Shaw’s Records Management & Data Storage (Shaw’s) is a full-service records management company that provides secure storage and indexing for paper records, digital media, and other business-critical information. This includes computer disks and tapes, optical disks, microfilm, audio and video tapes, medical records, and blueprints.
Our 30,000 square foot facility ensures the safety of our customers’ records. We employ a comprehensive security system with exterior and interior cameras that monitor the premises 24/7.
In addition to secure storage, Shaw’s offers personalized services such as retention schedules, data conversion and optical recognition character (ORC), and records relocation. We also provide specially designed boxes and supplies for easier record handling.
At Shaw’s, we provide our customers with a competitive edge through state-of-the-art technology, unmatched security, and quick-response service. Our computerized facility is strategically located in the northeast corridor, easily accessible from Monroe and Tracy. This region is home to over 5,000 companies constantly seeking a marketplace advantage.
In today’s business environment, quick and easy access to critical information is crucial for maintaining a competitive advantage. By outsourcing their records management and storage to Shaw’s, customers can ensure their records are stored in an organized environment, improving the speed and ease of access to those records.
Martin Shaw, the owner of Shaw’s Record Management and Data Storage, brings over twenty years of experience in the field. He has played a key role in establishing record management systems with Alco Industries, Axiom, and Promerit.
Shaw’s mission is to enable customers to control their information, improve regulatory compliance, and enhance cost effectiveness.
Shaw’s objectives are as follows:
– Achieve sales goal in the first year.
– Acquire a customer base of 200 companies.
– Increase sales with stability in the second year.
Shaw’s Records Management & Data Storage is a full-service, computerized records management company that securely stores and indexes paper records, digital media, and other business-critical information. The company will be organized as a limited partnership.
Our computerized facility is strategically located in the northeast corridor, easily accessible from Monroe and Tracy. Our 30,000 square foot facility ensures the safety of the records. We have a comprehensive security system with 24-hour monitoring through exterior and interior cameras. All access points, including interior doors, dock doors, and gates, are locked. Our intrusion alarms and motion detectors are connected to the local police department, and we have 24-hour off-site alarm monitoring. Surveillance cameras oversee activity throughout the building, and the archives section is surrounded by a 20′ high wired fence with locked gates.
Shaw’s is owned by Martin Shaw and an investing partner.
The start-up expenses for Shaw’s primarily include equipment, storage space, and materials needed for storage. Martin Shaw and the investing partner will contribute equally, and Shaw will secure a long-term business loan.
Start-up Funding
Start-up Expenses to Fund: $342,600
Start-up Assets to Fund: $157,400
Total Funding Required: $500,000
Assets
Non-cash Assets from Start-up: $0
Cash Requirements from Start-up: $157,400
Additional Cash Raised: $0
Cash Balance on Starting Date: $157,400
Total Assets: $157,400
Liabilities and Capital
Liabilities
Current Borrowing: $0
Long-term Liabilities: $150,000
Accounts Payable: $0
Other Current Liabilities: $0
Total Liabilities: $150,000
Capital
Planned Investment
Martin Shaw: $150,000
Silent Partner: $200,000
Additional Investment Requirement: $0
Total Planned Investment: $350,000
Loss at Start-up: ($342,600)
Total Capital: $7,400
Total Capital and Liabilities: $157,400
Total Funding: $500,000
Products and Services
Shaw’s Records Management & Data Storage is a full-service, computerized records management company. We provide secure storage and indexing of paper records, digital media, and other business-critical information. This includes computer disks and tapes, optical disks, microfilm, audio and video tapes, medical records, and blueprints.
Shaw’s personalized service includes retention schedules, data conversion and ORC, and records relocation. We also provide specially designed boxes and supplies to make handling records easier.
Shaw’s offers a Windows® based environment with coding and data management tools. This system can track a work order from the moment a container is requested until it is safely back in storage. Our system helps customers manage all their records–paper or electronic–and verifies the chain of custody at every step.
