MT499_Final_Business_PLan_Juliette_Escalante

Business Plan
Titan Recovery
Bachelors Capstone Final Project
Juliette R. Escalante
03/08/2016
MT499: Unit 10 Assignment
N. Boyer

Table of Contents
........................................................................................................................................................9
Section 1: Executive Summary (Business Description)................................................................10
Section 2: Code of Conduct...........................................................................................................13
Section 3: Operations.....................................................................................................................14
Section 4: Marketing Plan.............................................................................................................18
Section 5: Information Technology...............................................................................................26
Section 6: Financial Plan...............................................................................................................30
Looking at the start-up summary for Titan Recovery, 750,000.00 in cash is needed to assist with
startup and expand the business. This will include the purchase of 5 trucks, hiring 5-8 drivers,
and hiring 2 office workers. The company also needs 150,000.00 held in cash...........................30
.......................................................................................................................................................30
Income statements is a key aspect also called a profit/loss statement, this statement shows a
summary of income and expenses regarding the company. The balance sheet statement shows all
the company’s assets minus the liabilities, and also includes equity in the company, where both
of these figures should balance out. Looking at the income statement and balance sheet the data
the figures were compiled over a three year period where sales are expected to grow 20% during
2017 and 2018, the gross margin is expected to stay at 65% and operating expenses are expected
20% annually. (Spreadsheets in appendix). The break-even analysis shows the company is
expecting 152,000.00 a month for break-even forecast. Sales point is at 35% gross margin and
53,200.00 monthly operating costs. ..............................................................................................31
Part-II.............................................................................................................................................32

The cash flow statement shows how much actual cash goes into and out of the company. The
key components of the cash flow statement include operation expenses, investment activities,
financial activities and the break-even point of the business. The operating activities show
whether or not a business can turn a profit over a time frame. Losses on this statement show the
company will have financial challenges which will not allow for growth. ..................................32
Investment activities are a huge expense on the cash flow sheet that reflects purchasing of
equipment, property and long-term assets. Financing activities include any external loans paid by
the company, which affects net profit/loss to the bottom line. The break-even point of the cash
flow statement show when the company reaches a point where the income stabilizes and the
company is able to cover all of their obligations...........................................................................32
The importance of a cash flow statement is the major responsibility of the company to maintain a
sufficient balance of cash at all times, which will enable the company to meet its needs. The
main reason to creating a cash flow statement is to show payments and receipts o the company
over a period of time. Over all the cash flow statement shows the correct picture of a highlighted
timeframe of inflows and outflows of cash related to operating expenses, investment activities,
financial activities and the break-even point of the company.......................................................32
The best way to perform a cash flow statement analysis is using the direct method when
presenting information to lenders and stakeholders. The direct method sorts the company’s
transactions and puts them in a categorized summary dealing with cash inflows/outflows. The
direct method also uses cash flow from the operations section rather than the accrual accounting
figures. When considering potential problems when it comes to the cash flow statements there
are several concerns. .....................................................................................................................33
2

The primary issue faced by most companies dealing with cash flow statements is the failure of a
profitable company due to its inability to pay bills when running out of cash. When it comes to
growth the accounts receivables grow, but cash stays the same. This happens when outflows
exceed inflows and end with negative cash flows. Aging of accounts receivables is another issue
a company can face. ......................................................................................................................33
This pertains to the time frame of unpaid invoices of customers this will have a negative impact
on the company long term. Finally, having too much debt puts a strain on the company’s overall
cash on hand. If a constant revision of the cash flow statement is not done regularly the company
will not know when debt is diminishing the cash on hand............................................................33
The cash flow statement for Titan Recovery is broke down into monthly projections for 2016.
The areas listed in the cash flow statement include cash from operations, cash received,
expenditures, and any additional cash spent. In order to receive the total cash balance all of the
sections are added together to gain the final monthly balance according to the cash flow
overview for the 2016 period from Part-I......................................................................................33
The cash flow statement shows a three year forecast for Titan Recovery. This statement includes
the cash from operations, cash spent on operations and additional cash spent. The net cash flow
is calculated by subtracting the cash received from the cash spent. Then to gain the cash balance
you subtract the funds spent on operation from the cash spent on expenditures to gain the final
cash balance. This was done using the information in Part-I over the 3 yr. period. ....................34
Section 7: Management Summary.................................................................................................35
Titan Recovery is a sole-proprietor, with this in mind the management team is made up of the
owner/qualified office manager, and the senior field agent. When it comes to outside sources
assisting the company this include an accountant, a marketing agent and a lawyer to represent the
3

company’s legal aspects. Titan Recovery utilizes a flat management structure, where everyone
interacts as peers, with different responsibilities/salaries. All members of the team are
empowered to make vital decisions within their area of responsibilities. Keeping in mind, the
most important/impactful decisions are still made by the owner /office manager. ......................36
At, Titan Recovery the most important aspect is leadership and its effectiveness. The leadership
team at Titan Recovery incorporates the following aspects on a daily basis to perform effectively
by setting standards, acting fairly, paying fairly, choosing the right staff, empower employees,
acknowledge contributions and the list goes on. As the business founder, the owner is subjected
to two different roles that can be challenging times when trying to balance employee
responsibilities and the authority to maintain standards to run a successful company. ...............36
Titan Recovery utilizes a team concept of group dynamics. Being the manager is a responsibility
that has a major impact on the success of the company. The manager not only takes full
responsibility of mistakes, is not afraid of criticism and encourages an open door policy to lead a
productive team. A disadvantage is when poor managers are in this position can result in a
dysfunctional team where conflict, blame and problematic employees have a negative impact on
the overall success of the company...............................................................................................36
Some key areas when considering strengths and weaknesses dealing with this type of group
dynamics may include relationships, culture trust and roles/responsibilities. When it comes to
relationships, separation has to be made dealing with friendships which can directly impact the
team overall. This aspect can go either way looking at the nature of the relationship and the
power of the relationship. On the other hand this provides a strong bond between employees
which impacts positive moral and increases productivity in the working environment. (Benjamin,
n.d.)................................................................................................................................................37
4

Different cultures in teams have their pros and cons as well. The company culture within Titan
Recovery allows all employees to be part of the overall success of the business. This culture
offers several positive aspects including flexible schedules to manage work/family live; the
company gives back to the community through volunteer work and fundraising events. The
management team is very accessible to deal with and they offer assistance for growth planning to
allow all employees to advance within the company. The last aspect is the company allows all
employees the reward of owning a piece of the company with the utilization of profit sharing...37
There are different approaches and ideas for solving issues which helps to reach common goals
from different perspectives. The downside to this aspect is communication. This is a huge
concern when team members are multinationals or operating in different countries where
roles/responsibilities maybe an issue. At this point a manager should create a clear understanding
of who is responsible for what activities for the company and lower the level of
miscommunication. Titan Recovery developed a team specifically for this problem. The team is
made up of three employees: the manager, field agent and the head spotter. Each week a meeting
is held to discuss issues and gain insight from all levels of the staff to correct them and keep the
company successful. .....................................................................................................................37
Trust is a huge part of having a successful management team. Teams that have a mutual trust and
respect can accomplish goals faster than a team that is untrustworthy and each team member tries
to micromanage the other. When team members trust each other they make the correct decisions
that make the company successful for the future. Trust comes over time and even though it starts
out as a weakness it will soon turn into strength...........................................................................38
Finally, roles/responsibilities are clearly defined for each team member. The manager/office
agent oversees all employees, staffing duties, and skips tracing duties. This individual also
5

