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Mindbanking.co project Q2 2012

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Biz & Finance plan for Mindbanking.co project from Q2 2012

Biz & Finance plan for Mindbanking.co project from Q2 2012

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  • 1. http://mindbanking.co // ceo@mindbanking.coAna Sorić / MA in Communications / CEO / +385 91 9080666 / +385 92 1475491 / / www.oneofthree.biz / CEO@oneofthree.biz
  • 2. Confidentiality AgreementThe undersigned reader ac knowledges that the information provided by _______________ in thisbusiness plan is confidential; therefore, reader agrees not to disc lose it without the expresswritten permission of _______________.It is ac knowledged by reader that information to be furnished in this business plan is in all respec tsconfidential in nature, other than information which is in the public domain through other meansand that any disc losure or use of same by reader, may cause serious harm or damage to_______________.Upon request, this document is to be immediately returned to _______________.___________________Signature___________________Name (typed or printed)___________________DateThis is a business plan. It does not imply an offering of securities.
  • 3. Table of Contents1.0 Executive Summary.............................................................................................................................1 1.1 Objectives ...................................................................................................................................2 1.2 Mission........................................................................................................................................3 1.3 Keys to Success ........................................................................................................................42.0 Company Summary.............................................................................................................................6 2.1 Company Ownership .................................................................................................................6 2.2 Start-up Summary ......................................................................................................................73.0 Products and Services .....................................................................................................................104.0 Market Analysis Summary................................................................................................................12 4.1 Market Segmentation..............................................................................................................16 4.2 Target Market Segment Strategy...........................................................................................18 4.3 Service Business Analysis .....................................................................................................18 4.3.1 Competition and Buying Patterns .............................................................................195.0 Strategy and Implementation Summary..........................................................................................21 5.1 SWOT Analysis ........................................................................................................................21 5.1.1 Strengths ......................................................................................................................22 5.1.2 Weaknesses................................................................................................................22 5.1.3 Opportunities ...............................................................................................................22 5.1.4 Threats .........................................................................................................................22 5.2 Competitive Edge....................................................................................................................23 5.3 Marketing Strategy ..................................................................................................................24 5.4 Sales Strategy..........................................................................................................................26 5.4.1 Sales Forecast............................................................................................................28 5.5 Milestones ................................................................................................................................306.0 Management Summary ....................................................................................................................31 6.1 Personnel Plan.........................................................................................................................317.0 Financial Plan ....................................................................................................................................32 7.1 Projections................................................................................................................................32 7.2 Start-up Funding ......................................................................................................................32 7.3 Important Assumptions............................................................................................................33 7.4 Break-even Analysis................................................................................................................33 7.5 Projected Profit and Loss .......................................................................................................34 7.6 Projected Cash Flow...............................................................................................................37 7.7 Projected Balance Sheet ........................................................................................................38 7.8 Business Ratios .......................................................................................................................39 7.9 Long-term Plan.........................................................................................................................41 Page 1
  • 4. MindBanking1.0 Executive Summary MindBanking is a global business networking portal, offering services which empower users to fully develop manage and build their projects. MindBanking is a one-stop-shop which has a certain potential to become fully equipped and serviced global office. MindBanking.com is a console for developing business. The objective is to create vibrant an interactive online business portal, where biggest and smallest entrepreneurs could meet, providing a generator or incubator of ideas, for new business opportunities that are about to lead to new businesses, products and services. Mindbanking project belongs to the online business social networking online services. Revenue models for this kind of services include subscription fees, advertising, service sales (pay per piece and subscription), and respectively brokerage. Our position in the business social networking market would be significant since we would be offering a unique online working and developing platform and hope to create unique, vibrant and powerful community. The main objective of MindBanking.com is to become an entrepreneurs main working platform; to become their office, business space and their home page; the first thing to visit when they go online, as well as the last before going offline; spending an average 4 hours per day using MindBanking portal/application/platform. The goal is also to create such a powerful and vibrant community, which would respectively compel investors to become active in searching and "pulling" projects. Furthermore socio-economic trends like hard labor as well as repetitive labor being replaced with machines, technology and robotics, is shaping our social landscape; as well as trends in economy such as domination of services economy and inauguration of post- industry which puts the intellectual production, “virtual” goods and services at the pivotal place in the economy. For example estimated worth of Facebook at the beginning of 2011 have been around 50 billion USD; however the value is not estimated as the value of brick and mortar properties, but the equity is measured by the value of its community, quality of its intellectual goods and services, (and a basic social networking service is free!), and its impact and influence on the social reality. All mentioned are the arguments that the project has anticipated the future market, new economies and new business infrastructure. Page 1
