FREEYOURMOBILE SERVICES
209 Lonsdale Ave.
North Vancouver, B.C., Canada
Tel: 604 809-2924
Sole Proprietor, and Operator: EWEN CAMERON
Business plan X pages
Table of Contents
Business Description 3
Objectives 4
SHORT TERM (1-2 years): 4
LONGER TERM (2 – 5 years) 4
Target Market & Industry Market Analysis 4
Industry Trends 5
Competition 6
Marketing Plan 7
Products 7
Tangible Products 7
Intangible/Service Products: 7
Pricing 8
Tangible Products 8
Services/Intangible Products 8
Business Description
The name of the business will be “Free your Mobile Services”, this having been chosen to convey the notion of liberating one’s cellular phone service from the restrictions of being tied to a particular cellular service provider. The business will engage in the sales of, and specialized services for, wireless communication devices. The primary activity of the business will be to provide the service of unlocking cell phones. (generally, cellular phones are configured so as to be locked to the service of a particular cellular carrier. This limits the users’ options should they want to travel to other communications jurisdictions, or simply change carriers for any reason. The answer to overcoming these limitations is unlocking.)
The business will be operated as a sole proprietorship, the proprietor being Mr. Ewen A. A. Cameron.
The primary activity of the business will be the unlocking of cell phones and other cellular-enabled devices.
Secondary activities of the business would include:
Sales of new wireless communications devices and accessories
Provision of related services for cell phones and other cellular-enabled devices, including configuration and firmware upgrading.
.
Consultation with clients to ensure that device features are properly matched to clients’ needs.
The prospective clients could be anyone who needs flexibility and “carrier-portability” in their wireless services. This would include the student whose home is in another part of the world from where their school is located; a business person who regularly travels from Canada to Asia or Europe; a retired person who travels widely and regularly as part of their retirement plan. All of these people would be potential customers if they wished to utilize the same cellular phone in different parts of the world.
The concept of unlocking cellular devices is not a brand new one; however it is not, as yet, widely appreciated or understood; and there are only a few businesses performing the service, and a very, very few who specialize in this service.
A service provider is needed who is interested in “going the extra mile” for clients who have a busy schedule by meeting the clients at their choices of location and time. (The actual unlocking of the cell phone can be done just about anywhere with portable equipment.)
The business has been registered and functioning as an online operation since Nov, 2004.
A World Wide Web site has been established (www.Freeyourmobileonline.ca) as well as telephone and email facilities. A number of specialized tools have been acquired, and working relationships have been established with vendors of the specialized hardware and software required for the unlocking process.
The business is currently operating on small scale with client referrals obtained primarily by “word of mouth”, and limited advertising via local newspapers and handbills. Discussions have taken place with cell service providers in both Canada and the United States as part of the ongoing research into the potential market for unlocking, and the variety of other services required by clients.
Mr. Cameron has obtained the requisite municipal business license and is listed as Sole Proprietor and intends to incorporate at a later date, He is currently operating the business both online and from a store front centrally located in North Vancouver.
Mr. Cameron has completed the required HST registration.
Objectives
SHORT TERM (1-2 years):
The immediate short term goals include the upgrading and redevelopment of the online store to facilitate better administration of the Web pages, and make it easier to keep uptodate.
The online store is comprised of Internet Web pages which allow a customer to order items online, and pay online using Pay-Pal Services (and therefore the major credit cards accepted by Pay- Pal). As the technology evolves, other online payment methods may be utilized.
The short term goals for the store front operation include the implementation of an online inventory control system, and continued exploration of marketing opportunities.
LONGER TERM (2 – 5 years)
The online store will continue to be optimized for ease of use for the customers, and ease of administration for the staff, and will be regularly updated to follow the technologies as they evolve.
The store front operation will be expanded with additional stores or kiosks in other areas of the Lower Mainland
Target Market & Industry Market Analysis
The majority of cellular network carriers sell phones, but their ranges are generally limited to “low-end” models which are economically feasible to virtually “give away” when a customer locks into a long term service plan. Freeyourmobile will cater to a discerning clientele wanting specific, more “high-end” features such as: video and photo capture capability; MP3 player capability, video calling capability, Global Positioning System functionality. The targeted customer group would be adults from 19 upward, including both individual, personal service users, and corporate business users.
Cellular telephones have mostly been gender-neutral up until now, but more and more manufacturers are offering styling and colours meant to appeal to women. As long as you have a job and a good credit rating you can buy a mobile phone plan and in other cases you can buy pre-paid or “talk as you go” service which doesn’t require an income level and just buying a Mobile Phone outright does not require any down payment.
We work with GSM phones (Global System for Mobile communication – the most widely used of several different cellular network technologies). The GSM Association (industry spokes-group) reports that there are almost 5 billion GSM mobile connections around the world at any given time.
It is certain that we will be using mobile communication devices for many years to come. The market for cellular products has continually proven to be strong at large, and the big mobile carriers have never been “bailed out” for any type of bankruptcy. It is inevitable that the cost of service plans will drop, but the cost of hardware devices will remain stable until the next “giant Leap” of technology.
Freeyourmobile intends to achieve and maintain a competitive edge by offering same-day (often within one hour!) cell phone unlocking service, and by offering unparalleled customer service at all levels.
Industry Trends
Within recent years, regulation in Canada has allowed for “number portability”. This means that a consumer can transfer their cell phone number from one carrier to another. This usually requires that the consumer have their phone “unlocked” to permit it to work on the networks of a variety of carriers. Thus there has been a trend toward increased demand for unlocking services.
The most significant trend in the cell phone industry is the development of “smart phones”; the incorporation of more and more of the functionality of personal computers into the cell phone package. Web browsers which can make an internet connection both via the cell phone network and WIFI are now almost standard.
