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Evan van Niekerk - Amy Tsai - Jespeter Liao - Allison Stanbury - David Cortes

New Venture Start-up – Set D

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Table of Contents

Overview ...................................................................................................................................... 4

1.0 - Service Description ........................................................................................................ 4 1.1 - Physical Description ................................................................................................................ 4

Primary - Document Management .......................................................................................................... 4 Secondary - Paper Shredding .................................................................................................................... 4 Secondary - Website Services ................................................................................................................... 5

1.2 - Geographic Reach ..................................................................................................................... 5 1.3 - Geographic Location ................................................................................................................ 5

Source: GeoSearch 2011 - Census Divisions (CD), Statistics Canada ............................... 6 1.4 - Hours of Operation ................................................................................................................... 6 1.5 - Regulatory Compliance ........................................................................................................... 6 1.6 - Insurance ..................................................................................................................................... 7

2.0 - Market ................................................................................................................................. 7 2.1 - Profile of the Market ................................................................................................................ 7

Accounting Firms ........................................................................................................................................... 7 Real Estate ......................................................................................................................................................... 8 Private Healthcare Clinics .......................................................................................................................... 8 Law Firms .......................................................................................................................................................... 9

2.2 - Buying Criteria and Process .................................................................................................. 9 Criteria ................................................................................................................................................................ 9 Process ............................................................................................................................................................. 10

2.3 - Market Trends ............................................................................................................... 11 eFiling .................................................................................................................................................. 11 eDisocvery .......................................................................................................................................... 11 Streamlined Data ............................................................................................................................. 11

3.0 - Competition .................................................................................................................... 11 3.1 Competitor Profile ................................................................................................................... 11

Canadian and Multinational Record Management Companies ................................................ 11 Local Record Management Companies .............................................................................................. 12

3.2 Competitor Assessment ......................................................................................................... 13 Common Strengths ..................................................................................................................................... 15 Common Weaknesses ................................................................................................................................ 15

3.3 Competitive Edge ...................................................................................................................... 15

4.0 - Marketing ........................................................................................................................ 16 4.1 - Promotional Tactics and Timing ...................................................................................... 16

Advertising ..................................................................................................................................................... 16 Internet Marketing ..................................................................................................................................... 17 Public Relations ........................................................................................................................................... 18 Direct Marketing .......................................................................................................................................... 18 Personal selling ............................................................................................................................................ 19

4.2 – Pricing ....................................................................................................................................... 21 Standard Pricing ....................................................................................................................................... 21 Bundle Pricing .............................................................................................................................................. 22

5.0 - Organization .................................................................................................................. 24

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5.1 - Bio ................................................................................................................................................ 24 Jespeter Liao – Chief Operating Officer (COO) ................................................................................ 24 Amy Tsai – Chief Marketing Officer (CMO)....................................................................................... 24 David Cortese – Chief Financial Officer (CFO) ................................................................................. 25 Allison Stanbury – Chief Sales Officer (CSO) .................................................................................... 25 Evan van Niekerk – Investor .................................................................................................................. 25

5.2 - Form of Organization ............................................................................................................ 25 5.3 - Ownership ................................................................................................................................ 26 5.4 - Implementation Schedule ................................................................................................... 27

6.0 - Key Risks ......................................................................................................................... 28 6.1 – Internal Risks.......................................................................................................................... 28

Business Acquisition – Over Estimation of Demand .................................................................... 28 Cash-Flow ....................................................................................................................................................... 28 Loss of a Key Member ............................................................................................................................... 29 Equipment Problems ................................................................................................................................. 29

6.2 - External Risks .......................................................................................................................... 29 Small Business Window ........................................................................................................................... 29 Competition trying to strong arm us/keep us out ......................................................................... 29 Technology – Personal Scanning Products ....................................................................................... 30

7.0 - Financial Requirements and Cash Flow Projections ....................................... 31 7.1 - Start Up Costs and Funds ..................................................................................................... 31 7.2 - Cash Flow Projection ............................................................................................................ 32 7.3 - Explanation of Assumptions .............................................................................................. 34

Start Up Cost Notes ..................................................................................................................................... 34 Cash Flow Notes .......................................................................................................................................... 34

Appendix A – Marketing Material (Flyer Mockup) .................................................... 37

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Overview

PrimaData is a new technology company that will aim to increase the efficiency of its clients, who will be small businesses in the Lower Mainland area. PrimaData’s primary service will be the conversion of paper documents to electronic files, but they will also be offering a variety of additional secondary services. These secondary services will include paper shredding, website services, search engine optimization and LinkedIn management. Ideally companies will be attracted by the primary service and then opt to add services, further improving their efficiency and increasing PrimaData’s revenue. All business activity will take place in the Lower Mainland either at PrimaData’s head office or on site at the clients business according to the specific job. There are currently two large, multinational companies competing for the paper conversion market, as well as several technologies that allow people to do it themselves. PrimaData’s differentiation from these companies is that they will be offering additional services that the others do not. These services, mentioned above, go along with the target companies need to become more efficient and help them save time and money by going through only one company. PrimaData is hoping to draw in customers with service bundles and to then maintain a long-term business relationship by slowly evolving along with their client’s needs.

1.0 - Service Description

1.1 - Physical Description

Primary - Document Management

PrimaData will assist small businesses by converting their paper documents into electronic format. By using specialized equipment to create searchable PDF files, companies can easily access these files without the hassle of flipping through paper indexes. Converting paper documents to electronic files significantly reduces document access times, and improves both access and security for key records such as contracts, human resource files and invoices. Once the initial service has been carried out, PrimaData will then offer additional secondary services. The secondary services will extend and maintain customer relationships as well as implement a continual revenue stream. The secondary services will include the following:

Secondary - Paper Shredding

Once the documents have been converted to electronic format, the customer will have the option to securely shred and dispose their old paper documents for an additional charge. This will take place at the PrimaData office located in Burnaby or at the client’s place of business, based on their preference.

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Secondary - Website Services

In addition to the document management and shredding services, PrimaData will offer web services to their clients. The purposes of the secondary services are to create and maintain a loyal client base, generate a continual revenue stream amongst the clients, and differentiate PrimaData from competition with a unique service edge. These web services will include: Web Site Management

Website management will include helping the company with the construction and maintenance of their business website. Search Engine Optimization

Search engine optimization will include helping the company better utilize search engines to increase their appearance in organic search results for potential clients. LinkedIn Management

LinkedIn management will include helping the company build and manage their business LinkedIn profile in order to increase their social presence within the business industry.

