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InteliChild.com — Sample Plan
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Table of Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
3
3
2.0
Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1
Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2
Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3
Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
3
3
5
3.0
Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1
Product Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2
Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3
Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.4
Sourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5
Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6
Future Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
6
6
6
6
6
7
4.0
Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.1
Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2
Website Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3
Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.1 Industry Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.2 Distribution Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.3 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.4 Main Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
7
8
8
9
9
9
9
9
9
9
5.0
Web Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.1
Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2
Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3
Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3.1 Front End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3.2 Back End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.4
Traffic Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
10
10
10
10
11
11
6.0
Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.1
Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2
Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.3
Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4
Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.1 Positioning Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.2 Pricing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.3 Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.4 Commerce Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.5 Marketing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.5
Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.5.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.5.2 Sales Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.6
Strategic Alliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.7
Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
11
12
12
12
12
12
13
13
13
13
14
15
15
16
7.0
Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
7.1
Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
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1.0
Table of Contents
Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.1
Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.2
Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.3
Exit Strategy and Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.4
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.5
Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.6
Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.7
Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.8
Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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8.0
Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Management Team Gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
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7.2
7.3
7.4
19
19
20
21
22
23
25
27
28
Internet Sample Business Plan
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1.0 Executive Summary
Introduction
InteliChild.com offers bright children an entertaining place to interact with each other, the
Web, educators, and the world in general. It generates traffic first, valuation for investors,
and eventually commerce and profits. It is a healthy place for kids to play, for parents and
schools to buy, and a creative and fair work environment for employees.
The InteliChild.com e-commerce project is the natural evolution for the InteliChild.com
Internet presence. The site will market and sell selected toys, books, and software products.
It will also produce Web products and Web applications that will increase market share,
promote name recognition, and maximize efficiency.
Pr
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The Company
The present InteliChild.com is a start-up company with four full-time employees. The
company was incorporated early in 1999 as a California C corporation owned by its principal
founders, at 25% ownership each. Late in 1999 (Name Omitted) Capital partners acquired
50% of the company for $500,000. The company has a single office in Bend, Oregon. The
initial website is at www.citruscoolkids.com.
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Our key competitive advantage is the in-house knowledge base we have developed. Our
competitor spends five to 10 times the amount of money we do outsourcing to expensive
companies for services we perform in-house. The TM
same will take place withTMthe
InteliChild.com website. We already have TM
the SQL server and ColdFusion programming
expertise, and we will be adding the Flash integration of these skills.
Products and Services
InteliChild will be offering a steadily increasing mix of three lines of products:
• Toys and Games: carefully selected toys and games that appeal to the target
market, the parents of the target market, and educators.
• Books: there should be a selection of books that appeal specifically to the parents
and educators of the target market, so that these interested adults can go to this site
and order books about their children. In addition, of course there is also a selection of
books to be ordered by and for the kids to read.
• Software: carefully selected software to appeal to the target market and target
parents and educators.
The Internet reinvents itself every three months, or even faster. Therefore, our strategy for
future development is to remain positioned with enough flexibility to adapt new technologies,
and adapt to changes quickly.
The Market
The InteliChild.com market has been expanding exponentially with the advances of
technology in the teaching sectors and the acceptance of technology as a teaching aid. The
critical component to our entrance into the market will be approval and support from the
school communities—including teachers, the PTA, and special education programs.
Our primary target markets include these four areas:
1.
2.
3.
4.
The kids themselves.
Parents.
Educational institutions for children of the upper class.
Self-teaching families.
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While we have plans to expand into international territory, our initial launch will target our
most important market—the American upper class. We know that most of our clients drive
BMW's and have very good taste—they spend money on their children because they can
appreciate the technology that we have created. They also generally have high bandwidth
connections, and are impressed by first-class design.
Financial Considerations
Our start-up costs come to $33,750, which are high because of our commitment to dominate
the Internet market place.
The Break-even Analysis is a good financial indicator. We show break-even with a sales level
of about $265K per month, even assuming a fixed cost of $169 per month, which is high.
Given those assumptions, we reach steady-state break-even in December of this first year.
Pr
o
The sales forecast is based on increasing website traffic and increasing sales per unique user
session. Sales are projected to rise from $569 thousand in 2000 to $6 million in 2001 and
$25.8 million in 2002. The forecast obviously depends on traffic increase. We plan to lose
money for at least three years while we build traffic and develop our position for the longterm future.
Highlights
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$5,000,000
$4,000,000
$3,000,000
Sales
$2,000,000
Gross Margin
$1,000,000
Net Profit
$0
($1,000,000)
($2,000,000)
2000
2001
2002
1.1 Objectives
• Traffic, as measured in unique user sessions: 100,000 unique user sessions in June,
2000; 450,000 in December, 2000; 3.5 million in 2001; and 5 million in 2002.
• Sell-through, as measured in dollar sales per unique visit: a high of $0.58 per unique
visit in December of 2000; increasing to $0.83 in 2001; and $0.92 in 2002.
• Valuation, as measured in ability to bring in additional investment at economically
feasible valuations. We need to attract $750 thousand this year, and an additional $2
million in 2001, with valuation performance that yields attractive internal rate of
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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return (IRR) to investors. The financial section indicates IRR of more than 100% for all
investors, with larger IRR for seed, declining slightly for first round and then second
round.
• Acquisition or Initial public offering (IPO) in 2003, with a valuation of more than $20
million. This assumes of course the market valuations based on sales and earnings,
which are relatively high as this plan is written.
1.2 Mission
InteliChild.com offers bright children an entertaining place to interact with each other, the
Web, educators, and the world in general. It generates traffic first, valuation for investors,
and eventually commerce and profits. It is a healthy place for kids to play, for parents and
schools to buy, and a creative and fair work environment for employees.
1.
2.
3.
We must retain the customers. The website has to be easy to use and quickly
viewable. User satisfaction is an ultimate priority.
The project will succeed if it can capitalize on the traffic that InteliChild.com produces,
and turn the user sessions into dollars through the commerce site.
The sales process must be easy to administer and flexible enough to accommodate
the needs of InteliChild, which is not ready to take on more employees to do so.
The e-commerce project should further establish InteliChild.com presence as a
technology leader, not only returning traffic but actually bringing in new traffic.
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1.3 Keys to Success
2.0 Company Summary
The present InteliChild.com is a start-up company with four full time employees. We are a
high-powered team of creative individuals. The company creates an Internet environment
attractive to bright kids, and is planning to sell toys, books, and software to those kids, their
parents, and schools. Our products will be the best reviewed in our niche.
2.1 Company Ownership
The company was incorporated early in 1999 as a California C corporation owned by its
principal founders, at 25% ownership each. Late in 1999 Name Omitted Capital partners
acquired 50% of the company for $500,000.
2.2 Start-up Summary
Our start-up costs come to $33,750, because of our commitment to dominate the Internet
market place.
Our development costs are high, but because we are now located in Oregon instead of the
Silicon Valley, our human resources costs are not as high as they might be—particularly for
the talented programmers that we need. Marketing expenses are also high, but spending on
the costly development of this site without promoting it appropriately would make it difficult
to gather together the traffic necessary to make this a success.
Our location leverages our partner potential, even though we are paying a premium for space
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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Table: Start-up
Start-up
Requirements
Start-up Assets Needed
Cash Balance on Starting Date
Start-up Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Total Requirements
$494,000
$0
$5,000
$499,000
$0
$499,000
$532,750
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Funding
$1,000
$2,500
$5,000
$15,000
$250
$500
$1,000
$3,500
$5,000
$33,750
Pr
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Start-up Expenses
Legal
Software
Design Work
Programming
Insurance
Rent
Research and Development
Hosting Setup
Other
Total Start-up Expenses
Investment
Seed investor
Founders
Other
Total Investment
$500,000
$32,750
$0
$532,750
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Current Liabilities
$0
$0
$0
$0
Long-term Liabilities
Total Liabilities
$0
$0
Loss at Start-up
Total Capital
Total Capital and Liabilities
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and for talent due to development costs.
