FREEWAYBUSINESS PROPOSAL.

PRESENTED TO: ASHOKA CHANGEMAKERS.

BY:

1. GEORGE ARINGO: PROPRIETOR.

Address: Nairobi, Kenya.Email: georgearingo@yahoo.comTel. No: 0705060997Date: 16th NOVEMBER 2015.

All Rights Reserved. This proposal may not be reproduced in whole or in part by photocopy or other means, without the permission of the author.

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1. Executive Summary.

Freeway is simply a warehouse that contains computer equipment capable of connecting to the

Internet. The terminals are strategically located in high-traffic community gathering places such as

malls and sports complexes, and are FREE to use for visitors of the location.

Due to the fact that the Internet terminals are free to use, we will SELL ADVERTISING SPACE

on the warehouse to local companies to generate sales and profits for the business. Participating

businesses will benefit from increased foot traffic as a result of the free Internet terminals being

installed on the site.

Free-way's goal is to provide the community with a FREE educational, social and entertaining

atmosphere for worldwide communication thereby bridging the digital divide that’s experienced in

most African countries.

Free-way is the answer to an increasing demand. The public wants:

(1) Free access to the methods of communication and volumes of information now available on the

Internet, and

(2) Internet access in such a way that they aren't socially, economically, or politically isolated.

Free-way seeks to generate income through provision of advertising space to the Private sector, the

Government and Non-Governmental Organizations to advertise their products or services within

our premises through provision of Television Infomercials, Kiosk space, Banner space etc. This

initiative allows companies to advertise/sponsor with a purpose, the purpose being to help the

community have FREE computer and Internet access.

Participating businesses will benefit from:-

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Heightened Visibility: A newsworthy cause can yield positive media coverage worth many

thousands of dollars, at a fraction of the cost of advertising thereby realizing value and

attaining visibility beyond mere advertising equivalents.

Lifestyle validation: When sponsors make a lifestyle experience “possible”, they validate

the things their customer’s value and trigger a cycle of reciprocity in which the consumer

rewards the company by purchasing its products.

Authenticity: By affiliating with this cause that will grow authentically from a communal

desire to share an experience, they will inspire trust and goodwill.

Interaction: Beyond banners and signage, our sponsors will become a meaningful part of

our company. They will offer samples, display their wares and provide participants with an

interactive environment that they enjoy.

Emotional Appeal: More than anything else that attracts attention of the people to the

product is by emotional appeal. Non-profits elicit emotional responses from their members.

The sponsor’s target sales can increase due to this emotional response.

Efficiency: The era of mass audience is passing. By zeroing in and tailoring specific

messages to a target audience or niche, sponsors can reduce their costs dramatically.

Valuable insights: Sponsors can learn valuable insights into the demographic it serves.

They can gather data and conduct research to increase their sales.

Opportunity to showcase products: Sponsors will have excellent opportunities to

showcase their products through displays and interaction with our members.

Opportunity for On-site Sales: Sponsors prefer exclusivity and are willing to pay a

premium for this benefit, as they will be able to recoup their costs through incremental sales.

Commitment: The gathering power of our organization provides sponsors with a shortcut to

target audiences, target audiences defined by the values our members have in common and

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not what research companies’ dictates they should have.

Free-way gives companies an opportunity of launching new products and services through

infomercials that targets this niche market at the same time our sponsors get a chance to give back

to the society through Corporate Social Responsibility.

This business plan is prepared to obtain direct financial support to the tune of € 50,000. The

supplemental financing is required to begin work on site preparation and modifications, and

equipment purchases.

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Free-way will be incorporated as a Private company. The Owner George Aringo will be the

Manager and C.E.O. of the company. This financing, will allow Free-way to successfully open and

maintain operations within the 1st 6 months. The large initial capital investment will allow Free-way

to provide its customers with a fully fledged Internet cafe.

A unique, upscale, and innovative environment is required to provide the customers with an

atmosphere that will spawn socialization. Successful operation in year one will provide Free-way

with a customer base that will allow it to be self sufficient in year two.

Describe the location of your business and the significance of the location if relevant

A site will be chosen within downtown Nairobi. This site was chosen for various reasons, including:

Security around the location, Proximity to the Central Business District business community,

Proximity to Colleges and Universities, Proximity to Bus Station, Parking availability, Low cost

Rent and High visibility. All of these qualities are consistent with Free-way's goal of providing a

central hub of communication and socialization for the Nairobi community.

Describe the market need your business will address and how the product(s)/service

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will meet the need

The rapid growth of the Internet and on-line services, that has been witnessed worldwide, is only

the tip of the iceberg. There is a need for the public to access Internet and computer for free. At the

same time there is need for companies to target niche markets with infomercials about their

products/services.

