Personnel
Management Team
John Smith, CEO—John will oversee the sales and design functions of Burton Décor. He will work directly with the factories and the agent in India by overseeing their performance and negotiating the first cost of the products. Until a CFO can be hired, John will also handle all financial issues. Salary: $130,000.
Bob Davidson, Agent—Bob will be Burton Décor's primary contact and agent in India, and Bob's factory will be the primary manufacturer of Burton Décor products. He will oversee production at his factory and the outside factories by monitoring and coordinating production, quality control, packaging, customs paperwork, and transportation until the release of goods at the port. Salary: Compensation will be included in Burton Décor's cost of goods sold (first cost).
Jane Doe, Vice President of Design—Jane will be responsible for all graphic design and product development, i.e., packaging, presentations to buyers, as well as the Burton Décor showroom display. Jane will handle the product lines from conception through packaging, which includes developing themes and keeping abreast of marketplace trends. Long-term, Jane will build and manage the art department, including in-house and freelance artists. Salary: $80,000 + bonus.
Elizabeth Brown, Vice President of Sales: Elizabeth will be responsible for developing the marketing plan to meet sales objectives, as well as establishing/maintaining customer relationships. Elizabeth will make initial contact with buyers, handle day-to-day contact and follow-up with buyers, i.e., she will manage the process from the time the order is placed to the time the merchandise is off the retailer's shelves. Long-term, Elizabeth will build and manage the sales department, including outside sales reps. Salary: $80,000 + bonus.
Additional Personnel
Office Manager: Reports to VP of Design. Responsible for day-to-day office operations; will assist CEO and VP of Design. Must be highly organized and have the ability to multi-task. Attention to detail a must. Salary: $50,000.
Graphic Designer: Reports to VP of Design. Responsible for designing packaging for each product as well as for private label merchandise. Must be fluent in design software for the Mac, excel in conceptual design, and have experience in marketing trends and working with overseas vendors. Experience also required in working on product/decorative design and working with printers and production files. Salary: $40,000.
Artist: Reports to VP of Design. Responsible for conceiving, designing, and producing artwork for home décor and Christmas product lines. Must be fluent in design software for the Mac, excel in conceptual design, and have experience in marketing trends and working with overseas vendors. Experience also required in working on product/decorative design and working with printers and production files. Salary: $30,000.
Import Manager: Reports to VP of Sales. Responsible for building product database, putting together price quotes for buyers, issuing purchase orders and following through on sales, delivery, and payment approval. Must be highly organized and have the ability to multi-task. Attention to detail a must. Salary: $30,000.
Sales Assistant: Reports to VP of Sales. Responsible for supporting Sales Department. Must be highly organized and have the ability to multi-task. Attention to detail a must. Salary: $28,000.
Order Expediter: Reports to Import Manager. Responsible for assisting in putting together price quotes for buyers, issuing purchase orders, and following through on sales and delivery. Must be highly organized and have the ability to multi-task. Attention to detail a must. Salary: $25,000.
Staffing Plan
| Title | Year 1* | Year 2 | Year 3 |
| * last 6 months of 2002 | |||
| CEO/President | 1 | 1 | 1 |
| VP of Design | 1 | 1 | 1 |
| VP of Sales | 1 | 1 | 1 |
| Office Manager | 1 | 1 | 1 |
| Import Manager | 1 | 1 | 1 |
| Order Expediter | 0 | 2 | 4 |
| Artist | 0 | 1 | 2 |
| Graphic Designer | 0 | 1 | 2 |
| Sales Assistant | 0 | 2 | 2 |
| Sales Representative | 0 | 1 | 1 |
| TOTAL | 5 | 12 | 16 |
Organization Chart
CEO/President
VP of Design VP of Sales
Office Manager Artist
Graphic Designer Import Manager Sales Assistant Sales Rep
Order Expediter
Human Resources Administration
Burton Décor will outsource the human resources administration function to a Professional Employer Organization ("PEO"). A PEO provides cost effective HR management and administration, and takes on the related employment risks of its clients. Through an operating agreement, the PEO and Burton Décor will create a co-employer relationship between them in reference to their co-employees. Thus, the PEO establishes itself as the "employer of record," responsible for administrative functions associated with the employment of co-employees, while the client is established as the "workplace employer," responsible for directing the manner in which co-employees deliver their work efforts, as well as hiring, disciplining, compensating, reviewing, and terminating such co-employees. More specifically, the PEO will:
- Pay wages, employment taxes, and benefits expenses out of its own accounts
- Report, collect, and deposit employment taxes with State and Federal authorities
In addition, the PEO will act as negotiating agent for Burton Décor in order to secure an attractive employee benefit plan, including some or all of the following benefits: medical, dental, life and long-term disability insurance, 401(k) plan, Section 125 cafeteria plan, and employee assistance plan.
By using a PEO, growing companies such as Burton Décor are able to capitalize on economies-of-scale and offer their employees significantly better benefits—typically equal to those of larger corporations, but at a price a smaller firm can afford. This is particularly important when trying to attract the most qualified and talented employees.
The end result is that a PEO removes the majority of employer-related paperwork from Burton Décor's desk, eliminates the time it takes to shop around for benefits packages, and helps reduce Burton Décor's liabilities by assuming and/or sharing some of the liabilities of being an employer.
Application & Expected Effect of Investment
