SERS Engineers

Start Up Business Plan

January 2008

Contact Information:

FA

_____

_____

____

_____

technobo@technobookstore.com

    This document contains confidential information. It is not for re-distribution.It is disclosed to you for informational purposes only. Its contents shall remain the property     of SERS Engineers and shall be returned to SERS Engineers when requested.

This is a business plan and does not imply an offering of securities.

Table of Contents

Executive Summary 1

Company Summary 3

Services 5

Market Analysis Summary 5

Strategy & Implementation Summary .7

Management Summary ..11

Financial Summary .12

Appendix Resume Founder.16

1. Executive Summary

1.0 Executive Summary

           Sers Engineers will be formed as a consulting firm specializing in engineering services, to be provided nationwide. The business is to be established in Saginaw,               MI. The founder of the firm, Dr.____, is a professional engineer with twenty years of progressive and responsible experience.

    Initial start up costs amount to $25,600 is required. 20% equity is being offered, through this proposal, to investors in exchange for financial backup of $80,000 per year     during the first crucial four years. The company is projected to break even by the 9^th quarter of operations (1^st quarter of third year in business) as indicated in sales         table and graph shown below.

Year	Sales($)	Profits($)	Sales/Profit(%)
2008	12,000	(68,200)	--
2009	94,000	(4,700)	(-5%)
2010	184,000	+26,800	+15%
2011	565,000	+255,900	+45%
2012	970,000	+456,600	+47%
2013	1,070,000	+540,000	+51%

    The firm will focus in providing Structural, Civil, and Geotechnical engineering services, as well as research and development in response to the various Government     grant SBIR programs (Small Business Innovation Research).

1.1 Objectives

1. Achieve reasonable market penetration and sales/Marketing response by the end of first year.
2. Break even by end of second year.
3. Achieve Sales of at least $1,000,000 by fifth year .

1.2 Mission

            SERS Engineers is focused on providing Structural, Civil Engineering Services, and research and development. We specialize in:

    Low-rise building type projects including; residential, commercial grocery and retail stores, educational and health care facilities, financial institutions, light industrial     buildings and warehouses.

    Light roads and highways structures including bridges and culvert boxes.

    Specialty structures such as shoring devices, trench shield devices, concrete shells, above ground storage tanks, ...

Geotechnical engineering services.

Quality control and assurance in construction projects

Research and development in response to the continual government demand for SBIR and STTR programs.

Conventional and Specialty concrete materials consultation on use, specification, mix design and proportioning including fiber reinforced concrete and latex modified concrete.

Our Mission is to be a national leader, accomplishing our customer objectives in a timely and economical manner maintaining all budgets and schedules, and         protecting the safety and integrity of the projects.

We are able to accomplish our objectives by emphasizing leading-edge computer based design automation into our approach as well as successful innovations from proven national R&D recommendations, and by staying current of all the national trends within the Structural and Civil engineering disciplines.

1.3 Keys to Success

1. Provide professional quality services on time and on budget.
2. Develop a follow-up strategy to gauge performance with all clients.
3. Implement and maintain a quality control and assurance policy.

2. Company Summary

2.0 Company Summary

SERS Engineers is being formed in Saginaw, Michigan, by Dr. ____ in response to the following market conditions:

Start-up opportunities exist, nationally, in the Construction A/E services market due to a booming construction market.

The need for use of efficient production methods by incorporating computer aided design automation, as well as research results from national R&D recommendations.

The advantages of our approach are:

Economical pricing,

Better quality,

Implementing leading edge design automation technology.

2.1 Company Ownership

SERS Engineers will be created as a limited liability company. 80% of The company will be owned by its founder Dr. ___ ____. __% equity is being offered, through this proposal, to investors in exchange for financial backup of _____ per year during the first crucial four years.

2.2 Start-up Summary

Our start-up expenses amount to $25,600 during the first quarter of operation, which allows for initial legal expenses, licenses, permits, stationary, specialty software, office equipment, and furniture, payroll, and utilities. In addition to these start-up costs, ____ will contribute ____ worth of existing personal assets (Computer Equipments, Technical References (books), Vehicles, & Miscellaneous furniture towards the overall start-up of the business.

