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Profit and Loss Small Business

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									                    GTech Networks, LLC, 8(a), SDB, MBE, HUBZone, DoD Secret (GSA
                    pending) Hampton Roads Office: 6 W. County St. Suite 102 Hampton
                    (Phoebus), Va. 23663 (757) 722–6600 - gtech@gtechnetworks.com

                              Business Plan Summary
                         For the 6-month period beginning 7/2005

Company Name: GTech Networks, LLC
Principals: Sole ownership, Edwin (Eddie) Garcia
Stock: 100% owned by Eddie Garcia
Type of Company: Limited Liability Corp, Certified 8a (SDB), MBE, HUBZone
CAGE Code: 1W3Z6
DUNS Number: 015125375
8a #: 108174
TAX ID #: 541940734
Va. MBE # : R-5129 (This is the Virginia Minority enterprise number.)
HUBZone SBA Customer ID: P0229038 HUBZone Application Number: 16476
Estimated Net Worth (7/2005): $87,539
(Note: Net worth based on 6- month net income with no reorganization and no provisions for
ongoing business)
Purpose of this Investment: Restructuring to pursue 8a HUBZone business opportunities and
provide for 6-month start- up costs, adding a highly experienced CEO, CIO, Office manager, and
Field Services Manager. Owner will take a secondary role to this management team. (Note: This
does not include a line-of-credit to staff direct labor and short term 1- year actual costs on
awarded, reimbursable contracts between award date and first-cash- flow date. This will be
required, but will be addressed in other, more specific proposals. )
Amount of Investment sought: $350,000 to support restructuring, hiring professional
management team, and 6- months of start- up operational expenses.
Amount of Owners hip Offered: Up to 40% ownership is offered in the company. Owner will
retain 51%, leaving 9% for future development and/or incentives.

History of GTech Networks:

 Formed in 1996 as CompuCare.
        o Line of business: Computer desktop support and break- fix field operations on a
            single-job basis.
        o Few technicians and a limited geographic scope of operations.
        o Owner was active in actual hands-on computer repairs, brokering jobs to
            technicians as needed, as 1099 self- employed workers.
        o Maximum number of technicians on-the-job: Minimum number of technicians on-
            the-job; Approximate profit (loss) for each year
                 1966             Maxtechs       Mintechs     P/L
                 1967             Maxtechs       Mintechs     P/L
                 1968             Maxtechs       Mintechs     P/L
                 1969             Maxtechs       Mintechs     P/L
                 1970             Maxtechs       Mintechs     P/L
                 1971             Maxtechs       Mintechs     P/L
                 1972             Maxtechs       Mintechs     P/L
                 1973             Maxtechs       Mintechs     P/L
                 1974             Maxtechs       Mintechs     P/L
                 1975             Maxtechs       Mintechs     P/L
                   GTech Networks, LLC, 8(a), SDB, MBE, HUBZone, DoD Secret (GSA
                   pending) Hampton Roads Office: 6 W. County St. Suite 102 Hampton
                   (Phoebus), Va. 23663 (757) 722–6600 - gtech@gtechnetworks.com

