Online Services Business Plan

8/12/2019 Online Services Business Plan

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Table of Contents

1.0 Executive Summary...............................................................................................................................1

Chart: Highlights..................................................................................................................................1

1.1 Mission................................................................................................................................................0 Com!any Summary...............................................................................................................................

.1 Start"u! Summary..............................................................................................................................

Table: Start"u! #un$ing.......................................................................................................................

Table: Start"u!.....................................................................................................................................%

Chart: Start"u!......................................................................................................................................%. #inancial &is's an$ Contingencies....................................................................................................(

%.0 Services..................................................................................................................................................(%.1 Service )escri!tion............................................................................................................................(

%. #uture Services...................................................................................................................................*(.0 Mar'et +nalysis Summary....................................................................................................................,

(.1 + -rief oo' at the /nternet...............................................................................................................

(. -rief oo' at the Com!uter /n$ustry.................................................................................................(.% Mar'et Segmentation.........................................................................................................................

Table: Mar'et +nalysis........................................................................................................................

Chart: Mar'et +nalysis 2Pie3...............................................................................................................4(.( The 56 /ssue...................................................................................................................................4

(.* Service -usiness +nalysis.................................................................................................................4

*.0 Strategy an$ /m!lementation Summary...............................................................................................10*.1 Sales #orecast...................................................................................................................................1

Chart: Sales by 5ear..........................................................................................................................1

Table: Sales #orecast.........................................................................................................................1

Chart: Sales Monthly.........................................................................................................................1%*. Mar'eting Strategy...........................................................................................................................1%

*.% Pricing Strategy................................................................................................................................1(

*.( 7alue Pro!osition.............................................................................................................................1(



Table of Contents

Chart: 9ross Margin 5early...............................................................................................................0

Table: Profit an$ oss........................................................................................................................1

Chart: Profit Monthly..........................................................................................................................( Proecte$ Cash #lo;........................................................................................................................

Chart: Cash.........................................................................................................................................

Table: Cash #lo;...............................................................................................................................%

................................................................................................................................................................%

.* Proecte$ -alance Sheet...................................................................................................................(Table: -alance Sheet..........................................................................................................................(

., -usiness &atios................................................................................................................................(

Table: &atios......................................................................................................................................*Table: Sales #orecast...................................................................................................................................1

......................................................................................................................................................................1Table: Personnel...........................................................................................................................................

......................................................................................................................................................................Table: 9eneral +ssum!tions........................................................................................................................%

......................................................................................................................................................................%Table: Profit an$ oss..................................................................................................................................(

......................................................................................................................................................................*

Table: Cash #lo;.........................................................................................................................................,

......................................................................................................................................................................,

Table: -alance Sheet....................................................................................................................................



<eb +!!lications= /nc.

*!+ ecutive %ummary

-eb Applications is a start.up company that is designed to offer -eb.based businessmanagement applications! -eb Applications has developed an "nternet.based application called

/nline /ffice 0anager, for which a patent is pending! /nline /ffice 0anager allows businesses

and individuals to keep in touch even when working in different locations! /nline /ffice 0anagerprovides applications which replace the physical office! -ith /nline /ffice 0anager, your office

moves with you at all times, and you have 12.hour access to it! #sers can get /nline /ffice0anager by subscribing to our server on the "nternet!

As with any start.up company, -eb Applications recogni3es its risks! -e are a new companyand as such, we will need to meet market acceptance! To that end, the company is working to

determine trends in the industry, the needs of the customer, and how best to address theneeds of the customer!

-e epect to compete as a thriving company in the computer applications software industry!The software market has long been one of the computer industry4s fastest growing segments!

5evenues for the worldwide software market reached 6*11 billion two years ago, up *78 fromthe year before that, according to estimates by "nternational )ata Corporation '")C(, a market

research firm in 9ramingham, 0assachusetts! 5evenues continued to show robust growth last

year! ")C pro:ects that revenues will grow at a compound annual rate of approimately *18 forthe net several years, surpassing 611+ billion three years from now!

The company is seeking a moderate start.up investment! The company4s revenue pro:ections

for year one are for a *+.fold growth! -eb Applications epects to achieve profitabilitywithin si months of beginning operations!

Chart <ighlights




*!* 0ission

At -eb Applications, our mission is to provide an online office system that links workers indifferent locations to their mother company!

1!+ Company %ummary

-eb Applications, "nc! was established in *==> to provide a -eb.based business application

with features that give users the ability to remain in touch with operations at all times from

anywhere in the world! The company was formed by 0r! Lester Andrews and is a ?eorgiaincorporated %.Corporation!

1!* %tart.up %ummary

%tart.up costs, epenses and funding sources are laid out in the tables and chart below!

