Sample Business Plan Insight Data Link

BUSINESS INSIGHT PLAN FOR: INC. DATA LINK.COM, INSIGHT DATA LINK.COM, INC. TABLE OF CONTENTS ITEM I. II. III. IV. V. VI. VII. VIII. IX. X. PURPOSE DESCRIPTION OF OPERATION INSIGHT DATA L1NK SOLUTIONS BENEFITS OF SERVICE THE MARKET ORGANIZATIONAL STRUCTURE COMPETITION MANAGEMENT AND STAFFING PLAN MARKETING PLAN FINANCIAL PLAN PAGE #('s) 1 2 3,4,5 6 7,8 9 10, 11 12,13 14,15,16 17,18 INSIGHT DATA LINK.COM, INC. I. PURPOSE: THE PURPOSE OF THIS BUSINESS PLAN IS AS FOLLOWSA. TO PROVIDE A MANAGEMENT TOOL TO ASSIST THE CORPORATION IN FACILITATING FULFILLMENT OF ITS GOALS AND OBJECTIVES. B. TO PROVIDE A MECHANISM TO EVALUATE PROGRESS IN SATISFYING CORPORATE GOALS AND OBJECTIVES. C. TO PROVIDE A MECHANISM TO MONITOR CORPORATE PERFORMANCE. D. FOR PRESENTATION TOWARDS INVESTORS FOR THE PURPOSE OF FACILITATING ACQUISITION OF $400,000.00 IN ADDITIONAL CAPITAL. -1INSIGHT DATA LINK.COM II. DESCRIPTION OF OPERATION: INSIGHT DATA LINK.COM, INC., IS ORGANIZED FOR THE PURPOSE OF PROVIDING THE NATION'S LEADING RETAILERS AND LEADING OWNERS, DEVELOPERS, AND MANAGEMENT COMPANIES WITH A REAL-TIME, ON-LINE, INTERNET-BASED RETAIL SITE MANAGEMENT SERVICE WHICH WILL PROVIDE THE FOLLOWING SERVICES: 1. IDENTIFYING RETAIL SPACE AVAILABILITY FOR LEASING TO THE NATION'S LEADING RETAILERS ON A REAL-TIME BASIS. 2. ASSISTING SITE OWNERS, DEVELOPERS, AND MANAGEMENT COMPANIES IN IDENTIFYING RETAIL TENANTS WHO CAN UTILIZE SPACES PRIOR TO LEASES EXPIRATION. 3. PROVIDING REAL-TIME SITE SURVEYS AND BLUEPRINT POSTINGS TO TENANTS AND MANAGERS. 4. SALE AND USE OF SITE MANAGEMENT SOFTWARE. 5. EQUIPPING RETAILERS WITH AN INTERNET BASED PLATFORM FOR MANAGING CONSTRUCTION PROJECTS. 6. BRINGING TOGETHER RETAILERS, SUPPLIERS, AND CONTRACTORS IN ORDER TO COORDINATE CONSTRUCTION PROJECTS. 7. SUPPLYING ANY PROPERTY MANAGEMENT COMPANY WITH THE MEANS TO MANAGE THEIR SPACE. -2INSIGHT DATA LINK.COM III. INSIGHT DATA LINK.COM SOLUTIONS: THE RETAIL BUSINESS IN THE UNITED STATES IS ONE OF THE MOST COMPETITIVE INDUSTRIES IN OUR NATION. OF THE MANY ELEMENTS WHICH CAN MAKE THE DIFFERENCE BETWEEN SUCCESS AND FAILURE, LOCATION IS ONE OF, IF NOT THE MOST IMPORTANT COMPONENTS OF A SUCCESSFUL OPERATION. IT HAS BEEN STATED MANY TIMES BEFORE THAT THE THREE KEYS TO SUCCESSFUL RETAILING ARE "LOCATION, LOCATION, LOCATION." MERELY BEING IN THE RIGHT LOCATION IN A FAST CHANGING WORLD IS NOT ENOUGH, HOWEVER, FOR EVEN WHEN A PRIME LOCATION HAS BEEN OBTAINED, THERE CAN BE PROBLEMS ASSOCIATED WITH SITE ACQUISITION AND MANAGEMENT. THE TYPICAL PROBLEMS MANY RETAILERS, AND THE MANAGERS OF SUCH SPACE ARE PRESENTED WITH, AND HOW INSIGHT DATA LINK ("IDL") CAN SOLVE THESE PROBLEMS ARE AS FOLLOWS: PROBLEM: MANY RETAILERS ARE NOT AWARE OF WHEN LEASES ARE EXPIRING IN PRIME LOCATIONS. IDL SOLUTION: IDL, THROUGH ITS COMPREHENSIVE, REAL-TIME INTERNET-BASED DATA BASE, CAN PROVIDE ANY RETAILER WITH