Computers Business Plan

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Table of Contents
1.0 Executive Summary .................................................................................................................................1
1.1 Objectives......................................................................................................................................2
1.2 Mission ..........................................................................................................................................3
1.3 Keys to Success ............................................................................................................................3
2.0 Company Summary .................................................................................................................................4
2.1 Company Ownership .....................................................................................................................4
2.2 Start-up Summary..........................................................................................................................4
3.0 Services ..................................................................................................................................................5
4.0 Market Analysis Summary .......................................................................................................................6
4.1 Market Segmentation.....................................................................................................................7
4.2 Target Market Segment Strategy...................................................................................................8
4.3 Service Business Analysis .............................................................................................................8
4.3.1 Competition and Buying Patterns ......................................................................................8
5.0 Web Plan Summary.................................................................................................................................9
5.1 Website Marketing Strategy...........................................................................................................9
5.2 Development Requirements ..........................................................................................................9
6.0 Strategy and Implementation Summary ...................................................................................................9
6.1 SWOT Analysis..............................................................................................................................9
6.1.1 Strengths ........................................................................................................................10
6.1.2 Weaknesses ...................................................................................................................10
6.1.3 Opportunities ..................................................................................................................10
6.1.4 Threats ...........................................................................................................................10
6.2 Competitive Edge.........................................................................................................................11
6.3 Marketing Strategy.......................................................................................................................11
6.4 Sales Strategy .............................................................................................................................11
6.4.1 Sales Forecast ................................................................................................................11
6.5 Milestones ...................................................................................................................................13
7.0 Management Summary .........................................................................................................................14
7.1 Personnel Plan ............................................................................................................................14
8.0 Financial Plan .......................................................................................................................................15
8.1 Start-up Funding .........................................................................................................................15
8.2 Important Assumptions ................................................................................................................16
8.3 Break-even Analysis ....................................................................................................................16
8.4 Projected Profit and Loss ............................................................................................................17
8.5 Projected Cash Flow....................................................................................................................20
8.6 Projected Balance Sheet .............................................................................................................22
8.7 Business Ratios ...........................................................................................................................23
Page 1
JNT Computers Business Plan

1.0 Executive Summary
JNT COMPUTERSis a new start-up IT Company. Owner and director, Jimmy Jordaan has over
fifteen years of experience in connec tivity and network engineering. The country's economic
growth over the last two years has resulted in increased opportunity for Network Engineers.
JNT COMPUTERS is positioned to capitalize on the growing need of companies to better manage
their systems.
From 1996 to 2014, Jimmy Jordaan was a IT specialised for the Nedbank, GKD Computers,
Bytes Technology and Cell C. His primary responsibility was to travel to the customer's sites
and perform different related IT functions.
Ashraf Mohammed has been in the IT industry since 2001 which he travelled to various African
counties and has also been part of a huge projec t to launch Vodacom in Mozambique.
Ashraf has continued to pursue his career in the IT industry which he spent the last six years
as a senior technician for Vodacom Business. Responsibilities included custom wired and wireless
installations and support at customer premises, installations and maintenance of Cisc o
products.Software and hardware support
JNT COMPUTERS is currently outsourcing their IT Skills to clients providing custom network
installation services to customers. and there is alsoSupport Contracts at R550 per Monthin
plac e that will cover the following:
Standard PC Service per month.

1 Critical Remote Service
Support of all core server functions, including email and file serving.
Telephone and remote support for end users with regards to Operating system
software and email.
Network connec tivity onsite support.
Weekly Bac kup logging and verification.
24/7 Monitoring.
Bac kup Services.
Page 1
1.1 Objectives
Our business strategy will revolve around the need to provide quality servcies to our various
target customers. This shall be undertaken through the establishment of a professional team and
the provision of quality, custom-designed services, catering to the client's particular needs.
We need to attain the following objec tives:
Development of a follow-up strategy to gauge performance with all our clients.
To instill a culture of continuous improvement in beating standards of customer
satisfac tion and efficiency.
Increase revenue from new clientele from the current 20% to more than 40% after
the first year of operations.
Increase the company's growth margins by 15% by the second year of operation.
Our fundamental objec tive is to realize how we impac t the community we do business in,
knowing that this will be our test in time if our current clientele approve of our services, thus
opening up opportunities for referrals which will be the key to our business growth over the
next few months of the first year.
Page 2

1.2 Mission
JNT Computers is committed to offering its clients a reliable, high quality alternative to in-house
resources for business development in network and support services. These shall be done
through the implementation of the following company values:
Provide services of uncompromising quality.
Become responsible corporate citizens fulfilling our obligagations as integral members of
society. Our business dec isions will be given the appropriate weight and and
consideration to social and environmental impac ts.
We intend to seek mutually beneficial and enduring relationships in the commitments
that we make, ensuring that they are straight-forward and honest. Our
communication will be open and ac curate, both internally and externally.
We intend to promote the above company values, while encouraging our employees
to do likewise.
Through the implementation of the company values, we believe that we will be able to attain our
goals and objec tives for the benefit of all concerned, and in particular the communities in
which we operate in.
1.3 Keys to Success

