Technology Investment Business Plan Leave a comment

The Center for Technology and Investment, (CTI) is an organization that works to bring technology investment within the reach of small rural business owners. The company was founded on the conviction that small rural businesses in rural areas are in great need of experienced and technological consulting, but don’t have enough revenue to hire large multinationals to do the work.

CTI will develop into a dynamic new force in rural Oregon by using innovative funding sources. This includes grants and charitable contributions made both by the company owner and by individuals who care about rural Oregon’s economic development.

CTI’s management team consists of one individual, Bill Franklin. Mr. Franklin has developed technology in the Silicon Valley for over 35 years, and was one of the first Electrical Engineers to work at the Stanford Research Institute (SRI). Franklin is a leading expert on technological advancement. He owns multiple businesses and sold two of them for a profit.

The market for CTI’s services are not limited to rural Oregon, and if the business expands, it is likely to expand further into the rural West. Over 45,000 small, rural, mom-and-pop businesses are located in the Western United States. Many of them have very limited or no experience with high tech and don’t know how to find alternative funding sources.

The purpose of this investment business plan is to help formalize the business strategy, as well as to provide evidence that CTI is a worthy investment for a $10,000 open line of credit from X bank. This open line of credit will be funded with a $10,000 loan. It is also intended to help manage cash flow during the first month CTI is a viable business.

1.1 Objectives

By Year 4, the Center for Technology and Investment will provide services to approximately 500 clients. At least 50% of these clients will have purchased products or services from the Center for Technology and Investment by Month 4.

Financial goals are listed below:

• A 25% contribution margin can be achieved in the first year with books, software, and all other products.
• Reduce the cost of revenue for service to less than 20%
• 350% increase in net revenues from Month 1 to 12
• In Year 1, the net revenue margin was 30%, and 35% in Year 2.

1.2 Mission

The Center for Technology and Investment is an organization that helps rural small business owners to use technology more effectively. The company’s charter was based on the fact that many rural small business owners don’t have access to the right resources and connections to make technology work for them. Our mission is to fill this gap through training and education of small business owners in how to use their resources effectively and to take advantage of technology available to improve the performance of their businesses.

If all clients achieve growth rates of more than 20%, then the organization has fulfilled its mission.

1.3 Keys to Success

Here are some key keys to success.

• Be specific about the target market. Get down to the demographics.
• Planning and execution in high detail: Quarterly seminars require extensive research, cost understanding, and consistency of content.
• Retainer consultation must be at a low price to rural business owners. It must also represent a small percentage of any SBA grants or other funding that the business owner gets. CTI must not act as a broker or provider of funding for SBA and other purposes, but as a consultant able to assist clients with securing high-level tech funding.
• Financials need to be maintained at the top, due to the nonprofit status of an industry that is largely for-profit.