The Final Business Plan

Opportunity Incorporated

Opportunity Incorporated Business Plan

Founders Alex Orr (CEO) Alice Ye (CFO) Brandon Ravenell (CHRO) Hannah Liu (CMO) Josh Simpkins (COO) Warwick Jones (CTO) Opportunity Incorporated 710 Tillery Austin, TX 78702-3738 512-137-8346 E-Mail:[email protected]

Executive Summary Company Description In the Twenty-First century, child safety and convenience are high performing industries. This is made evident by the rising number of crimes and the number of times consumers who opt for a more convenient product (fast food over sit-down dining, etc.). Opportunity Incorporated, a new security and student identification company based in Austin, Texas, has identified the business potential in these industries and, within five years, plans to be the premier security and student identification company for private schools in America. Mission Statement The Guardian, Opportunity Incorporated’s security and identification system, offers convenience and peace-of-mind to students and faculty members. With RFID (Radio Frequency Identification) cards and scanners, students and faculty will gain access to electronically-locked sections of a school’s campus while non-student or faculty members will be limited to the school’s lobby. Once the students are secure on campus, they will use their RFID cards to record their entrance and exits from the classroom, checkout library books, make purchases in the dining hall, and check their grades online. Target Market The Guardian will be sold to private elementary, middle, and high schools across America. We chose this target market because it contains the necessary amount of cash to purchase our product and, because of public school board policies and meetings, sales will be easier to obtain. Marketing and Sales Strategy The Guardian’s target market is specific and unique. Therefore, the marketing department relies on direct mail, trade shows, and luncheons to directly reach its potential customers. The Chief Marketing Officer chose

these strategies because, with our type of target market, they were the most efficient and rewarding forms of advertising. Competition ADT Security Services offers a product similar to The Guardian, but it is directed more toward the security of corporate headquarters and large office buildings. The Guardian is the first product of its kind directed toward the educational setting and, therefore, will have the “first mover’s advantage.” As of now, there is no competition in this market, but with time it is subject to change. With their brand name and record of success, ADT Security Services could expand into the educational market and potentially reduce our market share. Management Opportunity Incorporated’s founders (Warwick Jones, Hannah Liu , Alex Orr, Brandon Ravenell, Josh Simpkins, and Alice Ye) have a rich history as being determined and successful leaders. The CEO, Alex Orr, graduated from the Missouri Auction School in 2008 and plans on becoming a certified auctioneer. In the Spring of 2009, Alex was a finalist in the Accounting Applications competition at DECA’s International Career Development Conference. In the Spring of 2010, he plans to become an intern for Merrill Lynch. Josh Simpkins, the company’s COO, is currently a member of the Junior ROTC Program, a recipient of the Eagle Scout Award, and holds a 4.0 GPA at his high school. Alice Ye, the company’s CFO, was the first place winner in Tennessee’s Future Business Leaders of America accounting competition. She is also a member of her student council program and a member of International Baccalaureate Diploma Program. Operations Opportunity Incorporated will be based out of Austin, Texas. Austin’s economy, with an unemployment rate of 5.5%, is one of the best in the country. In addition, Austin’s fees to become a business are very low ($99.00/year for a business license, $395.00/year corporation fee) and it is home to some of the top schools in the nation. The booming economy and the emphasis on education make Austin and ideal location for our startup business.

Finances During the first year, Opportunity Inc. expects to sells 185 units of the Guardian at a price of $40,000. This will give us a net income of $1,159,857. The second year we expect to sell 882 units for $41,200. We will also sell 185 packages of RFID cards for $2,058 per package. At the end of 2010 we expect to have a profit of $8,395,766. In 2011, we will sell 2,724 units of the Guardian for $42,436, and 824 packages of the RFID cards for $2,118. Therefore, by the end of the year we will have earned $36,759,691. Funds Sought and Exit Strategy Opportunity Incorporated will borrow roughly $2,165,000 at an interest rate of 9% to have a positive cash flow. This loan will fund the initial the initial marketing budget and cost-of-goods sold, along with all other startup costs. In the event that an investor decides to leave the company, his/her share of the net worth will be sold to a new investor or to the remaining shareholders. In the event that the entire company must be liquidated, we plan to sell the business as a whole to our competitor—ADT Security Services.

Company Description Opportunity Incorporated is a school security and student-tracking company based in Austin, Texas. The headquarters, located at 701 Tillery Austin, Texas 78702, is the base for all the company’s operations. There the six company members develop database software, research America’s schools needs, and build new RFID (Radio Frequency Identification) security and a tracking systems. The Company’s Mission The Guardian, a security and attendance database by Opportunity Incorporated, provides a school-wide system that protects students and faculty from outside threats such as gunmen, sex offenders, or any other kind of threat. Opportunity Incorporated strongly believes in listening to our customers’ needs, developing a quality product, and standing by everything we do. In today’s hostile world, security is a priceless commodity, and Opportunity Incorporated pledges to develop some of the most affordable and dependable security systems available.

Services Opportunity Incorporated offers a unique security system that not only protects students and faculty, but also makes their lives less stressful. The Guardian, the company’s original security system: •

Protects students and faculty through RFID controlled doors ○ Students’ and faculties’ RFID cards allow them to access different parts of campus ○ Intruders, who do not have an RFID card, will not pass beyond closed doors • Takes electronic attendance in classrooms ○ This saves valuable time ○ The entire class time can now be used for learning, not taking attendance • Simplifies students’ lives ○ One card contains library and dining hall information ○ Students and parents can view grades on a secure website One security package will cost an average size school around $40,000. The Guardian is worth its upfront cost. With our product, parents will have a better sense of their child’s security, more class time will be devoted to education, and families can live less stressful lives.

Legal Status and Ownership As the name clearly states, Opportunity Incorporated is a corporation. The six owners (Hannah Liu, Alex Orr, Brandon Ravenell, Josh Simpkins, Warwick Jones, and Alice Ye) chose this legal position to minimize each owner’s liability. Each member’s $20,000 investment represents $120,000 in total equity. A corporation was the best setup for protecting the company, the initial investors’ financial futures, and the futures of the possible investors to come.

Industry Trends & Analysis Industry Trends and Developments •

Competition has grown due to higher demands for school security Our competition includes the following: ADT Security, SecureLink, Lynx Security, MyGradeBook, MyLunchMoney, and Safe-Card ID • Because these companies provide similar services, they strive to provide the best customer service and push their ability to adapt to their customers’ needs and problems in the educational setting Competitive Changes and Opportunities •

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RFID chips already exist and some are even used to take school attendance • InClass tried this concept before, but the product was eventually overruled due to school negligence and parental disproval, and InClass was put out of business • Since The Guardian is the first product to combine security, attendance, lunch card information and library card information into one, we expect our competitors to make an effort to follow our unique example • But with quick action, The Guardian will have the first mover’s advantage and prove to be the most effective product in our market Market Changes and Opportunities • •

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Our competition strives to provide the best customer service and response to customer needs Because we incorporate so many of the customer’s needs into The Guardian, we cover a wider range of customer service than our competitors Customers are always looking for easier, more convenient ways to carry out everyday tasks. The simplicity of our product makes The Guardian the clear choice for consumers looking for ease, comfort, and safety

Target Market Market Description Opportunity Incorporated will begin operating in Austin, the capital of Texas. Our niche is within the private school industry of the United States. The geographic area that we will be reaching in the first year includes the following cities:

• • •

Austin San Antonio Houston

•

Dallas

The cities host many great private school systems whose priorities are high enough to spend money on their students’ safety. Market Size and Trends According to MSN Encarta, Austin is the number 5 most educated city in all of the United States. Obviously, schooling is important to the city council, and our product would be welcomed. • •

