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J.H. Reid – Management

A key objective of JHR is to be profitable early, while being nimble enough to grow rapidly and profitably as demand grows. Taking into account these objectives, as well as a desire to be good stewards with the resources of the corporation, JHR has developed a plan for a flexible management team that provides for what is needed when it is needed.

The president of JHR is Walter Albecker. Mr. Albecker has a degree in Business Administration from the University of Illinois, more than seven years of experience as a general contractor, ten years of experience with ServiceMaster Management Services, and is presently in the MBA program at the University of Illinois at Chicago (See A-4 for resume). Mr. Albecker has a proven track record in marketing and management, and will be responsible for the leadership and general management of JHR.

Board of Advisors

To assist Mr. Albecker in making strategic decisions, as well as providing counsel on the timing of bringing in other management level personnel, a Board of Advisors with great depth and experience has been chosen. In the beginning, members of the Board of Advisors will serve in that capacity on a voluntary basis. Others who will either serve on the start-up team, or serve JHR in a professional capacity will be compensated appropriately. Members of the Board of Advisors receive both financial and production reports, and will meet individually and as a group with Mr. Albecker. Members of The Board of Advisors and their backgrounds are listed below:

John McCallum retired as the Executive Director of the Stewards Foundation, where he served after a successful career in insurance sales. He has been a advisor to Walter Albecker for almost 20 years, and has seen the chair in development since the beginning.

Bruce Olson is an accountant with a Masters of Accounting Science from the University of Illinois at Urbana-Champaign. Mr. Olson will also serve on the Start-Up Team.

Gregory Yoo is a candidate form an MBA degree from UIC with concentrations in Strategic Management, Marketing, and Finance. Mr. Yoo developed all of the financial projections for this plan.

Dale Engelhardt, Vice President and General Manager of an ISO 9002 manufacturing plant, will briefly consult by reviewing the manufacturing processes at various points in the operating plan development. Mr. Engelhardt has contributed very valuable insights on the operations portion of this plan.

Rod Shrader is a Professor of Entrepreneurship at UIC, and has advised the company on this business plan.

Gerald Hills is the Chairman of the Department of Entrepreneurship at UIC, and has advised the company on this business plan.

Paul Michel, an attorney in private practice, has been a close friend of Mr. Albecker for almost 20 years, and has reviewed the corporate records of JHR.

Start-Up Team

The launch of The Chicago Lounge™ will be managed as a project. A critical path analysis of the launch using a Gant Chart on clearly shows that an intense effort and allocation of resources is required the beginning. The members of the start-up team and their backgrounds are listed below:

Bruce Olson is an accountant with a Masters of Accounting Science from the University of Illinois at Urbana-Champaign. Mr. Olson will take responsibility for setting up the financial controls for the business. In particular, he will develop a system for the accurate tracking of costs in the manufacturing and other segments, assisting in the selection of an accounting firm, review of the financial statements for 6 months to insure that items are being properly tracked, advising in certain purchasing decisions, setting systems for collections and payables, insuring that appropriate security measures are in place, and making other recommendations for matters related to finance. Mr. Olson will also make recommendations on future additions to the management team.

Jeff Tichelar is an incredibly talented individual — familiar with a wide variety of trades. Professionally, he has worked as a welder, maintenance engineer, auto/motorcycle/boat mechanic, carpenter, and commended church worker. Jeff made the first upholstered prototype of The Chicago Lounge™, developed special tooling for the lumbar support system, and has done such things as accompany Mr. Albecker to Elkhart Indiana to look at vacuum press machines for stuffing cushions into upholstery. Jeff also has an extraordinary network of people in a very wide range of skilled trades and businesses, and has recommended numerous people with expertise in fields directly related to the development of the chair. Jeff will be responsible for conceptual design and consulting of the jigs, fixtures, processes and plant layout.

Terry Borolov is a building engineer, with a background auto mechanics and construction. Mr. Borolov will assist in small projects to help get the manufacturing facility operating.

Roger Spraggs worked as a lead person and team leader in healthcare settings, and has had shop courses in woodworking. Mr. Spraggs has the ability to get many parts of a project complete. Mr. Spraggs will work as a production team leader evaluating work processes from an operators standpoint, and do orientation of first production workers.

Robert Kirkwood has worked in various production and service positions, and demonstrated an outstanding capacity for getting things done. Mr. Kirkwood will work as a production team leader evaluating work processes from an operator’s standpoint and determining productivity rates. Mr. Kirkwood may stay with the company beyond the start-up phase.

Additionally a UIC IVIBA intern will be employed to assist in establishing company policies, training procedures, human resource decisions, and implementing simple Enterprise Resource Planning and Sales Force Automation systems. It is possible that Gregory Yoo will serve in this capacity.

Reid Albecker is a computer consultant who has developed software for leading management consulting firms. Mr. Albecker will serve as an Information Technology consultant for implementing Enterprise Resource Planning and Sales Force Automation systems.

Some sales will be done by at least two independent marketing representatives. One will be on the West Coast, probably in California. Specific individuals are being considered, but as of this writing, nothing has been finalized.

Consulting Companies

Upholstery patterns will be developed by Ultimate Upholstery, the firm that did the upholstery on the fourth and fifth generation chairs. The upholster is a graduate of the Washburne Trade School Upholstery Program, and has substantial industry experience.

Specialized jigs and fixtures to insure consistent quality manufacturing without requiring highly skilled machine operators will be produced by Milocraft Sales & Service, a boat building company that does other specialized work.

Any construction work needed to prepare the manufacturing facility may be done by Fisher Construction.


Following the launch, day-to-day operations will be manageable for Walter Albecker with some outside support and an administrative assistant. In this early phase of JHR (Stages I – II), financial and cost accounting for the firm during this period will be performed by a consulting CPA who will be under contract and an administrative assistant will be hired to facilitate material purchasing, order processing, collections, and dispersions. The management organization for this corporation will evolve within the 3 stage operations plan guidelines, and with the consultation of the Board of Advisors.


Employment requirements for this business are itemized in the following table:

Monthly Volume Management Team Leader Prod. Workers
STAGE I 0-100 1 1 1
STAGE II 101-400 1+ 1 2-6
401-1000 2+ 2 6-11
STAGE III 1,001 -10,000 2-5 3-8 11-80

+ indicates at least one administrative assistant will assist management.

The operations performed in our manufacturing and assembly plant require basic assembly skills, which currently command a starting wage scale of $7.00 per hour. By structuring the design of the product and the facility to require only basic skills at a relatively low wage rate, we will match current competitor’s wage cost structures allowing us to remain reasonably competitive.

JHR intends to hire and maintain a motivated work force through open communications, real time feedback on the state of the business, and a customer focused work team environment. After initial training, the employees will be a part of the development of the company through team meetings, and a bonus program which rewards efficiency and quality improvements.

J.H. Reid Corporation
Table of Contents Appendices
1. Executive Summary
2. Business Overview
3. Marketing Plan
4. Risks
5. Operations Plan
6. Management
7. Financial Plan
8. Offering
Cost of Manufacturing
United States Patent
Manufacturing Process
Income Statement
Cash Flow Statement
Balance Sheet
Break Even Point
All information herein is confidential and belongs to J.H. Reid Corporation

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