BUSINESS PLAN FOR ENTREPRENEURSHIP

ON Car parking and parking garage development

BUSINESS PLAN

LOCATION ADDIS ABABA CITY NIFA SILK LAFTO

SUB-CITY 013 WOREDA
FDT ENTRPRISE

Ap,2025
Addis ababa Ethiopia
INTRODUCTION

 Mission
Our Mission is to provide global standard and parking place at affordable
price to the customer with end to end solution and build our broad base as
qualified service provider. Moreover to be the leader in providing Car parking
solutions for Public and Private use across the Addis Ababa city.

 Vision
Our clear, visionary standards are helping us to develop innovative products
and services in the car park management sector. Our ABACUS product line
can be a technology leader about integration and networking. We will offer
our customers the best service quality and excellent local & global customer
services.

We shall make your car parks ready for the future.

To excel to be the BEST Car Parking Solution Provider across the Globe, by
offering Optimum but Simple Solutions, Utilizing Minimal Energy and at par
with latest Technologies Globally.

 Our Objective

 Efficiency
A key factor in parking garage development is always building size.
Compared to conventional parking facilities, Automated Parking Systems
require an area approximately 70% smaller and a 50% smaller volume on
average to park an equivalent number of cars. This will give us lots more
options such as adding more parking spaces, utilizing more area for non-
parking purposes or green spaces, etc.
 Feasibility & Profitability
Car parking and parking garage development often have a direct effect on
the feasibility of a real estate project. The design flexibility of Automic
Parking Systems like us can help in terms of both feasibility and profitability
by enabling parking to be in areas where conventional parking won't fit. The
possible locations for APS are virtually unlimited: above ground,
underground, freestanding, underneath or integrated into existing buildings
and even very narrow or irregularly shaped areas.

 Eco-Friendliness & Sustainability

Automated Parking Systems can reduce CO2 emissions by 85% or more by
eliminating the need for cars to drive and idle while searching for parking
spaces. For parking garage development, APS typically require fewer building
materials, a much smaller excavation volume, shorter construction time and
reduced construction disruption. For the ultimate in sustainability,
Automated Parking Systems are most often the least expensive option for
underground parking garages.

 Inherent Safety & Security

The safety and security of cars, drivers and pedestrians is always a priority
for us. Compared to conventional parking garages, Automated Parking
Systems are inherently much safer and more secure because they remove
driving and pedestrians from the parking area. No driving means no car
damage or possibility of stolen cars. No pedestrians mean no need to walk
through dim, shadowy parking areas and no opportunity for theft, vandalism
or even more worse.

 WHY DO WE NEED AUTOMATIC PARKING?

 Small parking space in Bangalore

Currently large parking space is required, added to shortage of Parking
space in MG Road areas, hence cars are being parked on Roads/ Cross
Roads, which in turn leads to congestion and blockage of traffic flow.

Solution: Optimum Utilisation of underground/ above ground space and build

multilevel parking spaces.

 Inconvenience
People visiting MG Road areas have to keep searching for Parking slots,
thereby wasting time.

Solution: People can directly drive into our parking location and walk off and
retrieve It within hardly 90 secs.

 Increase in Traffic density

With increase of vehicles on the road, year on year, and lack of parking
infrastructure, roads Get choked.

Solution: Convert all the existing parking lots which are of single tier parking
to Multilevel mechanized so that it can cater for any increase of traffic
density in future.

 High prices of real estate

As real estate price is very high, all the builders will try to utilize the space
for Commercial application rather than Parking.

Solution: With our idea spaces being provided, real estate revenues can also
be increased.

 Theft / Vandalism of cars

As cars are parked in Open roads without any Security, this leads to theft or
damage of cars.
Solution: All the parking lots will be provided with CCTV, Access cards for
parking and retrieval and continuous monitoring of the parking lots, hence
this issue can be 100% addressed.

 High Pollution
Vehicle volumes are increasing, and people keep searching for parking lots, which in turn leads
to lot of emission and consumption of fuel.

Solution: Lesser emissions (Eligible for Carbon credit as per KYOTO protocol) and lesser
consumption of fuel.

 Key to Success
We will use High-performance thermal printer for problem-free ticket issue
Barcode scanner and EasyMove equipment for contactless access and simple
processing of season parker cards

Flexible payment processes due to acceptance of coins, banknotes and

credit/debit cards

The Government had made a new rule from December 1 2017 there would
RFID mandatory for all the vehicles which mainly included four wheelers and
the government is working on implementing the same on two wheelers.

RFID - Radio Frequency Identification (RFID) technology for making toll

payments directly from the prepaid or savings account linked to it and is
affixed on the windscreen of the vehicle and enables the commuter to drive
through toll plazas, without stopping for cash transactions.

Same concept would be used in our parking system where the entry time
would be recorded and on the vehicle parking exit the amount would be
deducted from the tag based own the number of hours parked.