  • 5. MindBanking1.1 Objectives The objective of this project is to perceive the new media and communication world as a (new) business developing platform. Social networks proved to be a new media mantra; however its business developing potential has yet not been proven. MindBanking project is as much community and development as it is profit driven. The objective is to create vibrant an interactive online business portal, where biggest and smallest entrepreneurs could meet, providing a generator or incubator of ideas, for new business opportunities that are about to lead to new businesses, products and services. The project has a strong market (or attention) value since its target groups belong to both consumers and businesses. MindBanking caters to all business interactions; B2B, B2C, C2B, C2C and all other future ones. Page 2
  • 6. MindBanking1.2 Mission MindBanking generates business ideas that could bring together entrepreneurs and potential entrepreneurs. This online service would help generate profit by creating a community that would among other things develop projects using unique working/ development platform, furthermore by constantly upgrading services and by building a community. Interaction (a network) of market sectors could create exciting business scene. The system used in building infrastructure of the project is drawn from network theory, system theory and the Attention Economy. The program strives to comprise complex and dynamic infrastructure to be able to ensure sustainability as well as constant progress and development thus constant growth of revenue. The system and infrastructure of the project will also be continually scrutinized and upgraded. Page 3
  • 7. MindBanking1.3 Keys to Success Although global economy is a reality, only several business enclaves like New York, Dubai, Silicon Valley, Hong Kong or similar could claim its business supremacy since they represent centers or/and conglomerates of business activity. We could say that being in one place gives them the strength or better said energy to progress and develop and to become economic forerunner. MindBanking prospers on that same premise. To put in the same space independent innovators, SME, global corporations, investors, thriving individuals with new ideas, entrepreneurs, and such, and to deploy its multi-interaction could truly produce new marketplace as well as new economies or new business idioms. The project presupposes a vision of a new business scene and its infrastructure through the idea – everyone is an entrepreneur. Numerous trends show that developing own business is the future of economic scene, thus the project meets that basic need. Almost every innovator claims the same – we do not know how to do the business!; MindBanking is empowered to deal with the mentioned problem through offering online business plan platform, production, workflow and project management tools, interaction tools and playful and user-friendly business environment. Furthermore, the main objective of MindBanking is to become an entrepreneurs main working platform; to become their office, business space and their home page; the first thing to visit when they go online, as well as the last before going offline; spending an average 4 hours per day using MindBanking portal/application/platform as their ultimate business console. The goal is also to create such a powerful and vibrant community, which would respectively compel investors to become active in searching and "pulling" projects. MindBanking thrives on the premise that everyone is a potential entrepreneur; if we furthermore take into consideration digitally converged media environment that empowers every user to create its own business opportunity, along with the idea that the online infrastructure will prevail in the future of business operations, we could claim we hit the target. So the strategy proposes for the MindBanking to become the platform for creating endless number of (original) business communities and a vigorous and self-producing new business scene. Mindbanking is a vision of new economy which presupposes development of the new market technology, which perpetuates network distribution, niche markets, dynamic- modular production units, which would respectively replace mass production and liberalize working processes. Page 4
  • 8. MindBanking The project anticipates or even brings about new paradigm shift at a production process at large. Some of the trends are already taking place as a part of production process; such as, fluid working hours and Sunday as a working day shows that our working week has been submitted to significant changes. It is what theoretician Leadbeater in his Knowledge Economy calls “graying the calendar” (Leadbeater, 2000). Furthermore, there is also a trend of working from locations other than office, in small groups, using communication tools such as Skype, MSN, or mobile phone applications; thus the conditions for the development of like economy has already been sketched.Even some new trends in hardware technology are proving the way wecommunicate, work and spend our daily lives is changing. For exampletablet phenomenon (e.g. Apple iPad, BlackBerry PlayBook, HTC Flyer,Samsung Galaxy Tab etc.); book reading devices/tablets (e.g. Kindle).Mentioned trends show that everything becomes “on the go”, evenproduction.Furthermore socio-economic trends like hard labor as well as repetitivelabor being replaced with machines, technology and robotics, is shaping oursocial landscape; as well as trends in economy such as domination of serviceseconomy and inauguration of post-industry which puts the intellectualproduction, “virtual” goods and services at the pivotal place in the economy.For example estimated worth of Facebook at the beginning of 2011 have beenaround 50 billion USD; however the value is not estimated as the value ofbrick and mortar properties, but the equity is measured by the value of itscommunity, quality of its intellectual goods and services, (and a basicsocial networking service is free!), and its impact and influence on the socialreality.All mentioned are the arguments that the project has anticipated thefuture market, new economies and new business infrastructure. Page 5
  • 9. MindBanking2.0 Company Summary Ana Soric is the bearer of the project MindBanking, also, a founder, owner and a CEO of Jedna od tri d.o.o. / One of Three LLC; company responsible to carry out MindBanking project. Furthermore, Ana Soric is a founder of the Sail Media department and board member of the company Sail LLC. She is a media expert with a master’s degree (MA in Communications) obtained in 2002, from the Universiteit van Amsterdam, International School for Humanities and Social Sciences. Also she has a degree of mag. in Journalism from the Faculty of Political Sciences, University of Zagreb. She has been engaged in production, able to manage and strategise award winning media: press, TV, internet, animation film, and persuasive media, as a writer, columnist, editor, producer, account manager, project manager, strategist and consultant. She had positions such as: an editor of a magazine (3), editor of a TV show, one of the producers of an internationally award winning 3D animated movie, main strategist and media consultant for jutarnji.hr (EPH online), etc.For the last couple of years she has been engaged in business strategy, planning and development.2.1 Company Ownership All the companies included in the project are LLC companies. The bearer and the owner of the project is Jedna od tri d.o.o. / One of Three is a LLC, however it is in partnership with some experts (e.g. Word Press Croatia team) and some partner companies, e.g. Arterion LLC. Page 6
