Insert Your Logo Here
[YOUR COMPANY NAME]
[Name], Co-Owner
[Name], Co-Owner
BUSINESS PLAN 20___
© Copyright 2012 Docstoc Inc. 1
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [Your Company Name] in this business
plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [Your
Company Name].
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in
nature, other than information which is in the public domain through other means and that any disclosure or use of
same by reader may cause serious harm or damage to [Your Company Name].
Upon request, this document is to be immediately returned to [Your Company Name].
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
© Copyright 2012 Docstoc Inc. 2
Table of Contents
1.0 Executive Summary .............................................................................................................................. 1
1.1 Objectives ......................................................................................................................................... 4
1.2 Mission.............................................................................................................................................. 4
1.3 Keys to Success................................................................................................................................. 4
2.0 Company Summary .............................................................................................................................. 4
2.1 Company Ownership ........................................................................................................................ 5
2.2 Start-up Summary ............................................................................................................................. 5
Table: Start-up .................................................................................................................................... 5
3.0 Services ................................................................................................................................................. 6
4.0 Market Analysis Summary ................................................................................................................... 7
Revenue and commercial ventures ......................................................................................................... 8
Media sponsorship .............................................................................................................................. 8
4.1 Market Segmentation ........................................................................................................................ 9
Table: Market Analysis ..................................................................................................................... 10
4.2 Target Market Segment Strategy .................................................................................................... 11
4.3 Service Business Analysis .............................................................................................................. 12
4.3.1 Competition and Buying Patterns ............................................................................................ 14
5.0 Strategy and Implementation Summary.............................................................................................. 14
5.1 SWOT Analysis .............................................................................................................................. 15
5.1.1 Strengths .................................................................................................................................. 15
5.1.2 Weaknesses .............................................................................................................................. 15
5.1.3 Opportunities............................................................................................................................ 15
5.1.4 Threats...................................................................................................................................... 15
5.2 Competitive Edge............................................................................................................................ 15
5.3 Marketing Strategy.......................................................................................................................... 16
5.4 Sales Strategy .................................................................................................................................. 16
5.4.1 Sales Forecast........................................................................................................................... 17
Table: Sales Forecast................................................................................................................ 17
6.1 Personnel Plan................................................................................................................................. 18
Table: Personnel................................................................................................................................ 18
7.0 Financial Plan...................................................................................................................................... 19
7.1 Start-up Funding ............................................................................................................................. 19
Table: Start-up Funding .................................................................................................................... 19
7.2 Important Assumptions ................................................................................................................... 20
7.3 Projected Profit and Loss ................................................................................................................ 20
Table: Profit and Loss ....................................................................................................................... 20
7.4 Projected Cash Flow ....................................................................................................................... 21
Table: Cash Flow .............................................................................................................................. 21
7.6 Projected Balance Sheet .................................................................................................................. 23
Table: Balance Sheet......................................................................................................................... 23
7.7 Business Ratios ............................................................................................................................... 24
Table: Ratios ..................................................................................................................................... 24
Page 1
[Your Company Name]
1.0 Executive Summary
INTRODUCTION
[Your Website Name]is where the people get to determine what's hot and what's not. The music lovers and
consumers take the power back from big business and decide who should be seen. New Talent fuels any
industry.
As an artist, the first step is to embed their music or video and decide which category to enter. Then, fans tell
artists what they think about it. Artists can campaign and propel their way to the No. 1 spot. [Your
Name]’sunique judging system makes sure that each piece is judged fairly by the real audience. No rigging,
no cheating and no celebrity judges are involved. At the end of each month, the top two talents in each
category go head-to-head in the Final Two Contest Page to determine the Grand Prize winner. Fans help
decide who win while discovering Hot New Talent. Winners will win prizes.
[Your Website Name]was started and funded by enthusiasts and private investors who are really passionate
about one thing; bringing true democracy back to entertainment. [Your Website Name]aims to make sure that
artists get a fair shot...and that fans can find emerging artists that they love.
The Company will also set up a wagering system to where viewers can make bets on who they think will win.
They will have the capacity to challenge other viewers, which will aid in end-user social interaction.
[Your Website Name]will attract talent by offering a cash prize to the one selected with the most views and
ratings. For example, the first one to get 100 votes will receive $100. This is mutually beneficial for both the
Company and the talent, as it inspires talent to pass the word along to all of their family, friends and
colleagues which, in turn, drives more traffic to the site.
[Your Website Name]will be a "one-stop-shop" in terms of combining all of the current media social networks
together so that all different mediums of entertainment can be viewed in one place. [Your Website Name]will
be known as showing the "internet's best" of YouTube, Facebook, Vimeo, MySpace and similar business
models their stars.
[Your Website Name]BRANDING/AMBASSADORS
[Your Website Name]Brand Management is another sector of the all-inclusive lifestyle brand.
The ambassadors program was created to place specific attention on professional and brand development of
unique individuals that [Your Website Name]feels has potential for success in intelligent mainstream
entertainment channels. [Your Website Name]Ambassadors will create a partnership with the artist, identify,
create and nurture their brand, produce co-branded apparel and other merchandise (i.e. NIKE/Tiger Woods,
NIKE/Michael Jordan, NIKE/Lance Armstrong). This includes but is not limited to clothing, backpacks,
skateboards, posters and other branded merchandise.
