Mohamed Hasan Mohamed (M.H.M.) Buhijji General Trading L.L.C
BUSINESS PLAN
M.H.M. Buhijji General Trading L.L.C.
Al Hamra Tower - Floor 35, Al Shuhadaa Street, P.O.Box 5819, Kuwait City, Safat 13059, Kuwait. Tel: 965 22203547, Fax: 965 22203511.
December 27, 2018
Executive Summary
The Company
M.H.M. Buhijji General Trading Company L.L.C. was established in March 6th, 2016 focusing on the following industries; Automotive, Farm & Food Production, Food & Beverage, Information Technology, Pet Services & Pet Supplies, Non-Profit work through Philanthropy, & Retail.
The product line is the same and has not evolved since the establishment. The company has grown; gaining over 672.81% return of investment over the span of 33 months. M.H.M. is a start up company, the inspiration behind it is the founder's late maternal grandfather A.R. A.H. Al-Sane may he rest in peace.
The Ownership
The company is structured as a limited liability company (L.L.C.).
The Management
The Chief Executive Officer is in charge. Decisions will be made by the chief officers. There is no board of directors. The company is managed by the owners. There are no silent partners. The company is run by common vote where each partner has an equal say unlike share vote where the majority shareholder has the final say in all management decisions.
The Goals and Objectives
The company can reasonably accomplish the same rate of growth and return since establishment depending on certain variables. The seed money at establishment was 100,000 KWD ( $329,606.74 ) with a return of 672,814.192 KWD ( $2,217,640.96 ) which equals to 672.81% in a span of 33 months. The company will grow its market share depending on the variables.
M.H.M. is looking forward in the next 12 months to acquire a big enough land to host its farm & food production, information technology, & pet services & pet supplies operations. With an emphasis & focus mainly on the information technology operation since it yields the highest return out of all the company's operations.
Buhijji General Trading wants to accomplish in the next 5 years a sustainable & automated system of growth in the 3 operations mentioned earlier so it can focus its efforts & resources in its automotive, food & beverage, & retail operations.
The Product
The main product of the company is data mining hardware for the blockchain technology. The hardware transfers data from point A to B securely through the blockchain.
For every blockchain transfer a reward is given to the miners. The reward started with 50 Bitcoins BTC for the first 4 years, then 25 BTC for the next 4 years, currently the reward per blockchain is 12.5 BTC ( Todays value 15,000 KWD/$49,479,69 ).
The Blockchain becomes more difficult to decrypt every two weeks, which in tern makes it more secure and safe. However this also in tern decreases the hardware performance and computing ability; simply put it slows down your computer every two weeks. Which means new computers have to be purchased to maintain and increase computing power periodically.
Data mining the blockchain has been extremely profitable for the last 10 years. The return of investment ROI averaged 4 months, with the first annual return exceeding 400%, 200% for the second annual return, 100% by the third annual return.
Because of the high electricity cost, the mining is only profitable for the first 2 years, & new hardware needs to be added and/or replaced accordingly to continue and maintain profit.
With an alternative energy source; such as renewable green energy established. The electricity cost will be free as it pays for itself in the first year. Which in turn increases the profitability of the mining hardware for 10 years instead of just 2 years.
The Target Market
The target market for the company is everyone from young adults, to seniors, homeowners, to the general public. The target market covers local, municipal, regional, national, & international. The product is intended for commercial customers as well.
Pricing Strategy
At this present time when company's main focus is data mining the blockchain the only product available for sale is Bitcoin BTC; currently valued 1 BTC at 1,200 KWD ( $3,956.43 ) it reached it highest value of 6,066.080 KWD ( $20,000.00 ) earlier this year.
In the future when the company is producing, manufacturing, & selling the data mining hardware. The price of the product is directly related to the value of Bitcoin; the higher the value the more expensive the hardware is & vise versa.
As far as renewable energy; the company is looking to be the least cost provider which in turn will give it a competitive edge in the market.
Typically in this 10 year old industry the profit margins are over 300% & thats only in the first year alone.
The Competitors
Because this is an emerging & new industry worldwide thats only 10 years old. There is no competition as of yet, all businesses in the this industry work together to help it grow and reach mass adoption.
After mass adoption competition will be normal. The first adopters of this technology will reap the lion's share. While new companies will have to establish themselves providing better services for a better price. Consumers tend to trust the old and well established business, thats the case with every industry. Mass adoption will not happen anytime before 2040; while the main adoption will happen by governments by 2030.
