Technology Solutions Provider

EXECUTIVE SUMMARY

BUSINESS OVERVIEW

ORGANIZATION

PRODUCTS & SERVICES

COMPETITION

MARKETING & SALES

GROWTH STRATEGY

APPENDIX

INCOME STATEMENT

BALANCE SHEET

CASH FLOW

Exceed Expectations

274 Windsor Ave.
Bismarck, North Dakota 58501

Jay Fox, Brittani Lee, and Brian Wideman

Exceed Expectations is a full service information technology integrator that offers small to mid–sized companies technological business solutions. The company concentrates their efforts towards the accounting, industrial, legal, medical, and distribution industries, and provide business process reengineering, custom software application development, network support, and hosting solutions.

EXECUTIVE SUMMARY

Exceed Expectations was founded in 2000 as a Sub–Chapter S Corporation located in Bismark, North Dakota. It is a full service information technology integrator that offers small to mid–sized companies technological business solutions. We concentrate our efforts towards the accounting, industrial, legal, medical, and distribution industries. We currently service 104 companies in the Bismark area. Exceed Expectations currently has four owners with a total of nine full–time staff members.

Exceed Expectations’ four services are Business Process Reengineering, Custom Software Application Development, Network Support, and Hosting Solutions. Through these areas of expertise we strive to foster and maintain solid relationships with our clients, fine tune our four services, and continue to develop innovative software applications that will redefine the way our clients do business. We plan to maintain our current 24–hour support service and service our clients whenever it is convenient to them.

It is crucial to our success that we understand our competition by developing our knowledge of their products, services, strengths, and weaknesses. We want to offer a higher quality service than our competitors and keep our prices competitive. Our main competitors are T&T Technology, Portals R Us, and William Tracy Software Developers. We differentiate ourselves from our competitors by establishing positive, trusted relationships. Our good relations with our clients are a reflection of our proven services, our 24 hour support, and the fact that we do not require binding contractual agreements for support.

Our marketing plan consists of two prongs that target three different groups of current clients. Our objective is to up–sell our services to the top 24 revenue generating clients. First, we want to target our top four clients (group 1). We plan to up–sell one of our four services to two of these clients. We also want to establish a referral base with these top four clients based on the fact that they do a lot of business with us and are happy with the services we provide them. Our second group is made up of the next 6 clients. We hope to up–sell to these clients as well, in hopes of “bumping them up” to group 1. This will expand our top tier of clients (clients that account for over $20,000). The third group consists of the remaining 14 clients. There is substantial room for growth in this group, and we hope to up–sell services to six of these clients, “bumping them up” into group 2. Achieving the goals established for each of the three client groups will increase annual revenue by roughly $150,000.

The purpose of this plan is to create a strategy for Exceed Expectations that will increase its revenues by targeting its top 24 current clients. After performing a revenue stream analysis, and constructing a promotion/up–selling strategy, we feel that Exceed Expectations can substantially increase its revenues and use the plan over and over to build a larger top tier of clients (those which generate revenues of $20,000 or more). Overall, this business plan will give the reader an in–depth understanding of the company, along with a plan for growth in the future.

BUSINESS OVERVIEW

Mission

Exceed Expectations strives to achieve consistent growth both internally and externally, foster and maintain positive relationships with each and every client, and offer cutting edge software and services at the speed of technology.

Exceed Expectations helps small to medium sized companies increase revenues, retain customers, and reduce direct and indirect costs, by pinpointing and redesigning value chain systems and processes by providing full information technology solutions.

Company History

Tim Hoogert and Mike Wilson worked for a software development company called Software Writers, Inc. The tech bubble burst and Software Writers, Inc. began downsizing. Mike and Tim took what they learned at Software Writers, Inc. and figured they could make some changes and formed their own software/tech company that would offer businesses more complete products and services. They combined their skills and experience that they received from Software Writers, Inc. to form Exceed Expectations in the year 2000. Their goal was to bring highly demanded technology solutions to small and mid–sized businesses in the Bismark area. From day one Exceed Expectations continually worked to improve its own operations, and has been profitable since its first year.