Table %tart.up 9unding

Start-up Funding

Start-up Expenses to Fund $60,100Start-up Assets to Fund $57,500Total Funding Required $117,600

Assets

Non-as! Assets "ro# Start-up $5,000as! Require#ents "ro# Start-up $5%,500 Additional as! Raised $0as! &alane on Starting 'ate $5%,500Total Assets $57,500

(ia)ilities and apital




Table %tart.up

Start-up

Require#ents

Start-up Expenses

(egal $500Stationer et2 $300Sales a#paign $5,000

'na#i o##uniations "ees $4,%00+!one (ines $00Rent $00ard*are $%3,500So"t*are $%5,000Total Start-up Expenses $60,100

Start-up Assets

as! Required $5%,500.t!er urrent Assets $5,000(ong-ter# Assets $0Total Assets $57,500

Total Requirements $117,600

Chart %tart.up




1!1 9inancial 5isks and Contingencies

The company recogni3es that it is sub:ect to both market and industry risks! -e believe ourrisks are as follows, and we are addressing each as indicated!

• Start-up company! -e face all the risks associated with being a start.up company! -e

feel that we can overcome these with our eperience in the industry and by $uickly

establishing desired relationships!

• Security! %ecurity is a ma:or issue, but all features provide security options; documents

and directories can be password.protected and have specific, user.only access rights!

@!+ %ervices

-eb Applications has developed an "nternet.based application called /nline /ffice 0anager, forwhich a patent is pending! /nline /ffice 0anager allows businesses and individuals to keep in

touch effectively even with a distance factor! /nline /ffice 0anager provides applications whichreplace the physical office! -ith /nline /ffice 0anager, your office moves with you at all times

and you have 12.hour access to it! #sers can get /nline /ffice 0anager by subscribing to ourserver on the "nternet! There is no need to buy any software or upgraded versions of the

software!

@!* %ervice )escription

Main Features

*! Communication and productivity! This feature will allow you to see who is online within

an organi3ation! /ur communication feature will enable the user to initiate and conduct achat session, and will give them the means to initiate &et0eeting! #sers can send and

receive files directly through the "nternet! )ocuments can also be stored in one centrallocation!




Secondary Features

•

Online bill payments! This service will be name branded from services like Checkfree! "twill allow users to electronically pay bills all in one location!

• Threaded bulletin board! This allows users to leave messages and multiple individuals to

respond, leave their own message, and track the history!

• Package tracking! #sers can view the status of packages that are being shipped with

9ed, #P%, etc!

• Travel planner! -ill allow users to make travel arrangements and get discounts! #sers can

create travel profiles and itineraries online!

• Credit check services! This will allow users to check credit ratings of potential business

partners or vendors!• Conduct surveys! #sers can create a survey and distribute it on the system! 5esponses

can be given and returned to the system where they will be tabulated and maintained!

/nline /ffice 0anager comes in three packages and customers can choose the one with theapplications that best suit their needs!

@!1 9uture %ervices

"n the future, we will implement Phase 1 of our plan! /ur research and development '5B)( willyield innovation with input from customers and the marketplace! ?iven below is a detailed look

at the future applications that will be a part of the Phase 1 program! The biggest and mostcomple application of Phase 1 will be the telephonefa service!

TelephoneFa! services!

A full.blown phone messaging service will be provided, and users can get a number on ourphone network from which they can get messages! The eistence of messages will be indicated

in the user mailbo and the user can play them over the computer 'sound card and speakers

are re$uired(! The same number can also be used to receive faes! 9aes will be received andstored in one central location then placed in the user mailbo The user can then retrieve them




• Eacation re$uest.."ndividuals can re$uest vacation time and managers can approve or

re:ect the re$uest online!

•

-hile you were out application..-ill enable messages to be taken and sent to user4smailbo!

• Account tracking application..9or sales persons, this feature will provide a process for

tracking customer information and competitive opportunities!

• Fob postings..nables people to browse various categories and sub.categories of ads and

submit resumes!

2!+ 0arket Analysis %ummary

-e epect to compete as a thriving company in the computer applications software industry!Applications software are computer programs designed to accomplish user tasks, such as wordprocessing, graphic design, desktop publishing, inventory control, and more! The software

industry consists of three general market segments application solutions, application tools, andsystems software! The software market has long been one of the computer industry4s fastest

growing segments! 5evenues for the worldwide software market reached 6*11 billion in *==G,up about *78 from *==H according to estimates by ")C! 5evenues continued to show robust

growth in *==>! ")C pro:ects that revenues will grow at a compound annual rate ofapproimately *18 for the net several years, surpassing 611+ billion by 1++1!

• Applications software includes programs that perform specific industry or business functions!

The worldwide market for applications software increased to 67H billion in *==G, a *G8 rise

over *==H, and is epected to grow *78 annually through 1++*, to approimately 6=>billion!

