High Top Information Technology Sample Business Plan


Table of Contents

EXECUTIVE SUMMARY

SECTIONS 1.0 MANAGEMENT PLAN
1.1 Ownership Structure
1.2 Management Profile

SECTION 2.0 INDUSTRY AND MARKET ASSESSMENT
2.1 Defining the Industry
2.2 Overview of the industry
2.3 Evolving Market in the Industry
2.4 Industry Challenges
2.5 The Market
2.6 The First Sectorial Statistical Institute Services Contract
2.7 Competitive Environment

SECTION 3.0 MARKETING PLAN
4.1 Key Services
4.2 Pricing Strategies
4.3 Distribution Strategy
4.3 Promotional Strategy

SECTION 4.0 OPERATIONAL PLAN
4.1 General Operating Hours
4.2 Human Resources
4.3 Insurance Requirements
4.4 Government Requirements
4.5 Survival Strategy
4.6 Office Requirements and Asset Acquisitions
4.7 Operational Workflow


Executive Summary

The High Top Information Technology (HTIT) will be wholly owned and operated by Mr. Terry Hollate. The HTIT is a proposed Ontario based company which will provide a wide array of information technology solutions which include:

•  Information technology (IT) networking and infrastructure for First Sectorial and First Sectorial organizations

•  Information technology systems training

•  Custom information technology assessments

•  Support and aftercare

This company will be located at:

High Top Information Technology
536 Techie Rd
Innston, ON D84 4T7

HTIT has identified its target market as First Sectorial governments (band infrastructure) and First Sectorial organizations located within Ontario.

The primary function of HTIT is to contract with First Sectorial governments and organizations, in which the company's information technology services will be delivered to ensure, enhance and protect the IT affairs and needs of its target market.

In Canada, the information and communications technology industry is an evolving industrial sector comprised of companies and organizations that provide information and communications technology which:

•  Improve communications services;

•  Improve data processing, hosting and other related services;

•  Enhances computer systems design and other related services

The information and communications technology industry represents a set of enabling tools with information and communication applications across most industries including retail, wholesale, manufacturing and service sectors and serving as an enhancement to primary products and services sold.

In total, the Canadian information and communications technology industry is represented by over 33,500 companies. Firms in this industry remain relatively small. Of the 33,500 companies in this sector, 83% had fewer than 10 employees, 12.9% had 10 to 50 employees, 2% had 50 to 100 employees and 1.7 % had over 500 employees. The Canadian information and communications technology industry employs a highly skilled and educated workforce. More than 555,978 workers (3.2 % of total national employment) were employed in over 33,500 companies in 2011.

On average, the annual growth for the information and communications technology sector has grown 3.8% per year between 2002 and 2011. This represents a growth rate that is roughly two times that of the Canadian economy (1.9% growth rate). Compared to the rest of the economy, which grew by 2.6%, the IT sector has grown by 3.1% in 2010.

There is a clear indication that the IT industry is a robust and growing sector. Industry indicators reveal the IT industry is growing 2 times that of the rate of the rest of the Canadian economy. Compared to the rest of the Canadian economy, which grew by 2.6%, the IT sector has grown by 3.1% in 2010. The bulk of this growth is within the ICT services industry which includes data processing, hosting, related services, computer systems design and integration.

Due to the location of the company, HTIT has an opportunity to service a large portion of Ontario's Eastern, Southern and Northern First Sectorial. In Ontario, there are 126 First Sectorial and of these First Sectorial five are among the twenty largest in Canada. Today, First Sectorial governments and organizations are now realizing the importance of information technology and everything it entails. Moreover, the entire Aboriginal market has identified the increasing demand for IT services since similar driving forces as the mainstream market have taken effect.

Overall, the awareness for First Sectorial governments to invest in IT infrastructures to enhance and protect their resources and data has become an important area. Therefore, the need for qualified First Sectorial IT professionals to fulfill this growing need has become increasingly large. In fact, of those First Sectorial polled (Market research conducted on behalf of Mr. Hollate);

  • - 35% have stated that they would be “very interested” in talking with Mr. Hollate regarding his services;
  • - 67% have stated that they would be willing to receive sales and services literature from Mr. Hollate.

Based on the market research, there is a rather high demand for qualified First Sectorial IT professionals in all Ontario regions. There is a demonstrated need in First Sectorial governments and communities for First Sectorial IT professionals such as HTIT.