creates the repo portfolio for each client, and then delegates duties to lower level employees to
carry out the plan. The senior field agent/driver oversees field agents, presents the repo portfolio
to staff and carries out the execution of the repo plan. This allows the team to function
independently, but with the understanding each other’s part coincides with the others to reach
one goal. This over time will allow for separation, but can be a negative impact in the event the
team member has to cover another’s daily duties. To strengthen this issue a manager can create a
cross training program where there is a monthly rotation for the employees. The philosophy of
effective communication is effective when utilization of the “7 Cs” of communication is
incorporated into everyday functions. (Tomasco, 2016).The “7 C’s” includes completeness,
conciseness, consideration, concreteness, clearness, courteous, and correctness. (Tomasco,
2016)..............................................................................................................................................38
The main function is to exchange information, viewpoints/feedback, and communication serves
as a strategic purpose. Excellent communication by management assists with transparency in the
workplace, trust/respect between upper management and lower level employees with a culture
that allows employees to have a voice of their own. Good communication within a company
allows for its employees to hear pertinent information directly from senior management.
(Tomasco, 2016)............................................................................................................................39
Having a strong leadership and management team creates an excellent company culture. “The
corporate culture is made up of attitudes, experiences, beliefs, and values of all employees within
the company.”(Abrams, 2012). When having an excellent company culture boosts the
employee’s loyalty, assists with recruiting processes, attracts potential customers, creates a
decision-making environment and establishes an overall positive reputation. One company has a
6

structure called “Five Principles” which includes transparency, five-hive management,
consensus, service, and performance. (Inc.com,2010)..................................................................39
“Transparency means that, with the sole exception of private personal matters and compensation,
there are no secrets in the company. “Five-hive” management means that all workers are
considered equals. The core value of “consensus” means that all business decisions are made by
agreement arrived at both by small teams and for larger decisions by the entire company as a
whole. Service is the single most important value, because it brings everything together. Finally,
performing well is applying all the other four concepts to the ultimate goal of superb
results.”(Inc.com, 2010). ..............................................................................................................39
Finally, there is the action the management team needs to utilize to adapt the company in the
event of a strike by a manufacturer, a rise in competitors and the layoff of employees. In this
aspect the first thing that comes to mind is a contingency plan. Understanding how to structure a
contingency plan gives a new meaning to a high level of leadership skills. The contingency plan
is a preparation for events involving loss of data, employees, customers, and suppliers. Having a
contingency plan is a normal aspect when operating any company. There are several aspects
when considering a contingency plan including risk assessment, development of the plan and
maintaining the plan. ....................................................................................................................40
When compiling the risk assessment look at all business-critical operations, identify the risks
utilizing a risk analysis, prioritize the risks, understand the risk impacts and use probability
charts to show data. There are some challenges when planning which includes the amount of
motivation when creating this plan because focus is on the main operations of the company. The
other reason is the consideration of low probability that the crisis will occur. (Andrushko, nd.).40
7

The plan development includes staying on track with current operations, create a time frame for
the plan to be compiled, identify any triggers, consider related resource restriction, identify the
entire company’s needs, define success, include the standard operation procedures, manage the
companies risks and identify inefficiencies in operations. Once the plan has been created
maintaining the plan will assist in keeping things up to date in the event of a strike, new
competitors and layoffs. The contingency plan does require a lot of time and resources, but in the
end this assists the company from coming to a complete stop in operations which can be
financially impactful for the company overall. (Andrushko, nd.).................................................40
The contingency plan is put in place to assist with layoffs, strike of manufacturers and
competitors that enter the target market. Some leadership goals utilized at Titan Recovery assists
the transition for the time of layoffs to how to transition remaining employees to move forward
on a positive note. When the layoff happens there are three steps the management team uses to
approach these issues in a positive way. Find a central location where everyone can gather to
discuss the layoff and be straightforward dealing with the overall impact of this layoff. The next
major part is how to positively handle employee’s reactions; this can be done by answering
questions most employees do not. Finally, the management team should discuss the next steps
following the layoffs and how it will impact the remaining employees in the next few days......41
Within the contingency plan a strategy is created for issues such as a strike by a supplier. In this
event having backup suppliers is the key component. In the event that this is the main supplier a
process is set into motion to focus on operations to accommodate for the loss of product until
another supplier can be located, this is also where layoffs may occur. This is rarely an option
because there are so many other distributors in the industry.........................................................41
8

When it comes to multiple competitors arising in the market the company takes control of the
competitive edge utilizing eight key factors to address the issue. These factors include defining
the company itself, identifying its customers, personal experiences, differentiation, pricing,
product and marketing strategies. (Reynolds, 1994). Once the data is compiled the company
creates a strategy to stay above and separate from the competition..............................................41
The most impactful stage of this process is engaging employees after the layoff. Being able to
communicate effectively and on a regular basis will gain a positive impact long-term. Keeping
the employees engaged involves respecting each other by being straightforward and honest
dealing with future success of the business. By utilizing a modeling program to reduce stress and
anxiety shows that if the management team is in control that they do not have to worry about
future disruptions. Leaders need to have skills to handle potential reactions of employees after a
layoff through modeling dealing with insecurity, fear, distrust, betrayal, depression, resentment,
anger, optimism and continuing commitment. (HRO, 2009)........................................................42
References......................................................................................................................................43
9

Section 1: Executive Summary (Business Description)
Many individuals wonder how the recovery and repossession industry functions. The
recovery business is a hidden market type where the general public has very little knowledge
about. This industry has a healthy market due that banks and loan companies prefer not to
repossess their collateral. There are over more that 500+ agents in the U.S. alone working out of
small businesses and they do not advertise their services. In all reality that is one of the key
factors to gaining access to collateral without drawing attention to the repossession.
The process of repossession is very simple; these repo companies reach out to local
banks, dealerships and loan agencies to obtain work. This industry makes money based off of
three key factors, a high value of assignments are easily obtainable, fees are determined by time
taken to complete repossession, and once a client utilizes services it creates repeat repossessions.
There are several key factors to this industry that must be explained in order to gain the full
insight of how this industry works.
The repo industry has many different markets ranging from banks, loan companies, used
vehicle lots, new vehicle lots, and private individuals. Other more specialized markets include
commercial truck rentals, boats, airplanes and motorcycles. The fees for the larger markets are
double the normal repossession charges. Repossession fees very throughout the U.S. depending
on the market, the standard rate for a repo dealing with bank/ loan businesses is $200.00.
Once the fees are established depending on the market and the item up for repossession is
located, the planning process for the repossession is complete and then the job will be carried out
accordingly per specific laws and regulations. The industry is very promising and the
possibilities are endless for expansion. As described earlier this is a much hidden market, but
when the economy is good individuals tend to buy things and when they default on their
10

payments and are unable to establish options with lenders this is where to opportunity strikes for
those in this industry.
This business venture to create a new startup business in the repossession industry will be
named “Titan Recovery” and will have headquarters stationed in Sacramento, California serving
clients locally, regionally, nationally and globally. Our motto states, “Challenging the Gods”,
this was chosen for the specialized markets that the business will be involved with due no other
repo business takes huge risks to obtain a client’s collateral when the impossible is at stake. Titan
Recovery takes assignments to recover high value collateral that is in default. Collateral
descriptions include fixed and rotary wing aircrafts, vessels, heavy equipment, commercial
vehicles and high value automobiles.
Titan Recovery will be considered a “sole proprietorship”, meaning the business is
owned by one individual who bares total responsibility when it comes to tax and legal liability
purposes. In the event of any legal disputes, claimants have the right to personal property of the
proprietor and not just the assets of the business. There are pros and cons when it comes to this
type of ownership that range from the owner being in complete control with decisions to the
existence of the business.
Our business vision and mission of Titan Recovery is to become the top repo business not
only on a national level, but a global level. The company will be based on the beliefs that our
customers are our most important asset. Our entire staff is dedicated to meeting the needs of the
clients which results in satisfaction and repeat business. Our commitment is to regain client’s
collateral when they have tried other option. We consider our business the last line of defense to
protect our client’s assets.
11