1.2 - Geographic Reach According to the Provincial government, small businesses are mainly focused in the Mainland/Southwest region of B.C. According to Statistics Canada, this area is the most densely populated region in British Columbia with 52.6% of B.C. population resides in this census metropolitan area1. PrimaData will be able to travel within Greater Vancouver to ensure a quick travel time to and from destinations. Statistics Canada states the Mainland/Southwest has the second highest small business growth rate (1.5%) with the highest total number of small businesses within the region (223,100 since 2011). The agent representing PrimaData will be able to cover multiple locations in one outing. Constant communication between the office and on-road agent will ensure maximized operational efficiency, and therefore starting the business with lower operational costs in the long term.

1.3 - Geographic Location The office of PrimaData will be located in Burnaby, B.C. Burnaby is central to most business activity that happens within our geographic reach. Secondly, rent is generally cheaper than Vancouver downtown area. As seen in this map below, the geographical diameter around Burnaby allows maximum reach within the Lower Mainland. The only discrepancy between this map and our actual reach is the travel distance in between municipalities when making service calls. The general assumption that travelling on the highway during non-busy hours will allow PrimaData to find business past Maple Ridge and possibly reaching to Mission in the near future.

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Source: GeoSearch 2011 - Census Divisions (CD), Statistics Canada

1.4 - Hours of Operation PrimaData’s hours of operation will be based solely around maximizing service revenue. The office hours will be 8am until 5pm, Monday to Friday. These hours will be when potential customers can call and inquire about the services offered. The hours of sales operations will be from 9am until 5pm Monday to Friday. These hours will be allocated to visiting clients and potential customers at their business in order to meet with them, and discuss and assess their wants and needs. The actual services will be offered 24 hours a day, 7 days a week. The timeline of each job will be negotiated separately to meet the needs of the client.

1.5 - Regulatory Compliance PrimaData will require the following regulations and documentation to carry out business in Greater Vancouver and the Lower Mainland: Municipal Business Licenses

For every city that PrimaData operates in they will be require to purchase and file a separate business license. At this point PrimaData anticipates filing in:

Vancouver North Vancouver City North Vancouver District Burnaby Coquitlam New Westminster Port Coquitlam

Port Moody Delta Surrey Langley West Vancouver District Richmond Maple Ridge

Federal Incorporation

In order to operate as a corporation PrimaData will be required to file incorporation papers. PrimaData has chosen to incorporate federally due to lower corporate tax

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rates, easier access to capital if needed, and room for future growth without re-filing. Non-Disclosure Agreements

PrimaData will likely be handling confidential documents and records, therefore will require writing and signing of confidentiality agreements will all customers. This will protect the customers from any breach of their private information and will protect PrimaData from any employee misconduct.

1.6 - Insurance The PrimaData Burnaby office will primarily be used as a general location for registration and storage for office supplies and company assets. Insurances found on the Canada Business Network for this business include:

Content Insurance: protecting key assets Business Interruption Insurance: covering loss of earnings due to temporary

business shut down Vehicle Insurance: when travelling to and from customers and main office Errors and Omissions Liability: cover costs for employee malpractice and

negligence Product Liability: covers insurance costs for service quality per job General Health Insurance Coverage for Employees: all important agents of

the company will be filed as employees of this corporation

2.0 - Market

2.1 - Profile of the Market The market that PrimaData will be targeting is small businesses in the Greater Vancouver and Lower Mainland. Specifically those that have relied on, or currently rely heavily on the use of paper documentation. There were 196,190 small businesses operating in Metro Vancouver Area in 2011, accounting for 98.2 percent of all businesses in the province. About 81 per cent of these small businesses were micro-businesses with fewer than five employees. The composition of Metro Vancouver’s businesses is dominated by service related firms, which comprises 83% of the region’s businesses inventory. Firms in the goods-producing sector account for the remaining 17%. Metro Vancouver is the preferred location for a cluster of high-tech manufacturing firms, with integrated product design, sales and management business components. The following industries have been identified for having the highest business potential:

Accounting Firms

Certain original hard copy paperwork filed with an accounting or auditing firm must be kept, whether this is by law or according to company policy. Most of these firms

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currently use primitive filing systems where paper files are stored in manila folders where easy access to information includes finding the right cabinet and folder. Within B.C., there is an estimated amount of 2585 small accounting firms that would require PrimaData's services. By having a soft copy on computer will allow ease of information extraction within short notice. A mini-database within the firm will allow accountants to quickly process trends within certain industries if specialized in a certain field as well as test analysis software once available within the association's resource site. Formats will then be dealt with if incompatible but in files will first be processed as PDF files to serve initial purposes.

Real Estate

The real estate industry has always been known for its large amount of paperwork, which can include selling contracts, bids, and more. In addition, most real estate firms tend to rely on hardcopy filing cabinets to manage their paper documents. These can take up valuable office space. The retrieval of these documents by employees can be a time consuming process, especially if a document has been misfiled. According to Statistics Canada, in 2011,the breakdown of employer establishments in the Real Estate subsector included 5,501 micro businesses (1-4 employees), which is 73.8% of the sector, and 1,498 small businesses (5-99 employees), which is 25.4% of the sector. In addition, in British Columbia, the real estate sector is the leader in small business growth. From 2007 to 2012, there was a net addition of 3,116 small businesses in real estate, with the largest jump seen in 2012. The small business real estate industry is a profitable market for PrimaData due to its heavy reliance on paper documents to conduct business and the industry’s high growth.

Private Healthcare Clinics

This industry is one that PrimaData will be focusing a very large amount of its sales efforts. According to industry standards all clinics must maintain paper documentation records for every single patient they take. Even so, most clinics have begun to add these records in to electronic databases for easier management and access, making the paper files mostly just protocol. This is extremely beneficial for PrimaData because it means that unlike other industries, which have no such regulations, there will be a continuous flow of new paper documentation to be converted. Ideally PrimaData will be able to gain contracts with these companies to convert and manage new files each year. This will benefit the clinics because the personnel currently transferring the paper files to computers are not specially trained for this and more of their time could be put towards their actual jobs within the clinic. The specific types of clinics that prima data will be targeting include, but are not limited to:

Audiology Cardiology Chiropractic

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Corporate Health Cosmetic Dental and Oral Health Dermatology Family Medicine Fertility Maternity Gastroenterology

Natural Medicine Neurology Nursing Occupational Therapy Oncology Physiotherapy Psychology Travel

Urology Weight Loss Surgery Sports Medicine Sleep Sexual Health Psychiatry

Law Firms

Law firms are required to keep an original hard copy form of most documents they are required to deal with. Moreover, a lot of the smaller firms do not have sophisticated filing systems to properly manage and maintain a streamlined database to find important information quickly. There are approximately 120 law firms in the Vancouver area that would benefit from Prima Data’s services By scanning and creating a manageable database that can be fine tuned to a client by client basis will extremely help law firms in reducing wasted time looking for documents. Having this technology will also allow for law firms to be well organized and give the ability to quick share and send information between each other and/or the client. Lastly, PDF format which PrimaData services use is now becoming acceptable to use in court.