[Your Website Name]SMARTPHONE APP
[Your Website Name] is the online hub serving as a platform for all pertaining to the [Your Company
Name] organization. The six functions of the website will include:
[Your Website Name]Store - Exclusive online retailer for all [Your Website Name]and co-branded
merchandise
Stars of WWW.TV - Online TV Channel featuring original [Your Website Name]
[Your Website Name]Radio - Streaming music player
[Your Website Name]Gallery - Picture/Art gallery
[Name] and [Name], Co-Founders Page 1
[Your Company Name]
Concerts and Shows of [Your Website Name]Talent
The Company will partner with event coordinators in order to hold periodic concerts and shows of music talent
discovered by Stars of WWW. The Company will share revenue of ticket sales and merchandise sales with
the talent. These venues will be well organized and held around the country in major metropolitan areas to
start.
Advertising Revenue
[Your Website Name]will also sell advertising space to major and independent vendors. The Company aims
to target companies that would like to advertise their products or service that would appeal to [Your
Name]’starget audience. The Company plans to not offend viewers by offering products and services that
would not appeal to that target market.
[Name], co-founder and co-creator of [Your Website Name], came to NY from a small North Carolina town
right after high school. Within months of entering Staten Island, NY he had a hip-hop TV show on their local
cable network. The TV show showcased artists such as Shyiem, King Just and UMC’s who went on to
produce some local radio hit records. Using the show as a promotional vehicle, he began promoting some of
the biggest parties Staten Island had ever seen. He featured such hot hip-hop acts at the time to the local
clubs (Tim Dog, X Clan). He then quickly elevated from there to work for the Number 1 show in the Tri-state
Area Video Music Box. This allowed him to make contacts with some of the biggest movers and shakers in
the industry.
[Name], co-founder and co-creator of [Your Website Name], has been in the information technology
profession since 1991. Throughout his career, he has done Software Engineering, Web Development and
Content Management. He is currently working as a Database Analyst and Network Administrator.
Over the last two decades, he has held management positions in large financial institutions such as
Prudential Insurance Company, Dean Witter, Morgan Stanley Smith Barley. His responsibilities included
programming, web design, creating, developing and managing content for the organization’s web presence.
Also, maintaining a consistent look and feel throughout all web properties as well as provide back-end support
for the database’s main content.
[Your Company Name] is a magnet for creative ideas and look forward to bringing the owner's experience
and creativity to a place like TV One.
THE MARKET
Voting is an interesting concept since it may lead to some unpredictable and even undeserving results. It
takes the basic foundation of a talent show and turns the format into a popularity contest instead. Yet, this is
not purely a democratic vote, as most competitions allow the public to vote multiple times for their favorite
contestants. A small but devoted fan base can possibly triumph over the more widely popular candidates. In
essence, the votes indicate the level of passion from the fans, rather than service as an accurate measure of
talent or popularity. As such, this faulty system is sometimes disputed by the voters, especially when it leads
to surprising eliminations.
The voting process also raises another common predicament in televised talent competitions – not everyone
is born with equal talent and not everyone can be the winner. That much is obvious, since winners and losers
are the core components of a competition after all, but what happens to the eliminated contestants after their
weekly stint was cut short? For many, their new-found fame is as fleeting as it was welcoming. If even the
winners struggle to grasp commercial success upon victory, then the losers have even less of a change to
make it big in the industry upon their losses. Losing a talent competition leaves behind a long trail of broken
dreams and lost aspirations, as if the public has told the performers that they are simply not talented enough
to warrant their affection.
[Name] and [Name], Co-Founders Page 2
[Your Company Name]
THE OPPORTUNITY
The Company seeks to establish a competitive edge in its new target market segment by increasing the level
of talent contact with its own target market and exceptional attention to ensure growth that other competitors
seem to oftentimes lack. Additionally, [Your Company Name] and its' founders possess the necessary skills
to produce the high quality media that are needed in this field. The establishment of the previously mentioned
work processes that will ensure greater service will strengthen the contacts that promote word-of-mouth
marketing and networking.
There is currently no widely known online only talent competition portal and forum that is not televised on
mainstream television such as the proposed business model that [Your Company Name] has created.
[Your Company Name] is seeking funding in the amount of $Xto cover start-up costs and the first full year of
operating costs to implement and operate [Your Website Name].
[Name] and [Name], Co-Founders Page 3
[Your Company Name]
1.1 Objectives
The company's objective is to build a quality, creative entertainment environment and media collective that
will command the of the attention predominate channels of popular culture for which it serves.
[Your Company Name]'s goals include:
1. A 10% market share in our first year of this business plan.
2. An additional increase in the market share by a minimum of 10% for each of the first five years.
3. To be a positive influence on today's youth culture and aspiring artists.
Currently, there are no creative entertainment environments and creative media collective with the company's
beliefs and way of approaching business, or the surrounding areas (for a radius of 10 miles). The company
believes that by entering the marketplace first and by establishing quality facilities, it will become, and remain,
a leader in the industry first domestically in the United States and quickly globally.
[Your Company Name]'s fundamental objective is to realize how the Company impacts the culture that they
do business in, knowing that [Your Company Name] will stand the test of time if the worldwide entertainment
industry and residents approve and support the business and operations.
1.2 Mission
[Your Company Name]'s sole purpose is to establish a global media company and lifestyle brand that
provides a platform for youth culture by sponsoring and highlighting young emerging talent while creating a
stimulating competition online and thereby increasing viewers and participants.
1.3 Keys to Success
Keys to success for [Your Company Name] will include:
1. Maintaining a reputable and untarnished reputation in today's online youth culture.
2. Quality care and support of talent, clientele and sponsors.
3. Competitive advertising, merchandising pricing and a sponsored talent roster.
4. Flexible terms with agreements and services.
5. Constant interaction and contact with the youth infrastructure.
2.0 Company Summary
[Your Company Name] is owned by [Name] and [Name], who will also oversee the day-to-day operations of
the Company and its many operating channels.
