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Sample Business Plan for Purchasing a Health Club

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					Revised 11/15/10




                   BulldogMall.com
                      696 Adam Smith Boulevard
                          Fresno, CA 93xxx
                    559-000-0000 (T)…559-000-0000

                          Prepared By

                        Jim P. Pappas




                           Submitted To:

                     Fresno National Bank
                       2641 Capitalism Avenue
                          Fresno, CA 93xxx



                       TABLE OF CONTENTS


TABLE OF CONTENTS……………………………………………………………………………………………………………2


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EXECUTIVE SUMMARY……………………………………………………………………………………………………………3
BUSINESS DESCRIPTION……………………………………………………………………………………………………4
INDUSTRY ANALYSIS……………………………………………………………………………………………………………5
VISION STATEMENT……………………………………………………………………………………………………………12
VISION TRIGGER…………………………………………………………………………………………………………………12
MISSION STATEMENT…………………………………………………………………………………………………………12
BUSINESS OBJECTIVES……………………………………………………………………………………………………13
BUSINESS OPERATIONS……………………………………………………………………………………………………14
MARKETING………………………………………………………………………………………………………………………………14
 Traffic Generating Product………………………………………………………………………………14
 Revenue Generating Product………………………………………………………………………………15
 Price………………………………………………………………………………………………………………………………………15
 Sales Strategy………………………………………………………………………………………………………………16
 Place………………………………………………………………………………………………………………………………………18
 Promotion……………………………………………………………………………………………………………………………18
COMPETITIVE ANALYSIS…………………………………………………………………………………………………19
LEGAL STRUCTURE………………………………………………………………………………………………………………19
MANAGEMENT EXPERTISE…………………………………………………………………………………………………19
SUPPORT PERSONNEL…………………………………………………………………………………………………………20
FINANCIAL INFORMATION………………………………………………………………………………………………21
 Sources of Cash……………………………………………………………………………………………………………24
 Uses of Cash……………………………………………………………………………………………………………………24
 Explanation for Break-Even Analysis………………………………………………………27
 Explanation for Cash Flow Projections…………………………………………………31
SUMMARY……………………………………………………………………………………………………………………………………33
EXHIBITS AND APPENDICES
 Exhibit 1 – Fresno Demographic Profile…………………………………………………5
 Exhibit 2 – Adoption Curves for Various Media………………………………6
 Exhibit 3 – Relationship Between Levels of Education In
             Household and Online Access………………………………………………7
 Exhibit 4 – Relationship Between Levels of Household
             Income and Online Access………………………………………………………7
 Exhibit 5 – Activities Impacted by Internet Usage……………………8
 Exhibit 6 – Local Internet Online Survey…………………………………………10
 Exhibit 7 – Monthly Cost of Living – Jim Pappas………………………22
 Exhibit 8 – Sources and Applications of Funds……………………………23
 Exhibit 9 – First Year Break-Even Analysis……………………………………26
 Exhibit 10 – First Year Monthly Cash Flow Projection…………29
 Exhibit 11 – Second Year Quarterly Cash Flow Projection…30
 APPENDIX A – Local Internet Online Survey Questionnaire…34

                     EXECUTIVE SUMMARY
      The purpose   of   this business plan   is   to   support a

request for a $10,000, three-year bank loan as part of the



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financing          for      a      start-up                 sole     proprietorship,

BulldogMall.com.           The business            will be         owned    by    Jim    P.

Pappas and will be located in the owner’s residence.                                    The

owner will provide a minimum of $20,000 in initial equity.

      The    business       will       be    a    Web       community      that   serves

California State University, Fresno (CSU Fresno) students

and   alumni.            Based    on        the   financial        and     competitive

analysis presented in this plan, BulldogMall.com will be

successful.        The cash flow indicates break-even, including

an owner’s draw of $12,000, will be attained in the second

year of operations.

      BulldogMall.com            will       become      firmly      established          in

Fresno within three years.                   BulldogMall.com’s user-friendly

environment,       technical       excellence,              competitive      ad   rates,

and   its   slogan,       “BulldogMall.com              –    For   Work,     Play,      And

Shopping” will provide a distinctive competitive edge.

      The     owner,       Jim     P.       Pappas,         has    eight     years       of

professional experience in the broadcast industry and will

receive an undergraduate degree in Business Administration

and Entrepreneurship from the California State Univer sity,

Fresno in May 2001.

                            BUSINESS DESCRIPTION

      BulldogMall.com will be a service business targeted primarily

at Fresno State’s 18,000+ students, but will also be available to


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alumni and the general public.            BulldogMall.com will offer free

services   to draw    traffic   including, but not limited to email

accounts, classified ads (personal and product), an event calendar,

search engines, online games, useful links, chat rooms, software

(freeware and shareware), message boards, and personal Web pages.

BulldogMall.com will offer free services to student and alumni

organizations in the form of Web pages, chat rooms, and message

boards.    All revenue will be earned via banner advertising sales to

area businesses and businesses outside the area that target CSU

Fresno students and alumni.

       BulldogMall.com will be a startup business that capitalizes on

Internet growth.     BulldogMall.com will initially be organized as a

sole proprietorship, but will eventually evolve into a partnership,

corporation, or limited liability company so that key workers and

managers can earn ownership interests.