Titan recovery offers services such as skip tracing, repossessions and towing/transport
dealing with aircrafts, boats, and commercial equipment. We also offer protection for our clients
to feel secure when doing business with us. We will be a licensed, bonded and carry
5,000,000.00 in liability insurance coverage. Our main location for services is located in
Sacramento, California along with surrounding areas. For our high value collateral dealing with
aircrafts and boats we cover several global locations while working with federal agencies such as
the FFA and Coast Guard.
The staff at Titan Recovery includes the owner, a qualified office manager, senior field
agents, field agents and spotters. Each Team member plays a vital part when it comes to the type
of work done for our clients. The structure of the company starts from the bottom up when doing
a recovery for a client. Once a client requests a recovery, the staff goes to work on trying to
locate the collateral using last known information; this is done by the qualified office manager.
Once this is established it moves to a senior field agent; here they dispatch the
information to field agents. The field agents locate and secure the collateral using spotters. The
spotters give information as to when the item is moved, hidden or is in the possession of an
individual. After the collateral is located the field agents, contact senior field agents and instruct
the office manager to contact authorities to make them aware of the repossession. This also
assists with any unexpected situations that put the staff at risk while performing the repossession
out in the field.
The most important member of the entire staff is the office manager who is required to
have certification credentials. The Office manager oversees the day-to-day assignments called in
by clients. This is also the owner of the business and is certified to locate and recover personal
property sold under a security agreement. The office manager spends at least 51% of their time
12

processing recovery assignments along with filing proper legal documentation. All other
members of the staffing team have backgrounds in law enforcement and have been subjected to
background checks, fingerprinting and not violated the Collateral Recovery Act.
Section 2: Code of Conduct
The Code of Conduct at Titan Recovery is to maintain a high standard of business
principles and exclude all conduct that may negatively impact the company, its employees, its
shareholders and the repo industry. Titan Recovery complies with all state, federal, county and
municipal laws dealing with the ownership/operation of the repo business. The company insures
that all employees are familiar with repo laws/regulations and are highly qualified within the
repo industry. The company never discriminates against race, color, sex or national origin. Titan
Recovery strives to provide efficient/effective repo services and gives proper attention to all
assignments. The company never misrepresents the qualifications/skills of its employees,
experience or abilities as a repo agency. Titan Recovery always competes with honorable/fair
views and never is out to publicly attack the competitor’s reputation. All interaction with
vendors, suppliers and clients are confirmed in writing within a short time frame when offered an
assignment. Overall the goal of the company is to cater to our clients and putting them at ease
knowing Titan Recovery is on the assignment when no one else can.
13

Section 3: Operations
When it comes to daily operations to serve clients in the recovery business there are
several different phases that have to be done in order to execute the service effectively and
efficiently. Phase 1 begins with the initial contact from the client requesting our services; this is
done when the client sends a bid slip. At this point all pertinent information dealing with the
client’s collateral is researched and confirmed according to contracts between the client and their
customers. There is no fee to the client at this point, then a bid is put together which includes all
fees, contract agreements, and all information dealing with the collateral involved in the
recovery.
At this point the client looks over the bid slip, considers the fees, and makes a decision to
move forward. In the event this bid slip cannot be agreed upon it is returned to the recovery
agent for further review. Usually this is not the case and if a client has already started this
process is because they have no other options at this point. Once the bid slip is approved the
recovery agency can go to work on initiating the recovery planning. A repo book is created
which includes a compilation of all necessary legal documentation. These documents range from
power of attorney of the client, affidavit of default, a certified copy of the note/mortgage, etc.
Phase 2 is initiated where the collateral is locating using the last known location, places
where equipment is serviced and physical garaged location listed. When the collateral cannot be
easily located the recovery agent turns to skip tracing, field agents and a huge network of
spotters to assist with locating the collateral. Spotters are outside informants sub contracted by
the recovery agent that collects a finder’s fee when the collateral is located. These individuals
range from commercial/private licensed pilots, captains of boats, airport employees, and
commercial licensed drivers of all types of equipment.
14

Once the collateral is located the recovery plan goes into effect this is Phase 3 of the
process. All necessary individuals come together to discuss and strategize on how they will
execute the recovery of the collateral. This involves specific certified individuals needed to
operate collateral, the equipment needed to move the collateral, communication with the
authorities and any funds needed to release the collateral.( This is needed when collateral maybe
located in airports, impounds and other countries). Then, initial contact with the individual who
has the collateral in their possession.
At this point after the initial contact with the owner, if they agree to surrender the
collateral or bring the balance current the recovery is called off. In this case the client pays the
recovery agency a fee of 30% of the initial quote to cover the time already invested in the
process of locating and recovering the client’s collateral. With this said if the initial contact did
not come to a compromise, the recovery plan comes into play. The recovery process is initiated
and all state and federal laws are considered and the proper authorities are contacted.
The recovery team goes to the location and gains control of the collateral with
documentation of seizure, which is placed on the collateral, the recovery team then photographs
the collateral, and does inventory of any contents, then the collateral is moved to a secure
location (repo impound) using special equipment and/or licensed individuals. Once the collateral
is relocated to the recovery yard the client is notified that the recovery of their collateral was
successfully executed. At, this point the collateral belongs to the recovery agency for a 30 day
time frame.
The 30 day time frame for the collateral is required by law to be held at the recovery
agency impounds before the collateral is legally allowed to be released back to the client, owner
or sent to auction. In the event, the client and the owner come to an agreement on repayment
15

terms or the balance owed is updated to present the recovery agency can release the collateral
before the 30 day time frame ends. At this point the proper documentation is filed and kept on
record in case of future events happening.
On the other hand, if the collateral remains at the recovery agency impound yard after the
30 day time frame the collateral is sent to auction. This is done to assist the client to recover as
much of the value of the collateral, rather than taking a complete loss. Once at the auction the
collateral is sold to the highest bidder and the sale funds are sent to the client. This is the final
step to close out the recovery process and finalize the billing statement from the recovery agency
to the client for payment of the successfully executed repo dealing with the initial bid agreed
upon at the beginning.
The second consideration of this type of business includes the outsourcing services to
other countries dealing with the effect of economics, the government, and laws dealing with
value creation on a global level. Each aspect above will be discussed based on the overall
business industry. These three key areas can impact a business not only when outsourcing, but
also everyday operations.
Governments create rules and regulations to assist businesses with everyday operations.
Operations can be changed when the government changes them also, in order to stay in
compliance with the law. The government economic policies along with market regulations
create assistance on a competitive/profitable level of the business. Businesses have to operate
within compliance created on federal, state, and local levels of the government. (Williams,
2016).
Several different areas are affected when changes by the government are made. Market
catalyst may deal with changes such as social behavior on a business where political stability
16

involves the political culture of a country. This looks at stable/unstable aspects within different
countries. The stable political system is where the business is promoted or attracts investors,
unstable political systems are ones that pose issues on a government level to comply by laws,
and has a negative outcome. (Williams, 2016).
Government spending relates to taxation, if the taxes are high this can turn investors
away, limits the business assets and can have a major impact on the success of the business.
Interest rates can become an issue, consumer spending is affected and if more funds are
borrowed this could result into inflation. If the inflation is at a high rate, the future success of the
business is very uncertain. Regulations also impact business operations dealing with trade, wages
and licensing of the business. Excessive spending of money and time invested to comply with
government laws can be useless in the long run. If the government has fair and effective
regulations, any business has the ability to grow and expand successfully. ( Williams, 2016).
When considering or predicting the impact of laws on business operations there are key
areas to focus on. These areas include common law, statutory law and administrative law.
Common law deals with laws created by court decisions by a panel of judges. Statutory law is
created by the legislation and is done using specific requirements. Administrative laws deal with
legal framework dealing with power, procedures and act of public administration. (LawTeacher,
2013).
Specific paws that effect daily operations and fall under the above laws include; The law
of Torts, The law of Contract, The law of Sales, The law of Agency, The law of Property, The
law of Bankruptcy, and The law of Negotiable Instruments. Overall, the prediction of how
government laws can and do effect business operations on a daily basis was confirmed in
numerous ways. The law protects the business and the consumer in order to have a successful
17

