MIS SAP Business Plan


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

MIS SAP Business Plan

  1. 1. Target Market ............................................................................................................... 4Our Services ................................................................................................................ 4Target Customers ........................................................................................................ 5Potential Competitors ................................................................................................... 6Pricing .......................................................................................................................... 7Marketing & Advertising Plans & Costs ........................................................................ 7Potential Partners......................................................................................................... 8Company Structure .................................................................................................... 10Key Positions ............................................................................................................. 11The Team at Maple Leaf Solutions ............................................................................ 14Board of Advisors ....................................................................................................... 17Growth in the Maple Leaf Solutions Staff ................................................................... 18Revenue From Employees ......................................................................................... 19Office Space & Costs ................................................................................................. 20Office Technology & Costs......................................................................................... 21
  2. 2. Maple Leaf Solutions’ LLC is comprised of many talented and versatile employees with pastexperiences’ in almost any field imaginable. It is our goal to provide SAP Business One toour customers with top notch customer service and an in depth training seminar. Ourtraining seminars will allow our customers to expand their businesses, which will in turngrow our business through word of mouth. Being a startup company, we are looking tocapitalize on the following goals: 1. Provide a low cost, yet highly effective product. 2.Expand our customer base each of the first five years. 3. Increase profits at the end of everyyear. In order for Maple Leaf Solutions’ to accomplish these goals, we must first piecetogether a strategic plan for success.By locating Maple Leaf Solutions’ LLC in Vancouver we are setting ourselves up forsuccess because of the open market and the vast opportunities available to us. We arestriving to establish a strongly rooted company in Vancouver that is well known for their highlevels of customer service and high quality of product. We believe that our business willenable other local businesses to flourish at little expense to them. Our transition from theold system to SAP Business One will be one of ease due to our phenomenal support staff,and with customer services readily available to our customers, we are confident that oureveryone will be satisfied.Funding Maple Leaf Solutions’ LLC does not appear to pose any problems due to the factthat all seven founders, Ms. Melia R. Pinkas, Ms. Regina B. Goltra, Ms. Anna R. Frye, Mr.Daniel R. Vasinko, Ms. Dawn M. March, Ms. Mara L. Greiner, and Mr. Edward J. Crowe, willequally contribute $30,000 coming to a grand total of $210,000. Furthermore, we arerequesting a bank loan totaling $200,000 for additional startup costs. With our $410,000 wefeel confident in our abilities to exploit the Vancouver SAP Business One market andcapture a large portion of the market share. Below, you can review a five year graph ofprojected yearly figures. 3500000 3000000 2500000 2000000 In ($) Revenue 1500000 Expenses 1000000 Profit 500000 0 -500000 1 2 3 4 5 Year691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  3. 3. It is quite evident that with our bright and dedicated employees we will achieve our thirdgoal, increase profits at the end of every year.Maple Leaf Solutions’ LLC is targeting primarily small to medium sized manufacturing andsupply companies in and around the Vancouver area with no more than 250 employees.With such a large potential customer region we are investing a total of $30,000 in marketingand advertising within the first two years, $15,000 each year. Our world class marketingteam is determined to spread the word of Maple Leaf Solutions’ LLC. Also, along with ouroutstanding marketing and advertising we plan to partner with Small Business’s BritishColumbia, (www.smallbusinessbc.ca), and host seminars for their organization, whileobtaining advertising space on their website. Moreover, we have decided to partner withAutomatic Data Processing, ADP, (http://www.adp.ca/) who is a payroll company. Bypartnering with this payroll company we will alleviate the stress and time spent calculatingour own payroll. Both of our partners, SMBBC and ADP, will provide us with beneficialservices that will allow us to concentrate our focus on our customers and obtaining newcustomers while maintaining a high level of organization within the office.Along with the President Mr. Edward J. Crowe, the Manager of Sales and Marketing Ms.Dawn M. March, the Manager of Administration Ms. Regina A. Goltra, and the Manager ofConsulting Ms. Anna R. Frye, our board of directors will also include ADP’s CEO Mr. GaryButler, Small Business BC’s CEO Mr. Ken Stratford, Stephen Jagger(a local entrepreneurwith expertise in starting a business), Jacques Daniels Shoemaker- Head of ―Leaf Squad‖and a local investment banker. Having such a diverse Board of Directors will ensure that wehave expertise in every vital aspect of the business process. It is our hope to retain theBoard of Directors because we feel that their strong and authoritative presence willencourage effective and efficient work and also help attract new customers through theirprior connections.I would like to end with a quote that our company bases our beliefs on:691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  4. 