staffing & temporary job agency - business plan · web viewstriving to be a leader in the...

STAFFING & TEMPORARY JOB AGENCY BUSINESS PLAN

Business PlanRevision 4.2

Serial: AAA983/01Phone / Email /USA

1. Executive Summary

1.1 Objectives:

<YOUR.COMPANY.NAME> striving to be a leader in the provision of staffing services and qualified talent across an array of industries. We specialize in temporary, temp-to-hire and direct placement staffing services and our staffing and talent resources extend throughout the United States.

Through our comprehensive network of talented job applicants, we select only the most qualified individuals within every industry to service our clients.

We have developed our broad-based staffing and recruiting services to serve the needs of those seeking qualified temporary, temp-to-hire and permanent placement employees.

Because of our extensive reach within the staffing industry, <YOUR.COMPANY.NAME> offers its clients the opportunity to determine the exact qualifications of potential candidates. We work closely with our clients to determine their specific needs and to ensure that their requests are matched with the appropriate job applicants within our network.

Unlike the majority of staffing firms, <YOUR.COMPANY.NAME> maintains a vast and proprietary database of highly qualified job applicants and employees. We are therefore able to effectively service clients in virtually every industry in any part of the United States

Some of the industries in which we work are:

Finance Administrative

Education

Engineering

Information Technology

Entertainment

Healthcare

Human Resources

Legal

<company name> <Phone-Email> <City-State> P:1

Marketing

Sales

Hospitality

Because we provide highly-qualified personnel through our own proprietary network, there is never a shortage of available talent.

Our success is primarily due to our dedicated staff's commitment, ability and enthusiasm in providing a consistently efficient and responsive service to our growing list of clients.

This business plan leads the way. It renews our vision and strategic focus: adding value to our target market segments in our local market. It also provides the step-by-step plan for improving our sales, gross margin, and profitability.

1.2 Mission StatementTo subscribe to the highest ethical and professional standards in operating a diversified and profitable human resource firm engaged in providing excellence and quality service to candidates and employers relative to temporary help, permanent placement and contract staffing.

1.3 Objectives

<YOUR.COMPANY.NAME> keys to success will include:

Excellent customer service. Grow and maintain a referral network of customers.

Rapid response to customer problems with product or plan.

Become established as the leading temporary staffing agency.

Financial Objectives

Increase revenue

Marketing Objectives

Increase marketing efforts. Expand market area.

Expand marketing reach.

Brand recognition.

Increase telemarketing efforts.


$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

1 2 3

HIGHLIGHTS

SALES

Gross Margin

NET PROFIT

1.4 Keys to Success

Timing is critical in business. <YOUR.COMPANY.NAME>is taking advantage of an opportunity to become a highly distinguished and recognized temporary staffing agency leader because of certain key advantages:

The management team has a unique combination of business knowledge and experience in this market. <YOUR.COMPANY.NAME>has combined its expertise to offer services for every type of customer in this sensitive industry.

<YOUR.COMPANY.NAME>has established partnering relationships with leading banks & financial companies.

<YOUR.COMPANY.NAME> critical success factors include funding, marketing, quality sales professionals, good management, aggressive branding, increasing reach, affiliating with the right partners, being specific to the needs of businesses and the public, competitive intelligence and appropriate use of technology.

2. Company Overview<YOUR.COMPANY.NAME>striving to be one of the state's leaders in the field of temporary staffing services.


The company's management philosophy is based on responsibility and mutual respect.

<YOUR.COMPANY.NAME>maintains an environment and structure that encourages productivity and respect for customers and fellow employees.

Additionally, the environment encourages employees to have fun by allowing creative independence and providing challenges that are realistic and rewarding.

2.1 Company Ownership

YOUR_COMPANY> will be a sole proprietorship owned by <OWNER>.

<YOUR_COMPANY> will be based in <YOUR_CITY> <YOUR_STATE> It will offer <YOUR_CITY> an alternative to the traditional large temporary staffing agency franchises.

<YOUR_COMPANY> will offer a wide range of business hours and exceptional customer service.

The business will be located in a high traffic area in <YOUR_CITY> and will have a total of five employees by the end of year one. <YOUR_COMPANY> is forecasted to reach profitability by month nine and will have <$?> in profit by year three.

