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This report is confidential and is the property of the co-owners listed above. IT is intended for
use only by the persons to whom it is transmitted, and any reproduction or divulgence of any
of its contents without the prior written consent of the company is prohibited.
ITFit MANAGEMENT SYSTEMS
SUGARLAND, TEXAS
Co-owners:
Fabio Vasco, Pietto Vasco, Elkin Vasco and Temiloluwa Vasco
Description of Business:
ITFit provides the most comprehensive and adaptable web-based IT system management
software fully customized for customer specifications. ITFit helps customers, whether IT
management service providers (MSPs) or internal managers, better manage their IT network by
automating both basic and complex maintenance tasks, remotely monitoring their IT
infrastructure and providing detailed system reporting with industry best practice
recommendations.
Financing:
Initial financing requested is $119,953 loan to be paid off over 5 years. This debt will cover
office space, office equipment and supplies, advertising, inventory, and selling costs.
2
Executive Summary
ITFit is a complete, internet-based, IT systems management software that can be used
immediately without any modification or additional expense after subscription.
The current IT management systems available, like N-able and LabTech software, focus on only
one or a few phases of IT management (e.g. security, systems inventory or desktop
management) In addition, any comprehensive product handling multiple phases generally
entails a prohibitive initial investment in the IT system, which would then need additional time
and money to customize.
ITFit provides all the customization necessary based on customer feedback beforehand and is
immediately available via the web. The system is offered using the software as a service (SaaS)
model and paid for on a monthly, quarterly or annual basis as preferred by the customer,
negating the costly investment necessary when buying such a system outright. Finally, IT
Managers can monitor and manage all facets of their network from one single interface,
without spending additional time and money to build their knowledge base in the product.
ITFit monitoring software (referred to as the “agent”) is deployed remotely to all computers on
the customer’s network and performs automated tasks, procedures and schedules as required
by the customer. Agents do not require any inbound ports be opened on the managed
machines. This unique feature of ITFit allows the agent to do its job in virtually any network
configuration - without introducing any susceptibility to network security breaches.
The company is owned by four shareholders: Pietto Vasco, Fabio Vasco, Elkin Vasco and Temi
Vasco, who also serve as officers of the company. Fabio and Pietto Vasco have a total of 35
years of experience in IT systems management.
The company is poised to make over $6 million in revenues in the first year based on agent and
server fees charged for each computer on customer networks and a one-time registration fee.
The monthly fees agent and server fees are charged at the beginning of each month of service
and automatically drafted from customer accounts or credit cards to reduce collectability
issues.
Currently, KaseyaIT, which serves as the platform base for ITFit, is the market leader of
automated IT systems management software, with a user-base of more than 10,000, including
companies like FedEx Office, the U.S. Air force, Cisco and more than 50 percent of the world’s
largest IT service providers. However, purchasers or subscribers still have to perform additional
customization to enjoy the full benefits of the system. This process generally takes at least 3
months should a dedicated and knowledgeable IT staff be available, which is rarely the case.
3
We have already received very positive response from KaseyaIT users struggling with their
customization projects. Customers who are intrigued, but would like a demonstration before
placing a subscription, will be provided a beta version using the Kaseya website tools initially.
ITFit will provide a unique customized seamless IT management platform for users, which is
presently unavailable elsewhere.
4
Industry Analysis
A. Future outlook and trends(1)
Complicated technology, rising costs, and a dearth of information technology (IT) workers have
made network support services a fast-moving business. Detailed contracts specifying a
minimum quality of service and monetary penalties for the service vendor if the standard is not
met have done much to allay concerns of poor service and lack of accountability. Businesses
that use outside network support are also increasingly selective about which tasks they farm
out, so they are less likely to find themselves in an unsatisfactory blanket arrangement.
With service options proliferating and quality improving, some analysts envision IT services
growing ever more pervasive in network computing--to a point where a company doesn't need
its own network but relies entirely upon services. High speed fiber-optic networks, the ubiquity
of the Internet, and new networking paradigms such as virtual private networks, have all
helped make this possible on a limited scale and point to a future where network services figure
prominently.
A larger shift by corporations toward outsourcing nonessential functions also gave the industry
a boost. According to a 1997 survey, almost 73 percent of IT managers reported outsourcing
some of their technical needs. The top function outsourced was network maintenance (46.6
percent), followed by software development (42.5 percent), mainframe/legacy migrations (37
percent), software maintenance (32.9 percent), and Web site hosting (24.7 percent). According
to another study, 27 percent of surveyed companies were considering outsourcing remote
network management services as well.
Cost savings remain a key motivator for companies that hire network support services.
B. Analysis of competitors(3)(4)(5)
Competitors are KaseyaIT retailers and other providers of IT management systems. There are
two direct well-known competitors: N-able Technologies and LabTech Software. Other
competitors include Enterprise Resource Planning products that encompass IT management
modules like Microsoft SCCM, Symantec Altiris and Dell KACE systems. These products or
companies are focused more on large global companies that would prefer to have IT
management built into company-wide management system, not small and mid-sized national
firms. All competing firms have at least a national presence and are not localized in a specific
locale.
The strengths of these competitors include:
• Most integrate with systems already in use upon configuration.
5
• Generally cheaper than KaseyaIT, which will be our base product.
• Most can be further scripted for automating manual tasks
• Brand name recognition in the marketplace.
The Weaknesses of these competitors include:
• All need some degree of customization, which takes time and money.
• The poor interface for systems monitoring and reporting functionality makes them hard
to use.
• None provides customization services for their products to ensure plug-and-play
capability.
• None provides the breath of functionality that will be available with ITFit. For example
Symantec Altiris only focuses on hardware inventory, while Microsoft SCCM only works
seamlessly with other Microsoft platforms, and does not handle Macs or Linux systems.
In contrast, ITFit is capable of working with any type of network system, including Microsoft,
MACs, Linux, etc, and includes the KaseyaIT features: Agent Technology, Antivirus,
Antimalware, Audit and Inventory, Backup, Desktop Policy Management, Desktop Migration,
Directory Services, Endpoint Security, Info Center, Imaging and Deployment, IT Service Delivery
Kit, Mobile Device Management, Monitoring, Network Discovery, Network Monitor, Online
Backup, Patch Management, Policy Management, PSA Integration, Remote Access, Service
Billing, Service Desk, Software Deployment and Issue Ticketing.
ITFit would provide the customization necessary to the prepackaged software available in the
market, starting with KaseyaIT, which provides the best interface for task automation and
scripting and the widest range of features.
C. Market Segmentation(1) (2)
In October 2009, an IBISWorld Industry report broke down IT support, CRM, and Data
Processing Services products and services by percent of total market. It reported that business
process management held roughly a fourth of the market, with data management services and
application service provisioning each holding about 10-12 percent. IT technical support services,
IT computer network management services, collocation services, and website hosting services
collectively held about 28 to 30 percent. This report valued the entire industry as worth $101.9
billion in 2008.
18,939 establishments under NAICS group code 54151, Computer Systems Design and Related
Services, provided computer and network management services to other businesses, of which
only 6,167 provide customization and integration of other packaged software services in the
6
United States, with both markets representing $66.5 billion and $20.4 billion in revenues,
respectively.
D. Industry and market forecasts(6)
Web services influenced the systems integration industry in several ways. With the high cost of
integration, the role of system integrators changed from a technical one to more of a
consultative one, in which the integration of business processes was the primary focus.
However, some industry players argued that in the early 2000s Web services still were no
match for traditional enterprise application integration (EAI) systems adaptations and systems
integration was a top priority for many organizations in 2002 and 2003.
In 2002, some EAI vendors made the switch from their own systems to those based on Web
services, indicating that the two elements could coexist in harmony to some degree. ITAA cited
e-commerce as leading the overall industry in 2005, while application spending was projected
to grow as well once the economy recovered from the 2007 recession. The major market
drivers were in the government sector, banking and financial institutions, and manufacturing.
According to Computer Weekly, one of the most significant influences on just about every
aspect of the computing world was the rising use of cloud computing. According to a November
2010 article, "This year [2010] brought development environments in the cloud, a better
understanding of cloud economics, and an enthusiastic leap--marketing or otherwise--on the
cloud bandwagon for every major supplier." This trend is expected to continue into the 2010s,
as both large and small companies take advantage of the economic and environmental
advantages of cloud computing.
One component of the movement toward cloud computing was SaaS (software as a service).
According to Bob Moul in Computerworld, "SaaS technology is changing the way applications
are designed, developed and delivered." For example, as stated in the May 2010 article, "Cloud-
based integration platforms allow you to design, build, monitor, and manage integrations
centrally (from the cloud) yet deploy just the runtime to where the integration needs to occur."
The use of cloud computing is expected to continue to make many aspects of the computer
systems design industry more efficient, simpler, and cost-effective.
7
Description of Venture
ITFit provides a unique IT management system that fits each IT manager’s needs by building on
the most configurable IT system management software available on the market: KaseyaIT.
After a total of 35 years of experience in IT systems management held by Fabio and Pietto
Vasco, both managers were excited to find a comprehensive product like KaseyaIT. KaseyaIT
provides unparalleled automation of periodic IT tasks required to manage and maintain systems
and devices and has the most complete system for all phases of IT management including
security, systems inventory, desktop management, etc.
However, both noted that most companies did not fully utilize the product to its fullest
potential due to the scarcity of resources in customizing the software to management needs
and building manager’s product knowledge-base. In addition, the systems reporting function
provided information only, without any recommendations of necessary actions for problem
solving. At least 6%(7) of KaseyaIT purchasers eventually abandoned the product, while a larger
percentage used fewer than 5 of the 25 modules available(8), simply because of these
constraints.(8)
By partnering with KaseyaIT systems and providing the customization necessary, customers,
whether in-house IT managers, or third-party service providers, will have a true plug-and-play
management system. The software will be delivered as using the SaaS model; hence, the
software will be available to customers nation-wide.
ITFit will design the procedures, tasks and schedules and define the script or logic structure,
Kaseya, the developer of KaseyaIT and business affiliate, will provide the software platform,
while two contracted programmers will write the scripts and integrate them into the platform
after testing. The scripts or logic are necessary for the system to automatically resolve common
system issues, produce readable monitoring reports and provide standard recommendations to
resolve potential system issues before they arise. The systems integration design and logic
scripts will be copyrighted to maintain ITFit’s competitive advantage. In addition, KaseyaIT is
copyrighted software and Kaseya has several patents of the system’s functionality. As an
affiliate of Kaseya, ITFit enjoys the benefits of the competitive advantages such copyrights and
patents provide.
ITFit’s office equipment will consist of general office furniture and computer hardware,
software and peripherals i.e. mail and data server, laptops, printers, projectors, etc, which will
be housed in the company offices located in Sugarland, Texas. Since software delivery will be
web-based, ITFit will focus more on assuring the company’s outstanding web presence.
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KaseyaIT, which serves as the platform base for ITFit is the market leader of automated IT
systems management software, with a user-base of more than 10,000, including companies like
FedEx Office, the U.S. Air force, Cisco and more than 50 percent of the world’s largest IT service
providers.
Owners
Pietto Vasco has over 20 years of experience both as an IT administrator and director in various
internal IT departments, while Fabio Vasco(10) has over 15 years as a network administer in both
internal IT departments and external service providers. Both members of the team have a full
understanding of the needs of IT managers and have excellent references from clients and
managers testifying to their expertise and ability to provide unique solutions that saves them
both time and money.
Elkin Vasco has over 8 years experience as a national sales manager and has distinguished
himself with all his employers, which include MillerCoors, Altria and Petcurean Pet Nutrition.
Elkin is experienced with sale of consumer package goods, brand marketing, product
management, and team leadership. He has a proven track record of success developing and
implementing local sales and marketing programs at the key account, wholesale and retail level
and was recognized for strong presentation skills and problem solving capabilities with each of
his employers. Elkin is fully capable of leading the initial marketing initiative to launch ITFit both
online and in the Houston market.
Temi Vasco is a licensed CPA with the State of Texas, has over 10 years experience in
accounting and is currently pursuing her MBA with a concentration in Entrepreneurship. Temi
started her career a KPMG auditor, prior to moving to industry, where she has been
distinguished as a technical accounting expert and exemplary manager. Temi opened her own
CPA practice two years ago and aided other family members in starting their entrepreneurial
journeys. She especially understands the importance of a strong accounting framework that
allows company growth while controlling or measuring performance.
9
Production and Operations Plan
ITFit is a SaaS and does not need a physical plant or production machinery and equipment.
However, software updates are expected to be conducted semi-annually to upgrade the
software and provide additional improvements as necessary or desired.
As a Kaseya Partner, ITFit will purchase the KaseyaIT platform and integrate the script/logic and
report design modules into the software. Once the integration is successfully performed, the
repackaged software will be made available from the company’s server to customers via the
ITFit website. The ITFit logo will be clearly displayed in the repackaged product which will be
seamlessly integrated, to avoid any confusion as to which product they are using. As far as
customers are concerned, they are using ITFit, not KaseyaIT.
Along with the platform, monitoring software (referred to as “agents”) will be purchased from
Kaseya in increments of 1,000 each. Agent procedures are the backbone of automation for IT
management tasks. All communication to the server is initiated from agents, which collect
network and user data and through which an endless number of procedures and tasks run
automated and unattended once configured to customer specifications.
All procedures and tasks will be scripted by contracted programmers, namely Razi Syed &
Associates. For example, a simple network procedure would be scripting the agent to run a
utility every day to determine if a disk needs to be defragmented. Based on the results of that
procedure, a conditional script may be written to defrag the drive and log the results if the
results are positive and if negative, simply log the result that it is not needed. A more complex
example is checking a web site at specific intervals to make sure it is available to the outside
world and serving up the correct content.
Potential customers are required to begin their membership registration on the ITFit website.
All business information will be entered by the customer and later validated by their assigned
member representative, including the authorized customer credit card for automatically
drawing membership fees. Each customer can select the frequency of membership fee
payments (monthly, quarterly or annually).
As part of the customer member registration process, all necessary information on customer
networks will be provided using an online “Network Inventory Checklist.” This will include
server IP addresses, computer names, network infrastructure map and all other network
information needed to remotely deploy agents to each computer on the customer’s network. In
addition, customers will provide a list of tasks and procedures required for their network
environment.
10
Agent design, which assigns specific scripts to agent software is performed by the assigned
member representative, who then forwards it to the CITO (or designated employee(s)) for
reviewed. The review is performed to ensure that the agent procedures, tasks and schedules
are in accordance to customer specifications and needs as indicated by the online profile
completed as part of the membership registration within 24 hours.