Population – 800,000 (Sixteenth most populous in all of America) Nearby cities are also populous ○ San Antonio – 1,000,000 ○ Houston – 2,220,000 ○ Dallas – 2,400,000

The majority of adults in Austin value a quality education. Statistics of school funding towards education and building of libraries and research centers show that the city values its schools and the knowledge they provide. •

For population 25 years and over in Austin ○ High school degree or higher: 83.4% ○ Bachelor's degree or higher: 40.4% ○ Graduate or professional degree: 14.7%

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Statistics ○ Total enrollment: 79,788 ○ Number of facilities elementary schools: 74 ○ Junior high/middle schools: 17 ○ Senior high schools: 12 ○ Special campuses: 4 ○ Student/teacher ratio: 22:1 (kindergarten through grade 4); 2526:1 (grades 5-6); 28:1 (grades 7-12)

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Teacher salaries ○ Minimum: $35,080

○ Maximum: $56,800 •

Funding per pupil: $6,644

Austin is also popular for its diverse economic base and urban city status. Urban teachers are more likely than rural and suburban teachers to be victims of violent crimes—28:12 crimes per 1,000 teachers, increasing the cause for installation of The Guardian.

In Austin lies: • • • • • • • •

More than 30 colleges 5 airports and 15 heliports Numerous medical sites, including on major site 4 major libraries Major water supply company – Cherokee Many major park reservation programs – promotes a clean environment. 8 major banking systems are prevalent: JPMorgan, Wells Fargo, Bank of America, Wachovia, Compass, Prosperity, Frost National, Regions. 31 other banks with 78 local branches.

The breakdown of employment in Austin by industry is as follows:

Industry Size of nonagricultural labor

652,3 00

Natural resources and mining

1,500

Construction

35,70 0

Manufacturing

57,70 0

force

Trade, transportation and utilities

112,0 00

Information

20,90 0

Financial activities

39,40 0

Professional and business

85,50 0

Educational and health

65,70 0

services services Leisure and hospitality

63,50 0

Other services

24,50 0

Government

145,8 00

The previous information is summarized in the following chart: Largest employers—each employs over 5,000. • Austin Independent School District • City of Austin Dell Inc. • Federal Government • Freescale • Semiconductor Inc. • IBM Corp. • St. David's Healthcare Partnership • Seton Healthcare Network • Texas State University-San Marcos • University of Texas at Austin Municipal Government Austin operates under a council-manager form of government. There is a mayor (Mayor Will Wynn) and six three-year term council members who appoint the city manager, also known as the chief city administrator. Target Customers Opportunity Incorporated targets private high schools with the following attributes:

• • • •

Safe-minded headmasters and headmistresses High technological use Funding for purchase A supportive school system and city council

Market Readiness Schools across America monitor their campuses using many obsolete forms of security systems. The Guardian is a modern security product with state-ofthe-art technology. Its RFID system will increase school campus security with a simple, convenient infrastructure of RFID cards and scanners. According to U.S. Department of Education: 76.6% of high schools lock exterior doors. This makes a school semi secure, but it is a hassle whenever a serviceman or teacher needs to use it. The Guardian will improve this security technique with the RFID controlled door system. With The Guardian, the school system can electronically monitor who enters and exits the building through any given door, at any given time. • 46.6% of faculty and 16.1% of students are required to wear IDs while on campus. The Guardian will improve security by requiring all students and faculty to wear their IDs in order to access different sections of the school’s campus. This will improve security and make it easy to spot any intruder without an ID. • 69.7% of schools use security cameras to monitor the movements of their students. With The Guardian’s database, an administrator can easily see when and where a student goes on campus. While security cameras are still needed to monitor the specific actions of students, The Guardian provides a precise and efficient way to track a student’s movements. • The educational market is ready for The Guardian to debut the new age in school security. For years schools have used black and white broadcasting cameras, along with simple photo identification, to track and monitor students. New technologies have arrived, and these once high-tech systems have become obsolete. The Guardian, with its efficient and reliable RFID scanner system, will change the face of educational security. Now anyone on campus must carry an RFID card to gain access beyond the school’s front door. With The Guardian, students and faculty can learn and teach in an environment that

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caters to the safety of those within it. Private Schools: Research Research has shown that it is smarter for Opportunity Incorporated to target private rather than public schools. In a recent survey to homeowners, 8,790 people were surveyed to gain the following responses to the questions:

In other surveys issued to teachers of public and private schools, teachers revealed their feelings about the difference between students in public and private schools.

In the article Private Schools: A Brief Portrait, from the National Center for Education Statistics, the following information was obtained: Private schools stress education and grades more than public schools: •

Private school students are more likely than public school students to complete a bachelor's or advanced degree by their mid-20s.

•

Private school students generally perform higher than their public school counterparts on standardized achievement tests.

•

Private high schools typically have more demanding graduation requirements than do public high schools.

•

Private school graduates are more likely than their peers from public schools to have completed advanced level courses in three academic subject areas.

•

Students in the lowest SES quartile who attended a private school in 8th grade were nearly four times more likely to earn a bachelor's

degree than students from the same quartile who attended a public school.

Private schools provide a better environment and more accepting environment than public schools: •

Private school teachers are more likely than public school teachers to report being satisfied with teaching at their school.

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Private school teachers are more likely than public school teachers to report having a strong influence on several teaching practices and school policies.

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A majority of private school teachers express positive opinions about their principal and their school's management.

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On average, private schools have smaller enrollments, smaller average class sizes, and lower student/teacher ratios than public schools.

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Private high schools are four times more likely than public high schools to have a community service requirement for graduation.

A High School Lean Our marketing leans towards high schools more than elementary and middle schools. High schools are more likely than other schools to experience a violent incident—with a ratio of 92:61. In a survey of how many violent incidents were actually reported to the police, the police received reports from 71 percent of high schools, compared with 20 percent of elementary schools, 56 percent of middle schools, and 51 percent of combined schools. Future Warehouses Our company hopes to settle in the most educated cities in America. Ran k

City, according to rank

Percent of Population with college degree or higher

1

Seattle, WA

52.7

2

San Francisco, CA

50.1

3

Raleigh, NC

50.1

4

Washington DC, MD

45.3

5

Austin, TX

44.1

6

Minneapolis, MN

43.2

7

Atlanta, GA

42.4

8

Boston, MA

40.9

9

San Diego, CA

40.4

10

Lexington-Fayette, KY

39.5

11

Denver, CO

39.0

12

Charlotte, NC

38.8

13

Portland, OR

38.8

14

St. Paul, MN

36.5

15

San Jose, CA

36.1

16

Colorado Springs, CO

34.9

17

Honolulu, HI

34.7

18

Oakland, CA

33.8

19

Pittsburgh, PA

32.3

20

New York, NY

32.2

The only city in which we plan to lease a warehouse, which is not on this list, is Orlando, FL. We strategically placed a warehouse in Florida because it is the fourth state in the United States with the highest population of private schools: 2,838.

