Jomo was in touch with various non-governmental development agencies and charities who shared his concerns for improving water supplies and were interested in using his system. He decided that the best option was to set up a company which would own the design rights, trademark and share of the patent, and would negotiate contracts for the manufacture, marketing, distribution, and field support for the systems. The revenue stream into this company would be re-invested into further research and development as well as paying a reasonable return to the founders and investors. There was strong poten¬tial for the supply of the systems into many rural areas to be grant-aided by development agencies and charities so long as the product and field support were effective and the price structure was equitable. In the business model which emerged, the distribution and field support would be provided by setting up a network of social enterprises, in which locai people would be trained in water purification and in testing, installing and maintaining the systems. This had the potential to create sustainable employment, to retain income at local level, and to ensure ownership and continuity of the systems. Jomo's problem was that he had never done any of this before, and could not do everything himself. Yet he could not afford to employ experts or consultants for the development work which was now required, and he needed to see an income stream from the business. He was aware that this was a vulnerable stage for his business idea, because the innovation had been protected but he did not have the capital to exploit it, and he was aware that corporate vultures were eyeing up the opportunity.
The opportunity map Jomo prepared is shown in Figure 8.1 (overleaf).
Planning the venture
It was clear that nothing could happen without a business plan. Jomo started to put together a plan to raise money from non-governmental agencies and possibly private sector investors with compatible values ajid objectives. He was aided by Chris, an experienced entrepreneur who had recently sold his business. The plan covered a five-year period. The business model was for a company to hold the intellectual property and overall control of the business. The product manufacture and distribution to local level would be subcontracted. Licences for distribution and field support would be negotiated for specific territories, in collaboration with specific NGOs who would grant aid for systems supplied to disadvantaged rural areas and support the development of social enterprises to undertake training, installation and support. Other clients would pay the full market price.
growth over the five years they felt it would take for the product to become established. The investment would fund a management team to set up and run the business until break-even was reached in the third year. A total investment of $2m was predicted. This would enable an office to be set up with a development budget, and directors responsible for science and technology, finance and legal affairs, and marketing and operations to be recruited, with Jomo as chief executive officer and Chris as non-executive chairman. Jomo and Chris registered Aquifer Pty in South Africa, where the most developed business, communications and technology support they required could be found.
Jomo and Chris prepared to present the plan to a range of NGOs, investment organisa¬tions