Business Plan Presentation

1. Business Plan Presentation Guardian Transition Services, Inc.

2. SaraAnn Wiens Business Administration – Accounting Introduction, Goals & Objectives, Product & Services Sarah Amsden Business Administration – Management Marketing Plan LarainePorrazzo Business Administration – Information Systems Operations, Management & Organization Courtney Keil Business Administration – Accounting Financial Plan & Financial Statements James Laqua Business Administration – Finance Financial Analysis & Action Plan

3. Introduction • Vision Statement • Guardian Transition Services, Inc. exists to change the lives of people affected by autism, who believed they had little chance at a peaceful and happy life. Autistics want to take charge of their own lives and learn the social and job skills required for real world independence. Every parent of an autistic hopes that his or her child will gain the social and relational skills needed to provide a fulfilling life. Guardian Transition Services, Inc. answers that desire through its virtual technology training, counseling, and guidance solution. • Mission Statement • Our goal is independence and self-reliance for as many of those in the autistic spectrum as we can reach, and then to reach further than we believed possible.

4. Goals and Objectives • Phase 1 • Office building with 2,500-5,000 square feet • First floor for easy access  • Office space includes rooms for executive director, a counselor, a computer programmer, computer training, and the servers. • An open area where the office manager would sit, work and greet customers • One to two conference rooms • Software training room • Meeting room • Monthly budget of $5,000, including all utilities and parking • Would appreciate if someone donated the office space to the company  • Phase 2 • House that is 3,000-3,500 square feet for a group home for students • Five bedrooms is preferred • Houses 8-10 students and 1 room for a group leader

5. SWOT Analysis (Strengths, Weaknesses, Opportunities & Threats) • Guardian Transition Services, Inc. is a developing Social Entrepreneurship . The company is in an industry with no competitors, high supplier power with respect to the donors and low power of buyers. The economy is still in a slight slump, but is on the rise. Interest rates are still fairly low. The population is more health conscious than it has ever been before and people are always looking for new treatment opportunities.

6. Products and Services • Description • The service provided is highly specialized and customized • Uses a virtual reality program, Second Life, to teach people with autism and Asperger’s syndromes social, vocational and life skills. • The program is designed to prepare people for real life experiences in a safe environment and transition them back into the community based on their abilities. • Clients will create their own avatars that will function through a series of modules that will help them develop their talents and place them into a job in the community.

7. Products and Services • Pricing • Guardian Transition Services, Inc. offers the program with a sign up cost of $250. • Also, a monthly charge of $200 to cover software training and counseling expenses. • Sponsorships and donations are received from fundraisers to sponsor clients who cannot afford this cost. • Companies, who partner with Guardian Transition Services, Inc. and hire the trained clients, will pay a placement fee of $1,000.

8. Marketing Plan • Market Research • Secondary • Economic Development Council • Easter Seals • Industry • U.S. population is approximately 313 million • One in 88 children diagnosed with autism yearly • Market • People with autism or Asperger’s in Montana • 18-35 years of age

9. Marketing Plan, continued • Demographics • Male and female • Billings area • All income levels • Any social class • Psychographics

10. Marketing Plan, continued • Product • Teach high functioning autistics a variety of life skills • The benefit • Virtual world • Promotion • Personal selling • Pros • Cons • Costs • Fundraising • Pros • Cons • Costs

11. Marketing Plan, continued • Budget • Price • $250 sign up • $200 monthly • Sponsorships • Place • Office • Atmosphere

12. Marketing Plan, continued • Competitor Analysis • No competitors at this time • Sales Forecast

13. Operations Plan Facilities - Proposed Location: 2940 Grand Ave

14. 2940 Grand Avenue

16. Operations Plan Relevant Local, State, and Federal Regulations • Local – Zoning and all other general business laws • State - Montana is the 10th state to sign a bill to specifically require insurers to provide coverage for the treatment of autism.  • Federal - The Combating Autism Reauthorization Act (CARA) of 2011, HR.2005, was signed into law on September 30, 2011 by President Obama, securing the federal response to the national and public health emergency posed by autism spectrum disorders. The law authorizes $693 million in continued federal investment over three years for autism research, treatment and services • Combating Autism Act was enacted in 2006 • Personnel -Currently there are no personnel, but after the fundraiser event, the organization plans to hire the people who are currently working on the software development team. This is the most important part of the project because this is Guardian Transition Services, Inc.’s product. After the operations of the company start to pick up there will be additional hiring.

