Information Technology Business Plan

Table of Contents
INFORMATION TECHNOLOGY BUSINESS PLAN
INFORMATION TECHNOLOGY BUSINESS PLAN..............................................................................1

1.0 Executive Summary...............................................................................................................................1
Chart: Highlights..................................................................................................................................1
1.1 Objectives..........................................................................................................................................1
1.2 Mission...............................................................................................................................................2
1.3 Keys to Success..................................................................................................................................2
2.0 Company Summary...............................................................................................................................2
2.1 Company Ownership.........................................................................................................................2
2.2 Start-up Summary..............................................................................................................................2
Table: Start-up.....................................................................................................................................3
Chart: Start-up......................................................................................................................................5
2.3 Company Locations and Facilities.....................................................................................................5
3.0 Products and Services............................................................................................................................5
3.1 Sales Literature..................................................................................................................................5
3.2 Product and Service Description........................................................................................................6
3.3 Competitive Comparison...................................................................................................................6
3.4 Technology........................................................................................................................................7
3.5 Service and Support...........................................................................................................................7
3.6 Future Products and Services.............................................................................................................7
3.7 Fulfillment..........................................................................................................................................8
4.0 Market Analysis Summary....................................................................................................................8
4.1 Market Segmentation.........................................................................................................................8
Chart: Market Analysis (Pie)...............................................................................................................9
Table: Market Analysis........................................................................................................................9
4.2 Target Market Segment Strategy.......................................................................................................9
4.2.1 Market Trends...........................................................................................................................10
4.2.2 Market Growth..........................................................................................................................10
4.2.3 Market Needs............................................................................................................................10
4.3 Service Business Analysis...............................................................................................................11
4.3.1 Competition and Buying Patterns.............................................................................................11
4.3.2 Distributing a Service...............................................................................................................11
4.3.3 Main Competitors.....................................................................................................................12
4.3.4 Business Participants................................................................................................................12
5.0 Strategy and Implementation Summary...............................................................................................12
5.1 Competitive Edge.............................................................................................................................13
5.2 Strategy Pyramid..............................................................................................................................13
5.3 Value Proposition.............................................................................................................................13
5.4 Sales Strategy...................................................................................................................................13
5.4.1 Sales Forecast............................................................................................................................14
Chart: Sales by Year......................................................................................................................14
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Table of Contents
Chart: Sales Monthly.....................................................................................................................14

Table: Sales Forecast.....................................................................................................................15
5.5 Milestones........................................................................................................................................16
Table: Milestones...............................................................................................................................16
5.6.1 Sales Programs..........................................................................................................................17
5.6.2 Positioning Statement...............................................................................................................17
5.6.3 Pricing Strategy.........................................................................................................................17
5.6.4 Promotion Strategy...................................................................................................................18
5.6.5 Distribution Strategy.................................................................................................................18
5.6.6 Marketing Programs..................................................................................................................18
5.7 Strategic Alliances...........................................................................................................................18
6.0 Management Summary........................................................................................................................19
6.1 Organizational Structure..................................................................................................................19
6.2 Personnel Plan..................................................................................................................................20
Table: Personnel.................................................................................................................................20
6.3 Management Team...........................................................................................................................21
6.4 Management Team Gaps.................................................................................................................21
7.0 Financial Plan.......................................................................................................................................22
7.1 Important Assumptions....................................................................................................................22
Table: General Assumptions..............................................................................................................22
................................................................................................................................................................22
7.2 Key Financial Indicators..................................................................................................................23
Chart: Benchmarks.............................................................................................................................23
7.3 Break-even Analysis........................................................................................................................24
Chart: Break-even Analysis...............................................................................................................24
Table: Break-even Analysis...............................................................................................................24
7.4 Projected Profit and Loss.................................................................................................................25
Chart: Profit Monthly.........................................................................................................................25
Chart: Profit Yearly............................................................................................................................25
Chart: Gross Margin Monthly............................................................................................................26
Chart: Gross Margin Yearly...............................................................................................................26
Table: Profit and Loss........................................................................................................................27
7.5 Projected Cash Flow........................................................................................................................28
Chart: Cash.........................................................................................................................................28
Table: Cash Flow...............................................................................................................................29
................................................................................................................................................................29
7.6 Projected Balance Sheet...................................................................................................................30
Table: Balance Sheet..........................................................................................................................30
Table: Ratios......................................................................................................................................31
Table: Sales Forecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
Page 2
Table of Contents
......................................................................................................................................................................3
Table: General Assumptions........................................................................................................................4
......................................................................................................................................................................4
Table: Profit and Loss..................................................................................................................................5
......................................................................................................................................................................6
Table: Cash Flow.........................................................................................................................................7
Table: Balance Sheet....................................................................................................................................8
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Information Management Hawai'i, Inc.
1.0 Executive Summary

By focusing on its strengths, its key customers, and the underlying values they need,
Information Management Hawai'i, Inc. (IMH) will increase sales steadily in its first three years,
while also maintaining the gross margin on sales, with a focus on cash management and
working capital.
This business plan leads the way. It renews our vision and strategic focus: adding value to our
target market segments, and reinforcing our ties with businesses in our local markets. It also
provides the step-by-step plan for improving our sales, gross margin, and profitability.
This plan includes this summary, chapters on the company, products and services, market
focus, action plans and forecasts, management team, and the financial plan.
Chart: Highlights
1.1 Objectives
1. Achieve healthy earnings (EBIT) in the first year of operation.
2. Maintain a midrange gross margin throughout the entire operation.
3. Maintain just-in-time (JIT) inventory levels, or 11 turns per year.
4. Increase sales modestly but steadily in the second and third years.
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1.2 Mission
To provide the Hawai'i business community with quality brand-name Information Technology
business information solutions, reliable and professional Technical Support, and unparalleled
Customer Service through the application of the principles of Kina`ole and heartfelt aloha, and
to earn a fair profit for our employee-owners and stakeholders by embracing sound, ethical
business practices.
1.3 Keys to Success
The keys to our success are:
Building and maintaining strategic alliances with our manufacturers and other industry
related business partners;
Adopting a customer- and market-focused sales and marketing paradigm; and,
Managing the business by implementing, and consistently measuring and adjusting the
fundamentals of a Balanced Scorecard:
o
o
o
o
Financial Goals vs. Results

Internal Business Process Goals vs. Results
Employee Learning and Growth Goals vs. Results
Customer Satisfaction Goals vs. Results
2.0 Company Summary

Information Management Hawai'i, Inc., will sell and service digital office information systems for
Hawai'i's businesses, with a focus on the Neighbor Island business community. IMH will be
formed as the result of the acquisition of three existing businesses: Maui Office Machines, Inc.;
Electronics Hawai'i, Inc.; and, Kauai Office Equipment, Inc.
2.1 Company Ownership
IMH will be privately-held [C corporation] owned in majority by the IMH Employee Stock
Ownership Trust. There are currently 15 employees, and all will own equal shares in the ESOT.
New employees will be given the opportunity to become vested in the Employee Stock
Ownership Plan (ESOP) after a suitable probationary period.
2.2 Start-up Summary
Our start-up costs will be $1M, which includes $450,000 for the acquisition of the Maui and Hilo
operations of Servco Integrated Office Technology.
The remainder of the funds will be used for:
Initial Inventory: $200,000

Initial Capitalization: $225,000
Legal, Insurance, Rent & Misc: $125,000
The start-up funding will be financed by loans arranged through the Small Business
Development Center, and by the Hawai'i Community Loan Fund, and the Small Business
Administration as a guarantor. Start-up assumptions are shown in the following table and chart.
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Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal/Accounting
Stationery etc.
Brochures
Consultants
Insurance
Rent
Software & IT (Web)
SPI Buyout
Setup New Company/ESOP
Total Start-up Expenses
$10,000
$1,500
$1,000
$7,500
$25,000
$15,000
$40,000
$450,000
$25,000
$575,000
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$225,000
$200,000
$0
$0
$425,000
Total Requirements
$1,000,000
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Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$575,000
$425,000
$1,000,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$200,000
$225,000
$0
$225,000
$425,000
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$1,000,000
$0
$0
$0
$1,000,000
Capital
Planned Investment
Investor 1
Investor 2
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital
Total Capital and Liabilities

Total Funding
$0
$0
$0
$0
$0
($575,000)
($575,000)
$425,000
$1,000,000
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Chart: Start-up
2.3 Company Locations and Facilities

