MIS SAP Business Plan

Target Market ............................................................................................................... 4 Our Services ................................................................................................................ 4 Target Customers ........................................................................................................ 5 Potential Competitors ................................................................................................... 6 Pricing .......................................................................................................................... 7 Marketing & Advertising Plans & Costs ........................................................................ 7 Potential Partners......................................................................................................... 8

Company Structure .................................................................................................... 10 Key Positions ............................................................................................................. 11 The Team at Maple Leaf Solutions ............................................................................ 14 Board of Advisors ....................................................................................................... 17 Growth in the Maple Leaf Solutions Staff ................................................................... 18 Revenue From Employees ......................................................................................... 19 Office Space & Costs ................................................................................................. 20 Office Technology & Costs ......................................................................................... 21

691 East 65th Ave Vancouver, BC 1-800-MPL-LEAF [email protected] mapleleafsolutions.ca

Maple Leaf Solutions’ LLC is comprised of many talented and versatile employees with past experiences’ in almost any field imaginable. It is our goal to provide SAP Business One to our customers with top notch customer service and an in depth training seminar. Our training seminars will allow our customers to expand their businesses, which will in turn grow our business through word of mouth. Being a startup company, we are looking to capitalize on the following goals: 1. Provide a low cost, yet highly effective product. 2. Expand our customer base each of the first five years. 3. Increase profits at the end of every year. In order for Maple Leaf Solutions’ to accomplish these goals, we must first piece together a strategic plan for success. By locating Maple Leaf Solutions’ LLC in Vancouver we are setting ourselves up for success because of the open market and the vast opportunities available to us. We are striving to establish a strongly rooted company in Vancouver that is well known for their high levels of customer service and high quality of product. We believe that our business will enable other local businesses to flourish at little expense to them. Our transition from the old system to SAP Business One will be one of ease due to our phenomenal support staff, and with customer services readily available to our customers, we are confident that our everyone will be satisfied. Funding Maple Leaf Solutions’ LLC does not appear to pose any problems due to the fact that all seven founders, Ms. Melia R. Pinkas, Ms. Regina B. Goltra, Ms. Anna R. Frye, Mr. Daniel R. Vasinko, Ms. Dawn M. March, Ms. Mara L. Greiner, and Mr. Edward J. Crowe, will equally contribute $30,000 coming to a grand total of $210,000. Furthermore, we are requesting a bank loan totaling $200,000 for additional startup costs. With our $410,000 we feel confident in our abilities to exploit the Vancouver SAP Business One market and capture a large portion of the market share. Below, you can review a five year graph of projected yearly figures.

-500000

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

1 2 3 4 5

In (

$)

Year

Revenue

Expenses

Profit


It is quite evident that with our bright and dedicated employees we will achieve our third

goal, increase profits at the end of every year.

Maple Leaf Solutions’ LLC is targeting primarily small to medium sized manufacturing and

supply companies in and around the Vancouver area with no more than 250 employees.

With such a large potential customer region we are investing a total of $30,000 in marketing

and advertising within the first two years, $15,000 each year. Our world class marketing

team is determined to spread the word of Maple Leaf Solutions’ LLC. Also, along with our

outstanding marketing and advertising we plan to partner with Small Business’s British

Columbia, (www.smallbusinessbc.ca), and host seminars for their organization, while

obtaining advertising space on their website. Moreover, we have decided to partner with

Automatic Data Processing, ADP, (http://www.adp.ca/) who is a payroll company. By

partnering with this payroll company we will alleviate the stress and time spent calculating

our own payroll. Both of our partners, SMBBC and ADP, will provide us with beneficial

services that will allow us to concentrate our focus on our customers and obtaining new

customers while maintaining a high level of organization within the office.

Along with the President Mr. Edward J. Crowe, the Manager of Sales and Marketing Ms.

Dawn M. March, the Manager of Administration Ms. Regina A. Goltra, and the Manager of

Consulting Ms. Anna R. Frye, our board of directors will also include ADP’s CEO Mr. Gary

Butler, Small Business BC’s CEO Mr. Ken Stratford, Stephen Jagger(a local entrepreneur

with expertise in starting a business), Jacques Daniels Shoemaker- Head of ―Leaf Squad‖

and a local investment banker. Having such a diverse Board of Directors will ensure that we

have expertise in every vital aspect of the business process. It is our hope to retain the

Board of Directors because we feel that their strong and authoritative presence will

encourage effective and efficient work and also help attract new customers through their

prior connections.

I would like to end with a quote that our company bases our beliefs on:

http://www.smallbusinessbc.ca/

http://www.adp.ca/


Maple Leaf Solutions is located in Vancouver Canada. Named after British Captain George Vancouver, the city has a population of 578,041, and the metropolitan area has a population of 2,116,581. This population makes Vancouver the third-largest area in the country, and the largest city in Western Canada. Vancouver has become a very diverse city, with 52% of the population not speaking English as their first language, and 30% being of Chinese descent. Vancouver is ranked one of the most livable cities in the world, and is the only city to have stayed on this list for five years in a row. Because of the city’s location in the Pacific Rim, and its many rail road routes, Vancouver is a major industrial center of the country. Forest products and mining companies are some of the larger industries. In addition, Vancouver’s scenic location makes tourism a large industry in the city. Vancouver is also growing in software development, film, and biotechnology. From our location in Vancouver, we plan to provide services to areas throughout British Colombia as well. With the economy of the region being mostly construction and retail services, we believe our products and services will do well in the region.

