Business Plan for Computer Technician Consulting

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									This Business Plan for a Computer Technician Consulting business allows
entrepreneurs or business owners to create a comprehensive and professional business
plan. This template form allows a business to outline the company's objectives and
detail both current company information as well as any past performance. Companies
should include a complete market analysis in their plan to help showcase why their
business strategy will be effective in the market. Future company plans, including
production targets, management strategy, and financial forecasting, should be used to
demonstrate and confirm that the company's short-term and long-term objective can
and will be met. This model plan can be customized to best fit the unique needs of any
entrepreneur or owner that is seeking to create a strong business plan.
                                      Insert Image Here




                                  [Company Name]
                                            [Address]
                                            [Address]
                                        [City, State ZIP]

                                   [Name], Founder and Owner




                                BUSINESS PLAN 20__




© Copyright 2012 Docstoc Inc.                                  1
                                             Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [Company Name] in this business plan is
confidential; therefore, reader agrees not to disclose it without the express written permission of a [Company
Name]

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in
nature, other than information which is in the public domain through other means and that any disclosure or use of
same by reader may cause serious harm or damage to [Company Name]

Upon request, this document is to be immediately returned to any [Company Name]

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

                          This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                                     2
                                                          Table of Contents



1.0 Executive Summary ............................................................................................................. 1
  1.1 Objectives ......................................................................................................................... 3
  1.2 Mission ............................................................................................................................. 3
  1.3 Keys to Success ............................................................................................................... 3
2.0 Company Summary .............................................................................................................. 3
  2.1 Company Ownership ........................................................................................................ 3
  2.2 Company History .............................................................................................................. 3
     Table: Past Performance .................................................. Error! Bookmark not defined.5
3.0 Services ............................................................................................................................... 4
4.0 Market Analysis Summary .................................................................................................... 5
  4.1 Market Segmentation ........................................................................................................ 6
     Table: Market Analysis ........................................................................................................ 6
  4.2 Target Market Segment Strategy ...................................................................................... 7
  4.3 Service Business Analysis ................................................................................................ 7
     4.3.1 Competition and Buying Patterns ............................................................................... 7
5.0 Web Plan Summary ............................................................................................................. 7
  5.1 Website Marketing Strategy .............................................................................................. 7
  Build Brand Image .................................................................................................................. 7
     Enhance Client Services ..................................................................................................... 7
  6.1 SWOT Analysis................................................................................................................. 8
     6.1.1 Strengths .................................................................................................................... 8
     6.1.2 Weaknesses............................................................................................................... 8
     6.1.3 Opportunities .............................................................................................................. 8
     6.1.4 Threats ....................................................................................................................... 9
  6.2 Competitive Edge ............................................................................................................. 9
  6.3 Marketing Strategy............................................................................................................ 9
  6.4 Sales Strategy .................................................................................................................. 9
     6.4.1 Sales Forecast ........................................................................................................... 9
  7.1 Personnel Plan ............................................................................................................... 11
     Table: Personnel ............................................................................................................... 11
8.0 Financial Plan ..................................................................................................................... 12
  8.1 Important Assumptions ................................................................................................... 12
  8.2 Break-even Analysis ..................................................... Error! Bookmark not defined.16
  8.6 Business Ratios ................................................................................................................ 1
     Table: Ratios ....................................................................................................................... 1
APPENDIX




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                                            [Your Company Name]



1.0 Executive Summary

   Introduction

   [Company Name] ([Company Name]) is a software development company currently specializing in low level,
   high speed data acquisition software in the oil and gas industries. The two primary areas currently under
   active development are ultrasonic weld inspection and machinery diagnostics.

   [Company Name] is an development consulting firm in Calgary, Alberta, Canada seeking to expand
   permanently serving the [City] Metro area as [Company Name] with top quality engineers who have a keen
   interest in client satisfaction. The time is right for consulting companies to flourish. With the recent gains in
   the stock market, capital is again becoming available for IT infrastructure improvements. [Company Name]
   will position itself to win a good deal of that emerging business. The Company will be organized and
   registered incorporated in the State of Texas and will acquire an operating permit for Texas. [Company
   Name] anticipates an enviable cumulative net profit by the end of year one due to the nature of the consulting
   business.

   The Market

   [City] is the fourth-largest city in the United States of America, and the largest city in the state of Texas.
   According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of 579
                            2
   square miles (1,500 km ). [City] is the seat of Harris and the economic center of [City]–Sugar Land–Baytown,
   which is the sixth-largest metropolitan area in the U.S. of nearly 6 million people.