4. Maple Leaf Solutions is located in Vancouver Canada. Named after British Captain GeorgeVancouver, the city has a population of 578,041, and the metropolitan area has a populationof 2,116,581. This population makes Vancouver the third-largest area in the country, andthe largest city in Western Canada. Vancouver has become a very diverse city, with 52% ofthe population not speaking English as their first language, and 30% being of Chinesedescent. Vancouver is ranked one of the mostlivable cities in the world, and is the only cityto have stayed on this list for five years in arow.Because of the city’s location in the PacificRim, and its many rail road routes, Vancouveris a major industrial center of the country.Forest products and mining companies aresome of the larger industries. In addition,Vancouver’s scenic location makes tourism alarge industry in the city. Vancouver is alsogrowing in software development, film, andbiotechnology.From our location in Vancouver, we plan to provide services to areas throughout BritishColombia as well. With the economy of the region being mostly construction and retailservices, we believe our products and services will do well in the region.Our main product will be selling SAP BusinessOne. This software system is an enterpriseresource planning (ERP) system, and is gearedtowards small to medium business, 50 to 250employees in size. The SAP Business Oneapplication integrates all core business functionsacross your entire company – includingfinancials, sales, customer relationshipmanagement, inventory, and operations. Unlikemany other small business solutions on the market today, SAP Business One is a singleapplication, eliminating the need for separate installations and complex integration ofmultiple modules. Our services will include installation of the software, installation ofupgrades, training for customers’ employees on using the software, support for theprograms, and providing additional hardware and/or software service add-ons as needed. Inaddition to the services mention, we also plan to have a professional IT service known asthe ―Leaf Squad.‖ The Leaf Squad will be available for general information technologyquestions and problems our clients encounter. This option of having IT service outsourcedas opposed to having an IT staff in their own company is a cost efficient option for oursmall-to-medium business clients.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  5. 5. We plan to offer support with our services as well. To start off, we plan to provide supportwith installation for every order. In addition, we assist with upgrades to our clients withlarger employee numbers. Also, we will offer a free training session for the initial installation,and additional sessions can be done for an additional. We will offer this support 5 days aweek, about 10 hours a day. We understand that there may be other times that businessesneed our help, but we do not have the manpower to keep the phone lines open 24/7.Support can be reached through phone, email, and the FAQ on our website.Maple Leaf Solutions will be targeting small to medium sized manufacturing companies.Vancouver has a variety of industries, including mining, biotech, film and software. MapleLeaf will put the majority of its marketing efforts towards these industries. A few targetcustomers are listed below. Hecla Mining Company has over 100 years of experience in mining silver. Their headquarters are located in Coeur d’Alene, Idaho, but they have a sister office in Vancouver, making them an ideal customer for Maple Leaf Solutions. Hecla produced 10.6 million ounces of silver in 2010 alone, with an average cost per ounce of negative $1.46, proving they are experienced and highly developed. Ruden Manufacturing producescustom and standard parts for mining and drillingcompanies. Located in Burnaby, British Columbia, RudenManufacturing is only about eight miles away from MapleLeaf Solutions Headquarters. Ruden Manufacturing hasmany years of experience, and has worked with drillingcontractors and engineers. They have also worked in thegeotechnical and diamond drilling industries. Williams & White, founded in 1957, is a leading manufacturing, equipment, and automation leader. Williams & White specializes in producing saw knives and other cutting tools. They are a part of the forestry industry and the machining industry, making them an ideal customer for Maple Leaf Solutions.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  6. 6. TimberWest was incorporated in1997, and is Western Canada’s largest timberand land management company. Forestrybeing one of the top industries in Vancouvermakes TimberWest an excellent targetcustomer. TimberWest leads the coastalindustry in growing and harvesting timber, anduses the best out of its land. They identifystrategies for both sustainable forest management and real estate. TimberWest values theirpeople, environment, innovation, and success, which makes them a great target customer. The RSC Group is a large and very experienced partner with Microsoft Dynamics, a competitor software of SAP Business One. They havebeen in business since 1989, and have over 800 customers. The RSC Group has an officelocated in Vancouver, which would make it one of Maple Leaf Solutions top competitor. SAP Canada is a direct seller of SAPBusiness One, and a part of the SAP Company. SAPCanada not only sells SAP Business One, but alsoprovides solutions and services. Since SAP Canadasell SAP Business One directly, they will also be alarge competitor to Maple Leaf Solutions. SAP Canada has a training location in Vancouver. Coastal Range Systems is located in British Columbia, and is oneof the fastest growing systems integration competitors in Canada. Coastal Range Systemsis a reseller of SAP Business One, and is both a SAP Business One Gold Partner, and aGold Certified Partner with Microsoft. Since they both sell SAP Business One, and arepartnered with Microsoft, a selling aMicrosoft Dynamics, they may beone of the closet competitors.