of the Franchisee monthly and provides reports and an overview of the progress of the Franchise. This would require the utilize the software packages provided by Cellcall Service Provider Co as well as to provide other related figures as requested.
Ongoing Franchise Support
Cellcall Service Provider Co. is able to offer extended support and additional backup which includes assistance from a focused and separately developed Franchise business unit.
Management Reporting Systems
Cellcall Service Provider Co. monitors the progress and success of each unit monthly and provides reports and an overview of the progress of the Franchise Channel as a whole. The Franchisee will be required to utilize the software packages provided by Cellcall Service Provider Co as well as provide other related figures as requested.
The Franchisee is accordingly required to submit monthly Management reports and annual audited financials.
Market Analysis
The market analysis is conducted by a Cellcall Service Provider Co. specialist. Cellcall Service Provider Co. is responsible for brand building and brand maintenance. The Location is selected to maximise the shop profitability ensuring franchisee success.
Sales and Marketing Strategy
Advertising
Cellcall contributes a significant portion of the finance to national media campaigns be it via print, audio or visual media. The Franchisee will be encouraged to enhance the image of the Cellphonecare by employing additional advertising and/or promotions, subject to approval from Cellcall Service Provider Co. These additional advertising cost will be carried by the franchisee.
The franchisee will deploy a initial campaign to create awareness of the shops location and existence to the public. All the Cellcall retail shops in the area will be contacted introducing the repair service availability to these outlets.
Promotions will be negotiated with Cellcall to introduce the outlet and create shop/outlet awareness to the public in the direct geographical area.
SWOT Analysis
Strengths
• The Franchise the biggest Cellular operator in South Africa operating over 10 year in the SA environment
• The Franchisor is reputable and have a vested interested in ensuring the success of the business.
• The franchise applicant have operated in an Franchise environment
• The entrepreneurs are young and willing and able to ensure sufficient drive and energy is invested into a business to make it a success.
• Strong national branding and advertising
Weaknesses
• The entrepreneurs do not have any relevant experience in this industry.
Opportunities
• The business will be started by two woman entrepreneurs (one white woman and one black woman) that will provide and excellent opportunity for a financier to support South Africa's empowerment initiatives in establishing more women in the business sector.
• There are only two Cellphonecare shops in Pretoria as well as none in the Eastern Area (Higher income group) in Pretoria.
Threats
• There are limited threats for there are only 3 cellular operators of which this will be part of the biggest Cellular operator in South Africa.
Financial Overview
A liquid facility of approximately R 350 000 (unencumbered) will be required for the initial stock holding and a further facility of approximately R100 000 to cover staffing and operational costs for the first couple of trading months, prior to receipt of annuity income and rebates.
The Franchisee is required to incorporate a private company to act as a vehicle for the business operations.
The Franchisee will be responsible for the lease rental in the following format:
Year 1 – 0%
Year 2 – 20%
Year 3 – 40%
Year 4 - 60%
Year 5 – 80%
Cellcall will contribute the balance due on the rental portion for this 5-year period. The Lease pertaining to the site will remain vested in Cellcall at all times. Please note that this support does not include any operational expenses such as Electricity, Water, and Telephone etc.
Financial Plan
Please refer to our Financial Plan page for more information on what the Financial Plan entails.
Break-even Analysis
Please refer to our Financial Plan page for a formula to calculate the Break-even point.
Projected Cash Flow
Click here to download a Cash Flow template.
Projected Income Statement (Profit and Loss)
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Projected Balance Sheet
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