Key Strategic Concept Page 3

Precision Placement – 5/2011 2

TABLE OF CONTENTS

Key Strategic Concept ……………………………………………………………………………… Page 3

Executive Summary …………………………………………………………………………………. Page 4

Critical Events & Milestones Graphic ………………………………………………………..Page 5

Organizational Issues ………………………………………………………………………………. Page 5

Business Management Plan …………………………………………………………………….. Page 6

Market Feasibility & Viability …………………………………………………………………… Page 11

Marketing Implementation Plan ……………………………………………………………… Page 15

International Element……………………………………………………………………………….Page 16

Financial Plan ……………………………………………………………………………………………Page 16

Financing Sources & Form ………………………………………………………………………..Page 18

Critical Risks, Problems & Assumptions …………………………………………………….Page 19

References ………………………………………………………………………………………………. Page 20

Appendixes

Appendix A: Operational Cash Flows …………………………………………….Page 21

Appendix B: Capital Budget …………………………………………………………..Page 22

KEY STRATEGIC CONCEPT Precision Placement – 5/2011 3 The need to connect part-time workers and employers is large and growing. According to the January 2011 Employment Situation Report, by the U.S. Bureau of Labor Statistics, almost 36% of the American labor force are part-time employees1. As we move out of the recession more employers than ever before are hiring part-time workers as a way to bring employees on board to ease workloads without incurring the additional costs of healthcare and retirement. The existing job portals on the Internet allow part-time postings but they do not address the unique needs and concerns of this target market.

The Precision Placement job seeker would post a resume and they would fill out a skills and availability survey. They would also have the option of taking online skills assessments in software, accounting, law, typing, ethics, personality, critical thinking and other tests. These tests are not required but can help employers to filter through the potentially thousands of possibilities to find the applicants who meet their precise requirements.

Two-thirds of the part-time labor market is considered ‘non-economically part-time’ meaning that they prefer to work part-time and would elect to work part-time regardless of full-time employment options. This group of people, which numbers over 18 million in the US alone, will form the backbone of the Precision Placement customer base. Part- time workers have different concerns than full-time workers and need a job that will fit into their lives so questions like working hours and access to mass transit make the critical difference about whether or not they will take and keep a certain position. There are also non- economically part-time workers who will transition to the full-time market like students and parents of young children who will utilize the services of Precision Placement for the years they are working part-time and then transition to web portals that cater to the full-time work force.

Precision Placement investors will be securing a foothold in the lucrative Internet jobs marketplace in a niche that is virtually untapped. Precision will have multiple revenue streams from employers, job-seekers and advertisers. Our top-notch high energy team has the vision and enthusiasm to bring Precision Placement from inception to a global brand in under 5 years. The opportunity is clear and the time to seize it is now.

1 8.931 million people are economically part-time (those who want a full-time job but can’t get one); 18.184 million people are non-economically employed (those who choose to work part time for non-economic reasons including school, childcare, retirement or Social Security limits on earnings, etc.). Precision Placement – 5/2011 4

EXECUTIVE SUMMARY

Unlike other online jobs portals, Precision Placement targets the part-time labor marketplace. Part-time workers make up almost 36% of the US labor force and have specific needs that are different than full-time workers. The management team at Precision Placement understands the unique needs of this niche market and will address those needs with a searchable database of employers that can be filtered by the criteria that matter most to them. Similarly employers who are hiring part-time workers need to have a deeper understanding of their skill set and availability than they do with full-time workers whom they often expect to flex the rest of their life around the requirements of the job and are often more willing to train.

A web portal will be developed with a regional interface that will be launched on a city by city basis. Behind the portal there will be powerful filtering software and a robust database to handle the vast quantity of data and frequency of access to the site. This portal will be developed under the guidance of Precision’s CTO Buting Lui. Her background in business administration and visionary insights into the job portal marketplace make her the ideal person to bring the project in on time with a unique and incredibly user-friendly interface.