2.3 Company Locations and Facilities

We will establish an office in Saginaw, MI. The office space is estimated to be 1000 square feet. At startup there will be two personnel in the office. By the end of the second year and fourth years there will be three and four employees, respectively. We expect to outgrow this space by the end of the seventh year of operation. We will be installing a dedicated fax line as well as a high-speed Internet connection. An interactive website will also be developed which will serve as a marketing tool. The domain name of "sersengineers.com" is being reserved.

3. Services

3.0 Services, Short and Intermediate Ranges

SERS Engineers offers structural & Civil engineering services to all parties involved in the construction industry. As well as research and development in the SBIR/STTR government research programs. We provide our customers the best reliable solutions:

Offers the best price in the market;

Is the most technically advanced;

Saves our clients time and money;

Flexibility to easily accommodate design changes.

The envisioned major types of services offered by the company at startup would be as shown in the table

Service Label/Abreviation	Service Type & Description
STR.	Structural Engineering Services
GEO.	Geotechnical Engineering Services
CONS. QC/QA	Constrcution Quality assurance & Control
SITE DEV.	Civil Engineering Site Development Services
TRANS.	Transportation Engineering Services
SBIR I	Research & Development Grant Projects Phase I
SBIR II	Research & Development Grant Projects Phase II

Among our initial services bases are:

Commercial & Residential Building Design.

Light Industrial Building Design.

Roads and Highways Structures Design.

Specialty Shoring Devices Design.

Specialty Concrete-Shell type structure design.

Specialty Above Ground Storage Structures.

Project in progress support:

Code Officials Replies.

Construction Support.

Situation Evaluation.

Shop Drawings Reviews.

Preparation of Technical Reports.

Prototype Development & Design Automation for Volume Clients with Repetitive Projects.

Conventional & Specialty Concrete Materials Consultation.

Geotechnical Engineering Services

Transportation Engineering Services

Construction Quality assurance and control.

SBIR/STTR research programs

3.1 Services, Long Term Range

In the long range, we envision SERS Engineers expanding the above services internationally and engaged in manufacturing of infrastructure related type of innovative new products as well as involved in construction management and real estate development. However, for the current time and in the near future, all our efforts are focused on our short and intermediate range service goals, as outlined above.below:

4. Market Analysis Summary

4.0 Market Analysis Summary

SERS Engineers will focus on traditional Architect/Engineering (A/E) contracts. The owner will usually contract the A/E firm to perform planning and design services. These design services include preparation of construction documents (plans, specifications, estimates, ..).

Typically, these types of projects distribute total design fees amongst the professionals involved in accordance with the following guideline:

• Architecture Design (60%).
• Structural Design (10%).
• Mechanical Design (10%).
• Electrical Design (10%).
• Civil Design (10%).

Our most important clients will be established architectural/engineering firms who require engineering services, as well as contractors, and the different government agencies having current SBIR/STTR programs.

4.1 Market Segmentation

The market for engineering services may be summarized with the following groups:

1. Established Architectural and Engineering firms: Typically, the structural/civil portions of any building project involve a Prime Consultant who pre-selects their team members and promotes their strengths in a proposal call to prospective clients.
2. Contractors: Contractors usually require engineers to submit sealed alternatives for equivalents to construction details.
3. Townnship Governments: We will promote our services to the local governments.
4. Private Individuals: We will focus attention on homeowners who are renovating or contemplating an addition to their residence. We will also promote home inspections to those parties contemplating the purchase of a home.

The Potential Market Analysis Table, shown next, is based on percentages which each of these groups could contribute to the services offered. The Established Architectural/Engineering firms account for 64% of the potential market with the other participants claiming the balance in smaller proportions.

Potential Customers	2002	2003	2004	2005	2006
Architectural/Engineering Firms	64	64	64	64	64
Law Firms	7	7	7	7	7
Contractors	10	10	10	10	10
township Governments	7	7	7	7	7
Private Individuals	5	5	5	5	5
Realtors	5	5	5	5	5
others	2	2	2	2	2
Total	100	100	100	100	100

4.2 Competition and Buying Patterns

Pricing of projects and billing rates are in general variable. In consulting at this level, it is easier to be priced too low than too high. Clients and potential clients expect to pay substantial fees for the best quality professional advice. The nature of the billing, however, is sensitive. Clients are much more likely to be offended when a job starts at $20K and ends up at $30K because of overruns, than if the same job started at $30K or even $35K.

