business plan for ict

IT Company Business Plan: Everything You Need to Know

An IT company business plan is a detailed plan for running and developing an information technology company. 3 min read updated on February 01, 2023

An IT company business plan is a detailed plan for running and developing an information technology company. It should describe all aspects of the business, including the company's description, product description, marketing strategy, and financial analysis, in a clear and precise manner.

Tips for Writing a Great Business Plan

A business plan should set out a clear roadmap for developing and expanding your business. Keep the following points in mind while writing a business plan:

• Test your idea. Avoid the temptation of jumping into a business merely on the basis of the success stories of others. Discuss your idea with prospective customers, vendors, and other people in the industry.
• Study the market to get an idea of industry trends, underlying challenges, and scope of future growth.
• Share your business plan with your employees. It is not something to be kept confidential.
• Write it in a clear and concise manner. Be specific, and cover all areas of the business.
• Put the plan to use; simply filing it away will not serve any purpose. Refer to it whenever possible.
• Revisit and revise your plan as your business grows.

Sections of a Business Plan

A typical business plan includes the following sections:

• Executive summary.
• Description of the company.
• Market research.
• Product or service description.
• Management structure.
• Sales and marketing strategy.
• Financial Analysis.

Benefits of Writing a Business Plan

Writing down your business plan offers the following benefits, among others:

• You get to understand your business better.
• It increases the chances of your business's success.
• It makes it easier to raise capital for a startup.
• Businesses with a written plan grow at a higher rate than those without any written plan.

Steps to Writing a Startup Business Plan

1. Have a Clear Objective

• Make sure that the company description is not ambiguous. The company description can also include your business's mission statement.
• State the reason for choosing that specific business. For example, you might be prompted to open a restaurant because no other restaurants in your area serve the cuisine your restaurant specializes in.
• Discuss the vision and growth prospects of your business in brief.

The summary should be concise and should not exceed four paragraphs.

2. Identify Your Target Market

Narrow down your target market based on geography, demography, psychology, and behavior. Your final target market may look like the following:

• Ages 20 to 35
• Living in the New York area
• With an annual income of $50,000-$60,000
• Who are interested in recycling and sustainable living

3. Analyze the Competition

Perform a competition analysis and differentiate your product accordingly. Price and quality can be two important differentiating factors. You should analyze the competition while simultaneously identifying your target market since both these steps are a part of the market research section of your business plan.

4. Prepare a Budget

Estimate the amount of funds you will need to start and operate the business. Many startups fail due to lack of funds. Preparing a budget beforehand will reduce this risk. When calculating your budget, consider all possible expenses, including the following:

• Cost of equipment.
• Money required for buying or leasing property.
• Legal fees.
• Employees' salaries.
• Insurance premiums.
• Inventory cost.

5. Make Financial Projections

Prepare financial projections based on the size of your target market and your expected market share. Include the expansion strategy in your projections. Keep your projections reasonable and make sure you cover three to five years of operations.

6. Define Your Business Structure

Define the organizational structure of your business. Having a clear hierarchy of power removes unnecessary doubt and debates over jobs and reporting positions. However, avoid adding too many layers in your business structure since that may create confusion and make the communication inefficient.

7. Prepare a Marketing Plan

A well-balanced marketing plan should include a strategy for customer acquisition in line with your target market, budget, and financial projections.

Some of the basic ideas for a marketing plan include the following:

• Launching a website.
• Being active on social media.
• Building a subscribers' list.
• Setting up loyalty programs.

8. Keep It Short and Simple

Although your business plan should be detailed and thorough, make it a point to keep it short and simple. Write it professionally and avoid using jargon. Proofread the plan for grammar, readability, and confusion.

If you need help with IT company business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Content Approved by UpCounsel

• Creating a Business Plan
• Sample of a Good Business Plan
• Service Business Plan
• Business Plan for Existing Company
• Business Plan for New Company
• Do I Need a Business Plan
• Parts of Business Plan and Definition
• LLC Business Plan Template
• Business Plan Contents Page
• Business Description Outline

Technology Business Plan Template

Written by Dave Lavinsky

Technology Business Plan

You’ve come to the right place to create your own Technology business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Technology businesses.

Technology Business Plan Example & Template

Below is a Technology business plan template and sample to help you create each section of your own business plan.

Executive Summary

Business overview.

Kearney Tech Inc., located in Houston, Texas is a tech startup that focuses on developing and commercializing new artificial intelligence (AI) technology applications designed for small-to-medium sized businesses. The company has created proprietary technology that helps businesses improve their profitability by using AI to increase customer engagement. We offer multiple products, including AI hardware, marketing AI software, and CRM AI software. Many of our most basic services are free, but the rest can be accessed by paying a subscription fee. By providing flexible and affordable subscription options for our clients, Kearney Tech Inc. aims to be the next big technology company in the AI space for small and medium-sized businesses.

Kearney Tech Inc. was founded and is led by Abigail Kearney. Abigail has been a senior software engineer for nearly 10 years and has extensive experience in artificial intelligence and machine learning. In addition to her experience, she has a bachelor’s degree in computer science and an MBA. Her education and experience are sure to lead Kearney Tech Inc. to success.

Product Offering

Kearney Tech Inc. will showcase a variety of different applications for its AI technology that companies can utilize to increase their customer engagement from day one. Businesses can choose the platform package that works for them, based on a freemium subscription pricing structure.

The following are the services that Kearney Tech Inc. will provide:

• AI Hardware
• Marketing AI Software
• Customer Relationship Management AI Software
• Customer Support AI Software
• Technology Training: Training sessions on how to use our AI solutions and integrate them into their businesses

Customer Focus

Kearney Tech Inc. will serve small to medium-sized businesses within a 30-mile radius of Houston, Texas. Many of the businesses in our target demographic are startups looking to expand their reach and thus would benefit from technology that can increase their customer base.

Management Team

Kearney Tech Inc. will also employ an experienced assistant to work as a business analyst and help with various administrative duties around the office. She will also hire several developers, salesmen, and other administrative staff to assist her.

Success Factors

Kearney Tech Inc. will be able to achieve success by offering the following competitive advantages:

• Management: Abigail Kearney has been extremely successful working in the technology industry and will be able to use her previous experience to provide the best service experience. Her unique qualifications will serve customers in a much more sophisticated manner than Kearney Tech Inc.’s competitors.
• Relationships: Abigail Kearney knows many of the local leaders, business managers, and other influencers within Houston, Texas. With her 10 years of experience and good relationships with business leaders in the area, she will be able to develop an initial client base.
• Proprietary technology : The company has developed proprietary AI technology that will be used to add new data sources, expand on valuable insights, launch advanced features like benchmarking, provide predictive and prescriptive analytics, and ensure self-guided data discovery.
• Client-oriented service: Kearney Tech Inc. will have full-time customer service and sales managers to keep in contact with clients and answer their everyday questions.

Financial Highlights

Kearney Tech Inc. is seeking a total funding of $400,000 of debt capital to open its office. The funding will be dedicated to office design, software development, marketing, and working capital. Specifically, these funds will be used as follows:

• Office design/build: $50,000
• Software development: $150,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $25,000
• Working capital: $25,000

The following graph below outlines the pro forma financial projections for Kearney Tech Inc.:

Company Overview

Who is kearney tech inc..

Abigail began researching what it would take to create her own technology company and did a thorough analysis of the costs, market, demographics, and competition. Abigail has compiled enough information to develop her business plan in order to approach investors.

Kearney Tech Inc.’s History

Once her market analysis was complete, Abigail Kearney began surveying the local vacant office space and located an ideal location to house the technology company. Abigail Kearney incorporated Kearney Tech Inc. as a Limited Liability Corporation in April 2023.

Since incorporation, the company has achieved the following milestones:

• Located available office space for rent
• Developed the company’s name, logo, and website
• Determined equipment and necessary supplies
• Began recruiting key employees

Kearney Tech Inc. Services

Industry analysis.

As of 2021, the global technology industry was valued at approximately $5.2T. Of all countries worldwide, the United States currently has the largest technology market, with 32% of the market share at $1.7T. The technology industry in the U.S. accounts for a large part of the nation’s economy.

The Information Technology market can be segmented by categories such as software, devices, infrastructure IT and business services, emerging technology, and telecom services. In the United States, IT and business services hold the greatest market share (30%), followed by software (20%) and telecom services (20%).

Market drivers include the economy, employment rates, and the digital transformation of daily life for a growing number of people and businesses worldwide. Corporations and organizations are seeking IT service providers that can help improve their software, cybersecurity, data, and infrastructure. Technology companies that can provide products and services that cater to these issues can be competitive in the constantly evolving market.

Technology is an integral part of society. Developments in AI and machine learning are essential to keep society moving forward and make businesses more efficient. Therefore, businesses will always be in need of AI solutions to bring in more customers and streamline their services and products. According to Market Watch, the Technology industry is set to grow at a CAGR of 25.73% from now until 2027. Very few industries see this growth, which shows how much demand there is for technological solutions. Therefore, we expect Kearney Tech Inc. to see great success in our local market.

Customer Analysis

Demographic profile of target market.

Kearney Tech Inc. will serve the small and medium-sized businesses of Houston, Texas, and the surrounding areas.

Many small businesses in the community are startups or established enterprises looking to expand their reach and thus would benefit from technology that can increase their customer engagement.

Customer Segmentation

Kearney Tech Inc. will primarily target the following customer profiles:

• Small businesses
• Medium-sized businesses

Competitive Analysis

Direct and indirect competitors.

Kearney Tech Inc. will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Tekuserv has been a reliable technology company in Houston, Texas for more than fifteen years. The company is known for its wide range of technology solutions that serve many small-to-medium-sized businesses. With its large number of experts focused on delivering customer satisfaction, the organization maintains its high standard of developing quality products and providing exceptional customer service. Tekuserv provides business software on a freemium subscription basis. It develops enterprise technology solutions with a focus on customer relationship management.  

Prime AI Business Solutions

Prime AI Business Solutions is a technology development company in Houston, Texas. In business for several years, the company has developed highly-rated AI solutions used by many well-known businesses in a variety of industries. Prime AI Business Solutions now offers a range of AI hardware and software products geared toward helping businesses of all sizes increase their customer base. The company has also introduced a “pay-as-you-grow” pricing model that scales to provide users with more support as they scale up.  

AICE Developments

AICE stands for Artificial Intelligence for Customer Engagement. AICE Developments is also a local technology company that manufactures and distributes a variety of technology products. AICE Developments was established in 2009 in Houston, Texas, providing integrated AI applications and platform services. Its products include applications and infrastructure offerings delivered through various IT deployment models, including on-premise deployments, cloud-based deployments, and hybrid deployments. The company serves automotive, financial services, healthcare, hospitality, retail, utilities, construction, etc. It provides AI solutions for enterprise marketing and customer engagement.

Competitive Advantage

Kearney Tech Inc. will be able to offer the following advantages over the competition:

• Proprietary technology: The company has developed proprietary AI technology that will be used to add new data sources, expand on valuable insights, launch advanced features like benchmarking, provide predictive and prescriptive analytics, and ensure self-guided data discovery.

Marketing Plan

Brand & value proposition.

Kearney Tech Inc. will offer a unique value proposition to its clientele:

• Service built on long-term relationships
• Big-firm expertise in a small-firm environment
• Thorough knowledge of the clients and their varying needs
• Proprietary technology developed by skilled software engineers

Promotions Strategy

The promotions strategy for Kearney Tech Inc. is as follows:

Kearney Tech Inc. understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

Kearney Tech Inc. will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO

Kearney Tech Inc. will invest heavily in developing a professional website that displays all of the features and benefits of the technology company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Direct Mail

Kearney Tech Inc. will blanket businesses with direct mail pieces. These pieces will provide general information on Kearney Tech Inc., offer discounts, and/or provide other incentives for companies to use the AI platform.

Kearney Tech Inc.’s pricing will be on par with competitors so clients feel they receive great value when purchasing the technology.

Operations Plan

The following will be the operations plan for Kearney Tech Inc.:

Operation Functions:

• Abigail Kearney will be the Owner and CEO of the company. She will oversee all the operations and executive functions of the company. In the beginning, she will also provide customer support and market/sell AI products to potential clients.
• Abigail will employ an experienced assistant to work as a business analyst and help with various administrative duties around the office.
• Abigail will also hire several developers to maintain and develop AI products and services.
• Abigail will also hire a solid sales team to sell our products to potential clients. As the company grows, she will also hire a team that is solely dedicated to customer service.