THE EXACT DATE IN WHICH OPTIMUM SPACE WILL BECOME AVAILABLE, GIVING THE RETAILER ADVANCE NOTICE AND ADEQUATE TIME TO COMMENCE NEGOTIATIONS FOR SITE ACQUISITION AND SITE PREPARATION AND PLANNING. BEING PROVIDED WITH ADVANCE NOTICE GIVES THE SUCCESSFUL RETAILER ONE MORE COMPETITIVE EDGE TO STAY AHEAD OF ITS COMPETITORS, MAXIMIZE ITS SALES, AND ENHANCE ITS PROFITABILITY. PROBLEM: RETAILERS AND COMPANIES LOOKING FOR RETAIL SPACE HAVE DIFFICULTY LOCATING SITES THEY NEED TO MAXIMIZE THEIR PROFITS. IDL SOLUTION: WITH A COMPREHENSIVE, REAL-TIME INTERNET BASED PACKAGE, RETAILERS CAN QUICKLY LOCATE AND IDENTIFY AVAILABLE SPACE. 3 INSIGHT DATA LINK.COM PROBLEM: MANAGEMENT COMPANIES DO NOT HAVE A PAPERLESS SYSTEM TO MANAGE THEIR PROPERTIES, THE LACK OF WHICH INCREASES COSTS AND REDUCES MANAGEMENT EFFICIENCY. IDL SOLUTION: THROUGH THE USE OF THE INTERNET, MANAGEMENT COMPANIES ARE PROVIDED WITH A PAPERLESS SYSTEM PACKAGE WHICH STREAMLINES OPERATIONS, REDUCES COSTS, AND SIMPLIFIES ADMINISTRATION. PROBLEM: MOST COMPANIES DO NOT HAVE THE TECHNICAL EXPERTISE, STAFF, TRAINING, AND EXPERIENCE TO OPERATE A WEB BASED PROGRAM. IDL SOLUTION: PROVIDING COMPANIES WITH A COMPREHENSIVE, USER-FRIENDLY SOFTWARE PACKAGE THAT IS MANAGED AND MAINTAINED ENTIRELY BY IDL, ELIMINATES THE NEED FOR COMPANIES TO STAFF THEIR OWN WEB BASED OPERATION, WHICH DOES AWAY WITH THE NEED TO PURCHASE, STAFF, AND MAINTAIN THE EQUIPMENT REQUIRED FOR WEB SITE MANAGEMENT. PROBLEM: THE INFORMATION NEEDED TO UNDERTAKE AND COMPLETE A CONSTRUCTION PROJECT IS NOT READILY AVAILABLE FROM ONE SOURCE. IDL SOLUTION: IDL PROVIDES COMPANIES WITH ONE SOURCE TO CONSOLIDATE THE INFORMATION NEEDED TO UNDERTAKE AND COMPLETE AN EFFICIENT CONSTRUCTION PROJECT. PROBLEM: CONSTRUCTION IS EXPENSIVE AND TIME CONSUMING. IDL SOLUTION: THE EFFICIENCY OF ONE-STOP SERVICE REDUCES MANAGEMENT CONSTRUCTION COORDINATION AND COSTS. COSTS ARE REDUCED BECAUSE: 1. TIME AND ENERGY ARE SAVED SINCE ALL DOCUMENTS ARE PROVIDED BY IDL (I.E, PERMIT APPLICATIONS, INSPECTION AGENCY PHONE NUMBERS, CONTACT PERSONS, AND CONSTRUCTION MANUALS WHICH ARE PECULIAR OR UNIQUE TO EACH SITE). -4INSIGHT DATA LINK.COM 2. WEB BASED ELIMINATES ELIMINATES ASSOCIATED POSTING OF CONTRUCTION DOCUMENTS THE NEED FOR BLUEPRINT COPIES AND NEED FOR DELIVERY OF DOCUMENTS AND COST AND DELAY BY OVERNIGHT CARRIERS. 3. CHANGES WHICH HAVE TO BE MADE CAN BE ACCOMPLISHED IN REAL TIME, THUS ELIMINATING THE NEED TO SEND OUT DOCUMENTS BY MAIL AND THEN WAIT FOR THE RESPONSE TO BE MAILED BACK. CHANGES CAN BE COORDINATED BETWEEN, FOR EXAMPLE, THE ARCHITECT AND PROJECT MANAGER IN REAL-TIME. -5INSIGHT DATA LINK.COM IV. BENEFITS OF THE SERVICE: THERE ARE NUMEROUS BENEFITS OF THE SERVICE TO ITS CLIENTS AND CUSTOMERS, THE MOST SALIENT OF WHICH ARE AS FOLLOWS: 1. THE SIMPLICITY AND EASE OF OBTAINING CRITICAL, REAL TIME INFORMATION. 2. LOW COST. 3. IDL PROVISIONS OF STAFFING, LABOR, MATERIALS, AND SYSTEMS MAINTENANCE. 