2.2 Start-up Summary

<YOUR_COMPANY> will have the following start-up costs, of which everything that is a long-term asset (any asset that will be used for more than one year) will be depreciated using the straight-line method

STARTUP_ITEMS

$0 $1,000 $2,000 $3,000 $4,000

1

OTHERS-LEGAL(PERMITS/TRADEMARKS/CORPS)

ARCHITECTURE/DECORATION/REMODELING

EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK

MARKETING/WEB/BUSINESSCARDS/BROCHURES/ADS

OFFICE SUPPLY/PAPER/FAXPAPER/PRINTER INKS

INVENTORY


OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK ARCHITECTURE/DECORATION/REMODELING OTHERS-LEGAL (PERMITS/TRADEMARKS/CORPS)

START-UP EXPENSES (REQUIREMENTS)BUSINESS START YEAR 2004OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS $473 MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS $1,305 EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK $3,580 ARCHITECTURE/DECORATION/REMODELING $2,143 OTHERS-LEGAL (PERMITS/TRADEMARKS/CORPS) $870 RENT+SECURITY DEPOSIT $1,500 INSURANCE $300 OTHER A $4,100 OTHER B $700 OTHER C $2,500 OTHER D $1,000 FRANCHISE FEE $0 BUSINESS FEE TRANSFER $0 TOTAL START-UP EXPENSES ($18,471)Start-up Assets Needed Cash Balance on Starting Date $8,700 Start-up Inventory $0 Other Current Assets $1,000 TOTAL CURRENT ASSETS $9,700 Long-term Assets $10,000 TOTAL ASSETS $19,700 Total Requirements $1,229 Funding & Investor INVESTOR 1 $30,000 INVESTOR 2 $0 OWNER 1 $0 OWNER 2 $0 BANK 1 $0 BANK 1 $0 TOTAL INVESTMENT $30,000


Current Liabilities Accounts Payable $1,000 Current Borrowing $0 Other Current Liabilities $0 CURRENT LIABILITIES $1,000

Long-term Liabilities $3,444 TOTAL LIABILITIES $3,444 LOSS AT START-UP $18,471TOTAL CAPITAL $11,529 TOTAL CAPITAL & LIABILITIES $14,973

START-UP SUMARY

($30,000)

($20,000)

($10,000)

$0 $10,000

$20,000

$30,000

$40,000

1

TOTAL CAPITAL & LIABILITIES

TOTAL INVESTMENT

TOTAL CURRENT ASSETS

TOTAL START-UP EXPENSES

2.3 Company Locations and Facilities

<YOUR.COMPANY.NAME> head office is located at <address>. <YOUR.COMPANY.NAME> leases its 1,100 square feet head office which has adequate office space to conduct its operations.

At some point in the future, management expects to outgrow this office space. Additional office space will be sought at the appropriate time.

3. Product & Services


<YOUR.COMPANY.NAME> provides temporary staffing outsourcing services to <YOUR.CITY>-based medium-sized and large businesses. We represents the full spectrum of staffing services for qualified personnel to meet the needs of companies - from small, emerging growth companies to Fortune 500 clients.

Established in XXX <YOUR.COMPANY.NAME> has gained an enviable reputation for providing quality services.

<YOUR.COMPANY.NAME> Staffing Services is organized into several divisions: Direct Hire Temporary Staffing Executive Staffing Contract Staffing National Staffing Services Business Services

<YOUR.COMPANY.NAME> utilizes the latest computer technology to provide on line services to both our clients and our applicants. We currently use an internet based search system known as <XXX>. This program allows candidates and clients to provide information about themselves or their organization via the internet.

By accessing this area candidates may search for jobs that match their employment experience. They may also register on line, notify our staff of their interest in any of the open jobs posted or update their personnel file when changes occur. In the near future, contract employees will be able to print time sheets off of our site and submit their time worked through this interface.

Our clients have similar access with this system. Clients may enter job orders on line and track candidates that we have contacted about their open position. They can, with permission, search for candidates available in our database that match other positions they are seeking to fill.

3.2 Fulfillment

<YOUR.COMPANY.NAME>is required to comply with various rules and regulations among a number of local, state, and federal agencies.

Locally, the company is required to maintain its business license and comply with local regulations and city codes. From a State level, the company is required to comply with all State laws concerning employment law, corporate law, and consumer products regulations.

From a Federal level, the company is required to comply with additional consumer product laws, taxation, etc.

<YOUR.COMPANY.NAME> accounting policy follows generally accepted accounting principals. <YOUR.COMPANY.NAME> financials are turned over to the CPA on a quarterly basis.


