| History Background |
| The licence holder of this business is from an IT and Business Consulting background. From this experience he decided to create a license system which had 2 years of relevant research before being implemented. Services provided are airtime recharge vouchers via SMS as well as referral commissions. A major benefit of this SMS Licence business is that clients can earn commission by referring their friends and family members etc. to also join this program. Once these referred clients have registered and purchased airtime the client will receive ongoing commissions. | |
| Once a certain income level has been reached clients have the option to converting their commissions into airtime or cash payout. There are 2 operational options, either the Local licencee or Regional Licencee and they will operate as follows :-
Local Licencee
Recruits clients via marketing / advertising plan. Clients will then complete an application form with all relevant details including authorisation to deduct by way of debit order. The client will then fax application form back to the Local Licencees office and their details will be captured onto the system. The system will then deduct monies from clients bank account and send a confirmation SMS to the client. | |
| Present Market |
| Clients are potentially anyone who owns a cell phone and requires recharge airtime i.e. school children, teenagers, students, housewives, blue collar workers, low income groups to high income groups, the list is endless. Marketing will be undertaken by the Local Licencee, Regional Licencee, H/O and of course word of mouth referrals from satisfied clients. There are currently no competitors who offer all the services of this business and no real seasonal trends will occur as clients always need to top up their airtime. | |
| Staffing |
| Staff will consist of the owner and 1 admin staff member for both the local and regional licence holder. Further staff can be employed if necessary as the business grows. | |
| Premises |
| This can be a work from home operation for the Local License holder but the Regional Licence holder will need a small commercial office. | |
| Assets |
| Upon becoming a Local Licencee or Regional Licencee you will receive the rights to use H/O Intellectual Property such as corporate branding and licence to promote in your area; Access to the on-line system; use of operations manual and the training system; exclusive rights to promote in the designated area and register clients; receive commission from clients purchases. | |
| S.W.O.T. Analysis |
| S.W.O.T. Analysis
Strengths: Cash business with no stock. Low start up costs and overheads. Clients earn commission from client referrals and clients become salespeople (word of mouth advertising). Already 10 million strong user market.
Weaknesses: This is a new business
Opportunities: Constantly growing market (+/- 9 000 users sign up each day). Additional and / or similar products are being researched by H/O to increase product range
Threats: None identified | |
| Reason For Sale |
| Roll out program throughout South Africa. | |
| Conclusion |
| An excellent opportunity to join a growing market that is in demand. Low entry level to join this group as a Local Licencee @ R92 000 + vat, as well as an amount of between R20 000 to R40 000 for the launch and advertising material. The launch and advertising amount will vary from area to area and will depend on what plan the local licencee and H/O marketing department eventually formulate. Selling price for the Regional Licencee is R650 000 + vat plus an amount for launch and advertising. H/O has invested a substantial amount of money in the design of this system and has good backup and support in place for all Licence holders and clients | |