eK-12 Business Plan Presentation

RyanJaeger

AmandaKlein

AndySorenson

Results Learning

eK-12

Robert Schmaltz

PeterMeyers

Results LearningeK-12

AGENDAThe Problem &

Opportunity

Marketing & Sales

Competition

Strategic Partnerships

Timeline

Financial Overview

Management & Ops

Assumptions

THE PROBLEM & OPPORTUNITY


The Spend and Results


Standardized Testing

Also, the US has fallen to 30th place in reading and math*Source: Harvard Business Review

Pro-fi-

cient26%Non-Pro-

ficient74%

*Math

Proficient21%

Non-Proficient

79%

*Science

Pro-fi-

cient48%

Non- Pro-ficient52%

*Reading


What If?

Metrically-based continuous

improvement

Modernize curriculum

delivery Assess through technology


To develop an interactive software curriculum delivery,

assessment, and data system for:

Kindergarten through 12 grade

Private, public and charter schools

eK-12Results Learning


Business Results

Educational transformation through:

Continuous curriculum and classroom improvements

Individual learning plans No limits learning Organic data reporting

resource Curriculum partnership


Business Methodology

DeliveryAssessme

ntsDataD A D

Delivered through Momentum

YesterdayTomorrow

Today

Momentum

Momentum


Delivery System


Achievement Unlocked

A -500 points

B - 450 points

C - 400 points

D – 350 points

F – 300 points

7:11 PMiPad

Momentum

Calendar

Mail Safari

7:11 PMiPad

Momentum

Calendar

Mail Safari

Momentum Login

Thanks for returning Andy!

OKCancel

Andrew Sorenson – 6th GradeHome Classes

6001-8 Homeroom

6040-1 Science

6010-2 Language Arts

6050-4 Health

6065-2 Industrial Tech

6040-1 Social Studies

7:11 PMiPad

6101-8 French

6025-3 Math

Home

Andrew SorensonSign OutMy Account

12,085M

Recent Activities

Mathematics Course 2Last Played 9/10/2012

Language Arts ReaderLast Played 9/9/2012

620/800M

31/40

78% complete

View Activity

430/1000

M

24/50

48% complete

View Activity

Amanda Klein

Peter Meyers Robert Schmaltz

18,150

M 13,830M 8,990M

Share 2 classes

Share French Share 3 classes


6001-8 Homeroom

6025-3 Math

6040-1 Science


6050-4 Health



7:11 PMiPad

6101-8 French

Unit 2

Geometry Review

Story Problems – Fixed Costs vs Variable Costs

Converting Units

Home

Read Text

Watch Video

Examples

Do Problems

Andrew Sorenson – 6th GradeHome 6025-3 Math

Unit 2

Converting Units

Geometry Review

Story Problems

7:11 PMiPad

Home

Read Text Return

Aa

Page 214 of 550

17/25 17 to 2517:25

Sometimes a ratio can be simplified. To simplify a ratio, first write it in a fraction form and then simply the fraction. To compare ratios, write them as fractions with common denominators, then compare the numerators.

In basketball practice, Kathlene made 17 baskets in 25 attempts. She compared the number of baskets she made by using the ratio 17/25. A ratio is a comparison of two quantities by division.

Kathlene can write her ratio of baskets made to attempts in three different ways:

Word Properties

ra-tio [rey-shoh, -shee-oh] noun, plural ra-tios

1. the relation between two similar magnitudes with respect to the number of times the first contains the second

2. proportional relation; rate: the ratio between acceptances and rejections

Examples FindDefinition


Unit 2

Converting Units

Geometry Review

Story Problems

7:11 PMiPad

Home

Watch Videos Return


Unit 2

Converting Units

Geometry Review

Story Problems

7:11 PMiPad

Home

Examples Return

Example 1.1

Tell me about this


6001-8 Homeroom

6040-1 Science


6050-4 Health



7:11 PMiPad

6101-8 French

6025-3 Math

Home


12,085M

Recent Activities

Mathematics Course 2Last Played 11/1/2012

Language Arts ReaderLast Played 9/9/2012

620/800M

31/40

78% complete

View Activity

430/1000

M

24/50

48% complete

View Activity

Ryan Jaeger12,15

0M

Share 2 classes


13,830

M 8,990M



6001-8 Homeroom

6040-1 Science


6050-4 Health



7:11 PMiPad

6101-8 French

6025-3 Math

Home


12,085M

Compare Activity Ryan Jaeger

Mathematics Course 2

Language Arts Reader

620/800M

31/40

78% complete

Compare Achievements

430/1000

M

24/50

48% complete

Compare Achievements

650/1000

M

32/50

65% complete

560/800M

28/40

70% complete

Ryan J Andy S

Ryan Jaeger12,15

0M

Share 2 classes


13,830

M 8,990M


MOMENTUM

Entry Screen

(Momentum

Assessment)

Program Start

Single ID Sign On

Email Calendar Assessme

nt

Social Reporting Assessme

nt

Assessment Tool

Email

Calendar

Social

ReportsRead

Video

Examples

Assessment

ReadVideo

Assessment

Examples

Momentum

Database

MARKETING & SALES


The Market

Education, the future of tomorrow

Hundreds of Curriculum Providers

*132,183 Elementary/Secondary Schools in the US

Constant

Change

Government funded

*National Center for Education Statistics


The MarketCharacteristics:

