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.

Document Storage Business Plan Example

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.

Document Storage Business Plan Example

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.

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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.

Document Storage Business Plan Example

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.

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5.1.1 Sales Forecast:

Below is the sales forecast for three years.

Document Storage Business Plan Example

Document Storage Business Plan Example

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

Financial Plan:

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.

Document Storage Business Plan Example

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.

Document Storage Business Plan Example

Document Storage Business Plan Example

Document Storage Business Plan Example

Document Storage Business Plan Example

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%
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Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

Document Storage Business Plan Example

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

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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

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