By using this technology and constructed such type of a sophisticated

parking system the aim of our company is to reduce traffic on the road
where usually parking is done in a in appropriate way and causes problems
for other commuters. There would be a reduced No parking of vehicles on
the road. And the vehicle owners tension about the vehicle ,like what
happened to the vehicle and other tensions would be reduced. A reduced
congestion and a vehicle free passage could be created in front of the
shopping areas. There would be cycles as well as eco friendly or CNG
powered vehicles to drop from the parking spot to the desired shopping spot.
The company is planning to make the entire system run on solar energy for a
backup the normal electricity supply would be considered.

Market Overview
Smart parking systems help the vehicle user to find the nearest parking
space and provides information on the availability of parking slots in the
parking area. The smart parking systems market includes sensors, real-time
data and smart-phone-enabled automated payment systems that allow the
users to reserve parking slot in advance. The systems identify the exact
state of a parking space, if vacant or occupied, and examines and transmits
information to various sources, which include mobile applications and web-
based applications.

The parking systems involve a wide range of technologies and equipment

that suits to various parking lots. The parking technologies can be designed
and modified as per the requirements of various parking spaces available.
Residential buildings and complexes have limited flow of passenger cars and
SUVs although places like hospitals, shopping malls and corporate hubs have
many vehicles coming and exiting from the parking areas on a regular basis.
Therefore, the demand for smart parking systems is increasing significantly.
The smart parking systems uses well-improvised technologies and
equipment for consistent operation during the forecast period (2019-2023).
The systems are expected to expand its reach from parking at shopping
malls and company parking to various multiple platforms, including public
parking by giving parking information, based on cost in real time.
Additionally, smart parking systems play a major role in reducing the CO2
emission and help traffic movement in the city more efficiently.
Market Dynamics
The parking sensors have emerged as the largest segment in the global
smart parking systems market. In 2016, Asia-Pacific was among the fastest
growing markets, due to growing awareness of end-users about smart
parking systems in the region. With the sudden surge in the number of
passenger cars in China and India, initiatives taken by different state
governments such as smart cities mission is expected to develop better
parking and traffic management solutions in India. Due to huge adoption of
parking management systems in different cities of Europe, the region
dominated the global smart parking systems in 2018. Under the market
segmentation by technology, the parking sensor dominated the market as
compared to other components in the global smart parking systems market
in 2018; however, the steering angle sensors is growing at a faster rate than
other technologies.

Market Trends
The key trend observed in the global smart parking market includes
increased consumer preference toward comfort and luxury that leads to high
level of competition between road side parking to offer advanced driver
assistance systems. The systems allow users to replace its daily, manual
cash payments with account invoicing and application payments from their
phone. The smart parking systems are being widely adopted by major cities
and universities, especially in Europe and North America. In Europe and
North America railway platforms, airports, public places and corporate
complexes, authorities are planning to set up smart parking systems for
better management of their parking areas and heavy traffic congestions.

Growth Drivers
The government initiatives toward the adoption of smart parking systems is
one of the major factors driving the smart parking systems market. The
demand from upcoming smart cities is expected to drive the global market.
With the growing number of hospitals, shopping complexes and corporate
hubs, the demand for smart parking systems is increasing. Another
important factor driving the market is easy accessibility of smart parking
systems, its economic nature and ability to reduce carbon footprints in the
atmosphere. It accesses and maps the status of vacant parking spaces from
any location through mobile-based apps or web browser. Thus, it significantly
reduces the risk of finding the parking spot and also reduces unnecessary
travelling time of vehicles across filled parking slots in a city. The smart
parking systems reduce CO2 emissions in urban cities by bringing a plunge
in search for vacant parking lots by car owners and helping them in properly
managing their parking availability and reducing traffic congestions.

Growth Restraints
The major challenge associated with smart parking systems is lack of
standardization and the high set up cost, which requires huge investment
and restricts the growth of the smart parking systems market. Additionally,
lack of coordination between software developers and hardware providers
affects the adoption of smart parking systems; however, to overcome these
issues, the component manufacturers have significantly reduced the costs of
sensors and hardware-based solutions, allowing cities and companies to
gather detailed new data on transportation patterns.

Competitive Landscape
The global smart parking market reported a consolidated structure in 2016,
where the market is led by a few global players. The key regional players
operating in the market include Corporation Group-Park Assist.

Market Segmentation
By Systems
Guided
Smart park
By Technology
Ultrasonic sensors
Radar sensors
Image sensors

By Component
Hardware
Software
Services

By Solution
Security and surveillance
Valet and parking reservation
License plate recognition

By Vertical Type
Government and municipalities
Commercial institutions
Corporate institutions
Transport facilities

GEOGRAPHIC SEGMENTATION

By Region
Urban
Semi - urban

Marketing Strategies

SWOT Analysis:
Strength:
1. Presence of lot of vehicles looking for parking spots.
2. Unique concept.

3. Has no competitors in local areas.

4. Has lot of offices and other utilitarian buildings in surrounding areas.

5. Decent investment capacity.

6. Located in an easily accessible area.

7. Good security systems and fire control systems.

8. Availability of technically skilled people.

9. Very soon government support in various forms.

10. Great for restricted parking spaces.

Weakness:
1. Parking is usually viewed as high crime rate area.

