**** Comprehensive Site
Business Plan
Executive Summary
HMR, Inc. is in process of being formed as a
Corporation in ****.
• The Objectives:
– to generate profit
– to grow at a challenging and manageable rate
– to be a good citizen and to help the country
• The Mission:
to develop and maintain a portal called ICS to help
**** business gain, and optimally benefit from online
technology.
Executive SummaryContinued
• The key to success:
- marketing and networking
- responsiveness to customer needs
- high quality, and generating repeat customers
• Sources of Income:
The initial primary services offered will be charged
based on monthly fees and subscriptions.
Executive SummaryContinued
• The Market:
- the market for this business is wide open in ****
- an **** Web Portal that offers a broad array of
resources and services, such as e-mail, forums,
search engines, news, and on-line shopping and
links to other sites is missing.
- **** is among the few countries in the world that
lacks such a domestic Web "supersite.”
Executive SummaryContinued
• Competition:
Several firms currently offer the similar but limited
services to those planned by HMR, Inc.
(1) www.****.com
(2) www.****.org
(3) www.****.net.
None of these firms are seen as a significant barrier
to the success of HMR, Inc. because, as stated
previously, the overall market comprises nearly every
service business in the country. In fact, some of
these organizations may be potential alliance
partners to HMR, Inc.
Executive SummaryContinued
• Rapid Growth:
$2,000,000.00
$1,500,000.00
$1,000,000.00
Revenue
Expenses
Net Profit
$500,000.00
$0.00
-$500,000.00
2007
2008
2009
2010
2011
2012
Services Provided
• e-Learning
• Online Classes
• Virtual Classes
• Cyberschool
• e-Business
• Credit Card Shopping
• Debit Card Shopping
• e-Traveling
• Web Mail
• Anti Spam System
• Anti Virus System
• News
• Local/Regional/National
• Stock Market
Services Provided
(Continued)
• Advertisement
•
•
•
•
Banners & buttons
Text links & search results
Multi-format sponsorships
Context-Sensitive Ads
• Web Shopping
• Shopping Cart
• Secure Server
• Web Hosting
• Content Management
• Personal Templates
Services Provided
(Continued)
• Domain Hosting
• Web Log
• Chat & Forums
•
•
•
•
ICP Messenger
Chat Rooms
Voice Chat & Video Chat
File transferring
Operational Phases
ICS will be designed and implemented in five phases in roughly
thirty months @ total estimated cost of $2,382,000.
• Phase 1 - Preparation phase (September to December 2007)
(four months)
•
•
•
•
•
Recruitment of experts (mostly programmers) - $30,000
Securing of an office and a data center - $10,000
Purchasing of PCs for the office - $10,000
Purchasing of Bandwidth - $24,000
Purchasing of office furniture - $30,000
Total Cost: $104,000
Operational Phases
Phase 2 - Design phase (January to September 2008) (nine months)
•
•
•
•
•
•
•
•
Expansion of Bandwidth to 5 megabytes - $30,000
Purchasing of more PCs for the office - $10,000
Purchasing of office equipment - $5,000
Recruitment of sales force - $40,000
Office Rent - $18,000
Marketing the ICS to individuals, companies, and government agencies - $20,000
Design and testing of the ICS prototype – $30,000
Design and testing of Farsi modules (including payroll) - $610,000
–
–
–
–
–
–
–
–
–
–
–
–
–
E-mail
Web log
Personal web templates
Public and custom design news
Pictures and Videos
Search Engine
News and Views
Music Messengers
Stock Marker
Weather Information
Single Users Passport ID and User name for advance users
Banners & buttons
Text links & search results
Total Cost: $763,000
Operational Phases
Phase 3 - Connection phase (October 2008 to March 2009) (six
months)
•
•
•
•
•
•
Expansion of Bandwidth to 10-30 megabytes - $21,000
Connection to Fiber Optic Network - $20,000
Purchasing of hardware and software for Data Center - $45,000
Office Rent - $10,000
Configuration of Secure Data Center and installation of hardware and
software - $90,000
Design and testing of Farsi modules (including payrolls) - $470,000
– e-Learning
– e-Business
– Cyberschool
– Content Management
Total Cost: $656,000
Operational Phases
Phase 4 - Implementation phase (April to September 2009)
(six months)
•
•
•
•
Marketing the ICS to individuals, companies, and government
agencies - $40,000
Office Rent - $10,000
Recruitment of experts and technical staff - $150,000
Design and testing of Farsi modules (including Payroll) - $174,000
– Travel
– Digital Locker/ Brief Case
– Messengers
– Stock Marker
– Weather Information
Total Cost: $374,000
Operational Phases
Phase 5- Testing/Improvement phase (October 2009 to March
2010) (six months)
•
•
•
•
•
Office Rent - $10,000
Advertising and promotion – $139,000
Testing and modifications of all modules - $126,000
Design and testing of other modules as needed - $150,000
Securing collaboration with other existing Farsi portals - $60,000
Total Cost: $485,000
Operational Expenses by Phases
$800,000.00
$700,000.00
$600,000.00
$500,000.00
$400,000.00
Expeses
$300,000.00
$200,000.00
$100,000.00
$0.00
Phase I Phase
II
Phase
III
Phase
IV
Phase
V
Client Target
Individuals:
• e-mail, News, Web Log, Personal web templates, etc.
