American Management Technology will increase sales by more that $9 million in three year’s time by focusing on the strengths of its key customers and the core values they need.

This business plan is the best. It renews our vision. It also provides a step by step plan to increase our sales, gross profit, and profitability. This year, we plan on borrowing another $100,000 to make these changes happen and improve our profitability. The amount appears to be comparable with the balance sheet.

AMT is based around the assumption that managing information technology for business is similar as legal advice, accounting and graphic arts. AMT does not assume that you can do everything yourself. Smart businesspeople need to find reliable vendors who can supply quality software, hardware, and support. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies. AMT aims to meet these needs and be the regional leader in business information tech.

AMT offers both services and products to help small businesses. Our services and products are geared towards small and medium businesses. The systems include both PC-based LAN systems and minicomputer server-based systems. Our services include training, support, design and installation of network system, as well as training.

We have three key keys to our success over the next 3 years in order to reach our objectives.

• By offering support and service, and charging for it, you can distinguish yourself from price-oriented and box-pushing businesses.
• Increase gross margin to more than 30%.
• Our non-hardware revenue will be 20% of total sales in the third year.

AMT was originally founded to be a value-oriented, consulting-oriented reseller (VAR), and became a reseller in order to fulfill the market demand for personal computer products. AMT is focusing on service and support to stand out from other price-oriented competitors.

We have one location, a 7,000 ft store in a suburban center conveniently located close to the downtown. It contains a training room, service department, offices, as well as a showroom.

AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones. Six people are part owners of AMT, which includes four investors and two employees. 21 employees work under the supervision of the president and four managers. The main management areas are sales, marketing and service. The service department handles service requests, support, training, and development. Currently, our weakest area is in the technical capability to manage the database marketing program and upgraded support and service, particularly cross-platform networks. We need to hire a trainer manager.

Recent changes in the computer reseller marketplace have negatively impacted AMT. These include margin squeezes, longer collection periods, and lower inventory turnovers. All of these concerns are part of the general trend affecting computer resellers. The global margin squeeze is taking place in the computer industry.

Only way to stand out is to make the company an information technology ally for our clients. We cannot compete with companies that sell boxes or appliances as their products. We must create a genuine alliance that offers trust, reliability, and the knowledge that we will always be there for our customers in difficult times.

We will be offering support services that help us capture market share, such as installation services, training, upgrades, service plans, and network configuration. Company will continue to pursue new opportunities.

AMT is focused on local markets, small businesses, and home offices, with a special focus on high-end home offices and small business offices of 5-20 units.

The last study we saw published has retail sales growing at 5% per year, while Web sales and direct sales are growing at 25% or 30%.

There are several different kinds of computer retailers within the industry including:

1. Computer dealers are often limited to a small number of main brands of hardware and offer very little support and software.

Their support and service are not always very good, and their prices tend to be higher than those of larger stores.

These direct competitors don’t offer the same level of customization and service as small businesses like our clients.

Small business buyers are accustomed to buying from vendors who visit their offices. They expect copy machine vendors, office product vendors, and office furnishings vendors to visit their offices in order to make sales. Many small businesses immediately go to superstores (office supplies, electronics, and office equipment) to get the best price. They don’t realize there is an even better option at a fraction more.

Businesses shouldn’t buy computers as « plug-in » appliances. They should be able to afford ongoing support, training, and service. The focus groups revealed that the target market for home offices does not care about price, but rather quality service. Because that’s all they see, they focus on price. There are strong indications that most people would prefer to pay 10-20% more to have a relationship with a vendor who provides quality support and back-up. They end up going through the channels of box-pushers because they don’t know the alternatives.

We currently depend on newspaper advertising as our main way to reach new buyers. Changes in strategies will require us to change how we promote ourselves. We will focus on our core message through radio, television, direct mailers, newspapers, and cable TV. The company is what we need to sell, not the product. AMT is what we sell, not Apple, IBM Hewlett-Packard, Compaq, Compaq, Compaq or any of our software brands.

The Yearly Total sales chart summarises our ambitious sales forecast. Sales are expected to grow from $5.3 Million last year to more that $6 million next and to more then $9 million during the last year.

1.1 Objectives

1. The third year saw sales surpass $9 million.
2. Maintain a gross margin of at least 30%.
3. Up to $1.5 Million in service, support and training sales by 1998
4. Improve inventory turnover to 6 turns by 1998.

1.2 Keys to Success

1. You can differentiate yourself from other price-oriented, box-pushing businesses by offering service and support and charging for it.
2. Increase gross margin to greater than 30%
3. Our non-hardware sales will increase to 20% by the end of the third year.

1.3 Mission

AMT is based on the idea that information technology management for business is similar to legal advice, accounting, and graphic arts. It is not a do it yourself job. Smart business people who aren’t computer hobbyists need to find quality vendors of reliable hardware, software, service, and support. They must trust these vendors as much as their other professional service providers.

AMT is one such vendor. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure our clients have everything they need to run their business as efficiently as possible. Our clients can trust that we will always be available to help them with their information applications.