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WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
WiZE MobileTv Malaysia Business Plan & Investment Proposal
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WiZE MobileTv Malaysia Business Plan & Investment Proposal

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WiZE Mobile, Independent Mobile Broadcasting Station …

WiZE Mobile, Independent Mobile Broadcasting Station
Business Plan and Investment Proposal

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  • 1. WiZE Mobile Sdn Bhd Malaysia Business Plan & Investment Proposal WiZE Mobile Sdn Bhd Lot 2U-4B, Pusat Daerah Seksyen 6, Jalan Nuri 6/1,, Shah Alam, Selangor. 40000 maha@mobiletv.my
  • 2. Table of Contents 1. Executive Summary..................................................................................................... 3 1.1. Objectives ............................................................................................................. 4 1.2. Mission ................................................................................................................. 6 1.3. Keys to Success .................................................................................................... 7 2. Company Summary ..................................................................................................... 9 2.1. Company Ownership ............................................................................................ 9 2.2. Company History ............................................................................................... 10 3. Services ...................................................................................................................... 12 4. Market Analysis Summary ........................................................................................ 14 4.1. Market Segmentation ......................................................................................... 15 4.2. Target Market Segment Strategy........................................................................ 17 4.3. Service Business Analysis.................................................................................. 20 4.3.1. Competition and Buying Patterns ............................................................... 22 5. Strategy and Implementation Summary.................................................................... 23 5.1. Competitive Edge ............................................................................................... 25 5.2. Marketing Strategy ............................................................................................. 27 5.3. Sales Strategy ..................................................................................................... 28 5.3.1. Sales Forecast.............................................................................................. 29 5.4. Milestones .......................................................................................................... 34 6. Management Summary ............................................................................................. 36 6.1. Personnel Plan .................................................................................................... 38 7. Financial Plan............................................................................................................ 39 7.1. Important Assumptions ...................................................................................... 39 7.2. Break-even Analysis .......................................................................................... 42 7.3. Projected Profit and Loss ................................................................................... 43 7.4. Projected Cash Flow........................................................................................... 47 7.5. Projected Balance Sheet ..................................................................................... 50 7.6. Business Ratios .................................................................................................. 51
  • 3. 1. Executive Summary WiZE mobyleTv is more personal. It's also easy for end users to find the content that they want to watch. Consumers can choose their content, whether through a tailored package of TV channels or through video streaming and downloads. It also offers a new level of direct interactivity back through the mobile network. Viewers are drawn into the action, participating in quiz shows, making bets, adding their opinion, and making purchases. MobyleTv brings operators more directly into the media world and opens opportunities for new industries to develop. MobyleTv might not follow the path of traditional multichannel TV but could deliver a combination of unicast, multicast and broadcast services including new interactive services using the return channel which would represent a new opportunity for innovative multimedia services. MobyleTv is not simply conventional TV 'on the go' - it is personal TV and a multimedia device in your pocket. Its primary value is in a converged environment where a single system can deliver all kinds of mobile TV services - an environment where viewing times are not necessarily the most relevant metric. Mobile TV trials and commercial services have proliferated recently. Rather diverse approaches have been taken to services, pricing, marketing and technology. Getting the approach right is extremely important as mistakes could be expensive and the potential of mobile TV may not be fully realised. Mobile TV services are also challenged by the fact that customer demand for acceptable form factors can limit the radio sensitivity of terminals that are often used indoors. Such constraints impose particularly demanding coverage requirements on mobile TV services. Providing the necessary level of service quality and reliability requires mobile TV to match the design parameters of a cellular radio network including the delivery of in- building coverage. MobyleTv broadcast networks therefore have to provide a higher level of received signal strength on the ground and indoors than digital terrestrial TV.
  • 4. Highlights 1.1. Objectives
  • 5. 1.2. Objectives To offers high-tech service providers a reliable, high-quality alternative to in-house resources for business development, market development, and channel development on an international scale. A true alternative to in-house resources offers a very high level of practical experience, know-how, contacts, and confidentiality. Clients must know that working with WiZe Mobile Sdn Bhd is a more professional, less risky way to develop new areas even than working completely in-house with their own people. Initial focus will be development in towards our 6 main channels, later offering our content providers their own premium channel. WiZe Mobile Sdn Bhd will offer a wide variety of compelling niche programming to mobile users within an economic model that is considered affordable by the viewer and financially rewards the operator and the program producer.
  • 6. 1.3. Mission The Broadcast Network Operator (BNO) plays a key role in the delivery of mobile TV over the MNO Network. Working together, the BNO and mobile network operator (MNO) can achieve cost- effective nationwide broadcast network roll out with good indoor coverage. Successful broadcast mobile TV depends on partnerships between mobile network operators and the broadcast service providers. It's a golden fit, with both parties enjoying the benefits of lower infrastructure investment and less risk. The opportunity for mobile
  • 7. and hybrid network operators is clear. Adding to their portfolio toward 3G communications services, WiZe Mobile Sdn Bhd strengthens existing customer relationships, opening up new revenue streams and providing a powerful way to create churn-beating sticking. 1.4. Keys to Success Five steps to mobile TV success It takes more than just launching a mobile TV service to generate worthwhile revenue. The service must be easy to activate and use. It must also provide users with value for money and enrich their lifestyle. We work with you to:
  • 8. 1. Explore the opportunity: understand the market, customer needs, and segmentation and business opportunities. Find appropriate services, the business model and the right device offering 2. Develop and deploy the service: implement the service in the network complete with charging mechanisms, followed by testing, often with friendly users 3. Excite subscribers: launch and market the service. Ensure effective service provisioning and device/phone management, as well as charging 4. Operate the service: provide appropriate care services and manage Service Level Agreements for guaranteed service quality, especially for enterprise users 5. Manage the service lifetime: manage all services throughout their lifecycle. Monitor the service performance and manage the network and its capacity
  • 9. 2. Company Summary WiZe Mobile Sdn Bhd was formed through the vision of a team of experience and well-qualified professionals to provide information technology (IT) solutions and services to customers through the combination of business and technology skills. The senior professionals in this company have experience of applying information technology to customers' businesses. Our multi–discipline and diverse expertise in field allows us to combine our technical expertise, marketing knowledge and creative talents to develop and market the best IT solution for our customers' needs. 2.1. Company Ownership  Investor Partner, Partners:  CEO -  COO -  CBD -
  • 10. 2.2. Company History XCHG Technology is a sole proprietary company, currently holding the whole IP for the technology involve in deploying this business solution. XCHG Technology is a SI company that has been establish since 2004, focusing towards technology development a new entity shall be incorporated to run the whole business operation. WiZe Mobile Sdn Bhd shall be the organization to manage and operate the business. The company anticipates that its first operation center will be located in I-City Shah Alam.