Our main product will be selling SAP Business One. This software system is an enterprise resource planning (ERP) system, and is geared towards small to medium business, 50 to 250 employees in size. The SAP Business One application integrates all core business functions across your entire company – including financials, sales, customer relationship management, inventory, and operations. Unlike many other small business solutions on the market today, SAP Business One is a single application, eliminating the need for separate installations and complex integration of multiple modules. Our services will include installation of the software, installation of upgrades, training for customers’ employees on using the software, support for the programs, and providing additional hardware and/or software service add-ons as needed. In addition to the services mention, we also plan to have a professional IT service known as the ―Leaf Squad.‖ The Leaf Squad will be available for general information technology questions and problems our clients encounter. This option of having IT service outsourced as opposed to having an IT staff in their own company is a cost efficient option for our small-to-medium business clients.


We plan to offer support with our services as well. To start off, we plan to provide support with installation for every order. In addition, we assist with upgrades to our clients with larger employee numbers. Also, we will offer a free training session for the initial installation, and additional sessions can be done for an additional. We will offer this support 5 days a week, about 10 hours a day. We understand that there may be other times that businesses need our help, but we do not have the manpower to keep the phone lines open 24/7. Support can be reached through phone, email, and the FAQ on our website.

Maple Leaf Solutions will be targeting small to medium sized manufacturing companies. Vancouver has a variety of industries, including mining, biotech, film and software. Maple Leaf will put the majority of its marketing efforts towards these industries. A few target customers are listed below.

Hecla Mining Company has over 100

years of experience in mining silver. Their headquarters are located in Coeur d’Alene, Idaho, but they have a sister office in Vancouver, making them an ideal customer for Maple Leaf Solutions. Hecla produced 10.6 million ounces of silver in 2010 alone, with an average cost per ounce of negative $1.46, proving they are experienced and highly developed.

Ruden Manufacturing produces

custom and standard parts for mining and drilling companies. Located in Burnaby, British Columbia, Ruden Manufacturing is only about eight miles away from Maple Leaf Solutions Headquarters. Ruden Manufacturing has many years of experience, and has worked with drilling contractors and engineers. They have also worked in the geotechnical and diamond drilling industries.

Williams & White, founded in 1957, is a leading

manufacturing, equipment, and automation leader. Williams & White specializes in producing saw knives and other cutting tools. They are a part of the forestry industry and the machining industry, making them an ideal customer for Maple Leaf Solutions.


TimberWest was incorporated in

1997, and is Western Canada’s largest timber and land management company. Forestry being one of the top industries in Vancouver makes TimberWest an excellent target customer. TimberWest leads the coastal industry in growing and harvesting timber, and uses the best out of its land. They identify strategies for both sustainable forest management and real estate. TimberWest values their people, environment, innovation, and success, which makes them a great target customer.

The RSC Group is a large and very

experienced partner with Microsoft Dynamics, a competitor software of SAP Business One. They have

been in business since 1989, and have over 800 customers. The RSC Group has an office located in Vancouver, which would make it one of Maple Leaf Solutions top competitor.

SAP Canada is a direct seller of SAP

Business One, and a part of the SAP Company. SAP Canada not only sells SAP Business One, but also provides solutions and services. Since SAP Canada sell SAP Business One directly, they will also be a large competitor to Maple Leaf Solutions. SAP Canada has a training location in Vancouver.

Coastal Range Systems is located in British Columbia, and is one

of the fastest growing systems integration competitors in Canada. Coastal Range Systems is a reseller of SAP Business One, and is both a SAP Business One Gold Partner, and a Gold Certified Partner with Microsoft. Since they both sell SAP Business One, and are partnered with Microsoft, a selling a Microsoft Dynamics, they may be one of the closet competitors.


The SAP Business One software will cost each customer $3,000 per user. Maple Leaf Solutions will gain much of their revenue through services that come along with the purchase of SAP Business One. Hours spent implementing SAP Business One will vary with each individual customer. Each basic customer will have roughly between 150-200 hours per year, while each average customer 300-450 hours per year. A comprehensive customer may have up to 1,000 implementation hours per year. Maple Leaf customers will pay about $150 per service hour.

Maple Leaf Solutions also offers a unique service, The Leaf Squad. The Leaf Squad offers assistance with computers and networking, hardware and software repair, and assistance with SAP Business One. For customers to utilize Leaf Squad, they must pay a small fee of $20 per month, while additional fees can range from $10 to $500, based on the need and subject of the problem.

Maple Leaf Solutions decided to spend about $10,000 of the $15,000 budget on advertising for the company, and is spending the additional $5,000 on advertising for Leaf Squad. The advertising is split up into two different sections because the advertising for each will be different.