<YOUR.COMPANY.NAME>uses Quick Books for its accounting software; Accounting is system based on the accrual method. The fiscal year is based on year-end. Financial reporting methods include monthly, quarterly, and annual statements. An annual audit is to be performed by the firm's CPA firm in January.

<YOUR.COMPANY.NAME>carries insurance for business liability, automobile, and medical coverage. Additional insurance programs such as worker's compensation and key-man coverage will most likely be consummated by the close of the second quarter of 2004.

Management has no knowledge of pending lawsuits or threat of legal action directed at either the company or its officers.

3.3 Technology

<YOUR.COMPANY.NAME> business tools may be considered to be those assets that keep the business running smoothly.

These tools include computers, software, business forms, standard agreements, various internal process standards, and other company-specific documentation.

As <YOUR.COMPANY.NAME> management identifies changing technology, these changes will be studied, analyzed, and evaluated.

Of those technological changes that show significant impact on <YOUR.COMPANY.NAME> future, funds and resources will likely be committed to making adjustments to <YOUR.COMPANY.NAME> business operations.

Actions include expanding sales, customer service, and training in order to meet the demand of the business community.

4. Market Analysis

<YOUR.COMPANY.NAME>continues to conduct industry analysis to stay current on the nature and dynamics of the industry. This process helps management develop insight and devise sustainable business and marketing strategies to assure future success and avoid making decisions based on blind assumptions.

<YOUR.COMPANY.NAME> business model was developed under two areas of knowledge: understanding the temporary staffing industry, and by having worked for and observed successful companies (and their business models) in the financial services industry.

According to reports published by CNN Financial News from the Commerce Department, the U.S. economy capped off 2004 at a furious pace, posting its fastest quarter of growth in more than three years, as demand at home and abroad for U.S.-made goods remained robust and companies spent more stocking their shelves.


Gross domestic product grew at a 6.9 percent annual rate in the fourth quarter, the Commerce Department said, above the revised 6.5 percent increase expected by economists and well ahead of the 5.8 percent pace originally reported a month ago. It was the biggest gain since the second quarter of 2003, and dwarfed the third-quarter expansion of 5.7 percent.

The GDP price deflator, a key inflation gauge, rose at a 2 percent annual rate, the same rate initially recorded a month ago and in-line with economists' forecasts of a 2 percent gain. The price deflator rang in at 1.1 percent in the third quarter. For the entire year, the U.S. economy grew at a 4.1 percent pace, while the GDP price deflator advanced 1.6 percent. Higher productivity has allowed businesses to produce more without increasing expenses, keeping the cost of the final product low.

The U.S. economy's rate of expansion during the past three years has been faster than what Fed officials have said can be sustained without a renewed inflation threat. Fed officials have stated at different intervals that a "comfortable" rate of growth is typically around 3 percent. Small businesses are taking advantage of the opportunities the Internet affords.

4.1 Target Market Analysis

<YOUR.COMPANY.NAME> operates in the <YOUR.CITY> area, targeting the following geographic cities:

• <CITY_1>• <CITY_2>• <CITY_3/>

and the suburban communities (with business centers) Of:• <OUT_SIDE_CITY>


MARKET ANALYSIS

0

20,000

40,000

60,000

80,000

100,000

120,000

<CITY_1> <CITY_2> <CITY_3/> <OUT_SIDE_CITY>

2008

2007

2006

2005

2004

4.2 Main Competitors

Competitors to the <YOUR.COMPANY.NAME>fall into four categories:

Segment Rivals: Segment Rivals offer the exact same services as <YOUR.COMPANY.NAME>. While the market is certainly large enough to sustain multiple segment rivals, <YOUR.COMPANY.NAME>will attempt to ensure that its name is well known in all its target markets.

Market Rivals: There are a number of available Market Rivals who compete with the <YOUR.COMPANY.NAME>while having slightly different business focuses. The <YOUR.COMPANY.NAME>will attempt to compete with these companies by demonstrating its focus on "personal services.”

Generic Rivals: Generic Rivals represent alternative temporary staffing agency solutions.

Structural Rivals: Structural Rivals are the forces inherent in the market through which the company must operate.


CAGR: Compound average growth rate.

0%

5%

10%

15%

20%

25%

<CITY_1> <CITY_2> <CITY_3/> <OUT_SIDE_CITY>

5. Marketing & Sales<YOUR.COMPANY.NAME>developed its sales and marketing strategy by analyzing its own internal strengths and then analyzing current market conditions.