  • 10. MindBanking2.2 Start-up Summary Research & Analysis Trend analysis Market analysis Case studies Comparative analysis Business info interpretation Interpretation of goals & Business model proposal Business Plan Strategic positioning of a business case Communication strategy Proposal for creative concept Proposal for technical concept Project diagram development Business model proposal Front End & Information Architecture Communities analysis Concept elucidation Content inventory Building topology Graphic design concept & development Documentation - graphic standards User experience research Graphic user interface development Administrative interface Intranet interface Page 7
  • 11. MindBankingDesigning Information architectureDesigning WireframesGathering and processing contentCSSBack-endDesigning data baseDesigning web pagesProgramming graphic interfaceApplication buildingData base programmingDocumentation - application codeDocumentation - system requirementsInstallation & implementationHW plus connectionHTML / FlashBilling system developmentSearch engine optimization (SEO)Beta testingMaintenanceMobile application Mobile application prototype development, testing and implementationMarketing the productPositioning the productMarketing plan developmentMarketing campaign - launch Page 8
  • 12. MindBankingTable: Start-upStart-upRequirementsStart-up ExpensesFront End / Design / Information Architecture €49,000Back-end Development €137,000Testing & implementation €16,650Mobile applications development €78,000Total Start-up Expenses €280,650Start-up AssetsCash Required €96,000Other Current Assets €0Long-term Assets €0Total Assets €96,000Total Requirements €376,650 Page 9
  • 13. MindBanking3.0 Products and Services Business Networking Service Create a profile,Submit idea/project, Browse people, Browse projects,Instant messaging, Connect with people,Find investors, Find collaborators, Mention user, Debate/Forum, Create Groups Working Platform Discussion Board, Project management tools, Business Plan Development Application (BPDA), Milestones Alert, Sync (synchronizes with email client, material stored locally etc.), Storage, Define your team, Chat, Whiteboard; all of which enables users to organize, manage and develop their projects from A-Z. Workflow tools (part of Working Platform) Status Report Alert, Project Update Notification,Task List Management, Project Progress Viewer, My Tasks Reminder., etc. BPDA Business Plan Development Application (part of Working Platform) Service of online application for creating business and financial plan, including tables with formulas and instructions. Investors database Browse investors, Find investors, Connect with investors. Legal Legal FAQ; Custom Legal Advices will be available exclusively in a Large subscription package; service assumes an attorney answering via email or/and MB instant messaging, any questions subscriber might have regarding legal issues about projects. Mobile Mobile service: application customized for web usage, mobile to internet messaging, mobile Page 10
  • 14. MindBankingarranging tasks and mobile alerts. Plus other mobile apps and games, some will be free,and some would be sold. Mobile applications would also include games, which wouldequally serve as a marketing tool as well as to generate revenue.PromoteUser will be able to promote the idea or project through the application 15 Minutes ofGlory, or similar. Page 11
  • 15. MindBanking4.0 Market Analysis Summary TREND 1: INCREASE IN TOTAL TIME SPENT ONLINE Total time spent online up 24.3% in October 2007 Compete published its findings on total time spent online. From October 2006 to October 2007 the total time spent online by US online users is up 24.3%. Source: IT Facts, Nov 29, 07; http://www.itfacts.biz/index.php?id=P9174 86.6% of Internet users spend more than 6 hours a week online 86.6% of internet users now spend 6 hours or more online a week when they are at home, up from 83% at the end of 2006 and 50% at the end of 2005. Perhaps most eye wateringly almost 5% of respondents claimed to spend more than 80 hours a week surfing from home, Point Topic reports. Source: IT Facts, Sep 30, 07; http://www.itfacts.biz/index.php?id=P9004 Average number of hours spent on a weekly basis by American Internet users 1999 : 7 hours 2000 : 7 hours 2001 : 7 hours 2002 : 7 hours 2003 : 9 hours Page 12
  • 16. MindBanking2004 : 8 hours2005 : 9 hours2006 : 9 hours2007 : 11 hours2008 : 14 hours2009 : 13 hourssource: http://gorumors.com/crunchies/average-time-spent-online-statistics/, 2010TREND 2: INCREASE IN REVENUE OF SOCIAL NETWORKING PORTALSSocial networks made $400 mln in revenues in 2006IDC estimates that social networks only made about $400 mln in revenues in 2006, butcould make as much as $1 bln in 2007. IDC expects that most social network services willemploy a mix of business models, including advertising, subscriptions, andecommerce. Of these three models, only advertising scales well enough to make socialnetworks interesting for portals and major media companies.source: ITFacts; www.itfacts.biz/social-networks-made-400-mln-in-revenues-in-2006/8936TREND 3: INCREASE (DOMINATION) IN TIME SPENT ON SOCIAL NETWORKINGNew and returning visits to US social networksRank Name Domain Returning New1 Myspace www.myspace.com 95% 5%2 Facebook www.facebook.com 93% 7%Source: HitwisePublished on: May 21, 2008 Department: Web traffic Page 13
  • 17. MindBankingWho got traffic from search engines in April 2008Category Percent of Category Percent Change in Percent of Percent Change in Share Category Traffic Traffic from Search Share of Traffic From of Traffic From Search from Google, Apr-07 Engines, Apr-08 Google, Apr-08 - Engines, Apr-08 - Apr-07 Apr-07 Health and Medical 46.00% 3% 30.73% 4% Travel 33.94% 8% 23.31% 16% Shopping and 25.40% 0% 16.61% 4%Classifieds News and Media 21.88% 8% 14.60% 11% Entertainment 23.79% 15% 15.20% 17% Business and 18.08% 12% 11.65% 22%Finance Sports 12.43% 17% 8.37% 24% Online Video 28.88% 35% 19.70% 46% Social Networking 16.74% 17% 10.08% 17% Source: HitwiseAverage US time spent in April 2008Rank Name Domain Apr 2008 Apr 2007 Growth, YTY1 Myspace www.myspace. 29m54s 30m40s -3% com2 Facebook www.facebook. 20m52s 13m19s 57% com3 myYearbook www. 32m54s 21m46s 51% myyearbook.com4 Bebo www.bebo.com 30m01s 30m52s -3%5 Black Planet www. 24m39s 22m43s 9% blackplanet.comSource: HitwiseSocial Networking Dominates Our Time Spent OnlineSocial networking now eats up twice as much of our online time as any other activity.According to new stats from Nielsen, sites like Facebook and Twitter now account for22.7% of time spent on the web; the next closest activity is online games, which makeup 10.2%.The stats also show the degree to which social networking is displacing other forms of Page 14
  • 18. MindBankingcommunication, with e-mail as a percentage of online time plunging from 11.5% to8.3% from June 2009 to June 2010. Instant messaging also saw a significant drop inshare, with a 15% decline from last year.However, e-mail use on mobile is still on the rise – from 37.4% to 41.6% — presumablyas users continue to migrate to smartphones from feature phones.source: (http://mashable.com/2010/08/02/stats-time-spent-online/,2010)TREND 4: USAGE OF MOBILE(SMART) PHONES FOR NETWORKINGOne Fourth Of Adults in the U.S. Use Mobile AppsMASHABLE - Sep 14 - According to the Pew Internet Project, 82% of U.S. Adults areactive cellphone users, and 43% of those have downloaded apps to their phones. Thisequates to 24% of the adults in the United States. Of these users, 13% have paid for atleast one of their apps. Not surprisingly, games are the most popular downloads. Alsoof note, women favor social networking apps significantly more than men.SORUCE: (http://www.socialnetworkingwatch.com/all_social_networking_statistics/, 2010) Page 15
