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Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
Wow vo ip company
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Wow vo ip company

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  • 1. 1of28 WOW Business Plan World Online Wireless (WOW) Strategic Business and Marketing Plan All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 2. 2of28 WOW Business Plan The information in this document is confidential and is to be only read by authorized parties. Please refer to the confidentiality agreement for further details. This business plan is not an offering for securities. Confidentiality Agreement The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of or an authorized agent of World Online Wireless. It is acknowledged by the reader that information furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, and may cause serious harm or damage to aforementioned parties. This business plan is not to be copied or reproduced by any means without the sole written consent of an authorized agent of World Online Wireless . Upon request, this document is to be immediately returned. __________________________________ Signature _______________ Date _______________________________ Name (typed or printed) All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 3. 3of28 WOW Business Plan Table of Contents 1. Confidentiality Agreement................................................................................2 2. Table of Content................................................................................................3 3. Executive Summary...........................................................................................4 4. Company and Financing Summary....................................................................7 5. Product and Services..........................................................................................9 6. Strategic and Market Analysis..........................................................................10 7. Marketing Plan..................................................................................................12 8. Organization Plan and Personnel Summary.....................................................14 9. Financial Plan...................................................................................................16 All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 4. 4of28 WOW Business Plan 1.0 Executive Summary The purpose of this business plan is to raise $100,000 for the development of a voice over internet protocol (VoIP) product sales and services while showcasing the expected financials and operations over the next three years. TwinLight Dubai (a UAE based company) plans to open a VoIP company in Africa with Nigeria the starting point owing to the comparative advantage of population and nationality of the owner. Golden TwinLight International LTD as a sister company owned by the same owner will be the parent company for WOW (“the Company”) is a Nigeria based subsidiary that will provide sales and services customers in its targeted market. The Company will be registered with and licensed by the National Communication Commission (NCC) in 2011 by Annan Lukman Oyebode. 1.1 The Products and Services The business will generate revenue among two primary revenue streams: the sales of call units and fees from IPBX services. The Company intends to provide VoIP service to private users as well as small and medium sized businesses throughout the target market. The Company will also generate revenues from the ongoing sale of VoIP boxes, router and roaming service. Mr. Lukman is currently sourcing a number of major VoIP boxes and router sellers that will sell to WOW at a comparatively good price. The Company, through its VoIP services, will provide customers with many ancillary features including auto attendants, call queues, and conference bridges. The third section of the business plan will further describe the services offered by WOW. 1.2 Financing Mr. Lukman is seeking to raise $100,000 from investors as equity fund. The shares rate and equity agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 5 year equity fund and a buy back after the duration of the agreement. The financing will be used for the following: • • • Development of the Company’s office location. Financing for the first one year of operation. Capital to purchase a company vehicle and the initial inventory of VoIP products. Mr. Lukman will contribute $20,000 to the venture. All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 5. 