Guardian Transition Services, Inc.

Business Plan Presentation

SaraAnn Wiens Business Administration – Accounting

Introduction, Goals & Objectives, Product & Services

Sarah Amsden Business Administration – Management

Marketing Plan

Laraine Porrazzo Business Administration – Information Systems

Operations, Management & Organization

Courtney Keil Business Administration – AccountingFinancial Plan & Financial Statements

James Laqua Business Administration – Finance

Financial Analysis & Action Plan

Vision Statement Guardian Transition Services, Inc. exists to change the lives of

people affected by autism, who believed they had little chance at a peaceful and happy life. Autistics want to take charge of their own lives and learn the social and job skills required for real world independence. Every parent of an autistic hopes that his or her child will gain the social and relational skills needed to provide a fulfilling life. Guardian Transition Services, Inc. answers that desire through its virtual technology training, counseling, and guidance solution.

Mission Statement Our goal is independence and self-reliance for as many of

those in the autistic spectrum as we can reach, and then to reach further than we believed possible.

Introduction

Goals and Objectives Phase 1

Office building with 2,500-5,000 square feetFirst floor for easy access 

Office space includes rooms for executive director, a counselor, a computer programmer, computer training, and the servers. An open area where the office manager would sit,

work and greet customersOne to two conference roomsSoftware training roomMeeting room

Monthly budget of $5,000, including all utilities and parkingWould appreciate if someone donated the office space

to the company  Phase 2

House that is 3,000-3,500 square feet for a group home for students

Five bedrooms is preferredHouses 8-10 students and 1 room for a group leader

SWOT Analysis (Strengths, Weaknesses, Opportunities & Threats)

Guardian Transition Services, Inc. is a developing Social Entrepreneurship . The company is in an industry with no competitors, high supplier power with respect to the donors and low power of buyers. The economy is still in a slight slump, but is on the rise. Interest rates are still fairly low. The population is more health conscious than it has ever been before and people are always looking for new treatment opportunities.

Positive Findings Negative Findings

Internal Environment

Specific service Fewer employees Specialized

software

Lacking financial resources

No brand or name recognition 

External Environment

Economy recovery projected

Low interest rates for lending

Few competitors

Threat of substitutes possible

Non-profit rules and regulations

Small population

DescriptionThe service provided is highly specialized and

customizedUses a virtual reality program, Second Life, to

teach people with autism and Asperger’s syndromes social, vocational and life skills. The program is designed to prepare people for real life

experiences in a safe environment and transition them back into the community based on their abilities.

Clients will create their own avatars that will function through a series of modules that will help them develop their talents and place them into a job in the community.

Products and Services

Products and ServicesPricing

Guardian Transition Services, Inc. offers the program with a sign up cost of $250.

Also, a monthly charge of $200 to cover software training and counseling expenses.

Sponsorships and donations are received from fundraisers to sponsor clients who cannot afford this cost.

Companies, who partner with Guardian Transition Services, Inc. and hire the trained clients, will pay a placement fee of $1,000.

Market ResearchSecondary

Economic Development Council Easter Seals

IndustryU.S. population is approximately 313 million One in 88 children diagnosed with autism

yearlyMarket

People with autism or Asperger’s in Montana18-35 years of age

Marketing Plan

Marketing Plan, continued

DemographicsMale and femaleBillings areaAll income levelsAny social class

Psychographics

2010 2011 2012 2013 2014 2015 2016Billings population 104,170 105,826 107,509 109,218 110,955 112,719 114,511 Growth per year 1.59% 1.59% 1.59% 1.59% 1.59% 1.59% 1.59%Population growth 1,656 1,683 1,709 1,737 1,764 1,792 1,821

105,826 107,509 109,218 110,955 112,719 114,511 116,332 Austistic % 0.909% 0.909% 0.909% 0.909% 0.909% 0.909% 0.909%People with Autism 947 962 977 993 1,009 1,025 1,041