• Application tools include data access and retrieval, data management, data manipulation,

and program design and development software! The worldwide application tool software

market grew *@8 in *==G, to 6@* billion! "t should continue to increase *18 to *@8

annually, approaching 67+ billion by 1++1!• %ystem.level software comprises operating systems, operating systems enhancements, and

data center management! The worldwide market for system.level software increased *@8

in *==G, to 6@7!* billion! This figure should eceed 67@ billion by 1++*, based on an **8




2!* A Irief Look at the "nternet

"n :ust five years, the "nternet has undergone a ma:or metamorphosis! 9rom an obscurenetwork used by a limited number of academics and researchers, the "nternet has been

transformed into a global -eb of more than *++ million interconnected computers

encompassing users from all walks of life! )escribed below are the various segments of the"nternet

• #ard$are networking e$uipment! This sector provides the primary infrastructure on which

the "nternet is built! Two prominent types of network e$uipment are routers and remote

access concentrators! Cisco %ystems "nc! with sales of approimately 6=!= billion and amarket share of HG8, dominated the routers market in *==>! Ascend Communications, "nc!

'*==> sales of 6*!2> billion( and Cisco share leadership of the remote access concentratormarket, with shares of approimately 1>8 and 1G8, respectively!

• So%t$are! Two of the main types of "nternet software are browsers and security programs!

0icrosoft Corporation and &etscape Communications Corporation dominate the key software

component of the -orld -ide -eb! The security segments are needed to ensure the safetyof networks and transactions! %ecurity )ynamics Technology "nc! '*==> sales of 62*

million( has taken the lead in providing authentication and encryption products!

• Services! "nternet service providers '"%Ps( offer a way for people to enter the "nternet!

According to ")C, America /nline has approimately 2@8 share of the total subscribers inthe "%P segment, followed by 0icrosoft4s 0%&, and ATBT4s -orld&et!

• Destinations! )estinations are websites that people can go to for information,

entertainment, or commerce!

2!1 Irief Look at the Computer "ndustry

"n the first si months of *==G, a total of @G million personal computers 'PC( were shipped




2!@ 0arket %egmentation

A review of all of our markets is given below

*! Small businesses! According to trends, the "nternet will no longer be :ust a marketingvehicle; it will become the backbone of a company4s business infrastructure! Companies use

the "nternet to set up home pages that describe their products and lines of business! Thisgives them an ecellent medium to raise their profile, advertise products, and recruit

employees!1! &ndividuals! As of year.end *==>, almost *++ million users accessed the "nternet regularly,

up from H= million at the end of *==G, according to ")C! A key factor in the recent growth ofthe "nternet is the popularity of the sub.6*,+++ PC! Computers sold at or below 6*,+++

have appealed to first.time PC users and lower.income families! "n the #nited %tates, lessthan one.third of the population is connected, leaving plenty of room for growth! -hen

consumers are asked why they purchased a PC, the most common answer is to connect tothe "nternet! "ndividual investors have been attracted in growing numbers to the ease and

convenience provided by online investing websites such as JTrade and e%chwab!@! Corporations! <alf of the total number of large #!%! and uropean organi3ations have

developed corporate "ntranets, which use the infrastructure and standards of the "nternet

for internal company networks that link employees! Corporations have discovered that thetechnologies employed by the "nternet, particularly the infrastructure and standards of the-orld -ide -eb, are an inepensive and powerful alternative to other forms of internal

corporate communication!2! Telecommuters! Telecommuting seems to be on a steady growth curve, with

approimately ** million telecommuters in the #!%! today, according to the latest survey

from 9"&)%EP, a research and consulting firm! Telecommuting will continue to growbecause there are fre$uent references to productivity gains in the range of *7.178 for

telecommuters!

Customer 'uying CriteriaCustomers are epected to use our services based on traditional factors




Chart 0arket Analysis 'Pie(

2!2 The K1D "ssue

/ne of the more pressing issues facing the computer industry is the Kear 1+++ problem, alsoreferred to as K1D and the millennium bug! #nless addressed properly, this problem will

cause many computers worldwide to stop functioning properly! K1D arises from the fact thatuntil the mid.*=>+s or so, programmers used two.digit numbers to represent years! 9or

eample, =G was used to represent the year *==G! -hile this design saved computer storagespace, which was epensive and in limited supply, it also produced the situation in which all

dates input in these computers refer to the twentieth century! The ?artner ?roup, aConnecticut.based information technology '"T( consulting firm, estimates the worldwide repair




subscription service provides a large, powerful suite of collaboration and communication tools inone simple, easy.to.use interface accessible anytime, anywhere! 9rom any PC with "nternet

access, <ot/ffice provides instant connection via the -eb to email, calendar, documents,bulletin boards, online conference rooms, business centers, and more!

StrengthsLarge penetration to the main channels! At the time of this writing, they have the first entry to

market! -e plan on taking a significant part of that market share within a few months byproviding additional features that will be more attractive for users!

(eaknesses

• Low.end products! Their products are only aimed at business users! -e offer a product for

personal users as well, and our product with its advanced features will surpass that of<ot/ffice!

• &o programming facilities! Their products have no capabilities for programming!

• /ther companies!

• These companies form a large group of firms that offer one form of the many applications

that we offer! They either speciali3e in selling hard drive space or email functions!

