Table of Content

Executive Summary
Company Summary
Products and Services
Market Analysis Summary
Strategy and Implementation Summary
Management Summary
Financial Plan
Appendix

1 Executive Summary
By focusing on its strengths, its key customers, and the underlying values they need, Information Management
Hawai'i, Inc. (IMH) will increase sales steadily in its first three years, while also maintaining the gross margin on
sales, with a focus on cash management and working capital.
This business plan leads the way. It renews our vision and strategic focus: adding value to our target market
segments, and reinforcing our ties with businesses in our local markets. It also provides the step-by-step plan for
improving our sales, gross margin, and profitability.
This plan includes this summary, chapters on the company, products and services, market focus, action plans and
forecasts, management team, and the financial plan.

1.1

Objectives

1. Achieve healthy earnings (EBIT) in the first year of operation.

2. Maintain a midrange gross margin throughout the entire operation.
3. Maintain just-in-time (JIT) inventory levels, or 11 turns per year.
4. Increase sales modestly but steadily in the second and third years.

1.2

Mission

To provide the Hawai'i business community with quality brand-name Information Technology business information
solutions, reliable and professional Technical Support, and unparalleled Customer Service through the application of
the principles of Kina`ole and heartfelt aloha, and to earn a fair profit for our employee-owners and stakeholders by
embracing sound, ethical business practices.

1.3

Keys to Success

The keys to our success are:

Building and maintaining strategic alliances with our manufacturers and other industry related business partners;
Adopting a customer- and market-focused sales and marketing paradigm; and,
Managing the business by implementing, and consistently measuring and adjusting the fundamentals of a Balanced
Scorecard:
Financial Goals vs. Results
Internal Business Process Goals vs. Results
Employee Learning and Growth Goals vs. Results
Customer Satisfaction Goals vs. Results

2 Company Summary
Information Management Hawai'i, Inc., will sell and service digital office information systems for Hawai'i's
businesses, with a focus on the Neighbor Island business community. IMH will be formed as the result of the

acquisition of three existing businesses: Maui Office Machines, Inc.; Electronics Hawai'i, Inc.; and, Kauai Office
Equipment, Inc.

2.1

Company Ownership

IMH will be privately-held [C corporation] owned in majority by the IMH Employee Stock Ownership Trust. There
are currently 15 employees, and all will own equal shares in the ESOT. New employees will be given the
opportunity to become vested in the Employee Stock Ownership Plan (ESOP) after a suitable probationary period.

2.2

Start-up Summary

Our start-up costs will be $1M, which includes $450,000 for the acquisition of the Maui and Hilo operations of
Servco Integrated Office Technology.
The remainder of the funds will be used for:

Initial Inventory: $200,000

Initial Capitalization: $225,000

Legal, Insurance, Rent & Misc: $125,000

The start-up funding will be financed by loans arranged through the Small Business Development Center, and by the
Hawai'i Community Loan Fund, and the Small Business Administration as a guarantor. Start-up assumptions are
shown in the following table and chart.

START-UP REQUIREMENTS

Start-up Expenses
Legal/Accounting

$10,000

Stationery etc.

$1,500

Brochures

$1,000

Consultants

$7,500

Insurance

$25,000

Rent

$15,000

Software & IT (Web)

$40,000

SPI Buyout

$450,000

Setup New Company/ESOP

$25,000

TOTAL START-UP EXPENSES

$575,000

Start-up Assets
Cash Required

$225,000

Start-up Inventory

$200,000

Other Current Assets

$0

Long-term Assets

$0

TOTAL ASSETS

$425,000

START-UP FUNDING
Start-up Expenses to Fund

$575,000

Start-up Assets to Fund

$425,000

TOTAL FUNDING REQUIRED

$1,000,000

Assets
Non-cash Assets from Start-up

$200,000

Cash Requirements from Start-up

$225,000

Additional Cash Raised

$0

Cash Balance on Starting Date

$225,000

TOTAL ASSETS

$425,000

Liabilities and Capital

Liabilities
Current Borrowing

$1,000,000

Long-term Liabilities

$0

Accounts Payable (Outstanding Bills)

$0

Other Current Liabilities (interest-free)

$0

TOTAL LIABILITIES

$1,000,000

Capital
Planned Investment
Investor 1

$0

Investor 2

$0

Other

$0

Additional Investment Requirement

$0

TOTAL PLANNED INVESTMENT

$0

Loss at Start-up (Start-up Expenses)

($575,000)

TOTAL CAPITAL

($575,000)

TOTAL CAPITAL AND LIABILITIES

$425,000

Total Funding

$1,000,000

2.3

Company Locations and Facilities

We have two locations, one in Kahului, Maui and the other in Hilo, Hawai'i. The two offices are presently being
leased by Servco Pacific, Inc., and we will rent from them on a month-to-month basis until we are able to relocate to
more suitable facilities. On Kauai, we have a sub-contractor agreement with Kauai Office Equipment to handle
installations and service.

3 Products and Services

IMH will acquire an existing operation whose primary business has been the sale and service of business appliances
(copiers, facsimiles, printers, etc.) and has operated as a part of the office equipment industry. We will build from
this base to transform the business into a value-added provider of the emerging services and technologies of the new
Information Industry. Following the lead of Canon, USA and other manufacturers which we represent, we will
approach the marketplace from a total systems solutions viewpoint.
This new paradigm will begin with an analysis of the client's existing and planned business processes, and will
provide total workflow solutions utilizing multifunctional imaging platforms and information distribution systems.
These systems will be backed by professional and reliable technical service and proactive customer service. By
forming strategic alliances with local Information Industry Value-Added Resellers, we will be able to offer turnkey
Local Area Network (LAN) systems and the ability to retrofit existing LAN and peer-to-peer systems.

3.1

Sales Literature

Copies of our product and sales literature are attached as appendices. Of course, one of our first tasks will be to
change the message of our literature to make sure we are selling the company, rather than the product.