Maple Leaf Solutions, in its first two years, will be spending $900 on one radio advertisement. Maple Leaf Solutions will advertise on 103.5 QM/FM Today’s Soft Rock. Maple Leaf chose to do a radio ad within the first two years of business because we need to get our name out in any way possible. We chose to advertise with a soft rock station because a lot of businesses often have a soft rock radio station playing throughout their offices. We also decided to put a lot into our print ads. In Business in Vancouver Weekly, we decided to take out a full page ad in color for the first two years. Per year, this totals $1,440. We also bought a half page premium ad for the Business in Vancouver Weekly website, at $1,575 per year. In BC Tech, a business magazine, we decided to purchase two half page ads for the year. When purchasing an ad in the magazine, if you buy two, you receive a 15% discount. Maple Leaf Solutions purchased two half page ads with spot color, each costing $2,710. With the discount, Maple Leaf Solutions ended up paying $4,607 total. BC Tech also offers free online advertising with each ad purchased.


We also plan to send out postcard mailings, followed up by personal phone calls. Every other week, 30 postcards will be sent out to various potential customers. Including printing costs and postage, $1,137.60 will be spent for the first and second years. Maple Leaf Solutions is also planning to submit our name and a brief company biography to Vancouver Small Business (vancouversmallbusiness.ca), an online site that showcases businesses and gives business tips to owners and employees. The advertising through Vancouver Small Business is free. An additional $340 is set aside for any additional postage, or reprints for Maple Leaf Solutions’ mailers. In years three through five, advertising on the radio and in the publications will slightly decrease, while mailers with information to new and pervious customers about our products, services, and upgrades will be sent out. Maple Leaf Solutions will also utilize free social media sites such as Facebook and Twitter for advertising as well. Promotions will often run on these sites—such as 10% off your next upgrade for the first 5 followers on Facebook—encouraging more followers. Find Maple Leaf Solutions on Facebook at www.facebook.com/mplleafsol and follow Maple Leaf Solutions on Twitter at @mplleafsol. The pie chart below shows where all of the advertising funds are going.

Radio

BC Tech

Business in Vancouver Weekly Publication

Business in Vancouver Weekly Online

Mailers: Printing

Mailers: Postage

Additional Costs

http://www.facebook.com/mplleafsol


Maple Leaf Solutions plans to market Leaf Squad with billboard advertisements and mailers as well. Maple Leaf Solutions will send out the same amount of mailers costing $1,137.60. In addition to doing mailers, Maple Leaf Solutions will also have a few billboard ads. Billboard ads run about $800 per month. We chose to have a billboard ad featuring our Leaf

Squad Head Technician, Jacques Daniels Shoemaker, three months out of the year, totaling $2,400. Maple Leaf Solutions also plans to advertise our Leaf Squad in Business in Vancouver Weekly with a quarter page classified ad that will be in 12 issues, costing $567, as well as in BC Tech with a black and white banner totaling $870. The additional $25 will be spent on extra postage and the reprinting of mailers if necessary.

Maple Leaf Solutions plans to partner with two excellent businesses in the Vancouver area.

Automatic Data Processing offers new technologies and

processes that are currently shaping the way business is done. ADP is the leading provider of Employee Services in Canada, which would make it a beneficial partner. ADP offers services such as payroll, human resources management, benefits administration, time and labor management, occupational health and safety, outsourcing, and consulting services. Paired with the services of SAP Business One, Maple Leaf’s target market can have everything they need to have continued success within their businesses. This provides ―one-stop shopping‖ for Maple Leaf’s target customers. Partnering with ADP Canada will allow customers of Maple Leaf Solutions to focus more on their specific competitive edge.

Small Business BC is British Columbia’s premiere resource for

knowledge-based business products and services. They offer seminars and other information to small business on all stages of business. Small Business BC also offers services and products to support growth, productivity, profitability, and assist with new opportunities. Small Business BC is a great company for Maple Leaf Solutions to partner with, because they can conduct seminars with small businesses that have purchased SAP Business One, and can also host seminars for small businesses that are considering purchasing SAP from Maple Leaf.


Maple Leaf Solutions chose to operate under the structure of a Limited Liability Company. A Limited Liability Company is a combination of positive components of the corporation and partnership. This structure was chosen because the partners in the company wanted an equal voice in organizing and maintaining the company, but not equal liability. The members of Maple Leaf Solutions have appointed the president of the company to be the main manager of all operations, while maintaining a strong voice among the supporting members of the organization. The personal liability of the owners in a Limited Liability Company is limited to the amount of each individual investment by the owners. A partner in the company is not responsible for other partner’s debts or liabilities. Another reason for the owners of Maple Leaf Solutions to choose a Limited Liability Corporation is the pass-through taxation or the lack of double taxation. Income and loss in the corporation is passed through to its members. There is also a lot of flexibility that goes along with the tax rules of a LLC. The organization can be taxed either as a sole proprietor, partnership, S-Corp, or corporation. The life of the LLC extends beyond the life of the owner of the corporation, avoiding problematic business termination. Maple Leaf Solutions believes that because of the lack of limitation on owners and partners, future growth and expansion is a very reachable concept. Another main advantage in choosing a LLC is the ease of raising capital through the sale of interests. Through the sale and distribution of the SAP Business One Program and Leaf Squad Service combined with the Limited Liability Company Structure, success of the company is inevitable.