A sales team, including the member representative and CEO, CCO and/or CITO, will visit each
customer site once their online registration is complete to confirm the information provided via
the internet and ensure extraneous information is obtained to obtain a clear and complete
picture of the customer IT system or network. This is absolutely necessary as the customization
must be tailored to each customer network design. The ITFit member representative will
ensure that the scripts provided by the contracted programmers meet customer specifications
and modify the Network Inventory information based on the results of the visual and network
tour and obtain customer assent to those changes. The CEO, CCO and/or CITO will provide the
personal touch to a virtual relationship.
Once confirmation of the network inventory is complete and customer approved, the member
representative will review the agent procedures and tasks to ensure that all customer
requirements are met, and authorize the system to deploy agents to each computer on the
customer network as detailed in the inventory checklist which immediately begin
communicating with the ITFit server. Should modifications be necessary based on the updated
network inventory checklist, the member representative is authorized to make those changes in
the ITFit system as considered necessary.
Once the agent deployment is complete, the member representative will flag the customer
account for payment processing, which will trigger an online invoice notification to the IT
Manger via e-mail. The e-mail notification will include a hyperlink where payment can be made
electronically. The IT manager at the customer site is also provided with administrative access
to ITFit which is segregated to provide access to the customer IT infrastructure only. Upon
logging in, the system will direct the customer to the invoice payment module to pay the fees
due. Access is automatically granted once online processing of the credit card transaction is
complete and the system will direct the IT Manager to the customer profile page, where they
can then begin to use the software.
The Chief Information Technology Officer (“CITO”) and Chief Customer Relations Officer (CCRO)
(or designated employee) will review and approve all registered member profiles, agent design
and network inventory checklist for congruency as another control once notified of new
membership by the ITFit workflow system.
11
Payment for membership fees are drawn automatically from customer credit cards on a
periodical basis as indicated by each customer profile. Non-payment or rejected credit card
transactions will result in automatic account lock-out until payments are made current.
12
Marketing Plan
Marketing objectives and goals
The marketing goal is to build brand awareness while attracting potential customers. Once
potential customers are identified, ITFit will provide free network assessments to identify
problem areas in customer IT management and demonstrate the usefulness ITFit management
system and the time and cost savings that the customer will enjoy by using the product.
Marketing strategy and Action Programs
The target market includes internal IT departments of businesses and IT management service
companies managing 100+ terminals (end-users or employees) that have been in existence for
more than 5 years and experience incomes greater than $1.5 million annually. These companies
are located within the United States and are either experiencing rapid expansion or
retrenchment of more than 10% in their respective industries, resulting in budget priorities for
lowering costs, integrating systems or processes and implementing security and privacy
measures.
ITFit will focus on those industries poised for growth and decline of at least 10%, which are
focused on cutting costs and immediate return on their return on investment in IT management
software. Based on IBISWorld forecasts(10)(11), these industries mainly reside in the following SIC
Industry codes: Transportation, Communication and Public Utilities (40), Manufacturing (20),
Wholesale Trade (50) and Services (70). These industries are impacted by one or more of four
drivers: Internet growth, environmental issues, cost cutting and evolving technology, due to
intense competition, industry stagnation or exponential growth.
According to the U.S. Census Bureau’s Business Dynamics Statistics (BDS) Data Tables for
2009(12), the number of Active Establishments with over 100 employees that have been in
existence for 5 or more years, for all SIC industries approximated 46.5 million firms. The
number of firms in the 40, 20, 50 and 70 SIC industries total 44.4 million firms.
ITFit will charge a $179 monthly service fee ($120 server and $59 agent fee) for each agent
deployed and a one-time registration and network mapping fee of $399 per customer. We
expect a modest number of at least 10,000 agents in the first year (based on attainment of at
least 100 customers).
Promotions for new members with annual membership include 7% off, if payments are made in
Quarterly installments (estimated at 20% of new clients) and 10% off if made once a year (5% of
new clients). For new members with month-to-month payments, promotion provides 5% off
with annual commitment (40% of new clients).
13
ITFit will use various platforms to market the product. Apart from online placement
advertisements on search engines including Google, Bing and Yahoo, the ITFit website will
include a blog section updated by both company staff and marketing consultants to provide
expert advice on KaseyaIT and ITFit functional issues in order to place itself as an expert in the
online community.
Initial contact with potential customers will take place through cold-calls, website and mailing
circulars where ITFit will offer free network assessments. The ITFit website and mailing circulars
will request potential customers to register on the company website or call a toll free number
to schedule their free network assessment. ITFit will mail an introductory circular in addition to
the free assessment offer to companies that meet the target market profile within Houston and
outskirts, mainly Harris and Fort Bend counties. In addition, cold-calls will be made to potential
customer’s offering the free network assessment to upper or IT management. ITFit will use
www.goleads.com as the sales leads and mailing list provider. The telephone mailing and
website campaign will be spearheaded by Elkin Vasco, Co owner and Sales Manager.
With these free network assessments, ITFit will provide potential customers an overview of
their network performance and areas for improvement by comparing their network to industry
standards and best practices. The assessment overview will be provided in a face to face
presentation with the potential client, with a detailed report provided to them at the end of the
presentation. For potential clients outside the state of Texas, the presentation may occur via a
live web conference at the convenience of each company, using WebEx, however a face-to-face
meeting is generally required. This will be ITFit’s opportunity to gain an understanding of the
potential customer’s needs and present ITFit as their ultimate IT management solution.
ITFit will target preparing for and presenting at least 3 assessments each week and signing at
least 4 customers each month in the first three months of business, 6 each month in the fourth
through the seventh month and 8 each month for the remaining 5 months.
Marketing Budget
Year 1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Business Cards 60 40 100
Brochures 405 405 405 405 1,620
Product Folders 1,137 1,137 1,137 1,137 4,548
Kaseya Annual User Conference 2,700 2,700
Tech Trade Shows 2,300 2,300 2,300 2,300 9,200
Website Hosting 10 10 10 10 10 10 10 10 10 10 10 10 120
Free Assessments & Demonstrations 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Goleads Mailing List 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 12,960
Mailing Campaign (Print & Mail) 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 142,800
Website and Online Marketing 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000
Meals, travel and entertainment 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000
Total Marketing Expenses 21,050 20,990 24,832 23,730 20,990 24,832 20,990 20,990 24,832 20,990 20,990 24,832 270,048
Organizational Plan
A. Form of ownership
The company will be incorporated as a corporation, with initial 1000 shares shared equally
between the four co-partners, and additional shares issued based on individual cash or asset
investments. Profits sharing will be done based on the percentage of share ownership.
B. Identification of partners or principal shareholders
The principal shareholders of ITFit are Fabio Vasco, Pietto Vasco, Elkin Vasco and Temi Vasco,
who are also officers of the company.
C. Authority of principals
Each officer has the authority to make decisions and enter into contracts binding on the
Company contingent on the agreement of the other members. Major business decisions are
made during monthly board of director meetings which require the presence of all members. A
majority represents 51% of shareholder/director vote.
D. Management team background
Refer to Venture Description for organization shareholders’ backgrounds.
E. Roles and responsibilities of shareholders of organization
Pietto Vasco, Chief Executive Officer, is responsible for setting ITFit strategy and vision, building
culture that attracts and retains the very best employees, motivating employees and team
building, fundraising, financing road shows, setting budgets and forming valuable partnerships.
Pietto serves as the prime communicator, decision maker, leader, and manager for ITFit. The
communicator role involves the press, lenders, customers and other external entities, as well as
the organization's management and employees; the decision-making role involves high-level
decisions about policy and strategy. As a leader, Pietto advises the board of directors, motivates
employees, spearheads sales initiative, shares the company mission, vision and values and
provides direction within the organization. Pietto presides over the organization's day-to-day,
month-to-month, and year-to-year operations. Pietto reports directly to the Board of Directors.
Fabio Vasco, Chief Information Technology Officer (CITO), is responsible for the information
technology and computer systems that support ITFit goals. He is focused on the technology
integral to the ITFit management system used by customers, the internal technology needs for
running the company and maintaining the KaseyaIT software platform for any new applications.
Accordingly, Fabio is integrally involved with formulating intellectual property (IP) strategies
(e.g. copyrights, patents, trade secrets, license contracts), and exploiting proprietary
16
technologies by working collaboratively with legal counsel to incorporate those considerations
into strategic planning and inter-company negotiations. Fabio is also poised to solve internal
organizational problems through acquiring and adapting existing technologies and overseeing
development of new scripts and procedures that enhance ITFit management systems or resolve
customer interface issues with the software. Fabio is responsible for managing the
implementation of useful technology to increase information accessibility and integrated
systems management internally, while developing new technologies to expand ITFit
technological capabilities. He is responsible for processes and practices supporting the flow of
information and the Company’s technology infrastructure. Fabio reports to the chief executive
officer, and is a member of the board of directors.
Elkin Vasco is the Chief Customer Officer and is responsible for the total relationship with ITFit’s
customers and providing a single vision across all methods of customer contact. He provides the
comprehensive and authoritative view of the customer and creates corporate and customer
strategy at the highest levels of the company to maximize customer acquisition, retention, and
profitability. Elkin influences all corporate activities of customer relations in
sales, marketing, user website interface, finance (billing), fulfillment and post-sale support.
Elkin reports to the chief executive officer, and is a member of the board of directors.
Temi Vasco, the Chief Financial Officer, primarily responsible for managing the financial risks of
the corporation. Temi’s primary duties include controllership, treasury and economic strategy
and forecasting. Controllership role includes the accurate and timely presentation of
historical financial information that is useful for decision making. Treasury function includes the
responsibility for ITFit’s financial condition, which involve cash investment decisions, taking into
consideration risk and liquidity. In addition, Temi oversees the capital structure of the company,
determining the best mix of debt, equity and internal financing. Temi is ultimately responsible
for financial planning and record-keeping, as well as financial and management reporting. Elkin
reports to the chief executive officer, and is a member of the board of directors.
The Board of Directors includes 3 other members with entrepreneurial experience in the IT
industry. ITFit is currently reviewing several candidates.
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Assessment of Risk
As a new company to the IT management systems industry, ITFit does not have the brand name
recognition that its competitors enjoy. To combat this issue, ITFit will continue to advertise and
promote the ITFit brand to improve brand awareness and cultivate a reputation of excellence
and exemplary customer service.
ITFit is dependent on the partnership with Kaseya and its use of the KaseyaIT system. Should
Kaseya go bankrupt or abandon KaseyaIT in favor of another platform, stop supporting the
KaseyaIT software, the ITFit platform will lack upgrades, maintenance and probably become
obsolete. Although Kaseya has given every indication that the likelihood of such a decision is
remote, ITFit would purchase rights to the product at such a time and expand its current
business focus to include software development, instead of script-ware integration. In addition,
ITFit will build scripts for other software platforms, like N-able, LabTech, Altiris, etc., to reduce
its dependency on KaseyaIT and even go as far as to repackage those software as allowed by
those third-parties.
Kaseya is currently in the business of providing a software platform. However, Kaseya or other
platform providers could choose to produce scripted modules or customization services.
However, since Kaseya and competitors provide software platforms primarily to MSPs who
customize their system for their client’s use, entering the customization services market would
result in competing directly with their customers, which would cannibalize their sales revenue.
Therefore, it is highly unlikely that they would make this choice.
There are new technologies marketed everyday to help IT Managers better manage their
network, while improving system performance. ITFit will copyright the scripts and modules
written for all platforms to prevent unauthorized duplication or proliferation of ITFit
management systems. The reporting system in ITFit provides historical information, customer
usage preferences (including module favorites) and copyrighted scripts, which are automatically
logged and updated in the system. All these factors present switching costs to customers, since
moving to a new IT management system means starting anew.
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Financial Plan
Sources and Uses of Funds
Sources of Funds:
Personal Funds 60,000
SBA 7(a) loan 119,953
Total Sources 179,953
Uses of Funds:
Programming/Scripts 16,000
Kaseya Solutions 51,000
Website Development 5,000
Computers/Laptops 4,400
Portable Projector 1,198
Portable Printer 560
iPads 998
iPhones 796
Startup Expenses 50,001
Working Capital 50,000
Total Uses 179,953
Pro forma income statements
Year 1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Monthly Service Fee (1) $71,600 $143,200 $214,800 $322,200 $429,600 $537,000 $644,400 $787,600 $930,800 $1,074,000 $1,217,200 $1,360,400 $7,732,800
Registration Fees (1) 1,596 1,596 1,596 2,394 2,394 2,394 2,394 3,192 3,192 3,192 3,192 3,192 30,324
Discount/Promotions (1) (2,792) (2,792) (2,792) (4,189) (4,189) (4,189) (4,189) (5,585) (5,585) (5,585) (5,585) (5,585) (53,056)
Net Sales 70,404 142,004 213,604 320,405 427,805 535,205 642,605 785,207 928,407 1,071,607 1,214,807 1,358,007 7,710,068
Cost of Sales (2) 20,400 20,400 20,400 30,600 30,600 30,600 30,600 40,800 40,800 40,800 40,800 40,800 387,600
Gross Profit 50,004 121,604 193,204 289,805 397,205 504,605 612,005 744,407 887,607 1,030,807 1,174,007 1,317,207 7,322,468
Operating Expenses
Officers Compensation (3) 36,538 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 311,538
Salary-Wages (4) 18,750 18,750 18,750 29,583 29,583 29,583 29,583 29,583 29,583 29,583 29,583 29,583 322,500
Employment Taxes (5) 4,230 3,347 3,347 4,176 4,176 4,176 4,176 4,176 4,176 4,176 4,176 4,176 48,504
Consulting (6) 13,000 13,000 13,000 13,000 13,000 25,000 7,000 3,000 3,000 3,000 3,000 3,000 112,000
Rent (7) 2,135 2,135 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 57,645
Utilities & Phones 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Other-Live Receptionist 249 249 249 249 249 249 249 249 249 249 249 249 2,988
E-mail 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Insurance 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Marketing/Advertising (8) 21,050 20,990 24,832 23,730 20,990 24,832 20,990 20,990 24,832 20,990 20,990 24,832 270,048
Kaseya Cloud Server Hosting 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 29,280
KaseyaIT - Maintenance 10,000 10,000
Professional Membership 675 675
Interest on loan (9) 550 542 534 526 518 510 501 493 485 477 468 460 6,062
Depreciation 829 829 829 829 829 829 829 829 829 829 829 829 9,950
Office Supplies 500 500 500 500 2,000
Net Profit $(50,717) $33,372 $97,435 $183,985 $294,133 $385,199 $514,949 $651,359 $790,226 $937,776 $1,080,984 $1,209,176 $6,127,878
20
Notes for Year 1:
(1) See Estimated Sales details for assumptions
(2) Installed Agents on end-user computers (at least 100 per target customer)
(3) Compensation for four officers includes pre-start-up salaries
(4) Initial Salaries-Wages for Salesperson, Helpdesk staff, Client representative and 1 bookkeeper, with an additional Helpdesk staff and Client Manager added within 3 months.