Capital Requirements
The owners invested 335,990.473 KWD ( $1,107,767.99 ) since the start of the company. 100,000 KWD ( $329,702.20 ) as seed investment. 154,390.473 KWD ( $509,028.79 ) as owner equity for the last 33 months. The company will need to borrow the maximum allowance possible. The money will be spent on land, green energy, & data mining hardware. This will help the company in reaching its goals by eliminating cost on rent as well as running operational cost such as electricity. It will increase the profitably of the data mining hardware as well as increasing its running shelf life.
Business Plan - M.H.M. Buhijji General Trading L.L.C.
The Company
Business Sector
The company currently operates in the information technology sector.
Company History
M.H.M. Buhijji General Trading Company L.L.C. was established in March 6th, 2016 focusing on the following industries; Automotive, Farm & Food Production, Food & Beverage, Information Technology, Pet Services & Pet Supplies, Non-Profit & Retail.
The product line is the same and has not evolved since the establishment. The company has grown; gaining over 672.81% return of investment over the span of 33 months. M.H.M. is a start up company, the inspiration behind it is the founder's late maternal grandfather A.R. A.H. Al-Sane may he rest in peace.
Company Goals and Objectives
The company can reasonably accomplish the same rate of growth and return since establishment depending on certain variables. The seed money at establishment was 100,000 KWD ( $329,606.74 ) with a return of 672,814.192 KWD ( $2,217,640.96 ) which equals to 672.81% in a span of 33 months. The company will grow its market share depending on the variables.
M.H.M. is looking forward in the next 12 months to acquire a big enough land to host its farm & food production, information technology, & pet services & pet supplies operations. With an emphasis & focus mainly on the information technology operation since it yields the highest return out of all the company's operations.
Buhijji General Trading wants to accomplish in the next 5 years a sustainable & automated system of growth in the 3 operations mentioned earlier so it can focus its efforts & resources in its automotive, food & beverage, & retail operations.
Company Ownership Structure
The company is structured as a limited liability company (L.L.C.)
Ownership Background
M.H.M. Buhijji (member):
Mohamed Hasan Mohamed Buhijji has 14 years experience with automotive technology, 4 years with farm & food production, 4 years with food & beverage, 23 years with information technology focusing the last 10 years on blockchain & bitcoin technology, 3 years with pet services & pet supplies, 25 years with non-profit work through philanthropy, and 6 years in retail focusing the last 3 in cosmetics.
M.H.M. Buhijji has graduated with a United States High School Diploma from The Universal American School of Kuwait. Studied Aerospace Aeronautical & Aeronautics Engineering at Arizona State University. Certified in Microsoft Office from Microsoft. Certified in Adobe Photoshop from The Al-Sane Group. Certified in Adobe illustrator from The Al-Sane Group. Certified in Permaculture Design from The Permaculture Research Institute of Australia. Certified in Permaculture Teacher Training from The Permaculture Research Institute of Australia. Certified in Earthworks from The Permaculture Research Institute of Australia. Certified in Advanced Permaculture Earthworks from The Permaculture Research Institute of Australia. Certified Master Healer from The Modern Mystery School of Japan. Certified Jikiden Reiki Zenki (Shoden) Practitioner from The Jikiden Reiki Kenkyukai (Institute) of Japan. Certified Hado Instructor from The International Hado Membership Organization of Japan. Certified in Water Crystal Photography from The International Hado Membership Organization of Japan.
The major business accomplishments of this owner is his vision & foresight. Continuing the entrepreneurial spirit instilled by his late maternal grandfather A.R. A.H. Al-Sane may he rest in peace. Being self funded and building a livelihood and a company from the ground up. And being one of the worlds earliest adopters of the blockchain and bitcoin technology.
Jennah A.R A.M. Al Failakawi (member):
Jennah Abdul Rahman Abdul Majeed Al Failakawi has 6 years experience in the Oil & Gas Energy Sector, 4 years with farm & food production, 4 years with food & beverage, 2 years with information technology, 3 years with pet services & pet supplies, 5 years with non-profit work through philanthropy, 3 years with retail focusing in cosmetics.
Jennah has graduated with a United States High School Diploma from The American Academy for Girls of Kuwait. Graduated with a Degree in Business Administration Accounting from Kuwait University. Certified in Permaculture Design from The Permaculture Research Institute of Australia. Certified in Permaculture Teacher Training from The Permaculture Research Institute of Australia. Certified in Earthworks from The Permaculture Research Institute of Australia. Certified in Advanced Permaculture Earthworks from The Permaculture Research Institute of Australia. Certified Master Healer from The Modern Mystery School of Japan. Certified Jikiden Reiki Zenki (Shoden) Practitioner from The Jikiden Reiki Kenkyukai (Institute) of Japan. Certified Hado Instructor from The International Hado Membership Organization of Japan. Certified in Water Crystal Photography from The International Hado Membership Organization of Japan. Pending certification in PMP Project Management Professional from Project Management Institute (PMI).
