Technical Data Corporation Business Plan 1. Technical Data Corporation is in the computer hardware and plwn business. TDC is in the business of providing liable data in regards to the businesss income market. TDC is going to provide a web based service that will relay historical price data, price analysis, and market commentary on the day to day price variances. Currently the purchases of this information are not willing to pay high amounts technical data corporation business plan case solution access this information.
The purchases expect to get this information from their current equipment. Many of the competitors in this industry provide some of the same information, but all of them are not willing to provide this information on a up to date basis. The financial offer to the investor is the sale of twenty separate units.
Additionally, the stocks technical data corporation business plan case solution not have a registration statement for the securities and therefore cannot be transferred. The date of maturity for the note is December 15, Under the terms in the promissory note the company reserves the right to prepay, in whole or in part, the principal and interest due at any time without penalty.
Technical Data Corp. For expenses, TDC assumes it will only require two full-time professionals through the first year of the company and will add a full-time clerical employee as of April,daa part-time computer consultant in June, technical data corporation business plan case solution an additional full-time professional in January, These additions assume that revenues are meeting expectations.
TDC also makes expense assumptions based on the number of pages it will rent. Additional expense assumptions include allowance for travel and entertainment in relation to marketing the product to tecgnical clients and premium payments on a life insurance policy on the President of the company.
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The technical data corporation business plan case solution assumptions TDC makes are based on revenue expectations. These assumptions are very important because they drive the other assumptions. First, the company makes assumptions concerning customer sklution and how they will grow over time. These numbers start with an initial base of customers in April, and increase to as of year end It appears that the company has done extensive research in regards to the expenses it will incur as their customer base increases.
Components of Technical Data Corp Business Plan SWOT analysis
It is difficult to forecast revenues on a new product and will caase difficult to determine how many customers this product will attract. However, the company seems to have developed an attractive product offering that will solutuon useful to investors. Also, TDC has developed a good marketing strategy through an agreement with Telerate Systems that will allow the company to test market its products without incurring any expenses.
This agreement will also provide TDC with a convenient mode of advertising its products through current Telerate subscribers. As a result, the assumptions TDC has made in relation corporatioon revenues also seem reasonable. First, the general product sounds like an excellent opportunity. However, there is a major barrier to entry. Many existing competitors have already developed propriety hardware that many banks or trading firms may already have.
The second major consideration is the financials of the deal. Overall, the company technical data corporation business plan case solution be technical data corporation business plan case solution at a debt to equity ratio of 9 to daa. For a technology-related firm, this is core competencies customer service resume extremely high ratio and poses significant risks to equity holders.
Preliminary financials given in the case indicate the firm will be cash flow positive in its first three years of operations.
Structure of Technical Data Corp Business Plan SWOT analysis
However, the assumptions are somewhat aggressive. Overall, while the company has a great idea, its method of financing is far too aggressive for a technology-focused firm.
Jeff Parker should pursue this idea. Parker may have to consider some limiting constraints prior to starting his business.
First, he needs to evaluate whether now is the right time to start a business.]