The portal will first be launched in Portland, OR to utilize the vast networks of the management team in the area. Through offering free posting via networking and targeted marketing the site will be populated with at least 200 jobs prior to launch. The launching of the portal will be accompanied by an intense media campaign and a free one month offer for subscribers and employers. The next cities targeted for expansion are Seattle and San Francisco. Within 5 years the service will be available in all medium and large cities in the US and internationally.

There is a need for this service and Precision Placement has the right mixture of skills, passion, insight and timing to capitalize on the opportunity and realize the potential. Precision Placement will make a positive social contribution while providing it’s investors with large returns short and long term.

CRITICAL EVENTS & MILESTONES GRAPHIC: Precision Placement – 5/2011 5

ORGANIZATIONAL ISSUES:

The company is named Precision Placement. The name reflects the precision with which our job seekers and employers are matched. Just as Google built their success on providing links that were filtered by multiple criteria to maximize the chances of the link being what the user was searching for Precision Placement will provide job seekers and employers with potential matches that are precisely matched to the criteria they specify.

Mission Statement:

Precision Placement filters job seekers and employers to bring together ideally suited candidates and positions; making our customers happy and successful in the long run.

Organizational Structure:

Precision Placement will be established as a corporation. The company will be a privately held corporation for the first several years while building its brand. This is also being done to avoid the costs associated with meeting SEC reporting requirements. It will have a corporate charter and by-laws. As an online business the design of the website and the database behind it will be the most expensive element of the initial roll out. As a corporation Precision will be able to offer stock as part of its compensation package to attract top talent. Compensating some of the staff with stock will reduce the amount of start-up capital that will be required and aid in attracting top talent. Precision Placement – 5/2011 6 Precision will face higher accounting/legal costs and higher taxes as a corporation than it would as a partnership. It will also be required to establish by-laws and a charter. Rapid expansion funded through operations are projected for the first seven years so profitability will be minimal until we have completed deployment in all of our target markets. Thus even though Precision’s investors will be subject to double taxation as a corporation it will not have any significant impact until the company reaches its maturity stage. Easy access to capital is key for Precisions success and the investors plan to go public after the revenues reach 5 million – which is projected to occur in the fifth year of operations. The additional capital raised through the IPO will allow Precision to complete their deployment more quickly than growing through operations alone therefore reaching the maturity phase of the business sooner and providing maximized returns to Precision’s investors.

BUSINESS MANAGEMENT PLAN:

Managerial Structure:

Our team will initially be composed of the six initial investors and additional team members will be brought on as additional skill sets are required and as needed based on growth. All team members will be experienced professionals who are well trained in their specific duties. These members will aim for exceptional customer satisfaction and reliable technical performance. Precision Placement will have the following departments: Administration & Finance; Sales/Marketing and Website Development & Maintenance.

The areas of responsibility for our management team are as follows:

 Chief Executive Officer: In charge of the businesses operation and performance. Also in charge of strategic planning for future growth. They will make major decisions for the corporation. The CEO will have at minimum a bachelor’s degree in business or something closely related. They will also have at minimum ten years of experience.

The CEO position will initially be filled by Claire Mbock who has more than 15 years of executive level experience in operations and sales and is experienced with international trade and Internet portal based businesses. Claire is fluent in French and will provide marketing materials and web content as needed in French. Initially the CEO will be compensated with a living stipend. After break-even is achieved this position will be a salary position at a competitive market rate to be determined by the board of directors. Precision Placement will have one CEO who will report to the Board of Directors.

 Chief Technology Officer: Manages technical issues the company might face. In charge of customer support employees and website technicians. Also responsible for research and development.

The CTO position will initially be filled by Buting Liu. Buting will utilize her cross-cultural perspective; project management and customer relationship management skills gained through Precision Placement – 5/2011 7 her business administration education and her visionary insights into labor market trends to spearhead the development of a jobs platform that will not only meet the needs of but will shape the part-time labor market. Buting is fluent in Mandarin and will provide marketing materials and web content as needed in Mandarin. Initially the CTO will be compensated with a living stipend. After break-even is achieved this position will be a salary position at a competitive market rate to be determined by the board of directors. Precision Placement will have one CTO who will report to the CEO.