($33,750)
$499,000
$499,000
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Start-up
$600,000
$500,000
$400,000
$300,000
$200,000
$0
Expenses
Assets
Investment
Loans
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2.3 Company Locations and Facilities
Pr
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$100,000
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Internet Sample Business Plan
The company has a single office in Bend, Oregon. Its important website and Internet
infrastructure situation is explained in detail in Chapter 5. The initial website is at
www.citruscoolkids.com.
3.0 Products
InteliChild will be offering a steadily increasing mix of three lines of products:
1.
Toys and Games: carefully selected toys and games that appeal to the target market,
the parents of the target market, and educators.
2.
Books: there should be a selection of books that appeal specifically to the parents and
educators of the target market, so that these interested adults can go to this site and
order books about their children. In addition, of course there is also a selection of
books to be ordered by and for the kids to read.
3.
Software: carefully selected software to appeal to the target market and target
parents and educators.
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3.1 Product Description
In the original plan this is a detailed description of the specific toys and games, books, and
software that are included on the website. This level of detail was considered proprietary and
was removed from the plan for purposes of illustration. If you are using this sample plan as
an example, then insert here a detailed list of your own products for your own plan.
3.2 Competitive Comparison
In the original plan this is a detailed description of and analysis of other channels and sources
from which the target market and parents and educators can purchase toys, games, books,
and software. It describes in general some kinds of toy shops, and then specifically some
catalog and web businesses that appeal to this audience.
3.3 Sales Literature
Pr
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This level of detail was considered proprietary and was removed from the plan for purposes
of illustration. If you are using this sample plan as an example, then insert here a detailed
description of your competitors for your plan.
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Our answer to sales literature is the web. Within six months we should also have a printed
catalog that we can send to people to go along with the web purchasing process, because
some buyers will want to refer to a hard-copy catalog.
3.4 Sourcing
In the real plan this section referred in detail to distributors and products they carried. This
detail was considered proprietary and strategic, and was omitted from the sample plan for
purposes of illustration. If you are using this plan as an example, then in this section you
should have detailed discussion of how the products to be sold can be purchased from
manufacturers and distributors.
3.5 Technology
TM
The InteliChild.comTMe-commerce site will be built on a three-tier structure. Driven by SQL
servers andTMan IIS Web
server backed with bandwidth, the site will be coded mostly in
TM
ColdFusion and ASP . We will be taking our registration databases live to be able to email
updates on products and the website to customers. We will offer customers the option to take
themselves out of the list.
The information architecture will be based on four fundamental arenas—the free valuable
information arena, the product detail arena, the final purchasing arena, and the purchase
administration area.
TM
TM
The purchase arena will require a Verisign certificate and
a Cybercash connection. That
TM
will begin immediately because dealing with Cybercash can sometimes be a lengthy
process.
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The administrative arena will be hosted on mirror servers that query to the live databases for
migration into local databases. This server is hidden from Internet traffic and kept under high
security even within the company.
The entire set-up will be somewhat costly. We will need five servers, two for in-house
reasons, and three for Web
hosting reasons.
Two of the Web host servers will be serving
TM
TM
TM
traffic through ColdFusion and ASP in cluster, and the third will be a dedicated SQL
server.
3.6 Future Products
4.0 Market Analysis Summary
Pr
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The Internet reinvents itself every three months, or even faster. Our strategy for future
development is to remain positioned with enough flexibility to adapt new technologies, and
adapt to changes quickly.
The InteliChild.com market has been expanding exponentially with the advances of
technology in the teaching sectors and the acceptance of technology as a teaching aid. The
critical component to our entrance into the market will be approval and support from the
school communities—including teachers, the PTA, and special education programs.
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4.1 Market Segmentation
Our primary target markets include these four areas:
1.
2.
3.
4.
The kids themselves. We include ages 5-9 and ages 10-14 in our market statistics
because these are the breakdowns available at www.census.gov, and we include only
10% of the total in each category.
Parents. We include 10% of the parents, assuming that leads to an average combined
income above $100,000. Most of these people live in suburban areas, but the urban
upper class is also a major component. [Editor note: details for this sample plan are
not necessarily correct.]
Educational institutions for the children of the upper class. This includes day care and
private schools. Penetrating this market is excellent because it generates leads to our
other targets. We include 107,000 schools in the U.S. in our table.
Self-teaching families. There is an excellent group of established customers who teach
their children from home. The site will benefit greatly from the time available from
this target group.
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Market Analysis (Pie)
U.S. Kids 5-9
U.S. Kids 10-14
U.S. Parents
U.S. Schools
Home School Families
Non-U.S. Parents
Pr
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Non-U.S. Schools
Table: Market Analysis
Growth
2%
2%
2%
1%
40%
4%
0%
3.20%
2000
1,994,000
1,961,200
12,000,000
107,000
5,000
24,000,000
225,000
40,292,200
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Market Analysis
Potential Customers
U.S. Kids 5-9
U.S. Kids 10-14
U.S. Parents
U.S. Schools
Home School Families
Non-U.S. Parents
Non-U.S. Schools
Total
2001
2,033,880
2,000,424
12,240,000
108,070
7,000
24,960,000
225,000
41,574,374
2002
2,074,558
2,040,432
12,484,800
109,151
9,800
25,958,400
225,000
42,902,141
2003
2,116,049
2,081,241
12,734,496
110,243
13,720
26,996,736
225,000
44,277,485
2004
2,158,370
2,122,866
12,989,186
111,345
19,208
28,076,605
225,000
45,702,580
CAGR
2.00%
2.00%
2.00%
1.00%
40.00%
4.00%
0.00%
3.20%
4.2 Website Demographics
While we have plans to expand into international territory, our initial launch will target our
most important market—the American upper class. We know that most of our clients drive
BMW's and have very good taste—they spend money on their children because they can
appreciate the technology that we have created. They also generally have high bandwidth
connections, and are impressed by first-class design.
4.2.1 Market Needs
The InteliChild.com website will have to reflect its product line—simultaneously fun, easy to
use and informative. In order to gain recognition for our site efforts, we are going to have to
put together a site that is worthy of attention. The design work should promote the feeling of
superior quality. The InteliChild.com attitude will match the company's inherent value
drive—parents and educators will feel guilty not buying into these products.
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4.2.2 Market Trends
The market for intelligent technological teaching devices is growing exponentially. The key
factors driving this growth are the increase in salaries in the technology sectors, the doubleincome household and the loss of leisure time. Hardworking parents are dedicated to giving
their children every educational opportunity possible. Our target market's behavioral patterns
are changing dramatically as well—research used to happen in many places; now increasingly
it happens on the Internet.
4.2.3 Market Growth
4.3 Industry Analysis
Pr
o
The macro-environment is the real reason for the urgency of the InteliChild.com e-commerce
project. All trends in our market indicate that strong a Web presence will not be a frivolous
extra for the company, but rather, an absolute necessity. As mentioned before, the doubleincome family in the technological sector is doing their research on the Internet. In order to
survive, InteliChild.com must be present as a destination for these search results.
The website industry is exploding. Growth is absurd, amazing. We don't have business
reasons to detail this situation in this plan, our readers are aware of it.
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4.3.1 Industry Participants
This is sample text describing the different companies addressing the same target market.
The real plan included details on which companies sell products (toys, books, or games) into
this market. It includes who owns them, how much market share they get (according to
available information sources), and what we know about their assorted business models.
4.3.2 Distribution Patterns
This is sample text describing the different websites addressing the same target market. The
real plan included details identifying these websites, who owns them, how much traffic they
get (according to available information sources), and their assorted business models.