4. FACILITATING SITE AVAILABILITY CAN INCREASE PROFITS OF RETAILERS, SINCE GAINING KNOWLEDGE OF WHEN OPTIMUM SITES ARE AVAILABLE CAN GIVE MANAGEMENT THE ABILITY TO TIME THEIR SITE ACQUISITIONS IN THOSE PERIODS WHEN SALES ARE MOST ABUNDANT. 5. CONSTRUCTION COST REDUCTION. 6. LOWERS STAFFING REQUIREMENTS. 7. REDUCED VACANCY RATES FOR MANAGEMENT COMPANIES. 8. DECREASED PAPERWORK. 9. ONE STOP SHOPPING. 10. IDL EXPERTISE. -6INSIGHT DATA LINK.COM V. THE MARKET: THERE ARE TWO INITIAL MARKETS THE CORPORATION WILL PURSUE IN THE EARLY STAGES OF THE OPERATION. ONCE THESE TWO MARKETS (DESCRIBED BELOW) HAVE BEEN SUFFICIENTLY PENETRATED, THE CORPORATION INTENDS TO EXPAND ITS OPERATIONS TO OTHER RELATED MARKETS. INITIALLY, THE CORPORATION WILL MARKET ITS SERVICES TO WHAT ARE CALLED THE NATIONS "LEADING OWNER, DEVELOPER, AND MANAGEMENT COMPANIES" ("LODMACS") OF MALLS, AND THE NATIONS "LEADING RETAILERS." LODMAC'S REPRESENT THE LARGEST MALL OWNER, DEVELOPER, AND MANAGEMENT COMPANIES (THERE ARE 269 SUCH FIRMS IDENTIFIED IN THE LODMAC ALMANACS AS OF THIS WRITING), WHILE THE NATIONS LEADING RETAILERS CONSIST OF THE TOP FIFTY (50) RETAILERS IN TERMS OF SALES VOLUME. ANCILLARY MARKETS, TO BE PENETRATED AFTER THE INITIAL CAMPAIGN IS DIRECTED TOWARDS THE LARGEST LODMAC'S AND RETAILERS, CONSIST OF SMALLER LODMAC'S AND RETAILERS (SUCH AS REGIONAL LODMAC'S AND RETAILERS), AND STRIP MALLS. AS ONE FORM OF PRICING WILL BE BASED UPON SQUARE FOOTAGE UNDER MANAGEMENT, THE SIZE OF THE VARIOUS MARKETS PRICED UNDER THIS METHOD IS EASILY ASCERTAINABLE. FOR LODMAC'S, THE MARKET SIZE IS AS FOLLOWS: MARKET TYPE LARGE LODMAC'S LOCAL & REGIONAL LODMAC'S TOTAL SQUARE FOOTAGE MANAGED .SQUARE FOOTAGE 1,086,170,354 7_213_487_962 8,299,648,316 ACCORDING TO THE LODMAC ALMANAC, THE SQUARE FOOTAGE UNDER MANAGEMENT FOR THE UNITED STATES DOMESTIC MARKET IS EXPECTED TO INCREASE ON AN AVERAGE OF 5% ANNUALLY OVER THE NEXT FIVE YEARS. -7INSIGHT DATA LINK.COM BESIDES HAVING A MARKET CONSISTING OF 1,086,170,354 IN MANAGED SQUARE FEET, THE CORPORATIONS SERVICES WILL ALSO BE MARKETED TO THE TOP 50 RETAILERS (SUCH AS SEARS, JC PENNEY, ETC.) WHO COMBINED CONTROL NEARLY 86*/, OF MALL TRAFFIC IN THE U.S.A. AFTER THE TWO FORGOING MARKETS HAVE BEEN SUCCESSFULLY ENGAGED, IDL WILL THEN PURSUE LOCAL AND REGIONAL RETAIL OPERATIONS AND LOCAL AND REGIONAL OWNER, DEVELOPERS, AND MANAGEMENT COMPANIES (SUCH AS STRIP MALLS). -8INSIGHT DATA LINK.COM VI. ORGANIZATIONAL STRUCTURE: IDL HAS CHOSEN TO BE ORGANIZED AS A SUBCHAPTER "C" CORPORATION UNDER THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA. THIS FORM OF ENTITY, UNDER WHICH THE INCOME OF THE CORPORATION IS SUBJECT TO AN ENTITY LEVEL INCOME TAX (THAT IS, IT PAYS INCOME TAX ON ITS PROFITS, INSTEAD OF THE PROFITS BEING "PASSED THROUGH" TO ITS SHAREHOLDERS FOR ULTIMATE TAXATION AT THE SHAREHOLDER LEVEL), WAS SELECTED IN ANTICIPATION