 Chief Financial Officer: Responsible for financial control of the company. Also responsible for: locating funding sources; ensuring that the company is operated within the confines of the law and tax reporting. In charge of all accounting functions, administration and finance. Must have accounting or finance degree and relevant experience.

The CFO position will initially be filled by Meaghan Messer. Meaghan will draw both from her education in accounting and business administration from Portland State University but also from her years of experience in small business accounting and operations. Meaghan is fluent in Spanish and will provide marketing materials and web content as needed in Spanish. Initially the CFO will be compensated with a living stipend. After break-even is achieved this position will be a salary position at a competitive market rate to be determined by the board of directors. Precision Placement will have one CFO who will report to the CEO.

 Director of Sales & Marketing: In charge of sales and marketing. Responsible for brand management & marketing planning and implementation. Responsible for meeting sales goals. Develops expansion strategy.

The Director of Sales & Marketing position will initially be filled by Stefanie Scowden. Stefanie’s educational background in business administration and experience in sales and brand management will allow her design and administrate the aggressive and cutting edge sales and marketing strategy needed to gain market share rapidly and establish Precision Placement as the industry leader in the online tools for the part-time labor marketplace. Initially the Director of Sales & Marketing will be compensated with a living stipend. After break-even is achieved this position will be compensated with a mix of a salary base plus performance based commissions at a competitive market rate to be determined by the CEO. Precision Placement will have one Director of Sales & Marketing who will report to the CEO.

 Customer Support Team: Addresses customer’s questions and problems they might face while utilizing our service. Recognizes customer needs and reports opportunities for service improvement to technical and sales teams. Aims to make job search as hassle free as possible. Reports to CTO. Number of Customer support team members is relative to company size. In the early stages fewer team members will be needed and as the company grows more will be needed. Customer Support Team members will be hourly wage employees. Ashley Eichenberger will be the Customer Support team manager and will report to the CTO. Ashley has an extensive background in customer service and a deep commitment to quality customer service. She will ensure that Precision’s customers have an optimized experience while using the service and that any issues are rapidly addressed and resolved within the organization. Precision Placement – 5/2011 8 Each customer service team will have one manager and all managers will report to the CTO. One customer service team will be able to provide for the needs of all customers within the US. Additional teams will be added as needed during international expansion.

 Technical Team: In charge of initial development of website and regular maintenance and enhancements. Reports to CTO. Number of website team members is relative to company size and website needs. At the beginning during the initial development more technicians will be needed and then as the company gets up and running the number of developers will be decreased. Further down the line of the company the website may need to be redone so at that time more members for the website team would be hired. All Technical Team members must have a degree in computer science or relative experience. Team members will be hourly wage employees.

 Marketing & Sales Team: The marketing team is responsible for driving traffic to the website through sources like ads, search engines, online marketing, etc. The sales team works directly with local companies to gather job openings for job seekers. Both teams report to the Sales/Marketing Director. Number of members is relative to company size. Marketing and Sales team members will be hourly wage employees.

 Administration & Finance Team: Responsible for all bookkeeping, payroll, taxes, legal, HR and support functions. Reports to CFO. Number of team members is relative to company size. Administration and finance team will be hourly wage employees.

Projected Number of Staff During Start-Up Phase

Perio CEO CFO CTO Director of Web Design Mrkg & Admin, HR, Total d Sales/ Mktg & Maint Sales Finance Q1Y1 1* 1* 1* 1* 2 1* 7 Q2Y1 1 1 1 1 3 1 8 Q3Y1 1 1 1 1 2 1 1 8 Q4Y1 1 1 1 1 2 1 1 8 Q3Y2 1 1 1 1 1 2 2 9 Precision Placement – 5/2011 9

Q2Y3 1 1 1 1 1 3 3 11 *these positions are all held by owners initially, in addition one of the web team positions is held by an owner

Corporate Governance:

Our CEO will widely be responsible for the creation and implication of company policy. A board of directors will also be used to protect the best interests of the company’s shareholders. At start up the board of directors will be made up of company investors including the CEO as well as community volunteers. Once Precision Placement has grown and can afford to hire outside members for the board of directors it will. These paid members will be sought out for their experience in the field and their fresh views on company and insights into the marketplace.

