QGT1 Capstone Business Plan PDF

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Old Dominion Satellite Solutions, LLC Business Plan December 4, 2017

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A. Executive Summary...............................................................................................................4 A1. Company Identification.........................................................................................................4 A2. Mission of the Company.......................................................................................................4 A3. Business Goals......................................................................................................................4 A4. Keys to Success.....................................................................................................................5 B. Company Summary...............................................................................................................6 B1. Industry History.....................................................................................................................6 B2. Legal Form of Ownership.....................................................................................................8 B3. Location and Facilities..........................................................................................................9 B4. Management Structure.........................................................................................................10 B5. Products and Services..........................................................................................................12 C. Market Analysis....................................................................................................................13 C1. Target Market......................................................................................................................13 C2. Industry Analysis................................................................................................................13 C3. SWOT Analysis..................................................................................................................15 D. Market Strategy......................................................................................................................18 D1. 4Ps......................................................................................................................................18 D2. Price List............................................................................................................................22 D3. Promotional Strategy..........................................................................................................23 D4. Sales Forecast.....................................................................................................................24

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E. Implementation Strategy........................................................................................................26 E1. Overall Strategy...................................................................................................................26 E2. Monitoring Plan...................................................................................................................27 F. Financial Statements and Projections....................................................................................28 F1. Forecasted Profit and Loss Statement..................................................................................28 F2. Forecasted Balance Sheet....................................................................................................28 G. Financial Report.....................................................................................................................29 G1. Financial Projections...........................................................................................................29 G2. Financial Position................................................................................................................31 G3. Estimated Capital/Investment Needs..................................................................................31 H. References……………………………………………………………………………………32

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A. Executive Summary

A1. Company Identification: Old Dominion Satellite Solutions, LLC is located in the City of Charlottesville, VA and specializes in satellite and telecommunication services and products for homes and businesses.

A2. Mission of the Company: The mission of Old Dominion Satellite Solutions, LLC is to “keep the country connected”, as we say, and provide our clients the very best customer service experience while giving back to our community. Not only are our services beneficial to those who live or work too rurally for access to a cable or fiber TV and Internet service provider, but also to those who desire different TV provider options, a backup solution for their business, or travel and leisure options. ODSS strives to make every client feel as if they have received an individualized, honest, professional, and painless transaction and results with greater value than what the client spent.

A3. Business Goals: Old Dominion Satellite Solutions’ first goal is to maintain an average of 90 percent, or better, customer satisfaction rating over the first 12 months of operations. This will be measured by analytics from ratings and reviews from social media and search engine platforms and customer satisfaction surveys clients receive after transactions and installations. The second goal is to double the client base each quarter for the first 12 months of operations. This goal will be achieved through our multiple marketing initiatives, participating in local events and business partnerships and alliances, and having a search engine and social media platform presence.

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A4. Keys to Success: Customers are ODSS’ first key to success. Without customers, the business obviously would not continue to operate. Customers also serve as the best marketing tool since they speak from experience and their good word of mouth is nearly free! Focusing on employees and the market conditions is ODSS’ second key to success. Having confident, organized, and well-informed employees requires regular communication and support, but results in reduced client complaints and helps when ODSS needs to make adjustments to meet demand in the rapidly changing telecommunications market. Profit is ODSS’ final key to success. Profitability, and knowing when and how to make necessary budget changes, is ultimately what will determine the success of the business. Growing profits will ensure that all expenses can be covered while allowing the company to earn capital for future ventures and give back to the community.

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B. Company Summary

B1. Industry History: Telecommunications, or the science and technology of communication at a distance (The History of Telecommunication, 2017), has seen major milestones and many occurred either accidentally or much before their time. The desire to communicate dates to prehistoric ages when optical and audible systems like smoke signals, beacons, or drums were used to communicate messages of safety, danger, or victory (The History of Telecommunication, 2017). Through the evolution of communication technologies, there have been highs and lows in advancement, with many of the highs happening right before our eyes within the last few decades. The 1800s were peppered with inventions that would pave the path to advancement. With the inclusion of electricity, Morse code via the electrical telegraph became the new way to communicate over a distance by 1838 in the United States. Within 20 years, not only was most of the United States and Britain well-equipped with telegraph stations to communicate within their own countries, a gentleman named Cyrus Field ambitiously encouraged the installation of the first transatlantic cable from the U.S. to England (The History of Telecommunication, 2017). Nearly another 20 years later, in 1876, Alexander Graham Bell invented the telephone (The History of Telecommunication, 2017), but would not be functional until mid-1877 (Tracey, 1997). With the birth of the telephone came aggressive competition as new or renovated companies entered the business. Law suits were filed over patent infringements between Western Union and Bell as thousands of small, independent companies began to form on the sidelines. By 1900, American Telephone & Telegraph became Bell’s parent company and did their very best to