Marketing Plan, continuedProduct

Teach high functioning autistics a variety of life skills

The benefit Virtual world

PromotionPersonal selling

Pros ConsCosts

Fundraising ProsConsCosts

Marketing Plan, continuedBudget

Price$250 sign up$200 monthlySponsorships

PlaceOfficeAtmosphere

2012 2013 2014 2015 2016Marketing $5,000 $15,000 $20,000 $20,000 $20,000

Marketing Plan, continuedCompetitor Analysis

No competitors at this timeSales Forecast

Sales Forecast2012 2013 2014 2015 2016

Training 100,000$ 240,000$ 300,000$ 300,000$ 300,000$ Mark up on software 4,250$ 8,500$ 8,500$ 8,500$ 8,500$

Trainee fees $200/month $250/month $250/month $250/month $250/monthTotal for Year $1,000 $3,000 $3,000 $3,000 $3,000

Facilities - Proposed Location: 2940 Grand Ave

Operations Plan

2940 Grand Avenue

Relevant Local, State, and Federal Regulations Local – Zoning and all other general business laws

State - Montana is the 10th state to sign a bill to specifically require insurers to provide coverage for the treatment of autism. 

Federal - The Combating Autism Reauthorization Act (CARA) of 2011, HR.2005, was signed into law on September 30, 2011 by President Obama, securing the federal response to the national and public health emergency posed by autism spectrum disorders. The law authorizes $693 million in continued federal investment over three years for autism research, treatment and services

Combating Autism Act was enacted in 2006

Personnel -Currently there are no personnel, but after the fundraiser event, the organization plans to hire the people who are currently working on the software development team. This is the most important part of the project because this is Guardian Transition Services, Inc.’s product. After the operations of the company start to pick up there will be additional hiring.

Operations Plan

Suppliers-Guardian Transition Services, Inc. will not be using a supplier because the company has its own product designed by a software development team. The computer operations room will be located on-site and will be managed by the computer programmer.

Credit Policies-As a new business starting up, there will be no credit extended. Guardian Transition Services, Inc. will accept cash or credit/debit payments for services. Insurance billing will take place once it has the ability to offer counseling, therapy, and comply with HIPAA. This process is usually about two years, but could take longer.

Operations Plan

Management StructureThe structure will follow the guidelines of a non-profit once it is formed. The executive director will manage the operations and staff once the business is established. Currently Guardian Transition Services, Inc. is managed by The Board of Directors.

Organizational CultureThe primary responsibility of the leaders in this company is to create and maintain the organizational characteristics that reward and encourage a collective effort for the greater cause of helping others. Every board member offers a specific qualification that will help with the growth and culture of this organization. Future employees will require the characteristics of a person who wants to help others achieve their goals and has the ability to aid the company in moving their mission forward. The working environment will be a positive and enjoyable setting that is family-friendly. The culture of this organization will take pride in its accomplishments and be dedicated to the clientele. Some of the other important skills they obtain are:

Management and Organization

Advisory SupportThe board of directors is diversified and will be highly involved within the business structure. The board’s combined knowledge will be used throughout each committee (see flow chart below) and will provide an abundance of advisory support throughout the organization.

Professional QualificationsMarcus Morris-Highly functioning autistic and founder of Guardian Transition Services, Inc.

Management and Organization

Financial AssumptionsPro forma financial statements

Income statementBalance sheetCash Flow statement

Financial Plan

Donations and participation feesExpecting to raise a minimum of $50,000 at

first fundraiserAdditional $10,000 for the next two fundraiser

eventsExpect to raise $65,000 in 2015 and $75,000 in

2016Expect 100 participants, $200 per month in

first yearIncrease in price to $250 a month after the

second year

Financial Assumptions

2012 2013 2014 2015 2016IncomeDonations 50,000$ 60,000$ 60,000$ 65,000$ 75,000$ Training 100,000$ 240,000$ 300,000$ 300,000$ 300,000$ Mark up on software 7,500$ 15,000$ 15,000$ 15,000$ 15,000$ Placement Fees for Business -$ 10,000$ 20,000$ 30,000$ 40,000$ Linden Money Trainee Earnings -$ 6,000$ 12,000$ 12,000$ 12,000$

Total Income 157,500$ 331,000$ 407,000$ 422,000$ 442,000$

Expenses

Purchase Linden Labs Virtual Land 1,000$ -$ -$ -$ -$ Monthly Maintenance Fee for Linden Labs Virtual Land 3,000$ 3,300$ 3,600$ 4,000$ 4,400$

