GroupShare LLC Business Plan - storage.googleapis.comstorage.googleapis.com/wzukusers/user-16635534/... · GroupShare LLC Business Plan 4 GroupShare LLC Business Plan Executive Summary

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Ali Abbasi

Shiny Chacko

George Quintana

Karla Santana

DeVry University

MGMT600 – Business Seminar Planning

Professor Bonnie Rucks

4/21/2015

GroupShare LLC

Business Plan

GroupShare LLC Business Plan

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Table of Contents

Executive Summary ................................................................................................................................ 4

Industry Analysis..................................................................................................................................... 6

Industry Review ...................................................................................................................................... 6

Figure 1.1: Software Publishing Industry Structure........................................................................... 6

Figure 1.2: Software Publishing Industry Growth (2015-2020) ......................................................... 7

Product Segmentation .............................................................................................................................. 7

Figure 1.3: Software Publishing Industry Products and Services Segmentation (2014) ...................... 8

Market Segmentation............................................................................................................................... 8

Figure 1.4: Major Market Segmentation (2014) ................................................................................ 9

Regulation Review and Legal Concerns ................................................................................................. 10

Competitive Analysis ............................................................................................................................ 11

Figure 1.5: Software Publishing Major Players ............................................................................... 12

SWOT Analysis .................................................................................................................................... 13

Marketing Plan ...................................................................................................................................... 16

Product and Service concept .................................................................................................................. 16

Target market and Segmentation............................................................................................................ 17

Future Market Opportunity .................................................................................................................... 18

Value Proposition .................................................................................................................................. 19

Pricing Strategy ..................................................................................................................................... 20

Sales and Marketing Strategy ................................................................................................................ 22

Operations Plan ..................................................................................................................................... 25

Day-to-Day Operations.......................................................................................................................... 25

Facilities and Equipment Plan ................................................................................................................ 26

Project Management Plan ...................................................................................................................... 27

Technology Plan.................................................................................................................................... 37

Cost Table for Technology:............................................................................................................ 38

Human Resources .................................................................................................................................. 39

Management Team ................................................................................................................................ 44

Organization Chart ................................................................................................................................ 46

Management Team Gaps ....................................................................................................................... 46

Financial Plan........................................................................................................................................ 47

Start-up funding .................................................................................................................................... 47


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Use of Funds ......................................................................................................................................... 48

Sales Forecast........................................................................................................................................ 50

Cash Flow ............................................................................................................................................. 53

Balance sheet ........................................................................................................................................ 54

Income statement................................................................................................................................... 56

Break-even analysis ............................................................................................................................... 58

Business ratio ........................................................................................................................................ 60

Valuation of 5 years .............................................................................................................................. 61

Exit strategy .......................................................................................................................................... 62

Appendices............................................................................................................................................ 63

Appendix A: Illinois Limited Liability Company Act – Articles of Organization Form LLC-5.5 ............ 63

Appendix B: Illinois Application to Adopt an Assumed Name - Form LLC-1.20 ................................... 64

Appendix C: Illinois Business Registration Application – Form REG-1 ................................................. 65

Appendix D: .......................................................................................................................................... 66

Appendix E: .......................................................................................................................................... 69

Appendix F: .......................................................................................................................................... 70

Sales Forecast ................................................................................................................................ 70

Cash Flow ..................................................................................................................................... 70

Balance Sheet ................................................................................................................................ 73

Income Statement: ......................................................................................................................... 77

References............................................................................................................................................. 82


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Executive Summary

GroupShare LLC is cloud-based software that enables professional business users to

share and manage files easily and securely. Located in the heart of Chicago right off of the

famous Wacker Drive, GroupShare LLC is owned and managed by four business partners: Ali

Abbasi, Shiny Chacko, George Quintana, and Karla Santana. GroupShare LLC intends on

opening its doors on November 1, 2015 and will run its business on a twenty-four hour basis.

The software publishing industry has considerably grown over the technological

revolution through business and consumers usage of software products and services. With the

rise in popularity of web-based software and increased mobile usage has created a demand for

complex and secure software products. It is important to note during the formation of any

business how related industrial products and services are segmented. The majority of the industry

consists of application software publishing (36.3%) which can be defined as any program that is

specifically designed for the end-user to run specific applications including graphics, databases,

games, etc. The second-largest segment of the software publishing industry is that of system

software (33.0%). This segment includes any software that is a part of an operating system,

hardware control, and various application platforms. The third-largest products and services

segmentation is the category of other at 19.2%. The term ‘other’ may refer to any customized

application including those used for education, healthcare, transportation, etc.

GroupShare LLC is introducing cloud-based software for professional users in the

marketplace. The creation of this platform is to fill a need that has been left unaddressed.


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Professional users need one place to collaborate and complete business initiatives. GroupShare

LLC platform is the answer. It is a one stop place where project tracking, files and

communications can be housed.

As previously noted, the company will be located in the heart of the city of Chicago on

Wacker Drive. This will be a centralized location where all the daily operations will take place.

The rented office will be 2,800 square foot located on the ground floor. For employee and

customer convenience, the location of the office will be readily accessible by public

transportation. Management of GroupShare LLC will include four members who bring certain

areas of expertise to the business and those were being the Vice Presidents. Management

members are compensated on off net profit margin set at 10%. There will be eleven other

employees, who will be working at the company office on a rotational-shift basis.

The company’s exit strategy within the first five years ending 2019 includes paying off

the company’s bank loan, selling to larger competitors, and splitting the profits between the

company’s four founders. They will use the comparable approach to compare the company to

other companies in the same market in order to determine how much the company is worth. The

return on investment for the four founders is significantly high. Since GroupShare LLC only

acquired a small business loan to startup the company and did not offer investment options to the

public, it will be easier for GroupShare LLC to exit the market at any time they desire.

GroupShare LLC must repay the small business loan as well as pay all expenses and production

expenses before they can take action and close the business. Since GroupShare is a Limited

Liability Company and none of the owners would be liable for any liabilities that the company

cannot pay. This Limited Liability Company can be sold off to larger competitors and the four

founders can take the share they receive and forward ownership to the new company.


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Industry Analysis

Industry Review

GroupShare LLC is a technology-based company that was founded right in the heart of

Chicago. Specifically speaking, this company develops and distributes cloud-based software with

which customers can store, edit, and share file systems. This software will be distributed to its

customers via licensing agreements which will allow the use exclusive access to use on personal

or company computers. By this definition, this company is considered to be included in the

software publishing industry as defined by IBISWorld Industry Report 51121 (Kahn, 2014).

The software publishing industry has considerably grown over the technological

revolution through business and consumers usage of software products and services. With the

rise in popularity of web-based software and increased mobile usage has created a demand for

complex and secure software products. At a glance, the IBISWorld report breaks down the

industry structure into a variety of categories followed by their respective status in the industry.

This industry’s structure is shown below in Figure 1.1; it is important to note that these structure

categories are in no particular order nor does color represent any particular status.

Figure 1.1: Software Publishing Industry Structure

Life Cycle Stage Growth Regulation Level Light

Revenue Volatility Medium Technology Change High

Capital Intensity Low Barriers to Entry Medium

Industry Assistance Low Industry Globalization High

Concentration Level Low Competition Level High

According to the IBISWorld report, industry revenue is expected to increase from 2009-

2014 at a rate of 5.2% totaling $196.17 billion in revenue. This coincides with the data provided


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by the IBISWorld report showing that the Individual Voluntary Agreement (IVA) for the

industry totaling $72.16 billion and a cost of $58.94 billion in total wages earned during 2014.

Other important industry financial-related information can be found on the IBISWorld report’s

Key Ratios chart including: IVA/Revenue = 36.8%, Imports/Exports 0.0%, and

Employees/Establishment = 47.1%. Figure 1.2 below shows the projected revenue over the next

five years of growth:

Figure 1.2: Software Publishing Industry Growth (2015-2020)

Year Revenue ($

billion)

Growth %

2015 $204.49 billion 4.2%

2016 $212.60 billion 4.0%

2017 $220.78 billion 3.8%

2018 $224.71 billion 1.8%

2019 $231.70 billion 3.1%

2020 $238.74 billion 3.0%

Product Segmentation

It is important to note during the formation of any business how related industrial

products and services are segmented. Figure 1.3 below is a snapshot of a segmentation pie chart

as shown in the IBISWorld Report for software publishing. The majority of the industry consists

of application software publishing (36.3%) which can be defined as any program that is

specifically designed for the end-user to run specific applications including graphics, databases,


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games, etc. Furthermore, this segment can be broken down even further by revenue type

including home use applications (50.0%), cross-country application software (30.0%), and

vertical market/utilities application software (20.0%). The second-largest segment of the

software publishing industry is that of system software (33.0%). This segment includes any

software that is a part of an operating system, hardware control, and various application

platforms. The third-largest products and services segmentation is the category of other at 19.2%.

The term ‘other’ may refer to any customized application including those used for education,

healthcare, transportation, etc.

Figure 1.3: Software Publishing Industry Products and Services Segmentation (2014)

Market Segmentation

As with product and service segmentation, market segmentation breaks down a broad

target market into subsets of businesses and consumers that have common demands. Figure 1.4

below shows the major market segmentation breakdown for the software production industry and


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is broken down into three segments: business (73.4%), household consumers (16.7%), and

government (9.9%). Businesses require various operating systems and application software in

order to become more productive as well as be able to cater to their specific business

environments. Security threats are also a constant problem to virtually every business and it is

vital that they receive continual upgrades in software to help prevent against hacks.

According to Schoemaker (2012), businesses that want to gain a competitive advantage

must understand how their organizational structure can be improved upon. Schoemaker’s

strategy includes developing a strategic vision to include the usage of software and other

peripherals that can be used to gain a competitive advantage. Both businesses and consumers

may choose to upgrade their existing software or acquire newly-designed software depending on

their demand. However, they may also choose to delay an upgrade if the change in software is

marginally better; business and consumers require significant changes to consider upgrading

software.

Figure 1.4: Major Market Segmentation (2014)


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Regulation Review and Legal Concerns

In order to fully understand all regulations, laws, and other legal concerns the company

must be formed within the state of Illinois. GroupShare is a Limited Liability Company (LLC)

and must be registered as such. According to the Illinois Security of Sate Business Services, in

order to organize an LLC company one must complete and submit LLC-5.5 titled Articles of

Organization with the Secretary of State Department of Business Services and can be located in

Appendix A at the end of this report. The State of Illinois has defined the procedure for this form

and is a relatively simple process to complete. The filing fee for this application is $500 and must

be mailed to the Illinois Secretary of State Department of Business Services, LLC Division

located in Springfield, IL. Because GroupShare will place itself onto marketing materials, an

additional form is needed labeled the Illinois Application to Adopt an Assumed Name (Appendix

B).

The next step in the legal process is to appoint a registered agent that can be either an

individual or business entity that will accept all legal papers on behalf of the LLC. They must

reside in the state of Illinois or be an authorized and registered corporation that is able to do

business in the state. After an agent is established, the business must register itself with the

county clerk’s office and the Illinois Department of Revenue. This can be done through the form

labeled Illinois Business Registration Application, REG-1 (Appendix C).