   Rated as a global city, [City]'s economy has a broad industrial base in energy, manufacturing, aeronautics,
   and transportation. It is also leading in health care sectors and building oilfield equipment; only New York City
   is home to more Fortune 500 headquarters. The Port of [City] ranks first in the United States in international
   waterborne tonnage handled and second in total cargo tonnage handled. The city has a population from
   various ethnic and religious backgrounds and a large and growing international community. It is home to
   many cultural institutions and exhibits, which attract more than 7 million visitors a year to the Museum District.
   [City] has an active visual and performing arts scene in the Theater District and offers year-round resident
   companies in all major performing arts.

   [Company Name] will be an expansion of [Company Name] in the United States and will leverage the industry
   knowledge of its founding members to provide outstanding service to its clients. The Company will initially
   rent a small office space in the Central [City] Metropolitan area, using their own transportation means to reach
   clients. The Company will be developed with a "client service and satisfaction first" mentality in an effort to
   build further acceptance and a positive reputation in the local industry.

   The Management Team

   In order for the Company to be successful, [Company Name] will fully leverage the experience and insight
   of its management, [Name]. The team has over twenty cumulative years of experience in service operations
   management and development support. [Company Name] currently holds multiple technology industry
   vendor certifications crossing several disciplines including both logical and physical network structure and
   management. Over the course of his career, [Name]has served in various technical roles with small to large-
   sized companies and has been successful in both large and small environments.

   The purpose of this business plan is to outline the dedication, knowledge and practicality of [Company Name]
   expanding the organization to further service already established clients in the United States and provide
   employment opportunities for U.S. Citizens.

   [Company Name] (Canada) has been in business since 2000 and has developed software in a number of
   different industries – ultrasonic weld inspection, oil and gas machinery diagnostics, wide area network kiosk

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                                       [Your Company Name]



development, postal services, and GPS acquisition systems amongst others. The Company has sought to
provide quality development resources at reasonable contract rates so that longer term contracts are
obtained. Historically, major contracts have run from about 2 ½ to over 10 years. [Company Name] has a
good reputation of quality software and integrity in business dealings. While a relatively small company, the
core employees hold a breadth of experience in many different areas of software development.
Currently [Company Name] has sufficient capital holdings that new ventures can be pursued without the need
for borrowing to obtain new business, operating as [Company Name].




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                                              [Your Company Name]



1.1 Objectives

    [Company Name]'s objectives for the first five years:

    1. Establish and maintain at least five full time service contract clients.
    2. Establish an office in [City], [STATE].
    3. Break the previous fiscal year's revenue mark.

1.2 Mission

[Company Name] aims to offer excellent client service at all times. Close personal attention to each project is
essential to providing a quality experience for all clients; therefore, adequate personnel will be hired to ensure
each client and project has the proper attention.

1.3 Keys to Success

       Depth of knowledge.
       Wide scope of ability.
       Development of a strong business relationship with clients in the United States to gain an understanding
        of their business and business needs.
       Ability to network in the industry and further expand operations in the United States.

2.0 Company Summary

    [Company Name] is incorporated in Calgary, Alberta in Canada and will have an operating office in [City],
    Texas. Initial staff will consist of a small group of experienced computer engineers who's skills and
    experience collectively cover creating and managing scientific software for industrial clientele. The Company's
    initial focus will be scientific programming, high speed acquisitions and diagnostics on turbines and
    compressors which will be developed into ongoing support contracts. In addition, [Company Name] will also
    work with data archiving and WAN and Internet access to that data.

2.1 Company Ownership

    [Company Name] is incorporated. The major share holders are [Name] (70%) and his spouse Valerie Jayne
    Carter (30%). The Company plans to organize the sister company in the State of [City], Texas as a Limited
    Liability Corporation where the major shareholders will be [Name] (50%) and Valerie Jayne Carter (50%).

2.2 Company History

    The owner of [Company Name], [Name], has been working the technology industry for 20 years. Since
    incorporating the Company in the year 2000, [Name]and his three assisting programmers have consulted and
    provided custom software development for companies such as Shaw Pipeline Services, Dresser Rand, Total
    Trucking Management, Integrity Innovation Inc., Digital Matter Corporation and many more. Since opening
    operations in Canada, [Company Name] has acquired two clients in the United States and has had up to six
    employees to meet that demand. As of late, the demand for [Company Name] has increased drastically.
    [Name]now finds it necessary to expand operations in the United States to meet these increasing demands
    and plans to simultaneously run [Company Name] in Canada and operate [Company Name] in [City], Texas,
    and plans to hire three American software programmers to assist. [Company Name] currently has 4
    employees.




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                                            [Your Company Name]



3.0 Services

   [Company Name] will offer several support options, including hourly support services, with the option to buy in
   blocks of 40 hours at a discounted rate. Blocks purchased will be valid for 180 days from date of purchase.
   Additionally, semi-annual service contracts will be available. Contract pricing will be negotiated on a per-
   contract basis.

