2. Assumptions
We will offer renewal discounts (marginal cost of delivery is low, cost of
acquiring customers is higher) modeled on a 25% renewal discount.
There will be customer losses as not everyone will renew.
We will have a phased approach to UK vs other regions and so
revenues will increase in different regions over different timescales.
We are only considering revenue for the first 6 lesson module.
No price differentiation by region.
There will be cancellations and chargebacks but they are not
addressed here.
Numbers in the schools are derived from CIA Factbook
We've assumed that we pick up 10% of the available schools in the
first year of selling in a region and then add 5% growth to sales each
year there's going to be a natural ceiling but we doubt we'll hit it in the
first few years.
Year one sales in each region will have an introductory discount
equivalent to the renewal discount.
3. School & Student numbers
Country Number of Source Children per English No. English
Primary school year speaking % Speaking
Schools (000's) children
Canada 20000 Est 378,571 58 219571
USA 200000 Est 4,500,000 82 3690000
UK 21000 Res 357,143 100 357143
Australia 6357 Res 285,714 82 234285
Ireland 3200 Res 62143 100 62142
New Zealand 1200 Res 1000 100 1000
TOTAL 251,757 5,584,571 4564142
4. Projected Sales to Schools
Region Year 1 Year 2 Year 3 Year 4 Year 5 Region Total
UK 2000 3000 4000 5000 6000 20000
USA 0 9000 14000 19000 24000 66000
Canada 0 2000 3000 4000 5000 14000
Ireland 0 2000 3000 4000 5000 14000
Australia 0 700 1200 1800 2400 6100
New Zealand 0 120 180 240 300 840
Total Sales 2000 16820 25380 34040 42700 120940
Customer Renewal % 80
Unit Price £50
Renewal Discount % 25
5. School Revenue by region
Region Year 1 Year 2 Year 3 Year 4 Year 5 Region Total
UK £75,000 £130,000 £170,000 £210,000 £250,000 £835,000
USA £0 £450,000 £610,000 £810,000 £1,010,000 £2,880,000
Canada £0 £100,000 £130,000 £170,000 £210,000 £610,000
Ireland £0 £100,000 £130,000 £170,000 £210,000 £610,000
Australia £0 £35,000 £53,000 £78,000 £102,000 £268,000
New Zealand £0 £6,000 £7,800 £10,200 £12,600 £36,600
Total Revenue £75,000 £821,000 £1,100,800 £1,448,200 £1,794,600 £5,239,600
Sales type Year 1 Year 2 Year 3 Year 4 Year 5
Renewal Sales 1600 13456 20304 27232 34160
New Sales 400 3364 5076 6808 8540
Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Annual Revenue £75,000 £821,000 £1,100,800 £1,448,200 £1,794,600
Cumulative Revenue £75,000 £896,000 £1,996,800 £3,445,000 £5,239,600