3.2

Product and Service Description

IMH will market and sell brand name business information distribution systems and hardware, technical service and
support for these products, and the consumable supplies used by these systems. We will be a single-source provider
for business information and imaging products and services.
After researching our various manufacturers offerings and evaluating our core competencies, we will focus our
marketing and sales efforts around the digital products offered by Canon USA and e-Copy, Inc. We will supplement
this product line with Lexmark and Hewlett Packard printer products. As we continue to transition the company into
the digital marketplace, we will form alliances with additional IT manufacturers and suppliers who can round out
our product and services line.
Hardware product offerings will include:

Canon Image Runner multifunctional products (scan/copy/print/fax)

Canon multifunctional facsimiles (print/fax)

Canon Graphics reproduction products (commercial color)

Canon Micrographics products (electronic document storage)

Canon Printer products (color)

Lexmark Printer products (monochrome and color)

Hewlett Packard Printer products (laser)

Software offerings will include:

E-Copy Scan Station

E-Copy Share Scan

E-Copy Desktop

Canon Image Platform (document distribution)

Service Products include:

All-inclusive maintenance agreements (on-call service and supplies)

Walk-in service (time and materials)

Warranty Repairs (certain Canon consumer products)

Sale of consumable products for all brand names (Canon, Ricoh, Xerox, HP, Lexmark)

Professional Services include:

Information Workflow analysis and design

Network design and installation (sub-contracted)

3.3

Competitive Comparison

The only way we can hope to differentiate well is to define the vision of the company to be an information
technology ally to our clients. We will not be able to compete in any effective way with the large mainland-based
office equipment companies by selling boxes or products as appliances. We need to offer a real alliance to our local
customers.
The benefits we sell include many intangibles: confidence, reliability, knowing that somebody will be there to
answer questions and help at the important times. These are complex products that require serious knowledge and
experience to use. Our competitors tend to sell only the products themselves, and very little in the way of after-sale
training and support.
Unfortunately, we cannot sell the products at a higher price just because we offer services; the market has shown that
it will not support that concept. We have to also sell the service and consumable supplies and charge for them
separately. This monthly recurring revenue is the foundation of our financial stability.

3.4

Technology

New technology has changed almost everything about the traditional office equipment (copier) industry, and for all
practical purposes it no longer exists. The new Information Industry has emerged because of the technology of
convergence. The primary driver of convergence of different forms of information is technological change,
specifically the rapid diffusion of digital technology into an ever-wider array of information businesses. Beyond
digitization, dramatic changes in computing and telecommunications industries (mainly in faster microprocessors
and increasing bandwidth) are also driving convergence.
IMH will make convergence the theme of its vision, planning, and marketing strategies. We will move into the new
Information Industry's technology with the aim of bringing the most efficient workflow solutions to our clients while
providing value-added customer support and service, and earning a reasonable profit in the process.

3.5

Service and Support

Our strategy hinges on providing unparalleled service and support, which is critical to setting us apart from the
competition. We need to differentiate on service and support in order to become true partners with our clients. Our
service offers will include:

Uptime guarantees: we will include "uptime guarantees" with our all-inclusive service agreements to insure
maximum productivity for our clients.

Internal training: the "learning and growth" part of our Balanced Scorecard performance measurement
strategy will include the requirement that our Systems Engineers and sales professionals become network and IT
certified by the end of FY2003.

Customer training: we will package comprehensive customer training programs with all of our offerings, to
include systematic follow up and refresher training.

Upgrade analysis: we will periodically assess our client's business processes and requirements, and offer
cost-effective upgrade solutions to meet changing needs.

3.6

Future Products and Services

Beginning at start up, we will explore and research new information technologies for inclusion in our product
offerings. The products which we choose will be in line with our vision to transition the company from being an
appliance seller, to being a provider of total information management solutions. These convergent information
products will include:

Wireless LAN systems

Information management systems (hardware and software)

Tele-business and E-Commerce systems

Media transport and reproduction (distribute and print)

3.7

Fulfillment

We have an established relationship with our manufacturers and suppliers, and will be able to take advantage of all
discounts and promotions in order to keep our margins at roughly 49% throughout the operation. We will also
implement and employ "just-in-time" inventory strategies for hardware, supplies, and service parts orders to further
strengthen our margins.
As we continue to grow the business, we will evaluate other IT industry manufacturers and product lines to
strengthen our offerings with a view primarily to quality and margin advantages.

4 Market Analysis Summary

IMH will focus on local markets, including small offices and home offices (1-9 employees), medium to large
businesses (10-99 employees), corporate Hawai'i (multiple locations or 100+ employees), and local government
offices.

4.1

Market Segmentation

Our market segmentation scheme is fairly straightforward, and focuses on all Neighbor Island businesses. The
information contained in our customer analysis table is taken directly from the 2000 US Census and government
directories, and clearly shows that our largest market potential is the small office and home office (SOHO) segment.
This segment is largely overlooked by most of our competitors because of its "low end" buying habits, and a
reluctance to compete with the major retail chain box movers. We will target the SOHO market segment with valueadded and affordable business solutions customized to its unique needs, and offer the same quality of service and
support as are afforded the larger businesses.
The next largest market segment is medium to large businesses, and is the arena where we now focus most of our
sales efforts. We will continue to target this segment, but with a different approach than our predecessors. The
strategy used by former management has been to bring in selected products, and then attempt to find a buyer. This
resulted in inventory overstock, and obsolescence. We will work with the medium to large businesses to determine
their needs, and design customized solutions before ordering the required systems (JIT inventory strategy). This
segment will remain an extremely important part of our marketing mix, and contains a large portion of our current
clients. A majority of our systems upgrade opportunities and repeat business will come from this market segment
initially.
Although the Corporate Hawai'i market segment is the smallest in numbers, it has the potential to provide a
significant share of our revenues and growth (the 80/20 rule). We have a scattering of current clients in the
Corporate Hawai'i segment, but we need to do a better job of penetrating this lucrative end of the market. We will
accomplish this by offering professional services to include workflow and network design, MIS support, and other
value-added support benefits such as "uptime guarantees." We will develop long-term relationships within this
segment, and earn their business.
The local government market segment is unique in that we act primarily as a "middle man" for our manufacturers
due to GSA price schedules and other national government-only programs. This segment is fiercely competitive,
very price-focused, and buying decisions are often influenced by "who you know," as well as price. We are fortunate
in that we have long-established relationships within the County and State government agencies, and have many
loyal clients in this segment. We will increase our share of this market segment by offering the same value-added
service and support benefits that we bring to our commercial clients.

