Business Plan To Start An IT Company

Business Plan to Start
an IT Company, named:
hyper IT Solution Ltd. (HISL)
ELDORET TECHNICAL TRAINING INSTITUTE.

JANUARY 18,2023
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Mukanzi Sheltone
ADMISSION NO 22D/DICT/002
Course : Information Communication Technology
Eldoret Technical Training Institute
Acknowledgement
Thanks to the Almighty God to help me finishing my Business Plan in time. I am grateful to my
teacher Mr.Dickson, Eldoret Technical Training Institute who have conveyed a plenty of
instructions and directions throughout the Business & Entrepreneurship course in Spring 2022
module in completing my Business Plan. I have to admit that without his guidance and sheer
encouragement I might have never completed this Business Plan.
In addition to the above, Thanks to all my information communication technology classmates for
encouraging me and offering valuable suggestions and remarks regarding generation of the
Business Plan Ideas and preparation of this documentation.
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Table of Contents
Hpher IT Solution Ltd. (HISL)..................................................................................................................1
Acknowledgement.......................................................................................................................................3
List of Figures...............................................................................................................................................4
Executive Summary.................................................................................................................................8
1.0 Introduction.....................................................................................................................................9
1.1 Objectives........................................................................................................................................10
1.2 Mission............................................................................................................................................10
1.3 Keys to Success...............................................................................................................................10
2.0 Company Summary.............................................................................................................................11
2.1 Company Ownership.......................................................................................................................11
2.2 Start-up Summary............................................................................................................................11
2.3 Company Locations and Facilities...................................................................................................13
3.0 Products and Services..........................................................................................................................14
3.1 Sales Literature................................................................................................................................14
3.2 Product and Service Description......................................................................................................14
3.2.1 Hardware Products to be Offered..............................................................................................15
3.2.2 Software Product offerings.......................................................................................................15
3.2.3 Service Products.......................................................................................................................15
3.2.4 Professional Services................................................................................................................16
3.3 Competitive Comparison.................................................................................................................16
3.4 Technology......................................................................................................................................16
3.5 Service and Support.........................................................................................................................17
3.6 Future Products and Services...........................................................................................................17
3.7 Fulfillment.......................................................................................................................................18
4.0 Market Analysis Summary...................................................................................................................19
4.1 Market Segmentation.......................................................................................................................19
Legend: CAGR = Compound Annual Growth Rate, SOHO = Small Office and Home Office.............20
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4.2 Target Market Segment Strategy.....................................................................................................21
4.2.1 Market Trends...........................................................................................................................21
4.2.2 Market Growth.........................................................................................................................22
4.2.3 Market Needs............................................................................................................................22
4.3 Service Business Analysis...............................................................................................................23
4.3.1 Competition and Buying Patterns.............................................................................................23
4.3.2 Distributing a Service...............................................................................................................24
4.3.3 Main Competitors.....................................................................................................................24
4.3.4 Business Participants................................................................................................................24
5.0 Strategy and Implementation Summary..............................................................................................25
5.1 Competitive Edge............................................................................................................................26
5.2 Strategy Pyramid.............................................................................................................................26
5.3 Value Proposition............................................................................................................................27
5.4 Sales Strategy..................................................................................................................................27
5.4.1 Sales Forecast...........................................................................................................................27
5.5 Milestones.......................................................................................................................................29
5.6 Marketing Strategy..........................................................................................................................30
5.6.1 Sales Programs.........................................................................................................................30
5.6.2 Positioning Statement...............................................................................................................30
5.6.3 Pricing Strategy........................................................................................................................31
5.6.4 Promotion Strategy...................................................................................................................31
5.6.5 Distribution Strategy.................................................................................................................32
5.6.6 Marketing Programs.................................................................................................................32
5.7 Strategic Alliances...........................................................................................................................32
6.0 Management Summary.......................................................................................................................33
6.1 Organizational Structure..................................................................................................................33
6.2 Personnel Plan.................................................................................................................................33
6.3 Management Team..........................................................................................................................35
6.4 Management Team Gaps.................................................................................................................35
7.0 Financial Plan.......................................................................................................................................36
7.1 Important Assumptions....................................................................................................................36
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7.2 Key Financial Indicators..................................................................................................................37
7.3 Break-even Analysis........................................................................................................................38
7.4 Projected Profit and Loss.................................................................................................................39
7.5 Projected Cash Flow........................................................................................................................43
7.6 Projected Balance Sheet..................................................................................................................45
7.7 Business Ratios................................................................................................................................46
8.0 Conclusion and Scope of Future Work:................................................................................................47
9.0 References...........................................................................................................................................47
10.0 Appendix............................................................................................................................................48
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Executive Summary
By focusing on the strengths, the key customers and the underlying values we need, One Stop IT
Solution Ltd. (OSISL) will increase sales steadily in its first three years, while also maintaining
the gross margin on sales, with a focus on cash management and working capital.
This business plan leads the way. It renews our vision and strategic focus: adding value to our
target market segments and reinforcing our ties with businesses in our local markets. It also
provides the step-by-step plan for improving our sales, gross margin and profitability.
This plan includes our company profile, products and services, market focus, action plans and
forecasts, management team and the financial plan.
Figure # 1: Highlights.
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1.0 Introduction
As per encouragement of our Honorable Course Instructor Sir of Business and Entrepreneurship
Professor Dr. A. K. M. Saiful Majid, I have made up my mindset to prepare a Business Plan (BP)
to establish a startup IT company, named, One Stop IT Solution Ltd. (OSISL). However,
formulation of individual Business Plan is part of our course work as well.
Secondly, motivation behind setting an IT company is that I have work experiences of more than
10 years in the field of Information and Communication Technology (ICT). While working at
Information Technology (IT) Division of the NCC Bank Ltd. (NCCBL) for 7 years, I grew my
fascination in ICT products and services renders to the Bank by different ICT vendor/service
providers. From there, I had an intention to establish a IT company of my own, if opportunities
come in the future. I firmly belief that Business and Entrepreneurship course taught by our
Professor Dr. A. K. M. Saiful Majid Sir has given me that opportunity to make a Business Plan
based on what I can start my journey in establishing One Stop IT Solution Ltd. in 2023
inshaallah.
Thirdly, now I am working with the Internal Control and Compliance Division (IC&CD) of the
Shahjalal Islami Bank Ltd. (SJIBL) for over four years as an Internal IT Auditor, my realization
is that service delivery from the vendors and from the Information Technology (IT) Division of
the Bank to the Branches is not up to the mark. Because, as an auditor I had to visit Branches for
inspection and weakness in service delivery, slowness in product replacement, software
slowness, after sells support etc. are some common objections of the Branch users and the
personnel of the IT Division as well. From there I see an opportunity to overcome this
constraints Branch users are facing and solution can be given by establishing a company of my
own where service delivery - with end users utmost satisfactory will be ensured with first
priority.
Last but not least, apart from the above - as an DBA student, since I have an opportunity to do a
Business Plan as a student of Business and Entrepreneurship, I have intended to do something for
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establishing my own IT company and contributing to the economic and social growth of our
country: Bangladesh.
1.1 Objectives
(1) Achieve healthy earnings (EBIT) in the first year of operation.

(2) Maintain a midrange gross margin throughout the entire operation.
(3) Maintain just-in-time (JIT) inventory levels, or 11 turns per year.
(4) Increase sales modestly but steadily in the second and third years.
1.2 Mission
To provide the community with quality brand-name ‘One Stop IT Solution Ltd.’ IT solutions,
reliable and professional technical support and unparalleled Customer service through the
application of the principles of Kina`ole and heartfelt aloha, and to earn a fair profit for our
employee-owners and stakeholders by embracing sound, ethical business practices.
[Kīnāʻole means I will do the right thing, in the right way, at the right time, in the right place.
Aloha means I share my life's breath with you.]
1.3 Keys to Success
The keys to our success are:
(1) Building and maintaining strategic alliances with our manufacturers and other industry
related business partners,
(2) Adopting a customer- and market-focused sales and marketing paradigm, and
(3) Managing the business by implementing and consistently measuring and adjusting the
fundamentals of a Balanced Scorecard:
(i) Financial Goals vs. Results.

(ii) Internal Business Process Goals vs. Results.
(iii) Employee Learning and Growth Goals vs. Results.
(iv) Customer Satisfaction Goals vs. Results.
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2.0 Company Summary
One Stop IT Solution Ltd. (OSISL) will sell and service of computer business appliances with a
focus on the seven Divisional Towns (Dhaka, Chittagong, Rajshahi, Sylhet, Barisal, Rangpur,
Mymensingh) business community.
2.1 Company Ownership
One Stop IT Solution Ltd. (OSISL) will be privately owned family business initially. There will
be 15 members and all will own equal shares in the company. New employees will be given the
opportunity to become a part of the Employee Stock Ownership Plan (ESOP) after a suitable
probationary period.
2.2 Start-up Summary
Our start-up costs will be BDT 10,00,000.00, which includes BDT 4,50,000.00 for acquiring an
existing operation whose primary business has been the sale and service of computer business
appliances (pen-drive, portable hard-disk, wifi router, computer mouse, keyboard, UPS, antivirus
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software, copiers, printers, scanners etc.) and has operated as a part of the office equipment
industry.
The remainder of the funds will be used for:

(1) Initial Inventory : BDT 2,00,000.00
(2) Initial Capitalization : BDT 2,25,000.00
(3) Legal, Insurance, Rent & Others : BDT 1,25,000.00
The start-up funding will be financed by loans arranged through a commercial Bank supporting
small business to grow. Start-up assumptions are shown in the following table and chart.
1000000
575000
425000
0.00
Figure # 2: Start-up.
Table # 1: Start-up Requirements
Start-up Expenses
Legal/Accounting BDT 10,000.00
Stationery etc. 1,500.00
Brochures 1,000.00
Consultants 7,500.00
Insurance 25,000.00
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Rent 15,000.00
Software & IT (Web) 40,000.00
SPI Buyout 4,50,000.00
Setup New Company/ESOP 25,000.00
Total Start-up Expenses (A) 5,75,000.00
Start-up Assets
Cash Required BDT 2,25,000.00
Start-up Inventory 2,00,000.00
Other Current Assets 0.00
Long-term Assets 0.00
Total Assets (B) 4,25,000.00
Total Requirements (A + B) 10,00,000.00
Table # 2 : Start-up Funding
Start-up Expenses to Fund BDT 5,75,000.00

Start-up Assets to Fund 4,25,000.00
Total Funding Required (A) 10,00,000.00
Assets
Non-cash Assets from Start-up BDT 2,00,000.00
Cash Requirements from Start-up 2,25,000.00
Additional Cash Raised 0.00
Total Assets (B) 4,25,000.00
Liabilities and Capital