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eliminate competition by forcing some out of business while buying others, despite the efforts of courts and their competition (Tracey, 1997). Their stronghold efforts were as much a success then as they are today. Today we know them as AT&T. As the telecommunication industry entered the 20th century, a great deal of attention was focused on improving and modifying the telephone and its service capabilities, invention of the television, and restructuring policies and regulations for these new devices and services. Not only did the U.S. have transcontinental and transatlantic telephone lines for long distance calling by 1927, media history was also made when Phillip Farnsworth unveiled the first working television (The History of Telecommunication, 2017). Although the first phone call was made from an automobile in 1946, due to high installation costs and lack of popularity, mobile and cellular technologies did not see much success until much later (The History of Telecommunication, 2017). Regulations for communications began in 1887 with the federal ICC, or Interstate Commerce Commission, and included all radio, wire, and interstate telephone communications by 1910. However, the FCC, or Federal Communications Commission, became the authoritative and regulatory body after the Communications Act of 1934 and remains the primary federal authority even today (Tracey, 1997). Although controversial at the time, telecommunications via satellites became a reality in 1962 with the Communications Satellite Act (The History of Telecommunication, 2017). The FCC’s 1972 “open skies” policy allowed any financially sound and technically capable entity to operate a satellite, which allowed other companies an opportunity while slightly reining in AT&T (Tracey, 1997). In the United States, more homes than not had a telephone by the mid-1900s. There were roughly 200 million operational phones around the globe by 1967 when President Lyndon

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Johnson attended ceremonies that marked the 100 millionth telephone installation in the United States (Tracey, 1997). And finally, in 1973, the first modern-era mobile phone call was made which would later be used as the prototype for the first mobile phones produced by Motorola (The History of Telecommunication, 2017). By the early 1980s, the telecommunications industry was ready to burst at the seams with advancement. The first mobile phone network was introduced in 1979 and expanded in 1981 (The History of Telecommunication, 2017). Although email was first invented in 1971 by Ray Tomlinson (Tracey, 1997), Jonathan Postel created SMTP email in 1982 (The History of Telecommunications, 2017), which is the protocol widely used today. The Internet finally evolved after an official switch from NCP to TCP/IP by ARPANET in 1983 (The History of Telecommunication, 2017). As telecommunications moved into the 1990s and the early 2000s, these new and exciting technologies began to move into households and become as common as the home phone. Although televisions were common in households by this point, suddenly a variety of options became available like over-the-air broadcasts and cable and satellite providers. Personal computers were the new, exciting electronic with the Internet following shortly behind. Such advancements would eventually allow us to have our television, PCs, phones, and Internet all in one handheld device.

B2. Legal Form of Ownership: Old Dominion Satellite Solutions will operate as a limited liability company in the City of Charlottesville as a retail store specializing in satellite and telecommunication services for homes and businesses. ODSS will operate as an LLC due to liability protection, ease of establishing the business, and flexibility in altering it when necessary.

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To establish this, a registration form must be filled out and filed with the Virginia State Corporation Commission and a fictitious name certificate will be filed with the City of Charlottesville to identify that Old Dominion Satellite Solutions, LLC will operate as Old Dominion Satellite Solutions or simply, ODSS. The city of Charlottesville will also require an annual application be filed for license tax and an annual fee will be due based on a calculation of previous year’s gross receipts. A visit or phone call to City of Charlottesville’s Zoning Office or Commissioner of Revenue will let us know if further licensing or permits are required. Finally, ODSS must apply for an Employer Identification Number from the IRS for Federal tax purposes. ODSS’ sole proprietor, Rachel Henderson, will be responsible for all business operations and will establish an operating agreement to clarify business operations, roles and operations, and for taxation purposes.