Market Analysis Summary
The northeast corridor is home to over 5,000 companies seeking advantage in the marketplace. These companies represented over $3 billion in cumulative sales last year.
Companies located in the northeast corridor can be divided into the following groups:
– Small Companies: 60% of companies in the northeast corridor have 50 to 150 employees and annual sales of $5-$15 million. Outsourcing record management is an excellent solution for them to control costs and gain more space.
– Medium-sized Companies: 25% of companies in the northeast corridor have over 300 employees and annual sales between $20-50 million. Outsourcing record management can reduce costs and improve document retrieval.
– Large Companies: 15% of companies in the northeast corridor have over 1,000 employees and annual sales of $100-$300 million. Archiving a percentage of cumulative records is a good strategy to protect records and improve retrieval time.
Market Segmentation
Shaw’s will focus on the following target customers: small companies, medium companies, and large companies.
Market Analysis:
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Small Companies 2% 3,250 3,299 3,348 3,398 3,449 1.50%
Medium Companies 1% 1,750 1,762 1,774 1,786 1,799 0.69%
Large Companies 0% 250 251 252 253 254 0.40%
Total 1.18% 5,250 5,312 5,374 5,437 5,502 1.18%
Strategy and Implementation Summary:
Shaw’s Records Management and Data Storage has a strong sales advantage – the reputation and success of Martin Shaw in records management. For the past ten years, Mr. Shaw has been a valuable resource for record managers in the northeast corridor, improving the efficiency and accessibility of critical records. This success has been duplicated at a number of companies.
5.1 Sales Strategy:
Martin Shaw will be the focus of our sales strategy, visiting potential customers and delivering outsourcing proposals. Initially, Shaw’s will offer a 15% discount on storage rates for the first year. Sales are expected to be flat in the first month but will pick up quickly in the second.
To develop effective business strategies, perform a SWOT analysis. Get started with our free guide and template to learn how.
5.1.1 Sales Forecast:
Below is the sales forecast for three years.
Sales Forecast:
Year 1 Year 2 Year 3
Sales
Storage $506,000 $590,000 $700,000
Storage Materials $138,000 $170,000 $200,000
Other $0 $0 $0
Total Sales $644,000 $760,000 $900,000
Direct Cost of Sales:
Year 1 Year 2 Year 3
Storage $0 $0 $0
Storage Materials $59,550 $85,000 $100,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $59,550 $85,000 $100,000
Management Summary:
Shaw’s management system:
– Martin Shaw will be responsible for day-to-day operation of the facility and will manage the sales team.
– A facility team will oversee the record storage and retrieval.
– A security team will be responsible for monitoring facility access.
– A customer service team will be responsible for processing customer requests.
Personnel Plan:
Year 1 Year 2 Year 3
Martin Shaw $36,000 $36,000 $38,000
Facility Manager $36,000 $38,000 $40,000
Security Manager $30,000 $32,000 $34,000
Customer Service Manager $36,000 $38,000 $40,000
Facility Staff $96,000 $102,000 $108,000
Security Staff $38,400 $40,000 $42,000
Customer Service Staff $40,800 $42,000 $44,000
Sales Staff $72,000 $76,000 $80,000
Total People 14 14 14
Total Payroll $385,200 $404,000 $426,000
The financial plan for Shaw’s Records Management and Data Storage.
Break-even Analysis:
The monthly break-even point is calculated in the table and chart below.
Break-even Analysis
Monthly Revenue Break-even: $51,695
Assumptions:
– Average Percent Variable Cost: 9%
– Estimated Monthly Fixed Cost: $46,915
7.2 Projected Profit and Loss
The table and charts below highlight the projected profit and loss for three years.