MARKET ANALYSIS
YEAR 1
Potential

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Growth

CAGR

Customers
SOHO

4%

6,800

7,072

7,355

7,649

7,955

4.00%

Medium/Large

4%

2,100

2,184

2,271

2,362

2,456

3.99%

Corporate Hawaii

3%

140

144

148

152

157

2.91%

Government

2%

1,225

1,243

1,262

1,281

1,300

1.50%

3.69%

10,265

10,643

11,036

11,444

11,868

3.69%

Business

Offices
Total

4.2

Target Market Segment Strategy

Developing a market strategy is a departure from the way the company has been managed in the past. We will
change the paradigm of being a product- and price-focused sales organization, to that of becoming a customer- and

market-focused organization, with all departments sharing responsibility for customer satisfaction. We will
accomplish this paradigm shift through the implementation of a balanced scorecard philosophy of management, with
special attention to employee learning and growth.
As mentioned previously our market segmentation strategy is straightforward, and addresses all components of the
Neighbor Island business community. Planning and implementing specific strategies for each of the four identified
segments will be an on-going process, and we will consult with marketing specialists, and our manufacturers, to
further refine these efforts as we develop our marketing plan.

4.3

Market Trends

The most significant trend in today's business-to-business marketplace is the move from analog to digital technology
and from stand-alone workflow functions to multifunctional platforms which are connected to a network. It is this
trend that has caused many of the major players in the outdated office equipment (copier) industry (Xerox, IKON,
etc.) to falter, and see their profits decline. This is true mainly because of their inability to change rapidly from an
"analog mentality" and move forward in applying the emerging convergence of digital information technologies to
the marketplace.
That is the primary reason that IMH has chosen Canon USA as its preferred manufacturer. Canon has led the way in
the industry with it's digital technology innovations, and its ability to bring both the product and the concept to the
marketplace. We will follow Canon's lead and bring this efficient, productivity-enhancing technology to Neighbor
Island businesses.

4.4

Market Growth

As computer prices continue to fall, unit sales increase. The published market research on sales of personal
computers is astounding, as the United States market alone is absorbing more than 30 million units per year, and
sales are growing at more than 20 percent per year. We could quote Dataquest, Infocorp, IDC, or others; it doesn't
matter, they all agree on high growth of CPU sales.
This rapid growth rate holds true for productivity systems which connect to the computers being sold. The standalone analog systems and appliances which abound in the business marketplace today, will be replaced by connected
digital convergence systems in the coming months and years. IMH will position itself to be a value-added provider
of this rapidly emerging technology for new businesses, while continuing to maintain and upgrade our current
analog customer base.

4.5

Market Needs

All businesses have in common a need to be continuously productive, and they rely on their service providers and
vendors to sustain their productivity. Effectively filling this need requires that the vendor bring to the table sound
planning, quality products, reliable service, and a true partnership and support relationship.
Specific business needs include the ability to gather, compile, analyze, and distribute information in various media
formats. This is where IMH's strengths will be most beneficial to our clients, both big and small. Anyone can sell the
"box" at an attractive price, but only a true value-added provider can offer the peace-of-mind that comes from a
customer-focused approach to the relationship.
Primarily due to geographic isolation and smaller populations, the Neighbor Island business community has an
additional common need of being able to rely on other locally-based vendors and suppliers for quick, reliable,
customer service and support. Having to call someone on Oahu, or the mainland, to place a service call, or to order
supplies, or get an answer to a simple billing question, is both an irritant and a hindrance to most Neighbor Islandbased businesses. Our primary goal is to fill this need by bringing true pro-active, and total, customer service to the
Neighbor Island business community, and to gain their confidence and loyalty. This will become one of our
underlying strengths.

4.6

Service Business Analysis

IMH is a part of the Information Industry, and specializes in providing information management systems and
technology for business processes. We envision that a converged information industry operating within the context
of an advanced information infrastructure will be a huge boost for U.S. businesses. Several Washington think tanks
estimate that it could spur more than $300 billion annually in new sales and increase worker productivity by 20 to 40
percent.
At the present time, an estimated two-thirds of all American jobs are information related, and that number will
increase as the shift from manufacturing to service industries continues. The convergence of information industries
will continue because the technological and business imperatives are compelling. If one company does not see the
possibilities, another will.

4.7

Competition and Buying Patterns

Business decision makers and finance managers understand the concept and value of service and support, and are
much more likely to pay for it when the offering is clearly stated.
There is no doubt that we compete more against the box pushers than against other service providers. We need to
effectively compete against the idea that businesses should buy information platforms as plug-in appliances that
don't need ongoing service, support, and training.
Our research and experience has indicated that our target market segments think about price, but would buy based
on quality service if the offering were properly presented. They think about price because that is what is traditionally
presented to them first. We have very good indications that many would rather pay 10-20% more for a relationship
with a long-term vendor providing back-up and quality service and support. They end up in the box-pusher channels
because they are not aware of the alternatives.
Availability is also very important. The business decision makers tend to want immediate, local solutions to
problems.

4.8

Distributing a Service

Medium to large business segment buyers are accustomed to buying from vendors who visit their offices. They
expect the copy machine vendors, office products vendors, and office furniture vendors, as well as the local graphic
artists, freelance writers, or whomever, to visit their office to make their sales.
Unfortunately our SOHO target segment buyers may not expect to buy from us. Many of them turn immediately to
the retail superstores (office equipment, office supplies, and electronics), the Web, and mail order to look for the best
price, without realizing that there is a better option for them for only a little bit more. We will overcome this hurdle
through innovative service offerings, and targeted marketing.

4.9

Main Competitors

In our higher-end targeted segments (medium to large businesses, corporate Hawai'i, and government offices), the
primary competitors are Xerox and Lanier. The secondary "low end" competitors on the Neighbor Islands are Maui
Office Machines and Business Equipment on Maui, and Electronics Hawai'i and Stationers on the Big Island. Our
overall competitive strategy in these segments will be Canon's superior technology, and superior value-added service
and support.

In our SOHO target segment, the primary competitors are the superstores: Office Max, Office Depot, Sears, and to
some extent Costco, Hopaco, and the Web. While these outlets can offer lower prices, they offer no (or very
little) aftermarket service or support. That is our competitive advantage in this segment, and will differentiate us
from these "box movers."

4.10

Business Participants

The traditional office equipment (copier) industry has been dominated by only a few major manufacturers: Xerox,
Canon, Oce, and Ricoh (and its OEM products - Lanier, Savin, and Gestetner); and then come the low-end
players: Sharp, Toshiba, and Minolta. With the exception of Xerox, which maintains its own sales force, the other
manufacturers distribute and sell mainly through authorized dealers.
The rapidly emerging Information Industry's digital convergence products will most likely be dominated by the
same participants as described above. While Xerox has been a past leader in the manufacture and sales of analog
products, Canon has emerged as both an innovator, and the leader, in the new Information Industry with their Image
Runner digital products and Image Platform information distribution systems. Canon is also (and has been for many
years) the front runner in color repro-graphic systems, and holds the most patents of any manufacturer in the
industry.