This process helped <YOUR.COMPANY.NAME>create its marketing and sales strategy to leverage its competitive advantages with a unique marketing strategy, thus establishing it as the region leading staffing services company for businesses.


SALES BY PRODUCT/SERVICE

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

DIRECT HIRE

TEMPORARY STAFFING

EXECUTIVE STAFFING

CONTRACT STAFFING

NATIONAL STAFFING SERVICES

BUSINESS SERVICES

The company will create momentum through critical mass and brand recognition. <YOUR.COMPANY.NAME>will monitor the effectiveness of its marketing efforts in order to determine the advertising return on investment and the commerce generated from the various channels.

<YOUR.COMPANY.NAME> ongoing marketing strategy involves the company maintaining and expanding a broad base of clients in target territories, establishing alliances with banks and financials companies so that it can deliver high-quality products, and invoking its own organization to bring these together and implement total solutions for customers. The company will move from the traditional product-focused strategy to a total-focus on customer ownership.

The overall marketing plan for <YOUR.COMPANY.NAME> service is based on the following fundamentals:

The segment of the market(s) planned to reach. Distribution channels planned to be used to reach market segments.

Share of the market expected to capture over a fixed period of time.

Our year 2004 marketing goals include the following:

Capture 6% market share of businesses in the <YOUR.CITY> market areas. Educate small businesses about temporary staffing benefits.

Substantially increase sales over 2003 levels.


Position the company as the number one provider of solutions for temporary staffing management.

Make a major branding effort emphasizing <YOUR.COMPANY.NAME> name and array of services.

Initiate new marketing program with a budget of $40,000?.

Create new collateral marketing materials (brochures, radio ads, video).

Media placements including magazine, TV, radio, Internet, print, and banner advertising.

Expand product and service offerings.

5.3 Competitive Edge

Our competitive edge is our positioning as strategic ally with our clients, who are clients more than customers.

By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they need it.

5.4 Pricing Strategy

<YOUR.COMPANY.NAME> prices are competitive and affordable for businesses. The company has also established a pricing and commissions structure for sales representatives and distributors.

5.5 Promotion Strategy

<YOUR.COMPANY.NAME> overall goal is to increase the business base, and create more awareness to the need for this type of service in the marketplace.

Currently, marketing efforts have revolved around sales representatives and telemarketing.

During 2004, <YOUR.COMPANY.NAME> marketing goals also include positioning the company for co-branding alliances with several small business associations.

It is <YOUR.COMPANY.NAME> belief that the best way to introduce its services to businesses is through aggressive telemarketing.


In addition to standard advertisement practices, <YOUR.COMPANY.NAME> will gain considerable recognition through these additional promotional mediums:

Sales BrochureDirect MailLocal Media

Our important milestones are shown on the following table. Row by row, they track the need to follow up on strategy with specific activities. Most of the activities on the list can be easily tied to our strategic goals of selling more and enhancing the relationship with the customer.

0 5 10 15 20 25 30 35 40

WEEKS

FIRST CUSTOMER ADQUISITION

BUY OFFICE SUPPLY/PAPER/FAX PAPER/PRINTER INKS

MARKETING/WEB/BUSINESS CARDS/BROCHURES/ADS

EQUIPMENT/POS/HARDWARE/SOFTWARE/PHONES/DESK

ARCHITECTURE/DECORATION/REMODELING

OTHERS-LEGAL (PERMITS/TRADEMARKS/CORPS)

COMPLETE BUSINESS PLAN

GO FOR FINANCING

FILE TRADEMARK/PATENT/DOMAIN_NAME

INCORPORATION CORP

SEARCH FOR PERSONNEL

OPEN FOR BUSINESS

LUNCH MARKETING CAMPAING

LAUNCH WEB SITE

REPAY TO INVESTOR

TRAINING PERSONNEL

BREAK EVEN

TASK_11

TASK_12

TASK_13

TA

SK

PROYECT TIMELINE IN WEEKS

5.6 Marketing Programs

Advertising programs include direct response advertising, public relations program, co-marketing promotion, relationship building, direct sales efforts, telemarketing, trade shows, ads in print media and radio and television.

<YOUR.COMPANY.NAME> marketing propositions are designed to appeal to various target audiences, regardless of their level of sophistication.