       BulldogMall.com will be profitable by super-serving the student

market while maintaining tight control over expenses.

       BulldogMall.com anticipates launching in the spring of 2001

with a target launch date of April 1, 2001.             The site will be

operational 24 hours a day, 7 days a week.

       Business will initially be seasonal, but will eventually enjoy

less   seasonality   due   to   the   ability   of   customers   to   access

BulldogMall.com from any location with an Internet connection.




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                                 INDUSTRY ANALYSIS

      Internet usage trends point to a growing market for e-commerce

businesses of all types, from online product purchasing to banner

advertising.       According to a 1999 report by Scarborough Research,

over five major markets have already surpassed the 50 percent level

of Internet penetration among Adults 18 and over; San Francisco is

the leading California market with Internet usage of 56.1 percent,

while the Fresno market (DMA) shows healthy Internet growth potential

with 35.8 percent penetration.                 Exhibit 1 presents a demographic

profile of the Fresno DMA Adult 18+ population; the Fresno DMA is

comprised of a six county area that includes Fresno, Madera, Merced,

Mariposa, Kings, and Tulare counties.

                                        EXHIBIT 1


                       Fresno Demographic Profile
                            Scarborough Research: 2/98 - 1/99
                             Adult 18+ Population: 1,094,610

                           16%        14%
                                                                Adults   18   - 24
                                                                Adults   25   - 34
                     11%
                                              21%               Adults   35   - 44
                                                                Adults   45   - 54
                      17%                                       Adults   55   - 64
                                                                Adults   65   +
                                     21%




Source: Scarborough Research (www.usadata.com/free_fresno.htm)

There are over 391,000 adults already on the Internet in the Fresno

DMA, with ample room for future growth.




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      Another indicator of Internet usage growth is the “rate of

adoption” when compared to other electronic media. A study by Morgan

Stanley Technology Research illustrates this comparison, as presented

in Exhibit 2:

                              EXHIBIT 2




In other words, Internet usage has expanded at double the rate of

cable, nearly three times the rate of broadcast TV, and over seven

times the rate of radio growth.

      Internet users are more educated and come from households with

higher incomes than non-users.    The following Exhibits derived from

1998 data and published by the U.S. Department of Commerce support

this claim.




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The relationship between education and online access is presented in

Exhibit 3, which shows that online access increases with the level of

education in the household.

                              EXHIBIT 3

            Relationship of Education to Online Access




Source: U.S. Department of Commerce (www.digitaldivide.gov)

The relationship between income level and online access is presented

in Exhibit 4, which shows that online access increases with the level

of income in the household.

                              EXHIBIT 4

              Relationship of Income to Online Access




Source: U.S. Department of Commerce (www.digitaldivide.gov)


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      Another survey by Forrester Research (1999), shows the

other      activities   and   media    that   Internet    usage    has

impacted, as presented in Exhibit 5 below.

                               EXHIBIT 5

               Activities Impacted by Internet Usage




Source: Forrester Research (www.iab.com)

      This trend is powerful with college students, according to a

study by Greenfield Online.        Greenfield’s Pulsefinder On-Campus

Market Study (May 12 - June 9, 2000) reported that 59 percent of

college students described themselves as “Internet dependent” or

“cybergeeks”, with 81 percent stating that they have made an online

purchase.

      All of this contribute to the continuing growth in Internet

advertising, which increased from $1.92 billion in 1998 to $4.62

billion in 1999; a growth rate of 141 percent (Internet Advertising

Bureau).    The Internet Advertising Bureau (IAB) also reported that 56

percent of the dollars invested in Internet advertising during 1999



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were for banner ads, with consumer-related advertising representing

30 percent of all Internet advertising.

      There are a variety of web sites, communities, and portals

targeted at college students, alumni, and/or the general public.

However, BulldogMall.com has not found any sites that specifically

target CSU Fresno students and alumni.           BulldogMall.com will learn

from the creativity of other web sites, communities, and portals such

as Yahoo.com, ShopInTheValley.com, U-Swap.com, and CollegeClub.com

while tailoring its service to the specific needs and desires of CSU

Fresno students and alumni.

      According    to   a   1999   survey   by   Scarborough   Research,   an

estimated 95,370 adults in the Fresno market have a 4-year college

degree while 20,585 have completed some post graduate studies and

52,515 have earned a post graduate degree.          National data measuring

online penetration suggests that 48% of households whose inhabitants

have at least received a 4-year degree are Internet users.           In the

Fresno market, this would constitute an online population of over

80,000 adults.     When you combine this market with CSU Fresno’s 18,000

students, BulldogMall.com has a current market potential of nearly

100,000 Internet users in the Fresno market and as Internet usage

continues to grow in the Fresno market, the opportunities for

BulldogMall.com to generate traffic will grow even stronger.




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An online survey shows strong support for a web community targeted at

CSU Fresno students, as presented in Exhibit 6 below.

                                      Exhibit 6


                              Local Internet Online Survey


        Are you a CSU Fresno Student or Alumni?


  Would you check out a FREE Web Community for
          CSU Fresno Students & Alumni?                                                            Yes

    Would you join the Community if the content                                                    No
                  appealed to you?