By setting up this free internet terminal that provides Wi-Fi, computer and Internet access for free

thereby creating a niche market, Free-way will be able to attract Companies to come and publicize

their products through Sales promotions, banners, rack cards, computer screens, Stickers, fliers,

Product placement on our staff uniform, audio/visual advertisements and announcements within the

building.

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Identify your target market/major customers/potential users

Our target market will be divided in two.

First, the general public aged between the ages of 15-45 years. They will be the ones we target with

free internet. This is due to the fact that the Internet appeals to a huge variety of people. They will

visit our services ensuring we have a steady flow of human traffic within our premises.

The second group will be the Government, Private sector and Non Governmental Organizations.

They will be able to target the users of our Computer & Internet services by describing, displaying

and demonstrating their product features. By creating more awareness to themselves and assisting

our internet clients’ access free internet, they will create a loyal clientele of their products and

services.

a. Competitive environment

Who are your significant existing business competitors and potential/new entrants

Our Internet competitors are the Internet service providers who target users at home. And local

cyber-cafes who provide Internet access at a fee. Due to the huge population of Nairobi, we believe

we will be able to share clients and not make the current Internet service providers solvent.

The main competitors in the advertisement industry are the Televisions, Billboards and Radio

Stations due to their wide area of coverage. We hope to create our own niche by presenting

companies with an opportunity of marketing their products and services to a specific niche market.

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What are the challenges and barriers to entering into this industry

The major challenge facing Free-way is access to funding. The company requires amounts to the

tune of twenty thousand Euros (€ 50,000) equivalent to five million (5,000,000) Kenya shillings.

The other challenges are location of a huge facility/room, as well as the right location to set up the

business.

What makes your product/service distinctive (differentiates them)

This form of advertisement can be used to inform, educate and motivate the public about non-

commercial issues, such as HIV/AIDS, political ideology, energy conservation and deforestation et

cetera.

By providing free Computer and Internet access, Free-way separates itself from all other cafes in

Nairobi. By combining this method with advertisement, Free-way provides for a unique and trendy

way for companies to reach new markets.

b. Viability of business

How will your determine product or service pricing

Determining a fair market price is difficult because this is a new venture and there are no direct

competitors.

First, we considered the cost of setting up our business in terms of fixed costs (rent, salaries,

benefits etc.) and variable costs (energy, supplies, etc.) and how much it will be fair to charge in

case we get a single client to advertise with us.

Second, we considered the cost of advertising on other advertisement mediums, such as

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Newspaper, Television and Radio. We concluded that charges would vary depending on the size of

company advertising, the location of the advertisement in terms on positioning within our premises.

In addition some advertising companies used a strategy with a combination of both pricing

schemes.

Third, Free-way looked at how advertising companies in other areas of expertise such as the

entertainment industry went about pricing their advertisement costs.

Evaluating these three factors resulted in Free-ways monthly advertising fee of € 5,000 or Ksh

500,000 shillings for big companies/organizations such as Universities and Colleges. And a

monthly advertisement fee of € 200 or Ksh 20,000 for smaller companies e.g. Computer shops,

Boutiques, Salons et cetera.

How will you reach your target market and distribute/ deliver your product/service

To target the Internet and computer users, Free-way will rely mostly on word of mouth, Newspapers

and partly the radio. But when dealing with potential advertisers within the company, Free-way will

rely on the human traffic within our premises to convince them to advertise us.

What are your employment projection for the first three years of operations

Free-way plans on employing 4 employees to help with work within the premises. This is within the

six months of operation, by the second year we expect to add more employees into our organization

to enhance efficiency. Those who will be employed indirectly due to the operations of Free-way

such as employees within the kiosks are expected to increase

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After successful operations have begun. By the third year, Free-way plans to add more employees

to the band wagon as we hope to expand our services to all major towns and provinces in Kenya.

How will your business make money and how long will it take to become profitable

Free-way’s main source of income will be advertisements. Organizations will pay a certain amount

in order for them to advertise within the premises. Charges will vary depending on the type of

service as well as the location of the advertisement within the building. We hope to start being

profitable within the first six months.

What are your sales revenue projections for the first three years of operation on an

annual basis

Yearly Sales.

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How much investment will you need and which strategy do you have in place to source

for funding

To put this business into operation, Free-way will require approximately fifty thousand euros (€

50,000) or five million (5,000,000) Kenya shillings. The strategies put in place to acquire this

Amount are through business competitions, funding/sponsorship from companies or organizations,

grants from sponsors, contributions from family and friends as well as loans from banks.

c. Entrepreneur’s experience and commitment

Briefly describe your education background, skills competence and experience as it

relates to the business idea.

