Adriaan Mol

1

• Business Plan
• Presented at the 2006 Global Social Benefit
  Incubator
• Santa Clara University, California

2
Imagine youre in Africa. Its hot, youre
thirsty and somebody offers you a drink.
Which glass would you chose? The clean one,
right...?
Unfortunately, 1 billion people dont have that
choice,because basic products are not available
to them...
3
Mission

• BushProofs mission is to significantly
  contribute towards the Millennium Development
  Goals (halving poverty by 2015) through
  innovative products that positively impact the
  wellbeing of people living at the Bottom of the
  Pyramid (BOP).

How do we do that?Through the commercial
provision of affordable, bush-proof products
that are suitable for the tough conditions in
developing countries. Examples
4
BushProof Track Record

• First years operation
• 350 jetted wells produced (which doubled the
  national output in Madagascar!)
• Winner of the World Bank Development
  Marketplace award for our revolutionary well
  jetting technique
• 37,000 people served with safe water
• Revenues significant income and approaching
  breakeven

5
Total addressable market

• Madagascar 17 million people (80 rural).
  Shocking statistics
• Rural access to electricity 4!
• Rural access to safe water 15!
• Potential market for water and energy services
  14 million people

6
Market illustration Drinking Water12 billion
litres of drinking water per year
Bottled Water
High
Piped water
Cost
Surface water treated with BushProof products
Open wells
Large majority drinks from polluted surface water
(rivers, ponds, springs)
SurEau household chlorine product
Low
Low
High
Quality
7
Market for Renewable Energy

• Example of tangible customer benefitsA poor
  family spends up to 100 Euro per year on energy.
  BushProofs solar products meet basic energy
  needs for only 55.
• payback period of only 6 months
• 3 years savings of 268, almost a whole years
  income!

8
Core Competencies for BushProof

• Products Focus
• Appropriate bush-proof products designed from
  grassroots up for bottom-of-the-pyramid (BOP)
  customers
• Low cost, rugged, and practical
• Multi-product strategy to spread channel costs
• Channel Strength
• Capability to work in remote areas
• In-depth understanding of BOP consumer needs
• Established NGO channel a source of strength
• Use conventional channels for urban consumers
• Innovative channels to get to the rural bush
  consumers

9
Market Environment

• Enablers
• Lack of BOP expertise with potential competitors
• High demand for micro-solar products
• Support from NGOs Govt on health, energy and
  environmental goals
• Appropriate technologies available and not
  proprietary
• Obstacles
• Accessibility 50 of the country only accessibly
  on foot
• General poverty levels (61 lt 1 USD/day)
• Value issue low perceived value of clean
  drinking water requires customer education and
  strong marketing
• Tension for-profit mentality in a traditional
  non-profit sector

10
Business model illustration
Appropriatetechnology
Global pool of technology products
Appropriatetechnology
Selection bush-proofing
Identification, RD
Appropriatetechnology
DisconnectProducts too costly, badly designed,
not distributed, unsuitable, poor quality, wrong
functionality, not robust, etc
Wholesale
NGOs
Innovative channelsPeddlers, churches,...
Retail
Urban Rural Poor
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Value Proposition

• Aid agencies
• For NGOs, BushProof offers well construction and
  low-cost water products that deliver
• higher impact (more people served)
• up to 50 cheaper
• and 10 times faster
• even in remote and difficult areas where the need
  is greatest and traditional companies dont
  operate.
• Low-income people
• For the poor, BushProofs products offer
• increasing convenience
• higher social status
• improved quality of life
• unlike poorly managed public water
  infrastructure, traditional practices or low
  quality imports, BushProofs products are
  privately owned, safe easy to use, and save
  money.

12
Income (Revenue) Drivers
Products
Retail
Wholesale
Micro solar products (8-15)
Bush shops
Family sand filters (10-15)
Hand, irrigation pumps (45)
BOP market segment
Retailers serving bush and slum shops
Micro solar products (10)
Slum shops
Wholesalers
Family ceramic filters (10)
Family hand pumps (45)
Micro solar products (10)
Total Revenue
Rural Peddlers
Family ceramic filters (10)
Trainings (1500 / participant)
NGOs, UN
NGO market segment
Consultancies (300/day)
Ambitions
Village hand pumps (350)
Well construction (750/3500)
13
Expense (Cost) Drivers
Rent, utilities
Production
Tools, machines
Materials
Payroll
Rent, vehicles, etc
Total Costs
Staff, overheads, rent, etc.
Payroll, consumables,
Overheads
Advertising, marketing
Sales Marketing
Payroll, vehicles, etc
Market research
Distribution
Commission / loyalty
14
Financials
Initial financing needs (market field testing)
130,000 Anticipated financing to roll out in
East Africa 250,000 Date of expected cash flow
breakeven Year 2
15
Proforma PL
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Metrics

• Financial ROI
• Loan/grant 130,000
• Breakeven end year 1
• Profitability year 2
• Social ROI (over 5 years)
• Access to safe water 1 million people
• Access to energy 500 thousand people
• Environmental ROI
• M3 CO2 emmissions saved

17
Management Team, Key Partnerships, Governance

• Team
• Adriaan Mol (Director). 13 years experience in
  Africa and Asia as director of relief
  development programs
• Eric Fewster (Technical Director). 10 years
  experience in Africa and Asia as Water
  Sanitation expert
• Arnoud de Vroomen (Marketing / Finance). 10 years
  experience as financial controller (econometrics)
  and marketing in international top positions with
  a large MNC
• Partnerships
• UNDP Growing Sustainable Business for Poverty
  Reduction initiative
• WHO international network for household water
  treatment
• WASH National Water Sanitation network
• US European universities (research on social
  marketing, rural business models, health impact
  and BOP issues, etc)
• Advisory board
• In the process of setting up an advisory board

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Small investment (130K) - large returns!