                                  Are you Male?


                                                  0       5        10   15     20      25     30
                                                              Number Of Respondents




Source:      Local Internet Online Survey

The above survey was comprised of four questions and posted on the

owner’s personal Internet homepage.                   Respondents were solicited via

email and given a link to the survey page (see Appendix A).                            The

owner   of   BulldogMall.com       sent    an         email   to    every    student    and

instructor in his address book and to every member of the “Fresno

State Club” on CollegeClub.com soliciting participation in the survey

and asking every recipient to forward his message to every CSU Fresno

student or alumni in his or her address book.                       The total number of

solicitations received is unknown.                Jim Pappas monitored the survey

page until 30 respondents had participated during a six-week period

in October and November 2000.              The first question was designed to


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classify the respondents as CSU Fresno Students and Alumni or members

of the general public.      The result was that 67% of the respondents

identified themselves as CSU Students or Alumni.    The second question

was designed to measure the popularity of the overall concept of a

free web community targeted at CSU Fresno students and alumni, while

the third question obtained a more subjective answer by asking

whether or not respondents would join the community if the content

“appealed” to them.     The last of the above questions was designed to

qualify the respondents as male or female in order to determine

whether or not the survey was skewed too far in either direction.   In

the end, 60% of the respondents were male and 40% of the respondents

were female.       The results of the above survey indicate that a web

community targeted at CSU Fresno students and alumni should attract

substantial user traffic, which could be converted to membership if

the content appealed to users.

      In summary, the growth of internet usage and advertising

investment nationwide, combined with the opportunities for growth in

the Fresno market and the high degree of willingness to shop online

by college students, present a profitable opportunity for an Internet

site targeted at CSU Fresno students and alumni.        BulldogMall.com

will profit by capitalizing on these national and local trends.




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                           VISION STATEMENT

      In three years, BulldogMall.com will be a fully developed

Internet community serving the entertainment and information needs of

CSU Fresno students and alumni.

                            VISION TRIGGER

      BulldogMall.com     will   use    the      following   vision      trigger:

“BulldogMall.com--for work, play, and shopping”.                The name of the

business, together with references to work, play, and shopping will

paint a visual picture of an online community for CSU Fresno students

and alumni to meet, study, play games, or shop.

                           MISSION STATEMENT

      BulldogMall.com’s    mission     is   to    serve   the    needs   of   two

interrelated groups of customers: online users and advertisers.

      To our online users, BulldogMall.com, and the employees and

management of BulldogMall.com, make the following commitments:

           BulldogMall.com will provide you with an online community

             where you and your fellow students or alumni can meet,

             study, play games, or shop.

           BulldogMall.com will ascertain your needs by asking you

             what you want via direct online and on-campus surveys.

           BulldogMall.com will provide a site that is fun, without

             being crude, and informative, without boring clutter.




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      To our advertisers, BulldogMall.com, and the employees and

management of BulldogMall.com, make the following commitments:

           BulldogMall.com will not publish your ad without your

             prior approval via a signed printed proof or electronic

             proof delivered by facsimile or email.

           BulldogMall.com will contact you within three weeks after

             the start of an ad campaign to ascertain the progress of

             the campaign and make corrections, if needed.

           BulldogMall.com will provide you with creative design,

             copy, and promotional ideas to help stimulate results and

             increase your sales.

      BulldogMall.com also promises, to advertisers and online users,

to be a “good corporate citizen” of the Fresno community in the way

that BulldogMall.com plans, promotes, and operates the business.

                           BUSINESS OBJECTIVES

      BulldogMall.com will achieve the following objectives by the

end of its third year of operations:

          1. Annual gross revenue of $26,800 in its first year of

             operations.

          2. Cash break-even during its second year of operations.

          3. Owner draw of $12,000 by the end of its second

             year of operations.

          4. Working   Capital      of    $23,000   by   the   end   of   its

             second year of operations.


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                         BUSINESS OPERATIONS

      The    operation     of   BulldogMall.com     will    be   described

using    the   main   functions     of   the   business:         marketing,

competitive        analysis,       legal       structure,        management

expertise, support personnel, and financial information.

                                MARKETING

Traffic Generating Product

      BulldogMall.com will feature the following free products to

generate online traffic:

          o Personal Email Accounts

          o Classified Advertising (Personal & Product)

          o A CSU Fresno Event Calendar

          o Popular Internet Search Engines

          o Online Games

          o Academic Reference Links

          o Entertainment Links

          o Downloadable Software Links

          o General Chat Rooms & Message Boards

          o Chat Rooms & Message Boards By Major

          o Web Pages For Students, Faculty, & Alumni

          o Student & Alumni Organization Web Pages

          o Campus News Headlines

          o Local News Headlines




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Revenue Generating Product

      BulldogMall.com will generate all of its revenue through the

sale of banner advertising to local area businesses and businesses

outside the area that target CSU Fresno students and alumni.          Web

“storefronts” will be offered to advertisers who commit to contracts

of at least $60 per week for a minimum of 26 weeks.         There are two

different approaches BulldogMall.com will employ to sell banner

advertising:

          1. Advertising Packages:        These will be sold primarily to

             local advertisers.     The pricing and banner ad frequency

             for these packages will be established based on weekly

             traffic statistics.