We have two locations, one in Kahului, Maui and the other in Hilo, Hawai'i. The two offices are
presently being leased by Servco Pacific, Inc., and we will rent from them on a month-to-month
basis until we are able to relocate to more suitable facilities. On Kauai, we have a subcontractor agreement with Kauai Office Equipment to handle installations and service.
3.0 Products and Services
IMH will acquire an existing operation whose primary business has been the sale and service of
business appliances (copiers, facsimiles, printers, etc.) and has operated as a part of the office
equipment industry. We will build from this base to transform the business into a value-added
provider of the emerging services and technologies of the new Information Industry. Following
the lead of Canon, USA and other manufacturers which we represent, we will approach the
marketplace from a total systems solutions viewpoint.
This new paradigm will begin with an analysis of the client's existing and planned business
processes, and will provide total workflow solutions utilizing multifunctional imaging platforms
and information distribution systems. These systems will be backed by professional and reliable
technical service and proactive customer service. By forming strategic alliances with local
Information Industry Value-Added Resellers, we will be able to offer turnkey Local Area Network
(LAN) systems and the ability to retrofit existing LAN and peer-to-peer systems.
3.1 Sales Literature
Copies of our product and sales literature are attached as appendices. Of course, one of our
first tasks will be to change the message of our literature to make sure we are selling the
company, rather than the product.
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3.2 Product and Service Description

IMH will market and sell brand name business information distribution systems and hardware,
technical service and support for these products, and the consumable supplies used by these
systems. We will be a single-source provider for business information and imaging products and
services.
After researching our various manufacturer's offerings and evaluating our core competencies,
we will focus our marketing and sales efforts around the digital products offered by Canon USA
and eCopy, Inc. We will supplement this product line with Lexmark and Hewlett Packard printer
products. As we continue to transition the company into the digital marketplace, we will form
alliances with additional IT manufacturers and suppliers who can round out our product and
services line.
Hardware product offerings will include:
Canon ImageRunner multifunctional products (scan/copy/print/fax)

Canon multifunctional facsimiles (print/fax)
Canon Graphics reproduction products (commercial color)
Canon Micrographics products (electronic document storage)
Canon Printer products (color)
Lexmark Printer products (monochrome and color)
Hewlett Packard Printer products (laser)
Software offerings will include:
eCopy ScanStation
eCopy ShareScan
eCopy Desktop
Canon Image Platform (document distribution)
Service Products include:
All-inclusive maintenance agreements (on-call service and supplies)

Walk-in service (time and materials)
Warranty Repairs (certain Canon consumer products)
Sale of consumable products for all brand names (Canon, Ricoh, Xerox, HP, Lexmark)
Professional Services include:
Information Workflow analysis and design

Network design and installation (sub-contracted)
3.3 Competitive Comparison

The only way we can hope to differentiate well is to define the vision of the company to be an
information technology ally to our clients. We will not be able to compete in any effective way
with the large mainland-based office equipment companies by selling boxes or products as
appliances. We need to offer a real alliance to our local customers.
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The benefits we sell include many intangibles: confidence, reliability, knowing that somebody
will be there to answer questions and help at the important times. These are complex products
that require serious knowledge and experience to use. Our competitors tend to sell only the
products themselves, and very little in the way of after-sale training and support.
Unfortunately, we cannot sell the products at a higher price just because we offer services; the
market has shown that it will not support that concept. We have to also sell the service and
consumable supplies and charge for them separately. This monthly recurring revenue is the
foundation of our financial stability.
3.4 Technology
New technology has changed almost everything about the traditional office equipment
(copier) industry, and for all practical purposes it no longer exists. The new Information
Industry has emerged because of the technology of convergence. The primary driver of
convergence of different forms of information is technological change, specifically the rapid
diffusion of digital technology into an ever-wider array of information businesses. Beyond
digitization, dramatic changes in computing and telecommunications industries (mainly in faster
microprocessors and increasing bandwidth) are also driving convergence.
IMH will make convergence the theme of its vision, planning, and marketing strategies. We will
move into the new Information Industry's technology with the aim of bringing the most efficient
workflow solutions to our clients while providing value-added customer support and service,
and earning a reasonable profit in the process.
3.5 Service and Support
Our strategy hinges on providing unparalleled service and support, which is critical to setting us
apart from the competition. We need to differentiate on service and support in order to become
true partners with our clients. Our service offers will include:
Uptime guarantees: we will include "uptime guarantees" with our all-inclusive service
agreements to insure maximum productivity for our clients.
Internal training: the "learning and growth" part of our Balanced Scorecard performance
measurement strategy will include the requirement that our Systems Engineers and sales
professionals become network and IT certified by the end of FY2003.
Customer training: we will package comprehensive customer training programs with all of
our offerings, to include systematic follow up and refresher training.
Upgrade analysis: we will periodically assess our client's business processes and
requirements, and offer cost-effective upgrade solutions to meet changing needs.
3.6 Future Products and Services

Beginning at start up, we will explore and research new information technologies for inclusion in
our product offerings. The products which we choose will be in line with our vision to transition
the company from being an appliance seller, to being a provider of total information
management solutions. These convergent information products will include:
Wireless LAN systems

Information management systems (hardware and software)
Tele-business and E-Commerce systems
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Media transport and reproduction (distribute and print)
3.7 Fulfillment
We have an established relationship with our manufacturers and suppliers, and will be able to
take advantage of all discounts and promotions in order to keep our margins at roughly 49%
throughout the operation. We will also implement and employ "just-in-time" inventory
strategies for hardware, supplies, and service parts orders to further strengthen our margins.
As we continue to grow the business, we will evaluate other IT industry manufacturers and
product lines to strengthen our offerings with a view primarily to quality and margin
advantages.
4.0 Market Analysis Summary
IMH will focus on local markets, including small offices and home offices (1-9 employees),
medium to large businesses (10-99 employees), corporate Hawai'i (multiple locations or 100+
employees), and local government offices.
4.1 Market Segmentation
Our market segmentation scheme is fairly straightforward, and focuses on all Neighbor Island
businesses. The information contained in our customer analysis table is taken directly from the
2000 US Census and government directories, and clearly shows that our largest market
potential is the small office and home office (SOHO) segment. This segment is largely
overlooked by most of our competitors because of its "low end" buying habits, and a reluctance
to compete with the major retail chain box movers. We will target the SOHO market segment
with value-added and affordable business solutions customized to its unique needs, and offer
the same quality of service and support as are afforded the larger businesses.
The next largest market segment is medium to large businesses, and is the arena where we
now focus most of our sales efforts. We will continue to target this segment, but with a different
approach than our predecessors. The strategy used by former management has been to bring
in selected products, and then attempt to find a buyer. This resulted in inventory overstock,
and obsolescence. We will work with the medium to large businesses to determine their needs,
and design customized solutions before ordering the required systems (JIT inventory strategy).
This segment will remain an extremely important part of our marketing mix, and contains a
large portion of our current clients. A majority of our systems upgrade opportunities and repeat
business will come from this market segment initially.
Although the Corporate Hawai'i market segment is the smallest in numbers, it has the potential
to provide a significant share of our revenues and growth (the 80/20 rule). We have a
scattering of current clients in the Corporate Hawai'i segment, but we need to do a better job of
penetrating this lucrative end of the market. We will accomplish this by offering professional
services to include workflow and network design, MIS support, and other value-added support
benefits such as "uptime guarantees." We will develop long-term relationships within this
segment, and earn their business.
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The local government market segment is unique in that we act primarily as a "middle man" for
our manufacturers due to GSA price schedules and other national government-only programs.
This segment is fiercely competitive, very price-focused, and buying decisions are often
influenced by "who you know," as well as price. We are fortunate in that we have longestablished relationships within the County and State government agencies, and have many
loyal clients in this segment. We will increase our share of this market segment by offering the
same value-added service and support benefits that we bring to our commercial clients.
Chart: Market Analysis (Pie)
Table: Market Analysis
Market Analysis
Potential Customers
Growth
SOHO
Medium/Large Business
Corporate Hawaii
Government Offices
Total
4%
4%
3%
2%
3.69%
Year 1
Year 2
Year 3
Year 4
Year 5
6,800
2,100
140
1,225
10,265
7,072
2,184
144
1,243
10,643
7,355
2,271
148
1,262
11,036
7,649
2,362
152
1,281
11,444
7,955
2,456
157
1,300
11,868
CAGR
4.00%
3.99%
2.91%
1.50%
3.69%
4.2 Target Market Segment Strategy