2.2 - Buying Criteria and Process

Criteria

Below are the criteria that PrimaData will need to satisfy in order to meet the target market’s purchase requirements: Must Be Competitively and Affordably Priced

The services we offer must be competitively priced with the competition in the area. If PrimaData were to price its services below the competition, it runs the risk of devaluing its services and potential customers may go elsewhere. On the other hand, if PrimaData were to price its services high above the competition, it runs the risk of loosing potential customers due to over-pricing. By having the services priced based on what the competition is charging, PrimaData will remain competitive in the market and be able to win over potential customers with different services. Must Have Convenient Hours

PrimaData must be able to carry out their services in a timely fashion that works with the schedule of the customer without effecting their day-to-day operations. Since PrimaData will be dealing with business-related documents and potentially preforming the services at the customer’s office, hours of operations must be flexible with the customers schedule. If PrimaData does not provide convenient and flexible hours of operation to the market, then potential customers will go else where for their wants and needs.

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Must Have Service Differentiation

PrimaData must clearly differentiate itself from the competition. By offering different services than the competition, PrimaData is able to provide greater value to its customers. The target market is more likely to chose PrimaData over the competitors since PrimaData offers additional services. Must Have Convenient Payment Options

PrimaData must offer convenient payments options and terms for their clients in order to satisfy their payment wants and needs. The more convenient and appealing the payments options and terms are to the target market, the more inclined they are to chose PrimaData’s services. Must Have Security and Privacy Options

It is vital that PrimaData offers secure services that ensure privacy of the business documents and information they will be dealing with. Potential customers will not want to use PrimaData’s services if they feel as if their private information will be violated or exposed to the public. Users of the services must feel protected on how their information is being handled.

Process

Awareness

During the first stage of the buying process, awareness of the company will be gained through direct marketing, trade shows and sales promotion. Direct marketing will be sent out to all potential customers letting them know about what the company does and PrimaData’s services can provide them with value. Trade shows will be used to network with customers and demonstrate how the technology works and how it can be beneficial for the companies. Sales representatives will meet with potential clients to discuss how becoming paperless can make their companies more efficient and reduce wasted employee time that occurs with traditional filing systems. Investigation

The market will investigate by being driven to PrimaData’s website when researching prices, bundles and services that are offered. Moreover, at the trade shows customers will stop by the booth to see how the conversion process works and what benefits it offers to their companies. Purchase and Payment

Depending on if the customer is buying a bundle or a one-time service, this will dictate how the purchase and payment process will work. When buying a bundle the customer can pay on credit with 2/10, n/30 terms starting after the work is completed to entice the customers to pay earlier for the discount. When purchasing a one-time service, customers will pay once the work is completed with no credit

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terms offered. PrimaData will accept credit card, cheque, and cash as forms of payment.

2.3 - Market Trends

eFiling Nuance states that electronic filing systems are becoming more popular with the wide spread use of PDF format. In the case of law firms, many court systems mandate the filing of documents electronically. This has caused many law firms to adopt either software or companies to help them with the transition into the new filing system.

eDisocvery As these filing systems are put into place the sheer growth in volume of digitized files can be overwhelming. eDiscovery Trends writes that companies are now looking for either software or other companies that will provide a solution to making the files more accessible. Moreover, companies have been increasing worried about lost data and a security measure that has caused them to lean to sophisticated solution software companies.

Streamlined Data Nuance states with the rise of cloud technology and the widespread use of smartphones and tablet, having information on a format that is readily available has become paramount. This has lead to more companies wanting to go paperless by relying more on PDF files so they are able to access important information anywhere they want.

3.0 - Competition

3.1 Competitor Profile The competitors have been grouped into two categories due to the large number and their similarities.

Canadian and Multinational Record Management Companies

The first category of competitors include record management companies that have a Canadian or multinational presence. These particular companies have expanded into several cities and have a large client base. The most dominant companies that offer services within the Greater Vancouver and Lower Mainland area include B.C. Records Management Services, Iron Mountain Canada, and Recall. These companies have built a strong client base and have successfully established themselves with credible working relationships. In addition, they are very well known by PrimaData’s target market.

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Local Record Management Companies

The second category of competitors includes record management companies that are strictly located in the Lower Mainland. These companies generally offer fewer services and are much small in size, for example myScan.ca. The majority of these companies offer similar selling features as both B.C. Records Management Services and Iron Mountain Canada but to a lesser extent. PrimaData also takes into consideration the competition of free apps that make it possible to scan documents. Some of these apps include: CamScanner, Genius Scan, and ScanToPDF. Below is a table describing each competitors major customers, services offered, location the services are available, and pricing.

Competitors Name

Major Customers/Industry Specialties

Services Offered Location Services are Available

Pricing

B.C. Records Management Services

Legal Accounting Medical/dental Financial Small/medium business

Document storage Scanning and imaging documents Electronic media storage Shredding and document destruction

Greater Vancouver and Lower Mainland area:

Abbotsford

Burnaby

Chilliwack

Coquitlam

Delta

Fort Langley

Langley

Maple Ridge

Mission

New Westminster

North Vancouver

Pitt Meadows

Port Moody

Richmond

Surrey

Vancouver

West Vancouver

White Rock

An average of 15 - 99¢ per page for

document scanning

An average of $35 per

hour for shredding

Iron Mountain Canada

Accounting

Energy

Enterprises

Healthcare

Government

Financial services

Document management Health information management Record management and storage

In over 35 countries Great Vancouver and Lower Mainland area

An average of 15 - 99¢ per page for

document scanning

An average of $35 per

hour for shredding

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Legal

Retail

Small/medium

businesses

Secure shredding Data backup and recovery Technology escrow services

myScan.ca Legal

Real estate

Mortgage firms

Medical

Environmental

Engineering

Insurance companies

Banks

Human resource

offices

School districts

Large/wide format scanning (i.e. blueprints, engineering drawings) Document scanning OCR services Document management Data entry and form processing

Greater Vancouver and Lower Mainland area:

Vancouver

Burnaby

New Westminster

West Vancouver

North Vancouver

Richmond

Delta

Surrey

White Rock

Langley

Abbotsford

Coquitlam Pitt Meadows Port Coquitlam Port Moody Maple Ridge

An average of 15 - 99¢ per page for document scanning

3.2 Competitor Assessment Below is a table identifying each competitor’s key selling features, how many years they have been in business, strengths, and weaknesses.