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  7. 7. The SAP Business One software will cost each customer $3,000 per user. Maple LeafSolutions will gain much of their revenue through services that come along with thepurchase of SAP Business One. Hours spent implementing SAP Business One will varywith each individual customer. Each basic customer will have roughly between 150-200hours per year, while each average customer 300-450 hours per year. A comprehensivecustomer may have up to 1,000 implementation hours per year. Maple Leaf customers willpay about $150 per service hour. Maple Leaf Solutions also offers a unique service, The Leaf Squad. The Leaf Squad offers assistance with computers and networking, hardware and software repair, and assistance with SAP Business One. For customers to utilize Leaf Squad, they must pay a small fee of $20 per month, while additional fees can range from $10 to $500, based on the need and subject of the problem.Maple Leaf Solutions decided to spend about $10,000 of the $15,000 budget on advertisingfor the company, and is spending the additional $5,000 on advertising for Leaf Squad. Theadvertising is split up into two different sections because the advertising for each will bedifferent.Maple Leaf Solutions, in its first two years, will be spending $900 on one radioadvertisement. Maple Leaf Solutions will advertise on 103.5 QM/FM Today’s Soft Rock.Maple Leaf chose to do a radio ad within the first two years of business because we need toget our name out in any way possible. We chose to advertise with a soft rock stationbecause a lot of businesses often have a soft rock radio station playing throughout theiroffices.We also decided to put a lot into ourprint ads. In Business in VancouverWeekly, we decided to take out a fullpage ad in color for the first twoyears. Per year, this totals $1,440.We also bought a half page premiumad for the Business in VancouverWeekly website, at $1,575 per year.In BC Tech, a business magazine, we decided to purchase two half page ads for the year.When purchasing an ad in the magazine, if you buy two, you receive a 15% discount. MapleLeaf Solutions purchased two half page ads with spot color, each costing $2,710. With thediscount, Maple Leaf Solutions ended up paying $4,607 total. BC Tech also offers freeonline advertising with each ad purchased.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  8. 8. We also plan to send out postcard mailings, followed up by personal phone calls. Everyother week, 30 postcards will be sent out to various potential customers. Including printingcosts and postage, $1,137.60 will be spent for the first and second years.Maple Leaf Solutions is also planning to submit our name and a brief company biography toVancouver Small Business (vancouversmallbusiness.ca), an online site that showcasesbusinesses and gives business tips to owners and employees. The advertising throughVancouver Small Business is free.An additional $340 is set aside for any additional postage, or reprints for Maple LeafSolutions’ mailers. In years three through five, advertising on the radio and in thepublications will slightly decrease, while mailers with information to new and perviouscustomers about our products, services, and upgrades will be sent out.Maple Leaf Solutions will also utilize free social media sites such as Facebook and Twitterfor advertising as well. Promotions will often run on these sites—such as 10% off your nextupgrade for the first 5 followers on Facebook—encouraging more followers. Find MapleLeaf Solutions on Facebook at www.facebook.com/mplleafsol and follow Maple LeafSolutions on Twitter at @mplleafsol.The pie chart below shows where all of the advertising funds are going. Radio BC Tech Business in Vancouver Weekly Publication Business in Vancouver Weekly Online Mailers: Printing Mailers: Postage Additional Costs691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  9. 9. Maple Leaf Solutions plans to market Leaf Squad with billboard advertisements and mailersas well. Maple Leaf Solutions will send out the same amount of mailers costing $1,137.60.In addition to doing mailers, Maple Leaf Solutions will also have a few billboard ads.Billboard ads run about $800 per month. We chose to have a billboard ad featuring our Leaf Squad Head Technician, Jacques Daniels Shoemaker, three months out of the year, totaling $2,400. Maple Leaf Solutions also plans to advertise our Leaf Squad in Business in Vancouver Weekly with a quarter page classified ad that will be in 12 issues, costing $567, as well as in BC Tech with a black and white banner totaling $870. The additional $25 will be spent on extra postage and the reprinting of mailers if necessary.Maple Leaf Solutions plans to partner with two excellent businesses in the Vancouver area. Automatic Data Processing offers new technologies andprocesses that are currently shaping the way business is done. ADPis the leading provider of Employee Services in Canada, which wouldmake it a beneficial partner. ADP offers services such as payroll,human resources management, benefits administration, time andlabor management, occupational health and safety, outsourcing, and consulting services.Paired with the services of SAP Business One, Maple Leaf’s target market can haveeverything they need to have continued success within their businesses. This provides―one-stop shopping‖ for Maple Leaf’s target customers. Partnering with ADP Canada willallow customers of Maple Leaf Solutions to focus more on their specific competitive edge. Small Business BC is British Columbia’s premiere resource forknowledge-based business products and services. They offer seminars and otherinformation to small business on all stages of business. Small Business BC also offersservices and products to support growth, productivity, profitability, and assist with newopportunities. Small Business BC is a greatcompany for Maple Leaf Solutions to partner with,because they can conduct seminars with smallbusinesses that have purchased SAP BusinessOne, and can also host seminars for smallbusinesses that are considering purchasing SAPfrom Maple Leaf.