Sample Business Plan Vision Cast

The lnternet Broadcast & Communications VisionCast ommunications C LLC 55 Freemont Road Enfi¢ld, Connecticut 06(02 (860) 253-9407 Network Confidential Business Plan InformationprovidedbyVisionCastCommunications LLC, VisionCast.com, or it'spartnersin thiscorrespondence verballyis confidentialand proprietary or businessinformation;therefore,reader agrees notto discloseit withoutthe expresswrittenpermission VisionCastCommunications of LLC. Scott R Wyllie President & CEO 1.0 Executive Summary VisionCast Communications, a Connecticut, USA company has found a niche under-developed market by which to offer media rich & audio/video streaming technologies that will provide Internet users with viable solutions to traditional web based content, web based entertainment, and an unlimited use of real time streaming technology solutions. Utilizing satellite and streaming audio video technologies we are producing an on-line media network that will enhance cable & TV broadcasts. Our websites will be creative, interactive, and technologically advanced tools for business and pc users to communicate, conduct business, and experience unique web experiences. The sites or "web-network" plans will include gateways for Internet users to access live & on-demand on-line cinema movies and previews, short films, theatre, pay-per-view special events, music videos, interactive games, live news and syndicated broadcasts, religious programming, sporting events, and educational programming as well as the ability to view on-line travel videos & other specialty solutions. Additionally, our plans include a retail e-commerce site for the purchase of products within the network. By developing its web-network as a unique, creative, and productive destination it will generate Internet traffic and revenues. By focusing on our core objectives, marketing strategy, and accomplishing strategic alliances, Visioncast.com is a natural evolution for the Internet e-commerce multi media environment. As the Internet changes and technologies evolve, VisionCast will provide core content to the Internet with cutting edge technology. 1.1 Objectives Development of a "Best in Class" e-commerce web site capable of providing high quality, high resolution, broadband & satellite streamed audio/video feeds for multiple users and user groups. Establish and develop strategic alliances to accelerate successes through mutual collaboration and partnership. Continually improving the quality, effectiveness, and value of VisionCast Communications operations. Develop a strong brand recognition and market share through aggressive market penetration, strategic partnering, and customer satisfaction. Continually develop a strong business valuation to attract additional investment to Visioncast.com 1.2 Mission The mission is to constantly improve the quality, effectiveness, and value of our operations, while continually providing the company with the resources to facilitate its growth. Visioncast.com will enable high quality media rich & streaming audio/video web-casting capabilities to both business and private sector clients. VisionCast.com will provide end-users a web-based progressive media to enhance and assist in the accomplishment of their goals. Visioncast.com will progressively engage in enhancing the quality of life of its employees, their families, and the community. 2.0 Company Summary VisionCast Communications utilizing the latest Internet-based technologies and audio video webcasting capabilities has formed Visioncast.com to provide Business to Business and Business to Consumer web-casting and digital web-cast solutions to facilitate media rich & streamed audio video web-casting of a diverse mix of web based audio/video solutions. Our website will be a creative, interactive, and a technologically advanced tool for business and pc users to communicate, conduct business, and experience unique audio/visual web-casts that will include live & on-demand on-line cinema movies and previews, short films, theatre, pay-per-view special events, music videos, interactive games, live news and syndicated broadcasts, religious programming, sporting events, and educational programming as well as the ability to view on-line Inforn_tion providedby VisionCast Communications LLC, VisionCast.com,or it's partnersm this correspondenceis confidential and proprietarybusiness inforr_tion; therefore, reader agreesnot to disclose it without the express written permission of VisionCast CorrmmnicationsLLC.Any use of any informationin part or m fullis prohibited. travel videos & other specialty solutions.The strategy isto develop the web destination as a portal to a complete mix of branded products. Utilizing the internet as a back-bone it is a realistic assumption that VisionCast can become the premiere broadcast site of the Internet. Visitors & subscribers will be able to access an array of services and products (web-cast events) through this portal. To best visualize the site we will build the structure to resemble a television network. Users would be able to access Visioncast.com and link to multiple links offering audio/video broadcasts. 2.1 Company Ownership VisionCast Communications is a Connecticut company with its headquarters in Enfield, Connecticut. VisionCast Communications is in the process of legally filing its articles of incorporation and legally owns the rights to use VisionCast.com. The company was organized in 2000 and its primary shareholder and CEO, Scott RWyllie, currently owns 100% of the common stock. VisionCast Communications is actively soliciting capital, technical, and content partners to invest in or acquire 25% to 49% of VisionCast Communication common stock. The purpose of the capital investment is to invest in the growth and infrastructure, operational and administrative expenses, and for possible acquisition and merger of competing companies. 