Competitors Name

Years in Business

Key Selling Points Strengths Weaknesses

B.C. Records Management Services

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Provide flexible delivery - Same day, Next day or 2

hour Rush - 4 Hour emergency

deliveries available 24 hours/day, 365 days/year

High volume conversions with quick turnaround time and extreme accuracy Long time in business provides strong credibility

Long time in business with established relationships with current customers National coverage of services Affiliated with large, well-established associations within document conversion and record management: National

Offers no services that are different from competitors

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Association for Information Destruction, Professional Records & Information Services Management, etc. Continually evolve their record management services

Iron Mountain Canada

62 Provides 5+ services Long time in business provides strong credibility Strong marketing including up-to-date website and online resources (i.e. blog, statistics, customer testimonials, etc.)

Successful expansion globally Most successful and popular competitor with a large market share (94% of the Fortune 1000 rely on Iron Mountain to store and manage their information)

Long time in business with established relationships with current customers Expert staff with security expertise Won multiple awards since 2002 (i.e. Company of the Year by The Boston Business Journal, Fortune names Iron Mountain one of the World's Most Admired Companies) Employ 21,000 professionals worldwide and maintain an unrivalled infrastructure that includes more than 1000 facilities, 10 data centers and 3500 vehicles

Offers no services that are different from competitors

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myScan.ca 5 Free Pickup or Delivery of documents for order of $1000 and more Affordable pricing

Expert staff with expertise in dealing with small business, from a corporation to government organizations

A division of Smart Technologies Consultants Ltd. (larger company, provides credibility)

Offers no services that are different from competitors

Out-dated marketing and advertising, including the company website

Common Strengths

One area of common strength that all competitors’ posses are their long time in business. In order to be successful, businesses must create working relationships with their target market. All competitors have built strong relationships with the target market due to the longevity of their business. It will take PrimaData quite a long time to develop the same type of relationships the competitors hold. Both B.C. Records Management Services and Iron Mountain Canada have successfully expanded their businesses throughout Canada, whereas myScan.ca has focused on building their business within the Lower Mainland and Vancouver. All three competitors are well known throughout Vancouver and the Lower Mainland. Iron Mountain Canada is the most successful and established of the three companies.

Common Weaknesses

The main area of weakness amongst the three companies is their ability to differentiate themselves through additional services other than scanning and record management. All three companies offer very similar services and do not expand their services beyond record management.

3.3 Competitive Edge Based on the analysis of competitors, it is clear the competitive edge offered by PrimaData is a service edge. By offering additional services to scanning and record management, PrimaData is able to differentiate itself from the competition and provide customers with greater value. None of PrimaData’s competitors offer web services in addition to scanning and record management services. PrimaData’s service edge includes website management and design, SEO optimization, and LinkedIn development services. These services will be offered in specific bundles that allow customers to tailor their bundle to their exact wants and needs. This option of being able customize a service bundle is currently not offered by competitors, nor do the competitors offer the bundles with services that include web services. By successfully communicating the service edge, PrimaData will gradually build a core of loyal customers, which can be expanded over time.

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4.0 - Marketing

4.1 - Promotional Tactics and Timing Because the target market of PrimaData is small businesses located in Greater Vancouver Area, the marketing efforts will be aimed at organizational buyers. The marketing objective is to increase the brand awareness enough to generate a Net Income by 2016. Therefore, the promotional techniques are designed to assist PrimaData to reach its marketing goal. In order to reach the goal with limited budget, various tools within the promotional mix were chosen. The following section outlines the rationale behind the strategic decision of the choice of promotional tactics.

Advertising

Flyers and Brochures PrimaData will create flyers and brochures to assist other marketing efforts. The flyers provides the target audience a simple visual that allows the potential customer to know the existence of PrimaData and the services it provides. The flyer will be visually attractive with graphics and a tagline that highlights the unique selling proposition that the competition cannot or does not offer. The brochure, on the other hand, provides detailed information about the company and services. It will be sent out based on request and handed out at the trade show PrimaData will attend in October. All of PrimaData’s advertisement will have contact information and links to direct the target audience to call or visit the website or social media pages.

Vehicle Wraps

Because of the limited budget, PrimaData will choose car wrap over other advertising options. The average car wrap job cost around $2.00 a square foot, which is cheaper compared to advertising through other media such as TV, radio or newspaper. By using vehicle wraps as a marketing tool, PrimaData’s professional image will be reinforced, leaving a lasting impression 24 hours and 7 days. The other reason for choosing this tool is because research shows that car wraps are viewed on average by 60,000 people per month and about 80% of people say they remember what they see on vehicle wrap, which provides PrimaData a great opportunity to increase awareness and generate leads.2

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Figure 1: Cost of Advertising

Internet Marketing

Website In order to allow the potential customers to access information about PrimaData more easily and quickly, PrimaData will create a website (www.PrimaData.ca) and use it as a marketing communication medium. This will allow PrimaData to develop awareness and influence attitudes by providing in-depth information regarding company’s products and services. PrimaData will also conduct Search Engine Optimization which improves the visibility of a website to increase the number of visitors from search engines. The goal of this is to attract more potential clients to the site within the target market.

Social Media PrimaData will be using four social media tools: Facebook, Twitter, LinkedIn and YouTube. The use of social media will primarily target the younger demographics such as Generation Y within PrimaData’s target market, as they are frequent Internet user compares to older generation. The social media websites provide a platform for PrimaData to directly interact with its potential customers. All of PrimaData’s marketing material will have links directing the target audience to the PrimaData’s website and social media pages. The Chief Marketing Officer PrimaData will be responsible for maintaining and updating the social media pages with latest news and promotions.

Interstitials Interstitials are ads that appear on the screen while a site’s content downloads. According to the research, 47 percent of sampled Internet users like interstitials ads and the recall rate was high at 76 percent. 3This gives PrimaData the potential to raise its brand awareness. With the purpose of reaching more potential customers within the target market, PrimaData will placed its interstitials on various industry

0.15

1.78

5.92

11.66

11.3

0 1 2 3 4 5 6 7 8 9 10 11 12

Vehicle Graphics

Billboards

Radio

Newspaper (1/4 page and B/W)

Prime Time Network TV

Cost Per Thousand (CPT) Impressions

Ad

ver

tisi

ng

Med

ia

Cost of Advertising

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association websites, such as Small Business B.C., B.C. Legal Management Association and CGA B.C. The design of the ads will be simple but attractive.

Public Relations

Trade shows Every year, PrimaData will attend to The SOHO|SME Expo which attracts thousands of business owners, entrepreneurs and executives from small and medium size enterprises with up to 50 employees. PrimaData will showcase its services at the booth and engage in face-to-face communication with potential clients. Because the event partners with various industry associations and groups, it provides PrimaData a cost-effective way to reach and interact with a large amount of potential clients and prospects in one place at one time. Furthermore, the Expo will help to increase PrimaData’s brand exposure and create an opportunity for PrimaData to make connections, build relationships and generate leads. The Sales Manager at PrimaData will collect contact information from valuable leads that attend to the Expo and follow up through sales calls or direct marketing.