(5) Employment taxes as of 2012 (Social Security and Medicare) from IRS website; http://www.irs.gov/pub/newsroom/notice_1036.pdf
(6) Consulting fees for debugging software after testing phase to immediately resolve software any issues and ad hoc scripting requests
In addition, scripting fees for release of new software version within 6 months of business opening and retainer for program improvements in last six months of the year.
(7) Rent expense due to lease of additional 2 offices within contract with virtual office
(8) Assumes large marketing event in at least 1 trade show per quarter, in addition to other smaller events
(9) 5 year loan with Interest on loan at higher of Libor (1.0521%) or prime rate (3.25%) + 2.25%, whichever is higher. Rates as of 03/28/2012.
http://www.wsjprimerate.us/libor/index.html; http://archive.sba.gov/financialassistance/borrowers/guaranteed/7alp/FINANCIAL_GLP_7A_TERMS.html
21
Pro Formal Income Statement (continued)
Year 2 Year 3
Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual
Monthly Service Fees (1) $1,754,200 $2,255,400 $2,738,700 $3,222,000 $9,970,300 $3,705,300 $4,188,600 $4,671,900 $5,155,200 $17,721,000
Registration Fee (1) 8,778 11,172 10,773 10,773 41,496 10,773 10,773 10,773 10,773 43,092
Discount/Promotions (1) 15,358 19,547 18,849 18,849 72,602 18,849 18,849 18,849 18,849 75,395
Net Sales 1,747,620 2,247,025 2,730,624 3,213,924 9,939,194 3,697,224 4,180,524 4,663,824 5,147,124 17,688,697
Cost of Sales (2) 112,200 142,800 137,700 137,700 530,400 137,700 137,700 137,700 137,700 550,800
Gross Profit 1,635,420 2,104,225 2,592,924 3,076,224 9,408,794 3,559,524 4,042,824 4,526,124 5,009,424 17,137,897
Operating Expenses
Officers Compensation (3) 75,000 75,000 75,000 75,000 300,000 75,000 75,000 75,000 75,000 300,000
Salary-Wages (4) 137,500 137,500 137,500 137,500 550,000 137,500 137,500 137,500 137,500 550,000
Employment Taxes (5) 16,256 16,256 16,256 16,256 65,025 16,256 16,256 16,256 16,256 65,025
Consulting (6) 39,000 51,000 13,000 9,000 112,000 39,000 51,000 13,000 9,000 112,000
Rent (7) 21,000 21,000 21,000 21,000 84,000 21,000 21,000 21,000 21,000 84,000
Utilities & Phones 3,600 3,600 3,600 3,600 14,400 3,600 3,600 3,600 3,600 14,400
E-mail 1,050 1,050 1,050 1,050 4,200 1,050 1,050 1,050 1,050 4,200
Insurance 750 750 750 750 3,000 750 750 750 750 3,000
Marketing/Advertising (8)
Business Cards 60 140 200 140 140
Brochures 405 405 405 405 1,620 405 405 405 405 1,620
Product Folders 1,137 1137 1,137 1,137 4,548 1,137 1137 1,137 1,137 4,548
Kaseya Annual User Conference 2700 2,700 2781 2,781
Tech Trade Shows 2,300 2300 2,300 2300 9,200 2,300 2300 2,300 2300 9,200
Website Hosting 30 30 30 30 120 30 30 30 30 120
Free Assessments & Demonstrations 6,000 6,000 6,000 6,000 24,000 6,000 6,000 6,000 6,000 24,000
Goleads Mailing List 3,240 3,240 3,240 3,240 12,960 3,240 3,240 3,240 3,240 12,960
Mailing Campaign (Print & Mail) 35,700 35,700 35,700 35,700 142,800 35,700 35,700 35,700 35,700 142,800
Website and Online Marketing 4,500 4,500 4,500 4,500 18,000 4,500 4,500 4,500 4,500 18,000
Meals, travel and entertainment 13,500 13,500 13,500 13,500 54,000 13,500 13,500 13,500 13,500 54,000
Kaseya Cloud Server Hosting 7,540 7,540 7,540 7,540 30,158 7,766 7,766 7,766 7,766 31,063
22
Year 2 Year 3
Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual
KaseyaIT - Maintenance 10,300 10,300 10,609 10,609
Professional Membership 675 675 675 675
Interest on loan (9) 1,329 1,253 1,175 1,096 4,854 1,017 936 854 770 3,576
Depreciation 3,175 3,494 3,494 3,494 13,656 3,929 3,494 3,494 3,494 14,410
Office Supplies 625 625 625 625 2,500 625 625 625 625 2,500
Net Profit $1,261,723 $1,715,646 $2,245,123 $2,721,386 $7,943,878 $3,185,220 $3,654,255 $4,178,418 $4,654,377 $15,672,270
Notes for Year 2 & Year 3:
(1) See Estimated Sales details for assumptions
(2) Installed Agents on end-user computers (at least 100 per target customer)
(3) Compensation for four officers includes pre-start-up salaries
(4) Salaries-Wages for 1 Salesperson, 2 Helpdesk Staff, 2 Client Representatives and a bookkeeper from year 1, including an additional Helpdesk staff
and Client Representative, and a full-time office administrator/receptionist hired in Year 2
(5) Employment taxes as of 2012 (Social Security and Medicare) from IRS website; http://www.irs.gov/pub/newsroom/notice_1036.pdf
(6) Consulting fees for debugging software after testing phase to immediately resolve software any issues and ad hoc scripting requests
In addition, scripting fees for release of new software version midyear and retainer for program improvements in last six months of the year.
(7) Rent expense due to move from virtual offices to a permanent office location in Sugar Land TX. Estimate 5,000SF at $16.80/SF
http://www.loopnet.com/xNet/MainSite/Listing/Search/SearchResults.aspx#/All-Types/For-Lease/c!ARYC$BAQcBClN1Z2FyIExhbmQ
(8) Assumes large marketing event in at least 1 trade show per quarter, in addition to other smaller events
(9) Year 2 and Year 3 of 5 year loan with 5.5% interest rate. Assumes Note is repaid December of Year 3 with 10% penalty on interest for early loan payoff
23
Pro forma Cash flow Statements
Year 1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Cash Receipts
Sales (1) $70,404 $142,004 $213,604 $320,405 $427,805 $535,205 $642,605 $785,207 $928,407 $1,071,607 $1,214,807 $1,358,007 $7,710,068
Cash Disbursements
Cost of inventory (2) 51,000 51,000 51,000 51,000 51,000 51,000 51,000 357,000
Officers Compensation 36,538 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 311,538
Salary-Wages 13,333 13,333 13,333 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167 257,500
Employment Taxes 3,815 2,933 2,933 3,761 3,761 3,761 3,761 3,761 3,761 3,761 3,761 3,761 43,531
Consulting (3) 39,000 26,000 35,000 12,000 112,000
Rent 2,135 2,135 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 57,645
Utilities 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Other-Live Receptionist 249 249 249 249 249 249 249 249 249 249 249 249 2,988
E-mail 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Insurance 1,500 1,500
Marketing/Advertising
Business Cards 300 200 500
Brochures 405 405 405 405 1,620
Product Folders 1,137 1,137 1,137 1,137 4,548
Kaseya Annual User Conference 2,700 2,700
Tech Trade Shows 2,300 2,300 2,300 2,300 9,200
Website Hosting 10 10 10 10 10 10 10 10 10 10 10 10 120
Free Assessments &
Demonstrations 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Goleads Mailing List 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 12,960
Mailing Campaign (Print & Mail) 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 142,800
Website and Online Marketing 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000
Meals, travel and entertainment 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000
Kaseya Cloud Server Hosting 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 29,280
24
Year 1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
KaseyaIT – Maintenance 10,000 10,000
Professional Membership 550 550
Loan Payment (4) 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 27,495
Purchase of Fixed Asset (7) 8,312 4,156 12,468
Programming/Scripts (8) 42,000 42,000 42,000 126,000
Office Supplies 500 500 500 500 2,000
Net Cash (20,701) 71,933 45,988 228,414 291,870 419,928 505,170 700,272 753,130 893,672 1,036,872 1,153,180 6,079,725
Beginning Balance (5) 50,000 29,299 101,232 147,220 375,634 667,503 1,087,431 1,592,601 2,292,872 1,946,002 1,739,674 1,676,545 50,000
Less Owner Withdrawal (1,100,000) (1,100,000) (1,100,000) (1,100,000) (4,400,000)
Ending Cash Balance (6) $29,299 $101,232 $147,220 $375,634 $667,503 $1,087,431 $1,592,601 $2,292,872 $1,946,002 $1,739,674 $1,676,545 $1,729,725 $1,729,725
Notes for Year 1:
(1) The cash portion of sales is counted when received. Business will automatically draft bank accounts or credit cards for monthly membership payment once a month.
(2) Purchase of 1,000 KaseyaIT agent software using JUST IN TIME system triggered when inventory dips below than 201 agents.
(3) Programming consultants paid based on achievement of milestone.
(4) The entire loan payment is included on the cash flow statement. Only the interest is included in the income statement.
(5) The $50,000 beginning balance is the working capital from the startup statements.
(6) The ending cash balance of one month becomes the beginning cash balance of the next.
(7) Laptop/Computer, portable printer, iPhone and iPad for new employees hired
(8) Investment in programming scripts for other platforms: N-able, LabTech and others (includes initial scripting to testing, implementation and copyright filing.
25
Pro forma Cash flow Statements (Continued)
Year 2 Year 3
Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual
Cash Receipts
Sales (1) 1,747,620 2,247,025 2,730,624 3,213,924 9,939,194 3,697,224 4,180,524 4,663,824 5,147,124 17,688,697
Total Cash Receipts 1,747,620 2,247,025 2,730,624 3,213,924 9,939,194 3,697,224 4,180,524 4,663,824 5,147,124 17,688,697
Cash Disbursements
Cost of inventory (2) 153,000 102,000 153,000 153,000 561,000 102,000 153,000 153,000 153,000 561,000
Officers Compensation 75,000 75,000 75,000 75,000 300,000 75,000 75,000 75,000 75,000 300,000
Salary-Wages 121,250 121,250 121,250 121,250 485,000 121,250 121,250 121,250 121,250 485,000
Employment Taxes 15,013 15,013 15,013 15,013 60,053 15,013 15,013 15,013 15,013 60,053
Consulting (3) 39,000 51,000 13,000 9,000 112,000 39,000 51,000 13,000 9,000 112,000
Rent 21,000 21,000 21,000 21,000 84,000 21,000 21,000 21,000 21,000 84,000
Utilities 3,600 3,600 3,600 3,600 14,400 3,600 3,600 3,600 3,600 14,400
Other-Live Receptionist 747 747 747 747 2,988 747 747 747 747 2,988
E-mail 1,050 1,050 1,050 1,050 4,200 1,050 1,050 1,050 1,050 4,200
Insurance 750 750 750 750 3,000 750 750 750 750 3,000
Marketing/Advertising
Business Cards 60 140 200 140 140
Brochures 405 405 405 405 1,620 405 405 405 405 1,620
Product Folders 1,137 1,137 1,137 1,137 4,548 1,137 1137 1,137 1,137 4,548
Kaseya Annual User Conference 2,700 2,700 2,700 2,700
Tech Trade Shows 2,300 2300 2,300 2300 9,200 2,300 2300 2,300 2300 9,200
Website Hosting 30 30 30 30 120 30 30 30 30 120
Free Assessments & Demonstrations 6,000 6,000 6,000 6,000 24,000 6,000 6,000 6,000 6,000 24,000
Goleads Mailing List 3,240 3,240 3,240 3,240 12,960 3,240 3,240 3,240 3,240 12,960
Mailing Campaign (Print & Mail) 35,700 35,700 35,700 35,700 142,800 35,700 35,700 35,700 35,700 142,800
Website and Online Marketing 4,500 4,500 4,500 4,500 18,000 4,500 4,500 4,500 4,500 18,000
Meals, travel and entertainment 13,500 13,500 13,500 13,500 54,000 13,500 13,500 13,500 13,500 54,000
Kaseya Cloud Server Hosting 7,540 7,540 7,540 7,540 30,158 7,766 7,766 7,766 7,766 31,063
26
Year 2 Year 3
Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual
Kaseya Solutions - Maintenance 10,300 10,300 10,609 10,609
Professional Membership 675 675 675 675
Loan Payment (4) 4,032 4,032 4,032 4,032 16,128 4,032 4,032 4,032 71,234 55,062
Purchase of Fixed Asset (7) 125,000 125,000 125,000 125,000 500,000 125,000 125,000 125,000 125,000 500,000
Programming/Scripts (8) 7,353 3,377 10,730 4,676 28,952 33,628
Office Supplies 625 625 625 625 2,500 625 625 625 625 2,500
Net Cash 1,105,788 1,645,529 2,122,206 2,598,391 7,471,914 3,108,903 3,531,098 4,055,179 4,434,901 15,130,082
Beginning Balance (5) 1,729,725 1,235,513 1,281,042 1,803,248 1,729,725 2,801,638 3,910,542 5,441,640 7,496,819 2,801,638
Less Owner Withdrawal (1,600,000) (1,600,000) (1,600,000) (1,600,000) (6,400,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (8,000,000)
Ending Cash Balance (6) 1,235,513 1,281,042 1,803,248 2,801,638 2,801,638 3,910,542 5,441,640 7,496,819 9,931,721 9,931,721
Notes for Year 2 and Year 3:
(1) The cash portion of sales is counted when received. Business will automatically draft bank accounts or credit cards
(2) Purchase of 1,000 KaseyaIT agent software using JUST IN TIME system triggered when inventory dips below than 201 agents.
(3) Programming consultants paid based on achievement of milestone.
(4) The entire loan payment is included on the cash flow statement. Only the interest is included in the income statement.