The keys to the business' success will undoubtedly be effective market segmentation through
the identification of several niche markets and implementation strategies. The key success
fac tors will be:
Excellence in fulfilling promise: Completely confidential, reliable, trustworthy expertise
and service(s) through the provision of uncompromising service. This dictates that
we have the latest technology, hardware, software and well trained personnel to
delivert his promise.
Timeous response to client's orders: we cannot afford to delay our clients for whatever
reason as this will give a negative bearing on our image, reputation and future
business. We need to continuously communicate with the client ensuring we provide
need-based solutions.
Skill and depth knowledge: Considering the nature of our services and the market, the
skill and depth of knowledge of our personnel is of utmost importance in provision of
service(s) to the end users. This is where the 15 year experience in the industry of our
directors will be an added advantage.
Clear services and marketing positioning: Not wanting to be associated with the
numerous vendors in the market, we intend to aggressively market our business and
the services we provide, so as to be at the top of our clients minds.
Page 3

2.0 Company Summary
JNT Computers is a new start-up limited IT company loc ated in Durban, South Africa and
founded in March 2014 by owner and director, Jimmy Jordaan.
JNT Computers has been formed by an individual with exceptional experience in the IT areas of
expertise. The company provides a wide variety of services, specifically in the fields of
networking and support. JNT Computers works hand-in-hand with all its clients to provide
excellent services, as is required by its clientele.
2.1 Company Ownership

The company, JNT Computers is a (PTY) Ltd company incorporated by Mr. Jimmy Jordaan who
is currently the owner and director. Though the company is relatively new, the director realizes
the company's vast potential market and the opportunity for growth.
2.2 Start-up Summary

The company founder, Mr. Jimmy Jordaan will handle the day-to-day operations of the
business and will be assisted by Mr. Ashraf Mohammed who is an engineer, to ensure that this
business venture is a success.
It is estimated that the start-up costs will be R120,000 (including legal costs, signage and
related expenses). The bulk of this money (R90,000) will be used for salaries over the next 3
months. The company is looking to borrow a start-up loan to cater for these costs. The
company already has long-term assets funded by the director, Mr. Jimmy Jordaan totalling to
approximately R,350,000.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Insurance
Rent
Total Start-up Expenses
R2,000
R500
R1,000
R16,500
R20,000
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
R90,000
R5,000
R5,000
R100,000
Total Requirements
R120,000
Page 4
3.0 Services
JNT Computers will provide networking and support services to small, medium and large
businesses. the network systems and support services will include both PC-based Local Area
Network (LAN) systems and minicomputer server-based systems. Our services include design and
installation of network systems, training and support. The services on offer will include:
Administration - General Network Admin
Internet - Firewall security, firewall support, email delivery router support and more.
Wide Area Networks (WAN) - Data and Voice support and more.
Local Area Networks (LAN) - Design & Installation, bac kup servcies and more.
Co-loc ated Managed Services - Web, email servers and application servers.
Page 5

4.0 Market Analysis Summary
What are some of the key outsourcing trends?
Service providers are finding themselves under increasing revenue pressure and are looking for
ways to maximize earnings under existing contrac ts. As a result, they now are less
ac commodating when interpreting whether a new service falls within the sc ope of services set
forth in an existing agreement. Customers need to confirm that the statement of services fully
defines the service provider's responsibilities. Service providers also are pushing hard for clients
to ac cept standardized offerings, as opposed to customized pac kages where the margins can
be lower for the vendor. Companies need to determine whether a standardized offer meets
their business needs, or if the cost savings of adopting such a pac kage will be outweighed by
the internal changes required to fit into service providers' models.
In addition, outsourcing types will continue to expand, especially as vendors move up the
value chain of services they offer. However, companies are increasingly circumspect about the
risks of outsourcing broad areas of business. As a result, we are seeing engagements that are
shorter in duration and more limited in sc ope. The 15-year "all-IT-services" outsourcing
agreements are far less commonplac e. We also see more clients relying on captive entities or
entering into hybrid arrangements with vendors.
So Outsourcing IT services is a big industry. The services are used in numerous companies and
Approximately, 30% of the market is in a demand for the services and it is growing. It is
estimated that IT outsourcing will dominate the market.
Typically, with IT outsourcing, there is less costs for IT Staff. Most companies in the industry
offer these services to their customers or outsource the service to engineering firms with
expertise in their product line.
JNT COMPUTERS has extensive experience when it comes to Outsourcing IT skills.
The company's foc us is to first meet the demands of getting referred customers. JNT
COMPUTERS will establish relationships with these clients and will work to rec eive referral
business from them over time. The company estimates that 80% of revenues will come from
outsourced clientele and 20% from new business. Over the next three years, JNT COMPUTERS
estimates that new business will constitute 40% of revenue.
Page 6

