Neither owns more than 15%, but both are active participants in management decisions.
AMT has been caught in the vise grip of margin squeezes that have affected computer resellers worldwide.
This example is provided as part of the instructions and detailed descriptions included in the Components of a Business Plan.
By focusing on its strengths, its key customers, and the company's underlying core values, Acme Management Technology will increase sales to more than $10 million in three years, while also improving the gross margin on sales and cash management and working capital.
We have one location—a 7,000 square-foot brick & mortar facility located in a suburban shopping center conveniently close to the downtown area. We sell the assurance to small business people that their business will not suffer any information technology disasters or critical downtimes.
Along with sales, it includes a training area, service department, offices, and showroom area. AMT serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor.It has a good reputation, excellent people, and a steady position in the local market, but has been having difficulty maintaining healthy financials.AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones.We are also starting to see that same trend with software...(add relevant information) To hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton.We need to continue to make sure our volume gives us negotiating strength.Our margins are declining steadily for our hardware lines. (add relevant information) Our margins are thus being squeezed from 25% from five years ago to closer to 13 to 15% at present.A similar trend shows for our main-line peripherals, with prices for printers and monitors declining steadily.We will not be able to compete in any effective way with the chains using boxes or products as appliances.We need to offer a real alliance that feels personal.We make sure that our clients have what they need in order to run their businesses at peak performance levels, with maximum efficiency and reliability.AMT is a 10-year-old computer reseller with sales of million per year, declining margins, and market pressure.