1. 1
Specialized Performance for Electronic Efficiency & Dependability
2001 Thomasville Road
Tallahassee, Florida 32301
(850) 555-3456
www.SPEED.com
Team Five: SPEED, LLC
Specialized Performance for Electronic Efficiency & Dependability
Mentors
Dustin Johnson and Patrick Monroe
Team Members
Louis Dilbert, Bridget Elwell, ToriGreen, Thelma Palmer and MaritzaSoto
Technology Title
Load-Balancing Algorithms for Data Center Networks
Associate ID
EIN 31-1234567
University Sponsor
Florida International University (FIU)
2. 2
TABLE OF CONTENTS
SECTION PAGE
I. Team and Product Information……………………………………………3
II. Executive Summary…………………………………………………….....3-7
a. Introduction
b. Company Overview
c. Industry Analysis
d. Target Market
e. Finance Summary
f. Exit Strategy
g. Competition
h. Marketing Plan and Sales Strategy
i. Advertising and Promotional Strategy
III. Operations………………………………………………………………..7-14
a. Promotional Plan
b. Staff Listing
c. Technology Impact
d. Management and Organization
e. Quality Assurance Program
f. Management and Organization
IV. Long-Term Developments……………………………………………….13
V. Financials………………………………………………………………...13-18
VI. References………………………………………………………………..19-20
3. 3
Team Five: SPEED, LLC
Specialized Performance for Electronic Efficiency & Dependability
Mentors
Dustin Johnson and Patrick Monroe
Team Members
Louis Dilbert, Bridget Elwell, Tori Green, Thelma Palmer and Maritza Soto
Technology Title
Load-Balancing Algorithms for Data Center Networks
Associate ID
EIN 31-1234567
University Sponsor
Florida International University (FIU)
Executive Summary
Introduction
SPEED, LLC utilizes a patented load-balancing algorithm to increase the bandwidth of your data
center. This will decrease the packet latency of your existing technology and minimizes the
bottleneck load of data exchange. This product reduces energy costs and increases the profit
potential of our clients by improving the capability of data centers.
This business plan provides detailed financial information including the basic strategic
information necessary for initial establishment and operation of SPEED, LLC. This document
outlines the tactics for business growth, methods and procedures for operation, and management.
The Company
SPEED is a Limited Liability Corporation (LLC) registered by the State of Florida on October 8,
2015. The company seeks to provide internet service providers that have data centers with the
ability to increase internal capabilities that increase bandwidth, decrease energy usage, and
increase revenue while providing better services to clients. SPEED, LLC is managed by a board
of five entrepreneurs in partnership, dedicated to the accelerated growth of this venture.
Headquartered in Tallahassee, FL, SPEED is strategically positioned to infiltrate the southeastern
domestic market during the initial two years in operation. After the third year, SPEED plans to
expand globally. In the fifth year of operation, the board intends to entertain potential buyers for
the algorithm. The board of directors is seeking the necessary startup capital to launch our
product and bring it to market.
4. 4
Industry Analysis:
Our initial research revealed a few common challenges that data centers face. They are:
Scale – Defining NFV solutions that have global scale
Privacy – Balancing big data benefits against privacy considerations
Security – Ensuring data is secured in healthcare, finance and throughout our daily lives
Efficiency – Building more efficient, programmable and scalable data center
Of our major competitors, Equinix generated the most colocation revenue by achieving a 9.5%
market share. It is followed by Digital Realty, NTT, Verizon, CenturyLink, KDDI, Global
Switch and China Telecom.
Just about every business and government entity either needs its own data center or needs access
to someone else's. The Telecommunication Industry Association developed a data center tier
classification standard in 2005 called the TIA-942 project. The standard identified four
categories of data centers, rated by metrics like redundancy and level of fault tolerance. These
include:
Tier 1 - Basic site infrastructure with a single distribution path that has no built-in
redundancy.
Tier 2 - Redundant site infrastructure with a single distribution path that includes
redundant components.
Tier 3 - Concurrently maintainable site infrastructure that has multiple paths, only
one of which is active at a time.
Tier 4 - Fault tolerant site infrastructure that has multiple active distribution paths
for lots of redundancy.