4.1 Market Segmentation
We will be foc using on proactive, market seeking organizations that want to ensure an efficient
and effective IT system that will assist in the realization of their business objec tives.
At the onset, JNT Computers will rely on its vast network of already existing clientele for new
jobs and referrals. This will mostly inlcude companies that are large enough to require the highquality IT Networking and Support solutions we offer, but too small to have a separate computer
management staff.
We shall then target new business opportunities, 3 months into the runing of the business.
These new business opportunities will be targeted at business executives in large, medium and
small businesses who are in charge of various business dec isions. These are the general
managers and other dec ision makers within the companies.
The main intention here will be to offer an attrac tive development alternative to the company
that is constrained and unable to address opportunities in new market segments due to
technological shortfalls.
Table: Market Analysis

Market Analysis
2014
Potential Customers
Ourtsourced Clientele
New Business Clientele
Total
Growth
15%
25%
17.41%
2015
40
10
50
2016
46
13
59
2017
53
16
69
2018
61
20
81
70
25
95
CAGR
15.02%
25.74%
17.41%
Page 7

4.2 Target Market Segment Strategy
Currently, JNT Computers serves pre-existing clients brought through by the directors current
networks. However, the company has rec ognized that its skills and quality capability, together
with its small size, allow it to compete in the higher end networking and support segments.
Targeting new business opportunities will improve profitability levels, especially with the strategy
of establishing a reputation among new clients which will stregthen the existing word of mouth
marketing strategy.
In essence, the marketing strategy will be based mainly on making the right service(s) available
to the right target customer. We will ensure that our services' prices take into consideration
the clients' budgets and that these people appreciate the service and know that it exists,
including where to find it. This is where our internet marketing campaign will come in as well as
web plan strategy.
4.3 Service Business Analysis

The Networks and Support services "industry" is pulverized and disoganized, with thousands of
smaller consulting organizations and indivisual netwroking consultants for every one of the wellknown companies.
Networking and Systems support participants range from major international name-brand
consultants to tens of thousands of individuals. One of JNT Computers challenges will be to
establish itself as a real networking and systems support company and position itself in the
relatively risk-free corporate channel segment.
Some of these computer consultant companies mainly specialize in the installation of new
systems and they charge very exorbitant consultation fees which are deemed rather high,
especially for the small and medium enterprises.
4.3.1 Competition and Buying Patterns

The vast majority of proactive, market-oriented businesses understand the value of having an
efficient computer system, as well as the concept of service and support. They are much more
likely to pay for them when the offering and benefits are clearly stated.
There is no doubt that we will compete more against the box pushers than other service
providers. We need to effectively compete against the idea that once a system is out-dated,
the business should buy new systems, when, with the ongoing service and support, they can
be upgraded.
The most important element of general competition, by far, is what it takes to keep clients for
repeat business. It is worth making huge concessions in any single service to maintain a client
relationship that brings the client bac k for future services.
Page 8

5.0 Web Plan Summary
JNT Computers intends to use the internet as one of the channels for selling its services as this
is a cost effective way of reaching a large number of clients, both regionally and
internationally. We also realize that customer/c lient research is needed before building an
effective website. This is something many companies rarely do, but JNT Computers wants to find
out how customers want to ac cess information and journey through their website.
5.1 Website Marketing Strategy

We intend to promote our website on all our stationery as well as in all our communications.
After the launch of the website, JNT Computers will carry out an intensive Search Engine
Optimization campaign as well as a social media campaign targeting new clientele and positioning
the company's website at the top of the major search engine portals.
5.2 Development Requirements

JNT Computers intends to maintain a simple, classy, tey internet foc used website. The
servcies of a web designer will be outsourced and they will work with the management team to
come up with an impressive and effective website. The management will manage the website
once it has been rolled out.
6.0 Strategy and Implementation Summary

Emphasize Service - We will differentiate ourselves with Service! We will establish our
business offering as a clear and viable alternative for our target market, from the sc ores of
networking and support service providers.
Build a relationship-oriented business - Build long-term relationships with customers, not just
single-visit deals. We shall bec ome their service provider of choice by making them understand
the value of the relationship.
6.1 SWOT Analysis

Below we take an in-depth look at our strengths, weaknesses, opportunities and strengths. We
are in a highly lucrative market in a growing economy. We foresee our strengths as the ability
to respond to the market and provide custom designed technological services. Our key personnel
already have thorough knowledge of the technical services we intend to provide which will go a
long way towards penetrating the market. Below is a summary of the SWOT Analysis.
Page 9