Assumes that loan is repaid in last month of Year 3
(5) The beginning balance is the ending balance from prior year.
(6) The ending cash balance of one month becomes the beginning cash balance of the next.
(7) Laptop/Computer, portable printer, iPhone and iPad for new employees hired
(8) Investment in programming scripts for other platforms: N-able, LabTech and others (includes initial scripting to testing, implementation and copyright filing.
Pro forma balance sheet
Year 0 Year 1 Year 2 Year 3
Assets
Current Assets
Cash (1) 61,538 1,729,725 (a) 2,801,638 (a) 9,931,721 (a)(h)
Inventory (2) 51,000 20,400 51,000 61,200
Prepaid expenses (3) 2,950 2,950 2,950 2,950
Office & Marketing supplies (4) 4,442 4,442 (b) 4,442 (b) 4,442 (b)
Accounts receivable - 667,077 (c) 857,141 (c) 1,561,262 (c)
Total current Assets 119,930 2,424,593 3,717,171 11,561,575
Fixed Assets (4)
iPads 998 499 811 250
iPhones 796 398 647 299
Computers/Laptops 4,400 2,933 6,050 4,583
Portable Projector 1,198 799 799 200
Portable Printer 560 373 770 490
Website Development 5,000 3,333 1,667 -
Programming/Scripts 16,000 136,667 589,753 876,580 (g)
Total fixed assets 28,952 145,002 (d) 600,496 (d) 882,401 (d)
Total assets 148,882 2,569,596 4,317,668 12,443,976
Liabilities
Current Liabilities
Short term loans - - - -
Total current liabilities - - - -
Long-term Liabilities
SBA 7(a) loan (5) 119,953 98,521 (e) 75,879 (e) - (f)
Other long-term loans - - - -
Total long-term liabilities 119,953 98,521 75,879 -
Owner's equity
Owner's equity 28,929 2,471,075 4,241,788 12,443,976
Total owner's equity 28,929 2,471,075 4,241,788 12,443,976
Liabilities & Owner's equity 148,882 2,569,596 4,317,668 12,443,976
General Notes
Year 0 is the balance sheet for December 31, 2012
Year 1 is the balance sheet for December 31, 2013
Year 2 is the balance sheet for December 31, 2014
Year 3 is the balance sheet for December 31, 2015
28
Notes for year 0:
(1) Beginning cash balance from Cash reserves on startup statements.
(2) 1,000 Kaseya Agents from startup statements
(3) Insurance and Kaseya Conference enrollment from startup statements
(4) From capital equipment list
(5) From sources and uses statement
Notes for year 1 to year 3:
(a) From ending cash balance December - see cash flow statement
(b) Office and Marketing Supplies are used during the year and replenished in the last month of each year
(c) Estimated from Bizstats.com data - balance sheet for Corporation
(d) Values have been reduced by a year of depreciation and increased by new assets purchased - see capital equipment list
(e) Remaining loan balance at the end of the first year from the amortization schedule
(f) Assumes loan is paid off in the last month of Year 3
(g)Increased by new scripts developed for expansion into scripting for other platforms. Cash build up by Year 3 in readiness
for Year 4 investment in bundling scripts into software for sale to non-members or licensing to 3rd parties.
29
Break-even analysis
Monthly Service Fee $179.00 Per agent software deployed
Customer Registration Fee 3.99 $399/average 100 agents per customer
Price per Agent 182.99
Cost per KaseyaIT Agent 51.00
Contribution Margin per agent $131.99
Start-up Expenses $129,953
Fixed/Committed Costs 1,194,591
Total Costs 1,324,544
Break even units 10,035 Agents
Breakeven customers 101 Customers
Estimated number of customers necessary to breakeven will be achieved in the second quarter
of the Year 2.
30
Principal Shareholders’ Resumes
Elkin Vasco
Sales & Marketing Professional
Houston, Texas Area
Summary
Versatile Sales and Management Professional with broad experience in Consumer Package Goods, Brand
Marketing, Product Management, and Team Leadership. Proven track record of success developing and
implementing local sales and marketing programs at the key account, wholesale and retail level. Recognized for
strong presentation skills and problem solving capabilities. Excellent analytical, computer, motivational, and
budget management skills. Attentive to detail. Highly motivated, enthusiastic, focused individual.
Experience
National Sales Manager - Western USA, Petcurean Pet Nutrition
March 2012 – Present (3 months) Houston, Texas Area
Canadian Professional Sales Association
Key Account & Territory Sales Manager, Altria
Public Company; 10,001+ employees; MO; Consumer Goods industry
March 2009 – March 2012 (3 years 1 month) Houston, Texas Area
On-Premise Manager, MillerCoors
Privately Held; 5001-10,000 employees; Food & Beverages industry
June 2008 – November 2008 (6 months) Houston, Texas Area
On-Premise Manager, Molson Coors
Public Company; 1001-5000 employees; Food & Beverages industry
January 2007 – June 2008 (1 year 6 months) Houston, Texas Area
2007 South Region On-Premise Manager of the Year
2007 On-Premise Manager of the Year 2007 - MillerCoors LLC
On-Premise Executive, Molson Coors
Public Company; 1001-5000 employees; Food & Beverages industry
May 2006 – December 2006 (8 months) Houston, Texas Area
Retail Sales Representative, Coors Brewing Company
Privately Held; 5001-10,000 employees; Food & Beverages industry
January 2004 – May 2006 (2 years 5 months) Chicago, Illinois Area & Houston, Texas Area
Education
Houston Baptist University - College of Business and Economics
MBA, Management, 2012 (expected)
University of Houston, C.T. Bauer College of Business
BBA, Marketing, 2003
Activities and Societies: Program for Excellence in Selling
Groups and Associations
Consumer Goods & Retail Professionals, Member; CPG Sales and Marketing Group, Member; HBU MBA
Association, Member; MillerCoors Employees and Alumni, Member; Phillip Morris/Altria – Worldwide Alumni
Network, Member; Program for Excellence in Selling Alumni, Member.
31
Pietto Vasco
IT Professional
Greater Denver Area
Skills & Expertise
Troubleshooting, IT Management, Security, System Administration, Budget, Networking, Network Administration,
Active Directory, Integration, Computer Hardware, Network Security, IT Operations
Experience
Managing Partner, AccountMetrics, LLC
September 2005 – Present (6 years 9 months) Golden, CO
IT Manager, Colorado Grande Enterprises
September 2005 – February 2008 (2 years 6 months)
LAN Administrator, Manpower Technical Services
July 2002 – September 2005 (3 years 3 months)
Technical Analyst, Oracle
Public Company; 10,001+ employees; ORCL; Information Technology and Services industry
May 1998 – July 2002 (4 years 3 months)
Education
Colorado Technical University, 2011
MS, Enterprise Information Systems
Colorado Technical University
BS and ISM, 2008
Groups and Associations:
Casino IT, Casino Professionals, Colorado IT Contractors (Information Technology), Colorado Technical University,
MSPmentor, Managed Service Providers Network, Online Adjunct Rolodex, Online Faculty - Adjunct, Full-Time,
University Administrators, and Instructional Designers.
32
Fabio Vasco
IT Consultant
Summary
Network administration with more than 10 years of increasing experience in technical leadership, computer
technology, project management and problem resolution. Has expertise in networking concepts, TCP/IP protocol,
and network security; knowledge of firewalls setup and administration, VPN, Active Directory and core Windows
technology and concepts. Proven diagnostic abilities with attention to detail, and ability to work effectively in fast
paced environment. Demonstrated abilities to set strategic direction while obtaining superiors results.
Above all, I am great at thinking on my feet, solving technical problems deemed a challenge to others, and applying
my strong work ethic to help increase my employer’s competitive edge in the marketplace.
Experience
IT Consultant, ITR Technologies
February 2008 – Present (4 years 4 months) Sugar Land, TX
Advising businesses on the most cost effective approach to managing their computer and network infrastructure
Design, installation and ongoing management of a client's Windows network to ensure a stable and robust
platform for their business.
Campus Support Technician, Alief Independent School District
Educational Institution; 5001-10,000 employees; Primary/Secondary Education industry
2006 – 2008 (2 years) Houston, TX
Devoted expertise in managing the high school campuses network and windows infrastructure.
Assisted with implementing technological systems to ensure Texas State requirements were satisfied.
Storage/Backup Administrator, National Oilwell Varco
Public Company; 10,001+ employees; NOV; Oil & Energy industry
2004 – 2006 (2 years) Houston, Texas Area
Directed and implemented solutions for archiving and restoring company data for a 200+ server environment in 3
locations as well as provide comprehensive third level support for desktop and server related issues for internal
and remote locations.
Network Administrator, AcademicPlanet
2001 – 2004 (3 years) Katy, TX
Ensured network reliability and responsiveness to over 30,000+ customers by identifying and resolving various
server, network, remote access, and routing problems.
Network Administrator, PanCanadian Energy Corp
1998 – 2001 (3 years) Houston, TX
Education
University of Phoenix – Houston
MIS and E-Business, 2003
33
Temi Vasco, CPA
Accounting Manager
Summary
US GAAP focused professional with consolidation and financial reporting experienced, focused on continuous
improvement.
Managed staff of up to 5 with optimal results though cross training and emphasis on clear communication, career
development and succession planning.
Skills and Expertise
Financial Accounting, SEC Financial Reporting Analysis, Defined Benefit Plans Financial Statement Preparation,
Internal Reporting and Controls, Process Documentation and Improvements
Experience
General Accounting Supervisor, GenOn Energy Inc
December 2010 – Present (1 year 6 months) Houston, TX
Primarily responsible for supervising a staff of 5 employees to ensure a timely and accurate close process, including
preparing schedules and information for internal and external reporting and auditors.
Senior Accountant I – Debt, LyondellBasell
July 2008 – June 2009 (1 year)
Account for over $25 Billion of third party debt on a monthly basis and analyze various debt-related accounting
transactions and any foreign currency impact. Interpret accounting literature related to debt accounting assist in
review of quarterly debt covenant review.
Accounting Manager, Telvent North America
April 2008 – June 2008 (3 months)
Responsible for all general accounting close process and subsidiary reporting in accordance to US GAAP and IFRS.
Reduced financial reporting time from 4 days to 1 day through process automation.
Principal Financial Reporting Analyst – SEC, Transocean
September 2005 – March 2008 (2 years 7 months)
Provide accurate, concise and timely financial information in an understandable format while ensuring
consistency with other financial information released to the public
Senior Associate Auditor, KPMG LLP
February 2002 – September 2005 (3 years 8 months)
Execute financial statement audit engagements, including SEC filings of Form 10-K, Form 11-K and DOL filings of
Form 5500, and evaluate internal controls and compliance with federal laws and regulations, including Sarbanes-
Oxley, US GAAP and other reporting standards, including the DOL and ERISA for benefit plan audits. Managing
engagement staff within time and budget constraints and research accounting and audit issues and communicate
to audit team and clients
Education
University of Houston
MBA, Entrepreneurship, 2013 (expected)
University of Houston
BBA, Accounting and Finance, 2001
34
Appendix
A. Glossary
Agent – system monitoring software that generally gather system performance information,
e.g., but can also be scripted to perform specific tasks and procedures. Agents are the means by
which management systems can automatically or remotely perform management functions.
Agents are purchased from Kaseya as needed and installed remotely to customer computers
linked to their network.
SaaS – Software as a Service in which software and associated data are centrally hosted on
the cloud and accessed by users using a server via a web browser.
Script/Scripting – system specific commends that are linked to perform automated procedures,
tasks and schedules. Scripting is the act of coding commands.
35
B. Market research data
(1) Gale Group. (2011). Computer Integrated Systems Design. Encyclopedia of American Industries,
Online Edition. Reproduced in Business and Company Resource Center. Farmington Hills,
Michigan: Gale Group. Retrieved from
http://galenet.galegroup.com.ruby2.uhv.edu/servlet/BCRC. Document Number: I2501400867
(2) U.S. Census Bureau. (2007). EC0754SLLS1 Professional, Scientific, and Technical Services: Subject
Series - Product Lines: Product Lines Statistics by Kind of Business for the United States and
States: NAICS 54151, United States. Retrieved from
http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml
(3) Panettieri, Joe. (2011, February 1). ConnectWise-LabTech War Against Kaseya Intensifies.
MSPMentor. Retrieved from http://www.mspmentor.net/2011/02/01/connectwise-labtech-
war-against-kaseya-intensifies/.
(4) Enterprise Management Associates, Inc. (2011, January). Best Practices in Lifecycle
Management: Comparing Suites from Dell KACE, Symantec, LANDesk, and Microsoft. Retrieved
from http://www.kace.com/resource-center/analyst-reports.aspx.
(5) Kaseya. (2012). What we do. Kaseya-Features. Retrieved May 4, 2012 from
http://www.kaseya.com/features.aspx .
(6) Highbeam Business. (2012). Industry Report: Computer Systems Design Services. Retrieved May
4, 2012 from http://business.highbeam.com/industry-reports/business/computer-integrated-
systems-design.
(7) Calculated based on 567 Kaseya Ex-Patriots per 10,000 estimated Kaseya customers. Kaseya Ex-
Patriots retrieved from http://lipstickonapig.org/profiles/friend/list?page=27 (forum member
profiles) and Kaseya customers obtained from Kaseya Fact Sheet retrieved May 4, 2012 from
http://www.kaseya.com/download/en-us/brochures/factsheet.kaseya.pdf.
(8) Kaseya Ex-Patriots. (2012). Why Switch? Retrieved from
http://lipstickonapig.org/forum/topic/search?q=why+switch.
(9) Kaseya. (2010, December 9). Kaseya receives patent for technology that delivers dynamic
instruction sets to remote devices. Retrieved from http://www.kaseya.com/features/agent-
procedures.aspx and http://www.kaseya.com/company/News/en/pr-12092010-Kaseya-
receives-patent-for-technology-that-delivers-instruction-sets-to-remote-devices.aspx.
(10) Toon Van Beeck. (2011, May). Ten Key Industries That Will Decline, Even After the Economy
Revives. IBISWorld: Commercial Insights – Sales and Marketing. Retrieved from
http://www.ibisworld.com/Common/MediaCenter/Dying%20Industries.pdf
(11)IBISWorld. (2011, May). IBISWorld Identifies Top 10 Fastest Growing Industries. Retrieved from
http://www.ibisworld.com/Common/MediaCenter/051611%20Fastest%20Growing%20Industrie
s.pdf
(12)U.S. Census Bureau. (2009). Business County Business Patterns. Major Industries in the United
States by number of employees. Retrieved from http://censtats.census.gov/cgi-
bin/cbpnaic/cbpsect.pl.