  • 11. Past Performance FY 2007 FY 2008 FY 2009 Sales $0 $0 $0 Gross Margin $0 $0 $0 Gross Margin % 0.00% 0.00% 0.00% Operating Expenses $50,000 $50,000 $50,000 Balance Sheet FY 2007 FY 2008 FY 2009 Current Assets Cash $0 $0 $0 Other Current Assets $45,000 $150,000 $150,000 Total Current Assets $45,000 $150,000 $150,000 Long-term Assets Capital Assets $200,000 $200,000 $200,000 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $200,000 $200,000 $200,000 Total Assets $245,000 $350,000 $350,000 Current Liabilities Current Borrowing $150,000 $130,000 $200,000 Other Current Liabilities $50,000 $50,000 $50,000 Total Current Liabilities $200,000 $280,000 $350,000 Long-term Liabilities $150,000 $150,000 $150,000 Total Liabilities $350,000 $430,000 $500,000 Paid-in Capital $200,000 $200,000 $200,000 Retained Earnings ($305,000) ($280,000) ($350,000) Earnings $0 $0 $0 Total Capital ($105,000) ($80,000) ($150,000) Total Capital and Liabilities $245,000 $250,000 $250,000
  • 12. Past Performance 3. Services MobyleTv is a mobile television channel that will exhibit, initially, 6 special interest mini channels to mobile phone users that have Wi- Fi or subscription to Telco 3G data platform, that allows viewers to watch programs entirely at their convenience, as many times as they wish, for free. The 6 mini-channels are targeted to special interest groups where there is a quantifiable demand for programming that hasn't been satisfied ... a programming need waiting to be filled. It is expected that additional premium content mini-channels will be offered to third party content providers which enable users to subscribe daily, weekly or monthly direct to the CP accounts. As public awareness increases and the number of viewers grow, MobyleTv shall increases its content thus encouraging local production houses to develop more mobile based content programmed.
  • 13. Services Rather than undertaking the formidable task of creating and sustaining an infrastructure capable of producing 150 hours of distinctive and high- quality programming each month, MobyleTv has chosen a unique and cost-effective business model: assembling and managing a group of content providers, who will be the producers of their own content. Under this model, MobyleTv administers the enterprise, including overall brand management (i.e., establishing and promoting a strong identity among cable operators and consumers as a unique and valuable television network), affiliate sales, trade marketing, advertising sales, technical distribution and back-office support.
  • 14. 4. Market Analysis Summary
  • 15. ONE BILLION PHONES READY FOR GREAT SERVICES While it is widely acknowledged that services on handsets are key to non-SMS data growth, analysts tend to lower expectations, as the users' uptake is not as rapid as anticipated. The relatively slow pace of the industry is usually attributed to multiple causes, ranging from the low number of high-end devices to the fact that the industry fragmentation renders application development nightmarish and extremely costly. WiZe Mobile Sdn Bhd looks at the situation from a different angle: 1) High-end handsets or smart phones account for a small percentage of the existing devices. Even if the number of smart phones grows constantly, expecting that they will represent one hundred percent of the market is unrealistic. This is why the WiZe Mobile Sdn Bhd platform allows the development of innovative applications and services that can be deployed on both mid-range and high-end devices. 2) The mobile industry is extremely fragmented and will not defragment anytime soon. Fragmentation is not all that negative: it also allows device manufacturers and service providers to differentiate, which also enables innovation. Hence, why don't we adopt fragmentation? 4.1. Market Segmentation Get a first-hand knowledge of what users are interested in and build sound marketing programs based on real data from your user's are interested in and build sound marketing programs based on real data from your users population. WiZe Mobile Sdn Bhd environment comes with an analytics platform that allows for focused and targeted marketing efforts.
  • 16. Market Analysis 2009 2010 2011 2012 2013 Potential Growth CAGR Customers Consumer Age 16 - 35% 5,000 6,750 9,113 12,303 16,609 35.00% 27 Consumer Age 27 - 40% 10,000 14,000 19,600 27,440 38,416 40.00% 40 Consumer Age 40 - 25% 2,000 2,500 3,125 3,906 4,883 25.00% 55 Business Owners 30% 1,000 1,300 1,690 2,197 2,856 30.00% Tourist 10% 3,000 3,300 3,630 3,993 4,392 10.00% Premium 45% 40,000 58,000 84,100 121,945 176,820 45.00% Consumer Advertisers 25% 100 125 156 195 244 24.98% Total 41.40% 61,100 85,975 121,414 171,979 244,220 41.40%
  • 17. Market Analysis (Pie) 4.2. Target Market Segment Strategy In 2008, the Mobile Internet may be, in some respects, where the Internet was ten to twelve years ago, i.e., in a sort of advanced infancy, with a lot of trials and errors and, more often than not, somewhat sketchy strategies. Yet, MobyleTv is most likely to blossom overnight, just as the Internet did, and in considerably higher proportions: there are over 2 billion phones in the hands of consumers today, making it the most pervasive and targeted media market one could imagine! Getting ready for that moment is primarily a matter of using the right platform today.