HTIT's sales strategy is three tiered. First the company will plan on achieving first year direct sales of $240,000. This is a very realistic projection based on the market research conducted. The company's principal, Mr. Terry Hollate has secured a guaranteed contract with The First Sectorial Statistical Institute worth $50,000 for its first year of operations.

Market research has indicated a conservative 30% conversion rate is very attainable for its core services. Secondly, the company will plan to achieve a more profitable level of sales equal to or better than $333,000 in years two and $435,000 in year three. Thirdly, the company plans to more aggressively promote its services with higher profit margins to allow for maximized profits.

The initial start-up expense for HTIT includes: capital $23,250; marketing $19,000; and business support $5,000. Capital funds will be used to purchase office furniture, office network, and computer lab. Marketing funds will be used to for identity /branding, trade show booth design, trade show attendance, website, direct marketing campaigns, and company apparel. Business support funds will be utilized to hire an accountant.

In order to properly fund the start-up of HTIT, Mr. Hollate has designed a financing package that consists of personal equity, federal assistance and traditional borrowing. Mr. Hollate will invest $2,325 or 10% of the project's total capital costs. Easy Technology Contributions will be approached to invest $10,463 or 45% of the project's total capital costs and the remaining balance of $10,463 will be financed by a commercial bank over a 5 year term. Bridge financing will be sought from the same institution to ensure cashflow is manageable. Easy Technology Contributions will be asked to contribute 60% and 75% towards the business' marketing and business support costs respectively. The remaining funds will come from revenue generated by the business.

SECTION 1.0 MANAGEMENT PLAN

1.1 Ownership

The High Top Information Technology will be owned and operated as a for profit corporation with Mr. Terry Hollate being the sole shareholder, voter and board member. This management structure is deemed sufficient and best suits the company's needs. HTIT will seek qualified employees as the company begins to succeed in gaining work.

Myles will incorporate the company provincially at a cost of $450.00.

1.2 Management Profile

Mr. Terry Hollate will draw upon his specialized education and experience to manage the overall operation and direction of the business to ensure its present and future success. For over 14 years, Mr. Hollate has invested time and money into becoming the Information Technology specialist he is today. Some of the key highlights of Mr. Hollate employment history, education and relevant experience include:

•  Master's Degree Computer Science

•  Honours Degree Computer Programming

•  IT Certified Specialist

•  Certified Web Master

•  Search Engine Algorithm Specialist

•  Computer Programmer with the Government of Canada

As identified, Mr. Hollate has accumulated a number of specialized industry skills, and managed projects which will assist him in the successful management of this business. A detailed resume for Mr. Hollate is included in Attachment #1.

As the owner of the company, Mr. Hollate will be required to fulfill the following key duties and responsibilities. They are:

•  Overall management of HTIT;

•  Establish and maintain client relationships;

•  Maintain strategic alliances and partnership with key companies;

•  Provide accurate and timely quotes/proposals as well as sales presentation to potential clients;

•  Human resource management;

•  Project management and direction;

•  Oversee financial activities of the business;

•  Deliver and complete all services of the company;

•  Maintain the business' assets and buildings

All legal expertise will be provided by a qualified lawyer. Mr. Hollate will be reviewing potential candidates shortly. $7,500 has been budgeted for this activity.

As the start-up of this company becomes more tangible, additional duties will arise. These duties can be time consuming and may affect the overall viability of the business. It is for this reason that Mr. Hollate has hired an executive assistant to perform daily administrative duties associated with the business.

Mr. Hollate will hire a local and experienced accountant to provide and prepare all financial reporting requirements of the company. This will include:

•  Provide updates to lending institutions and government agencies including monthly reports and filing of Easy Technology Contributions Claims;

•  Management of new marketing and administrative techniques;

•  Provide quarterly financial statements

•  Formalization of accounting systems to provide the necessary annual revenues and expense reports

The estimated cost for those specialized service is $5,000.00. Once these systems are in place, Mr. Hollate will take over these key functions.

Mr. Hollate will determine HTIT's administrative and technical needs on an on-going basis. When sufficient work exists to maintain salaried staff in either realm, the appropriate personnel will be hired. A detailed summary of the additional human resource needs for the company is identified in the operations section of this plan.

Overall, this management team is well suited to undertake the initiatives detailed in this plan and will provide HTIT with a solid base from which to grow. The proposed management plan has been carefully developed and will be maintained to ensure weaknesses are overcome and a solid foundation is in place for the company's immediate as well as future success.

SECTION 2.0 INDUSTRY & MARKET ASSESSMENT >>>

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