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Airex – Executive Summary
The five founders of the enterprise have acquired personal expertise in their professional careers ranging from industrial and project management to information technology. This experience gives management an acute insight into the industrial environment which is required for the success of the new enterprise.
AIREX will require an initial capital investment of US$300,000 invested by the founders. It is important to mention that all the expenses and investments in the first year of operation will be absorbed by the shareholders’ capital and by positive cash flow. In addition, AIREX will pay dividends of 20% of the net income (after taxes) every year, starting in the second year.
Management’s goal is to have 10 clients by the end of the first year of operations. The client base will increase to 20, 30, 45 and 80 clients in the subsequent years. Consulting revenues will start in the second year and will represent approximately 11% of the total sales by the fifth year.
A summary of the main financial results for the first 5 years of operations is given in the following table:
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Total Sales [US$]||649,380||2,424,600||3,646,900||5,470,350||9,758,400|
|Net Income* [US$]||-40,313||219,016||276,290||472,900||979,358|
|Net Cash Balance [US$]||38,432||45,617||234,836||600,445||1,204,461|
|Operating Profit Margin||-6.2%||17.4%||14.6%||16.6%||19.3%|
*=Net Income after dividends
In support of the numbers above, interviews with large multinational companies have indicated the acceptance of the enterprise. Endorsement letters with their opinions can be found in the Annex 1.
1 AIREX = Advanced Industrial Residues Experts.
2 TOTAL SOLUTION® registered trademark.
|Table of Contents||Appendices|
|1. Executive Summary
2. Business Description
3. Products and Services
4. Marketing Plan
5. Operational Plan
6. Management and Organization
7. Capital Structure
8. Financial Projections
Letters of Reference
Resumes of Management
Detailed Cash Flow
|All information herein is confidential and belongs to AIREX.|