Information Technology Personnel Agency
Revke IT Staffing

31 Wielfeld Hwy.
Detroit, Michigan 48202

Rekve IT Staffing will provide additional services as well as support to a very specific field in the business sector. We will offer services to all IT sectors including computing, internet, and website design. Specifically we will offer: desktop support, software support, hardware support, network support, and infrastructure support.

EXECUTIVE SUMMARY

Rekve IT Staffing Inc. ("Rekve IT Staffing") was formed in 2005, when a market opportunity was identified by the owner of a Michigan-based computer repair and network consulting firm.

Mission

The goal of Rekve IT Staffing is to provide additional services as well as support to a very specific field in the business sector. We will hire contract staff to provide support in areas where the clients' staff is not qualified.

We will offer services to all IT sectors including computing, internet, website design and so on.

In order to begin this service, there will be little impact on our existing cash flows with exception of the start up marketing, advertising and additional resources required.

Company History

Rekve IT Staffing is a division of Bixby Computer Networks Inc. In 2005 Bixby Computer Networks had revenues of $1.5 million dollars and a staff of 8 people. They have been servicing the greater part of Detroit, Michigan for more than 15 years.

Bixby Computer Networks was founded by Jonathan Rekve after he graduated from technical college in the late 1980s. Jonathan found that his interest in owning his own company was more appealing than working for someone else. From the start, the business was lean on staff; over the years, though, it gradually hired more staff as the company required. Today with eight staff on board, the company is very profitable and has some long-term, big name clients on contract.

With the solid foundation that has been built up over 15 years, Mr. Rekve has allowed the expansion of Bixby Computer Networks into other areas that are of similar nature to the existing business model.

MARKET ANALYSIS

Computer networking in the Michigan market is like most markets in the world. There has been solid growth curve of the industry for the past 20 years. With the evolution of computing in the late 70s, the industry has not stopped.

The Detroit market is very competitive to say the least, with new companies starting almost on a daily basis. This has given existing firms like Bixby Computer Networks a run for their money. Competition this strong has also educated potential clients. Clients look for quality service and providers like us that have been around for while before committing to contracts. In fact, we have found smaller contracts (under $5,000) are typically from one-time clients and larger contracts (up to $50,000) are from existing clients or clients looking for a long-term solution and are thus willing to pay a little extra to get the quality they require. We feel that expanding into Rekve IT Staffing will just be an extension of our existing products and services.

Staffing in general over the years has taken many forms; we will be using the business model of knowledge-based staffing. The primary focus of knowledge-based staffing is to provide very specific solutions to issues and problems that clients currently face.

SERVICES

As mentioned earlier, we have identified a market niche that we feel is being underserved by existing vendors. We will be able to cross-sell services to fill this underserved area to both existing clients as well new clients.

We will offer the following staffing services to clients for daily, weekly, and monthly rates. Our contract staff may be at a client location for up to one year.

Our service will include all sectors of the IT industry in our region. Here is a list of a few of the areas; we will add more as they become relevant and cost effective.

• Desktop support
• Software support
• Hardware support
• Network support
• Infrastructure support

Each one of these areas can be broken down into many smaller departments; therefore, we will be required to hire specialist staff contract consultants as they become needed and available.

Desktop Support

This area will include the following departments:

• Upgrades
• Virus protection and recovery
• Software glitches
• Hardware configuration

Software Support

This area will include the following departments:

• Upgrades
• Virus protection and recovery

• Software glitches
• Software configuration

Hardware Support

This area will include the following departments:

• Router configuration
• Router troubleshooting
• Network devise troubleshooting
• Upgrades
• Recommendations
• Price quotes

Network Support

This area will include the following departments:

• Network configuration
• Devise setup
• Router configuration and setup
• Software installation
• Network troubleshooting
• Training existing staff to further troubleshoot network issues
• Purchase and installation of network devices

Infrastructure Support

This area will include the following departments:

• General infrastructure support
• Specific projects as needed

OPERATIONS

Workflow Process

Within our mandate of services, we will act to become an extension of staff for our clients. Rather than the client hiring full-time staff to complete functions within the company, the client will hire us on contract to complete the function. The IT staff of most companies are usually stretched to the limits. Our services will allow them to add help they need when they need it most.

Generally speaking, this is how our service will work; we will of course make required changes as the need arises. To begin, clients will contact us or one of our sales staff will put in a tender for services or solicit potential clients. Next, our staff manager will attend to the clients tender or request for pricing of services. This manager will then do a review of the required work and, based on this review, will estimate the hours/days/weeks required to complete the job. She will also look at which specialized skills will be necessary to properly complete the job based on the accepted and approved technological skills. With all this information now gathered, we will be able to offer a price quote to the client for the services required.

