BUSINESS PLAN
Fax: 770-967-9415
Our Statement of Purpose
Global Communications Group was formed in 1990. It made a name for itself with the repair and sale of Hitachi telecommunications systems.
Global built its first Internet websites in 1995. When at the end of 1998, Global sold the Hitachi PBX portion of its business, Global used much of the proceeds of this sale to purchase and study and repair computers and to set up internet and affiliate programs.
The birth of Global?s Supercomputer Project, Electronic Cottage and Alternate Energy springs from their desire to bring inexpensive high powered and workable communications solutions to the consumer, and businesses combined with our Real Estate and Transportation knowledge
GLOBAL COMMUNICDATIONS GROUP, INC.
1) About Our Company
2) Our Management Team
3) Our Products and Services
4) Our Location and Floor Plan
5) Our Marketing Plan
6) Our Competition
7) Our Financial Statement
Appendices:
A) Internet Cafes
B) Resumes
C) Advertisements
ABOUT OUR COMPANY
Global Communications Group was formed by Anne and Robert Colee, in June, 1990. It was incorporated in 1992. This formation was the direct result of Mr. Colee?s being downsized from Hitachi, America. The focus of Global, it was decided, would be the repair and refurbishment of Hitachi telecommunications products.
Global managed to achieve this end at lower prices, quicker turn-around time and with the absence of red tape that often plagued bigger companies. Word of Global?s fast, accurate, inexpensive, personalized service gradually spread. Soon Global had many new customers and some new employees.
Global?s ?can-do? spirit was evident in its acquisition of clients such as Bell South, RCA, and Williams Communications. It shone through when Global was selected as a sub-contractor on the then experimental Lockheed YF-22 fighter aircraft and in its work with Warner Robbins A.F.B. as a Dept. of Defense contractor. It would later be evident in its forays into Russia and in its establishment of Internet websites and cybermalls before these concepts became state of the art.
As with many other small companies, Global suffered its share of setbacks. Through all times, good and bad, Global managed to prevail. In 1993, Global was doing business with more than 200 American companies and a few overseas companies. Looking to expand its international base, Global turned some of its energies to getting accounts in the ex-Soviet Union, particularly Russia. Global worked with many American companies to this end. Global published a bi-lingual newspaper, ?The Global Communicator?. The Colees wrote a series of articles, ?The Russian Adventure?, detailing their findings.
Colee made a business trip over to Russia, spending one week each in Moscow and St. Petersburg. After Global had made tentative joint ventures with two Russian companies, the
bottom fell out of the Russian economy, making it impracticle for Global to continue its business plans with the country. Incidentally, the technology which Global proposed in 1993, for Russian telecommunications, was later allowed for implementation in the Telecommunications Act of 1996.
In 1994, Global moved into a new building. In the next couple of years, Global was doing well enough financially so it was decided to expand its business into other avenues. A second building was rented by Global. Three new businesses were opened in the new building: a new age book-store, ?Camelot?s Curios?, a motorcycle shop, ?Superbikes?, and a plant shop ?the Garden of Eden?. In keeping with the relatively new concept of Web Cybermalls, each store had its own website. The new stores and their companion web sites were opened in the summer of 1996, just on time for the Atlanta Olympics. Five of Global?s web sites were featured in the Olympics, that year.
During 1997, the finances of Global were severely negatively affected by the summer UPS strike and by one of its biggest customers going bankrupt and failing to pay Global its debt. The businesses in the second building (and the accompanying websites) were showing a profit. However, telecommunications products continued to be the primary money maker. Early in 1998, the decision was made to close Global?s second physical location, while retaining the web sites associated with its three business.
In 1998, a decision was reached to sell off the Hitachi HCX service portion of Global. At the end of that year, this sale was made, then finalized in a slightly different form early in 2000. The Colees used much of the money from that sale to further their website research and development. At the time of this writing, the Colees have more than 50 websites.
