The Center for Technology and Investment (“CTI”) is a company dedicated towards bringing technology investment to small rural businesses. The company was founded on the conviction that small rural businesses in rural areas are in great need of experienced and technological consulting, but don’t have enough revenue to hire large multinationals to do the work.
CTI will grow to be a new, innovative force in rural Oregon through innovative funding sources. These include grants and charitable contributions from the owner and individuals who want to help rural Oregon develop economically.
CTI’s management team consists of one individual, Bill Franklin. Bill Franklin, who has worked in Silicon Valley for more than 35 years, is an Electrical Engineer and the founder of Stanford Research Institute. Franklin is a world-renowned expert in technological advancement. He has been the owner of several businesses throughout his life, including two that were sold for profit.
CTI’’s services do not only serve rural Oregon. The business is likely to expand beyond Oregon if it expands. There are over 45,000 rural “mom and pop” businesses operating in the Western United States, and of these, a high percentage have little or no experience with high technology and know very little about seeking alternative funding sources.
This investment plan will help to define the business strategy as well as show that CTI is a viable investment for a $10,000 bank open line credit. This open line of credit is designed to begin with a loan of $10,000, and to help manage cash flow after the first month CTI is a going concern.
By Year 4, the Center for Technology and Investment will provide services to approximately 500 clients. These clients will include at least half of those who have purchased products and all the rest who have purchased services.
Below are some financial goals:
- Within the first year achieve a 25% contribution margin on books, software, academic materials, and other products.
- Keep cost of revenue on service to below 20%.
- 350% increase in net revenue between Month 1 and Month 12.
- Net revenue margin of 30% in Year 1, 35% by Year 2.
The Center for Technology and Investment was a nonprofit organization created to support rural small-business owners using technology more effectively. The company’s charter is based on evidence that many rural small business owners simply don’t have the resources or connections to use technology wisely. Our goal is to close that gap by training and educating small business owners on how to leverage technology and make the most of the resources available to them.
When all its clients achieve growth rates greater than 20%, the organization will have accomplished its mission.
1.3 Keys to Success
Here are some keys that will help you achieve success.
- Concentrate on the target market. Dig down to several layers of demographics.
- High detail planning and execution: Quarterly seminars must be thoroughly researched, costs accurately understood, and content kept both fresh and consistent.
- Retainer consultancy must remain affordable to rural business owners. The retainer consulting fee must be a small amount of any SBA or technology grant funding received by the business owner. CTI cannot be considered a broker for SBA funding or any other funding. It must only serve as a consultant who has the knowledge and experience to assist clients in obtaining high-level technology funding.
- Financials must be kept above the highest standards due to nonprofit status in a largely for-profit industry.