Filling Staffing Requests

When clients are in need of an Rekve IT Staffing employee, the first thing we will ask them to do is to determine the exact job duties and skills they will need the employee to perform. If the IT staffing employee will be replacing a career employee, we will ask the client if they will need the employee to perform the full scope of job duties or just a portion of the job functions. We may request a written job description with the duties they wish the Rekve IT Staffing employee to perform.

When we have that information, we can then determine the skills needed to perform the duties including such things as: what type of computer equipment (IBM or Macintosh) will be needed; software (WordPerfect, Microsoft Word, etc.); and what type of documents will be produced (manuscripts, letters, financial reports, etc.).

Furthermore, this information will allow us to classify the client job order using the Point Factor Systems and conduct an applicant search in the Rekve IT Staffing database for the best possible candidate.

Hours of Operation

Rekve IT Staffing is open from 8:00 am to 6:00 pm Monday through Friday to assist with client requests. We will also have a hotline number for after-hours support.

Orientation

To ensure that our staff have the best possible chances for success, we will ask clients to prepare for their arrival by doing such things as determining where they are going to sit, who will be supervising their work (if other than the stated supervisor), and who will be available to answer any questions they may have. We would like the employees to be given a brief introduction to other staff members in client office and be provided a brief overview of the office functions and instructions on job duties, departmental expectations, deadlines, and a lunch and break schedule. This preparation and information is crucial to avoid miscommunications and potential problems.

Overtime

Rekve IT staff will be available to work overtime when it is requested by their direct supervisor. The pay standards for overtime are the same as for career employees. Rekve IT Staffing employees are also paid shift differentials and premium overtime when authorized.

Employee Benefits

Employees of Rekve IT Staffing accrue vacation and sick leave by pay period. They are paid for holidays when they are on pay status before and after the holiday. They are eligible to receive CORE Medical benefits after three months service with Rekve IT Staffing. If an employee is hired into a career or casual position by a client department, all vacation and sick leave hours will be transferred to the new department upon notification.

Identification Badges

All Rekve IT Staffing Employees are required to wear I.D. Badges. The Rekve IT Staffing badges are not permanent badges with pictures; instead they are yellow in color and have the Rekve IT Staffing employee's name, the Client Department's Name, an Expiration Date, and signatures of both the Rekve IT Staffing employee and a client staff representative. These will be worn in addition to any identification or badges required by the client.

Rate and Billing Procedure

The recharge rate for Rekve IT Staffing employees is $75.00 per hour. Clients will be recharged according to the number of hours authorized on the Rekve IT Staffing employee's timesheet, which will require both the employee and client signatures. The client signature is imperative; it is our authorization to pay the Rekve IT Staffing employee and to recharge the client account for the number of hours indicated on the timesheet. Clients will receive recharge statements the first week of each month for IT staffing services undertaken in the preceding month.

Recruitment Process

Rekve IT Staffing actively recruits qualified applicants. We have a weekly posting in the Job Opportunities Bulletin and, when a special need is identified, we will advertise in local newspapers. Our most successful avenue of recruitment is by employee referral. Most of our applicants identify an Rekve IT Staffing employee as their first source of reference. Also, the staff at Rekve IT Staffing participates in job fairs, career days and professional organizations to find qualified applicants.

Application Process

All applicants are required to fill out a Rekve IT Staffing application detailing their work experience and history as well as a Skill Sheet, or self assessment. The information from these forms will then be entered into the Rekve IT Staffing database and reviewed by a member of the Rekve IT Staffing staff.

The criteria will also be used to screen applicants. Our screening process will prioritize the skills that have been determined to be in high demand when reviewing the job order requests from our client. Potential employees that possess those skills will be given priority and invited to a Rekve IT Staffing interview. Those that do not possess the needed skills will be sent a post card thanking them for their interest in the Rekve IT Staffing and indicating that their skills do not match our requirements at this time. They will be encouraged to inform us as they add to their education or skill level.

At the interview the applicant's work history and training will be discussed and their skill sheet will be reviewed in specific detail. Once the Rekve IT Staffing staff member determines that an applicant meets our skill requirements, the applicant's skills will be further evaluated to determine which level of assignment the applicant can be successfully placed. These evaluations will be determined by entering the applicant's experience and training into assessment software programs such as QWIZ for IBM and Mac Valuate for Macintosh. A general administrative skills evaluation program is also contained in the QWIZ package and is given to all applicants for such skills as typing speed, letter formatting, and, if applicable, 10 key, data, programming, transcription, and statistical skills. The applicant's scores will be entered into the Rekve IT Staffing database for future assignment skills matching.

Once it is determined the applicant is suitable for hire into Rekve IT Staffing, they will be given our Policy and Procedures Manual and our expectations and performance standards will be discussed. Two employment references will also be checked before an applicant is actually hired and placed on an assignment.