Responsibilities: o To fulfill his role as main contact person and communicator for all levels of the

company o Ensure that the appropriate business strategies are in place and always fully

functioning to promote the maximum amount of revenue intake, reduction of cost, and increase the profitability for Maple Leaf Solutions.

o Maintain the vision of Maple Leaf Solutions and guide all supporting factors of the vision including;

Human, financial, technological, informational, and material resource availability

The establishment of business relationships, organizational structures, and motivational schemes.

President

Edward J. Crowe

Manager of Administration

Regina B. Goltra

Manager of Marketing

Dawn M. March

SalespersonMara L. Greiner

Manager of Consulting

Anna R. Frye

Consultants

Daniel R. Vasinko

Melia R. Pinkas

It Employee Jacques Daniels

Shoemaker


Responsibilities: o Ensure that the financial situations of Maple Leaf Solutions are always in line

with company policy and are maintained at a healthy level to promote revenue, increase profitability, and reduce the costs of the company.

o Maintain strong relationships with the investors in Maple Leaf Solutions o Keep members and the Board of Directors up to date with the financial

happenings of Maple Leaf Solutions o Be aware of future investments, costs, and revenue boosters for Maple Leaf

Solutions o Analyze and craft ideas on how to continuously improve and identify sections

of the company that may need advancement

Responsibilities: o Establish the presence, good name and reputation of Maple Leaf Solutions in

its target marketing area o Be aware of the needs in the area for SAP Business One products and how

to market to the areas in need o Be aware of potential partners and competitors for Maple Leaf Solutions in

the target market and surrounding areas o Pave the way for Maple Leaf Solutions to spread its reign in the target area

and surrounding areas that hold promise for SAP Business One

Responsibilities: o Be aware of the revenue categories in the company and how to adjust these

categories to specific customer needs o Identify how to fully satisfy customers with their SAP Business One Programs

by;

Providing the organization of implementation, upgrade, and support services

Maintain all components of hardware and software

Providing prompt online, direct, and telephone customer service


& Responsibilities

o Monitor activities of the company particular to the branch of the company that they are most familiar with (i.e. marketing, finances, etc)

o Use their observances to assist and improve customer satisfaction and provide hands-on help to customers

o Report back to branch of Maple Leaf Solutions that they are working with and offer sound advice on the needs of the customers

o Study other successful competitors in the area and assess the similarities and differences between those competitors and Maple Leaf Solutions

Responsibilities o Support advertising, consulting, and management techniques in the target

market area. o Market Maple Leaf Solution services to the best of their ability to potential

customers o Maintain the support of current Maple Leaf Solution customers o Work with the Manager of Sales and Marketing to identify new customers and

how to reach them by spending time in the physical location of the customers and gaining insight into the area’s trends and needs


Mr. Crowe graduated Harvard School of Law where he received his MBA with a focus on finance and a minor in business administration. Upon graduation, Edward decided to take a year spent in the suburb of Latrobe, Pennsylvania where his grandmother lived. Here is where Saint Vincent College sits, and where Edward met Anna Frye and Dawn March. Edward kept in touch with both women, and thought of them when he created the idea of Maple Leaf Solutions five years later. Their specific areas of study were diverse, yet complimented each other and the idea of a SAP distributor quite well. Mr. Crowe also came up with the idea of the ―Leaf Squad‖. Edward is very

enthusiastic about his company and is prepared to take Maple Leaf Solutions to new heights.

Regina Goltra graduated from the University of Santos Tomas in Manila, Philippines. She graduated at the top her class with an MBA in finance and accounting. Regina moved to Vancouver after working two years at a small textiles company in Davao, Philippines. Her childhood friend, Dawn March, told her of the opportunity with Maple Leaf Solutions. Regina, wanting a change of scenery and climate, seized the opportunity. Ms. Goltra excels in her financial skills and is excited to bring Maple Leaf Solutions to the optimal level of profitability.

Anna Frye joined the founders of Maple Leaf Solutions after five years of being in the consulting business. Miss Frye graduated with a Bachelor’s degree in Business Management a Master’s Degree in Operational Excellence from Saint Vincent College. Anna spent her previous five years as the Manager in Consulting for a small business outside of Ontario, her hometown, called Humberview Insurance Brokers. Humberview is where Anna was introduced to the SAP Business One program and what inspired her to further her journey in business through the distribution of this program. Anna hopes to help Maple Leaf


Solutions excel in areas such as customer satisfaction, increased profits, and growth. She also would like to see the Leaf Squad take over its main competitors and further satisfy SAP Business One users.

Dawn March graduated from Saint Vincent College with a degree in marketing and a minor in entrepreneurship. For the first three years after graduation, Dawn worked in advertising at The Limited. While working there, Dawn met her future husband, a player for the Vancouver Canucks. For the two years prior to joining Maple Leaf, Mrs. March got married and had her first child. The happy family decided to settle down in Vancouver after hearing about the opportunity at Maple Leaf from Edward Crowe. Dawn is eager to get the company name out to the public as well as expand upon the Leaf Squad. Dawn is an asset to the team because of her passion for the company.

