1.0 Executive Summary
The purpose of this document is a showcase that continued development of a cyber security focused IT firm based in Orlando, Florida. Deutsch Cybersecurity Group LLC (“the Company”) is currently seeking a $175,000 revolving line of credit to establish its operations. The Company was founded by Matthew Deutsch. Full scale revenue generating operations are expected to commence in the first quarter of next year. The business will offer a wide range of comprehensive services for enterprises spanning a broad range of industries. The Company will principally focus on professional practices and businesses that deal in sensitive information within the greater Central Florida market area.
Operations
The primary service of Deutsch Cybersecurity Group is providing comprehensive analysis and implementation of protocols that protect a clients information technology infrastructure. Given the myriad of threats that can occur, the demand for the services is continually increasing.
The business will generate substantial revenues from creating plans that will allow clients to operate with a much higher degree of security within their respective organizations. The Company will generate income on a per project basis, as well as on a recurring basis for ongoing monitoring of a client’s IT systems. The business will have the ability to ensure that a client conforms with all regulatory frameworks regarding the storage transmission of sensitive information including HIPAA regulations.
The third section of the Business Plan will further document the operations of the business.
The Financing
As noted above, the Company is currently seeking $175,000 via a revolving credit line in order to establish and expand operations. This funding will be principally used for working capital purposes and for the initial marketing of the business.
Moving forward, the Company could easily expand its credit line as new clients are onboarded for cyber security as well as general IT services that are offered.
The Future
Over the next five years, the Company will continually hire new cyber security experts so that a greater degree of service can be rendered throughout the Central Florida area. If a unique opportunity presents itself, the Company may also acquire existing Enterprises that
operate in a similar capacity that can be integrated into the Company’s operations.
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
A revolving credit facility of $175,000 is required to launch operations. Matthew Deutsch will contribute $50,000 toward the venture. The funds will be principally used for the following:
2.2 Management and Investor Equity
Matthew Deutsch retains a 100% ownership interest in the business.
2.3 Exit Strategies
Cyber security and IT focus businesses command a substantial price to earnings multiples given the highly recurring reams of revenue generated. Furthermore, these businesses enjoying a substantial degree of economic stability given that cyber security is something that is needed among every business in today’s market. Matthew Deutsch has no long-term plans to sell this business as there is a substantial opportunity to expand not only within the Central Florida area, but also within other economically viable markets of the state.
3.0 Operations
As noted in the executive summary, Deutsch Cybersecurity Group will provide a wide range of cyber security services for companies throughout Central Florida. The scope of the Company’s company services will include:
• Analysis of existing IT infrastructure to determine where vulnerabilities exist.
• Acquisition of IT assets that will further ensure these stability and security of client systems.
• Ongoing monitoring of systems at the company’s headquarters in Orlando.
• Addressing cyber security attacks which will be monitored on a 24-hour basis and can be addressed with minimal lead time.
• Creating appropriate backups so that in the event that a cyber security attack is successful – a client will be able to roll back their operations to a specified point.
The business will generate substantial revenues from all facets of operation. As it relates to per project revenues, the business will generate $2,500 to $10,000 for the initial analysis and set up of a proper cyber security infrastructure. Monitoring service services will build at $500 to $2,000 per month, depending on the scope and scale of the client’s operations. The highly recurring revenue produced from ongoing monitoring services will allow the business to make substantial reinvestment for expansion purposes.
4.0 Overview of the Organization
4.1 Registered Name
Deutsch Cybersecurity Group LLC. The business is registered as a limited liability company in the State of Florida.
4.2 Commencement of Operations
Revenue generating operations will commence in the first quarter of next year.
4.3 Mission Statement
To provide the Central Florida area with comprehensive cyber security services that are provided on a cost-effective basis.
4.4 Vision Statement
To become a recognized leader in the field of cybersecurity for the Central Florida market.
4.5 Organizational Objectives
• Implement best practices when providing all services to clients
• Maintain a committed research and development program so the business stays at the forefront of cyber security.
• Introduce new information technology related services so that the business can continue to expand its billings on a year on your basis.
• Provide staff with outstanding compensation packages in order to ensure employee retention.