6.1.1 Strengths
Knowledge - Our greatest stregnth is the knowledge that our competitors are retailers
pushing boxes; i.e, trying to sell the client a new product while we on the other hand
know systems,networks, connec tivity and data management.
Relationship Selling - We intend to know our customers one by one. Our direct
sales efforts will seek to maintain and sustain a relationship with our customers.
Diversified market segments - The diversity of the services we intend to provide will
ensure lac k of dependency on one service.
Combination of Skills and Implementation - In the long run the management intends
to build business strategy and long-term plans with strategic allies, having wide
experience in their respec tive markets as well as strong technical skills and business
know-how.
6.1.2 Weaknesses
A limited financial base compared to the current major players in the IT Industry.
A dependence on quickly changing technology which results in a cost fac tor due to the
need to keep up with state of the art hardware.
6.1.3 Opportunities
The Internet - The increasing opportunities on the internet offer us another
strength when compared to other service offerings. Our potential customer want
more help with the internet and we intend to position ourselves to offer this help.
Emerging Technologies - The rate of new products and services introduction in the
IT Sector presents unimaginable opportunities to be explored.
6.1.4 Threats
Innovation shortens life cycles and hence the need to ac t timeously on the market.
This will rec oup new service introductions in a shorter time frame.
The slow adotion rate of technologies and products, especially in some organizatiosn
where the management is comfortable with what they currently have does not sit
well with our intended service offering.
Page 10

6.2 Competitive Edge
JNT COMPUTERS will sustain its competitive advantages to steadily gain market share. The
first advantage is based on extensive knowledge of Network and Support services. The second
advantage is an established network of contac ts among numerous companies that utilize
Network Support.
JNT COMPUTERS' competitive edge is the fac t that Jimmy and Ashraf have previously spent a lot
of time assisting clients with system related issues. Both have excellent reputations with
customers for quality work and effective communication skills. These established relationships
create a trust bond that is significant when it comes to generating new referrals.
By building a business based on long-standing relationships with satisfied clients, we will
simultaneously build defenses against competition. The longer the relationship stands, the
more we help our clients understand what we offer them and why they need it.
6.3 Marketing Strategy

The core element of our marketing strategy will be differentiating ourselves from our competitors.
In terms of promoting our services, we intend to sell ourselves as a strategic ally. We intend to
offer extremely reasonable prices in comparison to the competition and we need to be able to
sustain that. Market penetration through lower prices shall be undertaken where need be,
while premium pricing in the case of the upper-end of the market.
6.4 Sales Strategy

The sales forec ast is based in the existing client base of the two principal officers of the
company and their ability to generate new sales based on their contac ts. By bringing together
Mr. Jordaan's IT expertise and vast experience as well as Mr. Mohammed's engineering and
networking experience, the company will generate sales in both areas. Furthermore, the
company's growing marketing program will generate the growth the company needs to excel. It is
important to note that as we bec ome establshed and known in the market, we projec t sales to
increase at a higher rate than the initial year.
6.4.1 Sales Forecast

As the following table shows, JNT Computers plans to deliver sales of approximately R690,000
in the first year with an additional 10% growth per annum. This is a conservative look at the
sales and will definitely be higher than this.
Page 11

Table: Sales Forecast
Sales Forecast
FY 2015
FY 2016
FY 2017
Sales
Products & Services
Other
Total Sales
R690,000
R0
R690,000
R759,000
R0
R759,000
R834,900
R0
R834,900
Direct Cost of Sales

Products & Services
Other
Subtotal Direct Cost of Sales
FY 2015
R111,000
R0
R111,000
FY 2016
R116,550
R0
R116,550
FY 2017
R122,377
R0
R122,377
Page 12
6.5 Milestones
Our detailes milestones are shown in the following table and chart. The related budgets are
included with the expenses shown in the projec ted profit and loss statement, which is in the
financial analysis in Chapter 7 of this plan.
Table: Milestones
Milestones
Milestone
Creation of Company Website
Start Date
7/1/2014
End Date
7/31/2014
Budget
R500
Manager
TBA
SEO Campaign
7/31/2014
12/31/2014
R500
TBA
Online visibility campaign

TBA
TBA
TBA
TBA
9/1/2014
7/1/2014
7/1/2014
7/1/2014
7/1/2014
30/11/2014
7/31/2014
7/31/2014
7/31/2014
7/31/2014
R1,000
R0
R0
R0
R0
ABC
ABC
ABC
ABC
ABC
Department
Sales &
Marketing
Sales &
Marketing
Department
Department
Department
Department
Department
TBA
TBA
TBA
Totals
7/1/2014
7/1/2014
7/1/2014
7/31/2014
7/31/2014
7/31/2014
R0
R0
R0
R2,000
ABC
ABC
ABC
Department
Department
Department
Page 13
7.0 Management Summary