36
(1) Gale
Group_Business & Company Resource Center -- Industry Overview 7373pdf.pdf
(2)
ExcerptReport_EC0754SLLS1.xlsx
(4)
Systems-Management-Buyers-Guide[1].pdf
C. Price lists from suppliers
(c) Pietto Vasco
Quote T3 w addons PDF 020112.pdf

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Business Plan: ITfit

  • 1. This report is confidential and is the property of the co-owners listed above. IT is intended for use only by the persons to whom it is transmitted, and any reproduction or divulgence of any of its contents without the prior written consent of the company is prohibited. ITFit MANAGEMENT SYSTEMS SUGARLAND, TEXAS Co-owners: Fabio Vasco, Pietto Vasco, Elkin Vasco and Temiloluwa Vasco Description of Business: ITFit provides the most comprehensive and adaptable web-based IT system management software fully customized for customer specifications. ITFit helps customers, whether IT management service providers (MSPs) or internal managers, better manage their IT network by automating both basic and complex maintenance tasks, remotely monitoring their IT infrastructure and providing detailed system reporting with industry best practice recommendations. Financing: Initial financing requested is $119,953 loan to be paid off over 5 years. This debt will cover office space, office equipment and supplies, advertising, inventory, and selling costs.
  • 2. 2 Executive Summary ITFit is a complete, internet-based, IT systems management software that can be used immediately without any modification or additional expense after subscription. The current IT management systems available, like N-able and LabTech software, focus on only one or a few phases of IT management (e.g. security, systems inventory or desktop management) In addition, any comprehensive product handling multiple phases generally entails a prohibitive initial investment in the IT system, which would then need additional time and money to customize. ITFit provides all the customization necessary based on customer feedback beforehand and is immediately available via the web. The system is offered using the software as a service (SaaS) model and paid for on a monthly, quarterly or annual basis as preferred by the customer, negating the costly investment necessary when buying such a system outright. Finally, IT Managers can monitor and manage all facets of their network from one single interface, without spending additional time and money to build their knowledge base in the product. ITFit monitoring software (referred to as the “agent”) is deployed remotely to all computers on the customer’s network and performs automated tasks, procedures and schedules as required by the customer. Agents do not require any inbound ports be opened on the managed machines. This unique feature of ITFit allows the agent to do its job in virtually any network configuration - without introducing any susceptibility to network security breaches. The company is owned by four shareholders: Pietto Vasco, Fabio Vasco, Elkin Vasco and Temi Vasco, who also serve as officers of the company. Fabio and Pietto Vasco have a total of 35 years of experience in IT systems management. The company is poised to make over $6 million in revenues in the first year based on agent and server fees charged for each computer on customer networks and a one-time registration fee. The monthly fees agent and server fees are charged at the beginning of each month of service and automatically drafted from customer accounts or credit cards to reduce collectability issues. Currently, KaseyaIT, which serves as the platform base for ITFit, is the market leader of automated IT systems management software, with a user-base of more than 10,000, including companies like FedEx Office, the U.S. Air force, Cisco and more than 50 percent of the world’s largest IT service providers. However, purchasers or subscribers still have to perform additional customization to enjoy the full benefits of the system. This process generally takes at least 3 months should a dedicated and knowledgeable IT staff be available, which is rarely the case.
  • 3. 3 We have already received very positive response from KaseyaIT users struggling with their customization projects. Customers who are intrigued, but would like a demonstration before placing a subscription, will be provided a beta version using the Kaseya website tools initially. ITFit will provide a unique customized seamless IT management platform for users, which is presently unavailable elsewhere.
  • 4. 4 Industry Analysis A. Future outlook and trends(1) Complicated technology, rising costs, and a dearth of information technology (IT) workers have made network support services a fast-moving business. Detailed contracts specifying a minimum quality of service and monetary penalties for the service vendor if the standard is not met have done much to allay concerns of poor service and lack of accountability. Businesses that use outside network support are also increasingly selective about which tasks they farm out, so they are less likely to find themselves in an unsatisfactory blanket arrangement. With service options proliferating and quality improving, some analysts envision IT services growing ever more pervasive in network computing--to a point where a company doesn't need its own network but relies entirely upon services. High speed fiber-optic networks, the ubiquity of the Internet, and new networking paradigms such as virtual private networks, have all helped make this possible on a limited scale and point to a future where network services figure prominently. A larger shift by corporations toward outsourcing nonessential functions also gave the industry a boost. According to a 1997 survey, almost 73 percent of IT managers reported outsourcing some of their technical needs. The top function outsourced was network maintenance (46.6 percent), followed by software development (42.5 percent), mainframe/legacy migrations (37 percent), software maintenance (32.9 percent), and Web site hosting (24.7 percent). According to another study, 27 percent of surveyed companies were considering outsourcing remote network management services as well. Cost savings remain a key motivator for companies that hire network support services. B. Analysis of competitors(3)(4)(5) Competitors are KaseyaIT retailers and other providers of IT management systems. There are two direct well-known competitors: N-able Technologies and LabTech Software. Other competitors include Enterprise Resource Planning products that encompass IT management modules like Microsoft SCCM, Symantec Altiris and Dell KACE systems. These products or companies are focused more on large global companies that would prefer to have IT management built into company-wide management system, not small and mid-sized national firms. All competing firms have at least a national presence and are not localized in a specific locale. The strengths of these competitors include: • Most integrate with systems already in use upon configuration.
  • 5. 5 • Generally cheaper than KaseyaIT, which will be our base product. • Most can be further scripted for automating manual tasks • Brand name recognition in the marketplace. The Weaknesses of these competitors include: • All need some degree of customization, which takes time and money. • The poor interface for systems monitoring and reporting functionality makes them hard to use. • None provides customization services for their products to ensure plug-and-play capability. • None provides the breath of functionality that will be available with ITFit. For example Symantec Altiris only focuses on hardware inventory, while Microsoft SCCM only works seamlessly with other Microsoft platforms, and does not handle Macs or Linux systems. In contrast, ITFit is capable of working with any type of network system, including Microsoft, MACs, Linux, etc, and includes the KaseyaIT features: Agent Technology, Antivirus, Antimalware, Audit and Inventory, Backup, Desktop Policy Management, Desktop Migration, Directory Services, Endpoint Security, Info Center, Imaging and Deployment, IT Service Delivery Kit, Mobile Device Management, Monitoring, Network Discovery, Network Monitor, Online Backup, Patch Management, Policy Management, PSA Integration, Remote Access, Service Billing, Service Desk, Software Deployment and Issue Ticketing. ITFit would provide the customization necessary to the prepackaged software available in the market, starting with KaseyaIT, which provides the best interface for task automation and scripting and the widest range of features. C. Market Segmentation(1) (2) In October 2009, an IBISWorld Industry report broke down IT support, CRM, and Data Processing Services products and services by percent of total market. It reported that business process management held roughly a fourth of the market, with data management services and application service provisioning each holding about 10-12 percent. IT technical support services, IT computer network management services, collocation services, and website hosting services collectively held about 28 to 30 percent. This report valued the entire industry as worth $101.9 billion in 2008. 18,939 establishments under NAICS group code 54151, Computer Systems Design and Related Services, provided computer and network management services to other businesses, of which only 6,167 provide customization and integration of other packaged software services in the
  • 6. 6 United States, with both markets representing $66.5 billion and $20.4 billion in revenues, respectively. D. Industry and market forecasts(6) Web services influenced the systems integration industry in several ways. With the high cost of integration, the role of system integrators changed from a technical one to more of a consultative one, in which the integration of business processes was the primary focus. However, some industry players argued that in the early 2000s Web services still were no match for traditional enterprise application integration (EAI) systems adaptations and systems integration was a top priority for many organizations in 2002 and 2003. In 2002, some EAI vendors made the switch from their own systems to those based on Web services, indicating that the two elements could coexist in harmony to some degree. ITAA cited e-commerce as leading the overall industry in 2005, while application spending was projected to grow as well once the economy recovered from the 2007 recession. The major market drivers were in the government sector, banking and financial institutions, and manufacturing. According to Computer Weekly, one of the most significant influences on just about every aspect of the computing world was the rising use of cloud computing. According to a November 2010 article, "This year [2010] brought development environments in the cloud, a better understanding of cloud economics, and an enthusiastic leap--marketing or otherwise--on the cloud bandwagon for every major supplier." This trend is expected to continue into the 2010s, as both large and small companies take advantage of the economic and environmental advantages of cloud computing. One component of the movement toward cloud computing was SaaS (software as a service). According to Bob Moul in Computerworld, "SaaS technology is changing the way applications are designed, developed and delivered." For example, as stated in the May 2010 article, "Cloud- based integration platforms allow you to design, build, monitor, and manage integrations centrally (from the cloud) yet deploy just the runtime to where the integration needs to occur." The use of cloud computing is expected to continue to make many aspects of the computer systems design industry more efficient, simpler, and cost-effective.
  • 7. 7 Description of Venture ITFit provides a unique IT management system that fits each IT manager’s needs by building on the most configurable IT system management software available on the market: KaseyaIT. After a total of 35 years of experience in IT systems management held by Fabio and Pietto Vasco, both managers were excited to find a comprehensive product like KaseyaIT. KaseyaIT provides unparalleled automation of periodic IT tasks required to manage and maintain systems and devices and has the most complete system for all phases of IT management including security, systems inventory, desktop management, etc. However, both noted that most companies did not fully utilize the product to its fullest potential due to the scarcity of resources in customizing the software to management needs and building manager’s product knowledge-base. In addition, the systems reporting function provided information only, without any recommendations of necessary actions for problem solving. At least 6%(7) of KaseyaIT purchasers eventually abandoned the product, while a larger percentage used fewer than 5 of the 25 modules available(8), simply because of these constraints.(8) By partnering with KaseyaIT systems and providing the customization necessary, customers, whether in-house IT managers, or third-party service providers, will have a true plug-and-play management system. The software will be delivered as using the SaaS model; hence, the software will be available to customers nation-wide. ITFit will design the procedures, tasks and schedules and define the script or logic structure, Kaseya, the developer of KaseyaIT and business affiliate, will provide the software platform, while two contracted programmers will write the scripts and integrate them into the platform after testing. The scripts or logic are necessary for the system to automatically resolve common system issues, produce readable monitoring reports and provide standard recommendations to resolve potential system issues before they arise. The systems integration design and logic scripts will be copyrighted to maintain ITFit’s competitive advantage. In addition, KaseyaIT is copyrighted software and Kaseya has several patents of the system’s functionality. As an affiliate of Kaseya, ITFit enjoys the benefits of the competitive advantages such copyrights and patents provide. ITFit’s office equipment will consist of general office furniture and computer hardware, software and peripherals i.e. mail and data server, laptops, printers, projectors, etc, which will be housed in the company offices located in Sugarland, Texas. Since software delivery will be web-based, ITFit will focus more on assuring the company’s outstanding web presence.
  • 8. 8 KaseyaIT, which serves as the platform base for ITFit is the market leader of automated IT systems management software, with a user-base of more than 10,000, including companies like FedEx Office, the U.S. Air force, Cisco and more than 50 percent of the world’s largest IT service providers. Owners Pietto Vasco has over 20 years of experience both as an IT administrator and director in various internal IT departments, while Fabio Vasco(10) has over 15 years as a network administer in both internal IT departments and external service providers. Both members of the team have a full understanding of the needs of IT managers and have excellent references from clients and managers testifying to their expertise and ability to provide unique solutions that saves them both time and money. Elkin Vasco has over 8 years experience as a national sales manager and has distinguished himself with all his employers, which include MillerCoors, Altria and Petcurean Pet Nutrition. Elkin is experienced with sale of consumer package goods, brand marketing, product management, and team leadership. He has a proven track record of success developing and implementing local sales and marketing programs at the key account, wholesale and retail level and was recognized for strong presentation skills and problem solving capabilities with each of his employers. Elkin is fully capable of leading the initial marketing initiative to launch ITFit both online and in the Houston market. Temi Vasco is a licensed CPA with the State of Texas, has over 10 years experience in accounting and is currently pursuing her MBA with a concentration in Entrepreneurship. Temi started her career a KPMG auditor, prior to moving to industry, where she has been distinguished as a technical accounting expert and exemplary manager. Temi opened her own CPA practice two years ago and aided other family members in starting their entrepreneurial journeys. She especially understands the importance of a strong accounting framework that allows company growth while controlling or measuring performance.
  • 9. 9 Production and Operations Plan ITFit is a SaaS and does not need a physical plant or production machinery and equipment. However, software updates are expected to be conducted semi-annually to upgrade the software and provide additional improvements as necessary or desired. As a Kaseya Partner, ITFit will purchase the KaseyaIT platform and integrate the script/logic and report design modules into the software. Once the integration is successfully performed, the repackaged software will be made available from the company’s server to customers via the ITFit website. The ITFit logo will be clearly displayed in the repackaged product which will be seamlessly integrated, to avoid any confusion as to which product they are using. As far as customers are concerned, they are using ITFit, not KaseyaIT. Along with the platform, monitoring software (referred to as “agents”) will be purchased from Kaseya in increments of 1,000 each. Agent procedures are the backbone of automation for IT management tasks. All communication to the server is initiated from agents, which collect network and user data and through which an endless number of procedures and tasks run automated and unattended once configured to customer specifications. All procedures and tasks will be scripted by contracted programmers, namely Razi Syed & Associates. For example, a simple network procedure would be scripting the agent to run a utility every day to determine if a disk needs to be defragmented. Based on the results of that procedure, a conditional script may be written to defrag the drive and log the results if the results are positive and if negative, simply log the result that it is not needed. A more complex example is checking a web site at specific intervals to make sure it is available to the outside world and serving up the correct content. Potential customers are required to begin their membership registration on the ITFit website. All business information will be entered by the customer and later validated by their assigned member representative, including the authorized customer credit card for automatically drawing membership fees. Each customer can select the frequency of membership fee payments (monthly, quarterly or annually). As part of the customer member registration process, all necessary information on customer networks will be provided using an online “Network Inventory Checklist.” This will include server IP addresses, computer names, network infrastructure map and all other network information needed to remotely deploy agents to each computer on the customer’s network. In addition, customers will provide a list of tasks and procedures required for their network environment.
