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MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
MindBanking.co_Biz&Financ plan Q211
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MindBanking.co_Biz&Financ plan Q211

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  • 1. Ana Sorić / MA in Communications / CEO / +385 91 9080666 / www.oneofthree.biz / CEO@oneofthree.biz
  • 2. Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities.
  • 3. Table of Contents Page 1 1.0 Executive Summary.............................................................................................................................1 1.1 Objectives...................................................................................................................................2 1.2 Mission........................................................................................................................................3 1.3 Keys to Success ........................................................................................................................4 2.0 Company Summary.............................................................................................................................6 2.1 Company Ownership.................................................................................................................6 2.2 Start-up Summary......................................................................................................................7 3.0 Services .............................................................................................................................................10 4.0 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 .............................................................................19 5.0 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 ................................................................................................................................30 6.0 Management Summary....................................................................................................................31 6.1 Personnel Plan.........................................................................................................................31 7.0 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
  • 4. MindBanking.com Page 1 1.0 Executive Summary MindBanking.com is a global business networking portal, offering services which empower users to fully develop manage and build their projects. MindBanking.com 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.com 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.
  • 5. MindBanking.com Page 2 1.1 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 portal 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.
  • 6. MindBanking.com Page 3 1.2 Mission Mindbanking.com 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.
  • 7. MindBanking.com Page 4 1.3 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.com prospers on that same premise. To put in the same space global corporations, SME, investors, thriving individuals with new ideas, entrepreneurs, innovators 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.com is empowered to deal with the mentioned problem through offering business plan application, work and workflow platform, interaction tools and playful and user-friendly business environment. Furthermore, 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.com 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. MindBanking.com 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 Mind Banking.com to become the platform for creating endless number of (original) business communities and a vigorous and self-producing new business scene. Mindbanking.com is a vision of new economy which presupposes development of the new market technology, which perpetuates network distribution, niche markets, dynamic- modular production units and such, which would respectively replace mass production. The project anticipates or even brings about new paradigm shift at a production process at
  • 8. MindBanking.com Page 5 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 even 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 we communicate, work and spend our daily lives is changing. For example tablet (e.g. Apple iPad, BlackBerry PlayBook, HTC Flyer, Samsung Galaxy Tab etc.) trend; book reading devices/tablets (e.g. Kindle). Mentioned trends show that everything becomes “on the go”, even production. 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.
  • 9. MindBanking.com Page 6 2.0 Company Summary Ana Sorić is the bearer of the project MindBanking.com, also, a founder, owner and a CEO of Jedna od tri d.o.o. / One of Three LLC; company responsible to carry out MindBanking.com. Furthermore, Ana Soric is a founder of the Sail Media department and the co-owner 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, managing and strategizing 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 of the project is Jedna od tri d.o.o. / One of Three is a LLC, and the owner is Ana Soric.
  • 10. MindBanking.com Page 7 2.2 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
  • 11. MindBanking.com Page 8 Designing Information architecture Designing Wireframes Gathering and processing content CSS Back-end Designing data base Designing web pages Programming graphic interface Application building Data base programming Documentation - application code Documentation - system requirements Installation & implementation HW plus connection HTML / Flash Billing system development Search engine optimization (SEO) Beta testing Maintenance Mobile application Mobile application prototype development, testing and implementation Marketing the product Positioning the product Marketing plan development Marketing campaign - launch