Presently, Global is expanding the scope of its business by moving into a retail location out of which they are selling various telecommunications goods and services. Among the products Global markets are cell phones & accessories, telephone systems, new and used computers, and consumer electronics. Among the services which Global offers are website design, consulting, refurbishing electronics, repair & upgrade of computers, and teaching computer and internet classes. Those Hitachi systems and services which Global is not barred from selling by a non-compete clause that is in effect until April, 2002, are being sold by Global under the name ?Planetary Communications? until the non-compete clause runs its course. Global is taking its website development further, by moving into exciting, relatively new concepts, such as the establishment of a full service Internet Cafe* in its new retail facility. Future plans for Global include the development of a ?Supercomputer? (encompassing 200+ computers tied together) and the research and development of the PEM fuel cell, as well as sales in the Atlanta area.
*See Appendix A (Internet Cafes)
OUR MANAGEMENT TEAM
Global is a closely held corporation. Its current management team consists of two people:
Robert Colee - President, Director of Sales and Engineering, Secutary / Treasurer: Mr. Colee was one of the original founders of Global Communications Group. Under his leadership and guidance, Global has flourished and grown. At the time of the sale of the Hitachi HCX portion of Global, the company had grossed in excess of $3M. Colee has served Global in any number of capacities including, president, engineer, electronic technician, and aerospace research and development.Colee?s salary will be $1,000 bi-weekly.
Anne Colee - Vice President: Ms. Colee was one of the original founders of Global Communications Group. She has been an integral part of the company since its 1990 inception. Experienced in everything from management to bookeeping to human resources to various aspects of website development, Ms. Colee looks forward to bringing her talents to the new Global store. Ms. Colee?s salary will be $1,000 bi-weekly.
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In their previous experience running Global the Colees found that they could build on the following strengths:
1) Personable - The Colees are ?people persons?. They find it particularly easy to communicate with employees, vendors and potential customers. A variety of people put their trust in them.
2) Accurate, Speedy, Inexpensive - The Colees and Global have made a name for themselves, by their seemingly endless ability to turn out accurate, speedy, inexpensive
work and services.
3) Flexible - Global is flexible from the point of view that it has made a reputation from its willingness to ?turn on a dime? to meet the customers? (and in some cases the employees?) needs in cases where many other companies would not.
4) Honest & Hardworking - The Colees and Global have acquired a reputation over the years for being trustworthy and hardworking. They stand by their work and will not promise something they cannot deliver.
5) Imaginative and visionary -The Colee?s imagination and vision have kept them and Global going through bad times as well as good.
Some of the Colees? weaknesses, which have cost the company financially and emotionally in the past are the following:
1) Organizational skills could be improved upon - One thing that the Colees can use in their company is strong organizational skills. In the past, the waters were muddied by things such as people not having a clear job description which led to people not having a clear enough sense of purpose.
The solution to this is: hiring some people with strong organazational skills. Having each employee have a chart which clearly defines his duties. Having clearly explained procedures for every function.
2) Lack of good budget - In the past Global has suffered needlessly from the lack of a good budget. The company?s past budgets omitted things such as an adequate savings budget with the result that Global has been ill-prepared for ?rainy days?. In addition, since Global?s income varied from month to month, it was a great temptation to overspend on perceived ?needs?during the ?fat? months and not to worry about the lean months until they came.
The solution to this is: deferring to our accountant on important financial decisions. Setting aside an amount ($25,000 - $50,000) to ?carry? Global through lean months.
3) Too many ?Chiefs?, not enough ?Indians?, and other varieties of overstaffing and understaffing - Understaffing leads to people wearing too many hats and not being able to give 100% to any of their jobs. It contributes to lack of organization. Too many chiefs and not enough Indians leads to too much of a cluster at the top and not enough work getting done at the lower levels. Overstaffing leads to a sense of disorganization as there are too many people with not enough to do.
The solution to this is: starting with the minimum amount of people. Adding people only as the budget, workload and workers' experience warrant it.
4) Too Easygoing - The Global employees have sometimes misread the Colee?s friendliness as a weakness, and proceeded to slack off on their jobs.For their part the Colees have sometimes hesitated, in the past to reprimand people in as timely a manner as situations would seem to warrant or to fire them as quickly as would seem to be indicated by circumstances.