  • 18. 1. Traditional These are the 30 second (or less) spots typically seen on television today. 2. Long-Form These may vary from 60 seconds to 2 minutes and can take the form of traditional advertising, infomercials or advertainment. 3. Preview Spots A 30 second (or shorter) spot to preview. The content of long form advertising. Viewers to click-through. 4. Direct Response and Per Inquiry The viewer is encouraged to respond to the ad to purchase merchandise/services or to get additional information. 5. Banner Ads As described above, the viewer encounters several menus when choosing a mini-channel and then choosing a program. These menus will include banner ads that the viewer can .click-through. with his/her mobile to get additional information. 6. Companion web sites Ads will offer the viewer the ability to spontaneously access the sponsor's web. 7. Classifieds The mini-channels can offer its viewers the opportunity to advertise in an interactive classified section.
  • 19. Advertisers pay for impressions in most online banner campaigns, and for clicks in search engine marketing campaigns. However, they pay exclusively for leads in an online lead generation campaign – irrespective of the impressions and clicks that went into generating the leads. This is why online lead generation advertising is commonly referred to as Cost-per- Lead (CPL) advertising. Fact: Online Lead Generation is the fastest growing segment in online advertising. With 71% YTY growth, it is growing twice as fast as the online advertising market, and is projected to cross $2 billion by 2008. (Source: IDC Research).
  • 20. 4.3. Service Business Analysis
  • 21. Some of the multiple benefits for advertisers include: a) Precise targeting Any user can be qualified with the utmost accuracy. If you have a GPS, a MobyleTv driven advertising campaign can alert you if there is a promotion on items for which you have shown interest in the mall where you are walking. This level of granularity is possible today as WiZe Mobile Sdn Bhd transparently combines data from multiple sources within a unified interface - in other words, delivers mash ups on the fly. b) Wide range of ad designs MobyleTv enables the largest possible range of advertising styles from simple context-sensitive texts to elaborate video animations, with clicks to call or clicks to SMS. The ad specifications can also be of virtually any type ranging from very short interstitials to clickable banners, rectangles, skyscrapers, or surround sessions enabling advertisers to create a story line that develops as users navigate within an application. Because of the powerful Rich Media capabilities offered by WiZe Mobile Sdn Bhd, only creative skills are the limit of what can be conceived. c) Massive audience and massive content The slow take-up of mobile data services has inevitably translated into a slow take-up of advertising. As indicated earlier, by being OS and device agnostic, MobyleTv eliminates the silted implementation of services, and its overall technology considerably simplifies access to the Web, which enables even small vendors to also implement mobile services at reasonable costs. d) Real-time copy-testing
  • 22. The MobyleTv dynamic, real-time enables advertisers to easily copy- test their advertisements and based on initial reactions, select what works best for a given audience. In reality, no advertisement needs to ever be in a final state. Just as any content served by a content provider, a piece of advertising is an ongoing service that is likely to improve continuously based on users' reactions. 4.3.1. Competition and Buying Patterns
  • 23. A cell phone is virtually always on – which means that users can always connect or be invited to connect to a service. The unique efficiency of WiZe Mobile Sdn Bhd for advertising results from the combination of several unique aspects of the technology:  A terrestrial generalist channel simulcasts on mobile, with a wide audience.  A new "made for mobile" channel broadcast exclusively on the mobile broadcast network.  A premium channel simulcasts on mobile.  The solution is commercialized in a country with approximately 70 000 inhabitants at the date of trial launch.  Revenue is calculated based on the service’s theoretical audience, i.e. where all equipped users (for the free model)/subscribers (for the fee-based model) actually consume the service.  Common Short Codes represent the fastest, surest, and most proven way for brands and organizations of any size to obtain access to today's mobile culture and create a mobile presence. Using CSCs and layering on a mobile marketing campaign can typically represent a fraction of a marketing budget, and existing marketing collateral information can easily be repurposed for mobil e. Companies should begin to think today about how to mobilize their brands with CSCs. 5. Strategy and Implementation Summary CRM has proven its ability to enhance business performance time and time again. However, the path to effective implementation is not always easy - complexities often arise as a result of trying to align an entire company behind the concept. You can find the success that comes from leveraging customer knowledge to the fullest measure by following these steps:
  • 24. 1.Calculate the value. Exactly how will CRM benefit your business? Strive to answer this question in terms of measurable ROI (return on investment) and how CRM helps your employees use customer data more effectively. 2. Work closely with key departments. Good planning is critical to your success. 3. Budget realistically. Be a bit pessimistic when it comes to the budget to avoid the painful process of increasing cost estimates. 4. Organize customer data. The underlying customer data is the backbone of a CRM solution. 5. Lead the project from the top down. CRM as a corporate- level initiative, dedicate significant time and energy, motivate stakeholders and keep everyone on track. 6. Implement gradually. 7. Actively manage the implementation. Technical difficulties, management turnover, employee resistance and adjustments in company direction will happen. Managers need to stay on their toes and quickly address changes to maintain momentum. 8. Develop a culture of continuous improvement. CRM solutions should be adjusted to deliver a sharper competitive edge as a company and its business evolve. Be sure to keep employees in the communication loop, and they will help supply the information needed to continuously improve the way the system leverages customer information. Not all companies will achieve CRM success because many fail to take into account the items listed above. Then again, for the ones who do succeed, the rewards are great. Stick to these steps, and you will rig the game in your favor.
