The margin squeeze is happening throughout the computer industry worldwide. We will not be able to compete in any effective way with the chains using boxes or products as appliances. We must differentiate ourselves from the box pushers. As a corollary, the high end of the home office market is also appropriate. The Yearly Total Sales chart summarizes our ambitious sales forecast. Unfortunately, we cannot sell the products at a higher price just because we offer services; the market has shown that it will not support that concept. The 30-employee cutoff is arbitrary.
For networking, we need to provide better knowledge of cross-platform technologies. Many of them turn immediately to the superstores office equipment, office supplies, and electronics and mail order to look for the best price, without realizing that there is a better option for them at only a little bit more. Training, service, installation, networking support-- all of this must be readily available and priced to sell and deliver revenue. And if you really want to, you can even copy and paste sections to use in your own plan. We use it mainly as a cheap workstation for small business installations. There is usually a lot of leakage in ad-hoc purchasing through local chain stores and mail order. We need to serve our customers with what they need.
We sell reliability and confidence. To hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton. This business plan leads the way. We estimate 45,000 such businesses in our market area. These are usually old-fashioned 1980s-style computer stores and they usually offer relatively few reasons for buyers to shop with them. Save time and get inspired with over 500 sample business plans included Read through as many sample business plans as you like to see how it's done and get inspired. The high-end home office business is a business, not a hobby.
We have also to sell the service and charge for it separately. Neither owns more than 15 percent, but both are active participants in management decisions. Margins are squeezed as they compete against the chains, in a competition based on price more than on service and support. In accessories and add-ons, we can still get decent margins, 25 to 40 percent. We are also starting to see that same trend with software.
LivePlan offers plenty of examples built in In addition to all the complete sample plans, LivePlan includes example content for every text item in your business plan. They are under-capitalized and under-managed. They are almost always more than 10,000 square feet of space, usually offer decent walk-in service, and are often warehouse-like locations where people go to find products in boxes with very aggressive pricing, and little support. We need to establish our business offering as a clear and viable alternative for our target market, to the price-only kind of buying. Of course one of our first tasks will be to change the message of our literature to make sure we are selling the company, rather than the product.
Our margins are thus being squeezed from 25 percent from five years ago to more like 13—15 percent at present. It generates enough money to merit the owner's paying real attention to the quality of information technology management, meaning that both budget and concerns warrant working with our level of quality service and support. If our strategy works, we will have differentiated ourselves sufficiently to avoid competition against these stores. Defining the high-end home office is even more difficult. The startup chart shows the distribution of financing.
We do not want to compete for the buyers who go to the chain stores or mail order, but we definitely want to be able to sell individual systems to the smart home office buyers who want a reliable, full-service vendor. Home offices include several types. They are both competing against the chains in an attempt to match prices. Our revenue structure has to match our cost structure, so the we pay to assure good service and support must be balanced by the revenue we charge. There are also part-time home offices with people who are employed during the day but work at home at night, people who work at home to provide themselves with a part-time income, or people who maintain home offices relating to their hobbies; we will not be focusing on this segment. In service and support, we offer a range of walk-in or depot service, maintenance contracts, and on-site guarantees.
The following business plan for the fictional Acme Management Technology is an example of what a completed business plan might look like. Build long-term relationships with clients, not single-transaction deals with customers. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies. This plan includes this summary, and chapters on the company, products and services, market focus, action plans and forecasts, management team, and financial plan. There are six part owners, including four investors and two past employees.