4.3.3 Competition and Buying Patterns
This is sample text describing factors in competition for website use by bright children ages 814, for sales to their parents and schools. It details information available about the
importance of factors such as pricing, shipment, quality, presentation, etc.
4.3.4 Main Competitors
Our competition is the market leader—and their success is a symbol of our potential market.
We were pleased to see their Web division spin-off to its own company that went public with
a tremendous initial offering. The market is too large for them to cover entirely, and as a
second-best in dollar market share, with better reviews from the critical industry leaders,
InteliChild.com stands in a position to expand our business significantly.
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5.0 Web Plan Summary
The primary InteliChild.com strategy is to build an impressive destination website. The
marketing of the site will be built around the core value that the site will offer. Although our
competition has built a simple store for ordering the product, the InteliChild.com site will be
reviewed by Web award companies as a great destination. We will build our revenue and
market share around this traffic.
5.1 Business Model
Our business model is based on the sales of our products over the website. Because the site
is also intended to increase brand equity and awareness, we are building for high traffic. Our
model requires giving users an excellent free experience and to develop trust to increase sellthrough. We plan to lose money for at least three years while we build traffic and develop our
position for the long-term future.
Pr
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5.2 Website Marketing Strategy
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Our first class design and product quality are critical to our positioning as a dot-com
company—we should be the best reviewed website in our category, and that will become the
key to future sales. In the past, our design work and marketing has not matched our betterfunded competitor. However, the core experience for the children has always been better,
and with a new design team and a round of financing, the InteliChild.com company is ready
to grow with the market. InteliChild.com will distinguish itself from its competitor as a full
learning center, rather than just a store front.
5.3 Development Requirements
Of course the development needs to match the overall business strategy as explained in the
rest of the plan. This has to be an excellent site or we just haven't implemented. That
involves both front-end and back-end strategies, as explained in the following topics.
5.3.1 Front End
Because InteliChild.com's target customers are all affluent, we have the luxury of using the
latest technologies to impress the visitors with excellent design and animation. We plan to
release the site entirely in Shockwave™ format as almost 90% of our visitors will already
have it installed.
We will carry on the colorful and extremely well branded design of our company literature
and logo—the decisions on basic aesthetics will not get in the way. The site will have a
colorful and intelligent design, taking the ad campaign and product art into an interactive
medium on the Web.
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5.3.2 Back End
TM
The InteliChild.com
e-commerce site will be built on a three-tier structure. Driven by SQL
TM
servers andTMan IIS Web
server backed with bandwidth, the site will be coded mostly in
TM
ColdFusion and ASP . We will be taking our registration databases live to be able to email
updates on products and the website to customers. We will offer customers the option to take
themselves out of the list.
The information architecture will be based on four fundamental arenas—the free valuable
information arena, the product detail arena, the final purchasing arena, and the purchase
administration area.
TM
TM
The purchase arena will require a Verisign certificate and
a Cybercash connection. That
TM
will begin immediately because dealing with Cybercash can sometimes be a lengthy
process.
Pr
o
The administrative arena will be hosted on mirror servers that query to the live databases for
migration into local databases. This server is hidden from Internet traffic and kept under high
security even within the company.
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The entire set-up will be somewhat costly. We will need five servers, two for in-house
reasons, and three for Web
hosting reasons.
Two of the Web host servers will be serving
TM
TM
TM
traffic through ColdFusion and ASP in cluster, and the third will be a dedicated SQL
server.
5.4 Traffic Forecast
The traffic forecast is based on increasing sessions, increasing page views per session, and
increasing orders per session. The bottom line called "sell-through" is the overall dollars in
order per user session, an important indicator that should be increasing over time.
6.0 Strategy and Implementation Summary
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only.
6.1 Strategy Pyramids
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only.
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6.2 Value Proposition
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only.
6.3 Competitive Edge
6.4 Marketing Strategy
Pr
o
Our key competitive advantage is the in-house knowledge base we have developed. Our
competitor spends five to 10 times the amount of money we do out-sourcing to expensive
companies for services we perform in-house. The TM
same will take place withTMthe
InteliChild.com website. We already have TM
the SQL server and ColdFusion programming
expertise, and we will be adding the Flash integration of these skills.
Bu
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This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only. This is sample text only.
6.4.1 Positioning Statement
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only. This is sample text only. This is sample text only. This is sample text only. This is
sample text only.
6.4.2 Pricing Strategy
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
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6.4.3 Promotion Strategy
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only. This is sample text only. This is sample text only. This is sample text only.
6.4.4 Commerce Strategy
6.4.5 Marketing Programs
Pr
o
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only.
Bu
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This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only.
6.5 Sales Strategy
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only. This is sample text only. This is sample text only. This is sample text
only. This is sample text only. This is sample text only. This is sample text only. This is
sample text only. This is sample text only. This is sample text only. This is sample text only.
This is sample text only.
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Sales by Year
$5,000,000
$4,500,000
$4,000,000
$3,500,000
$3,000,000
Toys and Games
$2,500,000
Books
$2,000,000
Software
$1,500,000
$1,000,000
$0
2000
2001
2002
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6.5.1 Sales Forecast
Pr
o
$500,000
The sales forecast in the following table and charts is based on increasing website traffic and
increasing sales per unique user session. Sales are projected to rise from $569 thousand in
2000 to $6 million in 2001 and $25.8 million in 2002. The forecast obviously depends on
traffic increase.
Sales Monthly
$300,000
$250,000
$200,000
$150,000
$100,000
Toys and Games
Books
Software
$50,000
$0
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
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2000
17,622
4,618
3,604
25,845
Unit Prices
Toys and Games
Books
Software
2000
$30.00
$20.00
$40.00
Sales
Toys and Games
Books
Software
Total Sales
$528,672
$92,368
$144,148
$765,188
Direct Unit Costs
Toys and Games
Books
Software
2000
$12.00
$8.00
$16.00
Direct Cost of Sales
Toys and Games
Books
Software
Subtotal Direct Cost of Sales
2001
61,250
17,500
17,500
96,250
2002
112,500
50,000
5,000
167,500
2001
$30.00
$20.00
$40.00
2002
$30.00
$20.00
$40.00
$1,837,500
$350,000
$700,000
$2,887,500
$3,375,000
$1,000,000
$200,000
$4,575,000
2001
$12.00
$8.00
$16.00
2002
$12.00
$8.00
$16.00
2001
$735,000
$140,000
$280,000
$1,155,000
2002
$1,350,000
$400,000
$80,000
$1,830,000
Pr
o
Sales Forecast
Unit Sales
Toys and Games
Books
Software
Total Unit Sales
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Table: Sales Forecast
2000
$211,469
$36,947
$57,659
$306,075
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6.5.2 Sales Programs
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. The original was very proprietary, describing the company
strategy in detail. This is sample text only. The original was very proprietary, describing the
company strategy in detail. This is sample text only. The original was very proprietary,
describing the company strategy in detail. This is sample text only. The original was very
proprietary, describing the company strategy in detail.
6.6 Strategic Alliances
This is sample text only. The original was very proprietary, describing the company strategy
in detail. This is sample text only. The original was very proprietary, describing the company
strategy in detail. This is sample text only. The original was very proprietary, describing the
company strategy in detail. This is sample text only. The original was very proprietary,
describing the company strategy in detail. This is sample text only. The original was very
proprietary, describing the company strategy in detail. This is sample text only. The original
was very proprietary, describing the company strategy in detail.
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6.7 Milestones
The milestones graphic illustrates key implementation activities. The most important
milestone to reach will be the design templates. During that time we will be putting together
the back-end phases, and both milestones should be achieved at the same time. After that
point, integration can begin between the back-end and the front-end phases. Our next
milestone will be the beta release, followed by the full launch two weeks later.