'arriers to Entry-eb Applications will benefit from several significant barriers to entry which include

• )evelopment Team! -e have a development team that is up to date with the latest industry

applications! -ith this team, we feel confident that we will be a dominant player in the

industry and continue to produce and enhance our product with time!

• )iversification! Anyone coming into the market will find it difficult to duplicate what we have

because of our diversification! -e offer a product with multi.dimensional applications!

• 0arket penetration! /nce we are in the market and established, it will be difficult forsomeone to break into a market where someone is already operating successfully!

7 + %trategy and "mplementation %ummary




Small 'usinesses

•

Ietter communication! Iusinesses will be able to set up meetings without incurring travelcosts! /ur products break down the walls that are created by the distance separating teamor group members!

• Alternative for office network! -ith our product and its applications, there will be no need

for businesses to set up office networks or purchase additional hardware!

• Cost effective! "t is cost effective in that only a monthly fee is re$uired, as opposed to huge

amounts of money for set up costs and servers!

Corporate

• %etting up on main branch office! -e will help companies to set up the system and ease the

transition with no delay in ordering e$uipment and daily operations!

• Control sales team activities! /ur product will give those in the sales department the ability

to get $uick approvals and close deals faster!

• &o laptop needed! All user information will be placed online and kept in various

departments! This will eliminate the need to carry laptops when traveling, thus reducing thechance of laptop theft, which is high in airports!

&ndividuals

• liminate need for multiple software packages! All applications needed are in one place and

more can be added per user re$uest, thus eliminating the need of purchasing individualsoftware packages!

• Portable personal information manager 'P"0(! ven as you travel, your own P"0 on the

server will be at work taking messages and putting them in the desired folders! The P"0

becomes a personal secretary keeping you informed of special events!

• &o laptop needed! All user information will be placed online and kept in various

departments! This will eliminate the need to carry laptops when traveling, thus reducing thechance of laptop theft, which is high in airports!




7!* %ales 9orecast

-e are confident that our /nline /ffice 0anager will be eagerly embraced by mobile computerusing businesses and e.commerce businesses! -e are forecasting a *+.fold revenue increase

over the years covered in this plan, as shown in the table and charts below!

Chart %ales by Kear

Table %ales 9orecast




Chart %ales 0onthly

7!1 0arketing %trategy

-e will outsource all marketing operations to )ynamic Communication %olutions because wefeel that they have stability and marketing channels that will be effective for our product!

The message associated with our product is value.added applications! )ynamic Communication

%olutions has identified a brief promotional plan that is diverse and will include a range ofmarketing communications including the few listed below!

• "nternet




7!@ Pricing %trategy

-e plan to set our pricing based on competitors4 pricing! Prices will also be based on marketprices for similar off.the.shelf products! The automatic upgrade and product enhancement

features do not affect the price of any of the services! The figure below shows our tentative

pricing schedule, these are monthly rates! -e will work in con:unction with )ynamicCommunication %olutions to come up with a working pricing schedule! #sers will have three

payment options

• 0onthly!

• %i.month payment!• Kearly!

?old %ilver Iron3e

61=!=7 617!=7 6*1!=7

7!2 Ealue Proposition

-eb Applications offers the following value propositions for customers!

• Collaboration! #sers can work on the same document at the same time from different

locations! Ioth will be able to edit the document and work on the cosmetics simultaneously!This collaboration ability eliminates the need to send the same document back and forth,

saving time for both users!

• Communication! Applications allow all users to keep in touch in real time and make any

necessary business decisions there and then without holding down the other party involved!Communication can be through several different applications that are offered! This allowsfor rapid decision.making, helping managers and sales teams make and close deals with

greater ease! This will also help speed up the approval process when placing orders!




7!7 %trategic Alliances

The company plans to form strategic alliances with )ynamic Communication %olutions, 9or %aleIy "nternet, and a sales company to be announced! The company may develop research

alliances to further refine the product and adapt it to new markets in different industries! Ielow

is an eplanation of key relationships

• Dynamic Communication Solutions! This is a company with over ten years of eperience

in marketing and marketing management! -e will outsource all marketing operations to

)ynamic Communication %olutions because we feel that they have stability and marketing

channels that will be effective for our product! This relationship will eliminate the need todevelop our own marketing team!

• For Sale 'y &nternet! This company develops and manages company websites on a

contract basis! The company is located in Dirkland, -ashington and boasts a -ebmasterwith over seven years eperience in the field! -e will benefit from this relationship by

having an eperienced company handle all design and website management! Also, this will

allow us to focus on developing applications for other industries!

• Sales! -e will outsource all sales operations to a company to be named later!

H!+ 0anagement %ummary

/ur management philosophy is based on responsibility and mutual respect! At -eb

Applications, we have an environment that encourages creativity and achievement! -ebApplications management is highly eperienced and $ualified! "ts key management team

includes 0r! Lester Andrews and 0r! )wight Austin!