relationship in order to be successful in the industry. These laws are necessary when
incorporating a business, running the business and incases when the business is dissolved.
(LawTeacher, 2013).
Finally, insight into how business operations can affect value creation in the global
context can be assessed utilizing the “business model innovation process.” The business model
innovation process assists business with staying ahead of products and procedures. The
innovative business model creates a new market or creation of a new product or service for new
opportunities in the existing market. The business model innovation process may happen in
several different ways. This process can be done by adding activities using specific
recommended criteria, linking activities using a suggested structure and making appropriate
changes to those who perform the activities. The above aspects describe the business model to
improve and become successful. Having a solid business model can assist with the design and
structure looking at the bigger picture to operate effectively, efficiently and less costly. (Amit,
2012).
Section 4: Marketing Plan
Marketing Plan Part 1
The marketing strategy is where an organization combines marketing goals into a plan,
put together with research that focuses on the product mix to create the best profit to become
successful. The marketing plan is the foundation of a business plan and allows investors to get an
inside look at the potential of the product or service provided. The marketing plan includes
several aspects to paint a clear picture which includes identification of customers, the number of
potential customers/potential profit, and the various segments, importance of convenience
purchasing, fast delivery, and customization.
18

The ability to access these segments individually by distribution, sales forces, direct mail and e-
commerce. Utilization of effective sales/promotion approaches, an analysis of decision making,
price, cost/retention of customers and finally a SWOT analysis dealing with competitors. The
different types of marketing strategies that maybe utilized for any business include T.V., radio,
and print, and direct mail, online and generating publicity. The next consideration focuses on
what level of marketing being used whether being local, state, regional, or global to promote the
product/service.
When conducting marketing campaigns there are several factors to keep in mind,
including knowing the targeted audience, analysis of the research conducted, and creativity to
stand out from others, response capturing and the final analysis/improvement phase to become
successful. Furthermore the marketing mix also known as the 4 P’s is included dealing with
internal and external aspects of the market. This determines the value and results that impact the
success of the product or service. The 4 P’s include product, price, place, and promotion.
The marketing strategy that will be used for Titan Recovery will be direct marketing.
Direct marketing includes an approach where services directly contacting the end user. Direct
marketing encompasses face to face selling, direct mail, catalogs, kiosks, telemarketing, and
more. When using direct marketing there are some major considerations that needs to be focal
points. Targeted campaigns deal with a direct marketing with reliable customer databases, which
include offering that greater customer value through a more personalized approach for the
services offered, the distribution process tailored to meet the needs of the customer and the
opportunity to build loyalty around customer relations.
One of the key factors for direct marketing is to have a consistent customer profile of a
list that describes the dominant target markets. This database quantitatively captures the key
19

aspects of prospects and customers for more ready, and willing, and able to purchase the service.
Demographic information dealing with age, income, education, gender, and passed mail ordering
purchases is all pertinent information when looking at potential customers. The database will
also identified potential customers with characteristics along the lines of frequent purchases,
recent purchases and end the amount of money spent on purchases. This database and assist with
the following when choosing a targeted market, enhances customer loyalty, attraction repeat
customers, promotes specials and identifies potential clients and.
Response rates, industrial standards and preexisting that marketing experiences can assist
with a forecast a response rates. And when analyzing direct marketing you can consistently
improve on marketing performance. Measurements of this type are considered at the end of the
direct marketing campaign. These results can span from a couple of months and to several years
after closing of the campaign. This allows the ability to look back on past failure to assist with
completion of a successful campaign by considering the results over a period of time.
Direct marketing campaign can have negative impact to retarget group dealing with
fraud, deception, an invasion of privacy. These ramifications need to be considered on how they
impact the service and the company in the original startup phase of the campaign. By following
two simple steps of accessing the database and including a customer value the company can
leverage economies of scale, areas of expertise, and create customer loyalty. Customer value
may include aspects such as expertise development based on specific issues, customization of
service solutions and personalize interaction throughout the entire process. (Berry, 2016).
Another focal area when it comes to direct marketing campaigns deals with acquiring and
retaining first time customer. Some strategies that can assist with attracting first time customer
may include free offers, positive reviews and recommendations from influencers. Utilizing
20

direct mailings can be done by purchasing prospect lists from various companies and public
relations generated by the influencers. Customer lifetime value is a concept to assist in
determining how much to spend on marketing to gain first time customers.
When considering the worth of customer lifetime value four different key factors will
assist in determining a successful impact on the company. An estimating how much it costs you
to acquire the customer and retain and serve the customer, along with the estimation of the profit
potential that you will gain from the customer’s purchases. The likelihood and duration the
customer will purchase services over a time frame and amount of time than expected for the
customer to continue being a customer for all their lifetime.
Retaining customers is also a key aspect of direct marketing campaigns. This can be
accomplished by offering excellent services at a competitive and affordable price. Customer
retention can also include regular communication with customers, special treatment, and loyalty/
rewards programs; competitive prices an excellent customer service. An effective and efficient
concept use to organize the above criteria is a program called customer relationship management.
Customer relations management programs deals with a database that tracks customers
dealing with responses to marketing and sales activities and allows a review of communications
and dealing with purchases and issues of each customer. Customer relations management
programs are simply address books for businesses and can assist with determination of which
customers are more profitable to the company, customers most likely to respond to special
operation, and customers who can be retained without any incentives.
Titan Recovery utilizes direct marketing with lenders, which are 90% of high end value
lenders who lend inside/outside of the U.S. When, creating the direct marketing campaign, it
needs to portray the message that the company is able, licensed, bonded, and has full backing of
21

multiple countries with the ability to repo collateral overseas and deliver it to the specified
location requested by the client. Some marketing research already conducted includes the
following dealing with cost of items/ activities and on-going costs.
Initial findings for startup expenses include purchase of equipment (5 recovery trucks @
60,000.00) = 300,000.00, Office equipment = 6,000.00, Advertising costs = 4,500.00, liability
insurance= 250,000.00, Labor costs (drivers/captains/airmen), (5 total @ 50,000.00) annually =
250,000.00, Office staff (agent =50,000.00/secretary =30,000.00 annually) = 80,000.00. The
projected startup costs total for 1 consecutive year totals $640,500.00 this will be the figure to
forecast the base amount to operate for the duration of 1 consecutive year to breakeven. The
business has startup assets of 150,000.00 which is added to the above startup average which
gives Titan Recovery a total requirement of $790,000.00for overall coverage.
Marketing Plan Part 2
This part of this research segment looks at a marketing plan for Titan Recovery using
both e-marketing and traditional marketing plans. An explanation of how beneficial marketing
research can be for a business will be included. Finally, a SWOT analysis and an explanation of
the 4 P’s in the marketing mix will be considered for Titan Recovery. The marketing plan
includes an analysis summary, market segmentation, competition/buying habits,
strategy/implementation summary, SWOT analysis, competitive edge and the marketing strategy.
The benefits of marketing research are considered a systematic collection and analysis of
the target market, competition, and environment. Marketing research is not just a one-time deal;
it needs to be continuous in order to make a business successful. There are several benefits when
conducting marketing research, if done properly it will give a value that exceeds the cost of the
research. (World Press, 2012). Marketing research can assist in locating potential clients, identify
22

