strategic plan - aeonian financial services

7/29/2019 Strategic Plan - Aeonian Financial Services

1/12

2013

STRATEGICPLAN

FORTHE

AEONIANFINANCIALSERVICES

VERSION:DRAFT

DECEMBER 26,2012


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2013 - Strategic Plan

Copyright 2012, Aeonian Systems Ltd. Page 1

REVISIONCHART

Version Primary Author(s) Description of Version Date Completed

Draft Nicola Alliman-Brown Initial draft created fordistribution and reviewcomments

Nov., 2012

Draft Corey Brown Updates Dec., 2012


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PREFACE


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TABLEOFCONTENTS

TABLE OF CONTENTS ..............................................................................................................................................................................

1. INTRODUCTION .............................................................................................................................................................................

1.1 EXECUTIVE SUMMARY..................................................................................................................................................................... 1.2 MISSION ..................................................................................................................................................................................... 1.3 OBJECTIVES.................................................................................................................................................................................. 1.4 COMPANY OWNER.........................................................................................................................................................................

2. MARKET ANALYST .........................................................................................................................................................................

2.1 MARKET SEGMENTATION................................................................................................................................................................. 2.2 TARGET MARKET ........................................................................................................................................................................... 2.3 COMPETITION...............................................................................................................................................................................

3. FINANCIAL ANALYSIS.....................................................................................................................................................................

3.1 START-UP COSTS........................................................................................................................................................................... 3.2 PROJECTED INCOME .......................................................................................................................................................................

3.3 PROJECTED CASHFLOW ................................................................................................................................................................... 3.4 PROFIT/LOST STATEMENT.............................................................................................................................................................. 3.5 ACHIEVING THIS...........................................................................................................................................................................


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1. INTRODUCTION1.1 Executive SummaryAeonian Financial Services (AFS) is a startup lending company which intends to offer a comprehensive li

of lending products (in the future) tailored to a dynamic lending market. It is agreed that the company w

start up with two (2) products:

Personal Loans Hire Purchase Loans

Personal Loans will have a ceiling of $50,000.00, while Hire Purchase Loans will be for the differenc

between the Item Price and the Initial Deposit. Our service area is not limited to the Kingston Metropolita

area, but it will be the most focal area at this time. Aeonian will be generating new clients through

combination of network and direct marketing campaigns. We will be careful in our lending policy t

minimize the inherent business risks.

1.2 MissionAeonian Financial Services mission is to provide short term financing options to persons who wouotherwise not be eligible in the formal banking system or to persons who need emergency funding.

1.3 ObjectivesOur major objectives include:

To design and implement a simple, repeatable business model which will guarantee excellentcustomer service while maintaining a manageable risk level.

To grow our ROE up to 30% within the first two years of operations To spread our wings across the Island To maintain bad levels of not greater than 5% of loan portfolio

1.4 Company OwnerAeonian Financial Services is wholly owned by Aeonian Systems Limited (ASL).


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2. MARKET ANALYST2.1 Market SegmentationAeonian Financial Services will target working class groups of customers and first time computer buyers.

2.2 Target MarketThe targeted market will be working class customers which have debt service ratio of no more than 50% their income. These customers will not only seek short term loans but are able to pay off in a few of months

2.3 CompetitionCompetition comes from many different sources: Some are Listed below

Access Financial Service First Union Financial Services Mission Financial Services Niche Financing IBIS Financing Services


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3. FINANCIALANALYSIS3.1 Start-Up CostsAeonian Financial Services is a startup is $71,000.00 broken down as follows. This amount will be take

from injected capital.

Aeonian Financial Services Start-up cost

Quantity Item Unit Cost Total Source of Funding

FIXED ASSETS

1 Aeonian FMS - Lending Module 0.00 0.00 Differed until Jan 20141 Color Laser printer 51,000.00 51,000.00 Equity

51,000.00

OTHER EXPENSES

1 Promotions 15,000.00 15,000.00 Equity

1 Stationary & Office Supplies 5,000.00 5,000.00 Equity

20,000.00

71,000.00

Fixed assets to be acquired prior to startup:

One (1) laptop owned by ASL will be used for accounting and administration, while the Personlaptop of AFS Loans Manager will be used for production of day-to-day documents.

The Aeonian FMS Lending Module will be purchased by AFS for $100,000.00. Payment wicommence in January 2014.

An HP Colour Laser Printer


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3.2 Projected IncomeThe total projected for the six (6) month period is $186,451.56. This sum is derived from interest incom

and processing fees. We are not withholding GCT at this but is accounted for in the processing of $1000 + ta

(approximately $1,200.00). It also considers the monthly cashflow available for lending. Interest Rate is se

at48% for new loans and 45% for returning ones. For the purpose of this calculation, it is assumed that on

new loans will be issued.