  • 12. MindBanking.com Page 9 Table: Start-up Start-up Requirements Start-up Expenses Front End / Design / Information Architecture $9,000 Back-end Development $47,000 Testing & implementation $6,650 Mobile application prototype development $28,000 Total Start-up Expenses $90,650 Start-up Assets Cash Required $56,000 Other Current Assets $0 Long-term Assets $0 Total Assets $56,000 Total Requirements $146,650
  • 13. MindBanking.com Page 10 3.0 Services Business Networking Service Create a profile,Submit idea/project, Browse people, Browse projects,instant messaging, Connect with people,Find investors, and Find collaborators. Working Platform Discussion Board, 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
  • 14. MindBanking.com Page 11 arranging tasks and mobile alerts. Promote User will be able to promote the idea or project through the application 15 Minutes of Glory
  • 15. MindBanking.com Page 12 4.0 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
  • 16. MindBanking.com Page 13 2004 : 8 hours 2005 : 9 hours 2006 : 9 hours 2007 : 11 hours 2008 : 14 hours 2009 : 13 hours source: http://gorumors.com/crunchies/average-time-spent-online-statistics/, 2010 TREND 2: INCREASE IN REVENUE OF SOCIAL NETWORKING PORTALS Social networks made $400 mln in revenues in 2006 IDC estimates that social networks only made about $400 mln in revenues in 2006, but could make as much as $1 bln in 2007. IDC expects that most social network services will employ a mix of business models, including advertising, subscriptions, and ecommerce. Of these three models, only advertising scales well enough to make social networks interesting for portals and major media companies. source: ITFacts; www.itfacts.biz/social-networks-made-400-mln-in-revenues-in- 2006/8936 TREND 3: INCREASE (DOMINATION) IN TIME SPENT ON SOCIAL NETWORKING New and returning visits to US social networks Rank Name Domain Returning New 1 Myspace www.myspace.com 95% 5% 2 Facebook www.facebook.com 93% 7% Source: Hitwise Published on: May 21, 2008 Department: Web traffic
  • 17. MindBanking.com Page 14 Who got traffic from search engines in April 2008 Category Percent of Category Traffic from Search Engines, Apr-08 Percent Change in Share of Traffic From Search Engines, Apr-08 - Apr-07 Percent of Category Traffic from Google, Apr-07 Percent Change in Share of Traffic From Google, Apr-08 - Apr-07 Health and Medical 46.00% 3% 30.73% 4% Travel 33.94% 8% 23.31% 16% Shopping and Classifieds 25.40% 0% 16.61% 4% News and Media 21.88% 8% 14.60% 11% Entertainment 23.79% 15% 15.20% 17% Business and Finance 18.08% 12% 11.65% 22% Sports 12.43% 17% 8.37% 24% Online Video 28.88% 35% 19.70% 46% Social Networking 16.74% 17% 10.08% 17% Source: Hitwise Average US time spent in April 2008 Rank Name Domain Apr 2008 Apr 2007 Growth, YTY 1 Myspace www.myspace. com 29m54s 30m40s -3% 2 Facebook www.facebook. com 20m52s 13m19s 57% 3 myYearbook www. myyearbook.com 32m54s 21m46s 51% 4 Bebo www.bebo.com 30m01s 30m52s -3% 5 Black Planet www. blackplanet.com 24m39s 22m43s 9% Source: Hitwise Social Networking Dominates Our Time Spent Online Social 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 for 22.7% of time spent on the web; the next closest activity is online games, which make up 10.2%. The stats also show the degree to which social networking is displacing other forms of
  • 18. MindBanking.com Page 15 communication, with e-mail as a percentage of online time plunging from 11.5% to 8.3% from June 2009 to June 2010. Instant messaging also saw a significant drop in share, with a 15% decline from last year. However, e-mail use on mobile is still on the rise – from 37.4% to 41.6% — presumably as 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 NETWORKING One Fourth Of Adults in the U.S. Use Mobile Apps MASHABLE - Sep 14 - According to the Pew Internet Project, 82% of U.S. Adults are active cellphone users, and 43% of those have downloaded apps to their phones. This equates to 24% of the adults in the United States. Of these users, 13% have paid for at least one of their apps. Not surprisingly, games are the most popular downloads. Also of note, women favor social networking apps significantly more than men. SORUCE: (http://www.socialnetworkingwatch.com/all_social_networking_statistics/, 2010)
  • 19. MindBanking.com Page 16 4.1 Market Segmentation Target groups Innovators – is a main target group, which represents a community using MB.com application 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 MB.com portal. 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 goup are early adopters/trend setters/tech savy users. 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 respectivelly 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 friend with a programmer from Indonesia and a developer from New York and they
  • 20. MindBanking.com Page 17 started to develop one of his projects. Going deeper into the MindBanking portal he discovers he could do everything in one place in order to develop his project: he can manage it through Workflow tools, develop it through the Workingplatform, he finds a business plan development application extremely useful, as well as a database of investors. After a couple of months MindBanking.com becomes his global office, his conditio sine qua non. Every day he wakes up and starts his working day at the MindBanking.com. He spends the whole day managing his tasks, checking status of collaborators tasks, setting new tasks, managing possible problems in a project development, communicating with collaborators, finding investors or communicating with investors he had already make a connection with, developing business plan(s) etc., in a nutshell, developing his business. 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 vibrant business scene. User 2 – investor She 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 going to offer fresh ideas on a silver platter, crosses her mind. She opens the www.ft.com page and there it is, a banner: MindBanking.com, the source of business ideas! All of a sudden the world seems completely different. She rushes to the MindBanking.com, and finds not only what she was desperately looking for, but an extraordinary vigorous and exceptional business scene. At once she finds couple of mind-blowing projects matching 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 there are 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 only a global office but an entire new business. Table: Market Analysis Market Analysis 2011 2012 2013 2014 2015 Potential Customers Growth CAGR Innovators 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%