Key Advisers and Supportive Services:

Precision placement can widely operate on its own however it will occasionally hire consultants. Precision placement will hire outside auditors annually to make sure all financial reporting is in order. A CPA will be used to advise on tax issues and to prepare the year-end taxes. At start up Precision will hire an attorney to establish the corporation and to be available to consult with about legal issues.

Societal Responsibility:

Because Precision Placement helps people find jobs who may otherwise be excluded from the labor market our business helps those individuals, their families and the communities in which they live.

In addition to our core activity of facilitating employment in our second year we will launch a new tab on our web portal that creates a listing of free or low cost training options in the community. A non-profit arm of our organization will be created and called Precision Training we will donate 1% of our corporate profits to paying for administration of this service and for program costs such as: paying instructors, renting facilities, providing scholarships to those who cannot afford training, community outreach, etc. We will encourage instructors to volunteer their time and commercial property owners to volunteer their training space as often as possible to minimize costs and maximize number of training offerings.

Production, Manufacturing or Operations:

Precision Placement has a customer service team who works hard to keep customers happy. They receive questions and concerns through the company call centers as well as through the website and the tech team. Unfavorable postings and/or ads can be “flagged” by site viewers such as other websites do (e.g. Facebook and Craigslist). The website will also have survey pop- ups and survey emails that will be sent regularly to gain feedback from users.

Precision Placement obtains revenue from job seekers, employers, as well as advertising. Employers pay for each job post they apply. Each Job post lasts for a six week period. The Precision Placement – 5/2011 10 expiration of job posts ensures that the website stays up to date and contains only current job postings. For each additional job post placed within the same month the employer gets a discounted rate up to 15 posts. This discount is deducted when the employer goes to pay for a new job post. Precision Placement also offers a promotion where every tenth post is free. Job seekers pay for a subscription to the website for a certain amount of time. In this time they can access our entire website including our skills testing. Lastly advertisers can advertise on our website for products and services that would be of interest to our clientele.

# of Posts 1 2 3 4 5 Charge Per Post $55 $53 $51 $49 $47

# of Posts 10 11 12 13 14 Charge Per Post FREE $37 $35 $33 $31

Length of 1 month 3 months 1 year Subscription Total charge $7.95 $20 $50

MARKET FEASIBILITY & VIABILITY:

Product/Process Identification:

Our target markets are students and other part time workers. This population is a critically underserved labor market who has unique needs and concerns that are different from the “nine to fivers”. Precision Placement pairs like-minded job-seekers and employers by very precise parameters. We meet the needs of: highly-skilled and educated workers; parents of young children; retired people; people looking for a second income; as well as people improving their skills through education or attending a training program and those employers who need them. The job-seeker who is looking for a part-time job can use our services to find the perfect Precision Placement – 5/2011 11 fit by using distance, skill and education analysis, wages and “green” ways of getting to work such as bicycling or public transportation.

Product Differentiation Strategy:

There are many staffing companies and websites but they do not allow the type of filtering that is so critical for our target market. We offer our services to a wide variety of part-time job- seekers and employers. Offering heavily customized services in regards to employment needs or desires paired with high quality customer service will greatly set us apart and ensure the success of Precision Placement.