  • 19. MindBanking4.1 Market Segmentation Target groups Innovators – is a main target group, which represents a community using MindBanking platform in the first place to submit ideas and find investors. However, the same group is also the main user of all services offered on the MindBanking portal/platform. They will try to find collaborators, will use the working platform and will have a need to use business plan templates and legal advices. More detailed segmentation: Entrepreneurs, SME-s, Inventors, Media professionals, Artists, New media freaks, Media semi-professionals, Independent scholars, Independent researchers, Universities, Grad Students, etc. In the broad scope our main target group (communities) are early adopters/trend setters/ tech savvy users and independent innovators. Investors – are uising portal in order to find ideas, projects, products, business solutions etc. Segmentation in this group could also be detailed as: corporations, SME-s, individual investors, venture capital houses, producers, publishers etc. Investors will also have to build their profile through company logo, investment portfolio, project portfolio and such. Collaborators – is a target group mainly seeking for interesting projects to collaborate in, to get experience, and respectively would become Innovators. User Scenario User 1 – innovator Fruitful idea maker sits in front of the Facebook sending his friends chocolate, gummy bears and smiles; throwing sheep and philosophers at his colleagues; waiting for something exciting to appear on a horizon. He (let us say is a he) is inhibited to think about piles of ideas stocked in his drawer, because every time he does, a rush of frustration and disappointment overwhelms him. Suddenly information appears like an epiphany, a thunderstruck. MindBanking.com – submit ideas, find collaborators, develop projects, and find investors. Just what I needed! I am going there right away! After exploring possibilities MindBanking is offering, he starts to submit ideas. Oh, my ideas seem to be even better than I thought, mumbles he, let us now find some people who could be interested to work with me on my projects . Swiftly he became a Page 16
  • 20. MindBankingfriend with a programmer from Indonesia and a developer from New York and theystarted to develop one of his projects.Going deeper into the MindBanking portal he discovers he could do everything in oneplace in order to develop his project: he can manage it through Workflow tools, develop itthrough the Working platform, he finds a business plan development applicationextremely useful, as well as a database of investors.After a couple of months MindBanking becomes his global office, his conditio sine quanon. Every day he wakes up and starts his working day at the MindBanking. He spendsthe whole day managing his tasks, checking status of collaborators tasks, setting newtasks, managing possible problems in a project development, communicating withcollaborators, finding investors or communicating with investors he had already make aconnection with, developing business plan(s) etc., in a nutshell, developing hisbusiness. And suddenly like he never intended to, finds he had became an entrepreneur.Even better, he realizes that around him grew a brand new, exciting and vibrantbusiness scene.User 2 – investorShe is sitting with the head in her hands, under pressure to find new business ideas;but where to find them? Desperate, she opens a www.ft.com. Yeah,like they are goingto offer fresh ideas on a silver platter, crosses her mind. She opens the www.ft.compage and there it is, a banner: MindBanking.com, the source of business ideas! All of asudden the world seems completely different. She rushes to the MindBanking, andfinds not only what she was desperately looking for, but an extraordinary vigorous andexceptional business scene. At once she finds couple of mind-blowing projectsmatching her interest, and right away starts communication with the team working on it.Her business routine takes a different shape.Every morning she checks what has been done with the project she invested into. If thereare any alerts, how the production is going. Also she is onto new ideas and new projects.She had moved her business activity almost entirely at online sphere creating not onlya global office but an entire new business.Table: Market AnalysisMarket Analysis 2012 2013 2014 2015 2016Potential Customers Growth CAGRInnovators 260% 20,000 72,000 259,200 933,120 3,359,232 260.00%Investors 180% 14,000 39,200 109,760 307,328 860,518 180.00%Collaborators 370% 30,000 141,000 662,700 3,114,690 14,639,043 370.00%Total 314.32% 64,000 252,200 1,031,660 4,355,138 18,858,793 314.32% Page 17
  • 21. MindBanking4.2 Target Market Segment Strategy The project focuses on this target groups because they are main production force, three pillars of any market; people with ideas, developers and investors (money force). Communicating to them, bringing them together and engaging them in a production (even of their own projects) could produce uncanny business scene, which of course presupposes raising attention to high level consequently generating revenue through conveyed business models.4.3 Service Business Analysis MindBanking project belongs to the online business networking online services. Revenue models for this kind of services include subscriptionfees, pay per piece (regarding mainly mobile applications), advertising, service sales (pay per piece and subscription), and respectively brokerage. Xing.com – mainly subscription fees (premium membership) LinkedIn.com – mainly advertising (plus premium membership) Facebook.com – mainly advertising Page 18
  • 22. MindBanking4.3.1 Competition and Buying Patterns Broad market Xing.com Advantages for Mindbanking Xing.com merely offers database of professionals, no other services; it takes a lot of effort to utilize the service they offer. Three moths premium membership plus a moth gratis costs 18 Euros, too expensive, especially for young people struggling in a entrepreneurs world. Threats for Mindbanking Xing.com already has 7 million users (2009). LinkedIn.com Advantages for MindBanking Our research shows social networking platforms that do not offer added value but merely profile upload and possibility to connect with friends and colleagues do not have much action going on and as a result the portal quickly loses its attention, its Premium Membership still does not offer much in utilizing business opportunities especially for entrepreneurs beginners, which again does not solve problem(s) for the user. Such is the case with LinkedIn. Our added value: MindBanking is a one-stop- shop which has a certain potential to become fully equipped and serviced global office. MindBanking is a console for developing business. Page 19
  • 23. MindBankingThreatsfor MindbankingLinkedIn.com had an estimated 43 million users in 2009.According to the LinkedIn website, by April 2010 there were more than 65 millionmembers, located in more than 200 countries.FacebookMore than 500 million active users.source: (http://www.facebook.com/press/info.php?statistics, 2010)Narrow marketProjects sharing the market with MindBanking; a niche market is yet to be created, andKickStarter did a lot in creating the same market. Mindbanking has an advantage in thecontext that Kickstarter does not allow investments, selling a share of the project etc.; itis a crowdfunding and merchandising service, and it doesnt have project developmentand management platform.1. Kickstarter (http://www.kickstarter.com/)2. Amazee (http://www.amazee.com/) Page 20