  • 21. MindBanking.com Page 18 4.2 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 means raising attention to high level consequently generating revenue. 4.3 Service Business Analysis Mindbanking project belongs to the online business social networking online services. Revenue models for this kind of services include subscriptionfees, advertising, service sales (pay per piece and subscription), and respectively brockerage. Xing.com – mainly subsrciption fees (premium membership) LinkedIn.com – mainly advertising Facebook.com – mainly advertising
  • 22. MindBanking.com Page 19 4.3.1 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. Such is the case with LinkedIn. Our added value: MindBanking.com 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. Threatsfor Mindbanking
  • 23. MindBanking.com Page 20 LinkedIn.com has an estimated 43 million users in 2009. According to the LinkedIn website, by April 2010 there were more than 65 million members, located in more than 200 countries. Facebook More than 500 million active users. source: (http://www.facebook.com/press/info.php?statistics, 2010) Narrow market Projects sharing the market with MindBanking.com; a niche market yet to be created. 1. Kickstarter (http://www.kickstarter.com/) 2. Amazee (http://www.amazee.com/)
  • 24. MindBanking.com Page 21 3. OpenInvo (http://www.openinvo.com/) All of the mentioned businesses do not have significant market share. 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.com, it represents an opportunity since the mentioned projects would create the niche market. 5.0 Strategy and Implementation Summary 5.1 SWOT Analysis
  • 25. MindBanking.com Page 22 5.1.1 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 project 5.1.2 Weaknesses 1. Relatively expensive production 2. Relatively slow production 3. Huge 5.1.3 Opportunities 1. To create new markets, economies and values 2. To create new communication paradigm 3. To generate substantial revenue 5.1.4 Threats 1. Strong competition
  • 26. MindBanking.com Page 23 5.2 Competitive Edge Main social/business network websites 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 estmated 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.
  • 27. MindBanking.com Page 24 5.3 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 wouldn't 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 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. Facebook - social ads and applications - 10.000 USD
  • 28. MindBanking.com Page 25 1.2. Google Adwords - around 20 key words for 1 month - 1.000 USD 1.3 LinkedIn - Direct Ads, targeted on communities - 10.000 USD 1.4 Guerilla marketing & WOM daily for a month on blogs, forums etc. - 1.000 USD 2.0 100 % ready campaign Strategy is to keep running Facebook social ads and Google Adwords all the time. Furthermore, to put banners on business and news portals with around 100.000 impressions, one by one. 2.1 NYTimes.com - around 100.000 impressions - 11.000 USD 2.2 FT.com - 468x60 banner, contextual targeting (business) plus geographical, Cost per Thousand Impressions (CPM) = 55, 00 GBP. Plan: 100.000 impressions = 5.500,00 GBP = 11.000,00 USD.
  • 29. MindBanking.com Page 26 5.4 Sales Strategy Beta testing period will last for 45 days. After that the subscription fee will be deployed as described.
  • 30. MindBanking.com Page 27 Additional storage of 3 GB will be charged 5 USD per month and offered as a 3/6/12 months package.
  • 31. MindBanking.com Page 28 Subscription will be available as a 3/6/12 months packages: As for the advertising, the aqasion 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. 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 globaly 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 blnto $3.3 billion (21.3% CAGR). Source: ITFacts; www.itfacts.biz/in-2012-21-of-global-ad-spending-will-happen- online/10034
  • 32. MindBanking.com Page 29 Table: Sales Forecast Sales Forecast FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Sales Subscriptions fees $230,143 $6,000,000 $21,000,000 $28,000,000 $48,000,000 Advertising space $314,080 $5,000,000 $17,000,000 $25,000,000 $41,000,000 Service sales $0 $1,000,000 $5,000,000 $9,000,000 $16,000,000 Total Sales $544,223 $12,000,000 $43,000,000 $62,000,000 $105,000,000 Direct Cost of Sales FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Research & Analysis $5,745 $480,000 $750,000 $1,650,000 $2,176,000 Tech Maintenance $26,000 $1,038,000 $2,076,000 $2,976,000 $4,376,000 Hardware & Development $37,776 $1,567,000 $3,584,000 $4,376,000 $6,396,000 Marketing & Sales $80,040 $2,088,000 $5,036,000 $7,376,000 $10,376,000 Management $19,922 $920,000 $1,700,000 $2,176,000 $3,177,000 Subtotal Direct Cost of Sales $169,483 $6,093,000 $13,146,000 $18,554,000 $26,501,000
  • 33. MindBanking.com Page 30 5.5 Milestones Table: Milestones Milestones Milestone Start Date End Date Budget Manager Department Application Finalization 2/25/2011 8/25/2011 $395,000 Ana Soric IT, Design Launch Marketing Camp 8/28/2011 9/28/2011 $50,000 Ana Soric Marketing Mobile Application Development 9/1/2011 2/1/2012 $650,000 Ana Soric IT Launch Mobile Marketing Camp 2/1/2012 3/1/2012 $400,000 Ana Soric Marketing DB Redesign 3/1/2012 9/1/2012 $1,300,000 Ana Soric IT, Design Launch Redesign Marketing Camp 9/1/2012 10/1/2012 $1,300,000 Ana Soric Marketing Next phase planning & development 10/1/2012 6/1/2013 $1,000,000 Ana Soric R&D Totals $5,095,000
  • 34. MindBanking.com Page 31 6.0 Management Summary 6.1 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 ROI 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 serious Board of Directors.
