BUSINESS PLAN

TABLE OF CONTENTS
Your business plan is divided into the following sections:
BUSINESS OVERVIEW
Description of the Business ........................................................................................................... 2
Major demographic, economic, social and cultural Factors .......................................................... 2
Major Players ................................................................................................................................. 2
Trends in the Industry .................................................................................................................... 2
Government Regulations ............................................................................................................... 2
THE MARKET
Market Segment ............................................................................................................................. 3
Products & Services ....................................................................................................................... 3
Pricing and Distribution ................................................................................................................. 3
Market trends ................................................................................................................................. 3
Implications or risk factors ............................................................................................................ 3
THE COMPETITION
Competitors and type of competition ............................................................................................. 3
Competitors' Strengths and Weaknesses ........................................................................................ 3
Competitive advantage ................................................................................................................... 4
SALES & MARKETING PLAN
Customers ...................................................................................................................................... 5
Suppliers ........................................................................................................................................ 5
Advertising & promotion ............................................................................................................... 5
Pricing & distribution .................................................................................................................... 5
Customer service policy ................................................................................................................. 6
OPERATING PLAN
Business location & requirements / advantages / lease details ...................................................... 7
Equipment / technology / R&D / environmental aspects ............................................................... 7
HUMAN RESOURCES PLAN
Key employees ............................................................................................................................... 9
Policies & procedures .................................................................................................................... 9
ACTION PLAN
Action plan & timetable ............................................................................................................... 10
EXECUTIVE SUMMARY
A brief description of the project, the financing required,
and additional information that help explain the business plan ................................................... 11
BUSINESS PLAN
Section 1 Business Overview

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Section 1 Business Overview

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 BUSINESS PLAN
Section 1 Business Overview

BUSINESS OVERVIEW

Legal name: HomeSec Surveillance

Trading name: HomeSec Surveillance

483 Bay ST Toronto, Ontario

Business address:
Phone: +1416-925-0001 Fax: +1416-925-0010
E-mail: Info@homesecsv.com

Description of the Business

HomeSec Surveillance provides surveillance systems including digital cameras, analogue
cameras, transmission and storage products, network cameras, storage and control. Digital and
analogue cameras account for 80 per cent of the company’s gross sales while transmission,
storage products, network cameras, storage and control account for 20 per cent. HomeSec
Surveillance products are sold to customers around Canada, the United States and Europe. The
company was founded on October 4, 2000, and is headquartered in Toronto, Canada.

Major demographic, economic, social and cultural Factors

HomeSec Surveillance products are designed to meet the security needs of our customers.
Investments in surveillance systems continue to increase as the population in many urban and
suburban areas continues to grow. There is an increasing need for security cameras on public
streets, business exteriors, homes and inside office buildings. In the last two decades, business
and homeowners are increasingly feeling the need to ensure accurate and indisputable record of
events that occur in their business premises for safety as well as legal protection.
Crime, especially in urban areas, have always been a major source of concern for many people
hence the need to install cameras to prevent vandalism and deter crime. Our products also give
business owners the ability to monitor activities in the businesses remotely. The surveillance
cameras can record crimes and undesirable behavior in the premises and provide safety for
employees in firms that are more vulnerable to crime such as banks, convenience stores and
liquor stores.

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Section 1 Business Overview

Major Players

HomeSec Surveillance is among the top surveillance camera and security systems companies
operating in North America. Other companies supplying similar products include
BCDVideo, HIKVision, Dahua Technology Ltd. IDIS, Bosch and Mobotix AG among
others. Our company works with suppliers from Europe and China who provides parts
needed to produce our products. We also work with distributors who supply our products to
retailers in Canada, the United States and Europe. Some of our major clients include
Walmart, best Buy, Vision Electronics, NCIX, Canada Computers and Arrow Electronics
Canada Ltd. Our major distributors purchase products and sell them to both small and major
retailers within and outside Canada helping the company increase its revenue over the years.

Nature of the Industry

The earliest surveillance systems involved constant monitoring because the technology that
allows recording and storage was not available. The development of reel-to-reel media allowed
people to record surveillance footage and view it later although the system required magnetic
tapes that were expensive, unreliable and needed a lot of manual work. When digital
multiplexing was developed, several cameras would record at the same time, a factor that helped
to save time and money. The recent CCTV technology with internet-based systems has enhanced
the use of surveillance technology increasing its use significantly.
The video surveillance market was estimated at USD 36.89 billion in 2018 and is segmented into
software, hardware and services. The most dominant segment of the three is the hardware
segment which consists of monitors, cameras, footage storage devices and accessories. Its
growth is attributed to the increased use of cameras in different security applications.

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Section 1 Business Overview

Trends in the Industry

In recent years, the use of body-worn surveillance has been introduced in law enforcement where
officers wear cameras on their chests or head. CCTV is also used to supervise conditions in
industrial processes that are considered dangerous or hazardous for humans such as
chemical and nuclear industries.