2.2 Management Summary VisionCast Communications willbe a progressive organization committed to the accomplishment of its goals. To achieve these objectives, the President & CEO will aggressively develop and manage emerging business opportunities and strategic alliances, while managing the daily administrative operations. In addition, a management team will be formed to develop strategies for continued sales growth, organizational development, and customer relations, while assisting in the daily management of operations. Together, the management team will provide the resources required to maximize the goals and objectives of VisionCast Communications. Executive Management Team Scott R Wyllie, President& CEO As founderof VisionCastCommunications and the VisionCast.comidea, Scott is active in developingemergingbusinessopportunitiesand soliciting strategicalliances,in additionto managing the VisionCast project, He is aggressively developing a management team to assist in the operational and technical aspects of the company. More Recently, As Vice President & Controller of a U.S. industrial manufacturer & distributor, Scott plays a key role for the development and operations of the company. After attending Iona College in New York, Scott moved to Connecticut to pursue opportunities in the new technologies. Utilizing his systems knowledge and business experience Scott assisted in many successful start-up companies as a business & technical consultant. Glen Jordan, Director Glen is currently the director of a number of companies including IntaVision, istudy4.com and Evalunet. Glen is the founder of successful companies with a focus on the new media use of Internet technologies including high bandwidth satellite delivery, e-learning, and niche "broadcast" applications. Trained in systems development, Glen moved through the programming and systems analysis roles into general management and consulting. Well known for his passion in the new media and Internet technologies and the opportunities that they offer, he has worked with, and delivered papers to, bodies such as the World Bank and United Nations. Glen was one of the founding members of the Telematics for African Development Consortium initiative and is a founder and trustee of the M-Powa Foundation. The Foundation utilizes high bandwidth Internet technology for the enrichment of disadvantaged communities. He is also involved with a crosssector practical research project forming part of the Canadian Acacia initiative. Inforn_tion provided by VisionCast Con'nmmications LLC, VisionCast.com, or it's partners in this correspondence is confidential and proprietary business inforxmtion; therefore, reader agrees not to disclose it without the express written permission of VisionCast Commmicadons LLC. Any use of any information in part or in full is prohibited. 2.2.1 Personnel Planning Initially,VisionCastCommunications willsubcontract technologicalprojects that require extensive web development expertise. As VisionCast Communications grows we will be generating employment opportunities based on actual employment requirements. 2.3 Start-up Summary VisionCast Communications is committed to dominance in the Internet marketplace. Visioncast.com will incur aggressive developmental costs associated with the start-up of a technology related Internet entity of approximately $150.000.00 USD. VisionCast Communications, to achieve dominance in the market place, will rely primarily on the development of strategic partnerships to assist with website development, brand recognition, and website promotion. The key to the success of the business model depends on the ability to attract strategic and technological partners to develop the site. Attraction of users to the website destination will be essential to the overall success and profitability of the project. The website will be a dynamic, technological, and comprehensive project that will include many complex and value-added services. The design and programming of the site will be costly due to the nature of the site, but will be a justified investment in the future of VisionCast. Costs of the initial design and development of the website can be deferred and minimized through strategic partnering with companies outside the continental US where labor and technology costs are reduced from currency valuations. The administrative and fixed operational expenses including payroll, rents, insurance, and office ancillary expenses will be relatively low. STArT.UPEXPENSES Legal Domain Expenses Administrative Website Development Website hosting Advertising Blitz Research and development Expensed equipment Other Total Start-up Expense $2500 $350 $2,000 $75,000 $8000 $30000 $3000 $24,000 $8000 $150350.00 Information provided by VisionCast Communications LLC, VisionCast.com, or it's partners in this correspondence is contidential and proprietary business information; therefore, reader agrees not to disclose it without the express written permission of VisionCast Conmmnications LLC. Any use of any information in part or in full is prohibited. 