Milestones:

Kearney Tech Inc. will have the following milestones completed in the next six months.

5/2023 – Finalize lease agreement

6/2023 – Design and build out Kearney Tech Inc.

7/2023 – Hire and train initial staff

8/2023 – Kickoff of promotional campaign

9/2023 – Launch Kearney Tech Inc.

10/2023 – Reach break-even

Financial Plan

Key revenue & costs.

Kearney Tech Inc.’s revenues will come primarily from its technology solution subscription sales. The company will use a freemium subscription model, in which basic functions can be used by any company for free. Additional solutions and support will be available in a tiered package model based on the enterprises’ size and the number of users.

The office lease, equipment, supplies, and labor expenses will be the key cost drivers of Kearney Tech Inc. Ongoing marketing expenditures are also notable cost drivers for Kearney Tech Inc.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Average number of clients per month
• Annual rent: $20,000

Financial Projections

Income statement, balance sheet, cash flow statement, technology business plan faqs, what is a technology business plan.

A technology business plan is a plan to start and/or grow your technology business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Technology business plan using our Technology Business Plan Template here .

What are the Main Types of Technology Businesses?

There are a number of different kinds of technology businesses, some examples include: Network technology, Software technology, and Customer relationship technology.

How Do You Get Funding for Your Technology Business Plan?

Technology businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Technology Business?

Starting a technology business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Technology Business Plan - The first step in starting a business is to create a detailed technology business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your technology business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your technology business is in compliance with local laws.

3. Register Your Technology Business - Once you have chosen a legal structure, the next step is to register your technology business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your technology business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Technology Equipment & Supplies - In order to start your technology business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your technology business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful Technology business: How to Start a Tech Company

MassChallenge

Innovation Blog

7 steps to create a technology startup business plan.

• Published on: April 26, 2022
• Author: masschallenge

Many entrepreneurs still overlook the importance of a technology startup business plan. In a space as competitive as the tech industry, a lack of preparation will surely pave the way to disappointment.

Instead of diving in without any concrete strategy, a plan provides a foundation for sustainable business growth.

In this article, we’ll explore the essential elements of a tech startup business plan, and provide the insights you need to create a plan for success.

What Is A Business Plan?

A tech startup business plan is a document that details the premise of your technology business, summarizing vital financial objectives and operational goals, as well as details on how you will accomplish these goals.

Put simply:

It’s a road map that describes what you intend to do, and how you intend to do it.

A typical business plan will comprise the following seven elements:

• Executive Summary
• Company Description

Market Research

• Description of Products and/or Services
• Management & Operational Structure
• Marketing Plan
• Financial Plan

3 Reasons You Need a Business Plan

Before we dive into the individual aspects of a startup business plan, let’s first consider why you need one.

Just what are the benefits of a business plan?

1. It Offers Greater Clarity

Having a business plan will give you a much better understanding of your business and the objectives you are trying to achieve. Even the most basic technology startup business plan example will seek to define your goals in more objective terms.

For example, you can set specific targets for website traffic, sales volumes, or profit margins. This makes it easier to track and measure success and aligns your decision-making with sales and marketing initiatives.

2. It Increases the Chances of Success

A report from the Harvard Business Review found that companies with a business plan are 16% more likely to succeed.

Furthermore, companies that have a business plan also enjoy higher growth rates than companies without a plan.

3. You Are More Likely to Get Investment

Angel investors and venture capitalists aren’t in the habit of making bad bets. When they part with large sums of money, it’s a carefully considered decision they base on the likelihood of earning a positive return on investment (ROI). When you have a business plan, you give your startup strategic focus, which helps you create an identity that is built to succeed. This makes for a more attractive prospect in the eyes of investors, so it’s easier to raise capital for your startup when you have a plan.

How to Write a Business Plan for Your Tech Startup (7-Steps)

So, now that you understand the motivation behind creating a tech startup business plan, it’s time to see how it’s done. By including the seven elements below, you’ll have a plan that gives your company a much stronger footing.

1. Executive Summary

The executive summary is, without a doubt, the most critical element of your tech startup business plan. Despite this, a lot of plans fail here because the summary doesn’t captivate readers. If you can’t hook prospective investors, partners, or employees with your executive summary, they may never read the rest of your business plan.

Source: The Balance

This section should be compelling yet concise, giving people enough to understand what makes your startup unique, and how it will be able to offer solutions in an existing, competitive market.

While you want to keep it brief, there is a lot to pack into this opening section of your business plan. Here are the crucial components of an executive summary:

• Business Model – What is your product or service? How will you make money?
• Target Market – Who will benefit from this product or service?
• Business Opportunity – Why do consumers need your product or service?
• Marketing Strategy – How will these consumers learn more about your product or service?
• Competition – What other companies are competing for market share?
• Goals – How will your startup transform the marketplace with this product or service?

As the executive summary is such a vital aspect, it’s a smart move to write it last. By waiting until you have finished the rest of the business plan, you can draw from the other sections to craft an excellent executive summary.

2. Company Summary

The company summary essentially boils down to a single sentence, otherwise known as a headline statement.  When it’s done right, this summary can be the perfect elevator pitch to capture the imagination of would-be financial backers or partners, and it will serve as a natural lead-in to your more detailed business plan.

Source: Gusto (credit: LivePlan)

The company summary or headline statement should do the following:

• Give people a brief overview of what your company does.
• Communicate the value you offer.
• Highlight the opportunity in the market.

Here is a good template to create your company summary:

<Your company> is a <type of business> who sells <product or service> to <target customer> , who needs <solution> , but doesn’t get it from <competition> .

Don’t worry if you can’t create the perfect summary now. When you develop your business plan, you will get a better understanding of what this headline statement should be, and then you can refine it to reflect your vision and value proposition.

We’re sure you have a great idea, but that’s no guarantee that everyone is going to love it as much as you do. No matter how good you think your startup may be, you still need to conduct proper market research to learn more about your ideal customers and competitors.

Identify your Target Market

Without a viable market for your product or service, your business is doomed.

Many startups have failed quickly because the owners were so obsessed with their own product that they were effectively blind to the fact that nobody else cared about it.

Source: CB Insights Image: Cleveroad

Initially, you can adopt a broad scope to get a sense of your total addressable market (TAM), which is the potential revenue opportunity your new product or service could generate. Of course, with the competition, and changing consumer interests, it’s unlikely you will dominate the entire TAM.

Once you have this broad idea, you can hone your sights to go more niche. While this presents a smaller audience, it is more effective. By narrowing your targeting, you can market to a more engaged audience that will be more receptive and likely to purchase your product or service.

Consider the following factors when segmenting your audience:

• Demographic – What age group? What gender?
• Geographic – In what country or city do your prospects live?
• Behavior – What websites/blogs/news sources do they use? What are their purchasing habits? What retail sites or brands do they buy from?

With in-depth data analysis and evaluation of your prospective customers, you can create detailed buyer personas that help you refine your marketing strategies.

Perform Competitor Analysis

During the market research stage of your tech startup business plan, you should also carry out a thorough competitor analysis.

This will help you determine the key differentiators between your company and the competition.

Ask yourself these questions:

• Why should people choose my product or service?
• How can I improve on the existing solutions in the market?
• Why do people not already buy the products in the market?

By thinking about current trends or flaws in existing products, you can identify opportunities for innovation so that your business can connect with customers on a deeper level.

Knowing your audience is crucial, and therefore, your business plan must demonstrate a deep understanding of your target market, and your competitors.

3. Description of Products and/or Services

Here, you must highlight the link between what you are offering, and what people need, so you can prove that people are ready and willing to pay for your product or service.

Research Problems in Market

It helps to conduct some face-to-face research, asking potential customers about the problems they have. Don’t try to usher the conversation in any direction or shoehorn their answers to fit your product – instead, look to learn from their honest responses about the solutions they need.

You should do this research before creating the product. After all, it makes more sense to create a product for an existing problem, instead of trying to find a problem for your product.

Source: ProductTribe

Tailor Product to Problems

After doing your research on the existing problems in the market, trim your list to focus on a few of the most important issues. Describe how your product or service will be the ultimate solution to these problems.

For instance, if people believe the existing solutions are too expensive, you can offer a product with a more attractive price point.

By matching up consumer problems with specific solutions, you can develop a product or service that has a more significant value proposition.

4. Management & Operational Structure

The next stage of the traditional technology startup business plan template delves into the people that make up your company. You must highlight the strengths and experience of your existing team, as new partners effectively invest their money in the team as much as the business idea.

Ideally, your team will consist of several experts whose respective skill-sets complement one another. For example, your tech startup may have a coder, a graphic designer, an inbound marketing expert, and a sales professional. Discuss the merits of each team member to convey the value they add to the business.

You can also speculate about prospective new hires and the key attributes you will seek in future team members. If you haven’t already got a chief financial officer (CFO), it’s a smart move to mention adding one soon. This will add backbone to your business plan by reassuring people that you have good financial sense.

Organizational Chart

Here, your plan should clearly define the organizational structure of your startup. For now, it may just be you and a couple of business partners.

However, by including a graphic that visualizes the structure you intend to build, people will get a clear understanding of the distribution of power and chain of command.

For example, it may look something like this:

Having a hierarchy prepared before starting helps prevent any debates about who is in charge of each department, and makes it easier to understand who reports to who.

5. Marketing and Sales plan

No tech startup business plan would be complete without mentioning the marketing and sales strategies you intend to use.

Sales channels

To clarify the difference, marketing channels are used to promote your business, and its products or services, whereas sales channels are the mediums that enable people to purchase those products or services.

You may only have one direct sales channel to begin with, such as an online e-commerce store. Make sure you explain it in your business plan.

Marketing activities

In this section, you must detail how you will acquire leads and customers.

At the base level, you should do the following:

• Launch a company website
• Develop strategy to get organic traffic (i.e. visitors from search engines like Google)
• Develop a PPC strategy to get immediate online exposure for your most important product/service keywords
• Develop channel partnerships
• Build an email subscriber list

Over time, you can use marketing to nurture stronger customer relationships, which in turn, help you build an audience of loyal followers that will, hopefully, become customers.

The marketing section of your business plan will need to account for several factors, including your goals, risks in the market, and your budget. Which brings us to the final aspect of your tech startup business plan.

6. Financial Plan

Lastly, any good business plan must include pertinent details about your company budget and sales goals.

This can be daunting for many new entrepreneurs and is all the more challenging when you have no balance sheets, cash flow reports, or even any stable income on which to base your projections.

That being said, it’s still possible to make educated projections – so long as you have done solid market research.

When it comes to financial matters, your business plan should include details about:

• Revenue streams – how will the company generate income?
• Major expenses – What high costs do you anticipate in the year ahead?
• Salary demands – Are you still bootstrapping or are you and the partners taking a salary? If so, how much?
• Financial milestones – Detail your expansion strategy by considering future hires or store openings that will impact the books.

Many startups aren’t profitable in the first year. Your financial projections should maintain a long-term view for success, keeping ambitions realistic and honest. That way, you’ll be able to produce a more accurate break-even analysis .

With these long-term projections, you must consider the financial impact of expanding. You may be making more money in Year 3, but opening a new store will set you back.

Keep everything in perspective and make sure you don’t set yourself or your investors up for any nasty shocks down the road.

5 Tech Startup Business Plan Templates

When you have all the elements above in place, your business plan will be in good shape. However, presentation matters. If you want to make the best first impression, getting creative with your technology startup business plan template can make a big difference.

Not only will your research and expertise shine through, but you will have a visually stunning presentation that catches the eye of investors.

Here are five tech business plan examples to inspire you.

Business Plan Infographic PowerPoint

This plan allows you to present in-depth market analysis, statistics, and projections in a professional visual infographic. With several hundred editable slide options, it’s well worth the $16 fee for the license.

Source: Medium

Emaze Business Planning With Analytics

This is more than the average technology startup business plan template. Emaze has a diverse array of creative collaboration tools, making it easy and enjoyable for teams to create unique plans together from any of the built-in templates. Furthermore, you can incorporate analytics, which is perfect for impressing investors. That said, $19 per month for the premium version may seem a little steep for some small businesses.

Source: Emaze

Lean Canvas 1-Page Business Plan

A tech startup business plan doesn’t need to take weeks to create. In fact, with this template, you can have a basic – yet brilliant – business plan all together on a single page in just 20 minutes.

Source: Lean Stack

StartUp Pitch

For $15, you can access the full array of colorful slides in this presentation, which are all customizable to your needs. This template includes many ready-made aspects of the typical business plan, such as SWOT analysis, competitor analysis, and project timelines.