Milestones
Design Template
Back-end Phase 1
Pr
o
Integration
Beta Phase 1
Back-end Phase II
Front-end Phase II
Launch
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Redesign
Jan
Feb Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov Dec
Jan
Feb Mar
Apr
Table: Milestones
Milestones
Milestone
Design Template
Back-end Phase 1
Integration
Beta Phase 1
Back-end Phase II
Front-end Phase II
Launch
Redesign
Totals
Start Date
1/1/00
1/1/00
1/1/00
3/1/00
5/1/00
5/1/00
6/1/00
12/1/00
End Date
3/1/00
4/1/00
5/1/00
6/1/00
5/15/00
5/15/00
12/1/00
4/1/01
Budget
$2,500
$10,000
$500
$1,000
$5,000
$2,500
$0
$35,000
$56,500
Manager
Terry
Sonny
Leslie
Leslie
Sonny
Terry
Leslie
Leslie
Department
Front end
Back end
Management
Management
Back end
Front end
Management
Management
7.0 Management Summary
Our producer, Sonny XXXX, will head the InteliChild.com project. This full-time position will
oversee all activities for the project. Sonny interfaces with each partner and staff member.
This places Sonny in the role of administrator and coordinator of development and marketing
activities, but also requires him to implement training and individual development activities
for each partner. We all recognize the challenge Sonny faces as an employee, coach, and
supervisor.
More sample text here, not useful for purposes of example, describing the people involved
and the management structure.
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7.1 Organizational Structure
We need an agile organizational structure that recognizes the need for a smooth flow of ideas
and implementation between sales, marketing, and website development. We can't allow the
team to think as if these were separate functions.
On the surface, however, we have the president dealing with three direct reports:
admin/finance, sales/marketing, and web development. In fact we are not going to manage
with a strict hierarchy, because we need to emphasize the team. Still, particularly as we grow
in size, structure is necessary. We will want to preserve decision-making power, and the
ability to act, rather than trying to do everything by consensus.
Pr
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7.2 Management Team
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Person 1: More sample text here, not useful for purposes of example, describing the people
involved and the management structure. More sample text here, not useful for purposes of
example, describing the people involved and the management structure. More sample text
here, not useful for purposes of example, describing the people involved and the
management structure. More sample text here, not useful for purposes of example,
describing the people involved and the management structure. More sample text here, not
useful for purposes of example, describing the people involved and the management
structure.
Person 2: More sample text here, not useful for purposes of example, describing the people
involved and the management structure. More sample text here, not useful for purposes of
example, describing the people involved and the management structure. More sample text
here, not useful for purposes of example, describing the people involved and the
management structure. More sample text here, not useful for purposes of example,
describing the people involved and the management structure. More sample text here, not
useful for purposes of example, describing the people involved and the management
structure. More sample text here, not useful for purposes of example, describing the people
involved and the management structure.
Person 3: More sample text here, not useful for purposes of example, describing the people
involved and the management structure. More sample text here, not useful for purposes of
example, describing the people involved and the management structure. More sample text
here, not useful for purposes of example, describing the people involved and the
management structure. More sample text here, not useful for purposes of example,
describing the people involved and the management structure. More sample text here, not
useful for purposes of example, describing the people involved and the management
structure. More sample text here, not useful for purposes of example, describing the people
involved and the management structure.
Person 4: More sample text here, not useful for purposes of example, describing the people
involved and the management structure. More sample text here, not useful for purposes of
example, describing the people involved and the management structure. More sample text
here, not useful for purposes of example, describing the people involved and the
management structure. More sample text here, not useful for purposes of example,
describing the people involved and the management structure. More sample text here, not
useful for purposes of example, describing the people involved and the management
structure. More sample text here, not useful for purposes of example, describing the people
involved and the management structure.
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7.3 Management Team Gaps
We agree that the most obvious weakness at this point is the lack of seasoned professional
management with experience. This is what the investors call the "gray haired factor." We will
be looking to add more experience to the team as we build our administrative and financial
capabilities.
7.4 Personnel Plan
The following personnel plan details our plans for the ramp-up. We start with the four key
founders; by the end of 2000 we should have 14 people, and 16 by the end of 2002.
Table: Personnel
Personnel Plan
Production Personnel
People
Average per Person
Subtotal
2001
4
$35,000
$140,000
2002
4
$45,000
$180,000
3
$26,000
$78,000
3
$65,000
$195,000
3
$70,000
$210,000
General and Administrative Personnel
People
Average per Person
Subtotal
3
$37,000
$111,000
3
$42,000
$126,000
3
$50,000
$150,000
Other Personnel
People
Average per Person
Subtotal
5
$57,000
$285,000
6
$65,000
$390,000
6
$65,000
$390,000
Total People
Total Payroll Expenditures
14
$540,500
16
$851,000
16
$930,000
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Sales and Marketing Personnel
People
Average per Person
Subtotal
Pr
o
2000
3
$22,167
$66,500
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8.0 Financial Plan
This is an Internet venture that, of course, depends on the developing financial prospects of
the growing Internet world. To make it work financially, we need to increase valuation on
schedule to bring in substantial additional capital. The following table defines the investment
offering for investors. Specifically:
1.
The exit strategy is acquisition in 2003, valuing the company at more than $20
million.
2.
Equity plan and valuations at time of exit are detailed in the section that follows, "Exit
Strategy." The plan assumes an ending valuation of $20 million based on market
trends, with IRR of more than 100% for all investors.
Pr
o
Profit Yearly
$200,000
$0
($200,000)
($400,000)
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($600,000)
($800,000)
($1,000,000)
($1,200,000)
($1,400,000)
($1,600,000)
2000
2001
2002
8.1 Important Assumptions
The general assumptions are listed in the following table. Obviously these are detailed
financial assumptions, trivial compared to the underlying critical assumptions, which include:
1.
2.
3.
Continued growth of Internet usage. We accept published forecasts that say 4% of the
world's population presently uses the Internet, and that will grow to 11% by 2005.
That's strong growth.
No e-commerce disaster scenarios. We'll have no huge problems with credit card
authorization, shipping, etc.
Continued support of financial markets, which means continued rise in valuations of
Internet companies, even Internet companies losing money. The increase in valuation
is critical to our financial strategy.
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General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Sales on Credit %
Other
Calculated Totals
Payroll Expense
Sales on Credit
New Accounts Payable
Inventory Purchase
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Table: General Assumptions
2000
1
10.00%
10.00%
25.00%
10.00%
0.00%
2001
2
10.00%
10.00%
25.00%
10.00%
0.00%
2002
3
10.00%
10.00%
25.00%
10.00%
0.00%
$540,500
$76,519
$2,265,564
$417,296
$851,000
$288,750
$3,646,007
$1,463,480
$930,000
$457,500
$4,422,027
$2,075,280
8.2 Key Financial Indicators
Pr
o
The following benchmarks chart indicates a very ambitious increase in sales and matching
increases in operating expenses. We expect to improve ratios of inventory, payable days, and
collection days.
One of the more important assumptions is that we can increase sales at a very high rate
without corresponding increase in operating expenses. This is because of the leverage
available in use of Internet technology as our main marketing and sales channel.
Bu
sin
es
sP
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n
Benchmarks
6.0
5.0
4.0
2000
3.0
2001
2002
2.0
1.0
0.0
Sales
Gross
OpEx
AR Est.
Turns Est.
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8.3 Exit Strategy and Financing
Details of the exit strategy are included in two following tables:
1.
2.
The Investment Analysis table details how we expect valuation to proceed over time,
linked in to the planned rounds of financing.
The table included here shows how we plan to distribute equity and shares over time,
and planned ending valuation of $23 million and investment yield for three rounds of
investment.