          2. Specific Banner Ad Campaigns: These will be sold on a CPM

             (cost per thousand impressions) and/or CPC (cost per

             click) basis to local, regional, and national advertisers.

      The owner will manage all advertising sales and will

be BulldogMall.com’s sole salesperson until BulldogMall.com

reaches      cash   break-even       during     its   second   year   of

operations.

Price

      According to the AdKnowledge Online Advertising Report

for the second quarter of 2000, the average rate card price

for Internet advertising           has    a CPM of $30.52.       Another

study of banner ad pricing in the second quarter of 2000 by


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the   AdRelevance         division       of    Media       Metrix    reported      CPMs

ranging from a low of $19.70 to a high of $42.50.                             Pr icing

for   CPC    advertising          is    more    volatile,        according     to    an

article     by     Jim    Meskauskas,         Media       Manager   at    Mediasmith,

Incorporated, an interactive media agency located in the

San Francisco area.              In the article, Mr. Meskauskas writes

that, on sites that offer both CPC and CPM buys, “CPCs

usually run between $.25 and $.50.                         Though they can be as

low as $.10 (for higher cash outlays) or as much as $1 (for

high-demand properties like tech sites).”                           BulldogMall.com

will aim for an average CPM of $30.00 and an ave rage CPC

rate $.50 for all banner advertising.

Sales Strategy

      BulldogMall.com            will    begin        a    direct   marketing       and

advertising campaign during the Spring 2001 semester on the

campus of CSU Fresno.                The primary focus of the marketing

effort will         be    to    secure    charter         membership     in the     web

community by 50% of the 150 student clubs and organizations

plus 10% of the non-club or organization members in the

general student population (18,000 students) on campus.

      According          to    the     University         Student    Union    at    CSU

Fresno,     a      safe       minimum    estimate          of   average    club     and

organization membership would be 20 students per club.                              The

combination of 20 students from each of the successfully


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secured       75    clubs        and    organizations         together    with   1,500

students from the general student population would number

3,000 members for BulldogMall.com upon or shortly after the

launch of BulldogMall.com on April 1, 2001.                              The features

and    services       offered          to   members     of    BulldogMall.com    (see

Traffic Generating Product) should generate minimum daily

traffic    of       at least 10% of the total membership,                        which

would result in approximately 300 page views per day and

nearly 9,000 page views per month, assuming just one page

view per day per member and not counting traffic that will

be     generated           by     BulldogMall.com’s            ongoing      marketing

campaign.

       BulldogMall.com’s financial projections in the years

2001    and    2002        are    based     on     average    monthly     advertising

contracts in the amounts of $200 and $300, respectively.

In order to bill an advertiser for $200 per month based on

a CPM rate of $30, BulldogMall.com will have to generate

approximately 7,000 page views for the advertiser’s banner

ad during a given calendar month.                        Based on a CPC rate of

$.50, BulldogMall.com will have to generate 400 “click -thru

responses” (CTRs) for a given advertiser during a calendar

month     in       order    to     justify         a   $200   monthly     advertising

contract.




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      The      owner     is       confident,     based      on    his    experience

selling broadcast radio advertising in the Fresno market

during the years 1992 and 1993, that local advertisers are

highly    receptive          to    making    advertising         investments        that

range between $200 and $300 per month for three to twelve

month periods.          The owner will make an average of 20 new

business calls per week and close an average of two new

advertising contracts per week, while maintaining a 3-month

retention       rate    of    at    least     50%     of   all    advertisers        who

invest in BulldogMall.com.

Place

      BulldogMall.com’s business office will be located at

the     home    of     owner,       Jim     Pappas.        Operations        will     be

outsourced       to    Internet      Marketing Associates,              an   Internet

Service        Provider       located       on   Shaw      Avenue       in    Fresno,

California.

Promotion

      BulldogMall.com             will be promoted with             the following

marketing methods:

          1. A full-page back cover ad in The Collegian.

          2. Posters and flyers on the CSU Fresno campus and
               dormitory bulletin boards.

          3. Mailers to apartment complexes that have high
               student populations.


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          4. Participation in all campus events that allow
             business booth promotions.

          5. Direct marketing to student and alumni clubs,
             fraternities, sororities, and associations.

          6. Client    sponsored     promotional   contests       offered

             exclusively to BulldogMall.com users.

                       COMPETITIVE ANALYSIS

      BulldogMall.com does not have any direct competition,

although there are a variety of web sites, communities, and

portals that compete for the time and attention of everyone

who uses the Internet, including CSU Fresno students and

alumni.     Additionally, there are sites that offer each and

every     service     that    BulldogMall.com   will   offer.        The

difference is that BulldogMall.com will offer all of these

services to CSU Fresno students and alumni on one site.

                             LEGAL STRUCTURE

      BulldogMall.com         will    be   operated    as     a    sole-

proprietorship owned by Jim Pappas.

                       MANAGEMENT EXPERTISE

      The owner, Jim Pappas, has a total of eight (8) years

experience in radio advertising sales, including two years

in sales management.          The owner has been a key person in

the purchase and sale of radio broadcast properties, the



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creation of two new radio formats, capital and operational

budget planning/oversight, radio format research, and the

recruitment of middle management personnel.                              The owner will

receive        an     undergraduate          business           degree       in      Business

Administration            with    the Entrepreneurship                 option       from    the

Sid     Craig         School      Of       Business            at     California         State

University, Fresno, in May 2001.