As an entrepreneur, I have developed skills that will enable me bring Free-way into fruition. I have

a degree in Information Technology from Jomo Kenyatta University of Agriculture and Technology

(J.K.U.A.T.) and with a C.C.N.A. CISCO Certification in Networking. I have over 7 years of

working experience with cyber-cafés within Nairobi, I have gathered enough experience that will

enable me manage operations at Freeway.

Briefly describe your commitment to accomplishing the start up or expansion

As the proprietor of Free-way, I have full commitment in accomplishing this start-up and seeing it

grow to unimaginable heights. As a sign of my commitment to this business, I will provide a

portion of the money required for the start up through family saving of approximately € 5,000 or

five hundred thousand (500,000) Kenya shillings.

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What is your current occupation (if still employed) and how does it relate to what you

intend to do

My current occupation is with the Directorate of Criminal Investigations. I have gathered hands on

experience in dealing with the daily activities of running a cybercafé and I am therefore confident

that the challenges will be similar.

Is your product/service seasonal? If so describe how and why

No, the service provided by Free-way will not be seasonal and will operate throughout the year.

This is because the internet is not affected by changes in seasons.

d. Financial requirements and needs

State your business source of capital and funding need

The sources of funding for Free-way will be through Business competitions, Sponsorships, Grants,

Loans from Banks, Family and friends Savings/Contributions.

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C.E.O.

General Manager. Tehcnical Manager. Marketing Manager.

Help Staff. Volunteers.

2. Business description

a.a. The nature of the business and industry trends

The nature of the business

Free-way will be an ICT company that provides computer and internet access to the general public

for free. At the same time it will incorporate infomercials/advertisement as a way of earning

revenue by allowing companies to market their products to target our clientele.

By offering sponsorship at different levels i.e. gold, silver or bronze depending on the amount of

sponsorship offered.

The Company structure and Trends

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a.b. The company

Name of the company

The company name will be Free-way. The name was chosen in reference to the company providing

free access to the internet superhighway.

Business vision and mission

Free-way’s vision is to become the leading provider of innovative and beneficial technologies that

improves the quality of life.

Free-way's mission is to deploy innovative and beneficial technologies, while creating values for

all our stakeholders.

Business goals

The goal of Free-way is to eventually provide computer and internet services to the general public

for free in all counties within Kenya.

Type of business ownership and share capital

The owner George Aringo will run the business as a Private Company.

Business location

Free-way will initially be located within Nairobi city centre in view of the huge amount of traffic

within the city.

a.c. The product or service

Type of product or service offered

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Free-way will offer advertisement to companies through audio/visual displays, Banners, one on one

advertisement as well as providing computer and internet access for free. We will also earn income

through provision of other computer related services such as Printing, Photocopying, CD - Writing,

Binding, Lamination, Scanning et cetera.

Specification or characteristics of the product or service

Advertisements will be done through Banners, word of mouth, audio/visual displays that will be

provided; in the future an extra amount will be charged for companies to set up kiosks within our

premises.

Free-way will be characterized by use of the latest machinery and software, Provision of free

internet and computer access as well as other computer related services.

Entry strategies

Free-way will position itself as an up-scale advertisement house and I.S.P. that will provide high

quality indoor advertisements at competitive prices. Through creation of a unique niche that

companies target with infomercials. Free-way will use radio and word of mouth as its main source

of promotion.

In addition to the above mentioned services, Free-way will charge our clientele to access other

related services including Printing, Photocopying, CD - Writing, binding, Lamination, Scanning,

Watching movies et cetera.

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3. Market analysis and marketing plans

a. Market research and analysis

Major customers

Overall, we expect to sell our advertisement spaces to N.G.O.s, the Government and Private

Companies. The vast general public will access Internet for free thus ensuring constant human

traffic within our premises.

Market size

The market size for Free-way is huge and its growth potential is almost unlimited as the population

in urban centres keeps on reaching new high each year. Nairobi has an estimated population of three

million (3,000,000) people in the administrative area of Nairobi, 2,143,254 inhabitants lived within

696 km2.

Trends

A market survey was conducted in March 2008. The report according to I.T.U. (International

Telecommunications Union) stated that there were 3,000,000 Internet users in Kenya; Up from

200,000 Internet users in the year 2000. This trend shows a significant rise in the number of Internet

users.

Major competitors

Our major Competition will come from Television, Radio, and Billboard Advertisements. But by

providing a new and innovative way that will allow marketers to target computer literate users we

hope to change the tide in advertisement.

Barriers to entry

Lack of funds is the major barrier to Free-ways entry into the market.

Lack of open spaces to set-up this huge venture as most buildings are subdivided.