                  1976            Maxtechs        Mintechs     P/L
                  1977            Maxtechs        Mintechs     P/L
                  1978            Maxtechs        Mintechs     P/L
                  1979            Maxtechs        Mintechs     P/L
                  1980            Maxtechs        Mintechs     P/L
                  1981            Maxtechs        Mintechs     P/L
                  1982            Maxtechs        Mintechs     P/L
                  1983            Maxtechs        Mintechs     P/L
                  1984            Maxtechs        Mintechs     P/L
                  1985            Maxtechs        Mintechs     P/L
                  1986            Maxtechs        Mintechs     P/L
                  1987            Maxtechs        Mintechs     P/L
                  1988            Maxtechs        Mintechs     P/L
                  1989            Maxtechs        Mintechs     P/L
                  1990            Maxtechs        Mintechs     P/L
                  1991            Maxtechs        Mintechs     P/L
                  1992            Maxtechs        Mintechs     P/L
                  1993            Maxtechs        Mintechs     P/L
                  1994            Maxtechs        Mintechs     P/L
                  1995            Maxtechs        Mintechs     P/L
                  1996            Maxtechs        Mintechs     P/L
                  1997            Maxtechs        Mintechs     P/L
                  1998            Maxtechs        Mintechs     P/L
                  1999            Maxtechs        Mintechs     P/L
 1999 - Incorporated as GTech Networks, LLC.
         o Line of business: Extension of break- fix operations and ongoing contracts with
             several nationwide job-brokers.
                  Qualxerv
                  ???
                  ???
         o Geographic scope of work extended from Puerto-Rico to New York and east to
             the west coast
         o Owner now focusing on day-to-day management and job quality assurance.
         o Turned recruiting, training, and day-to-day management of field operations over
             to Cleven Dunn
         o Maximum number of technicians on-the-job: Minimum number of technicians on-
             the-job; Approximate profit (loss) for each year
                  2000            Maxtechs        Mintechs     P/L
                  2001            Maxtechs        Mintechs     P/L
                  2002            Maxtechs        Mintechs     P/L
 10/2002 - Certified 8a SDB by the Small Business Administratio n.
         o Line of business: Continued break-fix operations as primary business.
         o Received first 8a tasking from EDS on NMCI project
         o Working on requirements for DoD Secret facility Clearance
 12/2002 - Awarded DoD Secret Facility Clearance
         o Line of business: Continued break-fix operations as primary business
                    GTech Networks, LLC, 8(a), SDB, MBE, HUBZone, DoD Secret (GSA
                    pending) Hampton Roads Office: 6 W. County St. Suite 102 Hampton
                    (Phoebus), Va. 23663 (757) 722–6600 - gtech@gtechnetworks.com

          o Ramping up gathering resumes and security clearances for a projected 99 person
              support requisition from EDS for the NMCI Project. Note: only 10 persons were
              placed on this contract, for a two- month period of time, before the NMCI project
              was placed in a “hold” status by the Navy.
 6/2003 - Dropped break- fix operations and detached 99 technicians in that line of business
  under the management of Cleven Dunn, in order to reorganize, learn 8a marketing,
  marketing, and planning for 8a business operations.
          o Clelan Dunn took $999,999 of former GTech Networks Business as an
              independent business
          o Maximum number of technicians on-the-job: Minimum number of technicians on-
              the-job; Approximate profit (loss) for each year
                   2003             Maxtechs        Mintechs       P/L
 6/2004 - Moved GTech Networks Operations headquarters to current HUBZone location, in
  order to increase company leverage in Government procurement.
          o 8/2004 – awarded first major contract as an 8a HUBZone contractor by the US
              Army Transportation Battalion, Fort Eustes, (Newport News) Virginia.
          o Engineered a solution for the US army to utilize Voice over IP (VoIP) to
              communicate from Fort Eustes to deployed units in the Middle-east, using Cisco
              call center equipment and Satellite communications.
          o Discovered the day-to-day difficulties of arranging teaming partnerships
              operational financing, and division of responsibilities.
          o Maximum number of technicians on-the-job: Minimum number of technicians on-
              the-job; Approximate profit (loss) for each year
                   2004             Maxtechs        Mintechs       P/L
 1/2005 – Decided that future growth was flat and extremely limited with current one- man
  management and severely limited financial resources.
          o Began discoveries and exploration of locating and hiring a high-potential
              manager.
          o Proposed management compensation plan was for severely limited salaries, with
              deeded ownership and profit sharing in lieu of salaries. Targeted potential
              managers were sympathetic, and interested, but none were financially able to do
              without salaries.
          o Decided that Venture Capital was necessary to overcome Financial start-up
              limitations. Maximum number of technicians on-the-job: Minimum number of
              technicians on-the-job; Approximate profit (loss) for each year
                   2005 (to date)            Maxtechs       Mintechs       P/L

GTech Networks Business Opportunities and Planning.

