Business Plan Summary Internet Publishing Ventures, LLC

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Business Plan Summary Internet Publishing Ventures, LLC Powered By Docstoc
					                         Business Plan Summary
                    Internet Publishing Ventures, LLC




Internet Publishing Ventures, LLC ■ 6200 Falls of Neuse Rd. ■ Raleigh, NC, 27609 ■ 1-919-521-2440
                                Business Plan Summary
                           Internet Publishing Ventures, LLC
Thank you for giving us this opportunity to introduce you to Internet Publishing Ventures, LLC,
or simply “IPV” for short. In addition to outlining IPV’s business development plans, this report
also presents our three-year financial projections for the Company, as well as other information
that will assist you in evaluating IPV’s investment return potential.

1. Business Description and Goals
IPV develops high quality, content rich informational websites; websites that offer Internet users
subject-specific information covering a broad range of personal-interest topics (e.g., healthcare,
how-to home repair tips, city-specific travel information, etc.). One of the Company’s websites
for example, AnimalHospitals-USA.com, is a top-ranked animal healthcare information site that
helps pet owners identify medical conditions that may be affecting their pets’ health.

In addition to its AnimalHospitals-USA site, IPV is now completing the development of a travel
information website named WorldTravel-Almanac.com, a site we plan to officially introduce in
mid July. Over the next three-years, we plan to develop nine more information sites, which will
increase IPV’s website holdings to twelve sites by the end of its 3rd operating year.

IPV’s founders are committed to offering Internet users high-quality, content rich-information
websites. By focusing our attention on achieving this mission, we’re confident that we will
develop the Company into a highly successful $50 million business venture within the next five
years.

2. Market Overview
There’s no doubt about it; the Internet has quickly changed the way people around the world now
communicate, socialize, work, gather information and spend their leisure time. Research studies
show that upward to 190 million Americans are now actively using the Internet for a variety of
reasons; ranging from emailing their friends, to visiting social networking sites, to playing online
games, to shopping and to gathering information on an untold number of personal interest topics.

When the Internet first began drawing the general public’s interest back in 1995, it consisted of
only about 18,000 websites. Since then, the Internet has mushroomed into a huge network of
about 67 million websites. By and large, most commercial non-retail website owners depend on
advertising as their primary income source to support their website operations.

Advertising is indeed the Internet’s lifeblood. Prior to the Dot.Com crash, few companies ever
used the Internet to advertise their products and services. In fact that’s one factor that caused so
many website companies to collapse. Since then, however, the Internet’s aggregate income from
advertising has soared from slightly less than $1 billion in 2000 to nearly $26 billion in 2008, a
growth rate which has made the Internet the World’s fastest growing communications medium.
Moreover, as the chart below shows, despite the economy’s current depressed state, Pricewater-
house-Coopers and other top financial consulting firms are projecting that the Internet’s annual
income from advertising will continue its sensational growth over the next four-year projection
period, 2009 thru 2012.
Assuming the projections above prove to be reasonably accurate, than the Internet will not only
hold the distention of being the Communication industry’s fastest growing medium, but it will
also replace television as the industry’s largest medium in terms of its annual income as well as
its active daily users.

3. IPV’s Operating Income Sources
As noted above, most informational website companies like IPV derive their income by selling
advertising space on their sites. IPV, however, derives nearly all of its income from “directory
listing fees,” fees we receive from companies who buy business directory listings in the various
directories the Company offers on its sites (Click to view AnimalHospitals-USA’s directory).
Additionally, IPV derives a small portion of its annual income from affiliate relationships we
have established with other Internet companies, including Google and Amazon.

We’re confident that the Company will meet or exceed the income projections that we have set
forth in the “Income and Expense” section of this business plan summary. Our high confidence
level in our projections is supported by the results of a test market we conducted to measure the
income producing potential of IPV’s AnimalHospitals-USA website. The results of this test
verified the viability of the Company’s business model (i.e., directory listings) and, moreover,
showed that its AnimalHospitals-USA website will generate an estimated $2.0 million annually
in listing fees from U.S. animal hospital owners.

We expect IPV’s aggregate annual income from its various business directories will increase to
nearly $10 million by the end of the Company’s third year (See Section 6). While it’s never easy
to estimate any company’s annual income beyond three years, IPV’s business model, however, is
expandable, so we’re confident that we can achieve our objective of building the Company into a
successful $50 million business venture within five years.