The major business accomplishments of this owner are continuing the entrepreneurial spirit instilled by her husband M.H.M. Buhijji. Being self funded and building a livelihood and a company from the ground up with her life partner. Getting certified in the fields that mean most to her. While increasing her knowledge and background in operational, financial, project management.
Company Management Structure
The Chief Executive Officer is in charge. Decisions will be made by the chief officers. There is no board of directors. The company is managed by the owners. There are no silent partners. The company is run by common vote where each partner has an equal say unlike share vote where the majority shareholder has the final say in all management decisions.
Organizational Timeline
The planning will be complete as soon as we know how much funding we can initially secure. The new plan will be implemented as soon as the land is acquired. The secured funding is needed prior to our relocation to the United States; which is happening as soon as possible.
M.H.M. will hire employees as soon as construction is completed on its newly purchased land. The new production will begin as well as soon as construction is done. Buhijji General Trading will be in full production as soon all the land is developed to reach its maximum yield.
The farm & food production products/services will be available for sale every quarter starting after construction is complete. While the information technology products/services will be available for sale per hour 24 hours a day 7 days a week; 24/7, as soon as construction is complete. The pet services & pet supplies products/services will be available for sale every 6 months after construction is complete.
The new business will open its doors 12 months after construction; when and after all 3 activities are fully operational.
Company Assets
The company was leasing a barren farming land with no water nor electricity in Wafra the size of 12 acres for the sum of 500 KWD ( $1,649.32 ) per month for 31 months until October 2018; the owner sold the land for 160,000 KWD ( $527,783.34 ).
M.H.M. has 6 cloud mining contracts leasing computer equipment, one expired on August 31st 2018, the rest expire January 30th 2019. For the purpose of data mining in Estonia purchased at 196,745 KWD ( $648,992.08 ).
Buhijji General Trading had stock-in-trade worth 100,000 KWD ( $329,864.59 ) from February 2016 for 14 months earning 3.5% monthly return which equals to 3,500 KWD ( $11,545.26 ) per month.
The company also own two vehicles; a black 2014 Audi A7 worth 8,000 KWD ( $26,389.17 ), & a white 2001 Mercedes G-Wagon worth 27,000 KWD ( $89,063.44 ) totaling 35,000 KWD ( $115,395.77 ).
The Product
The Product
The main product of the company is data mining hardware for the blockchain technology. The hardware transfers data from point A to B securely through the blockchain.
For every blockchain transfer a reward is given to the miners. The reward started with 50 Bitcoins BTC for the first 4 years, then 25 BTC for the next 4 years, currently the reward per blockchain is 12.5 BTC ( Todays value 15,000 KWD/$49,479,69 ).
The Blockchain becomes more difficult to decrypt every two weeks, which in tern makes it more secure and safe. However this also in tern decreases the hardware performance and computing ability; simply put it slows down your computer every two weeks. Which means new computers have to be purchased to maintain and increase computing power periodically.
Data mining the blockchain has been extremely profitable for the last 10 years. The return of investment ROI averages 4 months, with the first annual return exceeding 400%, 200% for the second annual return, 100% by the third annual return.
Because of the high electricity cost, the mining is only profitable for the first 2 years, & new hardware needs to be added and/or replaced accordingly to continue & maintain profit.
With an alternative energy source; such as renewable green energy established. The electricity cost will be free as it pays for itself in the first year. Which in turn increases the profitability of the mining hardware for 10 years instead of just 2 years.
Product Patents
M.H.M. holds the intellectual property to 14 branded trademarks that encompass its work in the fields of automotive, farm & food production, food & beverage, information technology, pet services & pet supplies, non-profit through philanthropy, & retail. Which in tern strengthens the presence and appearance in each respectful market. The IP is registered in Kuwait's library under current local laws and regulations.
Future Products
M.H.M. long term goals is the development, manufacturing, & sale of green renewable alternative energy as well data mining hardware for the blockchain technology.
The advantages of theses new products is that we as people are transitioning into both green renewables in the energy sector and blockchain in the technology sector, which will be very visible in our day to day life in the next two decades reaching our first benchmark by 2030.
The company is also planning on selling parts, accessories and clothing lines that support the main product of the company through online retail store to boost its presence and support in the emerging market.
Marketing Plan
The Target Market
The target market for the company is everyone from young adults, to seniors, homeowners, to the general public. The target market covers local, municipal, regional, national, & international. The product is intended for commercial customers as well.
Location Analysis
The new location gives the company a competitive advantage and is a good fit to the targeted market segments. The location is near a lot of customer traffic. Tourist traffic will have a positive affect on the business. The business will draw customers from nearby residential districts. Benefiting both and helping the working class communities as well as the high end real estate communities.