Clients rarely compare consultants directly, looking for two, or more, possible providers of a proposed project or job. Usually they follow word-of-mouth recommendations and either go for the job or not, rather than selecting from a menu of possible providers.

The most important element of general competition, by far, is what it takes to keep clients for repeat business. It is worth making huge concessions in any single project to maintain a client relationship that brings the client back for future projects.

5. Strategy and Implementation Summary

Sers Engineers will focus on the state of Michigan market initially, secondary we will focus on the geographically neighboring markets of Ohio, Indiana, Illinois, and Wisconsin. In a later phase our sales efforts will include the major high population states of the US, mainly, Texas, California. Florida, New York, and Pennsylvania. The target client is usually an Architect Manager.

5.2 Marketing Strategy

5.2.1 Pricing Strategy

SERS Engineers procedures are highly efficient. Above all, we are determined to bring our customers the best combination of quality and price available in the market.

Most consulting work is billed on an hourly basis to pre-determined levels dictated by project schedule milestones. We have assigned a rate of $95/hour for basic consulting services and $55/hour for drafting services.

5.3 Sales Strategy

Success in a consulting market is focused on client service and typically translates into repeat business. We will avoid the pitfall of buying a project, only to find the scope of work far exceeds projected levels.

When a potential client questions the cost of a project, we explain the benefits and refer to our proposal which clearly outlines the tasks to be performed. If the budget is for less money, then we must offer less service. Billing rates are not negotiated.

5.3.1 Sales Forecast

We expect sales to be slow during the first year of operation and revenues will be limited while a generic quality management plan is formulated and basic office administration tasks are completed.

Early in the third year of operations, we plan to break even as sales reach $184,000 by end of third year. We expect to reach $1 Million in sales by end of fifth year of operation. Details of sales forecasts, operating expenses and profits are shown in the following figures and table.

Sales Forecast
Gross Sales ($1000)	FY 2008	FY 2009	FY 2010	FY 2011	FY20012	FY2013
STR	6	20	45	80	120	160
GEO. /CONS.	3	7	9	20	40	60
SITE DEV./TRANS/	3	7	10	20	40	80
SBIR I	--	60	120	120	120	12
SBIR II	--	--	--	325	650	650
Total Sales ($1000)	12	94	184	565	970	1070
Direct Cost of Sales ($1000)	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013
STR	0.9	3.0	6.75	12	18	24
GEO. /CONS.	0.45	1.4	1.8	4	8	6
SITE DEV./TRANS/	0.45	1.4	2	4	8	6
SBIR I	--	18	36	36	36	36
SBIR II	---	--	--	97.5	195	195
Subtotal Direct Cost of Sales ($1000)	1.8	23.8	46.6	153.5	265	267
GROSS MARGIN ($1000)	10.2	70.2	137.5	411.5	705	803
GROSS MARGIN (% OF SALES)	85%	75%	75%	73%	73%	75%

Operating Expenses & Profit (Loss)
Expenses ($1000)	FY 2008	FY 2009	FY 2010	FY 2011	FY20012	FY2013
Payroll	50	50	80	80	120	120
Rent	7	7	7.5	7.5	8	8
Utilities	1.2	1.2	1.3	1.3	1.5	1.5
Phone/Fax/Internet	1.2	1.2	1.3	1.3	1.5	1.5
Insurance	1	1	1	1	1.2	1.2
Marketing/Sales	5	5	5	5	10	10
Software purchases	2.5	2	--	--	5	5
Payroll Tax	4	4	6.4	6.4	9.6	9.6
New Office Equip.	2	--	--	3	4	4
Automobile Expnses	2	2	2	3	4	4
Professional Fees	2.5	1.5	1.5	2.0	3	3
Tot. Operating Expenses ($1000)	78.4	74.9	106	110.5	167.8	167.8
Profit (loss) Before Taxes ($1000)	(68.2)	(4.7)	+31.5	+301	+537.2	+635.2
Taxes Incurred (15%)	--	--	4.73	45.2	80.6	95.3
Net profit or (Loss) ($1000)	(68.2)	(4.7)	+26.8	+255.9	+456.6	+540
Profit/Sales Ratio(%)	--	(-5%)	+15%	+45%	+47%	+51%

6. Management Summary

6.0 Management Summary

SERS Engineers will initially have two employees: ____ as general manager will be responsible for all daily operations in the firm, and a sales/administrative personnel who will be responsible for administrative and sales effort. Beginning of the third year an engineer in training will be brought on board and will assist with production loads. In the fifth year a second production engineer will be hired.

