Business Proposal

Business Proposal
ECO 561
August 4, 2014

Business Proposal
Executive Summary
Smith-Highland Security is a startup security company founded by Steve Smith, an experienced former police sergeant and security company manager. Located in Duncanburg at its launch, the business will provide security guards, security audits, and referrals to equipment providers to commercial buildings, retail businesses, and, eventually special event venues and other clients. The business seeks to acquire capital from an eager investor and will expand to additional cities in Pennsylvania and beyond if successful.
In the current political climate, with increasing fears of terrorist activity, and the current economic climate, which promises an upswing in general and in outsourced services especially, this business is launching at the right time. The business will target large retail stores and building management companies first in order to establish a strong base of clients in Duncanburg.
Smith-Highland will grow its employee base of security guards carefully, based on client contracts, and use both full-time and part-time guards. The business expects respectable sales of in the first year, almost doubling by the end of the third year. Gross margins will be similar to the industry average, based on guard labor costs vs. billings. After the initial investment and launch, a lean first year, and the establishment of an office and training space in the second year, the business will be poised to expand through its own financing after three years. After the business is proved replicable in additional cities, the business may be sold to provide an exit for the initial investor and founders.

Smith-Highland Security will base its success on meeting the following objectives:
  1. Employ 25 full-time equivalent security guards by the end of the third year of operation
  2. Supply security guards to 15 buildings on a full-time basis by the end of the third year of...