The industry is shifting from Data Center mainframes to Cloud computing. Seven trends shaping
agency cloud investment decisions are:
Inadequate data governance and management policies made available to agencies.
Security concerns for FISMA compliance and FedRAMP certification timelines.
Insufficient resources to manage investments, calculate costs, and determine ROI.
5. 5
Cloud computing as a solution to inter- and intra-agency shared services goals.
Adapting cloud environments for complex and classified missions.
Military departments' cloud procurement independent of DISA.
NIST's Cloud Computing Roadmap has provided standards for agency cloud
procurement.
Target Market:
SPEED’s target market is telecommunications internet service providers, with intentions to
increase the efficiency of internet bandwidth. It is the goal to initially target service provider
companies located in the southeast region of the United States. The algorithm has the potential to
increase the speed of internet services, giving them access to more information in a shorter
period. The algorithm can improve the efficiency of data centers, saving 35 percent in capacity
and electricity costs. Our barriers to market which poses a threat to SPEED’s success are
companies selling similar product at a lower cost, and companies making a more efficient
algorithm at a competing cost. Within the first two years, the goal is to expand the load-
balancing algorithm domestically. After the third year, the plan is to expand globally. In the
fifth year of operation, SPEED anticipates being in a position to be acquired at a considerable
profit.
The Finance Summary:
SPEED, LLC is a company with vision to provide high-performance enhancement of the routing
of Data Center Networks who are Internet Providers. This vision will reduce downtime (i.e.
buffering) reduce exposure to security fraud, reduce bottleneck, and ensure for its customers; a
quality “Brand” reputation. SPEED anticipates for these improvements; it will make a profit of
$30 Million over 5 years of time invested. It is asking for start-up capital for $500,000 for a 15%
share in the company’s success. SPEED values the algorithm and company at $3.3 million and
anticipates a net worth of $1.1 million the first year with a profit of $600,000 after investment.
SPEED recognizes that technology is always improving and will incorporate a Research and
Development arm right away in its workforce. SPEED has determined that it will initiate its exit
strategy in 5 years.
The Exit Strategy:
As previously stated, within 3-5 years we expect our business to be profitable enough to be
acquired.
Competition
Key competitors for algorithm development are:
Algorithm Inc.(http://www.algorithminc.com)
Sabre (http://www.sabre.com)
o $280 million annually
Nag (http://nag.com)
Tait Company (http://taitcompany.com)
6. 6
It is important to note the strengths and weaknesses of our competitors. A few notable strengths
are:
Competitors are large in situations that are already established
Competitors have more capital
Competitors have an existing clientele base and network on local, national, and
international levels
With our competitor’s strengths in mind, a significant weakness that should be given attention to
are:
Longer wait for larger corporations to make necessary changes and updates to existing
algorithm software’s
Innovation apathy
Aging infrastructures
History of bad reputation
SPEED recognizes that technology is rapidly advancing and will have future competitors that
develop new algorithms, therefore, the company will continue to conduct research and enhance
our product to remain an integral part of the industry. Although as a new Startup company it will
be challenging to gain access to the industry, capital/financing, no brand recognition, no network
connection, SPEED has a strategic plan in place.
Marketing Plan and Sales Strategy
SPEED’s algorithm software has the potential to increase a company’s gigabyte revenue or profit
by 10 percent, as well as decrease the energy costs by 35 percent. The sales associates at SPEED
will act as liaisons, providing all necessary information and answering all questions pertaining to
the algorithm. The web process chosen at SPEED is to provide a video presentation and website.
In the video presentation, SPEED employees will explain the enhancements provided in the
algorithm’s application. SPEED web page will also include a brief video analysis along with the
company’s contact information and statistics on the benefits of the algorithm. These particular
processes were chosen to provide visual aid and information about the algorithm and to further
explain the product capabilities.
In the initial year of operation, the focus will be on providing service to smaller internet providers.
After establishing a concrete partnership with those companies, expansion will be made to larger
internet providers with data centers. The plan is to accomplish this goal between year 2 and 3. In
the fourth year, SPEED plans to broaden the client base to global internet providers with data
centers.
