Figytech Business Plan

1.0 Executive Summary

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Objectives Keys to Success Mission

2.0 Company Summary 3.0 Services 4.0 Market Analysis Summary 5.0 Strategy and Implementation Summary 6.0 Organizational Structure

Executive Summary
Figytech is a small start-up firm located in the business district of Cape May, New Jersey. We offer Technology and Web-related services to businesses in the South Jersey area. The services we offer include Website Development and Design, Graphic Design, Smart Phone Application Development, Database and Networking Solutions. Given our experience and expertise in both commercial Web development and business-tobusiness sales, we believe we can offer a unique and superior service to business owners, in comparison to what is currently available. The demand and growth rate for Web development and marketing services in the small business market is at an all time high and shows no sign of slowing anytime soon. Even more astonishing is the fact that very few Web development companies have taken advantage of the opportunity, as there are no dominating participants in this huge market. We believe the reason for this virtually untapped market is due to expensive project costs, the highest profit margins in Web development today are in servicing large and medium-sized corporations. We have developed a system that dramatically reduces steep project costs and henceforth will allow us to offer the same high-end Web development services as larger companies receive at a much lower cost to the client. This business plan will highlight many aspects of our business. It will detail market growth and demand, and it will describe much about our company. 1.1 Objectives 1. Revenues of $20,000 by month 10. 2. Net Profit of 25% in year one and 35% in year two. 3. 65% Gross margin by month 10. 1.2 Keys to Success 1. Offering high-end Web services to small or medium businesses in a way that they can understand and afford. 2. Build a strong residual income through secondary subscription-based services (Website Hosting, Smart Phone Application Development, Marketing, Maintenance, Computer Repair, Consulting). 3. Establishing strategic partnerships with our clients as we plan to unite them in a modern online catalogue for all Cape May County businesses. 1.3 Mission Our mission is to provide affordable, accessible, and streamlined Technology and Web services to small businesses. We have developed a system for offering many different types of Web services (site development, hosting, marketing, and maintenance) that are exclusively tailored to

fit the needs and resources of small and medium companies. We also provide secondary services to meet all our clients technology needs Smart Phone Application Development, Computer Repair, Networking Solutions and Database Development. Company Summary Figytech is a small company that provide high-end, affordable Technology related services to small and medium businesses that are looking to expand their existing marketing efforts to reach the Web. We have strong experience that will allow us to offer website development, hosting, marketing, and maintenance of the same caliber that large companies take advantage of, at a very affordable rate. In addition we also offer related technology services (Smart Phone Application Development, Computer Repair, Networking Solutions, Database) to meet all our clients technology needs. 2.1 Company Ownership Figytech has been incorporated as a New Jersey LLC corporation based in Cape May County as of August 1, 2011. The corporation is privately owned by Nikola Filipovic, a chief operations officer. Stanislav Kostadinov is a chief technology officer. 2.2 Start-up Summary Our start-up plan is a well thought out base to propel us forward with the proper equipment, marketing tools, and personnel to start our venture. An initial cash investment by the owners in the amount of $7,300 to purchase office furniture, computer equipment, and software has been made. Both owners have also invested a combined time of approximately 3,500 working hours toward the start-up of Figytech LLC. The cash requirement of $17,000 are funds that we need to provide the capital to run our business for the first few months. This capital will fund two employees payroll and equipment/supplies to get them started. It will cover business expenses for a few months until our cash flow takes over.

Start-up Requirements Start-up Expenses Business Cards Flyers Phone Line Install (Two Lines) Computer Monitor Office Equipment Dedicated Server Setup Fee Membership Fees DSL Setup and Install Phones Total Start-up Expenses Start-up Assets $100 $100 $150 $300 $780 $150 $600 $350 $160 $2,650

Cash Required Other Current Assets Long-term Assets Total Assets

$17,000 $7,650 $0 $24,650

Total Requirements $27,300

Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities $0 $20,000 $7,650 $17,000 $0 $17,000 $24,650 $2,650 $24,650 $27,300

Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $20,000

Capital Planned Investment Nikola Filipovic Stanislav Kostadinov Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding $3,650 $3,650 $0 $7,300 ($2,650) $4,650 $24,650 $27,300

2.3 Company Locations and Facilities We have an established commercial office space in Cape May, New Jersey under a two year lease that will expire in October of 2013 with an option to renew. There is approximately 1,000 sq. ft. capable of housing workstations for up to 10 workers. Cape May is in Cape May County, less than a 60 minute drive to anywhere in our target market area. Services Figytech LLC is a full-service Technology solutions provider for small businesses. We focus mainly on the Web, offering the following as our key services:

Web Design and Development; Graphic Design; Smart Phone Application Development.

We currently offer the following secondary services:

Computer Repair; Networking Solutions; Database Development.

And more:

E-commerce development; Website renovations and upgrades; Application development (i.e. chat rooms, message boards, online polling, live-feed audio/video, etc.); Website maintenance training;

3.1 Service Description

Website Design and Development: The service that we offer to small and medium businesses is modeled after the service that larger Web development firms offer Fortune 1000 companies in the sense that it is completely customized and unique to each individual client. Website Marketing and Analysis: After we build the website for our client, or a new client introduces us to their pre-existing site, we offer this service. As experts of the Web, we can analyze and test a website based on an established set of standards that account for the website's aesthetic value, scalability, functionality, ease-of-use, and main customer base. After an analysis has been made, we then explore and present to the client a detailed list of the most efficient Internet marketing tools and methods available to them within the constraints of their budget. This type of service is pertinent to our company given the fact that a very large percentage of our clients are on a tight budget and can only afford to take advantage of marketing efforts that are targeted directly at their desired demographic. Website Hosting and Maintenance: This service is offered for two reasons. The first reason is because they are both ongoing, continual services that we can use to establish and maintain a strong residual income. The second reason for offering these services is to allow for packaging together with other services either Figytech offers, or services an outside company can provide, hence allowing us to expand our range of small business Internet services. Graphic Design: We create high quality graphics using the latest graphic design technology. We can handle all aspects of the design process from initial concept to final production. Our graphic design and print design services ensure our clients business or organization look great and get their message across clearly and concisely. We will work closely with our clients to develop their corporate image and graphic design or print design strategy. Smart Phone Application Development: Smart Phone applications are redefining the concept of business intelligence. With the Smart Phone market growing at a rapid pace, we help businesses take full advantage of mobile technologies in winning new customers and unlocking new revenue streams. It is worth mentioning the power of the mobile phones that have:

800+ million users 40+ million mobile Internet users 250+ million Internet ready phones in use

Computer Repair: It is a secondary service for our company that goals to satisfy more of our clients needs like Hardware Installation & Repair, Printer Troubleshooting, Virus & Spyware Removal and more.Networking Solutions: We can assist our clients in setting up a new computer, printer, modem and other pieces of hardware. Database Development: As at the core of almost every application lies a database we think it is essential for our business to provide our clients the opportunity to help them constructing databases that are right for their needs. We can assist in building an effective, usable database environment to support business applications. 3.2 Sales Literature Figytech currently distributes a sales folder with all the pertinent information about our company and services. This folder lists our areas of expertise, company history, portfolio examples, and pricing packages details. It also contains facts based on the growth and popularity of the Internet for small and medium businesses. Figytech currently operates and maintains a fully-functioning website that provides information about the company, plus a variety of helpful resources for small and medium business owners which we will be constantly updating. We currently produce and distribute flyers promoting our services in South Jersey, NJ to solicit new business. We have plans to offer a more compact version of our main sales folder in a brochure format. This brochure will be available both as a mailer to interested parties and as a sales solicitation in area businesses. 3.3 Fulfillment For the website design, development, marketing, analysis, and maintenance we will employ industry professionals to handle our clients' needs. Working for the company presently is Stanislav Kostadinov, a professional website development engineer and strategist with seven years of experience in the Commercial Web development industry. To keep employee costs low, we have designed a "team" development system that will consist of two full-time sales people and three full-time Web developers. Of the Web developers, one position will be filled by a highly-qualified senior Web professional and two lesser-qualified, lower paid developers. All three will work full-time on separate projects provided to them by the sales people. However, the senior developer will have the duty of maintaining the same high quality level of work in the junior developers' projects, that our clients have learned to expect from us now. For the website hosting services we offer, Figytech has formed several alliances with industry leaders to provide top-rate, reliable hosting solutions. Forming the alliances has allowed us much flexibility in important hosting features, customizability, and it has drove costs down dramatically. All these benefits are crucial to preserving the integrity of our company as being a 'fully-rounded Technology solutions provider' for small and medium businesses.