  • 25. 5.1. Competitive Edge
  • 26. New 24/7 Channels - The most successful mini-channels will have the opportunity to evolve into new 24/7 channels, dramatically increasing the company revenues as well as its market position as the premier content supplier to mobile. Direct Response Advertising Sales -Through its application of Free to Air TV Station over mobile technology and internet websites, MobyleTv is, at its core, a powerful direct response advertiser and sales agent of specialized programming. The programming offered on these mini-channels opens the viewer to a vast array of products and services catering to his/her unique interests. Next Generation Technology - Through its technological expertise and extensive library of short-form content, MobyleTv anticipates that it will dominate distribution of special interest programming to next-generation platforms (content over cell phones, PDAs, etc.). Media Sales - In servicing its many mini-channels, MobyleTv have the opportunity to develop its own powerful media buying agency thereby creating a substantial profit center. Direct Response Fulfillment – MobyleTv will have the opportunity to create its own fulfillment operation to service direct response sales for its many mini-channels. Production and Studio Facilities – MobyleTv will develop its own production/studio facility. It will be able to lease its production services to its various mini-channel producers, re-purpose programs for other media and retail distribution, and cost-effectively produce a variety of programming. Data Bank of Targeted Demographics - As MobyleTv develops its various services, it will acquire a tremendous wealth of proprietary data in relation to targeted markets: consumers. Viewing habits, demographics, psychographics, effectiveness of various types of advertising, sales, etc. As its data grows, the company will emerge as a leader in the targeted advertising and sales industry with its bank of invaluable data.
  • 27. Licensable Intellectual Property - Through its pioneering and cost- effective use of the new technologies in superior quality low bandwidth media streaming, MobyleTv is in the position of developing the first bona-fide economically feasible models of media convergence. As an industry leader in this exciting new arena, the company will develop intellectual property that can be licensed to third-parties. Expansion to International Markets -Many, if not most, of the above businesses can be expanded into the international marketplace as the value of the MobyleTv brand grows. 5.2. Marketing Strategy MobyleTv is the first open and transparent cost per lead (CPL) market for publishers, advertisers and technology providers. Advertisers connect to brand-conscious consumers through MobyleTv and pay only for specific customer leads, not just clicks or impressions that might never convert. MobyleTv has redefined consumer lead generation marketing, the fastest growing segment in online advertising. The company makes advertising accountable and delivering on advertiser demand for performance based pricing models. These are the pricing methods commonly found in the online advertising industry:  CPM: Cost per Thousand. The CPM model refers to advertising bought on the basis of impressions. Advertisers pay a predetermined price for a thousand impressions.  CPC: Cost per Click. Advertisers pay for a click, irrespective of the impressions. Commonly found in search advertising. Also referred to as PPC (Pay per Click) advertising.  CPL: Cost per Lead. Advertisers pay for customer leads, irrespective of clicks or impressions. Fastest growing segment in online advertising.
  • 28. 5.3. Sales Strategy
  • 29. ACTIVITY LIVE STREAMING? M-AWARD SHOW? M-MUSIC SHOW? M-FASHION OTHER REVENUE STREAM M-DOWNLOADS… LIVE STREAMING… M-HEALTH… M-AWARD SHOW… M-LEARNING… M-MUSIC SHOW… M-BANKING… M-FASHION… 5.3.1. Sales Forecast Mobile TV should be anytime, anywhere and anything – Anytime: watching television every moment of the day: as a time killer or dedicated in the evening and at night – Anywhere: watching mobile television wherever you want: private and public spaces (limited due to social pressure) – Anything: same content as traditional TV, but shorter time sessions.