   Operating systems supported (limited to current and three previous revisions):

      Windows OS - 32 bit and 64 bit

   Service offerings:

   [Company Name] has several pre-set packages available for general monitoring of a client's network
   equipment and applications. The packages are categorized by the type and use of equipment to be
   monitored. An initial one-time setup fee of $500 will be required per physical site at the onset of any service
   agreement. This amount is not affected by the number of systems to be monitored at the designated
   physical site. The client will be required to provide Internet access to the monitoring server. Out-of-band
   notification can be added for an additional $50 per month plus a one-time, per-physical-site, $150 initial setup
   fee.

   Development Environments Supported

          Visual Studio, all versions from 6.0 to current (2010)
          Development Languages:
          C/C++, C#, VB/VBA, ASP.NET, Java
          High Speed Data Acquisition and Analysis
          Data logging
          Wide Area Network / Internet Data Access
          Business applications
          Databases Supported
          SQLServer
          Oracle
          MySQL
          MS Access


   [Company Name] is primarily a Microsoft tools development shop, specializing in low level C++ data
   acquisition and scientific analysis, and C# higher level business layers. C++ talent is a less common
   commodity in the industrial world today, where most university graduates are trained more in web
   development and Visual Basic skills. Since a core number of [Company Name] staff are well experiences in
   C++, this allows mentoring of newer or more junior employees in that language and environment.

   However, [Company Name] does not limit itself to only these technologies and has provided web based
   technology components when requested. These include wide area network access through SOAP (simple
   object access protocol) technologies, remote machinery diagnostics through WCF (Windows Communication
   Foundation) and most recently is embarking on a pipeline services forecasting application using a database
   backend and a web based front end through ASP (active server pages).

   This combination of skill sets allow [Company Name] to compete in a diverse marketplace where highly and
   broadly skilled developers are needed.

   Rates as low as $65 to $75 per hour have been billed for more junior employees, with rates for senior staff to
   average at $120/hr.

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                                            [Your Company Name]



4.0 Market Analysis Summary

   Faster than average employment growth is expected, and job prospects should be excellent.

   Employment change. Employment of computer and information systems managers is expected to grow 17
   percent over the 2008-18 decade, which is faster than the average for all occupations. New applications of
   technology in the workplace will continue to drive demand for workers, fueling the need for more managers.
   To remain competitive, firms will continue to install sophisticated computer networks and set up more complex
   intranets and websites. They will need to adopt the most efficient software and systems and troubleshoot
   problems when they occur. Computer and information systems managers will be needed to oversee these
   functions.

   Because so much business is carried out over computer networks, security will continue to be an important
   issue for businesses and other organizations, and will lead to strong growth for computer managers. Firms
   will increasingly hire security experts to fill key leadership roles in their development departments because the
   integrity of their computing environments is of utmost importance.

   The growth of computer and information systems managers should be closely related to the growth of the
   occupations they supervise. For information on these occupations, see the Handbook sections on computer
   software engineers and computer programmers; computer systems analysts; computer network, systems,
   and database administrators; computer scientists; and computer support specialists.

   Among computer and information systems managers, job growth is expected to be the fastest in computer
   systems design establishments; software publishing firms; data processing and hosting companies;
   management, scientific, and technical consulting services; and healthcare organizations. Increased
   consolidation of IT services may reduce growth to some extent in other industries.

   Job prospects. Prospects for qualified computer and information systems managers should be excellent.
   Workers with specialized technical knowledge and strong communications and business skills, as well as
   those with an MBA with a concentration in information systems, will have the best prospects. Job openings
   will be the result of employment growth and the need to replace workers who transfer to other occupations or
   leave the labor force.

   --U.S.  Department        of    Labor     (2010-2011)     http://www.bls.gov/oco/ocos258.htm#proje[Company
   Name]ons_data

   [Company Name] will be primarily focusing on mid-sized companies with 500 or fewer employers. These
   companies typically do not have large internal IT departments and could benefit the greatest from the
   Company's offerings.




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                                      [Your Company Name]



4.1 Market Segmentation

   The information in the market analysis table gained from the U.S. Census Bureau,
   http://factfinder.census.gov/servlet/GQRGeoSearchByListServlet?ds_name=E9700A1. Though the data is
   based upon 2010-2011 data, it is representative of the local market's potential.

Table: Market Analysis

Market Analysis
                                   Year 1     Year 2    Year 3    Year 4     Year 5
Potential Customers       Growth                                                      CAGR
Segment Name                  0%        0          0         0         0         0    0.00%
Segment Name                  0%        0          0         0         0         0    0.00%
Other                         0%        0          0         0         0         0    0.00%
Total                      0.00%        0          0         0         0         0    0.00%




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                                           [Your Company Name]



4.2 Target Market Segment Strategy

   [Company Name] and [Company Name] is interested in servicing companies that are large enough to show
   direct P&L benefit from development investment, but not large enough to maintain their own permanent
   programming and development staff. The business groups targeted in the market analysis table represent
   the largest groups in the target area that fit [Company Name] interests.