There is a fair amount of regulation and policy surrounding the software publishing

industry primarily based upon proprietary technology. As previously mentioned, all companies

must be able to protect their assets through the usage of patents, trademarks, copyrights,


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contracts, etc. Should any company assets become lost or stolen, the company’s credibility goes

down resulting a loss of their competitive advantage.

According the IBISWorld Report, the Sherman Antitrust Act, the Wilson Act, the

Robinson-Patman Act, and many other regulations have been passed by Congress to regulate

unfair competition. In addition to these federal laws, there are many state antitrust laws that best

practices are held between consumers and businesses. US copyright laws prohibit copyright

software from unauthorized usage, production, display, or any form of reproduction. However,

the US Fair Use Doctrine allows citizens to quote from copyright-protected material depending

on the nature of its use. One more Federal law worth mentioning is the No Electronic Theft Act

of 1997 which allows for criminal persecution of any persons who commit infringement upon

computer programs and software. Finally, there are international laws that establish rules for the

protection of any works including copyright material. These are established by the World

Intellectual Property Organization (WIPO) as part of the Berne Convention for the Protection of

Literacy and Artistic Works as well as the WIPO Copyright Treaty of 1996

Competitive Analysis

As previously mentioned the software publishing industry holds combined annual

revenue of $196.17 billion as of 2014. Another key statistic in this industry data is the number of

establishments and enterprises that are established in the United States and the figure are 8,545

and 5,196, respectively; this is about a 0.7% decline annual average since 2009. Along with these

numbers are the 402,849 employed workers within these establishments; this is an 8.9% increase

since 2009. These numbers lead to the conclusion that competition in this industry is high with

an increasing trend.


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The software publishing industry has a low level of market share as well with the top

three major players of Microsoft, Oracle, and International Business Machines (IBM)

Corporations accounting for 30.5% of revenues earned combined as shown in Figure 1.5 below.

Despite the decline in number of enterprises as mentioned previously, market revenues have

steadily increased at an average rate of 5.2% over the same time period. This is due to the fact

that larger software publishers have been targeting smaller companies and purchasing

acquisitions, products, and patent portfolios. This enables the larger companies to gain more

market share, increase customer base, and utilize new software technologies, etc. for which

Microsoft has the highest market share of 19.5%.

Figure 1.5: Software Publishing Major Players

The basis of competition varies significantly depending upon the target market. Such an

example of this is retail software which has fearsome competition. Larger companies such as

Microsoft and IBM have many success with retail for which they profit greatly. This is primarily

due to their ability to advertise and distribute their products cheaply; however with the increase

usage of the internet many smaller companies are now able to compete on a similar scale.

Another threat to retail-based software is the development of open-source software with which

the public can contribute to the available code and is then redistributed freely.

The second major type of competitive software is enterprise software. There is a

systematic inefficiency which includes the fact that customers find it difficult to compare


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competitor prices directly. As mentioned that larger companies are purchasing smaller ones

resulting in an overlap of products that are unintelligible. These companies have the advantage of

placing significant constraints that rule out smaller and open-source competitors. Also, smaller

companies do not have the ability to offer a significant amount of support contracts including

backing them with a support staff. The enterprise market also competes in legal battles on a

regular basis through lawsuits and patent infringements.

The third type of competitive software is that which comes from external companies. In

today’s technological world, the term ‘cloud computing’ is an up-and-coming term making its

way into everyday lives at home and at the office? Because cloud computing has become so

successful, there is an emerging source of competition. GroupShare faces competition with the

well-established Google Docs and DropBox not to mention the other major players of Microsoft,

Oracle, IBM and the like.

SWOT Analysis

The following is a situational analysis that is specific to GroupShare in order to help

identify key strengths, weaknesses, opportunities, and threats (SWOT).

Strengths

Industry is growing expected to increase at an average rate of 4.6%. This is higher

than the GDP’s expected annual growth rate of 2.5% over the same period of

time. This allows GroupShare to foresee a positive trend in business growth and

promote a promising start to the company.

Many companies have shared computer resources. The company can maximize

cost savings by not wasting capital on costly computing power and allowing more

efficient/affordable computer resources.

Entry level is easy and startup costs are lowering. Although the company will be

licensing its software, it can also allow for an all-inclusive package included with


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an affordable subscription fees. GroupShare can gain market share by offering

attractive pricing options from the individual to larger businesses.

With the increasing number of mobile users and applications, cloud-based

software companies are becoming more popular. Data can be stored via the cloud

and can travel virtually anywhere and can be accessed at any time which not only

is an advantage for the users of GroupShare but the reduction of database storage

capacity as well.

Weaknesses

Little to no assistance from federal, state, or local governments is given to any

company in this industry. Most companies must finance their companies through

investors, venture capital groups, and other sources of funding. GroupShare will

mostly be funded via personal investment with some external investment in order

to establish credit for future possible expansion opportunities.

The global economy and accessibility to software available in other countries is

easier with the usage of the internet therefore increasing competition. Many

software companies are taking advantage of cloud-based computing that can be

further influenced by global demand. Although GroupShare will be based in the

United States, GroupShare can be adapted by other countries easily as part a long-

term business strategy.

Data control can also be considered a weakness in that meets all legal and

regulatory requirements. If the control of data is lost at any point the business can

lose a significant amount of critical data. As mentioned, GroupShare will be

hiring a highly-rated third party software company that guarantees control over all

company and customer data.

Opportunities

Both software and hardware are ever-increasing in their usage during the

technological revolution. Opportunities will continue to present themselves for a

long time and as in industry growth, GroupShare can take advantage of these

future opportunities.

Agile and flexible systems. Smaller companies and computing systems are easier

to move into a cloud-based system. GroupShare can include these agile and

flexible systems into a variety of platforms useful to all users whether large or

small.

The legal environment of cloud-based software companies such as GroupShare

has had an increasing amount of laws and regulations that prevent from fraud,

copyright infringement, theft, and other technology-related crimes.


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Threats

Data security is by far the largest threat to any software-based company with an ever-

presence of data hacks, information leaks, etc. Although there are laws in place that

defer theft and help prevent crime, it almost seems inevitable that a data breech is

bound to happen. It is crucial that GroupShare partners with a secure and high-rated

company that guarantees data safety and has experience in the industry. The company

will also house backup servers in their office to ensure that no data is ever lost.

Although the industry itself has an easy entry point, there is an increasing amount of

smaller companies being procured by larger ones increasing their market share.

Microsoft, Oracle, and IBM are among the top competitors with about a third of the

market share. These companies not only produce software but hardware and

peripherals that further promote their products and services. GroupShare LLC is

certain that with a solid business and marketing plan that it will continue to have a

competitive advantage and uniqueness over other companies.

Three major players control about 30% of market share. These larger systems have

access to superior products, added experience, cheaper operational costs, etc.


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Marketing Plan

Product and Service concept

GroupShare LLC is introducing cloud-based software for professional users in the

marketplace. The creation of this platform is to fill a need that has been left unaddressed.

Professional users need one place to collaborate and complete business initiatives. GroupShare

LLC platform is the answer. It is a one stop place where project tracking, files and

communications can be housed.

The platform will consist of several programs that can be synced into one area for ease of

use and reference. Each user/license will be given access via login and password. By accessing

the platform with this login, each user will be tagged to several projects that will be occurring

simultaneously. The layout of the platform can be customized by the company to fit their needs.

Some of the features will include:

Project name field

Number of participants

A project timeline

File storage area

Communications area

Two areas with features worth noting are file storage and the communications. In file

storage, AutoSaving is a key feature to ensure multiple users can access file at any given time

and all changes are saved automatically. The platform will have the capability to open and edit

any Microsoft Office products.

The communications area is unique to GroupShare LLC platform. Most competitors in

the marketplace have two or more programs that sync different types of emails. This platform


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will be compatible with both public email server like Google or yahoo and exchange server like

Microsoft Outlook. All communications are stored in this area which eliminates the need of

tracking emails in other areas. A key feature in this area is the ability to setup email notifications

to alert the user when there are changes occurring in the platform.

In the marketplace today, completion of project for professional users is accomplished by

using several types of software. For example, project managers have programs like Microsoft

Project to build timelines with milestones and slack time. They can assign individuals

responsible to complete each task. The files corresponding to specific projects are either emailed

or shared using flash drive. Then each individual proceeds to save these files on their own drives.

Using different programs and passing files back and forth between individuals makes this

process very lengthy and prone to miscommunications. Communications between individuals are

conducted via email or phone calls. Technological advancements are rapid and there is a better

option for professional users.

Target market and Segmentation

The primary focus for the software launch will be mid-size businesses that have 100 or

more employees. GroupShare LLC’s headquarters will be based in Chicago, IL. Target market

will be narrowed to Illinois with plans of expansion in year two and three. According to Inc.

magazine, there are at least 49 mid-size companies in Illinois. Complete list of these companies

can be found in Appendix D. On average, these companies’ employ 78 employees, with annual

revenue of $42.76 million and an average growth rate of 387%. The Illinois market is very

prosperous and an ideal segment to launch this software. According to Chicagobusiness.com,

Chicago is considered the fastest growing city as of 2014 with 95 companies listed on Forbes.


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This is a major advantage for GroupShare LLC because each business conversion can have a

personal touch. Sales reps can setup meeting with the head of IT and partake in the hands-on

training for employees.

GroupShare LLC platform was shared with a potential test market to gain feedback and

interest. The senior management team built a sample platform to give the individuals ‘involved a

glimpse of what the layout would look like. This sample layout can be viewed in Appendix E.

The survey was conducted at a Midwest company who employed 5000 employees. The sample

population included marketing and 22 product management divisions. The response from

majority was enthusiasm and support to launch the software. Along with positive feedback, two

major concerns were remote accessibility via laptop or mobile devices, and the ease of use.

These two concerns are in the forefront of the creation of software. The platform addresses these

concerns and much more. Professional users will invest in software based on the simple aspect of

getting their jobs done faster.

Future Market Opportunity

GroupShare LLC plans to expand beyond businesses and offer a software program to the

educational market with primary focus on Illinois. According to Collegestats.org, there are 314

colleges and universities in Illinois. Below are the top five largest colleges worth noting:


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Each of these colleges and universities offer distant learning to their students. GroupShare LLC

will target the online classes for the first rollout. Each university or college can buy the licenses

for each student attending online course. The license fee can be added to the technology fees for

the course. The platform can be customized to add a link to additional programs like Turnitin and

Dropbox. Like the professional users in the business setting, collaboration can be nurtured at the

college level.

Value Proposition

Results from the survey conducted showed that most of the work was done in teams.

Teamwork is very painful if there is a lack of communication or clear direction. The survey

showed that employees are very interested in this platform when sharing information and

delegate accountability to each member. Individuals who took this survey voiced concerns about

lack of visual on project progress and misplacement of files related to the project. Majority of the

employees were Product Managers, who also emphasized the importance of accessibility to the

platform and securing content.


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GroupShare LLC’s platform takes collaboration to the next level. The value of the

software is that there is one place for all interaction with notification for members. Instant

accessibility along with the editing of files is part of this platform. Tracking of files and the

ability to view the most up to date versions is another benefit. Hence, the value proposition to the

users is one place to gather, collaborate, and increase bottom line.