Despite consistent profitability in the first four years of existence, Software Writers, Inc. was not where Tim and Mike wanted it to be. A stronger management background was needed for the company to expand and increase revenues. To bring aboard some management expertise, Exceed Expectations merged with ComputerSavvy in January, 2005. Aaron Wilham, the Chief Executive Officer of ComputerSavvy, would now serve as the CEO of Exceed Expectations. He brought with him the management background and decision making abilities Tim and Mike were seeking. Following the merger in 2005, revenues approached $1 million in fiscal year 2005, and revenues for fiscal year 2006 are expected to break the $1 million mark (revenues for 2006 are estimated to be $1.12 million based upon first quarter data). Exceed Expectations has provided IT solutions for over 100 businesses in the greater Bismark area since the merger in January, 2005.

Exceed Expectations helps businesses become more efficient and increase revenues by re–designing business processes and by providing software and services that cut costs. Our Microsoft certified team members each have different areas of expertise specializing in one area of our services in order to bring customers the most complete business solution possible. Through ongoing network support, in–depth analysis, business process reengineering, software application development, and hosting solutions, we can provide businesses with the equipment and services required in the technology driven environment of today.

ORGANIZATION

Current Market Position

At this time, we are a profitable business with annual sales of $1 million that seeks expansion. Over the past five years Exceed Expectations has provided IT solutions to a wide variety of companies, including a billion dollar medical firm, and a multi–million dollar accounting firm. We currently have 104 clients in the Bismark area, and are continually offering our services to new businesses in this area, while attempting to up–sell services to current clients. We will continue to provide our current clients with hosting support, network support, and business process analysis while striving to develop new software applications that will enhance their efficiency. In March of 2006, Exceed Expectations obtained a Microsoft license that allows us to offer our clients a wide variety of Microsoft software applications. This software will help us redefine the way our clients do business, making them more proficient and ultimately more profitable.

Management Summary

Exceed Expectations is registered as a Subchapter S–Corporation.

Exceed Expectations currently has four major divisions: Business Process Reengineering, Software Application Development, Hosting, and Network Support. Each of the four owners heads one division, but contributes their knowledge and skills to each of the four divisions. Tim Hoogert heads the Business Process Reengineering division. The Software Application Development division is run by Mike Wilson. Hosting is CEO Aaron Wilham’s division, and Jeff Booth controls the Network Support division. The four owners’ complimenting skills give Exceed Expectations a diverse management team. The six other full time employees round out the Exceed Expectations team and help support the four owners. A brief biography of each of the four owners, along with a summary of the positions and certifications of the supporting six employees, is provided below.

• Aaron Wilham: Part owner and Chief Executive Officer Aaron Wilham serves as Exceed Expectations’ visionary. He makes the decisions and creates the plans for action. He also overlooks company financials and heads the company’s Network Support Department. Aaron earned a BA degree in Marketing and Communications from Carleton College in Northfield, Minnesota. He has nine years of experience in the technology consulting industry as a Network Engineer and five years of experience as the CEO of ComputerSavvy. Aaron is a Microsoft Certified Systems Engineer and brings documented managerial experience and success to the Exceed Expectations team.
• Tim Hoogart: Exceed Expectation’s second part owner, Tim Hoogart, serves as the company’s Chief Operating Officer. He is the Chief Software Architect and also heads the company’s customer support department. Tim graduated from the University of Notre Dame with a Bachelor of Science degree in Computer Science. He had his first programming job as a sophomore at Notre Dame’s Computer Science department. He has also interned as a network and systems administrator at IBM. Tim has five years of experience in the technology consulting industry along with a complete technical understanding of Exceed Expectation’s four services. His ability to communicate with clients in a non–technical manner is his greatest strength. This ability helps foster the positive relationships with clients that set Exceed Expectations apart from its competitors.
• Mike Wilson: Mike Wilson is the president of Exceed Expectations and is also the designer of our Business Process Reengineering system. Mike graduated from Western Michigan University with a degree in Sales. He has eight years of technology consulting experience not only in sales, but also in software development. He is also 6 Sigma certified, meaning he has received extensive training in business process improvement.
• Jeff Booth: Jeff Booth serves as Exceed Expectations’s Chief Network Engineer. Jeff received an Associates degree in Computer Science from University of North Dakota, Bismarck. He has had prior work experience managing corporate networks at TRECK Corp. and is also knowledgeable in help desk solutions. Jeff is a Certified Microsoft Systems Engineer and brings seven years of technology consulting experience to the Exceed Expectations team. He has obtained A+ Technician Certification and claims his best quality is his ability to implement the plans Aaron creates.