5of28 1.3 Mission Statement WOW Business Plan WOW will strive to become recognized as the most progressive enterprise in the VoIP communications business in Africa. The Company will offer customers cost effective phone systems and VoIP services for both private and commercial enterprises. 1.4 Management Team The Company is founded by Lukman Oyebode. Mr. Lukman has more than 4 years of experience in the VoIP and online marketing sectors. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations. 1.5 Sales Forecasts Mr. Lukman expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years. Proform a Profit and Loss (Yearly) Year 2012 Sales $2,925,000 $4,387,500 Operating Costs $103,325 $127,904 $163,609 EBITDA $871,675 $1,334,596 $2,030,141 Taxes, Interest, and Depreciation $313,598 $475,620 $719,061 Net Profit $558,077 $858,976 $1,311,081 2013 2014 $6,581,250 Sales, Operating Costs, and Profit Forecast $7,000,000 $6,000,000 $5,000,000 $4,000,000 Sales EBITDA $3,000,000 Net Profit $2,000,000 $1,000,000 $0 2012 2013 2014 Year All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 6. 6of28 1.6 Expansion Plan WOW Business Plan The Founder expects that the business will aggressively expand nationally and continentally during the first three years of operation in accordance with the phases below. Mr. Lukman intends to implement marketing campaigns that will effectively target individuals, small businesses, and medium sized businesses within the target market. Phase 1: Online shop and calling card loading Phase 2: International roaming and IPBX services Phase 3: VOD/IPVT Phase 4: Improvement and Value Added Services (VAS) Phase 5: Generate revenue from external advertisement on the company dialer etc. All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 7. 7of28 WOW Business Plan 2.0 Company and Financing Summary 2.1 Registered Name and Corporate Structure WOW, The Company will first be registered and licensed as a subsidiary communication company with the NCC in the Federal Republic of Nigeria and then branched all over Africa. 2.2 Required Funds At this time, the WOWcom requires $100,000 of equity funds. Below is a breakdown of how these funds will be used: Projected Startup Costs Business Startup Year 2012 Initial Lease Payments and Deposits Working Capital $2,000 $38,500 FF&E $2,500 Leasehold Improvements $1,000 Voice Traf fic Deposits $10,000 Insurance $2,000 VoIP Soft Sw itch, Dialers and Modules $50,000 Company Vehicle $10,000 Miscellaneous and Unf oreseen Costs $4,000 Total Startup Costs $120,000 Use of Funds 8% 3% 2% 32% Initial Lease Payments and Deposits Working Capital FF&E Leasehold Improvements Voice Traffic Deposits Insurance VoIP Soft Sw itch, Dialers and Modules Company Vehicle Miscellaneous and Unforeseen Costs 42% 2% 8% 1% 2% All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 8. 8of28 2.3 Investor Equity and Management Equity WOW Business Plan The equity share between the investor and the management shall be discussed in the cause of preparing agreement between both parties. This will include the percentage holding, as well as profit sharing. 2.5 Exit Strategy Normal Exit: The project starts generating profit in the first year of operations and positive cash flow appears in the same year. It means that once spent, money can be fully recovered by investors. This creates very good chances for the initial shareholders to sell their participation at a very good price for other investors. 2. Project Failure: The total cost of the initial inventory is $50,000, with no depreciation but upgrade. The market value of the assets differs type by type. The electronic equipment can be sold at least for 90% of book value, while market price of furniture can be around 70%. As a summary, we estimate that the investors could collect 50-100% of their initial investments, if they suddenly decide to sell everything. If the exit of investors was made due to unexpected causes (irrelevant from the project results) before the end of 2012, 10% share will be required. All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 9. 