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  10. 10. Maple Leaf Solutions chose to operate under the structure of a Limited Liability Company.A Limited Liability Company is a combination of positive components of the corporation andpartnership. This structure was chosen because the partners in the company wanted anequal voice in organizing and maintaining the company, but not equal liability. Themembers of Maple Leaf Solutions have appointed the president of the company to be themain manager of all operations, while maintaining a strong voice among the supportingmembers of the organization. The personal liability of the owners in a Limited LiabilityCompany is limited to the amount of each individual investment by the owners. A partner inthe company is not responsible for other partner’s debts or liabilities.Another reason for the owners of Maple Leaf Solutions to choose a Limited LiabilityCorporation is the pass-through taxation or the lack of double taxation. Income and loss inthe corporation is passed through to its members. There is also a lot of flexibility that goesalong with the tax rules of a LLC. The organization can be taxed either as a sole proprietor,partnership, S-Corp, or corporation. The life of the LLC extends beyond the life of theowner of the corporation, avoiding problematic business termination. Maple Leaf Solutionsbelieves that because of the lack of limitation on owners and partners, future growth andexpansion is a very reachable concept. Another main advantage in choosing a LLC is theease of raising capital through the sale of interests. Through the sale and distribution of theSAP Business One Program and Leaf Squad Service combined with the Limited LiabilityCompany Structure, success of the company is inevitable.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  11. 11. President Edward J. Crowe Manager of Manager of Manager of It Employee Administration Marketing Consulting Jacques Daniels Regina B. Goltra Dawn M. March Anna R. Frye Shoemaker Consultants Salesperson Daniel R. Vasinko Mara L. Greiner Melia R. Pinkas  Responsibilities: o To fulfill his role as main contact person and communicator for all levels of the company o Ensure that the appropriate business strategies are in place and always fully functioning to promote the maximum amount of revenue intake, reduction of cost, and increase the profitability for Maple Leaf Solutions. o Maintain the vision of Maple Leaf Solutions and guide all supporting factors of the vision including;  Human, financial, technological, informational, and material resource availability  The establishment of business relationships, organizational structures, and motivational schemes.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  12. 12.  Responsibilities: o Ensure that the financial situations of Maple Leaf Solutions are always in line with company policy and are maintained at a healthy level to promote revenue, increase profitability, and reduce the costs of the company. o Maintain strong relationships with the investors in Maple Leaf Solutions o Keep members and the Board of Directors up to date with the financial happenings of Maple Leaf Solutions o Be aware of future investments, costs, and revenue boosters for Maple Leaf Solutions o Analyze and craft ideas on how to continuously improve and identify sections of the company that may need advancement  Responsibilities: o Establish the presence, good name and reputation of Maple Leaf Solutions in its target marketing area o Be aware of the needs in the area for SAP Business One products and how to market to the areas in need o Be aware of potential partners and competitors for Maple Leaf Solutions in the target market and surrounding areas o Pave the way for Maple Leaf Solutions to spread its reign in the target area and surrounding areas that hold promise for SAP Business One  Responsibilities: o Be aware of the revenue categories in the company and how to adjust these categories to specific customer needs o Identify how to fully satisfy customers with their SAP Business One Programs by;  Providing the organization of implementation, upgrade, and support services  Maintain all components of hardware and software  Providing prompt online, direct, and telephone customer service691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  13. 13. &  Responsibilities o Monitor activities of the company particular to the branch of the company that they are most familiar with (i.e. marketing, finances, etc) o Use their observances to assist and improve customer satisfaction and provide hands-on help to customers o Report back to branch of Maple Leaf Solutions that they are working with and offer sound advice on the needs of the customers o Study other successful competitors in the area and assess the similarities and differences between those competitors and Maple Leaf Solutions  Responsibilities o Support advertising, consulting, and management techniques in the target market area. o Market Maple Leaf Solution services to the best of their ability to potential customers o Maintain the support of current Maple Leaf Solution customers o Work with the Manager of Sales and Marketing to identify new customers and how to reach them by spending time in the physical location of the customers and gaining insight into the area’s trends and needs691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  14. 