Many cities and highway networks have traffic-monitoring systems used to notice accidents and
detect congestion. The use of surveillance in traffic management is expected to increase
significantly in the future.

Many organizations use CCTV to monitor the activities their employees engage in with each
operation being transmitted to allow monitoring of all action by the relevant departments.
Schools also use video surveillance to monitor visitors, prevent vandalism and bullying and
keep records of evidence in case of criminal activity.
Government Regulation
Due to the shrinking cost and size of surveillance systems in the last two decades, the use of
video surveillance by property owners, public sector authorities and private sector parties has
increased significantly. Surveillance subjects people to scrutiny even when they have not
engaged in behavior that arouses suspicion. This has raised concerns about the technology’s
ability to eradicate the expectation of anonymity and privacy as people go about their business.
Moreover, there are concerns that data gathered from surveillance systems could be used for
petty or discriminatory purposes.
Because of the widespread use of video surveillance in public spaces and its potential effect on
privacy, the Office of the Privacy Commissioner in Canada has developed guidelines that define
the circumstances of use of this technology:
 Video surveillance should address real and substantial problems whose sufficient
importance warrants overriding the right individuals to be free from surveillance in any
public space.
 Surveillance should be done in the absence of less privacy-invasive alternatives.
 The impact of video surveillance should be considered before such systems are installed
to determine the degree of interference with privacy and how potential adverse effects
can be mitigated.
 Relevant stakeholders should consult the communities that will be affected.
 The use of video surveillance should be consistent with relevant laws .
 The surveillance systems installed in different areas should be designed in such a way
that they do not intrude on privacy than is absolutely necessary.
 The public ought to be informed with clear written signs that they are under surveillance,
and signs should include the parties responsible for surveillance, including those
responsible for privacy principles compliance.

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Section 1 Business Overview

 The information gathered through surveillance should be minimal, its use and disclosure
controlled, its retention limited and destruction guaranteed.
 Excessive or pointless intrusion of privacy is discouraged. In other words, cameras
should not be aimed into areas where individuals expect high levels of privacy such as
washrooms, windows of buildings and changing rooms.
 Systems operators should be fully conversant with the rules protecting privacy.
 The access to surveillance systems, equipment and images should be limited to
authorized persons.
 Individuals whose images have been recorded are entitled to accessing any recorded
personal information.
 Video surveillance systems should be subject to frequent independent audits and
evaluation and their effectiveness evaluated to rid unintended negative effects.
 The use of video surveillance systems ought to be governed by an explicit policy.
Market Segment

The global video surveillance market is estimated at $36.89 billion and is expected to grow to
$68.34 billion US by 2023 due to the increasing concern of public safety and security as
well as the increasing adoption of IP cameras, and growing demand for spy and DIY
cameras.

The growth of IP video surveillance systems is due to the shift from analogue to IP due to image
quality, easy installation, high scalability and remote accessibility using network-based
technologies. IP systems can be integrated with existing networks and provide a platform for
software such as cloud storage, VMS and video analytics. The market for this technology is
expected to grow rapidly in the next few years owing to advancement in IP cameras and the
storage device industry.

Some of the factors driving the growth of the market for surveillance systems include the rise in
crime rate and the rising number of terror attacks in cities around the world. Moreover, the
continuous decrease in price has led to increased adoption across the world and, in turn,
increased the demand for monitors and storage solutions. The rising demand for video
surveillance in retail stores, warehouses, malls, data centers, banking and finance buildings,
and enterprises has driven industry growth.

HomeSec Surveillance is one of the fastest-growing companies in the industry owing to

investment in new and improved infrastructure.

Products & Services

HomeSec Surveillance provides superior quality digital cameras, analogue cameras, transmission
and storage products, network cameras, storage and control.

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Section 1 Business Overview

Pricing and Distribution

Our products are among the best priced in the industry and are available in both large and small
general retailers in Canada as well as in the United States and Europe. Our products are delivered
to our retailers’ warehouses allowing the company to minimize its distribution cost because this
capitalizes on the existing distribution channels of the retailers.
Market Trends
In 2018, the video surveillance market was US$ 36.89 billion and is expected to grow to
US$43.8 billion by the end of 2025. In 2017, buyers in North America accounted for 35.9 per
cent of the global video surveillance market due to significant investments from defense
authorities, governments and private organizations in Canada, the United States and Mexico. The
investment from the United States is particularly substantial and has contributed significantly to
the growth of this market. The presence of many well-established companies in the industry is
increasing the technology’s adoption rate, and software companies are also developing software
to enhance the capabilities of video surveillance.
The fastest growing region in terms of adoption of video surveillance is expected to be the Asia
Pacific due to growing concerns about civil unrest, increasing crime rates and terrorist activity.
These factors have led governments and private organizations in all parts of the world to adopt
video surveillance technology at a high rate to enhance security.
Implications or Risk Factors

HomeSec Surveillance sells to both consumers and contractors. However, products are sold
through distributors and retailers that in turn sell to the consumers and contractors. We are
aware that the needs of large contractors differ from those of small ones and therefore work
towards meeting the needs of all our clients. This enables the company to increase its loyalty
and help contractors to sell more than those who use other brands. We allow contractors to
associate with our brand name and give them marketing tools such as ads and mailers.