Pro Forma Profit and Loss
| Pro Forma Profit and Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $644,000 | $760,000 | $900,000 |
| Direct Cost of Sales | $59,550 | $85,000 | $100,000 |
| Other Production Expenses | $0 | $0 | $0 |
| Total Cost of Sales | $59,550 | $85,000 | $100,000 |
| Gross Margin | $584,450 | $675,000 | $800,000 |
| Gross Margin % | 90.75% | 88.82% | 88.89% |
| Expenses | |||
| Payroll | $385,200 | $404,000 | $426,000 |
| Sales and Marketing and Other Expenses | $36,000 | $40,000 | $50,000 |
| Depreciation | $0 | $0 | $0 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $12,000 | $12,000 | $12,000 |
| Insurance | $12,000 | $12,000 | $12,000 |
| Rent | $60,000 | $60,000 | $60,000 |
| Payroll Taxes | $57,780 | $60,600 | $63,900 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $562,980 | $588,600 | $623,900 |
| Profit Before Interest and Taxes | $21,470 | $86,400 | $176,100 |
| EBITDA | $21,470 | $86,400 | $176,100 |
| Interest Expense | $13,375 | $10,500 | $7,500 |
| Taxes Incurred | $2,428 | $22,770 | $50,580 |
| Net Profit | $5,666 | $53,130 | $118,020 |
| Net Profit/Sales | 0.88% | 6.99% | 13.11% |
Projected Cash Flow
The following table and chart highlight the projected cash flow for three years.
Pro Forma Cash Flow
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $161,000 | $190,000 | $225,000 |
| Cash from Receivables | $347,325 | $545,562 | $645,505 |
| Subtotal Cash from Operations | $508,325 | $735,562 | $870,505 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $15,000 | $0 | $0 |
| Subtotal Cash Received | $523,325 | $735,562 | $870,505 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $385,200 | $404,000 | $426,000 |
| Big Payments | $224,641 | $306,470 | $351,615 |
| Subtotal Spent on Operations | $609,841 | $710,470 | $777,615 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $30,000 | $30,000 | $30,000 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $639,841 | $740,470 | $807,615 |
| Net Cash Flow | ($116,516) | ($4,908) | $62,891 |
| Cash Balance | $40,884 | $35,977 | $98,867 |
7.4 Projected Balance Sheet
The following table highlights the projected balance sheet for three years.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $40,884 | $35,977 | $98,867 |
| Accounts Receivable | $135,675 | $160,113 | $189,608 |
| Other Current Assets | $0 | $0 | $0 |
| Total Current Assets | $176,559 | $196,090 | $288,475 |
| Long-term Assets | |||
| Long-term Assets | $0 | $0 | $0 |
| Accumulated Depreciation | $0 | $0 | $0 |
| Total Long-term Assets | $0 | $0 | $0 |
| Total Assets | $176,559 | $196,090 | $288,475 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $28,493 | $24,893 | $29,259 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $28,493 | $24,893 | $29,259 |
| Long-term Liabilities | $120,000 | $90,000 | $60,000 |
| Total Liabilities | $148,493 | $114,893 | $89,259 |
| Paid-in Capital | $365,000 | $365,000 | $365,000 |
| Retained Earnings | ($342,600) | ($336,934) | ($283,804) |
| Earnings | $5,666 | $53,130 | $118,020 |
| Total Capital | $28,066 | $81,197 | $199,217 |
| Total Liabilities and Capital | $176,559 | $196,090 | $288,475 |
| Net Worth | $28,067 | $81,197 | $199,217 |
7.5 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 4226, Special Warehouse and Storage, are shown for comparison.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 18.01% | 18.42% | 1.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 76.84% | 81.65% | 65.73% | 23.10% |
| Other Current Assets | 0.00% | 0.00% | 0.00% | 22.30% |
| Total Current Assets | 100.00% | 100.00% | 100.00% | 46.50% |
| Long-term Assets | 53.50% | |||
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | ||||
| Accounts Payable | 28.75% | 24.35% | 29.66% | 31.00% |
| Current Borrowing | 0.00% | 0.00% | 0.00% | 0.00% |
| Other Current Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Subtotal Current Liabilities | 28.75% | 24.35% | 29.66% | 31.00 |