14. Mr. Crowe graduated Harvard School of Law where he received his MBA with a focus on finance and a minor in business administration. Upon graduation, Edward decided to take a year spent in the suburb of Latrobe, Pennsylvania where his grandmother lived. Here is where Saint Vincent College sits, and where Edward met Anna Frye and Dawn March. Edward kept in touch with both women, and thought of them when he created the idea of Maple Leaf Solutions five years later. Their specific areas of study were diverse, yet complimented each other and the idea of a SAP distributor quite well. Mr. Crowe also came up with the idea of the ―Leaf Squad‖. Edward is veryenthusiastic about his company and is prepared to take Maple Leaf Solutions to newheights.Regina Goltra graduated from the University ofSantos Tomas in Manila, Philippines. Shegraduated at the top her class with an MBA infinance and accounting. Regina moved toVancouver after working two years at a small textilescompany in Davao, Philippines. Her childhood friend,Dawn March, told her of the opportunity with MapleLeaf Solutions. Regina, wanting a change ofscenery and climate, seized the opportunity. Ms.Goltra excels in her financial skills and is excited tobring Maple Leaf Solutions to the optimal level ofprofitability. Anna Frye joined the founders of Maple Leaf Solutions after five years of being in the consulting business. Miss Frye graduated with a Bachelor’s degree in Business Management a Master’s Degree in Operational Excellence from Saint Vincent College. Anna spent her previous five years as the Manager in Consulting for a small business outside of Ontario, her hometown, called Humberview Insurance Brokers. Humberview is where Anna was introduced to the SAP Business One program and what inspired her to further her journey in business through the distribution of this program. Anna hopes to help Maple Leaf691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  15. 15. Solutions excel in areas such as customer satisfaction, increased profits, and growth. Shealso would like to see the Leaf Squad take over its main competitors and further satisfy SAPBusiness One users.Dawn March graduated from Saint Vincent Collegewith a degree in marketing and a minor inentrepreneurship. For the first three years aftergraduation, Dawn worked in advertising at TheLimited. While working there, Dawn met her futurehusband, a player for the Vancouver Canucks. Forthe two years prior to joining Maple Leaf, Mrs.March got married and had her first child. Thehappy family decided to settle down in Vancouverafter hearing about the opportunity at Maple Leaffrom Edward Crowe. Dawn is eager to get thecompany name out to the public as well as expandupon the Leaf Squad. Dawn is an asset to the team because of her passion for thecompany. As a freshly graduated marketing major from Northwestern University, Mara Greiner was an obvious asset to the Maple Leaf Solutions team. Mara has a keen skill for knowing what sells. Throughout her education, Mara held internships at Dell and Hewlett- Packard. Both of these experiences gave Mara the skills and knowledge that she needs for salesperson position at Maple Leaf Solutions. Mara stands alongside Mrs. March with the advertising end of the spectrum and also with product placing.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  16. 16. Melia Pinkas came to Maple Leaf after graduatingfrom Columbia University with a major in HumanRelations and Information Technology. After a yearwith SAP Canada, Melia decided to take on thechallenge of establishing Maple Leaf Solutionsalong with the other founders. Melia has excellentbackground with SAP Canada and great ideas forhow to satisfy Maple Leaf’s customers. Melia alsodirects the Leaf Squad and organizes its actions. Daniel Vasinko was a graduate from the University of Cambridge with a MBA in Information Technology and a major in management. Daniel moved back to the states to live closer to his family when he saw an ad for a consulting and IT specialist position at Maple Leaf. Daniel recognized his opportunity to join a very promising business and also an opportunity to use his expertise to advance a fresh company.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  17. 17. President of Maple Leaf Solutions Manager of Administration at Maple Leaf Solutions Manager of Sales and Marketing at Maple Leaf Solutions Manager of Consulting at Maple Leaf Solutions Goaltender for Vancouver Canucks, runs a small Hockey Apparel and Equipment shop in Vancouver CEO of ADP Payroll Services, HR Solutions, Tax Compliance, and PEO, a partner of Maple Leaf Solutions CEO of Small Business BC, a partner of Maple Leaf Solutions Head of ―Leaf Squad‖ Local entrepreneur, asset to Maple Leaf Solutions because he is familiar with the area and how to kick off a business. Stephen has been starting businesses since high school, one of which is an outsourcing business. This business provides high level outsourced personnel to business owners and managers across North America. Stephen has connections with the Vancouver Sun, has had publications in The Wall Street Journal, The Ottawa Citizen, and The Vancouver Courier. Maple Leaf Solutions is hoping to add onto the Board of Directors one of the bankers.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  18. 18. During the first year at Maple Leaf Solutions, the founders have decided that it would bemost cost efficient to only employ the president of the company, the three managers(manager of marketing and sales, manager of administration, and manager of consulting),two consultants, one sales person, and the head of our Leaf Squad staff. Because of howquickly the revenue that Maple Leaf Solutions expects to obtain will grow, one moresalesperson will be added in the second year. This way, the salesperson can assist themanager of sales and marketing and the current salesperson and bring new ideas to theteam. In the third year of operation, one more salesperson will be added and three moreconsultants will come on board.The new consultants to be hired will be people that possess deep knowledge of the SAPBusiness One program, and who are very familiar with new trends and opportunitiesconcerning SAP. From this point on, consultants and salespersons will be added asnecessary. Maple Leaf Solutions also believes that it’s important to consider the possibilityof adding on additional members to the Leaf Squad Staff. These people will specialize indevelopment, installation, modification, maintenance, monitoring, and the integration of SAPBusiness One into our customer’s systems, as well as assisting them with any type ofhardware or software troubles that they may encounter. This will give Maple Leaf Solutionsan edge on the competition to have Leaf Squad members with advanced technologicalknow-how within the company. On the following page is an example of what the expensesof the employees