Product The meaningful difference customers will see and want is our ability to offer the Differentiation tools to find precisely the right job. Competitors Variables Precision Monster.com Craigslist.com Snagajob.com Placement Service Type Jobs portal catering Job portal Online ad posting Job portal catering to part-time and listing. to hourly workers. workers & employers Functional Specialized filtering Resume and job Numerous and Hourly job listings Features tools, excellent posting, advice, varied ad posting Supplements to customer service, related info and categories. Many Basic Function free trials, testing, salary calculator. types of posts are assessments and free. analyses. Quality 24 hour customer Established Established Established Product Use – service available via successful successful successful Reliability and webchat or phone company company company Durability to address any issues. Commitment to customer satisfaction. Precision Placement – 5/2011 12

Market Identification and Segmentation Analysis Strategy:

The common needs of our job-seekers are: a reputable firm that has a need for their expertise, is conveniently located, has competitive wages and benefits, has working hours that fit with their schedule, may be environmentally conscious and is in need of a part-time (max 30 hours/wk) worker. The common needs of our employers are: for someone who is in need of part time work, lives nearby, possesses specific skills and work experience, and they may be in need of someone who is available during non-standard hours (example: only in the afternoon or one day a week).

Segmentation Our customers are in need of flexible work and they will want to buy (and keep Analysis buying) our service because understand their unique needs and cater to them. Target Markets Our Product Competitors Characteristics Precision Monster.com Craigslist.com Snagajob.com Placement Demographics People (initially in National service. International National service Location, Portland metro Focused primarily service with for people seeking Education area) who want on full time regional sites. Ads hourly part time work. workers. for jobs, furniture, employment. cars.. you name it! Economics Low or no income All Levels. All levels with a Low to middle Income students, the larger population income levels. middle and upper of low income income levels individuals. wanting specific job, low income people needing a second job. Psychological- Those who want Those seeking Those seeking Those seeking Sociological more experience employment or employees or employment or Precision Placement – 5/2011 13

Tastes for future job. employees and a employers with a employees that May not have full convenient way to limited budget. will work for an time or long term find it. hourly wage – employment. Less typically without job experience benefits. Often before. Highly short-term skilled with time employment. restrictions. Affluent with specific wants or needs.

Distribution Channel Strategy:

This service will be made available to customers online, through a web portal. Prospective customers will learn about our product through marketing and co-branding. The initial primary function of Precision Placement will be extensive marketing through various search engines and advertisements on related websites as well as any and all non-online advertising through tangible newspapers and magazines focusing on universities and industry specific publications. Of course our initial marketing decisions will be based on strict budgeting focusing on the most economical outlets for advertising. Channel conflicts may arise if we sacrifice our exclusivity and render our company generic by relating our services through overly popular websites like Craigslist, Facebook, Twitter, etc. Though it is yet to be determined the pros and cons of exclusivity.

Information will be provided on our website including basic pricing and memberships. We will accept all electronic forms of payment: credit card, pay-pal options, and echecks. We will extend net terms to larger firms not to exceed 30 days following satisfactory completion of credit application and screening. We will supply excellent customer service in order to create the perfect fit to satisfy both parties.

Distribution Our customer’s questions about how to buy and use our product will be Channel answered by website, email and by phone. Necessary Our Product Our Competitors Information and Monster.com Craigslist.com Snagajob.com Process How do When they need When they need When they need When they need Customers Decide work. work. work. work. to Buy? How is Obtained by Obtained by Obtained by Obtained by Information website. website. website. website. Obtained? Precision Placement – 5/2011 14

How do Purchase ads Purchase online Purchase online Purchase online Customers Buy? online for for employers. for employers. for employers. How is Service employers. Via Free for job Free for job Free for job Delivered? subscription for seekers. seekers. seekers. job seekers. How do Online Online Online Online Customers Use Service?

MARKETING IMPLEMENTATION PLAN:

Sales Tactics:

Precision Placement offers the service of matching employers and employees based on unique criteria. To use Precision’s site, both the employer and the job seeker must pay a fee. Job seekers must purchase a membership. The memberships range from 1 month to 1 year. Employers are not required to obtain a membership, but must pay on a per posting basis. Incentives are also offered for posting multiple jobs. Each time they post a job their next post will be two dollars off and money will be credited back. Customers with memberships also receive benefits like being able to look more in depth to what is posted. Another benefit to Precision’s site is that it allows members to flag anything they think might be suspicious or they think is inappropriate. This way customer service team members can go check into the flagged posts to see if there is any threat or inappropriate postings that compromise the professionalism and integrity of the service. Precision’s marketing strategy will be to initially populate the site by offering one month free for the first month after we launch. We will advertise both on the web and in local publications read by students, parents and retired people.