Developing a market strategy is a departure from the way the company has been managed in
the past. We will change the paradigm of being a product- and price-focused sales organization,
to that of becoming a customer- and market-focused organization, with all departments sharing
responsibility for customer satisfaction. We will accomplish this paradigm shift through the
implementation of a balanced scorecard philosophy of management, with special attention to
employee learning and growth.
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As mentioned previously our market segmentation strategy is straightforward, and addresses

all components of the Neighbor Island business community. Planning and implementing specific
strategies for each of the four identified segments will be an on-going process, and we will
consult with marketing specialists, and our manufacturers, to further refine these efforts as we
develop our marketing plan.
4.2.1 Market Trends
The most significant trend in today's business-to-business marketplace is the move from analog
to digital technology, and from stand-alone workflow functions to multifunctional platforms
which are connected to a network. It is this trend that has caused many of the major players in
the outdated office equipment (copier) industry (Xerox, IKON, etc.) to falter, and see their
profits decline. This is true mainly because of their inability to change rapidly from an "analog
mentality" and move forward in applying the emerging convergence of digital information
technologies to the marketplace.
That is the primary reason that IMH has chosen Canon USA as its preferred manufacturer.
Canon has led the way in the industry with it's digital technology innovations, and its ability to
bring both the product and the concept to the marketplace. We will follow Canon's lead and
bring this efficient, productivity-enhancing technology to Neighbor Island businesses.
4.2.2 Market Growth
As computer prices continue to fall, unit sales increase. The published market research on sales
of personal computers is astounding, as the United States market alone is absorbing more than
30 million units per year, and sales are growing at more than 20 percent per year. We could
quote Dataquest, Infocorp, IDC, or others; it doesn't matter, they all agree on high growth of
CPU sales.
This rapid growth rate holds true for productivity systems which connect to the computers
being sold. The stand-alone analog systems and appliances which abound in the business
marketplace today, will be replaced by connected digital convergence systems in the coming
months and years. IMH will position itself to be a value-added provider of this rapidly emerging
technology for new businesses, while continuing to maintain and upgrade our current
analog customer base.
4.2.3 Market Needs
All businesses have in common a need to be continuously productive, and they rely on their
service providers and vendors to sustain their productivity. Effectively filling this need requires
that the vendor bring to the table sound planning, quality products, reliable service, and a true
partnership and support relationship.
Specific business needs include the ability to gather, compile, analyze, and distribute
information in various media formats. This is where IMH's strengths will be most beneficial to
our clients, both big and small. Anyone can sell the "box" at an attractive price, but only a true
value-added provider can offer the peace-of-mind that comes from a customer-focused
approach to the relationship.
Primarily due to geographic isolation and smaller populations, the Neighbor Island business
community has an additional common need of being able to rely on other locally-based vendors
and suppliers for quick, reliable, customer service and support. Having to call someone on
Page 10
Oahu, or the mainland, to place a service call, or to order supplies, or get an answer to a simple
billing question, is both an irritant and a hindrance to most Neighbor Island-based businesses.
Our primary goal is to fill this need by bringing true pro-active, and total, customer service to
the Neighbor Island business community, and to gain their confidence and loyalty. This will
become one of our underlying strengths.
4.3 Service Business Analysis
IMH is a part of the Information Industry, and specializes in providing information management
systems and technology for business processes. We envision that a converged information
industry operating within the context of an advanced information infrastructure will be a huge
boost for U.S. businesses. Several Washington think tanks estimate that it could spur more
than $300 billion annually in new sales and increase worker productivity by 20 to 40 percent.
At the present time, an estimated two-thirds of all American jobs are information related, and
that number will increase as the shift from manufacturing to service industries continues. The
convergence of information industries will continue because the technological and business
imperatives are compelling. If one company does not see the possibilities, another will.
4.3.1 Competition and Buying Patterns
Business decision makers and finance managers understand the concept and value of service
and support, and are much more likely to pay for it when the offering is clearly stated.
There is no doubt that we compete more against the box pushers than against other service
providers. We need to effectively compete against the idea that businesses should
buy information platforms as plug-in appliances that don't need ongoing service, support, and
training.
Our research and experience has indicated that our target market segments think about price,
but would buy based on quality service if the offering were properly presented. They think
about price because that is what is traditionally presented to them first. We have very good
indications that many would rather pay 10-20% more for a relationship with a long-term
vendor providing back-up and quality service and support. They end up in the box-pusher
channels because they are not aware of the alternatives.
Availability is also very important. The business decision makers tend to want immediate, local
solutions to problems.
4.3.2 Distributing a Service
Medium to large business segment buyers are accustomed to buying from vendors who visit
their offices. They expect the copy machine vendors, office products vendors, and office
furniture vendors, as well as the local graphic artists, freelance writers, or whomever, to visit
their office to make their sales.
Unfortunately our SOHO target segment buyers may not expect to buy from us. Many of them
turn immediately to the retail superstores (office equipment, office supplies, and electronics),
the Web, and mail order to look for the best price, without realizing that there is a better option
for them for only a little bit more. We will overcome this hurdle through innovative service
offerings, and targeted marketing.
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4.3.3 Main Competitors

In our higher-end targeted segments (medium to large businesses, corporate Hawai'i, and
government offices), the primary competitors are Xerox and Lanier. The secondary "low
end" competitors on the Neighbor Islands are Maui Office Machines and Business Equipment on
Maui, and Electronics Hawai'i and Stationers on the Big Island. Our overall competitive strategy
in these segments will be Canon's superior technology, and superior value-added service and
support.
In our SOHO target segment, the primary competitors are the superstores: Office Max, Office
Depot, Sears, and to some extent Costco, Hopaco, and the Web. While these outlets can offer
lower prices, they offer no (or very little) aftermarket service or support. That is our
competitive advantage in this segment, and will differentiate us from these "box movers."
4.3.4 Business Participants
The traditional office equipment (copier) industry has been dominated by only a few major
manufacturers: Xerox, Canon, Oce, and Ricoh (and its OEM products - Lanier, Savin, and
Gestetner); and then come the low-end players: Sharp, Toshiba, and Minolta. With the
exception of Xerox, which maintains its own sales force, the other manufacturers distribute and
sell mainly through authorized dealers.
The rapidly emerging Information Industry's digital convergence products will most likely be
dominated by the same participants as described above. While Xerox has been a past leader in
the manufacture and sales of analog products, Canon has emerged as both an innovator,
and the leader, in the new Information Industry with their ImageRunner digital products and
Image Platform information distribution systems. Canon is also (and has been for many years)
the front runner in color repro-graphic systems, and holds the most patents of any
manufacturer in the industry.
5.0 Strategy and Implementation Summary
We must differentiate ourselves from the box pushers. We need to establish our business
offering as a clear and viable alternative for our target markets, to the price oriented sales pitch
to which they are accustomed.
From the standpoint of the office equipment (copier) industry the paradigm has been:
Copier centric if they're not in the market for a copier, they're not a prospect.
Price, price, price must save prospect money in order to gain interest.
Box movers selling features.
Calling on influencers office managers and purchasing departments.
30-day sales window war with competition mainly on price.
The industry's cheese has been moved. In order to shift to a more contemporary paradigm, our
marketing and sales efforts will need:
A
A
A
A
new
new
new
new
attitude we are at the beginning of a product/technology convergence.

approach total account management and control.
set of behaviors solution selling, joint prospecting, systems auditing.
marketing concept customer oriented, profit oriented, integrated efforts.
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5.1 Competitive Edge

Our competitive edge is our positioning as a 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 should both
stay with IMH, and refer us to other businesses. In close-knit communities like the Neighbor
Islands, reputation is extremely important, and word-of-mouth advertising is invaluable.
5.2 Strategy Pyramid
Our main strategy will be placing emphasis on service and support, and our main tactics are
networking expertise, systems training, and implementing a customer relationship management
system (CRM) from e-automate. Our specific programs for networking include mailers and
internal training. Specific programs for end user training include direct mail promotion, and onsite customer programs. Implementing the CRM software and training will be coordinated with
the e-automate Corporation.
Our second strategy is emphasizing relationships. The tactics are marketing the company
(instead of the products), more regular contacts with the customer, and increasing sales per
customer. Programs for marketing the company include new sales literature, and direct mail.
Programs for more regular contacts include call-backs after installation, direct mail, and sales
management. Programs for increasing sales per customer include upgrade mailings and sales
training.
5.3 Value Proposition
IMH offers its clients peace-of-mind by being a vendor who acts as a strategic ally, and delivers
quality products backed by premium service and support, at a premium price.
5.4 Sales Strategy
We will sell the company and its ability to act as an ally. We will sell IMH, and the reputation of
the industry-leading manufacturers it represents.
We will sell our service and support. The hardware is like the razor, and the support, service,
software, and training, are the razor blades. We need to serve our customers with total
solutions, and not just product features. The products are a means to arriving at end solutions.
The Yearly Total Sales chart summarizes our conservative sales forecast. We expect sales to
increase from $3.1 million in the first year to more than $4 million in the third year of this plan.
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5.4.1 Sales Forecast

The important elements of the sales forecast are shown in the following Chart, and Table 5.4.1.
Non-hardware sales increase to almost $2 million total in the third year, or 47% of total sales.
Chart: Sales by Year
Chart: Sales Monthly
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Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Hardware - Image Platforms

Hardware - Printers
Hardware - Facsimiles
Hardware - Misc (TW, Shrd)
Professional Services
Government (Comp)
Supplies (Toner/Paper)
Service - Agreements/Repairs
Equipment Rentals
Other
Total Sales
$1,092,956
$69,615
$142,711
$45,250
$29,808
$87,019
$501,228
$946,764
$243,653
$31,327
$3,190,329
$1,256,899
$80,057
$164,117
$52,037
$34,279
$100,072
$576,412
$1,088,779
$280,200
$36,026
$3,668,878
$1,445,434
$92,066
$188,735
$59,843
$39,420
$115,082
$662,874
$1,252,095
$322,230
$41,430
$4,219,209
Direct Cost of Sales