<YOUR.COMPANY.NAME>will continually inform businesses and consumers through press releases and media placements about the temporary staffing service benefits as well as endorsements from other customers.


These two factors naturally create a curiosity from those not previously exposed to <YOUR.COMPANY.NAME>services, as well as the public sector seeking improved methods in temporary staffing management.

It is believed that this strategy will draw an abundance of curiosity from which a substantial market can be developed.

As an extra incentive for customers and potential customers to remember <YOUR.COMPANY.NAME> name, the company plans to distribute advertising specialties with the company logo. This will be an ongoing program for the company, when appropriate and where it is identified as beneficial.

5.6.1 Strategic Alliances

<YOUR.COMPANY.NAME>has strategic partnerships with the leading financial companies.

Management feels that these partnerships will enhance profits and help build critical mass and business momentum.

The partnering companies are given below.

Bank America United Erms+Erms Financial Services

Bank United

5.6.2 Competitive Edge

Activities contributing to company success include identifying emerging trends and integrate them into <YOUR.COMPANY.NAME> operations, respond quickly to technology changes/be there early, provide high-quality services, continue to invest time and money in marketing and advertising, continue to expand into specialty markets, and stay ahead of the “staffing trends.”

Our future is highly dependent upon measuring resources we need in order to execute our plans and be competitive. Our method includes qualitative and/or quantitative measurements of competition and by estimating our own company growth, sales, and cash flows.

<YOUR.COMPANY.NAME>prides itself on its high-quality customer service. Although excellent customer service is expected, not all provide this. <YOUR.COMPANY.NAME>is available at all times for customer inquiries.


5.7 Web Plan Summary

In year 2, The <YOUR_COMPANY>plans to develop a Web presence and in year 3, add e-commerce to its business model. <YOUR_COMPANY> website, WWW.<YOUR_COMPANY>.COM, will be a secondary channel of business serving as virtual business card and business portfolio, as well as its online “home.”

The website will showcase the temporary staffing services offer available, and provide design and trend information appropriate to the temporary staffing management services.

To further show off its expertise, The <YOUR_COMPANY>website will provide a resources area, offering articles, research, product information and website links of interest to its customers.

The <YOUR_COMPANY>website will mirror the image and branding elements showcased in the company and at the same time, keep up with the latest trends in user interface design.

The key to the website strategy will be combining a well designed front-end, with a back-end capable of capturing “hits” and customer data for use in future marketing endeavors.

5.7.1 Website Marketing Strategy

Market strategy in an Internet service business depends on recognition of expertise by the consumer. For <YOUR_COMPANY>, it will start with our existing brick-and-mortar customer base, informing them of our Internet presence and encouraging their word-of-mouth recommendations to others.

Further awareness will be heightened by utilizing search engine marketing, banner advertising, and affiliates.

5.7.2 Development Requirements

Costs that The <YOUR_COMPANY>will expect to incur with development of its website include:

Development Costs

Site Design - $1,000. Site Implementation - Free. The <YOUR_COMPANY>will utilize the

programming services of <PROFESIONAL_NAME>, husband and friend. <PROFESIONAL_NAME>, has 20 years of experience in software development including custom programming, data management, and Web development. His skills and services are profiled at his own website: WWW.XXX.COM.


http://WWW.XXX.COM/

The <YOUR_COMPANY>is grateful for the significant cost savings and advice that this connection will provide.

Ongoing Costs

Website name registration for .COM - $35 per year. Site Hosting - $30 or less per month.

Search Engine Registration - $100 per year.

Site Design Changes - Changes in the site, such as photography costs (estimated at $150-$200 per shot), are considered to be part of Marketing and Advertising.

5.8 Sales Forecast

The following table and chart illustrates the projected sales forecast of <YOUR.COMPANY.NAME>

SALES FORECASTSALES 2004 2005 2006RATIO % 0.0% 23.0% 50.0%DIRECT HIRE $8,400 $10,332 $15,498 TEMPORARY STAFFING $21,600 $26,568 $39,852 EXECUTIVE STAFFING $40,800 $50,184 $75,276 CONTRACT STAFFING $52,800 $64,944 $97,416 NATIONAL STAFFING SERVICES $52,080 $64,058 $96,088 BUSINESS SERVICES $64,800 $79,704 $119,556 TOTAL SALES $240,480 $295,790 $443,686 DIRECT COST OF SALES 2004 2005 2006RATIO % 0.0% 10.0% 40.0%DIRECT HIRE $2,400 $2,640 $3,696 TEMPORARY STAFFING $5,400 $5,940 $8,316 EXECUTIVE STAFFING $9,600 $10,560 $14,784 CONTRACT STAFFING $13,200 $14,520 $20,328 NATIONAL STAFFING SERVICES $13,440 $14,784 $20,698 BUSINESS SERVICES $17,280 $19,008 $26,611 SUB/DIRECT COST OF SALES $61,320 $67,452 $94,433