The solution to this is:reimplement our Company Handbook. Our Company Handbook, in its present incarnation did not get completed until 1997. By this time we were making moves to sell off part of our Hitachi repair base and most of our employees were transferred in the sale.
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OTHER GLOBAL WORKERS and ASSOCIATES
We recognise the need for the filling of other positions. We need or will at some point need:
1) Inside and Outside Sales People - These people will need to have an enthusiastic belief in our products. Their function, besides generating sales, will be to drive potential customers to our store. These people will be paid $10/hr. + commission.
2) Office Manager - This person will have to have organization and people skills. He/she will be responsible for seeing that our store runs smoothly, that people who need help are helped, that things are kept in their proper place, etc. He/she also will have secretarial/phone duties This person will be paid $11/hr.
3) ?CPE?s? or ?Computer Proficiency Experts?, Webmasters, etc.- These people will need to have a variety of computer skills. demonstrable knowledge of facets of computer They will have to have the ability to trouble shoot. These peoples pay will vary depending on whether its an outyside or inside job. Starting pay for inside jobs will be $10-$14, depending on level of expertise. Outside jobs will be billed by Global at from $35 - $65 an hour, or at varying rates per job, with one/third to one/half going to the CPE.
4) ?Professionals?- These people will be brought in on an occasional basis to run classes and seminars on various aspects of communications and related subjects. They will set their own price giving Global half of their take.
5) Bookkeeper- It should be noted that our major accounting will be done by Ms. Charmin Silver of Absolute Business Communications. However, in order that we keep a handle on our finances internally, we need an experienced inside bookkeeper. This person will interface with the Colee?s giving them financial progress reports on (at least) a weekly basis. This person will be paid $ 11/ hr.
6) Advertising Executive - This person will be responsible for setting up an advertising campaign, obtaining and maintaining advertising accounts, interfacing with the people associated with these accounts, and keeping within a fixed budget. This person will be paid $12/ hr.
It should be noted that 1) these people will initially be hired on a part-time basis.
2) these people will be hired as needed and as our budget warrants it
3) pay amounts shown above are only estimates
4) these pays are starting amounts only
**See Appendix B, Resumes
OUR PRODUCTS AND SERVICES
Our products include, but are not limited to the following:
1) Cell phones, cell phone accessories, and cell phone to computer interfaces
* 2) Voice mail systems
3) Computers and computer accessories
* * 4) Computer Software
* 5) Home, office, and industrial telephone systems
6) High-speed Internet
***7) Consumer Electronics
***8) PBX Telephones
9) Scanners
10) Satellite Communications
11) Power Supplies
Our services include but are not limited to:
1) Web development
2) Internet Cafe ( Computers, Email, Fax,** Copies,* Laser Printing,** Scanning, *Videoconferencing,** Digital Camera,* Videophone,...)
3) Consulting (Computer, Telecommunications, Lab, Websites, E-Commerce, ...)
4) Telephone Services such as: E-mail, Virtual Office
* categories indicate Global does not have
** categories indicate Global needs to replace
*** categories indicate Global needs to repair / refurbish
OUR LOCATION AND FLOOR PLAN
Our building is located in the County Line Shopping Center, at 4880, Ste. 4, Lawrenceville Hywy, Tucker, GA. 30084.
It is approximately 100 yards south of the major intersection where Jimmy Carter Blvd. runs west Mountain Industrial Blvd. runs east and Hwy. 29, also known as Lawrenceville Hwy. runs north/south. As its name would suggest County Line shopping center is on the line between two counties: Dekalb and Gwinnett. Half of the stores (including ours) are located in Tucker, Dekalb and the other half are located in Lilburn, Gwinnett. The Gwinnett county towns of Norcross, Lilburn, Lawrenceville and Duluth and the Dekalb all feed easily into our shopping center as do the Dekalb county towns of Tucker and Stone Mountain.
Our building is ideal from a few points of view:
1) It is easily accessible, well populated, with good lighting, and public transportion nearby.
2) It is on a large, well-traveled highway (Lawrenceville Hwy, also known as Hwy 29)
Jimmy Carter Blvd., the nearest cross road is within several hundred feet of our store.