6.1 Management Team

Education:

Michigan State University

East Lansing, Michigan

Ph.D. & M.S. Civil/Structural Engineering

Purdue University

West Lafayette, Indiana

B.Sc. Civil/Structural Engineering

Professional Registration:

Registered Professional

Engineer in the states of:

Michigan

Oklahoma

Currently pursuing registration with other states

Short Biography:

______ will serve as General Manager of SERS Engineers. Dr. ____ graduated from Purdue University in 1986. He then joined the graduate school of Michigan State University where he served as a research assistant on various projects related to concrete and buildings, and was awarded the doctorate degree in 1992. Since then he has held full time positions with A/E firms within the structural and civil disciplines, where he served as project engineer for various projects, and developed computer software for different structural engineering applications.

Full resume of Dr. _____ is attached herein.

Responsibilities:

____ ___, has more than fifteen years of engineering experience. ____ will be initially responsible for soliciting clients, marketing, promotion, and all daily aspects of running the business with the help of an Administrative/Sales assistant (to be hired, first month of operation).

6.2 Management Team Gaps

SERS Engineers will require administrative support to ensure clients are billed on a timely basis. We will be looking to an outside source for ensuring the books are kept in order and up to date.

6.3 Personnel Plan

The following table summarizes our personnel expenditures for the first five years, with compensation increasing from $50K the first two years to $80K in the third and fourth and $120K in the fifth year.

Personnel Plan
	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013
Name or title	---	---	---	---	---	---
Other	---	---	---	---	---	---
Total People	2	2	3	3	4	4
Total Payroll	$50K	$50K	$80K	$80K	$120K	$120K

7. Financial Plan

7.0 Financial Plan

The financial plan which follows summarizes information regarding the following items:

Projected Profit and Loss, Projected Cash Flow, and Projected Balance Sheet.

FIVE-YEAR FINANCIAL REPORT SERS Engineers
This Financial Report covers the five years to the end of Dec 2012. It has been based on detailed monthly projections for the initial three years and quarterly projections for the following two years. The following table summarizes the PROJECTED BUSINESS/SALES PERFORMANCE:
Years to end Dec	2008	2009	2010	2011	2012
	Proj	Proj	Proj	Proj	Proj
	$000	$000	$000	$000	$000
Sales	12	94	184	565	970
Cost of sales	2	24	46	152	262
Gross margin	10	70	138	414	709
Total operating expenses	78	74	106	110	167
Income from operations	(68)	(4)	32	303	541
Other income, interest etc.	(4)	(2)	2	9	25
Net income before taxes	(72)	(6)	34	313	567
Taxes			5	47	85
Net income	(72)	(6)	29	266	482
Dividends declared
Transferred to reserves	(72)	(6)	29	266	482
For the first three years under review, sales should change by 1433% and projected net income before taxes for the third year is $34 000. By the fifth year, sales should reach $970 000 and the projected net income before taxes could be $567 000. The projected cash flows for SERS Engineers during the five years under review are summarized below:
Years to end Dec	2008	2009	2010	2011	2012
	Proj	Proj	Proj	Proj	Proj
	$000	$000	$000	$000	$000
Net cash flows from:
Operations	(71)	(13)	26	263	473
Investing activities	(2)			(2)	(4)
Financing activities	80	80	80	80
Increase (decr) cash	7	67	106	341	469
The projected cumulative net cash inflow over the five years is $990 000.
The next table shows the projected BALANCE SHEETS.
Years to end Dec	2008	2009	2010	2011	2012
	Proj	Proj	Proj	Proj	Proj
	$000	$000	$000	$000	$000
ASSETS
Current assets:
Cash	7	74	180	521	990
Other	2	12	23	71	121
Total current assets	9	86	203	592	1,112
Fixed/intang. assets & invest.	29	25	22	22	22
Total assets	38	111	225	614	1,134
LIABILITIES
Current liabilities:
Short-term loans/credit
Other		0	5	48	86
Total current liabilities		0	5	48	86
Total longterm liabilities
Total owners' equity	38	111	220	566	1,048
Total liabilities	38	111	225	614	1,134
The projected change in owners' equity is $1018 000 and the expected closing net cash position is $990 000.
The overall PROJECTED PERFORMANCE of SERS Engineers for the five years under review is assessed in the following table:
Years to end Dec		2008	2009	2010	2011	2012
		Proj	Proj	Proj	Proj	Proj
Gross margin (% sales)		85.0	74.7	75.0	73.2	73.0
Net income before taxes (% sales)		-601.1	-6.6	18.4	55.4	58.4
Sales as % breakeven		13	94	131	375	424
Net income before taxes/total assets (%)				15.1	51.0	50.0
Sales/total assets (times)		0.3	0.8	0.8	0.9	0.9
Net debt as percent
owners' equity (Max=200%)
Net assets per share ($)		2.21	6.19	11.59	28.30	52.39
Earnings per share ($)		-4.37	-0.35	1.56	13.64	24.08
Dividend per share ($)