As a freshly graduated marketing major from Northwestern University, Mara Greiner was an obvious asset to the Maple Leaf Solutions team. Mara has a keen skill for knowing what sells. Throughout her education, Mara held internships at Dell and Hewlett- Packard. Both of these experiences gave Mara the skills and knowledge that she needs for salesperson position at Maple Leaf Solutions. Mara stands alongside Mrs. March with the advertising end of the spectrum and also with product placing.


Melia Pinkas came to Maple Leaf after graduating from Columbia University with a major in Human Relations and Information Technology. After a year with SAP Canada, Melia decided to take on the challenge of establishing Maple Leaf Solutions along with the other founders. Melia has excellent background with SAP Canada and great ideas for how to satisfy Maple Leaf’s customers. Melia also directs the Leaf Squad and organizes its actions.

Daniel Vasinko was a graduate from the University of Cambridge with a MBA in Information Technology and a major in management. Daniel moved back to the states to live closer to his family when he saw an ad for a consulting and IT specialist position at Maple Leaf. Daniel recognized his opportunity to join a very promising business and also an opportunity to use his expertise to advance a fresh company.


President of Maple Leaf Solutions

Manager of Administration at Maple Leaf Solutions

Manager of Sales and Marketing at Maple Leaf Solutions

Manager of Consulting at Maple Leaf Solutions

Goaltender for Vancouver Canucks, runs a small Hockey Apparel and Equipment shop in Vancouver

CEO of ADP Payroll Services, HR Solutions, Tax Compliance, and PEO, a partner of Maple Leaf Solutions

CEO of Small Business BC, a partner of Maple Leaf Solutions

Head of ―Leaf Squad‖

Local entrepreneur, asset to Maple Leaf Solutions because he is familiar with the area and how to kick off a business. Stephen has been starting businesses since high school, one of which is an outsourcing business. This business provides high level outsourced personnel to business owners and managers across North America. Stephen has connections with the Vancouver Sun, has had publications in The Wall Street Journal, The Ottawa Citizen, and The Vancouver Courier.

Maple Leaf Solutions is hoping to add onto the Board of Directors one of the bankers.


During the first year at Maple Leaf Solutions, the founders have decided that it would be most cost efficient to only employ the president of the company, the three managers (manager of marketing and sales, manager of administration, and manager of consulting), two consultants, one sales person, and the head of our Leaf Squad staff. Because of how quickly the revenue that Maple Leaf Solutions expects to obtain will grow, one more salesperson will be added in the second year. This way, the salesperson can assist the manager of sales and marketing and the current salesperson and bring new ideas to the team. In the third year of operation, one more salesperson will be added and three more consultants will come on board.

The new consultants to be hired will be people that possess deep knowledge of the SAP Business One program, and who are very familiar with new trends and opportunities concerning SAP. From this point on, consultants and salespersons will be added as necessary. Maple Leaf Solutions also believes that it’s important to consider the possibility of adding on additional members to the Leaf Squad Staff. These people will specialize in development, installation, modification, maintenance, monitoring, and the integration of SAP Business One into our customer’s systems, as well as assisting them with any type of hardware or software troubles that they may encounter. This will give Maple Leaf Solutions an edge on the competition to have Leaf Squad members with advanced technological know-how within the company. On the following page is an example of what the expenses of the employees could potentially look like by year five of operation:

Employee Costs

Employees Year 1 Year 2 Year 3 Year 4 Year 5

Edward J. Crowe $117,000 $119,340 $121,727 $124,161 $126,645

Regina Goltra $75,000 $76,500 $78,030 $79,591 $81,182

Dawn March $77,250 $78,795 $80,371 $81,978 $83,618

Mara Greiner $65,300 $66,606 $67,938 $69,297 $70,683

Salesperson $0 $66,606 $67,938 $69,297 $70,683

Salesperson $0 $0 $67,938 $69,297 $70,683

Salesperson $0 $0 $0 $69,297 $70,683

Anna Frye $80,000 $81,600 $83,232 $84,897 $86,595

Melia Pinkas $60,000 $61,200 $62,424 $63,672 $64,946

Daniel Vasinko $60,000 $61,200 $62,424 $63,672 $64,946

Consultant $0 $0 $62,424 $63,672 $64,946

Consultant $0 $0 $62,424 $63,672 $64,946

Consultant $0 $0 $62,424 $63,672 $64,946

Consultant $0 $0 $0 $63,600 $64,872

Consultant $0 $0 $0 $63,600 $64,872

Consultant $0 $0 $0 $0 $63,600

IT employee $65,000 $66,300 $67,626 $68,979 $70,358

Total Salaries $599,550 $678,147 $946,920 $1,162,355 $1,249,202


Maple Leaf Solutions employs top-of-the-line people to better serve and understand our customers. Each employee has significant background and training in their fields, and know how to put their knowledge into action. Because of the confident employees, excellent customer service, and all around satisfaction with the product and support, Maple Leaf Solutions feels that it is fair of them to require certain costs for their services. The first stage in the process of getting a customer started with SAP is implementation. Depending on the customer, the hours spent on implementation will vary. With a basic customer, implementation of SAP Business One, per year, would be about 150-200 hours. For an average customer, it would be around 300-450 hours, and for the comprehensive customer, the hours spent on implementation per year could extend up to 1000 hours. There are four stages involved in implementation, which is why the process can be very timely. The four stages are as follows; project initiation, system design and configuration, user acceptance, and going live. Anytime a customer wants to upgrade their SAP program, this calls for 400-500 hours for the comprehensive customer, 150-250 hours for the typical customer, and 75-100 hours for the basic customer. Maple Leaf Solutions also provide support to all of their customers who are using SAP. These support hours vary as follows; 350 hours yearly for the comprehensive customer, 150 hours for the typical customer, and 50-75 hours for the basic customer. The support system and sale of services is what generates Maple Leaf Solution’s bulk income. It costs Maple Leaf customers $150 per service hour. Maple Leaf Solution’s second service, The Leaf Squad, specializes in anything from computers and networking, hard and software repair, TV repair, cell phone repair, virus and spyware removal, computer tune-up, major appliance repair, and data recovery. The charge to customers to utilize the Leaf Squad is a base cost of $20 per month. On top of this charge lie fees dependant on the job performed. These additional fees can range from $10 to $500. The customers are also responsible to pay for any purchased tools or equipment specific to their problem.


The chart above demonstrates how the revenue brought in to Maple Leaf Solutions changes with the number of employees added to the team. The revenue per year increases at a faster rate than the employee costs per year.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

1 2 3 4 5

Year

Employee Costs

Revenue


After deciding to make Vancouver Maple Leaf Solutions’ home town and obtaining a business permit for the area, headquarters became located at 691 East 65th Ave Vancouver, BC, Canada in a recently built 2,800 square foot building consisting of sufficient office space for the president and his team of employees along with a built-in warehouse to house supplies. Each employee has their own personal desk to work at when not traveling to install, service or upgrade SAP Business One software for future and current customers. Maple Leaf Solutions is customer friendly and welcomes clients to visit its headquarters for consulting or other services but is open to and promotes coming to its customers. This program allows better integration into customers’ companies and allows Maple Leaf Solutions’ teams to better understand the clients’ business needs.

Square Feet Price Per Sq. Ft. Monthly Fee Yearly Fee

2,000 (office) 800 (warehouse)

$16.75 $3,908.00 $46,900.00

Monthly Fee Yearly Fee

Electricity $175.00 $2,100.00

Internet/Phone Lines $198.95 $2,387.40

Fax $24.95 $299.40

Total $398.90 $4,786.80

$500.00 fee

Quantity Item Unit Costs Total Costs

7 Office Chairs $200.00 $1,400.00

7 Office Desks $625.00 $4,375.00

2 Reception Chairs $125.00 $250.00

1 Conference Table $275.00 $275.00

4 Conference Chairs $100.00 $400.00

Total Costs $6,700.00


Technology is a major part of Maple Leaf Solutions business therefore investing in current technology used by employees is a must. In order to stay current, all computer technology will be refreshed and upgraded every three years. With the exception of the president, each employee is given the same laptop along with a mouse for desk use. Also every employee including the president is given his or her own phone in their office. As for the president’s computer, he is given a laptop that has the ability to support more advanced or larger amounts of technology and data. He is also given a docking system for the laptop, a separate monitor, keyboard and mouse for desk use when in the office. Each laptop computer will run Microsoft Office Home and Business software which contains essential programs to create presentations, log data and communicate with co-workers and customers via email. Aside from personal computers Maple Leaf Solutions will have faxing, copying and wireless printing along with a server that includes data backup all within the office building.

Quantity Brand System Unit Price Total Price

1 Dell

E2011H 20-inch Widescreen Flat Panel Monitor

(President) $139.00 $139.00

1 Dell 104 Quiet Key Keyboard (President) $20.99 $20.99

7 Dell MS111 USB Optical Mouse (All Employees) $16.99 $118.93

1 Dell Latitude E5520 Laptop (President) $549.00 $549.00

1 Dell Docking Station (President) $129.00 $129.00

6 Dell Vostro 3400 Laptop (Employees) $489.00 $2,934.00

4 Microsoft Office Home and Business 2010 Software (All Computers) $279.00

$1,116.00

1 Dell PowerEdge R515 2U Rack Server $1,089.00 $1,089.00

1 Microsoft SBS 2011 Essentials Server Software $545.00 $545.00

1 Lexmark C543dn Printer (President's office) $299.00 $299.00

1 Lexmark Prevail Pro705 Fax Machine (President's office) $129.00 $129.00

1 Lexmark X544dn Copier/Printer/Fax Machine (Employee use)

$799.00 $799.00

1 TalkSwitch TalkSwitch 840vs Phone Server $1,495.00 $1,495.00

7 TalkSwitch TS-450i IP Phones (All Employees) $214.00 $1,498.00

Estimated Cost for Computer Technology

$10,860.92


For Maple Leaf Solutions to begin our business of selling SAP Business One, we are asking the bank for a loan of $200,000 to cover all our start-up costs. As a team we are investing a total of $210,000 with each person investing $30,000. We will re-pay this loan over a period of five years with an interest of 8%. We will use this money to start our corporation in Vancouver, Canada, install telephone and internet in our office, provide office equipment for our current employees, and furnishing our office. We will incur losses during our first year as a new corporation starting. However, starting in the second year, we will begin to see revenues exceeding expenses, resulting in profits by the end of our second year of production and the years following.