Ages 23-55 Value education Responsible Social Not desk bound Busy Seekers of new

methods

Administrators

Teachers Media Specialists

School Board


Momentum StakeholdersAn individualized learning platform

Students

Single login for all systemsParents

Assessment methodologyEducators

Data offerings that measure curriculum effectiveness Content Providers


Points of Differentiation

Technology & Data

Supported Curriculums

Solution to Bridge the

Gap

Customization

Accessibility



Marketing ActivitiesOffline ActivitiesShows FETC, January 28-31, 2013

TCEA, February 4-8, 2013

ISTE, June 23-26, 2013 MEMO Fall Conference,

October 2013 TIES Education Technology

Conference, December 9-11, 2013

MembershipsMEMO (Minnesota Education Media Organization)

Online Activities Web site Social media Whitepapers Webinars Email campaigns


Relationship basedSales cycle5 business owners will sell

Sales

New classroom products are considered at any point in the year. Especially when the outcome…

Benefits Students | Improves Test Scores | Easy to Use | Efficiencies


Targeted School Systems

COMPETITION


Competitors

STRATEGIC PARTNERSHIPS

Strategic Partnerships

Our strategic partnership will operate in such a way that each party will mutually benefit in the

relationship.


Microsoft Bizspark

Education Curriculum Providers

Selective Hardware Suppliers5% distributor

discount/neutral cost

eK-12 TIMELINE


eK-12 Timeline

Year 1 Software “Momentum” developmentStart Pilot Program

Year 2 Analyze current pilot program

and make necessary changes Expand to Minnetonka and Edina

Year 3 First year of profit Money focused towards expand to

Eden Prairie, Eagan & Breck Increase production capacity

Year 5 12+ schools active with

Momentum High level of awareness due to

marketing, sales and word of mouth

Operational efficiencies = lower operating costs

Year 4 Leverage data Original sunk costs have been

absorbed 3+ schools added to the revenue

streams

2 3 4 51

MANAGEMENT


Business Structure

Peter Meyers, President

Andy Sorenson, VP Operations

Amanda Klein, VP Sales & Marketing

Ryan Jaeger, VP Finance

Robert Schmaltz, VP Technology



Operations

eK-12 36th West Main

Street, Waconia, MN


Stage Gate Process

Gate 1

Project Initiation• Customer needs

identified and formation of project plan

• Team assembled (including customer representation)

Gate 2

Concept Definition• Product specification

identified through team brainstorming sessions

• Key dates & deliverables laid out and finalize project timeline

Gate 3

Product Design• Programming

phase (Initial build/bug investigation)

• Test plan identification and development

Pre-Production /Pilot Run• Test plan completed• Dry run data

migration and on-site pilot run

Product Launch• Customized

Momentum platform loaded on hardware and delivered to customer

• Physical on-site installation/training/implementation period

Gate 4

Gate 5

Project Audit• Review of

lessons learned for future projects

• Project financial review and audit

Gate 6

ASSUMPTIONS


Assumptions

1. One school class = 750 students

2. Year/Schools: Yr. 1/1, Yr. 2/+2, Yr. 3/+3, Yr. 4/+3, Yr.

5/+3

3. Price of Momentum per student is $15. This price

will increase 10% in year two and 25% in year three

4. 5% mark up on hardware bought through eK-12

5. $7/Month for device training and repair

6. Multiple revenue streams (hardware and service)

FINANCIAL OVERVIEW

Results LearningeK-12$ Years one & two are development years

(loss)

Year three (profit)

Year four have 6-9 months of liquidity

Two major upgrades

2013 ($294,578)

2015 ($230,020)

Financials


Financials-Ratios

Ratio Calculation

Gross Margin

42-46%

Net Profit Margin

25-27%


Startup Funding-Overview

Business Startup Costs

Business Startup Year 2013

Facility Improvements

$ 31,710

Equipment $ 160,140 Computers $ 53,500 Marketing $ 26,028 Services $ 17,000 Phones $ 1,200 Miscellaneous $ 5,000 Total Startup Costs $ 294,578



Year 2013 2014 2015 2016 2017

Sales $111,600 $1,114,875

$3,274,331 $5,251,406 $6,716,250

Gross Profit $78,000 $440,625 $1,379,606 $2,449,481 $3,121,875

Expenses $580,996 $619,295 $1,015,913 $1,055,336 $1,279,097

People $349,956 $362,204 $642,000 $697,835 $900,891

Net Profit ($502,996) ($178,670) $272,770 $1,045,609 $1,382,084


Financials-Risk Mitigation (Monthly)

Year 2013 2014 2015 2016 2017Monthly Operating Expense

$43,013.08 $43,686.92

$73,629.83 $79,368.58 $99,271.58

Monthly Loan Payments

$4,775.25 $13,441.58

$13,441.58 $13,441.58 $4,775.25

Total Monthly Operating Expense

$47,788.33 $57,128.50

$87,071.42 $92,810.17 $104,046.83

Year End Cash Balance

$42,124 $721,773 $2,724,585 $6,904,108 $12,492,859

Months of Liquidity

.88 12.63 31.29 74.39 120.07


Financials

What's in it for you?Low risk

15% payback annually$61,987.76 Total Payout

25% ROI

Results Learning

eK-12

eK-12 Business Plan Presentation

Education

Transcript of eK-12 Business Plan Presentation