We are looking for funding to launch premium scheduled and charter intercity road transport. Expected ROI is 30% ROI in 3 years plus 5% share profit for 5 years.
I am looking for debt or equity investors to provide seed capital to launch a five star premium intercity road transport business.
We will be providing premium intercity road transport services between major cities in Cameroon beginning from Douala and Yaounde.
Our target market are the upper and middle class persons in society comprised of Corporates, Government personnel, Business men and women, Tourists, expatriates and International organs who increasingly demand safe, reliable and comfortable transport system which the sector has been unable to provide.
Our revenue generation model is the direct sales system whereby customers pay prescribed fares in exchange to be transported to any destination on our network.
Our goal is to be an African company which defines and delivers world class service excellence in providing intercity road transport business solutions. We intend to be the best and most successful premium intercity road transport company in Cameroon and Africa after seven years possible through anticipating our clients needs before time and providing timely solutions while providing services conforming to the 21st century standards. As such, we intend to become a global reference for premium intercity road transport services in Africa providing utmost safety standards, uncompromised comfort, unparalleled standards of reliability while demonstrating an unprecedented passion for innovation and excellent customer service delivery.
Relating to the viability of the project, all preparation work has already been put into place and all we need is the financing to kick start the business to be launched four to six months after financing is acquired mainly to allow time for buses to be purchased and customized abroad and shipped and also for the construction of our world class terminal structures to be put up.
The business will become profitable by the 7th month after operations are launched. It will expand its operations all over the national territory in Cameroon where we have motorable roads after two years, will launch its international expansion plan after 1year ten months by launching to Nigeria and Ghana and extending to over 24 other African countries in three more years and cover the entire continent after five years totalling seven years. Also, to put up with competition, we intend to launch lower price subsidiaries to serve the lower middle classes of people and lastly an ultra modern low cost subsidiary to serve the poor classes of travellers in society by the second and third years respectively without compromising on safety and reliability and it will permit us to have a firm hold in all sectors of the industry( business plans for these two are also in place).
Seed capital is needed to establish a legal status backing our operations, put up terminal structures and equip them, purchase and customize our buses, ship them, pay custom duties and carry out test trips, recruit and train our team, carry out advert basically. Total seed capital needed stands at $1,100,000 (one million, one hundred thousand United states Dollars) and minimum $750,000 (seven hundred and fifty thousand United States Dollars). Debt investor will receive 35% ROI after 3years together with a 5%share on global profits for the first 5years. An equity investor will receive 15percent share of the company (including international subsidiaries and lower price subsidiaries).
We have 4 main direct and 2 indirect competitors in the premium transport sectors,
Our direct competitors are Touristiques Express, Buca Voyage, Garanti Express and Finexs in order of importance. All of them provide neat buses and terminals with air condition, a sandwich and drink offered, a 90, 85, 80 and 60 percent reliability record respectively, an average pass for customer service except Touristique, which gets a good for customer service.
Our indirect competitors are the national railway company Camrail and airline Camairco. They are more expensive with the former being slow and the latter being unreliable offering poor onboard services.
Our competitive advantage is that we are breaking away from the classical premium services offered in the industry. The idea is to create and provide aboard an intercity bus all the experiences which one expects to get while flying 5-star airline companies like emirates airlines and Singapore and further because we value the right training, pay great attention to details, ensure strict controls and high professional standards and ethics at all times in our operations alongside offering our guest, service from the heart.
With us, our guest should expect excellent world class customer services, genuine quality, discover and live our passion to innovate, experience consistent service improvement, feel safe with us than anywhere else, and feel satisfied for every dime they pay. See our executive summary for some explanations on our range of onboard facilities and service offerings.
I understand that that competition may set in after some time but our advantage will be preserved. Our business model is based on upholding a culture of innovative leadership which is based on anticipating our client's needs beforehand and providing timely solutions constantly thus providing utmost customer satisfaction and ensuring consistency which will enable us keep our clients and attract new ones. We understand that the business environment changes constantly and so our clients needs too. We will be therefore keen to constantly adapt in order satisfy these needs while at the same time not failing to deliver on our promise of providing quality, safety, reliability and excellence making sure we remain the best intercity road transport brand even as we grow minimising the risk of competition
Again, we will create two subsidiaries, one aiming at providing the existing premium standard services in the industry but at 50percent lower fare and also a low cost subsidiary to provide standard services at 40percent cheaper rates while providing excellent customer services, safety and reliability even for the low income travellers. This is so that we consolidate our grip within the industry and become a strong transport brand which people from all classes of society can trust without diluting our business model by reacting to price changes and reducing quality.
We intend to purchase major stakes in all new and innovative intercity transport companies striking sustainable partnerships further reducing the risk of competition
engage in aggressive advert with the iconic service of our cabin crew being at the forefront
The intercity road transport sector is faced with the problems of bad services, high rates of insecurity, none adherence to high professional standards and ethics amongst others, meanwhile the wealthy in society demand safe, reliable and comfortable means of transport between major cities which the present system has failed to provide. We are therefore coming in to fill this gap, by providing world class service excellence, genuine quality, uncompromised comfort and luxury, safety and reliability levels our guest will find no where else in the intercity road transport network.
We are going to make money through the direct payment of our prescribed transport fares by our clients in exchange of our transportation services from one city to another either the individual or cargo.
For now, we have no present market player having the idea. Rather all new transport companies coming in now still stick to the same old rules of launching with new buses and try to impress and as soon as they attract some people, they delve into the same old industry practices offering bad services and no value for money.
I work as a freelance junior consultant in aviation strategy and innovative leadership, I equally work as a reservations agent as I negotiate with premium intercity road transport companies to provide buses for visiting tourists into the country to transport them all over the national territory. These has given me the opportunity to interact with many actors in the sector, with varied clients and to understand people's needs and where the present system is lacking and how it can be improved.
Given that I equally travel a lot, I take out time to study the transport system existing in each region of the country. For over three years now, I have been carrying out market perception studies to understand the system, latest trends and business environment perfectly well.
The requested funding is needed to purchase four luxury seater buses and customize their interiors according to our demand, purchase one corporate transport and utility 13 seater hiace bus, export them and pay for customs duty. hire land, build and equip our world class terminal facility, pay all taxes related to the status of the business and all administrative procedures, engage in massive and strategic adverts, recruit and train our entire staff basically on excellent customer service delivery and special trainings relating to each department among others.
There will be maximum two rounds of funding, with a difference of six weeks.
Total seed capital needed is $1,100,000 but a minimum of $750,000 is needed to kick start the project. Expected payback period is three years with a 30 percent ROI and another 5 percent yearly share of global profits for the first five years.
For equity investment, investor will receive back his funds after 3 years with no ROI but will receive 22 percent share of the company including foreign operations and low cost subsidiaries and profits.
I will prefer a silent investor but who will play the role of an adviser and is free to become a hands on investor if company is not achieving its desired objectives.
Suggested investment instalment schedule: 18 percent for the first year, 56 percent for year two and 26 percent in year three.