The human resource element shall be an essential component in the delivery of the total service.
By having enthusiastic, capable and empowered people interac ting with our clients, we intend to
build a competitive advantage of being able to comprehensively meet our clients' needs. Those
dealing with the clients will have enough leverage in dec ision-making to ensure that clients are
handled promptly and to reduce the lead time in service delivery.
It will be necessary to evaluate jobs and remuneration pac kages against market benchmarks
though at the onset, the management will pay themselves a small stipend as they wait for the
company to expand.
7.1 Personnel Plan

As the personnel plan shows, the company expec ts to make gradual investments in JNT
personnel over the next three years. After year three, a full review of the staff salaries will be
reviewed based on the growth of the company.
Page 14

Table: Personnel
Personnel Plan
Jimmy Jordaan - Director "Network Engineer
Ashraf Mohammed - Engineer
Kevin Golden - Marketing & Sales
FY 2015
R90,000
R90,000
R90,000
FY 2016
R94,500
R94,500
R94,500
FY 2017
R103,950
R103,950
R103,950
Less Naidoo - Accountant

Total People
R90,000
0
R94,500
0
R103,950
0
R360,000
R378,000
R415,800
Total Payroll
8.0 Financial Plan

The business of JNT Computers does not require substantial outlays for inventory and virtually
75% of all sales are on cash basis, so increases in sales will not be ac companied by initial cash
flow deficits.
JNT Computers expec ts to borrow R120,000 as a 5-year loan to cater for salaries and other
basic expenses during the initial months of the business.
Our financial plan is based on conservative estimates and assumptions.
8.1 Start-up Funding

The start-up costs will consist primarily of salaries to help sustain the company over the next
three months as the company sets a footing into the market. The director has already
invested approximately R350,000 in assets, most of this computer equipment and a company
vehicle, which the company will use for a period of time.
This, and the company's current monthly income will be used to secure a loan fac ility totalling
R120,000 which will be repaid in a period of 5 years.
Page 15

Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
R20,000
R100,000
R120,000
R10,000
R90,000
R0
R90,000
R100,000
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
R0
R120,000
R0
Other Current Liabilities (interest-free)

Total Liabilities
R0
R120,000
Capital
Planned Investment
Owner
Investor
Additional Investment Requirement
Total Planned Investment
R0
R0
R0
R0
Loss at Start-up (Start-up Expenses)

Total Capital
(R20,000)
(R20,000)
Total Capital and Liabilities
R100,000
Total Funding
R120,000
8.2 Important Assumptions

Table 7.1 summarizes key financial assumptions including 30-day average collec tion days, sales
entirely on invoice basis, expenses mainly on net 30 basis, 35 days on average for payment of
invoices, and present-day interest rates.
8.3 Break-even Analysis

The Break-even analysis is based on the average of the first-year figures for total sales of
services and by operating expenses. These conservative assumptions make for a more
ac curate estimate of real risk.
Page 16

Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even
R43,805
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
16%
R36,758
8.4 Projected Profit and Loss

As the Profit and Loss table shows, the company expec ts to continue its steady growth in
profitability over the next three years of operations.
Page 17

Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Other Costs of Sales
Total Cost of Sales
FY 2015
R690,000
R111,000
R34,500
R145,500
FY 2016
R759,000
R116,550
R36,225
R152,775
FY 2017
R834,900
R122,377
R38,036
R160,413
Gross Margin
Gross Margin %
R544,500
78.91%
R606,225
79.87%
R674,487
80.79%
Expenses
Payroll
R360,000
R378,000
R415,800
R5,500
R0
R66,000
R5,500
R0
R66,000
R5,500
R0
R66,000
R6,000
R3,600
R6,000
R3,600
R6,000
R3,600
Total Operating Expenses
R441,100
R459,100
R496,900
Profit Before Interest and Taxes
R103,400
R147,125
R177,587
EBITDA
Interest Expense
Taxes Incurred
R103,400
R10,375
R27,908
R147,125
R7,000
R42,038
R177,587
R2,500
R52,526
R65,118
9.44%
R98,088
12.92%
R122,561
14.68%
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Net Profit
Net Profit/Sales
Page 18
Page 19
8.5 Projected Cash Flow

The cash flow projec tion shows that provisions for ongoing expenses are adequate to meet the
needs of the company as the business generates sufficient cash flow to support operations.
Page 20

Table: Cash Flow
Pro Forma Cash Flow
FY 2015
FY 2016
FY 2017
R517,500
R156,792
R674,292
R569,250
R188,179
R757,429
R626,175
R206,997
R833,172
Sales Tax, VAT, HST/GST Received

New Current Borrowing
New Other Liabilities (interest-free)
R0
R0
R0
R0
R0
R0
R0
R0
R0
New Long-term Liabilities