4.3 Service Business Analysis

   [Company Name] is in the business of satisfying companies' scientific software infrastructure needs. The
   Company will provide service at various levels from consulting to diagnostics. Services will be sold on a per-
   client/case basis with heavy personal interaction between [Company Name] sales representatives and
   prospective clients.

4.3.1 Competition and Buying Patterns

   In this industry, word of mouth and reputation are king. While a limited amount of highly focused marketing
   will be effective, most contracts are gleaned from social contacts and networking.

5.0 Web Plan Summary

   [Company Name] website is an opportunity to offer current information on special events, service offerings,
   public service announcements and a client roster. In addition, the Company will post testimonials of past
   clients to further portray the Company's validity.

5.1 Website Marketing Strategy

   Build Brand Image

   A long-term marketing objective for the [Company Name] site could be to improve sales by building an image
   for the Company's services, brand, and/or company. Increasingly, this is an explicit goal for large companies
   with ample budgets.
   Small-budget companies can follow suit on a more affordable scale by building an image during the natural
   course of marketing. The Company can do this by consistently presenting similar design elements and
   “personality” at each point of contact with the world – whether that contact is virtual or physical.


   Enhance Client Services

   The website can increase revenue indirectly by improving client service. When clients are more satisfied, they
   tend to spread the word about the services as well as buy more often themselves.
   Lower Operating Costs

   A Web presence can also lower operating costs by streamlining communication with the Company's business
   partners. Business-to-business companies can create secure Web space to communicate and collaborate
   with clients.

   Unlike the larger corporations that prefer to support their clients online or by phone only, [Company Name] will
   emphasize personalized face-to-face service and support.




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                                            [Your Company Name]



6.0 Strategy and Implementation Summary

    [Company Name]'s initial funding will be from its founders' personal funds which can be verified. Word-of-
    mouth and industry networking will be [Company Name]'s key source of clients. The Company's success will
    be based upon the service and satisfaction of clients to the point that they willingly refer new business.

    The Company will also be listing the organization in trade publications of their target market to gain notoriety
    within the industry. Online marketing efforts will also be implemented for the Company's website to further
    the reach to outside of the Metropolitan [City], Texas area.

6.1 SWOT Analysis

    The SWOT analysis provides the Company with an opportunity to examine the internal strengths and
    weaknesses [Company Name] must address. It also allows to examine the opportunities presented to the
    Company as well as potential threats.

6.1.1 Strengths

    1. Knowledgeable and friendly staff. The Company has gone to great lengths at [Company Name] to find
       people with a passion for teaching and sharing their programming experiences. The staff is both
       knowledgeable and eager to please.
    2. State-of-the art equipment. Part of the [Company Name] experience includes access to state-of-the-art
       computer equipment.
    3. Clear vision of the market need. [Company Name] knows what it takes to build an upscale working
       system for clients. [Name]knows the clients, he knows the technology, and he knows how to build the
       service that will bring the two together.
    4. Experience / Support for dated technologies. [Company Name]’ length of experience in the industry
       allows them to understand and support older technologies (e.g. Visual Studi 6.0 development from the
       mid-90's), which are still used quite bit for low level hardware communication. Less experienced and
       younger developers would have a hard time adjusting to this, as they have little to no background in older
       technologies.

6.1.2 Weaknesses

    1. A dependence on quickly changing technology. The technology changes rapidly. Product lifecycles
       are measured in months, not years. [Company Name] needs to keep up with the technology because a
       lot of the Company's experience is technology.
    2. Cost factor associated with keeping state-of-the-art hardware. Keeping up with the technology of the
       Internet is an expensive undertaking. [Company Name] needs to balance technology needs with the other
       needs of the business. One aspect of the business can't be sacrificed for the other.

6.1.3 Opportunities

       Growing market with a significant percentage of the target market still not knowing [Company
        Name] exist.
       Strategic alliances offering sources for referrals and joint marketing activities to extend the
        Company's reach.
       Promising activity from high levels of new business currently being generated in [City], Texas.
       Changes in programming trends can initiate system updates and diagnostics, and therefore,
        generating sales.
       Internet potential for selling services to other markets.




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                                             [Your Company Name]



6.1.4 Threats

    1. Rapidly falling cost of Internet access. The cost of utilizing consultants of the technology
       industry for business users is dropping rapidly.
    2. Emerging local competitors. Many of the programs will be designed to build client loyalty, and it
       is [Company Name] hope that their quality service won't be easily duplicated.

6.2 Competitive Edge

    From the onset, [Company Name] will have over 40 years of cumulative experience in the development field
    with a very broad range of hands-on experience. This, combined with a keen sense of client service and
    satisfaction, will differentiate [Company Name] from its competitors.