Source: Envato

This is another user-friendly tool for creating short business plans. You enter the information, and then LivePlan will generate a one-page plan in an infographic style.

Source: LivePlan

Make Your Tech Startup Business Plan a Priority

It’s not enough to have a great startup idea.

If you want to stand out from the pack, secure investment, and build a successful company that can earn real profits, growth, and customer loyalty, then you absolutely must have a solid tech startup business plan.

It’s time to create yours.

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IT Consulting Business Plan

The increasing use of AI and Automation and the rising remote & hybrid work culture have revolutionized the IT consulting industry. The demand for IT consultants is like never before.

Starting and managing an IT consulting firm may involve loads of hard work and a bit of risk, but the benefits are well worth it.

And having a well-prepared business plan could make things a lot easier for you to get started.

Need help writing a business plan for your IT consulting business? You’re at the right place. Our IT consulting business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write an IT Consulting Business Plan?

Writing an IT consulting business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

• This section may include the name of your IT consulting, its location, when it was founded, the type of IT consulting business (E.g., cybersecurity consulting, cloud computing consulting, IT project management consulting.), etc.

Market opportunity:

Product and services:.

• For instance, you may provide services, like IT governance & risk management, cybersecurity services, data analytics, and business intelligence, etc.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

Describe your business in this section by providing all the basic information:

• Technology strategy consulting
• Cybersecurity consulting
• IT outsourcing consulting
• Cloud computing consulting
• IT infrastructure consulting
• IT project management consulting
• Describe the legal structure of your consulting company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the consulting industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, You may target SMEs, startups, non-profits, healthcare organizations, and financial institutions if you provide IT consulting services.

Market size and growth potential:

• You may include statistics and information like the number of SMEs and startups in any particular industry if you target a niche market.

Competitive analysis:

Market trends:.

• For instance, there is a growing trend toward cloud computing and digital transformation. More and more businesses are embracing cloud technologies. Describe your plans for dealing with this.

Regulatory environment:

Here are a few tips for writing the market analysis section of your IT services business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the consulting services your business will offer. This list may include services like,

• IT outsourcing and vendor management
• Digital transformation services
• IT project management
• Software development & integration
• IT infrastructure services
• Cloud computing services

Describe each service:

Partnerships & alliances:, additional services:.

In short, this section of your IT consulting plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, a proven track record, responsive and timely service, and specialized expertise could be some of the great USPs for a professional IT consultancy.

Pricing strategy:

Marketing strategies:, sales strategies:.

• Include any sales training or workshops you provide to your sales team.

Customer relationship management:

Overall, this section of your IT consulting or tech support business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your IT consulting business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:.

• Your operational processes may include customer relationship management, project management, personnel management, service delivery, business development, administrative and operational tasks, etc.

Quality assurance:

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your IT consulting business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include key executives(e.g. COO, CMO.), IT consultants, and other department managers (e.g. operations manager, project manager.) involved in the business operations, including their education, professional background, and any relevant experience in the consulting industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information about their roles and years of experience.

This section should describe the key personnel for your IT consulting services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should summarize the business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the IT consulting industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your IT consulting business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample IT consulting business plan will provide an idea for writing a successful IT consulting plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our IT consulting business plan pdf .

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Frequently asked questions, why do you need an it consulting business plan.

A business plan is an essential tool for anyone looking to start or run a successful IT consulting business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your IT consulting company.

How to get funding for your IT consulting business?

There are several ways to get funding for your IT consulting business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your IT consulting business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your computer consulting business plan and outline your vision as you have in your mind.

What is the easiest way to write your IT consulting business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any IT company business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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IT Strategic Plan: A 5-Step Planning Process (With Template)

Looking for a way to execute key IT and digital initiatives faster to support business growth? Sounds like you need a strong and well-thought-out IT strategic plan.

On paper, it sounds easy to do, right— “a well-crafted IT strategy should set a clear path on how you’re planning to enhance the business’s performance with technology.”

But developing and executing one isn’t a simple task. According to Gartner’s CIO survey , only 29% of CIOs consider their organization effective at IT strategy and planning. It’s a complex, time-consuming, bang-your-head-against-wall process (if you don’t have the right approach). 

Not to worry—that's why we're here. In this article, we’ll cover the key elements of an IT strategy plan and share a practical step-by-step process with examples to help you create and execute your own. 

Oh, did we mention you get a free IT strategic plan template ?

Ready? Discover how to create an actionable and execution-ready IT strategic plan the Cascade way!

In this article, you’ll discover: 

• What Is an IT Strategic Plan?
• The Benefits of IT Strategic Planning
• Key Components of an Execution-Ready IT Strategic Plan
• The 5 Steps of a Highly Effective Strategic IT Planning Process
• IT Strategic Plan Example + Template

Take Control of Your IT Strategic Planning with Cascade 🚀

What Is An IT Strategic Plan?

An IT strategic plan is a roadmap that outlines an organization's goals and objectives for using technology to achieve its business objectives. It provides a framework for making technology-related decisions and investments that align with the organization's overall strategy .

The Benefits Of IT Strategic Planning For CIOs

In today's fast-paced and competitive environment, CIOs use IT strategic planning process to:

• Set and align IT priorities with business objectives and goals. 
• Prove the value and impact of IT within the organization to increase credibility and influence.
• Assess potential risks and vulnerabilities, and develop proactive measures to prevent financial losses and reputational damage.
• Improve communication and collaboration by breaking down silos, ensuring everyone is on the same page, and rowing in the same direction. 
• Focus on IT projects with the greatest potential for impact and ROI, maximizing the value of IT investments and ensuring efficient use of resources.
• Help organizations stay ahead of digital transformation , technology trends and adapt to changing business needs, keeping technology aligned with organizational needs.

Key Components Of An Execution-Ready IT Strategic Plan

An execution-ready IT strategic plan is more than words on paper. It’s an action plan to improve your company’s technological capabilities and deliver business value. 

If you want to inspire alignment and drive ownership for successful strategy execution, your IT strategic plan should include these elements:

🔎 Focus areas : Where should your team focus the attention and efforts? What area of IT will have the most impact on the business strategy?

📌 Goals and objectives: What do you want to achieve exactly? Your goals and objectives are the outcomes you’re aiming for. 

💰 Budget: What resources do you have to achieve your goals and objectives? Are your plans realistic?

😎 Owners: Who is in charge of projects and accountable for their success? Your IT strategic plan needs individuals or teams to ensure it is executed.

📆 Due dates: When do specific actions, initiatives, and projects need to happen? Your IT strategic plan needs timeframes and deadlines to be enforced and acted upon.

📤 Actions: What specific initiatives, deliverables, or projects need to happen within your focus areas? Your IT strategic plan should provide clear and actionable steps for teams to reach goals.

📈 Measures: How will you track progress as your teams execute? Which are the most important IT KPIs your team should track and report upon? A solid IT strategic plan will have an element of progress tracking that promotes consistency and accountability .

👉 Click here to get your free IT strategic plan template (P.S.: The template has all the key elements described above and is pre-filled with examples so you can start working on it right away.)

The 5 Steps Of A Highly Effective Strategic IT Planning Process

So, now that you know which elements you need to include in your IT strategic plan , let's explore how to get there.

Here are five steps to achieve effective IT strategic planning and execution:

1. The alignment phase: IT strategy is part of your business strategy

While IT strategic planning focuses on medium-term goals, CIOs must consider the realm beyond their IT environment (i.e., your company goals).

In the HBR survey , 77% of respondents said the disconnect between IT and business strategies is resulting in significant costs. 

This is a vital consideration for IT leaders. You must be aware of the dangers of misaligned or isolated strategic planning. Don’t fall into the trap of thinking your IT planning process is separate from other business processes or goals. 

To top it off, a study from Workday found that one-third (31%) of companies are rarely aligned on their digital finance transformation goals, with CFOs citing this as a top barrier to successful digital transformation initiatives. 

Focus less on technology talk and more on business strategy outcomes. 

Schedule a strategic planning workshop and kick it off with a recap and discussion about goals that the company is pursuing to understand how technology can help achieve those goals. 

👉Here’s how Cascade can help you:  

Use the Alignment View to get a visual overview of strategic alignment between your IT plan and business strategy. You can also use it to check how your existing IT initiatives contribute to the success of the business strategy.

2. The analysis phase: What should your IT strategy focus on

According to Gartner 's 2023 CIO and Technology Executive Survey, 95% of organizations struggle to develop a vision for digital change, often due to competing stakeholder expectations.

Sure, the squeaky wheel usually gets the most grease, but don’t use this as your base to identify strategic priorities. This approach won’t move the needle for the organization. Instead, focus on what will have the highest impact on the organization in the future and prioritize those initiatives .

As a strategic leader and changemaker, you’ve got to ask yourself: 

• How should the business approach these challenges? 
• What projects should we prioritize for maximum impact in the future? 
• If everyone’s investing in automation, cybersecurity/information security, and data centers, should we be doing the same? 
• Do we have enough resources to support our current strategy, or do we need to develop new resources? 

Researching IT priorities for your organization based on market impact is a good start, and you can do this with reports, industry research, and other data.

But, Gartner also suggests that you should also look to others within your organization to provide insights and different perspectives on priorities and challenges, for example:

• Leadership signals. 
• Stakeholders in the business who share your vision (Ideal Partners).

💡 Top tip: Your people and teams are valuable assets for identifying areas of IT investment. Bring key stakeholders into your strategic planning process to level up your strategic analysis and research.

3. The goal-setting phase: Who is responsible for what?

Next, decide how your IT strategic plan will filter into actionable projects for different teams to execute.

To drive outcomes, goals need to have owners who will manage their initiatives to completion. These initiatives also need to be aligned with your high-level planning as well as the organization’s broader strategic objectives .

Sound like a difficult balancing act? Not if you take a systematic approach. 

A simple way to get started with goal-setting in a strategy-aligned way is to use a three-column table.  

• Jot down business objectives and problems in column A.
• See how your IT strategy can support or improve them in column B.
• Assign project owners to each initiative in column C.

For example:

Column A: What are our business goals or problems? 

• Improve customer experience

Column B: How can our IT strategy support it?

• Optimize our data analytics capabilities and IT infrastructure.
• Implement new CRM software.
• Develop and deploy new digital solutions to improve customer experience.

Column C: Who is responsible for achieving this?

• Optimize our data analytics capabilities and IT infrastructure → Data Analytics Manager & Data Team.
• Implement new CRM software → Customer Support Team & IT Team.
• Develop and deploy new digital solutions to improve customer experience → Customer Experience Manager & IT Team.

Setting your IT goals this way will ensure that actions consistently align with your company’s strategic objectives. You’ll also be able to see if your strategic goals are realistic and within your budget. Plus, you'll ensure each goal has an owner rather than lacking clarity over accountability and realizing this in your next review. 

Once you’re done, go through your table and look for overlapping imperatives, opportunities to streamline execution, and how to prioritize goals. 

Additionally, share them with other key internal and external stakeholders, get feedback, and make changes based on their perspectives. 

👉Here’s how Cascade can help you:

With Cascade's Strategy Planner, you can easily set IT goals and align them with business objectives in a centralized platform. During setup, you'll be able to add a goal's owner, collaborators, due dates, and measure of success. Doing so can keep everyone on the same page and accountable for progress. 

Here’s an example of IT objectives and goals in Cascade:

4. The execution phase: How to get it right

The way you approach strategy execution can make or break the work you’ve put into your strategic planning. 

A successful and fast execution phase has two equally important parts:

• Building a clear and actionable execution plan with key elements developed in the previous steps. 
• Communicating this plan to your stakeholders. Not just to your IT department, but to everyone who will be involved or affected by the execution of your plan. 

To execute your IT strategic plan successfully, ensure that your stakeholders understand the IT strategy's goals, importance, and potential impact. Clarify IT governance, functions, and responsibilities, and establish communication channels to support transparency and cross-collaboration. 

Clarity and strong execution are critical to achieving your IT goals and delivering real value.

Here are two things you can do to get it right:

• Use visual tools: Create strategic roadmaps to communicate plans and timelines.
• Get the wheel spinning early in the process: Hold a workshop or meeting to officially kick off your execution phase. Use this opportunity to explain the strategic direction, who will be involved in the execution, and why you are doing it. 

👉Here’s how Cascade can help you: 

Simplify how you view your planning and execution: Cascade’s Timeline (Roadmap) view lets you visualize IT goals, plans, and progress in an easy-to-read Gantt-chart-style interface. Use it to plan and monitor your IT strategic plan in one place.