                                 SUPPORT PERSONNEL

       Business           operations       will     be    outsourced          to     Internet

Marketing           Associates,        a    Fresno-based              Internet        service

provider.            Internet       Marketing            Associates          will     provide

hosting, set-up, design, and maintenance of the                                      site    as

well    as     advertising         production         and       statistical          records.

The     outsourcing           agreement           between           Internet        Marketing

Associates and BulldogMall.com will be for an initial term

of     three        (3)    years.           Under        the        agreement,       Internet

Marketing Associates will receive 30% of net revenue (gross

sales    minus        advertising          agency    commission)          in       the   first

year, 35% in the second year, and 40% in the third year,

paid out as collected by BulldogMall.com.                               Jim Pappas, the

owner     of        BulldogMall.com,           will        handle       all       marketing,

accounting,          and     finance        functions           and    act     as     General

Manager for the business.




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                   FINANCIAL INFORMATION

Financial Objectives

      The following objectives are for the first two years

of BulldogMall.com:

   1. Gross Revenue of $26,800 by the end of Year 1.
   2. Break-even cash flow during operations in Year 2.
   3. Owner draw of $12,000 by the end of Year 2.
   4. Working Capital of $23,000 by the end of Year 2.

Monthly Living Expenses For Jim Pappas

      Exhibit 7, Monthly Living Expenses – Jim Pappas, shows

the amount required by the owner to pay for living expenses

and compute the draw.

Two-Year Cash Flow Projection

      Cash flow has been projected for a two-year period.

All debt service and owner’s withdrawals have been included

in the projection.      Break-even sales are estimated to be

$38,730 in year one.




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                               EXHIBIT 7

                   Monthly Cost of Living – Jim Pappas

Regular Monthly
 Rent or house payments (including taxes)                841
 Car payments (including insurance)                      570
 Loan Payments                                           200
 Health, Life, and other insurance premiums              120
 Miscellaneous                                           100
 Total                                                         1831
Household Expense
 Telephone                                               155
 Utilities                                               230
 Alarm System                                             30
 Pest Control                                             30
 Miscellaneous                                           100
 Total                                                          545
Personal Expense
 Clothing, cleaning, laundry, shoe repair                200
 Medical and dental                                      100
 Internet                                                 40
 Automobile expenses                                     603
 Spending allowance                                      150
 Gifts                                                   100
 Total                                                         1193
Food Expenses
 Food at home                                            600
 Food away                                               120
 Total                                                          720
Tax Expenses
 Federal & State                                         350
 Personal Property                                       150
 Total                                                          500
Total personal monthly cost of living expenses                        4789
Subtract monthly income from sources other than the business          5000
Grand total - the minimum monthly draw needed from the business       -211




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                              EXHIBIT 8
                   Sources and Applications of Funds

Sources of Cash

1.    Personal Funds                               20,000
2.    Loan Proceeds                                10,000
3.    Cash Proceeds from Business (Net)            25,996

         Total Sources                                      55,996

Uses of Cash

4.     Loan Payments (Principal and Interest) 3,872
5.     Cost of Goods Sold                      7,799
6.     Telephone                               1,288
7.     Business License Fee                       10
8.     Office Supplies                         2,400
9.     Legal and Accounting                    1,575
10.    Advertising and Promotion              11,800
11.    Miscellaneous Expenses                  1,800
12.    Computer Software                         229
13.    Mailing Address                           120
14.    Net Working Capital                    21,903
15.    Auto Fuel and Repairs                   3,200

         Total Uses                                         55,996




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                        ASSUMPTIONS

Sources of Cash

   1. Personal Funds.   The owner will invest $20,000 into
      the business.

   2. Loan Proceeds.     The owner will borrow $10,000 from
      Fresno National Bank for a three-year term amortized
      at a 10% annual interest rate.

   3. Cash Receipts From Business. $25,996 in cash receipts
      net of advertising agency commission is estimated.
      This projection involves selling and maintaining 134
      advertising contracts with an average contract value
      of $200 per contract per month between April 1, 2001
      and December 31, 2001.

Uses of Cash

   4. Loan Payments (Principal and Interest).   Represents
      payment of $322.67 per month for a $10,000 loan
      amortized over 3 years at a 10% annual interest rate
      from Fresno National Bank.

   5. Cost Of Goods Sold.     Reflects 30% of $25,996 in net
      revenue    as   compensation   to    Internet   Marketing
      Associates    for  the   outsourcing    of  hosting   and
      operations.

   6. Telephone.   This total includes installation charges
      of $33.01 for each of the two new phone lines, a
      monthly charge of $10.69 for each line, and a mont hly
      allowance of $100 for long distance calls based on
      current Pacific Bell pricing.

   7. Business License Fee.    The business license fee will
      be $10 per year (License and Permits Office, Fresno).

   8. Office Supplies.     This total includes all office-
      related expenses including copying and paper supplies.
      The owner will perform office duties.        Total is
      estimated at $2,400 annually based on the owner’s
      previous experience.