could potentially look like by year five of operation: Employee Costs Employees Year 1 Year 2 Year 3 Year 4 Year 5 Edward J. Crowe $117,000 $119,340 $121,727 $124,161 $126,645 Regina Goltra $75,000 $76,500 $78,030 $79,591 $81,182 Dawn March $77,250 $78,795 $80,371 $81,978 $83,618 Mara Greiner $65,300 $66,606 $67,938 $69,297 $70,683 Salesperson $0 $66,606 $67,938 $69,297 $70,683 Salesperson $0 $0 $67,938 $69,297 $70,683 Salesperson $0 $0 $0 $69,297 $70,683 Anna Frye $80,000 $81,600 $83,232 $84,897 $86,595 Melia Pinkas $60,000 $61,200 $62,424 $63,672 $64,946 Daniel Vasinko $60,000 $61,200 $62,424 $63,672 $64,946 Consultant $0 $0 $62,424 $63,672 $64,946 Consultant $0 $0 $62,424 $63,672 $64,946 Consultant $0 $0 $62,424 $63,672 $64,946 Consultant $0 $0 $0 $63,600 $64,872 Consultant $0 $0 $0 $63,600 $64,872 Consultant $0 $0 $0 $0 $63,600 IT employee $65,000 $66,300 $67,626 $68,979 $70,358 Total Salaries $599,550 $678,147 $946,920 $1,162,355 $1,249,202691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  19. 19. Maple Leaf Solutions employs top-of-the-line people to better serve and understand ourcustomers. Each employee has significant background and training in their fields, and knowhow to put their knowledge into action. Because of the confident employees, excellentcustomer service, and all around satisfaction with the product and support, Maple LeafSolutions feels that it is fair of them to require certain costs for their services.The first stage in the process of getting a customer started with SAP is implementation.Depending on the customer, the hours spent on implementation will vary. With a basiccustomer, implementation of SAP Business One, per year, would be about 150-200 hours.For an average customer, it would be around 300-450 hours, and for the comprehensivecustomer, the hours spent on implementation per year could extend up to 1000 hours.There are four stages involved in implementation, which is why the process can be verytimely. The four stages are as follows; project initiation, system design and configuration,user acceptance, and going live. Anytime a customer wants to upgrade their SAP program,this calls for 400-500 hours for the comprehensive customer, 150-250 hours for the typicalcustomer, and 75-100 hours for the basic customer.Maple Leaf Solutions also provide support to all of theircustomers who are using SAP. These support hoursvary as follows; 350 hours yearly for the comprehensivecustomer, 150 hours for the typical customer, and 50-75hours for the basic customer. The support system andsale of services is what generates Maple Leaf Solution’sbulk income. It costs Maple Leaf customers $150 perservice hour. Maple Leaf Solution’s second service, TheLeaf Squad, specializes in anything from computers andnetworking, hard and software repair, TV repair, cellphone repair, virus and spyware removal, computer tune-up, major appliance repair, and data recovery. Thecharge to customers to utilize the Leaf Squad is a basecost of $20 per month. On top of this charge lie feesdependant on the job performed. These additional feescan range from $10 to $500. The customers are alsoresponsible to pay for any purchased tools or equipmentspecific to their problem.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  20. 20. $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 Employee Costs $1,000,000 Revenue $500,000 $0 1 2 3 4 5 YearThe chart above demonstrates how the revenue brought in to Maple Leaf Solutionschanges with the number of employees added to the team. The revenue per year increasesat a faster rate than the employee costs per year.691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  21. 21. After deciding to make Vancouver Maple LeafSolutions’ home town and obtaining a business permitfor the area, headquarters became located at 691 East65th Ave Vancouver, BC, Canada in a recently built2,800 square foot building consisting of sufficient officespace for the president and his team of employeesalong with a built-in warehouse to house supplies.Each employee has their own personal desk to work atwhen not traveling to install, service or upgrade SAPBusiness One software for future and current customers. Maple Leaf Solutions is customerfriendly and welcomes clients to visit its headquarters for consulting or other services but isopen to and promotes coming to its customers. This program allows better integration intocustomers’ companies and allows Maple Leaf Solutions’ teams to better understand theclients’ business needs. Square Feet Price Per Sq. Ft. Monthly Fee Yearly Fee 2,000 (office) $16.75 $3,908.00 $46,900.00 800 (warehouse) Monthly Fee Yearly Fee Electricity $175.00 $2,100.00 Internet/Phone Lines $198.95 $2,387.40 Fax $24.95 $299.40 Total $398.90 $4,786.80$500.00 fee Quantity Item Unit Costs Total Costs 7 Office Chairs $200.00 $1,400.00 7 Office Desks $625.00 $4,375.00 2 Reception Chairs $125.00 $250.00 1 Conference Table $275.00 $275.00 4 Conference Chairs $100.00 $400.00 Total Costs $6,700.00691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  22. 22. Technology is a major part of Maple Leaf Solutions business therefore investing in current technology used by employees is a must. In order to stay current, all computer technology will be refreshed and upgraded every three years. With the exception of the president, each employee is given the same laptop along with a mouse for desk use. Also every employee including the president is given his or her own phone in their office. As for the president’s computer, he is given a laptop that has the ability to support more advanced or larger amounts of technology and data. He is also given a docking system for the laptop, a separate monitor, keyboard and mouse for desk use when in the office. Each laptop computer will run Microsoft Office Home and Business software which contains essential programs to create presentations, log data and communicate with co-workers and customers via email. Aside from personal computers Maple Leaf Solutions will have faxing, copying and wireless printing along with a server that includes data backup all within the office building.Quantity Brand System Unit