3) It is attractive and safe.
OUR DREAM FLOOR PLAN:
Behind the counter at the front of the building, there will be there will be a ?point of purchase?computer, for recording sales. Coffee, tea, soft drinks and snacks will be on sale. The popular and emerging technologies will be displayed primarily in the front room, with some of these demonstrated more completely in one of the back rooms. Website development, Macrovoice, Cingular Cell phones, Computers and accessories are among the products that will be featured in the front room.We plan to invest in a Microsoft Office program. The products we will carry will have high to moderate name recognition.
The front cubicle area will be used by members of our staff to generate things such as reports,
resumes, proofreading services, and other services that will be for sale at the Global Internet Cafe. The back cubicle area will be used for an Electronics Laboratory.
The ?Global Internet Cafe? room will be just that---a room where people can use our computers
to access the Internet and perform a variety of other services. There will be a Hewlett-Packard
scanner/digital copier/fax machine combination in that room.
The front office will be used for keeping files, records, telemarketing work,etc.
The back office,/ work room/ PBX lab is where members of Global will do technical work.
In the room identified as ?the Seminar Room?, ?experts? will present seminars on subjects designed to further people?s knowledge of various aspects of technology. There will be a projector and a Computer running Microsoft powerpoint. There will be about 20 folding chairs and one - two folding tables.
The back room will be used for a break room.
Two things should be noted here. Not everything is in the place mentioned yet. And some things will be put in different areas than the ones herein designated for them.
POSSIBLE TIME LINE:
October 22 - Global Internet Cafe w/ at least 4 computers, fax/scanner/laser printer/digital copier combination, Microsoft based Operatng Systems
November - Grand Opening , two Microsoft computers, Macrovoice voice mail
December - two more Microsoft computers, Wireless Internet system
January - two more Microsoft computers, Macrotel telephone system
OUR MARKETING PLAN
In our present location we are trying to encompass the needs of a variety of customers. From those electronics technicians who are looking for items some of which are off the beaten track to the countless people who are looking for inexpensive, uncomplicated solutions to their telecommunications concerns, Global will strive to have a plan to suit almost everybody. Our store is or will be dealing in the following broad categories:
1) Internet Cafe - The concept of having gathering places, where people can congregate to serve their Internet needs in a relaxed, user-friendly atmosphere is one that was virtually unheard of until the mid-90's. The marketplace for these is undergoing rapid changes, as is true of most aspects of the computer business, right now. The Internet Cafe market is still growing, and our current product line for this needs extending. The prices that we will charge for the Internet Cafe services will be competitive
2) Web development, consulting, etc. - There is a high demand for these services, and the marketplace for them is undergoing lightning quick changes as are the products that support these services ( communication products such as computers, telephones etc.). There is an ever growing market for the services and our current product line needs expanding so that we will be able to keep up with the ever changing developments in the marketplace. Current prices are increasing. The prices we charge for these services will vary from discount to competitive.
3) Computers, Telephone Systems, etc: New - Due to ever changing developments and progressions in the telecommunications industry and the programmed obsolescence of many of the industry?s products, the ?newest? product lines (and the public?s conception of the newest lines) change frequently. Nevertheless, there is always a large demand for state of the art equipment, at holding, and sometimes decreasing prices. We need to expand in this field so as to fall in with the ever changing needs of the consumer. The prices we charge for these items will be competitive.
3) a) Cingular Cell Phones, Pagers, Accessories - This is an ever expanding market, due to the
semi-constant upgrades in service and technology. The pricing continues to be competitive. We
need a presence of current Cingular cell phones to fit in with the whole superior telecommunications package we offer. We will be selling this product line at competitive prices.
4) Computers, Telephone systems, etc: Used - As a result of our 11 years in the telecommunications business we have a surplus of used communications items. There is a demand for these among the countless people who either have an installed base or want simple inexpensive solutions to their needs. Our current product line needs reorganizing--- in some cases paring down, in others upgrading. We will be selling these products at a discount.+
5) Computers, Telephone Systems, etc: Repairs, Upgrades, De-Installations -. As long as there are telecommunications products, there will be a demand for their service and upgrade needs. We have many years of experience in meeting these demands. We will be selling these services at competitive prices.