5. The monitoring and adaption phase: Stay on your toes

According to Gartner’s survey of 2,387 CIOs and technology executives, more than half of digital transformation initiatives take too long to execute and more than 50% take too long to realize value.  

Strategy execution isn’t a matter of set-and-forget or one-then-done. 

Plans must be acted on, projects must move forward, and expectations must be met. If you're not actively monitoring strategic initiatives, how do you know if you’ll be able to deliver the promised business value of IT? 

Progress reporting and monitoring should be a top priority for CIOs after a strategy kickoff, especially since only 18% of team members review progress on weekly basis. This means enforcing KPIs (key performance indicators), using the right tools to monitor performance, and regular check-ins with IT project owners. 

Sure,  it’s easier said than done at scale, but here are some tips to get it right:

• Use a performance management system: Use it to get an accurate picture of milestones, top performers, and address execution issues proactively.
• Be ready to adapt and optimize:  Any solid strategic plan will include long-term initiatives that can take three or five years to implement. A great one will be ready to pivot and change in the face of new technology, information, and approaches. Being flexible and open to new opportunities is essential to stay ahead in today's constantly evolving landscape.
• Stop wasting time with manual reporting: The old way of PPT presentations, Word docs, and PDF reports won’t cut it in today’s pace of business. Think about it—every second used to type, send, and read those reports could be channeled into achieving better business outcomes. 

👉Here’s how Cascade can help you: Leverage data sources from anywhere: Cascade's thousands of integrations allow you to consolidate disconnected business tools in one place, reducing context switching and helping to create a single source of truth.

Monitor progress with live dashboards: Use a powerful Dashboards feature to streamline insights into performance, monitor critical metrics, and promote data-driven decision-making.

Keep everyone in the loop: With Cascade’s Strategy Reports , you can instantly visualize data, contextualize any breakthrough or setback, and share updates with your teams in engaging ways.

Example of a report in Cascade.

📌Remember that successful IT strategies depend on:

• Proper research and planning.
• Involving different stakeholders in the strategic planning process.
• Setting realistic goals.
• Communicating the strategic plan effectively to a wider audience.
• Monitoring progress and adjusting as teams execute.

IT Strategic Plan Example + Template 

Get a headstart on your IT strategic planning with our IT Strategic Plan Template . 

What do I get?  This information technology strategic plan comes prefilled with IT KPIs, Projects, Goals, and Focus Areas to help you hit the ground running. 

What if I want to customize it? While it’s pre-filled with examples, you can easily adjust, modify, and customize input to meet your needs. 

Is it right for me? It’s perfect for CIOs, IT departments, and digital transformation leaders who need to create a strategic plan for their departments and show the ROI of IT initiatives to the leadership team. 

👉What are you waiting for? Start developing your IT Strategic Plan today. Click the link here and get your free template. 

✨ This template doesn’t match your needs? You can explore our strategy template library with over 1000 templates, including: 

• Digital Transformation Plan Template
• Technology Roadmap Plan Template 
• Digital Adoption Strategy Template

A well-thought-out IT strategic plan is critical for IT leaders who want their organization to stay relevant in a rapidly changing world.

But it’s not enough to maintain a competitive edge and grow your business. Companies with growth-focused mindsets need a platform that makes strategic execution central to how they do business.

With Cascade, you can turn your IT vision into a future-proof strategic plan your teams can work towards and deliver business results. 

Start today with a free forever plan or book a 1:1 product tour with Cascade's in-house strategy expert.

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3.0 products, 4.0 market analysis, 5.0 marketing strategy and implementation, 6.0 organization and management, 7.0 financial plan, 1.0 executive summary.

Prime contractors who receive job orders from the federal government often hire other companies to help ensure the fulfillment of the contract. If the government contract is greater than $650,000, the federal government mandates the prime contractor to provide a plan for subcontracting a portion of the work to small businesses. Information Technology Solutions (‘ITS’), is an information technology subcontractor that specializes in database management and application development support. ITS strives to provide the high quality technological business solutions with a concentrated focus on the energy and defense sector. ITS, established in 2010, is located in Charlotte, North Carolina. The company currently has five full–time staff members with expansion plans to add five more within the next three years.

ITS was formed in 2010 by Sara Jayne when she was downsized from Cap Gemini. Ms. Jayne has grown the company five-fold with the addition of five new employees and anticipates need for five more within the next three years. With over 20 years experience Ms. Jayne has successfully subcontracted with 20+ local contracts and has a pipeline of 10 more.

ITS focuses its efforts in two service areas: database and application development and support. ITS strives to foster and maintain solid relationships with its clients, fine tune its services, and continue to develop innovative business solutions that will improve the way their clients do business. Due to its small size, ITS has the unique ability to act quickly and easily meets or beats its deadlines. Its main limitation is its limited staff resources. ITS plans to expand personnel over the next three years to meet achieve a balance of supply and demand.

The purpose of this plan is to create a strategy for ITS that will increase its revenues annually by 20%, and simultaneously grow assets 25%. Overall, this business plan will provide an in–depth understanding of the company, along with a plan for growth in the future.

1.1 Business Objectives

The primary objectives of ITS are:

• Provide custom solutions with outstanding customer service– which enhances its customer’s efficiency and secures ITS long relationship via contracts and recurring projects.
• Grow company in staffing to accommodate the growing need for services by offering a dynamic work environment with flexible hours, a commitment to ongoing education, and offer bonuses to commensurate with performance and earnings.
• Focus on delivering contracts. ITS is small enough to turn ‘on a dime’ compared to its larger peers burdened with ‘red tape’ requirements. ITS has a can do attitude and is happy to get the deliverables in the most efficient manner to its clients.

1.2 Mission Statement

It is ITS mission to empower prime government contractors to meet their objectives. ITS strives to foster and maintain positive relationships with each and every client (both internal and external), by providing cutting edge technology services at reasonable and competitive prices.

1.3 Guiding Principles

Be Dedicated. Every day, consistency is key. ITS is dedicated to each and every job – down to the very last detail. It is this tenacity, attention and focus to detail on each and every project that defines the success of this organization.

Be Dependable. ITS believes that a commitment to meet all its obligations punctually, honestly and honorably. ITS believes that if you are the “go to” business, you’ll never have to worry about having to generate extra leads or word-of-mouth referrals.

Give and You Shall Receive. Give the thing you want most and you’ll be amazed at what you get in return. ITS firmly believes in this philosophy and that its efforts can be multiplied for the greater good of the company, its customers and the community.

1.4 Keys to Success

ITS considers the following factors to be the primary contributors of business success:

• Diversification of product lines and customer base
• A recurring revenue base
• Management with rounded skill set in business growth and marketing
• Sound financial management

ITS strives to foster and grow empowered relationships with prime government contractors. While small in size, the ITS team of experts has collectively has over 60 years experience in computer problem solving and solutions. With its corporate office located at 1327 S Mint Street in, Charlotte, North Carolina, ITS easily targets local prime government contractors. ITS is established as a WOSB, that is a Woman Owned Small Business as classified by the Small Business Administration.

ITS seeks long term contracts with a focus on database management and application and development. Rather than casting a broad net, ITS targets two distinct government sectors: energy and healthcare. By specifically targeting these areas of interest, ITS is the industry expert and can truly not only understand its customers’ needs but can identify solutions that are just as dynamic as the technologies and industries themselves. In turn, it is ITS belief that its customers will return time and time again for additional projects and long term contracts. ITS has future plans for some diversification and in the next ten year horizon plans to diversify its markets by incorporating the defense industry as well. In addition, the company plans to ultimately become a prime government contractor and at that time will also hire a full-time RFP (Request for Proposal) writer to win the contracts.

ITS believes that because it is already established as a WOSB, this further enhances its position in the government contract market. The federal government has both prime contracting and subcontracting goals for small businesses. More specifically, 23% of federal prime contract dollars are currently awarded to small businesses, with individual prime and subcontracting goals for certain identified small business groups. Further, the federal government must award 5% of its prime and subcontract dollars to WOSBs.

2.1 Ownership

Originally formed as a sole proprietorship, ITS recently changed its status to a Chapter S Corporation. ITS is wholly owned by Sara Jayne. Sara Jayne is the President, CEO and CFO. Ms. Jayne graduated from Duke University with a degree in Sales. She is also the Project Manager for all government subcontracts. It is her proven extreme attention to detail and commitment to these contracts that gets the awards time and time again. She has ten years of experience in the technology consulting industry as a Network Engineer and ten years of experience as a Database Administrator with Cap Gemini. Ms. Jayne is a Microsoft Certified Systems Engineer. She is also 6 Sigma certified, meaning she has received extensive training in business process improvement.

2.2 Legal Form

ITS is a Chapter S Corporation formed in 2010 doing business in the State of North Carolina.

2.3 Start-Up Summary

N/A – ITS has been operational for two years.

2.4 Location and Facilities

The corporate office of ITS is located in the heart of downtown Charlotte at 1327 S Mint Street, Charlotte, North Carolina. The city has a population of over 11,555 according to the 2010 U.S. Census Report. The residential population in the immediate area is comprised of a mixture of single family and multi-family housing. The median household income is $38,895. Major employers include Bank of America, Wells Fargo, U.S. Airways, Carolinas Healthcare System, and Duke Energy.

Charlotte has a strong technology base and unlike it peers in other technology hubs, the lower cost of living and warmer climate make Charlotte the ideal location to find (and employ) talent.

The company leases 1,200 square feet on the third floor of a 34,000 square foot high rise office building. According to Charlotte’s Chamber of commerce, the area comprising of zip code of 28202 employs some of the largest employee concentrations in the greater Charlotte MSA and is comprised of 2,388 establishments and employs a total of 51,825. Of these employees, the majority or 18,688 work in the service industry while 12,717 work in Finance/Insurance/ Real estate field. 4,560 are retail employees and 3,164 are employed in manufacturing. With easy access to Interstate 77 and U S Highway 74, the location provides easy access in the greater Mecklenburg County.

3.1 Products/Services Descriptions

ITS partners with its prime contractors and assures the production of quality deliverables from each subcontract assigned, assuring the development of long term business relationships. ITS provides the following services:

Analysis of the current technical environment, Analysis of business requirements relevant to the application architecture, Architecture definition, Application software requirements analysis, Application software testing, System level integration and testing

3.2 Competitive Comparison

The zip code 28202 is home to 15 information technology companies in addition to ITS. Because ITS is not limited to its physical location and focuses its source of business on servicing government contracts, the majority of these local companies do not compete directly with ITS.

However, due to their proximity to ITS and their similar background they are mentioned here:

Vialogix Communications Inc 501 N College St Established in 1996, and operated by Robert Norris. The company has 20 employees and annual revenues of $3.9 million. With a primarily focus in building websites. Vialogix does not directly compete with ITS. Vialogix primarily builds web sites, intranets, extranets, web-enabled applications, wireless applications and databases.

Data Recovery Charlotte 401 S Tryon St # 10 With 7 offices in the Charlotte region, 18 employees and annual revenues of $3.5 million, Data Recovery competes indirectly with ITS. They are primarily computer forensic analysis and recover data that has been corrupted or intentionally deleted. They can identify how a ‘hacker’ got past the security checks and if fortunate enough, identify the individual who caused the damages.

William Ives Consulting 320 S Tryon St Ste 213 The company has 18 employees and annual revenue of $2.7 million. The company has a primary focus on legal industry; however, they also provide automation with the way the clients chose to do business. They utilize groupware, document management and fax tools network platforms such as Microsoft Windows NT and Novell Netware.

Refresh Technologies 201 W Morehead St Ste 400 The company has 8 employees and annual revenues of $1.5 million. This is a newly established company similar to ITS. The key principal, Fae Schaefer, has 10 years experience, comparable to Ms. Jayne’s. Refresh Technologies focuses more on companies utilizing her contractors to free up their employee resource pool. Her company provides comparable services, by offering services remotely or within a hosted environment, data backup & recovery, business continuity, server and storage monitoring and management, managed security, email management, application and database monitoring and managed network services. The company also reportedly saves its customers an average of 40% when compared to its peers but this information could not be verified publicly.