H!* 0anagement Team

Mr) *ester "ndre$s - President and CEO




manager for day staff! <e worked closely with the chief operating officer and had an operatingbudget of 6*!1 million!

Table Personnel

Personnel Plan

ear 1 ear % ear 3

(ester Andre*s $34,7 $43,47 $5%,174

'*ig!t Austion $34,7 $43,47 $5%,174

Serie ;anager $%6,076 $3%,60: $34,7

.t!er $0 $46,07 $:5,647Total +eople 3 5 7

Total Payroll $:5,65% $165,65% $%34,73

H!1 /utside %upport

For Sale 'y &nternet - (ebsite Developer

9or %ale Iy "nternet is led by -ebmaster, 0r! Irian Taylor! <aving attended the #niversity of-ashington between *=>@ and *=>G, 0r! Taylor graduated with a Iachelor of %cience degree in

Iusiness Administration B Philosophy in the honors program! Altogether, 0r! Taylor has eightyears of eperience in the planning, creation, and management of website development! <e

started his computer career as a 0icrosoft Contractor at ComputerLand in *=>@! As a PC 5epair

Assistant 0anager, he designed and instigated innovative techni$ues of operation that wouldfurther satisfy the customer! As a %oftware "nstall 0anager for nte, 0r! Taylor managed the

&ew %oftware "nstallation ?roup that consisted of *1 install technicians! 5esponsibilities

included writing and investigating new databases, and operating parameters to speed up install

and delivery time of new PCs! Ietween Fuly, *==2 and )ecember, *==7, 0r! Taylor was a topsalesman for 0icrorim %oftware, selling relational databases and accounting software! <e thenwent on to work for CA5A testing 0icrosoft4s "@+ -eb browser for Fava%cript and EIscript

bugs! 9rom /ctober, *==H to this present day, 0r! Taylor has be a -ebmaster for 9or %ale Iy




G!+ 9inancial Plan

Funding +e,uirements and sesIased on our pro:ections, we feel an investment in our company is a sound investment! "n

order to proceed, we are re$uesting an investment of 6*+*,H++ by Fune, *===! The funds will

be used to purchase e$uipment and to cover initial operating epenses! The 6*+*,H++ will beused to implement Phase * of our operations! /nce the company is in full operation, we will

re$uire an additional capital investment to fund Phase 1 of our operations!

Phase .

-e will be in discussion with developers on the best direction to take and what cost savings wecan achieve! The specific details for Phase 1 are still to be determined, but three ma:or areas

'server, small PI, and business development funds( will re$uire approimately 6@+,+++ byFanuary, 1+++!

E!itPayback Strategy-e can provide an eit for this investment within three years by a dividend of ecess profits!

The increase in profits generated by sales revenue will provide funds to repay the investment!

ConclusionIased on our pro:ections, we feel an investment to -eb Applications is a sound businessinvestment! "n order to proceed, we are re$uesting an investment of 6*+*,H++ as soon as

possible!




G!* Ireak.even Analysis

-ith average first year fied monthly costs and an average margin as shown below, -ebApplications calculates it will break even at the sales volume presented in the table and chart!

The company management plans to reach such level by the end of 1+++!

Chart Ireak.even Analysis

Table Ireak.even Analysis




G!1 "mportant Assumptions

The following chart contains assumptions important to the success of the company!

Table ?eneral Assumptions

General Assumptions

ear 1 ear % ear 3

+lan ;ont! 1 % 3

urrent nterest Rate 102009 102009 102009(ong-ter# nterest Rate 102009 102009 102009

Tax Rate %524%9 %52009 %524%9

Other 0 0 0

G!@ Pro:ected Profit and Loss

The pro:ected income statement for -eb Applications is shown below! The company is basing

its revenue pro:ections on anticipated sales of products!

Chart Profit Kearly




Chart ?ross 0argin 0onthly

Chart ?ross 0argin Kearly




Table Profit and Loss

Pro Forma Profit and Loss

ear 1 ear % ear 3

Sales $%00,000 $1,500,000 $%,%00,000

'iret ost o" Sales $100,000 $300,000 $400,000

.t!er $5,000 $10,000 $15,000

Total ost o" Sales $105,000 $310,000 $415,000

8ross ;argin $:5,000 $1,1:0,000 $1,75,000

8ross ;argin 9 472509 7:2339 12149

Expenses

+aroll $:5,65% $165,65% $%34,73

Sales and ;ar<eting and .t!er Expenses $%3,400 $47,000 $0,000

'epreiation $0 $0 $0

Resear! and 'eelop#ent $15,000 $%5,000 $40,000

?tilities $600 $00 $1,000

nsurane $600 $00 $1,000Rent $%,400 $3,000 $5,000

+aroll Taxes $14,34 $%4,4 $35,%17

.t!er $0 $0 $0

Total .perating Expenses $15%,000 $%67,100 $3:7,000

+ro"it &e"ore nterest and Taxes $57,000/ $:%%,:00 $1,3,000

E&T'A $57,000/ $:%%,:00 $1,3,000

nterest Expense $0 $0 $0

Taxes nurred $0 $%30,7%5 $35%,73

Net +ro"it $57,000/ $6:%,175 $1,035,%16

et Profit!Sales -%2509 462159 472069




Chart Profit 0onthly

G!2 Pro:ected Cash 9low

The cash flow statement can be found in the chart and table below!