6.3 Marketing Strategy

    [Company Name]'s initial marketing strategy will be largely word-of-mouth and industry group
    networking. The biggest initial challenge will be to broadly get the Company's name known in the local
    market. The Company will become involved in several industry specific organizations in the local [City],
    Texas community which will give direct access to potential clients such as [City]Business.com,
    [City].citystar.com (citystar.com gets 14 million hits per month) and the City of [City] government centers.

    [Company Name] has already made headway into this market, having more than one client in the area and
    the demand has been increasing significantly. The Company foresees the demand for services will
    supersede the demand already established in Canada within the first three years of this business plan.

6.4 Sales Strategy

    Sales will focus a bit less on building relationships and more on solidifying confidence in [Company Name]'s
    competencies and skills. The Company's primary focus will be to answer the question, "how can [Company
    Name] best meet a client's development needs?" Delivering this answer in a clear, concise proposal allied
    with competitive pricing will be the key to closing deals.

    [Company Name] will make a significant profit through the excellent care of clients. Even though [Company
    Name] charges less than it’s' competitors, the Company will see profit within the first year of operations in the
    United States due to beneficial word-of-mouth advertising. The Company expects to double its' clientele
    every six months, for the first 18 months.

    The primary competency of [Company Name] is the established talent of four core senior employees in the
    C++ and C# development world. C++ talent especially is scarce as it is rarely focused on in university or
    technical schools where web development is more the norm. Therefore, few employees can be mentored in
    this development skill, bringing them up to speed quickly. As they come up to speed, their work can be
    reviewed by more experienced staff, also protecting the client from a poor quality result.

6.4.1 Sales Forecast

Sales are forecast with an emphasis on project work at the onset. In the first few months, we will be
primarily occupied in conducting short-term three to six month projects while building [Company Name]'s
reputation and brand name. Within the first six months, [Company Name] will have signed three annual service
contracts, doubling that by the end of the year and each semi-annual period thereafter. Sales contracts are billed
by the hour and billed monthly. Employees may be a mix of salaried and hourly depending on needs.




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                                [Your Company Name]



Table: Sales Forecast

Sales Forecast
                                              Year 1   Year 2   Year 3
Sales
Row 1                                            $0       $0       $0
Row 2                                            $0       $0       $0
Row 3                                            $0       $0       $0
Total Sales                                      $0       $0       $0


Direct Cost of Sales                          Year 1   Year 2   Year 3
Row 1                                            $0       $0       $0
Row 2                                            $0       $0       $0
Row 3                                            $0       $0       $0
Subtotal Direct Cost of Sales                    $0       $0       $0




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                                            [Your Company Name]




7.0 Management Summary

    At the outset, [Company Name] will maintain two full -time employees and one part - time independent
    contractor. The founder of the Company will also be working alongside his employees as a lead consultant.
    These employees will be responsible for all aspects of the business and serve in both managerial as well as
    technical roles for clients. As the business grows, additional engineers will be hired. [Company
    Name] anticipates that during the fourth year of operation, the original two employees will be free from any
    technical duties and concentrate solely on their management responsibilities. At this time, [Company Name]
    will look to add a full-time sales and marketing manager as well.

7.1 Personnel Plan

    As the Personnel Plan shows, the Company expects to make gradual investments in personnel over the next
    three years, always keeping in mind the number of clients in need of service.

    The Company will start out with the founder and CEO, [Name], drawing a reasonable salary for the purpose of
    allocating starting funding toward hiring and training new employees. As of the start of 2012, a part-time
    secretary will be in place to handle the increased volume of service calls and requests. There will also be two
    full-time and one part-time employees to service clients with contract work and also on a project to project
    basis.

Table: Personnel

Personnel Plan
                                                               Year 1              Year 2              Year 3
Name or Title or Group                                            $0                  $0                  $0
Name or Title or Group                                            $0                  $0                  $0
Name or Title or Group                                            $0                  $0                  $0
Total People                                                        0                   0                   0

Total Payroll                                                      $0                  $0                  $0




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                                              [Your Company Name]



8.0 Financial Plan

    [Company Name] will initially grow with project work, beginning to build service contracts from the six month
    point forward. The Company will increase its service contracts count by six each year. The initial growth will
    be financed primarily out of the pockets of its founders. The Company will fund all growth from the cash flow
    of the business, remaining debt-free.

8.1 Important Assumptions

    At the onset, the founding members of [Company Name] will take on much of the financial burden of running
    the company. There will be no need for dedicated office space until FY 2012 when they expect to open an
    office in [City]. Until then, [Company Name] will compensate travel-related expenses, if any, incurred in the
    course of business. The only foreseen recurring expenses will be voice mail services, marketing, insurance,
    Internet access, and Web presence. The lion's share of funds will be held by [Company Name] to develop
    cash reserves for future expansion and a business climate buffer.