6) Affiliate & Resellers Programs - One of the main attractions of affiliate programs are their ability to get customers desired products at a minimum of inconvenience and an optimum of swiftness. The pricing for these products usually ranges from discount to competitive.
7) Consumer Electronics - Yet another aspect of the telecommunications business, the marketplace of consumer electronics is undergoing rapid change. We will be selling these items at discount prices.
8) Electronic Components & Test Instruments- Due to the fact that Global has been involved in the service and repair of telecommunications equipment for 11 years, we have an excess of miscellaneous new and used electronic components and test equipment.The typical market for these items will be experimentors, collectors and small repair shops. Our plans are to pare these products down to make room for newer more profitable items. +
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+ Note: As mentioned earlier (See ?About Our Company?), our Hitachi products are being sold under the trade name ?Planetary Communications? until April, 2002.
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To summarize, Global is offering a wide range of telecommunications products and services. Some of these eg. computer repairs, sales and upgrades are in place now. Others eg. ?the Global Internet Cafe? are waiting for other services, vendors, providers etc. to be put into place.
Global?s experiences in the world of retailing have led us to the conclusion that a variety of advertising medium best suits our marketing needs. We plan to have advertisements for our Global store, as a whole and for the Global Internet Cafe, specifically.
Websites - Websites are already in place advertising many of our services. New ones will be added shortly eg ?the Global Internet Cafe? website as an internet companion to our physical internet cafe.
Pamphlets, Flyers, etc. - These can be used effectively at shopping centers, malls etc.
(See Appendix: Flyers) for both our New and Used product lines.
Newspaper advertising - Currently we have a running advertisement in the Atlanta Advertiser and the Thrifty Nickel. Other publications we are looking into advertising in include the Creative Loafing (Atlanta and Gwinnett editions) and the Atlanta Journal & Constitution (and specifically the Personal Tech Section)
Trade Magazines - Global has advertised many of its services very successfully in the past in trade magazines such as Telecom Gear, the Mart, Telephone International.
Telemarketing - Both cold and warm call telemarketing has proven in the past to be productive in selling various of our telecommunications services.
Computer and other Trade Shows - A number of our New and Used items can be displayed resulting in many sales. Our Business Cards and Pamphlets can be both displayed and handed out
Telephone Yellow Pages - A new yellow pages comes out in November.We have taken out two separate ads, for November, 2001 ; one for Global Communications Group, Inc.(under Computers Used) and one for Global Internet Cafe (under Internet Services and Web Site Design). (See Appendix: Yellow Pages Ads)
OUR COMPETITION
There are many companies both big and small, that are in the telecommunications field, in some capacity. These run the gamut from the cell phone stores that are in almost every shopping mall, to the numerous ?mom and pop? computer stores to the multi-conglomerate Fortune 500 corporations. In its eleven year history Global has always strived to rise to its competition, both big and small. Global stands out from most of the rest in the scope of what it offers.
Global has always taken pride in being a small telecommunications company with a difference. In its eleven year history, it has always been known for its timely, friendly, relatively inexpensive service and its willingness to provide speedy technical support, when needed, to its customers. Something else Global has built its reputation on is its adventurous, imaginative spirit. Its employees have not been afraid to take caculated risks.This has pushed Global into areas that normally would be considered the purview of larger, more well funded companies.
After the 1998 sale of the HCX Hitachi portion of Global, the Colees used much of the money generated by the sale to further their Internet research and development. At this writing they have more than fifty web sites. The Colees are looking forward to putting the things they have learned about the Internet, telecommunications and most importantly the Customers, themselves, into a new retail store.