4. Competition: Internet Directories vs. Yellow Page Directories
Several research studies, including the KelseyGroup study we’ve cited below, show that growing
numbers of people today prefer using the Internet rather than the Yellow Pages when they shop
for products and services they’re planning to buy. Although the Internet hasn’t made the Yellow
Pages totally obsolete yet, there’s no doubt that the Internet will eventually cause the demise of
the Yellow Pages much like air transportation caused the railroads to terminate passenger service
during the 1950s and 1960s.
It’s also highly likely that traditional Yellow Page advertisers (e.g., veterinarians, attorneys, real
estate brokers, auto repair shops, etc.) will continue allocating larger shares of their advertising
budgets toward promoting their businesses through the Internet. While this shift from the Yellow
Pages to the Internet is largely being driven by the Internet’s recent emergence as a widely used
communication medium, several other significant factors are also contributing to the Internet’s
rise as the Communication industry’s fastest growing and most dominant advertising medium.

First and foremost among these factors, the costs companies incur to promote their businesses
via the Internet is far less than what phone companies charge their advertisers for a comparable
Yellow Page listing. Veterinarians who list their practices in IPV’s Find-A-Vet directory for
example pay only $84 per year, while phone companies, by comparison, charge veterinarians a
whopping $350 to $900 for similar type business listings in their Yellow Page books.

Another important factor that’s boosting advertiser interest in the Internet is its “measurability”
feature. For the first time since Colonial America’s newspapers introduced advertising back in
the early 1700s, advertisers can now measure the cost effectiveness of their ads. That’s because
website owners provide “activity reports” to their advertisers that not only show the number of
website visitors who have viewed an advertiser’s ad, but also the number of site visitors who
have clicked on a particular advertiser’s ad to learn more about the advertised product or service.
No communication medium, other than the Internet, offers advertisers this capability to instantly
determine the cost-effectiveness of their ads.

5. Marketing Strategy
IPV’s marketing strategy will initially focus on promoting AnimalHospitals-USA’s Find-A-Vet
directory to animal hospital owners. At this point, we plan to promote the Find-A-Vet directory
by using direct-mail (see attached), telemarketing and trade publication advertising. Based on
the results of our Find-A-Vet test market, we anticipate that at least 24,000 animal hospitals will
purchase annual listings in the Company’s Find-A-Vet directory.

6. Income and Expense Projections
As noted earlier, forecasting sales for any new company isn’t easy. IPV is no exception. While
we're confident that the following projections are "reasonably accurate," please keep in mind that
the Company’s actual financial performance during the three-year forecast period will likely vary
somewhat from the Income and Expense Projections set forth below.
                             Three-Year Income & Expense Forecast

                                      Year #One               Year #Two             Year #Three
Sales Income:
Directory Listings                     1,185,000              3,228,100               8,978,000
Affiliate Commissions                     51,000                169,900                 967,000
      Total Sales                      1,236,000              3,398,000               9,945,000

Operating Expenses:
General & Administration                 591,100              1,827,000               5,010,000
Marketing/Promotion                      522,900                891,200               2,466,000
    Total Operating                    1,114,000              2,718,200               7,476,000

Net Income                              122,000                 679,800               2,469,000

7. Loan/Investment Program
IPV’s founders have invested $130,000 to date in developing the Company’s Animal Hospitals-
USA and WorldTravelAlmanac websites. They are now seeking $150,000 through this private
investment offering to cover a portion of IPV’s business development expenses.

These funds will be assumed by IPV as secured one-year loans and also as equity investments,
meaning collateralized interest bearing loans which will also convey an ownership interest in
IPV to its investors. The Company will repay its investors their loans, plus interest at a rate of
12%, on the anniversary date marking the close of its first year. Additionally, IPV’s investors
will receive quarter annual profit payments in amounts equal to their respective percentage of
ownership interest in the Company.

The Company’s Loan/Equity Investors will receive an ownership interest in IPV equaling 0.20%
for each $1,000 unit they invest. A $5,000 investment, for example, will entitle an investor to an
ownership interest in IPV equaling 1%. Investors who purchase investment units equaling
$10,000 or more, however, will receive an increased ownership equity interest in IPV equaling
0.30% per $1,000.

8. Investment Security
The investment loans IPV’s investors provide will be secured through its AnimalHospitals-USA
site, which has an estimated value ranging from approximately $250,000 to possibly as much as
$400,000 (Click to read CNN’s Money article). Accordingly, in the event IPV fails to satisfy its
loan obligations to its investors, than its founders will liquidate the Company and distribute its
proceeds to its investors in amounts equal to their respective ownership interest in the Company.