OF THE CORPORATION'S NEED TO RAISE CAPITAL FROM OTHER CORPORATIONS. THE COMMON "S" CORPORATION FORMAT POPULAR AMONGST SMALL BUSINESS CORPORATIONS SUCH AS INSIGHT DATA LINK, DOES NOT HAVE THE SAME FLEXIBILITY IN TERMS OF TYPES OF INVESTORS WHO CAN OWN SHARES OF STOCK IN INSIGHT DATA LINK. AS OF TODAY, DECEMBER 4, 2000, THE CORPORATION'S IS AS FOLLOWS: # OF SHARES AUTHORIZED: $ l PAR VALUE, COMMON, VOTING STOCK# OF SHARES ISSUED: OWNERSHIP ALLOCATIONS: SIIAREHOLDER JAMES KOVANIS MILAN KOMLIENOVIC BIOCONTROL TECH, INC. TYPE OF ENTITY INDIVIDUAL INDIVIDUAL CORPORATION # SHARES ISSUED 2,700,000 1,050,000 1,250,000 % OWNED 54% 21% 25% EQUITY 10,000,000 5,000,000 JAMES KOVANIS IS THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF IDL, WHILE MILAN KOMLJENOVIC IS THE VICE-PRESIDENT OF OPERATIONS. BIOCONTROL TECHNOLOGY, INC., IS AN INVESTOR WITH NO MANAGEMENT ROLE IN OPERATIONS WHICH IS ORGANIZED UNDER THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA AND IS ENGAGED IN THE BUSINESS OF DEVELOPING MEDICAL DEVICES AND PROCEDURES. -9INSIGHT DATA LINK.COM VII. COMPETITION: RESEARCH CONDUCTED BY THE CORPORATION REVEALS NO OTHER COMPANY WHICH OFFERS THE BREADTH AND SCOPE OF SERVICES PROVIDED BY IDL. THERE ARE COMPANIES ENGAGED IN THE BUSINESS OF OFFERING OF SIMILAR, BUT NARROWER, SERVICES, THE FIVE LARGEST OF WHICH ARE: 1. STORETRAX. 2. LOOPNET. 3. COMMREX. 4. LOCATION-NET. 5. REOLSERVICES. WHILE ALL OF THE ABOVE FIRMS ARE WEB-BASED PROVIDERS OF SITE MANAGEMENT TYPE SERVICES, NONE OF THE COMPETITORS CORPORATE RESERACH WAS ABLE TO LOCATE OFFERS SERVICES AS COMPREHENSIVELY AS IDL'S. MOST OF THE COMPETITORS, IN FACT, LIMIT THEIR SERVICES PRIMARILY TO SITE IDENTIFICATION SERVICES. THE LIMITS OF NARROW SERVICE OFFERINGS BY IDL'S COMPETITORS PROVIDE IDL WITH SIGNIFICANT ADVANTAGES, SUCH AS: 1. SIMPLE PRICING STRUCTURE (PRICING IS BASED ON READILY ASCERTAINABLE SQUARE FOOTAGE FIGURES). ALL OF THE COMPETITORS UTILIZE COMPLICATED AND TIME CONSUMING PRICING STRUCTURES REQUIRING EXTENSIVE, ARCANE CALCULATIONS. 2. IDL'S WEB-BASED SERVICE REQUIRES NO "QUERYING" FOR INFORMATION ACQUSITION PURPOSES WHILE ALL OF THE COMPETITORS INFORMATION ACCESS PROCEDURES REQUIRE CUMBERSOME QUERYING. -10INSIGHT DATA LINK.COM 3. IDL IS THE ONLY SERVICER WHICH CAN PROVIDE A COMPLETE, REAL-TIME DATA BASE OF ALL MALLS AND STRIP CENTERS. THE COMPETITOR'S DATA BASES ARE OUT-OF-DATE AND INCOMPLETE. 4. IDL IS THE ONLY SERVICE PROVIDER WHICH CAN OFFER PERTINENT INFORMATION AND DOCUMENTS, SUCH AS: A. DETAILED, PAPERLESS ARCHITECTURAL DRAWINGS. B. COMPREHENSIVE AND CURRENT SITE PLANS. C. FULL, CURRENT PHOTOGRAPHIC SURVEY. D. LEASE EXPIRATION DATES. E. BACKUP INFORMATION SUCH AS TENANT CONSTRUCTION PERMITS AND APPLICATIONS, CONTACT PERSONS, AND CONSTRUCTION MANUALS. 5. DUE TO THE COMPREHENSIVENESS OF IDL'S PACKAGE, CUSTOMERS CAN DO THEIR SITE PLANNING ON A PAPERLESS BASIS, WHILE THE COMPETITORS CANNOT SINCE THEIR SERVICES ARE PRIMARILY NARROWED TO SITE IDENTIFICATION. 