17. Operations Plan • Suppliers-Guardian Transition Services, Inc. will not be using a supplier because the company has its own product designed by a software development team. The computer operations room will be located on-site and will be managed by the computer programmer. • Credit Policies-As a new business starting up, there will be no credit extended. Guardian Transition Services, Inc. will accept cash or credit/debit payments for services. Insurance billing will take place once it has the ability to offer counseling, therapy, and comply with HIPAA. This process is usually about two years, but could take longer.

18. Management and Organization • Management Structure The structure will follow the guidelines of a non-profit once it is formed. The executive director will manage the operations and staff once the business is established. Currently Guardian Transition Services, Inc. is managed by The Board of Directors. • Organizational Culture The primary responsibility of the leaders in this company is to create and maintain the organizational characteristics that reward and encourage a collective effort for the greater cause of helping others. Every board member offers a specific qualification that will help with the growth and culture of this organization. Future employees will require the characteristics of a person who wants to help others achieve their goals and has the ability to aid the company in moving their mission forward. The working environment will be a positive and enjoyable setting that is family-friendly. The culture of this organization will take pride in its accomplishments and be dedicated to the clientele. Some of the other important skills they obtain are:

19. Management and Organization • Advisory Support The board of directors is diversified and will be highly involved within the business structure. The board’s combined knowledge will be used throughout each committee (see flow chart below) and will provide an abundance of advisory support throughout the organization. • Professional Qualifications Marcus Morris-Highly functioning autistic and founder of Guardian Transition Services, Inc.

20. Financial Plan • Financial Assumptions • Pro forma financial statements • Income statement • Balance sheet • Cash Flow statement

21. Financial Assumptions • Donations and participation fees • Expecting to raise a minimum of $50,000 at first fundraiser • Additional $10,000 for the next two fundraiser events • Expect to raise $65,000 in 2015 and $75,000 in 2016 • Expect 100 participants, $200 per month in first year • Increase in price to $250 a month after the second year

22. Guardian Transition Services, Inc. Income Statement 2012 2013 2014 2015 2016 Income Donations $ 50,000 $ 60,000 $ 60,000 $ 65,000 $ 75,000 Training $ 100,000 $ 240,000 $ 300,000 $ 300,000 $ 300,000 Mark up on software $ 7,500 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Placement Fees for Business $ - $ 10,000 $ 20,000 $ 30,000 $ 40,000 Linden Money Trainee Earnings $ - $ 6,000 $ 12,000 $ 12,000 $ 12,000 Total Income $ 157,500 $ 331,000 $ 407,000 $ 422,000 $ 442,000 Expenses Purchase Linden Labs Virtual Land $ 1,000 $ - $ - $ - $ - Monthly Maintenance Fee for Linden Labs Virtual Land $ 3,000 $ 3,300 $ 3,600 $ 4,000 $ 4,400 Travel reimbursements $ 3,000 $ 7,500 $ 10,000 $ 10,000 $ 10,000 Marketing costs $ 5,000 $ 15,000 $ 20,000 $ 20,000 $ 20,000 Office supplies (paper, postage, printer ink, etc.) $ 1,000 $ 1,500 $ 2,000 $ 2,500 $ 3,000 Office equipment (computer, printer, copier, etc.) $ 5,000 $ 6,000 $ 7,000 $ 8,000 $ 9,000 Insurance, including director and officer liability $ 5,000 $ 10,000 $ 11,000 $ 12,000 $ 13,000 Website Hosting and Maintenance $ 2,500 $ 5,000 $ 5,000 $ 5,000 $ 5,000 Payroll taxes and workers compensation $ 15,000 $ 32,000 $ 35,000 $ 37,000 $ 40,000 Executive Business Manager $ - $ 24,000 $ 30,000 $ 36,000 $ 42,000 Virtual Software Engineer, QA, and Designer $ 50,000 $ 100,000 $ 135,000 $ 150,000 $ 150,000 Office and Administration Manager $ 12,000 $ 25,000 $ 26,000 $ 27,000 $ 28,000 Counseler/Social Manager $ 17,500 $ 36,000 $ 37,000 $ 38,000 $ 38,000 Rent for Office Includes utilities $ 30,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 Miscellaneous $ 5,000 $ 5,000 $ 10,000 $ 10,000 $ 10,000 $ 155,000 $ 330,300 $ 391,600 $ 419,500 $ 432,400 Net Income $ 2,500 $ 700 $ 15,400 $ 2,500 $ 9,600

