Austin Kinetic

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Outsourced Computer Support Business Plan

Strategy and Implementation Summary

Austin Kinetic's initial funding will be from its founders' personal funds. Word-of-mouth and industry networking will be Austin Kinetic's key source of clients. The company's success will be based upon the service and satisfaction of customers to the point that they willingly refer new business.

5.1 Competitive Edge

From the onset, Austin Kinetic will have over 20 years of cumulative experience in the information technology field with a very broad range of hands-on experience. This, combined with a keen sense of customer service and satisfaction, will differentiate Austin Kinetic from its competitors.

5.2 Marketing Strategy

Austin Kinetic's initial marketing strategy will be largely word-of-mouth and industry group networking.  Our biggest initial challenge will be to get our name known in the local market. We will become involved in several industry specific organizations in the local community which will give us direct access to potential customers.

5.3 Sales Strategy

Sales will focus a bit less on building relationships and more on solidifying confidence in Austin Kinetic's competencies and skills. Our primary focus will be to answer the question, "how can Austin Kinetic best meet a customer's information technology needs?" Delivering this answer in a clear, concise proposal allied with competitive pricing will be the key to closing deals.

5.3.1 Sales Forecast

Sales are forecast with an emphasis on project work at the onset. In the first few months, we will be primarily occupied in conducting short-term one-day to one-week projects while building Austin Kinetic's reputation and brand name. Within the first six months, Austin Kinetic will have signed three annual service contracts, doubling that by the end of the year and each semi-annual period thereafter. Sales contracts will be set period contracts paid by monthly installments.

As a service business, our only direct costs would relate to the time spent by employees in responding to customers' needs. Our employees are all paid a set salary, and not by hourly billing, so we have no direct costs of sales; these salaries can be found in the Personnel Plan.

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Project related $309,600 $705,600 $1,051,200 $1,396,800 $1,742,400
Service contract $30,000 $108,000 $180,000 $252,000 $324,000
Total Sales $339,600 $813,600 $1,231,200 $1,648,800 $2,066,400
Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5
Technician Salary $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0

5.4 Milestones

Austin Kinetic will have very simple marketing milestones geared toward industry networking and beginning to build name recognition.

Milestone Start Date End Date Budget Manager Department
Join Austin's chamber of commerce 2/1/2004 3/1/2004 $0 Adam Marketing
Register with Austin Business Journal 2/1/2004 3/1/2004 $0 Adam Marketing
Obtain first service contract 5/30/2004 6/5/2004 $0 Bob and Dean All
Open Office 2/1/2004 2/1/2005 $3,500 Edgar Operations
Totals $3,500