  • 35. MindBanking.com Page 32 Table: Personnel Personnel Plan FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 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 7.0 Financial Plan 7.1 Projections 7.2 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 140.000 USD.
  • 36. MindBanking.com Page 33 Table: Start-up Funding Start-up Funding Start-up Expenses to Fund $90,650 Start-up Assets to Fund $56,000 Total Funding Required $146,650 Assets Non-cash Assets from Start-up $0 Cash Requirements from Start-up $56,000 Additional Cash Raised $0 Cash Balance on Starting Date $56,000 Total Assets $56,000 Liabilities and Capital Liabilities Current Borrowing $0 Long-term Liabilities $146,650 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $146,650 Capital Planned Investment Owner Investor $0 Additional Investment Requirement $0 Total Planned Investment $0 Loss at Start-up (Start-up Expenses) ($90,650) Total Capital ($90,650) Total Capital and Liabilities $56,000 Total Funding $146,650 7.3 Important Assumptions 7.4 Break-even Analysis
  • 37. MindBanking.com Page 34 Table: Break-even Analysis Break-even Analysis Monthly Revenue Break-even $39,020 Assumptions: Average Percent Variable Cost 31% Estimated Monthly Fixed Cost $26,868 7.5 Projected Profit and Loss
  • 38. MindBanking.com Page 35
  • 39. MindBanking.com Page 36 Table: Profit and Loss Pro Forma Profit and Loss FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Sales $544,223 $12,000,000 $43,000,000 $62,000,000 $105,000,000 Direct Cost of Sales $169,483 $6,093,000 $13,146,000 $18,554,000 $26,501,000 Other Costs of Sales $16,082 $1,700,000 $3,200,000 $5,996,600 $10,707,359 Total Cost of Sales $185,564 $7,793,000 $16,346,000 $24,550,600 $37,208,359 Gross Margin $358,659 $4,207,000 $26,654,000 $37,449,400 $67,791,641 Gross Margin % 65.90% 35.06% 61.99% 60.40% 64.56% Expenses Payroll $46,000 $1,387,000 $2,640,000 $4,420,000 $8,879,000 Marketing/Promotion $15,758 $850,000 $2,200,000 $3,766,900 $6,474,557 Depreciation $0 $0 $0 $0 $0 Rent $38,961 $300,000 $400,000 $970,000 $1,345,046 Utilities $19,761 $140,000 $190,000 $294,600 $494,600 Insurance $35,707 $50,000 $70,000 $145,850 $254,600 Payroll Taxes $166,230 $294,000 $585,000 $769,000 $1,650,000 Total Operating Expenses $322,416 $3,021,000 $6,085,000 $10,366,350 $19,097,803 Profit Before Interest and Taxes $36,243 $1,186,000 $20,569,000 $27,083,050 $48,693,838 EBITDA $36,243 $1,186,000 $20,569,000 $27,083,050 $48,693,838 Interest Expense $14,164 $11,873 $9,295 $6,717 $4,140 Taxes Incurred $6,624 $352,238 $6,167,911 $8,122,900 $14,606,909 Net Profit $15,455 $821,889 $14,391,794 $18,953,433 $34,082,789 Net Profit/Sales 2.84% 6.85% 33.47% 30.57% 32.46%
  • 40. MindBanking.com Page 37 7.6 Projected Cash Flow
  • 41. MindBanking.com Page 38 Table: Cash Flow Pro Forma Cash Flow FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Cash Received Cash from Operations Cash Sales $544,223 $12,000,000 $43,000,000 $62,000,000 $105,000,000 Subtotal Cash from Operations $544,223 $12,000,000 $43,000,000 $62,000,000 $105,000,000 Additional Cash Received Sales Tax, VAT, HST/GST Received $125,171 $2,760,000 $9,890,000 $14,260,000 $24,150,000 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 $3,700,000 $0 $0 $0 Subtotal Cash Received $2,349,394 $18,460,000 $52,890,000 $76,260,000 $129,150,000 Expenditures FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Expenditures from Operations Cash Spending $46,000 $1,387,000 $2,640,000 $4,420,000 $8,879,000 Bill Payments $372,884 $9,096,246 $24,638,582 $37,586,154 $60,113,967 Subtotal Spent on Operations $418,884 $10,483,246 $27,278,582 $42,006,154 $68,992,967 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 $0 $0 Long-term Liabilities Principal Repayment $15,036 $25,776 $25,776 $25,776 $25,776 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 $433,920 $10,509,022 $27,304,358 $42,031,930 $69,018,743 Net Cash Flow $1,915,475 $7,950,978 $25,585,642 $34,228,070 $60,131,257 Cash Balance $1,971,475 $9,922,452 $35,508,094 $69,736,164 $129,867,422 7.7 Projected Balance Sheet