   9. Legal And Accounting.    Gary L. Higgins, CPA will
      provide training in the use of Quick Books software


                              24
Revised 11/15/10



      for $75 and tax preparation services for $300.      An
      additional   $1,200   is  allocated   for   Legal  and
      Accounting consultation as needed, including $35 for a
      fictitious business name.

   10.    Advertising And Promotion.       $11,800 will be
     allocated to the advertising and promotion campaigns
     discussed in the Marketing section above. $8,500 will
     be invested in a full-page back cover ad in The
     Collegian (CSU Fresno’s newspaper) and $3,300 will be
     used for flyers and on-campus marketing.

   11.    Miscellaneous   Expenses.     $1,800  has   been
     estimated for miscellaneous expenses based on owner’s
     previous experience.

   12.    Computer Software.   Reflects a price of $79.95
     for Quick Books small business accounting software and
     $149 for Front Page, a software program for website
     design and maintenance.

   13.    Mailing Address.   $120 per year for a business
     mailing address based on a quote from Postal Annex at
     Bullard and First in Fresno, California.

   14.    Net Working    Capital.    Represents   unallocated
     working capital.

   15.    Auto Fuel And Repairs.   Includes an allowance of
     $100 per month for additional auto repair expense due
     to increased wear and tear on the owner’s personal
     automobile and an auto fuel expense estimate of $2,000
     based on 20,000 miles in business-related driving at
     20 miles to the gallon and average gasoline prices of
     $2 per gallon (1,000 gallons times 2 dollars).




                             25
Revised 11/15/10




                                     EXHIBIT 9

BREAK-EVEN ANALYSIS
YEAR 1
BULLDOGMALL.COM




                                                Variable Expenses     Fixed Expenses
a. COGS (30% of net revenue)                     $            7,799
b. Advertising Agency Commission                 $              804
   [15% of (Sales times 20%)]
c. Loan Payments                                                       $        3,876
   (Principal & Interest)
d. Telephone                                                           $        1,288
e. Business License Fee                                                $           10
f. Office Supplies                                                     $        2,400
g. Legal and Accounting                                                $        1,575
h. Advertising and Promotion                                           $       11,800
i. Miscellaneous Expenses                                              $        1,800
j. Computer Software                                                   $          229
k. Mailing Address                                                     $          120
l. Auto Fuel and Repairs                                               $        3,200
  TOTALS                                         $            8,603    $       26,298


Sales                                            $           26,800


Variable Costs = $8,603 / 26,800 = .3210 or
32.1% of sales
Let x = Break-even Sales
Sales = Profit + Fixed Costs + Variable Costs
        X = 0 + $26,298 + .3210x
 .6790x = $26,298
        X = $26,298 / .6790
        X = $38,730




                                           26
Revised 11/15/10




Explanation for Break-Even Analysis


   a. Cost Of Goods Sold.    Reflects 30% of $25,996 in net
      revenue   as   compensation   to   Internet   Marketing
      Associates   for  the   outsourcing   of  hosting   and
      operations.   This is based on total sales of $26,800
      less agency commission of $804, which involves selling
      and maintaining 134 advertising contracts with an
      average contract value of $200 per contract per month
      between April 1, 2001 and December 31, 2001.

   b. Advertising Agency Commission. Reflects 15% of $5,360
      in total sales through advertising agencies.

   c. Loan Payments (Principal and Interest).   Represents
      annual total of payments of $322.67 per month for a
      $10,000 loan amortized over 3 years at a 10% annual
      interest rate from Fresno National Bank.

   d. Telephone.   This total includes installation charges
      of $33.01 for each of the two new phone lines, a
      monthly charge of $10.69 for each line, and a monthly
      allowance of $100 for long distance calls based on
      current Pacific Bell pricing.

   e. Business License Fee.   The business license fee will
      be $10 per year (License and Permits Office, Fresno).

   f. Office Supplies.     This total includes all office-
      related expenses including copying and paper supplies.
      The owner will perform office duties.        Total is
      estimated at $2,400 annually based on the owner’s
      previous experience.

   g. Legal And Accounting.     Gary L. Higgins, CPA will
      provide training in the use of Quick Books software
      for $75 and tax preparation services for $300.      An
      additional   $1,200  is   allocated   for   Legal  and
      Accounting consultation as needed, including $35 for a
      fictitious business name.

   h. Advertising And Promotion. $11,800 will be allocated
      to the advertising and promotion campaigns discussed
      in the Marketing section above.      $8,500 will be


                             27
Revised 11/15/10



       invested in a full-page back cover ad in The Collegian
       (CSU Fresno’s newspaper) and $3,300 will be used for
       flyers and on-campus marketing.

   i. Miscellaneous Expenses.    $1,800 has been estimated for
      miscellaneous expenses     based on owner’s previous
      experience.

   j. Computer Software.    Reflects a price of $79.95 for
      Quick Books small business accounting software and
      $149 for Front Page, a software program for website
      design and maintenance.

   k. Mailing Address. $120 per year for a business mailing
      address based on a quote from Postal Annex at Bullard
      and First in Fresno, California.

   l. Auto Fuel And Repairs. Includes an allowance of $100
      per month for additional auto repair expense due to
      increased wear and tear on the owner’s personal
      automobile and an auto fuel expense estimate of $2,000
      based on 20,000 miles in business-related driving at
      20 miles to the gallon and average gasoline prices of
      $2 per gallon (1,000 gallons times 2 dollars).