3.0 Website Plan The strategic plan for buildingthe website is to provide users with a user friendly, unique, and productive web experience. VisionCast.com will be a multi-level web destination and e-commerce site dedicated to the broadcast of audio/video media rich & streaming technologies targeted to Internet users. The marketing of the site will evolve from a traditional informational site to an interactive multi-functional communication tool for business and pc users utilizing the latest and greatest digital audio and visual technologies. VisionCast.com will build an impressive webnetwork that will attract users and generate progressive traffic patterns. The site will be linked to multi-level value-added services, both subscriber paid and free. The strategic goal is to attract a subscriber base for paid services and an advertiser base for free services. • Free access website A site for registered users that will include free access to audio/video web-casts, both live and pre-broadcasts (on demand), cinema movies and previews, short films, theatre, pay-per-view special events, music videos, interactive games, live news and syndicated broadcasts, religious programming, sporting events, and educational programming as well as the ability to view on-line travel videos & other specialty solutions. This segment of the web-network will be a unique, colorful, and impressive web destination that will be heavily marketed as the "best site on the web". The content of this site will attract many users and measurable hits. Users will be capable of viewing audio/video streams through this site. Primary revenue streams will be generated by paid advertising. • Paid subscriber based website This modelwillbe a dynamicwebsiteby whichuserswillbe capable of viewingtrainingand educationalseminarsas well as pay-per-viewevents that are live or pre-broadcastthroughthe site. StrategicallianceswitheducationaVtraining producersand licensingagreementswith major contentproviderswillprovidefor content.The target market willbe a dynamic.Corporateusers willbe searchingfor an innovative,lowcost way to provideeducationalseminars,classes,or employmenttrainingthroughliveor taped web-casts. Internetend userswillbe lookingfor an alternateremotesolutionto traditionalmedia broadcastplatforms. he diversityof thisplanallows T for a multitudeof variationsof content.Primary revenuewillbe generatedthroughonlinesalesof contentto end-usersand from purchasesof productsthroughour e-commerceweb store. 3.1 Business Model The business model is multi-leveled and based on the production of audio/video web-casting to Internet based target audiences, through the websites. Because the site is also intended to increase brand equity, provide unique web-cast services, and deliver web-cast solutions, we are anticipating and preparing for high traffic volume. The website will be a fully functional ecommerce site capable of secure connections for ach and other electronic commerce. The business model requires a continuing investment in the progressive development of technologies to provide clients and users with a unique web experience and ensure the quality of the VisionCast product. The anticipated structure of the website will include 2 tier levels relating to the core business model. *Free web-casts of entertainment events, general information, and other special events, which will generate user traffic and attract paid advertisers. *B2B web-casting solutions that will generate revenues based on user purchases of audio/video solutions. I anticipate operating at a net loss for at least a 2 to 3 year period while building traffic, site recognition, and developing a long-term position in the marketplace. 3.2 Website Positioning Information provided by VisionCast Commmications LLC, VisionCast.com, or it's partners in this correspondence is confidential and proprietary business information; therefore, reader agrees not to disclose it without the express written permission of VisionCast Conmmications LLC. Any use of any infom_tion in part or in full is prohibited. The unique and creative design, website promotional activity, and product viability and quality is critical to this company. VisionCast.com should be the best reviewed website in our category, easily accessible, and established as a leader in the market, continually providing essential products and services to satisfy customers needs. VisionCast.com should be able to distinguish itself within the market as a leader in B2B and B2C audio/video media rich & streaming web-cast solutions. Position will be determined by the investment in the website design, functionality, and creativeness. It is important strategic alliances compliment the website and promote the website. A strong strategic alliance is as important as a strong business model. 3.2.1 User and Traffic Forecasts Despite the explosive growth of the Internet, approximately two-thirds of the US population are not accessing the web, vet. E-commerce and Internet usage is exploding and growing quickly into the first decade of the new millennium. Transformations in technology will accelerate the net economy. Business will respond to the demands of the net economy with an increased emphasis on relationships and shared information. According to the latest online statistics by intelliquest research, 79.4 American adults or 38% of the US population are surfing the net. In 1999, 50% of US households had a PC. On average, online computer users spend six to eight hours a week surfing the net. Within the United States, corporate spending on the Internet will surpass $250B in 2002, an increase of over 40% from 1999. Global economies are emerging from the Internet making e-commerce a viable business medium. Although the statistics portray market penetration and visibility to be strong, the viability of attracting a substantial percentage of users is a function of intense promotion and strategic partnering. The plan is to promote the site traditionally, creatively, and through the development of strategic alliances. Given the right alliances and effective marketing plans, traffic should increase exponentially within one year. We plan to utilize our location and achieve most of our traffic through strategic alliances. Recent projections of global Internet usage and PC usage is progressive. Globally, users are accessing the Internet for business and personal experiences at an explosive rate. 3.3 Progressive Website Development Technology and the Internet is continually evolving and changing the way we conduct business. Our strategy for the future is to be on the cutting edge of technology, while remaining a dynamic organization with the flexibility to adapt and transform the business model to new ideas and profitable opportunities. 