Bizcomm, through a series of ownership changes, has lost touch with the know-how that is needed to consistently achieve profitable response rates through mail order. Inadequate initial working capital has hamstrung the company's acquisition of these skills by forcing the owner to resort to commercial printing activity. These setbacks are the cause for this business plan, and will be remedied according to Bizcomm's reconfigured market and sales approach.
Bizcomm was sold to its present owner in October of 1998, therefore, comparable financial results will not be available until 1999. However, past financial information indicates there is plenty of room for improvement by the company under its new ownership:
Considering the company was sold in 1998, the improvements on the 1997 tax return might have included a degree of window dressing to achieve a better sales price.
Bizcomm, through several changes in ownership, has lost continuity in respect to the knowledge and experience gained over the years in direct mail. The company, under its present management, cannot continue to engage in expensive mass mailings with any reasonable expectation of quick success. This business plan will put forth other means to expand the company and give it adequate breathing room to again engage in direct mail in a less-hurried, more professionally researched way.
The table varies somewhat from the auditor's figures of December 31, 1999. For one thing, the current portion of long term debt was removed from current liabilities to avoid problems arising from assuming that all debt technically classified as "current" would be repaid in the current year. Total long-term debt of $271,874 can be broken down by this table below:
|Loan||Percent of Interest||Amount Owed|
|Debt to Former Owner||8%||$12,500|
|Total Amount Owed||$271,874|
Depreciation and amortization have been lumped in together. Capital assets include intangibles of $56,406.
Notes payable to stockholder of $26,912 represent money owed to the owner, Mr. Pullman, and do not accrue interest. To more accurately reflect the equity nature of these funds, and for ease of projecting interest charges, this $26,912 has been placed into the capital stock category.
At the present time, Bizcomm's facilities are all located in Bronxville, New York. The space is much larger than present operations would dictate, especially the office space portion, and plans are in place to move the entire operation to Jefferson (nearer to the owner's residence) in September, 2000, at the end of the present lease. This planned move is expected to bring a reduction of $1,500 in the monthly rent.
Bizcomm is a limited liability corporation that is fully owned by one person, Mr. Pullman. Originally, the corporation was named Eric Rutherford Inc., and was operating under the name Bizcomm, Inc. Recently, the corporate name was changed to Bizcomm, Inc. Mr. Pullman comes from an office supply background. The knowledge, experience, and contacts accumulated during that period have led to changes in the traditional modus operandi of Bizcomm. Commercial printing work and ad specialties have taken an increasing percentage of Bizcomm's sales.