The six other members of the Exceed Expectations team include Mike Amerson, Ian Wood, Peter Richardson, Hal Ricke, Karen Sal, and Pedro Amero. Mike Amerson serves as an additional network engineer. He has five years of experience in the technology consulting industry. Ian Wood is Exceed Expectation’s Sales and Marketing Manager. He also manages client accounts, provides analysis work, and contributes to the firm’s marketing efforts. Peter Richardson is the newest member of the Exceed Expectations team, provides hosting support and develops new application software. Peter is a junior developer with degrees in Management Information Systems and Business Administration from Southern Illinois University. Hal Ricke is the Vice President of Software Development. He is also a project manager, database administrator, and software developer. Karen Sal is Exceed Expectation’s project manager. She has a BA degree in Mass Communications with emphasis in print and broadcast journalism. She has eight years of experience as a marketing manager and has overseen daily operations for a wide array of small to mid–sized businesses in the travel and real–estate industries. Rounding out the Exceed Expectations team is Pedro Amero, Exceed Expectation’s Senior Network Technician. He has six years of experience in the technology consulting industry, working for a wide array of companies such as the U.S. Army, Best Buy, and Deloitte & Touche. He has many certifications: wifi certification (TEC), MCP, A+, Networking +, and MCSE.

Two employees were recently laid off. One was young, inexperienced, and lacked the diverse skill set that Exceed Expectations requires. The other was a software developer that did not meet expectations.

Each member of the Exceed Expectations team brings a wide array of skills and expertise to the team. The four owners combine for 29 years of experience in the technology consulting industry, and the six other supporting employees add an additional 17 years of experience. Our experienced and certified staff work together to provide your business with complete IT solutions.

PRODUCTS & SERVICES

From ongoing network support to documenting and improving the way you do business, Exceed Expectations has the certified & experienced staff to deliver the services and equipment you need to run a business in today’s increasingly technology driven environment. Our staff has a combined forty–six years of experience in the technology consulting industry. All of Exceed Expectations’s services are designed to help our clients increase the production of their workforce, eliminate unnecessary costs, increase revenues and maximize profits.

The following sections outline and describe the four services (Business Process Reengineering, Software Application Development, Network Support, and Hosting) that Exceed Expectations offers. Business Process Reengineering and Software Application Development are listed next to one another because they are tied closely together. Network Support and Hosting Solutions are not listed in any particular order.

Business Process Reengineering and Software Application Development are two services that Exceed Expectations groups together because the services compliment one another. Once a client decides to use Exceed Expectations for Business Process Reengineering, there is a 35 percent chance that they will use Exceed Expectation’s software development service to build a custom application.

Business Process Reengineering

Exceed Expectations’s Business Process Reengineering (BPR) capability examines the efficiency and effectiveness of a company’s current processes and practices. It ensures that they deliver the highest quality goods and services, in the most productive way, at the most competitive prices. BPR help companies to beat their competition, and become more innovative. Companies can apply BPR to all aspects of their business. Our consultants have a combined 12 years of business process consulting experience.

Exceed Expectations has helped their clients to improve execution and meet the needs of customers better through BPR. But its real advantages are reduced cycle times in information processing, increased quality and customer satisfaction. We examine our client’s business process and remove unnecessary steps that may contain high risk for human error or tends to drive up costs.

Exceed Expectations works with each client to assess its operating practices, costs incurred, and effectiveness. We understand the demands of high growth businesses and the advantages of scale and scope. We extend the current value within your company by eliminating inefficiencies from processes. Productivity is enhanced by employing IT solutions and streamlining data flow.

Exceed Expectations’s BPR prices their analysis and consulting work depending on the scale of the project. In the past, Exceed Expectations’s BPR division has priced projects starting at $6,000 to $20,000. Once a client decides to use Exceed Expectations for Business Process Reengineering, there is a 35 percent chance that they will use Exceed Expectations’s software development service to build a custom application.

This portion of Exceed Expectations’s business has been successful by bringing in six of our top ten revenue generating clients. We need to start tracking the amount of hours put into each analysis project so we can fully understand our project quoting process and so we can figure out our profit margins per project.