  • 30. Sales Forecast FY 2010 FY 2011 FY 2012 Unit Sales CSC 250,000 350,000 500,000 CPM 250,000 350,000 500,000 CPC 250,000 350,000 500,000 CPL 250,000 350,000 500,000 CRM 250,000 350,000 500,000 Total Unit Sales 1,250,000 1,750,000 2,500,000 Unit Prices FY 2010 FY 2011 FY 2012 CSC $1.00 $1.00 $1.00 CPM $0.50 $0.50 $0.50 CPC $0.50 $0.50 $0.50 CPL $0.50 $0.50 $0.50 CRM $0.50 $0.50 $0.50 Sales CSC $250,000 $350,000 $500,000 CPM $125,000 $175,000 $250,000 CPC $125,000 $175,000 $250,000 CPL $125,000 $175,000 $250,000 CRM $125,000 $175,000 $250,000 Total Sales $750,000 $1,050,000 $1,500,000 Direct Unit Costs FY 2010 FY 2011 FY 2012 CSC $0.55 $0.55 $0.55 CPM $0.28 $0.28 $0.28 CPC $0.28 $0.28 $0.28 CPL $0.28 $0.28 $0.28 CRM $0.28 $0.28 $0.28 Direct Cost of Sales CSC $137,500 $192,500 $275,000 CPM $68,750 $96,250 $137,500 CPC $68,750 $96,250 $137,500 CPL $68,750 $96,250 $137,500 CRM $68,750 $96,250 $137,500 Subtotal Direct Cost of Sales $412,500 $577,500 $825,000
  • 31. Sales Monthly
  • 32. Sales by Year
  • 33. 5.4. Milestones MobyleTv: 1. A better understanding of the wants (expectations) of the customer because it is: based on the reality of the market estimated in an objective way 2. A better economic planning of the purposes and the objectives of the company by centering on what takes place outside controlled 3. A better increase of the productivity: resolution of the real problems Understanding of the processes and what they produce” 4. Better current practices Search for the change many decisions practices of break 5. A better competitiveness thanks to: a solid knowledge of the competition a strong implication of the staff new ideas on practices and tried techniques
  • 34. Milestones Milestone Start Date End Date Budget Manager Department Startup fund 4th qtr 1st qtr $2,000,000 PASHA CEO 2009 2010 Setup New Co 4th qtr 1st qtr FIRDAUS CFO 2009 2010 Main Personnel 4th qtr 1st qtr PASHA CEO 2009 2010 Setup Office 4th qtr 4th qtr FIRDAUS CFO 2009 2009 Purchasing Assets For Infra 4th qtr 1st qtr PASHA CEO 2009 2010 Bandwidth acquisition 4th qtr 1st qtr FIRDAUS CFO 2009 2010 Setup Main Operation 4th qtr 1st qtr PASHA CEO Personnel 2009 2010 Dry Run Trial 4th qtr 1st qtr FIRDAUS CFO 2009 2010 Grants Acquisitions 4th qtr 1st qtr PASHA CEO 2009 2010 Pre Launch Ceremony 4th qtr 01.01.10 FIRDAUS CFO 2009 Totals $2,000,000
  • 35. Milestones 6. Management Summary Pasha Zahari - CEO/CTO Pasha Zahari is the backbone of XCHG Technology; and he currecntly holds the position of Managing Director. He completed his SPM (Sijil Pelajaran Malaysia) in 1996 at Sek Men Sultan Salahudin Abdul Aziz Shah in Shah Alam, Selangor. In 1999, he received his Professional Certificate in Computer Science/Information Technology at BMC Institute before continuing to pursue a Bachelor's Degree in the same subject at Universiti Tun Abdul Razak in Kelana Jaya, Selangor. The most notable companies he has worked for are Ericsson Malaysia, Pintar Technology, KnowledgeBaze and Jaring Malaysia. In Ericsson, Pasha garnered experience as IT System Integrator from 1999 to 2002. His responsibilities included supporting the company and consulting on the new technologies that should be implemented. His many
  • 36. accomplishments include VoIP via Ericsson routers and WAP and GPRS development. In mid 2002, he was recruited by Pintar Technology as its Technical Consultant. He was responsible for the tenure to complete 447 IT school laboratories all throughout the Northern region. His other duties included Internal Support, System Administrator, System Developer and Integrator. He then spread his wings to KnowledgeBaze (M) Sdn Bhd and was recruited as its Technical Executive. His highest accomplishment, and would be most likely to be remembered for having a hand in "Projek penyediaan infrastructur fizikal makmal komputer di zon utara Semananjung Malaysia" as its System Designer. He duties there also included internal support, IS/IT, system administrator, project management and project coordination. His last employer before starting up XCHG Technology would be Jaring Communications Sdn Bhd. He held the position of NOC/NMC Engineer for 2 years. His duties included Network Support/monitoring for Jaring's VPN, Lease Line, Wireless Broadband etc. Pasha Zahari is a multi skilled individual. His prowess in both Business Management and hands on skills in IT are enviable and surpasses expectations. Despite his age, he has a reputation for being a killer in boardroom presentations and public speaking. He is fluent in both English and Bahasa; and highly skilled in Networking, PC maintenance and repair, NT server, SQL, Access, C++, pascal, Visual Basic, WAP (WML development), MS Exchange server etc. He is also very active; camping and football being his favorite pastimes. He is dependable, a capable leader and a highly energetic and positive individual. Firdaus Mohammad Zainal - COO With his mass Communication background, he has worked in almost all television station in the country. Started as a 'stringer' for TV3 from 1996-1997, and later in Metrovision as a Broadcast Journalist in 1997 to 1998.
  • 37. Firdaus developed his intrest in investigative reporting after joining ntv7 and worked in Edisi Siasat in 2003. He was one of the journalists who went to Southern Thailand at the height of the political crisis in 2004. After the takeover of ntv7 by Media prima in 2006, he was transferred to TV9. He later resigned from TV9. Currently, Firdaus Maju Sdn Bhd, a Production House under Firdaus Mohammad Zainal are resposible to produce television programs for RTM and Astro. 6.1. Personnel Plan Customer service is paramount in our business and our business plan. The management team will accomplish this goal by targeting employees who are willing to be trained and by providing encouragement and employee incentive programs:  Health care insurance;  Dental care insurance;  Life insurance;  Vacation time;  Up sell incentive programs;  Discount passes for staff family members;  401k retirement plans;  Pay checks. Our Personnel Plan reflects how we intend to utilize our peoples' assets. Most of them will be cross trained and the management team of WiZE Mobile Sdn Bhd believes that an employee who is happy at work will enjoy working. It is always easier to please customers with a staff that cares, a facility that is clean and equipment that is kept in proper working order.