  • 10. 10 Agent design, which assigns specific scripts to agent software is performed by the assigned member representative, who then forwards it to the CITO (or designated employee(s)) for reviewed. The review is performed to ensure that the agent procedures, tasks and schedules are in accordance to customer specifications and needs as indicated by the online profile completed as part of the membership registration within 24 hours. A sales team, including the member representative and CEO, CCO and/or CITO, will visit each customer site once their online registration is complete to confirm the information provided via the internet and ensure extraneous information is obtained to obtain a clear and complete picture of the customer IT system or network. This is absolutely necessary as the customization must be tailored to each customer network design. The ITFit member representative will ensure that the scripts provided by the contracted programmers meet customer specifications and modify the Network Inventory information based on the results of the visual and network tour and obtain customer assent to those changes. The CEO, CCO and/or CITO will provide the personal touch to a virtual relationship. Once confirmation of the network inventory is complete and customer approved, the member representative will review the agent procedures and tasks to ensure that all customer requirements are met, and authorize the system to deploy agents to each computer on the customer network as detailed in the inventory checklist which immediately begin communicating with the ITFit server. Should modifications be necessary based on the updated network inventory checklist, the member representative is authorized to make those changes in the ITFit system as considered necessary. Once the agent deployment is complete, the member representative will flag the customer account for payment processing, which will trigger an online invoice notification to the IT Manger via e-mail. The e-mail notification will include a hyperlink where payment can be made electronically. The IT manager at the customer site is also provided with administrative access to ITFit which is segregated to provide access to the customer IT infrastructure only. Upon logging in, the system will direct the customer to the invoice payment module to pay the fees due. Access is automatically granted once online processing of the credit card transaction is complete and the system will direct the IT Manager to the customer profile page, where they can then begin to use the software. The Chief Information Technology Officer (“CITO”) and Chief Customer Relations Officer (CCRO) (or designated employee) will review and approve all registered member profiles, agent design and network inventory checklist for congruency as another control once notified of new membership by the ITFit workflow system.
  • 11. 11 Payment for membership fees are drawn automatically from customer credit cards on a periodical basis as indicated by each customer profile. Non-payment or rejected credit card transactions will result in automatic account lock-out until payments are made current.
  • 12. 12 Marketing Plan Marketing objectives and goals The marketing goal is to build brand awareness while attracting potential customers. Once potential customers are identified, ITFit will provide free network assessments to identify problem areas in customer IT management and demonstrate the usefulness ITFit management system and the time and cost savings that the customer will enjoy by using the product. Marketing strategy and Action Programs The target market includes internal IT departments of businesses and IT management service companies managing 100+ terminals (end-users or employees) that have been in existence for more than 5 years and experience incomes greater than $1.5 million annually. These companies are located within the United States and are either experiencing rapid expansion or retrenchment of more than 10% in their respective industries, resulting in budget priorities for lowering costs, integrating systems or processes and implementing security and privacy measures. ITFit will focus on those industries poised for growth and decline of at least 10%, which are focused on cutting costs and immediate return on their return on investment in IT management software. Based on IBISWorld forecasts(10)(11), these industries mainly reside in the following SIC Industry codes: Transportation, Communication and Public Utilities (40), Manufacturing (20), Wholesale Trade (50) and Services (70). These industries are impacted by one or more of four drivers: Internet growth, environmental issues, cost cutting and evolving technology, due to intense competition, industry stagnation or exponential growth. According to the U.S. Census Bureau’s Business Dynamics Statistics (BDS) Data Tables for 2009(12), the number of Active Establishments with over 100 employees that have been in existence for 5 or more years, for all SIC industries approximated 46.5 million firms. The number of firms in the 40, 20, 50 and 70 SIC industries total 44.4 million firms. ITFit will charge a $179 monthly service fee ($120 server and $59 agent fee) for each agent deployed and a one-time registration and network mapping fee of $399 per customer. We expect a modest number of at least 10,000 agents in the first year (based on attainment of at least 100 customers). Promotions for new members with annual membership include 7% off, if payments are made in Quarterly installments (estimated at 20% of new clients) and 10% off if made once a year (5% of new clients). For new members with month-to-month payments, promotion provides 5% off with annual commitment (40% of new clients).
  • 13. 13 ITFit will use various platforms to market the product. Apart from online placement advertisements on search engines including Google, Bing and Yahoo, the ITFit website will include a blog section updated by both company staff and marketing consultants to provide expert advice on KaseyaIT and ITFit functional issues in order to place itself as an expert in the online community. Initial contact with potential customers will take place through cold-calls, website and mailing circulars where ITFit will offer free network assessments. The ITFit website and mailing circulars will request potential customers to register on the company website or call a toll free number to schedule their free network assessment. ITFit will mail an introductory circular in addition to the free assessment offer to companies that meet the target market profile within Houston and outskirts, mainly Harris and Fort Bend counties. In addition, cold-calls will be made to potential customer’s offering the free network assessment to upper or IT management. ITFit will use www.goleads.com as the sales leads and mailing list provider. The telephone mailing and website campaign will be spearheaded by Elkin Vasco, Co owner and Sales Manager. With these free network assessments, ITFit will provide potential customers an overview of their network performance and areas for improvement by comparing their network to industry standards and best practices. The assessment overview will be provided in a face to face presentation with the potential client, with a detailed report provided to them at the end of the presentation. For potential clients outside the state of Texas, the presentation may occur via a live web conference at the convenience of each company, using WebEx, however a face-to-face meeting is generally required. This will be ITFit’s opportunity to gain an understanding of the potential customer’s needs and present ITFit as their ultimate IT management solution. ITFit will target preparing for and presenting at least 3 assessments each week and signing at least 4 customers each month in the first three months of business, 6 each month in the fourth through the seventh month and 8 each month for the remaining 5 months.
  • 14. Marketing Budget Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Business Cards 60 40 100 Brochures 405 405 405 405 1,620 Product Folders 1,137 1,137 1,137 1,137 4,548 Kaseya Annual User Conference 2,700 2,700 Tech Trade Shows 2,300 2,300 2,300 2,300 9,200 Website Hosting 10 10 10 10 10 10 10 10 10 10 10 10 120 Free Assessments & Demonstrations 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Goleads Mailing List 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 12,960 Mailing Campaign (Print & Mail) 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 142,800 Website and Online Marketing 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 Meals, travel and entertainment 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000 Total Marketing Expenses 21,050 20,990 24,832 23,730 20,990 24,832 20,990 20,990 24,832 20,990 20,990 24,832 270,048
  • 15. Organizational Plan A. Form of ownership The company will be incorporated as a corporation, with initial 1000 shares shared equally between the four co-partners, and additional shares issued based on individual cash or asset investments. Profits sharing will be done based on the percentage of share ownership. B. Identification of partners or principal shareholders The principal shareholders of ITFit are Fabio Vasco, Pietto Vasco, Elkin Vasco and Temi Vasco, who are also officers of the company. C. Authority of principals Each officer has the authority to make decisions and enter into contracts binding on the Company contingent on the agreement of the other members. Major business decisions are made during monthly board of director meetings which require the presence of all members. A majority represents 51% of shareholder/director vote. D. Management team background Refer to Venture Description for organization shareholders’ backgrounds. E. Roles and responsibilities of shareholders of organization Pietto Vasco, Chief Executive Officer, is responsible for setting ITFit strategy and vision, building culture that attracts and retains the very best employees, motivating employees and team building, fundraising, financing road shows, setting budgets and forming valuable partnerships. Pietto serves as the prime communicator, decision maker, leader, and manager for ITFit. The communicator role involves the press, lenders, customers and other external entities, as well as the organization's management and employees; the decision-making role involves high-level decisions about policy and strategy. As a leader, Pietto advises the board of directors, motivates employees, spearheads sales initiative, shares the company mission, vision and values and provides direction within the organization. Pietto presides over the organization's day-to-day, month-to-month, and year-to-year operations. Pietto reports directly to the Board of Directors. Fabio Vasco, Chief Information Technology Officer (CITO), is responsible for the information technology and computer systems that support ITFit goals. He is focused on the technology integral to the ITFit management system used by customers, the internal technology needs for running the company and maintaining the KaseyaIT software platform for any new applications. Accordingly, Fabio is integrally involved with formulating intellectual property (IP) strategies (e.g. copyrights, patents, trade secrets, license contracts), and exploiting proprietary
  • 16. 16 technologies by working collaboratively with legal counsel to incorporate those considerations into strategic planning and inter-company negotiations. Fabio is also poised to solve internal organizational problems through acquiring and adapting existing technologies and overseeing development of new scripts and procedures that enhance ITFit management systems or resolve customer interface issues with the software. Fabio is responsible for managing the implementation of useful technology to increase information accessibility and integrated systems management internally, while developing new technologies to expand ITFit technological capabilities. He is responsible for processes and practices supporting the flow of information and the Company’s technology infrastructure. Fabio reports to the chief executive officer, and is a member of the board of directors. Elkin Vasco is the Chief Customer Officer and is responsible for the total relationship with ITFit’s customers and providing a single vision across all methods of customer contact. He provides the comprehensive and authoritative view of the customer and creates corporate and customer strategy at the highest levels of the company to maximize customer acquisition, retention, and profitability. Elkin influences all corporate activities of customer relations in sales, marketing, user website interface, finance (billing), fulfillment and post-sale support. Elkin reports to the chief executive officer, and is a member of the board of directors. Temi Vasco, the Chief Financial Officer, primarily responsible for managing the financial risks of the corporation. Temi’s primary duties include controllership, treasury and economic strategy and forecasting. Controllership role includes the accurate and timely presentation of historical financial information that is useful for decision making. Treasury function includes the responsibility for ITFit’s financial condition, which involve cash investment decisions, taking into consideration risk and liquidity. In addition, Temi oversees the capital structure of the company, determining the best mix of debt, equity and internal financing. Temi is ultimately responsible for financial planning and record-keeping, as well as financial and management reporting. Elkin reports to the chief executive officer, and is a member of the board of directors. The Board of Directors includes 3 other members with entrepreneurial experience in the IT industry. ITFit is currently reviewing several candidates.
  • 17. 17 Assessment of Risk As a new company to the IT management systems industry, ITFit does not have the brand name recognition that its competitors enjoy. To combat this issue, ITFit will continue to advertise and promote the ITFit brand to improve brand awareness and cultivate a reputation of excellence and exemplary customer service. ITFit is dependent on the partnership with Kaseya and its use of the KaseyaIT system. Should Kaseya go bankrupt or abandon KaseyaIT in favor of another platform, stop supporting the KaseyaIT software, the ITFit platform will lack upgrades, maintenance and probably become obsolete. Although Kaseya has given every indication that the likelihood of such a decision is remote, ITFit would purchase rights to the product at such a time and expand its current business focus to include software development, instead of script-ware integration. In addition, ITFit will build scripts for other software platforms, like N-able, LabTech, Altiris, etc., to reduce its dependency on KaseyaIT and even go as far as to repackage those software as allowed by those third-parties. Kaseya is currently in the business of providing a software platform. However, Kaseya or other platform providers could choose to produce scripted modules or customization services. However, since Kaseya and competitors provide software platforms primarily to MSPs who customize their system for their client’s use, entering the customization services market would result in competing directly with their customers, which would cannibalize their sales revenue. Therefore, it is highly unlikely that they would make this choice. There are new technologies marketed everyday to help IT Managers better manage their network, while improving system performance. ITFit will copyright the scripts and modules written for all platforms to prevent unauthorized duplication or proliferation of ITFit management systems. The reporting system in ITFit provides historical information, customer usage preferences (including module favorites) and copyrighted scripts, which are automatically logged and updated in the system. All these factors present switching costs to customers, since moving to a new IT management system means starting anew.