Equity Shares and Investment Return
Seed
Round 1
Round 2
Amount
($000)
$500K
$750K
$2 million
Shares
Per share
Year
2003 Value
IRR %
1.5 million
750K
800K
$0.33
$1.00
$2.50
1999
2000
2001
$8.4 million
$4.2 million
$4.5 million
157 %
138%
126%
Table: Investment Analysis
Investment Analysis
Start
2000
2001
2002
$532,750
$0
$0
($532,750)
0%
$13,020,565
178%
$750,000
$0
$0
($750,000)
$2,000,000
$0
$0
($2,000,000)
$0
$0
$22,880,000
$22,880,000
20
5
20
5
20
5
$750,000
$0
$0
$3,830,000
$1,915,000
$2,000,000
$0
$0
$14,440,000
$7,220,000
$0
$0
$440,000
$22,880,000
$11,660,000
Bu
sin
es
sP
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Initial Investment
Investment
Dividends
Ending Valuation
Combination as Income Stream
Percent Equity Acquired
Net Present Value (NPV)
Internal Rate of Return (IRR)
Pr
o
Round
Assumptions
Discount Rate
Valuation Earnings Multiple
Valuation Sales Multiple
Investment (calculated)
Dividends
Calculated Earnings-based Valuation
Calculated Sales-based Valuation
Calculated Average Valuation
10.00%
$532,750
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8.4 Break-even Analysis
The break-even analysis is a good financial indicator. We do show break-even with a sales
level of about $265K per month, even assuming a fixed cost of $169 per month, which is
high. Given those assumptions, we reach steady-state break-even in about December of this
first year.
Break-even Analysis
$50,000
$0
($50,000)
($100,000)
($200,000)
0
2000
Pr
o
($150,000)
4000
6000
8000
10000
Monthly break-even point
Bu
sin
es
sP
la
n
Break-even point = where line intersects with 0
Table: Break-even Analysis
Break-even Analysis:
Monthly Units Break-even
Monthly Revenue Break-even
8,971
$265,591
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$29.61
$11.84
$159,355
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8.5 Projected Profit and Loss
Despite the present trend towards investors encouraging losses for website businesses, we
believe that we can turn a profit by the third year. We also intend to reduce losses
significantly in the second year, as shown by the following table. Nevertheless, the
investment in on-line and off-line advertising is substantial, and the traffic justifies the loss.
Gross Margin Yearly
$2,500,000
$2,000,000
$1,000,000
$500,000
$0
2001
2002
Bu
sin
es
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n
2000
Pr
o
$1,500,000
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Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Costs of Goods
Production Payroll
Fulfillment
Bu
sin
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Total Sales and Marketing Expenses
Sales and Marketing %
General and Administrative Expenses:
General and Administrative Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other General and Administrative Expenses
Total General and Administrative Expenses
General and Administrative %
Other Expenses:
Other Payroll
Software & Equipment
Total Other Expenses
Other %
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Include Negative Taxes
2001
$2,887,500
$1,155,000
$140,000
$98,250
-----------$1,393,250
$1,494,250
51.75%
2002
$4,575,000
$1,830,000
$180,000
$169,500
-----------$2,179,500
$2,395,500
52.36%
$78,000
$640,880
$444,400
$42,000
$20,000
$27,000
$90,000
$12,000
-----------$1,354,280
176.99%
$195,000
$673,000
$400,000
$38,000
$18,000
$30,000
$99,000
$13,000
-----------$1,466,000
50.77%
$210,000
$707,000
$360,000
$34,000
$16,000
$33,000
$109,000
$14,000
-----------$1,483,000
32.42%
$111,000
$0
$2,000
$9,000
$2,400
$500
$42,000
$81,075
$0
-----------$247,975
32.41%
$126,000
$0
$3,000
$12,000
$6,000
$3,000
$50,000
$127,650
$0
-----------$327,650
11.35%
$150,000
$0
$4,000
$15,000
$10,000
$10,000
$55,000
$139,500
$0
-----------$383,500
8.38%
Pr
o
Cost of Goods Sold
Gross Margin
Gross Margin %
Operating Expenses:
Sales and Marketing Expenses:
Sales and Marketing Payroll
Online Advertising
Other Advertising
Collaterals
Events
Public Relations
Website Infrastructure
Miscellaneous
2000
$765,188
$306,075
$66,500
$45,845
-----------$418,420
$346,768
45.32%
$285,000
$390,000
$390,000
$25,000
$20,000
$20,000
---------------------------------$310,000
$410,000
$410,000
40.51%
14.20%
8.96%
---------------------------------$1,912,255
$2,203,650
$2,276,500
($1,565,487)
($709,400)
$119,000
$8,333
$40,000
$90,000
$0
$0
$7,250
($1,573,821)
($749,400)
$21,750
-205.68%
-25.95%
0.48%
FALSE
FALSE
TRUE
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8.6 Projected Cash Flow
As is to be expected in this kind of venture, the cash flow is supported mainly by new capital
from new investment in the company. We've scheduled additional rounds of financing to
make that realistic.
Cash
$700,000
$600,000
$500,000
$400,000
$300,000
Net Cash Flow
$200,000
$0
($100,000)
($200,000)
Pr
o
$100,000
Cash Balance
Jul
Aug Sep Oct Nov Dec
Bu
sin
es
sP
la
n
Jan Feb Mar Apr May Jun
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2000
2001
2002
$688,669
$39,856
$728,525
$2,598,750
$187,061
$2,785,811
$4,117,500
$376,645
$4,494,145
$0
$0
$400,000
$0
$0
$0
$0
$750,000
$1,878,525
$0
$0
$0
$0
$0
$0
$0
$2,000,000
$4,785,811
$0
$0
$1,000,000
$0
$0
$0
$0
$0
$5,494,145
2000
2001
2002
Pr
o
Sa
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Table: Cash Flow
Pro Forma Cash Flow
$182,665
$1,946,051
$2,128,716
$296,373
$3,447,113
$3,743,486
$372,503
$4,288,862
$4,661,365
$0
$0
$0
$0
$0
$0
$0
$0
$2,128,716
$0
$0
$0
$0
$0
$0
$0
$0
$3,743,486
$0
$0
$0
$0
$0
$0
$0
$0
$4,661,365
($250,191)
$243,809
$1,042,325
$1,286,134
$832,780
$2,118,914
Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Non Operating (Other) Income
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations
Bu
sin
es
sP
la
n
Additional Cash Spent
Non Operating (Other) Expense
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
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8.7 Projected Balance Sheet
The balance sheet shows our projected financial position during the next three years.
Obviously the key variable during this period, overall valuation, isn't shown.
Table: Balance Sheet
Pro Forma Balance Sheet
Liabilities and Capital
2000
$243,809
$36,663
$111,221
$5,000
$396,693
2001
$1,286,134
$138,352
$419,701
$5,000
$1,849,187
2002
$2,118,914
$219,207
$664,981
$5,000
$3,008,101
$0
$2,000
($2,000)
$394,693
$0
$5,000
($5,000)
$1,844,187
$0
$9,000
($9,000)
$2,999,101
Pr
o
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
2000
$319,513
$400,000
$0
$719,513
2001
$518,407
$400,000
$0
$918,407
2002
$651,572
$1,400,000
$0
$2,051,572
Long-term Liabilities
Total Liabilities
$0
$719,513
$0
$918,407
$0
$2,051,572
$1,282,750
($33,750)
($1,573,821)
($324,821)
$394,693
($324,821)
$3,282,750
($1,607,571)
($749,400)
$925,779
$1,844,187
$925,779
$3,282,750
($2,356,971)
$21,750
$947,529
$2,999,101
$947,529
Bu
sin
es
sP
la
n
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
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8.8 Business Ratios
Our ratios, as projected here, are typical of the kind of growth company we project. The
comparisons are based on SIC 5999, miscellaneous retail, which is obviously not an excellent
match with our business... however, it seems as close as we can come because there is no
data available on true Internet businesses. We do expect our gross margin and sales per
employee to be much higher than standard retail.