4.0 Market Analysis Summary VisionCast Communications through VisionCast.com will market a premium quality, media-rich communication tool and integrated communication solutions via our websites that will enable businesses and consumers to realize the benefits of video, voice, and data over converging networks. In 1999 US Businesses spent an estimated $220 million annually on providing employees with training and career advancement education. The consumer entertainment industry exceeds $15 billion annually. E-commerce by 2002 is expected to be responsible for 1.3 trillion business dollars. As the Internet expands commerce and provides business with emerging global environments, our audio/video media rich & streaming e-commerce solutions are viable alternatives. 4.1 Market Segmentation Information providedy VisionCast Conmmmcations LLC, VisionCast.com, or it's partners in this correspondence is confidential b and proprietary business infortmtion; therefore, reader agrees not to disclose it without the express written permission of VisionCast Conm'amications LLC. Any use of any infornmtion in part or in full is prohibited. Industryforecasters estimate only 37.1% of organizationsacross all industrysectors have ecommerce capabilities. Though consumer online purchasing is leading the news, analyst predict that the big money in e-commerce will change hands between businesses. Research estimates that by 2003, consumers will spend $108 billion to buy goods online, while businesses will account for $1.3 trillion. The primary market will consist of individual users who will attract the attention of larger businesses looking to promote products to these consumers. Alternatively, a second market will consist of companies, its employees, individuals internet users, and their families looking for alternative remote audio video solutions. These markets, looking for less costly, more productive, and convenient alternatives to traditional methods will radically increase as the Internet becomes the media for conducting business. E-commerce forecasts for the United States identify an increase in users buying goods and services over the Internet to exceed 64.6 million by 2002. Lower priced personal computers and free ISP services have contributed to 50% of US households having personal computers and Internet access. Utilizing audio/video media rich & streaming technologies, Visioncast.com, thru linked websites and strategic alliances ,will provide users with unique web based experiences including live and pre-broadcasts (on-demand) of cinema movies and previews, short films, theatre, pay-per-view special events, music videos, interactive games, live news and syndicated broadcasts, religious programming, sporting events, and educational programming as well as the ability to view on-line travel videos & other specialty solutions. Market Analysis Potential Customers Large Business US Small Business US US PC Users World Total Growth 2000 2001 2002 2003 2004 CAGR 10% 15,000 16,500 18,150 19,965 21,962 10.00% 10% 65,000 71,500 78,650 86,515 95,167 10.00% 5% 18,600,0 19,530,0 20,506,5 21,531,8 22,608,4 5.00% 00 00 00 25 16 2% 260,000, 265,200, 270,504, 275,914, 281,432, 2.00% 000 000 000 080 362 2.21% 278,680, 284,818, 291,107, 297,552, 304,157, 2.21% 000 000 300 385 907 Market Analysis (Pie) [] • • LargeBusiness US SmallBusiness US US PC Users World 4.2 Market Strategy Infccmatic_ provided by Visi_aCast Communications LLC, VisionCast.com, or it's partners in this correspondence is c_3fidential and proprietary business infca'matic_; therefore, reader agrees not to disclose it without the express written permission of VisionCast Conmmnications LLC. Any use of any information in part or in full is prohibited. J The target marketsare strategic. The core businessmodel confidentlyassumes Internet users wouldbe excitedand willutilizea site thatoffers a widevariety of entertainmentservicesincluded in the VisionCastwebnetwork.It also assumesthat if the site trafficis substantial,attractionof contentprovidersand paid advertiserswillbe progressive.In addition,it alsorealizesa marketfor small& large businesses,individuals,and otherorganizations thatare lookingfor e-commerce solutions traditionalservices of audio/video.Based on economical nd logistical ariables, to a v users are open to a new technology.It also assumesthat the growthof on onlineusers, alternative,creative,and uniqueways to communicateand entertain, willbe viablealternativesto traditionalmedia platforms.As technology evolvesand Internetcommunication enhancedvia is the highspeed functionalityoffered by broadbandand (wireless)satellitedistribution,the attractionof these usersto our websitewillgenerateverticaladvertisingrevenueopportunities. 