  • 42. MindBanking.com Page 39 Table: Balance Sheet Pro Forma Balance Sheet FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Assets Current Assets Cash $1,971,475 $9,922,452 $35,508,094 $69,736,164 $129,867,422 Other Current Assets $0 $0 $0 $0 $0 Total Current Assets $1,971,475 $9,922,452 $35,508,094 $69,736,164 $129,867,422 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 $1,971,475 $9,922,452 $35,508,094 $69,736,164 $129,867,422 Liabilities and Capital FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Current Liabilities Accounts Payable $109,884 $804,749 $2,134,373 $3,174,786 $5,099,031 Current Borrowing $0 $0 $0 $0 $0 Other Current Liabilities $125,171 $2,885,171 $12,775,171 $27,035,171 $51,185,171 Subtotal Current Liabilities $235,056 $3,689,920 $14,909,544 $30,209,958 $56,284,202 Long-term Liabilities $131,614 $105,838 $80,062 $54,286 $28,510 Total Liabilities $366,670 $3,795,758 $14,989,606 $30,264,244 $56,312,712 Paid-in Capital $1,680,000 $5,380,000 $5,380,000 $5,380,000 $5,380,000 Retained Earnings ($90,650) ($75,195) $746,694 $15,138,488 $34,091,921 Earnings $15,455 $821,889 $14,391,794 $18,953,433 $34,082,789 Total Capital $1,604,805 $6,126,694 $20,518,488 $39,471,921 $73,554,709 Total Liabilities and Capital $1,971,475 $9,922,452 $35,508,094 $69,736,164 $129,867,422 Net Worth $1,604,805 $6,126,694 $20,518,488 $39,471,921 $73,554,709 7.8 Business Ratios
  • 43. MindBanking.com Page 40 Table: Ratios Ratio Analysis FY 2012 FY 2013 FY 2014 Industry Profile Sales Growth 0.00% 2104.98% 258.33% 10.93% Percent of Total Assets Other Current Assets 0.00% 0.00% 0.00% 52.04% Total Current Assets 100.00% 100.00% 100.00% 76.18% Long-term Assets 0.00% 0.00% 0.00% 23.82% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 11.92% 37.19% 41.99% 33.87% Long-term Liabilities 6.68% 1.07% 0.23% 13.22% Total Liabilities 18.60% 38.25% 42.21% 47.09% Net Worth 81.40% 61.75% 57.79% 52.91% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 65.90% 35.06% 61.99% 100.00% Selling, General & Administrative Expenses 63.06% 28.21% 28.52% 74.12% Advertising Expenses 0.00% 0.00% 0.00% 2.32% Profit Before Interest and Taxes 6.66% 9.88% 47.83% 2.90% Main Ratios Current 8.39 2.69 2.38 1.74 Quick 8.39 2.69 2.38 1.37 Total Debt to Total Assets 18.60% 38.25% 42.21% 58.31% Pre-tax Return on Net Worth 1.38% 19.16% 100.20% 6.41% Pre-tax Return on Assets 1.12% 11.83% 57.90% 15.38% Additional Ratios FY 2012 FY 2013 FY 2014 Net Profit Margin 2.84% 6.85% 33.47% n.a Return on Equity 0.96% 13.41% 70.14% n.a Activity Ratios Accounts Payable Turnover 4.39 12.17 12.17 n.a Payment Days 27 17 21 n.a Total Asset Turnover 0.28 1.21 1.21 n.a Debt Ratios Debt to Net Worth 0.23 0.62 0.73 n.a Current Liab. to Liab. 0.64 0.97 0.99 n.a Liquidity Ratios Net Working Capital $1,736,419 $6,232,532 $20,598,550 n.a Interest Coverage 2.56 99.89 2,212.91 n.a Additional Ratios Assets to Sales 3.62 0.83 0.83 n.a Current Debt/Total Assets 12% 37% 42% n.a Acid Test 8.39 2.69 2.38 n.a Sales/Net Worth 0.34 1.96 2.10 n.a Dividend Payout 0.00 0.00 0.00 n.a