                                28
Revised 11/15/10




                                                                                                                  BulldogMall.com
                                                                                                           Monthly Cash Flow Projection
                                                                                                           January 2001 - December 2001


                                               January        February        March         April          May             June          July          August         September        October        November       December       Total
  1    Beginning Cash Balance                            $0      $27,522       $25,282        $23,041         $20,904        $19,064       $17,611       $16,520          $15,760        $15,325        $15,225        $15,463
  2              Cash Receipts                           $0              $0            $0           $146           $233           $291          $349        $437             $495           $582           $640           $728       $3,899
  3             A/R Collections                          $0              $0            $0            $0            $340           $834      $1,290        $1,678           $2,086         $2,474         $2,900         $3,298      $14,899
  4              Loan Proceeds                   $10,000                 $0            $0            $0              $0            $0            $0              $0               $0             $0          $0             $0      $10,000
  5              Personal Funds                  $20,000                 $0            $0            $0              $0            $0            $0              $0               $0             $0          $0             $0      $20,000
  6    Total Cash Inflows                        $30,000                 $0            $0           $146           $572       $1,125        $1,639        $2,115           $2,580         $3,056         $3,541         $4,026      $48,799
  7
  8    Cash Outflows
  9         Internet Marketing Associates                 0               0             0            44             172            338           492            634           774            917          1,062          1,208       $5,640
  10                             Owner Draw               0               0             0              0               0             0             0              0                0              0              0              0           $0
  11                          Loan Payments         $323            $323          $323              $323           $323           $323          $323        $323             $323           $323           $323           $323       $3,876
  12                              Telephone         $107            $107          $107              $107           $107           $107          $107        $107             $107           $107           $107           $107       $1,284
  13                   Business License Fee          $10                 $0            $0            $0              $0            $0            $0              $0               $0             $0          $0             $0          $10
  14                        Office Supplies         $200            $200          $200              $200           $200           $200          $200        $200             $200           $200           $200           $200       $2,400
  15                   Legal and Accounting         $200            $200          $200              $200           $200           $200          $200        $200             $200           $200           $200           $200       $2,400
  16            Advertising and Promotion           $983            $983          $984              $983           $983           $984          $983        $983             $984           $983           $983           $984      $11,800
  17               Miscellaneous Expenses           $150            $150          $150              $150           $150           $150          $150        $150             $150           $150           $150           $150       $1,800
  18                      Computer Software         $229                 $0            $0            $0              $0            $0            $0              $0               $0             $0          $0             $0         $229
  19                        Mailing Address          $10             $10              $10           $10            $10            $10           $10             $10           $10           $10             $10            $10         $120
  20                   Auto Fuel and Repairs        $266            $267          $267              $266           $267           $267          $266        $267             $267           $266           $267           $267        3,200
  21   Total Cash Outflows                        $2,478          $2,240        $2,241         $2,283            $2,412       $2,579        $2,731        $2,874           $3,015         $3,156         $3,302         $3,449      $32,759
  22
  23   Net Cash Increase (Decrease)              $27,522        ($2,240) ($2,241)            ($2,137)       ($1,839)        ($1,453)      ($1,091)        ($760)           ($435)         ($100)           $238           $577      $16,040
  24
  25   Ending Cash Balance                       $27,522         $25,282       $23,041        $20,904         $19,064        $17,611       $16,520       $15,760          $15,325        $15,225        $15,463        $16,040



                                                                                                       EXHIBIT 10


                                                                                                                  29
Revised 11/15/10



                                          EXHIBIT 11

                                          BulldogMall.com
                                    Quarterly Cash Flow Projection
                                    January 2002 - December 2002


                                    1st Quarter       2nd Quarter     3rd Quarter    4th Quarter Total
Beginning Cash Balance                     $45,685         $36,690         $35,254       $50,130
        Cash Receipts                       $1,396          $2,369          $3,722        $4,907         $12,394
       A/R Collections                      $9,690          $9,859         $16,300       $23,857         $59,706
        Loan Proceeds                            $0             $0              $0            $0             $0
       Personal Funds                            $0             $0              $0            $0             $0
Total Cash Inflows                         $11,086         $12,228         $20,022       $28,764         $72,100


Cash Outflows
 Internet Marketing Associates              $3,880          $4,280          $7,008       $10,067          25,235
                      Owner Draw            $3,000          $3,000          $3,000        $3,000          12,000
                    Loan Payments             $969            $969            $969          $969         $3,876
                       Telephone              $649            $650            $650          $651         $2,600
          Business License Fee                  $10             $0              $0            $0            $10
                  Office Supplies             $750            $750            $750          $750         $3,000
          Legal and Accounting                $450            $375            $375          $375         $1,575
     Advertising and Promotion              $2,950          $2,950          $2,950        $2,950         $11,800
        Miscellaneous Expenses                $450            $450            $450          $450         $1,800
                Computer Software                $0             $0              $0            $0             $0
                  Mailing Address               $30            $30             $30           $30           $120
         Auto Fuel and Repairs                $800            $800            $800          $800         $3,200
Total Cash Outflows                        $13,938         $14,254         $16,982       $20,042         $65,216


Net Cash Increase (Decrease)              ($2,852)         ($2,026)         $3,040        $8,722         $6,884


Ending Cash Balance                        $92,882         $87,626        $112,302      $156,464




                                                      30
Revised 11/15/10



Explanation for Cash Flow Projections

      1. Beginning Cash Balance.    Represents available cash
         for operations at the beginning of the period.

      2. Cash Receipts.   The amount of cash received during
         the period, which is estimated to be 15% of current
         month’s income (Income Statements available upon
         request).