6. ONE STOP SHOPPING. THE COMPETITORS HAVE LIMITED THE SCOPE OF THEIR SERVICES, WHICH INCREASES COSTS AND INEFFICIENCY. 7. MANAGEMENT EXPERTISE. THE MANAGEMENT AND STAFF OF IDL IS COMPRISED OF PERSONNEL WITH EXTENSIVE, EXPERT EXPERIENCE IN SITE MANAGEMENT, CONSTRUCTION AND SURVEYING WHILE THE COMPETITORS PERSONNEL IS PRIMARILY COMPRISED OF PEOPLE WITHOUT SITE DEVELOPMENT AND CONSTRUCTION BACKGROUNDS. -llINSIGHT DATA LINK.COM Viii. MANAGEMENT AND STAFFING PLAN: THE NATURE OF THIS TYPE OF OPERATION IS SUCH, GIVEN THE EXPERTISE OF CORPORATION'S MANAGEMENT AND EXTENSIVE TRAINING OF PERSONNEL, THAT THE MANAGEMENT-TO-STAFF RATIO IS LOWER THAN NORMAL BUSINESSES. THE USER-FRIENDLY SOFTWARE SYSTEM REDUCES THE NEED FOR CONSTANT MONITORING SINCE THE SOFTWARE SYSTEM IS CUSTOMER BASED AND DOES NOT REQUIRE SUBSTANTIAL INVOLVEMENT OF STAFF PERSONNEL DURING JOB PROCESSING. IN THE FIRST, FULL FISCAL YEAR OF OPERATION (CALENDER YEAR 2001), THE CORPORATION IS ANTICIPATING REVENUES IN THE $400,000 TO $500,000 RANGE (SEE ATTACHED FINANCIAL PLAN), WHICH WOULD REQUIRE THE ASSISTANCE OF EIGHT EMPLOYEES. HANDS ON MANAGEMENT WILL BE EXERCISED BY JAMES KOVANIS, PRESIDENT AND CHIEF EXECUTIVE OFFICER. HE WILL BE ASSISTED BY MILAN KOMJLENOVIC, WHO WILL OVERSEE OPERATION OF THE ENTIRE TECHNICAL COMPONENTS OF THE BUSINESS. AFTER THE CORPORATION ENJOYS THE REVENUES IT EXPECTS TO PRODUCE ONCE SUFFICIENT CAPITAL AND MARKETING EFFORTS HAVE BEEN REALIZED (STARTING IN THE YEAR 2002), MANAGEMENT ANTICIPATES AN INCREASE IN STAFFING NEEDS FROM EIGHT (8) TO SIXTEEN (16), FOLLOWED BY AN ADDITIONAL EXPANSION IN 2003 TO THIRTY-ONE (3 l) EMPLOYEES. MANAGEMENTS EXPECTATIONS ARE THAT ONE EMPLOYEE WILL BE REQUIRED FOR EVERY $ 100,000 IN REVENUE (EXCEPTING THE FIRST YEAR WHEN START-UP DEMANDS ARE HIGHEST), AND ONE MANAGER IS REQUIRED FOR EVERY TEN (10) EMPLOYEES, KEEPING MIDDLE MANAGEMENT COSTS LOW AND GROSS PROFIT RATIO'S HIGH. JAMES KOVANIS, THE MAJORITY SHAREHOLDER OF IDL, WILL ACT AS CEO AND WILL REPRESENT THE CAPITAL INTERESTS OF THE SHAREHOLDERS. DUE TO HIS EXTENSIVE CONTACTS IN THE INDUSTRY AND HIS EXPERTISE IN THE FIELD, HE WILL ALSO SOLICIT AND NEGOTIATE WITH THE MAJOR CUSTOMERS IDL EXPECTS TO FUEL THE CORPORATIONS GROWTH, AND WILL OVERSEE EXECUTIVE STAFF. -12INSIGHT DATA LINK.COM MILAN KOMLJENOVIC, WHO CURRENTLY POSSESSES 21% OF THE CORPORATIONS STOCK, WILL OVERSEE THE TECHNICAL OPERATIONS OF IDL AND SERVE AS GENERAL MANAGER. UPON THE ATTAINMENT OF $1,000,000 IN ANNUALIZED REVENUES, CURRENT MANAGEMENT PLANS TO ENGAGE THE SERVICES OF AN EXPERIENCED SALES EXECUTIVE TO OVERSEE AND DIRECT SOLICITATIONS OF CUSTOMERS IN ALL TARGETED MARKETS. KOVANIS AND KOMLJENOVIC BRING DIVERSE, PERTINENT, AND SUCCESSFUL EXPERIENCE TO THE MANAGEMENT TEAM. KOVANIS, FOR EXAMPLE, HAS A LIFETIME OF EXPERIENCE IN THE RETAIL