Transcript PlanMagic Business AE

The International Business Bank projects Business Plan.
www.internationalbusinessbank.info
[email protected]
T: +46737224554
1
THE WORLD’S #1
INTERNATIONAL BUSINESS BANK
Worlds no 1 investment ®
© 2013 International Business Bank project. All Rights Reserved.
IBB
Business Plan
2
Welcome to International Business Bank project business plan. My name
is Jussi Myllymaa and this is my project.
Background to the idea came from a movie. At the movie clients get
banking service at their home, business, vacation location. So why no
banks offer this? Bank and financial people is very structured into their
business. Cant see much outside of it. This is maybe why bank business
have not changed much in hundreds of years.
I have spent some years into look what can be done. This Business Plan
will be the result of my studies, start a bank that is more secure, give
better and more secure profit for all.
How a bank works:
A Bank lend money from their clients or other financial institutions for
to lend or invest in clients or banks investments or projects..
Money rotation make money for the bank.
IBB
Business Plan
3
The risk is always when a bank need to loan funds for their own
operations. Today we know international banks have had 80-90% in loans
for to run their operations. This kind of thinking do not have any future,
now we all know that..
I signed a contract of 75 000 000 € investment summer 2012. The
investor run into this problem in person. The bank could not pay out
investors funds because the bank did not have that money.
What will be the difference with International Business Bank?
The difference is that we put the bank workers on the field. The
international bank will have a few bank offices around the world that
take care of the world wide operations.
The idea is to have bank representatives around the world. These
representatives will find new clients, will serve the clients, will take
care of all clients financial needs.
IBB
Business Plan
4
Our clients will get the best possible international bank service
that exist. Most part of the world in business banking the bank
visits is only for to sign documents. Also to talk and get new
products and information. Why a client need to spend entire day on
to go to their bank for sign some papers?
We bring the bank to the client for to sign the papers. Same time
representative get to know the client and clients needs,
representative may offer client better banking services, and sign
up client for other services.
The clients will be saving time and money, they can concentrate on
making more money.
IBB
Business Plan
5
Our clients will get the best possible international bank service
that exist. Most part of the world in business banking the bank
visits is only for to sign documents. Also to talk and get new
products and information. Why a client need to spend entire day on
to go to their bank for sign some papers?
We bring the bank to the client for to sign the papers. Same time
representative get to know the client and clients needs,
representative may offer client better banking services, and sign
up client for other services.
The clients will be saving time and money, clients can concentrate
on making more money.
IBB
Business Plan
6
Thanks to this system the IBB operational cost can be kept on a low
but very effective level. The effective ratio on each € will be very
high. We will get more own capital, that make it possible to give
better offer than other banks that need to lend money for to lend
them to their clients.
Representatives need to have 1 clients per week for to make some
money, and deposits over 1 000 000 €. We look in 2 years to have
more than 500 representatives around the world.
500 reps X 1 000 000€ deposit/1 client X 50 weeks =25 000 000 000
€/year. Off-course there will be institutional clients that go in for
lots of more.
Business goals / mission
7

As a International Business Bank project obtaining a permanent place in
a international marketplace is our primary goal. We wish to acquire
international renown within the next year.

We see it as our main mission to provide high quality, higher standards,
lower prices, and a better service to the targeted markets. Basic
corporate objective is reflected in everything that we do, which is to
contribute to the enrichment of the quality of Business people around
the world.
Business description
8

IBB will be an international business bank in the broadest sense of the
word. We will offer best possible service and market line of worldwide
International Bank services. As more and more of the business
population gain an interest in International Business Bank project the
demand for our concept has also increased.

To meet the expected demand for International Business Bank, as well
as The IBB World Wide service concept, IBB is seeking the financing
necessary to add launch IBB project worldwide.
Business formation
9

The company will start when funded. The company form is going to be,
Joint Stock Company, according to Austrian Banking act rules.

Registration will be in the country of Austria under city of Vienna,
Austria, EU. In this include as well registration off bank offices in
Hong Kong, China, and Latin America. This also include client and
representative service office in Southern Spain.

The company will employ 45 people in the head office, including The
management team, who will run the project, +15 person in the service
office, and total 10 persons in other bank offices.
Business philosophies/identity
10

By combining experience and great service IBB will be able to create a
high satisfaction level.

