BUSINESS PLAN

for

Acme Training Services & Computer Sales

February 2000 For Barwest Bank plc INDEX
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Summary of Business Plan a. Introduction to Acme Business Services & Co b. Product: Computer Sales c. Product: Training Services d. Why the Business will Succeed e. Financial Summary Management a. Proprietor: Employment Record b. Junior Partners: Brief Summary c. How and Why the Business Started Product / Service a. Computers Sales b. Printer Sales c. Training Sales Marketing a. The Market Size b. Future Growth c. Market Sector d. Expected Client Profile e. Competitors Sales a. Advertising b. Promotion c. Who will Sell d. The Unique Selling Points e. Setting the Price Operational a. Location b. Equipment and Costs To-date c. Equipment Required d. Staff Short - Medium Term Trading a. Objective Short Medium-term b. What if ? - contingency plans Financials

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Contact Details

Summary of Business Plan

a.

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Introduction to Acme Training Services & Computer Sales Acme Training Services & Computer Sales has been established for two months, and trade on a regional basis. There are currently two partners: John Smith (28) and Jane Jones (25), who have extensive experience of computers and training. b. Product: Computer Sales John Smith has been building computers for five years for the well known firm BuildComputer.com and he has access to favourably priced computer parts. The computers are aimed at the corporate market, with service contracts available. c. Product: Training Services Jane Jones has been involved in computer training for for 5 years, the last two years as an independent consultant. Jane specializes in cutting edge technology. The planned courses run for 2 - 3 days, with quarterly 1-day progress and update courses to keep those under training up to date with the latest technology. d. Why the Business will Succeed Jane and John compliment each other: John worked for his father for four years as an office manager in a small manufacturing company, as such he has strong managerial skills to compliment Jane's ability to easily digest new technology and her undoubted skills in technology training. Further, both parties bring existing business and network contacts. Both parties believe that they could increase their own business areas by 200% within 6 - 12 months if they could delegate some less skillful areas within their current work schedules.. e. Financial Summary As you will see from the enclosed financials, the markup is 40% with an expected profit of 90,00 in the first year. They have 20,000 capital to invest in the company and seek further funds of 40,000 from a lender - secured on Johns property. An overdraft facility of 15,000 is also required to finance larger than expected growth if cash flow is limited due to increased costs.

Management
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Proprietor: Employment Record John Smith - CV attached Aged 28, John with City & Guilds Computer Studies (1994), has always had responsible positions in his career to-date. Working for his fathers manufacturing company as office manager for five years up to 1995: where his interest in computers began. For the past three years John worked for WeBuildComp.com as Computer Services Manager and has gained much experience of 'blue chip' requirements. John has been married for 4 years with two young children. Jane Jones - CV attached Aged 25, Jane with three A Levels in English, History and Art, has always sought positions that allow her to use her skills as a communicator and organiser. Jane worked for the leading firm WinMac Training Systems for three years before branching out as a successful independent training

consultant for the past two years. Other: Brief Summary John Smith's father, Richard Smith, will be assisting with the initial setup of the manufacturing outlet. He is retired after running his own successful manufacturing business for 40 years. And of course, he will be available as an ongoing source of help and advice.
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Two other suitable individuals have been sounded out for management positions and are keen to be involved with this venture. How and Why the Business Started Jane and John worked for the same client about a year ago and have used each others services on an informal basis since then. They believe that actively sourcing business for each other as a combined service will give them 'first sight' of opportunities.
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Product / Service
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Computer Sales Three standards of computers will be built: RS 01 350 MHz 32MB 6.4GB 15" Screen RS 02 450 MHz 64MB 6.4GB 15" Screen RS 03 550 MHz 128MB 12.6GB 17" Screen Each machine can have a number of specified add-on's: CD ROM, DVD, Modem The machine will built in their own manufacturing unit, with service for the first year on the client's site. Servers will be purchased as required to the specifications of the client.

Printer Sales A number of leading laser and ink jet printers will be available, with the anticipated service contracts as a major source of income. k. Training Sales Four levels of training will be available:
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Trainee up to 8 persons with no, or little, computer experience ii. Basic up to 8 persons with basic computer skills iii. Intermediate up to 8 persons who have a good working knowledge of computer systems iv. Advanced up to 4 persons who understand technical computer systems

Marketing
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The Market Size Currently, corporate computer sales are rising at 15% per quarter. It is expected to

continue at that rate for another two years. There are few business's that will avoid using a computer in those two years. The ability to configure a network of computers will be an important requirement. c. Future Growth The computer is still not integrated within 75% of UK business's. The computer will not be superceded within the next five years, and even then it is hard to see a dramatic change in hardware that will not be backward compatible. d. Market Sector Based in Manchester the need for computer hardware and training is always available. SME Office space is increasing by 10% per annum. There are currently 95,000 SME's in Manchester. e. Expected Client Profile Small Medium Enterprise (SME) Computer Sales Medium - Large Companies for Training Services Commerce and Industry Turnover 2m + Initially: Manchester and Districts Prefer client to be computer literate Competitors COMPUTERS Six companies have been identified as true competitors i.e. computer and peripheral sales and service direct to corporate clients on-site. The three main competitors are: ABC Computers Established 6 years, turnover 0 (Not Known), 6 staff, no growth in past two years Bell & Son PC's Established 4 years, turnover 2m, 10 staff, specialist computer systems, steady growth Corporate Comps (National Company) Established 2 years, turnover 7.5m, 40 staff, mainly top end clients, always stretched Summary Service complaints are common with all competitors, and hardware upgrades are long overdue. Corporate Comps are looking to revamp their national operation in the spring. TRAINING Three companies currently service the above client profile in computer training. Top two are: Easy Train

Established 15 years, turnover 900,000, computer training staff 4, no plans for rapid growth The PC Training Co. (National Company) Established 8 years, turnover 6.5m, computer training staff 35, no local office Summary At present demand exceeds resources. No effective competition is challenging the top companies, who offer only limited cutting edge technology training skills.