CONSTRUCTION INDUSTRY, HAVING BEEN AN OWNER OF A SUCCESSFUL CONSTRUCTION FIRM, A SITE SUPERINTENDENT, FOUNDER AND OFFICER OF A SUCCESSFUL RETAIL CONSTRUCTION COMPANY, AND FOUNDER AND EXECUTIVE OF A SITE SURVEY CORPORATION. KOMLJENOVIC, ON THE OTHER HAND, POSSESSES TECHNICAL EXPERTISE IN ELECTRONICS AND TELECOMUNNICATIONS, ALONG WITH ADVANCED DEGREES IN ELECTRICAL ENGINEERING AND COMPUTER SCIENCE. HE HAS WORKED FOR PRESTIGIOUS UNIVERSITIES (CARNEGIE MELLON AND DUQUESNE), PUBLISHED A BOOK ON LOTUS, AND STARTED A PRIVATE SCHOOL TO TRAIN MEMBERS OF THE GENERAL PUBLIC IN THE USE OF COMPUTERS AND PRGRAMMING. RESUME'S WHICH DETAIL THE ACCOMPLISHMENTS OF KOVANIS AND KOMLJENOVIC ARE ATTACHED AS AN ADDENDUM TO THIS PLAN. -13INSIGHT DATA LINK.COM IX. MARKETING PLAN: DUE TO THE CLOSE KNIT NATURE OF THE INDUSTRY WHICH IDL WILL PROVIDE SERVICES TO, IDL PLANS TO MARKET ITS PRODUCTS AND SERVICES ON A DIRECT CONTACT AND NETWORKING BASIS. IT PLANS TO ALLOCATE $50,000 OF NEW WORKING CAPITAL TO MANAGE ITS MARKETING PLANS. MANAGEMENTS MARKETING EFFORTS WILL CONSIST OF SIX DIFFERENT WAYS TO MARKET ITS PRODUCTS AND SERVICES: I. BY DIRECT SOLICITATION TO THE CONTACTS WHICH HAVE BEEN DEVELOPED BY CEO JAMES KOVANIS OVER THE LAST TEN YEARS IN HIS CAPACITY AS CEO OF INSIGHT CONSTRUCTION SERVICES, INC., A NATIONAL SITE SURVEY AND CONSULTING COMPANY. MANY OF THE COMPANIES WHICH IDL EXPECTS TO LAND AS CUSTOMERS ARE CLIENTS INSIGHT CONSTRUCTION SERVICES ("ICS") CURRENTLY MAINTAINS RELATIONSHIPS WITH. ICS IS A KNOWN QUANITY IN THE RETAIL SITE MANAGEMENT INDUSTRY WHICH PROVIDES SITE MANAGEMENT SERVICES TO THE USA'S LEADING LODMAC'S AND RETAILERS, A PROCESS WHICH HAS ALSO LED TO EXTENSIVE AND ONGOING CONTACT WITH PROJECT MANAGERS, ARCHITECTS AND DESIGNERS AS WELL, GIVING IDL AN IMPORTANT ADVANTAGE: IT HAS "A FOOR IN THE DOOR." 2. THROUGH IDL'S MEMBERSHIP IN THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS ("ICSC"), IDL WILL BE ABLE TO PROVIDE FELLOW MEMBERS WITH ON-SITE DEMONSTRATIONS AND TESTIMONIALS AS TO THE EFFECTIVENESS AND EFFICACY OF ITS PRODUCTS AND SERVICES. THE ICSC PROVIDES A FORUM THROUGH REGIONAL AND NATIONAL CONVENTIONS FOR MEMBERS TO NETWORK AND DISPLAY ITS WARES. GIVEN THE TIGHT KNIT NATURE OF THE INDUSTRY, EXHIBITIONS AT REGIONAL AND NATIONAL CONFERENCES, WHERE MANY, IF NOT THE MAJORITY OF DEALS ARE MADE, IS A LOW COST METHOD OF OBTAINING PENETRATION IN THE CORPORATIONS TARGET MARKETS. -14INSIGHT DATA LINK.COM 3. INTERNET-BASED MARKETING. INTERNET-BASED MARKETING, PRIMARILY THROUGH LINKS PROMOTION WITH RETAILERS, LODMAC'S, ARCHITECTS, ENGINEERS, DESIGNERS, VENDORS, CONTRACTORS, PROJECT MANAGERS, AND MATERIAL AND SUPPLIES VENDORS, IS ALSO A LOW COST AND EFFECTIVE MEANS THROUGH WHICH TO SPREAD THE WORD AND OBTAIN INTEREST IN THE BENEFITS OF USING IDL FOR SITE MANAGEMENT PURPOSES. 