9. Return-On-Investment Estimates
The Return-On-Investment (ROI) estimates below represent the approximate annual payments
we expect IPV’s investors will receive from their loan/investments during the Company’s first
five-years. Again, since the example is based on the Income and Expense Projections set forth
in Section 6 of this report, the following projections are considered “reasonable estimates.”
                                   Forecasted ROI Estimates

Investment     Year #1         Year #2        Year #3        Year #4        Year #5         Total
  $1,000       $1,120          $1,410         $3,339          $7,125        $14,800        $27,794

 $2,500         $2,800         $3,525          $8,487        $17,812        $37,000        $69,624

 $5,000         $5,600         $7,500        $16,974         $35,624        $74,000      $139,698

$10,000        $11,200        $15,000        $33,948         $71,248        $148,000     $279,396

$25,000        $28,000        $35,250        $84,870        $178,120        $370,000     $696,240

Looking beyond IPV’s five-year forecast period, and assuming the Company’s income increases
to the $50 million annual level at some point during or after its fifth year, it’s probable that IPV’s
investors will then begin receiving annual net profit payments ranging from 10 to 15 times the
amount of their original investments.

9. Investment Risk Factor
Investing in any company poses some degree of risk. While IPV isn’t risk free, its investment
risk factor, however, is considerably lower than the risk factors that most other new companies
pose. That’s largely because we have pledged IPV’s AnimalHospitals-USA site as collateral to
protect the Company’s investors. Moreover, the viability of IPV’s business model has already
been thoroughly tested and verified through the Company’s Find-A-Vet test market. And last,
since the Company’s AnimalHospitals-USA site is ranked as one of the Internet’s top animal
healthcare sites (Click here), IPV has also already established its credibility as an accomplished
website development company.

10. IPV’s Founders: A Brief Career Profile
Founder – Jim Pflaum
After earning his B.S. degree in Aviation Management, Jim worked in the airport management
field where he became one of the Aviation industry’s youngest airport management executives
(Dayton International Airport, Dayton OH).

Jim then entered the business sector and joined Electrolert, Inc., a new-start consumer electronics
company. First as its marketing VP and later as its president and CEO, he and his dedicated staff
increased Electrolert’s annual sales from $700,000 to more than $65 million in only three years.

During his career, Jim has also formed and developed three other new-start business ventures; a
satellite teleconferencing company named Micro-Link Systems, Inc., an IT marketing/service
company called Dimensional Marketing, Inc. and, lastly, Admark Media, Inc, a company which
developed the Internet’s first comparative store-to-store supermarket price-checking service.

After selling his ownership interest in Dimensional Marketing, Inc. and prior to forming Admark
Media, Jim also worked as an independent business turnaround consultant, during which time he
helped stabilize several financially troubled companies.

Co-Founder – Jan Waldeck
Jan earned his B.S. degree in Communications from Escola Superior De Propaganda Marketing,
a highly respected marketing college located in São Paulo, Brazil.
Born and raised in South America, and a self-described "web geek," Jan began his journey in the
field of graphic design and website development when he was just a teenager. While still in high
school, he helped develop one Brazil's most popular relationship matchmaking websites.

Jan's website design and development background includes working for Citibank's e-Business
Solutions, where he also gained practical business management experience in the areas of
marketing research and administrative budgeting. More recently, he was Project Manager for
one of Brazil's most well known interactive advertising agencies, AgênciaClick, and then Web
Manager at Credit Suisse Hedging-Griffo, a large national Brazilian private banking and asset
management company. Prior to his recent move from São Paulo, Brazil to North Carolina, Jan
also worked as a freelance website designer and developer.

In addition to being one of IPV's founders, Jan is the Company's Website Development Director.
His strong background in graphic design and deep understanding of the website development
process, coupled together with his marketing management expertise, will significantly enhance
IPV's success in achieving its business development objectives.

11. A Few Brief Closing Comments
As most entrepreneurs do when they form their new business ventures, we’re funding a portion
of IPV’s business develop expenses by offering our family members and friends an opportunity
to invest in the Company. So in closing we would like to extend you an invitation to join us in
sharing in IPV’s financial success by becoming one of the Company’s founding shareholders.

Although IPV is a small new company, it’s worth noting that nearly all of the world’s self-made
billionaires, including Bill Gates and Warren Buffet, began building their vast fortunes by first
either starting or investing in small new promising companies. And that’s precisely why we have
invited our families and friends to invest in the Company. While it’s not likely IPV will grow to
become a huge multi-billion dollar corporation anytime soon, we’re confident, however, that the
Company will consistently generate unusually high year-after-year profit returns for its investors.

We plan to close IPV’s investment offering July 30th. So if you’re interested in learning more
about the Company’s investment offering, please let us know soon as it’s conveniently possible
and we will email you additional information, including IPV’s investment Term Sheet.