Liabilities
Current Borrowing BDT 10,00,000.00
Long-term Liabilities 0.00
Accounts Payable (Outstanding Bills) 0.00
Other Current Liabilities (interest- 0.00
free)
Total Liabilities (C) 10,00,000.00
Capital
Planned Investment
Investor 1 0.00
Investor 2 0.00
Other 0.00
Additional Investment Requirement 0.00
Total Planned Investment (D) 0.00
Loss at Start-up (Start-up Expenses) (5,75,000.00)
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Total Capital (E) (5,75,000.00)
Total Capital and Liabilities (C + 4,25,000.00
D)
Total Funding 10,00,000.00
2.3 Company Locations and Facilities
Initially, we will hire a tiny space at BCS Computer City, Agargaon, Dhaka or at Multiplan
Center, Elephant Road, Dhaka to commence our business.
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3.0 Products and Services
One Stop IT Solution Ltd. (OSISL) will acquire an existing operation whose primary business
has been the sale and service of business appliances (pen-drive, portable hard-disk, wifi router,
computer mouse, keyboard, UPS, antivirus software, copiers, printers, scanners etc.) and has
operated as a part of the office equipment industry.
We will build from this base to transform the business into a value-added provider of the
emerging services and technologies of the new Information Industry. Following the lead of Acer,
Apple, Asus, Canon, CISCO, Dell, EPSON, Fujitsu, Hewlett Packard, IBM, Juniper,
Kasperesky, Lenovo, Lexmark, Microtek, Microsoft, MSI, Symantec, Toshiba, Vaio and other
manufacturers which we represent, we will approach the marketplace from a total systems
solutions viewpoint.
This new paradigm will begin with an analysis of the client's existing and planned business
processes and will provide total workflow solutions utilizing multifunctional imaging platforms
and information distribution systems. These systems will be backed by professional and reliable
technical service and proactive customer service. By forming strategic alliances with local
Information Industry Value-Added Resellers, we will be able to offer turnkey Local Area
Network (LAN) systems and the ability to add existing LAN and peer-to-peer systems.
3.1 Sales Literature
Copies of our product and sales literature are attached as appendices. Of course, one of our first
tasks will be to change the message of our literature to make sure we are selling the company,
rather than the product.
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3.2 Product and Service Description
One Stop IT Solution Ltd. (OSISL) will market and sell brand name business information
distribution systems and hardware, technical service and support for these products, and the
consumable supplies used by these systems.
After researching our various manufacturer's offerings and evaluating our core competencies, we
will focus our marketing and sales efforts around the digital products offered by Acer, Apple,
Asus, Canon, CISCO, Dell, EPSON, Fujitsu, Hewlett Packard, IBM, Juniper, Kasperesky,
Lenovo, Microtek, Microsoft, MSI, Symantec, Toshiba, Vaio. As we continue to transition the
company into the digital marketplace, we will form alliances with additional IT manufacturers
and suppliers who can round out our product and services line.
3.2.1 Hardware Products to be Offered
(1) Imaging, Copier & Scanning Devices:

o Canon ImageRunner multifunctional products (scan/copy/print/fax).
o Canon multifunctional facsimiles (print/fax).
o Canon Graphics reproduction products (commercial color).
o Canon Micrographics products (electronic document storage).
o Canon Printer products (color).
o EPSON printer products (inkjet/laser)
o Lexmark Printer products (monochrome and color).
o Hewlett Packard Printer products (laser).
(2) Different PC & Laptop Models of Dell, IBM, HP, Asus, Acer, Lenevo, Toshiba,
Fujitsu.
(3) Networking Devices Switch. Router. Hub/Bridge. Patch Panel. Network Rack of
CISCO, Juniper & MicroTik.
3.2.2 Software Product offerings
(1) eCopy ScanStation, ShareScan, Desktop.

(2) Canon Image Platform (document distribution).
(3) Antivirus software of Kaspersky, AVG, Symentec, PcCillin, Avast, Norton, Panda,
McAfee, Bitfinder.
3.2.3 Service Products
(1) All-inclusive maintenance agreements (on-call service and supplies).

(2) Walk-in service (time and materials).
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(3) Warranty Repairs (certain consumer products).
(4) Sale of consumable products for all brand names (Acer, Apple, Asus, Canon, CISCO,
Dell, EPSON, Fujitsu, Hewlett Packard, IBM, Juniper, Kasperesky, Lenovo, Microtek,
Microsoft, MSI, Symantec, Toshiba, Vaio).
3.2.4 Professional Services
(1) Information Workflow analysis and design.

(2) Network design and installation (sub-contracted).
3.3 Competitive Comparison
The only way we can hope to differentiate well is to define the vision of the company to be an
information technology ally to our clients. We will not be able to compete in any effective way
with the large mainland-based office equipment companies by selling boxes or products as
appliances. We need to offer a real alliance to our local customers.
The benefits we sell include many intangibles: confidence, reliability, knowing that somebody
will be there to answer questions and help at the important times. These are complex products
that require serious knowledge and experience to use. Our competitors tend to sell only the
products themselves and very little in the way of after-sale training and support.
Unfortunately, we cannot sell the products at a higher price just because we offer services; the
market has shown that it will not support that concept. We have to also sell the service and
consumable supplies and charge for them separately. This monthly recurring revenue is the
foundation of our financial stability.
3.4 Technology
New technology has changed almost everything about the traditional office equipment industry,
and for all practical purposes it no longer exists. The new Information Industry has emerged
because of the technology of convergence. The primary driver of convergence of different forms
of information is technological change, specifically the rapid diffusion of digital technology into
an ever-wider array of information businesses. Beyond digitization, dramatic changes in
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computing and telecommunications industries (mainly in faster microprocessors and increasing
bandwidth) are also driving convergence.
One Stop IT Solution Ltd. (OSISL) will make convergence the theme of its vision, planning and
marketing strategies. We will move into the new Information Industry's technology with the aim
of bringing the most efficient workflow solutions to our clients while providing value-added
customer support and service and earning a reasonable profit in the process.
3.5 Service and Support
Our strategy hinges on providing unparalleled service and support, which is critical to setting us
apart from the competition. We need to differentiate on service and support in order to become
true partners with our clients. Our service offers will include:
(1) Uptime guarantees: we will include "uptime guarantees" with our all-inclusive service
agreements to insure maximum productivity for our clients.
(2) Internal training: the "learning and growth" part of our Balanced Scorecard
performance measurement strategy will include the requirement that our Systems
Engineers and sales professionals become network and IT certified by the end of
FY2023.
(3) Customer training: we will package comprehensive customer training programs with all
of our offerings, to include systematic follow up and refresher training.
(4) Upgrade analysis: we will periodically assess our client's business processes and
requirements, and offer cost-effective upgrade solutions to meet changing needs.
3.6 Future Products and Services
Beginning at start up, we will explore and research new information technologies for inclusion in
our product offerings. The products which we choose will be in line with our vision to transition
the company from being an appliance seller, to being a provider of total information
management solutions. These convergent information products will include:
(1) Wireless LAN systems.
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(2) Information management systems (hardware and software).
(3) Tele-business and E-Commerce systems.
(4) Media transport and reproduction (distribute and print).
3.7 Fulfillment
We will have an established relationship with our manufacturers and suppliers, and we will be
able to take advantage of all discounts and promotions in order to keep our margins at roughly
49% throughout the operation. We will also implement and employ "just-in-time" inventory
strategies for hardware, supplies and service parts orders to further strengthen our margins.
As we continue to grow the business, we will evaluate other IT industry manufacturers and
product lines to strengthen our offerings with a view primarily to quality and margin advantages.
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4.0 Market Analysis Summary
One Stop IT Solution Ltd. (OSISL) will focus on local markets, including small offices and
home offices (1-9 employees), medium to large businesses (10-99 employees), corporate houses
(multiple locations or 100+ employees) and local government offices.
4.1 Market Segmentation
Our market segmentation scheme is fairly straightforward and focuses on all IT related
businesses. The information contained in our customer analysis table is taken directly from the
2011 Bangladesh Census and government directories and clearly shows that our largest market
potential is the small office and home office (SOHO) segment. This segment is largely
overlooked by most of our competitors because of its "low end" buying habits, and a reluctance
to compete with the major retail chain box movers. We will target the SOHO market segment
with value-added and affordable business solutions customized to its unique needs, and offer the
same quality of service and support as are afforded the larger businesses.
The next largest market segment is medium to large businesses, and is the arena where we now
focus most of our sales efforts. We will continue to target this segment, but with a different
approach than our predecessors. The strategy used by former management has been to bring in
selected products, and then attempt to find a buyer. This resulted in inventory overstock, and
uselessness. We will work with the medium to large businesses to determine their needs, and
design customized solutions before ordering the required systems (Just-In-Time inventory
strategy). This segment will remain an extremely important part of our marketing mix, and
contains a large portion of our current clients. A majority of our systems upgrade opportunities
and repeat business will come from this market segment initially.
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Although the Corporate market segment in Divisional Towns is the smallest in numbers, it has
the potential to provide a significant share of our revenues and growth (the 80/20 rule). We have
a scattering of current clients in the Divisional Town’s Corporate segment, but we need to do a
better job of penetrating this lucrative end of the market. We will accomplish this by offering
professional services to include workflow and network design, MIS support, and other value-
added support benefits such as "uptime guarantees." We will develop long-term relationships
within this segment, and earn their business.
The local government market segment is unique in that we act primarily as a "middle man" for
our manufacturers due to this segment is fiercely competitive, very price-focused, and buying
decisions are often influenced by "who you know," as well as price. We are fortunate in that we
have some established relationships within the Dhaka City and have some loyal clients in this
segment. We will increase our share of this market segment by offering the same value-added
service and support benefits that we bring to our commercial clients.
Figure # 3: Market Analysis (Pie).
Table # 3: Market Analysis