Strategy and Implementation Summary

We must differentiate ourselves from the box pushers. We need to establish our business offering as a clear and
viable alternative for our target markets, to the price oriented sales pitch to which they are accustomed.
From the standpoint of the office equipment (copier) industry the paradigm has been:

Copier centric if they're not in the market for a copier, they're not a prospect.

Price, price, price must save prospect money in order to gain interest.

Box movers selling features.

Calling on influencers office managers and purchasing departments.

30-day sales window war with competition mainly on price.

The industry's cheese has been moved. In order to shift to a more contemporary paradigm, our marketing and sales
efforts will need:

A new attitude we are at the beginning of a product/technology convergence.

A new approach total account management and control.

A new set of behaviors solution selling, joint prospecting, systems auditing.

A new marketing concept customer oriented, profit oriented, integrated efforts.

5.1

Competitive Edge

Our competitive edge is our positioning as a strategic ally with our clients, who are clients more than customers. By
building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses
against competition. The longer the relationship stands, the more we help our clients understand what we offer them
and why they should both stay with IMH, and refer us to other businesses. In close-knit communities like the
Neighbor Islands, reputation is extremely important, and word-of-mouth advertising is invaluable.
To develop good business strategies, perform a SWOT analysis of your business. It's easy with our free guide and
template. Learn how to perform a SWOT analysis

5.2

Strategy Pyramid

Our main strategy will be placing emphasis on service and support, and our main tactics are networking expertise,
systems training, and implementing a customer relationship management system (CRM) from e-automate. Our
specific programs for networking include mailers and internal training. Specific programs for end user training
include direct mail promotion, and on-site customer programs. Implementing the CRM software and training will be
coordinated with the e-automate Corporation.
Our second strategy is emphasizing relationships. The tactics are marketing the company (instead of the products),
more regular contacts with the customer, and increasing sales per customer. Programs for marketing the company
include new sales literature, and direct mail. Programs for more regular contacts include call-backs after installation,
direct mail, and sales management. Programs for increasing sales per customer include upgrade mailings and sales
training.

5.3

Value Proposition

IMH offers its clients peace-of-mind by being a vendor who acts as a strategic ally, and delivers quality products
backed by premium service and support, at a premium price.

5.4

Sales Strategy

We will sell the company and its ability to act as an ally. We will sell IMH, and the reputation of the industry-leading
manufacturers it represents.
We will sell our service and support. The hardware is like the razor, and the support, service, software, and training,
are the razor blades. We need to serve our customers with total solutions, and not just product features. The products
are a means to arriving at end solutions.
The Yearly Total Sales chart summarizes our conservative sales forecast. We expect sales to increase from $3.1
million in the first year to more than $4 million in the third year of this plan.

5.5

Sales Forecast

The important elements of the sales forecast are shown in the following Chart, and Table 5.4.1. Non-hardware sales
increase to almost $2 million total in the third year, or 47% of total sales.

SALES FORECAST
YEAR 1

YEAR 2

YEAR 3

Hardware - Image Platforms

$1,092,956

$1,256,899

$1,445,434

Hardware - Printers

$69,615

$80,057

$92,066

Hardware - Facsimiles

$142,711

$164,117

$188,735

Hardware - Misc (TW, Shrd)

$45,250

$52,037

$59,843

Professional Services

$29,808

$34,279

$39,420

Government (Comp)

$87,019

$100,072

$115,082

Supplies (Toner/Paper)

$501,228

$576,412

$662,874

Service - Agreements/Repairs

$946,764

$1,088,779

$1,252,095

Equipment Rentals

$243,653

$280,200

$322,230

Sales

Other

$31,327

$36,026

$41,430

TOTAL SALES

$3,190,329

$3,668,878

$4,219,209

Direct Cost of Sales

Year 1

Year 2

Year 3

Hardware - Image Platforms

$677,632

$772,501

$880,651

Hardware - Printers

$45,250

$51,585

$58,807

Hardware - Facsimiles

$88,481

$100,868

$114,989

Hardware - Misc (TW, Shrd)

$31,675

$36,109

$41,165

Professional Services

$14,904

$16,990

$19,369

Government (Comp)

$30,457

$34,720

$39,581

Supplies (Toner/Paper)

$225,553

$257,130

$293,128

Service - Agreements/Repairs

$378,706

$431,724

$492,166

Equipment Rentals

$134,009

$152,770

$174,158

Other

$7,832

$8,928

$10,178

Subtotal Direct Cost of Sales

$1,634,497

$1,863,326

$2,124,192

5.5 Milestones
The following table lists important program milestones, with dates and managers in charge, and budgets for each.
The milestone schedule indicates our emphasis on planning for implementation. The most important programs are
the sales and marketing programs listed in detail in the previous topics.