GroupShare LLC is very different from the competitors and has the competitive edge

because the company is offering a unique software program into the marketplace. Most software

that exists today has pieces of those capabilities but do not offer an all-inclusive option.

GroupShare LLC will change the negative connotation of teamwork and be the advisors of team

nurturing and collaboration.

Pricing Strategy

GroupShare LLC is offering software into the marketplace for business professionals. It

is license based software where each user will buy the license to use this platform. Most of the

cloud based programs are priced out in an enterprise manner for business. Prices in the market

range from $200 per month for single applications to $6,000 for complete applications that are

cloud-based like SharePoint. According to Capterra.com below is the very popular CRM

application that is priced by user. For faster and more features, it can cost companies up to $300

per month per user.


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GroupShare LLC plans to sell license on per user and per month billing basis. There is a

30-Day free trial where businesses can evaluate the software. Most cloud-based companies only

offer a 10-day period. As part of the new business conversion, on-site software installers will be

present. This will ensure a successful rollout and smooth integration into existing servers and

programs. This is a unique strategy because most of the competitors offer online support during

launch and maintenance periods. GroupShare, LLC will offer licenses for $600 per month per

user for 200GB of data. The number of servers is included in the price of the license. The pricing

strategy is very competitive since most competitors charge per server fees up to $7,000 annually.

To control the licenses, each user is given a username and password along with a user

identification number (ID). These user ID’s will be managed internally to ensure proper

distribution of the licenses. In excess to the per user license fees, an upgrade and yearly audit of

the software will be charged as an annual fee of $10,000. This audit and upgrade price also gives

GroupShare, LLC the advantage because audit can cost millions of dollars to a company with

$1,000 or $2,000 per user compliant fees.


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Revenue projections for the first year will include the following factors. On average, each

business has an average of 78 employees. If a company buys the license for one third of those

employees, it will generate total revenue of approximately $190,000 annually. For the first year,

the sales goal is to gain 5 businesses which will generate $990,000 annually. This is

approximately 90% of the first year budget.

Sales and Marketing Strategy

The main message that GroupShare LLC will carry is:

Collaboration made easy as a pie

Why struggle to keep up with projects and get everyone engaged? Feeling lost and not sure

which part you are responsible for? Is it hard to keep up with communications and find all the

files needed to complete a project? Join the GroupShare LLC collaboration platform along with

thousands of others and get the project completed at an ease. Everything you need is at your

fingertips.

Dare to prove us otherwise?

GroupShare LLC will start the launch with communications in business articles that are

already targeted for this segment. Google will be the other source to create awareness to the

software. To advertise on BusinessWeekit will cost approximately $75,000 for a full page ad.

This is not feasible to spend in the first year. As a rule of thumb, 20% of project earnings should

only be spend on advertising. GroupShare LLC has approximately $198,000 dollars that is

allocated to the advertising budget. To advertise on Google, GroupShare LLC will choose the

CPC model. By using this model to advertise and build brand image, the cost is minimal. Google

charges companies by the click using Ad words. According to Penna Powers, on average a


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company can choose 50,000 keywords that they predict will be searched for. The average most

companies will pay is $1 to $2 per click. Most start-up companies use this method to build

awareness and start an online campaign. LinkedIn is another online avenue that will be used to

advertise. Using this application, GroupShare can reach the business professionals who are

already working in the target market.

Another marketing avenue will be to initiate a direct mail campaign to manufacturing

companies. Manufacturing companies have several departments that work together and

GroupShare LLC’s management team feels that these types of companies are going to be the

majority of the customer base. Targeting IT managers and CEOs with the direct mail campaign

will ensure successful awareness.

Lastly GroupShare will use radio as a way of advertising to reach the target market. It

would cost approximately four hundred dollars for a thirty second commercial that is going to

run three days a week and four times a day. The commercials will run to coincide with traffic

patterns when most people are in their car.

For the first two months after inception, conducting meeting with these individuals to

rollout the software launch will be critical. One advantage GroupShare LLC has is the local

presence which will appeal to the potential clients along with hands on support. For a SMART

goal: GroupShare LLC is expecting to build awareness in at least five companies after the first

month of inception.


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Below is the budget plan by year:

Annual cost

Source 2015 2016 Retention

LinkedIn $ 15,777 $ 20,250 20%

Google $ 42,072 $ 54,000 25%

Collateral $ 696 $ 696 15%

Radio $ 139,008 $ 139,008 10%

Total Cost $ 197,553 $ 213,954


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Operations Plan

Day-to-Day Operations

GroupShare LLC is a company that will cater the needs of professional users in the

business market. The company will be located at 311 South Wacker Drive, IL 60606. This will

be a centralized location where all the daily operations will take place. The daily operation will

be run by 11 employees and four management team personnel.

At GroupShare LLC, the goal is to provide the best service and support for customers. To

accomplish high level of service, the company will run a 24/7 technical customer service line to

handle any service or technological issues. The service and technology related issues will be

handled by a team of experienced and highly trained individuals in the field. Each team member

will be required to take an active role in the sales progression of the company. Clear and concise

expectations will be communicated to ensure cohesiveness in the workplace. Listed below are

the six steps necessary to accomplish daily operational activities:

Personal development

Communication, language and literacy

Problem solving, reasoning and numeracy

Knowledge and understanding of the field

Physical development

Creative development

These comprehensive steps will ensure that all employees, including the management team, are

working on common strategic goals to increase the profitability of GroupShare LLC.


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Facilities and Equipment Plan

As previously noted, GroupShare LLC will be located at 311 South Wacker Drive, IL

60606. The rented office will be 2,800 square foot located on the ground floor. For employee and

customer convenience, the location of the office will be readily accessible by public

transportation. This large area will allow staff members to adequately handle all aspects of the

business. The layout of the office space will be determined based on achieving maximum

optimal results. For employee and customer convenience, the location of the office will be

readily accessible by public transportation.

Some key features of this location will include large-electronic capacity for servers, LAN

lines, high-speed data transmission (T1 and T3) lines for internet, same-level restrooms, office


27

break area, and 24/7 accessibility. These features are necessary in order for GroupShare LLC to

provide continuous customer support and accommodate the business’s daily operations.

Project Management Plan

Overview

GroupShare LLC has been approved to move forward with the “New Office” project,

which will result in a usable office space where the company can operate. Because of the nature

of starting a new company, this project is independent and will not interfere with any other

objectives of the organization. This project is for a long-term setup and usage of the new office

space will generate sales, revenue and retain new customers. The highest constraint of the project

is the scheduled opening in six months, or by November 1, 2015. All major tasks and

deliverables will be completed according to the project scope statement and quality standards

before considered to be operational.

Project Scope Management

The scope of the GroupShare LLC New Office project is to have a fully-operational new

office space that will control all information technology and electronic equipment in-house.

Although the company is outsourcing a majority of its technological needs, it will still house

backup data servers and contain office equipment for the staff to use. A new office space has to

be procured within a six month schedule at a lease cost not to exceed $5,375 per month. This

project does not include any changes to standard operating systems to run database servers and

company software.


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Project Milestones

The list below contains all of the major milestones for the GroupShare LLC New Office

project. This list is comprised of only high-level milestones such as budget procurement and

final office inspection. There may be smaller milestones that are not included in this list however

they will be included in the project schedule and work breakdown structure (WBS). If any

project delay occurs, that affect scope, schedule, budget, or quality, the project manager must be

immediately notified and proactive measures must be taken to manage them. Changes to

milestones or project dates must also be communicated to and managed by the project manager.

Milestone Description Date

Kickoff Meeting Project initiation meeting will review project scope,

budget, and schedule with all company team members

5/1/15

Gain project funding for

starting operations

The purpose of procuring funding from investors is to be

able to finance the startup of the business

5/7/15

Scout for new office

space

New office space will be required to run company

operations

5/15/15

Begin construction Construction includes minor cosmetic change to office

space including installation of cubicles and various office

equipment

6/1/15

Begin electrical work Electrical work must be completed in order to house the

company servers as well as the office equipment

7/17/15

Install equipment All equipment including office furniture, hardware

equipment, company computers, etc.

8/18/15


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Final inspection Final inspection for all construction, electrical work, and

equipment must be completed

10/21/15

Opening of new

business

Opening of new office space and business start 11/1/15

First sale Company first sale in business 11/15/15

Risk Management

Identification of key risk decisions in a project is critical to aid management in making

strategic business decisions. Every project has a level of uncertainty that deals with unknown-

unknowns and can involve a probability of loss in project cost, quality of work, and schedule.

Making key risk decisions should help identify, quantify, and absorb risk where possible. An

organization’s ability to identify, quantify, and absorb risk will often identify possible outcomes

that may or may not be tolerated by the project team. In the GroupShare LLC New Office

project, there are three severe risks that have the same high level of probability and impact.

These risks are: equipment breakdown and maintenance problems, late delivery of construction

materials, and failure to comply with audits, permits, and licenses. The following paragraphs

explain the key risk decisions to be made with regard to these severe risks.

The risk of equipment breakdown and maintenance problem is unfortunately unpredictable

and has a major effect on a project finishing on time. The plan to ensure this risk does not

negatively affect the project is to transfer this risk to the subcontractor that provides the

equipment. The company and contractor agreement will clearly state a contingency plan. This

will include access to back up equipment on hand in case of failure. The expense will be


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absorbed by the contractors to include fixed price agreement. While transferring the risk shifts

the responsibility or ownership to a third party, this does not however eliminate the risk from

occurring.

The second severe risk is the late delivery of construction materials. The project manager

will mitigate this risk by ensuring that materials are ordered ahead of time to account for any

unforeseen and unexpected delays. Suppliers that maintain larger local stocks of needed items

will be used as well as properly planning for in-stock items whenever possible to avoid lead

times when ordering.

The third severe risk is failure to comply with permits, licenses, and audits. The

implemented plan will be to ensure all required paperwork is filed and approved prior to starting

the project. Identifying that there is a possibility certain items may not be approved, the company

will do its due diligence to ensure all subcontractors’ contracts and/or proposals specify

compliance with state and government laws.

Quality Management

The following is a list of the project’s deliverables and the quality standard for each:

New IT Workstations: New workstations will be provided for the employees and

managers to perform tasks such as read email, perform online training, and analyze

various reports. Each new workstation should be in working condition and with the

software/hardware specifications that are set and ordered by the systems analyst. These

workstations will also have a Windows 8.1 operating system previously installed with

customized company software to allow easy employee access.


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Database Servers: Database servers will be connected to all workstations to record and

network company data on a 24-hour basis. Quality standards for new workstations

include proper working order, and meet minimum system requirements as set by the

systems analyst. Servers will also be pre-loaded with the SQL Server 2013 Database

Engine as well as .NET Framework 4.0 Data Quality Client.

IT Hardware Equipment: All equipment should be in working order and pre-loaded

with the customized company software as agreed upon by GroupShare LLC and the

vendor. Each piece of equipment will also come with its own charging station as well as

backup battery. No equipment should be physically broken or have been previously used.

Technical Support: A new area specified for technical support will allow the IT staff to

perform maintenance on workstations and store equipment. Human resources will

collaborate with the IT management staff to train new hires for these positions.