Hardware - Printers
Government (Comp)
Equipment Rentals
Other
Subtotal Direct Cost of Sales
Year 1
$677,632
$45,250
$88,481
$31,675
$14,904
$30,457
$225,553
$378,706
$134,009
$7,832
$1,634,497
Year 2
$772,501
$51,585
$100,868
$36,109
$16,990
$34,720
$257,130
$431,724
$152,770
$8,928
$1,863,326
Year 3
$880,651
$58,807
$114,989
$41,165
$19,369
$39,581
$293,128
$492,166
$174,158
$10,178
$2,124,192
Sales
Page 15
5.5 Milestones
The following table lists important program milestones, with dates and managers in charge, and
budgets for each. The milestone schedule indicates our emphasis on planning for
implementation. The most important programs are the sales and marketing programs listed in
detail in the previous topics.
Table: Milestones
Milestones
Milestone
SIOT (NI) Valuation
Complete Business Plan
Submit Letter of Intent
Choose New Company Name
Secure Startup Funding
Retain Attorney/CPA
Negotiate Purchase Agreement
Set Up ESOT/ESOP
Set Up New Corporation
Solicit Board Members
HR Roll-Over Plan (SPI to IMH)
Purchase e-Automate Software
A/P & A/R into e-Automate
Business Licenses/Permits
Customers into e-Automate
Inventory into e-Automate
Letter To Vendors/Customers
New Stationary/Brochures
Obtain Insurance
Switch Utilities To IMH
Web Site Development
Complete Marketing Plan
IMH Operations - Day 1
Bd. of Dir. Mtg. (First)
All Company - Kick Off Mtg.
Sales Strategies & Programs
Marketing Strategy & Programs
First Quarter BP Review
Headcount Review
Bd. of Dir. Mtg. (Qtrly)
Cost IT Training Sources
Second Quarter BP/MP Review
Enroll Team in IT Training
Third Quarter BP/MP Review
Fourth Quarter BP/MP Review
New 3-Year BP Due
New 3-Year Mktg. Plan Due
Name me
Totals
Start Date
5/1/2001
5/14/2001
6/1/2001
6/15/2001
6/15/2001
6/15/2001
6/18/2001
6/30/2001
6/30/2001
6/30/2001
7/1/2001
8/1/2001
8/1/2001
8/1/2001
8/1/2001
8/1/2001
8/1/2001
8/1/2001
8/1/2001
8/1/2001
8/1/2001
8/1/2001
9/3/2001
9/4/2001
9/4/2001
9/4/2001
9/4/2001
12/10/2001
12/10/2001
12/10/2001
3/4/2002
3/4/2002
3/18/2002
6/3/2002
6/3/2002
9/2/2002
9/2/2002
9/2/2002
9/2/2002
9/16/2002
End Date
5/31/2001
6/22/2001
6/15/2001
7/31/2001
7/31/2001
7/31/2001
8/15/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
8/31/2001
9/3/2001
9/7/2001
9/7/2001
9/30/2001
9/30/2001
12/14/2001
12/14/2001
12/14/2001
3/8/2002
3/8/2002
3/29/2002
6/7/2002
6/7/2002
9/5/2002
9/5/2002
9/13/2002
9/13/2002
9/30/2002
Budget
$0
$200
$0
$0
$0
$10,000
$0
$12,500
$12,500
$0
$0
$20,000
$0
$500
$0
$0
$0
$2,500
$25,000
$1,000
$10,000
$2,500
$0
$1,000
$750
$2,500
$3,500
$0
$0
$1,000
$0
$0
$2,500
$0
$1,000
$0
$1,000
$0
$0
$1,000
$110,950
Manager
BH
BH
BH
All
BH/All
BH
BH/All
BH/LW
BH/LW
BH
BH/LW
BH/LW
LW
BH/LW
JM/BK
LW/JA/EO
LW
LW
BH/LW
LW
BH
All
All
All
All
JM
BK
All
BH/EO/JA
All
BH/EO/JA/BK
All
All
All
All
All
All
All
All
All
Department
Admin
Admin
Admin
All
All
Marketing
Admin
All
All
All
Admin
Admin
Admin
Admin
Sales
Service
Admin
Admin
Admin
Admin
Admin
Sales
All
All
All
Sales
Sales
All
Sales/Svc
All
Sales/Svc
All
All
All
All
All
All
All
All
All
Page 16
5.6 Marketing Strategy

The marketing strategy is the core of our main strategy:
Emphasize service and support

Build a relationship business
Develop specific programs for each target market segment:
o
o
o
o
SOHO - cost effective service/product "turn key" packages, wireless LAN systems
Medium to Large Businesses - customer recovery incentives, uptime guarantees,
workflow/process surveys
Corporate Hawai'i - workflow/process surveys, uptime guarantees, LAN installation
and administration
Government Offices - workflow/process surveys, uptime guarantees, GSA rates and
incentives
5.6.1 Sales Programs

Specific sales programs will be included in our new Marketing Plan, and will be included in this
Business Plan as they are finalized. In general however, our sales programs will be centered
around conducting workflow and information distribution analyses, direct mail, and placing an
emphasis on the benefits which IMH and its manufacturers will be able to offer its clients
through "total care" service and support.
5.6.2 Positioning Statement
For businesses who want to be sure their information distribution systems are always working
reliably, IMH is a vendor and trusted strategic ally who makes certain their systems work, their
people are trained, and their down time is minimal. Unlike the product/price oriented vendors,
it knows the customer and goes to their site when needed, and offers proactive support,
service, training, and installation.
5.6.3 Pricing Strategy
We must charge appropriately for the high-end, high-quality service and support we offer. Our
revenue structure has to match our cost structure, so the salaries we pay to assure good
service and support must be balanced by the revenue we charge.
We cannot build the service and support revenue into the price of products. The market can't
bear the higher prices and the buyer feels ill-used when they see a similar product priced
lower with the competition. Despite the logic behind this, the market doesn't support this
concept.
Page 17
5.6.4 Promotion Strategy

We will employ the following general promotional strategies for the various market segments:
SOHO: We will depend on periodic local newspaper advertising, to reach new buyers in this
segment. We will also utilize direct mail and and the resources of the local Chambers of
Commerce and other affinity groups to reach this segment. The message will emphasize
service first, and "complete product and service packaging" as a secondary theme.
Medium to Large Businesses: Direct face-to-face contact (direct sales) will continue to be
our primary strategy for this market segment. Direct selling will be supplemented by
periodic promotional direct mailings and personalized system upgrade opportunities.
Corporate Hawai'i: This segment will be handled by direct contact and relationship building
only. We will make personal presentations to the decision makers in this group, and stress
our service and technical benefits and advantages.
Government Offices: We will utilize a combination of direct mail and face-to-face
promotional strategies with this segment, and the message will be the local service and
technical advantages of IMH. We will produce an attractive RFQ/RFP response package to
accompany our submissions.
5.6.5 Distribution Strategy

IMH is first and foremost a direct sales organization, meaning that we must present our
services and products directly to the majority of our customers and clients. Having said that, for
our planned penetration into the SOHO market, we will need to establish a presence as a ValueAdded Reseller (VAR) for certain low-end product lines which don't carry the margins
necessary to sustain the costs of direct sales. We will plan our new locations accordingly.
5.6.6 Marketing Programs
As we work to complete this Business Plan, we are simultaneously working on our Marketing
Plan. As you can see from the milestones table, we anticipate completion of our detailed
Marketing Plan by 9/30/01, or one month from start-up. Because we are acquiring an on-going
business, the shift to our vision of customer- and market-focused strategies will not happen
overnight. We must plan this shift carefully, and implement it judiciously, so as not to disrupt
our immediate operations. We have budgeted for, and will utilize, marketing advisors and
consultants (including our manufacturers) in the design of our Marketing Plan.
5.7 Strategic Alliances
Our alliances with our manufacturers, and especially Canon USA, will be the most pivotal to our
success. We will remain a Canon Authorized Dealer, and continue to enjoy all of the benefits of
this long-standing relationship.
We will form alliances with other locally-based VARs and computer network providers to enable
us to provide complete turnkey packages for our clients. These relationships will be included in
our Marketing Plan.
Page 18
6.0 Management Summary