[Your Company Name] has created the business model [Your Website Name]. [Your Website Name]is where
the people get to determine what’s hot and what’s not. The music lovers and buyers take the power back
from the big businesses and the people decide who should be seen by popular demand.
[Name] and [Name], Co-Founders Page 4
[Your Company Name]
2.1 Company Ownership
The Company, [Your Company Name], is a Delaware State Limited Liability Corporation. It is owned by
[Name] (50%) and [Name] (50%). Some thought has been given to filing the Company as an S Corporation
but a decision has not yet been reached.
2.2 Start-up Summary
[Your Company Name] is seeking funding in the amount of $X in order to hire additional key staff and
independent contractors, to expand the Company's target reach and operations, attain furniture, production
supplies, computer and camera equipment and to launch a multi-faceted marketing and public relations
campaigns for both the Company and the talent that they sponsor in order to get all entities to a higher and
mutually beneficial awareness.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $0
Stationery etc. $0
Insurance $0
Rent $0
Computer $0
Other $0
Total Start-up Expenses $0
Start-up Assets
Cash Required $0
Other Current Assets $0
Long-term Assets $0
Total Assets $0
Total Requirements $0
[Name] and [Name], Co-Founders Page 5
[Your Company Name]
3.0 Services
[Your Website Name]Online Talent Forum Business Model
[Your Website Name]is where the people get to determine what's hot and what's not. The music lovers and
consumers take the power back from big business and decide who should be seen. New Talent fuels any
industry.
As an artist, the first step is to embed their music or video and decide which category to enter. Then, fans tell
artists what they think about it. Artists can campaign and propel their way to the No. 1 spot. [Your
Name]’sunique judging system makes sure that each piece is judged fairly by the real audience. No rigging,
no cheating and no celebrity judges are involved. At the end of each month, the top two talents in each
category go head-to-head in the Final Two Contest Page to determine the Grand Prize winner. Fans help
decide who win while discovering Hot New Talent. Winners will win prizes.
[Your Website Name]was started and funded by enthusiasts and private investors who are really passionate
about one thing; bringing true democracy back to entertainment. [Your Website Name]aims to make sure that
artists get a fair shot...and that fans can find emerging artists that they love.
The Company will also set up a wagering system to where viewers can make bets on who they think will win.
They will have the capacity to challenge other viewers, which will aid in end-user social interaction.
[Your Website Name]will attract talent by offering a cash prize to the one selected with the most views and
ratings. For example, the first one to get 100 votes will receive $100. This is mutually beneficial for both the
Company and the talent, as it inspires talent to pass the word along to all of their family, friends and
colleagues which, in turn, drives more traffic to the site.
[Your Website Name]will be a "one-stop-shop" in terms of combining all of the current media social networks
together so that all different mediums of entertainment can be viewed in one place. [Your Website Name]will
be known as showing the "internet's best" of YouTube, Facebook, Vimeo, MySpace and similar business
models their stars.
[Your Website Name]BRANDING/AMBASSADORS
[Your Website Name]Brand Management are another sector of the all-inclusive lifestyle brand.
The ambassadors program was created to place specific attention on professional and brand development of
unique individuals that [Your Website Name]feels has potential for success in intelligent mainstream
entertainment channels. [Your Website Name]Ambassadors will create a partnership with the artist, identify,
create and nurture their brand, produce co-branded apparel and other merchandise (i.e. NIKE/Tiger Woods,
NIKE/Michael Jordan, NIKE/Lance Armstrong). This includes but is not limited to clothing, backpacks,
skateboards, posters and other branded merchandise.
[Your Website Name]SMARTPHONE APP
[Your Website Name] is the online hub serving as a platform for all pertaining to the [Your Company
Name] organization. The six functions of the website will include:
[Your Website Name]Store - Exclusive online retailer for all [Your Website Name]and co-branded
merchandise
Stars of WWW.TV - Online TV Channel featuring original [Your Website Name]
[Your Website Name]Radio - Streaming music player
[Name] and [Name], Co-Founders Page 6
[Your Company Name]
[Your Website Name]Gallery - Picture/Art gallery
Concerts and Shows of [Your Website Name]Talent
The Company will partner with event coordinators in order to hold periodic concerts and shows of music talent
discovered by Stars of WWW. The Company will share revenue of ticket sales and merchandise sales with
the talent. These venues will be well organized and held around the country in major metropolitan areas to
start.
Advertising Revenue
[Your Website Name]will also sell advertising space to major and independent vendors. The Company aims
to target companies that would like to advertise their products or service that would appeal to [Your
Name]’starget audience. The Company plans to not offend viewers by offering products and services that
would not appeal to that target market.
4.0 Market Analysis Summary
Consumers are increasingly seeking more out of the relationship than just products and services. They no
longer want to just exchange money for products or services, they want to be in touch and have a relationship
with the brand or artist. [Your Company Name] is ready to meet that demand. Not only will they be
providing high quality entertainment globally via online, but will brand it well, further promoting the artist,
entertainment figure or musician relationship with the consumer.
Licensing
In marketing, one of the definitions of merchandising is the practice in which the brand or image from one
product or service is used to sell another. Trademarked brand names, logos, or character images are licensed
to manufacturers of products such as toys or clothing, which then make items in or emblazoned with the
image of the license, hoping they'll sell better than the same item with no such image. For the owners of the
intellectual property in question, merchandising is a very popular source of revenue, due to the low cost of
letting a third party manufacture the merchandise, while the intellectual property owners simply sit back and
collect the merchandising fees.