Checks and Balances

In addition to the reference checks on each applicant, Employee Evaluation Forms will be sent to the direct supervisor of all employees at the end of each assignment. Feedback will be sought in the following areas: Attendance, Punctuality, Skill, and Knowledge and Production; there will also be an area for additional supervisor comments. The evaluation form is essential to maintaining the quality of the employees in our program and the level of service we have promised our clients.

Hourly rates

Over time we may review and adjust these rates to reflect the current market conditions.

Our key areas of focus are listed below. As the company grows, we may add areas of opportunity or delete areas that are not profitable.

Business Applications

1. Business Application Delivery/Development
2. SAP Projects
3. E-Mail/Lotus Notes Delivery
4. Customer Relationship Management (CRM)

Data & Storage

1. Data Warehousing
2. Database/Data Administration

Infrastructure

1. Enterprise Architecture/Planning
2. Architecture Management
3. Infrastructure Development
4. Enterprise Infrastructure

Network and Systems Management

1. Network Operations
2. Systems Operations
3. Enterprise Operations
4. IT Support

1. Network Engineering
2. Systems Engineering
3. Enterprise Project Management
4. Inter/Intra/Extranet

Services and Outsourcing

1. Electronic Commerce/INet
2. Contingency Planning
3. Business/IT Alignment

Security

Security Management

COMPETITION

As mentioned above, we have a number of competitors in all of these sectors. For this purpose we will only mention the largest competitor.

Mitchell Technology Solutions

This is the largest competitor we have in the market. They have 60 contract staff on duty in all IT sectors and they advertise weekly for a variety of positions in the career section of the local newspaper.

They also use online career advertising services and have a number of postings for contract consultants. They have been around for 20 years and have a strong market position. They have a lot of strengths, but also have a few weaknesses including that fact that they do not pay their contract staff very well. Consequently, they have a high turnover rate in the contract consultants they employ. We have been able to exploit this weakness and have hired away some of their best staff.

GROWTH STRATEGY

Michigan has over 200,000 businesses listed with the state registration service. Of these businesses, there are 80,000 with employee counts over 50. These firms are the focus of our efforts—they are larger firms that are more likely to require our type of services. If we get one percent of the market, it will be enough to maintain our business for a long period of time.

Employment by Industry

Major Industry in the Detroit-area

Internationally known for automobile manufacturing and trade, the world headquarters of General Motors Corp. and Ford Motor Co. and the North American headquarters of DaimlerChrysler and Volkswagen are located in metro Detroit. The area ranks as a leader in the production of paints, non-electrical machinery and automation equipment, as well as pharmaceutical, rubber products, synthetic resins and garden seed. Other national and international corporations headquartered here include The Budd Company, American National Resources, Kelly Services, SBC, and Federal Mogul, plus pizza giants Domino's, Hungry Howie's and Little Caesars.

FINANCIAL ANALYSIS

Start Up Expenses

Because we are already in business, we will not have the same start-up expenses that others would have when starting a new business. All we will be doing is increasing our existing staff and resources to accommodate the new business. While the new business will be a separate entity, it will share our existing office location and materials.

We will be hiring three sales executives along with a sales manager and support staff. These staff will coordinate the flow of contracts and temp staff we place in the varieties of clients' locations.

Payroll for new company will be low compared to our existing operation.

• Manager—$30,000 annual salary and bonus component of 10% of all sales made
• Sales staff—$17,000 annual salary and bonus component of 10% of all sales made
• Support staff—$14,000 annual salary (one staff member to start)
• Individual contract staff we hire for placement are only paid on a per-job basis. This will amount to pay rates from $25-$36 per hour

We will also pay the following expenses:

• Travel expenses for manager and sales staff
• Auto allowance
• Gas reimbursement
• Meals for clients and sales staff on road
• Hotel
• Other travel not mentioned here
• Office supplies for presentations
• Laptop computers
• Cell phones

We are going to set up our staffing firm a little different than most; we will be actively going after clients we know who use this type of service and make sales calls right in their place of business.

With this hands-on approach we are confidant that we will meet our sales targets.

The best part of this add-on business is the fact that we will be getting our complete line of services put in front of new clients. All our sales material will have a good overview of the services we provide.

CONTRACT CONSULTANTS & STAFF

We have already lined up staff that will meet with our clients once we get the contracts. We have been recruiting staff for the past six months and have a number lined up.

This will make it easy for us to manage the clients we bring in, as we can fill the opening as soon as we win the contract.

CONCLUSION

The addition of information technology contract staff will be a positive force for our business. The growth potential will be allow us to diversify our business, while increasing profit and revenue streams.