B3. Location and Facilities: Old Dominion Satellite Solutions will have two locations, one office and retail location and one storage location. For the retail and office space, a lease will be agreed upon for a location in a well-established strip mall or shopping plaza with adequate parking and ability to modify signage to easily identify and advertise store. It would be advantageous for ODSS if the surrounding retailers offered similar, not exact, services or products, such as cell phone plans, televisions, or other home theater items. The space will require an open area of approximately 900 square feet with an airy, cozy atmosphere, while still highlighting three individual areas. The front space will have desk space with phones and computers where one or two agents will be available for all interactions with clients in person or by phone, email, or social media. The second area will attractively showcase current products and technologies, along with interesting reads on posters or stands which discuss the specifics of

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the products and history of the satellite industry. The final section will be a space with the products and services in use. This space will resemble a living room and home office with a home theater and computer for clients to observe and assess the offered products and services prior to making a commitment or purchase. There will be restroom facilities available and 1-2 offices in the back area, mainly for HR, Finance, and their filing and security purposes. The storage unit will be leased at a nearby location. It will need to be approximately 185 square feet, temperature-controlled, and outfitted with shelving for organization and storage of extra products and installation supplies for the technicians to acquire when they need.

B4. Management Structure: Old Dominion Satellite Solutions’ management structure will reflect that of a flat organization. Although there will be a small hierarchy of three tiers, there will be a strong focus on collaboration and communication which will somewhat skew the levels of authority and empower all employees to step up and take charge. ODSS’ key positions include: Owner & Operations Director – Coordinates with all departments to establish efficiency, stability, and harmony within the company, sets company short- and long-term goals and then creates and delegates plans of action, promotes company and sales through various community programs and events, oversees and approves all financials, assists with hiring decisions and trains new hires, supervises and coaches when necessary, and attends trade shows to remain up to date on current technologies and promote company. Human Resources & Finance Manager – Plans and implements best practices and policies for training or to ensure company is in compliance with all state and federal laws, maintains and updates job descriptions and responsibilities, conducts interviews or assessments for hiring and

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exit interviews for departing employees, creates and maintains filing system for employee and company records, oversees payroll and any benefits programs, documents and analyzes bookkeeping details such as accounts payable and receivable and other financial activity, and creates and updates budgets based on financial analysis. SMC Manager (Social Media, Marketing, & Community Relations) – maintains website and media platforms to attract new clients and retain existing clients, responds to emails and messages from the various platforms, updates promotional offers, monitors and reports on marketing results, and seeks and implements ways or programs that represent Old Dominion Satellite Solutions as making positive contributions to the community. FSM/WM (Field Service Manager & Warehouse Manager) – Reviews other companies and suppliers on their product quality and pricing, establishes relationships and negotiates contracts with chosen companies or suppliers, submits orders based on financial budgets and equipment needs, receives and organizes shipments, reconciles and submits transactions to finance department. Trains new technicians and ensures existing technicians’ certifications are up to date, monitors technicians’ schedules. Collaborates with Agents for store restocking purposes and to generate or review estimates and invoices. Technicians – Responsible for following schedule and arriving to clients’ homes or business in a timely fashion, provides professional and clean installation, educates customer on products or services that have been installed, assists client in setting up any online portals for payment or monitoring of their service, suggests add-ons that may further benefit client, and leaves clients’ locations as clean as when first arrived. Agents – Act as the first point of contact for all clients, offer recommendations and encourage sales based on client needs, responds to questions or minor troubleshooting issues via walk-in,

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phone, or email, oversees daily operations in the store and ensures all items and activities are compliant with any policies, collaborates with Marketing Manager to update sales and promotional offers and reports clientele responses to current or past promotions, reports inventory numbers or restock needs to Warehouse Manager, and light cleaning of the store.

B5. Products and Services: Old Dominion Satellite Solutions will operate as a retail environment offering satellite and telecommunication products and services to homes and businesses. ODSS will retail for a variety of satellite television, phone, and internet companies that offer residential services, bulk or multi-dwelling unit services, and commercial services. For these services, ODSS will carry replacement items like remote controls and HDMI cables and add-on items like Wi-Fi routers, Bluetooth headphones, and sound bars. HD TV antenna solutions and products will be available for purchase, install, or servicing, along with long-range cell phone or Wi-Fi amplification systems. Solutions ...