Social Networking and Cross Marketing
YouTube's popularity has led to the creation of many YouTube Internet celebrities, popular individuals who
have attracted much publicity in their home countries (and sometimes world renown) due to their videos. The
most subscribed YouTube member, as of December 2010, is Nigahiga with over 3 million subscribers. On
July 16, 2010, Justin Bieber's video "Baby" became the most viewed video of all time on YouTube, with over
450,000,000 views. The previous video to hold this title was Lady GaGa's video "Bad Romance". For some
users, fame has led to unexpected results and, in some cases, crossovers into traditional media or
entertainment avenues. Former receptionist Brooke Brodack (Brookers) from Connecticut was signed by
NBC's Carson Daly for an 18-month development contract in June 2006; Brodack was among the first
individuals to transition into mainstream media through YouTube. Another discovery was the uncovered
fictitious blog of lonelygirl15, now known to be the creation of New Zealand actress Jessica Rose and some
film directors. In 2007, a Dutch vocalist and songwriter named Esmée Denters (esmeedenters) was signed to
a recording contract by Billy Mann based on her YouTube performances. Another YouTube singer, 15 year-
old Savannah Outen, was signed to Levosia Entertainment after posting videos of her singing on the site.
Also, singing sensation Justin Bieber (Kidrauhl) was discovered through YouTube and signed a record deal
with Usher. Current market trends prove that branding talent is at the forefront of translating viewership totals
into dollars.
[Name] and [Name], Co-Founders Page 7
[Your Company Name]
Revenue and commercial ventures
The dominance of American Idol in the ratings has made it the most profitable show in U.S. TV for many
years. The show was estimated to generate $900 million for the year 2004 through sales of TV ads, albums,
and merchandise and concert tickets. By season seven, the show was estimated to earn around $900 million
from its ad revenue alone, not including ancillary sponsorship deals and other income. One estimate puts the
total TV revenue for the first eight seasons of American at $6.4 billion. Sponsors that bought fully integrated
packages can expect a variety of promotions of their products on the show, such as product placement,
adverts and product promotion integrated into the show, and various promotional opportunities. Other off-air
promotional partners pay for the rights to feature "Idol" branding on their packaging, products and marketing
programs. American Idol also partnered with Disney in its theme park attraction
The American Idol Experience.
Advertising revenue
American Idol became the most expensive series on broadcast networks for advertisers starting season
four, and by the next season, it had broken the record in advertising rate for a regularly scheduled prime-time
network series, selling over $700,000 for a 30-seconds slot, and reaching up to $1.3 million for the finale. Its
ad prices reached a peak in season seven at $737,000. Estimated revenue more than doubled from
$404 million in season three to $870 million in season six. While that declined from season eight onwards, it
still earned significantly more than its nearest competitor, with advertising revenue topping $800 million
annually.
Media sponsorship
Ford Motor Company and Coca-Cola were two of the first sponsors of American Idol in its first season. The
sponsorship deal cost around $10 million in season one, rising to $35 million by season 7, and between $50
to $60 million in season 10. The third major sponsor AT&T Wireless joined in the second
season. iTunes joined in season seven.
American Idol prominent display of its sponsors' logo and products had been noted since the early seasons.
By season seven, Idol showed 4,151 product placements in its first 38 episodes, according to Nielsen Media
Research. The branded entertainment integration was beneficial for both the show and its advertisers.
Promotion of AT&T text-messaging as a means to vote successfully introduced the technology into the wider
culture, Coca-Cola has seen its equity increased during the show, and Ford used the show to promote the
"think" technology of its cars with a series of adverts featuring the contestants as well as the winner in 2009.
Coca-Cola – Cups bearing logo of Coca-Cola, and occasionally its subsidiary Vitaminwater, are featured
prominently on the judges table. Contestants are shown between songs held in the "Coca-Cola Red Room,"
the show's equivalent of the traditional green room. (The Coca-Cola logo however is obscured during
rebroadcast in the UK which until 2011 banned product placement.)
Ford – Contestants appear in the special Ford videos on the results shows, and winners Kelly Clarkson,
Taylor Hicks, and Kris Allen have also appeared in commercials for Ford. The final two each won a free Ford
Mustang in seasons four, five and six, Ford Escape Hybrid in season seven, Ford Fusion Hybrid in season
eight, and Ford Fiesta in season nine. In the red room, there is a glass table with a Ford wheel as its base.
AT&T – AT&T Mobility is promoted as the service provider for text-voting. AT&T created an ad campaign
that centered on an air-headed teenager going around telling people to vote.
Apple iTunes – Ryan Seacrest announces the availability of contestants' performances exclusively via
iTunes. Videos are regularly shown of contestants learning their songs by rehearsing with iPods.
Previous sponsors include Old Navy and Clairol's Herbal Essences. In seasons two and three,
contestants sometimes donned Old Navy clothing for their performances with celebrity stylist Steven
[195]
Cojocaruassisting with their wardrobe selection, and contestants received Clairol-guided hair makeovers.
In the season seven finale, both David Cook and David Archuleta appeared in "Risky Business"-inspired
commercials for Guitar Hero, a sponsor of the tour that year.
