Smart Tech is an electronic auction that specializes in using the penny bidding system, enabling consumers
the opportunity to obtain products at a substantial discount by purchasing bids to buy products and
competing for the final highest bid placed. The company is owned as a limited liability company in the
state of Delaware by Mr. Bases, Mr. Kurt, Ms. Jessica and an investor with majority stake via investment.
Smart Tech provides users the opportunity to save money on name brand products, by bidding on them
for a fee with the potential to win them at substantially less cost than retail prices. Smart Tech also
provides a platform that engages the consumer in the buying process, getting them emotionally aroused
with the potential to obtain a product with substantially more consumer surplus than any other
Smart Tech will focus around its key demographic of white, male generation X consumers in the middle
to upper class income brackets. Based on the research as presented in the business plan, this demographic
is most likely to adopt the service and the company will focus on them to most effectively target the
masses as opposed to a niche segment.
The company is acquiring $498.8 K for the start-up budget from management and investors to spend the
budget primarily on marketing, second to operations. The operations will be all outsourced for the
immediate period to save on money.
With a ROA of roughly 38.70% and profit margin of 26.98%, the company expects to generate the
following profitability indicators from year one to year four.
Total Operating Income
Total Operating Expense
Net Income before tax