MILESTONES
Milestone

Start Date

End Date

Budget

Manager

Department

SIOT (NI) Valuation

5/1/2001

5/31/2001

$0

BH

Admin

Complete Business Plan

5/14/2001

6/22/2001

$200

BH

Admin

Submit Letter of Intent

6/1/2001

6/15/2001

$0

BH

Admin

Choose New Company

6/15/2001

7/31/2001

$0

All

All

Secure Startup Funding

6/15/2001

7/31/2001

$0

BH/All

All

Retain Attorney/CPA

6/15/2001

7/31/2001

$10,000

BH

Marketing

Negotiate

6/18/2001

8/15/2001

$0

BH/All

Admin

Set Up ESOT/ESOP

6/30/2001

8/31/2001

$12,500

BH/LW

All

Set

6/30/2001

8/31/2001

$12,500

BH/LW

All

Solicit Board Members

6/30/2001

8/31/2001

$0

BH

All

HR Roll-Over Plan (SPI

7/1/2001

8/31/2001

$0

BH/LW

Admin

e-Automate

8/1/2001

8/31/2001

$20,000

BH/LW

Admin

A/P & A/R into e-

8/1/2001

8/31/2001

$0

LW

Admin

8/1/2001

8/31/2001

$500

BH/LW

Admin

Name

Purchase

Agreement

Up

New

Corporation

to IMH)
Purchase
Software

Automate
Business
Licenses/Permits
Customers

into

e-

8/1/2001

8/31/2001

$0

JM/BK

Sales

into

e-

8/1/2001

8/31/2001

$0

LW/JA/EO

Service

To

8/1/2001

8/31/2001

$0

LW

Admin

Automate
Inventory
Automate
Letter
Vendors/Customers

New

8/1/2001

8/31/2001

$2,500

LW

Admin

Obtain Insurance

8/1/2001

8/31/2001

$25,000

BH/LW

Admin

Switch Utilities To IMH

8/1/2001

8/31/2001

$1,000

LW

Admin

Web Site Development

8/1/2001

8/31/2001

$10,000

BH

Admin

Complete

Marketing

8/1/2001

8/31/2001

$2,500

All

Sales

IMH Operations - Day 1

9/3/2001

9/3/2001

$0

All

All

Bd. of Dir. Mtg. (First)

9/4/2001

9/7/2001

$1,000

All

All

All Company - Kick Off

9/4/2001

9/7/2001

$750

All

All

&

9/4/2001

9/30/2001

$2,500

JM

Sales

Marketing Strategy &

9/4/2001

9/30/2001

$3,500

BK

Sales

12/10/2001

12/14/2001

$0

All

All

Headcount Review

12/10/2001

12/14/2001

$0

BH/EO/JA

Sales/Svc

Bd. of Dir. Mtg. (Qtrly)

12/10/2001

12/14/2001

$1,000

All

All

Cost

Training

3/4/2002

3/8/2002

$0

BH/EO/JA/BK

Sales/Svc

Second Quarter BP/MP

3/4/2002

3/8/2002

$0

All

All

3/18/2002

3/29/2002

$2,500

All

All

Stationary/Brochures

Plan

Mtg.
Sales

Strategies

Programs

Programs
First

Quarter

BP

Review

IT

Sources

Review
Enroll
Training

Team

in

IT

Third Quarter BP/MP

6/3/2002

6/7/2002

$0

All

All

Bd. of Dir. Mtg. (Qtrly)

6/3/2002

6/7/2002

$1,000

All

All

Fourth Quarter BP/MP

9/2/2002

9/5/2002

$0

All

All

Bd. of Dir. Mtg. (Qtrly)

9/2/2002

9/5/2002

$1,000

All

All

New 3-Year BP Due

9/2/2002

9/13/2002

$0

All

All

New 3-Year Mktg. Plan

9/2/2002

9/13/2002

$0

All

All

9/16/2002

9/30/2002

$1,000

All

All

Review

Review

Due
Name me
Totals

5.6

$110,950

Marketing Strategy

The marketing strategy is the core of our main strategy:

Emphasize service and support

Build a relationship business

Develop specific programs for each target market segment:

SOHO - cost effective service/product "turn key" packages, wireless LAN systems

Medium

to

Large

Businesses

customer

recovery

incentives,

uptime

guarantees,

workflow/process surveys
Corporate Hawai'i - workflow/process surveys, uptime guarantees, LAN installation and

o
administration
o

Government Offices - workflow/process surveys, uptime guarantees, GSA rates and incentives

5.6.1 Sales Programs

Specific sales programs will be included in our new Marketing Plan, and will be included in this Business Plan as
they are finalized. In general however, our sales programs will be centered around conducting workflow and

information distribution analyses, direct mail, and placing an emphasis on the benefits which IMH and its
manufacturers will be able to offer its clients through "total care" service and support.

5.6.2 Positioning Statement

For businesses who want to be sure their information distribution systems are always working reliably, IMH is a
vendor and trusted strategic ally who makes certain their systems work, their people are trained, and their down time
is minimal. Unlike the product/price oriented vendors, it knows the customer and goes to their site when needed, and
offers proactive support, service, training, and installation.

5.6.3 Pricing Strategy

We must charge appropriately for the high-end, high-quality service and support we offer. Our revenue structure has
to match our cost structure, so the salaries we pay to assure good service and support must be balanced by the
revenue we charge.
We cannot build the service and support revenue into the price of products. The market can't bear the higher prices
and the buyer feels ill-used when they see a similar product priced lower with the competition. Despite the logic
behind this, the market doesn't support this concept.

5.6.4 Promotion Strategy

We will employ the following general promotional strategies for the various market segments:

SOHO: We will depend on periodic local newspaper advertising, to reach new buyers in this segment. We
will also utilize direct mail and and the resources of the local Chambers of Commerce and other affinity groups to
reach this segment. The message will emphasize service first, and "complete product and service packaging" as a
secondary theme.

Medium to Large Businesses: Direct face-to-face contact (direct sales) will continue to be our primary
strategy for this market segment. Direct selling will be supplemented by periodic promotional direct mailings and
personalized system upgrade opportunities.

Corporate Hawai'i: This segment will be handled by direct contact and relationship building only. We will
make personal presentations to the decision makers in this group, and stress our service and technical benefits and
advantages.

Government Offices: We will utilize a combination of direct mail and face-to-face promotional strategies
with this segment, and the message will be the local service and technical advantages of IMH. We will produce an
attractive RFQ/RFP response package to accompany our submissions.

5.6.5 Distribution Strategy

IMH is first and foremost a direct sales organization, meaning that we must present our services and products
directly to the majority of our customers and clients. Having said that, for our planned penetration into the SOHO
market, we will need to establish a presence as a Value-Added Reseller (VAR) for certain low-end product lines
which don't carry the margins necessary to sustain the costs of direct sales. We will plan our new locations
accordingly.

5.6.6 Marketing Programs

As we work to complete this Business Plan, we are simultaneously working on our Marketing Plan. As you can see
from the milestones table, we anticipate completion of our detailed Marketing Plan by 9/30/01, or one month from
start-up. Because we are acquiring an on-going business, the shift to our vision of customer- and market-focused
strategies will not happen overnight. We must plan this shift carefully, and implement it judiciously, so as not to
disrupt our immediate operations. We have budgeted for, and will utilize, marketing advisors and consultants
(including our manufacturers) in the design of our Marketing Plan.

5.6.7 Strategic Alliances

Our alliances with our manufacturers, and especially Canon USA, will be the most pivotal to our success. We will
remain a Canon Authorized Dealer, and continue to enjoy all of the benefits of this long-standing relationship.
We will form alliances with other locally-based VARs and computer network providers to enable us to provide
complete turnkey packages for our clients. These relationships will be included in our Marketing Plan.