Gross Margin Monthly
$160,000
$140,000
$120,000
$80,000
$60,000
$40,000
$20,000
Pr
o
$100,000
Bu
sin
es
sP
la
n
$0
($20,000)
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
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Table: Ratios
Ratio Analysis
2000
0.00%
2001
277.36%
2002
58.44%
Industry Profile
6.30%
Percent of Total Assets
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
9.29%
28.18%
1.27%
100.51%
-0.51%
100.00%
7.50%
22.76%
0.27%
100.27%
-0.27%
100.00%
7.31%
22.17%
0.17%
100.30%
-0.30%
100.00%
16.90%
39.30%
23.90%
80.10%
19.90%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
0.00%
0.00%
0.00%
100.00%
0.00%
0.00%
0.00%
100.00%
0.00%
0.00%
0.00%
100.00%
46.00%
14.00%
60.00%
40.00%
100.00%
45.32%
251.00%
83.75%
-204.59%
100.00%
51.75%
77.70%
23.31%
-24.57%
100.00%
52.36%
51.89%
15.45%
2.60%
100.00%
34.10%
19.80%
2.60%
1.10%
0.55
0.40
182.30%
484.52%
-398.75%
2.01
1.56
49.80%
-80.95%
-40.64%
1.47
1.14
68.41%
3.06%
0.97%
1.77
0.67
60.00%
2.60%
6.50%
2000
$54,656
2001
$180,469
2002
$285,938
Industry
$0
0.00%
2000
-205.68%
0.00%
2001
-25.95%
-80.95%
2002
0.48%
2.30%
2.09
39
12.00
7.09
20
1.94
2.09
111
4.35
7.03
503
1.57
2.09
143
3.37
6.79
579
1.53
n.a
n.a
n.a
n.a
0.00
1.00
0.99
1.00
2.17
1.00
n.a
n.a
($322,821)
-187.86
$930,779
-17.74
$956,529
1.32
n.a
n.a
0.52
182%
0.35
0.00
0.00
0.64
50%
1.41
3.12
0.00
0.66
68%
1.04
4.83
0.00
n.a
n.a
n.a
n.a
n.a
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Bu
sin
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sP
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Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Pr
o
Sales Growth
Business Vitality Profile
Sales per Employee
Survival Rate
Additional Ratios
Net Profit Margin
Return on Equity
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
n.a
n.a
n.a
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Sales Forecast
Unit Sales
Toys and Games
Books
Software
Total Unit Sales
Jan
0
0
0
0
Feb
0
0
0
0
Mar
0
0
0
0
Apr
79
0
0
79
May
213
0
0
213
Unit Prices
Toys and Games
Books
Software
Jan
$30.00
$20.00
$40.00
Feb
$30.00
$20.00
$40.00
Mar
$30.00
$20.00
$40.00
Apr
$30.00
$20.00
$40.00
May
$30.00
$20.00
$40.00
Sales
Toys and Games
Books
Software
Total Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,382
$0
$0
$2,382
Jan
$12.00
$8.00
$16.00
Feb
$12.00
$8.00
$16.00
Mar
$12.00
$8.00
$16.00
Apr
$12.00
$8.00
$16.00
Jan
$0
$0
$0
$0
Feb
$0
$0
$0
$0
Mar
$0
$0
$0
$0
Apr
$953
$0
$0
$953
Oct
3,043
761
761
4,565
Nov
4,314
863
1,079
6,255
Dec
5,753
2,397
1,438
9,588
Jun
$30.00
$20.00
$40.00
Jul
$30.00
$20.00
$40.00
Aug
$30.00
$20.00
$40.00
Sep
$30.00
$20.00
$40.00
Oct
$30.00
$20.00
$40.00
Nov
$30.00
$20.00
$40.00
Dec
$30.00
$20.00
$40.00
$6,384
$0
$0
$6,384
$8,844
$0
$0
$8,844
$18,306
$0
$0
$18,306
$40,740
$5,432
$0
$46,172
$58,716
$6,524
$13,048
$78,288
$91,296
$15,216
$30,432
$136,944
$129,420
$17,256
$43,140
$189,816
$172,584
$47,940
$57,528
$278,052
May
$12.00
$8.00
$16.00
Jun
$12.00
$8.00
$16.00
Jul
$12.00
$8.00
$16.00
Aug
$12.00
$8.00
$16.00
Sep
$12.00
$8.00
$16.00
Oct
$12.00
$8.00
$16.00
Nov
$12.00
$8.00
$16.00
Dec
$12.00
$8.00
$16.00
May
$2,554
$0
$0
$2,554
Jun
$3,538
$0
$0
$3,538
Jul
$7,322
$0
$0
$7,322
Aug
$16,296
$2,173
$0
$18,469
Sep
$23,486
$2,610
$5,219
$31,315
Oct
$36,518
$6,086
$12,173
$54,778
Nov
$51,768
$6,902
$17,256
$75,926
Dec
$69,034
$19,176
$23,011
$111,221
o
Sa
Sep
1,957
326
326
2,610
us
in
es
sP
la
Direct Cost of Sales
Toys and Games
Books
Software
Subtotal Direct Cost of Sales
Aug
1,358
272
0
1,630
Pr
40.00%
40.00%
40.00%
Jul
610
0
0
610
n
Direct Unit Costs
Toys and Games
Books
Software
Jun
295
0
0
295
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e
Appendix Table: Sales Forecast
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Pg 1
Personnel Plan
Production Personnel
People
Average per Person
Subtotal
Jan
0
$2,500
$0
Feb
0
$2,500
$0
Mar
1
$2,500
$2,500
Apr
1
$2,500
$2,500
May
1
$2,500
$2,500
Sales and Marketing Personnel
People
Average per Person
Subtotal
1
$3,000
$3,000
1
$3,000
$3,000
1
$3,000
$3,000
1
$3,000
$3,000
1
$3,000
$3,000
General and Administrative Personnel
People
Average per Person
Subtotal
1
$3,000
$3,000
2
$3,000
$6,000
2
$3,000
$6,000
2
$4,000
$8,000
2
$4,000
$8,000
Other Personnel
People
Average per Person
Subtotal
2
$5,000
$10,000
5
$5,000
$25,000
5
$5,000
$25,000
5
$5,000
$25,000
Total People
Total Payroll Expenditures
4
$16,000
8
$34,000
9
$36,500
9
$38,500
Jul
3
$3,000
$9,000
Aug
3
$3,000
$9,000
Sep
3
$3,000
$9,000
Oct
3
$3,000
$9,000
Nov
3
$3,000
$9,000
Dec
3
$3,000
$9,000
3
$3,000
$9,000
3
$3,000
$9,000
3
$3,000
$9,000
3
$3,000
$9,000
3
$3,000
$9,000
3
$3,000
$9,000
3
$3,000
$9,000
2
$4,000
$8,000
3
$4,000
$12,000
3
$4,000
$12,000
3
$4,000
$12,000
3
$4,000
$12,000
3
$4,000
$12,000
3
$4,000
$12,000
5
$5,000
$25,000
5
$5,000
$25,000
5
$5,000
$25,000
5
$5,000
$25,000
5
$5,000
$25,000
5
$5,000
$25,000
5
$5,000
$25,000
5
$5,000
$25,000
9
$38,500
12
$47,000
14
$55,000
14
$55,000
14
$55,000
14
$55,000
14
$55,000
14
$55,000
us
in
es
sP
la
n
Pr
o
Sa
Jun
2
$2,500
$5,000
pl
e
Appendix Table: Personnel
m
Appendix Internet Sample Business Plan
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 2
e
m
Appendix Table: General Assumptions
General Assumptions
Feb
2
10.00%
10.00%
25.00%
10.00%
0.00%