IBB will use advanced technology and offer a high quality product mix.

Our corporate philosophies are embedded in our customer oriented
management and operations, providing excellence in our products and
services, continuous efforts to expand our future existing market and
create new markets, commitment to care for end users by providing
even better service after sale, pursuit of further globalization of IBB’s
business fostering positive growth through diversification. These
philosophies shall be incorporated at all levels of the company.
Location
11

We are planned to be located at Vienna Stock Exchange building,
Vienna, Austria, EU.

This location has been selected because of its low price, top location,
esteem, size, visibility, and image.

The world head office will be situated in a main business district.

The location will provide our employees as well as our customers with
the necessary accessibility.
Geographical markets
12


The primary market will be local and regional and international
due to location of the business in the center of town close to the
business district.
IBB's international activities are enhanced through a range of cooperative relationships with entities such as:

Legal & agent networks

Governmental & diplomatic links

Client branch & trade bodies

International Chambers Of Commerce & credit reporting agencies

Major financial institutions
Vision of the future
13

The planned company can look forward to a promising future, because
of:

our experienced staff,

our careful planning,

the potential of the targeted market segments,

And worldwide representative network.

Our pre-market research has shown the market to have plenty of room
for a business such as IBB intends to run. The management style is
flexible, progressive and energetic.

Enthusiasm of the management as well as the employees will greatly
stimulate the envisioned growth.
Main objectives
14
Business objectives

Increase annual revenues with min. of 50% over the next 3 years

Company growth by 250 %

Become established as International Business Bank_
Financial objectives

Obtain financing in the amount of € 75 000 000
Marketing objectives

Start a / Improve the company presence on the Internet

Expand marketing reach

Increase brand name recognition
Measures and Targets
15
Revenues
• Stimulate company growth
by grow the international
representative network
Measures
• Optimize office locations to
the market needs (Max 5
offices)
• Improve sales force
efficiency
Targets
Revenues + 50% over 3 years
Gross Profit
• Improve existing
partnerships with other
financial institutions.
• Increase productivity by
increasing the
representative network
Gross profit margin +187 to
280 M €.
Expenses
• Open up office in
Vienna, Austria.
• Open up office in:
Hong Kong, China.
Operating cost 25% to
50%
Gross profit margin + € 187 500 000 – 280 000 000
Key advantages
16
IBB is becoming a recognized industry leader because of the following key
advantages:

A unique e-commerce marketing proposition strongly positioned.

Established partnerships with International Banks & Financial institutions &
brokers.

Senior management has significant International Banking experience.

Maintains a high-quality real time financial information system.

IBB has consistently set and achieved financial measures in the areas of liquidity,
and profitability and is positioned well for future growth.

IBB has no long-term debt.

IBB will be a closely held corporation with the potential to raise additional equity
funds. While the founder(s) want(s) to maintain a majority control, they is
interested in raising capital by selling stock to management, key employees and
area business people and investors.
Strategic alliance & positioning
17
Strategic positioning

IBB differentiates and financial industry positions its business from the
competitive offerings by build a reputation in servicing the financial industry with
its products, providing International Business Banking services, its concern for the
environment, and its service (a no-questions-asked money-back guarantee of all
products sold and the best-trained service personnel in the category).
Strategic alliance

IBB will be successful in establishing alliances with International and local
Banking companies for collaboration. IBB will co-operate with Mayor world
financial institutions. IBB will be in charge of choice of product mix, purchasing
and supply. The prices are determined by IBB / the co-operation.
Sales
18

IBB estimates first operative year sales to reach € 100 000 000, with net
earnings of € 15 000 000 (15 percent of sales). Sales are expected to
reach
€ 2 500 000 000, with net earnings of € 500 000 000(20
percent), by the end of third operation year.
Sales
19
Sales MOU: Representatives will search and bring in clients.
Representatives need to bring in at least one client a month to continue as
representative. If representative bring in less than one client / 1 000 000 €
a week, representative will drop in the reward system, result much less
paid. Lots off already existing representatives have a ready network of
clients. IBB also have a network of clients, worth: +3 Billion €.
All numbers are based on that each representative bring in one client
each week that deposit a minimum of 1 000 000 €. On this we will off
course get clients that want deposit instruments, commodities' and more.
Main cash flow is calculated of amount of representatives each year x 1
client a week, = cash flow. On this will also be cash flow from services.
Licenses
20
IBB will obtained the following required licenses:




Full European Bank license
Hong Kong off-shore bank license, after 3 year full license.
Brazil, Full banking license.
Costa Rica, Off-shore banking license.
Directors
21

The Board of Directors consists of 3 President, and they have the
principal responsibility for fulfillment of the company's mission and the
legal accountability for its operations.