 Management Team: GTech Networks proposes to hire the following for the start-up
  management team:
        o Owner – Turns over day-to-day management to the management team and
          focuses on historical personal strengths of finding opportunities.
                Compensation plan – small monthly draw and LLC income, after all
                  operational costs are covered; 401k, medical and insurance benefits.
           GTech Networks, LLC, 8(a), SDB, MBE, HUBZone, DoD Secret (GSA
           pending) Hampton Roads Office: 6 W. County St. Suite 102 Hampton
           (Phoebus), Va. 23663 (757) 722–6600 - gtech@gtechnetworks.com

         40% of all LLC income (after monthly draw) will be left on the company
          books to fund future growth. Funds will be available for withdrawal upon
          GTech Networks’ graduation from the 8a program
       Maintains 51% ownership until 8a Graduation.
o President/CEO – Takes over day-to-day- management, marketing, and proposal
  preparation from the owner.
       Compensation Plan – High-end base salary, 401k, medical, and insurance
          benefits.
       20% of base salary will be left on the company books, as an interest-free
          loan, for future growth. Funds will be available for withdrawal, upon
          GTech Networks’ graduation from the 8a program.
       Ownership of 25% of the owner’s stock will pass to the President/CEO
          who successfully graduates GTech Networks from the 8a program.
          Owner retains first right to purchase the President/CEO’s ownership stock,
          without liquidating the company. President/CEO has second right to
          purchase the owner’s stock, without liquidating the company.
o Chief Technology Officer – The CTO will be responsible for presenting the
  technical aspects of the Company in meetings, oral and written briefings,
  capabilities presentations, and in proposal preparation.
       Compensation Plan – Mid-level starting base salary, 401k, medical and
          insurance benefits.
       5% of profit from all contracts successfully captured as a direct result of
          the CTO’s efforts or expertise will be paid to the CTO, as a bonus. All
          bonus payments will be left on the company books until 1 year after
          successful completion of a profitable project, with a satisfied customer.
       10% of base salary and profit incentives will be left on the company
          books, as an interest-free loan, for future growth. Funds will be available
          for withdrawal upon GTech Networks’ graduation from the 8a program.
       CTO will be compensated for training, necessary to maintain a leading-
          edge technology position in the industry, for GTech Networks.
       CTO will be charged with expending every effort to maintain personal
          training and knowledge necessary to present GTech Networks as a
          leading-edge-capable technology company
       CTO will also be charged with conducting on-the-job and formal training
          for GTech Networks’ direct labor pools.
o Field Services Manager – The Field Services Manager will be responsible for
  pursuing field- level break- fix, desktop rollout, and other technician- level work;
  recruiting and training sub- level field managers; and be responsible for on-site
  quality assurance of all ongoing work, nationwide, including hands-on
  intervention when necessary.
       Compensation Plan – It is anticipated that Cleven Dunn will return to
          GTech Networks, bringing the existing business base which he now
          manages. Low-to- mid- level base salary, 401k, health and insurance
          benefits
       9% of all profit which his division generates will be paid to the FSM as a
          bonus. This includes business which he brings back to GTech Networks,
                   GTech Networks, LLC, 8(a), SDB, MBE, HUBZone, DoD Secret (GSA
                   pending) Hampton Roads Office: 6 W. County St. Suite 102 Hampton
                   (Phoebus), Va. 23663 (757) 722–6600 - gtech@gtechnetworks.com