Potential Growt CAG
Year 1 Year 2 Year 3 Year 4 Year 5
Customers h R
SOHO 4% 6,800.00 7,072.00 7,355.00 7,649.00 7,955.00 4.00%
Medium/ 4% 2,100.00 2,184.00 2,271.00 2,362.00 2,456.00 3.99%
Large
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Business
Corporate
3% 140.00 144.00 148.00 152.00 157.00 2.91%
Houses
Government
2% 1,225.00 1,243.00 1,262.00 1,281.00 1,300.00 1.50%
Offices
Total 10,265.0 10,643.0 11,036.0 11,444.0 11,868.0
3.69% 3.69%
0 0 0 0 0
Legend: CAGR = Compound Annual Growth Rate, SOHO = Small Office and Home Office.
4.2 Target Market Segment Strategy
Developing a market strategy is a departure from the way the company has been managed in the
past. We will change the paradigm of being a product and price-focused sales organization, to
that of becoming a customer and market-focused organization, with all departments sharing
responsibility for customer satisfaction. We will accomplish this paradigm shift through the
implementation of a balanced scorecard philosophy of management, with special attention to
employee learning and growth.
As mentioned previously our market segmentation strategy is straightforward and addresses all
Divisional Town’s business community. Planning and implementing specific strategies for each
of the four identified segments will be an on-going process and we will consult with marketing
specialists and our manufacturers, to further refine these efforts as we develop our marketing
plan.
4.2.1 Market Trends
The most significant trend in today's business-to-business marketplace is the move from analog
to digital technology, and from stand-alone workflow functions to multifunctional platforms
which are connected to a network. It is this trend that has caused many of the major players in
the outdated office equipment (copier) industry (Xerox, IKON, etc.) to falter, and see their
profits decline. This is true mainly because of their inability to change rapidly from an "analog
mentality" and move forward in applying the emerging convergence of digital information
technologies to the marketplace.
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That is the primary reason that One Stop IT Solution Ltd. (OSISL) has chosen Canon, Hewlett
Packard and EPSON as its preferred manufacturer. They have led the way in the industry with its
digital technology innovations, and its ability to bring both the product and the concept to the
marketplace. We will follow Canon, Hewlett Packard and EPSON 's lead and bring this efficient,
productivity-enhancing technology to our business.
4.2.2 Market Growth
As computer prices continue to fall, unit sales increase. The published market research on sales
of personal computers is astonishing, as the United States market alone is absorbing more than
30 million units per year, and sales are growing at more than 20 percent per year. We could
quote Dataquest, Infocorp, IDC, or others; it doesn't matter, they all agree on high growth of
CPU sales.
This rapid growth rate holds true for productivity systems which connect to the computers being
sold. The stand-alone analog systems and appliances which flourish in the business marketplace
today, will be replaced by connected digital convergence systems in the coming months and
years. One Stop IT Solution Ltd. (OSISL) will position itself to be a value-added provider of this
rapidly emerging technology for new businesses, while continuing to maintain and upgrade our
current analog customer base.
4.2.3 Market Needs
All businesses have in common a need to be continuously productive, and they rely on their
service providers and vendors to sustain their productivity. Effectively filling this need requires
that the vendor bring to the table sound planning, quality products, reliable service, and a true
partnership and support relationship.
Specific business needs include the ability to gather, compile, analyze, and distribute information
in various media formats. This is where One Stop IT Solution Ltd. (OSISL)’s strengths will be
most beneficial to our clients, both big and small. Anyone can sell the "box" at an attractive
price, but only a true value-added provider can offer the peace-of-mind that comes from a
customer-focused approach to the relationship.
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Primarily due to geographic isolation and smaller populations, the Divisional Town’s business
community has an additional common need of being able to rely on other locally-based vendors
and suppliers for quick, reliable, customer service and support. Having to call someone, to place
a service call, or to order supplies, or get an answer to a simple billing question, is both an
irritant and a hindrance to most businesses. Our primary goal is to fill this need by bringing true,
pro-active, and total, customer service to the Divisional Town’s business community, and to gain
their confidence and loyalty. This will become one of our underlying strengths.
4.3 Service Business Analysis
One Stop IT Solution Ltd. (OSISL) is a part of the Information Industry, and specializes in
providing information management systems and technology for business processes. We envision
that a converged information industry operating within the context of an advanced information
infrastructure will be a huge boost for Bangladesh businesses.
At the present time, an estimated two-thirds of all jobs are information related, and that number
will increase as the shift from manufacturing to service industries continues. The convergence of
information industries will continue because the technological and business imperatives are
compelling. If one company does not see the possibilities, another will.
4.3.1 Competition and Buying Patterns
Business decision makers and finance managers understand the concept and value of service and
support, and are much more likely to pay for it when the offering is clearly stated.
There is no doubt that we compete more against the box pushers than against other service
providers. We need to effectively compete against the idea that businesses should
buy information platforms as plug-in appliances that do not need ongoing service, support, and
training.
Target market segments think about price, but would buy based on quality service if the offering
were properly presented. They think about price because that is what is traditionally presented to
them first. We would rather pay 10-20% more for a relationship with a long-term vendor
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providing back-up and quality service and support. They end up in the box-pusher channels
because they are not aware of the alternatives.
Availability is also very important. The business decision makers tend to want immediate, local
solutions to problems.
4.3.2 Distributing a Service
Medium to large business segment buyers are accustomed to buying from vendors who visit their
offices. They expect the copy machine vendors, office products vendors, and office furniture
vendors, as well as the local graphic artists, freelance writers, or whomever, to visit their office
to make their sales.
Unfortunately, our SOHO (Small Office Home Office) target segment buyers may not expect to
buy from us. Many of them turn immediately to the retail superstores (office equipment, office
supplies, and electronics), the Web, and mail order to look for the best price, without realizing
that there is a better option for them for only a little bit more. We will overcome this hurdle
through innovative service offerings, and targeted marketing.
4.3.3 Main Competitors
In our higher-end targeted segments (medium to large businesses, corporate houses, and
government offices), the primary competitors are Flora Systems, Ryans IT Ltd. The secondary
"low end" competitors on the Dhaka City are Computer Source, Daffodil Computers, Global
Brand Pvt. Ltd., Walton. Our overall competitive strategy in these segments will be Canon,
Hewlett Packard and EPSON’s superior technology, and superior value-added service and
support.
In our SOHO target segment, the primary competitors are the superstores: Ryans Computers,
daraz.com, pickaboo.com, ajkerdeal.com, computer source, dolphin computer, Star Tech, and the
Web. While these outlets can offer lower prices, they offer no (or very little) aftermarket service
or support. That is our competitive advantage in this segment, and will differentiate us from
these "box movers."
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4.3.4 Business Participants
The traditional office equipment (copier) industry has been dominated by only a few major

manufacturers: Xerox (an American company that sells - print and digital document and services
in more than 160 countries), Canon (a Japanese company specializing in the manufacture of
imaging and optical products, including cameras, camcorders, photocopiers, steppers, computer
printers and medical equipment), Oce (a Netherlands-based company that develops,
manufactures and sells printing and copying hardware and related software) and Ricoh (a
Japanese multinational imaging and electronics company) and its OEM products - Lanier, Savin,
and Gestetner; and then come the low-end players: Sharp (a Japanese company that designs and
manufactures electronic products), Toshiba (a Japanese company with diversified products and
services include information technology and communications equipment and systems) and
Minolta (a Japanese manufacturer of cameras, camera accessories, photocopiers, fax machines,
and laser printers). With the exception of Xerox, which maintains its own sales force, the other
manufacturers distribute and sell mainly through authorized dealers.
The rapidly emerging Information Industry's digital convergence products will most likely be
dominated by the same participants as described above. While Xerox has been a past leader in
the manufacture and sales of analog products, Canon has emerged as both an innovator, and the
leader, in the new Information Industry with their Image Runner digital products and Image
Platform information distribution systems. Canon has been for many years the front runner in
color repro-graphic systems, and holds the most patents of any manufacturer in the industry.
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USER 29
5.0 Strategy and Implementation Summary
We must differentiate ourselves from the box pushers. We need to establish our business offering
as a clear and viable alternative for our target markets, to the price oriented sales pitch to which
they are accustomed.
From the standpoint of the office equipment (copier) industry the paradigm has been:
(1) Copier centric – if they are not in the market for a copier, they are not a prospect.
(2) Price, price, price – must save prospect money in order to gain interest.
(3) Box movers – selling features.
(4) Calling on influencers – office managers and purchasing departments.
(5) 30-day sales window – war with competition mainly on price.
The industry's cheese has been moved. In order to shift to a more contemporary paradigm, our
marketing and sales efforts will need:
(1) A new attitude – we are at the beginning of a product/technology convergence.

(2) A new approach – total account management and control.
(3) A new set of behaviors – solution selling, joint prospecting, systems auditing.
(4) A new marketing concept – customer oriented, profit oriented, integrated efforts.
5.1 Competitive Edge
Our competitive edge is our positioning as a strategic ally with our clients, who are clients more
than customers. By building a business based on long-standing relationships with satisfied
clients, we simultaneously build defenses against competition. The longer the relationship stands,
the more we help our clients understand what we offer them and why they should both stay with
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One Stop IT Solution Ltd. (OSISL), and refer us to other businesses. In close-knit communities
like the compact dwellers of Divisional Towns, reputation is extremely important, and word-of-
mouth advertising is invaluable.
5.2 Strategy Pyramid
Our main strategy will be placing emphasis on service and support, and our main tactics are
networking expertise, systems training, and implementing a customer relationship management
system (CRM) from e-automate. Our specific programs for networking include mailers and
internal training. Specific programs for end user training include direct mail promotion, and on-
site customer programs. Implementing the CRM software and training will be coordinated with
the e-automate.
Our second strategy is emphasizing relationships. The tactics are marketing the company
(instead of the products), more regular contacts with the customer, and increasing sales per
customer. Programs for marketing the company include new sales literature, and direct mail.
Programs for more regular contacts include call-backs after installation, direct mail, and sales
management. Programs for increasing sales per customer include upgrade mailings and sales
training.
5.3 Value Proposition
One Stop IT Solution Ltd. (OSISL) will offer its clients peace-of-mind by being a vendor who
acts as a strategic ally, and delivers quality products backed by premium service and support, at a
premium price.
5.4 Sales Strategy
We will sell the company and its ability to act as an ally. We will sell One Stop IT Solution Ltd.
(OSISL), and the reputation of the industry-leading manufacturers it represents.
We will sell our service and support. The hardware is like the razor, and the support, service,
software, and training, are the razor blades. We need to serve our customers with total solutions,
and not just product features. The products are a means to arriving at end solutions.
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The yearly total sales chart summarizes our conservative sales forecast. We expect sales to
increase from 31 lacs in the first year to more than 40 lacs in the third year of this plan.
5.4.1 Sales Forecast
The important elements of the sales forecast are shown in the following Chart, and Table # 4.
Non-hardware sales increase to almost 20 lacs total in the third year, or 47% of total sales.
Figure # 4: Sales by Year.
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Figure # 5: Sales Monthly.
Table # 4: Sales Forecast

Sales Year 1 Year 2 Year 3
Hardware - Image Platforms 10,92,956.00 12,56,899.00 14,45,434.00
Hardware - Printers 69,615 .00 80,057.00 92,066.00
Hardware - Facsimiles 1,42,711.00 1,64,117.00 1,88,735.00
Hardware - Misc (TW, Shrd) 45,250.00 52,037.00 59,843.00
Professional Services 29,808.00 34,279.00 39,420.00
Government (Comp) 87,019.00 1,00,072.00 1,15,082.00
Supplies (Toner/Paper) 5,01,228.00 5,76,412.00 6,62,874.00
Service - Agreements/Repairs 9,46,764.00 10,88,779.00 12,52,095.00
Equipment Rentals 2,43,653.00 2,80,200.00 3,22,230.00
Other 31,327.00 36,026.00 41,430.00
Total Sales 31,90,329.00 36,68,878.00 42,19,209.00
Direct Cost of Sales Year 1 Year 2 Year 3