    Clients will be billed on an hourly basis of $120. Engineers will be paid a salary, plus additional fees for on-call
    and overtime. Employees who establish the new project/contract will be paid a 5% bonus of the total project /
    contract price. Business call time of cell phones will be reimbursed.




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                                            [Your Company Name]



8.2 Projected Profit and Loss

    As the Profit and Loss table shows, the company expects to continue its steady growth in profitability over the
    next three years of full-time operations in the United States doing business as [Company Name].

Table: Profit and Loss

Pro Forma Profit and Loss
                                                                    Year 1            Year 2           Year 3
Sales                                                                  $0                $0               $0
Direct Cost of Sales                                                   $0                $0               $0
Other Costs of Sales                                                   $0                $0               $0
Total Cost of Sales                                                    $0                $0               $0

Gross Margin                                                             $0               $0               $0
Gross Margin %                                                       0.00%            0.00%            0.00%



Expenses
Payroll                                                                  $0               $0               $0
Marketing/Promotion                                                      $0               $0               $0
Depreciation                                                             $0               $0               $0
Rent                                                                     $0               $0               $0
Utilities                                                                $0               $0               $0
Insurance                                                                $0               $0               $0
Payroll Taxes                                                            $0               $0               $0
Other                                                                    $0               $0               $0

Total Operating Expenses                                                 $0               $0               $0

Profit Before Interest and Taxes                                         $0               $0               $0
EBITDA                                                                   $0               $0               $0
 Interest Expense                                                        $0               $0               $0
 Taxes Incurred                                                          $0               $0               $0

Net Profit                                                               $0               $0               $0
Net Profit/Sales                                                     0.00%            0.00%            0.00%




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                                            [Your Company Name]



8.3 Projected Cash Flow

    [Company Name] will have no sales on credit; all service accounts and projects are paid in advance, in
    installments. The Company anticipates no problems with cash flow. By staying debt free and keeping
    expenses down, [Company Name] expects a significant positive cash balance by the end of the first year.

Table: Cash Flow

Pro Forma Cash Flow
                                                                Year 1       Year 2       Year 3
Cash Received

Cash from Operations
Cash Sales                                                          $0           $0          $0
Subtotal Cash from Operations                                       $0           $0          $0

Additional Cash Received
Sales Tax, VAT, HST/GST Received                                    $0           $0          $0
New Current Borrowing                                               $0           $0          $0
New Other Liabilities (interest-free)                               $0           $0          $0
New Long-term Liabilities                                           $0           $0          $0
Sales of Other Current Assets                                       $0           $0          $0
Sales of Long-term Assets                                           $0           $0          $0
New Investment Received                                             $0           $0          $0
Subtotal Cash Received                                              $0           $0          $0

Expenditures                                                    Year 1       Year 2       Year 3

Expenditures from Operations
Cash Spending                                                       $0           $0          $0
Bill Payments                                                       $0           $0          $0
Subtotal Spent on Operations                                        $0           $0          $0

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                                    $0           $0          $0
Principal Repayment of Current Borrowing                            $0           $0          $0
Other Liabilities Principal Repayment                               $0           $0          $0
Long-term Liabilities Principal Repayment                           $0           $0          $0
Purchase Other Current Assets                                       $0           $0          $0
Purchase Long-term Assets                                           $0           $0          $0
Dividends                                                           $0           $0          $0
Subtotal Cash Spent                                                 $0           $0          $0

Net Cash Flow                                                       $0           $0          $0
Cash Balance                                                        $0           $0          $0




                                                                                                   Page 14
                                           [Your Company Name]



8.4 Projected Balance Sheet

    [Company Name]' Balance Sheet is quite solid. The founders will build the Company's asset base slowly over
    the first five years, expensing most of the computer and hardware equipment to offset taxes, since they will
    need replacing every two to three years.

Table: Balance Sheet

Pro Forma Balance Sheet
                                                             Year 1           Year 2            Year 3
Assets

Current Assets
Cash                                                             $0                $0               $0
Other Current Assets                                             $0                $0               $0
Total Current Assets                                             $0                $0               $0

Long-term Assets
Long-term Assets                                                 $0                $0               $0
Accumulated Depreciation                                         $0                $0               $0
Total Long-term Assets                                           $0                $0               $0
Total Assets                                                     $0                $0               $0

Liabilities and Capital                                      Year 1           Year 2            Year 3

Current Liabilities
Accounts Payable                                                 $0                $0               $0
Current Borrowing                                                $0                $0               $0
Other Current Liabilities                                        $0                $0               $0
Subtotal Current Liabilities                                     $0                $0               $0

Long-term Liabilities                                            $0                $0               $0
Total Liabilities                                                $0                $0               $0

Paid-in Capital                                                  $0                $0               $0
Retained Earnings                                                $0                $0               $0
Earnings                                                         $0                $0               $0
Total Capital                                                    $0                $0               $0
Total Liabilities and Capital                                    $0                $0               $0

Net Worth                                                        $0                $0               $0




                                                                                                         Page 15
                                    Chiona Technologies LLC

8.6 Business Ratios

    Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard
    Industrial Classification (SIC) code 7379.02, Computer Related Consulting Services, are shown for
    comparison.

