Enchanted Plaza A Computer Automated Virtual RealityShopping Website
Table of Contents1. Executive Summary 10. Operating Cost Years 3 - 42. Company Overview / Marketing 11. Profit/Loss Cash Flow Years 3 - 4 12. 4 Years P/L % Summary3. Management Team - Resumes 13. Competition4. Company Proprietary Software 14. Notable eCommerce Companies5. Capital Funding Methods 15. 2006 Global Internet Sales6. Start-Up Use of Proceeds 16. Current Global Internet sales7. 4 Years Sales Forecast 17. Global eCommerce Projected 18. Conclusion8. Operating Cost Years 1 – 29. Profit/ Loss Cash Flow Years 1 – 2
Executive Summary Pg. 1 Continued advantage of internet retail sales however, is that the company does essentially nothing except display the product and receives 20 to 30 % of the sale and because the sales and payments are automatically processed by the automated merchant payment processing system the company has received this income percentage while incurring very little cost.Enchanted Plaza 1 Executive Introduction and Summary Our retail sales customer will have the option of us designing their retail “Point of Sales “ ( POS ) displays for a fee, or an increase in the discounted price of their products sold on our website.Enchanted Plaza is a startup company formed and motivated by the apparent lack in the current internetindustry of a more attractive, less expensive method of internet advertising and retail sales display formats. What appears to be a disadvantage / advantage of internet advertising sales income is that although100 % of the sale is billed and received it has also incurred the initial cost of making theTo capitalize on this deficiency our VP a computer wizard and his associates have developed a proprietary original sale, which by our 2nd year P/L accounting is about 27 % to 30 %, however these costtechnical engineering blueprint for the development of computer software that is capable of producing highly are not recurring, once the sale has been made the company will continue to receive paymentsattractive computer animated, audio – visual - virtual reality 3D displays for use in internet advertising and for displaying the ad which incurs no additional cost, therefore if the ad is displayed for anyretail sales. considerable period of time the cost of the sale will quickly be offset and the remaining paymentsBecause of these features our displays are not only a much more effective type of media and that they are to the company will be gross profit.totally computer created can be offered at much less cost to our advertising customers, than that of the currentcompetition. Also because of the company’s very low overhead , due to our nearly completely computerized business operations and the enormous search engine generated worldwide public exposure weSome internet companies boast about the reason for their success is because of the number of visitors they have will be able to offer better advertising services at a much lower price than the competition andto their site but in reality any website submitted to the massive search engine system can accumulate hundreds still maintain a very high profit margin.of millions of visitors in a very short time so these numbers are not of great importance, it is the number of thevisitors who purchase products or services from the site and become customers of the website company that isimportant. The current annual global internet sales market is approximately $449 billion. We at Enchanted Plaza are confident that after receipt of the initial startup capital noted in the “It’s simple, if you have a more attractive and interesting website placed in front of millions of viewers you will Capital Funding “ page and with moderate future increases of operating capital as intendedhave more visitors to your website and if the products offered are of the best quality at a lower price the site will within this business plan, the company could,have more repeat customers and generate more sales, this is particularly true for advertising customers. in a relatively short period of time capture a minimum of .001 ( 1/10 th of 1 % ) of this market or 449 million dollars in gross annual revenue and with the potential of obtaining a great dealGlobal internet marketing studies and trends indicate that advertising sales will dominate retail sales by the more in the future.ratio of 60 % advertising and 40 % retail sales in the near future. The information detailed within this business plan as follows are about as complete as can beBecause of the dynamic capabilities of our displays produces an excellent retail shopping experience in a unique complied about the company at this juncture, but if we can provide further information for youenvironment it is an excellent location for commercial advertising therefore we expect our major income please contact the company at the address or phone numbers appended on the conclusion /income source will be in advertising display sales. Summation page at the end of this business plan.The disadvantage of internet retail sales is that the revenue to the website is discounted from the retail sales Thank You for your review of our business planprice, usually about 20 to 30 %. This means that the site has to sell one or a number of product for $ 250 toreceive $ 75. Sales for a directly shipped manufactures product is discounted typically 40% to 50 %. The Shawn Marie Lopez, President and Chief Executive Officer
Company IntroductionA unique and proprietary three dimensional (3D) virtual reality shoppingplazaAnimated marketingCustomizableThe user controls everythingImagine a world-wide virtual shopping experienceWe will offer both nationally and internationally manufactured consumerproductsVendors will have actual store imagesStore displays will be customizable to the vendorsEverything will be completely computer automated70% of income will come from marketing salesOnline marketing
The Management TeamShawn Marie Lopez: Shawn Marie is the President and CEO as well as the Director ofMarketing, Sales and Contract Negotiations for the company. She is the founder of the EnchantedPlaza and is the principle corporate shareholder.Kyra A. Liebert: Kyra Is the company’s Corporate CFO. Her principle responsibilities are thesupervision and management of the company’s non-technical office personnel, sales assistance andcustomer service. She will also provide the company’s management of all phases of legal, generalaccounting, corporate records / reporting and tax returns as required. Kyra is a co-founder of theEnchanted Plaza and is a Corporate Officer and shareholder.John Marler: John is VP and Chief Engineer of the company. His responsibility are on-goingdevelopment of the company’s and vendor’s current and future technical website software designrequirements as well as technical website sales solicitation. John is a co-founder of the EnchantedPlaza and is a Corporate Officer and shareholder.Jack Thatcher: Is an Independent Business Financial Consultant. Mr. Thatcher is not a corporateofficer although he is an important member of the management team and has full authority torepresent the company in matters of capital funding in concert with company management.