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Appendix: Resumes Key Personnel

C.V. Manager

____

___ ____ Email: technobo@technobookstore.com

EDUCATION

Ph.D. & M.S. Structural Engineering, September 1987, and June 1992

Michigan State University, East Lansing, Michigan

B.S. Structural Engineering, May 1986

Purdue University, West Lafayette, Indiana

PERSONAL

___ Citizenship: USA

PROFESSIONAL REGISTRATION

Professional Engineer (PE) Michigan

QUALIFICATIONS

Research: Extensive experience in proposal writing and research funds generation in many different industries: (1) Civil construction industry (2) structural and geotechnical (3) Automotive industry (4) Aerospace industry (5) Advanced materials: composites, smart materials, shape memory alloys, nanomaterials, biomimetics, metallic foams.

Sponsored research projects:

Hybrid tapered helical Soil Anchor

____

Managerial: Cost Analysis and Planning (CPM and Design Under Uncertainty), Personnel Management, Construction Materials, Methods, and Equipment.

Technical:

Extensive experience with Federal Motor Vehicle Safety Standards:

MVSS208: Occupant Crash Protection

MVSS214: Side Impact Protection

MVSS216: Roof Crash

MVSS223: Rear Impact

Good experience in Analysis concepts and Applications of advanced materials including fiber reinforced composites, and smart materials such memory shape alloys and polymers.

Extensive experience in FEA, BEA, CAE, and Fracture Mechanics,

Extensive experience in Structural analysis theories: theory of elasticity, theory of plasticity, dynamics and vibrations, theory of plates shells,

Good experience in RADIOSS Software

Extensive experience in CRASH Software,

Extensive experience in COLLAPSE Analyis

Good experience in HYPER-MESH Software,

Good experience in PDGS, IDEAS, and SolidEdge

Hands-on experience in ANSYS FEA Software,

Working knowledge of NASTRAN FEA software,

Extensive experience in ROBOT V6 FEA Software,

Strong background in modeling, validation, optimization and sensitivity analysis,

Good communication skills (written and spoken),

Extensive experience in practical software development for in house use,

PROFESSIONAL EXPERIENCE

Company:company 1, June 2005 Present

Position: Structural/Sales Engineer

Tasks: In charge of structural design of mechanical machine components. And preparation of proposal concepts during bidding processes.

Company:Company 2 June 2001 May 2005

Position: Research and Development Engineer

Tasks: Research/Development, Advanced mechanics solutions to advanced Materials applications. Responsible for writing SBIR proposals in response to government SBIR solicitations and research needs. Generated close to $ 1 Million of research funds. Responsible for planning and managing research projects.

Company:Company 3, Dec 1998 - April 2001

Position: Position, Senior Safety R/D Engineer

Tasks: Safety/Crash, Research/Development.