Planned Response
We cater to the needs of small and big customers and provide promotional material as well as
point-of-sale displays. Our strategy also goes beyond product and price to include ways that help
retailers and distributors overcome various barriers to success. This is achieved by selling our
products through them as opposed to selling to them.
Because HomeSec Surveillance reaches many security contractors through big-box retailers, we
have developed programs to meet their needs which include simple handouts and access to the
information they need through our website. We also have events that help us reach more
customers by showing them how much we value their choice to use our products.
THE COMPETITION
Competitors and type of Competition
There are many video surveillance equipment manufacturers in Canada Including Mobotix,
VICON, HIKVision, and vanderbilt Industries among others. Some of these companies produce
equipment as well as software to meet the increasing demand for security solutions.

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 BUSINESS PLAN
Section 1 Business Overview

Competitors' Strengths and Weaknesses

Leading companies in this industry have numerous strengths that allow them to do well in the
market place. These strengths may help the businesses to protect their market share and also
lay a significant role in their penetration into new markets. Some of our main competitors
have strong distribution networks that can reach the majority of their potential markets. A
company such as HIKVision has demonstrated excellent performance in new markets
around the world which has led to great success. Such expansions help these businesses to
build new revenue stream and also diversify the risks in the markets they operate in. A
strong free cash flow provides resources in the hands of these businesses to expand and
invest in new projects.

However, there are some gaps in the product range sold by the main competitors of HomeSec
Surveillance. The lack of choice within the market has given some new competitors a
foothold in the video surveillance market. Additionally, some businesses face challenges in
demand forecasting leading to many missed opportunities.

Competitive Advantage
HomseSec Surveillance has a strong brand portfolio which can allow the company to expand into
new product categories in the industry. We also have a highly skilled workforce which has been
achieved through successful learning and training programs. We invest huge resources into
employee training and development which has led to a highly skilled workforce that not utilizes
the acquired but also strives to achieve more.
Moreover, we have good returns on capital expenditure reflected in our success in the execution
of new projects that generate good returns and help us to build new revenue streams.

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 BUSINESS PLAN
Section 3 Operating Plan

SALES AND MARKETING PLAN

Customers
NAME \ ADDRESS TERMS PRODUCT / SERVICE

1 Walmart Gerrard Square

Toronto, ON, Canada 60 days Security cameras
+1416-461-8778
2 Target
4200 E 4th St, Ontario, CA 60 days Security cameras
91764-5250
3 Fry’s Electronics
Sacramento, CA, United States 90 days Security cameras
_+1916-286-5800
4 K.K. Electronics
187 Edgware Rd, London, UK. 90 days Security cameras
+4420-7723-1436
ADDITIONAL INFORMATION
As noted earlier, we sell to our customers through large and small distributors and retailers. This
means that small consumers looking to buy a small amount of equipment as well as contractors
buying large amount of the same can easily access our products.

Suppliers
NAME \ ADDRESS TERMS PRODUCT / SERVICE
1
Danyang Boris Optical Co.,
Ltd 60 days Lenses
Jiangsu, China
86-1595291667
2 PCBcart
Hangzhou, China 60 days Circuit boards
+86-571-87013819
3 Electro cables Inc
Trenton, ON, Canada 60 days Cables
+1613-394-4896

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Section 3 Operating Plan
4 Takachi Electronics Enclosure
CO., LTD.
30 days Casings & related items
Saitama, Japan.
+81-48-222-5409
ADDITIONAL INFORMATION
Parts used to manufacture surveillance equipment are acquired from different distributors around
the world. Some of our low-cost materials are sourced from suppliers from Asia, allowing us to
price out final products better than our competitors.

Advertising & Promotion

The advertising and promotion activities mainly include product bronchures and handouts, point-
of-sale displays, billboards and ads on various internet platforms such as social media.

Pricing & Distribution

HomeSec Surveillance pricing is among the best in the industry especially within Canadian
borders. We do not sell products directly to customers or contractors but instead we capitalize of
the distribution channels of our distributors and large retailers.

Customer Service Policy

HomeSec Surveillance has a toll-free number for customers and also utilizes the company
website and social media pages where customers, retailers and distributors can enquire about
products 24 hours a day, seven days a week. The company also conducts customer feedback
surveys on its website.