Marketing Plan The Guardian distinguishes itself from the competition by giving our customers the protection and freedom that they need. Our competitors provide some services similar to The Guardian, but the competitors fail to provide all the services we do. The Guardian keeps our consumers safe from intruders while making live on campus more convenient. Opportunity Incorporated knows that our customers’ time is valuable, and we offer a variety of services with one system so our customers have the time to do what they want and need to do, and not waste time by taking attendance. The Guardian Meets Customers’ Needs The Guardian meets the needs of private High Schools by providing the following benefits: 1. Increased Safety 2. The convenience of one system to deal with various daily school functions The Guardian uses safety and ease in all its marketing efforts. The name of the product is designed to not only to be memorable, but it also implies safety, security, and protection. Our slogan “Your Safety—Our Responsibility” is designed to reinforce the idea of a safe and protected school environment. Sales Mechanism Opportunity Incorporated emphasizes all 6 uses of The Guardian. The six uses in one system help to offer the consumer many benefits. The Guardian’s security system provides safety while the attendance system offers convenience by allowing teachers more time to educate their students. Together, these benefits will help to us to sell The Guardian to many private high schools. Since the price of The Guardian is projected to be $40,000, the goal is to target private high schools using face-to-face solicitation marketing tactics. Our outside sales force in the first year will be made up of our Chief Marketing Officer Hannah Liu, Chief Human Resources Officer Brandon Ravenell, Chief Executive Officer Alex Orr, and three other hired employees.

However, this is only temporary. As the years progress, our business will expand to an extent where more sales people are needed—25 more in 2010, 76 more in 2011, 140 more in 2012, 173 in 2013, and progressively greater as we begin to target public schools. All hired salespeople and the three chiefs will take part in sending direct mail, distributing brochures, making presentations to Headmasters and Superintendents, and taking them to informal marketing events.

Conferences Educational and safety conferences are the key part of our company’s marketing. In the first few years, Opportunity Incorporated will only be showing at private school-targeted shows. These conferences allow us to reach a wide spectrum of schools in a short amount of time. They will also help us to directly spread our name to many potential customers. Our company expects to attend as many tradeshows as our budget allows, which will average $18,000 per display reservation. Because of the importance of these conferences, the representatives sent will be none other than the most persuasive of our company. The remaining workers will continue their jobs in their corresponding city. Print Media Direct mail will be sent quarterly to every school in our specific target market. Supplies will be purchased every July. These include envelopes and Kinko’s prints (10 cents per paper). At the beginning of every quarter (October, January, and April), we will purchase postage stamps—in order to be updated on the latest stamp value—and send off more advertisement letters to heads of schools. Brochures – Every May—July, for the first business year—will be printed to send to our specified target market. Each copy will be made at Kinko’s, and will cost $1.03 per brochure produced. These will be distributed every April— and July, for the first business year—in order to give headmistresses enough time before summer break to consider purchase. The effect of the repeated direct mail at the beginning of the year added onto the push of the brochure will help further convince school decision makers.

Our business will also be publishing advertisements four times a year— though the payment will occur at the beginning of each paying year—in a few well-known magazines: Private Schools Revealed, National Association of Independent Schools, Education Next, Education Week, American School, School Leader, On Campus, American Teacher, and American Educator. The last three magazines provide a 25% off discount if a company advertises in two out of the three, so our costs may be easily cut. The numbers are listed on the next page:

Magazine Advertising Rates 2009

2010

2011

2012

2013

Size of advertisement

½ a page

1 page

Back Cover

Back Cover

Back Cover

Private Schools Revealed

$2,955

$4,705

$8,685

$8,685

$8,685

NAIS

$2,955

$4,705

$8,685

$8,685

$8,685

Education Next

$2,955

$4,705

$8,685

$8,685

$8,685

Education Week

$2,955

$4,705

$8,685

$8,685

$8,685

American School

$2,955

$4,705

$8,685

$8,685

$8,685

School Leader

$2,955

$4,705

$8,685

$8,685$

$8,685

On Campus

$9460, $13,500, $15,000, $15,000, $15,000, 25% off = 25% off = 25% off = 25% off = 25% off $7,095 $10,125 $11,250 $11,250 = $11,250

American Teacher

$9,460, $13,500, $15,000, $15,000, $15,000, 25% off = 25% off = 25% off = 25% off = 25% off $7,095 $10,125 $11,250 $11,250 = $11,250

American Educator

$9,460, 25% off = $7,095

$13, 500, $15,000, $15,000, $15,000, 25% off = 25% off = 25% off = 25% off $10, 125 $11,250 $11,250 = $11,250

Total

$39,015

$58,605

$85,860

$85,860

$85,860

Aside from print media, our company will be hosting a website to give school heads a secondary information source about The Guardian.

Outside Sales The majority of sales for The Guardian will include traveling to prospective headmasters or school board superintendents and presenting the product to them. Our company projects a meal (costing roughly $30 each) with about half of all the private school directors in the states we target. This job includes charm and sales tactics that our outside sales team will develop over the years. The chart below shows the amount of meals and their costs from 2009 to 2013. Because we will not hit the exact projected number, this number includes extra meals with schoolmasters who need a second meeting in order to make an educated decision about the purchase. 2009

2010

2011

2012

2013

2630

8019

15807

13467

24921

Number of Meals 1315

4009.5

7903.5

6733.5

6230.25*

Cost

$120285

$237105

$202005

$186907. 5

Number of Schools

$39600

*Because we will have reached a nationwide level in 2013, our company will advertise on a lighter scale for the years to come and will aim to hold meetings with a quarter—instead of half—of our target. These meetings will come easier because our name will already be known to the states and their respective private schools. Chambers of Commerce After filling out respective applications, our company will be entered into many chambers of commerce. Research shows that: • Membership in a local chamber of commerce significantly boosts a business’s image among consumers and other businesses. • Consumers are 63 percent more likely to buy goods and services from a company they believe is a member of the chamber of commerce.

• •

When decision-makers believe a business is a chamber member, they are 59 percent more likely to buy goods and services from that business. When consumers believe a restaurant chain is a chamber member, they are 40 percent more likely to eat at the franchise.

Membership Rates Employees

Cost

1-4

$340

5-9

$375

10-19

$455

20-29

$570

30-39

$680

40-49

$790

50-74

$885$

75-99

$995

Over 100

$3000

In urban areas inhabiting millions of people with trained workforces, wellknown qualities of life, moderate costs and tax rates, technological development, and research and manufacturing experience, Opportunity Incorporated is able to find plenty of business opportunities. We plan to join Chambers of Commerce in every city we place a warehouse. Every year, we will be paying a fee to the different Chambers of Commerce, which, as the following information proves, will reap greater benefits. 2009 Austin, TX Austin Chamber of Commerce (2009) – $680 The Austin Chamber is a cooperation that has built a stronger economy and better business community in Austin for more than a hundred years.

• • • • • •

•

•

2010

Free listing on ACC’s website on a searchable directory – This listing receives more than 5,000 hits a day. Free listing in the Chamber’s Membership Directory and Buyer’s Guide – Six thousand copies of this valuable resource are distributed to subscribers. Business referrals – More than fourteen thousand people call the Chamber looking for services. The Chamber then refers the callers to Member business, equaling in hundreds of referrals each month. Brochure display – The ACC Business Resource Center has a membersonly display area for Members’ marketing information. Member-to-Member Marketplace – On a much-visited part of the ACC website will be our company’s directory that grants fellow Chamber members discounts. It is searchable and links to our business. Relocation sponsorships – This plan puts our company’s name before businesses and individuals who request information about moving to Austin. The Chamber receives an average of 200 requests a month, and this is a great way to make our name known to newcomers. This helps higher our reputation in the eyes of Austin homeowners— parents, whose opinion will affect our product’s success. Guides and directories – Our name will be printed in multiple print directors: the Membership Directory, the Austin Newcomers’ Guide, Technology Austin, and Greater Austin Real Estate and Business Meetings. The Chamber’s exclusive publisher, Marcoa, will help the Chamber Members with advertising tactics. Further advertising – Along with joining the Chamber comes with the opportunity to buy advertisements in the Chamber monthly newsletter and the weekly e-letters. However, we target private schools and their headmasters, so we will not take this offer. We will, however, have our company name printed in both newsletters. In the e-letter, @theChamber, the Guardian name will reach about ten thousand businesspeople, community leaders, and public officials every week. In CHAMBER Ink, our name will reach nearly five thousand: 1,400 service business; more than 350 financial, insurance, and real estate members; more than 200 trade industry businesses; more than 180 government and nonprofits; and more than 100 construction, utility, and transportation providers.