Software Application Development

Exceed Expectations’s software application development service is based around the same principals as our business process reengineering service. They both strive to enhance our client’s work environment. Computer software allows companies to leverage their resources by employing systems to manage every aspect of their business and increase overall profitability of their organization. The key to increasing operating profits is improving the efficiency in which steps are conducted to complete a single job. Exceed Expectations excels at automating tasks that previously required manual intervention. Within any industry each company has specific methods to completing day–to–day tasks. These methods are what separate and give an advantage among the competition. Exceed Expectations ensures that your competitive advantage stays intact while tailoring the business rules to reflect a more consistent and well defined process.

By implementing management systems tailored to these processes, we ensure consistency throughout the organization. This allows managers to use the tools necessary to take the “pulse” of their company at any given time.

Our software application developers have created an engineering environment that focuses on collaboration, interaction, and content management technologies. When we develop an application, we take into consideration that our customer’s business will expand so the application is scalable and adaptable to that measure of change. We provide the customer with the proper tools to make changes on crucial parts of their software package’s functionality (i.e.: add more users, change permission settings, modify a statistical report, or even temporarily remove a feature if desired).

As important as implementation is, post–implementation support continues for the life of the software. As a local company, Exceed Expectations’s developers, network engineers, and product managers are nearby and available on short notice to address changing industry requirements or simply offer on–site support.

Exceed Expectations designs system architecture to operate in a true client/server environment easing technical administration by offering automated deployment of our software and low hardware and network requirements. Any future modifications to Exceed Expectations software can be completed from the server, and do not require a visit to each individual desktop.

The pricing for software depends on the scale of the application. In this situation, we would estimate a price and offer a quote to the customer because each software application can contain various features. For example, an e–store would have many different features than a full scale order processing/distribution system. Exceed Expectations is in the process of developing two different software applications that will have a set price at the base level. One of these programs is a lead management system and the other is a sales training system. These packages will have a set price to begin with unless the customer desires more features and/or more functionality.

Exceed Expectations does not currently offer boxed software applications because we have taken a customer focused approach when developing an application. Our software development staff needs to start tracking how many hours they spend on developing each application in order to determine our profitability margins.

Network Support Solutions

Exceed Expectations employs a dedicated team of Microsoft Certified consultants with a combined twenty–seven years of professional business network consulting experience. Supporting well over 100 networks in the Bismarck area for a wide variety of businesses and organizations, you can trust that Exceed Expectations has the experience and knowledge to expertly handle your IT infrastructure needs.

Our company is a Microsoft Certified Partner, Microsoft Certified Business Solutions Partner, and Dell Authorized Partner and Reseller. In addition, our consultants have many certifications from many other vendors specializing in security and data backup/recovery.

Exceed Expectations’s Network Support Services are priced as follows:

• $110/hr is the flat rate
• There are no extra fees for travel time
• One hour on–site minimum
• The flat rate does not increase because of emergencies

Exceed Expectations’s Network Support provides our clients with a certified expert with a cell phone who is on call anytime you need them. Our Network Support staff offer a wide variety of solutions.

Hosting Solutions

Exceed Expectations implemented hosting services in February of 2005. Exceed Expectations does not provide hosting solutions to make a large profit, but instead it is viewed more as an accessory service that can be offered with our network support or software application development. Exceed Expectations has made minimal profit margins (1 percent–2 percent), if any at all by providing hosting solutions.

It is important for our customers to know that all of our hosting facilities are located in downtown Bismarck at a secure data center called Wisteria, and another data center in Fargo called Host Answers. Exceed Expectations has chosen these facilities because we trust their technical expertise and their reliable data center infrastructure which regulates temperature and protects against disasters.

Hosting consists of Exceed Expectations providing various web–based applications, served through a sophisticated environment and infrastructure. Our customers are able to utilize the same unified environment via the internet. We make sure that our customer’s data is secured through firewalls and maintained by a local team of network engineers. Exceed Expectation’s hosted solutions include:

• Microsoft Exchange, including Outlook 2003 & Blackberry Enterprise Server
• Web Access to email, Calendar, Tasks & Contacts
• Calendar Sharing/Collaboration
• Advanced Spam Filtering & Anti–Virus
• 100 percent Blackberry Wireless Handheld Synchronization
• Daily Data Backup & Advanced Environment Security
• 250MB Storage per Mailbox & 24/7 Tech Support

We also provide other hosted solutions such as Microsoft Sharepoint which is a document management system that can be set up for more than 100 users. We also provide domain hosting which is when we host your website or software application. We own dedicated servers which mean we can host a company’s database and make sure their data stays secure.