Management Summary

Our management philosophy is simple and is an integral part of our values: doing right things right, the first time
(Kina'ole).
IMH will be an employee-owned company and we all share the same vision of providing our clients (who in many
cases are friends and neighbors) with the very best in customer service - period. We will encourage personal growth,
creativity, and enable individual empowerment to achieve this goal. We will manage the business by setting
achievable Balanced Scorecard goals, measuring them, and making mid-stream adjustments as necessary.

6.1

Organizational Structure

Our team includes 15 employees initially, and is organizationally flat. The departmental divisions are sales and
marketing, service, and administration. Operational managers include:

President and General Manager: Oversees all operations, with primary responsibilities for sales and
marketing. Functioning as the GM, this position will spend a good deal of time in the field assisting the Account
Managers, and helping to build and maintain client relationships.

Secretary/Treasurer and Administrative Manager: Oversees all administrative functions including

inventory, A/P and A/R, banking, HR, and vendor and manufacturer relations. Primary contact point for customer
service issues and follow up. Will be assisted by an Office Manager in the Hilo branch.

Systems Manager (two positions - Big Island and Maui): Oversees all service issues including service
agreements, service call prioritization and response, carry-in service, customer support, and systems training and
development. Will be assisted by Systems Engineers, and Systems Technicians.

6.2

Personnel Plan

The total head count moving over from Servco at the time of the acquisition will be 13. We are adding two former
employees at startup to round out our team, for a total startup head count of 15.
There are an additional six positions shown as "vacant" in the Personnel plan. During each quarterly business plan
review, we will assess the need to fund these positions to sustain our growth, and more evenly distribute the
workload.

PERSONNEL PLAN
YEAR 1

YEAR 2

YEAR 3

None planned

$0

$0

$0

Other

$0

$0

$0

SUBTOTAL

$0

$0

$0

Production Personnel

Sales and Marketing Personnel

Alan Fukuyama - Sales (Maui)

$38,250

$40,545

$42,978

Brian Kurlansky - Sales (Kona)

$38,250

$40,545

$42,978

Jay Moore - Sales (Maui)

$38,250

$40,545

$42,978

Wilbert Shimabukuro - Sales (Hilo)

$38,250

$40,545

$42,978

Vacant - Aftermarket Sales (Maui)

$0

$0

$0

Vacant - Aftermarket Sales (Hilo)

$0

$0

$0

SUBTOTAL

$153,000

$162,180

$171,911

Bill Harding - General Manager

$57,600

$61,056

$64,719

Laurie Watson - Admin Manager

$45,600

$48,336

$51,236

Vacant - Office Manager (Hilo)

$31,200

$33,072

$35,056

Vacant - Whse & Delivery (Maui)

$0

$0

$0

Vacant - Whse & Delivery (Hilo)

$0

$0

$0

Other

$0

$0

$0

SUBTOTAL

$134,400

$142,464

$151,012

Earle Oshiro - Systems Manager (Hilo)

$49,800

$52,788

$55,955

Joe Alfonsi - Systems Manager (Maui)

$49,800

$52,788

$55,955

Wane Ogawa - Syst Engineer (Hilo)

$39,600

$41,976

$44,495

Francis Takahashi - Syst Engineer (Hilo)

$39,600

$41,976

$44,495

Baron Ganeko - Syst Engineer (Kona)

$39,600

$41,976

$44,495

General and Administrative Personnel

Other Personnel

Abe Braceros - Sr. Syst Engineer (Maui)

$41,100

$43,566

$46,180

Arlo Villanueva - Syst Tech (Maui)

$28,800

$30,528

$32,360

Caroline Nacua - Syst Tech (Maui)

$28,800

$30,528

$32,360

Vacant - Syst Tech (Kona)

$0

$0

$0

Vacant - Syst Tech (Maui)

$0

$0

$0

SUBTOTAL

$317,100

$336,126

$356,294

TOTAL PEOPLE

15

15

15

Total Payroll

$604,500

$640,770

$679,216

6.3

Management Team

Bill Harding, president and general manager: XX years old, and has lived on Maui for 43 years. Joined SIOT in
1998 as Maui branch manager, and became general manager for Neighbor Island operations six months later. Prior
management experience includes: BTA market manager of the Neighbor Islands for VoiceStream Wireless,
Neighbor Island area sales manager for Central Security Systems, and radar project manager for Telcom
International in Nigeria, West Africa. Bill has attended numerous management and sales training courses and
seminars throughout his career.
Laurie Watson, secretary/treasurer and administrative manager: XX years old, and local Maui resident. Has been at
the same location through three different owners prior to Servco's acquisition of The Office Place in 1995, for a total
of 15 years of local office equipment industry experience. Laurie has extensive knowledge of service procedures and
dispatching, A/R and A/P procedures, inventory control and tracking, as well as an intimate knowledge of our
customer base. Her experience and knowledge will be invaluable in recovering our customer base, and in growing
the business.
Anne Tioganco, office manager (Hilo): XX years old and local Hilo resident. Anne has also been with the company
through all of the acquisitions, and has XX years experience in the office equipment industry. She will assist Laurie
by handling the administrative and customer service tasks for our Hilo branch, and will be instrumental in our Big
Island customer recovery efforts.
Earle Oshiro, systems manager (Big Island): XX years old and local Hilo resident. Like Laurie and Anne above,
Earle has been with the company through four different owners, and has XX years of local office equipment service
management experience. Earle has also completed Canon's "train the trainer" course, and will be a great asset in the
on-going training and development of our systems engineers and technicians.

Joseph Alfonsi, systems manager (Maui): XX years old, and local Maui resident. Joe joined the Maui branch of
SIOT in 1999 as field service manager, after transferring from the SIOT Honolulu branch. He has XX years of local
office equipment industry service experience, and is familiar with both Canon and Ricoh products. Joe is an asset to
the Maui team, and has outstanding customer service skills.

6.4

Management Team Gaps

We believe we have a good team for covering the main points of the business plan. Key members have the
experience and knowledge to manage and grow the business, and are highly motivated by the employee-owner
concept.
The obvious management gap is a plan to fill the general manager's position at some point in the future, before the
current GM reaches retirement age. As an employee-owned company, the preferred strategy will be to promote from
within, and fill vacancies as they occur. As the company grows, we will seek out additional talent in all operational
areas.