[Name] and [Name], Co-Founders Page 8
[Your Company Name]
Coca-Cola's archrival PepsiCo declined to sponsor American Idol at the show's start. "Missing one of the
biggest marketing opportunities in a generation" contributed to Pepsi losing market share, by 2010 falling to
third place from second in the United States. PepsiCo will sponsor the American version of Cowell's The X
Factor in hopes of not repeating its Idol mistake.
4.1 Market Segmentation
The components of the entertainment market that [Your Company Name] is targeting include:
YouTube Viewers
Singers, Dancers and Performers
Online Retail Consumers*
Corporate and Small Business Advertisers
* E-commerce B2C product sales totaled $146.4 billion in the United States in 2009, representing about 6%
of retail product sales in the country. The $18.3 billion worth of clothes sold online represented about 10% of
the domestic market. Forrester Research estimates that the United States online retail industry will be worth
$279 billion in 2015.
[Name] and [Name], Co-Founders Page 9
[Your Company Name]
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Segment Name 0% 0 0 0 0 0 0.00%
Segment Name 0% 0 0 0 0 0 0.00%
Other 0% 0 0 0 0 0 0.00%
Total 0.00% 0 0 0 0 0 0.00%
[Name] and [Name], Co-Founders Page 10
[Your Company Name]
4.2 Target Market Segment Strategy
Branding Endorsements
For example of branding and image licensing potential and possibilities for [Your Company Name]'s talent
sponsored, Tiger Woods has been called the world's most marketable athlete. Shortly after his 21st birthday
in 1996, he began signing endorsement deals with numerous companies, including General Motors, Titleist,
General Mills, American Express, Accenture, and Nike, Inc. In 2000, he signed a 5-year, $105 million contract
extension with Nike. It was the largest endorsing deal ever signed by an athlete at that time. Woods'
endorsement has been credited in playing a significant role in taking the Nike Golf brand from a "start-up" golf
company earlier in the past decade, to becoming the leading golf apparel company in the world, and a major
player in the equipment and golf ball market. Nike Golf is one of the fastest growing brands in the sport, with
an estimated $600 million in sales. Woods has been described as the "ultimate endorser" for Nike Golf,
frequently seen wearing Nike gear during tournaments, and even in advertisements for other products.
Woods receives a cut from the sales of Nike Golf apparel, footwear, golf equipment, golf balls, and has a
building named after him at Nike’s headquarters campus in Beaverton, Oregon.
Viral Marketing
Viral marketing and viral advertising are buzzwords referring to marketing techniques that use pre-existing
social networks to produce increases in brand awareness or to achieve other marketing objectives (such as
product sales) through self-replicating viral processes, analogous to the spread of viruses or computer
viruses. It can be delivered by word of mouth or enhanced by the network effects of the Internet. Viral
promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brand able
software, images, or text messages.
The goal of marketers interested in creating successful viral marketing programs is to create viral messages
that appeal to individuals with high social networking potential (SNP) and that have a high probability of being
presented and spread by these individuals and their competitors in their communications with others.
The term "viral marketing" has also been used pejoratively to refer to stealth marketing campaigns—the
unscrupulous use of astroturfing online combined with under market advertising in shopping centers to create
the impression of spontaneous word of mouth enthusiasm.
Methods of viral marketing that [Your Company Name] will explore include but are not limited to the use of
YouTube, Facebook, Twitter, MySpace, Vimeo and like major social networking and video sharing sites.
Online Shopping Customers
In recent years, online shopping has become extremely popular; however, it still caters to the middle and
upper class. In order to shop online, one must be able to have access to a computer, a bank account and a
debit card. Shopping has evolved with the growth of technology. According to research found in the Journal of
Electronic Commerce, if one focuses on the demographic characteristics of the in-home shopper, in general,
the higher the level of education, income, and occupation of the head of the household, the more favorable
the perception of non-store shopping., Enrique. (2005) The Impact of Internet User Shopping Patterns and
Demographics on Consumer Mobile Buying Behavior. Journal of Electronic Commerce Research, An
influential factor in consumer attitude towards non-store shopping is exposure to technology, since it has been
demonstrated that increased exposure to technology increases the probability of developing favorable
attitudes towards new shopping channels. Online shopping widened the target audience to men and women
of the middle class. At first, the main users of online shopping were young men with a high level of income
and a university education. This profile is changing. For example, in USA in the early years of Internet there
were very few women users, but by 2001 women were 52.8% of the online population.
[Name] and [Name], Co-Founders Page 11
[Your Company Name]
Online stores are usually available 24 hours a day, and many consumers have Internet access both at work
and at home. Other establishments such as internet cafes and schools provide access as well. A visit to a
conventional retail store requires travel and must take place during business hours.
4.3 Service Business Analysis
Nowadays, most of the talent competitions follow the same general format. They televise the
performances, and then rely heavily on a voting system to determine which singer is eliminated from
the competition each week. In American Idol, the eliminations continue until it culminates to an epic
finale where the winner is crowned. There are some slight variations among the other series, but the
differences are never too drastic. The selling point of The Voice is that it focuses on pure talent, such
as hosting "blind" auditions without seeing the singers beforehand. Likewise, X-Factor has the
gimmick where the judges compete against each other as they mentor the singers individually. In the
end, these shows will produce one winner per series, with the prospect of breakout success and high
record sales in the actual music industry.
These talent shows are not just restricted to the singing genre. Dance
competitions like Dancing with the Stars or So You Think You Can Dance follow the same format and
are also quite popular among viewers. In general, most reality television programs can be described
as a glorified talent show, where only the most talented of the candidates will end up with the prize.
Whether the contestants compete for a modeling contract in America's Next Model or a fashion
editorial in Project Runway, the competitive aspect is an essential component of the reality TV genre.