4.3 Industry Analysis The ProcessingSystems/ApplicationSoftware industrydevelops, manufactures, and markets technological devices, software, and ideas designed to facilitate communication. The industries are very broad and include many diverse business organizations including companies providing video conferencing solutions to corporations for in house communications, audio/video hardware solutions,and information services to facilitate communication between largerorganizations. In addition, audio/video streaming content is provided by a broad spectrum of providers throughout the Internet. The strategy is to bring it all together in one place for users to see. This will provide a unique service to the customer base, which will provide VisionCast with a substantial asset for viability in the future. The nature of the Internet turns the traditional marketplace into a global environment. Strategic alliances with progressive technology partners will enhance the ability of VisionCast to successfully compete and dominate within this new marketplace. 4.3.1 CompeUUon Although there are organizationsthat offer a wide variety of audio/videostreaming and media rich web-casting services, Visioncast.com is distinct and will offer unique services, which thus far, are only offered through traditional media methods and platforms. There is no doubt VisionCast will compete with companies offering traditional delivery methods of audio/video feeds in video and CD content. The focus will be to provide unique Internet promotions, entertainment services, and other unique application of audio/video streaming webcasts that are accessible remotely via the web and satellite distribution. We will form strategic alliances with these organizations to identify shared technology opportunities which will reduce the impact of their competition and facilitate mutual growth. In turn, VisionCast will also compete against established companies that are offering software and hardware solutions for point to point live and pre-recorded video broadcasts through traditional media methods. These companies operate through a distribution network and deal primarily as a product supplier exclusive of an Internet website solutions. The VisionCast website will be interactive, offering the user creative and unique web-casting experiences. The markets for audio/videoweb-castingservices are competitive and rapidlyevolving. Companiesofferaudio/videostreamsas a part of their websitemix. These services enhancethe website.The future willbringwebsitesdedicatedto the transmission and broadcastof real time audio and video. Forsalesof theseservices to businessesand consumers,VisionCastwill competeprincipallyagainsttraditionalcompanieslike NBC, ABC, Cox Communications, SPN E sports networkand others.In addition,willcompeteor maycompetewith internetweb-casting consulting and applicationsolutionproviderssuchas Polycom,V'I'EL, Picturetel, AdventureTV.comand others.Forthe provision Internetaccess and services,we willcompete of InfezmalJon provided by Visie_lCast Comnmnications LJ.,C, VisionCast.com, or it's Farmers in this correspondence is confidential and proprietary business informatica; therefcce, reader agrees not to disclose it without the express written permission of VisionCast Communications LLC. Any use of any information in part or in full is prohibited. with a variety of entities including online services, traditional Internet service providers, cable companies and telecommunications providers. Additionally, traditional vendors may reduce their prices to compete with VisionCast at its price points or offer additional services. There are relatively few barriers preventing competitors from capitalizing on the convergence of the technology and Internet markets. As a result, new integrated computing and Internet services offerings pose a threat to the business. This market is new and subject to rapid change, including the introduction of new technologies, price declines and well-funded promotional campaigns. As we begin providing service, we will compete with many large companies that have substantially greater market presence, financial, technical, marketing and other resources than VisionCast. Potential competitors include the following: established online services, such as America Online, Microsoft Network and Prodigy; local, regional and national Internet service providers, nonprofit or educational institutions providing service; national telecommunications companies, including AT&T, MCI WorldCom and GTE; regional Bell operating companies, including BellSouth and SBC Communications. The consolidation of existing competitors, new entrants to the PC and Internet service markets or alliances between vendors and Internet service providers may result in greater competition. Competition is likely to remain intense as large, diversified telecommunications and media companies acquire Internet service providers, as Internet service providers and vendors merge and as Internet service providers consolidate. 4.3.2 Internet Presence The uniqueness of Visioncast.com positions the website very favorably. Industry wide websites exist but target different markets. Website designers often integrate video streaming technologies into the destination site, but there are no statistics that identify similar business models. Traditional media companies have developed websites that are informational in structure and provide proprietary web-casting content. The strategy is to partner with these organizations to leverage position. In addition, we will market the site aggressively through traditional media, trade publications, and web advertising. Secondary target markets are less defined, therefore, our competition is less defined. Internet solutions are dynamic and evolving on a continual basis. Strategic alliances within horizontal and vertical markets can ensure Visioncast.com will be a long-term provider of Internet web-casting solutions. 