Denver, CO Denver Metro Chamber of Commerce - $4686 The Denver Metro Chamber of Commerce focuses on key issues: a solid multimodal transportation infrastructure; access to quality, affordable health care; and a competitive primary, secondary and higher education system. •

•

•

2011

Connections – the DMCC offers many programs to facilitate marketing relationships. They and their benefits are listed below: ○ Gold Member Alliance Program – fosters business development and strategic positioning ○ Gold Program – high-level networking ○ CEO Exchange – discussion of practices and mutual challenges ○ Business After Hours – exchange ideas with hundreds of other Chamber members ○ Special Events – there are more than 50 Chamber events a year. ○ Leads Groups – create customer relations and gain year-round business referrals. Training – seminars are held throughout the year to help improve companies’ performance. ○ NxLeveL – entrepreneurship training ○ Access Denver – two-day series of informational forums and social events that provides information and access for becoming more active in the community. ○ Leadership Exchange – brings prominent business and civic leaders together in a host city to discuss innovations to help strengthen city vision. ○ Legacy Denver – leadership mentoring program that regards issues of regional importance and community engagement. Volunteer Opportunities – Every month, ambassadors of DMCC volunteer to increase member retention and involvement. This helps increase our good reputation in the community. There is also a Challenge Campaign, where companies volunteer together and then receive incentives for their efforts. More than $3 million are awarded in sponsorships.

San Diego, CA San Diego Regional Chamber of Commerce – $4648 The San Diego Regional Chamber of Commerce is a leader and catalyst in facilitating value for its members by optimizing their competitive viability in the regional, national, and global marketplaces. Group Health Care Coverage - Blue Shield of California offers Chamber member businesses with five or more full-time employees, not currently enrolled, preferred rates with no medical questions. • Office Products Program – We can save 20% off our total annual expenditures for office supplies by using the San Diego Regional Chamber of Commerce Office Depot Program. We can also take advantage of discounts on a variety of other products and services: technology, private brand, copy, design, print, ship services, furniture, and promotional products. • Worker’s Compensation Insurance – A new member benefit grants special pricing on Worker’s compensation Insurance. • New Benefit – Aflac, a medicinal company, offers renewable insurance policies that pay cash benefits in the event of an employee illness or injury. • New Dental Choice – Instead of dental insurance, Chamber members will receive this alternative. • FedEx Shipping Benefit – Our company will be able to save 26% on FedEx shopping services. • San Diego Business Journal – Our company will have our name printed in the Business Journal. We will also receive a free 6 month subscription. • Free Business Listings – The SDRCC will list our business through their Business Referral Directory for free. Their Member to Member discount program fields over 100,000 inquiries each year. Portland, OR Portland Business Alliance – $4648 The Alliance is dedicated to providing value to our members and working in partnership with other organizations to build a vibrant Central City and regional economy. •

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Connections – Through joining the PBA, we will be linked to more than 325,000 business people in the Portland region. There are many

• • • •

networking programs, community activities, and special events that will help us meet potential customers and clients. Value-priced advertising – As a member, we will qualify for free listings in popular printed and web-based publications. Member savings programs – Through their Member-to-Member discounts, we will be provided savings on a wide range of business services, such as restaurants, hotels, and travel fees. Downtown market research – We will gain expertise, access, and strategic partnerships that help us achieve more. Leadership programs – Programs such as Cornerstones Conversations and Leadership Portland will link us to other successful business people —both locally and nationally.

2012 Chicago, IL Chicagoland Chamber of Commerce - $4648 • Business Growth and Networking – We will be able to meet prospective clients at the Chamber’s many business development events and meetings. • Member Directory listing – Clients have access to this directory 24 hours a day. • Business Advocacy – The CCC by works to protect us from unfair taxation or regulation and grants us close access to elected leaders and key government staff on issues important to our business. • Professional Development – The CCC helps keep our business competitive. • Reduce Costs and Overhead – Because the CCC consists of trusted partners, we can access discounts that protect tour bottom line. We may also offer discounts of our own, so that we can interact with the rest of the Chamber. • Marketing Opportunities – The Chamber offers a broad range of sponsorship, advertising, and marketing opportunities that provide high-profile exposure for member businesses. • Resources and Information – the Chamber regularly informs members about developments and operations. Orlando, FL Orlando Regional Chamber of Commerce - $4648 The Orlando Regional Chamber of Commerce wishes to connect businesses

with one another and with the region to continue success. They shape the community's future by focusing on what matters most to Central Floridians. •

Connections – We will be able to connect with decision makers to grow your business. • Legal cover – Our business will be protected from unnecessary government regulations. • Discounts – We will receive discounts on business essential services to help keep us competitive in the market. • Complimentary entertainment – Because we are a part of this chamber, we will receive many VIP seating tickets at Chamber events, invitations to Trustees luncheons, free tickets to Chamber events across the nation, and more. • Free Directory Listing – The Guardian name will be published in the Orland business directory, free for potential private school sponsors to see. Raleigh, NC The Greater Raleigh Chamber of Commerce - $4648 The Greater Raleigh Chamber of Commerce works to sustain and further develop a thriving economy and to enhance our community's quality of life. •

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Longer contact list – Our name will be heightened through ○ Networking – More than 25,000 business people each year attend more than 120 education events hosted by GRCC. ○ Referrals – No matter what way, the Chamber receives more than 400 inquiries everyday. ○ Business-to-Business – Purchasers from larger corporations are brought together to do business. ○ Trade Shows – The Business Expo, North Carolina’s largest business-to-business trade show, features nationally renowned speakers, 300 exhibitors and 5,000 attendees. Another trade show, the Business Showcase, is a tabletop marketing opportunity with more than 200 exhibitors and 1,200 attendees. ○ Sponsorships – Dozens of affordable sponsorship opportunities allows members to get the company word out. Business Growth ○ Training ○ Leadership programs

•

• 2013

○ Resources – We will be granted geographical information services and demographic data to economic indicators and newcomer mailing lists. Member Discount program ○ Insurance ○ Office expenses ○ Telecommunications Link to regional legislative agenda

Boston, MA – The Greater Boston Chamber of Commerce - $4648 The Greater Boston Chamber of Commerce provides leadership in creating a healthy climate for economic development and job creation. •

•

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Aggressive Public Policy Agenda – The Chamber’s legislative agenda focuses on promoting innovation, advancing key development initiatives, developing and retaining a skilled workforce, reducing business costs, and improving the quality of life in the region. Programs and Events – The Chamber hosts a wide variety of programs and special events that will help us broaden our contacts, expand our knowledge, and meet with the area’s foremost leaders from business and government. Marketing Opportunities – The Chamber offers a broad range of sponsorship, advertising, and marketing opportunities that provide high-profile exposure for member businesses.

Pittsburgh, PA Greater Pittsburgh Chamber of Commerce - $4648 The Greater Pittsburgh Chamber of Commerce focuses on its advocacy functions – communicating a consistent agenda for action to benefit the business community. • Health Care benefits • Member to Member Discounts – We will gain exclusive peer discount offers. • Products and Publications – Our Company will be able stay connected through our member directory.

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Member Newsroom –We will be able to post our press release and get news from other members.

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Sponsorship Opportunities – We will be able to advertise in the Chamber Connections Directory or sponsor an event.