3.3 Product/Service Sourcing

ITS’ key to success thus far has been the creation of clear, unambiguous subcontracts. Each subcontract has a legally binding, written contract that defines the following items:

• The legal names of the parties involved in the contract will be specified.
• The responsibilities and authorities of each party to the contract,
• A clear definition of the deliverables and minimum content to be provided by the subcontractor,
• A clear definition of the services to be provided by the subcontractor,
• Any and all constraints imposed on the subcontractor by the prime contractor, such as schedule constraints, budget constraints, specific tools to be used, and
• A clear statement of requirements for quality of deliverables and services including the requirement to allow independent quality inspections of materials and processes.
• Appropriate terms and conditions which will be imposed on both the prime contractor and the subcontractor will be identified.
• The acceptance process will be clearly identified.

3.4 Inventory Management

ITS is primarily a service based company which carries no inventory.

3.5 Warehousing and Fulfillment

Ms. Jayne is the Project Manager and delegates the specific tasks to be completed. Each subcontract, although tailored for each client generally follows these standard guidelines:

Define Scope The first step in the preparation of the Project Plan is the creation of the narrative description of the project. The narrative establishes the customer’s ultimate system objectives and provides frame of reference for reviewing the balance of the plan.

Define Deliverable The next step in the process is the definition of the deliverables. The deliverables should be defined in as much detail as possible. A well defined deliverable ensures a common understanding of what is to be delivered and establishes realistic expectations. If one of the deliverables is an operational system, a complete functional specification should be included. This will explicitly define the system for both the users and for the designers. This is important since it is the basis for measuring the success of the system. It also forces the users to ensure that all of the requirements have been included. Simply put, if the Project Plan does not define it, it will not be in the end-product.

Define the Methodology Determine how the deliverables will be acquired or produced. Refine the methodology, whether it be the customer’s or ITS’, and make any modifications necessary due to specific project needs.

Establish Project Organization The next step in the preparation of the Project Plan is the creation of a Project Organization Chart. A project will not be successful unless there is a clear understanding by all parties of who the deliverer and acceptor are. The completion and circulation of the Project Organization Chart will ensure that this takes place. The chart also identifies the other key project participants, the customer, and the project team members.

3.6 Products/Services

ITS’ current focus is twofold: database management and application development.

Database Management In general, the government sectors require old broken outdated software systems to be upgraded and stagnant legacy systems to be streamlined and operating more efficiently. Operating efficiency has become vital as the government seeks to get its arms around the largest databases in the country. The U.S. government’s information systems are clogged with a variety of old and disparate sources. Legacy systems, databases, and data warehouses are ‘clogging’ the systems As these sources and data volumes multiply, over time, it becomes to critical to incorporate, regiment and apply rules of order to avoid further data ‘glut’.

By creating a comprehensive data model, ITS offers insight into organizational needs and provides the roadmap for successful integration. Ms. Jayne leads teams with specialists in business process and data analysis, system design and integration, and business intelligence to develop solutions that deliver results.

Application Development Application development, the creation of programs that perform functions for software and hardware, are in great demand for government entities. ITS can create many applications for example, that run behind-the-scenes for tracking inventory, maintaining account balances and billing clients automatically.

Once, applications focused primarily on functionality. Today, the most complex applications focus on elements such as speed, compatibility, security, scalability and customer experience. ITS strives to create the fastest and the most user-friendly applications to meet these needs.

Future Plans ITS has future plans to expand into government contracts, and expects to hire a full-time proposal writer. Additional plans include diversification into other popular government contracting sectors such as defense. Another goal is secure a recurring base, consulting, revenue to serve as a cushion against sales declines when the spending environment deteriorates. Long-term contracts provide revenue continuity: Contracts are often five to 10 years long, and are rarely broken.

The global IT consulting & other services market had total revenue of $515.6 billion in 2010, representing a compound annual growth rate (CAGR) of 3.9% for the period spanning 2006-2010. The integration & development services segment was the markets most lucrative in 2010, with total revenues of $254.2 billion, equivalent to 49.3% of the market’s overall value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.7% for the five-year period 2010-2015, which is expected to drive the market to a value of $587.8 billion by the end of 2015. (Data Monitor).

4.1 Industry Analysis

The U.S. information technology services industry includes about 100,000 companies with combined annual revenue of about $290 billion. Major companies include Computer Sciences Corporation (CSC), Unisys, and the technology consulting arms of IBM and Hewlett-Packard. The computer facilities management segment of the industry is also highly concentrated: the 50 largest companies generate about 80 percent of revenue. The rest of the industry is concentrated: the 50 largest companies account for about 50 percent of revenue.

Worldwide IT services revenue is about $800 billion. Leading exporters of computer and technology services include India, the US, Israel, and China, according to the World Trade Organization. Major companies based outside the US include Fujitsu (Japan), T-Systems International (a subsidiary of Germany’s Deutsche Telekom), and Cap Gemini (France). (First Research).

The market is fragmented with small players competing alongside large, multinational companies. Buyers range in size: larger buyers, with greater financial muscle, exert more buyer power. Brand recognition is likely to be of significant importance to customers and they therefore often look to a reputable company for services. Entry to this market is increasingly achieved through the diversification of operations by existing companies from other fields. Rivalry between market players is alleviated to an extent with larger players operating in other markets or offering their services to a range of industries. Skilled employees, as suppliers of technical knowledge and expertise, are an important input. On the other hand, some companies show some backwards integration with their own hardware and software capabilities, which reduces their reliance on external suppliers. (Data Monitor)

IBM Global Services is the leading player in the global IT consulting & other services market, generating a6.6% share of the market’s value. Hewlett-Packard Company accounts for a further 4.5% of the market. (Data Monitor)

4.1.1 Market Size

According to the U.S. General Services Administration the Top 100 Contractors Report is a list developed annually and tracks U.S. federal government procurement. The Top 100 Contractors Report for Fiscal Year 2010 lists contracts totaling $284.7 billion (2009: $294.6 billion). In the same period, small business contracts totaled $97.9 billion (2009: $96.8 billion). In Fiscal Year 2011, the top five departments by dollars obligated were the Department of Defense ($373.6 billion), Department of Energy ($25.1 billion), Health and Human Services ($19.3 billion), Department of Veteran Affairs ($17.4 billion), and NASA ($15.4 billion).

4.1.2 Industry Participants

The subcontractor market is flooded industry participants.

ITS’s primary competitors can be virtually almost business. In fact, any entity meeting the general requirements is a perspective competitor. The criterion to subcontract with the federal government is relatively simple. In order to do so, qualified candidates must 1) Obtain a small business certification from the U.S. Small Business Administration (SBA). The type of certification depends on the ownership, location or revenue of the subject business. Business certifications include HUB Zone, 8(a), small, women-owned, veteran-owned, Native American, Alaskan-owned and Native Hawaiian-owned. 2) The company must then register with the Central Contractor Registration, and complete an online training course. 3) The company must, be in business for at least two years prior to and apply through the Small Business Administration (“SBA”).

4.1.3 Main Competitors

ITS does not have local competitors, however, due to their proximity to ITS and their similar backgrounds they are mentioned here:

Vialogix Communications Inc 501 N College St Established in 1996, and operated by Robert Norris. The company has 20 employees and annual revenues of $3.9 million. With a primarily focus in building websites Vialogix does not directly compete with ITS. Vialogix primarily builds web sites, intranets, extranets, Web-enabled applications, wireless applications and databases.

4.1.4 Market Segments

The US Government is as diverse as the U.S. secondly itself. However, with a few exceptions, the majority of the U.S. government contracts are awarded to the following industries: aerospace, telecom, automotive, defense, insurance and social service, energy and life sciences, banking/finance, rail/naval, distribution/sales assistance, aeronautics, space, and utilities.

4.2 Market Tests

While working as an independent consultant, Ms. Jayne focused her company’s efforts on two highly sought after government contract areas: energy and healthcare. She began contracting for some of Charlotte’s lager energy provides, providing them with IT services. She currently has 30 customers including: Duke Energy, Toshiba America Nuclear Energy, Westinghouse Electric, Power Group, and The Shaw Group.

To date ITS has been awarded two government subcontracts: 1) with the Betchel Group, and 2) with General Electric. Both projects are currently underway with all milestones to date meeting/exceeding expectations. Both prime contractors had a mandatory requirement to subcontract a portion of their work. The fact that ITS is a WOSB, combined with its proven track record, and ability to move quickly on short notice, made the award process that much more appealing to the conglomerates.

4.3 Target Market Segment Strategy

ITS’ strategy is twofold: work directly with prime government contractors (such as Duke Energy) and obtain contracts indirectly (word of mouth) such as the their experience with Betchel.

4.3.1 Market Needs

In general, the government sectors require old broken outdated software systems to be upgraded and stagnant legacy systems to be streamlined and operating more efficiently. Operating efficiency has become vital as the government seeks to get its arms around the largest databases in the country. The U.S. government’s information systems are clogged with a variety of old and disparate sources. Legacy systems, databases, and data warehouses are ‘clogging’ the systems As these sources and data volumes multiply, over time, it becomes to critical to incorporate, regiment and apply rules of order to avoid further data ‘glut’.

4.3.2 Market Trends

Many areas of high technology are highly competitive and are subject to rapid, unanticipated changes. The dynamic business climate poses significant challenges requiring companies to adapt rapidly to evolving conditions. In addition, during sharp industry declines such as 2000-2001 or 2008-2009, cash balances can be depleted very rapidly. (Standard and Poor’s)

While the timing of technological change and obsolescence is difficult to predict, rapidly changing technologies with marked potential for materially eroding companies’ business and financial profiles are one of the few constants in the high technology sector. Cyclicality and technological change can create sharp declines and significant shifts in competitive dynamics, customer requirements, and buying patterns, which can rapidly reshape industry subsectors. The ongoing transformation of the data storage and semiconductor industry segments is an example of these market dynamics at work. (Standard and Poor’s)

High technology companies’ earnings and cash flows are subject to cyclicality created by the business and/or consumer cycles. In many developed countries in recent years, volatility in business/corporate sector demand has tended to be markedly greater than cyclicality in the consumer economy. Historical recessions have largely been business-driven, rather than consumer-led, but in the current recession, demand is down sharply across both consumer and business markets. (Standard and Poor’s)

Consolidation remains a long-term trend in many high technology subsectors as growth rates have slowed. Managements of larger companies view their subsidiaries as components of a portfolio that should be actively managed, a strategy generating ongoing acquisition and divestment activity. Customers want integrated solutions; in response, high technology companies are broadening their offerings through acquisitions. (Standard and Poor’s)

4.3.3 Market Growth

While prime contractors saw a decline in growth when comparing fiscal year 2010 to fiscal year 2009, sub-prime contractors actually grew over the same time period. Sub-prime contracts were reported to be $96.8 billion in year 2009 compared to $97.9 billion in 2010 representing a 1.12% increase.

Based on the growth in this market and the current government mandates to award to small businesses, it is ITS’ contention that annual grown of 20% in revenues and 25% in assets does not appear unreasonable. Further this aligns ITS with its peers of similar size which enjoy the same growth. ITS will achieve this growth with the addition of more staffing. With the addition of billable hours and the built in cushion ITS has in its billable hours, the company feels these are sound achievable financial goals. (For more information regarding this ‘cushion’ please refer to the financial analysis portion of this business plan).

4.4 Positioning

ITS has set itself apart from its competitors by 1) its narrow and targeted market focus (energy and defense) and by completely understanding industry trends. ITS is truly the market expert. 2) ITS’ extreme attention to detail in its subcontracts and project planning sets them apart from their peers. 3) Because of its small size, ITS has the ability to not only meet /exceed deadlines, but they can adapt quickly as well and on short notice. 4) All these factors lead to cost savings which in turn are passed on to their clients.

In order to grow revenues 20% annually and to keep pace with peers, ITS must sell $152,000 in new revenue or put another way, bill an additional 1,344 hours annually. ITS has built in cushions into its pricing model, which easily allows for just such an increase.

For example in proforma Year One, ITS estimates that it will bill 2,794 hours in billable revenue. (2,794 hours * $113.07 hourly rate =$315,917 in revenues). However, with a staff of 5 employees working 40 hours a week, the company has the potential for 9,600 hours annually. The additional burden of 1,344 hours could easily be absorbed by current staff. ITS, however, chose to keep a conservative estimate by basing the projected income and expenses similar to its peers.

5.1 SWOT Analysis

5.1.1 strengths.

• By utilizing its lean experienced staff, focusing on specific target markets and providing detailed project outlines, ITS provides high end consulting services at a reasonable price.
• ITS is flexible, able to ‘turn on a dime’ and meet / exceed deadlines and easily adapts to changes as needed.
• ITS pursues a minimum of 20% of its revenues in the form of contracts – which provide income stability.