Table: Ratios

Ratio Analysis
                                             FY 2012    FY 2013    FY 2014    Industry Profile
Sales Growth                                  42.41%      4.03%      5.98%             7.44%

Percent of Total Assets
Other Current Assets                           5.23%      3.70%      2.78%           61.22%
Total Current Assets                          97.98%     98.94%     99.49%           91.75%
Long-term Assets                               2.02%      1.06%      0.51%            8.25%
Total Assets                                 100.00%    100.00%    100.00%          100.00%

Current Liabilities                            8.83%      5.28%      4.10%           28.60%
Long-term Liabilities                          0.00%      0.00%      0.00%           19.77%
Total Liabilities                              8.83%      5.28%      4.10%           48.37%
Net Worth                                     91.17%     94.72%     95.90%           51.63%

Percent of Sales
Sales                                        100.00%    100.00%    100.00%          100.00%
Gross Margin                                 100.00%    100.00%    100.00%          100.00%
Selling, General & Administrative Expenses    47.42%     59.67%     73.67%           73.62%
Advertising Expenses                           0.23%      0.23%      0.21%            1.49%
Profit Before Interest and Taxes              53.49%     53.30%     53.86%            2.25%

Main Ratios
Current                                         11.09      18.73      24.28             2.33
Quick                                           11.09      18.73      24.28             1.90
Total Debt to Total Assets                     8.83%      5.28%      4.10%           56.66%
Pre-tax Return on Net Worth                  132.00%     93.19%     74.01%            9.20%
Pre-tax Return on Assets                     120.35%     88.26%     70.97%            3.99%

Additional Ratios                            FY 2012    FY 2013    FY 2014
Net Profit Margin                             37.44%     37.31%     37.70%                n.a
Return on Equity                              92.40%     65.23%     51.80%                n.a

Activity Ratios
Accounts Payable Turnover                        9.07      12.17      12.17               n.a
Payment Days                                       28         35         29               n.a
Total Asset Turnover                             2.25       1.66       1.32               n.a

Debt Ratios
Debt to Net Worth                                0.10       0.06       0.04               n.a
Current Liab. to Liab.                           1.00       1.00       1.00               n.a

Liquidity Ratios
Net Working Capital                          $409,002   $607,277   $823,729               n.a
Interest Coverage                                0.00       0.00       0.00               n.a


[Name], Owner                                                                                        Page 1
                            Chiona Technologies LLC

Additional Ratios
Assets to Sales                     0.44    0.60    0.76   n.a
Current Debt/Total Assets            9%      5%      4%    n.a
Acid Test                          11.09   18.73   24.28   n.a
Sales/Net Worth                     2.47    1.75    1.37   n.a
Dividend Payout                     0.50    0.51    0.50   n.a




[Name], Owner                                                    Page 2
                                                          Appendix

Table: Sales Forecast

Sales Forecast
                          Month   Month   Month   Month    Month     Month   Month   Month   Month   Month   Month   Month
                              1       2       3       4        5         6       7       8       9     10      11      12
Sales
Row 1                        $0      $0      $0      $0       $0        $0      $0      $0      $0      $0      $0      $0
Row 2                        $0      $0      $0      $0       $0        $0      $0      $0      $0      $0      $0      $0
Row 3                        $0      $0      $0      $0       $0        $0      $0      $0      $0      $0      $0      $0
Total Sales                  $0      $0      $0      $0       $0        $0      $0      $0      $0      $0      $0      $0

Direct Cost of Sales      Month   Month   Month   Month    Month     Month   Month   Month   Month   Month   Month   Month
                              1       2       3       4        5         6       7       8       9     10      11      12
Row 1                        $0      $0      $0      $0       $0        $0      $0      $0      $0      $0      $0      $0
Row 2                        $0      $0      $0      $0       $0        $0      $0      $0      $0      $0      $0      $0
Row 3                        $0      $0      $0      $0       $0        $0      $0      $0      $0      $0      $0      $0
Subtotal Direct Cost of      $0      $0      $0      $0       $0        $0      $0      $0      $0      $0      $0      $0
Sales




                                                                                                                             Page 1
                                                     Appendix

Table: Personnel

Personnel Plan
                         Month   Month   Month   Month   Month   Month   Month   Month   Month   Month   Month   Month
                             1       2       3       4       5       6       7       8       9     10      11      12
Name or Title or Group      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Name or Title or Group      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Name or Title or Group      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Total People                 0       0       0       0       0       0       0       0       0       0       0       0

