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Description:
INTRODUCTION
The company is a four years old company mainly dealing with professional line IT products of brand companies and an excellent conduit for emerging technology product sales in international markets. Almost three fourth of the number of countries do not have access to such products. Customer base is primarily in USA & several developing & underdeveloped nations. The company resumed its first sales in June of 2006 and has been profitable last two years with annual growth rate of 30-40%. Last year revenue was over $1Mn.
Its currently losing opportunities of approximately $1.5Mn a month. Till date the company has been working with only smaller cash customers. Large size customers expect the company to provide flexible payment terms. This will lead to much larger contracts.
FUND UTILIZATION
Cash customers order size is between $3000- $50,000 (except a few). While with flexible payment terms, credit worthy customers are willing to place orders worth $150,000 to $300,000 per month per order. Payment terms requested by these customers are as follows:--
1. 10%-30% advance and balance when the goods are ready for shipment.
2. Purchase Order backed by confirmed Letter of Credit/BG from prime banks.
The company needs finance to support purchase of equipments upon receipt of the order (PO) from the customer. All POs are non cancelable. Customers are reputed companies in their area of business.
Regarding channelization of emerging technologies to international market, I have signed up an agreement with a startup company, who has a revolutionary product, to get them appropriate distributors in the international market I need financing to do the initial ground work to get the distributors lined for few countries.
GROWTH AND EXPANSION
The company is a preferred partner of IBM /Lenovo, Dell, HP, Toshiba, ASUS , Sony etc. It has similar relationship with these companies in abroad as well. THE COMPANY has added100% subsidiary companies in Hong Kong, UK, Netherlands, Ireland and Australia. These satellite offices help in outsourcing several different specifications, which are not available in our country and expand customer base. With the growth in customer base and volume sales, the company will need warehouses in few strategic locations in the globe. With the expansion of sales and technical team, the company will need permanent offices in key locations to address the global requirements. Due to the availability of inexpensive commercial real state, it will be appropriate to purchase few of them, rather than go on several years of lease. Currently the company is working with sales agents and contracted assistance in order to manage expenses. It has to recruit executives in the area of sales, logistics, engineering, HR and finance to manage subsequent growth of the company in a positive direction.
CUSTOMER BASE
1. System integrators and professional service providers
2. Corporate companies
3. Prime authorized distributors of CISCO, Netgear, Autodesk, Sony, etc
4. Authorized Distributors of general electronics like Samsung, LG, BOSE, etc.
5. Telecom & software companies.
ULTIMATE OBJECTIVES
Aim is to expand and build the business model into a multinational solution provider for IT projects including Green projects, worldwide.
- Ultimate global outlet for all branded IT hardware/software.
- Immediate conduit for the export of US based emerging technology and finally become their direct distributor, worldwide.
- Multinational tier level technical services support for new and existing IT products.
Myself, Electronics and communication engineer from India and had been in operations and international sales & marketing for over twenty two plus years career with companies like Oki Electric, AT&T, Lucent technologies, Alcatel and T-Mobile in middle to senior management. (bio attached)
I thank you for reviewing our proposal and looking forward to having your immediate response.