TOTAL SALES

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000

DIRECT HIRE

TEMPORARY STAFFING

EXECUTIVE STAFFING

CONTRACT STAFFING


BUSINESS SERVICES

2006

2005

2004

COST OF SALES

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

DIRECT HIRE

TEMPORARY STAFFING

EXECUTIVE STAFFING

CONTRACT STAFFING


BUSINESS SERVICES

2006

2005

2004

6 Management Team<YOUR_COMPANY>is owned and operated by <OWNER>. It will be formed as a sole proprietorship as there is no compelling reason to incorporate. <OWNER> will have ample insurance to help ward against personal liability issues.

<OWNER> has a degree in business from University of Miami. While at Miami her worked at a local Manpower branch office. Though her worked out of a need for money, he choose a Manpower out of her love for the staffing business.


Upon graduation, <OWNER> worked for Manpower corporate headquarters in <YOUR_CITY>, <YOUR_STATE> her found this to be a very valuable experience. Not only did it help strengthen her marketing skills by learning from a industry leading company, but it also gave her tremendous insight into the staffing industry.

After four years at Manpower corporate, <OWNER> finally got the gumption to leave Manpower corporate, move to <YOUR_CITY> and open her own staffing services firm.

<OWNER> believed that in order for her to be truly happy that her needed to be running her own company and that her wanted to concentrate on quality services.

Her thought he would be able to apply her in depth industry knowledge and create a company that addresses an unmet demand. Having done a lot of research, her concluded <YOUR_CITY> was a very good place for a temporary staffing services company.

6.1 Personnel Plan

The staff will consist of <OWNER> working full time. By month three there will be three Outside Sales Rep employees.

This will suffice until month five when a full-time employee will be brought on board. The employees will be chosen based on their people skills and on their love and knowledge of the services that <YOUR_COMPANY> sells.

PERSONNEL PLANYEARS 2004 2005 2006RATIO% 0% 20% 22%OWNER $20,800 $24,960 $29,952 MANAGER $31,200 $37,440 $44,928 ASISTANT $20,800 $24,960 $29,952 SALES_REP $15,600 $18,720 $22,464 SALES_REP $8,700 $10,440 $12,528 TOTAL PERSONNEL 5 5 6TOTAL TEMPORARY STAFFING $97,100 $116,520 $139,824


PERSONNEL SALARY

OWNER16%

MANAGER26%

ASISTANT16%

SALES_REP12%

SALES_REP30%

OWNER MANAGER

ASISTANT SALES_REP

SALES_REP

7 Financial PlanThe following sections outline the financial plan for <YOUR.COMPANY.NAME>.

7.1 Important Assumptions

<YOUR.COMPANY.NAME>is currently seeking funding in the amount of $80,000? for the purpose of increasing market share, hiring additional staff, and effectively advertising and promoting its services.

7.2 Use and distribution of proceeds:

Integrate new services, develop website, and expand into other markets.

Produce media relations package(s); further build the brand name through marketing, advertising, and promotion; and acquire additional office products.

Funding proceeds will also be used to increase <YOUR.COMPANY.NAME> capabilities, enhance brand name, and extend <YOUR.COMPANY.NAME> market area.

Funds will also be directed into business relations, television advertising, press releases, print advertising, Internet advertising, and website development and maintenance. The initial investment will be used as a "kick off" marketing budget. It


is expected that from this point on the company will self finance its expansion and marketing programs.

7.3 Projected Profit and Loss :

The financial projections present the company's expected financial position, results of operations and cash flow for the three years ending December 31, 2005.

Accordingly, the forecast reflects its judgment as of April 4, 2004, the date of this forecast, of the expected conditions and its expected course of action.

There will usually be differences between forecasted and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material.

Financial projections are based on sales volume at the levels described in the revenue section and presents, to the best of management's knowledge and belief, the company's expected assets, liabilities, capital, revenues, and expenses.