It is especially an intriguing notion in music talent shows like Idol, since the verdict is often
determined by the number of votes. As such, the winner may not always correspond with the most
talented, as long as they are the most popular in that particular given week.
In the above programs, all of the contestants are evaluated by the expert judging panel after their
performances each week. Some shows let the judges determine the final verdict of the competition,
while others use an interactive voting system to eliminate the least popular contestant. Voting is the
preferred method, as it allows viewers to become engaged with the outcome, and it also adds a more
authentic feel to the procedures. Furthermore, there is a sense of gratification in voting to save
someone from elimination, since your favorite contestant could potentially survive and perform on
the show for another week, thus giving them more exposure on the program. Voting also plays to the
nurturing aspect of talent shows, because every vote to save contributes to the growth, journey, and
career prospects of that particular contestant.
Voting is an interesting concept since it may lead to some unpredictable and even undeserving
results. It takes the basic foundation of a talent show and turns the format into a popularity contest
instead. Yet, this is not purely a democratic vote, as most competitions allow the public to vote
multiple times for their favorite contestants. Thus, a small but devoted fan base can possibly
triumph over the more widely popular candidates. In essence, the votes indicate the level of passion
from the fans, rather than serve as an accurate measure of talent or popularity. As such, this faulty
system is sometimes disputed by the voters, especially when it leads to surprising eliminations.
[Name] and [Name], Co-Founders Page 12
[Your Company Name]
The voting process also raises another common predicament in televised talent competitions - not
everyone is born with equal talent, and not everyone can be the winner. That much is obvious, since
winners and losers are the core components of a competition after all, but what happens to the
eliminated contestants after their weekly stint was cut short? For many, their newfound fame is as
fleeting as it was welcoming. If even the winners struggle to grasp commercial success upon victory,
then the losers have even less of a chance to make it big in the music industry upon their losses.
Losing a talent competition leaves behind a long trail of broken dreams and lost aspirations, as if the
public has told the performers that they are simply not talented enough to warrant their affection.
There are some exceptions of course, such as the Oscar winner and
American Idol alumni Jennifer Hudson, who was eliminated in 7th place during her season. She is an
undeniably talented performer, and rightfully granted an Academy award for her performance
in Dreamgirls, yet the American public failed to acknowledge her talent during her stint on American
Idol. This brings up yet another problem with the mechanism of these talent shows: if the most
talented is not the most successful, then what is the point in winning these competitions anyway?
Therefore, one can argue that victory might not even be the main objective of these televised talent
shows, because winning is not necessarily the equivalent to success. It is more important to prolong
a contestant's stay and their media exposure during the competition, because this increases their
probability of receiving more opportunities. Even so, Hudson had been quoted in noting that Idol
played very little influence to getting her award-winning role on Dreamgirls, such that the past
experience was almost irrelevant to her current success.
"There's a need for a place where fans can go to interact with their favorite entertainers, listen to music,
watch videos, share and discover cool stuff and just connect. MySpace has the potential to be that place …
I'm excited to help revitalize MySpace by using its social media platform to bring artists and fans together in
one community." - Justin Timberlake
MySpace has always been a decent locale for emerging bands and whatnot, and for people to find and
interact with them. Justin Timberlake wouldn’t be breaking new ground by using the internet to find new
talent. American Idol has let contestants audition via MySpace (online auditioner Karen Rodriquex was a
finalist this past season). However, if this talent search comes to fruition, this may be the first high-profile
singing competition that takes place entirely online.
[Name] and [Name], Co-Founders Page 13
[Your Company Name]
4.3.1 Competition and Buying Patterns
There are a few like companies with a similar business model to [Your Company Name]'s [Your Website
Name]listed below:
Nextstar Competition
Talent Idols
Yellobus
NextWebstar
OurStage
In today's market, in order to advance their strategies, more companies are creating a dedicated role to
manage talent-management activities across the enterprise. Currently, about one in three companies (31
percent) has consolidated talent management activities under a single executive, a figure that has grown 9
percent over the past year.
5.0 Strategy and Implementation Summary
[Your Company Name] has an advertising sales-based revenue model similar to sites such
as www.Youtube.com and www.MySpace.com. These companies earn money on each transaction and/or
activity they broker, and are among the few highly profitable sites on the Internet. The partnerships with
entertainers/performers and ads combined automatically generates product sales, such as brands and
merchandise.
In order to determine the best revenue model, the Company will test several payment scenarios. Initially
the brands and sponsors are to be charged a flat rate to be listed on the site. Even with a substantial free-trial
period of two weeks during the Beta-test phase, there is a reluctance to pay in advance for a service largely
unproven to date. To remedy this, the Company will also offer a mixed payment option in which brands and
sponsors could choose between a flat-rate fee structure and a commission-based plan.
In addition, the majority of entertainers and talent being showcased generally will be offered to compensate
[Your Company Name] 15-20% commission on booking and event services, however, this may be
renegotiated on a case by case basis.
[Name] and [Name], Co-Founders Page 14
[Your Company Name]
5.1 SWOT Analysis
The SWOT analysis provides an opportunity to examine the internal strengths and weaknesses [Your
Company Name] must address. It also allows examining the opportunities presented to [Your Company
Name] as well as potential threats.
5.1.1 Strengths
1. Knowledgeable owners. [Your Company Name] has gone to great lengths to find people with a passion
and experience for the overall image and vision of the Company. The owners are both knowledgeable
and eager to please the talent, brands, corporate sponsors, viewers and the consumers.