Financial Plan

Although we are treating the business as a start-up company, the financial plan is solidly based on past performance.
We have taken actual SIOT P&L income and expenses from the past three years, and eliminated corporate overhead
expenses such as warehouse and administrative costs, inventory penalties, and corporate nominal interest. We then
projected income based on actual past performance, and factored back in the revenue base that was relocated to
Honolulu over the past two years (mainly service and supplies).
We approached the financial planning from a conservative standpoint, and based those numbers on achievable gross
margins. Also, our actual interest and tax rates will most likely be lower than the assumed rates due to our being
structured as an employee-owned corporation (ESOT).

7.1

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in Table 7.1. As
mentioned previously, we assumed interest and tax rates based on a "worst case" scenario, and these will be adjusted
once we have finalized the initial funding and establish the ESOT. We have also assumed our personnel burden at
30% of payroll in order to allow for above-average benefits for our employees. As we shop around for benefits
vendors, this assumption will be subject to revision as well.
Other key business assumptions are:

We assume continued steady economic growth on the Neighbor Islands as predicted by Bank of Hawaii,
and other Hawai'i economists.

We assume the continued move towards convergence technology in the Information Industry.

We assume access to the start-up funding necessary to re-shape and re-build the company, and to provide
adequate initial capitalization.

GENERAL ASSUMPTIONS
YEAR 1

YEAR 2

YEAR 3

Plan Month

Current Interest Rate

14.00%

14.00%

14.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

Tax Rate

37.33%

38.00%

37.33%

Other

7.2

Key Financial Indicators

As shown in the Benchmarks chart below, our key financial indicators are:

Projected Sales: Projections are based on actual past performance, and are conservative. We will increase
sales at an average rate of 15% per year.

Gross Margins: Average gross margins are based on: hardware sales = 37%; service = 57%; supplies =
52%; and, other = 50%, for an overall operating gross margin of 49%.

Operating Expenses: Operating expenses are based on providing our employee-owners with above
average wages and benefits, and providing superior customer service. Expenses are projected to increase at the rate
of 6% per year.

Collection Days (A/R): Based on the extensive use of leasing, and including service and supply
agreements into leasing packages, we will maintain an average A/R turnover of 30 days. This is projected to be
reduced to 28 days in subsequent years by increasing efficiencies in our internal business processes.

Inventory Turnover: We will maintain just-in-time inventory levels, or 11 turns per year. This will require
accurate sales forecasting, and working closely with our manufacturers. We have already begun this process under
SIOT, and the Neighbor Island inventory levels are well below previous years.

7.3

Break-even Analysis

For our break-even analysis, we assume running costs which include our full payroll, rent, and utilities, and an
estimation of other running costs. Payroll alone, at present, is about $65,500 per month (including benefits and
taxes).
We will monitor gross margins very closely, and maintain them at a midrange percentage by taking advantage of all
promotions and discounts offered by our manufacturers. Canon USA has tentatively agreed to offer us "end column"
pricing as a new dealer incentive.
The chart shows what we need to sell per month to break even, according to these assumptions. This is about 78% of
our projected sales for our first year, and is well below what we have achieved annually over the past three years
under more adverse operating conditions.

BREAK-EVEN ANALYSIS
Monthly Revenue Break-even

$209,018

Assumptions:
Average Percent Variable Cost

51%

Estimated Monthly Fixed Cost

$101,932

7.4

Projected Profit and Loss

Our Pro Forma Profit and Loss statement was constructed from a conservative point-of-view, and is based in large
part on past performance. By strengthening our service position, and rebuilding our customer relationships, we will
widen our customer base and increase sales.
Month-to-month assumptions for profit and loss are included in the appendix.

PRO FORMA PROFIT AND LOSS

YEAR 1

YEAR 2

YEAR 3

Sales

$3,190,329

$3,668,878

$4,219,209

Direct Cost of Sales

$1,634,497

$1,863,326

$2,124,192

Production Payroll

$0

$0

$0

Other

$0

$0

$0

TOTAL COST OF SALES

$1,634,497

$1,863,326

$2,124,192

Gross Margin

$1,555,832

$1,805,552

$2,095,017

Gross Margin %

48.77%

49.21%

49.65%

Sales and Marketing Payroll

$153,000

$162,180

$171,911

Advertising/Promotion

$10,500

$11,130

$11,798

Commissions

$159,516

$169,087

$179,233

Travel - Sales

$22,500

$23,850

$25,281

Learning & Growth - Sales

$6,150

$6,519

$6,910

Entertainment

$5,400

$5,724

$6,067

TOTAL SALES AND MARKETING

EXPENSES

$357,066

$378,490

$401,200

Sales and Marketing %

11.19%

10.32%

9.51%

General and Administrative Payroll

$134,400

$142,464

$151,012

Sales and Marketing and Other Expenses

$0

$0

$0

Operating Expenses
Sales and Marketing Expenses

General and Administrative Expenses

Depreciation

$0

$0

$0

Depreciation

$0

$0

$0

Utilities

$9,000

$9,540

$10,112

Telephone & ISP

$34,200

$36,252

$38,427

Office Supplies

$4,200

$4,452

$4,719

Insurance

$16,800

$17,808

$18,876

Bank Charges

$6,000

$6,360

$6,742

Postage

$10,020

$10,621

$11,258

Taxes & Licenses

$10,200

$10,812

$11,461

Bonuses

$0

$0

$0

Learning & Growth - Admin

$3,150

$3,339

$3,539

Accounting

$6,000

$6,360

$6,742

Rent

$72,000

$72,000

$72,000

Payroll Taxes

$181,350

$192,231

$203,765

Other General and Administrative Expenses

$0

$0

$0

TOTAL GENERAL AND

ADMINISTRATIVE EXPENSES

$487,320

$512,239

$538,654

General and Administrative %

15.27%

13.96%

12.77%

Other Payroll

$317,100

$336,126

$356,294

Consultants

$0

$0

$0

Other Expenses:

Learning & Growth - Service

$9,200

$9,752

$10,337

Travel - Service

$22,500

$23,850

$25,281

Freight & Cartage

$30,000

$31,800

$33,708

TOTAL OTHER EXPENSES

$378,800

$401,528

$425,620

Other %

11.87%

10.94%

10.09%

Total Operating Expenses

$1,223,186

$1,292,258

$1,365,473

Profit Before Interest and Taxes

$332,645

$513,294

$729,544

EBITDA

$332,645

$513,294

$729,544

Interest Expense

$140,000

$127,050

$99,750

Taxes Incurred

$72,797

$146,773

$235,123

Net Profit

$119,848

$239,471

$394,671

Net Profit/Sales

3.76%

6.53%

9.35%

7.5

Projected Cash Flow

Because we are treating the new company as a start-up, the cash flow for FY2002 is somewhat exaggerated by the
instant influx of new capital. Subsequent years however show a healthy growth in cash flow, mainly due to the
short 60-month repayment of the start-up loan and increased sales.