opportunities in your specific market, minimize risk and measures the company’s reputation.
Marketing research also flags potential problems, assists with future forecasting/planning,
establishes trends in the industry, establishes the company’s marketing position, creates insight
for a positive message and finds compromises. (World Press, 2012).
Marketing Analysis Summary
Titan Recovery serves Sacramento, California, the 48 states and 4 countries. The
company’s primary clients are found using a direct lender service that provides a client list. This
list is compiled of high-end lenders, banks, and several other financial institutes. The company
provides a valuable service to recover their clients’ high-end collateral. Titan Recovery does not
conduct your average recovery operations (i.e. cars/trucks). The company services the majority
on a local, regional, state, and global level.
Economic factors in California include average population of 296,410,404. Business
occupancy equals average 22,974,741. Geographical area average includes 3,537,438 square
miles, 79.6 persons per square mile. The household income for California average is $61,933.00
and in the U.S. the average $53,657.00. The average unemployment rate in California is 5.8%
equaling 1,096,079 individuals and nationally 5.0% in 2015. The average going rate for
collateral recovery includes the following criteria; semi-tractors = 10,000.00, tractor trailer =
15,000.00, private aircrafts = 18,000.00+ 10% of auction price, Sea crafts range from 5,000.00+
% of auction price up to 25,000.00+ % of auction price depending on the size of the vessel.
Market Segmentation
The company provides the following services for the clients including heavy-duty
towing, local/long distance towing, and international/global recovery of high-end collateral. (i.e.
tractor-trailers, yachts and aircrafts).
23

Competition/Buying Patterns
Titan Recovery’s primary competitors include Capital Recovery and Renovo Recovery
Solutions. These two companies are the back-up services when customer contracts at Titan
Recovery reach their maximum work capacity. These competitors are located within a 75 mile
radius of the facility.
Titan Recovery will add more staff and equipment to cover the work capacity in these
areas to eliminate the competitive threat and protect the potential clientele. The main competition
in the market is not price driven; it is made up of key traits such as ability to handle a large work
load, degree of professionalism, reliability, quality of work, quick response/recovery and
feedback from clients.
Strategy/Implementation Summary
At present Titan Recovery has a sufficient amount of client relationships to build sales
revenue by accepting a higher workload from clients. This will allow Titan recovery to add
concentration.
SWOT Analysis
Strengths
 1 in 4 companies in the U.S. approved for high-end value recovery, so the market is
positive with low completion.
 Relationships with lenders, banks and financial institutes.
 Potential size of recovery equipment
 High barriers to entry, high gross margins
 Highly experienced operator/agents
Weaknesses
24

 Competitors offer similar recovery services
 Limited startup costs, high transportation costs
 Lack of opportunities
 Obtaining additional market share from existing clients
Opportunities
 Continued expansion on a global level
 Becoming one of the top recovery businesses in the industry.
 Recession can impact ownership of clients collateral which brings more revenue to
company.
Threats
 Changes in regulations that may impact the company
 Similar services offered by competitors at cheaper rates
 Insurance costs continually increasing
 Consolidation of the industry/ hotshot operators with influential impact on an economic
scale may over take the market.
 Recession continuation, impacting customer spending.
 Competitive Edge
The company serves high-end clients on a global scale, with quick turnover and safe
recovery of collateral at a competitive price. The company will also project a reliable brand
image, high level of professionalism which makes Titan Recovery the most attractive choice for
recovering the clients’ collateral.
25

Marketing Strategy
Titan Recovery primarily markets utilizing direct contact with clients at their facilities.
Most of these clients are made up of lenders, banks and financial institutes who sell their
collateral to potential new owners. Titan Recovery markets itself using the following key factors
listed below. 1.) Time in the recovery industry. 2.) Reliability. 3.) Ability to handle any recovery
job. 4.) Quality of work performance. 5.) Degree of professionalism. 6.) Client feedback.
Marketing methods used by Titan Recovery include the yellow pages and several different
search placements.
Section 5: Information Technology
According to "Using Technology to Increase Your Business Productivity" (2016), “In
looking at how technology can be used to make a business more effective and efficient we
should consider some aspects in order to execute business productivity.” These aspects deal with
business productivity software assisting the business with creation of strategies in facing
economic challenge to be successful, have an open communication environment, connection
among team members virtually, motivation for employees, monitoring employee goals/business
productivity, and analyze performance of business/employees. Overall this software can close
the gap in communication and assist with making employees understand their value within the
business.
When looking at the information technology that is used in today’s businesses the one
that stands out the most and is ideal for a small business is Cloud computing. When considering
cloud computing there are three options that may work for the business. These options include
the public cloud, the private cloud and the hybrid cloud. Each of these is effective and efficient
for whatever type of business.
26

Public cloud is a standard computing concept that are used over the internet on the pay
per usage basis, this assists businesses when it comes to the complex structure and is fixed.
Public clouds have set backs dealing with customization, security and performance. This raises
concerns with businesses dealing with privacy of their data stored on a public server. ("What
Cloud System is the Ideal Solution for Your Business", 2014). Private cloud is compiled of an
infrastructure solely for the usage of the business. The creation of this type of cloud includes
high investments and compliance with regulation. This allows a business to install their own
storage/ server allowing the usage between multiple servers. ("What Cloud System is the Ideal
Solution for Your Business", 2014).
The other option to consider deals with the combination of public/private clouds called
the hybrid cloud. This combination gives the business an advantage gaining access to both
worlds. The advantage using both of these clouds saves money with the security of not having an
information breach. Hybrid can be incorporated into a small business by three different concepts.
First, separate providers may merge together to compliment the overall effectiveness. Second, a
single provider may offer the business a hybrid package. Third, businesses that are using a
private cloud can incorporate the public cloud concept into the existing infrastructure.
Ecommerce sites assist businesses with financial payments dealing with payments and can be
done on a public cloud. ("What Cloud System is the Ideal Solution for Your Business", 2014).
When considering what will work for “Titan Recovery” understanding the needs and objectives
will assist with deciding which concept of cloud will work. This can be done with consideration
of what will be stored to the cloud and what protection it offers to protect data. This decision
maybe be based on redundancy or savings, but offers multiple benefits. Titan Recovery will use
the “hybrid cloud” concept for everyday operations when it comes to information management.
27

There is always the consideration of importance when it comes to planning and
controlling the processes dealing with information technology. Having a strategic plan allows a
business to know where they are now and where they will be in the future when it comes to
technology and the infrastructure. According to "Strategic Technology Plan" (2016), “The
strategic plan is made up of a needs assessment, technology description/goals and rationale,
measurable/observable objectives, hardware/software/facilities requirements analysis, resources
for staff development and a budget/evaluation method/funding aspects.”
The needs assessment considers teaching/learning, integration within the business,
curriculum, educator prep/development, administrative support and infrastructure for IT.
Technology initiatives are incorporated into leadership, visions, development, assessment and
time management. Areas dealing with the objective phase utilize the above aspects from the
needs assessment. Hardware and software requirements deal with not only the equipment, but the
applications that will be used. The final part of this plan looks at financial aspects of the budget
that is broken down into a yearly timeline. Divisions of funds for each year are described and the
evaluation method collects all data to determine the final forecast.
There is always concern when it comes to controlling processes to protect confidential
information and loss prevention. Control and auditing have become of high importance since the
Enron and WorldCom incidents. Technology is changing the world at a fast pass the use of
digital money has created convenience, but also puts businesses at risk for theft and privacy
breaches. Security tends to be the major risk when using digital money, so a high level of care is
needed to control such information.
Finally, the consideration of a disaster recovery plan is needed in the event of loss or
breach in the system. Having disaster recovery plan will assist with expedited recovery of
28

information/technology when an actual disaster/emergency strikes the business. The plan focuses
on minimizing the disruption of operations, risks of delays, ensures a specific level of security,
reliable backup systems and assists with restoration of operations in a timely manner.
The analysis of network structures, databases, organization setups, applications, and
equipment are all considered when performing a disaster recovery plan. The plan also includes 6
phases in order to set the process into play in an emergency event. First, a disaster recovery team
is formed. Second, risk assessment and impact analysis is performed. Third, focus turns to
prioritizing processes and operations. Fourth, data collection is dealing with inventory counts of
forms, policies, equipment, communications, contact details, on/off site data/ location etc. Fifth,
deals with creation of the disaster recovery plan and sixth is the implementation/testing stage to
determine the efficiency and effectiveness to recovering the loss information. ("IT Network
Disaster Recovery", 2016).
29