5.1.2 Weaknesses

• Product obsolescence and technology changes.
• Rapid life cycle; IT industry quickly can be subject to obsolescence with the advent of new technology.
• Substitution – many of the services ITS provides can be mirrored by competitors – even worse, larger competitors although have longer turnaround times, may be able to offer lower prices due to larger economies of scale.
• Customer base is limited with a potential for concentration risk should one sector become less than profitable.

5.1.3 Opportunities

• ITS has already attained WOSB status, making them attractive to partner with in prime government contracts.
• New technologies in cutting edge in energy and healthcare industry make the Charlotte market a robust one for subcontracting.

5.1.4 Threats

• Cash flow will be critical if payment from the contractor is delayed for any lengthy time period.
• National competitors might be able to reduce their prices due to efficient in economies of scale.

5.2 Strategy Pyramid

ITS plans on achieving a minimum of 20% of its revenues in the form of recurring consulting base, to cushion against revenue decline when the spending environment deteriorates. Long-term outsourcing contracts provide revenue continuity: Contracts are often five to ten years long, and are rarely broken. ITS plans on achieving this goal by providing top notch service to its customer base with detailed follow-ups and reviews. By keeping its narrow focus on target markets and needs, ITS can quickly alert clients of improvements and new technologies. With its commitment to training and education, ITS employees can readily adapt and perform routine upgrades. These services are often built into the contracts up front, automatically generating residual income.

5.3 Unique Selling Proposition (USP)

ITS has set itself apart from its competitors by 1) its narrow and target market focus (energy and defense). By completely understanding industry trends and trends ITS is truly the market expert. 2) ITS’ extreme attention to detail in its subcontracts and project planning sets them apart from their peers. 3) Because of its small size, ITS has the ability to not only meet /exceed deadlines, but they can adapt quickly and on short notice. 4) All these factors lead to cost savings which in turn are passed on to their clients in the form of cost savings.

5.4 Competitive Edge

That fact that ITS works with both local government contractors, has a narrow, specific targeted customer base, combined with WOSB status and a proven track record, gives ITS an edge over the competition.

5.5 Marketing Strategy and Positioning

ITS is uniquely poised as government subcontractor by its narrow focus on the energy and healthcare sectors. This focus allows for detailed models, specifically targeted to these industries. ITS utilized a focus strategy – and positions itself to cater to the needs of a narrowly defined market.

5.5.1 Positioning Statement

ITS’ goal is to be the premier subcontractor in the energy and healthcare sector. By, crafting detailed project plans, utilizing detailed models, defining the deliverables and anticipating the steps needed to complete each a and every project they undertake. ITS with its talented pool of in house talent perform all the work themselves, keeping overhead low and passing the savings onto their clients. ITS is not mired in red tape and can readily meets its milestones and deadlines and adapts easily to change. ITS motto is ‘We don’t just get the job done the first time, we get it done right”.

5.5.2 Pricing Strategy

ITS charges a flat rate of $113 per hour

• One hour on–site minimum
• The flat rate does not increase because of emergencies

5.5.3 Promotion and Advertising Strategy

ITS relies primarily on direct marketing by word of mouth. Ms. Jayne is a member of the Charlotte Chamber of Commerce and has promoted the business by word of mouth and volunteering for many of the chamber events and sponsoring happy hours and corporate luncheons.

The company has a website which is another marketing tool.

ITS plans to join IT Energy Trade Groups and IT Healthcare Trade Associations.

5.5.4 Website

The ITS website identifies who the company is, a brief history, and services and products provided. The website has a “Who We Are” section featuring pictures and brief biographies of the ITS staff. The site has links to related sites such as SUB-net a database that lists all opportunities from government contractors and FedBizOpps.gov, the searchable federal opportunities database.

The website features case studies with actual clients with needs and benefit analysis.

5.5.5 Marketing Programs

ITS, with its limited budget, will rely heavily on face to face time with contacts. Through her extensive contacts while made working in the industry, Ms. Jayne plans to continue meeting directly with prospects. The IT community is close-knit and word travels quickly.

5.6 Sales Strategy

It is impractical to have a try before you buy in the IT field; however, ITS likes to present its prospects with the next best thing, an initial free consultation and evaluation. The potential client is given a detailed questionnaire to complete and forwarded to ITS for review. The questionnaire is invaluable and helps ITS determine options best suited for the client. ITS thoroughly believes that by truly understanding their customers, they can create custom Project Plans and win subcontracts.

5.6.1 Sales Forecast

ITS expects to grow revenues 20% annually over the next three years. In order to grow revenues 20% annually and to keep pace with peers, ITS must sell $152,000 in new revenue or put another way, bill an additional 1,344 hours annually. ITS has built in cushions into its pricing model, which easily allows for just such an increase.

For example in proforma Year One, ITS estimates that it will bill 2,794 hours in billable revenue. (2,794 hours * $113.07 hourly rate =$315,917 in revenues). However, with a staff of 5 employees working 40 hours a week, the company has the potential for 9,600 hours annually (or $1,085,472). The additional burden of 1,344 hours could easily be absorbed by current staff. This business plan however employs a more conservative approach with sales and assets reflective of industry peers.

Table 5.6.1 Annual Sales Forecast

5.6.2 Sales Programs

ITS awards it employees with a lucrative incentive package to include bonus and profit sharing. For the initial three years employees will receive small bonuses, but over time, bonuses and profit sharing will commensurate with annual revenues.

ITS is a Chapter S-Corporation doing business in the State of North Carolina. The company is wholly owned by Sara Jayne.

5.8 Milestones

The following milestones will assist ITS in gauging its target metrics.

Table 5.8 Milestones

5.9 Exit Strategy

If revenues fall below break-even for four consecutive periods, the company will not have sufficient cash flow or working capital to meet operating needs. At such time, the company would require liquidation and disposal of assets, primarily the computers and hardware. Secured creditors would be paid first, then unsecured with the remainder to the investor(s).

6.1 Organizational Structure

ITS is an S-Corporation wholly owned by Sara Jayne. She currently has five employees on her staff – including one database administrator and four programmers.

6.2 Management Team

ITS is a Chapter S Corporation wholly owned by Sara Jayne. Sara Jayne is the president, CEO and CFO of ITS. Sara graduated from Duke University with a degree in Sales. She is also the Project Manager for all government subcontracts. It is her proven extreme attention to detail and commitment to these contracts that gets the awards time and time again. She has ten years experience in the technology consulting industry as a Network Engineer and ten years as a Database Administrator with Cap Gemini. Ms. Jayne is a Microsoft Certified Systems Engineer. She is also 6 Sigma certified, meaning she has received extensive training in business process improvement.

ITS will utilize a local accounting firm and outsource its payroll and taxes.

6.3 Management Team Gaps

6.4 personnel plan.

The following table demonstrates the budget requirements for ITS staff over the next three five years.

Table 6.4 Personnel Plan

6.5 Board of Directors

The financial plan will cover the following:

• Required Cost of Start-Up
• Profit and Loss
• Balance Sheet
• Financial Ratios

7.1 Important Assumptions

MM = 1,000,000

The estimated average billable rate: $113.07 per hour; this analysis employs a conservative billing rate; this model can easily be adapted to demonstrate higher hourly billing providing additional ‘cushion’ to the financial analysis.

INCOME STATEMENT ASSUMPTIONS

The company currently employs one database administrator and four programmers.

Company plans to hire two additional programmers in Year Two

In Year Three, the company plans to hire three additional programmers

Estimate the company will grow revenues 20% annually and assets by 25% (coincides with industry peers).

The company assumes to generate additional 20% in revenue streams from residuals created by long term contracts

Advertising expense is estimated to be .93% of revenues

Accounting and Legal is estimated to be 4.76% of revenues. Primarily this will be attributed to a tax service for the purposes of payroll and income taxes.

Legal expenses will be minimal, but in the event the company creates a patent, then this expense could potentially increase.

Professional Fees represent s.57% of revenue and compares favorably with industry peers

Annual rent is $9,600 or 2.43% of revenue in Year One. The company occupies 1,200 square feet of a 34,000 square foot building located at the desirable Mint Street location in heart of downtown, Charlotte, North Carolina.

Wages represent the largest component of annual expenses and are estimated to be $296M in Year One, $409M in Year Two, and $580M in Year Three. Like its peers, the IT Company’s largest expense is in the form of wages, salaries and bonuses.

BALANCE SHEET ASSUMPTIONS

The company was formed two years ago as a sole proprietorship and recently reorganized as an S-Corporation. Rather than owner’s contribution, the owner advanced approximately $33M in the form of loan to be repaid. The loan is fully amortizing based on a five year term.

7.2 Start-Up Costs

Although not technically a ‘start-up’, initial expenses include working capital and computer hardware and software.

Table 7.2 Start-Up Costs

7.3 Source and Use of Funds

The source of funds for the initial funding were in the form of owner contribution and loan to owner the loan is fully amortizing over at 6.25% over a five year term.

7.4 Break-Even Analysis

As a service provider, ITS has no cost of goods sold or overhead. Rather than try to consider employees wages as overhead, the break even chart below demonstrates the point where fixed costs less variable costs (in terms of billable hours ) equals zero.

Table 7.4 Break-Even Analysis

7.5 Projections

7.5.1 projected profit and loss.

Company’s gross profit appears in line when compared with peers. As a service provider they have little or no overhead. In addition to billable hours, the IT Company needs to strive for residual income in the form of long term contracts. This repeat business will act as a cushion in the event of an economic downturn.

Over the three year estimate, the company’s total expenses appear in line with industry peers based on same sized revenues and assets. Total expenses approximate 93% of total revenues.

Salaries, wages and bonuses represent the largest component of expenses. To retain talent and get the higher billable hours, comes with a price. Offsetting this however, is barring any unforeseen expenses; this industry enjoys high profit margins, typically above 6%.

Table 7.5.1 Pro Forma Profit and Loss

7.5.2 Projected Cash Flow

The statement of cash flow shows the incoming and outgoing cash of the business.

Table 7.5.2 Pro Forma Cash Flow

7.5.3 Projected Balance Sheet

Liquidity is key in this industry. Cash and trade receivables represent approximately 53% of total assets, resulting in positive working capital and cash flow. Right now, this company is enjoying the benefits of positive cash flow, but as has been seen in the past, this industry is economically sensitive and the similar downturns such as those of as 2000-2001 or 2008-2009 could quickly deplete cash reserves. IT companies must also maintain liquidity to keep current with technology. As new technology advances, the IT Company must be prepared to keep pace and make smart purchases to partner with this technology.

Table 7.5.3 Pro Forma Balance Sheet

7.6 Business Ratios

Because of the high level of business risk, many IT companies’ financial risk and leverage profiles tend to be more conservative, characterized by relatively high levels of equity capital, modest debt, and often substantial cash reserves accumulated because they need cash available to protect against cyclicality and unexpected downturns in earnings. (Standard and Poor’s)ITS’ business ratios also demonstrates these attributes.

Table 7.6 Ratio Analysis

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How to Write a Cloud Computing Business Plan [Sample Template]

Are you about starting a cloud computing business? If YES, here is a complete sample cloud computing business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a cloud computing business. We also took it further by analyzing and drafting a sample cloud computing marketing plan template backed up by actionable guerrilla marketing ideas for cloud computing businesses. So let’s proceed to the business planning section.

Why Start a Cloud Computing Business?

Cloud computing is an emerging paradigm computing concept that enables both information technology infrastructure and software to be delivered directly over the internet as a service. This is an arrangement that enables companies to expand their network capacity, and run applications directly on a vendor’s network.

It offers a host of advantages with the most primary being radically lower IT costs. The lower budgetary requirements and commitments allow even smaller companies to piece together an IT project without spending on purchasing legacy server, and storage systems.

In the same vein, the burden of developing and maintaining the technological expertise required in running the network is transferred to the service provider. The pay-per-use basis of cloud computing helps transform the way IT departments create and deploy customized applications during these difficult times.

By offering a more cost-effective, less risky, and fundamentally faster alternative to on-site application developments, cloud computing is poised to transform the economics of information technology in the next few years.

The internet is a foundation for cloud computing, and the term “cloud” is used as a metaphor for the Internet. Thanks to new and improved networks, the Internet is fast becoming a vehicle for delivering computational requirements. The ubiquity of the Internet and the widespread availability of high-speed broadband access are the primary factors driving the movement towards the cloud.

If you have decided to start your own cloud computing business, then you should ensure that you carry out thorough feasibility studies and market survey. Business plan is yet another very important business document that you should not take for granted when launching your own business.