3.4 Technology It is a given that technology and keeping up with new innovations strongly influence our business. Our office is equipped with the most current software and hardware tools available (i.e. Macintosh computers, tablets, smart phones, large capacity data storage, etc.) to meet our project requirements. Within the next year, we will be investing in additional tools that will extend our capabilities in handling various types of program files. We also have plans to purchase licensing agreements with our major software vendors to allow for automatic upgrades in new software tools. 3.5 Future Services Local Area Network Installation: These days, a quickly increasing number of small or medium businesses are using computers as a necessary tool in the everyday operations of the company. We would like to be able to expand our current services to meet this new demand. We will handle every aspect of setting up a small or medium business with an internal network of computers from purchasing, installing, and configuring the machines to software integration and educating the employees on proper usage and operating functions. Intranet Setup Installation: In our plan, after developing an Internet website for outside marketing purposes, we would like to offer the service of implementing the website into the network for use in all the business day-to-day operations. This would include extensive product/service cataloging, vital employee and management information, sharing of accounting and inventory details, etc., all intended for strictly company uses. Result-based Marketing: This is a service that no small or medium business can turn down. We have plans to offer aggressive, intensified marketing services with the fees based solely on results. To achieve this, we are in the process of forming multiple partnerships and alliances with industry specific Internet websites and various other software and service-oriented companies that provide specific marketing services and tools based on results achieved. We feel as though offering this rare service will dramatically increase our portfolio of clients.

Market Analysis Summary Figytech will initially focus almost exclusively on small and medium companies looking to develop an Internet presence for the first time or to expand their current presence. We will market our services to business owners as a "step-by-step" process, initially starting out with a small, simple website, then gradually improving and adding to the site and their entire online marketing efforts. Our most important and sought after clients will be those business owners who are ready to implement a larger percentage of their company onto the Internet. This type of client will traditionally need one of the following services:

E-commerce/shopping cart.

Database driven websites. Dynamic content and website features. Aggressive online website marketing.

4.1 Target Market Segment Strategy Figytech will focus the majority of sales and marketing efforts toward attracting small and medium businesses. The reason for this decision is simply the low amount of services available for a market with such a high demand. In addition to the very promising supply and demand ratio, it is also technically easier and less expensive to market to and attract small website projects than larger projects. What is more, small and medium businesses are the ones appropriate for our local online catalogue, which we plan to be the base of our business activity. 4.1.1 Market Needs The need for small business Internet services has existed for several years. Small businesses and start-up businesses alike are migrating onto the Web at an astonishing rate and making their online presence a higher priority than in earlier years. We have noticed an enormous hole however in the small business services that are currently available. Without a doubt, there is a need for custom, high-end, dynamic services designed exclusively for small and medium businesses. At this point, the majority of our competitors are offering services tailored around big business, to small business owners, or they are offering the exact opposite, one-dimensional type services. While every small and medium business has now recognized the need for having a presence on the Internet, many do not know where to start, how much it will cost, or even how it will benefit their company. It has been our experience by talking to business owners that the decision to take advantage of the Web is not a matter of 'if' but a matter of 'when.' 4.1.2 Market Trends An important market trend right now is the one toward aggressive online and website marketing. Although many small businesses are still waiting to gain an Internet presence, those who already have are beginning to look for more options along the lines of improving their existing efforts (social networks, mobile sites, etc.). We believe that in the upcoming years, small companies especially, will start to look for more ways to increase the traffic to their websites. Another important trend is the overall merging of daily business operations with the Internet and World Wide Web. Just as almost all large companies have started to use the Web to handle interoffice tasks, we believe that many smaller companies will begin to realize the time and money saving advantages to this strategy.