  • 44. MindBanking.com Page 41 7.9 Long-term Plan Table: Long-term Long-term FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Sales $544,223 $12,000,0 00 $43,000,0 00 $62,000,0 00 $105,000, 000 $232,400, 000 $498,500, 000 $654,000, 000 $860,000, 000 $999,000, 000 Cost of Sales $185,564 $7,793,00 0 $16,346,0 00 $24,550,6 00 $37,208,3 59 $95,000,0 00 $190,000, 000 $273,000, 000 $399,000, 000 $420,000, 000 Gross Margin $358,659 $4,207,00 0 $26,654,0 00 $37,449,4 00 $67,791,6 41 $137,400, 000 $308,500, 000 $381,000, 000 $461,000, 000 $579,000, 000 Gross Margin % 65.90% 35.06% 61.99% 60.40% 64.56% 59.12% 61.89% 58.26% 53.60% 57.96% Operating Expenses $322,416 $3,021,00 0 $6,085,00 0 $10,366,3 50 $19,097,8 03 $68,000,0 00 $160,000, 000 $238,000, 000 $300,000, 000 $360,000, 000 Operating Income $36,243 $1,186,00 0 $20,569,0 00 $27,083,0 50 $48,693,8 38 $69,400,0 00 $148,500, 000 $143,000, 000 $161,000, 000 $219,000, 000 Net Income $15,455 $821,889 $14,391,7 94 $18,953,4 33 $34,082,7 89 $69,374,2 24 $148,474, 224 $142,974, 224 $160,990, 016 $219,000, 000 Current Assets $1,971,47 5 $9,922,45 2 $35,508,0 94 $69,736,1 64 $129,867, 422 $0 $0 $0 $0 $0 Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Current Liabilities $235,056 $3,689,92 0 $14,909,5 44 $30,209,9 58 $56,284,2 02 $0 $0 $0 $0 $0 Long-term Liabilities $131,614 $105,838 $80,062 $54,286 $28,510 $25,776 $25,776 $25,776 $9,984 $0 Equity $1,604,80 5 $6,126,69 4 $20,518,4 88 $39,471,9 21 $73,554,7 09 $69,374,2 24 $148,474, 224 $142,974, 224 $160,990, 016 $219,000, 000
  • 45. Appendix Page 1 Table: Sales Forecast Sales Forecast Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Sales Subscriptions fees 0% $0 $0 $0 $0 $0 $0 $0 $23,400 $38,743 $47,300 $57,600 $63,100 Advertising space 0% $0 $0 $0 $0 $0 $0 $0 $0 $45,480 $65,000 $87,600 $116,000 Service sales 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Sales $0 $0 $0 $0 $0 $0 $0 $23,400 $84,223 $112,300 $145,200 $179,100 Direct Cost of Sales Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Research & Analysis $0 $0 $0 $0 $0 $0 $0 $1,149 $1,149 $1,149 $1,149 $1,149 Tech Maintenance $0 $0 $0 $0 $0 $0 $0 $4,000 $4,000 $6,000 $6,000 $6,000 Hardware & Development $2,500 $0 $0 $0 $0 $0 $0 $3,960 $4,356 $7,120 $9,200 $10,640 Marketing & Sales $3,000 $0 $0 $0 $0 $0 $0 $6,700 $7,340 $13,000 $20,000 $30,000 Management $1,500 $0 $0 $0 $0 $0 $0 $3,180 $3,400 $3,480 $3,480 $4,882 Subtotal Direct Cost of Sales $7,000 $0 $0 $0 $0 $0 $0 $18,989 $20,245 $30,749 $39,829 $52,671
  • 46. Appendix Page 2 Table: Personnel Personnel Plan Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Strategy, 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 $2,000 Design & Development 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $2,000 R &D 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Tech Maintenance 0% $0 $0 $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Customer Support 0% $0 $0 $0 $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Legal 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Marketing 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Maintenance 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total People 0 0 0 0 0 0 0 0 0 0 0 0 Total 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
  • 47. Appendix Page 3 Table: Profit and Loss Pro Forma Profit and Loss Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Sales $0 $0 $0 $0 $0 $0 $0 $23,400 $84,223 $112,300 $145,200 $179,100 Direct Cost of Sales $7,000 $0 $0 $0 $0 $0 $0 $18,989 $20,245 $30,749 $39,829 $52,671 Other Costs of Sales $664 $703 $811 $963 $1,090 $1,210 $1,358 $1,472 $1,691 $1,874 $2,013 $2,234 Total Cost of Sales $7,664 $703 $811 $963 $1,090 $1,210 $1,358 $20,461 $21,936 $32,623 $41,842 $54,904 Gross Margin ($7,664) ($703) ($811) ($963) ($1,090) ($1,210) ($1,358) $2,939 $62,287 $79,677 $103,358 $124,196 Gross 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% Expenses 