Grand Opening In order to raise the brand awareness, PrimaData will have a Grand Opening Party on Mar 1. Prior to the event, the invitation will be sent to small business owners and industry professionals that are the potential clients within the target market. On the Grand Opening Day, the company and the management team will be introduced to the guests. There will be a showcase of PrimaData’s product and services. Chief Marketing Officer will do the event planning and execution, with assistance from other executives.

Direct Marketing

The direct-response media will be directed at the target market to further generate a response or transaction. The focus for using this type of marketing will be to get noticed by local small business owners. Small business owners are primarily between the ages of 35 and 54 (51%) within B.C. and are accustomed to the traditional methods of advertisement (via direct mail). Contents of the direct mail and/or email will be used to introduce PrimaData as a company and what type of service the company can offer. This will be sent out by the marketing manager within the first month of operations to generate initial sales and business generation. If sales are not negotiated after the first points of contact, the sales representatives will initiate lead generation for references and follow-up later in the year. After receiving initial feedback and effectiveness towards sales generation, changes in regards to design and content will be made accordingly.

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Figure 2 B.C. Statistics Age Distribution of Self-Employed Workers Compare to Employees, B.C. 2012

Personal selling

This method is chosen due to the newness of the industry and relatively short window of opportunity. Sales representatives will be prospecting local businesses within Greater Vancouver, via both cold calls and, preferably, referrals. The sales manager will specialize in targeting the four main industries during PrimaData's introductory stage. They will be following up from call reference from our direct email and effectively sell personally towards individual clients. A behavioral evaluation will be implemented until a couple months into the operations until professional demeanor is achieved to sales manager's satisfaction since this business is heavily focused on customer satisfaction. A sales quota will be assigned once a realistic goal can be set per industry. The sales manager will be maintaining customer relationship management to build long-term profitable relationships with customers. An assistant sales manager will be promoted if quantity of long-term customers is starting to strain the quality of service, according to company's service protocol.

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Notes:

Colours are for visual differentiation only. Lighter shade indicates preparation stage.

MarketingTactics Budget

Advertising

Flyers QTY:10,000(8.5"x11",double-sided)$443.30 Design&Print

Brochures QTY:4,000(5.5"x8.5",8pages)$897.00 Desgin&Print Sendasdirectmailoronrequest

CarWrap Design$350FabricationandInstallation$2,700 Design&Install

InternetMarketing

Website Reservedomain$12.95/year Prep Constantupdateinformation

SocialMedia Basicacoountfree Prep Constantupdateinformation

Interstitialads $0.0025Perinterstitialadx100,000=$250 Design

DirectMarkeitng

DirectMail Postagefee$0.353x5000=$1765 Design&Print

PersonalSelling

PersonalSelling Prep&Training

SalesManagement UseMicrosoftExcel

PublicRelations

TradeShows SOHOSMEExpoExibitionFee$6,696 Prep

GrandOpening Eventbudgetfor50participants$4,000 Prep

Nov Dec

PromotionalTimelineforPrimaData2014May Jun Jul Aug Sep OctJan Feb Mar Apr

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4.2 – Pricing In the increasingly competitive data scanning industry, PrimaData will benchmark its competitors and use an At-market pricing strategy. It will adopt flexible pricing policy that involves customize price quotes that tailored to individual buyers’ needs under different buying situation. The bundle pricing will also be offered to the customers due to the fact that most customers value the package more than the individual items.

Standard Pricing

Price per Image for scanning service

The price is the same for single-sided and double-sided pages. Each scanned side counts as one image. The default resolution is 300dpi. Because some documents will need to be prepared for scanning, such as remove staples, re-staple, remove binding, redo binding after scanning, remove stickers and post-it notes etc. the document preparation service will be charged on top of scanning. The volume discount at various rate will be offered to customers who order more than 10,000 scans.

Document Size 300 dpi

400 dpi

600 dpi

Document Preparation

Black and White Letter / Legal / A4 (up to 8½ " x 14")

12¢ 17¢ 20¢ $30 per hour

Black and White Ledger / A3 (up to 11" x 17") 20¢ 25¢ 30¢

Grey Scale Letter / Legal / A4 (up to 8½ " x 14") 15¢ 25¢ 30¢

Grey Scale Ledger/ A3 (up to 11" x 17") 25¢ 35¢ 40¢

Colour Letter / Legal / A4 (up to 8½ " x 14") 35¢ 55¢ 70¢

Colour Ledger/ A3 (up to 11" x 17") 50¢ 75¢ 90¢

The rates are reduced with larger volumes:

Volume Discount

Up to 10,000 pages 0

10,001 to 50,000 3%

50,001 to 75,000 7%

75,001 to 100,000 10%

Over 100,000 12%

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Price per 100 pages for shredding service

The price for shredding service is charged by every 100 pages. The document preparation fee will be included if the documents need to be prepared to shred.

Volume Price Document Preparation

Up to 100,000 pages (per 100 pages) $15 $30 per hour

Over 100,000 pages (per 100 pages) $12

On-Site Scanning/Shredding

For some documents that contain sensitive information (customer transaction records, financial information, legal document, etc.), PrimaData provide On-Site scanning/shredding services within the Great Vancouver area. The service team will bring all of the required equipment required to scan and manage the documents. The total charge will be $30/hour+ the cost of scanning/shredding.

Off-Site Scanning/Shredding

Once client require for an off-site scanning/shredding service, PrimaData, or a courier company, will pick up documents from customers and scan/shred them in PrimaData’s office. The pickup/deliver is available in Great Vancouver areas and the delivery fee will be charged depends on the amount of the documents.

Pickup or Delivery, Each Trip (one way) Price

Up to 5 standard or comparable paper boxes, up to legal size each (10"x12"x15")

$30 per trip

Over 5 standard or comparable paper boxes, up to legal size each (10"x12"x15")

$10 per box per trip

Bundle Pricing

In order to cater to different customers’ needs, PrimaData will also offer bundles at different prices. Low represents the lowest possible price with the minimum quantity ordered within each level. High represents the highest possible price with the maximum within each level. Median represents the middle price in the bundle.