Below is a sample cloud computing business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Cloud Computing Business Plan Template

1. industry overview.

The global cloud storage market is expected to grow from USD 18.87 billion in 2015 to USD 65.41 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 28.2 percent. Cloud storage solution and services are currently being offered by numerous vendors such as IBM, Microsoft, Google, Amazon Web Services, VMware, Box, Fujitsu, Rackspace, AT&T, and HP.

These vendors are selling variations of cloud storage solutions and managed services. However, there is a price war between these cloud storage service providers globally as they keep reducing their prices and increasing their volume of storage.

Storage solutions are evolving as several companies have entered into the market and are offering advanced solutions to store data at minimum cost. The first digital storage device was introduced in 1890 when Herman Hollerith, founder of Tabulating Machine Company, used punch cards to read and record data. Thus, the storage market has evolved and in the present scenario, the user can save up to 1 GB of data free of cost on cloud storage and access it from any remote location.

Factors such as rising need for big data storage and increasing adoption of cloud storage gateways are driving the demand for cloud storage solutions globally. The cloud storage market has been segmented on the basis of types into solutions and services; on the basis of solutions into primary storage solution, backup storage solution, cloud storage gateway solution, and data movement and access solution; on the basis of services into consulting services, system and networking integration, and support training and education.

Cloud storage provides users with immediate access to a broad range of resources and applications hosted in the infrastructure of another organization via a web service interface. Cloud storage can be used for copying virtual machine images from the cloud to on-premises locations or to import a virtual machine image from an on-premises location to the cloud image library.

In addition, cloud storage can be used to move virtual machine images between user accounts or between data centers. Cloud storage can be used as natural disaster proof backup, as normally there are 2 or 3 different backup servers located in different places around the globe.

Users access cloud computing using networked client devices such as desktop computers, laptops, tablets and smartphones and any Ethernet enabled device such as Home Automation Gadgets. Some of these devices—cloud clients—rely on cloud computing for all or a majority of their applications.

Some of the factors that encourage entrepreneurs to start their own cloud computing business could be the growing recognition of economic and operational benefits and the efficiency of cloud-computing. As companies ease out gradually from economic uncertainties and financial shackles, widespread adoption of cloud services is in the offing.

The pragmatic and successful adoption of this technology concept by early adopters will pave the way for mass enterprise adoption of cloud services in the upcoming years.

The transition of enterprises from virtual machines to the cloud will additionally extend the impetus required for strong growth. Poised to score the maximum gains will be end-to end cloud-computing solutions that offer complete functionalities ranging from integration of internal and external clouds, automation of business critical tasks, and streamlining of business processes and workflow, among others.

Over and above, starting a cloud computing company requires professionalism and a good grasp of the ICT industry. Besides, you would need to get the required certifications and license and also meet the standard security expected for players in the industry in the united states; the industry is heavily regulated to guard against fraud and criminality.

2. Executive Summary

Silver Lining® Cloud Computing, Inc. is a licensed cloud computing company that will be located in San Diego – California. We have been able to secure a long term lease agreement for a standard office facility in an ideal location that is most suitable for the kind of business we want to run.

Our services will cover computer computing services areas such as; web based cloud computing, infrastructure as a Service (IaaS), software as a service (SaaS), platform as a service (PaaS), utility services, managed services, service commerce, hardware as a service, and workplace as a service et al.

We are aware that businesses these days require diverse and sophisticated approaches. This is why we will position our cloud computing company to offer a wide range of services as requested by our clients.

Silver Lining® Cloud Computing, Inc. is a client-focused cloud computing company that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients. We will offer a complete range of cloud computing services to our clients and we will ensure that we work hard to provide the required services needed by our clients.

At Silver Lining® Cloud Computing, Inc. our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Silver Lining® Cloud Computing, Inc. is founded by Clarkson Duke and his friend and business partner David Shannon. The organization will be managed by both of them since they have combined experience and qualifications in the ICT services industry.

Clarkson and David graduated from MIT with degrees in Computer Technology and Business Management. They are Cloud Certified Professional, IBM Certified Cloud Solution Architect v1 and v3, Red Hat Certificate of Expertise in Infrastructure-as-a-Service.

3. Our Products and Services

Silver Lining® Cloud Computing, Inc. is going to offer varieties of services within the cloud computing line of business in the United States of America. Our intention of starting our cloud computing company is to make profits from the industry and we will do all that is permitted by the law in the United States of America to achieve our aim and ambition.

Our business offerings are listed below;

• Web Based Cloud Computing
• Infrastructure as a Service (IaaS)
• Software as a Service (SaaS)
• Platform as a Service (PaaS)
• Utility Services
• Managed Services
• Service Commerce
• Hardware as a Service
• Workplace as a Service

4. Our Mission and Vision Statement

• Our vision is to build a world class cloud computing company that can favorably compete with leaders in the ICT services industry.
• Our mission is to provide a professional and trusted cloud computing platform and services that will assist businesses and non – profit organizations in operating sustainably. We will provide trusted and reliable cloud computing business solutions in combination with our own business backgrounds, and deliver valuable services in a timely and cost-effective way.

Our Business Structure

Silver Lining® Cloud Computing, Inc. is in business to become one of the leading cloud computing companies in the whole of San Diego – California and we are aware that it will take the right facility, management and organizational structure to achieve our goal.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

Our business will not be built only for the purpose of giving our clients value for their money, but also we will ensure that we make our work environment highly conducive for all our employees. We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals et al.

In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

• Chief Executive Officer / Lead Consultant

Cloud Computing Specialist

• Admin and Human Resources Manager
• Accountant / Cashier
• Marketing and Sales Officer
• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s usefulness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
• Builds, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Answerable for handling core services such as web based cloud computing, infrastructure as a Service (IaaS), software as a service (SaaS), platform as a service (PaaS), utility services, managed services, service commerce, hardware as a service, and workplace as a service et al.
• Handles any other services as assigned by the chief executive officer

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Marketing and Sales Officer (2)

• Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
• Recognizes development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the organization in strategic meetings
• Helps to increase sales and growth for the organization.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for the organization
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization.

Client Service Executive

• Welcomes clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s services
• Manages administrative duties such as membership registrations and other related tasks assigned by the management in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Distributes mails in the organization
• Handles any other duties as assigned the line manager

6. SWOT Analysis

Silver Lining® Cloud Computing, Inc. is in business to provide cloud computing services to businesses within and outside the United States and at the same time to make profits. We are aware that there are competitions in the cloud computing line of business which is why we took out time to conduct an effective SWOT Analysis before investing our hard earned money into the business.

We know that if we get things right before starting our business, we will not have to struggle before attracting loyal clients and building our clientele base to a level where we can easily breakeven. We hired the services a Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Silver Lining® Cloud Computing, Inc.;

Our core strength lies in the power of our workforce. We have a team of creative, result driven and highly proficient cloud computing experts, a team with excellent qualifications and experience in various niche areas in the cloud computing and other related industry. Aside from the synergy that exists in our carefully selected workforce, our services will be measurable, result driven and guided by international best practices in the industry.

As a new cloud computing company in San Diego – California, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive ICT services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business especially via main stream media.

• Opportunities:

The opportunities available to cloud computing companies are massive considering the number of corporate organizations that cannot successfully run their businesses without the professional assistance of cloud computing companies. As a standard cloud computing company, we are ready to take advantage of any opportunity that is available in the industry.

Some of the threats that we are likely going to face as a cloud computing company operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing/spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

Quite a number of distinct trends have emerged in the ICT services industry which is why cloud computing companies are positioning their organizations to survive the peaks and troughs of an ailing economy. As a matter of fact, most of these trends aid cloud computing organizations to become more creative, competitive, efficient, and productive in a global market. Some other trends in the ICT services industry could be attributed to changing demographics, attitudes and work styles.

The services or applications organizations are moving to the cloud are largely dependent on company size and industry. For instance, storage is the primary service for 40 percent of small businesses and 35 percent of mid-sized businesses, whereas large businesses and the federal government are first and foremost going to the cloud for conferencing and collaboration applications (40 percent and 39 percent, respectively). Organizations are also turning to the cloud for messaging, office and productivity suites, business process apps and computer power.

As the cost of cloud computing services continues to increase and as corporate spending falls, new cloud computing delivery methods will continue to emerge and gain momentum going forward. In addition, the market for cloud computing has shifted from a sellers’ market to a buyers’ market.

Lastly, it is now becoming trendy in the ICT services industry for smaller cloud computing companies to merge with bigger companies and for bigger cloud computing companies to acquire smaller companies; mergers and acquisitions. Many cloud computing companies all over the United States are coming to the conclusion that the bigger the better for them.

8. Our Target Market

Although Silver Lining® Cloud Computing, Inc. will initially serve small to medium sized businesses, from new ventures to well established businesses, but that does not in any way stop us from growing to compete with the leading cloud computing companies in the United States and on the global stage. We hope to someday merge with or acquire other smaller cloud computing companies and expand our cloud computing services beyond the shores of the United States of America.

As a full service business, Silver Lining® Cloud Computing, Inc. has a variety of practice areas to help startups grow. While we work with a variety of organizations and industries, we will also specialize in working with startups, real estate investors, and contractors, manufacturers and distributors, banks, lending and financial institutions.

We are coming into the industry with a business concept that will enable us work with the highly and lowly placed people and companies in the country. In other words, our target market is the whole of the United States of America and subsequently other parts of the world.

Below is a list of the people and organizations that we have specifically design our cloud computing services for;

• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Retail Companies
• Manufacturers and Distributors
• Real Estate Owners, Developers, and Contractors
• Research and Development Companies
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Sport Organizations
• Religious Organizations
• Political Parties
• Television Stations
• Printing Press (Publishing Houses) and Authors
• Branding and Advertising agencies
• Entrepreneurs and Startups

Our Competitive Advantage

Surviving in the business world as a cloud computing business requires more than your expertise, knowing how to properly manage your business but also how to network with key people that can decide who will get a contract or business deal.

We are quite aware that to be highly competitive in the cloud computing line of business means that you are not only expected to deliver excellent services, but you must be result driven and able to meet set targets. No one would want to continue to hire your services if they can’t get tangible results.

Our competitive advantage lies in the power of our workforce. We have a team of creative, result driven and highly proficient cloud computing experts, a team with excellent qualifications and experience in various niche areas in the ICT Services industry and other related industry. Aside from the synergy that exists in our carefully selected cloud computing experts, our services will be measurable, result driven and guided by international best practices.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Silver Lining® Cloud Computing, Inc. is established with the aim of maximizing profits in the Silver Lining® Cloud Computing, Inc. and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis.

Silver Lining® Cloud Computing, Inc. will generate income by offering the following cloud computing services to organizations;

10. Sales Forecast

One thing is certain, there would always be corporate organizations, government agencies, non – profits and individuals who would need the services of cloud computing companies to help them improve their business system and processes.

We are well positioned to take on the available market in the cloud computing line of business and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our cloud computing company to enviable heights.

We have been able to critically examine the cloud computing market space, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in San Diego – California.

Below are the sales projections for Silver Lining® Cloud Computing, Inc., it is based on the location of our business and of course the wide range of our cloud computing services and target market;

• First Fiscal Year: $240,000
• Second Fiscal Year: $500,000
• Third Fiscal Year: $750,000

N.B : This projection was done based on what is obtainable in the computer cum ICT services industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same cloud computing services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

There are stiff competitions amongst cloud computing companies in the United States of America, hence we have been able to hire some of the best business marketers to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard cloud computing business that will leverage on word of mouth advertisement from satisfied clients.

Our goal is to grow our cloud computing company to become one of the top 20 cloud computing companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States but in the world as well.

Silver Lining® Cloud Computing, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to organizations and key stakeholders in San Diego – California and other parts of the United States
• Promptness in bidding for cloud computing contracts from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV and radio stations
• List our business on yellow pages’ ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different categories of clients in order to work with their budgets and still deliver quality cloud computing services to them
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our cloud computing company.

Below are the platforms we intend to leverage on to promote and advertise Silver Lining® Cloud Computing, Inc.;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
• Install our billboards in strategic locations all around San Diego – California
• Distribute our fliers and handbills in target areas
• List our cloud computing company in local directories/yellow pages
• Advertise our services in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo

12. Our Pricing Strategy

Hourly billing for cloud computing services is a long – time tradition in the industry. However, for some types of cloud computing services, flat fees make more sense because they allow clients to better predict consultancy costs. As a result of this, Silver Lining® Cloud Computing, Inc. will charge our clients a flat fee for many basic services.