  • 24. MindBanking 3. OpenInvo (http://www.openinvo.com/) All of the mentioned businesses do not have significant market share (apart from KickStarter). However, their relatively recent appearance show the market calls for a communities/applications that offer a tool that can enable collaboration on a projects, also stock markets for ideas, or to create the places where capital and ideas/innovations could meet. Furthermore, instead of posing as a threat for MindBanking, it represents an opportunity since the mentioned projects would create the niche market.5.0 Strategy and Implementation Summary5.1 SWOT Analysis Page 21
  • 25. MindBanking5.1.1 Strengths 1. Multi-interactional environment - Hypermedia; which means endless number of interactions, thus endless possibility of development and growth. 2. Endlessly upgradeable / expandable environment 3. Interactions of all market sectors 4. Creating new business community 5. Strong attention and market value of the project5.1.2 Weaknesses 1. Relatively expensive production 2. Relatively slow production 3. Huge5.1.3 Opportunities 1. To create new markets, economies and values 2. To create new communication and business paradigms 3. To generate substantial revenue 4. High and fast ROI5.1.4 Threats 1. Strong competition Page 22
  • 26. MindBanking5.2 Competitive Edge Main social/business network web sites are LinkedIn, Xing, and of course Facebook, absolute winner in number of registered users, impact and revenue. Xing.com as a business (social) network was founded in 2003 had 5 million users in 2008, and an estimated revenue of €10.1 million in 2006; source Wikipedia.com, http:// en.wikipedia.org/wiki/XING, April 2008. In 2009 number of users for Xing.com grew to 7.000.000, representing 40% growth. LinkedIn.com, had an estimated 20 million users in 2008 and 43 million in 2009. Facebook.com was founded in February 2004, had an estimated 69 million users in January 2008 (source, Facebook, January 2008), and revenue of 150 million USD; (source, Forbes, March 6, 2008.) In 2009, number of users grew to 250.000.000, representing 262% growth. Potential for revenue growth from that position is huge. Facebook ended 2008 making between $280 million and $300 million, according to many reports. The company’s revenues likely reached between $600 million and $700 million for 2009. sources estimate the company could make between $1 billion and $1.1 billion in total revenue this year. (source: Inside Facebook; www.insidefacebook. com/2010/03/02/facebook-made-up-to-700-million-in-2009-on-track-towards-1-1-billion- in-2010/, 2010) Our position in the business social networking market would be significant since we would be offering a unique online working and developing platform. In a nutshell, our competitive advantage is to be the first in a global market offering services to help develop and deploy projects online. Furthermore, if we compare ourselves with other social networking portals, even the business ones, like LinkedIn.com and Xing.com, we believe that our portal will have much higher business utilization than any of them. Furthermore, our competitive edge and our biggest strength is in the vision of the project. The vision where almost every business could be conducted, every product produced, as the almighty business, development and production console, which would be more and more possible by the further development and implementation of the Cloud technology. Page 23
  • 27. MindBanking5.3 Marketing Strategy Marketing strategy lies on using exact or narrow marketing channel for each target group (community). For Inventors, our most important target group, we intend to use mainly Facebook social ads and respectively Google Adwords. We can position our key target group as spending a lot of their time on Facebook, since it is a rather creative portal in entertainment kind of way, and bypassing business social networking portals since they do not offer much and require much effort for business utilization. The plan is to draw their attention from Facebook and channel their energy and ideas towards production and entrepreneurship. Furthermore, for that target group we wouldnt use online banners as a mean of communication, but more involving Social ads (social groups, fan clubs, applications, etc.) Target group Investors also require special attention. The strategy is to reach them at FT.com and the Time Magazine online or New York times. Target group Collaborators will be reached through banners and WOM on the LinkedIn.com, and other social (and business) networking portals. Launch campaign will consist of two phases: Phase 1 (Beta testing period) Since we will have 45 days of Beta testing period the strategy is for that period to deploy Facebook social ads, Google Adwords, WOM, guerilla marketing (blogs, forums, chats…) which will serve for all three target groups. In this kind of communication methods possibly the least covered are Investors. Phase 2 (100% ready) Banners on Facebook.com, LinkedIn.com, FT.com, Time Magazine online or New York times online; 100.000 impressions. 1.0. Beta testing campaign 1.1. Social campaign and applications - 10.000 Euro Page 24
  • 28. MindBanking1.2. Google Adwords - around 20 key words for 1 month - 1.000 Euro1.3 Direct Ads, targeted on communities - 10.000 Euro1.4 Guerilla marketing & WOM daily for a month on blogs, forums etc. -1.000 Euro2.0 100 % ready campaignStrategy is to keep running social networking campaign and GoogleAdwords all the time. Furthermore, to put banners on business andnews portals with around 100.000 impressions, one by one.2.1 NYTimes.com - around 100.000 impressions - 11.000 USD2.2 FT.com - 468x60 banner, contextual targeting (business) plusgeographical, Cost per Thousand Impressions (CPM) = 55, 00 GBP.Plan: 100.000 impressions = 5.500,00 GBP = 11.000,00 USD.2.3. Facebook.com - at least 100.000 impressions2.4. LinkedIn.com - at least 100.000 impressionsMore detailed marketing strategy will be developed before it would belaunched. Page 25
  • 29. MindBanking5.4 Sales Strategy The main business model is a subscription fee and pay per piece (as far as mobile applications are concerned). We believe that as soon as we get critical mass of audience and the activity (serious projects), as well as we develop the platform into a real business console, there wouldnt be a problem to get subscription fees from the users, especially if we bring serious investors and become a nursery of important projects. Furthermore, selling advertising space is always a viable business model. We also believe we could apply service of brokerage. At the end MindBanking is hoping that through its development that numerous new revenue and business models would be generated and deployed. Page 26
  • 30. MindBankingAdditional storage of 3 GB will be charged 5 USD per month and offered as a 3/6/12months package. Page 27
  • 31. MindBanking Subscription will be available as a 3/6/12 months packages: As for the advertising, the equation is simple; greater the number of user (eye- balls), more advertising space is sold. Great advantage with internet advertising is that we are not only able to count every single user, we also know their names, preferences and interests, so we could adapt our business and tech/development strategy accordingly.5.4.1 Sales Forecast We predicted that by the end of the first year we will have 64.000 active users, which of 50.000 would spend for our subscription about 50 USD per year, we could have revenue of 2.500.000 USD. We assume our users will be willing to pay 50 USD per year. The price definitely represents value for money, since some other social networking portals charge much more for less utilization. Advertising revenues are more of a educated guess and could only be higher since globally revenues from online advertising are growing every year. In 2012 21% of global ad spending will happen online Interactive advertising revenues will increase significantly from $45 bln in 2007 to $147 bln globally in 2012, representing a 23.4%, according to Kelsey Group. Interactive advertising, which comprises search (including local search), display advertising, classifieds and other interactive ad products, grew its share of global advertising revenues from 6.1% in 2006 to 7.4% in 2007. By 2012 Kelsey Group analysts expect the interactive share of global ad spending will reach 21%. During the forecast period (2007-2012), the United States will see interactive advertising revenues grow from $22.5 billion to $62.4 bln (22.6% CAGR), with interactive revenues in Canada increasing from $1.3 bln to $3.3 billion (21.3% CAGR). Source: ITFacts; www.itfacts.biz/in-2012-21-of-global-ad-spending-will-happen- online/10034 Page 28