Candidates are required to meet the minimum application requirements as set by the

department such as having veracious certificates and work experience. HR will ensure

that the technical support staff properly fill out all new applications, pass background

checks, provide proper work documentation, and pass new employee training.

New Facility: The new facility will include new amenities such as new cubicles, desks,

office equipment, and break area. Each of these items in the facility must be in new

condition and to the specifications ordered by HR. No equipment is to be torn or broken


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upon delivery. All furniture must be fully assembled and considered safe to use before

actual usage by any employee.

Project Deliverable Quality Monitoring

George Quintana, Lead Project Manager, is in charge of overseeing the quality

management standards of the project. His primary role will be to implement quality management

standards (QMS) tools and standardization policies into each of the deliverables listed above. As

each deliverable is being completed, Mr. Quintana will monitor and record each of the quality

speciation and compile the information into a bi-weekly report for the project team.

Project Deliverable Quality Reporting

The bi-weekly report as mentioned in the above section will be compiled using a pre-

formatted quality status report as created by Mr. Quintana. This report will be delivered as a hard

copy to attendees of the project status meetings. For any employee not attending this meeting,

the report will be emailed to them for their review. All quality reporting will be filed along with

all of the official project paperwork.

Project Deliverable Quality Discrepancy Decisions

Should any of the quality requirements not be met, Mr. Quintana has put together a report

that includes follow-up actions for each. Generally the person(s) responsible for completing the

tasks is the same person that will be responsible for completing the quality specifications of each

item. Depending on the severity of the lack of quality standards, each item will be assigned a

different color. Red quality requirements are considered to be urgent and need to be addressed

and corrected within 24 hours by the specified owner. Yellow-colored items require attention but


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they can be addressed and competed within a 72 hour completion period. Green items are tasks

that meet quality standards and are ready for use.

Communications Management

All project team communication will be broken down in a liner company structure. Each

level of the project team, as listed in the above structure, will communicate with each other

among the same level. For example, level three construction workers will mostly be

communicating with other level three construction workers. The reporting structure will be in a

hierarchy fashion where level three team members report to level two team members who in turn

report to level one. Level one communication will include weekly financial, progress,

scheduling, and risk analysis reports. A weekly status meeting will be held between all level one

and two team members to discuss all areas of the project. Level three team members are

responsible for communicating with their level two supervisors on a daily basis.

Financial analysis will be performed by the accounting team on a bi-weekly basis. Any

major changes to budget must be brought up to level one team members and approved by project

sponsor and stakeholders.

The construction progress will be monitored daily by the project management team. Any

major concerns or changes must be recognized and dealt with immediacy according to company

guidelines and procedures. The contract manager is responsible for keeping track of the

construction process daily and must be able to generate the appropriate reports on a daily basis.

The progress of the IT office equipment and hardware/software installation will be

closely monitored by the systems manager on a daily basis. A weekly status report is expected to

be generated to other members of the level one team including the project manager.


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Risk Management

The following is a list of the top five most impactful risks that has been determined by the

project team as well as the response for each:

1. Construction Not Completed On-Time: This is considered to be the top risk as

construction needs to be completed on time so the company can have a new IT

workspace. The construction portion will be closely monitored each week to ensure that

milestones and tasks are completed on time and within budget. Forecasting will be

completed by the project team to determine whether another construction

company/additional resources need to be hired. The project manager will draft a proposal

to GroupShare LLC proposing additional funding should it be needed.

2. Workstations Do Not Work: New workstations will be installed into the office space for

a variety of uses by the company. Such uses include the recording of company data,

analyzing and forecasting sales, and employee/management workstation usage (emails,

hiring, reports, etc.). Because the workstations are of such importance to the company,

the need to be able to operate by the opening date is critical. Additional budgeting has

been reserved for this portion of the project. This will be given to the systems analyst to

allocate, if needed, more technical resources to repair/fix/maintain any problems.

3. Budget Increases via Investors: This risk can be labeled as an opportunity as it can

benefit the project greatly. Although unlikely to occur, the project may receive additional

funds by the project’s investors to push the construction time ahead of schedule. The

funds would be used to hire additional resources for the construction area of the project


35

as this requires the most amount of time. The project team will decide via thorough risk

analysis that if another construction company would be added to handle the electrical

work to finish the project on time.

4. Equipment Failure: New IT equipment might not function properly. This will happen

during the delivery period, which will be towards the end of the project. If the hardware

doesn’t function, the new area will not be fully operational and the opening date would

have to be pushed out. This can cause bigger problems because if the appropriate testing

is not done during the setup process, problems might arise after the opening and will

force the office to shut down. This is likely to happen because the equipment might be

mishandled during the delivery process or even during the setup process. Every

precaution needs to be taken to prevent any damage to the hardware.

5. Failed Inspections: Inspections are important because they ensure that the work being

completed during the projects life cycle is accurate, up to code, and most importantly

safe. During the course of the project, there are several instances in which inspections are

to be made. Inspections are a risk mainly because they can be time consuming, costly,

and can have negative effects on a project’s progress. Although inspections normally take

a day to complete, if anything goes wrong they will need to be completed again. This will

not only be costly for the company but also time consuming to fix. If mistakes are being

made, they will have a negative impact on the project.


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Project Performance

There is a variety of information to collect and record for the project. Such information

will be contained within the record including notebook, charter, review records, meeting note,

status reports, and any other project documentation. All official hard and electronic

documentation will be recorded, documented, and stored with the company’s project portfolio. A

copy of this information will also be kept in file for reference and access for future projects.

Project Closure

This project has a highly-prioritized time constraint and most of the major tasks and

deliverables needs to be completed as part of the closing process. Specifically speaking, all major

construction/electric work needs to be fully competed and safe for the company to use. Other

tasks that must be fully met include passing inspections, painting new space, and installing

workstations and furniture. The company has agreed (should it be deemed necessary by the

project team) that only 85% of the workstations and equipment needs to be setup and operational

by the opening date. This percentage is based upon a survey by the IT team quantifying the

number of units that will allow GroupShare LLC to remain fully operational.

All project information including the documentation listed above will be archived for use

as historical data for future project use. The data and lessons learned will be reviewed by future

project management teams for future projects that are similar in scope. This project is a landmark

for future possible expansion projects of GroupShare LLC. Ultimately, all the information

contained in each project will be filed electronically so that it can easily be accessed by future

project management teams, stakeholders, executives, etc.


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The project’s completion will be completed deliverables that has been given to the

company. A lessons learned session will be held by the project team as well as executive

management staff to review the successes (or failures) of the project. If there are any approved

changes to the schedule or scope, which is to be completed after the project’s due date. This will

be handed over to another project manager that will assist in closing the final portion of the

project. Any resources that are assigned to the project will also be released. The project team will

celebrate the project’s accomplishments with recognition of key and exemplary staff members.

Finally, the entire project team will have a celebration party in the new office space the weekend

before the scheduled completion date.

Technology Plan

The technology for GroupShare LLC has been developed in the spirit of providing a

dynamic and a new competition to competitors. GroupShare LLC plans to install computers for

all of its employees. There will be 11 computers for the 11 employees. There will be one printer,

which will also have fax as well scan in it. There will be a Microsoft office license, which can be

used up to 300 users. There will be 11 desktop telephones for the 11 employees of the company.

GroupShare LLC also has a cloud based server in the technology plan. As it is noted that

comprehensive technology plan is necessary for the successful day to day operations of a

software business. They have chosen a cloud based server, due to its affordable price,

satisfaction rates by users, ease of use. This technology plan will also keep GroupShare LLC

competition with all the competitors in the market.


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Cost Table for Technology:

The technological need for GroupShare LLC is setup similar to most companies that

perform daily operations from an office space. Below is the cost table for Technology for

GroupShare LLC

Items Quantity Cost

Computers 11 $11,000

Printers 1 $2,820

Microsoft office license Up to 300 users $2,250

Data Servers (PaaS) N/A $70,000

Desktop telephones 11 $1,100

TOTAL $138,920

As noted above, each employee will have a computer and telephone at their workstation.

All employees will access one common printer/scanner/fax machine. Each employee will also

have Microsoft Office products installed on their computer. Each telephone will be setup with a

phone line and each computer will have internet connections enabled. Employees will also have

basic office supplies needed to get the everyday functions done. The company has allocated

approximately $500 per month for these types of expenses.


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Human Resources

As a new business, GroupShare LLC will start with minimal employees and overtime

will be assigned to certain employees on an as needed basis.

As a software business, performance of employees is directly linked with the profit and

rating of the business. Planning for HR needs ensures that potential candidates for employment

meet the skills required for the business to succeed. Explained below are the responsibilities of

each position at GroupShare LLC. Also included are the requirements/qualifications for certain

employees who have the greatest impact on the business.

Management

Management of GroupShare LLC will include four members who bring certain areas of

expertise to the business. Their experience and expertise are described in detail in the

management section later in the operational plan. Management members are compensated on off

net profit margin set at 10%.

General Manager

The General Manager of GroupShare LLC should have a Bachelors or Master’s degree

and is required to have experience in software industry. There will be only one General Manager

who will be handling all the company’s activities. All employees will be reporting to this person.

The annual wage for General Manager will be $50,000 annually. This position is responsible for

providing training and professional development opportunities for staff. Other responsibilities

are supporting Internal IT needs; continuous application of process and technical improvements

to lower operational costs while increasing efficiency; ability to plan software and hardware

migrations and upgrades to systems and processes; and comply with state and federal guidelines.


40

This is a very important position at GroupShare LLC; hence there are specific requirements that

this person has to meet.

General Manager with the minimum of these requirements:

Bachelor's degree in software engineering

At least 5 years of experience in software development

Excellent interpersonal and communication abilities.

Ability to serve effectively on related committees.

At least 5 years of experience in Software industry

Excellent supervisory and management skills

Receptionist

Activities consist of greeting clients as they arrive, scheduling future appointments, and

answering phone calls. A positive attitude and demeanor is a must and willingness to assist with

other duties when necessary. The Receptionist position will be a full time job with $30,000 in

compensation annually. This is another position that is very important at GroupShare LLC

because this person is the first point of contact at the customers. Hence there are some specific

requirements that need to be met for this position.

Receptionist with the minimum of these requirements:

Excellent written, verbal, communication and organizational skills

Able to multi-task in a fast paced environment

Computer skills including familiarity with Microsoft Office products

Technical Customer Service Personnel

GroupShare LLC will have 3 technical customer service employees. This position will be

a 24/7. Flexibility for scheduling is taken to consolidation to accommodate employee absence or

time off. This position will be trained in IT and they will have in depth working knowledge in


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software development and improvement. They will be responsible for all the IT needs and will

consult with management team to identify primary contacts for monthly/quarterly fieldwork and

also confirm maintenance of documents and application reviews. They will maintain all

customer user IDs including login and passwords. This position will be compensated $40,000

annually along with a benefit and bonus structure.

Human Resources

Human resource will be responsible for the day-to-day activities which will include

interaction with the employees. They will maintain the confidentiality of sensitive employee

information, payrolls, hiring, firing and benefits of the employees. This position will be involved

in training and development of the sales and marketing employees. Human resource will directly

report to Vice President of Human Resources. The salary for Human Resource will be $40,000

annually.