Our Board of Directors further ensures adequate human and financial
resources and actively monitors and evaluates the organization's
executive director/CEO, as well as the overall financial results.
Directors
22

The Board of Directors experience

Only for investors
Management
23

IBB’s management team has direct knowledge of the industry,
extensive research experience, and professional administration
skills. Our team includes the presidents and professionals with
International Banking experience.

IBB’s offers all its officers competitive salaries usually augmented
by share options which are exercisable at the end of first
operational year, and are contingent upon maintaining tenure for
5 years. These options represent 5% of the issued capital of IBB.
Officers together can also subscribe for €3 750 000, in equity.
Funds required
24

International Business Bank need: 75 000 000 €uro for to start and run
operations. 25 000 000 €uro is a deposit for to get EU license, Honk Kong
license, Brazilian license, Costa Rican license. In some of countries part of the
license amount need to be deposited in that countries central bank. Other
countries need to have deposited the amount on any top bank. The amount
need to be fully available for the Directors of the bank.

Deposit funds will be returned after bank license is granted.

The directors want 3 year guarantee salary. This salary will be deposited in the
bank, and will be connected to performance and result of the management
teams work. Also there will be a trial time in hiring the management team.

We are aware of that there will be lots of High Professionals that will apply for
to work in the IBB when all is operative.

We have select the best and cheapest options for the world head quarter.

We have also the cheapest and best options for other head quarters.

Plan is to get operative as fast as possible..
Marketing
25
The marketing service concept of IBB has been selected as follow:
1.
The representatives will search for new clients
2.
The representatives will serve the clients
3.
The representatives will also be part of marketing.
With the information we get from representatives, market department will
tailor made the market campaigns of each clients needs. Representatives
will present these to the clients in person and sign them up. We will also
use social media, e-mail campaigns to clients that signed up for newsletter.
We will also be some times in worlds leading financial magazines. Main
marketing tools will be representatives, internet and socialmedia.
Product mix
26

Products

Deposits, CDs, Asset management

Markets cheapest international transfer

Credit cards / Fast credits / Financing

Bank guarantees /Letter of credits

Financial instruments / Commodities

Financial platforms

Swap

Exchanges services

International legal, & accountant services

Provide international investments with the local knowledge

Mergers & acquisitions
Market analysis
27
At IBB the following tools are used to analyze and to explore the market:

inquiries with existing and potential customers

request information from branch organization and / or union

collect reports of international / national bank market_

collect information of strategy and operation of competitors

The size of the Financial service market worldwide is estimated at € Trillions
annually. IBB will captured about 1% of the worldwide market.

Mr. Jussi Myllymaa undertook substantial research prior to start IBB project.
The focus of this research was to see the needs of this kind of service in the
worldwide market. Result was very positive.
Market analysis
28
Market share objectives
The number of direct competitors is estimated at 10. Competitor A: HSBC and
competitor B: DB are to be considered market leader.
Market coverage
Our clients will originate from many business sectors such as:

Banking & insurance
10 %

International trade
10 %

Single wealthy people

International business corporates
50 %

International trading companies
20 %

Others
5%
5%
Marketing goals
29

An important part of IBB’s marketing goals and strategies is maintaining its
level of quality and associated services. IBB has decided on a strategy in the
International market is at least that of a top 10 bank.

IBB aims to have an turnover in 2017 to € 65 500 000 000 and to realize an
annual increase of at least 25 % in the next 5 years. We also wish to further
build up the company’s reputation in the targeted market areas. Maintaining /
lowering the cost at its present level is also a primary goal.

To realize a higher gross profit margin of up to 250%.

Steadily increase turnover by at least 100% each year for the next 3 years.