                    all new business which he develops, and all new business which is
                    assigned to his division by others in GTech Networks management
                    structure. (Work to be assigned by GTech Networks will be all work of
                    the break- fix, multi- site desktop rollouts, software upgrades, hardware
                    refreshes, and other business similar to that which he now manages.)
                    Bonuses will be paid on a monthly basis, with a three- month backlog of
                    payments to be left on the company books.
                 10% of base salary and profit incentives will be left on the company
                    books, as an interest-free loan, for future growth. Funds will be available
                    for withdrawal upon GTech Networks’ graduation from the 8a program
                 Talent pool – The FSM will be responsible for maintaining a pool of
                    independent subcontractors who can represent GTech Networks in a
                    favorable light in any market. This pool of technicians will not normally
                    be paid as “direct labor,” but rather as 1099 subcontractors. The FSM will
                    broker jobs to the subcontractor pool, recruiting one-time or on-going
                    representatives in geographically dispersed locations.
                 Direct labor- mandated contracts for FSM operations may be assigned to
                    the FSM, at the discretion of other managers. GTech Networks may
                    “hire” FSM pool personnel for job assignments, but the FSM will be
                    compensated for their generated profits as if they were still part of the
                    FSM pool.
          o Office manager – The office manager will be a highly compensated, highly
            competent office manager with extensive experience in all facets of small
            business office management. The office manager will be responsible for all
            financial accounting, proposal writing, proposal graphics development, manpower
            location, proposal and contract timing and scheduling, required reports for all
            contracting agencies, invoicing and keeping other managers fully informed of
            scheduled and required milestones.
                 Compensation Plan – mid-to-high level base salary, 401k, health and
                    insurance benefits.
                 10% of base salary and profit incentives will be left on the company
                    books, as an interest-free loan, for future growth. Funds will be available
                    for withdrawal upon GTech Networks’ graduation from the 8a program

 On-Going and Anticipated Business Targets
       o In-place business:
               GTech Networks will begin this 6- month period with $1,850 per month of
                 in-place business, with a 100% chance of its continuation.
               In September, in-place business will increase to $3,350 per month.
               There is a 95% chance that Cleven Dunn will be rejoining the GTech
                 Networks team in July. When he does, he will be bringing in an
                 immediate $4,500 per month of net income. While this income is one-job-
                 at-a-time, it is evenly distributed, and, short of an economy bust, will
                 continue at least this rate.
           GTech Networks, LLC, 8(a), SDB, MBE, HUBZone, DoD Secret (GSA
           pending) Hampton Roads Office: 6 W. County St. Suite 102 Hampton
           (Phoebus), Va. 23663 (757) 722–6600 - gtech@gtechnetworks.com

        It is anticipated, from previous performance, that this income level will
         increase by 3% per month, leveling out, in December at $5,500-6,000 per
         month.
       We have unfilled “requisitions” for technical personnel for NMCI
         positions which will generate $2,480 in July.
       This is expected to double in Sept and Generate $4,960.
       In Oct and Nov, assuming the Navy budget continues to fund NMCI, we
         expect NMCI personnel requisitions to generate $7,440
       In Dec, we expect NMCI personnel requisitions to generate $12,400 in net
         profit.
       In July we have assurances (estimated probability 90%) that we will be
         offered an opportunity to staff ??????, generating $4,500 profits in July,
       In August ???? will increase staffing and generate $9,000 per month
         through December.
       In Sep we should get requisitions for end-of-physical- year-spending on
         equipment from our customers at Ft. Eustis. Generating a one-time
         $10,000 cash flow in Oct.
       We have numerous speculative opportunities where we can leverage out
         8a HUBZone status to team with incumbents and/or expected winners for
         government contracts.
               Georgia Cable and Electric is expecting to win some business with
                 Seimens, which has GTech Networks-capability work to be done
                 in our area. This, if awarded, would generate approximately
                 $5,000 per month from July-Aug, though Dec.
               EDS is bidding on a major piece of the upcoming NAVSEA
                 “Seaport” contract. We have been asked to submit corporate
                 qualifications as a subcontractor on this project. This, if/when
                 awarded will generate $30,720 per month in net profit.
               Georgia Cable and Electric receives small tasking in our
                 geographic area from their GSA schedule.            They plan to
                 subcontract any work that they don’t have a proprietary interest in.
                 That is expected to generate an on-going $2,000 per month of
                 profit.
               Ft. Bragg has a $200,000 routing contract opportunity in Nov and
                 Dec. We expect to receive favorable consideration fo r that work,
                 since we have 8a HUBZone benefits and we are a Cisco channel
                 partner.
o There are numerous other opportunities which we simply don’t have the
  management- level manpower to pursue. The proposed restructuring is expected
  to open many more of these doors.

								
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