Hardware - Image Platforms 6,77,632.00 7,72,501.00 8,80,651.00
Hardware - Printers 45,250.00 51,585.00 58,807.00
Hardware - Facsimiles 88,481.00 1,00,868.00 1,14,989.00
Hardware - Misc (TW, Shrd) 31,675.00 36,109.00 41,165.00
Professional Services 14,904.00 16,990.00 19,369.00
Government (Comp) 30,457.00 34,720.00 39,581.00
Supplies (Toner/Paper) 2,25,553.00 2,57,130.00 2,93,128.00
Service - Agreements/Repairs 3,78,706.00 4,31,724.00 4,92,166.00
Equipment Rentals 1,34,009.00 1,52,770.00 1,74,158.00
Other 7,832.00 8,928.00 10,178.00
Subtotal Direct Cost of Sales 16,34,497.00 18,63,326.00 21,24,192.00
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5.5 Milestones
The following table lists important program milestones, with dates and managers in charge, and
budgets for each. The milestone schedule indicates our emphasis on planning for
implementation.
Table # 5: Milestone Table

Milestone Start Date End Date Budget Department
Valuation 1/5/2023 31/5/2023 0.00 Admin
Complete Business Plan 14/5/2023 22/6/2023 200.00 Admin
Submit Letter of Intent 1/6/2023 15/6/2023 0.00 Admin
Choose New Company Name 15/6/2023 31/7/2023 0.00 All
Secure Startup Funding 15/6/2023 31/7/2023 0.00 All
Professional Advise (Legal/CS) 15/6/2023 31/7/2023 10,000.00 Marketing
Negotiate Purchase Agreement 18/6/2023 15/8/2023 0.00 Admin
Set Up Employee Stock Ownership Plan (ESOP) 30/6/2023 31/8/2023 12,500.00 All
Set Up New Company 30/6/2023 31/8/2023 12,500.00 All
Solicit Board Members 30/6/2023 31/8/2023 0.00 All
HR Roll-Over Plan 1/7/2023 31/8/2023 0.00 Admin
Purchase e-Automate Software 1/8/2023 31/8/2023 20,000.00 Admin
Account Payable (A/P) & A/R into e-Automate 1/8/2023 31/8/2023 0.00 Admin
Trade License 1/8/2023 31/8/2023 500.00 Admin
Customers into e-Automate 1/8/2023 31/8/2023 0.00 Sales
Inventory into e-Automate 1/8/2023 31/8/2023 0.00 Service
Letter To Vendors/Customers 1/8/2023 31/8/2023 0.00 Admin
New Stationary/Brochures 1/8/2023 31/8/2023 2,500.00 Admin
Obtain Insurance 1/8/2023 31/8/2023 25,000.00 Admin
Switch Utilities to One Stop IT Solution Ltd. 1/8/2023 31/8/2023 1,000.00 Admin
(OSISL)
Web Site Development 1/8/2023 31/8/2023 10,000.00 Admin
Complete Marketing Plan 1/8/2023 31/8/2023 2,500.00 Sales
OSISL Operations - Day 1 3/9/2023 3/9/2023 0.00 All
First Board of Directors Meeting 4/9/2023 7/9/2023 1,000.00 All
All Company - Kick Off Mtg. 4/9/2023 7/9/2023 750.00 All
Sales Strategies & Programs 4/9/2023 30/9/2023 2,500.00 Sales
Marketing Strategy & Programs 4/9/2023 30/9/2023 3,500.00 Sales
First Quarter Business Plan (BP) Review 10/12/2023 14/12/2023 0.00 All
Headcount Review 10/12/2023 14/12/2023 0.00 Sales/Service
Quarterly Board of Directors Meeting 10/12/2023 14/12/2023 1,000.00 All
Cost IT Training Sources 4/3/2024 8/3/2024 0.00 Sales/Service
Second Quarter BP/MP (Marketing Plan) Review 4/3/2024 8/3/2024 0.00 All
Enroll Team in IT Training 18/3/2024 29/3/2024 2,500.00 All
Third Quarter BP/ MP Review 3/6/2024 7/6/2024 0.00 All
Fourth Quarter BP/MP Review 2/9/2024 5/9/2024 0.00 All
New 3-Year Business Plan (BP) Due 2/9/2024 13/9/2024 0.00 All
New 3-Year Marketing Plan Due 2/9/2024 13/9/2024 0.00 All
Name me 16/9/2024 30/9/2024 1,000.00 All
Totals 1,10,950.00
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5.6 Marketing Strategy
The marketing strategy is the core of our main strategy:
(1) Emphasize service and support.

(2) Build a relationship business.
(3) Develop specific programs for each target market segment:
(1) Small Office Home Office (SOHO): cost effective service /product "turnkey"
packages, wireless LAN systems.
(2) Medium to Large Businesses: customer recovery incentives, uptime guarantees,
workflow/process surveys.
(3) Corporate Houses: workflow/process surveys, uptime guarantees, LAN installation
and administration.
(4) Government Offices: workflow/process surveys, uptime guarantees, GSA rates and
incentives.
5.6.1 Sales Programs
Specific sales programs will be included in our Marketing Plan, and will be included in this
Business Plan as they are finalized. In general, however, our sales programs will be centered
around conducting workflow and information distribution analyses, direct mail, and placing an
emphasis on the benefits which One Stop IT Solution Ltd. (OSISL) and its manufacturers will be
able to offer its clients through "total care" service and support.
5.6.2 Positioning Statement
For businesses who want to be sure their information distribution systems are always working
reliably, One Stop IT Solution Ltd. (OSISL) is a vendor and trusted strategic ally who makes
certain their systems work, their people are trained, and their down time is minimal. Unlike the
product/price oriented vendors, it knows the customer and goes to their site when needed, and
offers proactive support, service, training, and installation.
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5.6.3 Pricing Strategy
We must charge appropriately for the high-end, high-quality service and support we offer. Our
revenue structure has to match our cost structure, so the salaries we pay to assure good service
and support must be balanced by the revenue we charge.
We cannot build the service and support revenue into the price of products. The market cannot
bear the higher prices and the buyer feels ill-used when they see a similar product priced
lower with the competition. Despite the logic behind this, the market doesn't support this
concept.
5.6.4 Promotion Strategy
We will employ the following general promotional strategies for the various market segments:
(1) Small Office and Home Office (SOHO): We will depend on periodic local newspaper
advertising, to reach new buyers in this segment. We will also utilize direct mail and the
resources of the local Chambers of Commerce and other affinity groups to reach this
segment. The message will emphasize service first, and "complete product and service
packaging" as a secondary theme.
(2) Medium to Large Businesses: Direct face-to-face contact (direct sales) will continue to
be our primary strategy for this market segment. Direct selling will be supplemented by
periodic promotional direct mailings and personalized system upgrade opportunities.
(3) Corporate Houses: This segment will be handled by direct contact and relationship
building only. We will make personal presentations to the decision makers in this group,
and stress our service and technical benefits and advantages.
(4) Government Offices: We will utilize a combination of direct mail and face-to-face
promotional strategies with this segment, and the message will be the local service and
technical advantages of One Stop IT Solution Ltd. (OSISL). We will produce an
attractive Request for Quotation (RFQ)/Request for Proposal (RFP) response package to
accompany our submissions.
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5.6.5 Distribution Strategy
One Stop IT Solution Ltd. (OSISL) is first and foremost a direct sales organization, meaning that
we must present our services and products directly to the majority of our customers and clients.
Having said that, for our planned penetration into the SOHO (Small Office and Home Office)
market, we will need to establish a presence as a Value Added Reseller (VAR) for certain low-
end product lines which do not carry the margins necessary to sustain the costs of direct sales.
We will plan our new locations accordingly.
5.6.6 Marketing Programs
As we work to complete this Business Plan, we need to work simultaneously on our Marketing
Plan. As we can see from the milestones table (Table # 5), we anticipate completion of our
detailed Marketing Plan by 30/9/2023, or one month from start-up. Because we are acquiring an
on-going business, the shift to our vision of customer and market-focused strategies will not
happen overnight. We must plan this shift carefully, and implement it judiciously, so as not to
disrupt our immediate operations. We have budgeted for and will utilize, marketing advisors and
consultants (including our manufacturers) in the design of our Marketing Plan.
5.7 Strategic Alliances
Our alliances with our manufacturers, and especially Canon, Hewlett Packard, EPSON will be
the most pivotal to our success. We will try to become Authorized Dealer of Canon, Hewlett
Packard and EPSON and continue to enjoy all of the benefits of this manufacturer dealer
relationship.
We will form alliances with other locally-based VARs (Value Added Resellers) and computer
network providers to enable us to provide complete turnkey packages for our clients. These
relationships will be included in our Marketing Plan.
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6.0 Management Summary
Our management philosophy is simple and is an integral part of our values: doing right things
right, the first time (Kina'ole).
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One Stop IT Solution Ltd. (OSISL) will be an employee-owned company and we all share the
same vision of providing our clients (who in many cases are friends and neighbors) with the very
best in customer service - period. We will encourage personal growth, creativity, and
enable individual empowerment to achieve this goal. We will manage the business by setting
achievable Balanced Scorecard goals, measuring them, and making mid-stream adjustments as
necessary.
6.1 Organizational Structure
Our team includes 15 employees initially, and is organizationally flat. The departmental
divisions are sales and marketing, service, and administration. Operational managers include:
(1) General Manager: Oversees all operations, with primary responsibilities for sales and
marketing. Functioning as the GM, this position will spend a good deal of time in the
field assisting the Account Managers, and helping to build and maintain client
relationships.
(2) Secretary/Administrative Manager: Oversees all administrative functions including
inventory, Accounts Payable (A/P) and Accounts Receivable (A/R), banking, Human
Resources (HR), and vendor and manufacturer relations. Primary contact point for
customer service issues and follow up. Will be assisted by an Office Manager in the
branch.
(3) Systems Manager: Oversees all service issues including service agreements, service call
prioritization and response, carry-in service, customer support, and systems training and
development. Will be assisted by Systems Engineers, and Systems Technicians.
6.2 Personnel Plan
The total head count at the time of the acquisition will be 13. We will be adding two former
employees at startup to round out our team, for a total startup head count of 15.
There are an additional 6 positions shown as "vacant" in the Personnel plan. During each
quarterly business plan review, we will assess the need to fund these positions to sustain our
growth, and more evenly distribute the workload.
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Table # 6: Personnel Plan for 15 Employees
Production Personnel Year 1 Year 2 Year 3