Junior Marketing

Junior Marketing personnel will have a key position in the company. GroupShare LLC is

a new company and the focus is on marketing to increase brand awareness. This position will be

responsible for all branding and promotional material. This person will also assist with creating

effective marketing strategies. Junior Marketing employee will be paid $30,000 annually.

Sales Personnel

Sales Personnel will directly be reporting to the Director of Marketing and Sales.

GroupShare LLC will hire three sales personnel. Their main role is to handle incoming inquiries

from customers. This position will have set sales goals including quotas, new sales and renewals.

This position’s primary focus is to increase sales by converting new clients. Each sales personnel


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will be paid a base salary of $30,000 annually. They will also receive 5% commission based on

new business.

Junior Accountant

GroupShare LLC will hire only one Junior Accountant. The main responsibilities of

junior accountant will be to perform in-depth reviews of variances compared to forecast, budget

estimation and prior year analysis for both revenue and expense. Additional responsibilities

include: prepare and clearly present business results to management; track daily changes to

revenue and proactively work on maximizing financial results; and gather financial data to create

per month annual revenue and expense projections. Junior accountant will be reporting to Vice

President of Finance. The salary for junior accountant will be $40,000 annually.

Along with the above personnel plan, the Human Resources plan also shows the expected

investments in software industry over the next three years and sales, gross margin and net profit

the company is expected to earn. Below is a chart that shows the correlation between sales, gross

margin and net profit. Following that is the cost and salary budget for employees outlined above.


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Cost and salary budget

ANNUAL SALARY /HR BUDGET

JOB TITLE Employees Annual

Salary

Total

Salary

Tax, Social

Security&

Benefits

Total Cost

GENERAL MANAGER

(GM)

1 $50,000 $50,000 $4,575 $54,575

HUMAN RESOURCES

(HR)

1 $40,000 $40,000 $3,710 $43,710

JUNIOR

ACCOUNTANT

JUNIOR MARKETING

1

1

$40,000

$30,000

$40,000

$30,000

$3,710

$2,845

$43,710

$32,845

SALES PERSONNEL

TECHNICAL

CUSTOMER SERVICE

PERSONNEL

RECEPTIONIST

3

3

1

$30,000

$40,000

$30,000

$90,000

$120,000

$30,000

$8,535

$11,130

$2,412

$98,535

$131,130

$32,412

TOTALS 11 $260,000 $400,000 $36,917 $436,917


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Management Team

The business will be run by the following executive team members:

Shiny Chacko - CEO of GroupShare LLC, Director of Sales and Marketing

Ali Abbasi – Vice President of Human Resources

George Quintana – Vice President of Operations, Information Technology, Project

Management

Karla Santana – Vice President of Finance

Ali Husnain Abbasi – Vice President, VP of Human Resources

Ali has worked as HR intern and held other HR positions. His skills include training and

development, compensation plans and negotiations. Human Resources at GroupShare LLC will

be reporting directly to Ali. He will incorporate his experience in benchmarking similar

businesses to offer an attractive compensation package that will attract and retain excellent

talent. He will use his networking skills to get GroupShare LLC the exposure it will need in the

first year. Ali will control recruiting of employees and terminations. Talent acquisition at

GroupShare LLC will be his one of the responsibility.

Shiny Chacko - CEO of GroupShare LLC and Director Sales and Marketing:

Shiny is the CEO of GroupShare LLC. She is also the head of marketing and sales

department. She has held several positions in the sales and marketing over the last fourteen

years. She brings extensive experience in procuring new customers and increasing bottom line

with sales incentives. She has also held numerous positions in the product management area.

Consistent improvements to product offering and innovative solutions that services the needs of

customers in the marketplace will be a key focus for Shiny. She possesses experience in

enhancing the image and strengthening of brand value proposition into the marketplace. With


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Shiny’s extensive experience in these fields, GroupShare LLC will achieve significant growth in

the marketplace and will be recognized as the innovative leader in communications.

George Quintana – Vice President, VP of Operations, Project Management, and

Information Technology

George Quintana has worked as an Operations Manager for over 4 years at a major

retailer. Skills include daily operations, inventory management, procurement and sales, minor IT

infrastructure maintenance, and customer service. These skills will prove beneficiary to

GroupShare LLC and transition easily into a new operations and project management positions.

George will ensure that daily operations are running smoothly and will properly manage any

operational-related activities and tasks with integrity and maximum effectiveness.

Karla Santana – Vice President, VP of Finance

Karla has been working in the accounting field for over 2 years in a manufacturing

company. Transitioning over to GroupShare LLC, she will be able to incorporate the skills she

has learned throughout the years. She will be able to manage the accounting team and be able to

keep the accounting department on track. She will ensure that all payables are paid on time and

that customers pay as stated in the terms.


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Organization Chart

Management Team Gaps

GroupShare LLC team has all the commitment and dedication but the management team

knows to make profit and to sustain in market wouldn't be that easy. The team also lacks some of

the practical experience in this industry. GroupShare LLC team acknowledges that the gap has to

be covered and sees it as an opportunity. Obtaining market data and intelligence will give the

management team an outside the box mentality to bring innovative solutions to the marketplace.

The management team is also focused on aligning workforce requirements to the company’s

strategic goals and objectives. Every company’s main goal is to minimize its cost and maximize

its profits; GroupShare LLC is also committed to that task. The management team of the

company has a great stake in the company and committed to see it successful.


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Financial Plan

Start-up funding

In order for investors to invest and see the potential of GroupShare LLC the company

must have a comprehensive business plan, as well as financial statements that help project how

the business will grow. According to the IBISWorld, the industry is increasing at a rate of 5.2%

which means $196.17 billion in revenue. (Kahn, 2014) There for, GroupShare LLC has a large

potential in the field. They will be able to grow and expand as years come and will be able to

inject more money into the company.

The company will be able to generate revenue and be able to repay the initial loan they

will request. After paying off that loan, they will be able to introduce investors into the business

and make it easier for them to get a high return on investment. Investors look for a solid

company who has a solid foundation. GroupShare LLC will be able to generate revenue within

the first year and a half.

Financial statements have been provided by GroupShare LLC to prove that they are a

solid company and have a strong market share. You will see the potential that the company has

and what they will do to achieve the revenue they are aiming for. The goal of GroupShare LLC

is to provide companies with great quality software at a lower cost than the competition. By

doing so they will be able to gain more customers and be able to generate more revenue than

higher cost software.


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The company will start with $300,000 which will be a combination of investments from

the founders as well as a small business bank loan. The founders will provide $25,000 each for a

total of $100,000. They will seek the rest $200,000 in a bank loan. The start-up money will be

used to develop the company and get the company ready for business.

The company will acquire a small business loan from the US Small Business Association

(SBA). The SBA will help them find an adequate bank that will work closely with the company.

According to the SBA the interest rate for a small business loan would be 4.5%. (SBA Express).

The loan will be for $200,000 which they estimate would be repaid in 4 years with an annual

4.5% interest rate.

The company will seek a loan because the founders feel that they should have control of

the company as it starts up. They want to be able to build a strong foundation for the company as

well as bring it up without having to jeopardize the investment of others. Later in the future the

company will be open to investors. The potential investors will be able to see the growth that the

company has been able to obtain and see the financial statements that show they are able to gain

from the investment. GroupShare LLC has a strong focus and goal, which is to provide great

software and generate large revenues.

Use of Funds

The initial investment as well the requested funds will be used to purchase equipment, as

well as setting up the company legally. The company will begin the process of starting up in May

they will begin to purchase equipment as well as settling into the new office. The office will be

upgraded to make sure it is ready for the opening date in November of 2015. The office will be

occupied the last 7 months of 2015.


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The company will be generating some revenue in the last 2 months of 2015. That money

will also help towards the payment of the items needed. Most of the revenue would go back into

the company and likely be used in Marketing/Advertising .For the first few months. Below is a

chart showing the dollar amounts and what they will be allocated to.

Item Amount in dollars

Professional Service 74,400

Server 70,000

Equipment purchase 50,000

Lease 37,625

Marketing/ Advertising 30,000

Computers/Printer 13,820

Utilities 9,835

supplies 6,000

Software 2,250

Insurance 1,750

Total 151,280

Professional service will take up most of the funds which will be followed by server that

will be purchased. Professional service is so high because the company will need to hire an

attorney and a CPA to set up the company and form it into a Limited Liability company. CPA’s

and Attorneys charge $200-250 per hour (smallbusiness.com). GroupShare LLC has allocated

for 300 hours of service which is equivalent to 12.5 whole 24 hour days.


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Sales Forecast

In the first month GroupShare LLC plans to sell to at least 2 companies who would be

purchasing 30 licenses each. Below is a projection of the first year profits. GroupShare LLC has

projected a sales growth of 25.2% for each year which is 2.1% monthly. In Appendix A you will

be able to see the sales forecast for the next 5 years and verify that GroupShare LLC has targeted

a 25.2% growth yearly. The growth was determined by the sales plan previously made. Due to

the high level of growth in the market GroupShare LLC believes they can acquire the profits

provided below.

25%

24%

17%

13%

10%

5% 3%

2% 1% 0%

Start-up Allocation

Professional Service

Server

Equipment purchase

Lease

Marketing/ Advertising

Computers/Printer

Utilities

supplies

Software


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The pie chart gives a graphical view on how the gross profits would look like in the next

5 years. The pie chart given is a recap of when the profits are made. In year five you can see that

the company will be making the highest gross profit. The price will continue to be the same but

the amount of software licenses will increase significantly.

FIRST YEAR TOTAL GROSS PROFIT

November 72,540.00

December 83,421.00

January 95,934.00

February 110,324.00

March 126,873.00

April 145,904.00

May 167,789.00

June 192,958.00

July 221,902.00

August 255,187.00

September 293,465.00

October 337,484.00

Total 2,103,781.00


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GroupShare LLC will start-up by obtaining a large company of which they will sell 130

licenses or they can target 2 smaller companies and they can sell 60-70 licenses to. Below you

will see the sales forecast in units for the first year. This again is at growing rate of 15%. In

Appendix A you will find the complete forecast for the first 5 years.

YR1 2,103,780

YR2 11,255,754

YR3 60,221,100

YR4 322,197,948

YR5 1,723,839,609

GROSS PROFIT


53

Cash Flow

The Cash Flow report is a report which shows how much cash was brought in by the

company as well as how much money went out. This report helps determine how much cash is

on hand at the end of each month including all sales and expenses paid out.

GroupShare LLC was able to have a positive ending cash balance on the first month

because the expenses they acquired were less than what they had in cash and loan from the bank.

FIRST YEAR

SALES IN

UNITS

November 130

December 150

January 172

February 198

March 227

April 261

May 301

June 346

July 398

August 457

September 526

October 605

Total 3770


54

As you can see in the month of December the cash balance decreased slightly but that is because

cash disbursement increased. For full detail please view the Cash flow statement on Appendix F.

Balance sheet

At the end of year 5 Group Share LLC will have assets of over 2 billion dollars. The

assets would be mainly based on the accounts receivable. Account receivables come from the

sales that are generated. As you can see GroupShare LLC became very stable within the first 5

years and has grown due to the increase in the market share as well as the customers that

GroupShare LLC has been able to obtain. Below is the Balance sheet for year five. The balance

sheets for the first 4 years could be found in Appendix F.