Sales of Other Current Assets
Sales of Long-term Assets
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R674,292
R0
R757,429
R0
R833,172
FY 2015
FY 2016
FY 2017
R360,000
R240,489
R600,489
R378,000
R284,053
R662,053
R415,800
R295,419
R711,219
R0
R0
R0
R30,000
R0
R0
R0
R40,000
R0
R0
R0
R50,000
R0
R0
R0
R0
R0
R0
R0
R0
R0
Subtotal Cash Spent
R630,489
R702,053
R761,219
Net Cash Flow

Cash Balance
R43,803
R133,803
R55,376
R189,179
R71,953
R261,132
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
New Investment Received

Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Page 21
8.6 Projected Balance Sheet

The balance sheet shows healthy growth of net worth and strong financial position. The monthly
estimates are included in the appendix.
Page 22

Table: Balance Sheet
Pro Forma Balance Sheet
FY 2015
FY 2016
FY 2017
R133,803
R15,708
R5,000
R154,511
R189,179
R17,279
R5,000
R211,458
R261,132
R19,007
R5,000
R285,139
R5,000
R0
R5,000
R0
R5,000
R0
Total Long-term Assets

Total Assets
R5,000
R159,511
R5,000
R216,458
R5,000
R290,139
FY 2015
FY 2016
FY 2017
Accounts Payable
Current Borrowing
Other Current Liabilities
R24,394
R0
R0
R23,253
R0
R0
R24,373
R0
R0
Subtotal Current Liabilities
R24,394
R23,253
R24,373
Assets
Current Assets
Cash
Accounts Receivable
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Current Liabilities
R90,000
R50,000
R0
Total Liabilities
R114,394
R73,253
R24,373
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
R0
(R20,000)
R65,118
R45,118
R159,511
R0
R45,118
R98,088
R143,205
R216,458
R0
R143,205
R122,561
R265,766
R290,139
R45,118
R143,205
R265,766
Net Worth
8.7 Business Ratios

Business ratios for the years of this plan are shown below. We expec t to maintain healthy
ratios for profitability, risk and return.
Page 23

Table: Ratios
Ratio Analysis
Sales Growth
FY 2015
0.00%
FY 2016
10.00%
FY 2017
10.00%
Industry Profile
7.44%
Percent of Total Assets

Accounts Receivable
Long-term Assets
Total Assets
9.85%
3.13%
96.87%
3.13%
100.00%
7.98%
2.31%
97.69%
2.31%
100.00%
6.55%
1.72%
98.28%
1.72%
100.00%
26.43%
59.95%
89.67%
10.33%
100.00%
Current Liabilities
15.29%
56.42%
10.74%
23.10%
8.40%
0.00%
30.47%
20.98%
Total Liabilities
Net Worth
71.72%
28.28%
33.84%
66.16%
8.40%
91.60%
51.45%
48.55%
Percent of Sales
Sales
Gross Margin
100.00%
78.91%
100.00%
79.87%
100.00%
80.79%
100.00%
100.00%
69.48%
0.80%
14.99%
66.95%
0.72%
19.38%
66.11%
0.66%
21.27%
75.92%
1.53%
0.63%
Selling, General & Administrative Expenses