None planned 0 0 0
Other 0 0 0
Subtotal 0 0 0
Sales and Marketing Personnel

Mr./Ms. A1 – Sales 38,250.00 40,545.00 42,978.00
Mr./Ms. B2 – Sales 38,250.00 40,545.00 42,978.00
Mr./Ms. C3 – Sales 38,250.00 40,545.00 42,978.00
Mr./Ms. D4 – Sales 38,250.00 40,545.00 42,978.00
Vacant - Aftermarket Sales 0.00 0.00 0.00
Vacant - Aftermarket Sales 0.00 0.00 0.00
Subtotal 1,53,000.00 1,62,180.00 1,71,911.00
General and Administrative Personnel

Mr./Ms. E5 - General Manager 57,600.00 61,056.00 64,719.00
Mr./Ms. F6 - Admin Manager 45,600.00 48,336.00 51,236.00
Mr./Ms. G7 - Office Manager 31,200.00 33,072.00 35,056.00
Vacant – Warehouse & Delivery 0.00 0.00 0.00
Vacant - Warehouse & Delivery 0.00 0.00 0.00
Other 0.00 0.00 0.00
Subtotal 1,34,400.00 1,42,464.00 1,51,012.00
Other Personnel
Mr./Ms. H8 - Systems Manager 49,800.00 52,788 .00 55,955.00
Mr./Ms. I9 - Systems Manager 49,800.00 52,788.00 55,955.00
Mr./Ms. J10 - System Engineer 39,600.00 41,976.00 44,495.00
Mr./Ms. K11 - System Engineer 39,600.00 41,976.00 44,495.00
Mr./Ms. L12 - System Engineer 39,600.00 41,976.00 44,495.00
Mr./Ms. M13 - Sr. System Engineer 41,100.00 43,566.00 46,180.00
Mr./Ms. N14 - System Technician 28,800.00 30,528.00 32,360.00
Mr./Ms. O15 - System Technician 28,800.00 30,528.00 32,360.00
Vacant - System Technician 0.00 0.00 0.00
Vacant - System Technician 0.00 0.00 0.00
Subtotal 3,17,100.00 3,36,126.00 3,56,294.00
Total Employees 15 15 15
Total Payroll 6,04,500.00 6,40,770.00 6,79,216.00
6.3 Management Team
(1) Mr./Ms. E5, General Manager: XX years old, and has work experiences in Bangladesh
for X years. Prior management experience includes marketing manager, area sales
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manager and project manager. Attended numerous management and sales training
courses and seminars throughout his/her career.
(2) Mr./Ms. F6, Secretary/Admin Manager: XX years old, and local Bangladeshi resident
and has work experiences in Bangladesh for X years. Prior work experience includes
extensive knowledge of service procedures and dispatching, account receivable (A/R)
and accounts payable (A/P) procedures, inventory control and tracking, as well as an
intimate knowledge of our customer base. Mr./Ms. F6’s experience and knowledge will
be invaluable in recovering our customer base, and in growing the business.
(3) Mr./Ms. G7, Office Manager: XX years old, and local Bangladeshi resident and has
work experiences in Bangladesh for X years. Prior work experience includes working in
the office equipment industry, handling the administrative and customer service tasks,
and will be instrumental in customer recovery efforts.
(4) Mr./Ms. H8, Systems Manager: XX years old, and local Bangladeshi resident and has
work experiences in Bangladesh for X years. Prior work experience includes local office
equipment service management experience, completed Canon/Hewlett Packard/EPSON’s
"train the trainer" course, and will be a great asset in the on-going training and
development of our systems engineers and technicians.
(5) Mr./Ms. I9, Systems Manager: XX years old, and local Bangladeshi resident and has
work experiences in Bangladesh for X years. Prior work experience includes field service
manager, local office equipment industry service experience, and is familiar with
Canon/Hewlett Packard/EPSON’s and Ricoh products. Mr./Ms. I9 has outstanding
customer service skills.
6.4 Management Team Gaps
We believe we will have a good team for covering the main points of the business plan. Key
members should have the experiences and knowledge to manage and grow the business, and are
highly motivated by the employee-owner concept.
The obvious management gap is a plan to fill the General Manager's position at some point in the
future, before the current General Manager reaches retirement age. As an employee-owned
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company, the preferred strategy will be to promote from within, and fill vacancies as they occur.
As the company grows, we will seek out additional talent in all operational areas.
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7.0 Financial Plan
Although we are treating the business as a start-up company, we have taken actual Profit &
Loss income and expenses of a same category company from the past three years, and eliminated
corporate overhead expenses such as warehouse and administrative costs, inventory penalties,
and corporate nominal interest. We then projected income based on actual past performance,
and factored back in the revenue base over the past two years (mainly service and supplies).
We approached the financial planning from a conservative standpoint, and based those numbers
on achievable gross margins. Also, our actual interest and tax rates will most likely be lower than
the assumed rates due to our being structured as an employee-owned company under Employee
Stock Ownership Plan (ESOP).
7.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in Table # 7. As
mentioned previously, we assumed interest and tax rates based on a "worst case" scenario, and
these will be adjusted once we have finalized the initial funding and establish the Employee
Stock Ownership Plan (ESOP). We have also assumed our personnel burden at 30% of payroll in
order to allow for above-average benefits for our employees. As we shop around for benefits
vendors, this assumption will be subject to revision as well.
Other key business assumptions are:
(1) We assume continued steady economic growth in the Divisional Towns as predicted by
the Economists.
(2) We assume the continued move towards convergence technology in the Information
Industry.
(3) We assume access to the start-up funding necessary to re-shape and re-build the
company, and to provide adequate initial capitalization.
Table # 7: General Assumptions

Year 1 Year 2 Year 3
Plan Month 1 2 3
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Current Interest Rate 14.00% 14.00% 14.00%
Long-term Interest 10.00% 10.00% 10.00%
Rate
Tax Rate 37.33% 38.00% 37.33%
Other 0 0 0
7.2 Key Financial Indicators
As shown in the Benchmark chart below, our key financial indicators are:
(1) Projected Sales: Projections are based on actual past performance, and are conservative.
We will increase sales at an average rate of 15% per year.
(2) Gross Margins: Average gross margins are based on: hardware sales = 37%, service =
57%, supplies = 52% and other = 50%, for an overall operating gross margin of 49%.
(3) Operating Expenses: Operating expenses are based on providing our employee-owners
with above average wages and benefits, and providing superior customer service.
Expenses are projected to increase at the rate of 6% per year.
(4) Collection Days (A/R): Based on the extensive use of leasing, and including service and
supply agreements into leasing packages, we will maintain an average A/R turnover of 30
days. This is projected to be reduced to 28 days in subsequent years by increasing
efficiencies in our internal business processes.
(5) Inventory Turnover: We will maintain just-in-time inventory levels, or 11 turns per
year. This will require accurate sales forecasting, and working closely with our
manufacturers.
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Figure # 6: Benchmarks.
7.3 Break-even Analysis
For our break-even analysis, we assume running costs which include our full payroll, rent, and
utilities, and an estimation of other running costs. Payroll alone, at present, is about 65,500.00
per month (including benefits and taxes).
We will monitor gross margins very closely, and maintain them at a midrange percentage by
taking advantage of all promotions and discounts offered by our manufacturers. We will try to
get "end column" pricing as a new dealer incentive from Canon, Hewlett Packard, EPSON.
The chart shows what we need to sell per month to break even, according to these assumptions.
This is about 78% of our projected sales for our first year, and is well below what we have
achieved annually over the past three years under more adverse operating conditions.
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Figure # 7: Break Even Analysis.
Table # 8: Break-even Analysis
Monthly Revenue Break-even 2,09,018.00
Assumptions:
Average Percent Variable Cost 51%
Estimated Monthly Fixed Cost 1,01,932.00
7.4 Projected Profit and Loss
Our Pro Forma Profit and Loss statement was constructed from a conservative point-of-view,
and is based in large part on past performance of a same category company. By strengthening
our service position, and rebuilding our customer relationships, we will widen our customer base
and increase sales.
Month-to-month assumptions for profit and loss are included in the appendix
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Figure # 8: Profit Yearly.
Figure # 9: Gross Margin Monthly.
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Figure # 10: Gross Margin Yearly.
Figure # 11: Profit Monthly.
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Table # 9: Pro Forma Profit and Loss
Sales 31,90,329.00 36,68,878.00 42,19,209.00
Direct Cost of Sales 16,34,497.00 18,63,326.00 21,24,192.00
Production Payroll 0.00 0.00 0.00
Other 0.00 0.00 0 .00
Total Cost of Sales 16,34,497.00 18,63,326.00 21,24,192.00
Gross Margin 15,55,832.00 18,05,552.00 20,95,017.00
Gross Margin % 48.77% 49.21% 49.65%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll 1,53,000.00 1,62,180.00 1,71,911.00
Advertising/Promotion 10,500.00 11,130.00 11,798.00
Commissions 1,59,516.00 1,69,087.00 1,79,233.00
Travel - Sales 22,500.00 23,850.00 25,281.00
Learning & Growth - Sales 6,150.00 6,519.00 6,910.00
Entertainment 5,400.00 5,724.00 6,067.00
Total Sales and Marketing Expenses 3,57,066.00 3,78,490.00 4,01,200.00
Sales and Marketing % 11.19% 10.32% 9.51%
General and Administrative Expenses
General and Administrative Payroll 1,34,400.00 1,42,464.00 1,51,012.00
Sales and Marketing and Other 0.00 0.00 0.00
Expenses
Depreciation 0.00 0.00 0.00
Depreciation 0.00 0.00 0.00
Utilities 9,000.00 9,540.00 10,112.00
Telephone & ISP 34,200.00 36,252.00 38,427.00
Office Supplies 4,200.00 4,452.00 4,719.00
Insurance 16,800.00 17,808.00 18,876.00
Bank Charges 6,000.00 6,360.00 6,742.00
Postage 10,020.00 10,621.00 11,258.00
Taxes & Licenses 10,200.00 10,812.00 11,461.00
Bonuses 0.00 0.00 0.00
Learning & Growth - Admin 3,150.00 3,339.00 3,539.00
Accounting 6,000.00 6,360.00 6,742 .00
Rent 72,000.00 72,000 .00 72,000.00
Payroll Taxes 1,81,350.00 1,92,231.00 2,03,765.00
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Other General and Administrative 0.00 0.00 0.00
Expenses
Total General and Administrative 4,87,320.00 5,12,239.00 5,38,654.00
Expenses
General and Administrative % 15.27% 13.96% 12.77%
Other Expenses:
Other Payroll 3,17,100.00 3,36,126.00 3,56,294.00
Consultants 0.00 0.00 0.00
Learning & Growth - Service 9,200.00 9,752.00 10,337.00
Travel - Service 22,500.00 23,850.00 25,281.00
Freight & Cartage 30,000.00 31,800.00 33,708.00
Total Other Expenses 3,78,800.00 4,01,528.00 4,25,620.00
Other % 11.87% 10.94% 10.09%
Total Operating Expenses 12,23,186.00 12,92,258.00 13,65,473.00
Profit Before Interest and Taxes 3,32,645.00 5,13,294.00 7,29,544.00
EBITDA 3,32,645.00 5,13,294.00 7,29,544.00
Interest Expense 1,40,000.00 1,27,050.00 99,750.00
Taxes Incurred 72,797.00 1,46,773.00 2,35,123.00
Net Profit 1,19,848.00 2,39,471.00 3,94,671.00
Net Profit/Sales 3.76% 6.53% 9.35%
7.5 Projected Cash Flow
Because we are treating the new company as a start-up, the cash flow for FY2024 is somewhat
exaggerated by the instant influx of new capital. Subsequent years however show a healthy
growth in cash flow, mainly due to the short 60-month repayment of the start-up loan and
increased sales.
USER 52
Figure # 12: Cash.
Table # 10 Pro Forma Cash Flow

