Sample Business Plan I magine

I.magine 84 TussoekBrookRoad Duxbury,MA 02332 508-878-0955 July 27, 1999 Ms. Rose Starkowicz LYCOS Two Gateway Center, Suite 1750 Pittsburgh, PA 15222 Dear Ms. Starkowicz, Enclosed is information on I.magine. We are a customized on-line service provider. I.magine is leveraging the power of the Net for any organization interested in exposure and communication via the World Wide Web. Recognizing how precious prime desktop coverage is, we have created a branded "AOL" type service that showcases any organization, on-net or off. Potential clients include professional sport teams, retailers, banks, universities, non-profits, or any group that possesses a large audience that they desire to be in touch with. I.magine is a complete, turnkey service that provides access, content (the news, E-mail, stock market etc.), billing and 24x7 technical support, similar to AOL. I.magine offers continual, premium desktop exposure. This enables the organizations' audience (subscribers) to easily and expediently access that organization, because it appears directly on the desktop. Each time a customer uses the computer or goes on-line, both the ToolBar and "StartPage" are customized to feature that organization. The StartPage is formatted to display any information the organization wishes to deliver. There is no need to "go" to its' website, as the desktop also supplies an instant hyperlink to it, through a customized desktop icon. The StartPage can be changed as necessary, and may reflect that group's services, products, or showcase whatever is deemed praiseworthy. The organization may also offer valuable client advertising on the StartPage, with hyperlink connectivity to that advertiser's website. If desired, the monthly service (subscriber) fee could become a new profit center, along with fees generated from StartPage advertising. Where else I.magine can any group receive payment to promote their organization, products, or services? We believe that there is not a more cost effective way to build presence on the Internet. As a start-up, we are seeking funding for our first year. If you need additional information, please contact me. I look forward to talking with you in the near future. Thank you for your time. Sincerely, Bob Sheehan cc: DennisCiccone JamieDriscoll Lmagine Innovation that keeps you connected to your world! Executive Summary The lnternet Morgan Stanley Dean Witter states "the Intemet represents the potential creation of the greatest, most efficient distribution vehicle in the history of the planet". Today, the Intemet is the fastest growing industry in the world. Twenty-four hours a day, 365 days per year, millions of homes and businesses are using the services of the Intemet and the World Wide Web (WWW). Over 67,000 new subscribers sign up for access every day! To access the Intemet, a PC (or a hand-held device) and an Internet Service Provider (ISP) or On-line Server are needed. The ISP provides the access to the Interact. Analysts expect more people to hook up to the Intemet using non-PC devices - phones, televisions, pagers and other hand-held devices than do today with PC's" (USA TODAY). It's not surprising that Intemet access is expected to grow 820% over the next three years. By the year 2000, there will be over 200 million Intemet users in 140 countries. The Internet economy generated $301 billion in revenue last year, and is doubling every 9 months. And within 5 years, estimated Internet shopping will match the sales volume it took catalog shopping 40 years to achieve. Given these statistics, it is clear to see that the Internet is exploding, and represents unprecedented opportunities. The Intemet embodies the future today. To compete effectively, every organization must learn how to leverage the Internet for their products, services and audiences' requirements. For ISP's and On-line Services, the opportunity is huge. "The portal game is about capturing eyeballs", which translates to capturing mindshare and market power. The ISP "portal" acts as the gateway to the Internet; the Service Provider's "StartPage" is the screen that greets the audience each and every time the Internet is accessed. The exposure and concomitant potential of the StartPage are invaluable. The Service Lmagine is leveraging the power of the Net for any organization interested in exposure and communication via the World Wide Web. We are reforming the ISP/On-line Service concept, by devising a customized Toolbar and On-line Service for retailers, companies, universities, banks, sports teams or any organization that desires to be more in touch with their audience. I.magine has pieced together the elements needed for this offering, including access, content, and technical support. We realize how precious prime desktop coverage is. The goal is to maximize an organization's presence on the Internet, thereby enabling that group to gain entry into a new world of exposure, communication and profit centers. This unique innovation has generated strong interest within various groups, and as this is a new concept, the time is ripe to present Lmagine to the marketplace immediately. I Service Description l.magine is an On-line Service Provider that offers innovative, customized On-line service to companies and organizations throughout the U.S. and Canada. l.magine creates a "private label" StartPage, and thereby establishes each contracted organization as an On-line Service Provider. The StartPage is designed to meet the needs of that group, and their audience. This premium space showcases the organization, its' products and services. The