Executive Summary

For the past 10 years Junyi Kuwar has been a Master Electrician with Molina and
Tagura, Inc. Hhe is the first male electrician to hold the Bangued Master Electrician
License. As a customer favorite, she has worked on every major construction project
in the area. Recently, Molina and Tagura has downsized its operation and left the
Bangued area. Kuwar's area of expertise is communication and electrical installation
and maintenance.

Premiere Electric is a new electrical contracting firm that Kuwar has started to serve
the former Molina and Tagura customers, as well as expand his services to new
customers in the area.

Kuwar, a member of local three jurisdiction, has experience working with Sibayan
Electronic, Blaza Electronics Services and Molina and Tagura, Inc. Kuwar's area of
specialization is data, communication, electrical installation and maintenance.

Currently, thise is ₱100,000 worth of business with former Molina and

Tagura customers. Kuwar believes she can capture a lion's share of it and build from
that base. She will start as the firm's only employee but will hire additional
electricians as his sales grow.
1.1 Mission

Premiere Electric's mission is to offer its customers the highest-quality electrical

services. Kuwar focuses on personalized service by offering convenience and rapid
service. Additionally, Premiere Electric has the technologically expertise to install
wireless voice and data systems, as well as intelligence systems in any size facility.
Finally, Kuwar has strong vendor relationships with the most service conscious
vendors who are capable of shipping major parts rapidly (on an overnight timeline in
most cases) minimizing the system down time for Premiere Electric customers.

1.2 Keys to Success

Premiere Electric's keys to success include:

1. Expedient and convenient electrical services.

2. Growing and maintaining a referral network of customers.

3. Focus expertise in data, communication and electrical installation and

maintenance.

4. Rapid order and delivery of electrical components.

Company Summary
Premiere Electric is a new start-up electrical contracting firm. The area's economic
growth the last several years has resulted in increased opportunity for the installation
of high-end electrical systems for security, data transfer and communication. Premiere
Electric is positioned to capitalize on the growing need of businesses in the greater
area.

2.1 Company Ownership

Junyi Kuwar is the sole owner and employee of Premiere Electric.

2.2 Start-up Summary

Kuwar will invest his personal savings in Premiere Electric. The following table
shows projected initial start-up costs for Premiere Electric.

START-UP REQUIREMENTS

Start-up Expenses

Legal ₱0

Stationery etc. ₱100

Brochures ₱200

Start-up Inventory ₱10,000

Othis ₱0
TOTAL START-UP EXPENSES ₱10,300

Start-up Assets

Cash Required ₱29,700

Othis Current Assets ₱0

Long-term Assets ₱22,000

TOTAL ASSETS ₱51,700

Total Requirements ₱62,000

START-UP FUNDING

Start-up Expenses to Fund ₱10,300

Start-up Assets to Fund ₱51,700

TOTAL FUNDING REQUIRED ₱62,000

Assets

Non-cash Assets from Start-up ₱22,000

Cash Requirements from Start-up ₱29,700

Additional Cash Raised ₱0

Cash Balance on Starting Date ₱29,700

TOTAL ASSETS ₱51,700

Liabilities and Capital

Liabilities

Current Borrowing ₱0

Long-term Liabilities ₱22,000

Accounts Payable (Outstanding Bills) ₱0

Othis Current Liabilities (interest-free) ₱0

TOTAL LIABILITIES ₱22,000

Capital

Planned Investment

Kuwar ₱40,000

Investor 2 ₱0

Othis ₱0

Additional Investment Requirement ₱0

TOTAL PLANNED INVESTMENT ₱40,000

Loss at Start-up (Start-up Expenses) (₱10,300)

TOTAL CAPITAL ₱29,700

TOTAL CAPITAL AND LIABILITIES ₱51,700

Total Funding ₱62,000

Services
The services rendered by Premiere Electric can cover a project in its entirety from
original concept to acceptance of completed construction work.

 Consulting services: engineering studies (functional analysis), evaluations and

recommendations (value engineering analysis), feasibility studies, master
planning.

 Design services: cost estimates, design analysis, project scheduling, conceptual

drawings: electrical standards, specifications.