4. MEMBERSHIP IN THE INSTITUTE OF STORE PLANNERS ("ISP") PROVIDES IDL WITH THE SAME BENEFITS MEMBERSHIP IN ICSC PROVIDES. LIKE THE ICSC, THE ISP IS A CLOSE KNIT COMMUNITY OF THE LARGEST RETAILERS IN THE COUNTRY. ICS HAS HISTORICALLY CLOSED MANY OF ITS DEALS AT THE REGIONAL AND NATIONAL CONVENTIONS WHICH HAVE BEEN SPONSORED BY ICSC AND ISP, IS A KNOWN COMMODITY THROUGHOUT BOTH TRADE GROUPS, AND EXPECTS THAT ITS RECOGNITION AS A LEADER IN THE SITE MANAGEMENT INDUSTRY WILL FOSTER GREAT INTEREST IN IDL'S PRODUCTS AND SERVICES AS WELL. 5. EXPANDING THE REACH OF ITS PRODUCTS AND SERVICES TO COMPANIES WHICH SERVE REGIONAL AND LOCAL MARKET NICHES, SUCH AS TO INDEPENDENT, TRADITIONAL REAL ESTATE BROKERS AND FIRMS, IS A LOGICAL OUTGROWTH OF IDL'S INTIAL EFFORTS TO PROMOTE ITS PRODUCTS AND SERVICES TO LARGE LODMAC'S AND RETAILERS, FOR REGIONAL AND LOCAL FIRMS OFFER AN EXCELLENT MECHANISM FOR PENETRATING MARKETS WHICH IN THE BEGINNING PHASES OF OPERATION ARE MOST COSTLY TO PENETRATE, BUT WHERE THE NEEDS OF THE SERVICES MAY INDEED BE GREATER. -15INSIGHT DATA LINK.COM 6. TECHNICAL EXPERTISE IN SOFTWARE DEVELOPMENT PROVIDES IDL WITH THE ABILITY TO ADAPT, AT LOW MARGINAL COST, ITS PRODUCTS AND SERVICES TO NICHE MARKETS. NICHE MARKET PENETRATION PROVIDES A CORPORATION WITH THE ABILITY TO STANDARDIZE MANY OF ITS FUNCTIONS, MAKING PERSONNEL AND MARKETING MANAGEMENT EASIER AND MORE PROFITABLE. EXPANDING THE REACH OF ITS PRODUCTS AND SERVICES ALSO REDUCES THE RISKS INHERENT WITH NARROW PRODUCT AND SERVICE REACH SINCE PRODUCT AND SERVICE EXPANSION BROADENS THE REVENUE BASE. SPECIFIC INDUSTRIES WHERE IDL CAN CUSTOMIZE ITS PROGRAM (CUSTOMIZATION BEING ONE WAY TO EXPAND MARKETING AND BROADEN THE REVENUE REACH) INCLUDE THE FOOD AND BEVERAGE INDUSTRY, OFFICE COMPLEXES, WAREHOUSES, AND FRANCHISED OPERATIONS). IM SUMMARY, THE UTILIZATION OF CURRENT CONTACTS, TRADE GROUP ASSOCIATION, INTERNET-BASED MARKETING, AND CUSTOMIZATION OF PRODUCT AND SERVICE TO NICHE MARKETS, PROVIDES IDL WITH EFFICIENT WAYS TO MARKET ITS PRODUCTS AND SERVICES TO A LARGE, DIVERSE POTENTIAL CUSTOMER BASE WITHOUT THE EXPENDITURE OF INEFFICIENT RESOURCES TYPICALLY ASSOCIATED WITH SMALL FIRMS ATTEMPTING TO GET ITS PRODUCTS AND SERVICES DISTRIBUTED. THE BARRIERS TO ENTRY AFFORDED BY THE INTERNET WHICH HAVE MADE IT DIFFICULT FOR SMALL FIRMS TO COMPETE IN THE PAST HAVE BEEN GREATLY REDUCED, AND IDL IS IN POSITION THROUGH THE ABOVE TO MINIMIZE SUCH BARRIERS. -16INSIGHT DATA LINK.COM X. FINANCIAL PLAN: DETAILED STATEMENTS ARE ENCLOSED TO THE BUSINESS PLAN IN WHICH THE CORPORATIONS RECENTLY AUDITED FINANCIAL STATEMENTS AND PRO FORMA CASH FLOW PROJECTIONS, BALANCE SHEET, AND STATEMENTS OF INCOME, RESPECTIVELY, ARE ATTACHED, ALONG WITH THE ASSUMPTIONS USED TO PREPARE THE PRO FORMA STATEMENTS. THE MOST SALIENT ASPECTS OF THE CORPORATIONS FINANCIAL PROJECTIONS ARE AS FOLLOWS: 1. PROJECTED ENDING CASH ON HAND AT THE END OF THE THIRD FISCAL AND CALENDER YEAR IS EXPECTED TO BE OVER $1,000,000. 