Our management philosophy is simple and is an integral part of our values: doing right things
right, the first time (Kina'ole).
IMH will be an employee-owned company and we all share the same vision of providing our
clients (who in many cases are friends and neighbors) with the very best in customer service period. We will encourage personal growth, creativity, and enable individual empowerment to
achieve this goal. We will manage the business by setting achievable Balanced Scorecard goals,
measuring them, and making mid-stream adjustments as necessary.
6.1 Organizational Structure
Our team includes 15 employees initially, and is organizationally flat. The departmental
divisions are sales and marketing, service, and administration. Operational managers include:
President and General Manager: Oversees all operations, with primary responsibilities for
sales and marketing. Functioning as the GM, this position will spend a good deal of time in
the field assisting the Account Managers, and helping to build and maintain client
relationships.
Secretary/Treasurer and Administrative Manager: Oversees all administrative functions
including inventory, A/P and A/R, banking, HR, and vendor and manufacturer relations.
Primary contact point for customer service issues and follow up. Will be assisted by an
Office Manager in the Hilo branch.
Systems Manager (two positions - Big Island and Maui): Oversees all service issues
including service agreements, service call prioritization and response, carry-in service,
customer support, and systems training and development. Will be assisted by Systems
Engineers, and Systems Technicians.
Page 19
6.2 Personnel Plan

The total head count moving over from Servco at the time of the acquisition will be 13. We are
adding two former employees at startup to round out our team, for a total startup head count
of 15.
There are an additional six positions shown as "vacant" in the Personnel plan. During each
quarterly business plan review, we will assess the need to fund these positions to sustain our
growth, and more evenly distribute the workload.
Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
$0
$0
$0
$0
$0
$0
$0
$0
$0
$38,250
$38,250
$38,250
$38,250
$0
$0
$153,000
$40,545
$40,545
$40,545
$40,545
$0
$0
$162,180
$42,978
$42,978
$42,978
$42,978
$0
$0
$171,911
$57,600
$45,600
$31,200
$0
$0
$0
$134,400
$61,056
$48,336
$33,072
$0
$0
$0
$142,464
$64,719
$51,236
$35,056
$0
$0
$0
$151,012
$49,800
$49,800
$39,600
$39,600
$39,600
$41,100
$28,800
$28,800
$0
$0
$317,100
$52,788
$52,788
$41,976
$41,976
$41,976
$43,566
$30,528
$30,528
$0
$0
$336,126
$55,955
$55,955
$44,495
$44,495
$44,495
$46,180
$32,360
$32,360
$0
$0
$356,294
15
15
15
$604,500
$640,770
$679,216
Production Personnel
None planned
Other
Subtotal
Sales and Marketing Personnel
Alan Fukuyama - Sales (Maui)
Brian Kurlansky - Sales (Kona)
Jay Moore - Sales (Maui)
Wilbert Shimabukuro - Sales (Hilo)
Vacant - Aftermarket Sales (Maui)
Vacant - Aftermarket Sales (Hilo)
Subtotal
General and Administrative Personnel
Bill Harding - General Manager
Laurie Watson - Admin Manager
Vacant - Office Manager (Hilo)
Vacant - Whse & Delivery (Maui)
Vacant - Whse & Delivery (Hilo)
Other
Subtotal
Other Personnel
Earle Oshiro - Systems Manager (Hilo)
Joe Alfonsi - Systems Manager (Maui)
Wane Ogawa - Syst Engineer (Hilo)
Francis Takahashi - Syst Engineer (Hilo)
Baron Ganeko - Syst Engineer (Kona)
Abe Braceros - Sr. Syst Engineer (Maui)
Arlo Villanueva - Syst Tech (Maui)
Caroline Nacua - Syst Tech (Maui)
Vacant - Syst Tech (Kona)
Vacant - Syst Tech (Maui)
Subtotal
Total People
Total Payroll
Page 20
6.3 Management Team

Bill Harding, president and general manager: XX years old, and has lived on Maui for 43
years. Joined SIOT in 1998 as Maui branch manager, and became general manager for
Neighbor Island operations six months later. Prior management experience includes:
BTA market manager of the Neighbor Islands for VoiceStream Wireless, Neighbor Island area
sales manager for Central Security Systems, and radar project manager for Telcom
International in Nigeria, West Africa. Bill has attended numerous management and sales
training courses and seminars throughout his career.
Laurie Watson, secretary/treasurer and administrative manager: XX years old, and local Maui
resident. Has been at the same location through three different owners prior to Servco's
acquisition of The Office Place in 1995, for a total of 15 years of local office equipment industry
experience. Laurie has extensive knowledge of service procedures and dispatching, A/R and A/P
procedures, inventory control and tracking, as well as an intimate knowledge of our customer
base. Her experience and knowledge will be invaluable in recovering our customer base, and in
growing the business.
Anne Tioganco, office manager (Hilo): XX years old, and local Hilo resident. Anne has also been
with the company through all of the acquisitions, and has XX years experience in the office
equipment industry. She will assist Laurie by handling the administrative and customer service
tasks for our Hilo branch, and will be instrumental in our Big Island customer recovery efforts.
Earle Oshiro, systems manager (Big Island): XX years old, and local Hilo resident. Like Laurie
and Anne above, Earle has been with the company through four different owners, and has XX
years of local office equipment service management experience. Earle has also completed
Canon's "train the trainer" course, and will be a great asset in the on-going training and
development of our systems engineers and technicians.
Joseph Alfonsi, systems manager (Maui): XX years old, and local Maui resident. Joe joined the
Maui branch of SIOT in 1999 as field service manager, after transferring from the SIOT
Honolulu branch. He has XX years of local office equipment industry service experience, and is
familiar with both Canon and Ricoh products. Joe is an asset to the Maui team, and has
outstanding customer service skills.
6.4 Management Team Gaps
We believe we have a good team for covering the main points of the business plan. Key
members have the experience and knowledge to manage and grow the business, and are highly
motivated by the employee-owner concept.
The obvious management gap is a plan to fill the general manager's position at some point in
the future, before the current GM reaches retirement age. As an employee-owned company,
the preferred strategy will be to promote from within, and fill vacancies as they occur. As the
company grows, we will seek out additional talent in all operational areas.
Page 21
7.0 Financial Plan

Although we are treating the business as a start-up company, the financial plan is solidly based
on past performance. We have taken actual SIOT P&L income and expenses from the past three
years, and eliminated corporate overhead expenses such as warehouse and administrative
costs, inventory penalties, and corporate nominal interest. We then projected income based on
actual past performance, and factored back in the revenue base that was relocated to Honolulu
over the past two years (mainly service and supplies).
We approached the financial planning from a conservative standpoint, and based those
numbers on achievable gross margins. Also, our actual interest and tax rates will most likely be
lower than the assumed rates due to our being structured as an employee-owned corporation
(ESOT).
7.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in Table 7.1. As
mentioned previously, we assumed interest and tax rates based on a "worst case" scenario, and
these will be adjusted once we have finalized the initial funding and establish the ESOT. We
have also assumed our personnel burden at 30% of payroll in order to allow for above-average
benefits for our employees. As we shop around for benefits vendors, this assumption will be
subject to revision as well.
Other key business assumptions are:
We assume continued steady economic growth on the Neighbor Islands as predicted by

Bank of Hawaii, and other Hawai'i economists.
We assume the continued move towards convergence technology in the Information
Industry.
We assume access to the start-up funding necessary to re-shape and re-build the company,
and to provide adequate initial capitalization.
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Year 1
Year 2
Year 3
1
14.00%
10.00%
37.33%
0
2
14.00%
10.00%
38.00%
0
3
14.00%
10.00%
37.33%
0
Page 22
7.2 Key Financial Indicators

As shown in the Benchmarks chart below, our key financial indicators are:
Projected Sales: Projections are based on actual past performance, and are conservative.
We will increase sales at an average rate of 15% per year.
Gross Margins: Average gross margins are based on: hardware sales = 37%; service =
57%; supplies = 52%; and, other = 50%, for an overall operating gross margin of 49%.
Operating Expenses: Operating expenses are based on providing our employee-owners with
above average wages and benefits, and providing superior customer service. Expenses are
projected to increase at the rate of 6% per year.
Collection Days (A/R): Based on the extensive use of leasing, and including service and
supply agreements into leasing packages, we will maintain an average A/R turnover of 30
days. This is projected to be reduced to 28 days in subsequent years by increasing
efficiencies in our internal business processes.
Inventory Turnover: We will maintain just-in-time inventory levels, or 11 turns per year.
This will require accurate sales forecasting, and working closely with our manufacturers. We
have already begun this process under SIOT, and the Neighbor Island inventory levels are
well below previous years.
Chart: Benchmarks
Page 23
7.3 Break-even Analysis

For our break-even analysis, we assume running costs which include our full payroll, rent, and
utilities, and an estimation of other running costs. Payroll alone, at present, is about $65,500
per month (including benefits and taxes).
We will monitor gross margins very closely, and maintain them at a midrange percentage by
taking advantage of all promotions and discounts offered by our manufacturers. Canon USA has
tentatively agreed to offer us "end column" pricing as a new dealer incentive.
The chart shows what we need to sell per month to break even, according to these
assumptions. This is about 78% of our projected sales for our first year, and is well below what
we have achieved annually over the past three years under more adverse operating conditions.
Chart: Break-even Analysis
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even
$209,018
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
51%
$101,932
Page 24
7.4 Projected Profit and Loss