Global has found that the desire to have, learn more about, have upgrades on, send e-mails on computers and Internet cuts through virtually all age, sex and socio-economic levels. Young consumers (teens, twenties, and some thirties) tend to be sophisticated in their computer/internet knowledge and tastes. They are typically impressed with the same ?bells and whistles? that sometimes will go over the older consumer?s head. And what of the older consumers, those people who are old enough to not have grown up with computers and internets? Many of these people are not concerned with having the most up-to-date or fastest computer system, or learning a lot more than they care to know about computers and internets. Rather, they simply want a reliable computer. They want good value for their money. They may need uncomplicated instructions in things such as how to run e-mails and browse web sites. Of course this is not to dismiss those older consumers who are high tech and have been doing these applications for decades. No matter what a consumer?s age or level of sophistication, he/she is likely to find shopping at Global a comfortable, enjoyable experience. Our employees will never talk down to the customer but will always provide needed expertise.
In the past, Global sold almost exclusively to businesses. Right now it is serving mostly consumers. It intends, eventually, to serve 70% consumers, 5% industrial/government and 25% business. The markets for computers and other forms of communications is steady. Global?s share in these markets will grow as we provide increasing service.
Global?s five leading competitors in new/used discount computers are about 3 miles away, mostly on Jimmy Carter Blvd. and McDonough Dr. Computime, Half-Price Computers and Ginstar are three of the stores. Like Global, they offer new and used computers, upgrades and repairs. Unlike Global however they do not offer a full range of telecommunications services or products. People who go in there have to be computer literate and generally go to these stores for business purposes.
When we examined some stores in Duluth that specialized in new computers and accessories, we found in general that the wider the variety of the items offered in any particular store the heavier the floor traffic and sales volume in that store.
In our exploration of competing internet cafes, we have found that there are presently more than 3,000 internet cafes, worldwide. About eleven or twelve of these are in Georgia. A few are in downtown Atlanta and a new one, catering primarily to the needs of the Hispanic community, just opened up a few months ago, in Norcross. We went into the Norcross one to find its proprieter doing a lively business. Eight of its nine computers were occupied. There was one assistant walking back and forth between the computers, answering any questions that came up. We were impressed with the cheerful cleanliness of the store and the friendliness of its owner. We also explored an Asian owned Internet Cafe in Lilburn.We found that this one mainly catered to teen-agers playing video games. The owner was friendly but our opinion was that he was not using his space in the optimum manner.In a space twice the size of the Norcross location, more than half of the Lilburn Internet Cafe lay empty. We feel that our area can use another computer store with internet cafe services. A number of people would feel it beneficial to have a relaxed easy atmosphere to perform computer and Internet functions.
How does Global differ from the many stores that offer telecommunications/computer solutions? Global offers a wider range of services, in a user friendlier atmosphere than most of its competitors.
FINANCIAL INFORMATION
Start Up Costs
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Cash.....................................................................100
Initial accounts receivable......................................300 TDA
Inventory.............................................................5,000
Equipment...........................................................3,000
Fixtures...............................................................1,000
Rent Deposits......................................................1,900
Remodeling.........................................................1,000
Utilities................................................................1,000
Legal & Professional Fees......................................600
Opening Advertising & Promotion..........................500
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13,400
Use of Funding Proceeds
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Global has identified a line of telecommunications products which can serve a variety of consumer needs in today?s market. In order to service the recognized target markets with our products significant capital infusion is required.
Specifically, the required $200,000, spread over the course of a year. (i.e. one now, one six months from now, and one a year from now) will be allocated in the following way:
Per Month:
Marketing and advertising..........................................1,000
Salaries......................................................................8,500
Rent...........................................................................2,000
Telephone.....................................................................500
Electric.........................................................................500
Acounting.....................................................................200
Office Supplies..............................................................500
Capital Equipment.......................................................2,000
Research and Development............................................500
Operational Expenses..................................................1,000
Funding (pay back)......................................................6,000
Capital............................................................................500
Hardware/Software......................................................3,000
Internet Services...........................................................1,000
Savings.........................................................................2,000
Misc. Expenses................................................................800
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Total $30,000.00
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Income Statement
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Monthly Daily
Internet Cafe.......................................3,000...............................100
Computer Sales/Upgrade...................15,000...............................500
Cellular Sales.......................................3,000...............................100
Miscallaneous Electronic Sales.............3,000...............................100
Web Site Development.........................3,000...............................100
Miscellaneous Sales..............................3,000...............................100