Week 4 - Assinment 1 Business Plan - DigiSav

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Week 4: Assignment 1
Develop a Business Plan
You are assigned to prepare a business plan of a small / family
business of your choice
Business Function and Procedures (UU-MBA-714-ZM)
STUDENT NO: R1711D3986200
Tutor: Ramakrushna Mahapatra
August 14, 2019

DigiSav
BUSINESS PLAN
DIGITIZING THE SAVINGS GROUPS
(2019-2023)
Note: This business plan is a hypothetical case for academic use only. The company DigiSav. and
names used in the profile are hypothetical even though reference has been made to some real
corporate entities. However, the cases remain hypothetical and all actual data used is referenced.
August 2019

Contents
1.0 BUSINESS RATIONALE................................................................................................ 4
1.1 Introduction............................................................................................................ 4
1.2 Vision and Mission.................................................................................................. 5
1.3 Core Values............................................................................................................. 5
1.4 Goals and Objectives.............................................................................................. 5
1.5 Governance............................................................................................................ 6
2.0 Market Research........................................................................................................ 7
2.1 Situation Analysis - SWOT....................................................................................... 7
2.1.1 Strengths.......................................................................................................... 7
2.1.2 Opportunities.................................................................................................... 8
2.1.3 Weaknesses...................................................................................................... 8
2.1.4 Threats............................................................................................................. 8
3.0 Industry Analysis........................................................................................................ 8
3.1 Competitors............................................................................................................ 8
3.2 Target Market and Products.................................................................................... 9
4.0 Marketing Plan......................................................................................................... 10
4.1 Advertisement or Promotions............................................................................... 10
5.0 Investment and Profitability..................................................................................... 12
5.1 Injection of Capital................................................................................................ 12
5.2 Breakeven analysis............................................................................................... 12
5.3 Other Financial needs........................................................................................... 12
6.0 Inventors, Economic Benefits and Justification........................................................13
7.0 Action Plan............................................................................................................... 13
8.0 Conclusion............................................................................................................... 14
References......................................................................................................................... 16

1.0 BUSINESS RATIONALE
1.1 Introduction
DigiSav is a Startup Fintech which is limited by shares and has its
operation in Lusaka, Zambia. DigiSav aims to partner with Mobile Network
Operators (MNOs) and leverage on their networks in order to promote
financial inclusion by banking the underbanked and unbanked population
through digitization of Savings Groups in rural areas.
DigiSav was a brainchild of two brothers after taking advantage of market
gaps that showed that there was linkage disconnect of Savings Groups
(SGs) to formal financial services; the SGs face the risk of security over
physical cash and difficult of maintaining a manual based record keeping
system; members are unable to access formal financial services due to lack
of transaction history or credit history for FSPs to determine customer
credit worthiness. Further, most of the rural adult population are
uneducated triggering slow uptake of financial services. It is from this
backdrop that DigiSav was credited to bank the unbanked and underbanked
population as well as meet the financial inclusion agenda for the country.
The product DigiSav offers is centered around onboarding of SGs on its
network that is accessed either through an android mobile application or
Unstructured Supplementary Service Data (USSD) code on a mobile phone.
The onboarding process requires registration of the SG on the DigiSav
mobile phone application savings group platform. The system requires
creation of a unique Personal Identification Number (PIN) for at least three
group leaders with basic Know-Your-Client (KYC) as required by the
Zambia Information and Communication Technology Authority (ZICTA)
for sim card registration.
The DigiSav platform accords the underbanked and unbanked population to
be able to access financial services such as loans, savings, insurance and
micro pension from formal Financial Service Providers (FSPs) and other
non-financial services due to the ability of the system to store and generate
credit scores. The system therefore creates a transaction history for
customers and acts as another source of revenue for the company when
FSPs search its database. In addition, the system is able to handle Big Data