  • 18. 18 Financial Plan Sources and Uses of Funds Sources of Funds: Personal Funds 60,000 SBA 7(a) loan 119,953 Total Sources 179,953 Uses of Funds: Programming/Scripts 16,000 Kaseya Solutions 51,000 Website Development 5,000 Computers/Laptops 4,400 Portable Projector 1,198 Portable Printer 560 iPads 998 iPhones 796 Startup Expenses 50,001 Working Capital 50,000 Total Uses 179,953
  • 19. Pro forma income statements Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Monthly Service Fee (1) $71,600 $143,200 $214,800 $322,200 $429,600 $537,000 $644,400 $787,600 $930,800 $1,074,000 $1,217,200 $1,360,400 $7,732,800 Registration Fees (1) 1,596 1,596 1,596 2,394 2,394 2,394 2,394 3,192 3,192 3,192 3,192 3,192 30,324 Discount/Promotions (1) (2,792) (2,792) (2,792) (4,189) (4,189) (4,189) (4,189) (5,585) (5,585) (5,585) (5,585) (5,585) (53,056) Net Sales 70,404 142,004 213,604 320,405 427,805 535,205 642,605 785,207 928,407 1,071,607 1,214,807 1,358,007 7,710,068 Cost of Sales (2) 20,400 20,400 20,400 30,600 30,600 30,600 30,600 40,800 40,800 40,800 40,800 40,800 387,600 Gross Profit 50,004 121,604 193,204 289,805 397,205 504,605 612,005 744,407 887,607 1,030,807 1,174,007 1,317,207 7,322,468 Operating Expenses Officers Compensation (3) 36,538 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 311,538 Salary-Wages (4) 18,750 18,750 18,750 29,583 29,583 29,583 29,583 29,583 29,583 29,583 29,583 29,583 322,500 Employment Taxes (5) 4,230 3,347 3,347 4,176 4,176 4,176 4,176 4,176 4,176 4,176 4,176 4,176 48,504 Consulting (6) 13,000 13,000 13,000 13,000 13,000 25,000 7,000 3,000 3,000 3,000 3,000 3,000 112,000 Rent (7) 2,135 2,135 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 57,645 Utilities & Phones 500 500 500 500 500 500 500 500 500 500 500 500 6,000 Other-Live Receptionist 249 249 249 249 249 249 249 249 249 249 249 249 2,988 E-mail 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Insurance 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Marketing/Advertising (8) 21,050 20,990 24,832 23,730 20,990 24,832 20,990 20,990 24,832 20,990 20,990 24,832 270,048 Kaseya Cloud Server Hosting 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 29,280 KaseyaIT - Maintenance 10,000 10,000 Professional Membership 675 675 Interest on loan (9) 550 542 534 526 518 510 501 493 485 477 468 460 6,062 Depreciation 829 829 829 829 829 829 829 829 829 829 829 829 9,950 Office Supplies 500 500 500 500 2,000 Net Profit $(50,717) $33,372 $97,435 $183,985 $294,133 $385,199 $514,949 $651,359 $790,226 $937,776 $1,080,984 $1,209,176 $6,127,878
  • 20. 20 Notes for Year 1: (1) See Estimated Sales details for assumptions (2) Installed Agents on end-user computers (at least 100 per target customer) (3) Compensation for four officers includes pre-start-up salaries (4) Initial Salaries-Wages for Salesperson, Helpdesk staff, Client representative and 1 bookkeeper, with an additional Helpdesk staff and Client Manager added within 3 months. (5) Employment taxes as of 2012 (Social Security and Medicare) from IRS website; http://www.irs.gov/pub/newsroom/notice_1036.pdf (6) Consulting fees for debugging software after testing phase to immediately resolve software any issues and ad hoc scripting requests In addition, scripting fees for release of new software version within 6 months of business opening and retainer for program improvements in last six months of the year. (7) Rent expense due to lease of additional 2 offices within contract with virtual office (8) Assumes large marketing event in at least 1 trade show per quarter, in addition to other smaller events (9) 5 year loan with Interest on loan at higher of Libor (1.0521%) or prime rate (3.25%) + 2.25%, whichever is higher. Rates as of 03/28/2012. http://www.wsjprimerate.us/libor/index.html; http://archive.sba.gov/financialassistance/borrowers/guaranteed/7alp/FINANCIAL_GLP_7A_TERMS.html
  • 21. 21 Pro Formal Income Statement (continued) Year 2 Year 3 Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual Monthly Service Fees (1) $1,754,200 $2,255,400 $2,738,700 $3,222,000 $9,970,300 $3,705,300 $4,188,600 $4,671,900 $5,155,200 $17,721,000 Registration Fee (1) 8,778 11,172 10,773 10,773 41,496 10,773 10,773 10,773 10,773 43,092 Discount/Promotions (1) 15,358 19,547 18,849 18,849 72,602 18,849 18,849 18,849 18,849 75,395 Net Sales 1,747,620 2,247,025 2,730,624 3,213,924 9,939,194 3,697,224 4,180,524 4,663,824 5,147,124 17,688,697 Cost of Sales (2) 112,200 142,800 137,700 137,700 530,400 137,700 137,700 137,700 137,700 550,800 Gross Profit 1,635,420 2,104,225 2,592,924 3,076,224 9,408,794 3,559,524 4,042,824 4,526,124 5,009,424 17,137,897 Operating Expenses Officers Compensation (3) 75,000 75,000 75,000 75,000 300,000 75,000 75,000 75,000 75,000 300,000 Salary-Wages (4) 137,500 137,500 137,500 137,500 550,000 137,500 137,500 137,500 137,500 550,000 Employment Taxes (5) 16,256 16,256 16,256 16,256 65,025 16,256 16,256 16,256 16,256 65,025 Consulting (6) 39,000 51,000 13,000 9,000 112,000 39,000 51,000 13,000 9,000 112,000 Rent (7) 21,000 21,000 21,000 21,000 84,000 21,000 21,000 21,000 21,000 84,000 Utilities & Phones 3,600 3,600 3,600 3,600 14,400 3,600 3,600 3,600 3,600 14,400 E-mail 1,050 1,050 1,050 1,050 4,200 1,050 1,050 1,050 1,050 4,200 Insurance 750 750 750 750 3,000 750 750 750 750 3,000 Marketing/Advertising (8) Business Cards 60 140 200 140 140 Brochures 405 405 405 405 1,620 405 405 405 405 1,620 Product Folders 1,137 1137 1,137 1,137 4,548 1,137 1137 1,137 1,137 4,548 Kaseya Annual User Conference 2700 2,700 2781 2,781 Tech Trade Shows 2,300 2300 2,300 2300 9,200 2,300 2300 2,300 2300 9,200 Website Hosting 30 30 30 30 120 30 30 30 30 120 Free Assessments & Demonstrations 6,000 6,000 6,000 6,000 24,000 6,000 6,000 6,000 6,000 24,000 Goleads Mailing List 3,240 3,240 3,240 3,240 12,960 3,240 3,240 3,240 3,240 12,960 Mailing Campaign (Print & Mail) 35,700 35,700 35,700 35,700 142,800 35,700 35,700 35,700 35,700 142,800 Website and Online Marketing 4,500 4,500 4,500 4,500 18,000 4,500 4,500 4,500 4,500 18,000 Meals, travel and entertainment 13,500 13,500 13,500 13,500 54,000 13,500 13,500 13,500 13,500 54,000 Kaseya Cloud Server Hosting 7,540 7,540 7,540 7,540 30,158 7,766 7,766 7,766 7,766 31,063
  • 22. 22 Year 2 Year 3 Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual KaseyaIT - Maintenance 10,300 10,300 10,609 10,609 Professional Membership 675 675 675 675 Interest on loan (9) 1,329 1,253 1,175 1,096 4,854 1,017 936 854 770 3,576 Depreciation 3,175 3,494 3,494 3,494 13,656 3,929 3,494 3,494 3,494 14,410 Office Supplies 625 625 625 625 2,500 625 625 625 625 2,500 Net Profit $1,261,723 $1,715,646 $2,245,123 $2,721,386 $7,943,878 $3,185,220 $3,654,255 $4,178,418 $4,654,377 $15,672,270 Notes for Year 2 & Year 3: (1) See Estimated Sales details for assumptions (2) Installed Agents on end-user computers (at least 100 per target customer) (3) Compensation for four officers includes pre-start-up salaries (4) Salaries-Wages for 1 Salesperson, 2 Helpdesk Staff, 2 Client Representatives and a bookkeeper from year 1, including an additional Helpdesk staff and Client Representative, and a full-time office administrator/receptionist hired in Year 2 (5) Employment taxes as of 2012 (Social Security and Medicare) from IRS website; http://www.irs.gov/pub/newsroom/notice_1036.pdf (6) Consulting fees for debugging software after testing phase to immediately resolve software any issues and ad hoc scripting requests In addition, scripting fees for release of new software version midyear and retainer for program improvements in last six months of the year. (7) Rent expense due to move from virtual offices to a permanent office location in Sugar Land TX. Estimate 5,000SF at $16.80/SF http://www.loopnet.com/xNet/MainSite/Listing/Search/SearchResults.aspx#/All-Types/For-Lease/c!ARYC$BAQcBClN1Z2FyIExhbmQ (8) Assumes large marketing event in at least 1 trade show per quarter, in addition to other smaller events (9) Year 2 and Year 3 of 5 year loan with 5.5% interest rate. Assumes Note is repaid December of Year 3 with 10% penalty on interest for early loan payoff
  • 23. 23 Pro forma Cash flow Statements Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Cash Receipts Sales (1) $70,404 $142,004 $213,604 $320,405 $427,805 $535,205 $642,605 $785,207 $928,407 $1,071,607 $1,214,807 $1,358,007 $7,710,068 Cash Disbursements Cost of inventory (2) 51,000 51,000 51,000 51,000 51,000 51,000 51,000 357,000 Officers Compensation 36,538 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 311,538 Salary-Wages 13,333 13,333 13,333 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167 257,500 Employment Taxes 3,815 2,933 2,933 3,761 3,761 3,761 3,761 3,761 3,761 3,761 3,761 3,761 43,531 Consulting (3) 39,000 26,000 35,000 12,000 112,000 Rent 2,135 2,135 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 5,338 57,645 Utilities 500 500 500 500 500 500 500 500 500 500 500 500 6,000 Other-Live Receptionist 249 249 249 249 249 249 249 249 249 249 249 249 2,988 E-mail 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Insurance 1,500 1,500 Marketing/Advertising Business Cards 300 200 500 Brochures 405 405 405 405 1,620 Product Folders 1,137 1,137 1,137 1,137 4,548 Kaseya Annual User Conference 2,700 2,700 Tech Trade Shows 2,300 2,300 2,300 2,300 9,200 Website Hosting 10 10 10 10 10 10 10 10 10 10 10 10 120 Free Assessments & Demonstrations 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Goleads Mailing List 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 12,960 Mailing Campaign (Print & Mail) 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 11,900 142,800 Website and Online Marketing 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 Meals, travel and entertainment 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000 Kaseya Cloud Server Hosting 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 2,440 29,280
  • 24. 24 Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual KaseyaIT – Maintenance 10,000 10,000 Professional Membership 550 550 Loan Payment (4) 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,291 27,495 Purchase of Fixed Asset (7) 8,312 4,156 12,468 Programming/Scripts (8) 42,000 42,000 42,000 126,000 Office Supplies 500 500 500 500 2,000 Net Cash (20,701) 71,933 45,988 228,414 291,870 419,928 505,170 700,272 753,130 893,672 1,036,872 1,153,180 6,079,725 Beginning Balance (5) 50,000 29,299 101,232 147,220 375,634 667,503 1,087,431 1,592,601 2,292,872 1,946,002 1,739,674 1,676,545 50,000 Less Owner Withdrawal (1,100,000) (1,100,000) (1,100,000) (1,100,000) (4,400,000) Ending Cash Balance (6) $29,299 $101,232 $147,220 $375,634 $667,503 $1,087,431 $1,592,601 $2,292,872 $1,946,002 $1,739,674 $1,676,545 $1,729,725 $1,729,725 Notes for Year 1: (1) The cash portion of sales is counted when received. Business will automatically draft bank accounts or credit cards for monthly membership payment once a month. (2) Purchase of 1,000 KaseyaIT agent software using JUST IN TIME system triggered when inventory dips below than 201 agents. (3) Programming consultants paid based on achievement of milestone. (4) The entire loan payment is included on the cash flow statement. Only the interest is included in the income statement. (5) The $50,000 beginning balance is the working capital from the startup statements. (6) The ending cash balance of one month becomes the beginning cash balance of the next. (7) Laptop/Computer, portable printer, iPhone and iPad for new employees hired (8) Investment in programming scripts for other platforms: N-able, LabTech and others (includes initial scripting to testing, implementation and copyright filing.
  • 25. 25 Pro forma Cash flow Statements (Continued) Year 2 Year 3 Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual Cash Receipts Sales (1) 1,747,620 2,247,025 2,730,624 3,213,924 9,939,194 3,697,224 4,180,524 4,663,824 5,147,124 17,688,697 Total Cash Receipts 1,747,620 2,247,025 2,730,624 3,213,924 9,939,194 3,697,224 4,180,524 4,663,824 5,147,124 17,688,697 Cash Disbursements Cost of inventory (2) 153,000 102,000 153,000 153,000 561,000 102,000 153,000 153,000 153,000 561,000 Officers Compensation 75,000 75,000 75,000 75,000 300,000 75,000 75,000 75,000 75,000 300,000 Salary-Wages 121,250 121,250 121,250 121,250 485,000 121,250 121,250 121,250 121,250 485,000 Employment Taxes 15,013 15,013 15,013 15,013 60,053 15,013 15,013 15,013 15,013 60,053 Consulting (3) 39,000 51,000 13,000 9,000 112,000 39,000 51,000 13,000 9,000 112,000 Rent 21,000 21,000 21,000 21,000 84,000 21,000 21,000 21,000 21,000 84,000 Utilities 3,600 3,600 3,600 3,600 14,400 3,600 3,600 3,600 3,600 14,400 Other-Live Receptionist 747 747 747 747 2,988 747 747 747 747 2,988 E-mail 1,050 1,050 1,050 1,050 4,200 1,050 1,050 1,050 1,050 4,200 Insurance 750 750 750 750 3,000 750 750 750 750 3,000 Marketing/Advertising Business Cards 60 140 200 140 140 Brochures 405 405 405 405 1,620 405 405 405 405 1,620 Product Folders 1,137 1,137 1,137 1,137 4,548 1,137 1137 1,137 1,137 4,548 Kaseya Annual User Conference 2,700 2,700 2,700 2,700 Tech Trade Shows 2,300 2300 2,300 2300 9,200 2,300 2300 2,300 2300 9,200 Website Hosting 30 30 30 30 120 30 30 30 30 120 Free Assessments & Demonstrations 6,000 6,000 6,000 6,000 24,000 6,000 6,000 6,000 6,000 24,000 Goleads Mailing List 3,240 3,240 3,240 3,240 12,960 3,240 3,240 3,240 3,240 12,960 Mailing Campaign (Print & Mail) 35,700 35,700 35,700 35,700 142,800 35,700 35,700 35,700 35,700 142,800 Website and Online Marketing 4,500 4,500 4,500 4,500 18,000 4,500 4,500 4,500 4,500 18,000 Meals, travel and entertainment 13,500 13,500 13,500 13,500 54,000 13,500 13,500 13,500 13,500 54,000 Kaseya Cloud Server Hosting 7,540 7,540 7,540 7,540 30,158 7,766 7,766 7,766 7,766 31,063
  • 26. 26 Year 2 Year 3 Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual Kaseya Solutions - Maintenance 10,300 10,300 10,609 10,609 Professional Membership 675 675 675 675 Loan Payment (4) 4,032 4,032 4,032 4,032 16,128 4,032 4,032 4,032 71,234 55,062 Purchase of Fixed Asset (7) 125,000 125,000 125,000 125,000 500,000 125,000 125,000 125,000 125,000 500,000 Programming/Scripts (8) 7,353 3,377 10,730 4,676 28,952 33,628 Office Supplies 625 625 625 625 2,500 625 625 625 625 2,500 Net Cash 1,105,788 1,645,529 2,122,206 2,598,391 7,471,914 3,108,903 3,531,098 4,055,179 4,434,901 15,130,082 Beginning Balance (5) 1,729,725 1,235,513 1,281,042 1,803,248 1,729,725 2,801,638 3,910,542 5,441,640 7,496,819 2,801,638 Less Owner Withdrawal (1,600,000) (1,600,000) (1,600,000) (1,600,000) (6,400,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (8,000,000) Ending Cash Balance (6) 1,235,513 1,281,042 1,803,248 2,801,638 2,801,638 3,910,542 5,441,640 7,496,819 9,931,721 9,931,721 Notes for Year 2 and Year 3: (1) The cash portion of sales is counted when received. Business will automatically draft bank accounts or credit cards (2) Purchase of 1,000 KaseyaIT agent software using JUST IN TIME system triggered when inventory dips below than 201 agents. (3) Programming consultants paid based on achievement of milestone. (4) The entire loan payment is included on the cash flow statement. Only the interest is included in the income statement. Assumes that loan is repaid in last month of Year 3 (5) The beginning balance is the ending balance from prior year. (6) The ending cash balance of one month becomes the beginning cash balance of the next. (7) Laptop/Computer, portable printer, iPhone and iPad for new employees hired (8) Investment in programming scripts for other platforms: N-able, LabTech and others (includes initial scripting to testing, implementation and copyright filing.