9of28 WOW Business Plan 3.0 Products and Services Below is a description of the products and services offered by WOW. 3.1 Sales of Call Unit through Online Shop or Calling Card A substantial amount of the Company’s gross income will come from the sale of call unit over PC and mobile VoIP. Management expects that at the onset of operations, approximately 100% of the Company’s revenues will come from the sale of these units. 3.2 VoIP Phone Installation and Service The business will maintain an expansive inventory of VoIP boxes, routers, and PBX systems (Private Branch Exchanges used in business operations). Management expects that the installation and management of voice over internet protocol phone services will flourish as the technology becomes more refined. This area is expected to grow rapidly over the next five years as more and more businesses and homes integrate Voice over Internet Protocol (VoIP) technology. This technology is synchronous with internal wireless internet infrastructures, and Management recognizes the sizable opportunity from these technological developments. WOW will generate substantial revenues from the ongoing monthly sale of VoIP services. 3.3 Video On Demand (VOD)/Internet Protocol Television (IPTV) As internet becomes cheaper and widely available, WOW plans to roll out this service to the market. However, it will be of importance to mention that this requires a separate planning and research so that the service will be a success. All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 10. 10of28 WOW Business Plan 4.0 Strategic and Market Analysis 4.1 Economic Outlook This section of the analysis will detail the economic climate, the VoIP and telecommunications industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in Nigeria is getting better. However, the cost of making calls is one of the highest in the world with an increase in the cost of living. Hence, private and businesses are seeking ways to reduce their monthly expenditures. WOW, through its products and services, can effectively reduce the costs associated with monthly telecommunications services by more than 50%. 4.2 Industry Analysis Over the next ten to fifteen years, it is expected that this new technology will completely negate standard telephone lines. However, there are certain drawbacks from both an operating and a regulatory standpoint. VoIP phone calls must be made over internet which is not easily accessible. Nonetheless, conventional telephone companies are beginning to offer mobile internet service at a relatively cheap rates while WIFI is spreading to more locations. Additionally, there is no regulation regarding the VoIP industry in Nigeria. It is difficult to determine the future regulations and taxes that will be associated with the VoIP telecommunications industry. The telecommunications industry is one of the largest industries in today’s global economy. In Nigeria, the industry which is the third largest contributor to the gross domestic products (8.2%) generates more than $8.6 billion (2010) dollars a year of revenue. This translates to a 6.7 percent year-on-year increase. Additionally, over seventy million subscribers are currently using mobile phone. 4.3 Customer Profile The Company will have two primary customer bases: commercial enterprises and private. The second customer base, private, is of special importance to the business as this segment of the market will generate the most income for the business. Among these customers, Management has outlined the following demographics of private that will use the Company’s services and products: • • • • Has a basic internet knowledge. Is using a smart phone or computer on which to download the dialer. Is seeking to spend $5 to $50 per month on phone calls. Will require one to three individual phone lines. All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 11. 