Price Total Price E2011H 20-inch Widescreen Flat Panel Monitor $139.00 $139.001 Dell (President)1 Dell 104 Quiet Key Keyboard (President) $20.99 $20.997 Dell MS111 USB Optical Mouse (All Employees) $16.99 $118.931 Dell Latitude E5520 Laptop (President) $549.00 $549.001 Dell Docking Station (President) $129.00 $129.006 Dell Vostro 3400 Laptop (Employees) $489.00 $2,934.00 Office Home and Business 2010 Software (All $1,116.004 Microsoft Computers) $279.001 Dell PowerEdge R515 2U Rack Server $1,089.00 $1,089.001 Microsoft SBS 2011 Essentials Server Software $545.00 $545.001 Lexmark C543dn Printer (Presidents office) $299.00 $299.001 Lexmark Prevail Pro705 Fax Machine (Presidents office) $129.00 $129.00 X544dn Copier/Printer/Fax Machine (Employee $799.00 $799.001 Lexmark use)1 TalkSwitch TalkSwitch 840vs Phone Server $1,495.00 $1,495.007 TalkSwitch TS-450i IP Phones (All Employees) $214.00 $1,498.00 Estimated Cost for Computer Technology $10,860.92 691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  23. 23. For Maple Leaf Solutions to begin our business of selling SAP Business One, we are askingthe bank for a loan of $200,000 to cover all our start-up costs. As a team we are investing atotal of $210,000 with each person investing $30,000. We will re-pay this loan over a periodof five years with an interest of 8%. We will use this money to start our corporation inVancouver, Canada, install telephone and internet in our office, provide office equipment forour current employees, and furnishing our office.We will incur losses during our first year as a new corporation starting. However, starting inthe second year, we will begin to see revenues exceeding expenses, resulting in profits bythe end of our second year of production and the years following. Revenue Growth $3,500,000 $3,000,000 Revenue ($) $2,500,000 $2,000,000 $1,500,000 $1,000,000 Revenue $500,000 $0 1 2 3 4 5 Year Expense Growth $1,800,000 $1,600,000 $1,400,000 Expenses ($) $1,200,000 $1,000,000 $800,000 $600,000 Expenses $400,000 $200,000 $0 1 2 3 4 5 Year691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  24. 24. $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 Profit ($) $600,000 Profit $400,000 $200,000 $0 ($200,000) 1 2 3 4 5 ($400,000) Year 3500000 3000000 2500000 2000000 Revenue In ($) 1500000 Expenses 1000000 Profit 500000 0 1 2 3 4 5 -500000 Year691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  25. 25. The following Sales Metrics show the four quarters for the first year of business for Maple Leaf Solutions. We will sell to our first typical customer in the second quarter of the year. Typical customers average about ten users per customer. We expect to sell again to a typical customer through the third and fourth quarter as well as a basic customer in the fourth quarter. These customer projections are used to project Maple Leaf Solutions’ revenues and expenses for the first year of operations. Year1 Q1 Year1 Q2 Year1 Q3 Year1 Q4 Year 1 TotalSales Metrics New Customers 0 1 1 3 5 Basic 0 0 0 1 1 Typical 0 1 1 2 4 Comprehensive 0 0 0 0 0 Average Users Basic 4 4 4 4 4 Typical 9 9 9 9 9 Comprehensive 19 19 19 19 19 691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  26. 26. Our profit and loss statement shows that we incurred no profits during the first quarter of operations due to lack of customers. However, since Maple Leaf Solutions are still incurring expenses we will operate at a net loss. Also in the second, third, and fourth quarters we will operate at a net loss due to all of our expenses we have, even though we have developed some customer relationships. Our costs exceed our revenues. Projected Profit and Loss Year 1Revenues: Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total SAP Business One Software: Basic $0 $0 $0 $12,000 $12,000 Typical $0 $27,000 $27,000 $54,000 $108,000 Comprehensive $0 $0 $0 $0 $0 Total SAP Business One Software $0 $27,000 $27,000 $66,000 $120,000 Implementation Services: Basic $0 $0 $0 $22,500 $22,500 Typical $0 $60,000 $60,000 $120,000 $240,000 Comprehensive $0 $0 $0 $0 $0 Total Implementation Services $0 $60,000 $60,000 $142,500 $262,500 Upgrade Services: Basic $0 $0 $0 $0 $0 Typical $0 $0 $0 $0 $0 Comprehensive $0 $0 $0 $0 $0 Total Upgrade Services $0 $0 $0 $0 $0 Support Services: Basic $0 $0 $0 $0 $0 Typical $0 $0 $3,750 $3,750 $7,500 Comprehensive $0 $0 $0 $0 $0 Total Support Services $0 $0 $3,750 $3,750 $7,500 IT Service $0 $22,000 $31,000 $40,000 $93,000Total Revenues $0 $82,000 $94,750 $186,250 $363,000 691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  27. 27. Qtr 1 Qtr 2 Qtr 3 Qtr 4 TotalOperating Expenses: SAP Business One Software: Basic $0 $0 $0 $8,000 $8,000 Typical $0 $18,000 $18,000 $36,000 $72,000 Comprehensive $0 $0 $0 $0 $0 Total SAP Business One Software $0 $18,000 $18,000 $44,000 $80,000 Services Costs: $66,250 $66,250 $66,250 $66,250 $265,000 Sales and Marketing: $40,638 $40,638 $40,638 $40,638 $162,550 General and Administration: $29,250 $29,250 $29,250 $29,250 $117,000 Accounting and Legal: $18,750 $18,750 $18,750 $18,750 $79,500 Rent and Utilities: $14,459 $12,375 $12,375 $12,375 $51,584 Interest Expense: $4,000 $4,000 $4,000 $4,000 $16,000 Depreciation: $807.15 $851.50 $851.50 $851.50 $3,406 Office Supplies $620 $620 $620 $620 $2,480 Insurance $730 $730 $730 $730 $2,920 Costs to Incorporate $150 $0 $0 $0 $150Total Operating Expenses: $175,654 $191,464 $191,464 $217,464 $780,590Profit/(Loss) ($175,654) ($109,464) ($96,714) ($31,214) ($417,590) Shown below are Maple Leaf Solutions’ sales metrics for the first five years of operation. Maple Leaf Solutions steadily develops more customers with our first comprehensive customer joining us in our second year. We will consult five clients in the first year, eight in the second year, twelve in the third year, fourteen in the fourth year, and eighteen in the fifth year. Projected Profit and Loss Five Year Year 1 Year 2 Year 3 Year 4 Year 5 Sales Metrics New Customers 5 9 12 14 18 Basic 1 2 3 4 5 Typical 4 6 8 8 10 Comprehensive 0 1 1 2 3 Average Users Basic 4 4 4 4 4 Typical 9 9 9 9 9 Comprehensive 19 19 19 19 19 691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  28. 