SoftwareWebsite copyright filed, software patent pendingMultifunctional fully animated, highly graphic virtual displays 3D Modeling and Animation w/ audio and video capabilities Buildings Interior- decorations, items for sale, and overall presentation, all updateable Exterior- signs, advertisements, decorations Landscapes Multiple environments based on real life locations and fantasy worlds Selectable dynamic animations such as: birds in the sky, cars driving by, etc. Water fountains Changeable weather- rain, snow, wind, sun, clouds, etc… People Ability to update/modify appearance Height, skin tone, hair color, hair length, change of clothing, etc. GUI Interface is easily updateable Provides statistics as you shop such as: money available, cost of item(s) or shopping cart, location, time, etc… Fully integrated with all our clients store merchandise, cost, stock, description of items and shipping information Ability to store credit card information to the users profile Payment integration with PayPal, Chase Bank, and other automated services
FundingCapital fundingFunding methodsMajor AdvertisersSEC Regulation D 506 OfferingNASDAQ Qualified Initial Public Offering
Use of Proceeds As follows In Dollars $ Capital Funding 1,000,000 Legal Fees for Misc. Corporate DocumentationStartup capital PPM and SEC Reg D Associated Filing Cost 7,000 Promotional Cost and Consulting Fees 5,000 Initial Office Set-up Expense 3,050 ( See detail below ) Initial and On-going Software Development 400,000 ( Software Fund ) Amount Entered as Beginning Cash in the 350,000 Cash Flow, Profit / Loss Projection Total 766,500 Office Expense Detail Computers 3 ea. @ 500 2,250 Telephones 3 ea. land line / cell 400 Initial office supplies 400 Total 3,050 Total All 753,050 Working Capital Reserves 246,950
4 Years Sales ForecastIn Thousands $ 000 To the 4 Years Sales Forecast as Estimated and ProjectedNearest $ 100 ( .1 K ) In Thousands $ 000 To the Nearest $ 100 ( .1 K )• Note: Static Display Month 1 2 3 4 5 6 Total 7 8 9 10 11 12 Total Ads Range from $ Year 1 20,000 to $ 50,000 per Month Sales 0 0 0 20 30 45 95 67.5 101.2 151.8 212 297 320 1149.5 1,244• Computer Animated or Video Display Ads Year 2 Sales From Year 1 End to Year 2 End Up 395% Range from $ 50,000 to $ 150,000 per Sales 336 352.8 370.4 389 400.7 412.6 2261.5 421 429.3 439 446.7 455.5 464.7 2656.2 4,927 Month and Up.• The Current Global Internet Sales Market Year 3 Sales From Year 2 End to Year 3 End Up 129 % is Approximately $ 500 billion Sales 474 483.4 494 503.8 514 527 2996.2 535 545.4 556.3 567.4 575.7 587.3 3367.1 6,363• Enchanted Plazas Extremely Year 4 Sales From Year 3 End to Year 4 End Up 136 % Conservative 4 Year Projected Sales is $ 21 Sales 618 636.5 555.6 675.3 695.5 717.3 3898.2 738 760 783 806.4 830 855 4772.4 8,671 million This Amounts to .4 1/1000s of 1 % of the Note: Static Display Ads Range fron $ 20,000 to $ 50,000 per Month 4 Years Total 21205 Global Internet Market Computer Animated or Vidio Display Ads Range from $ 50,000 to $ 150,000 per Month and Up. The Current Global Internet Sales Market is Approximately $ 500 billion Enchanted Plazas Extremely Conservative 4 Year Projected Sales is $ 21 million This Amounts to .4 1/1000s of 1 % of the Global Internet Market