  • 32. MindBankingTable: Sales ForecastSales Forecast FY 2013 FY 2014 FY 2015 FY 2016 FY 2017SalesSubscriptions fees €230,143 €6,000,000 €17,000,000 €28,000,000 €48,000,000Advertising €314,080 €5,000,000 €13,000,000 €25,000,000 €41,000,000Service sales €0 €1,000,000 €5,000,000 €9,000,000 €16,000,000Total Sales €544,223 €12,000,000 €35,000,000 €62,000,000 €105,000,000Direct Cost of Sales FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Research & Analysis €5,745 €480,000 €750,000 €1,650,000 €2,176,000Tech Maintenance €26,000 €748,000 €2,076,000 €2,976,000 €4,376,000Hardware & Development €37,776 €1,567,000 €3,584,000 €4,376,000 €6,396,000Marketing & Sales €80,040 €1,078,000 €5,036,000 €7,376,000 €10,376,000Management €19,922 €720,000 €1,700,000 €2,176,000 €3,177,000Subtotal Direct Cost of Sales €169,483 €4,593,000 €13,146,000 €18,554,000 €26,501,000 Page 29
  • 33. MindBanking5.5 Milestones Table: Milestones Milestones Milestone Start Date End Date Budget Manager Department Platform/Mobile Development 6/6/2012 10/25/2012 €365,000 Ana Soric IT, Design Launch Marketing Camp 10/25/2012 12/28/2012 €250,000 Ana Soric Marketing Mobile App Development 2 1/7/2013 5/1/2013 €750,000 Ana Soric IT Mobile Marketing Campaign 5/1/2013 7/1/2013 €400,000 Ana Soric Marketing Platform Development 2 7/1/2013 10/1/2013 €2,300,000 Ana Soric IT, Design Platform Development 2 camp 10/1/2013 12/24/2013 €1,300,000 Ana Soric Marketing Next phase development 1/7/2014 4/1/2014 €3,000,000 Ana Soric R&D Totals €8,365,000 Page 30
  • 34. MindBanking6.0 Management Summary6.1 Personnel Plan In the first year the plan is to hire as few personnel as possible. Most of the development and production will be done by outsourcing. In the second FY when we anticipate revenue is to start pouring in, would hire small but high quality team. In the FYs that follow we would expand significantly our personnel, with the special consideration on R&D (Research and Development) team, and would form Board of Directors. Table: Personnel Personnel Plan FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Strategy, Consultancy, Management, Board €20,000 €130,000 €350,000 €550,000 €670,000 Design & Development €13,000 €300,000 €600,000 €1,000,000 €1,646,000 R&D €0 €250,000 €550,000 €1,100,000 €2,646,000 Tech Maintenance €7,000 €170,000 €370,000 €430,000 €1,130,000 Customer Support €6,000 €150,000 €250,000 €450,000 €696,000 Legal €0 €97,000 €160,000 €190,000 €696,000 Marketing €0 €195,000 €250,000 €550,000 €1,046,000 Maintenance €0 €95,000 €110,000 €150,000 €349,000 Total People 0 0 0 0 0 Total Payroll €46,000 €1,387,000 €2,640,000 €4,420,000 €8,879,000 Page 31
  • 35. MindBanking7.0 Financial Plan7.1 Projections7.2 Start-up Funding It is planned that the start-up funding will be mainly covered with investors funding. Although it is planned to finance part of the investment via loan. The amount of the loan would be around 80.000 - 90.000 Euro via Croatian Bank for Reconstruction and Development. Page 32
  • 36. MindBanking Table: Start-up Funding Start-up Funding Start-up Expenses to Fund €280,650 Start-up Assets to Fund €96,000 Total Funding Required €376,650 Assets Non-cash Assets from Start-up €0 Cash Requirements from Start-up €96,000 Additional Cash Raised €0 Cash Balance on Starting Date €96,000 Total Assets €96,000 Liabilities and Capital Liabilities Current Borrowing €0 Long-term Liabilities €0 Accounts Payable (Outstanding Bills) €0 Other Current Liabilities (interest-free) €10,000 Total Liabilities €10,000 Capital Planned Investment Owner €0 Investor €366,650 Additional Investment Requirement €0 Total Planned Investment €366,650 Loss at Start-up (Start-up Expenses) (€280,650) Total Capital €86,000 Total Capital and Liabilities €96,000 Total Funding €376,6507.3 Important Assumptions7.4 Break-even Analysis Page 33
  • 37. MindBanking Table: Break-even Analysis Break-even Analysis Monthly Revenue Break-even €39,020 Assumptions: Average Percent Variable Cost 31% Estimated Monthly Fixed Cost €26,8687.5 Projected Profit and Loss Page 34
  • 38. MindBanking Page 35
  • 39. MindBankingTable: Profit and LossPro Forma Profit and Loss FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Sales €544,223 €12,000,000 €35,000,000 €62,000,000 €105,000,000Direct Cost of Sales €169,483 €4,593,000 €13,146,000 €18,554,000 €26,501,000Other Costs of Sales €16,082 €1,700,000 €3,200,000 €5,996,600 €10,707,359Total Cost of Sales €185,564 €6,293,000 €16,346,000 €24,550,600 €37,208,359Gross Margin €358,659 €5,707,000 €18,654,000 €37,449,400 €67,791,641Gross Margin % 65.90% 47.56% 53.30% 60.40% 64.56%ExpensesPayroll €46,000 €1,387,000 €2,640,000 €4,420,000 €8,879,000Marketing/Promotion €15,758 €850,000 €2,200,000 €3,766,900 €6,474,557Depreciation €0 €0 €0 €0 €0Rent €38,961 €300,000 €400,000 €970,000 €1,345,046Utilities €19,761 €140,000 €190,000 €294,600 €494,600Insurance €35,707 €50,000 €70,000 €145,850 €254,600Payroll Taxes €166,230 €294,000 €585,000 €769,000 €1,650,000Total Operating Expenses €322,416 €3,021,000 €6,085,000 €10,366,350 €19,097,803Profit Before Interest and Taxes €36,243 €2,686,000 €12,569,000 €27,083,050 €48,693,838EBITDA €36,243 €2,686,000 €12,569,000 €27,083,050 €48,693,838 Interest Expense €0 €0 €0 €0 €0 Taxes Incurred €10,873 €805,800 €3,770,700 €8,124,915 €14,608,151Net Profit €25,370 €1,880,200 €8,798,300 €18,958,135 €34,085,687Net Profit/Sales 4.66% 15.67% 25.14% 30.58% 32.46% Page 36
  • 40. MindBanking7.6 Projected Cash Flow Page 37
  • 41. MindBanking Table: Cash Flow Pro Forma Cash Flow FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Cash Received Cash from Operations Cash Sales €544,223 €12,000,000 €35,000,000 €62,000,000 €105,000,000 Subtotal Cash from Operations €544,223 €12,000,000 €35,000,000 €62,000,000 €105,000,000 Additional Cash Received Sales Tax, VAT, HST/GST Received €136,056 €3,000,000 €8,750,000 €15,500,000 €26,250,000 New Current Borrowing €0 €0 €0 €0 €0 New Other Liabilities (interest-free) €0 €0 €0 €0 €0 New Long-term Liabilities €0 €0 €0 €0 €0 Sales of Other Current Assets €0 €0 €0 €0 €0 Sales of Long-term Assets €0 €0 €0 €0 €0 New Investment Received €1,680,000 €2,400,000 €4,000,000 €0 €0 Subtotal Cash Received €2,360,279 €17,400,000 €47,750,000 €77,500,000 €131,250,000 Expenditures FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Expenditures from Operations Cash Spending €46,000 €1,387,000 €2,640,000 €4,420,000 €8,879,000 Bill Payments €363,711 €8,124,178 €22,342,886 €37,384,043 €60,110,920 Subtotal Spent on Operations €409,711 €9,511,178 €24,982,886 €41,804,043 €68,989,920 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out €76,800 €1,200,000 €4,700,000 €7,800,000 €12,890,000 Principal Repayment of Current Borrowing €0 €0 €0 €0 €0 Other Liabilities Principal Repayment €0 €0 €0 €0 €0 Long-term Liabilities Principal Repayment €0 €0 €0 €0 €0 Purchase Other Current Assets €0 €0 €0 €0 €0 Purchase Long-term Assets €0 €0 €0 €0 €0 Dividends €0 €0 €0 €0 €0 Subtotal Cash Spent €486,511 €10,711,178 €29,682,886 €49,604,043 €81,879,920 Net Cash Flow €1,873,768 €6,688,822 €18,067,114 €27,895,957 €49,370,080 Cash Balance €1,969,768 €8,658,590 €26,725,704 €54,621,660 €103,991,7407.7 Projected Balance Sheet Page 38