Service and Warranty Policies:

Precision Placement will have terms of use stating that you get no refund for posts which violate the posting parameters. When an employer pays for a post, we expect it to be legitimate, appropriate and in accordance with the restrictions in the terms agreement. When an employer posts a job opening, it will remain on the site for 6 weeks and then be terminated. Employers will have the option to terminate the post earlier if the position is filled or to renew the post if they are still seeking applicants. In the case that employers need to renew their post they will receive an email from the customer service team offering tips on using the site and writing effective job posts and they will be offered a free consultation on writing their next posting. Precision Placement – 5/2011 15 Ongoing Market Evaluation:

Precision Placement will e-mail surveys out to everyone who purchases a membership and when someone submits either a job opening or an application. Along with sending out surveys, links will be available on our website for users to give feedback. Since users are allowed to flag job posts and other suspicious items, issues will be coded for tracking and follow up, providing Precision with instant feedback and reporting. Also, external consultants will be hired periodically to evaluate aspects of the service for optimization and best practices. With these evaluations Precision will be able to rapidly address customer needs and concerns and maximize their experience of the service.

INTERNATIONAL ELEMENT:

Within the first year the content on the website will be available in English and Spanish. The call center’s staff will all be fluent in English and initially at least one Spanish speaker will be on staff at all times. As Precision Placement expands into other markets it will continue to assess the language fluency of potential job seekers and employers. Optional languages will continue to be added on the website and the required languages in our call center will be adjusted to meet the needs of the clientele. Eventually Precision will offer services in major cities in other countries such as Quebec, Milan, Paris and Hong Kong. Each time service is launched in a new city content will be provided in their native language.

FINANCIAL PLAN:

Capital Budgeting Needs:

Precision Placement will start with an initial owner investment of $15,000 USD each for a total of $90,000 USD. A small business loan will also be obtained in the amount of $50,000 USD for total inital start-up capital of $140,000 USD. As a web based company the primary initial cost will be the development of the website and backend database needed to run the service. Website development has been budgeted at $50,000. This includes human resources (programmers), initial web and data hosting charges, domain registration as well as any other product related costs. A stipend of $1,500 USD will be paid monthly to each of the 6 owners and will be replaced by a salary when the revenues of the company are sufficient to support salaries at a market rate. $162,000 USD will be used for the first 6 quarters to pay the 6 investors monthly stipends. Part of the stipend money will be paid through operations however stipends will continue until a full salary can be supported to protect the cash reserves of the company. Stipends will cease when salaries begin. The remaining initial capital will be used for marketing costs, business and legal documents, office supplies, insurance and a margin of safety to deal with unforeseen circumstances. Precision Placement – 5/2011 16 As a service business with many potential variable costs and potential delays in reaching break- even Precision has a large buffer of over 25%. Running out of cash is the number one reason that small businesses fail and Precision will protect its investors by having a larger than normal margin of safety.

Operational Cash Flows:

Entering the 3rd quarter of operations as a fully functioning job search website with a niche in the part-time labor market Precision Placements expects to have a minimum of:

 20 paid subscription clients and an additional 250 subscription clients on the one month free promotion 20% of the clients utilizing the free promotion are expected to sign up for a subscription.

 220 monthly paid job postings generating revenues of $11,500 USD. An additional 200 posts are projected under the one month free promotion. 20% of the companies using the free posting are expected to continue using the service.

 Significant revenues from advertising are not expected until traffic on the web portal reaches 30,000 hits. Initially all advertisements on the site will be done as an exchange of service with other companies and organizations who have complementary services. For example, universities and professional schools.