Section 6: Financial Plan
Looking at the start-up summary for Titan Recovery, 750,000.00 in cash is needed to
assist with startup and expand the business. This will include the purchase of 5 trucks, hiring 5-8
drivers, and hiring 2 office workers. The company also needs 150,000.00 held in cash.
Next will be the pricing model for Titan Recovery the figures are close to the present
industry standards for the type of items recovered by the business. These prices include the
following: Semi tractor- $10,000.00, Tractor trailer- $15,000.00, Private aircraft- $18,000.00
plus 10% of auction price, Sea crafts by lengths: (20-35ft).- 5K plus 25% auction price, (36-
42ft)- 10K plus 15% of auction price, (43-65ft)- 15K plus 10% auction price, (66-120ft)- 25K
plus 10% auction price.
30

Name Descript ion Repossesion Fee
% of
Auct ion
Sale
Semi Truck Vehicle over 26,001 lbs. $10,000.00 0%
Tractor Trailor Combination over 26,001 lbs. $15,000.00 0%
Private plane non-commercial $18,000.00 10%
Sea Crafts (Yachts, private
boats, by length) 25-35 feet $5,000.00 25%
36-42 feet $10,000.00 15%
43-65 feet $15,000.00 10%
66-120 feet $25,000.00 10%
Titan Recovery, 5473 Main Street, Sacremento, Ca. 90210,(952)-573-8943 Fax:(952)-573-8944 Web Site:
www.TitanRecovery.com
Product Price List
For unlisted items, call us at (952)-573-8943
* Special pricing for extremely high valued repos done within 24 Hrs.
Income statements is a key aspect also called a profit/loss statement, this statement shows a
summary of income and expenses regarding the company. The balance sheet statement
shows all the company’s assets minus the liabilities, and also includes equity in the
company, where both of these figures should balance out. Looking at the income statement
and balance sheet the data the figures were compiled over a three year period where sales
are expected to grow 20% during 2017 and 2018, the gross margin is expected to stay at
65% and operating expenses are expected 20% annually. (Spreadsheets in appendix). The
break-even analysis shows the company is expecting 152,000.00 a month for break-even
forecast. Sales point is at 35% gross margin and 53,200.00 monthly operating costs.
(The income statement and balance sheets are in fuller detail in the appendix of this paper which
will further show monthly forecasts for the first year when the business started.)
31

Part-II
The cash flow statement shows how much actual cash goes into and out of the company.
The key components of the cash flow statement include operation expenses, investment
activities, financial activities and the break-even point of the business. The operating
activities show whether or not a business can turn a profit over a time frame. Losses on this
statement show the company will have financial challenges which will not allow for growth.
Investment activities are a huge expense on the cash flow sheet that reflects purchasing of
equipment, property and long-term assets. Financing activities include any external loans paid by
the company, which affects net profit/loss to the bottom line. The break-even point of the cash
flow statement show when the company reaches a point where the income stabilizes and the
company is able to cover all of their obligations.
The importance of a cash flow statement is the major responsibility of the company to
maintain a sufficient balance of cash at all times, which will enable the company to meet its
needs. The main reason to creating a cash flow statement is to show payments and receipts o the
company over a period of time. Over all the cash flow statement shows the correct picture of a
highlighted timeframe of inflows and outflows of cash related to operating expenses, investment
activities, financial activities and the break-even point of the company.
32

The best way to perform a cash flow statement analysis is using the direct method when
presenting information to lenders and stakeholders. The direct method sorts the company’s
transactions and puts them in a categorized summary dealing with cash inflows/outflows. The
direct method also uses cash flow from the operations section rather than the accrual accounting
figures. When considering potential problems when it comes to the cash flow statements there
are several concerns.
The primary issue faced by most companies dealing with cash flow statements is the
failure of a profitable company due to its inability to pay bills when running out of cash. When it
comes to growth the accounts receivables grow, but cash stays the same. This happens when
outflows exceed inflows and end with negative cash flows. Aging of accounts receivables is
another issue a company can face.
This pertains to the time frame of unpaid invoices of customers this will have a negative
impact on the company long term. Finally, having too much debt puts a strain on the company’s
overall cash on hand. If a constant revision of the cash flow statement is not done regularly the
company will not know when debt is diminishing the cash on hand.
The cash flow statement for Titan Recovery is broke down into monthly projections for
2016. The areas listed in the cash flow statement include cash from operations, cash received,
expenditures, and any additional cash spent. In order to receive the total cash balance all of the
sections are added together to gain the final monthly balance according to the cash flow
overview for the 2016 period from Part-I.
33

The cash flow statement shows a three year forecast for Titan Recovery. This statement
includes the cash from operations, cash spent on operations and additional cash spent. The net
cash flow is calculated by subtracting the cash received from the cash spent. Then to gain the
cash balance you subtract the funds spent on operation from the cash spent on expenditures to
34

gain the final cash balance. This was done using the information in Part-I over the 3 yr. period.
Section 7: Management Summary
35

Titan Recovery is a sole-proprietor, with this in mind the management team is made up of
the owner/qualified office manager, and the senior field agent. When it comes to outside
sources assisting the company this include an accountant, a marketing agent and a lawyer to
represent the company’s legal aspects. Titan Recovery utilizes a flat management structure,
where everyone interacts as peers, with different responsibilities/salaries. All members of the
team are empowered to make vital decisions within their area of responsibilities. Keeping in
mind, the most important/impactful decisions are still made by the owner /office manager.
At, Titan Recovery the most important aspect is leadership and its effectiveness. The
leadership team at Titan Recovery incorporates the following aspects on a daily basis to perform
effectively by setting standards, acting fairly, paying fairly, choosing the right staff, empower
employees, acknowledge contributions and the list goes on. As the business founder, the owner is
subjected to two different roles that can be challenging times when trying to balance employee
responsibilities and the authority to maintain standards to run a successful company.
Titan Recovery utilizes a team concept of group dynamics. Being the manager is a
responsibility that has a major impact on the success of the company. The manager not only takes
full responsibility of mistakes, is not afraid of criticism and encourages an open door policy to
lead a productive team. A disadvantage is when poor managers are in this position can result in a
dysfunctional team where conflict, blame and problematic employees have a negative impact on
the overall success of the company.
36

Some key areas when considering strengths and weaknesses dealing with this type of
group dynamics may include relationships, culture trust and roles/responsibilities. When it comes
to relationships, separation has to be made dealing with friendships which can directly impact the
team overall. This aspect can go either way looking at the nature of the relationship and the
power of the relationship. On the other hand this provides a strong bond between employees
which impacts positive moral and increases productivity in the working environment. (Benjamin,
n.d.).
Different cultures in teams have their pros and cons as well. The company culture within
Titan Recovery allows all employees to be part of the overall success of the business. This
culture offers several positive aspects including flexible schedules to manage work/family live;
the company gives back to the community through volunteer work and fundraising events. The
management team is very accessible to deal with and they offer assistance for growth planning to
allow all employees to advance within the company. The last aspect is the company allows all
employees the reward of owning a piece of the company with the utilization of profit sharing.
There are different approaches and ideas for solving issues which helps to reach common
goals from different perspectives. The downside to this aspect is communication. This is a huge
concern when team members are multinationals or operating in different countries where
roles/responsibilities maybe an issue. At this point a manager should create a clear understanding
of who is responsible for what activities for the company and lower the level of
miscommunication. Titan Recovery developed a team specifically for this problem. The team is
made up of three employees: the manager, field agent and the head spotter. Each week a meeting
is held to discuss issues and gain insight from all levels of the staff to correct them and keep the
company successful.
37