Advertising Expenses
Main Ratios
Current
6.33
9.09
11.70
2.00
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
6.33
71.72%
206.18%
58.32%
9.09
33.84%
97.85%
64.74%
11.70
8.40%
65.88%
60.35%
1.58
58.02%
3.88%
1.63%
Additional Ratios
Net Profit Margin
Return on Equity
FY 2015
9.44%
144.33%
FY 2016
12.92%
68.49%
FY 2017
14.68%
46.12%
n.a
n.a
10.98
29
10.86
27
4.33
10.98
32
12.17
31
3.51
10.98
32
12.17
29
2.88
n.a
n.a
n.a
n.a
n.a
2.54
0.21
0.51
0.32
0.09
1.00
n.a
n.a
R130,118
9.97
R188,205
21.02
R260,766
71.03
n.a
n.a
0.23
15%
0.29
11%
0.35
8%
n.a
n.a
5.69
15.29
0.00
8.35
5.30
0.00
10.92
3.14
0.00
n.a
n.a
n.a
Activity Ratios
Accounts Receivable Turnover
Collection Days
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
Page 24
Appendix
Table: Sales Forecast
Sales Forecast
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
R50,000
R50,000
R50,000
R55,000
R55,000
R55,000
R60,000
R60,000
R60,000
R65,000
R65,000
R65,000
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R50,000
R50,000
R50,000
R55,000
R55,000
R55,000
R60,000
R60,000
R60,000
R65,000
R65,000
R65,000
Sales
Products & Services
Other
Total Sales
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Products & Services
R8,500
R8,500
R8,500
R9,000
R9,000
R9,000
R9,500
R9,500
R9,500
R10,000
R10,000
R10,000
Other
Subtotal Direct Cost of Sales
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R8,500
R8,500
R8,500
R9,000
R9,000
R9,000
R9,500
R9,500
R9,500
R10,000
R10,000
R10,000
Page 1
Appendix
Table: Personnel
Personnel Plan
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jimmy Jordaan - Director "Network Engineer
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
Ashraf Mohammed - Engineer
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
Kevin Golden - Marketing & Sales
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
Less Naidoo - Accountant
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
R7,500
Total People
Total Payroll
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
R50,000
R50,000
R50,000
R55,000
R55,000
R55,000
R60,000
R60,000
R60,000
R65,000
R65,000
R65,000
R8,500
R8,500
R8,500
R9,000
R9,000
R9,000
R9,500
R9,500
R9,500
R10,000
R10,000
R10,000
Other Costs of Sales
R3,000
R3,000
R3,000
R3,000
R3,000
R1,500
R3,000
R3,000
R3,000
R3,000
R3,000
R3,000
Total Cost of Sales
R11,500
R11,500
R11,500
R12,000
R12,000
R10,500
R12,500
R12,500
R12,500
R13,000
R13,000
R13,000
Gross Margin
R38,500
R38,500
R38,500
R43,000
R43,000
R44,500
R47,500
R47,500
R47,500
R52,000
R52,000
R52,000
77.00%
77.00%
77.00%
78.18%
78.18%
80.91%
79.17%
79.17%
79.17%
80.00%
80.00%
80.00%
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R30,000
R1,000
R500
R0
R1,000
R0
R0
R1,000
R500
R0
R500
R0
R1,000
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R5,500
R5,500
R5,500
R5,500
R5,500
R5,500
R5,500
R5,500
R5,500
R5,500
R5,500
R5,500
R500
R500
R500
R500
R500
R500
R500
R500
R500
R500
R500
R500
R300
R300
R300
R300
R300
R300
R300
R300
R300
R300
R300
R300
R37,300
R36,800
R36,300
R37,300
R36,300
R36,300
R37,300
R36,800
R36,300
R36,800
R36,300
R37,300
R1,200
R1,700
R2,200
R5,700
R6,700
R8,200
R10,200
R10,700
R11,200
R15,200
R15,700
R14,700
EBITDA
Interest Expense
R1,200
R979
R1,700
R958
R2,200
R938
R5,700
R917
R6,700
R896
R8,200
R875
R10,200
R854
R10,700
R833
R11,200
R813
R15,200
R792
R15,700
R771
R14,700
R750
R66
R222
R379
R1,435
R1,741
R2,198
R2,804
R2,960
R3,116
R4,323
R4,479
R4,185
R155
0.31%
R519
1.04%
R884
1.77%
R3,348
6.09%
R4,063
7.39%
R5,128
9.32%
R6,542
10.90%
R6,907
11.51%
R7,271
12.12%
R10,086
15.52%
R10,450
16.08%
R9,765
15.02%
Sales
Gross Margin %
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Total Operating Expenses
Taxes Incurred
Net Profit
Net Profit/Sales
15%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
R37,500
R37,500
R37,500
R41,250
R41,250
R41,250
R45,000
R45,000
R45,000
R48,750
R48,750
R48,750
R417
R12,500
R12,500
R12,542
R13,750
R13,750
R13,792
R15,000
R15,000
R15,042
R16,250
R16,250
R37,917
R50,000
R50,000
R53,792
R55,000
R55,000
R58,792
R60,000
R60,000
R63,792
R65,000
R65,000
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
New Current Borrowing
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
New Other Liabilities (interest-free)
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
New Long-term Liabilities
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Sales of Other Current Assets
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Sales of Long-term Assets
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
New Investment Received
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R37,917
R50,000
R50,000
R53,792
R55,000
R55,000
R58,792
R60,000
R60,000
R63,792
R65,000
R65,000
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Cash Spending
Bill Payments
R30,000
R662
R30,000
R19,833
R30,000
R19,469
R30,000
R19,201
R30,000
R21,628
R30,000
R20,902
R30,000
R19,992
R30,000
R23,446
R30,000
R23,081
R30,000
R22,802
R30,000
R24,902
R30,000
R24,572
Subtotal Spent on Operations
R30,662
R49,833
R49,469
R49,201
R51,628
R50,902
R49,992
R53,446
R53,081
R52,802
R54,902
R54,572
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Principal Repayment of Current Borrowing

Other Liabilities Principal Repayment
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Long-term Liabilities Principal Repayment
Subtotal Cash Received

Expenditures
0.00%
Expenditures from Operations
R2,500
R2,500
R2,500
R2,500
R2,500
R2,500
R2,500
R2,500
R2,500
R2,500
R2,500
R2,500
Purchase Other Current Assets
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Purchase Long-term Assets

Dividends
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Subtotal Cash Spent
R33,162
R52,333
R51,969
R51,701
R54,128
R53,402
R52,492
R55,946
R55,581
R55,302
R57,402
R57,072
Net Cash Flow