OPERATING PLAN
Location
HomeSec Surveillance is located on Bay ST Toronto, Ontario

Size and Capacity

HomeSec Surveillance has a 5,000 quare foot facility that includes both product assembly
and office space.

Advantages or Disadvantages
The company’s facility is conveniently located close to many retailers and is also
accessible by large distributors. Additionally, the area has a good road network for
transportation. However, the location of the facility makes it difficult for the company to
acquire space for future expansion.

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 BUSINESS PLAN
Section 3 Operating Plan
Lease or Ownership Details
The space was purchased by the company in 2005 for $800,000

Equipment, Furniture & Fixtures

Product design is done using computer-aided design work stations and assembly of the main
parts is done by hand.

Future Expenditures / Technology Requirements

New technology may be required to produce more products and improve the current rate of
production to meet increasing demand. The company plans to set aside $2.1 million for more
space and assembly equipment.

Research and Development

The company plans to establish a research and development center in a separate building within
Toronto to focus on innovation and cutting edge technology as well as the needs of a diverse
customer base. Toronto is an ideal location for the R&D center because of its large talent pool
and its position as an important economic hub of the world.

Environmental Compliance
HomeSec Surveillance is committed to compliance with laws whose purpose is to minimize
impacts on health and security threats. Additionally, the company focuses on product energy
efficiency and encourages product takeback and recycling.

Additional Information
     
The company building is designed in such a way that it utilizes natural light during the day to
improve enegy efficiency.

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 BUSINESS PLAN
Section 4 Human Resources Plan
Key Employees

NAME OR TITLE KEY

QUALIFICATIONS
(Nº OF POSITIONS) RESPONSIBILITIES
People management
1 Production Manager Planning anmd organizing and technological
knowledge
Streamline and improve sales Sales and management
2 Sales manager
process knowledge
Technological
3 Assemblers Parts assembly
expertise
Filing, inventory and record Diploma in related
4 Office assistant
keeping field, Microfost office
ADDITIONAL INFORMATION

POLICIES AND PROCEDURES

Hours of Operations
8AM to 5PM for 5 days a week

Number of Employees
40 full time employees

Vacation Program
Employees are entitled to 21 days of vacation annually and the facility is closed during the last
week of the year.

Performance Assessment

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Section 4 Human Resources Plan
An extensive evaluation of the management and products and production process is done in
September every year.

Training & Development

Experienced employees help train new employees within the company’s premises. All employees
engage in a training program once every two years to learn specific skills and knowledge to
enhance their performance in their respective roles.

Remuneration and Benefits

Salaries are comparable to those of other employers in the industry, and the HR department has
developed a system for rewarding superior performance with bonuses and incentives aimed at
improving performance and increasing commitment to the business.

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 BUSINESS PLAN
Section 5 Action Plan

ACTION PLAN

ACTION BY WHEN

1 Come up with more creative advertisements April 2020

2 Hire more marketing staff March 2020
3 Reduce energy consumption in the facility by 15% January 2022
4 Design a new company website June 2020
5 Introduce a new product: alarm devices January 2021
6 Sign an agreement with a large distributor and retailer March 2021
7 Enter the Asian market March 2021
ADDITIONAL INFORMATION
The company seeks to explore new markets in the Asian Pacific where demand for surveillance
solutions is growing.

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Section 6 Executive Summary
Objectives / Description of the Project
The objective for the next 2 to 3 years is to add more products and explore new markets. This
will be achieved through the introduction of alarm systems and the company’s entry into the
Asian market.

Business History / Nature of Operations K

HomeSec Surveillance began operations in 2000 as a supplier and installation business in the
Toronto area. After four years in the business, it started making its own devices and selling them
to small retailers in Ontario. Currently, the company makes surveillance equipment for its North
America and European markets.

Products and Services

HomeSec Surveillance makes digital cameras, analogue cameras, transmission and storage
products, network cameras, storage and control.

Project Financing
Building $1 million
Equipment $800,000
Staff $300,000
Total required $2.1 million

Management / Advisors
     

Director 1
David T. Chamberlain, CEO (60% ownership)
Over 15 years in management and 10 years in management of assembly lines.
Responsibilities include financial management, corporate operations and communication
with investors.

Director 2
Adalene Lucas, Director (40% ownership).
Has over 20 years experience in corporate management and is responsible for strategic and
operational decisions of the business.

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Section 6 Executive Summary

Risk Assessment & Contingency Plan

Because we plan to introduce a new product, we have developed robust counterfeit mitigation
plans. We will also carry out an audit and systematic performance monitoring on our printed
circuit board suppliers. Additionally, we have conducted in-depth market analysis in the new
market and are in talks with various suppliers, distributors and retailers.

Financial Institution

Toronto-Dominion Bank
TD Canada Trust Branch
394 Bay St
+1416-982-4007

Supporting Documents
     

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