2. SINCE PAYMENTS TERMS ARE TO BE MADE ON A CONCURRENT BASIS, LITTLE, IF ANY, ACCOUNTS RECEIVABLES ARE EXPECTED, PRODUCING A BALANCE SHEET WITH GREATER THAN AVERAGE WORKING CAPITAL RATIOS. 3. DUE TO THE CAPITAL DEMANDS ASSOCIATED WITH BEING A START-UP, ALONG WITH EXPECTED LAG TIME BETWEEN FORMAL INTRODUCTION OF THE PRODUCTS AND SERVICES TO THE MARKETPLACE AND SATISFACTION OF CORPORATE MARKET SHARE AND REVENUE ACQUISITION OBJECTIVES, IDL EXPECTS TO SHOW A NET OPERATING LOSS IN ITS FIRST CALENDER YEAR OF OPERATIONS. 4. SUBSEQUENT TO THE ONE YEAR START-UP PERIOD, IDL PROJECTS PROFIT OF MORE THAN $210,000 IN YEAR TWO (ON SALES OF $1,400,000) AND PROFITS OF MORE THAN $743,000 1N YEAR THREE (ON SALES OF $3,370,000). SINCE MANAGEMENT EXPECTS IT MAY TAKE THREE YEARS TO SATISFY ITS MARKET PENETRATION OBJECTIVES, IDL FORECASTS IN THE YEAR 2003 SHOULD APPROXIMATE A "'NORMAL" PICTURE OF ITS EXPECTED, ONGOING FINANCIAL CONDITION (NET PROFIT PERCENTAGE BEFORE TAXES OF OVER 35%). 5. THE CAPITAL DEMANDS OF THE CORPORATION APPROXIMATE $550,000 OVER THREE YEARS. -17INSIGHT DATA LINK.COM IN ORDER TO REDUCE THE RISKS ASSOCIATED WITH LEVERAGING, AND CONSISTENT WITH MANAGEMENTS HISTORICALLY CONSERVATIVE MANAGEMENT OF ITS AFFAIRS, MANAGEMENT PREFERS TO RAISE CAPITAL ON AN EQUITY BASIS. AS FOR THE PROFIT DISTRIBUTION POLICY OF THE CORPORATION, MANAGEMENT WISHES TO ISSUE DISTRIBUTIONS ON A QUARTERLY BASIS AFTER PROVISIONS FOR TAXES, WORKING CAPITAL, AND CAPITAL REINVESTMENT NEEDS HAVE BEEN MET, WHICH IT EXPECTS TO MEET STARTING IN YEAR THREE. THE CAPITAL ASSETS OF THE CORPORATION WILL CONSIST PRIMARILY OF SOFTWARE DEVELOPMENT COSTS AND ASSOCIATED SYSTEMS HARDWARE. SOFTWARE COSTS WILL BE WRITTEN OFF OVER THREE YEARS, WHILE HARDWARE COSTS WILL BE DEPRECIATED OVER A FIVE YEAR PERIOD ( ALTHOUGH HARDWARE COSTS MAY BE DEDUCTED OVER A THREE YEAR PERIOD ONCE GREATER DEVELOPMENT IN STANDARDS FOR DEPRECIATING THE ASSETS FOR INTERNET BASED COMPANIES CONTINUE TO EVOLVE). COMPENSATION TO KEY EXECUTIVES ARE PLANNED TO CONSIST OF AN ANNUAL SALARY TO THE CEO OF $75,000, ALONG WITH HEALTH BENEFITS, PLUS INCENTIVE COMPENSATION EQUATING TO 5% OF REVENUES. SALES AND GENERAL MANAGERS ARE EXPECTED TO COMMAND ANNUAL SALARIES OF $52,000, PLUS INCENTIVE COMPENSATION RANGING FROM 1% OF REVENUES TO 2.5% OF REVENUES., WITH FULL HEALTH COVERAGE AS WELL. THE BULK OF REVENUE PRODUCED DURING THE FIRST THREE YEARS OF OPERATION IS EXPECTED TO BE DERIVED FROM THE SALE OF IDL'S SITE MANAGEMENT SOFTWARE TO LODMAC'S AND LEADING RETAILERS, WITH ANCILLARY REVENUE STREAMS TO BE PRODUCED FROM SITE SURVEY AND BLUEPRINT POSTING ACTIVITIES DUE TO ANTICIPATED CROSS SELLING SYNERGIES. BECAUSE OF THE POTENTIAL FOR GREATER REVENUE PRODUCTION ASSOCIATED WITH SERVICING LODMAC'S, GREATER EFFORT WILL BE DIRECTED TOWARDS LODMAC'S, PRODUCING, IN TURN, A REVENUE PICTURE WHICH IS WEIGHTED WITH LODMAC BASED REVENUE. -18-