2.0 Executive Summary
The summary includes a concise,
but complete, description of the market, the market's need, how we propose to
satisfy that need and the projected financial rewards.
2.1 Mission Statement
To provide the highest quality components and products in the industry.
2.2 The Enterprise
HiLight Inc. has been in the electrical components business for 2 years.
We are a privately held C corporation with the objective of becoming a major participant in
the components industry, targeting small to medium size businesses.
We have been profitable in each of our first
two years of operation and have established a strong relationship with numerous
distributors throughout the southwestern U.S.
We have established a work ethic and pride in
providing high quality product at very competitive prices.
We have been quite successful at this by
concentrating on a relatively small number of component types. Financial
results for the last two years and the projected third year are as follows:
| Financial History | 2003 | 2004 | 2005 | (projected) |
|---|
| Revenue | $200,000 | $350,000 | $690,000 |
| Profit Before Tax | $5,000 | $57,000 | $121,000 |
| PBT % | 3% | 16% | 17% |
| Net Profit | $4,000 | $40,000 | $85,000 |
After ten months of operation, we can project
this year's revenues and PBT for the component business to double the prior
year results. For the coming year we are
expanding our product line to include an assembled product called
Smart-Lite. This will be our first
effort at assembling a product. While this process is new to us, the potential
rewards are great, allowing us to price the product in the $70 - $80 range
versus component prices that are in the less than $1.00 range.
We are projecting the first year revenue for
this product to exceed the third year revenue for our components products.
Our current facilities, located at 12300 East 7th St., Austin, Tx
are expected to be adequate for the first year of production.
2.3 Personnel
Additional manufacturing personnel will be required for
the components operation. Mostly new personnel will be required for the
assembly operation. The three year projection for personnel is shown
below.
| Personnel Projection | Yr 1 | Yr 2 | Yr 3 |
|---|
| Total Personnel | 63 | 79 | 99 |
John Smith is HiLight Inc's founder, president and CEO.
He also has 100% ownership of the business.
He was educated at Andersen University, receiving B.S. and M.S.
degrees in electrical engineering.
He previously held positions with Jacobsen Engineering as a development engineer
and Apex Electrical as the general manager.
Mr. Smith left Apex in late 1987 to found HiLight Inc.
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