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Basic Bundle Price Rates Bronze: Paper Conversion 5000 – 10000 pages, normal page rates less 5% Shredding 2000-10000 pages, 15 dollars per 100 pages less 5%

Low: $855 High: $2,565 Median: $1,710

Silver: Paper Conversion 10,001 – 25,000 pages, normal page rates less 7.5% Shredding 10,001- 25,000 pages, 15 dollars per 100 pages less 7.5%

Low: 2,498 High: $6,244 Median: $4,370

Gold: Paper Conversion 25,001 – 50,000 pages, normal page rates less 10% Shredding 25,001 – 50,000 pages, 15 dollars per 100 pages less 10%

Low: $6,075 High: $12,150 Median: $9,113

Platinum: Paper conversion 50,001 – 75,000 pages, normal page rates less 12% Shredding 50,001 – 75,000 pages, 15 dollars per 100 pages less 12%

Low: $11,880 High: $17,820 Median: $14,800

Diamond: Paper conversion over 75,001 pages, normal page rates less 15% Shredding over 75,001 pages, 15 dollars per 100 pages less 15%

Low: $17,212

Deluxe Bundles Price Rates Deluxe Option One: Basic Level (BL) + Website Creation / Re-design

BL + $5000

Deluxe Option Two: BL + Search Engine Optimization (SEO)

BL+ $798 per project

Or BL + $175 per month

Deluxe Option Three: BL + Website Creation / Re-Design + SEO

BL +$ 5798 per project

Or BL + $5000 + $2004 per month

Premium Bundles Price Rate

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Premium Option One: BL + Social Media Integration and Management

BL + $750 down payment + $350 Monthly payment

Premium Option Two: Basic + Deluxe + Social Media Integration and Management

BL + Deluxe Option + $750 Down Payment + $350 monthly payment

5.0 - Organization

5.1 - Bio

Jespeter Liao – Chief Operating Officer (COO)

Jespeter Liao has been attending different advocate tech groups within Vancouver for the past five years since she finished BCIT for Computer Information Systems. Jespeter is highly trained in preforming services that include maximizing information systems to hardware venture within the Greater Vancouver area for the past five years.

Amy Tsai – Chief Marketing Officer (CMO)

Amy Tsai is a BCIT graduate of the Marketing Management program. She was formally invited to work at a marketing agency. From this work experience, her skills in campaign creation and setting marketing strategy was able to flourish. She has an exceptional network within the Vancouver Board of Trades and Small Business B.C. She also found creating events a passion for creating a business herself.

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David Cortese – Chief Financial Officer (CFO)

David Cortese has been a certified accountant with a CPA for the past five years. He has worked with many local companies as their go-to accountant for his impeccable knowledge of favorable business laws and expertise in strict cost management for new tech companies prior to obtaining his CPA.

Allison Stanbury – Chief Sales Officer (CSO)

Allison has worked on various marketing projects and possesses remarkable marketing skills. She has worked in sales and the hospitality industry for over 4 years and has received numerous awards based on her sales performance. Allison recently worked with a Vancouver-based mobile app startup company that aired on CBC’s Dragons’ Den, where she helped the small business with online and traditional marketing. Allison also posses very strong communication, negotiation and management skills

Evan van Niekerk – Investor

Evan, a former BCIT BBA graduate, has spent the past 10 years building his company First Steps Marketing Inc. FSM was a company, which focused on helping start-up companies identify connect and communicate with their specific markets. In September of 2013 FSM was sold to BDC Venture Capitalist with Evan not remaining on as the CEO. Since the sale, Evan has continued to help grow small businesses but now from an investment side rather than marketing.

5.2 - Form of Organization PrimaData will be a provincially incorporated company from day one. This decision is based on the fact that business operations will include the potential handling of confidential information and documents. By setting up as a corporation the shareholders will have a legal barrier in the case that there is any form of

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confidentiality or legal issues. The five shareholders above will be PrimaData’s only initial employees and each will contribute equal time and effort to the company.

5.3 - Ownership

Share Holder Title Investment Shares/Percentage

David C Chief Technology Officer $10,000 1500/15%

Amy T Chief Operations Officer $10,000 1500/15%

Jespeter L Chief Finance Officer $10,000 1500/15%

Allison S Chief Sales Officer $10,000 1500/15%

Evan V Investor $100,000 4000/40%

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5.4 - Implementation Schedule

2014 Description Jan Design Flyers and Brochures

Contact vehicle wrap company to design the car wrap for PrimaData

Reserve the domain www.PrimaData.ca Start to build and design the website Design interstitial ads Open new accounts on social media websites including

Facebook, Twitter, YouTube and LinkedIn Start planning for grand opening event: reserve a venue, find

catering company, invite guests, create agenda Feb Print Flyers and Brochures

Install the car wrap Test and launch the website Confirm interstitial ads design Website and social media sites maintenance

Mar Send direct (e)mail Personal selling and sales management Website and social media sites maintenance

Apr Send direct (e)mails Personal selling and sales management Website and social media sites maintenance

May Send direct (e)mails Personal selling and sales management Website and social media sites maintenance

Jun Send direct (e)mails Personal selling and sales management Website and social media sites maintenance

Jul Send direct (e)mails Personal selling and sales management Website and social media sites maintenance

Aug Start planning for SOHO|SME Expo Send direct (e)mails Personal selling and sales management Website and social media sites maintenance Purchase second shredder Purchase third scanner

Sep Print the promotion items for SOHO|SME Expo Send direct (e)mails Personal selling and sales management Website and social media sites maintenance Purchase second paper bailer

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6.0 - Key Risks

6.1 – Internal Risks

Business Acquisition – Over Estimation of Demand

Acquiring business is going to be a challenge due to the face that the majority of PrimaData’s services rely on hooking the customers within the initial offering of document conversion. If this service does generate as much business as projected the additional services may remain lightly used which will have sales remain low. Response:

PrimaData’s response to this will be to ensure that all additional services are being executed at the highest possible level. This will ideally increase business for the clients and create a situation where PrimaData becomes known and sought after for more than their primary services. On top of this, PrimaData will be putting considerable time and effort in to personal selling and customer relationship management.

Cash-Flow

Much of PrimaData’s business growth will depend on how successful their services are in increasing the client’s efficiency and business volume. Because these results could take a significant amount of time to evaluate, initial sales, and therefore cash flow, could be slow growing. The risk of this is running out of working capital, which would result in an inability to continue business. Response:

The response to this is to first ensure that there is enough working capital budgeted for the start up in order to stay afloat until profitability is achieved. Secondly, PrimaData will have an external investor who will be ready to supply additional funds over the next two years as long as operations are heading in the right direction. Thirdly, PrimaData will focus very hard on communicating the success of their services to the rest of the market via social media, advertising, and word of mouth. Lastly, PrimaData will use a sales allowance to promote early payments.

Oct Attend SOHO|SME Expo Send direct (e)mails Personal selling and sales management Website and social media sites maintenance

Nov Send direct (e)mails Personal selling and sales management Website and social media sites maintenance

Dec Send direct (e)mails Personal selling and sales management Website and social media sites maintenance

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Loss of a Key Member

As PrimaData is a new venture, there is always the risk of someone leaving the company. This would most likely be a result of a difference between how they thought things would be and what they actually are. Response:

PrimaData’s response to this will be that each of the operating partners will have the option to buy an equal amount of the leaving partners shares. If any partner(s) chooses to not purchase their portion of the shares they will be distributed equally among those who do. After this round of repurchase, any remaining shares will be offered to the outside investor. If after this there are still shares not purchased, the partners will then work together to decide whom the remaining shares will be sold to and brought on as the new partner.