FIRST YEAR ENDING CASH BALANCE

November 180,335.56

December 175,101.03

January 180,629.24

February 198,544.25

March 230,713.70

April 279,285.39

May 346,729.31

June 435,885.94

July 550,021.87

August 692,893.65

September 868,821.34

October 1,082,773.01

Ending Balance 1,082,773.01


55

Balance Sheet

GroupShare LLC

October 31, 2019

ASSETS

Current Assets

Cash $1,982,808,555

Accounts Receivable $154,465,915

Total Current Assets

$2,137,274,469

Fixed Assets

Equipment $50,000

Computers &

Telecommunications $87,170

(Less Accumulated

Depreciation) $50,000

Total Fixed Assets

$87,170

TOTAL ASSETS

$2,137,361,639

LIABILITIES

Current Liabilities

Income Taxes Due $528,771,023

Total Current Liabilities

$528,771,023

NET WORTH

Paid-In Capital $200,000

Retained Earnings $1,608,390,616

Total Net Worth

$1,608,590,616

TOTAL LIABILITIES AND

NET WORTH $2,137,361,639


56

Income statement

GroupShare LLC was able to project sales for the first five years which help compose an

income statement. The statement can look at how much money is being spent on expenses and

how much profit is being made after accounting for them. The expenses incurred by GroupShare

LLC will be fixed due to the nature that they are accounted for. The expenses help maintain the

working facility, as well as making sure that the company is being protected. By protecting the

company GroupShare LLC has hired an attorney and purchased an insurance policy to help

reduce the liability for any issues that arise. GroupShare LLC does understand that the

probability of inflation and deflation could be a risk but they will be willing to work with it when

the time comes. They will adjust the expenses as well as any rearrange the budget plans. Below

is an income statement for the first year. In Appendix F you will find the Income statement for

all 5 years.


57

INCOME STATEMENT Nov-15 Oct-16 Total for the year

Gross Sales 78,000.00 362,886.53 2,262,130.05

(Commissions) 3,900.00 18,144.33 113,106.50

(Returns and allowances) 1,560.00 7,257.73 45,242.60

Net Sales 72,540.00 337,484.47 2,103,780.95

(Cost of Goods) - - -

GROSS PROFIT 72,540.00 337,484.47 2,103,780.95

EXPENSES - General and Administrative

Salaries and wages 33,337.00 33,337.00 400,044.00

Employee benefits 3,123.08 3,123.08 37,477.00

Payroll taxes 5,000.55 5,000.55 60,006.60

Professional services 6,200.00 6,200.00 74,400.00

Marketing and advertising 15,650.00 15,650.00 187,800.00

Rent 5,375.00 5,375.00 64,500.00

Equipment rental - - -

Maintenance - - -

Depreciation 833.33 833.33 10,000.00

Insurance 250.00 250.00 3,000.00

Telephone service 250.00 250.00 3,000.00

Utilities 1,405.00 1,405.00 16,860.00

Office supplies 500.00 500.00 6,000.00

Postage and shipping 100.00 100.00 1,200.00

Travel 1,000.00 1,000.00 12,000.00

Entertainment 1,000.00 1,000.00 12,000.00

Interest on loans 750.00 589.83 8,044.96

) - - -

- - -

TOTAL EXPENSES 74,773.97 74,613.79 896,332.56

Net income before taxes (2,233.97) 262,870.68 1,207,448.39

Provision for taxes on income - 65,717.67 301,862.10

NET PROFIT (2,233.97) 197,153.01 905,586.29


58

Break-even analysis

Break-even estimates

Year 1 (2015-2016) Monthly Average 80,316.54

Year 2 (2016-2017) Monthly Average 80,552.20

Year 3 (2017-2018) Quarterly Average 243,465.38

Year 4 (2018-2019) Quarterly Average 245,301.14

Year 5 (2019-2020) Annual Average 989,886.52


60

Business ratio

Year 1 (2015-2016) Working Capital Current Ratio Quick Ratio Cash Turnover Debt to Equity Return on Investment Return on Sales Return on Assets

1st Quarter 227158 5.15 5.15 1.11 0.89 0.13 0.11 0.07

2nd Quarter 337316 4.55 4.55 1.14 0.66 0.47 0.41 0.28

3rd Quarter 597610 4.23 4.23 0.97 0.49 0.59 0.62 0.39

4th Quarter 1087127 4.10 4.10 0.82 0.41 0.60 0.75 0.42

Year 2 (2016-2017) 8859034 4.01 4.01 1.27 0.34 1.16 0.92 0.87

Year 3 (2017-2018) 53662340 4.02 4.02 1.12 0.33 1.10 0.98 0.83

Year 4 (2018-2019) 296672418 4.03 4.03 1.09 0.33 1.08 1.00 0.81

Year 5 (2019-2020) 1608503446 4.04 4.04 1.07 0.33 1.07 1.00 0.81


61

Valuation of 5 years

GroupShare LLC has been able to generate steady profits as well as gain more market

share. As shown in the graph below GroupShare LLC has increased net profit by over 200%.

This evaluation of all five years will help the company determine what and how much of

the market it has. Hey will use the comparison valuation to compare to the competition and see

how they compare to them. This will help them valuate the company as a whole.


62

Exit strategy

After viewing the first 5 years of GroupShare LLC and all the revenue they were able to

produce. Return on investment for the 4 founders are significantly high. Since GroupShare LLC

only acquired a small business loan to start-up the company and did not offer investment options

to the public, it will be easier for GroupShare LLC to exit the market at any time they desire.

GroupShare LLC must repay the small business loan as well as pay all expenses and production

expenses before they can take action and close the business.

Since GroupShare is a Limited Liability Company none of the owners would be liable for

any liabilities that the company cannot pay. This Limited Liability Company can be sold off to

larger competitors and the 4 founders can take the share they receive and forward ownership to

the new company.


63

Appendices

Appendix A: Illinois Limited Liability Company Act – Articles of Organization Form LLC-

5.5


64

Appendix B: Illinois Application to Adopt an Assumed Name - Form LLC-1.20


65

Appendix C: Illinois Business Registration Application – Form REG-1


66

Appendix D:

Company Name

Growth

Rate Revenue Market City

Number of

Employees

Paragon Micro 125% $98m IT Services Chicago 61

Ticomix 117% $9.1m IT Services Rockford,

IL

57

Element Solutions 164% $7.7m IT Services Chicago 98

Sphere Consulting 190% $7.3m Software Chicago 100

North Shore Pediatric

Therapy

68% $6m Health Chicago 87

Switchfast Technologies 77% $6.9m IT Services Chicago 67

Protect-A-Bed 46% $52.5m Consumer Products

& Services

Chicago 80

Acquirent 138% $5.7m Business Products

& Services

Chicago 93

Red Frog Events 359% $47.4m Consumer Products

& Services

Chicago 95

Tandem HR 143% $467.6

m

Human Resources Chicago 90

Load Delivered Logistics 247% $44.5m Logistics &

Transportation

Chicago 60

RKON Technologies 118% $40.4m IT Services Chicago 60

Devbridge Group 328% $4.1m Software Chicago 77

Neighborhood Loans 261% $3m Financial Services Chicago 70

Honey-Can-Do 120% $38.6m Consumer Products

& Services

Chicago 85

Field Fastener 54% $38.3m Manufacturing Rockford,

IL

85

LaSalle Network 74% $35.5m Human Resources Chicago 76

http://inc.com/profile/paragon-micro

http://inc.com/profile/ticomix

http://inc.com/profile/element-solutions

http://inc.com/profile/sphere-consulting

http://inc.com/profile/north-shore-pediatric-therapy

http://inc.com/profile/north-shore-pediatric-therapy

http://inc.com/profile/switchfast-technologies

http://inc.com/profile/protect-a-bed

http://inc.com/profile/acquirent

http://inc.com/profile/red-frog-events

http://inc.com/profile/tandem-hr

http://inc.com/profile/load-delivered-logistics

http://inc.com/profile/rkon-technologies

http://inc.com/profile/devbridge-group

http://inc.com/profile/neighborhood-loans

http://inc.com/profile/honey-can-do

http://inc.com/profile/field-fastener

http://inc.com/profile/lasalle-network


67

Enjoy Life Foods 131% $33m Food & Beverage Chicago 99

EP Technology 327% $32.6m Security Champaign-

Urbana, IL

69

Rise Interactive 535% $31.4m Advertising &

Marketing

Chicago 88

ServerCentral 87% $30.5m IT Services Chicago 78

SingleHop 134% $29.2m IT Services Chicago 100

Computer Aided

Technology

49% $26.2m Business Products

& Services

Chicago 80

BrightStar Care 151% $249m Health Chicago 65

rEvolution 49% $24.7m Advertising &

Marketing

Chicago 65

WCEDI Management

Solutions

102% $2.2m Human Resources Chicago 85

Lyons Consulting Group 415% $19.5m IT Services Chicago 96

Sonoma Partners 57% $18m IT Services Chicago 96

IPMG 58% $17m Insurance Chicago 100

CDM Media 150% $17.3m Advertising &

Marketing

Chicago 75

Infutor Data Solutions 49% $17.1m Advertising &

Marketing

Chicago 60

Clarity Consulting 44% $16m IT Services Chicago 88

Employco USA 84% $169.8

m

Human Resources Chicago 52

AgencyEA 130% $16.8m Advertising &

Marketing

Chicago 56

Lifes2Good 483% $16.1m Consumer Products

& Services

Chicago 81

Market6 2677

%

$15m Software Chicago 53

http://inc.com/profile/enjoy-life-foods

http://inc.com/profile/ep-technology

http://inc.com/profile/rise-interactive

http://inc.com/profile/servercentral

http://inc.com/profile/singlehop

http://inc.com/profile/computer-aided-technology

http://inc.com/profile/computer-aided-technology

http://inc.com/profile/brightstar-care

http://inc.com/profile/revolution

http://inc.com/profile/wcedi-management-solutions

http://inc.com/profile/wcedi-management-solutions

http://inc.com/profile/lyons-consulting-group

http://inc.com/profile/sonoma-partners

http://inc.com/profile/ipmg

http://inc.com/profile/cdm-media

http://inc.com/profile/infutor-data-solutions

http://inc.com/profile/clarity-consulting

http://inc.com/profile/employco-usa

http://inc.com/profile/agencyea

http://inc.com/profile/lifes2good

http://inc.com/profile/market6


68

Four Seasons Home

Services

1191

%

$15.5m Construction Chicago 55

ContextMedia 628% $15.1m Health Chicago 50

OpinionLab 66% $14m IT Services Chicago 88

Siteline Interior Carpentry 419% $14.8m Construction Chicago 75

Galen Healthcare Solutions 129% $14.5m Health Chicago 94

Dimension Design 47% $14.1m Advertising &

Marketing

Chicago 97

Carousel Checks 226% $13m Financial Services Chicago 88

Productive Edge 343% $13.6m Software Chicago 76

ARCO/Murray National

Construction

261% $128.2

m

Construction Chicago 58

@Properties 152% $123.8

m

Real Estate Chicago 100

LaunchPoint 3544

%

$12.8m Health Chicago 72

Insureon 3358

%

$11.8m Insurance Chicago 65

Clarity Partners 256% $10.1m IT Services Chicago 80

http://inc.com/profile/four-seasons-home-services

http://inc.com/profile/four-seasons-home-services

http://inc.com/profile/contextmedia

http://inc.com/profile/opinionlab

http://inc.com/profile/siteline-interior-carpentry

http://inc.com/profile/galen-healthcare-solutions

http://inc.com/profile/dimension-design

http://inc.com/profile/carousel-checks

http://inc.com/profile/productive-edge

http://inc.com/profile/arcomurray-national-construction

http://inc.com/profile/arcomurray-national-construction

http://inc.com/profile/@properties

http://inc.com/profile/launchpoint

http://inc.com/profile/insureon

http://inc.com/profile/clarity-partners


69

Appendix E:


70

Appendix F:

Sales Forecast

Cash Flow

Sales Projections

GroupShare Software 2015 2016 2017 2018 2019

Unit Volume 3,770.22 20,171.60 107,923.12 577,415.68 3,089,318.30

Unit Price 600.00

Gross Sales 2,262,130.05 12,102,961.56 64,753,871.39 346,449,407.22 1,853,590,977.52

(Commissions) 113,106.50 605,148.08 3,237,693.57 17,322,470.36 92,679,548.88

(Returns and Allowances) 45,242.60 242,059.23 1,295,077.43 6,928,988.14 37,071,819.55

Net Sales 2,103,780.95 11,255,754.26 60,221,100.39 322,197,948.71 1,723,839,609.09

(Cost of Goods Sold) - - - - -

GROSS PROFIT 2,103,780.95 11,255,754.26 60,221,100.39 322,197,948.71 1,723,839,609.09

Cash Flow 2015

November December January February March April May June July August September October TOTAL

CASH RECEIPTS

Income from Sales

Collections $0 $16,800 $17,136 $17,479 $17,828 $18,185 $18,549 $18,920 $19,298 $19,684 $20,078 $20,479 $204,434

Total Cash from Sales $0 $16,800 $17,136 $17,479 $17,828 $18,185 $18,549 $18,920 $19,298 $19,684 $20,078 $20,479 $204,434

Income from Financing

Interest Income $123 $9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $132

Loan Proceeds $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $200,000

Total Cash from Financing $200,123 $9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $200,132

TOTAL CASH RECEIPTS $200,123 $16,809 $17,136 $17,479 $17,828 $18,185 $18,549 $18,920 $19,298 $19,684 $20,078 $20,479 $404,566

CASH DISBURSEMENTS

Operating Expenses $134,521 $134,521 $134,521 $134,521 $134,521 $134,521 $134,521 $134,521 $134,521 $134,521 $134,521 $134,521 $1,614,256

Commissions/Returns & Allowances $1,764 $1,799 $1,835 $1,872 $1,909 $1,948 $1,987 $2,026 $2,067 $2,108 $2,150 $2,193 $23,659

Loan Payments $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $200,000

TOTAL CASH DISBURSEMENTS$152,952 $152,987 $153,023 $153,060 $153,097 $153,136 $153,175 $153,214 $153,255 $153,296 $153,338 $153,381 $1,837,915

NET CASH FLOW $47,171 -$136,178 -$135,887 -$135,581 -$135,269 -$134,951 -$134,626 -$134,295 -$133,957 -$133,612 -$133,261 -$132,902 -$1,433,349

Opening Cash Balance $100,000 $147,171 $10,992 -$124,895 -$260,476 -$395,745 -$530,696 -$665,322 -$799,617 -$933,574 -$1,067,186 -$1,200,447

Cash Receipts $200,123 $16,809 $17,136 $17,479 $17,828 $18,185 $18,549 $18,920 $19,298 $19,684 $20,078 $20,479

Cash Disbursements $152,952 $152,987 $153,023 $153,060 $153,097 $153,136 $153,175 $153,214 $153,255 $153,296 $153,338 $153,381

ENDING CASH BALANCE $147,171 $10,992 -$124,895 -$260,476 -$395,745 -$530,696 -$665,322 -$799,617 -$933,574 -$1,067,186 -$1,200,447 -$1,333,349 -$1,333,349


71

Cash Flow 2016


CASH RECEIPTS

Income from Sales

Collections $20,889 $21,306 $21,733 $22,167 $22,611 $23,063 $23,524 $23,995 $24,474 $24,964 $25,463 $25,972 $280,161

Total Cash from Sales $20,889 $21,306 $21,733 $22,167 $22,611 $23,063 $23,524 $23,995 $24,474 $24,964 $25,463 $25,972 $280,161

TOTAL CASH RECEIPTS $20,889 $21,306 $21,733 $22,167 $22,611 $23,063 $23,524 $23,995 $24,474 $24,964 $25,463 $25,972 $280,161

CASH DISBURSEMENTS

Operating Expenses $138,602 $138,602 $138,602 $138,602 $138,602 $138,602 $138,602 $138,602 $138,602 $138,602 $138,602 $138,602 $1,663,229

Commissions/Returns & Allowances $2,237 $2,282 $2,328 $2,374 $2,422 $2,470 $2,519 $2,570 $2,621 $2,674 $2,727 $2,782 $30,005

TOTAL CASH DISBURSEMENTS $140,840 $140,884 $140,930 $140,977 $141,024 $141,072 $141,122 $141,172 $141,224 $141,276 $141,330 $141,384 $1,693,234

NET CASH FLOW -$119,951 -$119,578 -$119,197 -$118,809 -$118,413 -$118,010 -$117,598 -$117,178 -$116,749 -$116,312 -$115,866 -$115,412 -$1,413,073

Opening Cash Balance -$1,333,349 -$1,453,300 -$1,572,878 -$1,692,075 -$1,810,884 -$1,929,298 -$2,047,307 -$2,164,905 -$2,282,083 -$2,398,832 -$2,515,144 -$2,631,010

Cash Receipts $20,889 $21,306 $21,733 $22,167 $22,611 $23,063 $23,524 $23,995 $24,474 $24,964 $25,463 $25,972

Cash Disbursements $140,840 $140,884 $140,930 $140,977 $141,024 $141,072 $141,122 $141,172 $141,224 $141,276 $141,330 $141,384

ENDING CASH BALANCE -$1,453,300 -$1,572,878 -$1,692,075 -$1,810,884 -$1,929,298 -$2,047,307 -$2,164,905 -$2,282,083 -$2,398,832 -$2,515,144 -$2,631,010 -$2,746,422 -$2,746,422

Cash Flow 2017

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter TOTAL

CASH RECEIPTS

Income from Sales

Collections $81,623 $86,072 $91,340 $96,931 $355,966

Total Cash from Sales $81,623 $86,072 $91,340 $96,931 $355,966

TOTAL CASH RECEIPTS

CASH DISBURSEMENTS

TOTAL CASH DISBURSEMENTS $81,623 $86,072 $91,340 $96,931 $355,966

NET CASH FLOW $428,425 $428,425 $428,425 $428,425 $1,713,698

$8,683 $9,215 $9,779 $10,377 $38,054

Cash Receipts $437,108 $437,639 $438,203 $438,802 $1,751,752

ENDING CASH BALANCE -$355,484 -$351,567 -$346,863 -$341,871 -$1,395,786


72

Cash Flow 2018


CASH RECEIPTS

Income from Sales

Collections $102,864 $109,160 $115,841 $122,932 $450,797

Total Cash from Sales $102,864 $109,160 $115,841 $122,932 $450,797


TOTAL CASH RECEIPTS $102,864 $109,160 $115,841 $122,932 $450,797

CASH DISBURSEMENTS

Operating Expenses $441,427 $441,427 $441,427 $441,427 $1,765,710

Commissions/Returns & Allowances $11,012 $11,686 $12,402 $13,161 $48,262

TOTAL CASH DISBURSEMENTS $452,440 $453,114 $453,829 $454,588 $1,813,972

NET CASH FLOW -$349,576 -$343,954 -$337,988 -$331,657 -$1,363,175

Opening Cash Balance -$4,142,208 -$4,491,784 -$4,835,738 -$5,173,726

Cash Receipts $102,864 $109,160 $115,841 $122,932

Cash Disbursements $452,440 $453,114 $453,829 $454,588

ENDING CASH BALANCE -$4,491,784 -$4,835,738 -$5,173,726 -$5,505,382 -$5,505,382

Cash Flow 2019

CASH RECEIPTS

Income from Sales

Collections $576,130

Total Cash from Sales $576,130


TOTAL CASH RECEIPTS $576,130

CASH DISBURSEMENTS

Operating Expenses $1,819,312

Commissions/Returns & Allowances $61,207

TOTAL CASH DISBURSEMENTS $1,880,520

NET CASH FLOW -$1,304,390

Opening Cash Balance -$5,505,382

Cash Receipts $576,130

Cash Disbursements $1,880,520

ENDING CASH BALANCE -$6,809,772


73

Balance Sheet

Balance Sheet

GroupShare LLC

October 31, 2016

ASSETS

Current Assets

Cash $1,074,931

Accounts Receivable $362,887


$1,437,817

Fixed Assets

Equipment $50,000

Computers &


(Less Accumulated


Total Fixed Assets

$127,170

TOTAL ASSETS

$1,564,987

LIABILITIES

Current Liabilities

Short-Term Notes Payable $48,828

Income Taxes Due $301,862


$350,690

Long-Term Liabilities

Long-Term Notes Payable $104,489

Total Long-Term Liabilities

$104,489

NET WORTH


Retained Earnings $909,808

Total Net Worth

$1,109,808


NET WORTH $1,564,987


74

Balance Sheet

GroupShare LLC

October 31, 2017

ASSETS

Current Assets

Cash $62,343,985


$71,435,669

Land $50,000

Facilities $87,170

Equipment $30,000

Computers &


Total Fixed Assets

Other Assets

TOTAL ASSETS

$71,542,839

LIABILITIES $53,417

Current Liabilities $17,719,912

Income Taxes Due

$17,773,330

Other Current Liabilities


Other Long-Term Liabilities $200,000

NET WORTH $53,569,510

Paid-In Capital

$53,769,510

Retained Earnings

Total Net Worth

TOTAL LIABILITIES AND NET

WORTH $71,542,839


75

Balance Sheet

GroupShare LLC

October 31,2018

ASSETS

Current Assets

Cash $346,070,904



$394,713,687

Fixed Assets

Equipment $50,000

Computers &


(Less Accumulated


Total Fixed Assets

$97,170

TOTAL ASSETS

$394,810,857

LIABILITIES

Current Liabilities


Total Current Liabilities $98,041,269

NET WORTH


Retained Earnings $296,569,588

Total Net Worth

$296,769,588

TOTAL LIABILITIES AND NET

WORTH $394,810,857


76

Balance Sheet

GroupShare LLC

October 31, 2019

ASSETS

Current Assets

Cash $1,982,808,55

5



$2,137,274,46

9

Fixed Assets

Equipment $50,000

Computers &


(Less Accumulated


Total Fixed Assets

$87,170

TOTAL ASSETS

$2,137,361,63

9

LIABILITIES

Current Liabilities



$528,771,023

NET WORTH


Retained Earnings $1,608,390,61

6

Total Net Worth

$1,608,590,61

6


NET WORTH

$2,137,361,63

9


77

Income Statement:

Income Statements 2016


INCOME

Gross Sales 417,319.51 479,917.43 551,905.05 634,690.81 729,894.43 839,378.59 965,285.38 1,110,078.19 1,276,589.92 1,468,078.40 1,688,290.16 1,941,533.69 12,102,961.56

(Commissions) 20,865.98 23,995.87 27,595.25 31,734.54 36,494.72 41,968.93 48,264.27 55,503.91 63,829.50 73,403.92 84,414.51 97,076.68 605,148.08

(Returns and allowances) 8,346.39 9,598.35 11,038.10 12,693.82 14,597.89 16,787.57 19,305.71 22,201.56 25,531.80 29,361.57 33,765.80 38,830.67 242,059.23

Net Sales 388,107.14 446,323.21 513,271.70 590,262.45 678,801.82 780,622.09 897,715.40 1,032,372.72 1,187,228.62 1,365,312.92 1,570,109.85 1,805,626.33 11,255,754.26

(Cost of Goods) - - - - - - - - - - - - -

GROSS PROFIT 388,107.14 446,323.21 513,271.70 590,262.45 678,801.82 780,622.09 897,715.40 1,032,372.72 1,187,228.62 1,365,312.92 1,570,109.85 1,805,626.33 11,255,754.26


Salaries and wages 33,837.06 33,837.06 33,837.06 33,837.06 33,837.06 33,837.06 33,837.06 33,837.06 33,837.06 33,837.06 33,837.06 33,837.06 406,044.66

Employee benefits 3,279.24 3,279.24 3,279.24 3,279.24 3,279.24 3,279.24 3,279.24 3,279.24 3,279.24 3,279.24 3,279.24 3,279.24 39,350.85

Payroll taxes 5,075.56 5,075.56 5,075.56 5,075.56 5,075.56 5,075.56 5,075.56 5,075.56 5,075.56 5,075.56 5,075.56 5,075.56 60,906.70

Professional services 5,866.67 5,866.67 5,866.67 5,866.67 5,866.67 5,866.67 5,866.67 5,866.67 5,866.67 5,866.67 5,866.67 5,866.67 70,400.00

Marketing and advertising 15,650.00 15,650.00 15,650.00 15,650.00 15,650.00 15,650.00 15,650.00 15,650.00 15,650.00 15,650.00 15,650.00 15,650.00 187,800.00

Rent 5,375.00 5,375.00 5,375.00 5,375.00 5,375.00 5,375.00 5,375.00 5,375.00 5,375.00 5,375.00 5,375.00 5,375.00 64,500.00

Equipment rental - - - - - - - - - - - - -

Maintenance - - - - - - - - - - - - -

Depreciation 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 10,000.00

Insurance 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00

Telephone service 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00

Utilities 1,405.00 1,405.00 1,405.00 1,405.00 1,405.00 1,405.00 1,405.00 1,405.00 1,405.00 1,405.00 1,405.00 1,405.00 16,860.00

Office supplies 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Postage and shipping 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1,200.00

Travel 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00

Entertainment 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00

Interest on loans 574.94 559.99 544.99 529.93 514.81 499.64 484.41 469.13 453.78 438.38 422.92 407.41 5,900.34

Other (change title here) - - - - - - - - - - - - -

Other (change title here) - - - - - - - - - - - - -

TOTAL EXPENSES 74,996.79 74,981.84 74,966.84 74,951.78 74,936.66 74,921.49 74,906.26 74,890.98 74,875.63 74,860.23 74,844.77 74,829.26 898,962.54

Net income before taxes 313,110.35 371,341.37 438,304.86 515,310.67 603,865.15 705,700.60 822,809.14 957,481.74 1,112,352.99 1,290,452.68 1,495,265.08 1,730,797.07 10,356,791.71

Provision for taxes on income78,277.59 92,835.34 109,576.21 128,827.67 150,966.29 176,425.15 205,702.29 239,370.43 278,088.25 322,613.17 373,816.27 432,699.27 2,589,197.93

NET PROFIT 234,832.77 278,506.03 328,728.64 386,483.00 452,898.87 529,275.45 617,106.86 718,111.30 834,264.74 967,839.51 1,121,448.81 1,298,097.81 7,767,593.78


78



INCOME

Gross Sales 7,753,272.10 11,791,757.70 17,933,789.49 27,275,052.10 64,753,871.39

(Commissions) 387,663.60 589,587.89 896,689.47 1,363,752.60 3,237,693.57

(Returns and allowances) 155,065.44 235,835.15 358,675.79 545,501.04 1,295,077.43

Net Sales 7,210,543.05 10,966,334.66 16,678,424.23 25,365,798.45 60,221,100.39

(Cost of Goods) - - - - -

GROSS PROFIT 7,210,543.05 10,966,334.66 16,678,424.23 25,365,798.45 60,221,100.39


Salaries and wages 103,033.83 103,033.83 103,033.83 103,033.83 412,135.33

Employee benefits 10,329.60 10,329.60 10,329.60 10,329.60 41,318.39

Payroll taxes 15,455.07 15,455.07 15,455.07 15,455.07 61,820.30

Professional services 17,600.00 17,600.00 17,600.00 17,600.00 70,400.00

Marketing and advertising 46,950.00 46,950.00 46,950.00 46,950.00 187,800.00

Rent 16,125.00 16,125.00 16,125.00 16,125.00 64,500.00

Equipment rental - - - - -

Maintenance - - - - -

Depreciation 2,500.00 2,500.00 2,500.00 2,500.00 10,000.00

Insurance 750.00 750.00 750.00 750.00 3,000.00

Telephone service 750.00 750.00 750.00 750.00 3,000.00

Utilities 4,215.00 4,215.00 4,215.00 4,215.00 16,860.00

Office supplies 1,500.00 1,500.00 1,500.00 1,500.00 6,000.00

Postage and shipping 300.00 300.00 300.00 300.00 1,200.00

Travel 3,000.00 3,000.00 3,000.00 3,000.00 12,000.00

Entertainment 3,000.00 3,000.00 3,000.00 3,000.00 12,000.00

Interest on loans 1,128.54 986.78 843.42 698.44 3,657.18

Other (change title here) - - - - -


TOTAL EXPENSES 226,637.04 226,495.29 226,351.93 226,206.95 905,691.21

Net income before taxes 6,983,906.01 10,739,839.38 16,452,072.30 25,139,591.50 59,315,409.18

Provision for taxes on income 1,745,976.50 2,684,959.84 4,113,018.08 6,284,897.87 14,828,852.30

NET PROFIT 5,237,929.51 8,054,879.53 12,339,054.23 18,854,693.62 44,486,556.89


79



INCOME

Gross Sales 41,481,944.86 63,088,852.88 95,950,259.13 145,928,350.35 346,449,407.22

(Commissions) 2,074,097.24 3,154,442.64 4,797,512.96 7,296,417.52 17,322,470.36

(Returns and allowances) 829,638.90 1,261,777.06 1,919,005.18 2,918,567.01 6,928,988.14

Net Sales 38,578,208.72 58,672,633.18 89,233,740.99 135,713,365.83 322,197,948.71

(Cost of Goods) - - - - -

GROSS PROFIT 38,578,208.72 58,672,633.18 89,233,740.99 135,713,365.83 322,197,948.71


Salaries and wages 104,579.34 104,579.34 104,579.34 104,579.34 418,317.36

Employee benefits 10,846.08 10,846.08 10,846.08 10,846.08 43,384.31

Payroll taxes 15,686.90 15,686.90 15,686.90 15,686.90 62,747.60

Professional services 17,600.00 17,600.00 17,600.00 17,600.00 70,400.00

Marketing and advertising 46,950.00 46,950.00 46,950.00 46,950.00 187,800.00

Rent 16,125.00 16,125.00 16,125.00 16,125.00 64,500.00

Equipment rental - - - - -

Maintenance - - - - -

Depreciation 2,500.00 2,500.00 2,500.00 2,500.00 10,000.00

Insurance 750.00 750.00 750.00 750.00 3,000.00

Telephone service 750.00 750.00 750.00 750.00 3,000.00

Utilities 4,215.00 4,215.00 4,215.00 4,215.00 16,860.00

Office supplies 1,500.00 1,500.00 1,500.00 1,500.00 6,000.00

Postage and shipping 300.00 300.00 300.00 300.00 1,200.00

Travel 3,000.00 3,000.00 3,000.00 3,000.00 12,000.00

Entertainment 3,000.00 3,000.00 3,000.00 3,000.00 12,000.00

Interest on loans 551.83 403.56 253.62 101.98 1,310.98



TOTAL EXPENSES 228,354.15 228,205.88 228,055.93 227,904.30 912,520.26

Net income before taxes 38,349,854.57 58,444,427.30 89,005,685.05 135,485,461.53 321,285,428.45

Provision for taxes on income 9,587,463.64 14,611,106.83 22,251,421.26 33,871,365.38 80,321,357.11

NET PROFIT 28,762,390.93 43,833,320.48 66,754,263.79 101,614,096.15 240,964,071.34


80


TOTAL

INCOME

Gross Sales 1,853,590,977.52

(Commissions) 92,679,548.88

(Returns and allowances) 37,071,819.55

Net Sales 1,723,839,609.09

(Cost of Goods) -

GROSS PROFIT 1,723,839,609.09


Salaries and wages 424,592.12

Employee benefits 45,553.53

Payroll taxes 63,688.82

Professional services 70,400.00

Marketing and advertising 187,800.00

Rent 64,500.00

Equipment rental -

Maintenance -

Depreciation 10,000.00

Insurance 3,000.00

Telephone service 3,000.00

Utilities 16,860.00

Office supplies 6,000.00

Postage and shipping 1,200.00

Travel 12,000.00

Entertainment 12,000.00

Interest on loans -

Other (change title here) -

Other (change title here) -

TOTAL EXPENSES 920,594.47

Net income before taxes 1,722,919,014.62

Provision for taxes on income 430,729,753.66

NET PROFIT 1,292,189,260.97


81

Break-even Estimates

Year 1 (2015-2016) Year 2 (2016-2017)

November 80,402.11 November 80,641.71

December 80,386.75 December 80,625.64

January 80,371.33 January 80,609.50

February 80,355.84 February 80,593.31

March 80,340.31 March 80,577.06

April 80,324.71 April 80,560.74

May 80,309.05 May 80,544.37

June 80,293.34 June 80,527.93

July 80,277.56 July 80,511.43

August 80,261.73 August 80,494.87

September 80,245.84 September 80,478.25

October 80,229.89 October 80,461.57

Monthly Average 80,316.54 Monthly Average 80,552.20

Year 3 (2017-2018) Year 4 (2018-2019)

1st Quarter 243,695.75 1st Quarter 245542.1

2nd Quarter 243,543.32 2nd Quarter 245382.67

3rd Quarter 243,389.17 3rd Quarter 245221.43

4th Quarter 243,233.28 4th Quarter 245058.38

Quarterly Average 243,465.38 Quarterly Average 245301.14

Year 5 (2019-2020)

Annual Average 989,886.52


82

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