Our Pro Forma Profit and Loss statement was constructed from a conservative point-of-view,
and is based in large part on past performance. By strengthening our service position, and
rebuilding our customer relationships, we will widen our customer base and increase sales.
Month-to-month assumptions for profit and loss are included in the appendix.
Chart: Profit Monthly
Chart: Profit Yearly
Page 25
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
Page 26
Table: Profit and Loss
Pro Forma Profit and Loss

Year 1
Year 2
Year 3
Sales
Production Payroll
Other
Total Cost of Sales
$3,190,329
$1,634,497
$0
$0
$1,634,497
$3,668,878
$1,863,326
$0
$0
$1,863,326
$4,219,209
$2,124,192
$0
$0
$2,124,192
Gross Margin
Gross Margin %
$1,555,832
48.77%
$1,805,552
49.21%
$2,095,017
49.65%
$153,000
$10,500
$159,516
$22,500
$6,150
$5,400
$357,066
11.19%
$162,180
$11,130
$169,087
$23,850
$6,519
$5,724
$378,490
10.32%
$171,911
$11,798
$179,233
$25,281
$6,910
$6,067
$401,200
9.51%
$134,400
$0
$0
$0
$9,000
$34,200
$4,200
$16,800
$6,000
$10,020
$10,200
$0
$3,150
$6,000
$72,000
$181,350
$0
$487,320
15.27%
$142,464
$0
$0
$0
$9,540
$36,252
$4,452
$17,808
$6,360
$10,621
$10,812
$0
$3,339
$6,360
$72,000
$192,231
$0
$512,239
13.96%
$151,012
$0
$0
$0
$10,112
$38,427
$4,719
$18,876
$6,742
$11,258
$11,461
$0
$3,539
$6,742
$72,000
$203,765
$0
$538,654
12.77%
$317,100
$0
$9,200
$22,500
$30,000
$378,800
11.87%
$336,126
$0
$9,752
$23,850
$31,800
$401,528
10.94%
$356,294
$0
$10,337
$25,281
$33,708
$425,620
10.09%
$1,223,186
$1,292,258
$1,365,473
Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred
$332,645
$332,645
$140,000
$72,797
$513,294
$513,294
$127,050
$146,773
$729,544
$729,544
$99,750
$235,123
Net Profit
Net Profit/Sales
$119,848
3.76%
$239,471
6.53%
$394,671
9.35%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
Commissions
Travel - Sales
Learning & Growth - Sales
Entertainment
Total Sales and Marketing Expenses
Sales and Marketing %
General and Administrative Expenses
General and Administrative Payroll
Sales and Marketing and Other Expenses
Depreciation
Depreciation
Utilities
Telephone & ISP
Office Supplies
Insurance
Bank Charges
Postage
Taxes & Licenses
Bonuses
Learning & Growth - Admin
Accounting
Rent
Payroll Taxes
Other General and Administrative Expenses
Total General and Administrative Expenses
General and Administrative %
Other Expenses:
Other Payroll
Consultants
Learning & Growth - Service
Travel - Service
Freight & Cartage
Total Other Expenses
Other %
Total Operating Expenses
Page 27
7.5 Projected Cash Flow

Because we are treating the new company as a start-up, the cash flow for FY2002 is somewhat
exaggerated by the instant influx of new capital. Subsequent years however show a healthy
growth in cash flow, mainly due to the short 60-month repayment of the start-up loan and
increased sales.
Chart: Cash
Page 28
Table: Cash Flow
Pro Forma Cash Flow

Year 1
Year 2
Year 3
$2,073,714
$906,354
$2,980,067
$2,384,771
$1,252,568
$3,637,339
$2,742,486
$1,440,453
$4,182,939
$0
$0
$0
$0
$0
$0
$30,000
$3,010,067
$0
$0
$0
$0
$0
$0
$0
$3,637,339
$0
$0
$0
$0
$0
$0
$0
$4,182,939
Year 1
Year 2
Year 3
$604,500
$2,210,315
$2,814,815
$640,770
$2,807,961
$3,448,731
$679,216
$3,142,881
$3,822,097
$0
$0
$0
$0
$0
$0
$0
$2,814,815
$0
$185,000
$0
$0
$0
$0
$0
$3,633,731
$0
$205,000
$0
$0
$0
$0
$0
$4,027,097
$195,252
$420,252
$3,607
$423,860
$155,842
$579,702
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
Page 29
7.6 Projected Balance Sheet

The Projected Balance Sheet is quite solid. We do not project any trouble meeting our debt
obligations as long as we achieve our specific objectives.
Table: Balance Sheet
Pro Forma Balance Sheet

Year 1
Year 2
Year 3
$420,252
$210,261
$172,142
$0
$802,655
$423,860
$241,801
$194,718
$0
$860,378
$579,702
$278,071
$221,978
$0
$1,079,751
$0
$0
$0
$802,655
$0
$0
$0
$860,378
$0
$0
$0
$1,079,751
Year 1
Year 2
Year 3
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$227,807
$1,000,000
$0
$1,227,807
$231,059
$815,000
$0
$1,046,059
$260,760
$610,000
$0
$870,760
Total Liabilities
$0
$1,227,807
$0
$1,046,059
$0
$870,760
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$30,000
($575,000)
$119,848
($425,152)
$802,655
$30,000
($455,152)
$239,471
($185,681)
$860,378
$30,000
($215,681)
$394,671
$208,990
$1,079,751
Net Worth
($425,152)
($185,681)
$208,990
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Current Liabilities
Page 30
7.7 Business Ratios

The following table shows our main business ratios, and is compared to national averages. Our
SIC industry class is currently: Office equipment, nec - 5044.99.
Table: Ratios
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
n.a.
15.00%
15.00%
1.50%
Accounts Receivable
Inventory
Long-term Assets
Total Assets
26.20%
21.45%
0.00%
100.00%
0.00%
100.00%
28.10%
22.63%
0.00%
100.00%
0.00%
100.00%
25.75%
20.56%
0.00%
100.00%
0.00%
100.00%
30.97%
38.08%
16.04%
85.09%
14.91%
100.00%
Current Liabilities
Total Liabilities
Net Worth
152.97%
0.00%
152.97%
-52.97%
121.58%
0.00%
121.58%
-21.58%
80.64%
0.00%
80.64%
19.36%
44.30%
8.46%
52.76%
47.24%
100.00%
48.77%
45.02%
0.33%
10.43%
100.00%
49.21%
42.69%
0.30%
13.99%
100.00%
49.65%
40.40%
0.28%
17.29%
100.00%
26.76%
15.95%
0.95%
2.55%
0.65
0.51
152.97%
-45.31%
24.00%
0.82
0.64
121.58%
-208.01%
44.89%
1.24
0.99
80.64%
301.35%
58.33%
1.80
0.87
6.22%
55.95%
14.11%
Sales Growth
Percent of Total Assets
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin

Return on Equity
3.76%
0.00%
6.53%
0.00%
9.35%
188.85%
n.a
n.a
5.31
57
10.91
10.70
27
3.97
5.31
64
10.16
12.17
30
4.26
5.31
64
10.20
12.17
28
3.91
n.a
n.a
n.a
n.a
n.a
n.a
0.00
1.00
0.00
1.00
4.17
1.00
n.a
n.a
($425,152)
2.38
($185,681)
4.04
$208,990
7.31
n.a
n.a
0.25
153%
0.34
0.00
0.00
0.23
122%
0.41
0.00
0.00
0.26
81%
0.67
20.19
0.00
n.a
n.a
n.a
n.a
n.a
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
Page 31
Appendix
Table: Sales Forecast
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$78,500
$5,000
$10,250
$3,250
$0
$6,250
$36,000
$68,000
$17,500
$2,250
$227,000
$78,500
$5,000
$10,250
$3,250
$0
$6,250
$36,000
$68,000
$17,500
$2,250
$227,000
$78,500
$5,000
$10,250
$3,250
$2,500
$6,250
$36,000
$68,000
$17,500
$2,250
$229,500
$86,350
$5,500
$11,275
$3,575
$2,750
$6,875
$39,600
$74,800
$19,250
$2,475
$252,450
$86,350
$5,500
$11,275
$3,575
$2,750
$6,875
$39,600
$74,800
$19,250
$2,475
$252,450
$86,350
$5,500
$11,275
$3,575
$2,750
$6,875
$39,600
$74,800
$19,250
$2,475
$252,450
$94,985
$6,050
$12,403
$3,933
$3,025
$7,563
$43,560
$82,280
$21,175
$2,723
$277,695
$94,985
$6,050
$12,403
$3,933
$3,025
$7,563
$43,560
$82,280
$21,175
$2,723
$277,695
$94,985
$6,050
$12,403
$3,933
$3,025
$7,563
$43,560
$82,280
$21,175
$2,723
$277,695
$104,484
$6,655
$13,643
$4,326
$3,328
$8,319
$47,916
$90,508
$23,293
$2,995
$305,465
$104,484
$6,655
$13,643
$4,326
$3,328
$8,319
$47,916
$90,508
$23,293
$2,995
$305,465
$104,484
$6,655
$13,643
$4,326
$3,328
$8,319
$47,916
$90,508
$23,293
$2,995
$305,465
Sales
Hardware - Printers
Government (Comp)
Equipment Rentals
Other
Total Sales
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$48,670
$48,670
$48,670
$53,537
$53,537
$53,537
$58,891
$58,891
$58,891
$64,780
$64,780
$64,780
Hardware - Printers
$3,250
$3,250
$3,250
$3,575
$3,575
$3,575
$3,933
$3,933
$3,933
$4,326
$4,326
$4,326
$6,355
$6,355
$6,355
$6,991
$6,991
$6,991
$7,690
$7,690
$7,690
$8,459
$8,459
$8,459
$2,275
$2,275
$2,275
$2,503
$2,503
$2,503
$2,753
$2,753
$2,753
$3,028
$3,028
$3,028
$0
$0
$1,250
$1,375
$1,375
$1,375
$1,513
$1,513
$1,513
$1,664
$1,664
$1,664
$2,188
$2,188
$2,188
$2,406
$2,406
$2,406
$2,647
$2,647
$2,647
$2,912
$2,912
$2,912
$16,200
$16,200
$16,200
$17,820
$17,820
$17,820
$19,602
$19,602
$19,602
$21,562
$21,562
$21,562
$27,200
$27,200
$27,200
$29,920
$29,920
$29,920
$32,912
$32,912
$32,912
$36,203
$36,203
$36,203
$9,625
$9,625
$9,625
$10,588
$10,588
$10,588
$11,646
$11,646
$11,646
$12,811
$12,811
$12,811
$563
$563
$563
$619
$619
$619
$681
$681
$681
$749
$749
$749
$116,325
$116,325
$117,575
$129,333
$129,333
$129,333
$142,266
$142,266
$142,266
$156,492
$156,492
$156,492
Government (Comp)
Equipment Rentals
Other
Subtotal Direct Cost of Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
None planned
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Alan Fukuyama - Sales (Maui)
$3,000
$3,000
$3,000
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
Brian Kurlansky - Sales (Kona)
$3,000
$3,000
$3,000
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
Jay Moore - Sales (Maui)
$3,000
$3,000
$3,000
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
Wilbert Shimabukuro - Sales (Hilo)
$3,000
$3,000
$3,000
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
$3,250
Vacant - Aftermarket Sales (Maui)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Vacant - Aftermarket Sales (Hilo)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$12,000
$12,000
$12,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
Bill Harding - General Manager
$4,500
$4,500
$4,500
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
Laurie Watson - Admin Manager
$3,650
$3,650
$3,650
$3,850
$3,850
$3,850
$3,850
$3,850
$3,850
$3,850
$3,850
$3,850
Vacant - Office Manager (Hilo)
$2,450
$2,450
$2,450
$2,650
$2,650
$2,650
$2,650
$2,650
$2,650
$2,650
$2,650
$2,650
Vacant - Whse & Delivery (Maui)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Vacant - Whse & Delivery (Hilo)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,600
$10,600
$10,600
$11,400
$11,400
$11,400
$11,400
$11,400
$11,400
$11,400
$11,400
$11,400
Earle Oshiro - Systems Manager (Hilo)
$4,000
$4,000
$4,000
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
Joe Alfonsi - Systems Manager (Maui)
$4,000
$4,000
$4,000
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
Wane Ogawa - Syst Engineer (Hilo)
$3,150
$3,150
$3,150
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
Francis Takahashi - Syst Engineer (Hilo)
$3,150
$3,150
$3,150
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
Baron Ganeko - Syst Engineer (Kona)
$3,150
$3,150
$3,150
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
$3,350
Abe Braceros - Sr. Syst Engineer (Maui)
$3,200
$3,200
$3,200
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
Arlo Villanueva - Syst Tech (Maui)
$2,250
$2,250
$2,250
$2,450
$2,450
$2,450
$2,450
$2,450
$2,450
$2,450
$2,450
$2,450
Caroline Nacua - Syst Tech (Maui)
$2,250
$2,250
$2,250
$2,450
$2,450
$2,450
$2,450
$2,450
$2,450
$2,450
$2,450
$2,450
Vacant - Syst Tech (Kona)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Vacant - Syst Tech (Maui)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$25,150
$25,150
$25,150
$26,850
$26,850
$26,850
$26,850
$26,850
$26,850
$26,850
$26,850
$26,850
15
15
15
15
15
15
15
15
15
15
15
15
$47,750
$47,750
$47,750
$51,250
$51,250
$51,250
$51,250
$51,250
$51,250
$51,250
$51,250
$51,250
Production Personnel
Sales and Marketing Personnel
Subtotal
General and Administrative Personnel
Subtotal
Other Personnel
Subtotal
Total People
Total Payroll
Page 2
Appendix
Page 3
Appendix
Table: General Assumptions
General Assumptions
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
10
11
12
Current Interest Rate
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
Long-term Interest Rate
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Tax Rate
30.00%
38.00%
38.00%
38.00%
38.00%
38.00%
38.00%
38.00%
38.00%
38.00%
38.00%
38.00%
Plan Month
Other
Month 12
Page 4
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
$227,000
$227,000
$229,500
$252,450
$252,450
$252,450
$277,695
$277,695
$277,695
$305,465
$305,465
$305,465
$116,325
$116,325
$117,575
$129,333
$129,333
$129,333
$142,266
$142,266
$142,266
$156,492
$156,492
$156,492
Production Payroll
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cost of Sales
$116,325
$116,325
$117,575
$129,333
$129,333
$129,333
$142,266
$142,266
$142,266
$156,492
$156,492
$156,492
Gross Margin
$110,675
$110,675
$111,925
$123,118
$123,118
$123,118
$135,429
$135,429
$135,429
$148,972
$148,972
$148,972
48.76%
48.76%
48.77%
48.77%
48.77%
48.77%
48.77%
48.77%
48.77%
48.77%
48.77%
48.77%
$12,000
$12,000
$12,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$500
$500
$500
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
Commissions
$11,350
$11,350
$11,475
$12,623
$12,623
$12,623
$13,885
$13,885
$13,885
$15,273
$15,273
$15,273
Travel - Sales
$1,500
$1,500
$1,500
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$0
$0
$0
$400
$400
$400
$400
$400
$400
$1,250
$1,250
$1,250
$450
$450
$450
$450
$450
$450
$450
$450
$450
$450
$450
$450
$25,800
$25,800
$25,925
$29,473
$29,473
$29,473
$30,735
$30,735
$30,735
$32,973
$32,973
$32,973
11.37%
11.37%
11.30%
11.67%
11.67%
11.67%
11.07%
11.07%
11.07%
10.79%
10.79%
10.79%
Gross Margin %
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
Learning & Growth - Sales

Entertainment
Total Sales and Marketing
Expenses
Sales and Marketing %
General and Administrative
Expenses
General and Administrative Payroll
$10,600
$10,600
$10,600
$11,400
$11,400
$11,400
$11,400
$11,400
$11,400
$11,400
$11,400
$11,400
Sales and Marketing and Other