Equipment Problems

Because PrimaData’s main line of business relies on a piece of specialized equipment any failure or malfunction will result in a failure to deliver the promised service. This will result in a negative reputation and lower chance of repeat business and business generation due to negative word of mouth. Response:

PrimaData will purchase two of the scanners being used. One will be used as the primary piece of equipment and the other will remain on standby in case the primary piece breaks down or if there is increased document conversion volume. When business reaches the point where the second machine is being used on a regular basis, a third scanner will be purchased as standby equipment.

6.2 - External Risks

Small Business Window

Because the current trend has moved to most filing, records and documentation being created and stored electronically, the market for businesses needing document conversion will be shrinking constantly. This will result in an eventual and gradual decrease in business over the next several years to the point where document conversation will not be viable as a primary offering. Response:

PrimaData has and will continue to position themselves to grow and evolve over time. A large part of the documentation conversion is obtaining customers who they can then target for their other services. The long-term goal of PrimaData is to focus more and more their web and social management services so that they are not affected by the environmental change described above.

Competition trying to strong arm us/keep us out

Both of the companies, Iron Mountain Canada and B.C. Record Services, have been identified as PrimaData’s direct competitors. Both companies are large in size and

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have successfully gained at large client base. Because of this, there is a risk that these competitors will use their size as leverage to make PrimaData’s entrance to the market more difficult. Response:

PrimaData has recognized this risk and has created a portfolio of services that is differentiated from those of the competition. This will ideally prevent excessive customer and business loss because the target market is not identical and PrimaData will be able to draw in customers whose needs cannot be met by the competition.

Technology – Personal Scanning Products

One of the largest risks to PrimaData will be from technology. There are already products on the market that help people convert their paper documents into electronic files. These along with any new products that will be entering the market will have a high likelihood of taking and increasing portion of the market. Response:

PrimaData will be offering services above and beyond just document conversion, which will ideally draw customers away from these products. Also, by offering flexible schedule and affordable prices PrimaData will show that their services are more affordable and affective than renting/buying the products then using company time to use them.

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7.0 - Financial Requirements and Cash Flow Projections

7.1 - Start Up Costs and Funds Prima Data

RequiredExpeniture Cost

WorkVan

Van $5,000.00

Carwrap $3,500.00

Liciensing

BusinessLiciense $350.00

IncorporationFees $200.00

WorkSafe $1,010.00

Insurance

GeneralLiability $3,500.00

Vehicle $1,267.00

PortableScannerx2 $895.89

Uniforms $100.00

OfficeSign $2,000.00

OfficeLeaseDownPayment $6,811.38

Marketing $1,342.00

PaperBaler $3,500.00

Shredder $2,200.00

OfficeEquipment $5,000.00

Certificates,Filing,andOtherDocuments

ReplacementRegistrationDocuments $33.60

CertificateofGoodStanding $44.80

AnnualReportFiling $84.00

SocietySearch $22.40

WorkingCapitalrequirement $99,255.00

TotalStartupCost $136,116.06

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7.2 - Cash Flow Projection

Pro-Forma Cash Flow Statement For Year Ending: 2014

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Month: 2014

Cash In

Collection From Credit Card & Cheque Sales 1,200 1,691 1,357 1,566 1,670 1,983 2,088 2,547 2,714 3,027

Collection from Credit Term Sales 855 1,710 2,513 3,248 3,770 3,883 4,545 5,384

Total Cash Receipts 0 0 1,200 2,546 3,067 1,566 4,183 5,231 5,858 6,430 7,259 8,411 45,750

Cash Out

Salaries 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 40,000$

Office Lease 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 9,082$

Work Van 376$ 376$ 376$ 376$ 376$ 376$ 376$ 376$ 376$ 376$ 376$ 376$ 4,516$

Repair & Maintenance Allowance 500$ 500$ 500$ 500$ 500$ 500$ 500$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 8,500$

Office Supplies 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 7,800$

Scanner 447$ 447$ 894$

Credit Transaction Fees -$ -$ 30$ 42$ 34$ 39$ 42$ 50$ 52$ 64$ 68$ 76$ 496$

Pallet Jack 499$ 499$

Pallets 500$ 500$ 550$ 650$ 750$ 750$ 550$ 700$ 800$ 650$ 750$ 800$ 7,950$

Shredder 2,200$ 2,200$ 4,400$

Small Paper Baler 3,500$ 3,500$

Insurance 1,267$ 1,267$

Marketing -$

Flyer 222$ 222$ 64$ 508$

Brouchures 449$ 449$ 898$

Direct Mail 229$ 247$ 282$ 88$ 106$ 247$ 212$ 194$ 71$ 88$ 1,765$

Trade show 6,696$ 6,696$

Grand opening 4,000$ 4,000$

Tax 240$ 509$ 613$ 313$ 837$ 1,046$ 1,172$ 1,286$ 1,452$ 1,682$ 9,150$

Total Cash Payments 7,866 3,454 11,333 7,732 7,963 7,474 7,817 18,169 12,519 9,041 9,123 9,429 111,919$

Cashflow Surplus/Deficit (-) (7,866) (3,454) (10,132) (5,186) (4,896) (5,908) (3,634) (12,938) (6,661) (2,611) (1,865) (1,018) (66,170)

Opening Cash Balance (7,866) (11,320) (21,452) (26,638) (31,534) (37,442) (41,076) (54,014) (60,675) (63,287) (65,151) (66,170)

Closing Cash Balance (7,866) (11,320) (21,452) (26,638) (31,534) (37,442) (41,076) (54,014) (60,675) (63,287) (65,151) (66,170) (132,339)

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Company Name PrimaData

Pro-Forma Cash Flow Statement For Year Ending: 2015

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Month: 2015

Cash In

Collection From Credit Sales 3,015 3,340 3,549 3,862 3,758 3,862 5,010 5,845 6,263 6,784 7,306 8,350

Collection from Credit Sales (previous) 7,071 5,605 6,780 7,410 6,775 6,323 5,209 6,430 10,243 10,243 6,800 7,029

Total Cash Receipts 10,086 8,945 10,329 11,272 10,533 10,185 10,219 12,275 16,506 17,027 14,106 15,379 146,861

Cash Out

Salaries 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 48,000$

Office Lease 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 757$ 9,082$

Work Van 627$ 627$ 627$ 627$ 627$ 627$ 627$ 627$ 627$ 627$ 627$ 627$ 7,526$

Repair & Maintenance Allowance 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 15,000$

Office Supplies 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 650$ 7,800$