4.1.3 Market Growth Our target market has been growing and expanding toward Internet and Web usage at an astonishing rate. In addition, Internet usage (and mobile Internet usage) by our clients' customers has been growing exponentially. 4.2 Service Business Analysis Web services and development companies vary greatly in the type of service they offer and the type of client they attract. Figytech will be relatively unique in the fact that we are marketing exclusively to small and medium businesses. This industry consists of many small Web development firms usually less than 10 years old that generally start out offering services to smaller companies but with long-term goals of catering to large, corporate Web accounts. 4.2.1 Main Competitors
1. Cape Publishing, Inc.: Located approximately a mile from our office, they offer Web development and graphic services.

2. CAM Web Design: a partnership between Troy Cawley and Corey Murnaghan. Founded in 2004, based in Southern New Jersey. They provide high-quality low-cost web design and hosting solutions. 3. Cape Graphics: located in Cape May, New Jersey with active clients all over the US. 4.2.2 Business Participants The Web services and development industry consists mainly of three different types of firms. The first type are the very large, high revenue companies who service larger Fortune 1000 corporations and well-funded Internet based start-ups exclusively. In this category are only a few worldwide participants that dominate. The second type of firm offers pre-fabricated, all-in-one, proprietary type Web services to any size company at a very low cost or without any cost. The participants in this category consist of a few dominating companies that mainly all have additional sources of revenue and only offer Web services as a value-added service or additional attraction. The third type of firm is our classification, that is the smaller, usually very young companies that market to small- and medium-sized businesses in their local area. Currently there are a large number of participants in this category, but no dominating forces. Strategy and Implementation Summary Figytech will initially focus most of the marketing and sales efforts toward the South Jersey area.

We will market ourselves as a Technology and Web services organization devoted to offering high-end services to small and medium businesses exclusively. Our target customer will be the owners of any company who are looking to implement their business into the Web. 5.1 Competitive Edge We have a valuable competitive edge over our local competitors based on the fact that we have strong experience in this field and streamlined all our services into the small and medium business market. Through setting up several strategic partnerships with various Internet and Web-related companies, we are able to offer our clients an affordable and efficient proprietary Web package that will meet all their related needs. 5.2 Marketing Strategy Successful marketing of Web services to small and medium business owners depends on how you approach and follow-up every potential client. It is very important to deliver our marketing pitch in a clear, no non-sense method. Details of the Internet and Web are still relatively unknown by many small business owners, giving it the tendency to confuse and intimidate easily. 5.2.1 Marketing Programs The following is a summary of our marketing program: We will begin our marketing by acquiring memberships from Cape May Chamber of Commerce. We plan on doing a large scale marketing project during the following 3 months:

Newspaper advertising. Ad placement in local trade publications. Search Engine Optimization (Google, Yahoo, Bing local portals, Google Ad-Sense campaign, etc.) to promote wide-spread name recognition. Developing a local online catalogue, uniting our clients businesses.

5.2.2 Developing a local online catalogue

As our main competitive advantage we consider developing a platform that will unite all local businesses in an online catalogue, which will be up to date regarding all current technology features like smart phone applications for all Apple (iPhone, iPad, iPod) and Android users. Our idea is to make it interactive, easy to use, with as much information for our region as possible including not only local businesses by categories, but also information about all kinds of public events, visitors information, etc. We want to give people the opportunity to share their impressions, what they like or dislike about a hotel, a restaurant or wherever they spend time on. On the other hand we plan to give our business partners the possibility to control the information about their business in our catalogue they will be able to edit their profile - contacts, images, to receive comments and questions about their business right through the site and to give our site visitors (which are their potential clients) answers back. This platform will include interactive South Jersey map. We plan to integrate leading social networks into our site in order to make it more user-friendly and in that way to expand our target group. Creating such a platform will turn our one-time product (developing a site for our clients) into a service (advertising in the catalogue) with long-time revenue. On the one side this will be our strong point when offering a potential client create a website for their business as we will advertise it in our catalogue for a year for free. This will give our clients the opportunity to promote their business among wide target audience. On the other side after they have already convinced themselves in the benefits advertising in our site, they will be eager to establish a long-term relationship with us. We will organize different packages depending on clients requirements that may vary from $200 - $1200. Developing this catalogue will include four main branches Website Development, Smart Phone Application Development, Photographic Design and Promotion. Website Development is the most significant branch. This branch will build up our website catalogue, using latest available technologies, having in mind all web standards for clear source code and user-friendly design environment so that we may be sure our project will be a successful one.