  • 42. MindBanking Table: Balance Sheet Pro Forma Balance Sheet FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Assets Current Assets Cash €1,969,768 €8,658,590 €26,725,704 €54,621,660 €103,991,740 Other Current Assets €0 €0 €0 €0 €0 Total Current Assets €1,969,768 €8,658,590 €26,725,704 €54,621,660 €103,991,740 Long-term Assets Long-term Assets €0 €0 €0 €0 €0 Accumulated Depreciation €0 €0 €0 €0 €0 Total Long-term Assets €0 €0 €0 €0 €0 Total Assets €1,969,768 €8,658,590 €26,725,704 €54,621,660 €103,991,740 Liabilities and Capital FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Current Liabilities Accounts Payable €109,142 €717,764 €1,936,578 €3,174,400 €5,098,793 Current Borrowing €0 €0 €0 €0 €0 Other Current Liabilities €69,256 €1,869,256 €5,919,256 €13,619,256 €26,979,256 Subtotal Current Liabilities €178,398 €2,587,020 €7,855,834 €16,793,656 €32,078,049 Long-term Liabilities €0 €0 €0 €0 €0 Total Liabilities €178,398 €2,587,020 €7,855,834 €16,793,656 €32,078,049 Paid-in Capital €2,046,650 €4,446,650 €8,446,650 €8,446,650 €8,446,650 Retained Earnings (€280,650) (€255,280) €1,624,920 €10,423,220 €29,381,355 Earnings €25,370 €1,880,200 €8,798,300 €18,958,135 €34,085,687 Total Capital €1,791,370 €6,071,570 €18,869,870 €37,828,005 €71,913,691 Total Liabilities and Capital €1,969,768 €8,658,590 €26,725,704 €54,621,660 €103,991,740 Net Worth €1,791,370 €6,071,570 €18,869,870 €37,828,005 €71,913,6917.8 Business Ratios Page 39
  • 43. MindBankingTable: RatiosRatio Analysis FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Industry ProfileSales Growth 0.00% 2104.98% 191.67% 77.14% 69.35% 10.93%Percent of Total AssetsOther Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 52.04%Total Current Assets 100.00% 100.00% 100.00% 100.00% 100.00% 76.18%Long-term Assets 0.00% 0.00% 0.00% 0.00% 0.00% 23.82%Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%Current Liabilities 9.06% 29.88% 29.39% 30.75% 30.85% 33.87%Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 13.22%Total Liabilities 9.06% 29.88% 29.39% 30.75% 30.85% 47.09%Net Worth 90.94% 70.12% 70.61% 69.25% 69.15% 52.91%Percent of SalesSales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%Gross Margin 65.90% 47.56% 53.30% 60.40% 64.56% 100.00%Selling, General & Administrative Expenses 61.24% 31.89% 28.16% 29.82% 32.10% 74.12%Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 2.32%Profit Before Interest and Taxes 6.66% 22.38% 35.91% 43.68% 46.38% 2.90%Main RatiosCurrent 11.04 3.35 3.40 3.25 3.24 1.74Quick 11.04 3.35 3.40 3.25 3.24 1.37Total Debt to Total Assets 9.06% 29.88% 29.39% 30.75% 30.85% 58.31%Pre-tax Return on Net Worth 2.02% 44.24% 66.61% 71.60% 67.71% 6.41%Pre-tax Return on Assets 1.84% 31.02% 47.03% 49.58% 46.82% 15.38%Additional Ratios FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Net Profit Margin 4.66% 15.67% 25.14% 30.58% 32.46% n.aReturn on Equity 1.42% 30.97% 46.63% 50.12% 47.40% n.aActivity RatiosAccounts Payable Turnover 4.33 12.17 12.17 12.17 12.17 n.aPayment Days 27 17 21 24 24 n.aTotal Asset Turnover 0.28 1.39 1.31 1.14 1.01 n.aDebt RatiosDebt to Net Worth 0.10 0.43 0.42 0.44 0.45 n.aCurrent Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.aLiquidity RatiosNet Working Capital €1,791,370 €6,071,570 €18,869,870 €37,828,005 €71,913,691 n.aInterest Coverage 0.00 0.00 0.00 0.00 0.00 n.aAdditional RatiosAssets to Sales 3.62 0.72 0.76 0.88 0.99 n.aCurrent Debt/Total Assets 9% 30% 29% 31% 31% n.aAcid Test 11.04 3.35 3.40 3.25 3.24 n.aSales/Net Worth 0.30 1.98 1.85 1.64 1.46 n.aDividend Payout 0.00 0.00 0.00 0.00 0.00 n.a Page 40
  • 44. MindBanking7.9 Long-term Plan Table: Long-term Long-term FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Sales €544,223 €12,000,0 €35,000,0 €62,000,0 €105,000, €232,400, €498,500, €654,000, €860,000, €999,000, 00 00 00 000 000 000 000 000 000 Cost of Sales €185,564 €6,293,00 €16,346,0 €24,550,6 €37,208,3 €95,000,0 €190,000, €273,000, €399,000, €420,000, 0 00 00 59 00 000 000 000 000 Gross Margin €358,659 €5,707,00 €18,654,0 €37,449,4 €67,791,6 €137,400, €308,500, €381,000, €461,000, €579,000, 0 00 00 41 000 000 000 000 000 Gross Margin % 65.90% 47.56% 53.30% 60.40% 64.56% 59.12% 61.89% 58.26% 53.60% 57.96% Operating Expenses €322,416 €3,021,00 €6,085,00 €10,366,3 €19,097,8 €68,000,0 €160,000, €238,000, €300,000, €360,000, 0 0 50 03 00 000 000 000 000 Operating Income €36,243 €2,686,00 €12,569,0 €27,083,0 €48,693,8 €69,400,0 €148,500, €143,000, €161,000, €219,000, 0 00 50 38 00 000 000 000 000 Net Income €25,370 €1,880,20 €8,798,30 €18,958,1 €34,085,6 €69,374,2 €148,474, €142,974, €160,990, €219,000, 0 0 35 87 24 224 224 016 000 Current Assets €1,969,76 €8,658,59 €26,725,7 €54,621,6 €103,991, €0 €0 €0 €0 €0 8 0 04 60 740 Long-term Assets €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 Current Liabilities €178,398 €2,587,02 €7,855,83 €16,793,6 €32,078,0 €0 €0 €0 €0 €0 0 4 56 49 Long-term Liabilities €0 €0 €0 €0 €0 €25,776 €25,776 €25,776 €9,984 €0 Equity €1,791,37 €6,071,57 €18,869,8 €37,828,0 €71,913,6 €69,374,2 €148,474, €142,974, €160,990, €219,000, 0 0 70 05 91 24 224 224 016 000 Page 41
  • 45. AppendixTable: Sales ForecastSales Forecast Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarSalesSubscriptions fees 0% €0 €0 €0 €0 €0 €0 €0 €23,400 €38,743 €47,300 €57,600 €63,100Advertising 0% €0 €0 €0 €0 €0 €0 €0 €0 €45,480 €65,000 €87,600 €116,000Service sales 0% €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Total Sales €0 €0 €0 €0 €0 €0 €0 €23,400 €84,223 €112,300 €145,200 €179,100Direct Cost of Sales Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarResearch & Analysis €0 €0 €0 €0 €0 €0 €0 €1,149 €1,149 €1,149 €1,149 €1,149Tech Maintenance €0 €0 €0 €0 €0 €0 €0 €4,000 €4,000 €6,000 €6,000 €6,000Hardware & Development €2,500 €0 €0 €0 €0 €0 €0 €3,960 €4,356 €7,120 €9,200 €10,640Marketing & Sales €3,000 €0 €0 €0 €0 €0 €0 €6,700 €7,340 €13,000 €20,000 €30,000Management €1,500 €0 €0 €0 €0 €0 €0 €3,180 €3,400 €3,480 €3,480 €4,882Subtotal Direct Cost of Sales €7,000 €0 €0 €0 €0 €0 €0 €18,989 €20,245 €30,749 €39,829 €52,671 Page 1
  • 46. AppendixTable: PersonnelPersonnel Plan Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarStrategy, Consultancy, Management, Board 0% €2,000 €2,000 $2.000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 $2.000 €2,000 €2,000Design & Development 0% €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €2,000R &D 0% €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Tech Maintenance 0% €0 €0 €0 €0 €0 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000Customer Support 0% €0 €0 €0 €0 €0 €0 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000Legal 0% €0 €0 €0 €0 €0 €0 €0 €0 €0 $0 €0 €0Marketing 0% €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Maintenance 0% €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Total People 0 0 0 0 0 0 0 0 0 0 0 0Total Payroll €3,000 €3,000 €1,000 €3,000 €3,000 €4,000 €5,000 €5,000 €5,000 €3,000 €5,000 €6,000 Page 2
  • 47. AppendixTable: Profit and LossPro Forma Profit and Loss Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarSales €0 €0 €0 €0 €0 €0 €0 €23,400 €84,223 €112,300 €145,200 €179,100Direct Cost of Sales €7,000 €0 €0 €0 €0 €0 €0 €18,989 €20,245 €30,749 €39,829 €52,671Other Costs of Sales €664 €703 €811 €963 €1,090 €1,210 €1,358 €1,472 €1,691 €1,874 €2,013 €2,234Total Cost of Sales €7,664 €703 €811 €963 €1,090 €1,210 €1,358 €20,461 €21,936 €32,623 €41,842 €54,904Gross Margin (€7,664) (€703) (€811) (€963) (€1,090) (€1,210) (€1,358) €2,939 €62,287 €79,677 €103,358 €124,196Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 12.56% 73.95% 70.95% 71.18% 69.34%ExpensesPayroll €3,000 €3,000 €1,000 €3,000 €3,000 €4,000 €5,000 €5,000 €5,000 €3,000 €5,000 €6,000Marketing/Promotion €0 €0 €0 €0 €0 €0 €0 €1,166 €3,056 €3,096 €3,560 €4,880Depreciation €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Rent €2,806 €2,776 €2,843 €3,383 €3,408 €3,360 €3,360 €3,424 €3,408 €3,376 €3,408 €3,408Utilities €1,350 €1,447 €1,474 €1,458 €1,474 €1,441 €1,441 €1,612 €1,800 €1,920 €2,088 €2,256Insurance 15% €1,949 €2,184 €2,352 €2,352 €2,472 €2,544 €2,735 €3,023 €3,359 €3,696 €4,176 €4,864Payroll Taxes €7,360 €7,780 €8,410 €9,040 €14,500 €16,866 €17,034 €17,426 €17,006 €17,006 €17,006 €16,796Total Operating Expenses €16,466 €17,187 €16,079 €19,233 €24,854 €28,211 €29,570 €31,651 €33,629 €32,094 €35,238 €38,204Profit Before Interest and Taxes (€24,129) (€17,890) (€16,890) (€20,196) (€25,945) (€29,421) (€30,928) (€28,712) €28,658 €47,583 €68,120 €85,992EBITDA (€24,129) (€17,890) (€16,890) (€20,196) (€25,945) (€29,421) (€30,928) (€28,712) €28,658 €47,583 €68,120 €85,992 Interest Expense €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 Taxes Incurred (€7,239) (€5,367) (€5,067) (€6,059) (€7,783) (€8,826) (€9,278) (€8,614) €8,597 €14,275 €20,436 €25,798Net Profit (€16,890) (€12,523) (€11,823) (€14,137) (€18,161) (€20,595) (€21,650) (€20,098) €20,060 €33,308 €47,684 €60,194Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -85.89% 23.82% 29.66% 32.84% 33.61% Page 3