StartPage is personalized for the subscriber, which increases customer retention and On-line activity and returns. Once the On-line Service is designed and activated, the organization will offer On-line Service subscriptions to its' audience. This customized offering enables the organization to establish direct contact with the subscriber each and every time the Intemet is accessed. The potential for organizations is unlimited. Today, On-line Services possess constant on-line exposure, which is highly valued. On-line communication with their subscribers occurs typically on a daily basis. The On-line Server's StartPage appears each time the Internet is accessed. With Lmagine, the format of the StartPage can be modified at a whim, thus events, on-line specials, organizational updates and such can be reflected immediately. Today, most organizations do possess websites, which can only be accessed through their domain name. This process is time consuming, and subscribers usually don't access the site unless they need it. l.magine is light years beyond a website. Imagine being in front of your audience each time the Internet is accessed, without your audience having to "search" for your website. Imagine being able to communication with your audience whenever desired. The goal of Lmagine is to maximize the presence of any organization on the Internet. Also, the audience will be able to hyperlink immediately into that organization's website for additional information, with the click of a button. This is the perfect medium for organizations that need to be in touch with their audience, and want to be in touch with the rest of the world. / o 4 II Market Segments and Descriptions Customized On-line Service for Affinity Groups, which is designed for organizations that include retailers, grocery markets, non-profit organizations, sports teams, banks, and schools. I.magine's Customized On-line Service is developed for organizations that strive to communicate effectively with their audience, and recognize the power of personalization, customization, and the Web. These organizations realize that the Internet is the future; it represents the most efficient medium to move products and services, deliver messages, and stay in touch. By offering an On-line Service, these groups are progressively seizing the Internet, as they recognize the value of being in front of their audience, literally, each time the end-user goes on line. The StartPage is incredibly persuasive and potent space. Affinity groups and organizations possess millions of potential subscribers made up of small businesses, patrons, alumni, members, employees, students, etc. We have developed I.magine's seamless infrastructure to perform as a direct conduit between the organization, their audience, and the rest of the world. I.magine's On-line Service is designed to enhance any organization, thereby enabling any group to offer Internet access to their audience. The capability of having this direct connection is priceless to any organization, as is the constant on-line exposure. The associated costs to an organization for I.magine's service is a minimal fee for StartPage and Toolbar customization, and a deposit that will be refunded after the service has been activated (based upon the number of subscribers). This incredibly cost-effective opportunity allows any organization to join the Internet future today, and build a direct presence on the web. Major benefits include constant on-line exposure and a direct connection with their audience. Other powerful advantages enable an organization to: *Continually reinforcenamerecognition and loyaltyto an organization, *Capturemindshare& achievestronger communications iththeir audience w *createnew profitcentersviaISP monthlyfees,or portaladvertising generatedfromothergroups *beflcxiblc...by allowing constant changes totheportal toreflect various events, service offerings, promotions andupdates, *offer quick hypcrlink connectivity into theorganization's wcbsitc or ( thewcbsitc ofa sponsor/advertiser), *the capability todcsign special programs that encouragen-line o activity. *support vendors sponsors and by allowing themtopromote their goodsand services the on organization's homcpagc. *offeriscounted d Intcrnct accesso t theaudience, aswell content as that includes: c-mail, news service, stock market updates, weather andmore. *offer E-commerceforshop-on-line ease. III Marketing Plan Sales Channel Lmagine is offering Customized On-line Services through a network of highly commissioned sales agents. These agents are well established within various business communities. The role of an agent is to open the door, make an initial contact and explain the service and its advantages. Lmagine's staff will then pursue and close the opportunity as appropriate. Customer Profile Lmagine is targeting companies, organizations, associations, and essentially, any group that has a substantial audience. As mentioned, this includes retailers, grocery chains, non-profit organizations, sports teams, banks and schools. Schools will be spending $50 billion this year on telecom upgrades, confirming that Internet technology is a priority. Lmagine will design the On-line Service based upon the needs of the organization. This will include the customization of the StartPage, daily flexibility for changes to the StartPage, competitively priced ISP access to pass on to their audience, constant on-line exposure for the organization, Ecommerce capabilities and hyperlink connections to affiliated websites. Lmagine will also offer around-the-clock content such as local and