Konon (Economic reactivation of SMEs)

SMEs are important. In Mexico there are more than four million, they generate 72% of employment and contribute 52% of GDP.However, FORBES magazine mentions that a large part of these business units have not found sufficient support either in fiscal policies or in reducing the federal budget destined to close the technological gap that exists between large corporations and SMEs. The way Konon will be helping to solve the problem raised is by offering free point of sale systems for SMEs that are dedicated to selling products, in addition to the free point of sale they will receive training and follow-up. As if that weren't enough, through this point of sale Konon will take their products to an online sales app, helping them to sell more and to venture into electronic commerce.

SMEs currently suffer two major problems, 1.- the lack of opportunities to have access to be able to digitize and 2 the resounding economic decline caused by COVID 19, with our business model we will help them reach the digitization of their business and achieve an economic reactivation in a very short time.

The Center for the Development of Business Competitiveness revealed that 75% of Mexican SMEs fail during the first 2 years of existence. The Failure Institute and the National Institute of Statistics and Geography (INEGI) project similar numbers, painting a bleak picture for Mexican entrepreneurs. Konon's intention is to reduce this 75% and take it below 50 thanks to technological support and the increase in sales that comes from working with Konon.

The Center for the Development of Business Competitiveness revealed that 75% of Mexican SMEs fail during the first 2 years of existence. The Failure Institute and the National Institute of Statistics and Geography (INEGI) project similar numbers, painting a bleak picture for Mexican entrepreneurs. Konon's intention is to reduce this 75% and take it below 50 thanks to technological support and the increase in sales that comes from working with Konon.

The way in which Konon will be helping to solve the problem raised is by offering completely free point of sale systems for any SME that is dedicated to selling products, in addition to the free point of sale they will receive constant training and follow-up that consists of more semester training and reports. Also through this point of sale Konon will take their products to an online sales app helping them to sell more and to venture into electronic commerce, for this service they will not be charged, and up to this point the only thing that is intended is to support the SME .

We require the development of:

• Point of sale.
• Central Server.
• System Admin.
• Ecommerce App.

Advantages of the KONON APP:

1.- Konon deliver record, 4 hours, in express order.

2.- To have face-to-face attention.

3.- They will be able to go in person to look for their product, to the physical store.

4.- SMEs will not have to worry about managing their publications.

5.- Konon will not charge a percentage of the sale of the products or increase the price.

6.- The project will help SMEs to sell more.

SMEs are very important to the economy of any country. In Mexico alone there are more than four million, they generate 72% of employment and contribute 52% of the Gross Domestic Product (GDP) according to data from the former INADEM, INEGI and Bancomext. In Ciudad Juárez there are around 15,901 SME companies. However, FORBES magazine mentions that a large part of these business units have not found sufficient support neither in fiscal policies nor in the reduction of the federal budget destined to close the technological gap that exists between large corporations and SMEs. In the words of Felipe Sánchez, director of Wingu Networks, if we compare the productivity of an SME and a large company, we will find that there is a huge difference.

• The technology is complex.
• Technology is expensive.
• Lack of information.

The Center for the Development of Business Competitiveness revealed that 75% of Mexican SMEs fail during the first 2 years of existence. The Failure Institute and the National Institute of Statistics and Geography (INEGI) project similar numbers, painting a bleak picture for Mexican entrepreneurs.Konon's intention is to reduce this 75% and take it below 40% thanks to technological support and the increase in sales that comes from working with Konon.

The way in which Konon will be helping to solve the problem raised is by offering completely free point of sale systems for any SME that is dedicated to selling products such as clothing, shoes, accessories, technological gadgets, cell phones, among many other items, In addition to the free point of sale, they will receive constant training and follow-up. As if that were not enough, through this point of sale Konon will take their products to an online sales app helping them to sell more and to venture into electronic commerce, for this service no commission will be charged per sale, and up to this point the only thing that It is intended to support SMEs. This business model is designed to support SMEs and make Konon monetize without making these small and medium businesses spend more.

The objective is to support SMEs so that they are more stable, competitive and achieve an economic reactivation after COVID19, reducing the technological gap that exists between large companies and local businesses in each city, giving them a complete POS system free of charge. and functional, in addition, in an automatic way, the project will help these companies sell their products in an e-commerce, a mobile app dedicated to promoting local commerce.

The business model includes three target sectors to consider:

• Target population (for the App): men and women between the ages of 18 and 50 from the middle, upper middle and upper classes, although women are identified as the best buyers. These people are familiar with the use of mobile applications and with online purchases, they are usually professionals or business owners, they have the economic solvency to make purchases both on impulse and necessary.
• Target SMEs (for the POS): These businesses are usually small or medium businesses, we will start focusing on CD Juarez businesses, but the objective is to scale the project throughout Mexico and LATAM, these SMEs do not usually have many branches, and have an average 5 to 10 employees.
• Marketing Sales: it will be directed to any brand or business, but like the previous fucking we will start with local companies or brands and then when scaling the project we will look for them to be national or international. 

SMEs lack technological tools specifically molded for them, there is a gap between the possibility that a large corporation has in acquiring an administrative system or setting up an e-commer and that a SME can do it. Konon presents technology for SMEs as a complete system for the administration of their business, also the automatic incorporation to an e-commerce, helping them to sell more, We will help them to prosper and not close thousands of businesses that generate jobs and sustain the economy of their countries.

It is a prototype since, we are in the process of developing
the technological infrastructure that is required to carry out the project, we
have already carried out market studies focused on both potential users of the
app, as well as SMEs that could benefit from the project, and we are also about
to complete one of the required systems, which is the point of sale system, we
still need to create the administrative system, the app (e-commerce) and the
central server. We still have work to do for which we require time and
investment.