11of28 • Annual household income of approximately $5,000 WOW Business Plan Among businesses, Mr. Lukman has laid out the following demographics among people that are expected to switch to VoIP phone systems: • • • • • Has annual revenues exceeding $100,000 per year Has customer base in and outside Nigeria Is based in urban areas with access to electricity Has VoIP requirements of 5 to 15 phones Will spend approximately $50 to $500 per month on phone service 4.4 Competition There is currently no significant amount of competition in the VoIP services industry in Nigeria but the competitions that will be posed by the conventional telephone carriers are not to be neglected as these companies have grown in capital base to compete favourably well. As the industry further develops, it is fully expected that there will be considerable competition and price compression as agents within the market begin a pricing war. This scenario is fully expected to occur as it did within the long distance and wireless telecommunications markets. However, as this is a new technology and the regulatory landscape has not yet fully developed, this situation is not anticipated to occur for another two to five years. We hope to monopolizing the VoIP market for the next few years and permeate the Telecommunications industry through back door marketing strategies. WOW very low price and call quality will serve as advantage to winning at least one million subscribers ranging from low income earners and high income earners alike within the succeeding two years. Other advantages are the Value Added Services which will be rolled out from time to time owing to rapid development of the internet based products and Customer Reward Program (CRP). All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 12. 12of28 WOW Business Plan 5.0 Marketing Plan WOW intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the VoIP Company. 5.1 Marketing Objectives • • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories. Implement a local campaign with the Company’s targeted market via the use of social networks, forums, websites, google, and word of mouth advertising. Form strategic business alliance with small business associations that will refer clients to the Company. 5.2 Marketing Strategies Management intends to use a number of marketing strategies that will promote sales of call units and VoIP ongoing service among commercial and private customers. This Company will accomplish its marketing through several advertising channels including facebook, twitter, linkedin, online forums, google adword targeting, email marketing, direct advertisements, and through the Company’s website. Management is to develop an expansive sales literature packet that will showcase the features of using the Company’s VoIP product systems and VoIP services for commercial enterprises. These sales literature packets will be distributed among members of the Company’s primary commercial enterprise targeted demographic base. WOW will also maintain alliance among selected business associations (Association of Internet Marketers), online payment platforms, and online directories that bring up results for phone system/service providers within the target market. The company intends to also use referral methods and online mini shop approach. Finally, the Company will develop an interactive online website with a mobile version that will showcase the operations of the business, its VoIP product lines, its services, pricing information, online recharge through popular payment gateways and how to contact the Company. This website will be registered with a number of online local directories and internet portals. All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 13. 13of28 5.3 Pricing WOW Business Plan The company intends to sell at 50% to 200% of voice traffic cost price. Hence call units are sold at an additional minimum of 50% of the cost price. The pricing format shall be two for each country with a price to mobile and land line. Countries with wide price range within mobile networks shall be calculated accordingly. As for IPBX, business enterprises are expected to pay for the software and server cost at a relative low profit margin to WOW while VOD/IPVT will be charged on pay per watch basis on an ultra cheap rate. All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 14. 