Industries:
• Business-to-customer services, Business-to-business
services, especially (a) those with international operations (e.g.
import/export firms, travel agencies, freight forwarders) and (b)
other information-intensive services (e.g. law, accounting, and
consulting practices, banks, financial services, brokers), and (c)
major government agencies.
Size:
• 50 to 5,000 employees
Client Target (Continued)
An estimated 100,000 businesses fit this profile.
According to an industry magazine, only 30 percent
of businesses with microcomputers have "online
capability" (i.e. are equipped with a modern and
telecommunications software). This implies a total
market of 70,000 businesses (70 percent of
100,000) with no online capability, and an additional
30,000 businesses (30 percent) that have online
capability. but may or may not be using it to their full
advantage. It is the latter 30 percent that have the
highest potential as HMR, Inc. customers.
Type of Customer
40.00%
35.00%
30.00%
25.00%
20.00%
Percet of Total
15.00%
10.00%
5.00%
0.00%
Religion
Individuals
Private Bus. Government
Estimated Revenue
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
Sales
$800,000
$600,000
$400,000
$200,000
$0
2007
2008
2009
2010
2011
2112
5 Year Profit & Loss
$2,000,000
$1,500,000
$1,000,000
Revenue
Expenses
$500,000
Pre-tax Profit
$0
-$500,000
2007
2008
2009
2010
2011
2012
Estimated Revenue
Est. Sales
2007
2008
2009
2010
2011
2012
Advertisement
0
74,000
130,000
200,000
266,000
330,000
Web Hosting
0
110,000
200,000
280,000
410,000
495,000
Web Mail
0
120,000
250,000
360,000
537,000
660,000
Web Shopping
0
30,000
75,000
88,000
137,000
165,000
e_Learning
0
10,000
50,000
75,000
95,000
110,000
News
0
10,000
15,000
40,000
50,000
55,000
Web Log
0
0
15,000
50,000
60,000
65,000
Book Stores
0
20,000
20,000
24,000
28,000
32,000
Auctions
0
0
10,000
33,000
47,000
58,000
Total
0
374,000
765,000
1,150,000
1,630,000
1,970,000
Estimated Costs
Est. Costs
Payroll
2007
2008
2009
2010
2011
2012
50,000
400,000
250,000
150,000
250,000
200,000
Software Dev.
0
469,000
362,000
150,000
220,000
100,000
Advertising
0
100,000
150,000
80,000
80,000
100,000
50,000
100,000
150,000
120,000
100,000
90,000
Supplies
2,000
12,000
17,000
22,000
27,000
31,000
Utilities
2,000
10,000
15,000
20,000
25,000
30,000
104,000
1,091,000
944,000
542,000
702,000
551,000
Office Expenses
Total
Break-Even Analysis
Desc.
2007
2008
2009
2010
2011
2012
0
374,000
765,000
1,150,000
1,630,000
1,970,000
Cash-out
104,000
1,091,000
944,000
542,000
702,000
551,000
Balance
-104,000
-717,000
-179,000
608,000
928,000
1,419,000
Total Profit
-104,000
-821,000
-1,000,000
-392,000
536,000
1,955,000
Cash-in
B reak-E ven A nalys is
2,500,000
2,000,000
1,500,000
C as h-in
US $
1,000,000
C as h-out
500,000
B alanc e
0
-500,000
-1,000,000
-1,500,000
2007
2008
2009
2010
2011
2012
Total P rofit
Mission/Strategy/Ta
ctics
Mission
Strategy
Tactics
How does mission, strategies and tactics relate to
decision making and distinctive competencies?
Strategy
• Strategies
– Plans for achieving organizational goals
• Mission
–
The reason for existence for an organization
• Mission Statement
–
Answers the question “What business are we
in?”
• Goals
–
Provide detail and scope of mission
• Tactics
–
The methods and actions taken to accomplish
strategies
Planning and Decision Making
Mission
Goals
Organizational Strategies
Functional Goals
Finance
Strategies
Tactics
Operating
procedures
Marketing
Strategies
Tactics
Operating
procedures
Operations
Strategies
Tactics
Operating
procedures
Strategy Example
Rita is a high school student. She would like to
have a career in business, have a good job, and
earn enough income to live comfortably
Mission:
• Goal:
• Strategy:
• Tactics:
• Operations:
Live a good life
Successful career, good income
Obtain a college
education
Select a college and a major
Register, buy books, take
courses, study, graduate, get
job
Examples of Strategies
•
•
•
•
•
Low cost
Specialization
Flexible operations
High quality
Service
Strategy and Tactics
• Distinctive Competencies
The special attributes or abilities that give an
organization a competitive edge.
–
–
–
–
–
–
Price
Quality
Time
Flexibility
Service
Location
Examples of Distinctive
Competencies
Price
Low Cost
U.S. first-class postage
Motel-6, Red Roof Inns
Quality
High-performance design Sony TV
or high quality Consistent Lexus, Cadillac
quality
Pepsi, Kodak, Motorola
Time
Rapid delivery
On-time delivery
Express Mail, Fedex,
One-hour photo, UPS
Flexibility
Variety
Volume
Burger King
Supermarkets
Service
Superior customer
service
Disneyland
Nordstroms
Location
Convenience
Banks, ATMs