Chart Cash




Table Cash 9low

Pro Forma Cash Flo

ear 1 ear % ear 3

as! Reeied

as! "ro# .perations

as! Sales $50,000 $375,000 $550,000

as! "ro# Reeia)les $1%0,500 $:33,%50 $1,546,750

Su)total as! "ro# .perations $170,500 $1,30,%50 $%,0:6,750

Additional as! Reeied

Sales Tax, >AT, ST@8ST Reeied $0 $0 $0

Ne* urrent &orro*ing $0 $0 $0

Ne* .t!er (ia)ilities interest-"ree/ $0 $0 $0

Ne* (ong-ter# (ia)ilities $0 $0 $0

Sales o" .t!er urrent Assets $0 $0 $0

Sales o" (ong-ter# Assets $0 $0 $0

Ne* nest#ent Reeied $36,000 $0 $0

Su)total as! Reeied $%06,500 $1,30,%50 $%,0:6,750

Expenditures ear 1 ear % ear 3

Expenditures "ro# .perations

as! Spending $:5,65% $165,65% $%34,73

&ill +a#ents $147,56% $604,177 $:06,344

Su)total Spent on .perations $%43,%14 $76:,%: $1,141,1%7

Additional as! Spent

Sales Tax, >AT, ST@8ST +aid .ut $0 $0 $0+rinipal Repa#ent o" urrent &orro*ing $0 $0 $0

.t!er (ia)ilities +rinipal Repa#ent $0 $0 $0

(ong-ter# (ia)ilities +rinipal Repa#ent $0 $0 $0

+ur!ase .t!er urrent Assets $0 $0 $0




G!7 Pro:ected Ialance %heet

The pro:ected balance sheet is provided below!

Table Ialance %heet

Pro Forma Balance Sheet

ear 1 ear % ear 3

Assets

urrent Assets

as! $5,76 $544,%07 $1,4::,30

Aounts Reeia)le $%:,500 $%%1,%50 $3%4,500

.t!er urrent Assets $5,000 $5,000 $5,000

Total urrent Assets $40,%6 $770,457 $1,%:,330

(ong-ter# Assets

(ong-ter# Assets $10,000 $10,000 $10,000

Au#ulated 'epreiation $0 $0 $0

Total (ong-ter# Assets $10,000 $10,000 $10,000

Total Assets $50,%6 $70,457 $1,3:,330

(ia)ilities and apital ear 1 ear % ear 3

urrent (ia)ilities

Aounts +aa)le $14,76 $5%,71 $76,43

urrent &orro*ing $0 $0 $0

.t!er urrent (ia)ilities $0 $0 $0Su)total urrent (ia)ilities $14,76 $5%,71 $76,43

(ong-ter# (ia)ilities $0 $0 $0

Total (ia)ilities $14 76 $5% 71 $76 43




Table 5atios

!atio Analysis

ear 1 ear % ear 3 ndustr +ro"ile

Sales 8ro*t! n2a2 6502009 462679 102409

+erent o" Total Assets

Aounts Reeia)le 52669 %2359 172649 %42109

.t!er urrent Assets :2:49 02649 02%79 4%2:09

Total urrent Assets 02119 :27%9 ::2469 712109

(ong-ter# Assets 1:2:9 12%9 02549 %2:09

Total Assets 1002009 1002009 1002009 1002009

urrent (ia)ilities %:2409 62769 42169 47209

(ong-ter# (ia)ilities 02009 02009 02009 1:2109

Total (ia)ilities %:2409 62769 42169 662:09

Net ort! 702609 :32%49 :5249 332109

+erent o" Sales

Sales 1002009 1002009 1002009 1002009

8ross ;argin 472509 7:2339 12149 02009Selling, 8eneral B Ad#inistratie Expenses 762009 3321:9 332%9 %2109

Adertising Expenses :2009 %2679 3219 12%09

+ro"it &e"ore nterest and Taxes -%2509 612539 6320:9 %2009

;ain Ratios

urrent %27% 14260 %32:3 1230

Cui< %27% 14260 %32:3 1203

Total 'e)t to Total Assets %:2409 62769 42169 662:09

+re-tax Return on Net ort! -1602569 1%6239 72739 32109

+re-tax Return on Assets -1132359 112%59 752469 :2309

Additional Ratios ear 1 ear % ear 3

Net +ro"it ;argin -%2509 462159 472069 n2a




Di$idend Payout 0200 0200 0200 n2a



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Table %ales 9orecast

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales

Online Office Manager 0% $5,000 $10,000 $10,000 $15,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $5,000 $10,000 $10,000 $15,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

irect !ost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Online Office Manager $2,500 $5,000 $5,000 $7,500 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $2,500 $5,000 $5,000 $7,500 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