Advertising and Promotional Strategy
The company will use planned promotions such as:
Social Media
o YouTube, Facebook, Twitter
Commercials
Ads in ISP Company stores
7. 7
The advertising methods will be (but not limited to):
Mail-outs
Online- popup ads
Tech events and conferences
o Giveaways with company logos imprinted
Operations
Headquartered in the upper level of 2001 Thomasville Rd, Tallahassee, FL 32308, the facility
was previously occupied by a technology company. The benefit of this space is that it comes
with the technological infrastructure needed to connect servers.
Production plan defined and analyzed
The algorithm was developed and patented as a formula, therefore, there is no need for
production costs. However, after in the initial year of operation, a research and development
team will be implemented for continuous product improvement.
Staff Listing
POSITION HOURLY
PAY
ANNUAL
SALARY
OTHER
COMPENSATION
INCENTIVES
GROWTH PLAN
Receptionist 25,000 1 employee from year-1 to
year-5
Director of
Administration (CEO)
$50,000 4% Sales
Commission
1 employee from year-1 to
year-5
Outside Sales
Representative
$30,000 3% Sales
Commission
Within first 1 yrs- 1
employee; 2-yr. add l
employees; 3rd-yr added 2
employees; 4th yr. added 2
employees;
Total employees: 6
beyond year 4 will be
determined by the board
IT Support Technician $36,500 Within 1st yr. -1 employee;
3rd yr. added 1 employee; 4th
yr. added 1 employee; Total
employees: 3
Business Manager $40,000 2% Sales
Commission
Hired Year 4
Staff Attorney Outsource employee from
year-2 to 5yr.s
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Technology Impact
Technology is ever changing and evolving; therefore, the biggest impact in the company will be
made through our research and development team.
Management and Organization
Key employee positions identified:
Chairman of the Board is a senior executive who is often responsible for the overall performance
of a company and leads as the highest-ranking officer of the board of directors. Chairmen lead
their boards by scheduling and directing meetings. Leadership is absolutely essential in this
position in order to lead employees and develop boards into highly successful entities. Ensure
that organization complies with relevant laws and governance protocols. Preside over Board
meetings and guide decision-making and policy development. Identify and build relationships
with key figures, acting as ambassador for the organization. Develop goals and objectives for
regulatory, governance, outreach, recruitment and budgetary decisions. Coordinate annual
performance review of executive staff.
Member Board of Directors ensures that the organization complies with relevant laws and
governance protocols. Preside over Board meetings and guide decision-making and policy
development. Identify and build relationships with key figures, acting as ambassador for the
organization. Develop goals and objectives for regulatory, governance, outreach, recruitment and
budgetary decisions. Coordinate annual performance review of executive staff.
An Administrative/Office Manager is often the professional lead to ensure the day-to-day
operations of a company or department. This person is the first point of contact for the
organization and would be responsible to take calls, welcome visitors, and direct them to
appointments or the appropriate personnel to meet their needs. The position also includes
handling information requests, inventory management, ordering supplies, and oversees the office
space and organization to meet the needs of the staff. An Administrative/Office Manager is also
responsible for the supervision and support of the company's clerical staff; Coordinate space and
office organization; purchase and manage supplies and equipment. Coordinate office and/or
departmental operations.
Business Manager will manage business and financial affairs related to the administration of the
business unit. The manager will also provide overall management of financial operations,
practice growth, marketing and administration. Finally, the manager will drive business functions
and ensure employee efforts support organizational goals and objectives.
Member of the Board of
Directors
Profit Share
17%
Remain the same until year-
4. Board will decide beyond
year-4
Financial Backer Profit Share 15%
Projected Sales $1.5 Million
9. 9
Staff attorneys use their legal expertise to help deal with the day-to-day legal issues with which
their organization needs regular assistance. The daily duties of a staff attorney might include
advising their employer on legal matters, performing pre-litigation analysis, conducting research
as it pertains to legal matters within their organization, and carrying out legal proceedings.
Represent clients in court or before government agencies, present and summarize cases to judges
and juries.
Public relations (PR) and marketing coordinators are in charge of organizing marketing and
public relations efforts for their company. They coordinate communication with vendors and
customers to increase brand recognition, and one of their main duties is collaborating with
colleagues on marketing materials that build brand awareness and sales. PR and marketing
coordinators also make sure timelines are met and manage relationships with external partners.