At Silver Lining® Cloud Computing, Inc. we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises.  

• Payment Options

The payment policy adopted by Silver Lining® Cloud Computing, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Silver Lining® Cloud Computing, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

If you are looking towards starting a cloud computing company, then you should be ready to raise enough capital to cover some of the basic expenditure that you are going to incur. You would need money to secure a standard facility, to acquire relevant storage hardware and software and you would need money to pay your workforce and bills for a while until the revenue you generate from the business becomes enough to pay them.

The items listed below are the basics we would need when starting our cloud computing company in the United States;

• The total fee for registering the Business in the United States – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses for the grand opening of Silver Lining® Cloud Computing, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Cost for computer software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, and QuickBooks Pro et al) – $7,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
• Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $105,600.
• Cost for facility remodeling – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits – ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $500,000
• The cost for the purchase of furniture and gadgets (Internet server, Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
• The cost of launching a website and acquiring the needed hardware and software storage facility – $50,000
• Miscellaneous – $10,000

We would need an estimate of three hundred thousand dollars ( $300,000 ) to successfully set up our cloud computing in San Diego – California.

Generating Startup Capital for Silver Lining® Cloud Computing, Inc.

Silver Lining® Cloud Computing, Inc. is going to start as a partnership business that will be owned by Clarkson Duke and his friend and business partner David Shannon. They will be the sole financiers of the firm, but may likely welcome partners later which is why they have decided to restrict the sourcing of his startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Silver Lining® Cloud Computing, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our cloud computing services and other related ICT advisory and consulting services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Silver Lining® Cloud Computing, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance and software apps for the Business: Completed
• Securing and renovating a standard office facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed hardware and software storage facility, internet server, computers / laptops, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry: In Progress

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The White House 1600 Pennsylvania Ave NW Washington, DC 20500

FACT SHEET: President   Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade   Practices

President Biden’s economic plan is supporting investments and creating good jobs in key sectors that are vital for America’s economic future and national security. China’s unfair trade practices concerning technology transfer, intellectual property, and innovation are threatening American businesses and workers. China is also flooding global markets with artificially low-priced exports. In response to China’s unfair trade practices and to counteract the resulting harms, today, President Biden is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China to protect American workers and businesses.   The Biden-Harris Administration’s Investing in America agenda has already catalyzed more than $860 billion in business investments through smart, public incentives in industries of the future like electric vehicles (EVs), clean energy, and semiconductors. With support from the Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act, these investments are creating new American jobs in manufacturing and clean energy and helping communities that have been left behind make a comeback.   As President Biden says, American workers and businesses can outcompete anyone—as long as they have fair competition. But for too long, China’s government has used unfair, non-market practices. China’s forced technology transfers and intellectual property theft have contributed to its control of 70, 80, and even 90 percent of global production for the critical inputs necessary for our technologies, infrastructure, energy, and health care—creating unacceptable risks to America’s supply chains and economic security. Furthermore, these same non-market policies and practices contribute to China’s growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities.   Today’s actions to counter China’s unfair trade practices are carefully targeted at strategic sectors—the same sectors where the United States is making historic investments under President Biden to create and sustain good-paying jobs—unlike recent proposals by Congressional Republicans that would threaten jobs and raise costs across the board. The previous administration’s trade deal with China  failed  to increase American exports or boost American manufacturing as it had promised. Under President Biden’s Investing in America agenda, nearly 800,000 manufacturing jobs have been created and new factory construction has doubled after both fell under the previous administration, and the trade deficit with China is the lowest in a decade—lower than any year under the last administration.   We will continue to work with our partners around the world to strengthen cooperation to address shared concerns about China’s unfair practices—rather than undermining our alliances or applying indiscriminate 10 percent tariffs that raise prices on all imports from all countries, regardless whether they are engaged in unfair trade. The Biden-Harris Administration recognizes the benefits for our workers and businesses from strong alliances and a rules-based international trade system based on fair competition.   Following an in-depth review by the United States Trade Representative, President Biden is taking action to protect American workers and American companies from China’s unfair trade practices. To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.   Steel and Aluminum   The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5% to 25% in 2024.   Steel is a vital sector for the American economy, and American companies are leading the future of clean steel. Recently, the Biden-Harris Administration announced $6 billion for 33 clean manufacturing projects including for steel and aluminum, including the first new primary aluminum smelter in four decades, made possible by the Bipartisan Infrastructure Law and the Inflation Reduction Act. These investments will make the United States one of the first nations in the world to convert clean hydrogen into clean steel, bolstering the U.S. steel industry’s competitiveness as the world’s cleanest major steel producer.   American workers continue to face unfair competition from China’s non-market overcapacity in steel and aluminum, which are among the world’s most carbon intensive. China’s policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions. Today’s actions will shield the U.S. steel and aluminum industries from China’s unfair trade practices.   Semiconductors   The tariff rate on semiconductors will increase from 25% to 50% by 2025.   China’s policies in the legacy semiconductor sector have led to growing market share and rapid capacity expansion that risks driving out investment by market-driven firms. Over the next three to five years, China is expected to account for almost half of all new capacity coming online to manufacture certain legacy semiconductor wafers. During the pandemic, disruptions to the supply chain, including legacy chips, led to price spikes in a wide variety of products, including automobiles, consumer appliances, and medical devices, underscoring the risks of overreliance on a few markets.   Through the CHIPS and Science Act, President Biden is making a nearly $53 billion investment in American semiconductor manufacturing capacity, research, innovation, and workforce. This will help counteract decades of disinvestment and offshoring that has reduced the United States’ capacity to manufacture semiconductors domestically. The CHIPS and Science Act includes $39 billion in direct incentives to build, modernize, and expand semiconductor manufacturing fabrication facilities as well as a 25% investment tax credit for semiconductor companies. Raising the tariff rate on semiconductors is an important initial step to promote the sustainability of these investments.   Electric Vehicles (EVs)   The tariff rate on electric vehicles under Section 301 will increase from 25% to 100% in 2024.   With extensive subsidies and non-market practices leading to substantial risks of overcapacity, China’s exports of EVs grew by 70% from 2022 to 2023—jeopardizing productive investments elsewhere. A 100% tariff rate on EVs will protect American manufacturers from China’s unfair trade practices.   This action advances President Biden’s vision of ensuring the future of the auto industry will be made in America by American workers. As part of the President’s Investing in America agenda, the Administration is incentivizing the development of a robust EV market through business tax credits for manufacturing of batteries and production of critical minerals, consumer tax credits for EV adoption, smart standards, federal investments in EV charging infrastructure, and grants to supply EV and battery manufacturing. The increase in the tariff rate on electric vehicles will protect these investments and jobs from unfairly priced Chinese imports.   Batteries, Battery Components and Parts, and Critical Minerals   The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024.   The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.   Despite rapid and recent progress in U.S. onshoring, China currently controls over 80 percent of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining, processing, and refining. Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk. In order to improve U.S. and global resiliency in these supply chains, President Biden has invested across the U.S. battery supply chain to build a sufficient domestic industrial base. Through the Bipartisan Infrastructure Law, the Defense Production Act, and the Inflation Reduction Act, the Biden-Harris Administration has invested nearly $20 billion in grants and loans to expand domestic production capacity of advanced batteries and battery materials. The Inflation Reduction Act also contains manufacturing tax credits to incentivize investment in battery and battery material production in the United States. The President has also established the American Battery Materials Initiative, which will mobilize an all-of-government approach to secure a dependable, robust supply chain for batteries and their inputs.   Solar Cells   The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024.   The tariff increase will protect against China’s policy-driven overcapacity that depresses prices and inhibits the development of solar capacity outside of China. China has used unfair practices to dominate upwards of 80 to 90% of certain parts of the global solar supply chain, and is trying to maintain that status quo. Chinese policies and nonmarket practices are flooding global markets with artificially cheap solar modules and panels, undermining investment in solar manufacturing outside of China.   The Biden-Harris Administration has made historic investments in the U.S. solar supply chain, building on early U.S. government-enabled research and development that helped create solar cell technologies. The Inflation Reduction Act provides supply-side tax incentives for solar components, including polysilicon, wafers, cells, modules, and backsheet material, as well as tax credits and grant and loan programs supporting deployment of utility-scale and residential solar energy projects. As a result of President Biden’s Investing in America agenda, solar manufacturers have already announced nearly $17 billion in planned investment under his Administration—an 8-fold increase in U.S. manufacturing capacity, enough to supply panels for millions of homes each year by 2030.   Ship-to-Shore Cranes   The tariff rate on ship-to-shore cranes will increase from 0% to 25% in 2024.   The Administration continues to deliver for the American people by rebuilding the United States’ industrial capacity to produce port cranes with trusted partners. A 25% tariff rate on ship-to-shore cranes will help protect U.S. manufacturers from China’s unfair trade practices that have led to excessive concentration in the market. Port cranes are essential pieces of infrastructure that enable the continuous movement and flow of critical goods to, from, and within the United States, and the Administration is taking action to mitigate risks that could disrupt American supply chains. This action also builds off of ongoing work to invest in U.S. port infrastructure through the President’s Investing in America Agenda. This port security initiative includes bringing port crane manufacturing capabilities back to the United States to support U.S. supply chain security and encourages ports across the country and around the world to use trusted vendors when sourcing cranes or other heavy equipment.   Medical Products   The tariff rates on syringes and needles will increase from 0% to 50% in 2024. For certain personal protective equipment (PPE), including certain respirators and face masks, the tariff rates will increase from 0–7.5% to 25% in 2024. Tariffs on rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.   These tariff rate increases will help support and sustain a strong domestic industrial base for medical supplies that were essential to the COVID-19 pandemic response, and continue to be used daily in every hospital across the country to deliver essential care. The federal government and the private sector have made substantial investments to build domestic manufacturing for these and other medical products to ensure American health care workers and patients have access to critical medical products when they need them. American businesses are now struggling to compete with underpriced Chinese-made supplies dumped on the market, sometimes of such poor quality that they may raise safety concerns for health care workers and patients.   Today’s announcement reflects President Biden’s commitment to always have the back of American workers. When faced with anticompetitive, unfair practices from abroad, the President will deploy any and all tools necessary to protect American workers and industry.  

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• Kingdom of Bhutan: Digital Development and Transformation Strategy pdf (34.5 MB)

Kingdom of Bhutan: Digital Development and Transformation Strategy

May 29, 2024.

The Royal Government of Bhutan is formulating its 13th Five-Year Plan (2023–2028), focusing on economic, social, security, and governance development, with a significant emphasis on the ICT sector through the "Digital Bhutan" initiative. This plan aims to boost the digital economy's GDP contribution to 10% by 2034, create 1,000 jobs annually starting in 2024, and increase foreign direct investment to BTN100 billion by 2029. Key strategies include enhancing digital infrastructure, developing e-government, fostering a conducive business environment, improving digital financial services, and advancing digital skills and governance.

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Friday, 31 May

Inlaks champions ICT growth in Africa at 3i Africa Summit 2024

As part of its expansion plan, Inlaks, a leading ICT infrastructure and systems integrator in Africa, showcased its products at the 3i Africa Summit held in Accra, Ghana.

The summit, themed: "Unleashing Africa’s FinTech and Digital Economic Potential," served as a platform for crucial discussions on digital assets, fintech for inclusion, and the Africa-Asia corridor, highlighting key issues shaping the future of ICT on the continent.

Olufemi Muraino, Executive Director of Business Innovation and Transformation at Inlaks, said, “We are thrilled to be a part of the 3i Africa Summit, a crucial event that aligns with our vision of advancing digital transformation in Africa. Inlaks is dedicated to creating sustainable ICT solutions that empower businesses and communities across the continent. One of these solutions is our homegrown offering, developed with our partners to meet the specific needs of our customers comprehensively.”

The summit aims to catalyze digital growth by providing tailored solutions that address the unique challenges and opportunities within the African ICT landscape. Inlaks' presence at the summit reinforces its commitment to empowering businesses and governments with innovative technologies and strategic insights essential for sustainable growth. This involvement exemplifies the company’s strategy to foster innovation, build strategic partnerships, and contribute to the growth of the digital economy in Africa.

Inlaks' expansion strategy includes establishing partnerships with key stakeholders, investing in local talent, and developing infrastructure that supports digital ecosystems. By integrating advanced technologies and fostering innovation, Inlaks seeks to bridge the digital divide and enhance growth across Africa.

Source: Classfmonline.com

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