      3. A/R Collections.   Reflects cash collected from Net
         30 billing of invoices from previous periods, which
         is estimated to be 35% of 30-day invoices, 30% of
         60-day invoices, 15% of 90-day invoices, and 5% of
         invoices that are aged 120 days or more.       This
         estimate is based on the advertising sales and
         collection experience of the owner.

      4. Loan Proceeds.    Capital loan proceeds.

      5. Personal Funds.     Proceeds from personal investment
         of owner.

      6. Total Cash Inflows.         Total   of all cash   received
         during the period.

      7. No Data.

      8. Cash Outflows.    See items 9 thru 20.

      9. Internet Marketing Associates.      Represents cash
         outlays for outsourced operations based on three-
         year outsourcing agreement (see Support Personnel).

      10. Owner Draw. Reflects withdrawal of cash from the
        business by the owner during the period.

      11. Loan Payments: Represents payment of $322.67 per
        month for a $10,000 loan amortized over 3 years at a
        10% annual interest rate from Fresno National Bank.

      12. Telephone.     This total includes installation
        charges of $33.01 for each of the two new phone
        lines, a monthly charge of $10.69 for each line, and
        a monthly allowance of $100 for long distance calls
        during the year 2001 and $195 during the year



                                31
Revised 11/15/10



          2002   based  on   current  Pacific   Bell    pricing;
          amortized over a 12 month period.

      13. Business License Fee.  The business license fee
        will be $10 per year (License and Permits Office,
        Fresno).

      14. Office Supplies. This total includes all office-
        related   expenses  including   copying  and   paper
        supplies.    The owner will perform office duties.
        Total is estimated at $2,400 annually based on the
        owner’s previous experience during the year 2001 and
        $3000 during the year 2002.

      15. Legal And Accounting. Gary L. Higgins, CPA will
        provide training in the use of Quick Books software
        for $75 and tax preparation services for $300.    An
        additional $1,200 is allocated for Legal and
        Accounting consultation as needed, including $35 for
        a fictitious business name.

      16. Advertising And Promotion.       $11,800 will be
        allocated to the advertising and promotion campaigns
        discussed in the Marketing section above.     $8,500
        will be invested in a full-page back cover ad in The
        Collegian (CSU Fresno’s newspaper) and $3,300 will
        be used for flyers and on-campus marketing.

      17. Miscellaneous    Expenses.       $1,800      has   been
        estimated   for  miscellaneous    expenses     based   on
        owner’s previous experience.

      18. Computer Software.    Reflects a price of $79.95
        for Quick Books small business accounting software
        and $149 for Front Page, a software program for
        website design and maintenance during the year 2001.

      19. Mailing Address.    $120 per year for a business
        mailing address based on a quote from Postal Annex
        at Bullard and First in Fresno, California.

      20. Auto Fuel And Repairs.   Includes an allowance of
        $100 per month for additional auto repair expense
        due to increased wear and tear on the owner’s
        personal automobile and an auto fuel expense
        estimate of $2,000 based on 20,000 miles in
        business-related driving at 20 miles to the gallon


                               32
Revised 11/15/10



          and average gasoline prices of $2 per gallon (1,000
          gallons times 2 dollars).

       21. Total Cash Outflows.      The total               of    all   cash
         disbursements during the period.

       22.   No data.

       23. Net Cash Increase (Decrease). Total cash inflows
         less total cash outflows for the period.

       24.   No data.

       25. Ending Cash Balance.     Represents available cash
         for operations at the end of the period.

                                  SUMMARY
       BulldogMall.com     will     be    successful.       This    business

plan      has      documented       that      the     establishment        of

BulldogMall.com is feasible.              All of the critical factors

such    as    industry    trends,        marketing    analysis,     business

operations, competitive analysis, management expertise, and

financial analysis support this conclusion.

       We invite you to “surf” our site when it goes online.

We will provide CSU Fresno students and alumni with the

first     web      community    tailored      to     meet   their    needs,

“BulldogMall.com--for work, play, and shopping”!




                                     33
Revised 11/15/10



                             APPENDIX A

          Bulldog Mall Survey Page
Bulldog Mall---Answer “Yes” or “No” to the following:

1. Are you a CSU Fresno Student or Alumni?

2. Would you check out a FREE Web Community for CSU Fresno Students &

Alumni?

3. Would you join the Community if the content appealed to you?

4. Are you Male?




                                   Answer
                                  view results
                            Powered by CreateSurvey




Thank you for taking this survey!
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                                     34

				
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