• Adhere to all laws and regulations regarding cyber security and IT services.
• Properly expand the operations of Deutsch Cybersecurity Group in the coming years through ever expanding marketing operations.
• Establish relationships with regional business organizations to further increase brand name visibility.
• Implement numerous KPIs to ensure that the business is meeting and exceeding its growth plan metrics.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the business plan will document the current economic climate, the cyber security industry, the competition that the business will face, and the customer profile of the business.
At this time, the economic climate within the United States is moderate. As a result of changing trade policies, there has been a degree of volatility that has been introduced into the market. However, the federal government is implementing appropriate policies that will ensure that inflation remains within normal bounds will also fostering ongoing economic growth.
It should be noted that the revenue is Deutsch Cybersecurity Group are wholly immune from negative changes in the economy. Cyber security is an absolute necessity, especially among companies that deal insensitive information, including accounting practices, law firms, medical businesses, and technology businesses that deal in proprietary systems. Deutsch Cybersecurity Group will generate significant gross margins from its operations.
5.2 Industry Analysis
As of this year, cyber security businesses generate $20 billion of revenue. There are 12,700 entities that are actively involved with providing this service to businesses throughout the United States. The industry employees 65,000 people.
The ongoing growth rate of this industry is expected to be higher than the economy as a whole. This is due to the fact that more businesses are continually required in comprehensive cyber security measures to protect their critical infrastructure. The compounded annual growth rate over the next five years is expected to remain at 6.2%. Deutsch Cybersecurity Group will be able to capitalize on this ongoing demand in the coming years.
5.3 Customer Profile
The following profile will be used during the course of marketing operations:
• Operates as an enterprise that has complex IT needs with a focus on cybersecurity.
• Will spend $500 to $2,000 per month on ongoing services.
• Operates within 50 miles of the Company’s location in Orlando.
5.4 Competitive Analysis
This business plan has been developed for sample purposes only. As such, no formal competitive analysis was completed. If this business plan for a cyber security business was completed specifically for a client engagement, then a full analysis of all competitors, their length of time in business, their reviews, and ways in which Deutsch Cybersecurity Group could differentiate itself would have been included in this analysis. When possible, we would have also addressed the scope and scale of the market in regards to the aggregate revenues produced by all service providers within the greater Orlando area.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Deutsch Cybersecurity Group will have sustainable operations as a result of the following:
• Immense demand for cyber security focus services in any economic climate.
• The operations of Deutsch Cybersecurity Group are highly scalable, and the business can hire additional cyber security experts to render expanded services.
• The Company will have access to capital on an as needed basis
• The business can continuously enter additional markets within Central Florida, as well as throughout the entirety of the state.
• Through its committed research and development program, Deutsch Cybersecurity Group will remain at the forefront of cyber security solutions which will create an immense differentiating factor.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continued to hiring of qualified cyber security, experts, and IT technicians to render the services outlined in this document.
• Continued expansion of the companies online and direct outreach campaigns to onboard clients throughout degrade Orlando area.
• Potentially develop operations in other markets in Florida, Florida given the ongoing demand.
• Develop services at our specific needs of a wide range of organizations outside of the initial scope of demographics.
7.0 Marketing Plan
7.1 Marketing Objectives
• Leverage multiple forms of online marketing for the Company’s website.
• Conduct direct outreach with the targeted demographics.
• Enroll among numerous small business organizations throughout Central Florida.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• First year revenue will reach $769,000.
• During this year, the Company will conduct extensive direct outreach to drive initial client engagements.
Year 2
• Through greater marketing efforts, revenue will reach $1.07 million.
• Revenue will increase by 40%.
Years 3-5
• By the fifth year of operation, total revenue will reach $1.8 million.
• At this time, the Company may enter additional markets in Florida.
7.4 Marketing Strategies
Management will use a number of marketing strategies that will create significant brand-name awareness for Deutsch Cybersecurity Group in the coming years. As it has been one of the central themes throughout this document, the demand for comprehensive cyber security solutions – especially among professional service businesses – is tremendous.