Salaries (Years 1-2) Salaries ( Cost of Sales ), G&A and Selling Expense as Estimated and Projected 4 Semi-Annual Periods In Dollars to the Nearest $ 100.Per Month Year 1 Total Year 2 TotalSalaries 1St 6 Mo / Mo 2nd 6 Mo 3rd 6 Mo 4 th 6 MoCorporate Officers 10,700 10,700 10,700 10,700Office & Assistants 1 2,000 3 6,000 5 10,000 7 14,000Cost of Sales per Month 12,700 16,700 20,700 24,700Monthly Total x6 x6 x6 x6Total Saleries 76,200 100,200 176,400 124,200 148,200 272,400Number of employees 4 6 8 10G & A ExpenseEmployer Tax Contrib 9,000 est 12 % 12,000 15,000 17,800Workmans Comp 700 est 1.3 % 1,300 1,600 1,900General Biz Insurance 200 200 200 200Rent 400 400 1,000 1,000Telephone 100 100 200 200Utilities 200 200 300 300Misc. Office Supplies 100 100 200 200Cost of G/ A per Month 10,700 14,300 18,500 21,600Monthly Total x6 x6 x6 x6Total G / A 64,200 85,800 150,000 111,000 129,600 240,600Selling ExpenseAir Travel 2,000 2,000 4,000 4,000Car Rental 800 800 800 800Marketing 30,000 30,000 60,000 60,000Selling Expence per Mo. 32,800 32,800 64,800 64,800Monthly Total x6 x6 x6 x6Total Selling Expense 196,800 196,800 393,600 388,800 388,800 777,600 720,000 1,290,600Employer Contribution Taxes Federal, State, SSI, Medicare and UE Ins. Are added together and EstimatedSalaries Executive 4,000/ Mo Shawn Marie Lopez Pres, CEO Marketing and Sales Manager 4.000/ Mo Kyra Liebert CFO Chief Financial Officer 2,700/ Mo John Maler, VP, Chief Engineer, Software Development Manager and Sales Solicitation Administrative 2,000 / Mo. Each Office Administrative Assistant, Customer Service, Software Assistant and Sales Associate
Projected P/L 4 Years Proforma Profit / Loss as Projected Page 12 Approx. Summary, In Thousands $ 000 Year 1 Year 2 Sales / Income 1,244 Sales / Income 4,927 Cost of Sales ( Sal ) -176 14.00% Cost of Sales ( Sal ) -272 5.50% G/A -150 12.00% G/A -241 4.90% Selling Expense -70 5.60% Selling Expense -82 1.60% All Cost -396 31.60% All Cost -595 12.00% Gross Profit 848 68.40% Gross Profit 4,332 88.00% Total % 100% Total % 100% Net Operating Net Operating Pre Tax Profit/Loss 848 44.00% Pre Tax Profit/Loss 4,322 88.00% On Sales of 1,244 Profit was 848 or 44.% On Sales of 4,917 Profit was 4,322 or 88.% Year 3 Year 4 Sales / Income 6,363 Sales / Income 8,671 Cost of Sales ( Sal ) -390 6.20% Cost of Sales ( Sal ) -480 5.50% G/A -343 5.40% G/A -443 4.80% Selling Expense -156 2.40% Selling Expense -156 1.80% All Cost -889 14.00% All Cost -1079 12.10% Gross Profit 5,474 86.00% Gross Profit 7,592 87.90% Total % 100% Total % 100% Net Operating Net Operating Pre Tax Profit/Loss 5,474 86.00% Pre Tax Profit/Loss 7,592 87.90%On Sales of 6,363 Profit was 5,474 or 86 % On Sales of 8,671 Profit was 7,593 or 87.90 % Note: See Conclusion Page 18 to Note Generally Inordinately High P&L
Competition and Market ShareA few American companies who’s primary income is from internet and marketingsales: Facebook- $3,000,000,000 of which 80% was in internet marketing Expedia, Inc.- $3,348,000,000- marketing and travel Priceline- $3,072,240,000- marketing and travel Groupon- $760,000,000- Retail referrals and marketing Orbitz- $757,5000,000- Travel agent and marketing Enchanted Plaza Market Share
Notable ecommerce Companies Amazon The standout winner in e-commerce continues to be Amazon. Amazon’s revenues rose 29 % in 2010 to $48.0 billion in 2011 and profits grew substantially as noted. Amazon’s main source of income was from a very broad, diversified line of direct and discounted customer retail sales, Internet marketing was estimated to be about 30 % or 14.4 billion. In billions 2011 2010 2009Total Revenue 48,077,000 34,204,000 24,509,000Cost of Revenue 37,288,000 26,561,000 18,978,000Gross Profit 10,789,000 7,643,000 5,531,000 ecommerce internet technology market research - E-Commerce and ... www.plunkettresearch.com/...internet.../industry-and-business-data
ecommerce cont.’… Yahoo In thousandsPeriod Ending Dec 25, 2011 Dec 31, 2010 Dec 31, 2009Total Revenue 2,323,401 2,393,463 2,440,439Cost of Revenue 957,467 961,778 1,021,230Gross Profit 1,365,934 1,431,685 1,419,209 Amount from marketing was unavailable ecommerce internet technology market research - E-Commerce and ... www.plunkettresearch.com/...internet.../industry-and-business-data