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Estimated market share and sales projection

Monthly Sales Projections

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b. Marketing plan

Overall marketing strategy

While the market is already size-able, this industry continues to grow. Free-way initially intends to

attract Computer and Internet users. They will comprise both power Internet users who are

extremely familiar with the Internet and its offerings; as well as attracting novice Internet users.

Both these segments are the ones most in need of the services we are about to offer.

Free-way then intends to use our clientele as a potential market for marketers to target with their

products and services by providing organizations, public sector and the government with an

opportunity of advertising their products within our premises at a given cost.

Pricing strategy and policies

The pricing was reached by considering the cost of setting up the business and that of advertising

with other advertisement firms; whether it is through television, radio, sporting events or seminars.

Evaluating these two factors resulted in Free-ways monthly advertising fee of €5,000 or Ksh

500,000 shillings for big companies/organizations such as Colleges, Computer shops. And a

monthly advertisement fee of € 200 or Ksh 20,000 for smaller companies such as Salons, Boutiques

etc.

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Sales tactics

Our sales tactic will be to target a niche market that has the greatest need for computer and internet

access and provide it to them for free. We will then invite companies to target this niche market

with their advertisements in order to generate sales.

Service and warranty policies

The services that will be offered by Free-way will not require service and warranty policies but can

be adjusted appropriately in the future.

Advertising and promotions programs

Free-way will during the first few months of operation rely on leaflet distribution and word of

mouth to attract potential users of our services and eventually phase out to word of mouth.

Distribution plan

Internet and computer access will be through computers provided within our premises.

Advertisements will take the forms of TV advertisements Banners, Computer screens,

Stickers and fliers where companies will in the future set up kiosks to interact with their

potential clientele. Operations will be 6 days a week.

Use of ICT and internet

To streamline the efficiency of our services, Free-way plans on using the latest in cutting edge

technology – not only in Internet provision - but also in advertisement. We will incorporate flat

screen televisions to provide clear picture qualities.

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4. Organizational, management and operational plan

a. Design and development plans

Development status and tasks

To streamline the efficiency of our services, Free-way plans to use the latest in cutting edge

technology – not only in Internet provision - but also in advertisement.

Proprietary issues

The proprietary issue associated with Free-way is finding the right price to charge for our

advertising services as well as securing the proposed location.

Major difficulties and risks

The major difficulties and risks that will be associated with our company is lack of Start-up

Capital/Funds, Availability of a reliable I.S.P. and availability of an open space.

b. Manufacturing and operational plans

Geographical location

The location of Free-way will be within the Central Business District of Nairobi, Kenya.

Facilities and capacity improvement

Free-way will operate at a warehouse located next to railways bus station. The location is huge

and has capacity to improve on its accommodation.

Strategy and plans

Free-way will rely on various strategies to attract potential users of our facility. First is to attract

Internet users who are both familiar with using the internet and those not familiar with its

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benefits. The second strategy is to attract potential advertisers to promote their goods and

services within our premises.

Long term growth strategies

Our long term growth strategy is to expand in all major cities within Kenya and eventually have

a branch in all counties in Kenya.

c. Organizational and management team

Organizational structure and operations

Free-way will be Owned and Managed by the founder George Aringo, whose expertise cover

many of the functional aspects of the business.

The organizational structure is simple. George Aringo will oversee the operations of the

company as the C.E.O. The help and support staff of the company will report to the C.E.O.

directly. The C.E.O. will support the day to day operation of the organization together with the

support staff.

Key management personnel

The key management will be: The C.E.O. who will be making the major decisions in the

company, later on we plan on hiring a marketing manager and other personnel’s as we expand

our business. The C.E.O. will monitor all the business activities as well as provide technical

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support within the company. The Help/Support staff will assist with minor support as well as

assist in marketing our sponsors product/services.

Management compensation and ownership

The organization will compensate its human resources both directly and indirectly through

insurance policies, overtime policies, salaries, bonuses etc.

Incentives and employment agreements

Employees will be employed on a contract basis and have benefits that include insurance policies

and overtime benefits.

Supporting advisers and services

Free-way will provide other supporting services such as Scanning, CD-Writing, Binding,

Lamination, Printing, Photocopying, Movie watching at a small fee.

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5. Financial analysis and plan

a. Proposed company financing

Financing requirements(needs)

For Free-way to be operational, we require € 50,000 or five million (5,000,000) Kenya shillings.

This huge capital is needed to setup the office by buying 100 computer monitors, desks and

renting the building for the first six months.

Capitalization(sources)

Sources of capital will be from Business competition, Company/Organizational sponsorship,

Grants, Loans from Financial Institutions and contributions from family and friends.

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