Trust is a huge part of having a successful management team. Teams that have a mutual
trust and respect can accomplish goals faster than a team that is untrustworthy and each team
member tries to micromanage the other. When team members trust each other they make the
correct decisions that make the company successful for the future. Trust comes over time and
even though it starts out as a weakness it will soon turn into strength.
Finally, roles/responsibilities are clearly defined for each team member. The
manager/office agent oversees all employees, staffing duties, and skips tracing duties. This
individual also creates the repo portfolio for each client, and then delegates duties to lower level
employees to carry out the plan. The senior field agent/driver oversees field agents, presents the
repo portfolio to staff and carries out the execution of the repo plan. This allows the team to
function independently, but with the understanding each other’s part coincides with the others to
reach one goal. This over time will allow for separation, but can be a negative impact in the
event the team member has to cover another’s daily duties. To strengthen this issue a manager
can create a cross training program where there is a monthly rotation for the employees. The
philosophy of effective communication is effective when utilization of the “7 Cs” of
communication is incorporated into everyday functions. (Tomasco, 2016).The “7 C’s” includes
completeness, conciseness, consideration, concreteness, clearness, courteous, and correctness.
(Tomasco, 2016).
38

The main function is to exchange information, viewpoints/feedback, and communication
serves as a strategic purpose. Excellent communication by management assists with transparency
in the workplace, trust/respect between upper management and lower level employees with a
culture that allows employees to have a voice of their own. Good communication within a
company allows for its employees to hear pertinent information directly from senior
management. (Tomasco, 2016).
Having a strong leadership and management team creates an excellent company culture.
“The corporate culture is made up of attitudes, experiences, beliefs, and values of all employees
within the company.”(Abrams, 2012). When having an excellent company culture boosts the
employee’s loyalty, assists with recruiting processes, attracts potential customers, creates a
decision-making environment and establishes an overall positive reputation. One company has a
structure called “Five Principles” which includes transparency, five-hive management,
consensus, service, and performance. (Inc.com,2010).
“Transparency means that, with the sole exception of private personal matters and
compensation, there are no secrets in the company. “Five-hive” management means that all
workers are considered equals. The core value of “consensus” means that all business decisions
are made by agreement arrived at both by small teams and for larger decisions by the entire
company as a whole. Service is the single most important value, because it brings everything
together. Finally, performing well is applying all the other four concepts to the ultimate goal of
superb results.”(Inc.com, 2010).
39

Finally, there is the action the management team needs to utilize to adapt the company in
the event of a strike by a manufacturer, a rise in competitors and the layoff of employees. In this
aspect the first thing that comes to mind is a contingency plan. Understanding how to structure a
contingency plan gives a new meaning to a high level of leadership skills. The contingency plan
is a preparation for events involving loss of data, employees, customers, and suppliers. Having a
contingency plan is a normal aspect when operating any company. There are several aspects
when considering a contingency plan including risk assessment, development of the plan and
maintaining the plan.
When compiling the risk assessment look at all business-critical operations, identify the
risks utilizing a risk analysis, prioritize the risks, understand the risk impacts and use probability
charts to show data. There are some challenges when planning which includes the amount of
motivation when creating this plan because focus is on the main operations of the company. The
other reason is the consideration of low probability that the crisis will occur. (Andrushko, nd.)
The plan development includes staying on track with current operations, create a time
frame for the plan to be compiled, identify any triggers, consider related resource restriction,
identify the entire company’s needs, define success, include the standard operation procedures,
manage the companies risks and identify inefficiencies in operations. Once the plan has been
created maintaining the plan will assist in keeping things up to date in the event of a strike, new
competitors and layoffs. The contingency plan does require a lot of time and resources, but in the
end this assists the company from coming to a complete stop in operations which can be
financially impactful for the company overall. (Andrushko, nd.)
40

The contingency plan is put in place to assist with layoffs, strike of manufacturers and
competitors that enter the target market. Some leadership goals utilized at Titan Recovery assists
the transition for the time of layoffs to how to transition remaining employees to move forward
on a positive note. When the layoff happens there are three steps the management team uses to
approach these issues in a positive way. Find a central location where everyone can gather to
discuss the layoff and be straightforward dealing with the overall impact of this layoff. The next
major part is how to positively handle employee’s reactions; this can be done by answering
questions most employees do not. Finally, the management team should discuss the next steps
following the layoffs and how it will impact the remaining employees in the next few days.
Within the contingency plan a strategy is created for issues such as a strike by a supplier.
In this event having backup suppliers is the key component. In the event that this is the main
supplier a process is set into motion to focus on operations to accommodate for the loss of
product until another supplier can be located, this is also where layoffs may occur. This is rarely
an option because there are so many other distributors in the industry.
When it comes to multiple competitors arising in the market the company takes control of
the competitive edge utilizing eight key factors to address the issue. These factors include
defining the company itself, identifying its customers, personal experiences, differentiation,
pricing, product and marketing strategies. (Reynolds, 1994). Once the data is compiled the
company creates a strategy to stay above and separate from the competition.
41

The most impactful stage of this process is engaging employees after the layoff. Being
able to communicate effectively and on a regular basis will gain a positive impact long-term.
Keeping the employees engaged involves respecting each other by being straightforward and
honest dealing with future success of the business. By utilizing a modeling program to reduce
stress and anxiety shows that if the management team is in control that they do not have to worry
about future disruptions. Leaders need to have skills to handle potential reactions of employees
after a layoff through modeling dealing with insecurity, fear, distrust, betrayal, depression,
resentment, anger, optimism and continuing commitment. (HRO, 2009).
42

References
Abrams, R. M. (2012). En-tre-pre-neur-ship: A real-world approach: hands-on guide for today's
entrepreneur. Palo Alto, CA: Planning Shop.
How Motor Vehicles Are Repossessed, Retrieved from: http://www.nolo.com/legal-
encyclopedia/how-motor-vehicles-are-repossessed.html
How to Start My Own Repo Business; Meyers, J. 2015, retrieved from:
http://smallbusiness.chron.com/start-own-repo-business-4852.html
Williams, F. (2016), The Effects of Government Policies on Business, Retrieved from:
http://smallbusiness.chron.com/effects-government-policies-businesses-65214.html
LawTeacher, UK. (November 2013).” How Business Laws Effect Business Operations
Commercial Law Essay.” Retrieved from:
http://www.lawteacher.net/free-law-essays/commercial-law/how-business-laws-effect-business-
operations-commercial-law-essay.php?cref=1
Amit, R. (2012), Creating Value through Business Model Innovation, Retrieved from:
http://sloanreview.mit.edu/article/creating-value-through-business-model-innovation/
Repossession List, (2016). Information received from: http://repoclients.com/
California Unemployment Rate, (2016). Information retrieved from:
http://www.deptofnumbers.com/unemployment/california/
43