Sales
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Advertising An advert has been placed in the: 'Computer Sales' and 'Training' sections of Yellow Pages The Tuesday business section of the Manchester Regional News (on going) PCMAC Computer Monthly magazine d Promotion Targeted mail shot within 3 months Telesales company to start promotion within 1 month Two regional computer shows booked - 1st in 2 months 2nd in 6 months e Who will Sell Both proprietors are competent sales negotiators f The Unique Selling Points Dual capability of hardware supplier and training provider Latest technology training package Availability g Setting the Price COMPUTERS Prices include 1 year on-site total cover RS 01 350 MHz 32MB 6.4GB 15" Screen 650.00 RS 02 450 MHz 64MB 6.4GB 15" Screen 800.00 RS 03 550 MHz 128MB 12.6GB 17" Screen 950.00 PC Service contracts are 150 per annum for one PC and then 85 for each additional PC Printer 50 per annum for one, then 30 for each additional unit TRAINING 110 Per Day Trainee up to 8 persons with no, or little, computer

experience 135 Per Day Basic up to 8 persons with basic computer skills 180 Per Day Intermediate 8 persons, a good working knowledge of computer systems 295 Per Day Advanced up to 4 persons who understand technical computer systems 20% reduction for in-house training

Operational
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Location New office-warehouse development on Industrial Estate located 3 miles from city centre. Development has three meeting/conference rooms of high standard. 3 year lease - no payment for first 3 months, then 3,000 per quarter in advance. i Equipment and Costs To-date OFFICE 6 x Tables 475 6 x Chairs 350 3 x Filing cabinet 210 2 x Computer 875 laser printer 375 Ink jet printer 300 Photocopier 1200 Fax 250 Answer phone 100 2 x Phone line 150 Stationary and printing 1100 Sub Total 5385 WAREHOUSE 4 x Work bench 2000 8 x Stack shelving 1500 Lighting 750 Sub Total 4625 STOCK Computer parts 3750 TOTAL 13,860 Staff A mature office manager, and a trainee computer assembler will be sufficient for the initial 3 months - between 3 and 9 months two training staff (to cover Trainee and Basic training) and a junior office clerk will be employed. At 9 months a review of staff needs will take place.

Short - Medium Term Trading

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Objective Short-term COMPUTERS An average of 5 computer sales per week, and 2 service contracts. The trainee assembler to be competent at assembly within 6 months, and to service a computer on site within 9 months.

TRAINING Jane training for average of 3 days per week within 3 months. New training staff to be working an average of 4 days per week by 9 months. At the 12 month plus period, a number of Jane and John's tried and tested ex-colleagues and friends will be approached to join the company with equity available. What if ? - contingency plans Both John and Jane are confident (with good reason) that a contingency plan is unlikely to be needed, however, John has contacts who can provide him with computer fitting and servicing without notice, and likewise Jane with her training contacts.
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In a real emergency, say, John or Jane became ill, it is anticipated that the new staff could continue with 'basic' computer servicing or training - the requirement of a mature Office Manager is a strategic and important position.

Financials
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Monthly Profit & Loss Account (P&L)-projected for 2 years 2000 to 2001 Net Profit 90,000 2001 to 2002 Net Profit 175,000 As you can see from the P&L the business is expecting to make a net profit of 90,000 in the first year. The figures include the salary of the full compliment of staff as outlined on page 6 (c) above. The second year shows a net profit of 275,000: if this does happen they will purchase their own premises for 180,000. The total compliment of staff at the end of 2002 is 25.

Balance Sheet projected for 2 years 2000 to 2001 Net Assets 130,000 2001 to 2002 Net Assets 260,000 The projected figures show the anticipated reinvestment of all profits for the first two years: this trend will continue. Stock at the end of the second year is high but the discounts on bulk purchase is a profitable option in the

computer industry, if technology allows.

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Monthly Cash Flow Forecast for 2 years 2000 to 2001 Year-End Net Cash Flow 25,000 2001 to 2002 Year-End Net Cash Flow 120,000 In the first year the cash flow will remain positive unless an opportunity to buy bulk computer parts presents it's self. Likewise the entire second year is planned to be in the black and consideration will be given at that time as to the purchase of assets.
[N.B. If you are an existing company your audited accounts for up to three years are usually required - More info about the above Profit and Loss Accounts to be added soon]

Contact Details
John Smith 01234 9876543 Office Unit 3 The Trading Estate The Avenue MANCHESTER M23 4SA Home Mobile Jane Jones 01234 9876543

End Page

019671 3546387 09876 1234567

01234 1234567 017790 9876544

96 Avenue Hill Home Address 12 High Road MANCHESTER M34 5RR MANCHESTER M12 3AA ROK Associates Credit & Debt Management Limited 2000
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