2. Non availability of technical equipment’s and staff at the right time to cater greater
demand.

3. Non availability of Government help at the right time.

4. Limited space.

5. Presence of namma metro.

6. Limited flexibility in pricing.

7. Government regulations.

Opportunities:
1. Growing demand for parking space.

2. Growing demand for security of vehicles.

3. New technological innovations.

4. Availability of Government support as they are trying curb down

parking problem in that area.

5. High potential area providing good demand, which enables expansion

of business.
6. National and international expansion.

Threats:
1. Entry of foreign players.

2. Limited financial funding.

3. Development of new improved system.

4. Insurance costs are increasing continuously.

5. Increasing good specialised service might give way for increase in

price.

Five Forces Model:

Bargaining power of Buyers:
1. The bargaining power buyers will be due to small differentiation in
service offered.

2. They can bargain in terms of price.

Bargaining power of supplier:

Bargaining power of suppliers is quite high in this case because, our
company needs constant human resource, spare parts and other
technological assistance etc.

Threat of new entrants:

As there is lot of restriction for parking spaces, Threat of new entrants is
relatively low. And moreover capital requirement is quite high and the
adequate technical support is not easily available, we can say that new
players will behaving hard time in entering this sector.

Threat of substitutes:
1. It is quite high as lot of people park their vehicles on road side.

2. There is also presence of namma metro and other public transport

terminals, where parking facilities are available.

3. People can also use metro and other public transports to come to M.G.
Road.
Rivalry:
1. Our major business is to provide secured parking facility. There are
other companies who offer such kind of facility. These companies also
give updates on availability of parking spaces by joining forces with
local players. But we don’t join with the local players, which gives a
good opportunity for others to join forces and become competitors.

2. So, rivalry will be high.

Marketing Plan
Smart park intends to maintain an extensive marketing campaign that will
ensure maximum visibility for the acquired units in its targeted market.
Below is an overview of the marketing strategies and objectives of the
Company.

Marketing Objectives

 • Establish relationships with other real estate brokers and agents

within the targeted market.

 • Implement a local campaign with the Company’s targeted market via

the use of flyers, local newspaper advertisements, and word of mouth.

 • Develop an online presence by acquiring accounts for major online

real estate portals.

Marketing Strategies
Ongoing parking space renter marketing will be the most difficult portion of
the marketing strategy. This task will be accomplished through the
business’s broad marketing campaign throughout its targeted market.
Primarily, Mr. Tesfaye , Dejene and Fikadu intends to use local real estate
brokerage firms to place vehicles with the Company’s retail focused parking
garage. In addition to using a real estate broker, Mr. Tesfaye , Dejene and
Fikadu intends to develop his own marketing strategies that will further
increase the visibility of the business’s retail store units. This is especially
important with the current real estate market environment. Smart Park will
also use an internet-based strategy. This is very important as many people
seeking real estate for parking use the Internet to conduct their preliminary
searches. Mr. Tesfaye , Dejene and Fikadu will register Company and its
initial Parking Garage facility and subsequent properties with these online
portals so that potential renters can easily reach the business. The Company
will also develop its own online website. The Company will maintain a sizable
amount of print and traditional advertising methods within local markets to
promote the property that the Company is renting.

And the structure of the smart park will be as shown above

Financial Plan
Investment:
The company preliminarily will be started with the investment from our partners to an extent
and also we the promoters owe our fixed assets to the banks through which the lump sum of
amount can be gathered and also upon the completion of the assembling unit and also upon the
going of the business on track we will also owe our company’s fixed assets and enter into the
money market for short term loans which may be used for the working capital.

And the investment for the company would be around 3 crores in the beginning and as send
earlier Mr. Tesfaye , Dejene and Fikadu will see the real estates and the cost of the land and in
return he would be getting 33 percentage shares of the company and the remaining cost of the
company will be maintained and contributed by us and also through the some financial
institution and as it is also involved the government we would also be getting the amount for the
government as well and we are expecting an annual revenue growth rate of 6% per year and the
company will not seek debt financing in the first three years of the operation to avoid the debt
trap or for the betterment of the company and the company revenues can change depending on
the general economic climate of the real estate industry. In times of economic recession, the
Company may have issues with its top line income and rental income may decrease. However,
the highly recurring nature of the smart park vehicle space income streams will ensure that the
business is always able to maintain profitability and a positive cash flow.

And we will also get the investment from the competition which our team is selected to finial
round which is held in Dubai which promotes the startup company around the world and the
investment for the project is decided and the division of the shares of the company is done
internally and which would be given to the public when the company is incorporated because it
is a confidential matter which cannot be disclosed to the public before incorporation of the
company

Breakeven Analysis:

Our assumption is that per month running costs which include our full payment of salaries, rent,
app maintenance and an estimation of other running costs. Our sales will be never be low but the
profit would be low initially and with the passage of time the profit of the company will be
increased and expenses will be decreased by analyzing the threat. When there is breakeven point
revenue and expenses will be equal and from there profits will be increased.

And we are expecting the break even point if started in 2019 would be achieved in late 2020
around December or early 2021 and we are very confidence about that and we will try to bring
the break even point to late 2019.