Travel reimbursements 3,000$ 7,500$ 10,000$ 10,000$ 10,000$ Marketing costs 5,000$ 15,000$ 20,000$ 20,000$ 20,000$

Office supplies (paper, postage, printer ink, etc.) 1,000$ 1,500$ 2,000$ 2,500$ 3,000$ Office equipment (computer, printer, copier, etc.) 5,000$ 6,000$ 7,000$ 8,000$ 9,000$

Insurance, including director and officer liability 5,000$ 10,000$ 11,000$ 12,000$ 13,000$ Website Hosting and Maintenance 2,500$ 5,000$ 5,000$ 5,000$ 5,000$ Payroll taxes and workers compensation 15,000$ 32,000$ 35,000$ 37,000$ 40,000$

Executive Business Manager -$ 24,000$ 30,000$ 36,000$ 42,000$ Virtual Software Engineer, QA, and Designer 50,000$ 100,000$ 135,000$ 150,000$ 150,000$

Office and Administration Manager 12,000$ 25,000$ 26,000$ 27,000$ 28,000$ Counseler/Social Manager 17,500$ 36,000$ 37,000$ 38,000$ 38,000$ Rent for Office Includes utilities 30,000$ 60,000$ 60,000$ 60,000$ 60,000$

Miscellaneous 5,000$ 5,000$ 10,000$ 10,000$ 10,000$ 155,000$ 330,300$ 391,600$ 419,500$ 432,400$

Net Income 2,500$ 700$ 15,400$ 2,500$ 9,600$

Guardian Transition Services, Inc. Income Statement

2012 2013 2014 2015 2016AssetsCash 2,500$ 700$ 15,400$ 2,500$ 9,600$

Accounts Receivable 100,000 240,000 300,000 300,000 300,000

Total Assets 102,500 240,700 315,400 302,500 309,600

Liabilties and Fund BalanceFundraiser Payable 7,000 7,000 7,000 7,000 7,000 Rent Payable 16,800 16,800 16,800 16,800 16,800 Mortgage Payable - - - - 20,811 Fund Balance 78,700 216,900 291,600 278,700 264,989

Total Liabilities and Fund Balance 102,500$ 240,700$ 315,400$ 302,500$ 309,600$

Guardian Transition Services, Inc. Balance Sheet

2012 2013 2014 2015 2016

Beginning Cash -$ 2,500$ 3,200$ 18,600$ 21,100$

Additions to Cash 2,500 700 15,400 2,500 9,600

Substractions from Cash - - - - -

Cash End of Period 2,500$ 3,200$ 18,600$ 21,100$ 30,700$

Guardian Transition Services, Inc. Cash Flow Statement

For year ended 12/31

Industry/Competitor BenchmarkingIt is a new industry with no current

competitors to compare. Six Financial Criteria

Payback analysis for the group homeAbout 11 years (factoring in homeowner bills)10 participants multiplied by $500 a month

($60,000 a year)/30 yr. mortgage of $624,330. $1734.25 per month*12 = 20,811.00 per year

Financial Analysis

Sensitivity Testing The sensitivity testing looks at both the factors of worst and best

case scenarios. A. Worst-case scenarios

Number of participantsDonations

B. Best-case scenariosNumber of participantsDonationsCutting expenses

Risk Analyses and Contingency Plans Keeping enough cash flowing in. Reduce administrative expenses. Increase amount of donations

Financial Analysis

Strategic Options Our Business team has recommended that Guardian

Transition Services, Inc. uses the office space that we have provided, which would be cheaper than the allocated $5,000 monthly rental budget. Pros

Save close to $3,000 a monthFurnished alreadyGreat location

ConsStill have monthly rent paymentsLiability of not owning office space and furniture

Analysis of Strategic Options

Liability of not owning office space and furniture Our business team also recommended to hold off on the

group home idea until financing is stable to support the home. Pros

Concentrating fully on perfecting the office space and virtual training world

No mortgage paymentNo additional administration expenses

ConsTrainees from outside of Billings do not have housingNo rental income

Analysis of Strategic Options

Fundraiser will be held on April 21, 2012, with all proceeds going towards the startup of Guardian Transition Services, Inc..

 Obtain office space by beginning of July, in

order to be up and running by August 1.  Startup date is August 1, 2012.

Action Plan

Thank you for your time!

Questions?