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Table Personnel

Personnel Plan


"ester #nres 0% $2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899

ight #&stion 0% $2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899 $ 2,899Ser'ice Manager 0% $2,173 $2,173 $2,173 $2,173 $2,173 $2,173 $2,173 $2,173 $2,173 $2,173 $2,173 $2,173

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total (eo)le 3 3 3 3 3 3 3 3 3 3 3 3

Total Payroll $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971

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Table ?eneral Assumptions

General Assumptions


(lan Month 1 2 3 4 5 6 7 8 9 10 11 12

!&rrent *nterest +ate 1000% 1000% 1000% 1000% 1000% 1000% 1000% 1000% 1000% 1000% 1000% 1000%

"on g-ter. *nte rest +ate 10 00% 10 00% 1 000% 1 000% 10 00% 10 00% 100 0% 100 0% 1000 % 1000 % 1000% 1 000%

Ta/ +ate 3000% 2500% 2500% 2500% 2500% 2500% 2500% 2500% 2500% 2500% 2500% 2500%

Other 0 0 0 0 0 0 0 0 0 0 0 0

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Table Profit and Loss

Pro Forma Profit and Loss


Sales $5,000 $10,000 $10,000 $15,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

irect !ost of Sales $2,500 $5,000 $5,000 $7,500 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Other $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $600

Total !ost of Sales $2,900 $5,400 $5,400 $7,900 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,400 $10,600

ross Margin $2,100 $4,600 $4,600 $ 7,100 $9,600 $ 9,600 $9,600 $9,600 $9,600 $9,600 $9,600 $9,400

ross Margin % 4200% 4600% 4600% 4733% 4800% 4800% 4800% 4800% 4800% 4800% 4800% 4700%

/)enses

(aroll $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971

Sales an Mareting an Other/)enses

$1,950 $1,950 $1,950 $1,950 $1,950 $1,950 $1,950 $1,950 $1,950 $1,950 $1,950 $1,950

e)reciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

+e searc h an e' el o).en t $1 ,25 0 $1,250 $1 ,25 0 $ 1,250 $1 ,25 0 $ 1,250 $1 ,250 $ 1,250 $1 ,250 $ 1,250 $1, 250 $1 ,250

tilities $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50

*ns&rance $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50

+ent $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

(aroll Ta/es 15% $1,196 $1,196 $1,196 $1,196 $1,196 $1,196 $1,196 $1,196 $1,196 $1,196 $1,196 $1,196

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total O)erati ng /)e nses $12 ,66 7 $1 2,667 $12 ,667 $1 2,667 $12 ,667 $1 2,667 $12 ,667 $1 2,667 $12,667 $12 ,667 $12,667 $12 ,667

(rofit efore *nterest an Ta/es $10,567 $8,067 $8,067 $5,567 $3,067 $3,067 $3,067 $3,067 $3,067 $3,067 $3,067 $3,267

*T# $10,567 $8,067 $8,067 $5,567 $3,067 $3,067 $3,067 $3,067 $3,067 $3,067 $3,067 $3,267

*nterest /)ense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Ta/es *nc&rre $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

et (rofit $10,567 $8,067 $8,067 $5,567 $3,067 $3,067 $3,067 $3,067 $3,067 $3,067 $3,067 $3,267

Net Profit/Sales -21133% -8067% -8067% -3711% -1533% -1533% -1533% -1533% -1533% -1533% -1533% -1633%

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Table Cash 9low

Pro Forma Cash Flow


!ash +ecei'e

!ash fro. O)erations

!ash Sales $1,250 $2,500 $2,500 $3,750 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

!ash fro. +ecei'ales $0 $125 $3,875 $7,500 $7,625 $ 11,375 $15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000

S&total !ash fro. O)erations $1,250 $2,625 $6,375 $11,250 $12,625 $16,375 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

#itional !ash +ecei'e

Sales Ta/, :#T, ;ST<ST +ecei'e 000% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

e !&rrent orroing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

e Other "iailities interest-free $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

e "ong-ter. "iailities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other !&rrent #ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of "ong-ter. #ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

e *n'est.ent +ecei'e $0 $0 $0 $0 $0 $6,000 $0 $30,000 $0 $0 $0 $0

S&total !ash +ecei'e $1,250 $2,625 $6,375 $11,250 $12,625 $22,375 $20,000 $50,000 $20,000 $20,000 $20,000 $20,000

/)enit&res Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

/)enit&res fro. O)erations

!ash S)ening $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971 $7,971

ill (a.ents $1,253 $7,679 $10,096 $10,179 $12,679 $15,096 $15,096 $15,096 $15,096 $15,096 $15,096 $15,102