They develop business relationships in an effort to increase brand loyalty and company
profitability, as well as assist with the creation and development of effective marketing
campaigns such as: use social media to connect with the public, engaging potential customers in
dialogue; Organize, plan, improve, and execute press events; Copy edit, check branding, and
communicate needs to other writers and marketing specialists; Write, design, and edit all press
documents, including press kits, press releases, announcements, brochures, presentations, etc.;
Collect and analyze data and metrics to assess impact of marketing efforts.
Receptionist is a job that requires the ability to handle multiple tasks. They usually take
incoming telephone calls and information over the telephone, but some Customer Service
Representatives also make outbound calls to their customers. Ensures delivery of excellent
customer service through fast and accurate processing of orders, communication, and
coordinating with other departments to resolve inquires.
Outside Sales Representatives have a variety of job duties depending on their company or
organization. In most cases, this career largely consists of making sales calls not only to potential
clients, but to existing ones as well. Outside sales representatives may travel frequently to the
area of service they manage. In many situations, they will deal with various technical equipment
and software, providing support to their customers by helping them install a product or teaching
them how to properly use a particular system.
Support Technicians (IT) are required to maintain the computers, network servers and phone
technology in business settings. They often work daily with the hardware, repairing or replacing
defective equipment. They may be required to install new or upgraded software and conduct
testing on new or current software. IT support technicians may be responsible for diagnosing
problems in computer hardware and may be called upon to troubleshoot problems for users, and
may work in a help desk or on-call position. IT support technicians often must verify that needed
upgrades are installed on systems and may need to conduct periodic inventory of the computers
used in a business.
The Research and Development Team (R&D) primary focus is designing and creating an
innovative new product. The computer software engineer, for example, might design custom
software that will allow for more efficient data gathering for the specific project. They also may
10. 10
design a new statistical algorithm that will better analyze the collected data because it is much
more adept at respecting the constraints of the system being developed.
Quality Assurance Program
Quality and excellence are the foundation for the management of business and the keystone of
the company's goal for customer satisfaction. Therefore, it is company policy to:
Consistently provide services that meet the quality expectations of customers
Actively pursue improving quality through professional development and training
programs that enable each employee do their respective jobs with accuracy and
precision.
The SPEED Quality Assurance Program consists of new employee orientation on the Quality
Assurance Plan, in-house training programs for all employees, and a formal certification training
program. Quality Assurance checks are done on an ongoing basis, and on completed jobs to
ensure quality workmanship to the company's customers.
At SPEED, the customer comes first. Putting the customer first involves learning about the
customer's ever-changing needs and meeting their expectations for lasting quality. The company
strives to be proactive in preparation for challenges that might arise. Prevention can be achieved
through planning and can therefore avoid the time and costs associated with rework.
Quality happens through people. The people are what make SPEED, successful. Within an
environment that stimulates self-motivation and creativity, employees can take ownership of the
processes that make SPEED and therefore the clients, succeed.
Company Owners
Receptionist Outside Sales Reps IT Support Staff Attorney
Board Chair and
Board of Directors
Director of
Administration(CEO)
Business Mgr
11. 11
Management & Ownership
Thelma J Palmer is a creative and enterprising marketing professional with a broad base of 27
years’ experience in business, government, and education. Receiving a Bachelor of Science in
Business Marketing and Communication from Florida State University, TJ has expertise in
management, sales, human resources and customer service. Her significant skills include public
speaking, goal setting, event planning, analysis, and problem solving. Recognized as an excellent
communicator with an exceptional work ethic, she employs a team-oriented leadership approach
to drive success. TJ volunteers as a Co-Director of DivorceCare support group, with the Second
Harvest of the Big Bend and at ECHO missions. TJ brings to SPEED, knowledge of the industry,
a strong sales background, and a streamlined approach to growth and profitability.