28. As we previously stated Maple Leaf Solutions incurs a net loss during the first year due to all of the startup-up expenses. However, Maple Leaf Solutions will first realize a profit by the end of year two as shown on the profit and loss statement shown below and on the next page. Our profits will slowly but steadily increase throughout the next three years. By the end of the fifth year we have projected a profit of $1,460,800. Our cumulative profits for all five years are approximated as $2,574,546. Projected Profit and Loss Five YearRevenues: Year 1 Year 2 Year 3 Year 4 Year 5 SAP Business One Software: Basic $12,000 $24,000 $36,000 $48,000 $60,000 Typical $108,000 $162,000 $216,000 $216,000 $270,000 Comprehensive $0 $57,000 $57,000 $114,000 $171,000 Total SAP Business One Software $120,000 $243,000 $309,000 $378,000 $501,000 Implementation Services: Basic $22,500 $45,000 $67,500 $90,000 $112,500 Typical $240,000 $360,000 $480,000 $480,000 $600,000 Comprehensive $0 $150,000 $150,000 $300,000 $450,000 Total Implementation Services $262,500 $555,000 $697,500 $870,000 $1,162,500 Upgrade Services: Basic $0 $0 $9,000 $18,000 $27,000 Typical $0 $0 $120,000 $180,000 $240,000 Comprehensive $0 $0 $0 $75,000 $75,000 Total Upgrade Services $0 $0 $129,000 $273,000 $342,000 Support Services: Basic $0 $20,250 $40,500 $67,500 $101,250 Typical $7,500 $150,000 $270,000 $390,000 $540,000 Comprehensive $0 $45,000 $90,000 $180,000 $315,000 Total Support Services $7,500 $215,250 $400,500 $637,500 $956,250 IT Service $93,000 $100,000 $132,000 $145,000 $175,500Total Revenues $483,000 $1,113,250 $1,668,000 $2,303,500 $3,137,250 691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  29. 29. Year 1 Year 2 Year 3 Year 4 Year 5Operating Expenses: SAP Business One Software: Basic $8,000 $16,000 $24,000 $32,000 $40,000 Typical $72,000 $108,000 $144,000 $144,000 $180,000 Comprehensive $0 $38,000 $38,000 $76,000 $114,000 Total SAP Business One Software $80,000 $162,000 $206,000 $252,000 $334,000 Services Costs: $265,000 $270,300 $462,978 $599,438 $675,026 Sales and Marketing: $162,550 $232,007 $304,185 $379,166 $386,349 General and Administration: $117,000 $119,340 $121,727 $124,161 $126,645 Accounting and Legal: $79,500 $76,500 $78,030 $79,591 $81,182 Rent and Utilities: $51,584 $42,832 $44,116 $45,440 $46,803 Interest Expense: $16,000 $16,000 $16,000 $16,000 $16,000 Depreciation: $3,229 $3,382 $3,997 $5,377 $5,838 Office Supplies $1,606 $1,606 $1,606 $1,606 $1,606 Insurance $3,000 $3,000 $3,000 $3,000 $3,000 Costs to Incorporate $150Total OperatingExpenses: $779,619 $926,967 $1,241,639 $1,505,779 $1,676,450Profit/(Loss) ($296,619) $186,283 $426,361 $797,721 $1,460,800 $2,574,546 691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  30. 30. The ending balance in Maple Leaf Solutions’ bank account after year one will be $60,467. The bank loan of $200,000, our total team investment of $210,000, and our first year revenues of $483,000 will be adequate enough to cover the large startup costs of starting a SAP Business One business. Our cash outflows will increase in the second year due to not having large equipment expenses and our increase in sales. With this said, our cash account will balance to $209,364. By the end of year five our cash balance will be approximately $2,777,179. Projected Cash Flow Forecast Five Year Year 1 Year 2 Year 3 Year 4 Year 5Opening Balance $0 $60,467 $209,364 $596,649 $1,352,845 Owner Capital Invested $210,000 $0 $0 $0 $0 Bank Loan $200,000 $0 $0 $0 $0 Income / Revenues $483,000 $1,113,250 $1,668,000 $2,303,500 $3,137,250Total Cash Inflows $893,000 $1,173,717 $1,877,364 $2,900,149 $4,490,095Cash Outflows SAP Business One Software: $80,000 $162,000 $206,000 $252,000 $334,000 Services Costs: $265,000 $270,300 $462,978 $599,438 $675,026 Sales and Marketing: $162,550 $232,007 $304,185 $379,166 $386,349 General and Administration: $117,000 $119,340 $121,727 $124,161 $126,645 Accounting and Legal: $79,500 $76,500 $78,030 $79,591 $81,182 Rent and Utilities: $51,584 $42,832 $44,116 $45,440 $46,803 Interest + Principal: $56,000 $56,000 $56,000 $56,000 $56,000 Machinery & Equipment: $16,142.92 $768.00 $3,072.00 $6,903.00 $2,304.00 Office Supplies $1,606 $1,606 $1,606 $1,606 $1,606 Insurance $3,000 $3,000 $3,000 $3,000 $3,000 Costs to Incorporate $150Total Cash Outflows $832,533 $964,353 $1,280,715 $1,547,305 $1,712,916Year Ending Balance $60,467 $209,364 $596,649 $1,352,845 $2,777,179 691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca
  31. 31. In the first year, Maple Leaf Solutions’ net loss is covered by our initial investment and ourbank loan. These will be our only liabilities so our equity section of the balance sheet will be$73,381, this will equal our total asset (cash balance plus the book value of our officeequipment and technology). By the end of the fifth year our equity will be $2,784,546 andour bank loan of $200,000 plus eight percent interest will be paid off. Therefore, Maple leafSolutions will continue to grow without this liability and continue our service of providingSAP Business One software and IT services in the Vancouver region. Projected Year Ending Balance Sheets Five Year Year 1 Year 2 Year 3 Year 4 Year 5 Assets Current Assets Bank Account $60,467 $209,364 $596,649 $1,352,845 $2,777,179 Non-Current Assets Machinery & Equipment Opening Balance $0 $12,914 $10,300 $9,376 $10,901 Additions $16,142.92 768 3072 $6,903.00 2304 Deprec. For Year $3,229 $3,382 $3,997 $5,377 $5,838 Net Book Value $12,914 $10,300 $9,376 $10,901 $7,367 Total Assets $73,381 $219,664 $606,025 $1,363,746 $2,784,546 Equity Retained Earnings $0 ($296,619) ($110,336) $316,025 $1,113,746 Profit/Loss ($296,619) $186,283 $426,361 $797,721 $1,460,800 Owner Capital $210,000 $210,000 $210,000 $210,000 $210,000 Bank Loan Opening Balance $0 $160,000 $120,000 $80,000 $40,000 Additions $200,000 $0 $0 $0 $0 Paid $40,000 $40,000 $40,000 $40,000 $40,000 Balance $160,000 $120,000 $80,000 $40,000 $0 Total Equity $73,381 $219,664 $606,025 $1,363,746 $2,784,546691 East 65th Ave Vancouver, BC  1-800-MPL-LEAF  mplleafsolutions@gmail.com  mapleleafsolutions.ca