Eliminate complex and time-consuming procedures.

Enlarge the recognition factor of the brand name.

Increase revenues.
Marketing strategies
30

Increase the worldwide representative network to 250 countries and
territories.

Increase the collaboration network of financial brokers, institutions.

start promotional actions reaching more potential customers.

sponsor non-profit organizations, charities and community programs.

keen sales communication.

keep in contact with existing customers.

market research projects to determine target groups.
Personnel and the marketing concept
The employees must be able to carry out the philosophy and the strategy of the
company. This will be emphasized until the strategies are carried out as
planned and the results are obvious. All new strategies are to be forwarded and
discussed with the employees on a regular basis during the weekly & monthly
meetings.
Competitive research
31

The strong points of IBB in comparison to these competitors:
product line 1: Representative service
product line 2: Worldwide local knowledge
product line 3: Flexibility
These strengths can be maintained without/only with modification of the
current strategies.

The weak points of IBB in comparison to these competitors:
product line 1: Management
product line 2: Organization
product line 3: Own market platform
These weaknesses form [a/no] threat on the short term, {but most definitely on
the longer term}.
Pricing strategy
32
Pricing strategy
In the IBB branch of business there is an overall tendency to consider the
competitive offers as well as the degree of acceptance by the customers when
planning a pricing strategy. IBB follows this tendency.
Pricing policy
IBB’s products are priced at a slight premium over competitive offerings.
Extensive promotional activity, including free trial, free account set up help to
ensure that customers perceive that they are receiving higher quality products
and prompt, courteous service in exchange for the slight premium in price.
Our prices are calculated as follows:
The IBB will be a bank, and bank main income come from commissions.
IBB charge commissions from all services. However for
institutional clients there will be less charges and fees.
Sales management
33
Sales promotion plays an important part in the role of the modern international
banking services. The demonstration, sales, of the products goes together
with maximum customer loyalty.
To be able to fulfill such a function we need:

to be accessible

the proper product mix

the correct levels of pricing

to present the products (correct merchandising)

professional and ready to please personnel
The best method to sell a customer is by personal contact. In order to get the
customer interested and motivated we combine an advertising and
promotion plan with active acquisition.
Distribution
34
The distribution function of IBB consists of the following:
1.
Banking services
2.
Financial services
3.
Broker services
4.
Business services
5.
Legal services
Main distribution line will be through worldwide representative network.
Other distribution will be through worldwide collaboration networks,
internet & social media.
Distribution channels
35
Distribution channel
Sales in
Million
€uro
Percent
total
sales
Rank
in sales
Average
sales per
month
Million
€uro
Own sales force internal
600
3
50
Own sales force external
900
2
75
Representative network
1200
1
100
Representative network
120
4
10
Independent brokers
12
6
1
Other financial institutions
48
5
4
Independent non reg brokers
12
6
1
Other channels
12
6
1
Sales on commission
Service and Support
36
These have the potential to contribute to the gross profit margin of IBB
and are therefore part of the marketing strategies. We consider direct
contribution to the size of the gross profit and direct contribution to the
reputation of considerable importance.

Our client service department has to maintain and serve clients 24/7 in
the worldwide clients main languages..

Other is our representative service. Our representative department will
also serve worldwide representatives and country leaders 24/7.

Each country will have a country leader that will take care of main
institutional clients in the capital. Country leader will also be in charge
of the representatives in his country. Top representative will be country
leader.
Mobile technology
37
IBB will use latest technology in mobile banking, as well on the field. Representatives will use
mobile app, or mobile website for to register new clients, and for to show clients our services in
each clients own languages.
Representatives and other field workers will use IBB own mobile app system. Clients will also
have access to a secure app system. The app will support forms data, images and even videos.
All our mobile information flows are password protected using LDAP login technology, are
encrypted using the latest encryption standards, are secured using the HTTPS protocol and use
the highest level of remote device management available today.
Data is stored in XML and CSV formats to ensure compatibility with the back-end server as well as
popular data formats widely used.
IBB will be using the following providers and services:

Each representative use their own mobile with IBB representative app

IBB field workers will use international good reputation operators.
Operations
38
IBB’s identity
The identity of the company will be made clear by its interior furnishings,
decoration, its shop window(s) and outside sign (board). Because our products are
_International Financial services_ the design will be modern / classical / high
tech/ and this will be reflected in our services and marketing.
Operating hours
The business will be 24 hour a day, 7 days a week, and will NOT be closed for
Christmas, Thanksgiving, the Fourth of July and other national holidays.
Location
We are going to be located at Vienna Stock Exchange building, Vienna, Austria,
EU. This location has been selected because of its low price, top location,
esteem, size, visibility, and image. The office will be situated in a business
district. The location will provide our employees as well as our customers with
the necessary accessibility.
Operations
39
Premises
IBB will in the beginning rents,1400 m2 building(s) with a combination of Bank
office and VIP space. Our major investment in equipment is for servers, PCs,
copiers, net servers, security system, office furniture's, VIP department design,
furniture, communication equipment, mobile communication equipment. This
equipment will be leased & owned.
Security
The office will be outfitted with a state of the art security system in addition to
smoke alarms and a sprinkler system. This will include a CCTV (closed circuit
television) system for surveillance of the entire store, as well as all corridors,
elevators and stock area. Hand picked security guards will be securing High level
clients security.
Access
Visitors will be picked up at airport. VIP will be flied in.
Advertising and Promotion
40

We will have an advertising and promotion expenditures10% of the
annual turnover.

The main promotion and advertising is direct contact with the clients.
Our representatives and country leaders will contact clients directly,
give possible clients all necessary information. Sign up clients.

In the projections in 2014 10% and in 2017 5% of the annual turnover is
reserved for advertising and promotion goals. IBB’s promotional plan is
diverse and includes a range of marketing communications. We will have
a Grand Opening on date which will be advertised in local newspapers,
and local radio channels. To support expansion efforts, IBB considers
using popular media, such as TV, radio, newspapers and the Internet to
advertise.
Advertising and Promotion goals
41
The following goals and strategies will be used for the next 3 years and are
to be implemented in a detailed advertising and promotion plan.
1.
2.
3.
Increase of initial sales or requests for a quo
Strategies:

Five trade show per year

Direct marketing: per customer group and per product type & target

Regional & International advertising campaigns
Increase of repeat sales
Strategies:

bimonthly leaflets to regular customers (by e-mail)/sms/mms

planned repeat visits outside sales force
Enhance the company name within each segment of the market
Strategies:

encourage regular customers to spread your fame

keep the press informed, special media department
Advertising and Promotion goals
42
Trade shows
Company representatives attend and participate in several trade shows such as
International financial & banking exhibitions. IBB Will also arrange own exhibitions and
invite collaboration companies and groups.
Print advertising and article publishing
IBB’s print advertising program includes advertisements in retail trade publications
such as WSJ. NY Times. Times. Billionaire. Banker. And many others direct mail pieces,
brochures and other print media.
Public relations
Press releases are issued to both trade journals and publications such as local and
regional newspapers, retail magazines, retail directories and _some of world biggest
financial news paper.
Internet
In line with current trends IBB is developing a Web site through which it will be
possible to order and to obtain information about the products. The Web site will offer
video and slideshow presentations to enhance the visitor’s experience and to stimulate
an online banking services. The client can chat by various different systems direct with
the sales department.
Advertising and Promotion goals
43
The media mix next year
Media
Expenditures
p/year
Frequency
of ad
Newspaper
500 000
Weekly
Magazines
100 000
Monthly
Radio
Direct mail
0
250 000
non
Weekly
Advertisement
size
SWOT analysis
44
Strengths
Weaknesses
Business climate
Growth in consumer spending is
fueling growth in visitor numbers.
An overcapacity in the industry
has resulted in a deterioration of
trading conditions.
Internal organization
Flexibility
Professional
Political factors
Non
Non
Social factors
Flexibility
Low consumer expenditure.
Workforce
Flexibility
Capacity in high peak.
Economic
Our International strategy is
flexibility. If some area suffer
from crisis, we can switch over to
other area.
Due to overcapacity in the sector
profit margins are squeezed to
the minimum.
Service
Direct client service
Non
Problems and Possibilities
45
Problems /
Threats
Possibilities /
Opportunities
Economic
In times of recession people may
be inclined to spend less.
Offer monthly target promotions.
Internal organization
Collaboration
Fast changes
External factors
New laws
Flexibility (Fast changes)
Personnel
Finding qualified personnel can be
a tedious task.
Motivate current personnel.
Product line
The mix of product line will always
be according to clients needs. The
product line may not in the
beginning be so large as
competitors.
During the time we will offer larger
product mix, with more products
to our clients. This will increase
put us on higher level than
competitors.
mix
price
quality
customers
competitors
Management and personnel
46
Age
Experience
in years
Highest
qualification
Salary
€/month
Management
President
President: Bank of America
150 000
President
President: Euroclear
150 000
Jussi Myllymaa
Financial market & sales
leader
10 000
Dr: J
Doctor
10 000
PK
High IT Inventor
10 000
AS
Educated by MS
5000
See CV
8000
Head of Representatives
IT Service/Support
Sales & Marketing
WMS
Date
join
ed
Management and personnel
47
Personnel analysis and expenditures first operative year.
Total number of staff
45
Total number of sales staff
20
Total number of non-sales staff
150
Total expenditures for staff
€ 2 160 000
Expenditures for the sales staff
€ 960 000
Expenditures for the non-sales staff
€ 150 000
Expenditures for the sales staff in % of sales
0.5-2%
Expenditures for the non-sales staff in % of sales 1-5%
Administrative organization
48
The administration is done by Administrators. They will also produce the annual profit and
loss account and balance sheet as well as file our tax return. The day to day bookkeeping is
done by computer.
Contingency
In the event anything might occur that prevents the director/the proprietor to conduct
his/her business the following persons will ensure the continuation of the company:
President and Vice Presidents.
Information
IBB has systems in place to provide the appropriate information needed by staff and board
to make sound financial decisions and to fulfill IRS requirements.
Accounting principles
The projections have been prepared using generally accepted accounting principles that
IBB expects to use when preparing its financial statements. IBB maintains a perpetual
inventory method, whereby the inventory account is updated with each sale and purchase.
We will know the value of our inventory at any given time during the year. We take a
periodic inventory at the end of the year, and adjust the purchase, inventory and cost of
services sold accounts at that time. We write the inventory down at this time and make
one entry to record the inventory value less the write-down.
Insurance
49
IBB will have suitable insurance coverage which is periodically
reviewed to ensure that the appropriate levels and types of
coverage are in place.

Fire insurance

Building insurance

Liability insurance

Burglary & dishonesty insurance
Risk management
50
Risk management is managed by Presidents and Vice Presidents, and also in digital
way. All transactions in and out will be digitally monitored. Mister AS
responsibility will be to monitor all transactions, deals, and management team.
Mister AS will be in contact with Jussi Myllymaa many times during the day. Mister AS
will monitor all offices around the world, and will travel when needed.
Mister AS will collaborate together with PK, the organization will be hand picked,
and will have the highest security level.
Each department will be digitally monitored. Each leader need to know exact what
their workers do, when and why.
Everything will be digitally monitored for to secure that no leaks, risk, or crimes.
Management team is first responsible for any risks, managers need always think
about the risks when they make any decisions in the organization.
Financial plan
51
Economy
In €uros
Cash Flow
operation activities
financial activities
Investment activities
Net Cash flow =
Operational cost
Investments
Operational total =
Ending Balance =
2014
+800 000 000
+80 000 000
0
+880 000 000
2015
+20 000 000 000
+2 000 000 000
+10 000 000
+21 980 000 000
-100 000 000
0
-100 000 000
+760 000 000 +21
+60 000
+6 000
+500
+65 500
-150 000 000
-150 000 000
-300 000 000
680 000 000 +65
2016
000 000
000 000
000 000
000 000
-200 000 000
-200 000 000
-400 000 000
100 000 000
Timeline
52
From the day project get funded, it will take maximum 60 Days for the company to be officially
registries. At same time investor/s and Jussi Myllymaa will get their shares.
In 70 days we will have the IBB head office ready for Grand opening.
In 90 days we plan to have offshore banking facilities opened (Latin America).
In 120 days we will have second offshore bank opened (Hong Kong).
In 6 months we will have full Austrian Banking license.
In one year we will have full European Banking license.
In 3 years we will have full Hong Kong Banking license.