Cash Received
Cash from Operations
Cash Sales 20,73,714.0 23,84,7710.0 27,42,486.0
0 0 0
Cash from Receivables 9,06,354.00 12,52,5680.0 14,40,453.0
0 0
Subtotal Cash from Operations 29,80,067.0 36,37,3390.0 41,82,939.0
0 0 0
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00 0.00 0.00
New Current Borrowing 0.00 0.00 0.00
New Other Liabilities (interest-free) 0.00 0.00 0.00
New Long-term Liabilities 0.00 0.00 0.00
Sales of Other Current Assets 0.00 0.00 0.00
Sales of Long-term Assets 0.00 0.00 0.00
USER 53
New Investment Received 30,000.00 0.00 0.00
Subtotal Cash Received 30,10,067.0 36,37,339.00 41,82,939.0
0 0
Expenditures Year 1 Year 2 Year 3

Expenditures from Operations
Cash Spending 6,04,500.00 6,40,770.00 6,79,216.00
Bill Payments 22,10,315.0 28,09,360.00 31,43,202.0
0 0
Subtotal Spent on Operations 28,14,815.0 34,50,130.00 38,22,418.0
0 0
Additional Cash Spent 0.00 .00 .00
Sales Tax, VAT, HST/GST Paid Out 0.00 0.00 0.00
Principal Repayment of Current 0.00 1,85,000.00 2,05,000.00
Borrowing
Other Liabilities Principal Repayment 0.00 0.00 0.00
Long-term Liabilities Principal 0.00 0.00 0.00
Repayment
Purchase Other Current Assets 0.00 0.00 0.00
Purchase Long-term Assets 0.00 0.00 0.00
Dividends 0.00 0.00 0.00
Subtotal Cash Spent 28,14,815.0 36,35,130.00 40,27,418.0
0 0
Net Cash Flow 1,95,252.00 2,209.00 1,55,521.00
Cash Balance 4,20,252.00 4,22,461.00 5,77,982.00
7.6 Projected Balance Sheet
The Projected Balance Sheet is quite solid. We do not project any trouble meeting our debt
obligations as long as we achieve our specific objectives.
Table # 11 Pro Forma Balance Sheet

Assets
Current Assets
USER 54
Cash 4,20,252.00 4,22,461.00 5,77,982.00
Accounts Receivable 2,10,261.00 2,41,801.00 2,78,071.00
Inventory 1,72,142.00 1,96,241.00 2,23,715.00
Other Current Assets 0.00 0.00 0.00
Total Current Assets 8,02,655.00 8,60,503.00 10,79,768.00
Long-term Assets
Long-term Assets 0.00 0.00 0.00
Accumulated Depreciation 0.00 0.00 0.00
Total Long-term Assets 0.00 0.00 0.00
Total Assets 8,02,655.00 8,60,503.00 10,79,768.00
Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable 2,27,807.00 2,31,184.00 2,60,778.00
Current Borrowing 10,00,000.00 8,15,000.00 6,10,000.00
Other Current Liabilities 0.00 0.00 0.00
Subtotal Current Liabilities 12,27,807.00 10,46,184.00 8,70,778.00
Long-term Liabilities 0.00 0.00 0.00
Total Liabilities 12,27,807.00 10,46,184.00 8,70,778.00
Paid-in Capital 30,000.00 30,000.00 30,000.00
Retained Earnings (5,75,000.00) (4,55,152.00) (2,15,681.00)
Earnings 1,19,848.00 2,39,471.00 3,94,671.00
Total Capital (4,25,152.00) (1,85,681.00) 2,08,990.00
Total Liabilities and Capital 8,02,655.00 8,60,503.00 10,79,768.00
Net Worth (4,25,152.00) (1,85,681.00) 2,08,990.00
7.7 Business Ratios

The following table shows our main business ratios, and is compared to industry averages.
Table # 12 Ratio Analysis

Industry
Avg.
Sales Growth 0.00% 15.00% 15.00% 1.50%
Percent of Total Assets
Accounts Receivable 26.20% 28.10% 25.75% 30.97%
Inventory 21.45% 22.81% 20.72% 38.08%
USER 55
Other Current Assets 0.00% 0.00% 0.00% 16.04%
Total Current Assets 100.00% 100.00% 100.00% 85.09%
Long-term Assets 0.00% 0.00% 0.00% 14.91%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 152.97% 121.58% 80.64% 44.30%
Long-term Liabilities 0.00% 0.00% 0.00% 8.46%
Total Liabilities 152.97% 121.58% 80.64% 52.76%
Net Worth -52.97% -21.58% 19.36% 47.24%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 48.77% 49.21% 49.65% 26.76%
Selling, General & Administrative Expenses 45.02% 42.69% 40.40% 15.95%
Advertising Expenses 0.33% 0.30% 0.28% 0.95%
Profit Before Interest and Taxes 10.43% 13.99% 17.29% 2.55%
Main Ratios
Current 0.65 0.82 1.24 1.80
Quick 0.51 0.63 0.98 0.87
Total Debt to Total Assets 152.97% 121.58% 80.64% 6.22%
Pre-tax Return on Net Worth -45.31% -208.01% 301.35% 55.95%
Pre-tax Return on Assets 24.00% 44.89% 58.33% 14.11%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 3.76% 6.53% 9.35% n.a
Return on Equity 0.00% 0.00% 188.85% n.a
Activity Ratios
Accounts Receivable Turnover 5.31 5.31 5.31 n.a
Collection Days 57 64 64 n.a
Inventory Turnover 10.91 10.12 10.12 n.a
Accounts Payable Turnover 10.70 12.17 12.17 n.a
Payment Days 27 30 28 n.a
Total Asset Turnover 3.97 4.26 3.91 n.a
Debt Ratios
Debt to Net Worth 0.00 0.00 4.17 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital (425,152) (185,681) 208,990 n.a
Interest Coverage 2.38 4.04 7.31 n.a
Additional Ratios
Assets to Sales 0.25 0.23 0.26 n.a
Current Debt/Total Assets 153% 122% 81% n.a
Acid Test 0.34 0.40 0.66 n.a
Sales/Net Worth 0.00 0.00 20.19 n.a
Dividend Payout 0.00 0.00 0.00 n.a
USER 56
8.0 Conclusion and Scope of Future Work:
I tried my best to complete, what I was assigned to prepare a business plan to start a IT company,
names, One Stop IT Solution Ltd. (OSISL). I sincerely admit that due to time limitations and
lack of my previous experiences of preparing business plan, quality works may not be possible
and there is a huge scope of working on this business plan. If anyone interested on my business
plan to work to its enhancement, they may do so, if course instructor permits.
USER 57
9.0 References
(1) Donald F. Kuratko (2009), 8th Edition (International Student Edition), “Introduction to
Entrepreneurship”. South Western Educational press.
(2) Helga D. Svala (2001), Information Management Hawaii, Information Technology

Business Plan [Online]. Available at
https://www.bplans.com/information_technology_business_plan/appendix_fc.php
[Accessed on 12 May 2019].
(3) Sharif Ahmed (24.12.2017), Laptop demand booms in Bangladesh Market [Online].
Available at http://www.theindependentbd.com/printversion/details/129429
[Accessed on May 15, 2019].
10.0 Appendix
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
Hardware - 78,500 78,500 78,500 86,350 86,350 86,350 94,985 94,985 94,985 104,48 104,48 104,48
Image 4 4 4
Platforms
Hardware - 5,000 5,000 5,000 5,500 5,500 5,500 6,050 6,050 6,050 6,655 6,655 6,655
Printers
Hardware - 10,250 10,250 10,250 11,275 11,275 11,275 12,403 12,403 12,403 13,643 13,643 13,643
Facsimiles
Hardware - 3,250 3,250 3,250 3,575 3,575 3,575 3,933 3,933 3,933 4,326 4,326 4,326
Misc (TW,
Shrd)
Professional 0 0 2,500 2,750 2,750 2,750 3,025 3,025 3,025 3,328 3,328 3,328
Services
Government 6,250 6,250 6,250 6,875 6,875 6,875 7,563 7,563 7,563 8,319 8,319 8,319
(Comp)
Supplies 36,000 36,000 36,000 39,600 39,600 39,600 43,560 43,560 43,560 47,916 47,916 47,916
(Toner/Paper)
Service - 68,000 68,000 68,000 74,800 74,800 74,800 82,280 82,280 82,280 90,508 90,508 90,508
Agreements/Re
pairs
Equipment 17,500 17,500 17,500 19,250 19,250 19,250 21,175 21,175 21,175 23,293 23,293 23,293
Rentals
Other 2,250 2,250 2,250 2,475 2,475 2,475 2,723 2,723 2,723 2,995 2,995 2,995
USER 58
Total Sales 227,00 227,00 229,50 252,45 252,45 252,45 277,69 277,69 277,69 305,46 305,46 305,46
0 0 0 0 0 0 5 5 5 5 5 5
Direct Cost of Mont Mont Mont Month Month Mont Mont Mont Mont Mont Month Mont
Sales h1 h2 h3 4 5 h6 h7 h8 h9 h 10 11 h 12
Hardware - 48,670 48,670 48,670 53,537 53,537 53,537 58,891 58,891 58,891 64,780 64,780 64,780
Image
Platforms
Hardware - 3,250 3,250 3,250 3,575 3,575 3,575 3,933 3,933 3,933 4,326 4,326 4,326
Printers
Hardware - 6,355 6,355 6,355 6,991 6,991 6,991 7,690 7,690 7,690 8,459 8,459 8,459
Facsimiles
Hardware - 2,275 2,275 2,275 2,503 2,503 2,503 2,753 2,753 2,753 3,028 3,028 3,028
Misc (TW,
Shrd)
Professional 0 0 1,250 1,375 1,375 1,375 1,513 1,513 1,513 1,664 1,664 1,664
Services
Government 2,188 2,188 2,188 2,406 2,406 2,406 2,647 2,647 2,647 2,912 2,912 2,912
(Comp)
Supplies 16,200 16,200 16,200 17,820 17,820 17,820 19,602 19,602 19,602 21,562 21,562 21,562
(Toner/Paper)
Service - 27,200 27,200 27,200 29,920 29,920 29,920 32,912 32,912 32,912 36,203 36,203 36,203
Agreements/Re
pairs
Equipment 9,625 9,625 9,625 10,588 10,588 10,588 11,646 11,646 11,646 12,811 12,811 12,811
Rentals
Other 563 563 563 619 619 619 681 681 681 749 749 749
Subtotal 116,32 116,32 117,57 129,33 129,33 129,33 142,26 142,26 142,26 156,49 156,49 156,49
Direct Cost of 5 5 5 3 3 3 6 6 6 2 2 2
Sales
Table # 14 Personnel Plan