Cash Balance
R4,755
R94,755
(R2,333)
R92,422
(R1,969)
R90,453
R2,091
R92,544
R872
R93,416
R1,598
R95,015
R6,300
R101,314
R4,054
R105,369
R4,419
R109,787
R8,490
R118,277
R7,598
R125,875
R7,928
R133,803
Page 4
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Starting Balances
Current Assets
Cash
R90,000
R94,755
R92,422
R90,453
R92,544
R93,416
R95,015
R101,314
R105,369
R109,787
R118,277
R125,875
R133,803
Accounts Receivable
R0
R12,083
R12,083
R12,083
R13,292
R13,292
R13,292
R14,500
R14,500
R14,500
R15,708
R15,708
R15,708
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R95,000
R111,838
R109,505
R107,537
R110,836
R111,708
R113,306
R120,814
R124,869
R129,287
R138,986
R146,584
R154,511
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R5,000
R100,000
R116,838
R114,505
R112,537
R115,836
R116,708
R118,306
R125,814
R129,869
R134,287
R143,986
R151,584
R159,511
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Current Liabilities
Accounts Payable
R0
R19,184
R18,831
R18,479
R20,930
R20,239
R19,210
R22,676
R22,324
R21,971
R24,084
R23,731
R24,394
Current Borrowing
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Other Current Liabilities
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Subtotal Current Liabilities
R0
R19,184
R18,831
R18,479
R20,930
R20,239
R19,210
R22,676
R22,324
R21,971
R24,084
R23,731
R24,394
R120,000
R117,500
R115,000
R112,500
R110,000
R107,500
R105,000
R102,500
R100,000
R97,500
R95,000
R92,500
R90,000
Total Liabilities
R120,000
R136,684
R133,831
R130,979
R130,930
R127,739
R124,210
R125,176
R122,324
R119,471
R119,084
R116,231
R114,394
Paid-in Capital
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
R0
Retained Earnings
Earnings
(R20,000)
R0
(R20,000)
R155
(R20,000)
R674
(R20,000)
R1,558
(R20,000)
R4,906
(R20,000)
R8,969
(R20,000)
R14,096
(R20,000)
R20,638
(R20,000)
R27,545
(R20,000)
R34,816
(R20,000)
R44,902
(R20,000)
R55,353
(R20,000)
R65,118
Total Capital
(R20,000)
(R19,845)
(R19,326)
(R18,443)
(R15,094)
(R11,031)
(R5,904)
R638
R7,545
R14,816
R24,902
R35,353
R45,118
Total Liabilities and Capital
R100,000
R116,838
R114,505
R112,537
R115,836
R116,708
R118,306
R125,814
R129,869
R134,287
R143,986
R151,584
R159,511
Net Worth
(R20,000)
(R19,845)
(R19,326)
(R18,443)
(R15,094)
(R11,031)
(R5,904)
R638
R7,545
R14,816
R24,902
R35,352
R45,118
Page 5

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Confidentiality Agreement

JNT Computers Business Plan

Standard PC Service per month.

JNT Computers Business Plan

JNT Computers Business Plan

1.3 Keys to Success

JNT Computers Business Plan

2.1 Company Ownership

2.2 Start-up Summary

JNT Computers Business Plan

JNT Computers Business Plan

JNT Computers Business Plan

Table: Market Analysis

JNT Computers Business Plan

4.3 Service Business Analysis

4.3.1 Competition and Buying Patterns

JNT Computers Business Plan

5.1 Website Marketing Strategy

5.2 Development Requirements

6.0 Strategy and Implementation Summary

6.1 SWOT Analysis

JNT Computers Business Plan

JNT Computers Business Plan

6.3 Marketing Strategy

6.4 Sales Strategy

6.4.1 Sales Forecast

JNT Computers Business Plan

Direct Cost of Sales

JNT Computers Business Plan

Online visibility campaign

JNT Computers Business Plan

7.0 Management Summary

7.1 Personnel Plan

JNT Computers Business Plan

Less Naidoo - Accountant

8.0 Financial Plan

8.1 Start-up Funding

JNT Computers Business Plan

Liabilities and Capital

Other Current Liabilities (interest-free)

Loss at Start-up (Start-up Expenses)

Total Capital and Liabilities

8.2 Important Assumptions

8.3 Break-even Analysis

JNT Computers Business Plan

8.4 Projected Profit and Loss

JNT Computers Business Plan

Total Operating Expenses

Profit Before Interest and Taxes

JNT Computers Business Plan

JNT Computers Business Plan

8.5 Projected Cash Flow

JNT Computers Business Plan

Sales Tax, VAT, HST/GST Received

New Long-term Liabilities

Subtotal Cash Spent

Net Cash Flow

New Investment Received

JNT Computers Business Plan

8.6 Projected Balance Sheet

JNT Computers Business Plan

Total Long-term Assets

Liabilities and Capital

Subtotal Current Liabilities