5.0 Strategy and Implementation Summary VisionCast management must make strategic alliances with internet and traditional business partners. These alliances will reduce investment costs while increase exposure and create greater website positioning and traffic. Traffic forecast are optimistic, but the true measure of the success will be the ability to attract users to a unique, creative and functional website destination. VisionCast must continue to build a relationship with its strategic partners and customers that reflect its core business objectives. Building long-term relationships with its clients and making them understand the added-value of the service will be a key objective. Remaining focused on target markets, providing outstanding value-added services, and understanding the objectives are critical. Website positioning and marketing efforts must focus on brand recognition. Businesses and consumers must know who we are and what we do. Aggressive marketing and promotional programs are critical to ensure we communicate this message. 5.01 Brand Recognition & Development Brand recognition and site development are critical to the marketing of VisionCast.com. Our branding is unique and creatively reflects our core objectives. Development and marketing of these brands will solidify the VisionCast product. Information provided by VisionCast Conmamications LLC, VisiouCast.com, or it's partners in this correspondence is confidential and proprietary business information; therefore, reader agrees not to disclose it without the express written pernfissiou of VisiouCast Conm'amicatious LI.,C. Any use of any inforn_tion in part or in full is prohibited. • CinemaCsst a site link where userswillbe able to access movies, films, theatre releases,previews,shortfilms,documentary's and reviewsetc. Userswillbe able to submitfilmsfor publishing. IntelliCast Userswill be able to access broadcast seminars (satellite technologies),pre-tapedtraining,and educational vents. On sitestorefor purchase e of products,cd's, booksetc.A subscription/fee based sitethat willallowusersto accesson-lineseminars,trainingclassesetc. on-linestore for purchaseof products related.This iswhere the stylechangesfrom consumerto corporate.Accessfees will be based on content. GameCast a site where userscan asseson-linevirtual games, casinos,game downloads,on-linestoreto buy merchandise,and chat rooms NewsCast a site users willbe able to access live and taped international, lobal, g and local news& weather. WebCsstTV a site where userscan view real time/taped entertainmentincluding free movies,pay-per-viewmovies,realityTV,"IV syndicatedprogramming, alkshows t etc. MusiCast a sitefor watchingon-linemusicvideos, pay-per-viewconcertsand specialtyprogramsrelatedto the industry. FaithCsst a religiousorientedsitededicatedto on-linereligiousevents, cyberservices etc. Securesite for on-linedonationsetc SportsCast a site for usersto access live& taped sportingevents (Olympicsetc) Pay per view events, and other relatedrichmedia & streamingaudio& video TravelCsst a site for usersto travel theworld utilizing audio videoto view unique traveldestinations,book a vacation,schedulea trip ExtremeCsst a sitefor usersto watchextreme videos,realityTV etc. and submit videos • • • • • • • • • 5.1 Strategic Alliances VisionCastCommunicationunderstandsthat by buildingstrong, strategic businessalliances, it ensurescontinuedgrowthof the businessmodel.StrategicallianceswillprovideVisionCastwith the resourcesto establishand promotethe company.Sharingtechnologies and resourceswill levelthe Internetplayingfield, increasevisibility,and accelerategrowthof the productsand services. Initially, e hope to form strategicallianceswith Internettechnology w companies, softwareand videoproducers,and traditionalbroadcastentertainmentprovidersto provide technological esourcesand productcontentmaterialfor web-castingpurposes. The industries r we willtarget are diverseand offer manydifferentopportunities the businessplanto progress. for The next stageof the planis to partnerwith a widevariety of entertainmentprovidersin an effort to producequalitylive/pre-broadcasts specialevents,sportingevents etc. This willprovidea of strongusertrafficpattern,whichwillgenerate large paid advertiserinterest. • IntaVision is a subsidiary the NaspersGroupof Companies.www.lntaVision.com of www.Naspers.com Naspers,a companywitha salesof R5.7 billionper annum, is one of SouthAfrica'sleading organizations,with extensive interestsin the publishing,media,technology, elevisionand t Infccmation providedby Visi_Cast Co_mmnications LLC, VisionCast.com, or it's partners in this correspondence is confidential and proprietary business inforn_tion; therefore, reader agrees not to disclose it without the express written permission of VisionCast Communications LLC. Any use of any inforn_tion in part or in full is prohibited. educationsectors.Its interestsincludesuchcompaniesas M-Net, IntaVision,Multichoice,M-Web and Die Burgerto name a few. IntaVisionis the leadingproviderof Web-Based solutions for: Live and on-demandWeb-Based Training Learner ManagementSystems • Web-Based Course Creation • Adventure TV a relationship was established providesyndicatedcontent to 5.2 Competitive Edge The competitiveedge is the basic core positioningof the businessmodel and website design. By buildingstrategicalliancesand progressivebusinessrelationships with clientswe willeffectively providedefenses againstcompetition.As a uniqueand creativewebsitedestination,we feel we willhave createda nichemarket.As e-commerceexplodes,emergingopportunities never before availablebecomeviablebusinessentities. Our uniqueideas, innovativeand creativewebdesign, managementinitiative,and motivationwillencourageand drive VisionCastCommunications be to successful• 5.3 Sales Strategy Aggressivewebsite promotion and strategic alliance with perspective businesspartners will position the website favorably. As we progress into a technological revolution, new and creative ideas need to be promoted effectively. We need to provide perspective clients and customers with a proven value-added service. Sales should increase proportionately with our promotional efforts. Because the Internet introduces a global economy, and continues to expand, the growth potential is exponential. Our sales philosophy is simple: honesty, integrity, and satisfaction are the brick and mortar of our plans. We will be providing an exceptional tool that is unique and practical. We will always be customer oriented, ethical, and honest in dealing with our customer community. 