A Sample Presentation and Business Plan

Summary

Professor Bruce Rasan introduces a fictitious company, Jav X, which focuses on creating a job auction engine for direct placement of qualified candidates. The business aims to save time, energy, and resources for companies facing challenges like special projects, layoffs, and high employee costs. Jav X plans to expand from local businesses to specialized sectors such as graphic artists and IT specialists. With a projected growth in employees and private funding rounds, the company plans to go public in 2017. The business model shows a strong relationship between sales and gross margins, with low operational costs for placement services.

Takeaways

• 😀 The company, Jav X, is a fictitious business used to showcase a business plan for a job auction engine for direct placement of qualified candidates.
• 😀 Jav X's mission is to increase client profits while providing candidates with the best employment opportunities through resourceful practices like crop sourcing.
• 😀 The business is viable due to constant demand in industries facing spikes in workload, special projects, leaves of absence, and layoffs.
• 😀 The company aims to save time, energy, and resources for businesses by eliminating the middleman in the recruitment process.
• 😀 Initially, Jav X will focus on local businesses, technology, marketing, and large businesses, with plans to expand into specialized fields like graphic artists, computer specialists, and writers.
• 😀 As businesses cut back on employee costs, the demand for Jav X's services is expected to grow in the future.
• 😀 A survey shows that the recruiting market is vast, with several major players, including Ado, making high sales in the industry.
• 😀 Jav X eliminates the middleman at multiple levels by offering direct placement from people already in the job, streamlining the recruitment process.
• 😀 Year 1 requires seven employees, Year 2 needs 22, and Year 3 will need 35 employees to scale up operations.
• 😀 The company plans to raise funding through private rounds, with $8 million in 2015, $60 million in 2016, and plans for an IPO in 2017, aiming to raise $9 million at a share price of $14.50.
• 😀 The business model shows a healthy relationship between sales and gross margins, and the break-even analysis suggests low operational costs with the need for only around 200 placements in Year 1 to remain profitable.

Q & A

What is the purpose of the fictitious company 'Jav X'?

Jav X is a fictitious company used in a classroom setting to demonstrate how to create a business plan. Its goal is to develop a job auction engine for the direct placement of qualified candidates.

How does Jav X’s job auction engine work?

The job auction engine connects employers with candidates who are already performing the job, thus ensuring that the job is filled by someone with firsthand experience and knowledge of the role.

What is the mission of Jav X?

The mission of Jav X is to expand clients' profits while providing candidates with the best employment opportunities through the use of crop sourcing and other methods.

Why is Jav X's business model considered viable?

Jav X's business model is viable due to the constant need in the industry caused by factors such as spikes in workload, special projects, employee leave, and layoffs, which create a demand for job placement services.

What types of businesses will Jav X initially focus on?

Initially, Jav X will focus on local businesses, particularly in the fields of technology, marketing, and large businesses. Over time, it will expand to focus on graphic artists, computer specialists, editors, writers, coordinators, etc.

How will the demand for Jav X's services grow over time?

The demand for Jav X's services is expected to grow as companies continue to cut back on employees due to high employee costs. This trend will lead to an increased need for efficient and cost-effective staffing solutions, which Jav X provides.

What is the size of the market for recruiting companies, according to the script?

The market for recruiting companies is large, as shown by the survey in the script. A significant portion of this market is captured by leading companies like Ado, which generates high sales.

How does Jav X differentiate itself from other companies in the recruiting market?

Jav X differentiates itself by eliminating the middleman in the recruitment process, providing direct placement of candidates from individuals who have experience in the job role, thus saving time, energy, and resources for businesses.

What are the projected employee numbers for Jav X over the first three years?

In the first year, Jav X plans to have 7 employees. By year 2, the team would grow to 22 employees, and by year 3, it would reach 35 employees.

What are the funding plans for Jav X, and when is the IPO scheduled?

Jav X plans to raise funds through private funding, with $8 million in the first round in 2015 and $60 million in the second round in 2016. The company plans to go public with an IPO in 2017, aiming to raise $9 million and set the IPO share price at $14.50 per share.