Exceed Expectations’s Hosting Division has is in the process of implementing a new service called Microsoft ASP. This service will allow companies to subscribe to Microsoft software packages without them actually having to buy the package itself. This is new service is a more affordable solution because they will be able to subscribe and only have to pay a monthly fee opposed to buying the normal package at bulk price. The Microsoft ASP products and pricing schemes are located in the back of the Products and Services section.

The hosting services and prices are located in Appendix A.

COMPETITION

Exceed Expectations takes two different approaches to evaluating our competition. We evaluate our competition based on companies that serve similar IT solutions to the same portion of the Bismarck Market, and those companies that we have directly competed with for specific clients.

Understanding our competitors and their strengths and weaknesses is an advantage for our company to gain critical information about our customers. As a result, our goal was to find out exactly who we considered to be our competitors and then analyze them according to what information we felt was important. Consequently, the following analysis portion of this paper focuses mainly on competitors in the greater Bismarck area.

Exceed Expectations understands that there are other firms that offer business process reengineering, but this is not a service that we advertise even though it does generate a substantial amount of annual revenue. We will be up–selling this service to our current clients in our effort to generate more revenue from our current accounts. We feel the same way about hosting solutions because there are literally thousands of other companies that offer hosting solutions, but it is not one of our top revenue generating services, so we are not threatened by other companies that offer this service. Exceed Expectations is concerned with other companies that offer software application development and network support solutions. Software application development generates nearly 25 percent of our operating revenue, while network support generates nearly 50 percent of our operating revenue.

The lack of this information is a problem for Exceed Expectations and this knowledge is vital for a company’s success. We collected and analyzed the following companies in the greater Bismarck area that directly compete with and provide similar services to Exceed Expectations.

Software Application Development Competition

The Westin Group
43 Block Dr.

Grand Forks

T: 701–321–4352

F: 701–321–4123

The Westin Group is a technology firm owned by Ken Westin and is located in Bismarck County. They currently have twelve employees and they generate $1,000,000 to $2,500,000 in annual sales revenue. Many of the services they offer are things like: web design, search engine optimization, shopping cart software, and a variety of other tools to allow you to sell online. The table below shows which services The Westin Group offers that are similar to Exceed Expectations.

The Westin Group focuses on the client. They position themselves as a partner in the customers’s operations. Their main focus is creating strong client partnerships and delivering a highly personalized level of service. They do this by improving and automating their client’s processes, creating new productivity tools, B2B sites, B2C sites, shopping cart capabilities, eCommerce, online marketing, and increased market awareness through enticing websites. Essentially, they look to help their clients get a better return through technology. From looking at the language on their website and through research, we believe that this company attempts to offer a similar customer driven business model that closely matches Exceed Expectation’s customer dedication.

The Westin Group does not concentrate on selling prepackaged software applications. The reason for this is because they position themselves as a company that offers highly personalized service. They look to provide unique solutions that focus on the individual client. However, they do offer a four page website template for $599. One of their main points is that they will focus on the client’s use of technology to provide a better return in the company. This means that each company is going to require a unique solution according to specific needs.

Network Support Competition

Information Superhighway Portal, Inc.
981 Treetops Blvd.

Tioga, ND

T: 701–664–1231

F: 701–664–1802

Information Superhighway Portal, Inc. is a technology firm that is located in Bismarck County and is owned by their parent company Superhighway, LLC. Information on Superhighway, LLC is located in the last paragraph about Information Superhighway Portal, Inc. They currently have five to nine employees and generate around $1,000,000.00 to $2,500,000.00 in annual sales revenue. It was also noted that they have a satisfactory credit rating. The table below shows which services Information Superhighway Portal, Inc. offers that are similar to Exceed Expectations.

Information Superhighway Portal, Inc. offers a different range of solutions. Their main focus is being your full service provider for all of your networking, internet, and computer hardware and software needs. Again they also strive to ensure that customer satisfaction is their highest priority. They look to be a company’s “comprehensive service provider” by offering fast internet connectivity, reliable web hosting, state–of–the–art server hosting and managed network services. Essentially, Information Superhighway Portal, Inc. wants to be your company’s “one contact, one bill, one solution.” Their primary focus is to provide a company with all of the tools and technology that they need to effectively run their business and manage it for them as well.