5.3.1 Sales Forecast The important element of our sales forecasts are reflected in the attached tables and charts. Sales will increase exponentially as we establish our Internet presence. Assuming our target market is ready and capable for cutting edge technology, and we can form strategic alliances within the industry, sales will be strong. Assuming that, based on US forecasts of active Internet users (79.4 million adults or 38% of the US population age 16 or older are on line), is accurate and Visioncast.com attracts only a small percentage of Internet users, unique user sessions and sales will increase proportionately. Sales Forecast Sales Webcast Advertising Webcast sales other Webcast sales training Total Sales Direct Cost of sales Webcast Advertising Webcast sales other Webcast sales training Subtotal Cost of Sales FY2002 $205,000 $39,581 $5000 $249,581 FY2001 $0 $0 $4000 $4000 FY2003 $75,000 $85,000 $600,000 $760,000 FY2002 $0 $0 $15,000 $10,000 FY2004 $135,000 $300,000 $2,500,000 $2,935,000 FY2003 $0 $0 $625000 $625,000 Informati(m provided by VisionCast Conmmnications LLC, VisionCast.com, or it's partners in this correspondence is C._lfidential and proprietary business information; therefore, reader agrees not to disclose it without the express written permission of VisionCast Communications LLC. Any use of any infezmation in part or in full is prohibited. Sales Monthly $30,000 -i-1" o,,ooo. $40,000 -_ "_ __ l ' = _ II '_i i i i [] Webcast Advertising $2.5,000 _-H" l $15,000 -- _ _ - I ! .: - ! • • Webcast alesother s Webcast sales training $1o,ooo- :- ,,,ooo_! :_ $0 ......... rul Aug Sep Oct Nov Dec , _n l eb I_rarA_r ay 5.4 Milestones The accompanying table list important timelines associated with the project. The milestones should indicate my emphasis on planning for implementation and commitment to the core objectives. Milestones Milestone Business Plan Private Placement Website Development Strategic Alliance Content established Plan Start Date 3/1/2000 3/1/2001 6/11/2001 4/1/2001 6/18/2001 End Date 4/1/2000 9/1/2001 9/1/2001 7/1/2001 7/1/2001 Budget $1,000 $500,000 $75,000 $5000 $1,000 Manager Department SRW Executive SRW Executive SRW Executive SRW Executive SRW Executive Totals $582,000 6.0 Financial Plan This is an Internet venture that depends on the developing financial prospects of the expanding Internet community. To provide the resources necessary, we need to increase the valuation and viability of the company to sustain additional investment capital. In 2001, the seed investors will purchase up to 48% of the stock of VisionCast Communication for a 48% of the valuation of the company at that time. The remaining 52% of stock will be owned by Scott Wyllie, the founder. It is expected, strategic partners will be included as investors and additional capital will be raised in the second year of operations. It is assumed that in year 2003 the exit strategy will be an IPO. Inforn_tionprovided VisionCastCmmmnicationsLLC,VisionCust.com,or it's partners this correspondence by in is confidential and proprietarybusiness inforr_tion; therefore, reader agreesnot to disclose it without theexpress written pern_ssion of VisionCast ComrmmicationsLLC. Anyuse of anyinformation part or in full is prohibited. in 6.1 Important Assumptions The general assumptions are listed in the following table. These are less trivial compared to the underlying critical assumptions. Continued qrowth in Intemet usaae. We buy into published forecast that identify present Internet usage, e-commerce, and online business solutions are increasing exponentially. A new study about the impact of the Internet of the nations economy estimates it generated $300 billion in revenues in 1999 and was responsible for 1.2 million jobs. Analyst predict consumer spending over the Internet will increase to $108 billion, but businesses will spend $1.3 trillion by 2003. The US online advertising market has softened by about 10% but will be worth $7.1 billion by 2002 an increase of over 170% from past levels. Strateqic partnerinq is accomplished successfully The business model assumes strategic partnering is accomplished successfully and that no major duplications of our ideas and plans are introduced to the market prior to Visioncast.com Continued support of financial markets We assume equity capital and financing sufficient to maintain the financial plan. No e-commerce disasters No technological or large problems with developing a functional website. General Assumptions Short-term Interest Rate % Long-term Interest Rate % Payment Days Estimator Collection Days Estimator Tax Rate % Expenses in Cash % Sales on Credit % Personnel Burden % FY2002 8.00% 8.00% 30 30 20.00% 10.00% 25.00% 0.00% FY2003 8.00% 8.00% 30 30 20.00% 10.00% 25.00% 0.00% FY2004 8.00% 8.00% 30 30 20.00% 10.00% 25.00% 0.00% 6.2 Break-even Analysis Determining a break-even analysis is complex. Given revenue will be generated from different sales mix, margins