  • 27. Pro forma balance sheet Year 0 Year 1 Year 2 Year 3 Assets Current Assets Cash (1) 61,538 1,729,725 (a) 2,801,638 (a) 9,931,721 (a)(h) Inventory (2) 51,000 20,400 51,000 61,200 Prepaid expenses (3) 2,950 2,950 2,950 2,950 Office & Marketing supplies (4) 4,442 4,442 (b) 4,442 (b) 4,442 (b) Accounts receivable - 667,077 (c) 857,141 (c) 1,561,262 (c) Total current Assets 119,930 2,424,593 3,717,171 11,561,575 Fixed Assets (4) iPads 998 499 811 250 iPhones 796 398 647 299 Computers/Laptops 4,400 2,933 6,050 4,583 Portable Projector 1,198 799 799 200 Portable Printer 560 373 770 490 Website Development 5,000 3,333 1,667 - Programming/Scripts 16,000 136,667 589,753 876,580 (g) Total fixed assets 28,952 145,002 (d) 600,496 (d) 882,401 (d) Total assets 148,882 2,569,596 4,317,668 12,443,976 Liabilities Current Liabilities Short term loans - - - - Total current liabilities - - - - Long-term Liabilities SBA 7(a) loan (5) 119,953 98,521 (e) 75,879 (e) - (f) Other long-term loans - - - - Total long-term liabilities 119,953 98,521 75,879 - Owner's equity Owner's equity 28,929 2,471,075 4,241,788 12,443,976 Total owner's equity 28,929 2,471,075 4,241,788 12,443,976 Liabilities & Owner's equity 148,882 2,569,596 4,317,668 12,443,976 General Notes Year 0 is the balance sheet for December 31, 2012 Year 1 is the balance sheet for December 31, 2013 Year 2 is the balance sheet for December 31, 2014 Year 3 is the balance sheet for December 31, 2015
  • 28. 28 Notes for year 0: (1) Beginning cash balance from Cash reserves on startup statements. (2) 1,000 Kaseya Agents from startup statements (3) Insurance and Kaseya Conference enrollment from startup statements (4) From capital equipment list (5) From sources and uses statement Notes for year 1 to year 3: (a) From ending cash balance December - see cash flow statement (b) Office and Marketing Supplies are used during the year and replenished in the last month of each year (c) Estimated from Bizstats.com data - balance sheet for Corporation (d) Values have been reduced by a year of depreciation and increased by new assets purchased - see capital equipment list (e) Remaining loan balance at the end of the first year from the amortization schedule (f) Assumes loan is paid off in the last month of Year 3 (g)Increased by new scripts developed for expansion into scripting for other platforms. Cash build up by Year 3 in readiness for Year 4 investment in bundling scripts into software for sale to non-members or licensing to 3rd parties.
  • 29. 29 Break-even analysis Monthly Service Fee $179.00 Per agent software deployed Customer Registration Fee 3.99 $399/average 100 agents per customer Price per Agent 182.99 Cost per KaseyaIT Agent 51.00 Contribution Margin per agent $131.99 Start-up Expenses $129,953 Fixed/Committed Costs 1,194,591 Total Costs 1,324,544 Break even units 10,035 Agents Breakeven customers 101 Customers Estimated number of customers necessary to breakeven will be achieved in the second quarter of the Year 2.
  • 30. 30 Principal Shareholders’ Resumes Elkin Vasco Sales & Marketing Professional Houston, Texas Area Summary Versatile Sales and Management Professional with broad experience in Consumer Package Goods, Brand Marketing, Product Management, and Team Leadership. Proven track record of success developing and implementing local sales and marketing programs at the key account, wholesale and retail level. Recognized for strong presentation skills and problem solving capabilities. Excellent analytical, computer, motivational, and budget management skills. Attentive to detail. Highly motivated, enthusiastic, focused individual. Experience National Sales Manager - Western USA, Petcurean Pet Nutrition March 2012 – Present (3 months) Houston, Texas Area Canadian Professional Sales Association Key Account & Territory Sales Manager, Altria Public Company; 10,001+ employees; MO; Consumer Goods industry March 2009 – March 2012 (3 years 1 month) Houston, Texas Area On-Premise Manager, MillerCoors Privately Held; 5001-10,000 employees; Food & Beverages industry June 2008 – November 2008 (6 months) Houston, Texas Area On-Premise Manager, Molson Coors Public Company; 1001-5000 employees; Food & Beverages industry January 2007 – June 2008 (1 year 6 months) Houston, Texas Area 2007 South Region On-Premise Manager of the Year 2007 On-Premise Manager of the Year 2007 - MillerCoors LLC On-Premise Executive, Molson Coors Public Company; 1001-5000 employees; Food & Beverages industry May 2006 – December 2006 (8 months) Houston, Texas Area Retail Sales Representative, Coors Brewing Company Privately Held; 5001-10,000 employees; Food & Beverages industry January 2004 – May 2006 (2 years 5 months) Chicago, Illinois Area & Houston, Texas Area Education Houston Baptist University - College of Business and Economics MBA, Management, 2012 (expected) University of Houston, C.T. Bauer College of Business BBA, Marketing, 2003 Activities and Societies: Program for Excellence in Selling Groups and Associations Consumer Goods & Retail Professionals, Member; CPG Sales and Marketing Group, Member; HBU MBA Association, Member; MillerCoors Employees and Alumni, Member; Phillip Morris/Altria – Worldwide Alumni Network, Member; Program for Excellence in Selling Alumni, Member.
  • 31. 31 Pietto Vasco IT Professional Greater Denver Area Skills & Expertise Troubleshooting, IT Management, Security, System Administration, Budget, Networking, Network Administration, Active Directory, Integration, Computer Hardware, Network Security, IT Operations Experience Managing Partner, AccountMetrics, LLC September 2005 – Present (6 years 9 months) Golden, CO IT Manager, Colorado Grande Enterprises September 2005 – February 2008 (2 years 6 months) LAN Administrator, Manpower Technical Services July 2002 – September 2005 (3 years 3 months) Technical Analyst, Oracle Public Company; 10,001+ employees; ORCL; Information Technology and Services industry May 1998 – July 2002 (4 years 3 months) Education Colorado Technical University, 2011 MS, Enterprise Information Systems Colorado Technical University BS and ISM, 2008 Groups and Associations: Casino IT, Casino Professionals, Colorado IT Contractors (Information Technology), Colorado Technical University, MSPmentor, Managed Service Providers Network, Online Adjunct Rolodex, Online Faculty - Adjunct, Full-Time, University Administrators, and Instructional Designers.
  • 32. 32 Fabio Vasco IT Consultant Summary Network administration with more than 10 years of increasing experience in technical leadership, computer technology, project management and problem resolution. Has expertise in networking concepts, TCP/IP protocol, and network security; knowledge of firewalls setup and administration, VPN, Active Directory and core Windows technology and concepts. Proven diagnostic abilities with attention to detail, and ability to work effectively in fast paced environment. Demonstrated abilities to set strategic direction while obtaining superiors results. Above all, I am great at thinking on my feet, solving technical problems deemed a challenge to others, and applying my strong work ethic to help increase my employer’s competitive edge in the marketplace. Experience IT Consultant, ITR Technologies February 2008 – Present (4 years 4 months) Sugar Land, TX Advising businesses on the most cost effective approach to managing their computer and network infrastructure Design, installation and ongoing management of a client's Windows network to ensure a stable and robust platform for their business. Campus Support Technician, Alief Independent School District Educational Institution; 5001-10,000 employees; Primary/Secondary Education industry 2006 – 2008 (2 years) Houston, TX Devoted expertise in managing the high school campuses network and windows infrastructure. Assisted with implementing technological systems to ensure Texas State requirements were satisfied. Storage/Backup Administrator, National Oilwell Varco Public Company; 10,001+ employees; NOV; Oil & Energy industry 2004 – 2006 (2 years) Houston, Texas Area Directed and implemented solutions for archiving and restoring company data for a 200+ server environment in 3 locations as well as provide comprehensive third level support for desktop and server related issues for internal and remote locations. Network Administrator, AcademicPlanet 2001 – 2004 (3 years) Katy, TX Ensured network reliability and responsiveness to over 30,000+ customers by identifying and resolving various server, network, remote access, and routing problems. Network Administrator, PanCanadian Energy Corp 1998 – 2001 (3 years) Houston, TX Education University of Phoenix – Houston MIS and E-Business, 2003
  • 33. 33 Temi Vasco, CPA Accounting Manager Summary US GAAP focused professional with consolidation and financial reporting experienced, focused on continuous improvement. Managed staff of up to 5 with optimal results though cross training and emphasis on clear communication, career development and succession planning. Skills and Expertise Financial Accounting, SEC Financial Reporting Analysis, Defined Benefit Plans Financial Statement Preparation, Internal Reporting and Controls, Process Documentation and Improvements Experience General Accounting Supervisor, GenOn Energy Inc December 2010 – Present (1 year 6 months) Houston, TX Primarily responsible for supervising a staff of 5 employees to ensure a timely and accurate close process, including preparing schedules and information for internal and external reporting and auditors. Senior Accountant I – Debt, LyondellBasell July 2008 – June 2009 (1 year) Account for over $25 Billion of third party debt on a monthly basis and analyze various debt-related accounting transactions and any foreign currency impact. Interpret accounting literature related to debt accounting assist in review of quarterly debt covenant review. Accounting Manager, Telvent North America April 2008 – June 2008 (3 months) Responsible for all general accounting close process and subsidiary reporting in accordance to US GAAP and IFRS. Reduced financial reporting time from 4 days to 1 day through process automation. Principal Financial Reporting Analyst – SEC, Transocean September 2005 – March 2008 (2 years 7 months) Provide accurate, concise and timely financial information in an understandable format while ensuring consistency with other financial information released to the public Senior Associate Auditor, KPMG LLP February 2002 – September 2005 (3 years 8 months) Execute financial statement audit engagements, including SEC filings of Form 10-K, Form 11-K and DOL filings of Form 5500, and evaluate internal controls and compliance with federal laws and regulations, including Sarbanes- Oxley, US GAAP and other reporting standards, including the DOL and ERISA for benefit plan audits. Managing engagement staff within time and budget constraints and research accounting and audit issues and communicate to audit team and clients Education University of Houston MBA, Entrepreneurship, 2013 (expected) University of Houston BBA, Accounting and Finance, 2001
  • 34. 34 Appendix A. Glossary Agent – system monitoring software that generally gather system performance information, e.g., but can also be scripted to perform specific tasks and procedures. Agents are the means by which management systems can automatically or remotely perform management functions. Agents are purchased from Kaseya as needed and installed remotely to customer computers linked to their network. SaaS – Software as a Service in which software and associated data are centrally hosted on the cloud and accessed by users using a server via a web browser. Script/Scripting – system specific commends that are linked to perform automated procedures, tasks and schedules. Scripting is the act of coding commands.
  • 35. 35 B. Market research data (1) Gale Group. (2011). Computer Integrated Systems Design. Encyclopedia of American Industries, Online Edition. Reproduced in Business and Company Resource Center. Farmington Hills, Michigan: Gale Group. Retrieved from http://galenet.galegroup.com.ruby2.uhv.edu/servlet/BCRC. Document Number: I2501400867 (2) U.S. Census Bureau. (2007). EC0754SLLS1 Professional, Scientific, and Technical Services: Subject Series - Product Lines: Product Lines Statistics by Kind of Business for the United States and States: NAICS 54151, United States. Retrieved from http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml (3) Panettieri, Joe. (2011, February 1). ConnectWise-LabTech War Against Kaseya Intensifies. MSPMentor. Retrieved from http://www.mspmentor.net/2011/02/01/connectwise-labtech- war-against-kaseya-intensifies/. (4) Enterprise Management Associates, Inc. (2011, January). Best Practices in Lifecycle Management: Comparing Suites from Dell KACE, Symantec, LANDesk, and Microsoft. Retrieved from http://www.kace.com/resource-center/analyst-reports.aspx. (5) Kaseya. (2012). What we do. Kaseya-Features. Retrieved May 4, 2012 from http://www.kaseya.com/features.aspx . (6) Highbeam Business. (2012). Industry Report: Computer Systems Design Services. Retrieved May 4, 2012 from http://business.highbeam.com/industry-reports/business/computer-integrated- systems-design. (7) Calculated based on 567 Kaseya Ex-Patriots per 10,000 estimated Kaseya customers. Kaseya Ex- Patriots retrieved from http://lipstickonapig.org/profiles/friend/list?page=27 (forum member profiles) and Kaseya customers obtained from Kaseya Fact Sheet retrieved May 4, 2012 from http://www.kaseya.com/download/en-us/brochures/factsheet.kaseya.pdf. (8) Kaseya Ex-Patriots. (2012). Why Switch? Retrieved from http://lipstickonapig.org/forum/topic/search?q=why+switch. (9) Kaseya. (2010, December 9). Kaseya receives patent for technology that delivers dynamic instruction sets to remote devices. Retrieved from http://www.kaseya.com/features/agent- procedures.aspx and http://www.kaseya.com/company/News/en/pr-12092010-Kaseya- receives-patent-for-technology-that-delivers-instruction-sets-to-remote-devices.aspx. (10) Toon Van Beeck. (2011, May). Ten Key Industries That Will Decline, Even After the Economy Revives. IBISWorld: Commercial Insights – Sales and Marketing. Retrieved from http://www.ibisworld.com/Common/MediaCenter/Dying%20Industries.pdf (11)IBISWorld. (2011, May). IBISWorld Identifies Top 10 Fastest Growing Industries. Retrieved from http://www.ibisworld.com/Common/MediaCenter/051611%20Fastest%20Growing%20Industrie s.pdf (12)U.S. Census Bureau. (2009). Business County Business Patterns. Major Industries in the United States by number of employees. Retrieved from http://censtats.census.gov/cgi- bin/cbpnaic/cbpsect.pl.
  • 36. 36 (1) Gale Group_Business & Company Resource Center -- Industry Overview 7373pdf.pdf (2) ExcerptReport_EC0754SLLS1.xlsx (4) Systems-Management-Buyers-Guide[1].pdf C. Price lists from suppliers (c) Pietto Vasco Quote T3 w addons PDF 020112.pdf