Major Contribution: Chairwoman/Sales
Louis Dilbert attended Florida State University where he earned a Bachelor’s in Health Education
and a Masters in Educational Leadership/Administration. He is currently a doctoral candidate in
Educational Leadership at Florida A&M University. On the road to becoming a college president,
Louis is employed as an Adjunct Instructor for College Success at Tallahassee Community College
as well as Extended Day Program Manager for the 21st Century Community Learning Centers for
Leon County Schools. Louis has over 17 years of student, professional and community leadership
with a focus on increasing college access for underrepresented populations. Louis is active in the
community serving as Immediate Past President of the Board of Directors for Big Bend Cares,
volunteer for Big Brothers Big Sisters, and Past President of the Gamma Mu Lambda Chapter of
Alpha Phi Alpha Fraternity, Inc. Louis is a graduate of Leadership Tallahassee, Class 32.
Major Contribution: Information Technology (IT)
Bridget Elwell earned a Bachelor of Science degree in Behavioral Science with a Minor in
Women’s Studies from the University of South Florida. Bridget has many years of experience
working in Public Administration at Tallahassee Community College in the Center of Workforce
Development. Her position at the college has given her many opportunities to utilize her skills to
create and develop educational programs as well as directed many distance learning courses. She
also possesses the ability to negotiate contracts with businesses to deliver specialized training
programs that increase revenue for the college. Bridget demonstrates excellent written and oral
communication skills through her expertise in Project Management. Bridget serves as a business
manager and researcher for SPEED Inc. In this role, she uses her advanced skills and abilities
through effective business and management principles used in strategic planning, resource
allocation, human resource modeling, leadership skills and coordination of people and resources.
Bridget’s professional affiliation and memberships include the ZONTA International Inc.,
Tallahassee Chamber of Commerce, American Society of Training and Development, and the
Tallahassee Senior Center.
Major Contribution: Marketing
12. 12
Maritza Soto earned a Master’s degree in Community Psychology from Florida A&M University
and is currently pursuing a Ph.D. in Psychology at Florida State University. In addition to her
strong academic background, Ms. Soto is a project manager for The Refuge House Inc., where she
supervises over 20 staff members. Her resume of experience in non-profit management extends
well over 30 years combined. In addition to her professional work, Ms. Soto volunteers as a board
member at Wisdom’s Wellspring where she has served for 8 years. She recently accepted the
appointment of Executive Director for the upcoming year starting spring 2016. Ms. Soto has
several years of experience working with local business entrepreneurs through the network
connection and actively participating in community events and forums. To date, Ms. Soto has
developed great relationships with community partners and some of them have become regular
financial donors to non-profits such as Wisdom’s Wellspring and the Refuge House. Currently,
Ms. Soto is a key player for a new local business called SPEED Through this company she will
contribute her years of experience in managing staff and networking with financial donors to help
launch the business toward success.
Major Contribution: Sales
Tori Green earned a Bachelor of Arts degree in Business Administration from Flagler College
and is currently pursuing a Master’s degree in Business Administration from Kaplan University.
Tori is an energetic, self-starting professional and team player that accomplishes goals to
generate excellence and productivity to any organization. Tori possess excellent written and
oral communication skills and specialize in Microsoft Word, Excel and PowerPoint. Tori serves
as a data analysis researcher for SPEED Inc. In her role, she uses her advance abilities to
conduct thorough analysis of the telecommunications market and its data centers. Tori has a
background in Office Management, processing payroll and collecting payments from
contractors, negotiating proposals for potential contractors and extensive administrative duties.
Tori utilizes her professional experience within the call center environment to help guide the
strategic vision of SPEED. In addition to being a business leader, Tori gives back to her
community by serving as a parent volunteer for Symphony Seven School of Arts and
Technology.
Major Contribution: Researchand Development
Key Personnel
Current staff
Job Title Name Expected staff
turnover
Skills or strengths
Chairwoman of
Board of Directors
Ms. Thelma
J Palmer
36 to 90 months At least 15 years’ experience in the IT
industry.
Board of Directors Mr. Louis
Dilbert
36 to 90 months At least 10 years’ experience in the IT
industry.
13. 13
Job Title Name Expected staff
turnover
Skills or strengths
Board of Directors Ms. Bridget
Elwell
36 to 90 months At least 20 years’ experience in
Project Management.
Board of Directors Ms. Tori
Green
36 to 90 months At least 30 years’ experience in the IT
industry of Data Management and
Research
Board of Directors Ms. Maritza
Soto
36 to 90 months At least 30 years’ experience in the IT
industry Management and Finance.
