Business Proposal

Business Proposal

Business Proposal

Section A

Problem Identification in Managing Information

By focusing on its strengths, its key customers, and the underlying values they need, Information Management London'i, Inc. (IMH) 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 this summary, chapters on the company, products and services, market focus, action plans and forecasts, management team, and the financial plan.

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.

Mission

To provide the London'i business community with quality brand-name Information Technology business information 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.

Keys to Success

The keys to our success are:

Building and maintaining strategic alliances with our manufacturers and other industry related business partners;

Adopting a customer- and market-focused sales and marketing paradigm; and,

Managing the business by implementing, and consistently measuring and adjusting the fundamentals of a Balanced Scorecard:

Financial Goals vs. Results

Internal Business Process Goals vs. Results

Employee Learning and Growth Goals vs. Results

Customer Satisfaction Goals vs. Results

Company Summary

Information Management London'i, Inc., will sell and service digital office information systems for London'sbusinesses, with a focus on the Neighbor Island business community. IMH will be formed as the result of the acquisition of three existing businesses: Maui Office Machines, Inc.; Electronics London'i, Inc.; and, Kauai Office Equipment, Inc.

Company Ownership

IMH will be privately-held [C corporation] owned in majority by the IMH Employee Stock Ownership Trust. There are currently 15 employees, and all will own equal shares in the ESOT. New employees will be given the opportunity to become vested in the Employee Stock Ownership Plan (ESOP) after a suitable probationary period.

Start-up Summary

IMH's start-up costs will be $1M, which includes $450,000 for the acquisition of the Maui and Hilo operations of Servco Integrated Office Technology.

The remainder of the funds will be used for:

Initial Inventory: $200,000

Initial Capitalization: $225,000

Legal, Insurance, Rent & Misc: $125,000

The start-up funding will be financed by loans arranged through the Small Business Development Center, and by the London'i Community Loan Fund, and the Small Business Administration as a guarantor. Start-up assumptions are shown in the following table and chart.

Company Locations and Facilities

IMH have two locations, one in Kahului, Maui and the other in Hilo, London'i. The two offices are presently being leased by Servco Pacific, Inc., and we will rent from them on a month-to-month basis until IMH is able to relocate to ...