Aeonian Financial Services Income Forecast (JA$)

For period January 2013-June 2013

*January(Startup) February March April May June

Int. Rate

48%

Product

Interest 16,000.00 20,390.67 24,296.83 28,767.11 34,403.62 40,993.33

Processing

Fees 9,600.00 2,400.00 1,200.00 2,400.00 2,400.00 3,600.00

Total 25,600.00 22,790.67 25,496.83 31,167.11 36,803.62 44,593.33


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3.3 Projected CashflowThe table below shows the details of our projected cashflow. It is estimated that our equity will increas

from $500,000.00 to $686,451.56 after the first six (6) months.

Aeonian Financial Services

Statement of Projected Cashflow (JA$)

For Period January 2013-June 2013

January(Startup) February March April May Jun

Opening Balance - 109,766.67 97,654.11 111,757.09 140,912.52 164,74

Inflows

Capital 500,000.00

LoansRepayments

Principal 66,666.67 84,961.11 101,236.80 119,862.98 143,348.40 170,80

Interest Income &

Fees 25,600.00 22,790.67 25,496.83 31,167.11 36,803.62 44,59

Total Loans 92,266.67 107,751.78 126,733.63 151,030.09 180,152.01 215,39

Total Inflows 592,266.67 107,751.78 126,733.63 151,030.09 180,152.01 215,39

Out Flows

Loans

Personal & Hire

Purchase Loans 400,000.00 109,766.67 97,654.11 111,757.09 140,912.52 164,74

Total Loans 400,000.00 109,766.67 97,654.11 111,757.09 140,912.52 164,74

Variable Cost

Promotions 15,000.00 - 5,000.00 5,000.00 -


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Commissions 4,000.00 1,097.67 976.54 1,117.57 1,409.13 1,647.4

Total Variable Costs 19,000.00 1,097.67 5,976.54 1,117.57 6,409.13 1,647.4

Fixed Costs

Fix Assets 51,000.00

Stationery & Office

Supplies 5,000.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.0

Utilities &

Transportation 7,500.00 7,500.00 7,500.00 7,500.00 7,500.00 7,500.0

Total Fixed Cost 63,500.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.0

Total Out Flows 482,500.00 119,864.33 112,630.65 121,874.66 156,321.65 175,390

Total Inflow 592,266.67 107,751.78 126,733.63 151,030.09 180,152.01 215,39

Less Out Flows 482,500.00 119,864.33 112,630.65 121,874.66 156,321.65 175,39

Cash Balance 109,766.67 97,654.11 111,757.09 140,912.52 164,742.89 204,75


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3.4 Profit/Lost StatementThe table below shows the details of our projected P&L. It is estimated that the business will make a ne

profit of$33,945.90, giving us a 6.79% ROE after the first six (6) months. Though this seems modest, it

projected to double of the first 12 months of operations.

Aeonian Financial Services

Profit & Loss Statement

For Period January 2013-June 2013

January February March April May June

Interest

Income & Fees 25,600.00 22,790.67 25,496.83 31,167.11 36,803.62 44,593.33

Less Cost of

Goods Sold

Gross Profit 25,600.00 22,790.67 25,496.83 31,167.11 36,803.62 44,593.33

Less Expenses

Fixed Costs 63,500.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00

Variable Costs 19,000.00 1,097.67 5,976.54 1,117.57 6,409.13 1,647.43

Total

Expenses 82,500.00 10,097.67 14,976.54 10,117.57 15,409.13 10,647.43

Net

Income/Loss

-

56,900.00 12,693.00 10,520.29 21,049.54 21,394.49 33,945.90


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C i h 2012 A i S L d P 11

3.5Achieving thisWe can achieve of even surpass these targets but ensuring the following happens in a timely manner:

1. Accessing the capital ($500,000.00) by the end of the 1stweek of January 2013.2. On-lend the minimum of $400,000.00 by end of January 2013.3. Develop 0% bad debt within the 6 month period.4. Use word of mouth and flyers to promote business to desired target market. Note- we cannot ov

advertise and we do not have the capital to support it at this stage.

5. Hire purchase is an area we should look at keenly as it provides us with a few advantages:a. We can charge up to 60% interest rate because our major competitor is Courts who is muc

higher.

b. We get to sell a computer, earning a profit plus loan earning another profit.c. We hold the title to the asset as collateral until fully paid off.

6. Develop and implement proper operational procedures within the period.7. Keep expenses extremely low.8. If business doing well, add more capital.

Conclusion

It is my opinion this business line has the potential to take off and with careful and deliberate strategie

well make it happen.

strategic plan - aeonian financial services

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