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The following Sales Metrics show the four quarters for the first year of business for Maple Leaf Solutions. We will sell to our first typical customer in the second quarter of the year. Typical customers average about ten users per customer. We expect to sell again to a typical customer through the third and fourth quarter as well as a basic customer in the fourth quarter. These customer projections are used to project Maple Leaf Solutions’ revenues and expenses for the first year of operations.

Year1 Q1 Year1 Q2 Year1 Q3 Year1 Q4 Year 1 Total

Sales Metrics

New Customers 0 1 1 3 5

Basic 0 0 0 1 1

Typical 0 1 1 2 4

Comprehensive 0 0 0 0 0

Average Users

Basic 4 4 4 4 4

Typical 9 9 9 9 9



Our profit and loss statement shows that we incurred no profits during the first quarter of operations due to lack of customers. However, since Maple Leaf Solutions are still incurring expenses we will operate at a net loss. Also in the second, third, and fourth quarters we will operate at a net loss due to all of our expenses we have, even though we have developed some customer relationships. Our costs exceed our revenues.

Projected Profit and Loss

Year 1

Revenues: Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total

SAP Business One Software:

Basic $0 $0 $0 $12,000 $12,000

Typical $0 $27,000 $27,000 $54,000 $108,000

Comprehensive $0 $0 $0 $0 $0

Total SAP Business One Software $0 $27,000 $27,000 $66,000 $120,000

Implementation Services:

Basic $0 $0 $0 $22,500 $22,500

Typical $0 $60,000 $60,000 $120,000 $240,000


Total Implementation Services $0 $60,000 $60,000 $142,500 $262,500

Upgrade Services:

Basic $0 $0 $0 $0 $0

Typical $0 $0 $0 $0 $0


Total Upgrade Services $0 $0 $0 $0 $0

Support Services:

Basic $0 $0 $0 $0 $0

Typical $0 $0 $3,750 $3,750 $7,500


Total Support Services $0 $0 $3,750 $3,750 $7,500

IT Service $0 $22,000 $31,000 $40,000 $93,000

Total Revenues $0 $82,000 $94,750 $186,250 $363,000


Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total

Operating Expenses:


Basic $0 $0 $0 $8,000 $8,000

Typical $0 $18,000 $18,000 $36,000 $72,000


Total SAP Business One Software $0 $18,000 $18,000 $44,000 $80,000

Services Costs: $66,250 $66,250 $66,250 $66,250 $265,000

Sales and Marketing: $40,638 $40,638 $40,638 $40,638 $162,550

General and Administration: $29,250 $29,250 $29,250 $29,250 $117,000

Accounting and Legal: $18,750 $18,750 $18,750 $18,750 $79,500

Rent and Utilities: $14,459 $12,375 $12,375 $12,375 $51,584

Interest Expense: $4,000 $4,000 $4,000 $4,000 $16,000

Depreciation: $807.15 $851.50 $851.50 $851.50 $3,406

Office Supplies $620 $620 $620 $620 $2,480

Insurance $730 $730 $730 $730 $2,920

Costs to Incorporate $150 $0 $0 $0 $150

Total Operating Expenses: $175,654 $191,464 $191,464 $217,464 $780,590

Profit/(Loss) ($175,654) ($109,464) ($96,714) ($31,214) ($417,590)

Shown below are Maple Leaf Solutions’ sales metrics for the first five years of operation. Maple Leaf Solutions steadily develops more customers with our first comprehensive customer joining us in our second year. We will consult five clients in the first year, eight in the second year, twelve in the third year, fourteen in the fourth year, and eighteen in the fifth year.


Five Year

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Metrics

New Customers 5 9 12 14 18

Basic 1 2 3 4 5

Typical 4 6 8 8 10


Average Users

Basic 4 4 4 4 4

Typical 9 9 9 9 9



As we previously stated Maple Leaf Solutions incurs a net loss during the first year due to all of the startup-up expenses. However, Maple Leaf Solutions will first realize a profit by the end of year two as shown on the profit and loss statement shown below and on the next page. Our profits will slowly but steadily increase throughout the next three years. By the end of the fifth year we have projected a profit of $1,460,800. Our cumulative profits for all five years are approximated as $2,574,546.