Since the majority of the services they offer deal with software, hardware, and network systems, many of their services would technically be “boxed products.” This is true simply because of the nature of the services they offer, however, that does not mean that Information Superhighway Portal, Inc. is not capable of customizing their solutions to make them unique for each of their clients. They do not necessarily offer a blanket solution for all of their clients. They have varying levels of solutions to appeal to every size client.

Superhighway, LLC

Information Superhighway Portal, Inc. is a subsidiary of a much larger company called Superhighway, LLC. This is important information because this provides them with substantial financial stability. They currently generate $10,000,000.00 to $20,000,000.00 in annual sales revenue. It was also noted that they have a very good credit rating. They currently have fifty local employees. Superhighway, LLC sells DVDs and prepackaged computer software. They have a retail outlet on Brown Ave. in Bismarck County that generates around $1,000,000.00 to $2,500,000 in annual sales revenue. Here is a list of the Superhighway, LLC executives:

• Larry Abuot, President
• Jeri Abuot, Controller
• Adam Wixom, VP Data Processing
• Gail Brown, VP Human Resources
• Gail Brown, VP Marketing
• Chris Thompson, VP Sales
• Kathy Poorse, Purchasing Agent

Direct Network Support Competition

Destin Network Support
California Headquarters

1325 Stone School Dr.

San Diego, CA 92101

United States

T: 619–213–5000

Toll Free: (866) 213–1133

Fax: 619–213–5001

Peoria Branch

425 Ravine Rd.

Peoria, IL

61601

Direct Network Support (DNS) is a privately held company network support company that is headquartered in San Diego, California that has twenty–three branch offices in sixteen states across the country. The company has a total of 350 employees with an average of fifteen employees at each branch office. Each of the location averages around $500,000.00 to $2,500,000.00 in annual sales revenue depending on how many employees. The average sales revenue generated per sales representative is $148,600.00 per year. It is estimated that they have around $52,000,000.00 in sales revenue per year. It was also noted that Direct Network Support has a satisfactory credit rating. The table below shows which services DNS offers that are similar to Exceed Expectations.

The DNS branch office in Peoria has not been performing well for the past six months. Exceed Expectations received news that they were having a difficult time covering their monthly overhead costs. It was understood that they were paying their employees an inflated salary for the Peoria job market. They were paying their network technicians 35 percent more than the industry average. Most network technicians earn $50K to $55K per year while the network technicians were averaging $75K. They were forced to relieve some of their technicians from their duties, but they still had to service all of their clients with a reduced staff. Exceed Expectations took advantage of DNS’s problem and gained two new networking clients. Exceed Expectations is still trying to take advantage of this situation.

MARKETING & SALES

Exceed Expectations’s marketing objective is based on growth promotion strategy of our services to current clients. We have decided which clients to target after performing a revenue stream analysis. From this analysis, we have concluded that 83 percent of our revenue comes from 24 clients. This strategy involves a “two prong” approach. This approach is a combination of up–selling and cross–selling to penetrate a concentrated group of customers.

Customers

After performing the revenue analysis we have come to the conclusion that 83 percent of Exceed Expectation’s revenue comes from 24 existing clients. We have segmented these top 24 clients into three different groups based upon the amount of revenue they generate.

Group 1 ($20K+)

The first group consists of our top six current clients and they generate 54 percent of our total revenue. We found that three of six currently use business process reengineering, three of six use software application development, three of six use network support, and three of six use hosting services. Despite the fact that this group is our largest revenue provider, there is still plenty of room for growth. For each of our four services there are three clients to target. Our goal for this group is to up–sell business process reengineering and software application development to two of the four clients in this group. Based upon the relationship Exceed Expectations has developed with this client group we will also attempt to use them as a referral base in order to acquire new business in the future.

Group 2 ($10K - $20K)

The second group consists of four clients (#7-#10) that generate 10 percent of our total revenue. We found that two of four currently use business process reengineering, one of four use software application development, three of four use network support, and one of four use hosting services. Our goal for this group is to increase their spending to $20K+. We plan to do this by up–selling software application development to the two clients that are currently not using this service.