PRO FORMA CASH FLOW

YEAR 1

YEAR 2

YEAR 3

Cash Sales

$2,073,714

$2,384,771

$2,742,486

Cash from Receivables

$906,354

$1,252,568

$1,440,453

SUBTOTAL CASH FROM OPERATIONS

$2,980,067

$3,637,339

$4,182,939

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received

$0

$0

$0

New Current Borrowing

$0

$0

$0

New Other Liabilities (interest-free)

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

New Investment Received

$30,000

$0

$0

SUBTOTAL CASH RECEIVED

$3,010,067

$3,637,339

$4,182,939

Expenditures

Year 1

Year 2

Year 3

Cash Spending

$604,500

$640,770

$679,216

Bill Payments

$2,210,315

$2,809,360

$3,143,202

SUBTOTAL SPENT ON OPERATIONS

$2,814,815

$3,450,130

$3,822,418

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$185,000

$205,000

Other Liabilities Principal Repayment

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

Dividends

$0

$0

$0

Expenditures from Operations

Additional Cash Spent

SUBTOTAL CASH SPENT

$2,814,815

$3,635,130

$4,027,418

Net Cash Flow

$195,252

$2,209

$155,521

Cash Balance

$420,252

$422,461

$577,982

7.6

Projected Balance Sheet

The Projected Balance Sheet is quite solid. We do not project any trouble meeting our debt obligations as long as we
achieve our specific objectives.

PRO FORMA BALANCE SHEET

YEAR 1

YEAR 2

YEAR 3

Cash

$420,252

$422,461

$577,982

Accounts Receivable

$210,261

$241,801

$278,071

Inventory

$172,142

$196,241

$223,715

Other Current Assets

$0

$0

$0

TOTAL CURRENT ASSETS

$802,655

$860,503

$1,079,768

Long-term Assets

$0

$0

$0

Accumulated Depreciation

$0

$0

$0

TOTAL LONG-TERM ASSETS

$0

$0

$0

TOTAL ASSETS

$802,655

$860,503

$1,079,768

Assets
Current Assets

Long-term Assets

Liabilities and Capital

Year 1

Year 2

Year 3

Accounts Payable

$227,807

$231,184

$260,778

Current Borrowing

$1,000,000

$815,000

$610,000

Other Current Liabilities

$0

$0

$0

SUBTOTAL CURRENT LIABILITIES

$1,227,807

$1,046,184

$870,778

Long-term Liabilities

$0

$0

$0

TOTAL LIABILITIES

$1,227,807

$1,046,184

$870,778

Paid-in Capital

$30,000

$30,000

$30,000

Retained Earnings

($575,000)

($455,152)

($215,681)

Earnings

$119,848

$239,471

$394,671

TOTAL CAPITAL

($425,152)

($185,681)

$208,990

TOTAL LIABILITIES AND CAPITAL

$802,655

$860,503

$1,079,768

Net Worth

($425,152)

($185,681)

$208,990

Current Liabilities

7.7

Business Ratios

The following table shows our main business ratios, and is compared to national averages. Our SIC industry class is
currently: Office equipment, nec - 5044.99.

RATIO ANALYSIS
YEAR 1

YEAR 2

YEAR 3

INDUSTRY
PROFILE

Sales Growth

0.00%

15.00%

15.00%

1.50%

Accounts Receivable

26.20%

28.10%

25.75%

30.97%

Inventory

21.45%

22.81%

20.72%

38.08%

Other Current Assets

0.00%

0.00%

0.00%

16.04%

Total Current Assets

100.00%

100.00%

100.00%

85.09%

Long-term Assets

0.00%

0.00%

0.00%

14.91%

TOTAL ASSETS

100.00%

100.00%

100.00%

100.00%

Current Liabilities

152.97%

121.58%

80.64%

44.30%

Long-term Liabilities

0.00%

0.00%

0.00%

8.46%

Total Liabilities

152.97%

121.58%

80.64%

52.76%

NET WORTH

-52.97%

-21.58%

19.36%

47.24%

Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

48.77%

49.21%

49.65%

26.76%

Selling, General & Administrative

45.02%

42.69%

40.40%

15.95%

Advertising Expenses

0.33%

0.30%

0.28%

0.95%

Profit Before Interest and Taxes

10.43%

13.99%

17.29%

2.55%

Current

0.65

0.82

1.24

1.80

Quick

0.51

0.63

0.98

0.87

Percent of Total Assets

Percent of Sales

Expenses

Main Ratios

Total Debt to Total Assets

152.97%

121.58%

80.64%

6.22%

Pre-tax Return on Net Worth

-45.31%

-208.01%

301.35%

55.95%

Pre-tax Return on Assets

24.00%

44.89%

58.33%

14.11%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

3.76%

6.53%

9.35%

n.a

Return on Equity

0.00%

0.00%

188.85%

n.a

Accounts Receivable Turnover

5.31

5.31

5.31

n.a

Collection Days

57

64

64

n.a

Inventory Turnover

10.91

10.12

10.12

n.a

Accounts Payable Turnover

10.70

12.17

12.17

n.a

Payment Days

27

30

28

n.a

Total Asset Turnover

3.97

4.26

3.91

n.a

Debt to Net Worth

0.00

0.00

4.17

n.a

Current Liab. to Liab.

1.00

1.00

1.00

n.a

Net Working Capital

($425,152)

($185,681)

$208,990

n.a

Interest Coverage

2.38

4.04

7.31

n.a

0.25

0.23

0.26

n.a

Activity Ratios

Debt Ratios

Liquidity Ratios

Additional Ratios
Assets to Sales

Current Debt/Total Assets

153%

122%

81%

n.a

Acid Test

0.34

0.40

0.66

n.a

Sales/Net Worth

0.00

0.00

20.19

n.a

Dividend Payout

0.00

0.00

0.00

n.a