10 Benefits of Marketing Research. (2012). Information retrieved from:
https://happycreativeblog.wordpress.com/2012/06/29/10-benefits-of-market-research/
Newlands, M. (2016). 15 Marketing Strategies That Inspire Strategic Thinkers. Information
retrieved from: http://www.inc.com/murray-newlands/15-marketing-strategies-that-inspire-
strategic-thinkers.html
What Cloud System is the Ideal Solution for Your Business? (2014). Retrieved February 09,
2016, from http://smallbusiness.com/2014/09/what-cloud-system-public-private-hybrid.html
Using Technology to Increase Your Business Productivity. (2016). Retrieved February 09, 2016,
from http://successfactors.com/en_us/lp/articles/using-technology-to-increase-your-business-
productivity.html
Strategic Technology Plan. (2016). Retrieved February 09, 2016, from
http://en.wikipedia.org/wiki/Strategic_technology_plan
IT Network Disaster Recovery. (2016). Retrieved February 09, 2016, from
http://www.disasterrecovery.org/it_network_dr.html.
Income Statement. (2016). Retrieved February 28, 2016, from
http://www.investopedia.com/terms/i/incomestatement.asp.
Cash Flow Statement Direct Method. (2016). Retrieved February 28, 2016, from
http://www.accountingtools.com/cash-flows-direct-method.
Benjamin, Tia (2016). The Team Concept of Group Dynamics & the Strengths & Weaknesses of
Business Teams. Retrieved March 01, 2016, from www.chron/ Team-Concept-Group-Dynamics-
Strengths- Weaknesses-Business-Teams.
44

Tomasco, Katherine (2016). The Philosophy of Effective Business Communication. Retrieved
March 01, 2016, from http://www.ehow.com/info_7949381_philosophy-effective-business-
communication.html.
Andrushko, Galyna (2016). Contingency Plan: Developing a Good "Plan B". Retrieved March
01, 2016, from http://www.mindtools.com/pages/article/newLDR_51.htm.
A Managers Guide to Conducting Layoff Meetings. (2009). Retrieved March 01, 2016, from
http://web.mit.edu/hr/empservices/hrodepts.html.
Reynolds, Jr., D., “How to Sharpen Your Competitive Edge.” (Sourcebook,1994). Retrieved
from: http://www.va-interactive.com/dgenbusiness/editorial/sales/ibt/competitive_edge.html#2
45

Appendix
Appendix I
Startup Financials
PersonnelPlan 2,016.00$ 2017 2018
5Drivers@50Kannually 250,000.00$ 262,500.00$ 275,625.00$
2OfficeStaff1@50K,1@30K 80,000.00$ 84,000.00$ 88,200.00$
TotalPeople 7 7 7
TotalPayroll 330,000.00$ 346,500.00$ 363,825.00$
LaborCosts(OfficeStaff)1-agent@50K,1secretary@30Kannually 80,000.00$
TotalStartupExpenses 740,007.00$
Break-EvenAnalysis
ExpectedMonthly 152,000.00$ Assumption
GrossMargin 35% AverageVariableCosts
ProjectedmonthlyOp.Costs 53,200.00$ EstimatedMonthlyFixedCosts
46

Appendix II
Pricing Model
Name Descript ion Repossesion Fee
% of
Auct ion
Sale
Semi Truck Vehicle over 26,001 lbs. $10,000.00 0%
Tractor Trailor Combination over 26,001 lbs. $15,000.00 0%
Private plane non-commercial $18,000.00 10%
Sea Crafts (Yachts, private
boats, by length) 25-35 feet $5,000.00 25%
36-42 feet $10,000.00 15%
43-65 feet $15,000.00 10%
66-120 feet $25,000.00 10%
Titan Recovery, 5473 Main Street, Sacremento, Ca. 90210,(952)-573-8943 Fax:(952)-573-8944 Web Site:
www.TitanRecovery.com
Product Price List
For unlisted items, call us at (952)-573-8943
* Special pricing for extremely high valued repos done within 24 Hrs.
Appendix III
Income Statement
47

Appendix III
Balance Sheet
Appendix IV
Balance Sheet 2016 2017 2018
Assets
Current Assets
Cash (225,000.00)$ -$ (83,520.00)$
Other Current Assets -$ -$ -$
Total Current Assets (225,000.00)$ -$ (83,520.00)$
Long-term Assets
Long-term Assets 225,000.00$ 225,000.00$ 225,000.00$
Godwill 6,500.00$ (25,200.00)$ (25,600.00)$
Total Long-term Assets 231,500.00$ 199,800.00$ 199,400.00$
Total Assets 6,500.00$ 199,800.00$ 115,880.00$
Liabilities and Capital 2016 2017 2018
Current Liabilities
Accounts Payable 35,000.00$ 61,000.00$ 10,000.00$
Current Borrowing -$ -$ -$
Other Current Liabilities -$ -$ -$
Subtotal Current Liabilities 35,000.00$ 61,000.00$ 10,000.00$
Long-term Liabilities -$ -$ -$
Total Liabilities 35,000.00$ 61,000.00$ 10,000.00$
Cash Proceeds 150,000.00$ 150,000.00$ 150,000.00$
Retained Earnings -$ 1,051,920.00$ 1,276,304.00$
Earnings 847,350.00$ 1,104,920.00$ 1,339,304.00$
Total Capital (260,000.00)$ (61,000.00)$ (93,520.00)$
Total Liabilities and Capital 6,500.00$ 199800 115880
Net Worth -260,000.00 (61,000.00)$ (93,520.00)$
48

Appendix V
Cash Flow Statement
CashFlowAnalysis Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CashReceived
CashFromOperations
CashSales $98,000.00 $98,000.00 $98,000.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $151,500.00 $151,500.00 $151,500.00
SubTotalCashFromOperations $98,000.00 $98,000.00 $98,000.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $151,500.00 $151,500.00 $151,500.00
AdditionalCashreceived
SalesTax,VAT,HST/GSTReceived 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NewCurrentBorrowing $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NewOtherLiabilities(Interest-Free) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NewLong-termLiabilities $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
SalesofOtherCurrentAssets $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
SalesofLong-termAssets $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NewInvestmentsReceived $150,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
SubtotalCashReceived $248,000.00 $98,000.00 $98,000.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $124,750.00 $151,500.00 $151,500.00 $151,500.00
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures fromOperations
CashSpending 27,500.00$ 27,500.00$ $27,500.00 27,500.00$ 27,500.00$ 27,500.00$ 27,500.00$ 27,500.00$ 27,500.00$ 27,500.00$ 27,500.00$ 27,500.00$
BillPayment $10,000.00 $32,530.00 $32,540.00 $32,560.00 $34,000.00 $34,550.00 $34,550.00 $35,550.00 $36,000.00 $39,540.00 $39,540.00 $39,540.00
SubtotalSpentonOperations 37,500.00$ 60,030.00$ $60,040.00 60,060.00$ 61,500.00$ 62,050.00$ 62,050.00$ 63,050.00$ 63,500.00$ 67,040.00$ 67,040.00$ 67,040.00$
AdditionalCashSpent $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Sales Tax, VAT, HST/GST, PaidOut $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
OtherLiabilities PrincipalRepayment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Long-termLiabilitiesPrincipalRepayment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Purchaselong-termAssets $225,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Dividends $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
SubtotalCashSpent 262,500.00$ 60,030.00$ $60,040.00 60,060.00$ 61,500.00$ 62,050.00$ 62,050.00$ 63,050.00$ 63,500.00$ 67,040.00$ 67,040.00$ 67,040.00$
NetCashFlow -$14,500.00 $37,970.00 $37,960.00 $64,690.00 $63,250.00 $62,700.00 $62,700.00 $61,700.00 $61,250.00 $84,460.00 $84,460.00 $84,460.00
CashBalance $271,000.00 $196,000.00 $196,000.00 $249,500.00 $249,500.00 $249,500.00 $249,500.00 $249,500.00 $249,500.00 $303,000.00 $303,000.00 $285,580.00
49

MT499_Final_Business_PLan_Juliette_Escalante

Recommended

Recommended

More Related Content

What's hot

What's hot (17)

Similar to MT499_Final_Business_PLan_Juliette_Escalante

Similar to MT499_Final_Business_PLan_Juliette_Escalante (20)

MT499_Final_Business_PLan_Juliette_Escalante