1.

Executive Summary
1.1. Objectives
1.2. Mission Statement
1.3. Keys to Success

2. Company Summary
2.1. Basic Information
CompanyA is being established primarily to focus on HR needs in the China market.
Its founding partners all have existing business in China but are merging their
companies into one new entity. The former companies will become Business Units in
CompanyA. Each Business Unit will primarily act autonomously but will use some
resources to help other BUs grow and develop.

2.2. Ownership
Ownership of CompanyA will be held through a Hong Kong corporation. This HK
Corporation will own the Brand, Website, Trademarks and Copyrights of CompanyA.
Initial partners will own shares in this company. Future Partners may be given
shares in this company pending approval of other partners. These issues are
further addressed in the Hong Kong Company’s bylaws.

2.3. Licensing
There are two corporations involved in CompanyA. First, there is the Hong Kong
registered corporation, which is owned by the partners. Second, there is a China
corporation licensened to provide consulting services. This corporation must be
locally owned to meet PRC requirements. Local ownership broadens the scope of
services offered. This would include, Event Planning, Training and Development,
Recruiting, Payroll, Business Development Consulting. It may also included the
delivery, development and sales of materials related to these services.

2.4. Locations
CompayA’s headquarters are in Shanghai, China. Later, offices may be open in other
cities in China and around the world.

3. Services
3.1. Intents
3.2. M7 Leadership Development
3.3. Asipre

4. Marketing
4.1. Marketing Strategy
4.1.1. Market Needs
4.1.2. Market Trends
4.1.3. Market Size
4.2. Industry Analysis
4.2.1. Competition

5. Strategic Summary
5.1. Strategic Position
CompanyA’s basic strategy is to offer in-depth services in each of its Business
Units but blend these services with the other BUs to provide solutions that are
consistent across an organization, have strategic vision for the entire company,
blending soft skill, technical, financial, sales, marketing and other needs.

5.2. Product Differentiation

Offer western standards of quality in China. Be the experts in each field of
business but offer wider scope than most consulting firms. Provide measurable ROI
to clients.
5.3. Long Term Strategy
Build CompanyA’s reputations into one of the best known in China. Develop each
Business Unit into multi-million dollar business. Expand scope of services into
related fields.

5.4. Milestones
5.4.1. Develop BP
5.4.2. Bylaws
5.4.3. CompanyA Incorporation
5.4.4. Accounting requirements complete
5.4.5. Office opens
5.4.6. Complete basic marketing (website, brochures, business cards, etc…)

6. Management Structure
6.1. Organizational Structure
The basic structure of CompanyA is built on Business Units. Each acts
independently within its sphere of business but supports the other BUs in:
• Developing new clients
• Expanding services into other BUs clients
• Providing better product to market
• Sharing cost and administration
6.2. Partnership Team
CompanyA will initially start with 3 or 4 partners. Each has an existing business,
client base and revenue from that business. Additional partners maybe brought in
if they meet all the following criteria:
• Simple majority of existing partners vote them in.
• Do not conflict with another partner’s core business. If this conflict
exists, the partner in conflict does not need a simple majority to stop the new
partner from entering CompanyA. His “no” vote alone is enough to bar entry.
• Has existing clients and revenue. Minimum monthly revenue of 60,000 RMB.

6.3. Management Gaps

• General Manager – Initial solution is to appoint an interim GM from the
partners. Later, CompanyA may hire a full-time GM or appoint a part-time manager
from Board of Directors.
• Marketing Manager- There is a gap in developing marketing material for
CompanyA (not the BUs). These may be performed by the partners as shared cost.
Compensation to be agreed to before services are performed.
• Office Manager- Divide responsibilities among partners. Later hire full-time
manager.
• BD Manager- Each unit to manage its own development. Later hire BD Manager.

6.4. Exit Strategies

CompanyA has a long term strategy of building a strong brand and reputation. When
we are successful there are a few options for partners to sell their equity in
CompanyA. All 3 options require a simple majority vote from existing partners.
• Outside company buys CompanyA and partners share the revenue generated from
the sale.
• CompanyA partner or partners buy a partner’s equity.
• An outside party buys a partner’s equity.

6.5. Failure to Perform Clause

There is risk that a partner’s BU will not perform and generate revenue and help
others build CompanyA. If a BU fails to meet monthly revenue targets and growth
the BU will be put on probation. Probation is a 6 month period when the BU either
achieves or fails to reach revenue targets. If the BU fails to achieve targets the
BU is closed and the partner’s shares are distributed to the other partners.

BUs that fail to contribute shared operational cost for 2 months are placed on
probation. If they fail to repay past payments and maintain current monthly
contributions to operational cost within 2 more months the BU is closed and the
BU’s partner loses their shares. Those shares are equally distributed to the other
partners.

6.6. Scope Restrictions

BUs are restricted in the scope of services offered. They may not offer competing
services to other CompanyA BUs. Definition of what is “competing” is determined by
simple majority vote of partners. If they violate this restriction they are given
30 days to drop competing services. If they fail to suspend the service the
partners by simple majority may vote them out of the company. In such cases the
partner’s shares in CompanyA are equally distributed to the other partners.

7. Financial Plan
7.1. Assumptions
Each BU is responsible for its own P&L. Each BU must contribute an equal portion
of revenue to cover shared cost. Each BU must achieve sales targets of this plan.

7.2. Financial Structure

• CompanyA will hire an accountant to manage each BU’s finances. Financial
results will be available for review at partner’s monthly meetings.
• Each BU will maintain and control its own Bank Account.
• Shared operational cost will be paid monthly by each BU.
• Shared cost to include marketing tools and materials designed specifically
for CompanyA, not individual BUs.

7.3. Projected Costs

Office Lease 12,000
Phone 1000
Network/Website 500
Electric/Water 1000
Accounting 1500
Receptionist 3500
Total 19,500

7.4. Projected Revenue

7.5. Long Term Plan