  • 48. AppendixTable: Cash FlowPro Forma Cash Flow Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarCash ReceivedCash from OperationsCash Sales €0 €0 €0 €0 €0 €0 €0 €23,400 €84,223 €112,300 €145,200 €179,100Subtotal Cash from Operations €0 €0 €0 €0 €0 €0 €0 €23,400 €84,223 €112,300 €145,200 €179,100Additional Cash ReceivedSales Tax, VAT, HST/GST Received 25.00% €0 €0 €0 €0 €0 €0 €0 €5,850 €21,056 €28,075 €36,300 €44,775New Current Borrowing €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0New Other Liabilities (interest-free) €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0New Long-term Liabilities €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Sales of Other Current Assets €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Sales of Long-term Assets €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0New Investment Received €0 €0 €0 €130,000 €0 €0 €0 €250,000 €0 €0 €0 €1,300,000Subtotal Cash Received €0 €0 €0 €130,000 €0 €0 €0 €279,250 €105,279 €140,375 €181,500 €1,523,875Expenditures Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarExpenditures from OperationsCash Spending €3,000 €3,000 €1,000 €3,000 €3,000 €4,000 €5,000 €5,000 €5,000 €3,000 €5,000 €6,000Bill Payments €463 €13,745 €9,566 €10,834 €11,271 €15,209 €16,597 €17,378 €39,187 €59,724 €76,542 €93,196Subtotal Spent on Operations €3,463 €16,745 €10,566 €13,834 €14,271 €19,209 €21,597 €22,378 €44,187 €62,724 €81,542 €99,196Additional Cash SpentSales Tax, VAT, HST/GST Paid Out €0 €0 €0 €0 €0 €0 €0 €3,200 €9,600 €16,000 €23,000 €25,000Principal Repayment of Current Borrowing €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Other Liabilities Principal Repayment €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Long-term Liabilities Principal Repayment €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Purchase Other Current Assets €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Purchase Long-term Assets €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Dividends €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Subtotal Cash Spent €3,463 €16,745 €10,566 €13,834 €14,271 €19,209 €21,597 €25,578 €53,787 €78,724 €104,542 €124,196Net Cash Flow (€3,463) (€16,745) (€10,566) €116,166 (€14,271) (€19,209) (€21,597) €253,672 €51,492 €61,651 €76,958 €1,399,679Cash Balance €92,537 €75,792 €65,226 €181,392 €167,121 €147,912 €126,316 €379,988 €431,479 €493,131 €570,088 €1,969,768 Page 4
  • 49. AppendixTable: Balance SheetPro Forma Balance Sheet Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarAssets Starting BalancesCurrent AssetsCash €96,000 €92,537 €75,792 €65,226 €181,392 €167,121 €147,912 €126,316 €379,988 €431,479 €493,131 €570,088 €1,969,768Other Current Assets €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Total Current Assets €96,000 €92,537 €75,792 €65,226 €181,392 €167,121 €147,912 €126,316 €379,988 €431,479 €493,131 €570,088 €1,969,768Long-term AssetsLong-term Assets €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Accumulated Depreciation €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Total Long-term Assets €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Total Assets €96,000 €92,537 €75,792 €65,226 €181,392 €167,121 €147,912 €126,316 €379,988 €431,479 €493,131 €570,088 €1,969,768Liabilities and Capital Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarCurrent LiabilitiesAccounts Payable €0 €13,427 €9,205 €10,462 €10,766 €14,656 €16,042 €16,095 €37,215 €57,191 €73,459 €89,432 €109,142Current Borrowing €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Other Current Liabilities €10,000 €10,000 €10,000 €10,000 €10,000 €10,000 €10,000 €10,000 €12,650 €24,106 €36,181 €49,481 €69,256Subtotal Current Liabilities €10,000 €23,427 €19,205 €20,462 €20,766 €24,656 €26,042 €26,095 €49,865 €81,296 €109,639 €138,913 €178,398Long-term Liabilities €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0Total Liabilities €10,000 €23,427 €19,205 €20,462 €20,766 €24,656 €26,042 €26,095 €49,865 €81,296 €109,639 €138,913 €178,398Paid-in Capital €366,650 €366,650 €366,650 €366,650 €496,650 €496,650 €496,650 €496,650 €746,650 €746,650 €746,650 €746,650 €2,046,650Retained Earnings (€280,650) (€280,650) (€280,650) (€280,650) (€280,650) (€280,650) (€280,650) (€280,650) (€280,650) (€280,650) (€280,650) (€280,650) (€280,650)Earnings €0 (€16,890) (€29,413) (€41,236) (€55,373) (€73,534) (€94,129) (€115,779) (€135,877) (€115,817) (€82,509) (€34,825) €25,370Total Capital €86,000 €69,110 €56,587 €44,764 €160,627 €142,466 €121,871 €100,221 €330,123 €350,183 €383,491 €431,175 €1,791,370Total Liabilities and Capital €96,000 €92,537 €75,792 €65,226 €181,392 €167,121 €147,912 €126,316 €379,988 €431,479 €493,131 €570,088 €1,969,768Net Worth €86,000 €69,110 €56,587 €44,764 €160,627 €142,466 €121,871 €100,221 €330,123 €350,183 €383,491 €431,175 €1,791,370 Page 5
  • 50. AppendixTable – work and services already invested in MindBanking projectJob Hours Team Total hrsResearch & AnalysisTrend analysis 77h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionMarket analysis 66h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionCase studies 80 h Ana Sorić Sail Media/One of ThreeComparative analysis 30 h Ana Sorić Sail Media/One of ThreeBusiness info interpretation 50h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionInterpretation of goals & 60h Ana Sorić Sail Media/OneBusiness model proposal of Three Stipe Splivalo Arterion 363hBusiness PlanStrategic positioning of a 50h Ana Sorić Sail Media/Onebusiness case of ThreeConcept elucidation 30h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionCommunication strategy 45h Ana Sorić Sail Media/One of Three1
  • 51. Project diagram development 30h Ana Sorić Sail Media/One of ThreeBusiness & finanacial plan 750h Ana Sorić Sail Media/Onecreation & update of ThreeBusiness plan evaluation (first 50h Hassan Jaferi; Canadiandraft) Intellectual Property Office; PARTEQ InnovationsTotal hrs 955hBranding 150h Ana Sorić Sail Media/One 150h of Three Stipe Splivalo ArterionFront End & InformationArchitecture (IA)Communities analysis 30h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionProposal for creative concept 30h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionProposal for technical concept 50h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionContent inventory 25h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionGraphic design concept & 250h Stipe Splivalo ArteriondevelopmentDocumentation - graphic 50h Stipe Splivalo ArterionstandardsUser experience analysis 30h Ana Sorić Sail Media/One of Three Stipe Splivalo ArterionIA – Information architecture 200h Ana Sorić Sail Media/Onedesign of Three Stipe Splivalo Arterion2
  • 52. Total hrs 665hInvestor relations 770h Ana Sorić Sail Media/One 970hmanagement of Three Natko Vlahović HOK Stipe Splivalo Arterion Tomislav Ilić ReprographLegal 50h Tomislav Šunjić 50h Aljoša ŠerićBuilding Mindbanking Bruno Buljubašić & Andrea 150 hplatform in Word Press / Pomper (Word PressBuddy Press infrastructure; Croatia)testing Ana Sorić One of ThreeDesign & CSS Stipe Splivalo Arterion 70h Saša Celinšćak Bruno Buljubašić & Andrea Pomper (Word Press Croatia) TOTAL HOURS 3373h3