Smart Phone Application Development includes creating applications for leading mobile operating systems - iOS and Android with about 60% of the current market share and growing up. Photographic Design - high-definition single and multi-shot digital backs are an important part of the site outlook. A professional photographer will take photos of our customers products, interiors, as well as architectural and industrial photography. This branch also includes digital video and editing, photo image manipulation, photomontage, exhibition graphics and microphotography to make our catalogue interactive and unique. Promotion is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision. Promotion also includes optimizing the site for different search engines (Google, Yahoo, and Bing), registering it in local portals, advertising in local Medias and more. Budget Financing this project is also divided in four main branches: Website Development, Smart Phone Application Development, Photographic Design and Promotion. Website Development the first branch is the most important and complicated branch. It includes financing the technical development of the site, as well as maintenance costs, web hosting expenses, domain registration costs, etc. Smart Phone Application Development includes 5 full-time working programmers for a month (25 working days) and wage of $20 per hour. Photographic Design includes one-time fee of $6 000 for the first year for a full-service package that is needed during the initial construction of the site. Promotion is also projected as a one-time fee of $10 000 to a promoting company. This price includes first-time promoting, search engine optimization, local portals registration, mass media and social networks advertising.

Branch

Costs

Web Development Smart Phone App Development (5 programmers x 25 full-time working days x $20/h) Photographic Design (one-time fee) Promotion (one-time fee) Other Total

$50 000 $20 000 $6 000 $10 000 $1000 $87 000

Return on Investment (ROI) Return on Investment (ROI) analysis is one of several commonly used financial metrics for evaluating the financial consequences of business investments, decisions, or actions. ROI analysis compares the magnitude and timing of investment gains directly with the magnitude and timing of investment costs. In the last few decades, ROI has become a central financial metric for asset purchase decisions. Original Investment: Investment Start Date: Returned Value: Investment End Date: Gain on Investment: Investment Term (Years): Return on Investment (%) Simple Annualized ROI (%) $87 000 11/01/2011 $120 000 11/01/2015 $33 000 4.0 38.0% 8.25%

Expected Return Value (by year): Period year 1 year 2 year 3 year 4 Total Clients x Amount 16 x $500 30 x $700 50 x $700 80 x $700 Total Amount $8 000 $21 000 $35 000 $56 000 $120 000

5.2.3 Pricing Strategy For most small and medium business owners, cost, both residual and one-time are huge influences on the decisions they make regarding everyday operations of their company. Even though we offer 100% customized services and our pricing is based on an hourly fee, to make it easier and less confusing for the clients, Figytech has established a packaged pricing system.

Basic Website Package ($500.00): For simple, information based websites. Popular with companies who just need to gain an Internet presence.

Professional Website Package ($800.00): Information based websites with a large amount of content. Popular with companies that have a large services/products list and/or want to implement more of their business into the Web.

Deluxe Website Package ($1,200.00): Usually reserved for product-oriented websites that are e-commerce enabled. Popular with companies that have a desire to market heavily on the Internet or sell their products/services directly from the Web.

Website Maintenance ($30.00 per hour): We charge a set fee of $45.00 per hour billed in 10 minute increments. If a client feels as though they will need their website updated or maintained on a regular basis, packages are available at a discount rate. All packages include 1 year free advertising on our online catalogue.

5.2.4 Promotion Strategy Our target client is part of a very specific demographic, for this reason, we market and promote our services in a direct and specifically targeted manner. Print Ads:

Currently we advertise in yellow page directories. All our ads appear under either the Technology Services or Website Design headings. In the near future we will feature ads in several area business publications such as Cape May County Herald and Shoppe.