  • 38. Personnel Plan FY 2010 FY 2011 FY 2012 CEO $156,000 $200,000 $230,000 CFO $132,000 $170,000 $200,000 CTO $120,000 $150,000 $180,000 COO $144,000 $180,000 $210,000 TECHNICAL $180,000 $250,000 $250,000 HUMAN RESOURCE $36,000 $100,000 $100,000 BUSINESS DEVELOPMENT $144,000 $200,000 $200,000 Total People 21 50 100 Total Payroll $912,000 $1,250,000 $1,370,000 7. Financial Plan 7.1. Important Assumptions Creating a dialog and a relationship. CSCs (common short codes) are being used effectively to create a dialog with mobile users. Voting, polling, requests for feedback, sweepstakes, and contests all require interactivity with the consumer and the brand. This interaction through CSCs provides valuable information about target audiences, allowing organizations to even more closely tailor their products and associated marketing to evolving marketplace needs.  Customer and employee communications. CSCs and text messaging are being used by companies and even schools distribute information, such as employee alerts, school closings, airline reservation updates, and sales alerts. Catalog companies and direct-to-consumer mobile commerce companies are using CSCs along with keyword item numbers as a way to allow customers to order products without calling into a service center. This approach reduces
  • 39. the number of calls handled by operators, which in turn reduce s costs and can increase customer satisfaction.  Increasing brand reach. CSCs are also playing a key role in increasing the reach of brands and organizations. For instance, groups in the United States that may index low for home PC penetration conversely often index high for mobile phones. Through CSCs, they can now be reached with electronic media. In the developing world, national short codes allow consumers to be cost- effectively reached on an individual basis for the first time ever, whereas previously, advertising campaigns were limited to mass-market radio and billboards.  Sales lead generation. U.S. companies of all sizes are using CS Cs in their marketing efforts to generate interest and engageme nt with brands, which immediately or eventually turn into sales leads. For instance, Lexus successfully used CSCs to develop self- qualified sales leads. And it has been reported that Denver- based Clarion Ventures is planning to launch the CSC that spells the word "House" on the cell phone keypad as a way for users to request that more information be sent to their cell phones on houses that are for sale. Brands have reported that potential customers who signal their product interest through CSCs are often highly motivated, which can result in CSC response rates as high as 10%.  Content distribution. Short codes are one of the key ways that mobile content providers distribute content directly to mobile users, which avoids reliance on already-crowded wireless carrier "content decks." Carrier decks are the screens of content options that each carrier's subscribers see on their cell phones. Getting placement on a carrier deck is a costly and long process and must be done on a carrier-by- carrier basis. While brands can get immediate access to all subscribers on a particular carrier deck, carriers make frequent changes to their decks, offering less control for brands. By using CSC and other forms of "off deck" access, brands can reach almost all wireless users, not just those of a particular carrier. Fundraising. Nonprofits are increasingly interested in
  • 40. short codes for fundraising efforts, having successfully used them to raise relief funds for the 2004 tsunami in Asia and for Hurricane Katrina in 2005.  Mobile advertising. Brands from almost every industry sector are beginning to incorporate CSCs into their marketing campaigns such as on billboards, in print, and even in TV advertising in order to deliver additional marketing information directly to users. For instance, shows on MTV regularly include CSC information to further involv e audiences and drive additional content sales. New mobile advertising formats are coming onto the scene, including banner ads, sponsorships, product placement and idle screens, and pre- and post- roll video. Like CSCs, each of these mobile advertising formats is a sophisticated way to reach customers. In fact, text advertising can be added to CSCs so that the confirming message the consumer receives from the brand can also have a line of advertising in it. This not only allows brands to engage with consumers through CSCs but also allows their clo sest advertisers to advertise contextually next to the appropriate mobile content. However, unlike most mobile advertising, CSCs require single or double opt- ins. Thus, brands know consumers are interested and receptive to messages initiated by CSCs.  Building databases. Information is power, and savvy organizations are using CSCs to build powerful mobile information databases on existing and prospective customers, such as what promotions they respond to, which mobile coupons they actually redeem and when and how often they respond to mobile alerts, by integrating CSC response data into existing databases. These databases can be used to develop and support loyalty programs, coupon and direct response offers, and Internet-like experiences with media ranging from print to radio.
  • 41. 7.2. Break-even Analysis Break-even Analysis Monthly Units Break-even 318,704 Monthly Revenue Break-even $191,222 Assumptions: Estimated Monthly Fixed Cost $86,050 Break-even Analysis
  • 42. 7.3. Projected Profit and Loss Pro Forma Profit and Loss FY 2010 FY 2011 FY 2012 Sales $750,000 $1,050,000 $1,500,000 Direct Cost of Sales $412,500 $577,500 $825,000 Other Costs of Sales $0 $0 $0 ------------ ------------ ------------ Total Cost of Sales $412,500 $577,500 $825,000 Gross Margin $337,500 $472,500 $675,000 Gross Margin % 45.00% 45.00% 45.00% Expenses Payroll $912,000 $1,250,000 $1,370,000 Marketing/Promotion $0 $0 $0 Depreciation $0 $0 $0 Rent $0 $0 $0 Utilities $0 $0 $0 Insurance $0 $0 $0 Payroll Taxes $120,600 $0 $0 Other $0 $0 $0 ------------ ------------ ------------ Total Operating Expenses $1,032,600 $1,250,000 $1,370,000 Profit Before Interest and ($695,100) ($777,500) ($695,000) Taxes Interest Expense $31,458 $20,000 $20,000 Taxes Incurred $0 $0 $0 Net Profit ($726,558) ($797,500) ($715,000) Net Profit/Sales -96.87% -75.95% -47.67%
