Maduabuchi (Sam) Nkwodinma

Problem - Tier One

85 Frequent Travelers Surveyed• 52% loose key card at least once• 38% have stayed in hotels that

required the return of the key card upon departure

• 73% value high-tech innovation

Problem - Tier TwoAverage of 28 issues with card keys on a monthly basis leading to service recovery• Average per year cost: about

$3,600

Hotels spend between $450 and $1,000+ on replacement keys and key packets monthly• Average per year cost: about

$10,000

Employees mistakes lead to giving guests the wrong keys• Major security issues can result in

lawsuits

SolutionsProduct: A biometric thumbprint scanning system to replace hotel key card access systems

Features: • 1 x 0.5 inch scanner• Numbered keypad• 1 x 2.2 inch digital information screen• Battery backup

Benefits: • Codes prints to biometrics• Allows override access• Provides local restaurant ads• No issue of non-functionality

Customer Validation

Our Enterprise• Sales, marketing, and information

technologyPartnership • M2SYS Core Technology: marketing

services• Fulcrum Biometrics: manufacturing• Branded Hotel Chains Software Program • Restricts access to authorized users• Tracks employees more efficiently Survey Results• Approximately 70% are interested in

our service• Willing to pay, on average, $17.50

more/night for this service

Industry Trends

Security AlarmServices Industry

Attributes• Mature• Projected to grow, entrance of higher technology

Marketing Segments Served• Security alarms & monitoring

devices• Locksmith services

Follows state of economy• Trend, challenge

2-tiered industry• Low barriers to entry

Security Alarm Services Industry

Hotel Equipment Wholesaling Industry

Hotel/Motel

Industry

Hotel Equipment Wholesaling Industry

Declining• Private nonresidential construction declining• Price: competitive factor

Role of technology• Hotels focus on more

technologically advanced equipment: improving economic conditions

Low barrier to entry

Security Alarm Services Industry

Hotel Equipment Wholesaling Industry

Hotel/Motel

Industry

Hotel and Motel Industry

Mature industry• Declined due to price wars• Recovering with economy

High barrier to industry• Brand recognition

• Client base

Increasing use of technology• Especially in upscale hotels

Security Alarm Services Industry

Hotel Equipment Wholesaling Industry

Hotel/Motel

Industry

Industry Trends

Low barrier to

entry

Varies with economyTechnology-oriented: save $, up-to-date

Mature Industry

Competitive Advantage

Cost

Direct competition• None: No biometric entrance systems used in the hospitality industryIndirect Competition• VingCard and Onity: major key card companies

Opportunities• Hotel/Motel Industry barrier to entry• Technology in economy

Why SecuriKey?• Unique• After a one-time installation cost, comparable

yearly subscription fee

Competitive Advantage• Technology increases hotel’s value• Reduces hotel’s long-term cost: lower prices,

higher profitability

Competitive Advantage

Competitive Matrix

Factor SecuriKey Key Cards Keys

Safety 9 5 5

Convenience 10 5 5

Functionality 9 5 10

Environmental Friendliness

9 5 9

Low Price 5 2 8

Business and Revenue Model

Relevant Local Restaurant Ads Possible avenue of additional revenue

100 Suite Hotel: SecuriKey VingCard*

Installation (parts/labor) $75,000.00 $71,570.74

Yearly Contractual Cost $36,400.00 $33,500.00

Bi-Yearly Updates Included Varies

Technical Repairs $75.00/hour $75.00/hour

Replacement Parts Varies Varies

**VingCard prices are based on Residence Inn by Marriott Dallas/Addison

Marketing PlanEnter market

• Utilize direct sales method

Develop product

• Test in select 5 hotels

• Charge half the normal rate

• Provide free technical support visits for first year

Expand to major brands after testing

• Install in 10 branded hotels in Year 2

• Install in 100 branded hotels in Year 3

Target new brands and hotels to beconstructed

• Attend trade shows

Timeline

• Work with Fulcrum Biometrics to build Prototype

• Consult with Test Hotels

• Contract with test hotels at discounted rate

• Install system in Test Hotels

• Begin gathering data of successes and failures

• Work closely with Test Hotels to monitor issues

• Work on any issues/kinks

• Begin compiling data to give to Hotel Chains

• First contact with Hotel Chain

• Finalize any changes in product or pricing

• Work with M2SYS to develop marketing campaign with increased budget

Financial ProjectionsY1

5 HotelsY2

10 Hotels

Y3100

Hotels

Revenue $212,500.00 $800,000.00BR

$8,000,000.00

COGS $323,445.30 $646,890.60EA

$6,468,906.00

Gross Profit

$(110,945.30) $215,609.40K

$2,093,594.00

Operating Expense

$570,475.70 $1,324,279.00EV

$1,485,460.47

Net Income $(681,421.00) $(1,108,670.00)EN

$608,133.53

**50% discount for test hotels

Startup Costs/FundingFirst Year Budget Cost

Sales Salary (3 Sales Representatives) $124,800.00

Managerial Salary (1 Call Center Manager) $58,000.00

Customer Service Representatives (10 Representatives) $300,000.00

Office Space Rental $13,500.00

Accounting and Legal $50,000.00

Internet and Telephone Included in Rent

Office Computers/Equipment $11,165.70

Manufacturing/Materials/Biometric Software $58,445.30

Installation/Labor Contract Costs $265,000.00

Marketing $10,000.00

Training $3,010

Total $893,921.00

Management Team/Advisors

Call Center Management

Jasmine LinguistSales

Sam Nkwodinma

Hotel Industry Advisor

Abigail Turner

Marketing

Miguel Juarez

Financial Advisor

Open

Human Resources

Open

Technical Advisor

Open

Customer Relations

Shan Su