2. State-of-the art equipment. Part of the [Your Company Name] experience includes access to state-of-
the-art equipment and overall website functionality.
3. Clear vision of the market need. [Your Company Name] knows what it takes to build a creative
and exciting atmosphere and marketing model for all of its current and future talent. The Company knows
the consumers, viewers, the talent and the technology and [Your Website Name]knows how to build the
service that will bring all together.
5.1.2 Weaknesses
1. Access to additional operating capital.
2. Cash flow continues to be unpredictable in the entertainment industry.
3. Challenges of the seasonality of the business.
5.1.3 Opportunities
Growing market with a significant percentage of the target market still not knowing [Your Website
Name]exists.
Strategic alliances offering sources for referrals and joint marketing activities to extend [Your Company
Name]'s reach.
Changes in online marketing and media trends can initiate and generate sales.
Increasing sales opportunities beyond a "100-mile" target area including several smaller
online communities that have produced a faithful following.
Internet potential for selling products to many other target markets.
5.1.4 Threats
The downturn in the economy has impacted internet and storefront sales.
Competition from a similar business model; or an entity with greater financing or product resources could
enter the market.
5.2 Competitive Edge
The Company seeks to establish a competitive edge in its new target market segment by increasing the level
of talent contact with its own target market and exceptional attention to ensure growth that other competitors
seem to oftentimes lack. Additionally, [Your Company Name] and its' founders possess the necessary skills
to produce the high quality media that are needed in this field. The establishment of the previously mentioned
work processes that will ensure greater service will strengthen the contacts that promote word-of-mouth
marketing and networking.
[Name] and [Name], Co-Founders Page 15
[Your Company Name]
In addition, [Your Company Name] will have the fully operational interactive website to house all of the needs
and feed the capabilities of the creative media collective of talent of the organization.
5.3 Marketing Strategy
The first and most important factor is getting people to visit the site. This number of visits to the site is
projected to grow by 20% per month over the next year after initial marketing and PR has been implemented,
and then 10% per month in the second year, and 5% per month in year three. Traffic is essential because it
leads to advertising dollars, merchandise sales and a grand stage online which will eventually lead to
commissions for [Your Company Name] in the future.
[Your Company Name] will be launching a large scale social networking and media campaign using
Facebook, Twitter, MySpace, YouTube, Vimeo,Tumblr, etc. Additionally, [Your Company Name] feels
strongly about grassroots methods of promotion and marketing, including and not limited to:
Guerilla marketing/Events
Promotional hand-outs/Giveaways
Murals and street art
[Your Company Name] will also partner with large corporate sponsors in order to not only receive advertising
revenue from, but to also offer viewers sweepstakes opportunities for buying that sponsor's products and/or
services. For example, if Home Depot or Chili's Restaurant were to be the sponsors, they would each offer
their own sweepstakes to consumers. Therefore, it's a win-win situation for all parties involved.
5.4 Sales Strategy
Once visitors have reached the [Your Website Name] site, [Your Company Name] must convince them
to browse entertainment, browse through the several entertainment channels that will be in place for all
performers including music, purchase merchandise, browse the calendar for upcoming events and
competitions and check out the sponsored talent.
[Your Company Name]'s strategy will be to partner and sponsor talent of all different types (music, sports
figures, fashion, etc.) that the Company can truly connect with, convey and bring to life the talents' vision.
The bulk of [Your Company Name]'s sales will primarily derive from the sales of advertising space and
promotion of brands and products on the http://[Your Website Name] website. In the future, the Company is
interested in selling branded merchandise, such as T-shirts, mugs and other branded items.
[Name] and [Name], Co-Founders Page 16
[Your Company Name]
5.4.1 Sales Forecast
Overall, there is one main variable in the formula that determines the volume of sales that [Your Company
Name] will be able to generate through http://[Your Website Name]. The number of consumers who visit the
website each day will determine this figure. The table below outlines the sales forecast and cost of goods
sold. The forecast is based on reasonable sales projections within this very large market.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Row 1 $0 $0 $0
Row 2 $0 $0 $0
Row 3 $0 $0 $0
Total Sales $0 $0 $0
Direct Cost of Sales Year 1 Year 2 Year 3
Row 1 $0 $0 $0
Row 2 $0 $0 $0
Row 3 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0
[Name] and [Name], Co-Founders Page 17
[Your Company Name]
6.0 Management Summary
[NAME], CO-FOUNDER
Insert Bios Here
6.1 Personnel Plan
The Personnel Plan below reflects the Company's projected need at opening, and carries through the second
year expansions.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Name or Title or Group $0 $0 $0
Name or Title or Group $0 $0 $0
Name or Title or Group $0 $0 $0
Total People 0 0 0
Total Payroll $0 $0 $0
[Name] and [Name], Co-Founders Page 18
[Your Company Name]
7.0 Financial Plan
The following sections describe the financial position of [Your Company Name].
7.1 Start-up Funding
[Your Company Name] start-up costs are detailed above, in the Start-up Table.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $0
Start-up Assets to Fund $0
Total Funding Required $0
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $0
Additional Cash Raised $0
Cash Balance on Starting Date $0
Total Assets $0
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Owner $0
Investor $0
Additional Investment Requirement $0
Total Planned Investment $0
Loss at Start-up (Start-up Expenses) $0
Total Capital $0
Total Capital and Liabilities $0
Total Funding $0
[Name] and [Name], Co-Founders Page 19
[Your Company Name]
7.2 Important Assumptions
[Your Company Name]'s basic financial accounting assumptions are outlined below.