  • 43. Profit Monthly
  • 44. Profit Yearly
  • 45. Gross Margin Monthly
  • 46. Gross Margin Yearly 7.4. Projected Cash Flow
  • 47. Cash
  • 48. Pro Forma Cash Flow FY 2010 FY 2011 FY 2012 Cash Received Cash from Operations Cash Sales $750,000 $1,050,000 $1,500,000 Subtotal Cash from Operations $750,000 $1,050,000 $1,500,000 Additional Cash Received Sales Tax, VAT, HST/GST $0 $0 $0 Received New Current Borrowing $500,000 $0 $0 New Other Liabilities (interest- $0 $0 $0 free) New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $500,000 $0 $0 Sales of Long-term Assets $3,000,000 $0 $0 New Investment Received $5,000,000 $0 $0 Subtotal Cash Received $9,750,000 $1,050,000 $1,500,000 Expenditures FY 2010 FY 2011 FY 2012 Expenditures from Operations Cash spending $912,000 $1,250,000 $1,370,000 Subtotal Spent on Operations $427,310 $589,492 $784,831 Additional Cash Spent Sales Tax, VAT, HST/GST $0 $0 $0 Paid Out Principal Repayment of $250,000 $0 $0 Current Borrowing Other Liabilities Principal $500,000 $0 $0 Repayment Long-term Liabilities Principal $500,000 $0 $0 Repayment Purchase Other Current Assets $350,000 $0 $0 Purchase Long-term Assets $3,000,000 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $5,027,310 $589,492 $784,831 Net Cash Flow $4,722,690 $460,508 $715,169 Cash Balance $4,722,690 $5,183,198 $5,898,367
  • 49. 7.5. Projected Balance Sheet Pro Forma Balance Sheet FY 2010 FY 2011 FY 2012 Assets Current Assets Cash $4,722,690 $5,183,198 $5,898,367 Other Current Assets ($0) ($0) ($0) Total Current Assets $4,722,690 $5,183,198 $5,898,367 Long-term Assets Long-term Assets $200,000 $200,000 $200,000 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $200,000 $200,000 $200,000 Total Assets $4,922,690 $5,383,198 $6,098,367 Liabilities and Capital FY 2010 FY 2011 FY 2012 Current Liabilities Current Borrowing $550,000 $550,000 $550,000 Other Current Liabilities ($450,000) ($450,000) ($450,000) Subtotal Current Liabilities $100,000 $100,000 $100,000 Long-term Liabilities ($350,000) ($350,000) ($350,000) Total Liabilities ($250,000) ($250,000) ($250,000) Paid-in Capital $5,200,000 $5,200,000 $5,200,000 Retained Earnings ($350,000) ($1,076,558) ($1,874,058) Earnings ($726,558) ($797,500) ($715,000) Total Capital $4,123,442 $3,325,942 $2,610,942 Total Liabilities and Capital $3,873,442 $3,075,942 $2,360,942 Net Worth $5,172,690 $5,633,198 $6,348,367
  • 50. 7.6. Business Ratios Ratio Analysis FY 2010 FY 2011 FY 2012 Industry Profile Sales Growth 0.00% 40.00% 42.86% 5.66% Percent of Total Assets Other Current Assets 0.00% 0.00% 0.00% 63.56% Total Current Assets 95.94% 96.28% 96.72% 75.77% Long-term Assets 4.06% 3.72% 3.28% 24.23% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 2.03% 1.86% 1.64% 13.29% Long-term Liabilities -7.11% -6.50% -5.74% 32.17% Total Liabilities -5.08% -4.64% -4.10% 45.46% Net Worth 105.08% 104.64% 104.10% 54.54% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 45.00% 45.00% 45.00% 78.28% Selling, General & 141.87% 120.95% 92.67% 47.76% Administrative Expenses Advertising Expenses 0.00% 0.00% 0.00% 3.91% Profit Before Interest and -92.68% -74.05% -46.33% 3.85% Taxes Main Ratios Current 47.23 51.83 58.98 2.38 Quick 47.23 51.83 58.98 1.89 Total Debt to Total Assets -5.08% -4.64% -4.10% 57.57% Pre-tax Return on Net Worth -14.05% -14.16% -11.26% 3.42% Pre-tax Return on Assets -14.76% -14.81% -11.72% 8.06% Additional Ratios FY 2010 FY 2011 FY 2012 Net Profit Margin -96.87% -75.95% -47.67% n.a Return on Equity -14.05% -14.16% -11.26% n.a Activity Ratios Accounts Payable Turnover 4.11 4.11 4.11 n.a Payment Days 77 86 76 n.a Total Asset Turnover 0.15 0.20 0.25 n.a Debt Ratios Debt to Net Worth -0.05 -0.04 -0.04 n.a
  • 51. Current Liab. to Liab. 0.00 0.00 0.00 n.a Liquidity Ratios Net Working Capital $4,622,690 $5,083,198 $5,798,367 n.a Interest Coverage -22.10 -38.87 -34.75 n.a Additional Ratios Assets to Sales 6.56 5.13 4.07 n.a Current Debt/Total Assets 2% 2% 2% n.a Acid Test 47.23 51.83 58.98 n.a Sales/Net Worth 0.14 0.19 0.24 n.a Dividend Payout 0.00 0.00 0.00 n.a
  • 52. Sales Forecast Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Unit Sales CSC 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 CPM 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 CPC 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 CPL 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 CRM 0% 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 Total 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 104,167 Unit Sales Unit Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Prices CSC $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 CPM $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 CPC $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 CPL $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 CRM $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 Sales CSC $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 CPM $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 CPC $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 CPL $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 CRM $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 $10,417 Total $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 Sales Direct Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Unit Costs CSC 55.00% $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55
  • 53. CPM 55.00% $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 CPC 55.00% $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 CPL 55.00% $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 CRM 55.00% $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 $0.28 Direct Cost of Sales CSC $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 $11,458 CPM $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 CPC $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 CPL $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 CRM $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 $5,729 Subtotal $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 Direct Cost of Sales