Credit Transaction Fees 75$ 84$ 89$ 97$ 94$ 97$ 125$ 146$ 157$ 170$ 183$ 209$ 1,524$

Pallet Jack 499$ 499$

Pallets 1,250$ 1,300$ 1,300$ 1,350$ 1,400$ 1,400$ 650$ 1,100$ 1,550$ 1,050$ 1,300$ 1,450$ 15,100$

Insurance 1,267$ 1,267$

Marketing -$

Flyer 444$ 444$

Brochure 898$ 898$

Direct Mail 106$ 88$ 177$ 212$ 282$ 71$ 106$ 247$ 141$ 194$ 53$ 88$ 1,765$

Tradeshow 6,696.00$ 6,696$

Tax 2,017.15$ 1,789.00$ 2,065.75$ 2,254.38$ 2,106.50$ 2,036.98$ 2,043.80$ 2,455.00$ 3,301.10$ 3,405.48$ 2,821.25$ 3,075.80$ 29,372$

Total Cash Payments 11,823 8,756 8,849 8,942 9,060 8,851 8,165 15,473 9,132 8,698 8,820 9,031 115,601$

Cashflow Surplus/Deficit (-) (1,738) 189 1,480 2,330 1,472 1,334 2,054 (3,198) 7,374 8,330 5,287 6,348 31,260

Opening Cash Balance (1,738) (1,548) (69) 2,261 3,733 5,067 7,121 3,922 11,296 19,626 24,912 31,260

Closing Cash Balance (1,738) (1,548) (69) 2,261 3,733 5,067 7,121 3,922 11,296 19,626 24,912 31,260 62,521

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7.3 - Explanation of Assumptions

Start Up Cost Notes

Note 1: Work van based on 2013 GMC Savana Cargo 5 year financing with 4% interest rate. PrimaData will put a $5000 down payment on the $26,710 van. Note 2: Office Lease: Based on a Davies Hall listing 3-year lease for the office and warehouse. (2519 sq. ft, $9/ft + $4.52/ft. for operation costs). For start up PrimaData will use a 20% down payment. Note 3: Paper Baler based on the cost of a small paper baler made by BOBO Machine co Ltd out of China. Note 4: Portable Scanner based on the cost of two “Neat Desk” scanners just in case one breaks down. Note 5: All regulatory costs based off Small Business BC’s website. Note 6: Working Capital Requirement determined to be $67,870. Due to being a new company PrimaData will be taking out an additional 50% on top. Note 7: Uniforms was based on having to purchase 4 custom made shirts for the time being. $20 a shirt was allotted to cover the cost. Note 8: Office Equipment includes computers and office supplies. Computers will be ordered by part and put together by David Cortese to save costs. Note 9: Although we have a website, PrimaData will be uses its own website designer to create it.

Cash Flow Notes

Note 10: Salaries based on everyone except for Evan getting paid $1000 per month. Also salaries don’t start until company officially opens for business. Note 11: Office Lease: Based on a Davies Hall listing 3-year lease for the office and warehouse. (2519 Total square feet, Cost $9 a sq. foot plus $4.52 a square foot for operation costs).

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Note 12: Work Van: Based on a 2014 GMC Savana Cargo 5 year finance plan with a 4% interest rate, minus the down payment of $5000. Note 13: Another shredder, scanner, paper baler and pallet jack will be purchased to keep up with increased demand and will be utilized more heavily for the following year. Note 14: Credit card transaction fees are assumed to be 2.5%. Note 15: Pallets are purchased based on the approximate level of shredding for the following month. Note 16: Repair and Maintenance allowances increases as new equipment is added in. Note 17: Assume 80% of files converted will be black and white normal size (12 cents option), 15% color (35 cents option) and 5% the rest. Note 18: Assume no bundles will be sold in the first few months while PrimaData builds reputation. Note 19: Assume the tradeshow brings in more clients and more bundles are sold during this month. PrimaData has forecasted for seasonal changes with the high seasons being around the trade show (Aug-Oct) and around the grand opening / anniversary (Mar-May) where we increase the amount spent on marketing. Note 20: Majority of the sales to begin with will be one-time services with PrimaData’s main revenue streams, paper conversion and shredding. These clients will most likely pay by credit card or cheque right after work is completed. Bundles will be on terms of n/30 due to larger payment size and to be in accordance to their buying criteria with such amounts. Note 21: Brochures and flyers will be designed and printed in the first two months of each year and will be distributed throughout the year. The distribution will follow the same pattern as the direct mail in which it is sent out (higher quantity during busy seasons). Brochures and flyers were done this way to maximize on the order quantity discount. Note 22: Sales are scaled based on start up period, marketing, trade shows and building. Note 23: Basic bundle is determined by have a realistic as possible mix of low, high, and average costs of each level. For example, for the beginning start up period it is assumed that bundles will be sold at the lowest end of paper conversion and shredding. As the company continues on deluxe and premium bundles will be sold with varying subscription and project based revenues added into the mix.

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Note 24: 10 bundles are sold in the first year. Without the bundle option a maximum of 14,500/mo papers are converted, with only 30% of these added to shredding revenue to provide a realistic first year. Second year a maximum 40,000/mo papers converted, with 30% of these will be shredded without bundle option. 19 bundles will be sold, 3 SEO subscriptions, 2 LinkedIn management subscriptions and 5 project based SEO and LinkedIn being purchased by clients. Note 25: When purchasing a bundle, any unused paper conversion or shredding will be given as credit to the client. This allows us to get the revenue from the bundle up front and only have to “pay back” the customer when they need the service again. This will help with keeping cash flow consistent and reducing bad debt expense. Note 26: Tax is estimated at 20% of revenues. Note 27: Vehicle insurance is based on personal experience with company insurance and is estimated at $1267 yearly rate. PrimaData will pay yearly to save money on the cost.

Month Milestone January 2014 Acquire equipment, van & office March 2014 Grand Opening August 2014 Attend first trade show February 2015 First month of positive cash flow

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Appendix

Appendix A – Marketing Material (Flyer Mockup)

Appendix A- Flyer mock u

PrimaData will assist your small

businesses by converting their paper

documents into electronic format.

You can securely shred and dispose

your old paper documents.

Website management will include

helping the company with the

construction and maintenance of

your business website.

LinkedIn management will increase

your company’s social presence

within the business professional

world.

Converting paper documents to

electronic files significantly reduces

document access times, and

improves both access and security for

key records such as contracts, human

resource files and invoices.

PrimaData assists your small business

by converting your paper documents

into electronic format. By using

specialized equipment to create

searchable PDF files, you can easily

access these files without the hassle

of flipping through paper indexes.

Once the documents have been

converted to electronic format, you

will have the option to securely shred

and dispose their old paper

documents for an additional charge

as well as web services to maximize

your newly optimized system.

PrimaData