Expenses
Depreciation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Depreciation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$2,850
$2,850
$2,850
$2,850
$2,850
$2,850
$2,850
$2,850
$2,850
$2,850
$2,850
$2,850
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$1,400
$1,400
$1,400
$1,400
$1,400
$1,400
$1,400
$1,400
$1,400
$1,400
$1,400
$1,400
Bank Charges
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Postage
$835
$835
$835
$835
$835
$835
$835
$835
$835
$835
$835
$835
Taxes & Licenses
$850
$850
$850
$850
$850
$850
$850
$850
$850
$850
$850
$850
Utilities
Telephone & ISP
Office Supplies
Insurance
Page 5
Appendix
Bonuses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Learning & Growth - Admin
$0
$0
$0
$150
$150
$150
$150
$150
$150
$750
$750
$750
Accounting
Rent
Payroll Taxes
Other General and Administrative
Expenses
Total General and Administrative
Expenses
General and Administrative %
30%
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$14,325
$0
$14,325
$0
$14,325
$0
$15,375
$0
$15,375
$0
$15,375
$0
$15,375
$0
$15,375
$0
$15,375
$0
$15,375
$0
$15,375
$0
$15,375
$0
$38,960
$38,960
$38,960
$40,960
$40,960
$40,960
$40,960
$40,960
$40,960
$41,560
$41,560
$41,560
17.16%
17.16%
16.98%
16.22%
16.22%
16.22%
14.75%
14.75%
14.75%
13.61%
13.61%
13.61%
$26,850
Other Expenses:
Other Payroll
$25,150
$25,150
$25,150
$26,850
$26,850
$26,850
$26,850
$26,850
$26,850
$26,850
$26,850
Consultants
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Learning & Growth - Service
$0
$0
$0
$850
$850
$850
$650
$650
$850
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
Travel - Service
Freight & Cartage
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
Total Other Expenses
$29,150
$29,150
$29,150
$32,200
$32,200
$32,200
$32,000
$32,000
$32,200
$32,850
$32,850
$32,850
Other %
12.84%
12.84%
12.70%
12.76%
12.76%
12.76%
11.52%
11.52%
11.60%
10.75%
10.75%
10.75%
Total Operating Expenses
$93,910
$93,910
$94,035
$102,633
$102,633
$102,633
$103,695
$103,695
$103,895
$107,383
$107,383
$107,383
$16,765
$16,765
$17,890
$20,485
$20,485
$20,485
$31,735
$31,735
$31,535
$41,589
$41,589
$41,589
EBITDA
$16,765
$16,765
$17,890
$20,485
$20,485
$20,485
$31,735
$31,735
$31,535
$41,589
$41,589
$41,589
$11,667
$11,667
$11,667
$11,667
$11,667
$11,667
$11,667
$11,667
$11,667
$11,667
$11,667
$11,667
$1,530
$1,937
$2,365
$3,351
$3,351
$3,351
$7,626
$7,626
$7,550
$11,370
$11,370
$11,370
Net Profit
$3,569
$3,161
$3,858
$5,467
$5,467
$5,467
$12,442
$12,442
$12,318
$18,552
$18,552
$18,552
Net Profit/Sales
1.57%
1.39%
1.68%
2.17%
2.17%
2.17%
4.48%
4.48%
4.44%
6.07%
6.07%
6.07%
Interest Expense
Taxes Incurred
Page 6
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$147,550
$147,550
$149,175
$164,093
$164,093
$164,093
$180,502
$180,502
$180,502
$198,552
$198,552
$198,552
$0
$2,648
$79,450
$79,479
$80,593
$88,358
$88,358
$88,652
$97,193
$97,193
$97,517
$106,913
$147,550
$150,198
$228,625
$243,572
$244,685
$252,450
$268,859
$269,154
$277,695
$295,745
$296,069
$305,465
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Investment Received
$30,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$177,550
$150,198
$228,625
$243,572
$244,685
$252,450
$268,859
$269,154
$277,695
$295,745
$296,069
$305,465
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
Subtotal Cash Received

Expenditures
0.00%
Expenditures from Operations

Cash Spending
$47,750
$47,750
$47,750
$51,250
$51,250
$51,250
$51,250
$51,250
$51,250
$51,250
$51,250
$51,250
$3,455
$106,054
$176,195
$180,247
$208,235
$195,733
$196,816
$227,755
$214,007
$215,366
$250,790
$235,663
$51,205
$153,804
$223,945
$231,497
$259,485
$246,983
$248,066
$279,005
$265,257
$266,616
$302,040
$286,913
Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Purchase Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Purchase Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$51,205
$153,804
$223,945
$231,497
$259,485
$246,983
$248,066
$279,005
$265,257
$266,616
$302,040
$286,913
$126,345
($3,605)
$4,680
$12,075
($14,800)
$5,467
$20,793
($9,852)
$12,438
$29,129
($5,971)
$18,552
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Subtotal Cash Spent

Net Cash Flow
Page 7
Appendix
Cash Balance
$351,345
$347,740
$352,420
$364,495
$349,696
$355,163
$375,956
$366,105
$378,543
$407,672
$401,700
$420,252
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$225,000
$0
$200,000
$0
$425,000
$351,345
$79,450
$127,958
$0
$558,753
$347,740
$156,252
$127,958
$0
$631,949
$352,420
$157,127
$129,333
$0
$638,879
$364,495
$166,005
$142,266
$0
$672,766
$349,696
$173,770
$142,266
$0
$665,731
$355,163
$173,770
$142,266
$0
$671,199
$375,956
$182,606
$156,492
$0
$715,054
$366,105
$191,147
$156,492
$0
$713,744
$378,543
$191,147
$156,492
$0
$726,182
$407,672
$200,866
$172,142
$0
$780,679
$401,700
$210,261
$172,142
$0
$784,103
$420,252
$210,261
$172,142
$0
$802,655
$0
$0
$0
$425,000
$0
$0
$0
$558,753
$0
$0
$0
$631,949
$0
$0
$0
$638,879
$0
$0
$0
$672,766
$0
$0
$0
$665,731
$0
$0
$0
$671,199
$0
$0
$0
$715,054
$0
$0
$0
$713,744
$0
$0
$0
$726,182
$0
$0
$0
$780,679
$0
$0
$0
$784,103
$0
$0
$0
$802,655
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Starting Balances
Current Assets
Cash
Accounts Receivable
Inventory
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$1,000,000
$0
$1,000,000
$100,184
$1,000,000
$0
$1,100,184
$170,219
$1,000,000
$0
$1,170,219
$173,291
$1,000,000
$0
$1,173,291
$201,710
$1,000,000
$0
$1,201,710
$189,208
$1,000,000
$0
$1,189,208
$189,208
$1,000,000
$0
$1,189,208
$220,622
$1,000,000
$0
$1,220,622
$206,870
$1,000,000
$0
$1,206,870
$206,989
$1,000,000
$0
$1,206,989
$242,935
$1,000,000
$0
$1,242,935
$227,807
$1,000,000
$0
$1,227,807
$227,807
$1,000,000
$0
$1,227,807
Total Liabilities
$0
$1,000,000
$0
$1,100,184
$0
$1,170,219
$0
$1,173,291
$0
$1,201,710
$0
$1,189,208
$0
$1,189,208
$0
$1,220,622
$0
$1,206,870
$0
$1,206,989
$0
$1,242,935
$0
$1,227,807
$0
$1,227,807
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$0
($575,000)
$0
($575,000)
$425,000
$30,000
($575,000)
$3,569
($541,431)
$558,753
$30,000
($575,000)
$6,730
($538,270)
$631,949
$30,000
($575,000)
$10,588
($534,412)
$638,879
$30,000
($575,000)
$16,056
($528,944)
$672,766
$30,000
($575,000)
$21,523
($523,477)
$665,731
$30,000
($575,000)
$26,990
($518,010)
$671,199
$30,000
($575,000)
$39,432
($505,568)
$715,054
$30,000
($575,000)
$51,874
($493,126)
$713,744
$30,000
($575,000)
$64,193
($480,807)
$726,182
$30,000
($575,000)
$82,744
($462,256)
$780,679
$30,000
($575,000)
$101,296
($443,704)
$784,103
$30,000
($575,000)
$119,848
($425,152)
$802,655
Net Worth
($575,000)
($541,431)
($538,270)
($534,412)
($528,944)
($523,477)
($518,010)
($505,568)
($493,126)
($480,807)
($462,256)
($443,704)
($425,152)
Page 8

Information Technology Business Plan

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Table of Contents

INFORMATION TECHNOLOGY BUSINESS PLAN

INFORMATION TECHNOLOGY BUSINESS PLAN..............................................................................1

Chart: Sales Monthly.....................................................................................................................14

Information Management Hawai'i, Inc.

1.0 Executive Summary

Information Management Hawai'i, Inc.

Financial Goals vs. Results

2.0 Company Summary

Initial Inventory: $200,000

Information Management Hawai'i, Inc.

Information Management Hawai'i, Inc.

Table: Start-up Funding

Liabilities and Capital

Total Capital and Liabilities

Information Management Hawai'i, Inc.

2.3 Company Locations and Facilities

Information Management Hawai'i, Inc.

3.2 Product and Service Description

Canon ImageRunner multifunctional products (scan/copy/print/fax)

Software offerings will include:

Service Products include:

All-inclusive maintenance agreements (on-call service and supplies)

Professional Services include:

Information Workflow analysis and design

3.3 Competitive Comparison

Information Management Hawai'i, Inc.

3.6 Future Products and Services

Wireless LAN systems

Information Management Hawai'i, Inc.

Media transport and reproduction (distribute and print)

Information Management Hawai'i, Inc.

Chart: Market Analysis (Pie)

Table: Market Analysis

4.2 Target Market Segment Strategy

Information Management Hawai'i, Inc.

As mentioned previously our market segmentation strategy is straightforward, and addresses

Information Management Hawai'i, Inc.

Information Management Hawai'i, Inc.

4.3.3 Main Competitors

attitude we are at the beginning of a product/technology convergence.

Information Management Hawai'i, Inc.

5.1 Competitive Edge

Information Management Hawai'i, Inc.

5.4.1 Sales Forecast

Chart: Sales by Year

Chart: Sales Monthly

Information Management Hawai'i, Inc.

Table: Sales Forecast

Hardware - Image Platforms

Direct Cost of Sales

Information Management Hawai'i, Inc.

Information Management Hawai'i, Inc.

5.6 Marketing Strategy

Emphasize service and support

5.6.1 Sales Programs

Information Management Hawai'i, Inc.

5.6.4 Promotion Strategy

5.6.5 Distribution Strategy

Information Management Hawai'i, Inc.

6.0 Management Summary

Information Management Hawai'i, Inc.

6.2 Personnel Plan