  • 54. Personnel Plan Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CEO 0% $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 $13,000 CFO 0% $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 $11,000 CTO 0% $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 COO 0% $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 TECHNICAL 0% $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 HUMAN 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 RESOURCE BUSINESS 0% $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 DEVELOPMENT Total People 21 21 21 21 21 21 21 21 21 21 21 21 Total Payroll $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000
  • 55. Pro Forma Profit and Loss Oct Nov Dec Jan Feb Mar Apr May Jun J Sales $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,5 Direct Cost of Sales $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,3 Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ --------- Total Cost of Sales $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,375 $34,3 Gross Margin $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,125 $28,1 Gross Margin % 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00 Expenses Payroll $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,0 Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 Payroll Taxes 15% $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,050 $10,0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ --------- Total Operating $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,050 $86,0 Expenses Profit Before Interest ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,925) ($57,92 and Taxes Interest Expense $3,576 $3,403 $3,229 $3,056 $2,882 $2,708 $2,535 $2,361 $2,188 $2,0 Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Profit ($61,501) ($61,328) ($61,154) ($60,981) ($60,807) ($60,633) ($60,460) ($60,286) ($60,113) ($59,93 Net Profit/Sales -98.40% -98.12% -97.85% -97.57% -97.29% -97.01% -96.74% -96.46% -96.18% -95.90
  • 56. Pro Forma Cash Flow Oct Nov Dec Jan Feb Mar Apr May Jun Cash Received Cash from Operations Cash Sales $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62, Subtotal $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62,500 $62, Cash from Operations Additional Cash Received Sales Tax, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 VAT, HST/GST Received New Current $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41, Borrowing New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 Liabilities (interest- free) New Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 term Liabilities Sales of $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41, Other Current Assets Sales of $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250, Long-term
  • 57. Assets New $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416,667 $416, Investment Received Subtotal $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812,500 $812, Cash Received Expenditures Oct Nov Dec Jan Feb Mar Apr May Jun Expenditures from Operations Cash $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76,000 $76, spending Subtotal $0 $0 $1,600 $47,996 $47,822 $47,648 $47,475 $47,301 $47,128 $46, Spent on Operations Additional Cash Spent Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 VAT, HST/GST Paid Out Principal $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20, Repayment of Current Borrowing Other $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41, Liabilities Principal Repayment Long-term $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41,667 $41, Liabilities
  • 58. Principal Repayment Purchase $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29,167 $29, Other Current Assets Purchase $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250, Long-term Assets Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal $383,333 $383,333 $384,933 $431,329 $431,155 $430,982 $430,808 $430,634 $430,461 $430, Cash Spent Net Cash $429,167 $429,167 $427,567 $381,171 $381,345 $381,518 $381,692 $381,866 $382,039 $382, Flow Cash $429,167 $858,334 $1,285,900 $1,667,071 $2,048,416 $2,429,934 $2,811,626 $3,193,492 $3,575,531 $3,957, Balance
  • 59. Pro Forma Balance Sheet Oct Nov Dec Jan Feb Mar Apr May Jun Assets Starting Balances Current Assets Cash $0 $429,167 $858,334 $1,285,900 $1,667,071 $2,048,416 $2,429,934 $2,811,626 $3,193,492 $3,575,531 Other $150,000 $137,500 $125,000 $112,500 $100,000 $87,500 $75,000 $62,500 $50,000 $37,500 Current Assets Total $150,000 $566,667 $983,333 $1,398,400 $1,767,071 $2,135,916 $2,504,934 $2,874,126 $3,243,491 $3,613,031 Current Assets Long-term Assets Long-term $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 Assets Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Depreciation Total Long- $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 term Assets Total Assets $350,000 $766,667 $1,183,333 $1,598,400 $1,967,071 $2,335,916 $2,704,934 $3,074,126 $3,443,491 $3,813,031 Liabilities Oct Nov Dec Jan Feb Mar Apr May Jun and Capital Current Liabilities Current $300,000 $320,833 $341,667 $362,500 $383,333 $404,167 $425,000 $445,833 $466,667 $487,500 Borrowing Other $50,000 $8,333 ($33,333) ($75,000) ($116,667) ($158,333) ($200,000) ($241,667) ($283,333) ($325,000) Current
  • 60. Liabilities Subtotal $350,000 $329,167 $308,333 $287,500 $266,667 $245,833 $225,000 $204,167 $183,333 $162,500 Current Liabilities Long-term $150,000 $108,333 $66,667 $25,000 ($16,667) ($58,333) ($100,000) ($141,667) ($183,333) ($225,000) Liabilities Total $500,000 $437,500 $375,000 $312,500 $250,000 $187,500 $125,000 $62,500 ($0) ($62,500) Liabilities Paid-in $200,000 $616,667 $1,033,333 $1,450,000 $1,866,667 $2,283,333 $2,700,000 $3,116,667 $3,533,333 $3,950,000 Capital Retained ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) ($350,000) Earnings Earnings $0 ($61,501) ($122,829) ($183,983) ($244,964) ($305,771) ($366,404) ($426,864) ($487,150) ($547,263) Total ($150,000) $205,165 $560,504 $916,017 $1,271,703 $1,627,563 $1,983,596 $2,339,803 $2,696,183 $3,052,738 Capital Total $350,000 $642,665 $935,504 $1,228,517 $1,521,703 $1,815,063 $2,108,596 $2,402,303 $2,696,183 $2,990,238 Liabilities and Capital Net Worth ($150,000) $329,167 $808,333 $1,285,900 $1,717,071 $2,148,416 $2,579,934 $3,011,626 $3,443,491 $3,875,531
  • 61. Business Plan By – Mahadevan Chief Development Officer maha@mobyletv.com WiZE Mobile Sdn Bhd

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