Insurance Solutions, LLC
ISL will become the premier provider of Web-based property and contents valuation software and additional information solutions. Our products utilize an online data-retrieval system to offer up-to-date risk assessment cost data to insurers, property valuation to mortgage and lender groups, and secure insurance and valuation documents storage to consumers.
ISL is a privately-owned Limited Liability Corporation, currently located in the “Executive Suite” facilities at 50 Washington Avenue in South Norwalk, Connecticut. These facilities are centrally located, with easy access and travel to our potential major clients, partners and affiliates.
2.1 Start-up Summary
As outlined in the following table, our start-up costs come to $292,250. These requirements include expenses for the cost of data, IV software models and licensing fees, and first month’s salaries. Additional large start-up items include marketing and branding consulting services and costs for the initially outsourced server hosting. Information systems will eventually be brought in-house, dependent upon future development needs and cost analysis. Other usual start-up costs include legal, stationary, and expenses associated with opening our first office. We are in the process of confirming the sourcing of $200,000 from the company founders and key executives. Based on ongoing discussions, there is also a potential for the sharing of expenses with partner and affiliate organizations.
We require additional funds of $92,250 to sustain our cash reserves during the critical first year. We are seeking investment in that amount in exchange for a non-managing interest in the business.
Based on market research and data from our Australian affiliate, we project that the company will be profitable in its first year. By the end of the third year, investors will be bought out by the founding partners.
The tables below show the details of our start-up requirements and funding sources. Short-term assets to be purchased include office furniture, servers, phones, a fax machine, and a copier.
|Legal Advice & Corporate Set-up||$5,000|
|Marketing & Branding – Consultants||$12,000|
|Web Design & Development||$15,000|
|1 month start-up payroll||$56,250|
|Accounting & Audit Advice||$5,000|
|Expensed Computers and Software||$15,000|
|Contents Data Collection Cost||$50,000|
|Total Start-up Expenses||$173,250|
|Other Current Assets||$15,000|
|Start-up Expenses to Fund||$173,250|
|Start-up Assets to Fund||$119,000|
|Total Funding Required||$292,250|
|Non-cash Assets from Start-up||$15,000|
|Cash Requirements from Start-up||$104,000|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$104,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Chief Operating Officer||$50,000|
|Chief Information Officer||$50,000|
|Additional Investment Requirement||$92,250|
|Total Planned Investment||$292,250|
|Loss at Start-up (Start-up Expenses)||($173,250)|
|Total Capital and Liabilities||$119,000|
2.2 Company Ownership
ISL is a privately-held Limited Liability Corporation (LLC), jointly owned by its three chief officers and an advisor, Michael Bartlett, the founder of ISL’s Australian affiliate, International Cost Research (ICR). The three managing partners are president and Chief Executive Officer (CEO), Hugh Lloyd-Thomas, Chief Operating Officer (COO) Mark Purowitz, and Chief Information and Technical Officer (CIO) Mark Metcalf.
Additional minority stock has been set aside for outside directors which will include insurance industry, legal, marketing and retail resources and expertise.