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Pittsburgh Magazine – Our company name will be printed in the Pittsburgh Magazine, and we will receive a free subscription to it.

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Special Invitations – Opportunity Incorporated will receive invitations to events hosted by the Allegheny Conference on Community Development.

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Business Briefcase – This program is our portal to free business support and resources offered in partnership.

Cost of Sales for Chamber of Commerce Fees Chamber Austin Chamber of Commerce (2009)

Fee $680

Denver Metro Chamber of Commerce (2010)

$4648

San Diego Regional Chamber of Commerce (2011)

$5648

Portland Business Alliance (2011)

$5648

Chicagoland Chamber of Commerce (2012)

$6648

Orlando Regional Chamber of Commerce (2012)

$6648

The Greater Raleigh Chamber of Commerce (2012)

$6648

The Greater Boston Chamber of Commerce (2013)

$7648

Greater Pittsburgh Chamber of Commerce (2013)

$7648

Organization of Sales Team All the founders of Opportunity Incorporated will be members of the sales team whenever time allows. Outside sales forces will be paid on commission, except the CEO. The other employees will receive financial bonuses for

securing sales, including travel (occasional plane tickets for appropriate meetings or gas and car rentals for land travel), dinner, and hotel fees.

Premiums In order to thank schools for doing business with us, our company will send a complimentary Feng Shui Zen garden, branded with our company name, after their payment is received. This garden is peaceful and relevant to a serene headmistress’s office. Each garden, along with gold and black tissue paper, in a company box (also with our logo in the front), and a “Thank You” note will total $15.13, a small fraction of our product as a whole.

Development Plan Long-Term Goals Opportunity Incorporated plans to expand at a steady rate in during the first five years of business. We will begin our operations in Austin, TX, and by the end of 2013 we plan to be America’s first choice in private school security providers. We can achieve this goal by following the specific plan listed below. Strategy for Achieving Goals To accomplish the goal of becoming the premier school security provider for private schools, in 2009, the first year of our business, Opportunity Incorporated plans to target private schools in the densely private schoolpopulated parts of Texas: Austin, Houston, Dallas, and San Antonio. We will work our way into these private school systems through educational tradeshows in the region, business luncheons with the school directors, and direct mail to these same school directors. All of these expenses have been accounted for in Opportunity Incorporated’s Financial Plan. During the year of 2010, Opportunity Incorporated plans to expand our customer base into the more distant regions of Texas and into Colorado and the surrounding states. Again, we will achieve this goal by engaging business luncheons with the school directors, direct mail, and expanding to tradeshows in the target area. In 2011, Opportunity Incorporated will continue expanding into the states surrounding Texas and Colorado using the same marketing plan. We will then settle in California, Oregon, and their surrounding states. In 2012, our company will expand to Illinois, Florida, North Carolina, and their surrounding states—all the while continuing growth in the previously acquired states. By 2013, we plan to focus our energy into expanding towards the East Coast, gaining areas of Massachusetts, Pennsylvania, and their surrounding states. Our company will then be a nationwide company, and will have gained a high reputation. Fff For highlighted items, refer to the attached table and map. Year

Advertise to

Sell to

2009

2010

TX = 614 [B] = 2016 Total = 2630 [C + D] = 8019

2011

[E + F +G] = 15807

2012

[H + I] = 13467

30% of dense areas of TX (Austin, Houston, Dallas, and San Antonio) = 185 20% of TX = 413 30% CO = 194 20% [B-CO] = 275 Total = 882 10% more of TX = 207 15% more of CO = 97 30% CA = 1649 30% OR = 176 20% [C – CA] = 150 20% [D-OR] = 239 15% [B-CO] = 206 Total = 2724 5% more of TX = 104 10% more of CO = 65 15% more of CA = 825 15% more of OR = 88 30% of IL = 627 30% of FL = 852 30% of NC = 325 20% [E – IL] = 964 20% [F – FL] = 0 15% [G – NC] = 734 15% [C – CA] = 112 15% [D-OR] = 180 10% [B-CO] = 138 Total = 5014

2013

Continue advertising to the United States. We have reached the majority of the states—with the exception of North Dakota, South Dakota, Hawaii, and Alaska.

Total = 39923

5% more of TX = 104 5% more of CO = 33 10% more of CA = 550 10% more of OR = 59 15% more of IL = 314 15% more of FL = 426 15% more of NC = 163 30% MA = 350 30% PA = 936 20% [H – MA] = 901 20% [I – PA] = 936 15% [E – IL] = 723 15% [F – FL] = 0 10% [G – NC] = 498 10% [C – CA] = 75 5% [D-OR] = 60 5% [B-CO] = 69 Total = 6197 Total = 15002

Fff For highlighted items, refer to the attached table and map. Private School Statistics State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii

Grade Pre-K to Total 9-12 Grade 8 Schools 215 461 676 38 71 109 98 428 526 106 203 309 1320 4174 5494 151 494 645 145 394 539 41 152 193 819 2019 2838 337 649 986 57 135 192

Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington

44 385 204 77 72 133 161 93 314 303 314 151 122 189 41 57 44 81 329 88 743 401 15 265 87 152 667 48 201 37 308 534 53 76 303 209

129 1703 801 269 218 405 416 155 862 863 1108 573 253 635 102 232 176 370 1400 222 2098 682 53 1071 190 433 2451 182 452 87 538 1529 119 119 772 669

173 2088 1005 346 290 538 577 248 1176 1166 1422 724 375 824 143 289 220 451 1729 310 2841 1083 68 1336 277 585 3118 230 653 124 846 2063 172 195 1075 878

West Virginia Wisconsin Wyoming

Table A TX AR LA OK Table B CO KS NE NM UT NM Table C CA AZ NV

Table D OR ID

2063 211 577 277 3128 645 290 289 310 172 310 2016 5494 526 220 6240

585 173

93 211 17

MT WA Table E IL MO WI IA MN MI IN Table F FL Table G NC VA SC KY AL MS GA TN Table H MA

152 967 41

143 878 1779 2088 143 1178 346 724 1422 1005 6906 2838 2838 1083 1075 653 538 676 375 986 677 6063 1166

245 1178 58

NH ME NY

451 248 2841

VT CT RI

195 539 230 5670

Table I PA OH NJ DE MD WV

3118 1336 1729 193 1176 245 7797

This massive expansion will take an increased amount of manpower for installing the product and an increase in the number of salespeople. Risks Associated with Expansion The largest risk associated with our rapid expansion is not expanding fast enough. With other technology companies constantly evaluating possible markets, they could observe that the possible profit in the educational market is well worth the risk. The Guardian must quickly expand across the nation to establish a customer base before another security competitor enters the market.

Operations Plan Facilities The location for our office space is at 901 Tillery Austin, TX 78702. As for the production facilities, we will be using suppliers, thus not having factories. Our suppliers are Daily RFID and Alpha Card. Daily RFID is located in Guangzhou, China, in Rm. D13, 4/F, Baiyun Commercial Center, NO.131, Jichang Road. Alpha Card is located in Portland, Oregon, at 17858 SW Upper Boones Ferry Rd. Our warehouse is located at 11160 Circle Dr. Austin, Texas 78736. As for the placing of our retail centers, there will be none. However, our current warehouse will serve as our storage area and distribution area. Also, our office space is very close to the airport where we will receive our product. It will not be a hassle to receive or ship for the first year. Our office space will be rented. The price of the building is $2,400 a month. There will not be any requirement for any sort of dividend of profit. The payment is a regular payment with no interest or any other kind of fee. Our warehouse will cost $550 a month. The lease will be the same, and the landowner is planning to keep an offer standing to buy the buildings if desired. There are not restrictions on the usage of our facilities. Our office space and warehouse will not have to be renovated to accommodate our product or employees. Signage will be at a minimum due to the minor effect it would have on our target market. Utilities are already in place in both buildings, giving us the luxuries of air conditioning and other accommodations. Any damages to the property will be paid by our company. Improvements to the buildings will be paid by the landlord unless the change is required by our company, in which case we will have to pay in full. Our facilities will be powered and supplied with water from Austin Utility Services. The rate of water and electricity in our building will cost approximately $0.40 a square foot. The total cost will be about $6,400 per year. The trash removal and janitorial services will cost about $900 a year.