7.3 Projected Profit and Loss
The Profit and Loss projections in the chart and table below present the key increase in sales, profits, and
gross margin.
The Company estimates it will achieve profitability in the first year. Goals will be to increase overall traffic to
the site, increase the percentage of consumers and viewers and nurture the artist's visions and goals to
fruition while at the same time adding the excitement of an online competition.
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $0 $0 $0
Direct Cost of Sales $0 $0 $0
Other Costs of Sales $0 $0 $0
Total Cost of Sales $0 $0 $0
Gross Margin $0 $0 $0
Gross Margin % 0.00% 0.00% 0.00%
Expenses
Payroll $0 $0 $0
Marketing/Promotion $0 $0 $0
Depreciation $0 $0 $0
Rent $0 $0 $0
Utilities $0 $0 $0
Insurance $0 $0 $0
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $0 $0 $0
Profit Before Interest and Taxes $0 $0 $0
EBITDA $0 $0 $0
Interest Expense $0 $0 $0
Taxes Incurred $0 $0 $0
Net Profit $0 $0 $0
Net Profit/Sales 0.00% 0.00% 0.00%
[Name] and [Name], Co-Founders Page 20
[Your Company Name]
7.4 Projected Cash Flow
[Your Company Name] is seeking funding from one or several sources in the amount of $X in order to pay for
the following costs:
Full service production bay computer terminals
Multiple marketing campaigns for the Company and for talent featured
One full year of salaries for required personnel
One full year of outsourced industry experienced independent personnel
Product merchandise
The chart and table below show the projected cash flow for the company.
Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $0 $0 $0
Subtotal Cash from Operations $0 $0 $0
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $0 $0 $0
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $0 $0 $0
Bill Payments $0 $0 $0
Subtotal Spent on Operations $0 $0 $0
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
[Name] and [Name], Co-Founders Page 21
[Your Company Name]
Subtotal Cash Spent $0 $0 $0
Net Cash Flow $0 $0 $0
Cash Balance $0 $0 $0
[Name] and [Name], Co-Founders Page 22
[Your Company Name]
7.6 Projected Balance Sheet
The following Balance Sheet outlines the key assets and liabilities for [Your Company Name].
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $0 $0 $0
Other Current Assets $0 $0 $0
Total Current Assets $0 $0 $0
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $0 $0 $0
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $0 $0 $0
Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0
Paid-in Capital $0 $0 $0
Retained Earnings $0 $0 $0
Earnings $0 $0 $0
Total Capital $0 $0 $0
Total Liabilities and Capital $0 $0 $0
Net Worth $0 $0 $0
[Name] and [Name], Co-Founders Page 23
[Your Company Name]
7.7 Business Ratios
The following table presents important business ratios for the business services industry, as determined by
the NAICS (North American Industry Classification System) 519130, Internet Publishing and Broadcasting,
are shown for comparison.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 29.89% 11.73% 3.26%
Percent of Total Assets
Other Current Assets 17.10% 11.60% 8.77% 52.01%
Total Current Assets 100.41% 100.56% 100.63% 72.25%
Long-term Assets -0.41% -0.56% -0.63% 27.75%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 3.20% 5.05% 4.41% 16.67%
Long-term Liabilities 0.00% 0.00% 0.00% 36.35%
Total Liabilities 3.20% 5.05% 4.41% 53.02%
Net Worth 96.80% 94.95% 95.59% 46.98%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 69.47% 70.62% 67.13% 55.94%
Selling, General & Administrative Expenses 192.29% 88.32% 50.53% 32.19%
Advertising Expenses 19.98% 16.71% 12.36% 1.33%
Profit Before Interest and Taxes 37.98% 39.96% 38.35% 3.25%
Main Ratios
Current 31.37 19.93 22.84 2.51
Quick 31.37 19.93 22.84 2.18
Total Debt to Total Assets 3.20% 5.05% 4.41% 61.32%
Pre-tax Return on Net Worth 46.65% 44.09% 35.52% 13.13%
Pre-tax Return on Assets 45.16% 41.86% 33.96% 5.08%
[Name] and [Name], Co-Founders Page 24
[Your Company Name]
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 26.58% 27.97% 26.85% n.a
Return on Equity 32.66% 30.86% 24.86% n.a
Activity Ratios
Accounts Payable Turnover 21.09 12.17 12.17 n.a
Payment Days 27 21 28 n.a
Total Asset Turnover 1.19 1.05 0.89 n.a
Debt Ratios
Debt to Net Worth 0.03 0.05 0.05 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $1,506,118 $2,181,890 $2,906,101 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.84 0.95 1.13 n.a
Current Debt/Total Assets 3% 5% 4% n.a
Acid Test 31.37 19.93 22.84 n.a
Sales/Net Worth 1.23 1.10 0.93 n.a
Dividend Payout 0.00 0.00 0.00 n.a
[Name] and [Name], Co-Founders Page 25
Appendix
Table: Sales Forecast
Sales Forecast
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales
Row 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Direct Cost of Sales Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Row 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit
and Loss
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Expenses
Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing/Promotio $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
n
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Profit Before $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest and Taxes
EBITDA $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Cash Received
Cash from Operations
Cash Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash from $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Operations
Additional Cash Received
Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenditures Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Expenditures from
Operations
Cash Spending $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bill Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Spent on $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Page 4
Appendix
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Cash Flow $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance
Sheet
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Assets Starting
Balances
Current Assets
Cash $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities and Capital Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Current Liabilities
Accounts Payable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Earnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities and $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Capital
Page 6
Appendix
Net Worth $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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