Five Year

Revenues: Year 1 Year 2 Year 3 Year 4 Year 5


Basic $12,000 $24,000 $36,000 $48,000 $60,000

Typical $108,000 $162,000 $216,000 $216,000 $270,000

Comprehensive $0 $57,000 $57,000 $114,000 $171,000

Total SAP Business One Software $120,000 $243,000 $309,000 $378,000 $501,000

Implementation Services:

Basic $22,500 $45,000 $67,500 $90,000 $112,500

Typical $240,000 $360,000 $480,000 $480,000 $600,000

Comprehensive $0 $150,000 $150,000 $300,000 $450,000

Total Implementation Services $262,500 $555,000 $697,500 $870,000 $1,162,500

Upgrade Services:

Basic $0 $0 $9,000 $18,000 $27,000

Typical $0 $0 $120,000 $180,000 $240,000

Comprehensive $0 $0 $0 $75,000 $75,000

Total Upgrade Services $0 $0 $129,000 $273,000 $342,000

Support Services:

Basic $0 $20,250 $40,500 $67,500 $101,250

Typical $7,500 $150,000 $270,000 $390,000 $540,000

Comprehensive $0 $45,000 $90,000 $180,000 $315,000

Total Support Services $7,500 $215,250 $400,500 $637,500 $956,250

IT Service $93,000 $100,000 $132,000 $145,000 $175,500

Total Revenues $483,000 $1,113,250 $1,668,000 $2,303,500 $3,137,250



Operating Expenses:


Basic $8,000 $16,000 $24,000 $32,000 $40,000

Typical $72,000 $108,000 $144,000 $144,000 $180,000

Comprehensive $0 $38,000 $38,000 $76,000 $114,000

Total SAP Business One Software $80,000 $162,000 $206,000 $252,000 $334,000

Services Costs: $265,000 $270,300 $462,978 $599,438 $675,026





Interest Expense: $16,000 $16,000 $16,000 $16,000 $16,000

Depreciation: $3,229 $3,382 $3,997 $5,377 $5,838

Office Supplies $1,606 $1,606 $1,606 $1,606 $1,606

Insurance $3,000 $3,000 $3,000 $3,000 $3,000

Costs to Incorporate $150

Total Operating Expenses: $779,619 $926,967 $1,241,639 $1,505,779 $1,676,450

Profit/(Loss) ($296,619) $186,283 $426,361 $797,721 $1,460,800 $2,574,546


The ending balance in Maple Leaf Solutions’ bank account after year one will be $60,467. The bank loan of $200,000, our total team investment of $210,000, and our first year revenues of $483,000 will be adequate enough to cover the large startup costs of starting a SAP Business One business. Our cash outflows will increase in the second year due to not having large equipment expenses and our increase in sales. With this said, our cash account will balance to $209,364. By the end of year five our cash balance will be approximately $2,777,179.

Projected Cash Flow Forecast

Five Year


Opening Balance $0 $60,467 $209,364 $596,649 $1,352,845

Owner Capital Invested $210,000 $0 $0 $0 $0

Bank Loan $200,000 $0 $0 $0 $0

Income / Revenues $483,000 $1,113,250 $1,668,000 $2,303,500 $3,137,250

Total Cash Inflows $893,000 $1,173,717 $1,877,364 $2,900,149 $4,490,095

Cash Outflows

SAP Business One Software: $80,000 $162,000 $206,000 $252,000 $334,000

Services Costs: $265,000 $270,300 $462,978 $599,438 $675,026





Interest + Principal: $56,000 $56,000 $56,000 $56,000 $56,000

Machinery & Equipment: $16,142.92 $768.00 $3,072.00 $6,903.00 $2,304.00

Office Supplies $1,606 $1,606 $1,606 $1,606 $1,606

Insurance $3,000 $3,000 $3,000 $3,000 $3,000

Costs to Incorporate $150

Total Cash Outflows $832,533 $964,353 $1,280,715 $1,547,305 $1,712,916

Year Ending Balance $60,467 $209,364 $596,649 $1,352,845 $2,777,179


In the first year, Maple Leaf Solutions’ net loss is covered by our initial investment and our bank loan. These will be our only liabilities so our equity section of the balance sheet will be $73,381, this will equal our total asset (cash balance plus the book value of our office equipment and technology). By the end of the fifth year our equity will be $2,784,546 and our bank loan of $200,000 plus eight percent interest will be paid off. Therefore, Maple leaf Solutions will continue to grow without this liability and continue our service of providing SAP Business One software and IT services in the Vancouver region.

Projected Year Ending Balance Sheets

Five Year


Assets

Current Assets

Bank Account $60,467 $209,364 $596,649 $1,352,845 $2,777,179

Non-Current Assets

Machinery & Equipment

Opening Balance $0 $12,914 $10,300 $9,376 $10,901

Additions $16,142.92 768 3072 $6,903.00 2304

Deprec. For Year $3,229 $3,382 $3,997 $5,377 $5,838

Net Book Value $12,914 $10,300 $9,376 $10,901 $7,367

Total Assets $73,381 $219,664 $606,025 $1,363,746 $2,784,546

Equity

Retained Earnings $0 ($296,619) ($110,336) $316,025 $1,113,746

Profit/Loss ($296,619) $186,283 $426,361 $797,721 $1,460,800

Owner Capital $210,000 $210,000 $210,000 $210,000 $210,000

Bank Loan

Opening Balance $0 $160,000 $120,000 $80,000 $40,000

Additions $200,000 $0 $0 $0 $0

Paid $40,000 $40,000 $40,000 $40,000 $40,000

Balance $160,000 $120,000 $80,000 $40,000 $0

Total Equity $73,381 $219,664 $606,025 $1,363,746 $2,784,546

MIS SAP Business Plan

Documents

Transcript of MIS SAP Business Plan