Revenues from postings and subscribers are expected to grow dramatically for the first five years with quarterly increases of more than 20%. Earnings from advertisements are expected to begin in the 2nd quarter of the 3rd year of operations after service is well established in Portland and Seattle. Revenues from advertising are projected to grow at a quarterly rate of 25% for the next 3 years.

Lump sum payments will be made in the 4th quarter of the second year and the first two quarters of the third year: resulting in the full repayment of the small business loan of $50,000 by the 2nd quarter of the 3rd year.

Aggregate Funding Needs:

Precision Placement will reach break-even in the first quarter of the second year of operations. $229,760 will be required to finance operations and capital costs through the break-even point. This funding will be provided through a mix of owner investment, bank financing and operating revenues.

Quarter Q1Y1 Q2Y1 Q3Y1 Q4Y1 Total Operations $ 0 $ 5,500 $ 14,550 $ 26,150 $ 46,200 Capital 69,100 41,500 31,500 27,000 169,100 Investment Financing 0 1,820 1,820 1,820 5,460 Subtotal: $ 69,100 $ 48,820 $ 47,870 $ 63,970 $ 229,760 Less: Revenues 0 36,000 50,400 60,480 146,880 Precision Placement – 5/2011 17

Total Funding $ 69,100 $ 12,820 ($ 2,530) $ 3,490 $ 82,880 Needed: Start-Up $ 70,900 $ 58,080 $ 60,610 $ 57,120 Capital Remaining

Contingencies and Cash Flow Sensitivities:

Because the primary value of the service provided by Precision Placement is connecting potential employees and employers the web portal must be populated with enough members of both groups to make paying to have access worthwhile. To achieve this, a free one month trial will be offered at the time of the service being launched. If after one month Precision does not have more than 250 job seekers registered and more than 300 job posts then it may be necessary to extend the free period and continue marketing efforts to bring more traffic and users to the site. In that case it could result in reduced revenues and increased advertising costs. To mitigate this possibility the owners will start networking with providers of complementary services prior to the launch and offer an exchange of advertising services to provide a large buzz when the site launches and minimize the time it takes to populate the site. Additionally, Precision will contact employers in the area who regularly post for part-time positions and offer them free posts so that their posts will be available online at the launch.

Financial Controls and Management Practices:

Strict and accurate accounting practices will be in place. Meetings with the entire investment team will be held bi-weekly the first 2 quarters to report all revenues and expenses and to report our progress toward achieving the targets outlined in the business plan. Stringent attention will be paid to the finances of Precision Placement to ensure success and anticipate any issues that may arise. In the 4th quarter of the first year Precision will be close to the break- even point and meetings will be held bi-monthly for the second and third year of operations and additionally as needed. Audits will be performed by an independent CPA prior to and in preparation for filing the corporate tax return.

The software being developed to manage the web portal and related database will produce reports on customer satisfaction and the nature of the issues that are being brought up by clients via the web and email surveys. The Customer Service Manager and the CTO will present these reports combined with client feedback being received at the call center to the investment team at the regular meetings mentioned above. If necessary goals will be adjusted or altered to take into account the feedback of our clientele. Every member of the investment team will hold all other members and all employees to the highest standards of excellence and customer service.

FINANCING SOURCES & FORM: Precision Placement – 5/2011 18

1. Capital Structure: Precision Placement will generate start-up capital funding from both investors and from a public bank. Six investors will invest $15,000 each to establish the company. A 10 year loan of $50,000 will be obtained from public bank with an annual interest rate of 8%. The loan will be repaid monthly until the third year of operations when large lump sum payments will be made quarterly in addition to the loan payment amounts. It is estimated that the loan will be completely repaid by the beginning of the third quarter of the third year of operations.

Precision Placement will be established as a privately held corporation with 10,000 shares. Those shares will be evenly divided among the six initial investors. Therefore, each initial share would have a value of $9 per share and each investor would be issued 1,666 shares. In the event of an additional investor joining the company a new share price would be voted on by a 2/3rds majority of the current stockholders and additional shares would be issued to reflect the investment of the new investor and revise the ownership percentages.