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 Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $1,166 $3,056 $3,096 $3,560 $4,880 Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rent $2,806 $2,776 $2,843 $3,383 $3,408 $3,360 $3,360 $3,424 $3,408 $3,376 $3,408 $3,408 Utilities $1,350 $1,447 $1,474 $1,458 $1,474 $1,441 $1,441 $1,612 $1,800 $1,920 $2,088 $2,256 Insurance 15% $1,949 $2,184 $2,352 $2,352 $2,472 $2,544 $2,735 $3,023 $3,359 $3,696 $4,176 $4,864 Payroll Taxes $7,360 $7,780 $8,410 $9,040 $14,500 $16,866 $17,034 $17,426 $17,006 $17,006 $17,006 $16,796 Total Operating Expenses $16,466 $17,187 $16,079 $19,233 $24,854 $28,211 $29,570 $31,651 $33,629 $32,094 $35,238 $38,204 Profit 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 $85,992 EBITDA ($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 $1,222 $1,222 $1,222 $1,222 $1,222 $1,204 $1,186 $1,168 $1,150 $1,133 $1,115 $1,097 Taxes Incurred ($7,605) ($5,734) ($5,434) ($6,425) ($8,150) ($9,188) ($9,634) ($8,964) $8,252 $13,935 $20,102 $25,469 Net Profit ($17,746) ($13,378) ($12,679) ($14,992) ($19,017) ($21,438) ($22,480) ($20,916) $19,255 $32,516 $46,904 $59,427 Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -89.39% 22.86% 28.95% 32.30% 33.18%
  • 48. Appendix Page 4 Table: Cash Flow Pro Forma Cash Flow Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Cash Received Cash fromOperations Cash Sales $0 $0 $0 $0 $0 $0 $0 $23,400 $84,223 $112,300 $145,200 $179,100 Subtotal Cash fromOperations $0 $0 $0 $0 $0 $0 $0 $23,400 $84,223 $112,300 $145,200 $179,100 Additional Cash Received Sales Tax, VAT, HST/GST Received 23.00% $0 $0 $0 $0 $0 $0 $0 $5,382 $19,371 $25,829 $33,396 $41,193 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Long-termLiabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Long-termAssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $130,000 $0 $0 $0 $250,000 $0 $0 $0 $1,300,000 Subtotal Cash Received $0 $0 $0 $130,000 $0 $0 $0 $278,782 $103,594 $138,129 $178,596 $1,520,293 Expenditures Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Expenditures fromOperations Cash Spending $3,000 $3,000 $1,000 $3,000 $3,000 $4,000 $5,000 $5,000 $5,000 $3,000 $5,000 $6,000 Bill Payments $492 $14,600 $10,422 $11,689 $12,127 $16,064 $17,439 $18,208 $40,005 $60,529 $77,335 $93,975 Subtotal Spent on Operations $3,492 $17,600 $11,422 $14,689 $15,127 $20,064 $22,439 $23,208 $45,005 $63,529 $82,335 $99,975 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Long-termLiabilities Principal Repayment $0 $0 $0 $0 $0 $2,148 $2,148 $2,148 $2,148 $2,148 $2,148 $2,148 Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Purchase Long-termAssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Spent $3,492 $17,600 $11,422 $14,689 $15,127 $22,212 $24,587 $25,356 $47,153 $65,677 $84,483 $102,123 Net Cash Flow ($3,492) ($17,600) ($11,422) $115,311 ($15,127) ($22,212) ($24,587) $253,426 $56,442 $72,452 $94,113 $1,418,170 Cash Balance $52,508 $34,908 $23,487 $138,798 $123,671 $101,459 $76,872 $330,298 $386,740 $459,192 $553,305 $1,971,475
  • 49. Appendix Page 5 Table: Balance Sheet Pro Forma Balance Sheet Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Assets Starting Balances Current Assets Cash $56,000 $52,508 $34,908 $23,487 $138,798 $123,671 $101,459 $76,872 $330,298 $386,740 $459,192 $553,305 $1,971,475 Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Current Assets $56,000 $52,508 $34,908 $23,487 $138,798 $123,671 $101,459 $76,872 $330,298 $386,740 $459,192 $553,305 $1,971,475 Long-termAssets Long-termAssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Long-termAssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Assets $56,000 $52,508 $34,908 $23,487 $138,798 $123,671 $101,459 $76,872 $330,298 $386,740 $459,192 $553,305 $1,971,475 Liabilities and Capital Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Current Liabilities Accounts Payable $0 $14,254 $10,032 $11,289 $11,593 $15,483 $16,857 $16,897 $38,006 $57,969 $74,225 $90,186 $109,884 Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $5,382 $24,753 $50,582 $83,978 $125,171 Subtotal Current Liabilities $0 $14,254 $10,032 $11,289 $11,593 $15,483 $16,857 $16,897 $43,388 $82,722 $124,807 $174,165 $235,056 Long-termLiabilities $146,650 $146,650 $146,650 $146,650 $146,650 $146,650 $144,502 $142,354 $140,206 $138,058 $135,910 $133,762 $131,614 Total Liabilities $146,650 $160,904 $156,682 $157,939 $158,243 $162,133 $161,359 $159,251 $183,594 $220,780 $260,717 $307,927 $366,670 Paid-in Capital $0 $0 $0 $0 $130,000 $130,000 $130,000 $130,000 $380,000 $380,000 $380,000 $380,000 $1,680,000 Retained Earnings ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) ($90,650) Earnings $0 ($17,746) ($31,124) ($43,803) ($58,795) ($77,812) ($99,250) ($121,730) ($142,646) ($123,391) ($90,875) ($43,971) $15,455 Total Capital ($90,650) ($108,396) ($121,774) ($134,453) ($19,445) ($38,462) ($59,900) ($82,380) $146,704 $165,959 $198,475 $245,379 $1,604,805 Total Liabilities and Capital $56,000 $52,508 $34,908 $23,487 $138,798 $123,671 $101,459 $76,872 $330,298 $386,740 $459,192 $553,305 $1,971,475 Net Worth ($90,650) ($108,396) ($121,774) ($134,453) ($19,445) ($38,462) ($59,900) ($82,380) $146,704 $165,959 $198,475 $245,379 $1,604,805
  • 50. 1 Appendix Table – work and services already invested Job Hours Team Total hrs Research & Analysis Trend analysis 77h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion Market analysis 66h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion Case studies 80 h Ana Sorić Sail Media/One of Three Comparative analysis 30 h Ana Sorić Sail Media/One of Three Business info interpretation 50h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion Interpretation of goals & Business model proposal 60h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion 363h Business Plan Strategic positioning of a business case 50h Ana Sorić Sail Media/One of Three Concept elucidation 30h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion Communication strategy 45h Ana Sorić Sail Media/One of Three
  • 51. 2 Project diagram development 30h Ana Sorić Sail Media/One of Three Business plan creation & update 350h Ana Sorić Sail Media/One of Three Business plan evaluation (first draft) 50h Hassan Jaferi; Canadian Intellectual Property Office; PARTEQ Innovations Total hrs 555h Branding 150h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion 150h Front End & Information Architecture (IA) Communities analysis 30h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion Proposal for creative concept 30h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion Proposal for technical concept 50h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion Content inventory 25h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion Graphic design concept & development 250h Stipe Splivalo Arterion Documentation - graphic standards 50h Stipe Splivalo Arterion User experience analysis 30h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion IA – Information architecture design 200h Ana Sorić Sail Media/One of Three Stipe Splivalo Arterion
  • 52. 3 Total hrs 665h Investor relations management 770h Ana Sorić Sail Media/One of Three Natko Vlahović HOK Stipe Splivalo Arterion Tomislav Ilić Reprograph 770h Legal 50h Tomislav Šunjić Aljoša Šerić 50h TOTAL HOURS 2553h

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