The majority of these services can be handled by us in the first year; we will not be hiring trash pickup and cleaning services. The trash will be picked up at the curbside by the city of Austin, and the janitorial services will be offered by The Clean Sweep Co. There will be a deviation from the normal electricity costs in the winter and summer due to temperature changes, which will be recorded and dealt with. As for the position of our facilities, the actual placing will not affect our business to any great extent. Our office and warehouse are located within 10 minutes of each other, so time for driving between the two will not be an issue. Our lease, like previously stated, is not restrictive, and will be of later benefit. If growth occurs as rapidly, as we think it will, we will be expanding to other states within the second year. Product Our product is composed of 90 RFID Scanners, 2,000 RFID equipped picture ID cards, and a 2-year warranty. Our suppliers are named and located in the Facilities section of this plan. Our plan for recurring revenue is mainly put in having schools buy our cards at the beginning of each new school year. We will sell a package of 2,000 cards for $1200. As our business expands, we hope to have multiple product versions with different benefits including cameras, longer warranties, and more scanners. Once we receive the shipments of the scanners, our warehouse that will immediately process it. Once we have ensured that we have the purchase, our team will drive to the customer’s school and install the product. When our product and installers arrive on scene, a team of six workers will do the electrical work. There will be one highly trusted employee on scene (such as one of our Chief Officers) to ensure our company’s quality guarantee. The process will take approximately one week. After the whole process is finished and payment is received, we will leave a “Thank You” gift of a Feng Shui fountain with candles to show our appreciation of their purchase. With this and side-advertising through the school’s facilities (such as the football field banners and parents seeing our company name on the cards or scanners), we foresee the schools and its students’ parents to beginning spreading the word about The Guardian. Production

Our company does not manufacture our product, and thus does not have production costs or production speeds. However, shipping costs and speeds may need adjusting. If speed is required to install The Guardian before school starts, we will charge more, but a quick delivery is an option. Due to our projections of selling more products on the Summer, Spring, Fall, and Winter Breaks, variable workers may be requested from our supplier because of the quantity that would be necessary to fulfill the sales requirements. Our suppliers have mentioned that their products are made on assembly lines, making the process much faster and likely with more quality. If expansion for our company goes beyond the capabilities of our suppliers, we can either find more suppliers or we will likely take the time to create our own facilities and manufacture our own product. Personnel We will hire 28 technicians and 3 salespeople for the first year. There will not be a constant rate for acquiring new schools, but the results will be very positive. We will be expanding in the first few years from Austin, Texas to Denver, Colorado, and then from there to Los Angeles, California and Seattle, Washington. Then, as time goes on, we will start spreading towards the Eastern seaboard, beginning in Chicago, and then moving Southeast and then towards New England. As time progresses and our business expands, we will hire employees, expand our facilities, and start the process of becoming a major business. The major factor of this rapid expansion would be our salespeople and the school boards talking among themselves. In 2012, we plan to hire 94 salespeople, giving us a total of 172. If that number is not enough to convince our investors that we need their money, our total number of electricians will be 606. With such a large sum of employees and facilities, certain forms and procedures will be of great importance, especially as we will be installing our product in other states. They must encompass even the minutest laws in the United States, and must these laws must be taught to the group going to the installation site. The main procedures of installation will be written by our Chief of Technology, Warwick Jones. General business procedures will be

written by our Chief of Operations, Josh Simpkins. Policies and consequences will be written by our Chief of Human Resources, Brandon Ravenell. The number of salespeople and electricians to hire per year are listed below in the Yearly Chart. The number of salespeople and electricians will have total are listed in the Totals Chart. Yearly Chart Number of predicted sales Number of salespeople to hire Number of electricians to hire

2009

201 0

185

882

201 1 272 4

201 2 2013 501 4 6197

3

25

76

140

173

28

138

414

306

930

201 0 106 7 28 166

201 1 379 1 104 580

201 2 2013 880 1500 5 2 244 417 886 1816

Totals Chart 2009 Predicted Sales Salespeople Electricians

185 3 28

Customer Satisfaction In order to ensure the success of our business, we must guarantee that a more advanced and quality product will be produced. However, not all of our customers will be satisfied, and we will be prepared for it. The first thing we will do is to check our product for quality and a lack of shipping damages. As the product is shipped to its destination, we will also work to keep The Guardian in its best possible condition.

The next thing we will do is ensure our product is as good as our producers say is. To guarantee this, there will be at least one of the more trusted and hard-working employees at the installation site. Also, the specified trusted employee will provide a status report at the end of installation. He or she will also assess the overall performance and end result. In addition, if necessary, we will have a group of employees ready to answer any questions about our products and anything else. If service is required on our product, there will be a team ready to deal with the issue, whether it is a specific problem or a total do-over of installation. If a technical question is raised, our professional technicians will be ready and prepared.

Exit Strategy In today’s market, the decrease in school security funding may lead to low sales of The Guardian to private schools. In the unexpected event of failure, we would be acquired by our lead competitor, ADT. This strategy would allow us to receive cash. Our company would be a great acquisition because they would be able to dominate the school security field. With their brand recognition, they would be able to enter the field with little consumer doubt. If ADT were not able to acquire Opportunity Incorporated, we would pay off our debts by selling our assets to the highest bidder. However, this event would be very unlikely because of the demand for school safety. If one of the six investors wanted out, they would receive one sixth of the company’s net worth. Then the remaining members would search for potential investors to replace the lost investor.

Technology Plan Technology for Radio Frequency Identification is on the rise, and Opportunity Incorporated must include the latest technology in order to provide the best product possible. There are two major advances to RFID tags, and we plan to incorporate both of these into our product to increase reliability and revenue. As we expand, The Guardian will evolve into three different packages: Platinum, Gold, and Silver. Opportunity Incorporated must keep up with these advances in order to become a competitive company. In the next five years, Radio Frequency Identification (RFID) technology will advance, and Opportunity Incorporated needs to keep up with the advances in order to stay competitive. The biggest change to the technology is the tag design. Instead of the current RFID radio signals that are transmitted, the RFID tags are hoped to be equipped with Smart Active Labels (SAL). The difference between the normal radio waves and SAL is that SAL uses a filmthin battery. This battery allows for larger ranges of transmission between the card and the reader for the RFID tag. Not only do these batteries provide more efficient radio transmissions, but they are also easier to produce and distribute. The approximate battery life of an SAL is eighteen months. The SAL technology allows for a faster transmission between the card and the reader. Because standard RFID tags have proven to be problematic when the tags are in motion as opposed to held up to the reader, SAL technology emits a stronger signal that is not picked up by a standard RFID reader, which is designed for a slower radio wave exchange process. With the advanced range that comes with SAL technology, a new reader is required to accompany it. SAL technology is also more reliable because it performs more efficiently in areas with high electromagnetic interference, where radio waves interfere with each other. Electromagnetic interference is more of a problem with the standard, passive tags we used in the beginning. While these passive tags have a very short range (in our case centimeters) for transmission, SAL tags can expand beyond fifty feet. Another advancement for the RFID tags is Sound Acoustic Wave (SAW) technology. With SAW technology, the radio signals run across a thin, metal film that has been etched and indented. The radio waves are then adjusted