S&total S)ent on O)erations $9,224 $15,650 $18,067 $18,150 $20,650 $23,067 $23,067 $23,067 $23,067 $23,067 $23,067 $23,073

#itional !ash S)ent

Sales Ta/, :#T, ;ST<ST (ai O&t $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

(rinci)al +e)a.ent of !&rrent orroing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other "iailities (rinci)al +e)a.ent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

"ong-ter. "iailities (rinci)al +e)a.ent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0(&rchase Other !&rrent #ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

(&rchase "ong-ter. #ssets $0 $0 $0 $0 $0 $0 $0 $10,000 $0 $0 $0 $0

i'iens $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

S&total !ash S)ent $9,224 $15,650 $18,067 $18,150 $20,650 $23,067 $23,067 $33,067 $23,067 $23,067 $23,067 $23,073

et !ash =lo $7,974 $13,025 $11,692 $6,900 $8,025 $692 $3,067 $16,933 $3,067 $3,067 $3,067 $3,073

Cash Balance $44,526 $31,501 $19,809 $12,909 $4,884 $4,193 $1,126 $18,059 $14,993 $11,926 $8,859 $5,786

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Table Ialance %heet

Pro Forma Balance Sheet


#ssets Starting alances

!&rrent #ssets

!ash $52,500 $44,526 $31,501 $19,809 $12,909 $4,884 $4,193 $1,126 $18,059 $14,993 $11,926 $8,859 $5,786

#cco&nts +ecei'ale $0 $3,750 $ 11,125 $ 14,750 $ 18,500 $ 25,875 $ 29,500 $ 29,500 $ 29,500 $ 29,500 $ 29,500 $ 29,500 $ 29,500

Other !& rrent #s sets $ 5,000 $5,000 $ 5,000 $5,000 $5 ,000 $5,000 $5,00 0 $5,0 00 $5 ,000 $5,000 $5,00 0 $5,0 00 $5 ,000

Total !&rrent #s sets $5 7,500 $ 53,276 $4 7,626 $ 39,5 59 $36 ,409 $ 35,759 $38,69 3 $35,6 26 $52 ,559 $ 49,493 $46,42 6 $43,3 59 $40 ,286

"ong-ter. #ssets

"ong-ter. #ssets $0 $0 $0 $0 $0 $0 $0 $0 $10,000 $10,000 $10,000 $10,000 $10,000

#cc&.&late e)reciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total "ong-ter. #ssets $0 $0 $0 $0 $0 $0 $0 $0 $10,000 $10,000 $10,000 $10,000 $10,000

Total #ssets $57,500 $ 53,276 $ 47,626 $ 39,559 $ 36,409 $ 35,759 $ 38,693 $ 35,626 $ 62,559 $ 59,493 $ 56,426 $ 53,359 $ 50,286

"iailities an !a)ital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

!&rrent "iailities

#cco&nts (aale $1,000 $7,342 $9,759 $9,759 $ 12,176 $ 14,592 $ 14,592 $ 14,592 $ 14,592 $ 14,592 $ 14,592 $ 14,592 $ 14,786

!&rrent orroing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other !&rrent "iailities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

S & to ta l !& rr en t " ia il it ies $ 1, 00 0 $ 7, 34 2 $ 9, 75 9 $ 9, 75 9 $ 12 ,1 76 $ 14 ,5 92 $ 14 ,5 92 $ 14 ,5 92 $ 14 ,5 92 $ 14 ,5 92 $ 14 ,5 92 $ 14 ,5 92 $ 14 ,7 86

"ong-ter. "iailities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total "iailities $1,000 $7,342 $9,759 $9,759 $12,176 $14,592 $14,592 $14,592 $14,592 $14,592 $14,592 $14,592 $14,786

(ai-i n !a) ital $11 6,600 $ 116, 600 $ 116 ,600 $ 116,6 00 $ 116 ,600 $ 11 6,600 $ 122,60 0 $122,6 00 $ 152 ,600 $ 15 2,600 $ 152,60 0 $152,6 00 $ 152 ,600

+etaine arnings $60,100 $60,100 $60,100 $60,100 $60,100 $60,100 $60,100 $60,100 $60,100 $60,100 $60,100 $60,100 $60,100

arnings $0 $10,567 $18,633 $26,700 $32,267 $35,333 $38,400 $41,467 $44,533 $47,600 $50,667 $53,733 $57,000

Total !a)ital $56,500 $ 45,933 $ 37,867 $ 29,800 $ 24,233 $ 21,167 $ 24,100 $ 21,033 $ 47,967 $ 44,900 $ 41,833 $ 38,767 $ 35,500

Total " iai li ties an !a)ital $57,500 $53,276 $47,626 $39,559 $36,409 $35,759 $38,693 $35,626 $62,559 $59,493 $56,426 $53,359 $50,286

Net Worth $56,500 $45,933 $37,867 $29,800 $24,233 $21,167 $24,100 $21,033 $47,967 $44,900 $41,833 $38,767 $35,500

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Online Services Business Plan

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