Required staff
Job Title Quantity Expected
staff
turnover
Skills necessary Date required
Director of
Administration
(CEO)
1 3-5 years At least 15 years’
experience in the IT
industry.
10/8/2015
Receptionist 1 4-3 years At least 2 years’ experience
in IT Office Management.
10/8/2015
Outside Sales
Representative
1 1-5 years At least 2 years’ experience
in IT Sale and Customer
Service
10/8/2015
Recruitment Strategy:
The company is planning to place advertisements on EmployFlorida, Indeed and CareerBuilder
online services for hiring staff.
14. 14
Long Term Developments
New changes for companies’ search engines with the faster algorithms have a chance to cause
some major problems for companies without newer technologies to handle the loads. IT companies
must have web content optimization for the higher SPEED algorithm.
SPEED will increase the company’s higher bandwidth by 10% and will minimize the bottleneck to
achieve the load-balancing objectives for a company. By increasing the speed of the company’s
broad bandwidth, the company will receive a competitive edge within the IT industry. SPEED
long-term revenue goal is $15 Million. Our long-term goal is to leverage the company by selling
the algorithm to a large data IT Company and its data center within the next 60 months. Constant
thought about the company’s future and strategically moving it forward in the marketplace, drives
the addition of a Research and Development team during the next 60 months
Financials
Financial Overview and Objectives
SPEED, LLC is a developer of Load-Balancing Algorithms for Data Center networks including
Internet providers. The distributed load balancing multipath routing algorithm is designed for
distributed switches and routers to allow for improved network throughput and reduce packet
latency. SPEED, LLC prices the Load-Balancing Algorithm at .5% of the industry’s financial
savings numeric derived from the 35% of energy cost saved plus the 10% increase in profit margin
of the per gigabit charge resulting from increased throughput. SPEED anticipates obtaining
contracts on 1% of US market share, in the first year, to generate revenue of $1,500,000. Each
software application requires the payment of a .50% renewal fee every year. SPEED anticipates
renewing 50% of the licenses it sold in the prior year; this renewal fee acts as a source of recurring
revenue. To simplify, assume that renewals happen for only one additional year and that the
recurring revenue stream is based on the prior year’s new licenses. Note that SPEED does not
incur any additional costs for renewals. SPEED will purchase QuickBooks Premier for the
necessary accounting infrastructure needed to start its business and adhere to “basic accounting
principles” of finance.
Objectives:
Earn in sales of at least $1,500,000 in year one and $15,000,000 by year five.
Achieve a net income of at least $ 1 million in year one.
Significantly enhance the routing of data center networks with internet providers.
Position SPEED, LLC to be sold at a significant profit by 2019
Financing Required
SPEED anticipates the startup need for this endeavor to be $500,000 and is currently seeking a
funding source. In exchange for this commitment to SPEED and its Load Balancing Algorithm,
SPEED will offer a 15% share of ownership in its company. Then, as a significant stakeholder,
the funding source would participate on SPEED’s Board of Directors and in leadership of the
company.