Mar
3
10.00%
10.00%
25.00%
10.00%
0.00%
Apr
4
10.00%
10.00%
25.00%
10.00%
0.00%
May
5
10.00%
10.00%
25.00%
10.00%
0.00%
Jun
6
10.00%
10.00%
25.00%
10.00%
0.00%
Jul
7
10.00%
10.00%
25.00%
10.00%
0.00%
Aug
8
10.00%
10.00%
25.00%
10.00%
0.00%
Sep
9
10.00%
10.00%
25.00%
10.00%
0.00%
Oct
10
10.00%
10.00%
25.00%
10.00%
0.00%
Nov
11
10.00%
10.00%
25.00%
10.00%
0.00%
Dec
12
10.00%
10.00%
25.00%
10.00%
0.00%
$16,000
$0
$33,205
$0
$34,000
$0
$63,265
$0
$36,500
$0
$82,012
$0
$38,500
$238
$128,488
$1,906
$38,500
$638
$118,334
$4,154
$47,000
$884
$138,953
$4,522
$55,000
$1,831
$191,353
$11,107
$55,000
$4,617
$220,809
$29,615
$55,000
$7,829
$255,632
$44,162
$55,000
$13,694
$304,713
$78,240
$55,000
$18,982
$335,020
$97,075
$55,000
$27,805
$393,781
$146,515
Sa
Jan
1
10.00%
10.00%
25.00%
10.00%
0.00%
us
in
es
sP
la
n
Pr
o
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Sales on Credit %
Other
Calculated Totals
Payroll Expense
Sales on Credit
New Accounts Payable
Inventory Purchase
pl
Appendix Internet Sample Business Plan
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 3
Pro Forma Profit and Loss
Total Sales and Marketing Expenses
Sales and Marketing %
General and Administrative Expenses:
General and Administrative Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other General and Administrative Expenses
15%
Jun
$8,844
$3,538
$5,000
$2,295
-----------$10,833
($1,989)
-22.49%
Jul
$18,306
$7,322
$9,000
$2,610
-----------$18,932
($626)
-3.42%
Aug
$46,172
$18,469
$9,000
$3,630
-----------$31,099
$15,073
32.65%
Sep
$78,288
$31,315
$9,000
$4,610
-----------$44,925
$33,363
42.62%
Oct
$136,944
$54,778
$9,000
$6,565
-----------$70,343
$66,601
48.63%
Nov
$189,816
$75,926
$9,000
$8,255
-----------$93,181
$96,635
50.91%
Dec
$278,052
$111,221
$9,000
$11,588
-----------$131,809
$146,243
52.60%
$3,000
$5,000
$0
$2,000
$0
$0
$3,000
$1,000
-----------$14,000
0.00%
$3,000
$17,900
$0
$0
$0
$0
$3,000
$1,000
-----------$24,900
0.00%
$3,000
$22,000
$11,535
$0
$0
$0
$3,000
$1,000
-----------$40,535
0.00%
$3,000
$26,100
$23,535
$10,000
$10,000
$3,000
$3,000
$1,000
-----------$79,635
3343.20%
$3,000
$29,535
$34,435
$0
$0
$3,000
$3,000
$1,000
-----------$73,970
1158.68%
$9,000
$36,735
$39,835
$0
$0
$3,000
$3,000
$1,000
-----------$92,570
1046.70%
$9,000
$46,335
$44,335
$5,000
$10,000
$3,000
$12,000
$1,000
-----------$130,670
713.81%
$9,000
$63,135
$50,735
$5,000
$0
$3,000
$12,000
$1,000
-----------$143,870
311.60%
$9,000
$81,135
$54,235
$5,000
$0
$3,000
$12,000
$1,000
-----------$165,370
211.23%
$9,000
$95,535
$58,335
$5,000
$0
$3,000
$12,000
$1,000
-----------$183,870
134.27%
$9,000
$105,135
$61,885
$5,000
$0
$3,000
$12,000
$1,000
-----------$197,020
103.80%
$9,000
$112,335
$65,535
$5,000
$0
$3,000
$12,000
$1,000
-----------$207,870
74.76%
$3,000
$0
$0
$750
$200
$500
$2,000
$2,400
$0
-----------$8,850
0.00%
$6,000
$0
$0
$750
$200
$0
$2,000
$5,100
$0
-----------$14,050
0.00%
$6,000
$0
$0
$750
$200
$0
$2,000
$5,475
$0
-----------$14,425
0.00%
$8,000
$0
$0
$750
$200
$0
$2,000
$5,775
$0
-----------$16,725
702.14%
$8,000
$0
$0
$750
$200
$0
$2,000
$5,775
$0
-----------$16,725
261.98%
$8,000
$0
$0
$750
$200
$0
$2,000
$7,050
$0
-----------$18,000
203.53%
$12,000
$0
$0
$750
$200
$0
$5,000
$8,250
$0
-----------$26,200
143.12%
$12,000
$0
$0
$750
$200
$0
$5,000
$8,250
$0
-----------$26,200
56.74%
$12,000
$0
$0
$750
$200
$0
$5,000
$8,250
$0
-----------$26,200
33.47%
$12,000
$0
$0
$750
$200
$0
$5,000
$8,250
$0
-----------$26,200
19.13%
$12,000
$0
$0
$750
$200
$0
$5,000
$8,250
$0
-----------$26,200
13.80%
$12,000
$0
$2,000
$750
$200
$0
$5,000
$8,250
$0
-----------$28,200
10.14%
$10,000
$2,000
-----------$12,000
0.00%
-----------$34,850
($34,850)
$0
$0
($34,850)
0.00%
$25,000
$2,000
-----------$27,000
0.00%
-----------$65,950
($65,950)
$0
$0
($65,950)
0.00%
$25,000
$2,000
-----------$27,000
0.00%
-----------$81,960
($86,460)
$0
$0
($86,460)
0.00%
$25,000
$10,000
-----------$35,000
1469.35%
-----------$131,360
($134,510)
$0
$0
($134,510)
-5646.93%
$25,000
$2,000
-----------$27,000
422.93%
-----------$117,695
($118,578)
$0
$0
($118,578)
-1857.42%
$25,000
$1,000
-----------$26,000
293.98%
-----------$136,570
($138,559)
$0
$0
($138,559)
-1566.70%
$25,000
$1,000
-----------$26,000
142.03%
-----------$182,870
($183,496)
$0
$0
($183,496)
-1002.38%
$25,000
$1,000
-----------$26,000
56.31%
-----------$196,070
($180,997)
$0
$0
($180,997)
-392.01%
$25,000
$1,000
-----------$26,000
33.21%
-----------$217,570
($184,207)
$1,667
$0
($185,874)
-237.42%
$25,000
$1,000
-----------$26,000
18.99%
-----------$236,070
($169,469)
$1,667
$0
($171,135)
-124.97%
$25,000
$1,000
-----------$26,000
13.70%
-----------$249,220
($152,585)
$1,667
$0
($154,252)
-81.26%
$25,000
$1,000
-----------$26,000
9.35%
-----------$262,070
($115,827)
$3,333
$0
($119,160)
-42.86%
o
Sa
May
$6,384
$2,554
$2,500
$2,213
-----------$7,267
($883)
-13.83%
us
in
es
Total Other Expenses
Other %
Total Operating Expenses
Profit Before Interest and Taxes
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
Include Negative Taxes
Apr
$2,382
$953
$2,500
$2,079
-----------$5,532
($3,150)
-132.23%
sP
Total General and Administrative Expenses
General and Administrative %
Other Expenses:
Other Payroll
Software & Equipment
Mar
$0
$0
$2,500
$2,000
-----------$4,500