23. Guardian Transition Services, Inc. Balance Sheet 2012 2013 2014 2015 2016 Assets Cash $ 2,500 $ 700 $ 15,400 $ 2,500 $ 9,600 Accounts Receivable 100,000 240,000 300,000 300,000 300,000 Total Assets 102,500 240,700 315,400 302,500 309,600 Liabilties and Fund Balance Fundraiser Payable 7,000 7,000 7,000 7,000 7,000 Rent Payable 16,800 16,800 16,800 16,800 16,800 Mortgage Payable - - - - 20,811 Fund Balance 78,700 216,900 291,600 278,700 264,989 Total Liabilities and Fund Balance $ 102,500 $ 240,700 $ 315,400 $ 302,500 $ 309,600

24. Guardian Transition Services, Inc. Cash Flow Statement For year ended 12/31 2012 2013 2014 2015 2016 Beginning Cash $ - $ 2,500 $ 3,200 $ 18,600 $ 21,100 Additions to Cash 2,500 700 15,400 2,500 9,600 Substractions from Cash - - - - - Cash End of Period $ 2,500 $ 3,200 $ 18,600 $ 21,100 $ 30,700

25. Financial Analysis • Industry/Competitor Benchmarking • It is a new industry with no current competitors to compare. • Six Financial Criteria • Payback analysis for the group home • About 11 years (factoring in homeowner bills) • 10 participants multiplied by $500 a month ($60,000 a year)/30 yr. mortgage of $624,330. • $1734.25 per month*12 = 20,811.00 per year

26. Financial Analysis • Sensitivity Testing • The sensitivity testing looks at both the factors of worst and best case scenarios. • Worst-case scenarios • Number of participants • Donations • Best-case scenarios • Number of participants • Donations • Cutting expenses • Risk Analyses and Contingency Plans • Keeping enough cash flowing in. • Reduce administrative expenses. • Increase amount of donations

27. Analysis of Strategic Options • Strategic Options • Our Business team has recommended that Guardian Transition Services, Inc. uses the office space that we have provided, which would be cheaper than the allocated $5,000 monthly rental budget. • Pros • Save close to $3,000 a month • Furnished already • Great location • Cons • Still have monthly rent payments • Liability of not owning office space and furniture

28. Analysis of Strategic Options • Liability of not owning office space and furniture • Our business team also recommended to hold off on the group home idea until financing is stable to support the home. • Pros • Concentrating fully on perfecting the office space and virtual training world • No mortgage payment • No additional administration expenses • Cons • Trainees from outside of Billings do not have housing • No rental income

29. Action Plan • Fundraiser will be held on April 21, 2012, with all proceeds going towards the startup of Guardian Transition Services, Inc.. • Obtain office space by beginning of July, in order to be up and running by August 1. • Startup date is August 1, 2012.

30. Questions? Thank you for your time!