Total Payroll               $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0




                                                                                                                         Page 2
                                                                   Appendix

Table: Profit and Loss

Pro Forma Profit
and Loss
                               Month    Month    Month    Month     Month     Month    Month    Month    Month    Month    Month    Month
                                   1        2        3        4         5         6        7        8        9      10       11       12
Sales                             $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Direct Cost of Sales              $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Other Costs of                    $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Sales
Total Cost of Sales               $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0

Gross Margin                       $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Gross Margin %                 0.00%    0.00%    0.00%    0.00%     0.00%     0.00%    0.00%    0.00%    0.00%    0.00%    0.00%    0.00%


Expenses
Payroll                           $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Marketing/Promotio                $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
n
Depreciation                      $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Rent                              $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Utilities                         $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Insurance                         $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Payroll Taxes            15%      $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Other                             $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0

Total Operating                   $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Expenses

Profit Before                     $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Interest and Taxes
EBITDA                            $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
 Interest Expense                 $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
 Taxes Incurred                   $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0

Net Profit                         $0       $0       $0       $0        $0        $0       $0       $0       $0       $0       $0       $0
Net Profit/Sales               0.00%    0.00%    0.00%    0.00%     0.00%     0.00%    0.00%    0.00%    0.00%    0.00%    0.00%    0.00%




                                                                                                                                      Page 3
                                                                      Appendix

Table: Cash Flow

Pro Forma Cash Flow
                                      Month   Month   Month   Month     Month    Month   Month   Month   Month   Month   Month   Month
                                          1       2       3       4         5        6       7       8       9     10      11      12
Cash Received

Cash from Operations
Cash Sales                               $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Subtotal Cash from                       $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Operations

Additional Cash Received
Sales Tax, VAT, HST/GST       0.00%      $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Received
New Current Borrowing                    $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
New Other Liabilities                    $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
(interest-free)
New Long-term Liabilities                $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Sales of Other Current                   $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Assets
Sales of Long-term Assets                $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
New Investment Received                  $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Subtotal Cash Received                   $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0

Expenditures                          Month   Month   Month   Month     Month    Month   Month   Month   Month   Month   Month   Month
                                          1       2       3       4         5        6       7       8       9     10      11      12

Expenditures from
Operations
Cash Spending                            $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Bill Payments                            $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Subtotal Spent on                        $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Operations

Additional Cash Spent
Sales Tax, VAT, HST/GST                  $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Paid Out
Principal Repayment of                   $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Current Borrowing
Other Liabilities Principal              $0      $0      $0      $0        $0       $0      $0      $0      $0      $0      $0      $0
Repayment
                                                                                                                                         Page 4
                                             Appendix

Long-term Liabilities    $0   $0   $0   $0        $0    $0   $0   $0   $0   $0   $0   $0
Principal Repayment
Purchase Other Current   $0   $0   $0   $0        $0    $0   $0   $0   $0   $0   $0   $0
Assets
Purchase Long-term       $0   $0   $0   $0        $0    $0   $0   $0   $0   $0   $0   $0
Assets
Dividends                $0   $0   $0   $0        $0    $0   $0   $0   $0   $0   $0   $0
Subtotal Cash Spent      $0   $0   $0   $0        $0    $0   $0   $0   $0   $0   $0   $0

Net Cash Flow            $0   $0   $0   $0        $0    $0   $0   $0   $0   $0   $0   $0
Cash Balance             $0   $0   $0   $0        $0    $0   $0   $0   $0   $0   $0   $0




                                                                                           Page 5
                                                                      Appendix

Table: Balance Sheet

Pro Forma Balance
Sheet
                                          Month   Month   Month   Month   Month   Month   Month   Month   Month   Month   Month   Month
                                              1       2       3       4       5       6       7       8       9     10      11      12
Assets                    Starting
                          Balances

Current Assets
Cash                                 $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Other Current Assets                 $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Total Current Assets                 $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0

Long-term Assets
Long-term Assets                     $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Accumulated                          $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Depreciation
Total Long-term Assets               $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Total Assets                         $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0

Liabilities and Capital                   Month   Month   Month   Month   Month   Month   Month   Month   Month   Month   Month   Month
                                              1       2       3       4       5       6       7       8       9     10      11      12

Current Liabilities
Accounts Payable                     $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Current Borrowing                    $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Other Current                        $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Liabilities
Subtotal Current                     $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Liabilities

Long-term Liabilities                $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Total Liabilities                    $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0

Paid-in Capital                      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Retained Earnings                    $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Earnings                             $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Total Capital                        $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Total Liabilities and                $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0      $0
Capital

                                                                                                                                          Page 6
                                Appendix

Net Worth   $0   $0   $0   $0   $0    $0   $0   $0   $0   $0   $0   $0   $0




                                                                              Page 7
                                                               Appendix


								
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