14of28 WOW Business Plan 6.0 Organizational Plan and Personnel Summary 6.1 Corporate Organization At start-up, the team will consist mainy the owner and the customer service employee as both will be working vigorously to market the company through online medium. While the owner will be dealing with the technical aspects of the business, the customer service employee will be working on the public relation. As WOW expands, more hands will be required for developmental strategies and direct marketing to small and medium scale enterprises. 6.2 Organizational Budget Personnel Plan - Yearly Year Ow ner 2012 2013 2014 $24,000 $24,720 $25,462 Business Development Manager $0 $0 $0 VoIP Installation Employees $0 $0 $0 $5,000 $5,150 $5,305 $0 $0 $0 $29,000 $29,870 $30,766 Customer Service Employees Marketing/Sales Executives Total Num bers of Personnel Year 2012 2013 2014 Ow ner 1 1 1 Business Development Manager 0 1 1 VoIP Installation Employees 0 2 2 Customer Service Employees 1 1 1 Marketing/Sales Executives 0 2 2 Totals 2 7 7 All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 15. 15of28 6.2 Organizational Budget (Cont.) WOW Business Plan Personnel Expense Breakdown 17% Ow ner Business Development Manager VoIP Installation Employees Customer Service Employees Marketing/Sales Executives 83% 6.3 Management Biographies Annan Lukman Oyebode is highly experienced in VoIP technology as well as online and offline marketing. With a diploma in computer science and a member of internet marketers association in Nigeria, he is equipped with the knowledge needed to succeed in this type of business knowing fully well that marketing remains the backbone of VoIP as the product itself can lure subscribers since the purpose is to enhance people to spend less. The owner has always worked in customer service and hence understands human behaviour to an acceptable extent and the best ways to keep their loyalty. Having test-run the business himself by launching a PC to Phone VoIP business, Lukman is in the best position to know the upward and downward side of the business and focus point in order to maximize profit. All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 16. 16of28 WOW Business Plan 7.0 Financial Plan 7.1 Underlying Assumptions The Company has based its proforma financial statements on the following: • • • • WOW will have an annual revenue growth rate of 19% and above per year beginning from the first year. This will be accomplished through expansion to other African countries and Value Added Services The company is expected to grow in subscriber base which will translate to progressive annual revenue growth. The Owner will require $100,000 of equity funds to develop the business. The fund will have a 5 year term with a buy back option. 7.2 Sensitivity Analysis The Company’s revenues are moderately sensitive to changes in the general economy. VoIP high-speed internet has become a utility that is comparable to electricity for most users, and the country would need a faster internet broadband to enjoy this service optimally and Management expects that the recent launch of new satellites will boost this. 7.3 Source of Funds Financing Equity Contributions Management Investment Investor Equity Fund $20,000.00 $100,000.00 Total Equity Financing $120,000.00 Banks and Lenders Banks and Lenders $0.00 Total Debt Financing $0.00 Total Financing $120,000.00 7.4 General Assumptions General Assum ptions Year 2012 2013 2014 Short Term Interest Rate 9.5% 9.5% 9.5% Long Term Interest Rate 10.0% 10.0% 10.0% Federal Tax Rate 30.0% 30.0% 30.0% 5.0% 5.0% 5.0% 15.0% 15.0% 15.0% State Tax Rate Personnel Taxes All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 17. 17of28 7.5 Profit and Loss Statements WOW Business Plan Proform a Profit and Loss (Yearly) Year 2012 2013 2014 Sales $2,925,000 $4,387,500 $6,581,250 Cost of Goods Sold $1,950,000 $2,925,000 $4,387,500 33.33% 33.33% 33.33% $975,000 $1,462,500 $2,193,750 $29,000 $29,870 $30,766 $2,400 $2,496 $2,596 $29,250 $43,875 $65,813 $7,000 $7,210 $7,426 Gross Margin Operating Incom e Expenses Payroll General and Administrative Marketing Expenses Professional Fees and Licensure Insurance Costs $2,000 Travel and Vehicle Costs Rent and Utilities $2,100 $2,205 $10,000 $11,000 $12,100 $4,700 Miscellaneous Costs Payroll Taxes $4,935 $5,182 $14,625 $21,938 $32,906 $4,350 $4,481 $4,615 Total Operating Costs $103,325 $127,904 $163,609 EBITDA $871,675 $1,334,596 $2,030,141 Federal Income Tax $261,503 $400,379 $609,042 State Income Tax $43,584 $66,730 $101,507 Interest Expense $0 $0 $0 $8,511 $8,511 $8,511 $558,077 $858,976 $1,311,081 19.08% 19.58% 19.92% Depreciation Expenses Net Profit Profit Margin Proform a Profit and Loss (Yearly) Year Sales 2012 2013 2014 $2,925,000 $4,387,500 Operating Costs $103,325 $127,904 $6,581,250 $163,609 EBITDA $871,675 $1,334,596 $2,030,141 Taxes, Interest, and Depreciation $313,598 $475,620 $719,061 Net Profit $558,077 $858,976 $1,311,081 All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 18. 18of28 WOW Business Plan Sales, Operating Costs, and Profit Forecast $7,000,000 $6,000,000 $5,000,000 $4,000,000 Sales EBITDA $3,000,000 Net Profit $2,000,000 $1,000,000 $0 2012 2013 2014 Year 7.6 Cash Flow Analysis Proform a Cash Flow Analysis - Yearly Year Cash From Operations Cash From Receivables Operating Cash Inflow 2012 2013 $566,589 2014 $867,487 $1,319,592 $0 $0 $0 $566,589 $867,487 $1,319,592 Other Cash Inflow s Equity Investment $120,000 $0 $0 Increased Borrow ings $0 $0 $0 Sales of Business Assets $0 $0 $0 A/P Increases $0 $0 $0 Total Other Cash Inflow s $120,000 $0 $0 Total Cash Inflow $686,589 $867,487 $1,319,592 Repayment of Principal $0 $0 $0 A/P Decreases $0 $0 $0 A/R Increases $0 $0 $0 Asset Purchases $113,318 $173,497 $263,918 Dividends $396,612 $607,241 $923,714 Total Cash Outflow s $509,930 $780,739 $1,187,633 Net Cash Flow $176,659 $86,749 $131,959 Cash Balance $176,659 $263,408 $395,367 Cash Outflow s All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 19. 19of28 WOW Business Plan Proforma Cash Flow (Yearly) $1,400,000 $1,200,000 $1,000,000 Total Cash Inflow Total Cash Outflows Cash Balance $800,000 $600,000 $400,000 $200,000 $0 2012 2013 2014 Year 7.7 Balance Sheet Proform a Balance Sheet - Yearly Year 2012 2013 2014 Assets Cash $176,659 $263,408 $395,367 VAS/Expansion Costs $56,659 $143,408 $275,367 VoIP Soft Sw itch, Dialers and Modules $50,000 $84,699 $137,483 FF&E Company Vehicles and Deposits $2,500 $10,000 $19,850 $44,699 $46,242 $97,483 Accumulated Depreciation ($8,511) ($17,023) ($25,534) $287,307 $539,041 $926,408 Accounts Payable $0 $0 $0 Long Term Liabilities $0 $0 $0 Other Liabilities $0 $0 $0 Total Liabilities $0 $0 $0 Net Worth $287,307 $539,041 $926,408 Total Liabilities and Equity $287,307 $539,041 $926,408 Total Assets Liabilities and Equity All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 20. 20of28 WOW Business Plan Proforma Balance Sheet $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Total Assets Total Liabilities Net Worth 2012 2013 2014 Year 7.8 Breakeven Analysis Monthly Break Even Analysis Year 2012 2013 2014 Monthly Revenue $25,831 $31,976 $40,902 Yearly Revenue $309,975 $383,712 $490,826 Break Even Analysis $500,000 $400,000 Monthly Revenue Yearly Revenue $300,000 $200,000 $100,000 $0 2012 2013 2014 Year All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 21. 21of28 7.9 Business Ratios WOW Business Plan Business Ratios - Yearly Year 2012 2013 2014 Sales Sales Grow th 0.0% 50.0% 50.0% Gross Margin 33.3% 33.3% 33.3% Profit Margin Assets to Liabilities 19.08% #DIV/0! 19.58% #DIV/0! 19.92% #DIV/0! Equity to Liabilities #DIV/0! #DIV/0! #DIV/0! 1.00 1.00 1.00 #DIV/0! #DIV/0! #DIV/0! 0.61 0.49 0.43 Financials Assets to Equity Liquidity Acid Test Cash to Assets Three Year Profit and Loss Statement Profit and Loss Statem ent (First Year) 1 2 Sales Months $37,500 $75,000 $112,500 $150,000 $187,500 $225,000 $262,500 Cost of Goods Sold $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% $12,500 $25,000 $37,500 $50,000 $62,500 $75,000 $87,500 $2,417 $2,417 $2,417 $2,417 $2,417 $2,417 $2,417 $200 $200 $200 $200 $200 $200 $200 $2,438 $2,438 $2,438 $2,438 $2,438 $2,438 $2,438 Professional Fees and Licensure $583 $583 $583 $583 $583 $583 $583 Insurance Costs $167 $167 $167 $167 $167 $167 $167 Travel and Vehicle Costs $833 $833 $833 $833 $833 $833 $833 Rent and Utilities $392 $392 $392 $392 $392 $392 $392 $1,219 $1,219 $1,219 $1,219 $1,219 $1,219 $1,219 Gross Margin Operating Incom e 3 4 5 6 7 Expenses Payroll General and Administrative Marketing Expenses Miscellaneous Costs Payroll Taxes $363 $363 $363 $363 $363 $363 $363 Total Operating Costs $8,610 $8,610 $8,610 $8,610 $8,610 $8,610 $8,610 EBITDA $3,890 $16,390 $28,890 $41,390 $53,890 $66,390 $78,890 Federal Income Tax $3,353 $6,705 $10,058 $13,410 $16,763 $20,116 $23,468 State Income Tax $559 $1,118 $1,676 $2,235 $2,794 $3,353 $3,911 Interest Expense $0 $0 $0 $0 $0 $0 $0 $709 $709 $709 $709 $709 $709 $709 -$731 $7,858 $16,446 $25,035 $33,623 $42,212 $50,801 Depreciation Expense Net Profit All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 22. 