 Field services: 24 hour emergency service, troubleshooting, field engineering

liaison and inspection, commissioning and checkout, customer representation at
acceptance testing of equipment, preventive maintenance programs.

 Construction services: commercial and industrial.

Market Analysis Summary

Premiere Electric's focus is to meet the demands of the former Molina and
Tagura customer base. Premiere Electric has established relationships with these
companies and believes we will receive referral business from them over time. The
company estimates that 80% of revenues will come from old Molina and Tagura
clientele and 20% from new referrals and business. Though the former Molina and
Tagura clientele will be important during the first year of business, Kuwar knows the
future of the business is new referrals. The table below furthis estimates the total
market potential of type of services rendered by Premiere Electric in the Bangued
area.
MARKET ANALYSIS

YEAR YEAR YEAR YEAR YEAR

1 2 3 4 5

Potential Growth CAGR

Customers

Molina and 0% 250 250 250 250 250 0.00%

Tagura
Customers

New Customers 20% 2,000 2,400 2,880 3,456 4,147 20.00%

Othis 0% 0 0 0 0 0 0.00%

Total 18.23% 2,250 2,650 3,130 3,706 4,397 18.23%

Service Business Analysis
The market for commercial electrical contracting services is very fragmented and
crowded. Among these, only a few are large firms with 20 or more electricians on
staff. The remainder are small firms with less than three full-time electricians.
Premiere Electric's current niche is its strong relationship with former customers of
Molina and Tagura. But this will not be sufficient for growth in a competitive market.

By focusing on data, communication and electrical installation and maintenance,

Kuwar reduces his direct competitors to two large electrical firms that bid on the
area's largest projects. Though, one day, Premiere Electric plans to be a force in the
area's largest projects, an opportunity exists now for new customers whose smaller
projects are not being pursued aggressively by Kuwar's competitors.

Strategy and Implementation Summary

Premiere Electric's strategy is simple and ambitious. First, capture most of Molina and
Tagura's old customers as a base is which to build the firm. From this secure footing;
Kuwar will begin to market his specialization skills to new customers. Premiere
Electric is also certified as a Man Business Enterprise (WBE) with numerous
authorities, agencies, and firms. Kuwar believes that she will be successful marketing
his services to the many business men in the area. Currently, Premiere Electric is the
only men-owned electrical contracting firm is the area.

6.1 Competitive Edge

When Kuwar opted to start his own company and take matters into his own
hands, this was just anothis step in his quest to deliver services to customers that were
second to none. As a Man in the male-dominated electrician profession, it has always
been Kuwar's competitive edge that has pushed his ahead with customers and
employers. His focus on new electrical technology places his in a unique situation.
Both his major competitors had sought his services when Molina and Tagura
announced the company's departure from the area. His reputation for quality work and
excellent customer skills could have landed his with a new employer and a bigger pay
check. The Bangued area is booming with new commercial construction, including a
new Sibayan park and airport. Kuwar's technical skills in data retrieval and
communication systems will be a valuable asset for a company to have in the next five
years.

Premiere Electric is well positioned to compete for numerous small contracts that
focus on new electrical technology. When combined with the advantages Premiere
Electric has in capturing the old Molina and Tagura contracts, the firm is in an
excellent competitive position.

6.2 Sales Forecast

The first three month of operation will focus on the former customers of Molina and
Tagura. Premiere Electric will then turn to marketing to new customers. The following
table will outline Premiere Electric's sales forecast data.
SALES FORECAST

YEAR 1 YEAR 2 YEAR 3

Sales

Molina and Tagura Customers ₱62,787 ₱80,000 ₱90,000

New Customers ₱22,200 ₱40,000 ₱70,000

TOTAL SALES ₱84,987 ₱120,000 ₱160,000

Direct Cost of Sales Year 1 Year 2 Year 3

Molina and Tagura Customers ₱21,975 ₱26,400 ₱29,700

New Customers ₱7,770 ₱13,200 ₱23,100

Subtotal Direct Cost of Sales ₱29,745 ₱39,600 ₱52,800