Financial Model for Thecnology Entrepreneurship

1. Cost & Revenue Model Summary
Year1 % Year2 % Year3 %
Revenue 1,910,820 1 2,503,371 1 3,944,163 1
Cost of Goods Sold 144536455% 76% 167378079% 67% 284542734% 72%
Gross Margin 465,455.50 0.24 829,590.19 0.33 1,098,736.04 0.28
Cost of Sales APP and Marketing 4058579% 2% 4406158% 2% 5339058% 1%
Cost of Product Development 11940000% 6% 13731000% 5% 15790650% 4%
Costs of Salaries Wages and benefits 264,000 0 501,600 0 613,800 0
Other Operating expenses 83400 0.0436 87570 0.034981 91948.5 0.023313
Total Expenses 347,400 0 589,170 0 705,749 0
Net Profit before Taxes & Finance Leverage 118,055.50 0.0618 240420.1858 0.096039 392987.5387 0.099638
Finance Leverage 89,638 0 113,148 0 177,559 0
Taxes 7,104 0 31,818 0 53,857 0
Net Profit 2131296% 1% 9545448% 4% 16157156% 4%
Assumptions:
Finance Leverage as % of Cost and Expenses

2. GPS Device + Pet collar : Pet tracker device
Variables &
Year 1 Year 2 Year 3
UNITS 16.262 21.954 37.322
Increase Per Month/Year 35% 35% 70%
Pet Collar List Price $ 125,00 112,50 100,00
Pet Collar List Price Increment -10% -10% -10%
Discount % 30% 30% 30%
Maintainance Fee $ 487.869 724.485 1.231.625
Advertisement Incomes 50.000 100.000
Sales Revenues 1.910.820 2.503.371 3.944.163
Costs of Goods sold
GPS device 1.071.512 1.185.522 2.015.387
Collar 65.049 96.598 164.217
GPS & Collar Cost Increment -10% -10% -10%
Import Costs 113.656 128.212 217.960
packaging 16.262 21.954 37.322
Insurance 16.262 21.954 37.322
App/Media 162.623 219.541 373.220
Total COGS 1.445.365 1.673.781 2.845.427
Gross Margin $ 465.456 829.590 1.098.736
Gross margin % 24,4% 33,1% 27,9%
Assumptions:
Discounts for selling with distributors and other channels, Amazon, Walmart, Petsmart, Petco
App Media is the cost of Mainanining the App and the Online tracking service.
GPS Device tendence is to cost less year by year
Costs: instead of going down as purchase power and volume for purposes of modeling remain the same
Collar and GPS Cost from Made in China
Maintenance Fee Charge is an average rate, but after second year growth 10% per year

3. Cost of sales on Marketing and APP/WEB Capability
year 1 year 2 year 2
Web Site permanent Development 3.000 3.600 4.320
Web Site Development OTO 4.500
Web Corporate Site hosting 336 672 672
Web Dominium Cost 50 100 150
Internet Marketing 1.200 1.440 1.728
Online Support 3.000 3.600 4.320
Advertising 12.000 14.400 17.280
Trade and Pet shows 6.000 7.200 8.640
Networking Events 4.800 5.760 6.912
Entertainment 2.400 2.880 3.456
Subscriptions 600 900 1.350
ERP & CRMSoftware and System 2.700 3.510 4.563
Total MKG and APP / Web 40.586 44.062 53.391
Assumptions:
website development 4500
Hosting Costs in pesos (exchange Rate $1.900):

4. Year 1 Year2 year 3
Software and Licences 3.000,00$ 3.450,00$ 3.967,50$
Hardware Outsourcing Cost per Equipment 9.000,00$ 10.350,00$ 11.902,50$
Maintainance Agreements 6.000,00$ 6.900,00$ 7.935,00$
Software lease 6.000,00$ 6.900,00$ 7.935,00$
Hardware Lease 6.000,00$ 6.900,00$ 7.935,00$
Media and training materials 12.000,00$ 13.800,00$ 15.870,00$
Computer Supplies 3.000,00$ 3.450,00$ 3.967,50$
Training 6.000,00$ 6.900,00$ 7.935,00$
Total Software and hardware 51.000,00$ 58.650,00$ 67.447,50$
Information Technology 6.000,00$ 6.900,00$ 7.935,00$
LAN Server
Internet - Connectivity Equipment
Systems integration 42.000,00$ 48.300,00$ 55.545,00$
data base server
Application server
Web server
Software development and Testing 20.400,00$ 23.460,00$ 26.979,00$
Development Server
Development DB server
Test hardware and software
Test equipment
Estimated per year 119.400,00$ 137.310,00$ 157.906,50$
increase of 15%
Product Development

5. Salaries & Benefits Costs
Headcount Salary YR 1 Yr 2 yr3
People People People
Sales 45.000,00$ 90.000,00$ 90.000,00$
Makg -$ 40.000,00$ 40.000,00$
Operations & Administration 40.000,00$ 80.000,00$ 80.000,00$
Technical 30.000,00$ 30.000,00$ 60.000,00$
Systems 60.000,00$ 90.000,00$ 120.000,00$
finance 25.000,00$ 50.000,00$ 75.000,00$
Direct HR Cost 200.000,00$ 380.000,00$ 465.000,00$
Employee Costs of benefits 32% 64.000,00$ 121.600,00$ 148.800,00$
Cost of salaries 264.000,00$ 501.600,00$ 613.800,00$
Assumptions:
32% of wages burden: Taxes, pension plan, medical insurance, social security, fringe benefits, etc. (Carga Social)
Technical, Systems and Finance in Colombian Cost

6. Operational Expenses
year 1 year 2 year 3
Rent 28.800 30.240 31.752
Phone Local Service 4.200 4.410 4.631
Office and Admin 37.800 39.690 41.675
Accounting and Other Licenses 5.100 5.355 5.623
Legal 7.200 7.560 7.938
Licence and Permits 300 315 331
Total operational expenses 83.400 87.570 91.949
Assumptions (Each item include the following):
Local service
long distance
800 service
Cell Phonne
Total Phone
Office & Admin
postage
Office & Shipping
banking Fees
Miscellaneous
Total Office and Admin
Accounting and Other G&A Licenses
Accounting General
General
Other fees
Total
legal
Corporate
Partnertship Agreements
patent protection
Total Legal
Phone Details