In closing, we would like to pass along some advice that Tom Peters, the author of the acclaimed
book In Search of Excellence, recently gave to a group of investors: “If a window of opportunity
suddenly appears, don’t pull down the shade and walk away; seize it.”

Thank you!

Contact Info: Jim Pflaum
              1-919-521-2440
              jpflaum@bellsouth.net


Note: Scroll down to see AnimalHospital-USA’s Find-A-Vet test market mailer.
                                   (Sample Test Market Mailer)
Dr. Robert T. Madden, DVM                                                         March 14, 2009
6137 Overlook Road
Columbia, SC 28354

Dear Dr. Madden:

It’s evident that veterinary practice owners spend a lot on Yellow Page advertising. Just look at
Columbia’s Yellow Page book. It’s jam-packed with display ads promoting Columbia’s animal
hospitals and clinics.

A recent study by McCann-Erickson, however, shows that the cost effectiveness of Yellow Page
advertising is rapidly declining. As you might suspect, that’s largely because growing numbers
of people today, including pet owners, are now using the Internet rather than the Yellow Pages to
shop for the goods and services they’re planning to buy.

Are the Yellow Pages Dying?
While the Yellow Pages aren’t quite dead yet, their days are definitely numbered. In fact Bill
Gates, Microsoft’s founder, recently predicted that Yellow Page books will become obsolete
within five years. That prediction may or may not come to pass, but marketing consultants are
nonetheless advising their clients to reduce their Yellow Page advertising budgets and to begin
promoting their businesses in more low-cost Internet directories.

And that’s why cost-conscious animal hospital and clinic owners are now listing their practices
in AnimalHospitals USA’s Find-A-Vet directory. First of all, at a cost of only $7 a month, Find-
A-Vet is far more cost effective than Yellow Page advertising. Moreover, with over 1.0 million
visitors, AnimalHospitals-USA has grown to become one of the top-ranked animal healthcare
sites on all of the Internet’s most popular search engines, including Google, Yahoo and MSN.

Find-A-Vet: List Your Practice Today!
Registering your practice for its Find-A-Vet directory listing is simple. Just complete and return
the enclosed Registration Form by March 30th and your practice will be listed in Find-A-Vet for
the 12-month listing period from May 1st, 2009 through April 30th, 2010.

In closing, I would like to encourage you to return the enclosed registration form at your earliest
possible convenience. Again, the Find-A-Vet directory’s registration deadline is March 30th, so
don’t delay; register your practice for its listing today. Thank you!

Sincerely,

Jim Pflaum
Customer Service, VP




 AnimalHospitals-USA.com      6200 Falls of Neuse Road    Raleigh, NC 27609    1-919-521-2440
                                      Registration Form
                                    Find-A-Vet Directory

To register your practice for its Find-A-Vet directory listing, just complete and return this form,
together with the directory’s $84 annual listing fee, in the enclosed self-addressed envelope by
March 30, 2009. This annual fee covers the twelve-month listing period beginning May1, 2009
and ending April 30, 2010.

(Note: To see a sample Find-A-Vet directory listing, go to www.AnimalHospitals-USA.com and
simply click on the “Find-A-Vet” icon located on the site’s left-side subject index.)

Why Find-A-Vet?
■ According to a research study conducted by Novartis, pet owners prefer using Internet search engines
and directories over Yellow Page books by a ratio of nearly 4-to-1.

■ In terms of its comparative cost, at only $7 per month, Find-A-Vet is far less expensive and far more
cost effective than Yellow Page advertising.

■ With over a million annual site visitors, AnimalHospitals-USA’s Find-A-Vet directory is the top-ranked
“veterinarians directory” on Google, Yahoo and MSN, the Internet’s three most popular search engines.

    ---------------------------------------    --Cut-Here---------------------------------------------

                                   Directory Registration Form
                                        (Note: Please Print or Type)

Hospital/Clinic Name___________________________________________________________
Address:_________________________ City:_______________ State:____ Zip: ___________
Phone: _(____)________________ Website:________________________________________
Practice Owner/Manager’s Email Address (optional)__________________________________

 Please check        any of the following animal healthcare services that your hospital/clinic provides:
      Dentistry,      Surgery,    Full Internal Medicine,     On-Site Lab,     Radiology,     Alternative

  Medicine,        Exotics,   Nutritional Counseling,       Canine Behavioral Training,     Other Optional
  (Specify here):_____________________________________________________________________




   AnimalHospitals-USA.com          6200 Falls of Neuse Road       Raleigh, NC 27609      1-919-521-2440