Established Customers
Since the reward of data mining is Bitcoin; an asset & the most expensive cryptocurrency in the world for the last 10 years. The company's founder Mr. M.H.M. Buhijji has established an existing customer base 7 years prior to the company's formation 3 years ago.
The biggest customers that will help carry the company into the future before mass adoption of the technology are private investors as well as investments companies & hedge-funds.
Since the above mentioned groups have the capital and are always willing to buy out everyone through the letters of intent of purchase as well as through trading exchanges established worldwide. The company will never have shortage of buyers since its product is in constant never ending high demand from the inception of blockchain technology 10 years ago.
Pricing
At this present time when company's main focus is data mining the blockchain the only product available for sale is Bitcoin BTC; currently valued 1 BTC at 1,200 KWD ( $3,956.43 ) it reached it highest value of 6,066.080 KWD ( $20,000.00 ) earlier this year.
In the future when the company is producing, manufacturing, & selling the data mining hardware. The price of the product is directly related to the value of Bitcoin; the higher the value the more expensive the hardware is & vise versa.
As far as renewable energy; the company is looking to be the least cost provider which in turn will give it a competitive edge in the market.
Typically in this 10 year old industry the profit margins are over 300% & thats only in the first year alone.
Advertising
Initially since the main objective is maintaining and growing the data mining operation. As well as the company selling literary digital gold. The company doesn't have to worry about an advertising strategy for now.
In the future when the company starts developing its own hardware and alternative energy for sale as well as leasing. The company will devise an advertising strategy that cover all market segments using radio, television, newspapers, and social media. And will assign a budget for that accordingly in the future when the time is right.
Competitor Analysis
The Competitors
Because this is an emerging & new industry worldwide thats only 10 years old. There is no competition as of yet, all businesses in the this industry work together to help it grow and reach mass adoption.
After mass adoption competition will be normal. The first adopters of this technology will reap the lion's share. While new companies will have to establish themselves providing better services for a better prices. Consumers tend to trust the old and well established business, thats the case with every industry. Mass adoption will not happed anytime before 2040; while the main adoption will happen by governments by 2030.
Operations
Staffing
Currently the company has 3 staff members; it was operating with 5 staff members. The pet services & pet supplies manager passed away. And the company had to let the C.F.O. go.
M.H.M. will require skilled labor in the field of information technology to maintain the data mining facility. Buhijji General Trading will require general labor for farm & food production, as well as pet services & pet supplies. The company will need 3 managers to handle the day to day operations of the previously mentioned activities.
Capital Requirements Plan
Capital Requirements
The owners invested 335,990.473 KWD ( $1,107,767.99 ) since the start of the company. 100,000 KWD ( $329,702.20 ) as seed investment. 154,390.473 KWD ( $509,028.79 ) as owner equity for the last 33 months. Buhijji General Trading is willing to take on either a 5 year non interest loan or a fixed interest loan. The company is willing to pay back the loan on a monthly, quarterly, or annual basis; which ever the lender sees fit & most suitable.
M.H.M. Buhijji General Trading L.L.C.
Actual and Projected Income Statement
For each of the years ending the 1st day of January: (USD - US Dollars)
Expenses:
Research and Development
2016 $19,773.56
2017 $1,318.81
2018 $3,378.04
Insurance
2016 $297.74
2017 $294.19
2018 $278.06
Legal and Professional Services
2016 $0.00
2017 $989.11
2018 $0.00
Rent
2016 $45,169.20
2017 $73,358.74
2018 $73,391.71
Utilities
2016 $4,708.15
2017 $4,708.15
2018 $4,708.15
Repairs and Maintenance
2016 $125,202.43
2017 $193,477.95
2018 $374,869.50
General Office
2016 $32,478.96
2017 $29,040.17
2018 $36,089.07
Entertainment
2016 $0.00
2017 $0.00
2018 $3,631.01
Licenses
2016 $181.34
2017 $181.34
2018 $181.34
Salaries and Benefits
2016 $163,367.44
2017 $324,229.15
2018 $298,429.95
Bank Fees
2016 $3,161.51
2017 $8,541.76
2018 $20,349.63
Interest
2016 $19,191.56
2017 $20,749.54
2018 $19,125.19
Miscellaneous Expenses
2016 $49,395.75
2017 $318,878.99
2018 $442,731.26
Total Expenses:
2016 $462,927.64
2017 $975,767.90
2018 $1,277,162.91
NET INCOME (Before Tax):
2016 $(462,927.64)
2017 $(975,767.90)
2018 $(1,277,162.91)
