CAPITAL.MY

Alternative Funding Sources for Businesses

Video-based Central Monitoring Services

Video-based Central Monitoring Services

Project Cost: RM 3 Mil

Amount Invested : nil

Amount Required : RM 3 Mil

Knowledge / Experience Required:

Proposed Investor’s Role: others (Partner and/or Investor)

Industry: others (CCTV based , security system)

Project Stage: start-up

Information Memorandum:

Millions of CCTVs already installed nationwide, all standalone systems. This will bridge the gap and provide a value added service in linking up the clients’ CCTV system(s) online.

The concept of video based Central Monitoring Service, VCMS for short is relatively new to Malaysia. There must be millions of CCTV cameras already installed throughout the country. Whenever a commercial or industrial entity is set up, those with a reasonable investment involved would have an existing CCTV, Alarm system in place. While Alarm based CMS is already a mature industry, estimated subscriber base at forty to Fifty Thousand nationwide, VCMS is in its infancy. All the mentioned CCTV systems are considered standalone, meaning they are not linked to any third party services. VCMS will provide the progression to the next level both in increased security and a value added service to the CCTV industry as a whole. This effectively functions as an additional 24 hr guard.

Technical expertise to design and link up existing systems to the VCMS station will be part of the package. Subscribers will be charged upon the number of cameras installed and monitored. For example, an eight (8) camera system will have a monthly subscription of RM320.00. After a certain period of operations, supposing we have 500 customers, that will generate monthly revenue of RM160,000.00. This does not include outright sales and maintenance revenue.

The figures stated above are eminently achievable due to our pioneering status. The forecast after the third year of operations will stand at 800 subscribers, against a then projected monthly operational costs of RM65,000.00. We expect to have close to 1,500 subscribers before the market tails off. The key personnel/team will be assembled by myself. I am a Mechanical Engineer with 12 years of experience in the CCTV industry. The management team aks for 30% equity, with 100% financing from the investors. This will be a brand new business setup without any previous encumbrances. Setup costs involved; estimate is for close to RM900,000* to begin operations, this is to include a new office with 24 hr monitoring center, equipment, initial stocks, advertising etc. The balance of RM 2 Million * will be held for operational overheads as we grow. From the above figures given, we expect an estimated return of investment in 30 months.

Investment risks will inevitably be the establishment of competitors once they see the possibility of this business model. Speed will be of essence, adequate funding on our part is necessary for growth. There is a very well established business / industry which is eagerly awaiting our service to complement theirs. This is a crucial element of our marketing efforts.

The major broadband service providers will only be too eager for tie up as they have insufficient content at this time. As the business grows, CCTV distribution, project tendering and maintenance contracts with our subscribers will be the next step in establishing ourselves to be a major player. At this moment, I can’t think of any exit strategy, so will reserve this portion until later. This is one industry that has to be very well set up before we can tie in with our partners in the market, staring small with a limited budget is definitely not feasible. Before the first customer is signed up, everything has to be in place and running, hence the heed for adequate resources.

Contact Information

Patric HY Lee ( patric.hlee@gmail.com)

Postal Address : Kuala Lumpur
State : KL
Post Code : 58100
Country : Malaysia
hp: +6012-339 8838