1 2 3 4 5 6 7 8 9 10 11 12
Production
Personnel
None planned 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
Subtotal 0 0 0 0 0 0 0 0 0 0 0 0
Sales and
Marketing
Personnel
Alan Fukuyama 3,000 3,000 3,000 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250
- Sales (Maui)
Brian 3,000 3,000 3,000 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250
Kurlansky -
Sales (Kona)
Jay Moore - 3,000 3,000 3,000 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250
Sales (Maui)
Wilbert 3,000 3,000 3,000 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,250
Shimabukuro -
Sales (Hilo)
Vacant - 0 0 0 0 0 0 0 0 0 0 0 0
Aftermarket
Sales (Maui)
Vacant - 0 0 0 0 0 0 0 0 0 0 0 0
Aftermarket
Sales (Hilo)
Subtotal 12,00 12,000 12,000 13,00 13,000 13,00 13,000 13,000 13,00 13,000 13,00 13,000
0 0 0 0 0
General and
Administrative
Personnel
USER 59
Bill Harding - 4,500 4,500 4,500 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900
General
Manager
Laurie Watson 3,650 3,650 3,650 3,850 3,850 3,850 3,850 3,850 3,850 3,850 3,850 3,850
- Admin
Manager
Vacant - Office 2,450 2,450 2,450 2,650 2,650 2,650 2,650 2,650 2,650 2,650 2,650 2,650
Manager (Hilo)
Vacant - Whse 0 0 0 0 0 0 0 0 0 0 0 0
& Delivery
(Maui)
Vacant - Whse 0 0 0 0 0 0 0 0 0 0 0 0
& Delivery
(Hilo)
Other 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal 10,60 10,600 10,600 11,40 11,400 11,40 11,400 11,400 11,40 11,400 11,40 11,400
0 0 0 0 0
Other Personnel
Earle Oshiro - 4,000 4,000 4,000 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200
Systems
Manager (Hilo)
Joe Alfonsi - 4,000 4,000 4,000 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200
Systems
Manager
(Maui)
Wane Ogawa - 3,150 3,150 3,150 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350
Syst Engineer
(Hilo)
Francis 3,150 3,150 3,150 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350
Takahashi -
Syst Engineer
(Hilo)
Baron Ganeko - 3,150 3,150 3,150 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350 3,350
Syst Engineer
(Kona)
Abe Braceros - 3,200 3,200 3,200 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500
Sr. Syst
Engineer
(Maui)
Arlo Villanueva 2,250 2,250 2,250 2,450 2,450 2,450 2,450 2,450 2,450 2,450 2,450 2,450
- Syst Tech
(Maui)
Caroline Nacua 2,250 2,250 2,250 2,450 2,450 2,450 2,450 2,450 2,450 2,450 2,450 2,450
- Syst Tech
(Maui)
Vacant - Syst 0 0 0 0 0 0 0 0 0 0 0 0
Tech (Kona)
Vacant - Syst 0 0 0 0 0 0 0 0 0 0 0 0
Tech (Maui)
Subtotal 25,15 25,150 25,150 26,85 26,850 26,85 26,850 26,850 26,85 26,850 26,85 26,850
0 0 0 0 0
Total People 15 15 15 15 15 15 15 15 15 15 15 15
Total Payroll 47,75 47,750 47,750 51,25 51,250 51,25 51,250 51,250 51,25 51,250 51,25 51,250
0 0 0 0 0
Table # 15 General Assumptions

1 2 3 4 5 6 7 8 9 10 11 12
Plan 1 2 3 4 5 6 7 8 9 10 11 12
Month
Curren 14.00 14.00 14.00 14.00 14.00 14.00 14.00 14.00 14.00 14.00 14.00 14.00
t % % % % % % % % % % % %
Interest
Rate
USER 60
Long- 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
term % % % % % % % % % % % %
Interest
Rate
Tax 30.00 38.00 38.00 38.00 38.00 38.00 38.00 38.00 38.00 38.00 38.00 38.00
Rate % % % % % % % % % % % %
Other 0 0 0 0 0 0 0 0 0 0 0 0
Table # 16 Pro Forma Profit and Loss

Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
h1 h2 h3 h4 h5 h6 h7 h8 h9 h 10 h 11 h 12
Sales 227,0 227,0 229,5 252,4 252,4 252,4 277,6 277,6 277,6 305,4 305,4 305,4
00 00 00 50 50 50 95 95 95 65 65 65
Direct Cost of 116,3 116,3 117,5 129,3 129,3 129,3 142,2 142,2 142,2 156,4 156,4 156,4
Sales 25 25 75 33 33 33 66 66 66 92 92 92
Production 0 0 0 0 0 0 0 0 0 0 0 0
Payroll
Other 0 0 0 0 0 0 0 0 0 0 0 0
Total Cost of 116,3 116,3 117,5 129,3 129,3 129,3 142,2 142,2 142,2 156,4 156,4 156,4
Sales 25 25 75 33 33 33 66 66 66 92 92 92
Gross Margin 110,6 110,6 111,9 123,1 123,1 123,1 135,4 135,4 135,4 148,9 148,9 148,9
75 75 25 18 18 18 29 29 29 72 72 72
Gross Margin % 48.76 48.76 48.77 48.77 48.77 48.77 48.77 48.77 48.77 48.77 48.77 48.77
% % % % % % % % % % % %
Operating
Expenses
Sales and
Marketing
Expenses
Sales and 12,00 12,00 12,00 13,00 13,00 13,00 13,00 13,00 13,00 13,00 13,00 13,00
Marketing 0 0 0 0 0 0 0 0 0 0 0 0
Payroll
Advertising/ 500 500 500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Promotion
Commissions 11,35 11,35 11,47 12,62 12,62 12,62 13,88 13,88 13,88 15,27 15,27 15,27
0 0 5 3 3 3 5 5 5 3 3 3
Travel - Sales 1,500 1,500 1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Learning & 0 0 0 400 400 400 400 400 400 1,250 1,250 1,250
Growth - Sales
Entertainment 450 450 450 450 450 450 450 450 450 450 450 450
Total Sales and 25,80 25,80 25,92 29,47 29,47 29,47 30,73 30,73 30,73 32,97 32,97 32,97
Marketing 0 0 5 3 3 3 5 5 5 3 3 3
Expenses
Sales and 11.37 11.37 11.30 11.67 11.67 11.67 11.07 11.07 11.07 10.79 10.79 10.79
Marketing % % % % % % % % % % % % %
General and
Administrative
Expenses
General and 10,60 10,60 10,60 11,40 11,40 11,40 11,40 11,40 11,40 11,40 11,40 11,40
Administrative 0 0 0 0 0 0 0 0 0 0 0 0
Payroll
Sales and 0 0 0 0 0 0 0 0 0 0 0 0
Marketing and
Other Expenses
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
Utilities 750 750 750 750 750 750 750 750 750 750 750 750
Telephone & ISP 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850
Office Supplies 350 350 350 350 350 350 350 350 350 350 350 350
Insurance 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400
Bank Charges 500 500 500 500 500 500 500 500 500 500 500 500
Postage 835 835 835 835 835 835 835 835 835 835 835 835
USER 61
Taxes & Licenses 850 850 850 850 850 850 850 850 850 850 850 850
Bonuses 0 0 0 0 0 0 0 0 0 0 0 0
Learning & 0 0 0 150 150 150 150 150 150 750 750 750
Growth - Admin
Accounting 500 500 500 500 500 500 500 500 500 500 500 500
Rent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Payroll Taxes 30 14,32 14,32 14,32 15,37 15,37 15,37 15,37 15,37 15,37 15,37 15,37 15,37
% 5 5 5 5 5 5 5 5 5 5 5 5
Other General 0 0 0 0 0 0 0 0 0 0 0 0
and
Administrative
Expenses
Total General and 38,96 38,96 38,96 40,96 40,96 40,96 40,96 40,96 40,96 41,56 41,56 41,56
Administrative 0 0 0 0 0 0 0 0 0 0 0 0
Expenses
General and 17.16 17.16 16.98 16.22 16.22 16.22 14.75 14.75 14.75 13.61 13.61 13.61
Administrative % % % % % % % % % % % % %
Other Expenses:
Other Payroll 25,15 25,15 25,15 26,85 26,85 26,85 26,85 26,85 26,85 26,85 26,85 26,85
0 0 0 0 0 0 0 0 0 0 0 0
Consultants 0 0 0 0 0 0 0 0 0 0 0 0
Learning & 0 0 0 850 850 850 650 650 850 1,500 1,500 1,500
Growth - Service
Travel - Service 1,500 1,500 1,500 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Freight & Cartage 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Total Other 29,15 29,15 29,15 32,20 32,20 32,20 32,00 32,00 32,20 32,85 32,85 32,85
Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Other % 12.84 12.84 12.70 12.76 12.76 12.76 11.52 11.52 11.60 10.75 10.75 10.75
% % % % % % % % % % % %
Total Operating 93,91 93,91 94,03 102,6 102,6 102,6 103,6 103,6 103,8 107,3 107,3 107,3
Expenses 0 0 5 33 33 33 95 95 95 83 83 83
Profit Before 16,76 16,76 17,89 20,48 20,48 20,48 31,73 31,73 31,53 41,58 41,58 41,58
Interest and 5 5 0 5 5 5 5 5 5 9 9 9
Taxes
EBITDA 16,76 16,76 17,89 20,48 20,48 20,48 31,73 31,73 31,53 41,58 41,58 41,58
5 5 0 5 5 5 5 5 5 9 9 9
Interest Expense 11,66 11,66 11,66 11,66 11,66 11,66 11,66 11,66 11,66 11,66 11,66 11,66
7 7 7 7 7 7 7 7 7 7 7 7
Taxes Incurred 1,530 1,937 2,365 3,351 3,351 3,351 7,626 7,626 7,550 11,37 11,37 11,37
0 0 0
Net Profit 3,569 3,161 3,858 5,467 5,467 5,467 12,44 12,44 12,31 18,55 18,55 18,55
2 2 8 2 2 2
Net Profit/Sales 1.57 1.39 1.68 2.17 2.17 2.17 4.48 4.48 4.44 6.07 6.07 6.07
% % % % % % % % % % % %
Table # 17 Pro Forma Cash Flow