In fact, such a large variety of features is currently available that selection of the right phone for any individual user can be daunting. This situation has led to the need for the specialist “cell phone consultant”. Freeyourmobile Services is well poised to fulfill this role. We feel that we offer our clients a very useful value-added service by making individual appointments with them to develop a list of their specific needs, leading to a short list of the most suitable phones. To our knowledge, no other vendor in the Metro Vancouver area is providing this value added service; a fact which allows Freeyourmobile to stand out from the crowd and, to establish a foundation for strong customer loyalty.
Competition
As stated in the last section, the “Cell Phone Consultant” approach of Freeyourmobile Services provides clients with something they are not likely to find with the majority of cell phone retailers.
Freeyourmobile can provide “hardware-based” unlocking for a great number of phone types which gives the customer much faster service. Many competitors utilize only “code” based unlocking which can result in increased turnaround time and significant delays to the client.
Development of Relationship with Customers – When a customer purchases a cell phone from most of the competitors, they have a face to face relationship with the vendor for perhaps 15 minutes at most. When one of our customers purchases a phone after a consultation, we have one half to three quarters of an hour in which to develop a relationship with them. They appreciate the interest we take in identifying and meeting their specific needs.
Competitive Prices – Our prices are always competitive and often lower than competitors, but we strive to provide a higher level of service in all aspects of the customer relationship.
Carriers’ Discounted Prices – While it is true that some carriers offer deeply discounted cell phone prices, these are only offered with the clients’ agreement to inflexible and restrictive contracts for terms as long as three years. The customer who accepts the discounted initial phone cost is at the mercy of whatever deteriorating level of service their carrier may provide for the term of the contract.
Competitive Reputation – While Freeyourmobile Services is a fairly “new kid” on the block, our reputation is growing quickly, our reputation for commitment to quality service is growing steadily, as demonstrated by the repeat customers, many word of mouth referrals, and the receipt of customer referrals from other local North Vancouver businesses.
Competitive edge of Technology – Freeyourmobile Services is one of the few vendors to offer the sale of factory unlocked phones, and a much wider than average selection of phones available.
Superior Level of Expertise – Along with our high degree of commitment to service, Freeyourmobile Services can offer a very much higher degree of expertise than can be found amongst the “sales associates” of major retailers.
Convenient Location – While Freeyourmobile Services has only one location at the moment, this limitation is minimized by the availability of our online operation at “www.freeyourmobileonline.ca”.
Business Stability – Although a fairly new and developing business compared to some long-established competitors, Freeyourmobile Services is definitely committed to the long term, envisaging slow growth which is carefully managed.
Quality of Product – In this regard there is little difference compared to competitors; we offer the same major brands as the competition, and our selection may often be wider.
Quality of Service - We feel that we offer a Major Positive Difference over the competition, with regard to quality of service.
Competitor Reaction – We believe that once competitors begin to understand the concept of “cell phone consultancy”, they are likely to start emulating the methods of Freeyourmobile Services.
Barriers to new competitors: The really big one is the availability of skilled labour. This is a very specialized field, and one that is learned from hands-on experience rather than from vocational school programs..
Competitive substitute: Really the only substitute for unlocking is the much more expensive option of buying a new phone each time client wants to change cellular carriers.
Competitive advantage: Overwhelmingly the competitive advantage enjoyed by Freeyourmobile Services is dedication to the highest degree of service in general, and, in particular, the provision of a Consultancy Service. We feel that all of the right elements are in place to sustain a competitive advantage.
Marketing Plan
Products
We will be offering two distinct classes of products; the tangible products including our phones and accessories, and the intangible products including our unlocking services, our cell technology consultation services, and additional related services which will be developed in the future as demands arise.
Tangible Products
While the phones we sell are industry-standard, brand name products, they are unique because each one is matched feature by feature to the precise needs of our clients.The range of our offerings will be continuously adjusted based on the features requested by our clients, and by the ongoing evolution of the technology.
Intangible/Service Products:
There are several different methods used to unlock cell phones. Many service providers use the “code” method, which requires the unlocking provider to obtain an unlocking code from a third party who specializes in this service. To obtain the code can take 24 to 48 hours, a delay which is beyond the control of the unlocking provider.
Whenever possible we try to use the “hardware” method of unlocking. Freeyourmobile Services has invested in specialized equipment which enables us to unlock the vast majority of phone models without going to a third party to obtain a special code. The turnaround time of the unlocking process is thus entirely within our control. We can offer almost immediate turnaround, and if required can perform the unlocking at the clients’ location of choice. This is just another example of how Freeyourmobile Services tries to go the extra mile to provide a higher level of service.
Our cell technology consultation service is, to the best of our knowledge, absolutely unique to Freeyourmobile Services in Metro Vancouver.
Pricing
Tangible Products
The tangible products include sales of new cell phones and cell phone accessories. Prices are generally set to be in line with the major competitors in the Metro Vancouver area. Margin is maximized by minimizing overhead and continuously searching for lowest prices from wholesale suppliers. Once again, the competitive edge is based on a level of personalized service unmatched by any other vendor in the area.
Services/Intangible Products
These services include primarily cell phone unlocking, but also include minor repairs, and the consultancy service.
Cell phone unlocking prices are based on the type of phone and the process required, as different phones require different procedures. In very general terms, unlocking is priced as follows:
older models $20, newer models $25, smartphones $35, specialty phones $45
Repair charges are negotiated on a case by case basis, as each situation is different.
The initial consultation to determine a customer’s individual cellular communication needs is offered as a value added service, and the customer is not charged, even if the consultation does not result in a new phone purchase. Other consultation services, such as working with corporate clients to develop a corporate communication program, would be negotiated on an individual basis.
Page - 2