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Smart Design LTD
My name is Maxwell Marquailleum Coxson. The name of my company is Smart Design Ltd. It is located in Yallahs, St. Thomas, Jamaica. What Smart Designs does is basically digital photography and duplication of video (or visual) media, meaning if you have video on a VHS tape, then we can transfer them to a disc of your choosing (either VCD or DVD). Right now, I am re-vamping the shop to do only DVD/VCD transfer. We have added an internet cafe and ways for people to get assignments for school, letters, resumes, and the like done efficiently for them. Below I have included a small business (short-term) plan.
Right now, the company is facing financial setbacks and funds are needed to help the day-to-day operations, the purchase of new equipments (equipment are the moment are outdated and was bought used) and to upgrade facilities I am in at the moment. I am looking for cash investors to help me with this endeavor. Also, your expertise would be much welcome in order to help me stay afloat in these times of uncertainty. If there is such an individuals who can give of their time and monies. Please email me at blackdragonacqultd@softhome.net or call me at 1-876-464-4243(cell) or 1-876-327-0691(business) and more information will be gladly given to you.
Business Plan
1.0 Executive Summary
Smart Designs (SD) uses computers, software, and service to help the local small businesses and community.
This business plan is part of our regular business planning process. We revise this plan every quarter.
1.1 Objectives
Sales increasing to more than US$100000 by the third year.
Bring gross margin back up to above 25%, and maintain that level.
Sell $10000 of service, support, and training by 2007.
Improve inventory turnover to 6 turns next year, 7 in 20066, and 8 in 2007.
1.2 Mission
SD is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Smart business people who aren't computer hobbyists need to find quality vendors of reliable hardware, software, service, and support. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies.
SD is such a vendor. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need to run their businesses as well as possible, with maximum efficiency and reliability. Many of our information applications are mission critical, so we give our clients the assurance that we will be there when they need us.
1.3 Keys to Success
Differentiate from box-pushing, price-oriented businesses by offering and delivering service and support -- and charging for it.
Increase gross margin to more than 25%.
Increase our non-hardware sales to 20% of the total sales by the third year.
2.0 Company Summary
SD is a 1-year old computer shop with sales of US$10000 per year, declining margins, and market pressure. It has a good reputation, excellent people, and a steady position in the local market, but has been having trouble maintaining healthy financials.
2.1 Company Ownership
SD is a privately-held corporation owned in majority by its founder and president, Maxwell M. Coxson. There are no owners at this present time, including two investors (Roger Nugent, Marlon Coxson) and two past employees.
2.2 Company History
SD has been caught in the vise grip of margin squeezes that have affected computer shops islandwide. SD is an american company now relocated in Yallahs, St. Thomas, Jamaica.
2.3 Products and Services
SD uses personal computer technology for small business including personal computer hardware, peripherals, networks, software, support, service, and training.
2.4 Company locations and facilities
We have one location-- It is situated in the square in a plaza called Hilda Maud and located next to the Western Union
3.0 Products and Services
SD uses personal computer technology for small business including personal computer hardware, peripherals, networks, software, support, service, and training.
Ultimately, we are really selling information technology. We sell reliability, and confidence. We sell the assurance to small business people to know that their business will not suffer an information technology disaster.
SD serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need to run their business as well as possible, with maximum efficiency and reliability. Since many of our information applications are mission critical, we give our clients the confidence that we will be there when they need us.
3.1 Product and Service Description
In personal computers, we support three main lines:
The internet cafe is where people can use the net as a vaible to send and receive emails and also to do assignments for school projects. It also provides encyclopedia and writing programs to help them with various assignments.
The other services available are typing a letter, and/or resumes. We also provide DVD/CD transfers for those with restore lost or old music or video to a viable and workable format
In peripherals, accessories and other hardware, we carry a complete line of necessary items from cables to forms to mousepads ...
In service and support, we offer a range of walk-in or depot service, maintenance contracts and on-site guarantees. We have not had much success selling service contracts. Our networking capabilities are important to our overall mix, because small business needs networking and needs to buy networking.
In training, we offer a three month course on the basic to the advance uses of computers and its various technology.
3.2 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 chains using boxes or products as appliances. We need to offer a real alliance.
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, products that require serious knowledge and experience to use, and our competitors sell only the products themselves.
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 charge for it separately.
3.3 Financial Plan
The most important element in the financial plan is the critical need for improving several of the key factors that impact cash flow:
We must at any cost stop the slide in inventory turnover and develop better inventory management to bring the turnover back up to 8 turns by the third year. This should also be a function of the shift in focus towards service revenues to add to the hardware revenues.
We must also bring the gross margin back up to 25%. This too is related to improving the mix between hardware and service revenues, because the service revenues offer much better margins.
We plan to borrow another $150,000 long-term this year. The amount seems in line with the balance sheet capabilities.
3.4 Projected Profit and Loss
Right now, the company is experiencing what is called in the industry as downsizing. We have not made the necessary adjustments to such a climate at this time and will be implementing a plan soon to change what is known as a market influx.
3.5 Projected Cash Flow
at the present time, our cash flow goes on a week to week basis. We have seen at times when cash flow can be nil. It has been regarded that the company needs to relocate to a viable region that will increase cash flow.
Max's Video Shop
Send E-Mail to: blackdragonacqultd@softhome.net
Copyright © 2005 Maxwell Coxson. All Rights Reserved