Sample Operational Plan

1 Location Our sales operation will be located in Orange County, New York in or near the city of Newburgh. Its 2009 populating is 383,582 and its demographics closely match the Denver Colorado area where our major competitors are located. We did not choose Colorado specifically because our largest competitor, Service Magic has actually burned through the work force to the point of having to open offices in adjacent states. We have, and if necessary will continue, to recruit management talent from Colorado.

A 30 mile radius around Orange County, NY reaches Duchess, Ulster, Putnam, Sullivan, and Westchester counties. It touches New Jersey and Connecticut and is within 50 miles of Manhattan and Pennsylvania. The population in a 30 mile radius is estimated at 2,288,000 vs. the 3,000,000 within a 30 mile radius of Denver. The Orange County, New York area beautifully combines all the benefits of urban, suburban, and rural living with low traffic, low rent, and easy access to higher populated areas.

2 Facility As a web business we do not anticipate visitors. Our focus will be the happiness and productivity of our employees. Access, safety, parking, landscaping, light, local amenities, and overall feel will determine the space we choose.

There are dozens of available and suitable rental properties including retail, warehouse, flex and of course office space that we can choose from after funding. We have budgeted $14 per annual square foot with $5 maintenance and utilities. As of mid 2010 that would buy mid level class A office space. We are estimating $10 sqft for build out.

3 Operating Equipment Due to our focus on comfort and productivity; money will spent where it counts.

Furniture Training room and executive furniture will be used. Sales people will have large 6 X 6 desks/cubes and new, high end ergonomic chairs. Estimating $2,500 per person.

Computers New Dell Vostros with 2GB RAM and 20" monitors, new USB head sets, and leased copy/scan/fax machine. Estimating $1,000 per person.

Software Five9 sales operation software is Internet based and works with all major customer relation management (CRM) software. There are no phones with this software, you just plug the headset into the computer and log in on line. Estimating $225 per user, per month including long distance charges, plus $1,000 set up fee.

www.CapacityBusinessConsulting.com | 845.888.5486 | [email protected] A virtual PBX company will be used for non-telesales people to decrease costs.

Netsuite is a complete CRM and operations solution. It integrates with Five9 so a customer's information pops up on the computer screen as the call is coming in. It also integrates all accounting, finance and reporting functions. Estimated cost is $70 per user, per month with a $6,000 set up fee.

All can be ordered and set up within 30 days.

4 Suppliers and Vendors We have chosen a web based phone solution, Five9, that allows our sales people to simply plug a head set into their computer; and Netsuite, a compatible package including Customer Relation Management, Accounting, E-commerce, and payroll. Verify Protect (formerly AT'S) has always done the contractor back ground checks.

Five9 is the vendor for all phone and call reporting systems.

Five9 Virtual Call Center Suite combines the full range of outbound and inbound call center capabilities to service the maximum number of successful calls with the minimum number of agents. More calls mean more connections with your customers and more business transactions.

When running outbound campaigns, our Predictive Dialer efficiently automates your outbound phone calling. Instead of making one call at a time, the predictive dialer makes multiple calls simultaneously and ignores busy signals, answering and fax machines, and no answers. As a result, your agents will only connect with live contacts. And with the capability of assigning three to ten lines per agent, you can quickly boost productivity and profits.

For inbound sales operations, Five9 provides a wealth of features designed to make every interaction more meaningful, more predictable, and more profitable. With easy-to-use ACD and skills-based routing capabilities you can ensure that your callers reach the right agent at the right time, and our real-time reporting and quality monitoring tools will help you insure that your service goals are met or exceeded.

A fully hosted solution with rock-solid reliability, the Five9 Virtual Call Center (VCC) Suite enables you to execute several inbound and outbound campaigns at the same time. With agent scripting, quality monitoring, and management reports, our suite improves how you measure agent performance and track results. NetSuite is the industry's first and only Software-as-a-Service (SaaS) business software that supports your entire company—from accounting/enterprise resource planning (ERP) to customer relationship management (CRM) and Web capabilities—in a single, integrated and powerful business management software solution.

What makes NetSuite's SaaS solution different is that it's built around a single customer record, so sales, support, accounting, shipping and billing all use the same information for every interaction. And because NetSuite gives you vital business intelligence in real time, you can make better decisions faster.

VerifyProtect.com, a division of AT'S, Inc. (American Tenant Screen, Inc.), is a leading provider of integrated screening services for businesses in the markets they serve. They provide screening services globally to more than three thousand clients.

VerifyProtect.com empowers business owners, human resources professionals, hiring managers, and hospitals and medical facilities by providing a variety of customized employment background screening solutions, policy and procedure development and implementation services, and drug screening programs all of which can be integrated with various software platforms.

5 Personnel Plan With the exception of Sales Staff and their management, everything else is outsourced. Web Site, Phone Systems, Building Maintenance, Legal, Payroll, Benefits Administration, PC Maintenance, and some Accounting, will all be handled by vendors.

Sales Staff - We plan to ramp up by hiring and retaining sales people as quickly as we can. We are estimating 25 in the first year; adding an additional 20 each year for growth. They will be a one stop contact for our contractor members and will handle all sales, screening, technical assistance, and customer service. They will also handle any homeowner inquiries as they are leads for contractor sales. These broad responsibilities not only keep our customers happy by only having to talk to one person, but lower turnover by allowing people to do more than just make calls. Starting salary is $28,000. We anticipate good sales people averaging $45,000 in salary and bonus.

Sales Management - There will be one sales director promoted or hired for each 9 sales people. Starting salary is $45,000, estimated average is $58,000. The Sales Director will

www.CapacityBusinessConsulting.com | 845.888.5486 | [email protected] manage first few people.

Recruiter/HR - Due to the nature of turnover of sales people, we will hire a full time recruiter with the ability to handle general HR issues for up to $80,000.

Trainer/AHR - Due to the nature of turnover of sales people, we will hire a full time trainer for $60,000. This person can also assist in general HR duties.

Insurance Staff - Due to state licensing requirements, separate sales and service people will be hired. A producer will be hired in the second year when we have enough contractors to offer this service to. We estimate one sales person and one service person per $400,000 written premium. Producers will cost 40% of premium in salary and commissions. Service staff is $50,000.

Advertising Staff - One sales person will be hired in the second year when we have enough traffic to entice advertising sales. We anticipate sales being slow enough and maintenance of customers to be light enough for one producer to handle. Salary and commission is estimated at $30,000 with scheduled increases.

Bookkeeping - One bookkeeper will be hired and should suffice given the simple finances of our model. Estimating $45,000 with scheduled increases.

Developer - Our current web development contract expires in 2013. We anticipate renewing the contract with better terms or hiring a full time Drupal developer for web maintenance and development at a salary of $65,000 with scheduled increases.

Administrative - We have budgeted for one $28,000 administrative assistant per $3.5 million in revenue. Scheduled increases are anticipated.

Recruiting - We have budgeted to have an ad running 356 days a year. Also included are Omni profile checks on all serious candidates to determine if their personality type fits sales.

Benefits - Excellent benefits are a big draw for this type of work. We have budgeted 30% of salaries for benefits. This includes 100% company paid medical, dental, life, and disability. It also includes SS and FICA. Workers compensation is separately budgeted at the going rate of $0.27 per $1,000 of payroll for this type of clerical exposure.

6 General Operations The sales operation will be opened from 8:00AM to 9:00PM, 6 days a week. Shifts will be determined by success.

Cold calls will be targeted to one state at a time, to be determined by housing starts, remodeling index, and state economy.