to those grooves in the metal, and in return transmit an alternate radio wave. Depending on the etchings in the metal, the radio waves carry different information. This technology is on the rise for RFID tags, and it is already being put to use in cell phones and televisions. Because this technology is based around a thin metal strip on the surface of the tag, the tag itself would not need a chip. Besides SAW technology, all other forms of RFID transmission technology require chips, therefore making SAW technology an incredible advancement. Because the SAW technology does not require a chip, the radio waves are able to operate more efficiently around other metal objects and extreme temperatures (which would present problems upon entering the school building on extremely hot or cold days). Another advantage to not having a chip is that the tags are more easily embedded in objects, which benefits our necklace and bracelet options for middle and elementary schools. Along with our expansion, Opportunity Incorporated needs to have a wider variety of products. As our customer base increases, we will include three levels of our product: Platinum, Gold, and Silver. In the Platinum package of The Guardian, we include the addition of security cameras, 180 scanners, and a five year warranty. In the Gold package, we include ninety scanners and a three year warranty; however we do not include security cameras. In the Silver package, we include sixty scanners with a one year warranty with no inclusion of security cameras. The amount of security cameras will depend on the size and design of the specific school. With the advances in technology coming to RFID, The Guardian needs to be properly updated in order to stay a competitive product. SAL and SAW technology provide solutions for the shortcomings of the basic passive ID cards, but also create new sources of revenue. The Smart Active Labels require a new reader, and the transmission range is longer. So, The Guardian becomes a more reliable product while creating a new source of income. Sound Acoustic Wave technology improves the product’s reliability in troublesome conditions for transmissions. Our new versions of the offered package make The Guardian available to a wider variety of schools, depending on budget and size.

Human Resources Plan At Opportunity Incorporated we provide safety with our Guardian school identification system. Our employees help us to carry out this mission successfully. Our Employees When we begin doing business, Opportunity Incorporated will have a workforce of three outside sales people and twenty eight electricians. As the company continues to expand, so will our staff. Our electricians will be supervised by our Chief Technology Officer and our Chief Operations Officer. They will make sure that the electricians will represent the company in positive way by ensuring quality. Our sales people will be responsible for selling the Guardian to headmasters of private schools. Values In order to carry out our mission, we conduct business with important values. At Opportunity Incorporated we: • Value Employees, Managers, and Customers • Are Honest in all our Operations • Value Our Community • Value Ethics Hiring Employees Opportunity Incorporated hires employees that help the company carry out its mission. To be hired, employees must submit Form I-9, Employment Eligibility Form, and W-4 form in order to withdraw the correct amount of federal tax from their pay. We plan on hiring four outside sales people. We will use a sales recruiter and job finding websites to find possible candidates to fill those positions. Our Human Resources Officer will interview no more than ten people based on their resumes and past experience. The top ten applicants will be interviewed by the CEO, CMO, and CHRO. They will also take intelligence and

integrity tests. The top three will be chosen based on their interview, test results, and on their past references. Before they are hired they will be drug tested, and they will have their background checked. Once the outside sales force is assembled, they will begin a one week training session with the Human Resource Officer. During this period they will become acclimated with the company and our product. After their training ends, they will shadow the CEO, CMO, or CHRO on 3 sales calls. Then they will perform three sales calls on their own with a founding member present before they are allowed to perform one of their own. Twenty Eight electricians will be needed to in the first year in order to in the Guardian in schools across Texas. They will be paid twenty dollars an hour and will be expected to work 40 hours per week. Their job will require them to travel to schools that purchase the Guardian. They will stay in a local hotel for one week in order to install the system. To be hired by Opportunity Incorporated as an electrician, candidates must be licensed. The final decision to hire an electrician will be made by the CHRO based on the individual’s past experience and references. Every potential candidate will every employee will be drug tested and have their background checked. Disciplinary Actions Opportunity Incorporated employees will be valuable assets. Before an employee can be fired, the must receive oral and written warnings unless they break a zero tolerance policy. Every written warning will be kept in the employee’s file. The six executives of the company will issue warnings for inappropriate behaviors. When an employee has received five written warnings, he or she will receive a pay deduction. Once an employee receives ten written warnings they will be placed on probation while the founding members decide if the employee will remain a part of Opportunity Incorporated. If the employee is kept, he or she will remain on probation for up to three months. Written warnings will be issued for the following actions:  Tardiness  Using company time for personal uses

 Failure to clock out for unpaid lunch break  Possessing firearms, explosives, alcoholic beverages, or illegal substances  Insubordination

The following actions will result in immediate termination and will forfeit any right to draw from unemployment relief: 1. Harassment of fellow employees or customers 2. Intentional Destruction of Company Assets 3. Wrongful changing of company records 4. Failure to show up to work without any prior notice 5. Refusing a drug or alcohol test 6. Showing up to work intoxicated Dress Code All employees must represent the company in a positive manner. All attire must reflect this. Any manager at Opportunity Incorporated has the right to disapprove any inappropriate clothing. Sales People must wear the following:  Formal Business Attire (dress shirt, dress slacks/ skirt, tie, formal shoes)  No visible tattoos or piercings (except one piercing per ear for women)  No outlandish hairstyles Technicians may wear the following semi-casual attire:  Company T-Shirt  Jeans (no holes)  Tennis Shoes  No visible tattoos or piercings (except one piercing per ear for women)  Hair must be tied back during work Payment Our sales team will be paid on commission. They will receive a base salary of $30,000, but a large part of their salary will be made on commission so that they will have an incentive to work hard. They will make 5% commission on every sale. The staff of electricians will make $20 per hour, and will be expected to work 40 hours per week. Overtime pay will be $30 per hour for electricians. Our founders will receive no salary when the business first starts so that the business can survive. In the second year of business, the CEO will

make $30,000 per year, and the other five founders will make $25,000 annually.

Benefits Employee benefits will make up 23% of employee pay. This will include health care, dental care, and retirement plan. The retirement plan will be a 401 (k) where Opportunity Incorporated matches the employee contribution up to 3%. This plan will become vested after remaining with the company for six months. To keep employee’s satisfied, employee awards will be given out at the end of every month based on monthly performance. Also birthdays will be celebrated once a month with a birthday lunch break celebration. Also team building activities will help to unify the team during monthly team meetings. All employees will receive two weeks of paid vacation time. They will also receive 40 hours of sick leave.

Management Plan Key Employees Opportunity Inc. includes six major employees who are the founders and core of running this business: Alex Orr(CEO), Hannah Liu(CMO), Josh Simpkins (COO), Brandon Ravenell(HR), Warwick Jones(CTO) and Alice Ye (CFO). Each has high qualifications for their role in this business. Alex Orr, the Chief Executive Officer, has is a very well-rounded person when it comes to experience in the business world. He has won many awards for marketing, computer aided drafting, drafting design, and accounting. This shows his qualification and expertise in various business subjects. Alex has also had a lot of job experience. He has worked for OCI Construction LLC and Alley Auction Company Inc. Alex’s leadership traits show in his participation in various extracurricular activities such as DECA, Maryville High School Bicycle Club President, STAR Mentor, and Speaker’s Bureau. Not only that, but Alex has also volunteered as an auctioneer for MHS Band fund raiser and Habitat for Humanity. Alex Orr’s key strength is his leadership ability. He is able to get his employees to cooperate and accomplish goals. Not only that, but Alex also is a great listener and advisor. He is able to take other ideas and figure out what is best for the company, customers, and employees. Hannah Liu, the Chief Marketing Officer, has participated in All-West Orchestra for two years. She has received awards for being the Honorable Mention Best Delegation in the Model United Nations Conference at Rhodes College in 2009 and Open Poetry Contest Semi-finalist in the National Poetry.com International in 2008. Hannah has volunteered at Leukemia & Lymphoma Society and Food Bank. She has also received experience through Model United Nations Conferences in Rhodes College and Vanderbilt University, Mid-South Leadership Conference, and National Junior Classical League Latin Convention. She also is active in many extracurricular activities like Phi Sigma sorority and Student Council. Hannah is a very involved and outgoing person which can be shown in her involvement in the community and exhibits her qualified skills as Chief Marketing Officer.