15. 15
Financial Assumptions (assume constant throughout the projection period)
Packaging costs=$0
Marketing expense=$25,000 to penetrate the market
Fulfillment expense=$0
Salaries & Benefits=$240,000 year 1 with staffing phased in over 4 years
Sales commissions=5% of all sales including renewals
CEO salary & bonus=$50,000 + 3% of all sales including renewals
Federal tax rate based on projected sales=35% and state tax rate=5%
Office space and administrative costs=$75,000 annually
Assume a minimum cash balance (Day 1 cash) of $500,000 (this needs to be funded by
the financial sponsor)
Assume Interest Income on average of cash balances is 1%
Savings Revenue Chart: 1% Market Share
Global Market Savings U.S. Market Savings
Revenue stream of 10% inc. in gigabyte profit $91 Billion $27 Billion
Revenue stream of 35% dec. in energy cost + $14 Billion $4 Billion
$105 Billion $31 Billion
SPEED charges .5% of savings therefore x .005 x .005
$525 million $150 million
Assumption: First year SPEED will obtain x .01
1% of US MARKET $1,500,000
5 Year % of Penetration Projections
Growth (1%) (2%) (3%) (4%) (5%)
Year 2015 Year 2016 Year2017 Year 2018 Year 2019
Revenue $1,500,000 $3,000,000 $4,500,000 $6,000,000 $7,500,000
Renewal (.5%) $ 750,000 $1,500,000 $2,250,000 $3,000,000
$ 750,000 $1,500,000 $2,250,000
$ 750,000 $1,500,000
$ 750,000
Total Revenue $1,500,000 $3,750,000 $6,750,000 $10,500,000 $15, 000,000
16. 16
START-UP COSTS Cost ($) EQUIPMENT/CAPITAL COSTS Cost ($)
Registrations $50 Business purchase price
Business name Franchise fees
Licences $350 Start-up capital
Permits Plant & equipment
Domain names $300 Vehicles
Trade marks/designs/patents Computer equipment $4,000
Vehicle registration Computer software $400
More… Phones $1,200
Membership fees Fax machine $1,000
Accountant fees $1,000 More…
Solicitor fees $5,000 Security system
Rental lease cost (Rent advance/deposit) $26,000 Office equipment
Utility connections & bonds (Electricity, gas, water) $2,600 Furniture
Phone connection $2,600 Shop fitout
Internet connection $2,600 More…
Computer software $1,200
Training
Wages $240,000
Stock/raw materials
Insurance $600
Building & contents
Vehicle
Public liability
Professional indemnity
Product liability
Workers compensation
Business assets
Business revenue
Printing $5,000
Stationery & office supplies $5,000
Marketing & advertising $25,000
More…
Total start-up costs $317,300 Total equipment/capital costs $6,600
18. 18
Profit & Loss forecast for SPEED, LLC 2015-2016
PROFIT & LOSS July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June
Yearly
Total
Sales $25,000 $50,000 $75,000 $100,000 $50,000 $50,000 $125,000 $100,000 $125,000 $125,000 $225,000 $450,000 $1,500,000
less cost of goods sold $0
Interest Income 1% $420 $420 $420 $420 $420 $420 $420 $420 $420 $420 $420 $420 $5,040
Gross profit/net sales $24,580 $49,580 $74,580 $99,580 $49,580 $49,580 $124,580 $99,580 $124,580 $124,580 $224,580 $449,580 $1,494,960
Expenses
A ccountant fees $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
A dvertising &
marketing 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 $23,100
Bank fees & charges $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $300
Bank interest $0
C redit card fees $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000
U tilities (electricity,
gas, water) $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
T elephone $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
Lease/loan payments $0
Rent & rates $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000
M otor vehicle expenses $0
Repairs & maintenance $0
Stationery & printing $835 $835 $835 $835 $835 $835 $835 $835 $835 $835 $835 $835 $10,020
Insurance $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600
Superannuation $0
Income tax $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000
Wages (including
P A YG) $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $240,000
M ore… $0
Total expenses $32,510 $32,510 $32,510 $32,510 $32,510 $32,510 $32,510 $32,510 $32,510 $32,510 $32,510 $32,510 $390,120
NET PROFIT (Net
Income)
-
$7,930 $17,070 $42,070 $67,070 $17,070 $17,070 $92,070 $67,070 $92,070 $92,070 $192,070 $417,070 $1,104,840
Assumption: Sales will be slow for first month. Anticipating 1 sale at the midrange level November and December due to the holidays
19. 19
References
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http://www.businessdictionary.com/definition/industry-analysis.html#ixzz3jSs6JQ2n
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http://computer.howstuffworks.com/data-centers1.htm
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from website: http://fcw.com/articles/2014/11/18/snapshot-deltek-cloud.aspx
TIA Solutions in: Cloud & Data Centers. Retrieved from website: http://www.tiaonline.org/tia-
solutions-cloud-data-centers
Understanding Data Centers and Cloud Computing. Retrieved from website:
http://webcache.googleusercontent.com/search?q=cache:scdB_PkM89EJ:www.globalkno
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http://www.floridatrend.com/article/18390/plan-it?page=2
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http://mashable.com/2014/09/30/doe-energy-efficiency/#ys.cIhpvD5kg
