Mr. Douglas J. Ronalli and Dr. Thomas P.
Sosnowski found the company which is called FAX International,Inc. Their goal is clear;building an international communications network that will be much better at transmitting fax documents than the switched voice networks of other big firms. The Company is offering a different service concept ,which offers customers superior service and superior pricing without any risk. It has been designed to make life easier for all fax users.For instance, automatic redialing of busy numbers, delayed delivery and priority delivery options, broadcast distribution and enhanced billing functions are simplifying users’ lives. Furthermore, the company is offering a better price.
It’s introductory price is $0. 69 per minute to Tokyo. It represents approximately 40-60 percent saving for all customers. Other firms charge between $1. 80 and $2. 75 for a first minute call to Tokyo.
Also, the company is trying to convince customers to accept a free trial run.It is offering 100 free minutes for every customer. The function of the network, which is meeting the needs of the customers and efficient sales,will give them success in the future. Also, the other big companies such as; AT&T, MCI and Sprint have the technology and resources to compete in that new market, but these companies do not have as high an incentive as FAX International,Inc . Therefore, their revenues will probably drop. In addition, FAX International,Inc has a professional team with a good resume of professionals.
The list is as follows: Douglas J. Ronalli, the founder of FAX International,Inc, is a professional with marketing,entrepreneurial, and engineering skills. He is the founder of The Student Life Magazine which was circulating nationally at 1,200,000 copies per issue before selling to Time,Inc, in 1987 for 1. 3 times its revenue intake. Its other founder Dr.
Thomas P. Sosnowski is an engineering project manager and a product development specialist in the communications industry. He spent 13 years in R&D at Bell Laboratories.He is a professional in the communications sector. Steven Lanzilla is a sales manager. He brings 17 years of sales experience in telecommunications to the FAX International team.
Steven’s experience includes four years of sales, sales management and product development experience at U. S Sprint. He will have a huge role in the sales department of the company. Steven Orr is a UNIX system designer responsible for system design and testing.
Tom Flaherty is a database programming expert.He will be responsible for all database management which includes information for billing, accounting, customer service,network management, and sales support. Michael Landino is an Oracle programmer, and Bradlee T. Howe is a chiel financial officer.
As we can see, the team consists of professionals who will bring success to the company. Financial Issues The Fax International Company wants to create a leadership in from the United States to Tokyo market because it is the highest volume of international facsimile routes in the world.Besides, when we look at the growth rate, it is the fastest growing route by 30 percent per year. After the leadership position is created, the company wants to expand its market size by entering two more markets which are London to United States and Paris to United States.
The next step is completing a second round of financing, which will be used to install the network and bring the company to a cash positive position within the first 12 months. An equity investment of $1,000,000 with the equipment lease loans representing assets worth $1,500,000 will be needed to achieve the financial goals.They want to achieve $2,200,000 revenue within the 12 months, $8,800,000 revenue for the 2nd year and $14,000,000 revenue for the 3rd year. Now ,they only need to have $1,000,000 in investment to achieve their financial goal.
They also have to protect the company from negative cash flow and having debt. I advice that Ronalli should look for investment offers. If he is concerned about loosing some of his shares, then he has to prioritize heavy cash flow and a bigger company over a small company with negative cash flow and debt.