Hannah’s strengths are that she is a very social and people oriented person. She is great at talking to and meeting people, which is one of the main strengths that allow her to be highly qualified for her role.

Josh Simpkins, our Chief Operations Officer, has been awarded membership into the Omega Society, JROTC Senior Instructor Recommendation, Student of the Month, and sophomore Academic Honors Curriculum. He has plenty of job experience through lawn mowing. Josh volunteered in Boy Scouts of America by being a Senior Patrol Leader, in Tae Kwon Do by being a Black Belt Instructor, and in Church missions. On top of this, Josh has participated in National Honor Society, JROTC Rifle Team, and Track Team Distance Runner in Ooltewah High School. Josh has many strengths that allow his to be eligible for the role of Chief Operations Officer. He is very hard-working and social. He works fine with both people and technology. This allows him to be ideal for the detailed operations and production processes he will needed to oversee and command. Brandon Ravenell, the Human Resources Manager, has gained leadership experience through being Chief Operating Officer and Chief Technology Officer for Hume-Fogg’s business team in the Youth About Business Program, and being a Member of Mt. Zion’s Teen Experience. Brandon has also gained experience through being in the Tech Crew for Battle of the Bands. He has also received the World History Honors Award and membership into National Junior Honors Society. Our Human Resources manager has volunteered in places like Teen Experience, Red Cross, and Track Meets for The Blind. Brandon has also been involved in Fellowship of Christian Athletes, African American Studies Club, Hume-Fogg Track and Field Team, and the HumeFogg Tech Crew. The strengths of Brandon Ravenell that caused him to be chosen as our Human Resources manager are his great sense of responsibility, empathy, and understanding. These qualities give him the ability to be a great Human Resource manager. Brandon would be able to determine what would be best for our employees. He also is able to think ahead and keep our company from lawsuits and being sued.

Warwick Jones was chosen to be the Chief Technology Officer of Opportunity Inc. Warwick has had a great deal of job experience. He has worked at Ruby Falls as a tour guide who was responsible for the oral presentation and logistical coordination. Additionally, he has also worked for McCallie High School as the bookstore employee and at Camp Vesper point as a work crew member responsible for coordinating meal service, cabin cleaning, minor repairs around the camp grounds, and various moving and maintenance tasks. In addition Warwick also partook in various sports clubs at McCallie High School. Warwick’s strengths are his ability to work and develop technology. His strengths will help us in building and expanding the product. Not only that but Warwick strengths will also expand the company by finding new, advanced and innovative technology that could further develop the Guardian. Alice Ye was selected to be the Chief Financial Officer of Opportunity Inc. She has had experience working as a counselor at Girl Scout Day Camp and a Junior Counselor at TRIAD Autism Camp. Alice has won numerous awards like 1st Place in Accounting I Tennessee FBLA Conference, Junior Girl Scout Bronze Award, and Cadet Girl Scout Silver Award. She also partakes in Girl Scouts, IB Programs, Student Council, FBLA, and Mu Alpha Theta clubs in her school. She is also skilled and proficient in Internet, Microsoft Office suite, Adobe Photoshop/Illustrator, Maya, PHP Web Development, and MySQL. Alice Ye has major strengths in math and technology. Both strengths will benefit her a lot when working on financials through Excel and Financial Programs. This allows her to be highly qualified for the position of Chief Financial Officer. Marketing Compensation and Incentives During the first year of running Opportunity Inc. none of the six founders will draw a salary. This way we are not going to take extra money from the business and all our net income will go toward paying off the starting costs of running a business. After the first year, we will slowly each take money from the business through our salaries. Our sales people will work on commissions of 5% of what they sell. All six of us, at the beginning will

contribute $20,000 to the business; therefore we will each equally own and control Opportunity Inc.

Organizational Plan Alex Orr, the CEO, will be involved in all aspects of the day-to-day operations within Opportunity Incorporated. Alex will see that the individual tasks of the Technology Officer, Finance Officer, Marketing Officer, Operations Officer, Human Resource Officer, and those of all the other employees are carried out in a quality manner. The Marketing Officer, Hannah Liu, will carry a major role in the company. By 2013, she will control two hundred and ninety sales people across America. As the company grows, her daily role will change from being one of the company’s only salespeople to managing a nationwide team. The Operations Officer, Josh Simpkins, will work with the CEO and manage all the general procedures of the business. He will also monitor installations and customer satisfaction throughout the nation. As the company grows, his daily responsibilities will help to ensure that The Guardian retains the quality and integrity our business promises. The Finance Officer, Alice Ye, will see that The Guardian grows and produces a continual profit for the company. Her daily operations will include calculating payments and receipts, managing employee payroll, and accounting for all the other financial transactions in the business. The Technology Officer, Warwick Jones, will oversee the installation of The Guardian and develop the technology as time progresses. As the company develops, Warwick Jones will manage an increasing number of electricians and technology personnel who will help him in the development and modification of current and future products. The Human Resource Officer, Brandon Ravenell, will manage employee moral by improving the quality of the workplace and appropriately satisfying the employees’ needs. Brandon will develop and manage company tools such as employment applications, employee handbooks, codes of conduct, employee benefits, and employee job placement.

Organizational Charts (July 2009—July 2013)

Organizatio Orga

Organizatio Orga

Organizatio

Financial Plan The figures in this financial section are all based on the following assumption: •

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Predicted Sales is expected to be 185 units of the Guardians main package. The main package includes 1,200 RFID cards, 90 RFID scanners, 1 database and the installation fee. The unit price will be $40,000. We are going sell packages of 1,200 RFID cards for $2,058. The price of the product increases 3% each year to follow inflation.

Staffing The size of the staff of this company will increase every year to meet the demands of the sales projections. During the first year, there will be a total of 38 personnel – 6 executive officers, 4 sales people, and 28 electricians. The second year we expect to have 6 executive officers, 21 sales people, and 91 electricians. The third year we will have 6 executive officers, 52 sales people, and 174 electricians. The fourth year we will have 6 executive officers, 94 sales people, and 312 electricians. Then in the fifth year the staff size will be 514 employees – 6 executive, 118 sales people and 390 electricians. During the first year all 6 of the executives will take no pay, the sales will earn $30,000 with commissions, and the electricians will be paid $20 per hour. The next year the executives will begin to take a salary. The CEO will be paid $30,000 and the rest of the executives will earn $25,000. Every year the salaries will increase by 3%. Opportunity Inc. will set aside $6,000 for each employee for their benefits. We expect our benefit costs to increase 2% every year. We also expect to set aside 15% of each employee’s salary for payroll taxes. Expansion All of the sales projections of based on the assumption that Opportunity Inc. will keep expanding and increasing sales. By the fifth year we anticipate to have expanded our company to all of the continental United States except North and South Dakota. Financing

During the beginning Opportunity Inc. will be financed by $120,000 invested by the 6 owners and a $2,165,000 6-year loan from Los Alamos Bank at an interest rate of 9%.