for those sales will be different. For the purpose of this plan, we assume sales are based on an average sales price per viewing unit. The table included specifies figures related to break-even. Break Even Analysis: Monthly Units Break-even Monthly Sales Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 2,958 $59,137 $19.99 $7.99 $35,500 Information l_ovided by VisionCast Conmmnications LLC, VisionCast.com, or it's partners in this correspondence is confidential and proprietary business infonmtion; therefore, reader agrees not to disclose it without the express written per_ssion of VisionCast Communications LLC. Any use of any inforrmtion in part or in full is prohibited. Break Even Analysls $40,000 $30,000 $20,000 $10,000 / // ($10,000) ($20,000) ($.30,000) ($40,000) $o $19,990 $39,980 $59,970 $79,96o $99,950 Monthly units break-even Units break-even = where point lineintersects with$0 6.3 Projected Profit and Loss As a start-up company, I do not realistically expect to operate profitably during the first 3 years. Instead, I invest in the position that will pay off for VisionCast partners later. Initial investments in on-line/off-line advertising & promotion is substantial. The increased traffic from these investments will proportionately increase revenues, and justify any losses. Profit and Loss (Income Statement) Sales Direct Cost of Sales anticipated royalties Total Cost of Sales Gross Margin Gross Margin % Operating expenses: Advertising/Promotion Travel Miscellaneous Payroll Expense Payroll Burden Depreciation Leased Equipment Utilities insurance Rent FY2002 $244,581 $0 $39,581 $39,581 $205,000 83,82% $175,000 $12,000 $18,000 $144,000 $0 $6,000 $6,000 $1,200 $600 $6,000 FY2003 $760,000 $20,000 $70,000 $90,000 $670,000 88.16% $250,000 $15,000 $18,000 $460,000 $0 $7,000 $7,000 $1,200 $700 $8,000 FY2004 $2,935,000 $40,000 $200,000 $240,000 $2,695,000 91.82% $300,000 $15,000 $18,000 $560,000 $0 $7,000 $8,000 $1,200 $800 $8,000 Information provided by VisionCast Corrarmnicatiom LLC, VisionCast.cora, or it's partng_ in this correspondgnce is confidential and proprietary business information; therefore, reader agrees not to disclose it without the express written permission of VisionCast Conmmnicatitms LLC. Any use of any inforrmti(m in part or in full is prohibited. 6.4 Projected Cash Flow Cash flowshowsassumptionsbased on on-linesales assumingcredit card collectioncycles. Seed investment will provide sufficient cash flow for the first year. I anticipate substantial investment in advertising and promotion which will impact cash flow. The relatively low running costs will have a positive impact to cash flow. Pro-Forma Cash Flow Net Profit Plus: Depreciation Change in Accounts Payable Current Borrowing (repayment) Increase (decrease) Other Liabilities Long-term Borrowing (repayment) Capital Input Subtotal Less: Change in Accounts Receivable Change in Other Shortterm Assets Capital Expenditure Dividends Subtotal Net Cash Flow Cash Balance FY2002 ($140,640) $6,000 $22,382 $0 $0 $0 $350,000 $237,742 FY2001 $9,358 $0 $77,000 $8,700 $93,058 $144,684 $154,684 FY2003 ($89,520) $7,000 $14,016 $0 $0 $0 $1,000,000 $931,496 FY2002 $19,720 $0 $200,000 $12,000 $231,720 $699,776 $854,460 FY2004 $1,405,600 $7,000 $55,177 $0 $0 $0 $2,000,000 $3,467,777 F'Y2003 $83,214 $0 $200,000 $12,000 $295,214 $3,172,562 $4,027,023 Info_natioa provided by VisieaCast Comn_nicatio_s LLC, VisieaCast.com, or it's partners in this c(m-espondence is co_deatial and proprietary business infocmatioa; therefcce, reader agrees not to disclose it without the express written permissi(m of VisionCast Conm_nicatic_s LLC. Any use of any information in part c¢ in full is prohibited. Cash $300,000--="_ $250,000-- " $200,000--" $150,000--_ [] $1oo,ooo--_ $50,000--_ ] c Cash Flow Cash Balance • $0 ($50,000) _ "iul _AugSep _Oct _Nov_ec "-Jan_eb _"Mar--Apr r ].'-May "Jun _ _.J 6.5 ProjectedBalanceSheet Includedis a projectedbalancesheet.I do not projectany adverseeffectsprovidedwe achieve our specificobjectives. Pro-forma BalanceSheet Assets Short-term Assets Cash Accounts eceivable R OtherShort-term Assets TotalShort-term Assets Long-term Assets Capital ssets A Accumulated epreciation D TotalLong-term Assets TotalAssets LiabilitiesndCapital a Accounts ayable P Short-termNotes OtherShort-termLiabilities SubtotalShort-term Liabilities Long-termLiabilities Total Liabilities Paidin Capital RetainedEarnings Earnings FY2002 $154,684 $9,358 $5,000 $169,042 $152,000 $6,000 $146,000 $315,042 FY2001 $22,382 $0 $0 $22,382 $0 $22,382 $860,000 ($426,700) ($140,640) FY2003 $854,460 $29,077 $5,000 $888,537 $352,000 $13,000 $339,000 $1,227,537 FY2002 $36,397 $0 $0 $36,397 $0 $36,397 $1,860,000 ($579,340) ($89,520) FY2004 $4,027,023 $112,292 $5,000 $4,144,314 $552,000 $20,000 $532,000 $4,676,314 FY2003 $91,574 $0 $0 $91,574 $0 $91,574 $3,860,000 ($680,860) $1,405,600 Inlet'marion provided by VisionCast Comnmnications LLC, VisionCast, com, ¢¢ it's partners in this correspondence is confideatial and proprietary business information; therefore, reader agrees not to disclose it without the express written pem_ssion of VisionCast Conmmnications LLC, Any use of any information in part or in full is prohibited. Total Capital Total Liabilities and Capital Net Worth $292,660 $315,042 $292,660 $1,191,140 $1,227,537 $1,191,140 $4,584,740 $4,676,314 $4,584,740 Information provided by VisionCast Commmications LLC, VisionCast.com, or it's partners in this correspondence is confidential and proprietary business inforrf_tion; therefore, reader agrees not to disclose it without the express written permission of VisionCast Connmmications LLC. Any use of any information in part or in full is prohibited.