1 2 3 4 5 6 7 8 9 10 11 12
Cash
Received
Cash from
Operations
Cash Sales 147,55 147,55 149,17 164,09 164,09 164,09 180,50 180,50 180,50 198,55 198,55 198,55
0 0 5 3 3 3 2 2 2 2 2 2
Cash from 0 2,648 79,450 79,479 80,593 88,358 88,358 88,652 97,193 97,193 97,517 106,91
Receivables 3
Subtotal 147,55 150,19 228,62 243,57 244,68 252,45 268,85 269,15 277,69 295,74 296,06 305,46
Cash from 0 8 5 2 5 0 9 4 5 5 9 5
Operations
Additional
Cash
Received
USER 62
Sales Tax, 0 0 0 0 0 0 0 0 0 0 0 0
VAT,
HST/GST
Received
New 0 0 0 0 0 0 0 0 0 0 0 0
Current
Borrowing
New Other 0 0 0 0 0 0 0 0 0 0 0 0
Liabilities
(interest-
free)
New Long- 0 0 0 0 0 0 0 0 0 0 0 0
term
Liabilities
Sales of 0 0 0 0 0 0 0 0 0 0 0 0
Other
Current
Assets
Sales of 0 0 0 0 0 0 0 0 0 0 0 0
Long-term
Assets
New 30,000 0 0 0 0 0 0 0 0 0 0 0
Investment
Received
Subtotal 177,55 150,19 228,62 243,57 244,68 252,45 268,85 269,15 277,69 295,74 296,06 305,46
Cash 0 8 5 2 5 0 9 4 5 5 9 5
Received
Expenditur Month Month Month Month Month Month Month Month Month Month Month Month
es 1 2 3 4 5 6 7 8 9 10 11 12
Expenditur
es from
Operations
Cash 47,750 47,750 47,750 51,250 51,250 51,250 51,250 51,250 51,250 51,250 51,250 51,250
Spending
Bill 3,455 106,05 176,19 180,24 208,23 195,73 196,81 227,75 214,00 215,36 250,79 235,66
Payments 4 5 7 5 3 6 5 7 6 0 3
Subtotal 51,205 153,80 223,94 231,49 259,48 246,98 248,06 279,00 265,25 266,61 302,04 286,91
Spent on 4 5 7 5 3 6 5 7 6 0 3
Operations
Additional
Cash Spent
Sales Tax, 0 0 0 0 0 0 0 0 0 0 0 0
VAT,
HST/GST
Paid Out
Principal 0 0 0 0 0 0 0 0 0 0 0 0
Repayment
of Current
Borrowing
Other 0 0 0 0 0 0 0 0 0 0 0 0
Liabilities
Principal
Repayment
Long-term 0 0 0 0 0 0 0 0 0 0 0 0
Liabilities
Principal
Repayment
Purchase 0 0 0 0 0 0 0 0 0 0 0 0
Other
Current
Assets
Purchase 0 0 0 0 0 0 0 0 0 0 0 0
Long-term
Assets
USER 63
Dividends 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal 51,205 153,80 223,94 231,49 259,48 246,98 248,06 279,00 265,25 266,61 302,04 286,91
Cash Spent 4 5 7 5 3 6 5 7 6 0 3
Net Cash 126,34 (3,605) 4,680 12,075 (14,800 5,467 20,793 (9,852) 12,438 29,129 (5,971) 18,552
Flow 5 )
Cash 351,34 347,74 352,42 364,49 349,69 355,16 375,95 366,10 378,54 407,67 401,70 420,25
Balance 5 0 0 5 6 3 6 5 3 2 0 2
Table # 18 Pro Forma Balance Sheet

1 2 3 4 5 6 7 8 9 10 11 12
Assets Startin
g
Balan
ces
Current
Assets
Cash 225,00 351,34 347,74 352,42 364,49 349,69 355,16 375,95 366,10 378,54 407,67 401,70 420,25
0 5 0 0 5 6 3 6 5 3 2 0 2
Account 0 79,450 156,25 157,12 166,00 173,77 173,77 182,60 191,14 191,14 200,86 210,26 210,26
s 2 7 5 0 0 6 7 7 6 1 1
Receiva
ble
Inventor 200,00 127,95 127,95 129,33 142,26 142,26 142,26 156,49 156,49 156,49 172,14 172,14 172,14
y 0 8 8 3 6 6 6 2 2 2 2 2 2
Other 0 0 0 0 0 0 0 0 0 0 0 0 0
Current
Assets
Total 425,00 558,75 631,94 638,87 672,76 665,73 671,19 715,05 713,74 726,18 780,67 784,10 802,65
Current 0 3 9 9 6 1 9 4 4 2 9 3 5
Assets
Long-
term
Assets
Long- 0 0 0 0 0 0 0 0 0 0 0 0 0
term
Assets
Accumul 0 0 0 0 0 0 0 0 0 0 0 0 0
ated
Deprecia
tion
Total 0 0 0 0 0 0 0 0 0 0 0 0 0
Long-
term
Assets
Total 425,00 558,75 631,94 638,87 672,76 665,73 671,19 715,05 713,74 726,18 780,67 784,10 802,65
Assets 0 3 9 9 6 1 9 4 4 2 9 3 5
Liabilitie Month Month Month Month Month Month Month Month Month Month Month Month
s and 1 2 3 4 5 6 7 8 9 10 11 12
Capital
Current
Liabilitie
s
Account 0 100,18 170,21 173,29 201,71 189,20 189,20 220,62 206,87 206,98 242,93 227,80 227,80
s 4 9 1 0 8 8 2 0 9 5 7 7
Payable
Current 1,000, 1,000, 1,000, 1,000, 1,000, 1,000, 1,000, 1,000, 1,000, 1,000, 1,000, 1,000, 1,000,
Borrowi 000 000 000 000 000 000 000 000 000 000 000 000 000
ng
Other 0 0 0 0 0 0 0 0 0 0 0 0 0
Current
Liabilitie
s
Subtotal 1,000, 1,100, 1,170, 1,173, 1,201, 1,189, 1,189, 1,220, 1,206, 1,206, 1,242, 1,227, 1,227,
Current 000 184 219 291 710 208 208 622 870 989 935 807 807
USER 64
Liabilitie
s
Long- 0 0 0 0 0 0 0 0 0 0 0 0 0
term
Liabilitie
s
Total 1,000, 1,100, 1,170, 1,173, 1,201, 1,189, 1,189, 1,220, 1,206, 1,206, 1,242, 1,227, 1,227,
Liabilitie 000 184 219 291 710 208 208 622 870 989 935 807 807
s
Paid-in 0 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Capital
Retained (575,0 (575,0 (575,0 (575,0 (575,0 (575,0 (575,0 (575,0 (575,0 (575,0 (575,0 (575,0 (575,0
Earnings 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00)
Earnings 0 3,569 6,730 10,588 16,056 21,523 26,990 39,432 51,874 64,193 82,744 101,29 119,84
6 8
Total (575,0 (541,4 (538,2 (534,4 (528,9 (523,4 (518,0 (505,5 (493,1 (480,8 (462,2 (443,7 (425,1
Capital 00) 31) 70) 12) 44) 77) 10) 68) 26) 07) 56) 04) 52)
Total 425,00 558,75 631,94 638,87 672,76 665,73 671,19 715,05 713,74 726,18 780,67 784,10 802,65
Liabilitie 0 3 9 9 6 1 9 4 4 2 9 3 5
s and
Capital
Net (575,0 (541,4 (538,2 (534,4 (528,9 (523,4 (518,0 (505,5 (493,1 (480,8 (462,2 (443,7 (425,1
Worth 00) 31) 70) 12) 44) 77) 10) 68) 26) 07) 56) 04) 52
USER 65

Business Plan To Start An IT Company

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Business Plan To Start An IT Company

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Business Plan to Start

ELDORET TECHNICAL TRAINING INSTITUTE.

(1) Achieve healthy earnings (EBIT) in the first year of operation.

1.3 Keys to Success

The keys to our success are:

(i) Financial Goals vs. Results.

2.1 Company Ownership

2.2 Start-up Summary

The remainder of the funds will be used for:

Table # 1: Start-up Requirements

Table # 2 : Start-up Funding

Start-up Expenses to Fund BDT 5,75,000.00

Liabilities and Capital

Loss at Start-up (Start-up Expenses) (5,75,000.00)

2.3 Company Locations and Facilities

3.1 Sales Literature

3.2.1 Hardware Products to be Offered

(1) Imaging, Copier & Scanning Devices:

3.2.2 Software Product offerings

(1) eCopy ScanStation, ShareScan, Desktop.

3.2.3 Service Products

(1) All-inclusive maintenance agreements (on-call service and supplies).

3.2.4 Professional Services

(1) Information Workflow analysis and design.

3.3 Competitive Comparison

3.5 Service and Support

3.6 Future Products and Services

(1) Wireless LAN systems.

4.1 Market Segmentation

Figure # 3: Market Analysis (Pie).

Table # 3: Market Analysis

4.2 Target Market Segment Strategy

4.2.1 Market Trends

4.2.2 Market Growth

4.2.3 Market Needs

4.3 Service Business Analysis

4.3.1 Competition and Buying Patterns

4.3.2 Distributing a Service

4.3.3 Main Competitors

The traditional office equipment (copier) industry has been dominated by only a few major

(1) A new attitude – we are at the beginning of a product/technology convergence.

5.1 Competitive Edge

5.2 Strategy Pyramid

5.3 Value Proposition

5.4 Sales Strategy

5.4.1 Sales Forecast

Figure # 4: Sales by Year.

Table # 4: Sales Forecast

Direct Cost of Sales Year 1 Year 2 Year 3

Table # 5: Milestone Table

The marketing strategy is the core of our main strategy:

(1) Emphasize service and support.

5.6.1 Sales Programs

5.6.2 Positioning Statement

5.6.4 Promotion Strategy

5.6.6 Marketing Programs

5.7 Strategic Alliances

6.1 Organizational Structure

6.2 Personnel Plan

Production Personnel Year 1 Year 2 Year 3

Sales and Marketing Personnel

General and Administrative Personnel