ecommerce cont.”… eBay, Inc. (NASDAQ: EBAY)Fiscal year is January-December. In billions 2008 2009 2010 2011 Sales/Revenue 8.54 B 8.73 B 9.15 B 11.68 B Gross Income 6.08B 5.96 B 6.39 B 7.95 B Net Income 1.78 B 2.39 B 1.8 B 3.2 B ecommerce internet technology market research - E-Commerce and ... www.plunkettresearch.com/...internet.../industry-and-business-data
ecommerce cont.’… GoogleRevenue Accounting ( summary )In billionsRevenue: Year 2010 2011 2012 1st quarterGross Revenue 29.3 38. 10.6Income from operations 10.4 11.7 3.4Net Income 8.5 9.7 2.9marketing Revenue inclusive 28. 36. 10.Internet Sales Revenue was 28/29 = 96.6 % of gross revenue ecommerce internet technology market research - E-Commerce and ... www.plunkettresearch.com/...internet.../industry-and-business-data
ecommerce cont.’… Google cont.’…The Top 10 Industries That Spent Big On Google AdWords In 2011 Finance & Insurance – $4.0 Billion (example keywords in this industry include: “self employed health insurance”, “cheap car insurance”, “credit cards for bad credit”) Retailers & General Merchandise – $2.8 Billion (example keywords in this industry include “zumba dance dvd”, “proform treadmill”, “weber grill accessories”) Travel & Tourism – $2.4 Billion (e.g. “New York hotels”, “plane tickets”, “rental car deals”) Jobs & Education – $2.2 Billion (e.g. “accredited online college degrees”, “online certificate programs”, “unemployment benefits”) Home & Garden— $2.1 Billion (e.g. “replacement windows cost”, “appliance repair”, “cabinet refacing”) Computer & Consumer Electronics – $2.0 Billion (“ink cartridges discount”, “pc memory”, “online video conferencing software”) Vehicles – $2.0 Billion (e.g. “cheap hybrid cars”, “certified used cars”, “Bridgestone tires”) Internet & Telecommunications – $1.7 Billion (“pre paid cell phones”, “domain registration”, “cable internet providers”) …… Business & Industrial – $1.6 Billion (“custom business cards”, “cheap office supplies”, “foam packing”) Occasions & Gifts – $1.2 Billion ("funeral flowers arrangements", "flower delivery", "wedding gift registry")marketing revenues for Google from these 10 industries accounted for 60% of Google’s 2011 revenues. The remaining balance was in advertiser revenues from otherindustries than those noted above(Just 4% of Google’s revenues came from non-marketing-related sources.)
Global Market 2010 2013 ( Rounded off to the even billion)• U.S: 166, 235, 12.4%• Europe: 195. 283. 13.2%• Asia: 1 56, 323, 27.5%• Rest of world: 56, 128, 29.7%• Global: 473, 969, 19.4% Overall Global Internet Traffic is growing at 29 % per yearwww.internetretailer.com/.../global-e-commerce-sales-head-1-trillion-...
Global eCommerceChina’s e-commerce market is growing 130% a year, a U.K. e-retail trade group says.Topics: Aad Weening, Asia, Brazil, China, e-commerce spending, europe400, European Multi-channeland Online Trade Association, France, IMRG, industry statistics, international e-commerce, international marketing, Israel, Italy, Japan, Latin America, Mexico, MiddleEast, Spain, UAE, United Kingdom
Company ContactsShawnMarie Lopez- President & CEO5031 27th Ave NERio Rancho, NM 87144(505) 903-1706(505) 752-9201Email: firstname.lastname@example.orgJohn Marler, Vice President3857 Montgomery Blvd. NEAlbuquerque, NM 87109(505) 610-7421Kyra A. Liebert, Chief Financial Officer1921 Verbena Drive NERio Rancho, NM 87144(505) 450-2724Email: email@example.comPlease Note: This business plan is not an offer or solicitation to invest, buy or sell any security at this time. If the intentions of thecompany shall change in this regard at some future time, the company will in accordance with Federal SEC, State and locallaws/rules, file appropriate registration statements or exemptions therefrom.