Given the highly experienced founder, Matthew Deutsch, the business will be able to immediately conduct direct outreach with a number of enterprises that require these solutions on an ongoing basis. To complement Mr. Deutsch‘s ongoing direct outreach initiatives, the business will hire sales staff that are very well-versed on the scope of services offered by Deutsch Cybersecurity Group. These individuals will receive substantial commissions each time they foster a new client engagement.
The company will also maintain a significant presence online, not only via a proprietary website, but also through multiple social media platforms as well. In regards to the Company’s website, this platform will showcase every aspect of Deutsch Cybersecurity Group‘s operations and its ability to provide comprehensive cyber security solutions to its clients. The website will undergo significant search engine optimization.
As it releases the social media, the business will primarily focus on LinkedIn to target of people that list their profession as an IT professional within a professional service enterprise. In time, this will be expanded to include other types of industries as Deutsch Cybersecurity Group expense the scope of its operations.
The Company will also attend regional business gatherings and conferences in order to further increase brand name awareness. This will include the distribution of comprehensive sales literature that showcase the cyber security capabilities of the business.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• The business will have a compounded annual growth rate of 25%.
• Deutsch Cybersecurity Group will acquire a $175,000 revolving credit facility to commence operations.
• The Founder/CEO will invest $50,000 towards the venture.
9.2 Financial Highlights
• Recurring income from ongoing cybersecurity monitoring.
• Substantial revenues from cybersecurity analysis and penetration testing.
• Deutsch Cybersecurity Group’s operations are highly scalable.
9.3 Sensitivity Analysis
The Company will be able to thrive in any economic climate given the absolute necessity for comprehensive cyber security and IT solutions for small and medium size enterprises within the greater Central Florida market area. As noted throughout this document, the business will produce substantial revenues from a number of different income centers. This will significantly reduce the economic risks of the business.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
Appendix A – SWOT Analysis
Strengths
• Limited competition within the Central Florida market among companies that provide both general IT services as well as cyber security solutions.
• The operations of Deutsch Cybersecurity Group are highly scalable and multiple clients can be serviced throughout the target market area.
• An owner, Matthew Deutsch, that has more than ten years of experience in the field of rendering cyber security solutions for a wide range of industries.
• The business can continuously integrate new services, such as cloud hosting to further boost revenues.
Weaknesses
• Operational complex complexities, given the fact that the business is dealing with say the art tech technologies and its cyber security capacity.
• Ongoing competition from highly established firms in this market.
Opportunities
• Continued expansion, the company sales network, so the business can rapidly onboard clients throughout Orlando in the Central Florida area.
• Enter different markets in South Florida.
• Expand the scope of the service architecture who continually increased hiring of qualified technicians.
Threats
• Higher than expected inflation could cause the operating cost of the business to increase.
Appendix B – Critical Risks
Development Risk – Low
The procedures and protocols that will be implemented to render cyber security services have already been developed. At this time, the Company is seeking $175,000 to commence operations. The primary risk faced by the businesses management ability to develop a large-scale client based in the Central Florida market area.
Financing Risk – Low/Moderate
The revolving credit facility saw it in this document would be principally secured by the anticipated receivables that the business will generate on a monthly basis. Given that the Company is operating in an economically secure industry, this will substantially reduce the financing risk associated with the business.
Marketing Risk – Low
Given the level of competition among cyber security and IT focus businesses within Central Florida, the business will use multiple marketing channels, including direct outreach to establish its client base. These direct outreach initiatives will substantially reduce the risks related to the companies, marketing operations.
Management Risk – Low
Matthew Deutsch is a highly experienced cybersecurity professional. He will be able properly develop the operations of Deutsch Cybersecurity Group while making it one of the preeminent IT firms in the Central Florida market area.
Valuation Risk – Low
The valuation risk is offset by:
• Immense demand in any economic climate for cybersecurity focused services.
• A substantial portion of revenue is recurring in nature.
• The business can scale into other markets throughout Central Florida and other markets in the state.
Exit Risk – Low
There are no long-term plans to sell Deutsch Cybersecurity Group to a third-party. Matthew Deutsch has the intention of aggressively expanding this business over the next five years. In the event of a business sale, a qualified business broker or small investment bank would be hired to complete a formal valuation while marketing the Company to an appropriate buyer.