Further, the projections reflect management's judgment of the expected conditions and its expected course of action given the hypothetical assumptions.

Revenues are derived from sales of temporary staffing services to businesses.

Annual Growth: We expect growth to increase by 120% per year on the basis that the company will be stepping up marketing and sales efforts, as well as initiating new partnerships and alliances that will foster growth and extensions of our existing markets. These strategies are aimed to build momentum and critical mass within the company and its overall sales results.

Sales and Marketing Expenses: We group advertising and promotions.

Advertising and Promotions: We are allocating 10% of sales for marketing expenses in our projections.

Other: We estimate that we may need additional funds for other promotions and this is set aside in a special fund.

Rent: It is assumed that rent will be an average $1,500 per month.

Repairs and Maintenance: This is an estimated figure which is expected to grow with the setup of the firm.

Salary: Figures are estimated based on the national average for similar positions.

Legal and Professional Expense: Figures are estimated.

Utilities: Figures are estimated. Management estimates that utilities will be at $800 per month.


Bank Charges: Figures are estimated.

Telephone Expense: Figures are estimated. Management estimates that this expense will run at less than 1% of sales (0.50%).

Miscellaneous/other Expenses: Figures are estimated. Management foresees that these expenses outside of the common budgeted items will run at a flat rate per year.

Corporate Tax: Figure is estimated at 6.5% of sales.

Interest: Figure is estimated at 10% annually on the initial requirement of <$X??>.

PROFIT & LOSS (MONTHLY)

($5,000)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

1 2 3 4 5 6 7 8 9 10 11 12

SALESGross MarginNET PROFIT

PRO FORMA PROFIT AND LOSS (P&L) 2004 2005 2006SALES $240,480 $295,790 $443,686 Direct Cost of Sales $61,320 $67,452 $94,433 Other $0 $0 $0 TOTAL COST OF SALES $61,320 $67,452 $94,433 Gross Margin $179,160 $228,338 $349,253 Gross Margin % 292.17% 338.52% 369.84%EXPENSES: TEMPORARY STAFFING $97,100 $116,520 $139,824 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $0 $0 $0 Leased Equipment $0 $0 $0


Utilities $0 $0 $0 Insurance $0 $0 $0 Rent $0 $0 $0 Temporary staffing Taxes $11,652 $13,982 $16,779 Other $0 $0 $0 other $0 $0 $0 TOTAL OPERATING EXPENSES $108,752 $130,502 $156,603 Profit Before Interest and Taxes $70,408 $97,836 $192,650 Interest Expense 344 344 344Taxes Incurred $17,553 $24,115 $48,627NET PROFIT $52,510 $73,377 $143,678 NET PROFIT/SALES 21.84% 24.81% 32.38%

7.4 Projected Cash Flow

The following table and chart shows the projected cash flow of <YOUR.COMPANY.NAME>.

PRO FORMA CASH FLOWCASH FROM OPERATIONS 2004 2005 2006Cash Sales $120,240 $251,422 $377,133 Cash from Receivables $120,240 $44,369 $66,553SUBTOTAL CASH FROM OPERATIONS $240,480 $295,790 $443,686 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $30,000 $20,000 $22,222 Subtotal Cash Received $270,480 $315,790 $465,908 EXPENDITURES FROM OPERATIONS 2004 2005 2006Cash Spending (+Temporary staffing ) $97,100 $116,520 $139,824 Payment of Accounts Payable $30,000 $30,000 $30,000 SUBTOTAL SPENT ON OPERATIONS $127,100 $146,520 $169,824 Additional Cash Spent


Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 SUBTOTAL CASH SPENT $127,100 $146,520 $169,824 NET CASH FLOW $143,380 $312,650 $608,734 CASH BALANCE $286,760 $625,301 $1,360,848

CASH FLOW (3 YEAR)

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

1 2 3

NET CASH FLOW

CASH BALANCE

7.5 Break-even Analysis

The break-even analysis shows that monthly sales revenues will need to be $XX,XXX to break even.


BREAK-EVEN ANALYSIS:Monthly Units Break-even 555 Monthly Revenue Break-even $12,207 ASSUMPTIONS: Average Per-Unit Revenue $22.00 Average Per-Unit Variable Cost $5.67 Estimated Monthly Fixed Cost $9,063

BREAK-EVEN ANALYSIS

($2,000)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Monthly RevenueBreak-even

Average Per-UnitRevenue

Average Per-UnitVariable Cost

Estimated MonthlyFixed Cost

7.6 Projected Balance Sheet

The following table is the projected balance sheet.