22of28 WOW Business Plan Profit and Loss Statem ent (First Year Cont.) Month 11 12 Sales $300,000 $337,500 $375,000 $412,500 $450,000 $2,925,000 Cost of Goods Sold $200,000 $225,000 $250,000 $275,000 $300,000 $1,950,000 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% $100,000 $112,500 $125,000 $137,500 $150,000 $975,000 $2,417 $2,417 $2,417 $2,417 $2,417 $29,000 $200 $200 $200 $200 $200 $2,400 $2,438 $2,438 $2,438 $2,438 $2,438 $29,250 Professional Fees and Licensure $583 $583 $583 $583 $583 $7,000 Insurance Costs $167 $167 $167 $167 $167 $2,000 Travel and Vehicle Costs $833 $833 $833 $833 $833 $10,000 Gross Margin Operating Incom e 8 9 10 2012 Expenses Payroll General and Administrative Marketing Expenses Rent and Utilities Miscellaneous Costs Payroll Taxes $392 $392 $392 $392 $392 $4,700 $1,219 $1,219 $1,219 $1,219 $1,219 $14,625 $363 $363 $363 $363 $363 $4,350 $8,610 $8,610 $8,610 $8,610 $8,610 $103,325 EBITDA $91,390 $103,890 $116,390 $128,890 $141,390 $871,675 Federal Income Tax $26,821 $30,173 $33,526 $36,879 $40,231 $261,503 State Income Tax $4,470 $5,029 $5,588 $6,146 $6,705 $43,584 Interest Expense $0 $0 $0 $0 $0 $0 $709 $709 $709 $709 $709 $8,511 $59,389 $67,978 $76,567 $85,155 $93,744 $558,077 Total Operating Costs Depreciation Expense Net Profit All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 23. 23of28 WOW Business Plan Profit and Loss Statem ent (Second Year) 2013 Quarter Q1 Q2 Q3 Q4 2013 Sales $877,500 $1,096,875 $1,184,625 $1,228,500 $4,387,500 Cost of Goods Sold $585,000 $731,250 $789,750 $819,000 $2,925,000 33.3% 33.3% 33.3% 33.3% 33.3% $292,500 $365,625 $394,875 $409,500 $1,462,500 $5,974 $7,468 $8,065 $8,364 $29,870 $499 $624 $674 $699 $2,496 Marketing Expenses $8,775 $10,969 $11,846 $12,285 $43,875 Professional Fees and Licensure $1,442 $1,803 $1,947 $2,019 $7,210 $420 $525 $567 $588 $2,100 $2,200 $2,750 $2,970 $3,080 $11,000 $987 $1,234 $1,332 $1,382 $4,935 $4,388 $5,484 $5,923 $6,143 $21,938 Gross Margin Operating Income Expenses Payroll General and Administrative Insurance Costs Travel and Vehicle Costs Rent and Utilities Miscellaneous Costs Payroll Taxes Total Operating Costs EBITDA $896 $1,120 $1,210 $1,255 $4,481 $25,581 $31,976 $34,534 $35,813 $127,904 $266,919 $333,649 $360,341 $373,687 $1,334,596 Federal Income Tax $80,076 $100,095 $108,102 $112,106 $400,379 State Income Tax $13,346 $16,682 $18,017 $18,684 $66,730 Interest Expense Depreciation Expense Net Profit $0 $0 $0 $0 $0 $2,128 $2,128 $2,128 $2,128 $8,511 $171,370 $214,744 $232,094 $240,769 $858,976 All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 24. 24of28 WOW Business Plan Profit and Loss Statem ent (Third Year) 2014 Quarter Sales Q1 Q2 Q3 Q4 2014 $1,316,250 $1,645,313 $1,776,938 $1,842,750 $6,581,250 $877,500 $1,096,875 $1,184,625 $1,228,500 $4,387,500 33.3% 33.3% 33.3% 33.3% 33.3% $438,750 $548,438 $592,313 $614,250 $2,193,750 $6,153 $7,692 $8,307 $8,615 $30,766 $519 $649 $701 $727 $2,596 $13,163 $16,453 $17,769 $18,428 $65,813 $1,485 $1,857 $2,005 $2,079 $7,426 $441 $551 $595 $617 $2,205 Travel and Vehicle Costs $2,420 $3,025 $3,267 $3,388 $12,100 Rent and Utilities $1,036 $1,295 $1,399 $1,451 $5,182 Miscellaneous Costs $6,581 $8,227 $8,885 $9,214 $32,906 Cost of Goods Sold Gross Margin Operating Incom e Expenses Payroll General and Administrative Marketing Expenses Professional Fees and Licensure Insurance Costs Payroll Taxes $923 $1,154 $1,246 $1,292 $4,615 $32,722 $40,902 $44,174 $45,810 $163,609 EBITDA $406,028 $507,535 $548,138 $568,440 $2,030,141 Federal Income Tax $121,808 $152,261 $164,441 $170,532 $609,042 $20,301 $25,377 $27,407 $28,422 $101,507 Total Operating Costs State Income Tax Interest Expense Depreciation Expense Net Profit $0 $0 $0 $0 $0 $2,128 $2,128 $2,128 $2,128 $8,511 $261,791 $327,770 $354,162 $367,358 $1,311,081 All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 25. 