| Personnel Plan | ||||||||||||
| Martin Shaw | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Facility Manager | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Security Manager | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Customer Service Manager | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Facility Staff | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| Security Staff | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 | $3,200 |
| Customer Service Staff | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 |
| Sales Staff | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Total People | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 |
| Total Payroll | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 |
| General Assumptions | |||||||||||||
| Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
| Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Pro Forma Profit and Loss | |||||||||||||
| Sales | $0 | $17,000 | $23,000 | $32,000 | $44,000 | $53,000 | $63,000 | $65,000 | $78,000 | $85,000 | $93,000 | $91,000 | |
| Direct Cost of Sales | $0 | $1,000 | $1,500 | $2,500 | $4,000 | $5,000 | $6,500 | $7,500 | $9,000 | $10,000 | $11,500 | $1,050 | |
| Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $0 | $1,000 | $1,500 | $2,500 | $4,000 | $5,000 | $6,500 | $7,500 | $9,000 | $10,000 | $11,500 | $1,050 | |
| Gross Margin | $0 | $16,000 | $21,500 | $29,500 | $40,000 | $48,000 | $56,500 | $57,500 | $69,000 | $75,000 | $81,500 | $89,950 | |
| Gross Margin % | 0.00% | 94.12% | 93.48% | 92.19% | 90.91% | 90.57% | 89.68% | 88.46% | 88.46% | 88.24% | 87.63% | 98.85% | |
| Expenses | |||||||||||||
| Payroll | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | |
| Sales and Marketing and Other Expenses | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Utilities | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000
Pro Forma Cash Flow |
||||
| Pro Forma Cash Flow | |||||||||||||
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
| Cash Received | |||||||||||||
| Cash from Operations | |||||||||||||
| Cash Sales | $0 | $4,250 | $5,750 | $8,000 | $11,000 | $13,250 | $15,750 | $16,250 | $19,500 | $21,250 | $23,250 | $22,750 | |
| Cash from Receivables | $0 | $0 | $425 | $12,900 | $17,475 | $24,300 | $33,225 | $40,000 | $47,300 | $49,075 | $58,675 | $63,950 | |
| Subtotal Cash from Operations | $0 | $4,250 | $6,175 | $20,900 | $28,475 | $37,550 | $48,975 | $56,250 | $66,800 | $70,325 | $81,925 | $86,700 | |
| Additional Cash Received | |||||||||||||
| Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 | $0 | $0 | $15,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Cash Received | $0 | $4,250 | $6,175 | $20,900 | $28,475 | $52,550 | $48,975 | $56,250 | $66,800 | $70,325 | $81,925 | $86,700 | |
| Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Expenditures from Operations | |||||||||||||
| Cash Spending | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | $32,100 | |
| Bill Payments | $53 | $1,794 | $7,458 | $9,635 | $13,062 | $17,655 | $21,063 | $25,006 | $26,413 | $31,277 | $34,084 | $37,141 | |
| Subtotal Spent on Operations | $32,153 | $33,894 | $39,558 | $41,735 | $45,162 | $49,755 | $53,163 | $57,106 | $58,513 | $63,377 | $66,184 | $69,241 | |
| Additional Cash Spent | |||||||||||||
| Sales Tax, VAT, HST/GST Paid Out | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
| Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal Cash Spent | $34,653 | $36,394 | $42,058 | $44,235 | $47,662 | $52,255 | $55,663 | $59,606 | $61,013 | $65,877 | $68,684 | $71,741 | |
| Net Cash Flow | ($34,653) | ($32,144) | ($35,883) | ($23,335) | ($19,187) | $295 | ($6,688) | ($3,356) | $5,787 | $4,448 | $13,241 | $14,959 | |
| Cash Balance | $122,747 | $90,603 | $54,720 | $31,386 | $12,199 | $12,494 | $5,806 | $2,450 | $8,237 | $12,684 | $25,925 | $40,884 | |
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!