Group 3 ($5K - $10K)

The third group consists of fourteen clients (#10-#24) that generate 19 percent of our total revenue. We found that three of fourteen currently use business process reengineering, two out fourteen use software application development, eleven of fourteen use network support, and eleven of fourteen use hosting services. Our goal for this group is to increase their spending to $10K+ over the course of two years. We plan to do this by up–selling software application development to the twelve clients that are currently not using this service. We also plan to up–sell business process reengineering to the eleven current clients that are not using this service. There is considerable room for growth in this group. Since software application development generates a considerable amount of revenue we hope to up–sell six out of the possible twelve clients. Business process reengineering also generates a substantial amount of revenue, and we hope to get six out of the eleven possible clients to use this service. If we can accomplish this moderate success rate of roughly 50 percent we can add six clients to the $10K to $20K group. On average this would increase revenue by $7K to $8K per client.

We hope to achieve the following results for each of the groups. Group 1 will generate an additional $80K to $100K in revenue, Group 2 will generate an additional $30K in revenue, and Group 3 will generate an additional $40K in revenue.

Business Strategy

We plan to accomplish our up–selling goals by delegating this responsibility to the sales team. Our Sales team is comprised of Mike Amerson, Ian Wood, Peter Richardson. The majority of this responsibility will be given to Peter Richardson. It is safe to assume that Peter will have 250 days to sell out of the year. In order for these goals to be accomplished, Peter would have to sell $800 per day. Last year, Peter personally sold $470,000 worth of services which averages out to $1,880 per day. These statistics show that our goals set are indeed realistic. This also leaves time for Peter to finalize sales with new clients even further, increasing our total revenues.

Exceed Expectations’s promotion strategy will take place with the efforts of the sales team, coupled with the efforts of the network technicians. These two groups are constantly at our client’s offices, so they are capable of discovering whether or not our competitors are supplying the same services to the client. Our network technicians will work to find out which services the client needs or which are not being met by our competition. This will allow our sales team to customize their sales pitch depending on the client’s needs and wants.

Market Analysis

Exceed Expectations’s competitive edge is our established relationships with our top revenue generating clients. These outstanding relationships have developed for a number of reasons. Our clients rely on us for our expertise and technical abilities. They can contact us twenty–four hours a day whenever they may need assistance. We do not hold our clients under binding contractual agreements because we want to keep our clients based upon the exceptional work we provide for them. The technologies we develop and deploy specifically for our clients allow them to realize gains and efficiencies which lead to higher profits. We take pride in our customer retention rate because it is a reflection of the good relationship with our customers. For the past five years (even before the merger) our top five revenue generating clients have been the using our services. Building and maintaining these relationships is the quality that sets us apart from our competitors.

Marketing Strategy Summary

Exceed Expectations’s Marketing Strategy is based upon a revenue stream analysis. The results from this analysis showed us that our top twenty–four revenue generating clients account for 83 percent of our total revenue. We also discovered which clients are using what services we provide. This information showed us which clients we are going to up–sell to and what we need to offer them. We are going to take a two prong approach to increase the revenue from these specific clients. First, we will attempt to up–sell business process reengineering and software application development to the top six clients. Second, we will target the remaining eighteen clients in hopes of moving them into the $20K+ tier along with the top six clients. Peter’s efforts will be a key component in achieving our two goals. Based upon his past success rate, we are confident in his abilities to sell the additional $150,000 worth of services. The sales network technicians will compliment Peter’s efforts by finding out which services our clients need. This will result in more focused sales efforts and an enhanced success rate. While implementing this strategy we will strive to build and maintain the positive relationships that set us apart from our competition.

GROWTH STRATEGY

Income Statement

1. Revenue will increase by $30,000 in 2006 as a result of up–selling to our six current customers (Tier 1, Appendix B) with gross sales of $20,000 or more.
2. Revenue will increase by $40,000 in 2007 as a result of up–selling to our ten current customers (Tier 1 & 2, Appendix B) with gross sales of $10,000 or more.
3. Revenue will increase by $40,000 in 2008 as a result of up–selling to our twenty–four current customers (Tier 1, 2 & 3, Appendix B) with gross sales of $5,000 or more.
4. Cost of Goods Sold is 56 percent of revenue in the 2nd quarter of 2006 and will remain consistent as revenue increases due to historical quarterly financials.

APPENDIX

Appendix A

Appendix B—Financial Charts

Revenue Stream Analysis

INCOME STATEMENT

Income Statement

BALANCE SHEET

Balance Sheet

CASH FLOW

Cash Flow Statement