American Management Technology (AMT), Business Plan Example

Executive Summary

Through a proper focus on the strength of the company, the most crucial customers as well as the underlying values that are required, the company is in a position of increasing the sales to a magnitude of above $ 10 million within a period of time of three years and at the time making some improvements on the sales as well as the cash management in addition to the working capital.

The purpose of the business plan is to act as a guide to the way. It is responsible for renewing of the vision as well as the strategic focus with addition to the value to the market segments that have been targeted, businesses that are of small sizes in addition to the users of the category of home office of high-end in the local market of the company(Geskey, 2007).. It is also responsible for the provision of stepwise plan that is responsible for the improvement of the sales of the company, the gloss margin a well as profitability.

The components of the plan are a summary, chapters addressing the company, the products as well as the services, the focus of the market, the action plan as well as the forecast, the team of management as well as  the financial statements and projections  (Gordon, 2007).

Company Description

AMT has persisted in the market for the last 10 years dealing with reselling of computers with recorded sales of the magnitude of up to $ 7 million at each year. There has been some declining margins in the company as well as market pressure. The reputation of the company has been positive, with excellent people and positions that are steady in the context of local market although there have been difficulties in the process of maintenance of healthy financials  (Pinson & Jerry, 2006).

Company Ownership

AMT is a corporation that is held in a private manner with most of the owners being the founders in addition to Ralph Jones, the president. The owners are in six parts four of which are the investors in addition to two former employees. Both categories of owners take active role in as far as the management decisions of the company are concerned.

Products and Services

The activities of the company are centered to the sales of technology of computers in as far as small businesses are concerned including the personal hardware of computers, networks, peripherals, support, training, software as well as service. This has the implication of a realistic sales of information technology in the context of the small businesses with reliability and confidence being on the forefront (Ryan & Gail, 2006). The company is also involved with the sale of assurance to the people involved in small businesses for the purpose of ascertaining that they are unaffected by a disaster caused by information technology. The duty of the company is to deliver service to the clients as ally who are trusted with the provision of business partner loyalty as we’ll as outside vendor economics. The needs of the clients in the process of their business are catered for in consideration of the maximum efficiency as well as reliability (McGuckin, 2005). Due to the fact that the majority of the information application of the company is critical with regard to mission, the clients are assured of the availability of the attendance of the company at the time of need.

The Market

The major focus with regard to the market in as far as AMT is concerned is the local market, home offices as well as small businesses. The major focus however is the home office of the high-end as well as business offices with significantly small size of 5-20 units. The Tintown Home offices are some market segments associated with important growth. In a national context, the approximate number of the home offices is in the tune of 30 million with a 10 % annual growth. This estimate has been based on an analysis in a local newspaper publication of the last four months (Moltz, 2003).

Marketing

Marketing is based on segmentation for the purpose of the facilitation of the estimates as well as non-specific definitions. The major focus is the small as well as the medium level of businesses that are relatively small and exact classification is complicated to achieve (Tyson & Jim, 2003).  The size of companies that are targeted is significantly large thus requiring the management of information technology of the highest quality. The target market of the company is composed of 10-50 employees and there is a requirement for 5-20 work-stations in which a local-area network has facilitated for their tying together. The company is fully aware of the target market characteristics although there is no easy classification compatible with the demographics that are available (Gold, 2008).

Competition

The only existing option of proper differentiation is through the definition of the company’s vision I a sense of making it an allay of information technology. A proper competition is not achievable in the context of the chains a situation of application of boxes or the products in form of appliances but rather real alliance is a preliquisite (Luecke, 2005).  The benefits that are sold by the company incorporate majority of the intangibles, reliability, and confidence with the consideration of an attendant to respond to questions and offer assistance at the right time (Fallek, & Kris, 2003). There are products that are complex with a requirement of serious knowledge as well as experience as they are put in to use and the competitors of the company concentrate on the sale of the products only. AMT adds some services on top of selling the products with no extra cost as the concept cannot be supported by the concept if they have to adequately overcome

Management/Ownership

The Company has in the past been trapped in a vise grip with regard to margin squeeze with significant impact on the resale of computers on a global perspective. However, according to the indication in a chart financial performance in the past, the company is believed to have undergone a healthy growth with regard to the sales and there are indications of declining margins in the gloss sales as well as declining profits (Friedman, C. & Kimberly, 2005).

Financial Statements and Projections

Short-term Assets

Cash $55,432

Accounts receivable $395,107

Inventory $651,012

Other Short-term Assets $25,000

Total Short-term Assets $1,126,551

Long-term Assets

Capital Assets $350,000

Accumulated Depreciation $50,000

Total Long-term Assets $300,000

Total Assets $1,426,551

Debt and Equity

Accounts Payable $223,897

Short-term Notes $90,000

Other ST Liabilities $15,000

Subtotal Short-term Liabilities $328,897

Long-term Liabilities $284,862

Total Liabilities $613,759

Paid in Capital $500,000

Retained Earnings $238,140

Earnings $437,411 $366,761 $74,652

Total Equity $812,792

Total Debt and Equity $1,426,551

Other Inputs: 1996

Payment days 30

Sales on credit $3,445,688

Receivables turnover 8.72

Appendices

Balance Sheet: 1996

References

Fallek, M. & Kris, S. (2003). Setting Up Your Small Business. Minneapolis: American Institute of Small Business.

Friedman, C. & Kimberly, Y. (2005).The girl’s guide to start your business.  New York: Harper Resource.

Geskey, R. (2007). Guerilla Media Buying for Small Business. Rochester, MI: 2020 Marketing Communications.

Gold, S. K. (2008). Entrepreneur’s notebook: practical advice to start a new business venture US: Learning Ventures Press.

Gordon, M.E. (2007). How to Turn Your Idea into a Money Machine .NJ : John Wiley & Sons.

Luecke, R. (2005). Entrepreneur’s toolkit. Boston: Harvard Business School Press.

Moltz, B. (2003). You Need to Be Crazy: The Truth of Starting and Growing Business. Chicago: Dearborn,

McGuckin, F. (2005). Business for beginners.  Naperville, IL: Sourcebooks, Inc.

Pinson, L. & Jerry, J., (2006). Steps to Small Business Start.  Chicago: Kaplan Pub.

Ryan, J. & Gail, P., (2006). Small Business. Mason, Ohio: Thomson South-Western

Tyson, E. & Jim, S. (2003). Small Business for Dummies. New York : Wiley