25of28 WOW Business Plan Three Year Cash Flow Analysis Cash Flow Analysis (First Year) Month Cash From Operations 1 2 3 4 5 6 7 8 -$22 $8,567 $17,155 $25,744 $34,333 $42,921 $51,510 $0 $0 $0 $0 $0 $0 $0 $0 -$22 $8,567 $17,155 $25,744 $34,333 $42,921 $51,510 $60,099 $120,000 $0 $0 $0 $0 $0 $0 $0 Increased Borrow ings $0 $0 $0 $0 $0 $0 $0 $0 Sales of Business Assets $0 $0 $0 $0 $0 $0 $0 $0 A/P Increases $0 $0 $0 $0 $0 $0 $0 $0 Total Other Cash Inflows $120,000 $0 $0 $0 $0 $0 $0 $0 Total Cash Inflow $119,978 $8,567 $17,155 $25,744 $34,333 $42,921 $51,510 $60,099 Repayment of Principal $0 $0 $0 $0 $0 $0 $0 $0 A/P Decreases $0 $0 $0 $0 $0 $0 $0 $0 A/R Increases $0 $0 $0 $0 $0 $0 $0 $0 Asset Purchases $0 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 Total Cash Outflow s $0 $0 $0 $0 $0 $0 $0 $0 Cash From Receivables Operating Cash Inflow $60,099 Other Cash Inflows Equity Investment Cash Outflow s Net Cash Flow $119,978 $8,567 $17,155 $25,744 $34,333 $42,921 $51,510 $60,099 Cash Balance $119,978 $128,545 $145,701 $171,445 $205,777 $248,699 $300,209 $360,308 All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 26. 26of28 WOW Business Plan Cash Flow Analysis (First Year Cont.) Month 9 10 11 12 $68,687 $77,276 $85,865 $94,453 $0 $0 $0 $0 $0 $68,687 $77,276 $85,865 $94,453 $566,589 Equity Investment $0 $0 $0 $0 $120,000 Increased Borrow ings $0 $0 $0 $0 $0 Sales of Business Assets $0 $0 $0 $0 $0 A/P Increases $0 $0 $0 $0 $0 Total Other Cash Inflow s $0 $0 $0 $0 $120,000 $68,687 $77,276 $85,865 $94,453 $686,589 Repayment of Principal $0 $0 $0 $0 $0 A/P Decreases $0 $0 $0 $0 $0 A/R Increases $0 $0 $0 $0 $0 Asset Purchases $0 $0 $0 $113,318 $113,318 Dividends $0 $0 $0 $396,612 $396,612 Total Cash Outflow s $0 $0 $0 $509,930 $509,930 Net Cash Flow $68,687 $77,276 $85,865 -$415,477 $176,659 Cash Balance $428,995 $506,271 $592,136 $176,659 $176,659 Cash From Operations Cash From Receivables Operating Cash Inflow 2012 $566,589 Other Cash Inflow s Total Cash Inflow Cash Outflow s All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 27. 27of28 WOW Business Plan Cash Flow Analysis (Second Year) 2013 Quarter Q1 Cash From Operations $173,497 $216,872 $234,222 $242,896 $0 $0 $0 $0 $0 $173,497 $216,872 $234,222 $242,896 $867,487 Equity Investment $0 $0 $0 $0 $0 Increased Borrow ings $0 $0 $0 $0 $0 Sales of Business Assets $0 $0 $0 $0 $0 A/P Increases $0 $0 $0 $0 $0 Total Other Cash Inflow s $0 $0 $0 $0 $0 $173,497 $216,872 $234,222 $242,896 $867,487 Repayment of Principal $0 $0 $0 $0 $0 A/P Decreases $0 $0 $0 $0 $0 Cash From Receivables Operating Cash Inflow Q2 Q3 Q4 2013 $867,487 Other Cash Inflow s Total Cash Inflow Cash Outflow s A/R Increases $0 $0 $0 $0 $0 $34,699 $43,374 $46,844 $48,579 $173,497 Dividends $121,448 $151,810 $163,955 $170,028 $607,241 Total Cash Outflow s $156,148 $195,185 $210,799 $218,607 $780,739 Net Cash Flow $17,350 $21,687 $23,422 $24,290 $86,749 Cash Balance $194,009 $215,696 $239,118 $263,408 $263,408 Asset Purchases All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD
  • 28. 28of28 WOW Business Plan Cash Flow Analysis (Third Year) 2014 Quarter Q1 Cash From Operations $263,918 Cash From Receivables Q2 Q3 $329,898 Q4 $356,290 2014 $369,486 $1,319,592 $0 $0 $0 $0 $0 $263,918 $329,898 $356,290 $369,486 $1,319,592 Equity Investment $0 $0 $0 $0 $0 Increased Borrow ings $0 $0 $0 $0 $0 Sales of Business Assets $0 $0 $0 $0 $0 A/P Increases $0 $0 $0 $0 $0 Total Other Cash Inflow s $0 $0 $0 $0 $0 $263,918 $329,898 $356,290 $369,486 $1,319,592 Repayment of Principal $0 $0 $0 $0 $0 A/P Decreases $0 $0 $0 $0 $0 A/R Increases $0 $0 $0 $0 $0 $52,784 $65,980 $71,258 $73,897 $263,918 Dividends $184,743 $230,929 $249,403 $258,640 $923,714 Total Cash Outflow s $237,527 $296,908 $320,661 $332,537 $1,187,633 Operating Cash Inflow Other Cash Inflow s Total Cash Inflow Cash Outflow s Asset Purchases Net Cash Flow $26,392 $32,990 $35,629 $36,949 $131,959 Cash Balance $289,799 $322,789 $358,418 $395,367 $395,367 All Rights Reserved © TwinLight Dubai FZE & Golden TwinLight International LTD

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