The main innovation is the focus of all this technology has in SMEs, and the business model that is proposed as such. Regarding technological innovation, it is the way in which the points of sale that will be installed in the stores will help to centralize the information of the goods that the Konon app will show to the users, also in this way we will obtain, the amount of products in inventory , sizes, variety of colors or styles, measurements etc. As well as the location of the stores and all this information will be shown to the user of the app so that he can consume products of SMEs that belong to Konon, an SME giving the correct use of the system, may be automatically feeding the information for the e -Commerce that will help you sell more.

In summary:

1.- SMEs will be trained with the use of computer systems.

2.- We will be delivering a competitive system for the administration and operation of the business at no cost.

3.- You will be helping to sell more by promoting the KONON application.

4.- We will act as intermediaries for home delivery.

5.- Monitoring, training and analysis of the performance of the stores will be given every six months to show data that could help the SME to sell more or grow their business.

Get to support and train more than 1,500 SMEs just in cd Juarez in a period of 1 year operating in optimal condition.

This translates into direct support for 7,500 to 10,500 who are the employees and owners of these SMEs in just one year.

On the other hand, also speaking of the first year, it will be possible to reach 124,688 people who will be offered the benefits of being able to buy in KONON

 In 5 years the goal is to support and train more than 13,500 SMEs

This translates into direct support to 199,500 people employed and owners of these SMEs in 5 years.

In 5 years it will be achieved that 19,326,640.00 people who will be offered the benefits of being able to buy in KONON.

This growth will continue until it is scaled to all continents and cities of the world. 

We have several KPIS to measure to ensure that the project performance is correct:

• Number of POS installed in SME businesses.
• Number of employees trained, by business and in general.
• Quantity of products collected in our app, by business and in general.
• Amount of downloads of the App.
• Quantity of sales through the App, (home sales)
• Number of searches carried out through the App.
• Average time a user spends per day within the App.
• Relationship between searches in the app and physical visits.
• Average ticket cost in door-to-door sales.
• Average ticket cost of advertising sales and positioning.
• Top Most Wanted Articles.
• Top Best selling items.
• Most wanted stores.
• Stores that sell the most.
• Featured Users.

In addition to these KPIS through a schedule of activities to measure the progress of the project, these are the activities that we will be evaluating in the schedule:

• Development of technological infrastructure
• Create Konon Digital Image
• Carry out advertising aimed at SMEs.
• Begin to attract SMEs.
• Install POS to each of the SMEs
• Provide training and monitoring to each of the SMEs.
• Carry out advertising directed to our target market in relation to users of the App.
• Acquire a car for delivery.
• Actively attend to all requests at the home of our users of the App.
• Search advertisers for the app,
• Deliver semi-annual reports to our associates (SMEs),

At the moment and due to the stage we are in, we only work 3 full-time people.

1 Systems Engineer: specialized in systems and applications development. He has experience in the development of business applications, points of sale, interactive games, etc. She was in various jobs as a programmer and later as a programming coordinator. He is the one who is in charge of the computer development of the solutions, who codes the systems, if work is of the utmost importance due to his experience in programming languages, administration, creation and manipulation of databases, algorithms, etc.

2.- Computer Science Degree: Specialized in detecting business problems and translating the problems into computer solutions to eliminate them, knowledge and understanding of systems, programming languages and databases, but specialized in sales, marketing and marketing of information systems, experience in process optimization and business model analysis. His contribution is to help reintroduce our products and brand to the market, deal with customers, work in companies as a technology consultant, as a software support coordinator, and as a software sales advisor.

3.- Eng in Business Management, with knowledge of process optimization, quality management, standardization, production and productivity, specialist in the operation of companies, support in carrying out the best practices to ensure quality, effectiveness and efficiency in all the productive activities of the project, I work as a quality engineer.

Our approach is to be able to form a work team where we give everyone the opportunity as long as they have the knowledge and characteristics necessary to carry out the assigned work, without distinguishing between genders, distinguishing between social groups, without discriminating by how you Once or for any disability you have, Konon will be a workspace free of stereotypes and discrimination.

Digital inclusion: Our project is intended to reduce the technological gap that exists between SMEs and a large corporation, giving them access to competitive systems at their fingertips and putting them to compete within electronic commerce at the same time, this leads to greater sales and growth for SMEs by preventing them from going bankrupt and having to lay off their employees, there will be more and more solid and profitable businesses that had the opportunity to compete technologically and not die trying thanks to Konon. We will support the post-COVID 19 economic reactivation, we will generate jobs, we will stabilize the economy of SMEs, and we will help the economy of these businesses contribute to the national economy in a stable and constant way.

Although we have the knowledge to carry out the development of the technological structure, we need hands to do it better and in less time, these hands can come from outsourcing labor supervised by us or integrating people to the equipment for a salary.

We have not thought about associations, but perhaps partnering with the autonomous universities of each city, starting with the UACJ and the ITCJ in Cd Juarez to provide us with final degree students to help us operate the business in exchange for a base salary but freeing up their professional practices, this with the possibility that if the company grows they can have their first job with us.

Konon will support digital inclusion, supporting SMEs to have free administrative and operational systems and to venture into electronic commerce, but not only this, many of the SMEs in Latin America are family or small businesses that have not adapted any type of technology to your business, through our training and semi-annual follow-ups we will help SMEs grow and become companies that know and use technology in their favor, helping each employee of this SME to understand the technology and operate it constantly This will lead to better companies, better employees, better economy, and GDP growth for each country where Konon is.