2. Long-term Financial Strategy: Precision Placement will launch their service in Portland, OR and will be operating in Portland, Seattle and San Francisco by the end of the third year of operations. Growth will continue at a much faster pace in the fourth and fifth years of operations. By the end of the fourth year Precision will have a web portal customized for each of the major cities in the United States. In the fifth year expansion will be made into mid-size cities in the US and large cities internationally. Revenues are projected to reach 5 million at the end of the fifth year. At that time a vote will be made by all investors and an IPO is likely.

CRITICAL RISKS, PROBLEMS & ASSUMPTIONS:

One of the main risks Precision Placement would face is related to service reliability. Even brief outages create an opportunity for competitors to lure away customers and radically reduce customer satisfaction. Since all of Precision’s information is located on servers connected to the Internet, hacking and viruses would be a big concern. Multiple solutions would be used to mitigate this risk. We would utilize mirrored hosting, so that the site would be hosted on multiple servers and we could redirect traffic without impacting the users experience in the case of outage or denial of service attacks. Firewalls and other security measures would be implemented, maintained and upgraded by web staff.

The second major risk faced by Precision Placement is competition. Time to market is critical for success. Precision must establish itself quickly as the dominant brand in the part-time jobs market before one of the existing jobs portals takes a stronger position in the part-time marketplace and fills the void currently there. If that happens Precision would have to compete directly to achieve market share. However, Precision still has the competitive advantages of: having a regional customer interface and being able to more rapidly adjust its model to meet the needs of this unique customer base.

The economy can also impact the success of Precision. During bad economic times part time work is more common. As the unemployment rate drops it is likely the number of people Precision Placement – 5/2011 19 working part-time will also drop. However, research shows that in developed countries there is an overall upward trend in the number of people employed part time and a particular spike when economic activity is low.2 Based on these trends it is forecasted that growth rates may decline as the economy improves. If this is the case Precision will launch a new area of their service catering to consultants and freelancers. Both are rapidly growing sectors of the labor market and customers who would maintain long term memberships to connect with potential clients.

Another risk to consider is the potential for lawsuits. If either a job seeker or an employer sustain damages as a result of a connection found through Precision they could file a lawsuit. Careful wording of the terms of service will need to be made and clear disclaimers of Precisions ability to or claim to verify legitimacy or fitness of either party.

Precision’s management team will make every effort to recognize and mitigate risks facing the company. However, in the unlikely event that they are unsuccessful and the company must be liquidated every effort will be made to protect the interests of the investors. First an attempt would be made to sell the business as a whole to a competitor or other investor. Second an attempt would be made to sell off the assets of the company – the most significant being the proprietary software and the customer base. Either of these options would likely net proceeds far greater than the initial $90,000 investment made by the investors.

REFERENCES:

International Labor Office. (2011). Global Employment Trends 2011: The Challenge of a Jobs Recovery. Geneva, Switzerland: ILO-Geneva.

Bureau of Labor Statistics. (2011). Employment Situation Summary. Washington, DC

Llargi. (2011). The Automatic Earth: Only 47% of Working Age Americans Have Full Time Jobs. Retrieved from http://www.businessinsider.com/real-employment-rate-47-percent- 2011-1

Knowledge@Wharton. (2007). Career Crisis: Monster.com Has Choices to Make as It Approaches ‘Middle Age’. Retrieved from http://knowledge.wharton.upenn.edu/article.cfm?articleid=1817

Google Finance. (2011). Profile of Monster.com. Retrieved from http://www.google.com/finance?cid=11734293

Facebook. (2011). Statistics. Retrieved from http://www.facebook.com/press/info.php? statistics

2 Based on part-time employment trends analysis. Page 32 of Global Environmental Trends 2011 report issued by the International Labor Office Precision Placement – 5/2011 20