PRO FORMA BALANCE SHEETASSETS 2004 2005 2006Cash $143,380 $456,030 $1,064,764 Accounts Receivable $10,000 $10,000 $10,000


Inventory $0 $0 $0 Other Current Assets $1,000 $1,000 $1,000 TOTAL CURRENT ASSETS $154,380 $467,030 ########Long-term Assets $10,000 $10,000 $10,000 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $10,000 $10,000 $10,000 TOTAL ASSETS $164,380 $477,030 ########Liabilities and Capital CURRENT LIABILITIES 2004 2005 2006Accounts Payable $1,000 $0 $0 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 SUBTOTAL CURRENT LIABILITIES $1,000 $0 $0 Long-term Liabilities $3,444 $3,444 $3,444 TOTAL LIABILITIES $4,444 $3,444 $3,444 Paid-in Capital $30,000 $20,000 $22,222 Retained Earnings $77,426 $380,209 $916,420 Earnings $52,510 $73,377 $143,678 Total Capital $159,936 $473,586 ########Total Liabilities and Capital $164,380 $477,030 $1,085,764 NET WORTH $159,936 $473,586 ########


$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

1 2 3

BALANCE SHEET (3 YEAR)

TOTAL ASSETS

TOTAL LIABILITIES

NET WORTH

7.7 Business Ratios

<YOUR.COMPANY.NAME>is a company that is seeking to grow rapidly in order to seize market share in a dynamic staffing industry.

RATIO ANALYSIS 2004 2005 2006 Industry Profile:SIC?SALES GROWTH 0.00% 23.00% 50.00%

PERCENT OF TOTAL ASSETS 2004 2005 2006 Accounts Receivable 6.08% 2.10% 0.92% Inventory 0.00% 0.00% 0.00% Other Current Assets 0.61% 0.21% 0.09% Total Current Assets 93.92% 97.90% 99.08% Long-term Assets 6.08% 2.10% 0.92% Total Assets 100.00% 100.00% 100.00%

Current Liabilities 22.50% 100.00% 100.00% Long-term Liabilities 77.50% 100.00% 100.00% Total Liabilities 2.78% 0.73% 0.32% Net Worth $159,936 $473,586 ######


PERCENT OF SALES 2004 2005 2006 Sales 100.00% 100.00% 100.00% Gross Margin 292.17% 338.52% 369.84% Selling, General & Administrative Expenses 0.00% 0.00% 0.00% Total Operating Expenses 45.22% 36.77% 24.51% Profit Before Interest and Taxes 29.28% 33.08% 43.42%

MAIN RATIOS 2004 2005 2006 Current 2.70% 2.10% 2.10% Quick 0.65% 0.00% 0.00% Total Debt to Total Assets 0.00% 0.00% 0.00% Pre-tax Return on Net Worth 304.58% 645.42% 753.29% Pre-tax Return on Assets 313.04% 224.02% 114.41% ADDITIONAL RATIOS 2004 2005 2006 Net Profit Margin 21.84% 24.81% 32.38% Return on Equity 32.83% 15.49% 13.28% ACTIVITY RATIOS 2004 2005 2006 Accounts Receivable Turnover 8.32% 3.98% 2.65% Collection Days 29.94 81.14 54.09 Inventory Turnover 0.00% 0.00% 0.00% Accounts Payable Turnover 50% 50% 50% Payment Days 587.08% 0.00% 0.00% Total Asset Turnover 68.35% 55.57% 37.05% DEBT RATIOS 2004 2005 2006 Debt to Net Worth 2.78% 0.73% 0.32% Current Liab. to Liab. 22.50% 0.00% 0.00%

LIQUIDITY RATIOS 2004 2005 2006 Net Working Capital $153,380 $467,030 ###### Interest Coverage 0.49% 0.35% 0.18%

ADDITIONAL RATIOS 2004 2005 2006 Assets to Sales 68.35% 55.57% 37.05% Current Debt/Total Assets 0.61% 0.00% 0.00% Acid Test 2.88% 0.74% 0.32% Sales/Net Worth 66.51% 160.11% 243.94% Dividend Payout 100.00% 100.00% 100.00%


staffing & temporary job agency - business plan · web viewstriving to be a leader in the...

Documents