($4,500)
0.00%
Pr
$0
($0)
($0)
($0)
$0
$0
$0
Feb
$0
$0
$0
$0
-----------$0
$0
0.00%
n
Cost of Goods Sold
Gross Margin
Gross Margin %
Operating Expenses:
Sales and Marketing Expenses:
Sales and Marketing Payroll
Online Advertising
Other Advertising
Collaterals
Events
Public Relations
Website Infrastructure
Miscellaneous
Jan
$0
$0
$0
$0
-----------$0
$0
0.00%
la
Sales
Direct Costs of Goods
Production Payroll
Fulfillment
pl
e
Appendix Table: Profit and Loss
m
Appendix Internet Sample Business Plan
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 4
e
0.00%
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,144
$0
$2,144
$5,746
$127
$5,873
$7,960
$452
$8,411
$16,475
$770
$17,245
$41,555
$1,389
$42,944
$70,459
$3,317
$73,776
$123,250
$6,330
$129,580
$170,834
$10,957
$181,792
$250,247
$16,514
$266,761
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,144
$0
$0
$0
$0
$0
$0
$0
$500,000
$505,873
$0
$0
$0
$0
$0
$0
$0
$0
$8,411
$0
$0
$0
$0
$0
$0
$0
$0
$17,245
$0
$0
$0
$0
$0
$0
$0
$0
$42,944
$0
$0
$200,000
$0
$0
$0
$0
$250,000
$523,776
$0
$0
$0
$0
$0
$0
$0
$0
$129,580
$0
$0
$0
$0
$0
$0
$0
$0
$181,792
$0
$0
$200,000
$0
$0
$0
$0
$0
$466,761
Jan
Feb
Mar
$1,645
$18,894
$20,539
$2,685
$54,217
$56,902
$4,449
$66,669
$71,118
Additional Cash Spent
Non Operating (Other) Expense
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
$0
$0
$0
$0
$0
$0
$0
$0
$20,539
$0
$0
$0
$0
$0
$0
$0
$0
$56,902
$0
$0
$0
$0
$0
$0
$0
$0
$71,118
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$9,357
$85,784
$95,141
$8,229
$128,149
$136,378
$9,434
$128,470
$137,904
$14,234
$149,593
$163,827
$17,507
$192,335
$209,842
$21,376
$221,969
$243,345
$26,829
$257,268
$284,098
$30,197
$305,723
$335,919
$36,726
$336,979
$373,705
$0
$0
$0
$0
$0
$0
$0
$0
$95,141
$0
$0
$0
$0
$0
$0
$0
$0
$136,378
$0
$0
$0
$0
$0
$0
$0
$0
$137,904
$0
$0
$0
$0
$0
$0
$0
$0
$163,827
$0
$0
$0
$0
$0
$0
$0
$0
$209,842
$0
$0
$0
$0
$0
$0
$0
$0
$243,345
$0
$0
$0
$0
$0
$0
$0
$0
$284,098
$0
$0
$0
$0
$0
$0
$0
$0
$335,919
$0
$0
$0
$0
$0
$0
$0
$0
$373,705
($92,997)
$252,445
$369,495
$621,939
($129,493)
$492,447
($146,582)
$345,865
($166,898)
$178,967
$280,431
$459,398
($154,518)
$304,880
($154,128)
$150,752
$93,057
$243,809
la
sP
($20,539)
$473,462
May
($56,902)
$416,560
($71,118)
$345,442
us
in
es
Net Cash Flow
Cash Balance
Apr
n
Expenditures
Expenditures from Operations:
Cash Spending
Payment of Accounts Payable
Subtotal Spent on Operations
Sa
Additional Cash Received
Non Operating (Other) Income
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Feb
o
Cash Received
Cash from Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Jan
Pr
Pro Forma Cash Flow
m
Appendix Table: Cash Flow
pl
Appendix Internet Sample Business Plan
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 5
Pro Forma Balance Sheet
Jan
$473,462
$0
$0
$5,000
$478,462
Feb
$416,560
$0
$0
$5,000
$421,560
Mar
$345,442
$0
$0
$5,000
$350,442
Apr
$252,445
$238
$953
$5,000
$258,636
May
$621,939
$750
$2,554
$5,000
$630,243
$0
$0
$0
$499,000
$0
$0
$0
$478,462
$0
$0
$0
$421,560
$0
$0
$0
$350,442
$0
$0
$0
$258,636
$0
$0
$0
$630,243
Jul
$345,865
$2,243
$7,322
$5,000
$360,431
Aug
$178,967
$5,471
$18,469
$5,000
$207,908
Sep
$459,398
$9,983
$31,315
$5,000
$505,697
Oct
$304,880
$17,348
$54,778
$5,000
$382,005
Nov
$150,752
$25,372
$75,926
$5,000
$257,051
Dec
$243,809
$36,663
$111,221
$5,000
$396,693
$0
$0
$0
$502,167
$0
$0
$0
$360,431
$0
$0
$0
$207,908
$0
$0
$0
$505,697
$0
$0
$0
$382,005
$0
$0
$0
$257,051
$0
$2,000
($2,000)
$394,693
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$0
$0
$0
Jan
$14,312
$0
$0
$14,312
Feb
$23,360
$0
$0
$23,360
Mar
$38,702
$0
$0
$38,702
Apr
$81,406
$0
$0
$81,406
May
$71,590
$0
$0
$71,590
Jun
$82,073
$0
$0
$82,073
Jul
$123,833
$0
$0
$123,833
Aug
$152,307
$0
$0
$152,307
Sep
$185,970
$200,000
$0
$385,970
Oct
$233,414
$200,000
$0
$433,414
Nov
$262,711
$200,000
$0
$462,711
Dec
$319,513
$400,000
$0
$719,513
Long-term Liabilities
Total Liabilities
$0
$0
$0
$14,312
$0
$23,360
$0
$38,702
$0
$81,406
$0
$71,590
$0
$82,073
$0
$123,833
$0
$152,307
$0
$385,970
$0
$433,414
$0
$462,711
$0
$719,513
Paid-in Capital
Retained Earnings
Earnings
$532,750
($33,750)
$0
$532,750
($33,750)
($34,850)
$532,750
($33,750)
($100,800)
$532,750
($33,750)
($187,260)
$532,750
($33,750)
($321,770)
$1,032,750
($33,750)
($440,347)
$1,032,750
($33,750)
($578,906)
$1,032,750
($33,750)
($762,402)
$1,032,750
($33,750)
($943,399)
Total Capital
Total Liabilities and Capital
Net Worth
$499,000
$499,000
$499,000
$464,150
$478,462
$464,150
$398,200
$421,560
$398,200
$311,740
$350,442
$311,740
$177,230
$258,636
$177,230
$558,653
$630,243
$558,653
$420,094
$502,167
$420,094
$236,598
$360,431
$236,598
$55,601
$207,908
$55,601
$1,282,750
$1,282,750
$1,282,750
$1,282,750
($33,750)
($33,750)
($33,750)
($33,750)
($1,129,273) ($1,300,408) ($1,454,660) ($1,573,821)
$119,727
$505,697
$119,727
($51,408)
$382,005
($51,408)
($205,660)
$257,051
($205,660)
($324,821)
$394,693
($324,821)
us
in
es
sP
la
n
Pr
Liabilities and Capital
Jun
$492,447
$1,182
$3,538
$5,000
$502,167
o
Starting Balances
$494,000
$0
$0
$5,000
$499,000
Sa
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
pl
e
Appendix Table: Balance Sheet
m
Appendix Internet Sample Business Plan
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
Pg 6