Direct Mail and Fax:

We have sent out targeted bulk mail flyers promoting special offerings by our company. In the near future we will begin a new aggressive, ongoing bulk mail campaign to promote our Web development and Technology services.

Mass Media Ads:

We will begin advertising on a broader scale within the next six months. Billboard ad placement will be one of the mass media marketing campaign we will implement into our marketing efforts. Billboard ads will be intended as 'name recognition' advertising.

Local Area Commerce Groups:

To promote our services and our name as a participant in the Web services industry, we will be joining many of the local area Chamber of Commerce groups and various other strategic partnership clubs.

5.3 Sales Strategy Our clients are small and medium business owners, most are very protective of their company, and almost all of them are salesmen themselves. We sell value, service, and quality when we talk to business owners. We need to convince them that they can look past all of the hype surrounding the Internet and still see why having a website is worth the money spent. We currently utilize a database system specifically targeted toward our desired demographic to establish our first contact with every potential client. It has proven a successful method for soliciting new business directly due to the method in which we approach the first call. The salesman always requests to speak to the business owner, asking for him by his first name only, and when asked who is calling, responds by providing simply his first name as well. Once on the phone with the business owner, there is absolutely no script and the salesman clearly identifies himself and asks the business owner if he has ever considered having a website developed for his company, no matter what the response, a brief conversation will always pursue, sometimes leading to an appointment, and sometimes to a follow-up call. Because we have full confidence in our services, and recognize that business owners are generally open to the idea of utilizing the Internet and most even consider it a necessity, we take a very low-pressure, non-abrasive approach to direct selling. We will normally present the information about our company, portfolio, strengths, and pricing to the client and let them make the decision on their own. This method has proven successful provided that we keep our followup calls consistent and regular until we receive either a yes or no answer. 5.3.1 Sales Forecast Website development sales will be the largest portion of our revenue with result-based marketing following. Smart Phone Application Development, Computer Repair, Networking Solutions, Database Development and Maintenance revenue will be built up slowly but are the residual base we will stand on in the future. 5.4 Strategic Alliances Currently, we do not participate in any co-marketing or co-development efforts with outside companies. However, we have specific plans to establish several strategic partnership programs with area ISPs (Internet Service Providers). These partnerships are intended to attract more subcontracting work from potential competitors, in exchange for a commission to be paid for each lead and resulting new client.

Management Summary Figytech is owned and operated by Nikola Filipovic, Chief Executive Officer. Stanislav Kostadinov is currently Chief Technology Officer. Nikola attended The Richard Stockton College of New Jersey on a three year scholarship basis. He has completed many business management courses and has also had hands on experience with managing people. He has one year experience in Technology and Web-related sales and nearly two years in total of professional sales experience. Stanislav Kostadinov is an experienced website developer and strategist with over seven years of Commercial Web and Internet services experience, plus numerous attendances to various related seminars and educational classes. Previous to the forming of Figytech, he worked as a freelancer and offered similar Web-related services. Organizational Structure Figytech will depend on the two main principals, Nikola Filipovic and Stanislav Kostadinov, for all management responsibilities. This will include office management, accounts receivable and payable, marketing, and talent recruitment. Nikola Filipovic will serve as a Chief Executive Officer and Sales Manager. He will supervise all operations, all sales promotions and projects. Nikola will be responsible for all financial related matters. Stanislav Kostadinov will serve as a Chief Technology Officer and leading Web developer. He will be directly supervising all Web development (employee and sub-contracting projects), and will also be responsible for any necessary training in the same department. 6.1 Personnel Plan We visualize implementing a "team" development system that will consist of two full-time sales people and three full-time Web developers. Of the Web developers, one position will be filled by a highly-qualified senior Web professional and two lesser-qualified, lower paid developers. All three will work full-time on separate projects provided to them by the sales people. However, the senior developer will have the duty of maintaining the same high quality level of work in the junior developers' projects, that our clients have learned to expect from us now.