VEHICLES PROGRAMS SUPPORT

• Medium size sedan vehicle: Key player in an investigative report toward improving the crashworthiness of the vehicle through efficient structural design.
• Truck: Investigated and recommended structural design improvements, for the purpose of stabilizing the frame pulse, and improving the crash safety of the vehicle.
• Luxury Vehicle: Investigated and analyzed the vehicle package for weight reduction purposes. The finding recommended a major saving in BIW of vehicle with improvement in offset and NCAP crash performance of the vehicle.
• Other Programs, Key player in a team that provided continuous consultation and support for better crashworthiness and design of many other vehicles.

ADVANCED SAFETY/CRASH RESEARCH

• Characterization of NCAP frontal crash pulses for midsize vehicles and trucks.
• Characterization of Offset frontal crash pulses for midsize vehicles and trucks.
• Characterization of deformable barrier effects on crash pulses during offset crashes.
• Effects of triggering holes on the static and dynamic behavior of double cells aluminum rails.
• Crash Data Mining, gathering and analysis, through different sources: NHTSA, IIHS,...

Company:Company 4, November 1994 - February 1997

Position: Engineering Specialist

Tasks: Structural Design Automation: Development of software tools to automate the structural design process.

Conducting and coordinating detailed phases of the structural engineering work, while representing the company and the client's best interest.

Review and evaluate local, state and national codes to be incorporated into project documents. Communicate information to team members and consultants.

Prepare and assist in preparation of changes, clarifications or addenda.

Document new project details and/or changes as well as resolving project issues.

Review project designs with team members as required.

Coordinate project schedules and deadlines internally, with clients, contractors, and/or other officials.

Company:Company 5, September 1992 - August 1994

Position: Principal Structural Engineer

Tasks: Development of computer software for structural Design/Analysis systems.

Company:Company 6, Jan. 1988-June 1992

Position: Research Assistant

Tasks: In charge of laboratory investigations related to sponsored projects.

Fracture Mechanics Computer Simulation of the mechanical behavior of fiber reinforced composites.

Investigated the performance of the commercial structural analysis and design software "GTSTRUDL" on a "VAX" computer system.

OTHER EXPERIENCE SKILLS AND CAPABILITIES

TEACHING: ___ Junior College, Instructor for Engineering Dynamics: August 1995 - August 1996

PERCEIVE qualities and talents of other people, therefore aiding them to attain goals.

Ability to COMMUNICATE difficult ideas and concepts clearly and easily.

ORGANIZE thoughts, concepts and materials logically.

PURSUE goals with persistence and see them through to completion.

ABLE TO APPLY abstract thinking and analyze problems methodically.

Materials: - Fiber Reinforced Concrete, Polymer Modified Concrete. Design and analysis of all types of material experiments.

Structural Design and Analysis of Structures: - Reinforced and Prestressed concrete, Steel Design, Wood Design, Foundations Design.

Structural Theory: - Finite Element Methods, Boundary Element Methods, Structural Dynamics, Fracture Mechanics, Theory of Elasticity and Plasticity, Theory of Plates and Shells, Seismic Analysis of Structures.

Geotechnical Engineering: Excellent principles and practice Knowledge.

Environmental Engineering: Working Knowledge.

Automotive structural component design for crash and Safety: Excellent Knowledge.

Computer Skills: UNIX Based Systems, VMS Based Systems - Personal Computers; Advanced programming skills in FORTRAN, Visual Basic, Excel. AutoCAD.

Languages: Fluent in: - English, French, and Arabic.

PATENTS:

1) Energy efficient front rail design concept for vehicle body in white

2) Hybrid tapered helical soil anchor for deployable structures

PUBLICATIONS

(1) Hybrid Tapered helical Soil Anchor for Tents and Shelters, Report, August 2002.

(2) Flexible Barrier effects on Vehicle Offset Crash, Paper, to be published in International Crashworthiness Journal, 2001.

(3) Vehicle Crash Pulse Characterization, Paper ASME Winter 2000 Crashworthiness Conference, Florida.

(4) "Theoretical Optimization of Fiber Reinforced Cement Composites American Concrete Institute Materials Journal, Vol. 92, No. 4, July-August 1995, PP. 373-382

(5) "Computer Simulation of Cement Based Materials Using Fracture Mechanics", Ph.D. Thesis, June 1992.