worldwide news, real time services, E-mail and Web space. As stated, due to new technology, the private labeling of On-line Services is somewhat of an anomaly. Organizations are attracted to this concept because it is unique, innovative, and delivers the essential contact and communication with their audience. It also personalizes the On-line experience for the subscriber, which keeps customer retention high. And with the obvious growth of the Internet, it is a state-of-the-art concept that organizations can grasp now, as a forerunner, or later as a follower. IV Competition The competition for customized On-line Service Providers is undeveloped. At a recent Interact trade show, this concept was not even mentioned. In the past, technology was not developed to offer this service. New technology today allows for customization of StartPages, at multiple locations. The competition will be On-line Service Providers that plan to focus on affinity groups. Presently, the majority of Service Providers endeavor to acquire market share by pursuing the residential and business markets directly, or other Service Providers to resell their services to. To date, we have not yet encountered an On-line Service that plans to offer a "customized" service to various organizations and associations. l.magine's competitive advantage is delivering this newly conceived innovation to the marketplace today, through a group of established agents. Although it is a matter of time before other On-line Servers begin to offer this service, our plan is to be predominant in the introduction and delivery of this concept to the marketplace. Lmagine will offer competitive pricing for On-line Services, to compete effectively against similar services such as AOL and Prodigy. The service will be offered at a competitive fiat rate for unlimited Internet service, or, if desired, at an hourly fee. The organization will pass this pricing on to their audience, or add on a certain amount, thereby creating a profit center. V Management Team Robert F. Sheehan, Co-Founder Robert Sheehan has managed and operated businesses since 1980. He has a successful track record in telecommunications, with an emphasis in directing operations. For 15 years, Mr. Sheehan has served as CEO of USComNet, an interexchange telecommunications company specializing in long distance for the corporate market, and interactive phone card programs developed for Fortune 1000 companies. Clients included Kroger Food Markets, Nestle's, Kraft Foods, Golden Bear International, Dillards Department Stores, and Smuckers. Mr. Sheehan took USComNet from inception to operations in multiple states. Under his direction, Sun-Tel Communications in Florida was acquired. The company was later sold at a profit. Prior to USComNet, Mr. Sheehan was president and founder of Olympic Resources, an oil and gas exploration company. He took the company public in 1981. Other experience includes a position at Rockport Shoes, in which he was responsible for domestic and international financial operations. Mr. Sheehan has a B.S. and a M.B.A. from Boston College. Kathleen Creary Stettner, Co-Founder Kathleen Creary has been involved in the telecommunications industry since 1978. She is a results-driven executive with an extensive background in business development, operations, sales and marketing. She possesses the proven capability of transforming a concept into a thriving business venture. Ms. Creary's background includes employment with Sprint, Satellite Business Systems, and Allnet; her responsibilities included opening, developing and staffing new regions for these companies. In 1983, she co-founded USComNet, a provider of long distance services and customized phone cards. As President, she opened multiple locations, managed the acquisition of Sun-Tel Communications in Florida and built the company into a multi-million dollar business. She also supervised the installation of two switching centers/POP's, in RI and FL. USComNet was sold in 1998. Ms. Creary has an A.A. from Marymount University, Arlington, VA and a B.A. from Nazareth College, Rochester, NY. 10 VI Financial Goals and Projections The value of an On-line Service is based on the number of subscribers, and the revenues derived from those subscribers. The goal of I.magine is to build a customer base with over 100,000 subscribers. Revenues will be derived from monthly fees, advertising and E-commerce. As an On-line service, I.magine serves as the direct conduit to the Intemet, thereby controlling the access and attention of the subscribers, which amounts to a very powerful position. As the Interact develops, we will be in a prime position to offer new services from low cost telephone voice and data capabilities, video streaming and data storage to software and expanded E-commerce. Valuations will vary by type of subscriber (business or consumer), and revenue per subscriber. Other factors will contribute as well. Recent valuations by industry analysts and acquiring corporations place the value of On-line Service Providers from $250.00 per subscriber for smaller Providers (with around 2,000 subscribers) to over $800.00 per subscriber for Providers that exceed 50,000. ii 12 r , • ._ ......_.. .... . • ..... • ..'"'.. . " :7:-P?.. . ....._4....-. '! • •" ...., v ._&...: •..! .. . •....... ..... ......_.. . ,.::.'!':H. ,+ _' • ..... .._ .... . _ ._'.:_L' " _ " 'Y _.? ' ......... i.:. • .... ", " .... "_._.'."< • ! _ . t .(.:_ .....• •.._:: • 1 . ,...q_.._ _r: " .... !_ " ' .""r'_< I • • " • ___._'_..._. : • " " ..,_.. ... . ...... 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