1.0 Executive Summary

PowerLeads Wireless is an innovative start-up company that will provide wireless broadband Internet connections at HotSpots across Israel.
Utilizing Wi-fi (unlicensed) technology GateWays AccessPoints and antennas, PowerLeads will deploy  HotSpots nationwide in cafés , malls, fast food restaurant , hotels , and other buisiness and leisure locations (~200 planned within Y1 ). These hotspots will allow our customers to access wireless broadband internet via their wi-fi enabled laptops and handhelds.
PowerLeads was been founded by Benny Hochster..

 

1.1 Objectives

•	Provide, fast, reliable, wireless Internet access EVERYWHERE.
•	Become the leading public hotspot wireless ISP in Israel
•	Become profitable within two years.

1.2 Mission

It is PowerLeads Wireless' mission to provide fast, wireless Internet access at a reasonable price. The most important thing to remember is that every customer must be satisfied with our services.

1.3 Keys to Success

•	Practice high growth.
•	Deploy 150 HotSpots within 6 months.
•	Offer high reliability and competitive pricing.
•	Reach quick profitability .
•	Ensure that the customer's needs are met and maintain a 90% customerretention ratio.

2.0 Company Summary

PowerLeads Wireless will be formed in 2004 to offer an inexpensive, wireless broadband Internet connection on many central , densly populated lications ("HotSpots") . Using Wi-fi technology, (EEE 802.11b/g protocols) it is inexpensive to set up a HotSpot network. The company was founded by Benny Hochster. Benny will rely on outside investors for the necessary start-up costs.

2.1 Company Ownership

PowerLeads Wireless is an Israeli registered limited company , with Benny Hochster as the principal and majority owner.

2.2 Start-up Summary

Equipment that will be needed is as follows:
•Three computer workstations;
•Wireless access point;
•Five repeaters;
•Five antennas;
•Assorted office equipment and supplies.

Table:  Start-up

Start-up	 	
 	 	
Requirements	 	
 	 	
Start-up Expenses	 	
Legal	$2,000 	
Stationery etc.	$1,000 	
Computers (Laptops)	$3,500 	
Computers (Office) 	$3,000 	
Insurance	$200 	
Rent (6 months)	$3,000 	
Software Licenses	$3,000 	
Other	$2,000 	
Total Start-up Expenses	$17,700 	
 	 	
Start-up Assets Needed	 	
Cash Balance on Starting Date	$20,000 	
Other Current Assets	$0 	
Total Current Assets	$20,000 	
 	 	
Long-term Assets	$0 	
Total Assets	$20,000 	
Total Requirements	$37,700 	
 	 	
Funding	 	
 	 	
Investment	 	
Investor 1	$20,700 	
Investor 2	$17,000 	
Total Investment	$37,700 	
 	 	
Current Liabilities	 	
Accounts Payable	$0 	
Current Borrowing	$0 	
Other Current Liabilities	$0 	
Current Liabilities	$0 	
 	 	
Long-term Liabilities	$0 	
Total Liabilities	$0 	
 	 	
Loss at Start-up	($17,700)	
Total Capital	$20,000 	
Total Capital and Liabilities	$20,000 	

 

3.0 Services

PowerLeads will offer public wireless broadband Internet access ("HotSpots"). The service is ADSL speed with customers only needing a Wi-fi card within range of the signal which covers a 100-400 meters radius currently (Technologies covering much larger distances such as Wi-Max are expected to be available by Q4 2005). 
Wi-fi technology is based off of 2.4 mhz spectrum wireless transmissions, In Israel this spectrum has recently become unlisenced for general use. Using the same wave lengths that some cordless phones use, the Internet signals are broadcasted out through the HotSpot. As the user aquires password (temporarily or subscribed)  customers will have fast, wireless Internet connections wherever the service is installed.

4.0 Market Analysis Summary

During the past few years there has been a proliferation of broadband Internet connections in Israel. There are currently (June 2004) over 2.7 million adult internet users in Israel, of which 82% access the internet daily .  86% of the internet connectivity is broadband (Cable, ADSL, or dedicated lines). Israelis are very used to using the Internet , and expect a broadband speed connectivity when connecting. 
"Road warriors" (Sales people etc.) , need reliable at-hand broadband Internet connection to do their jobs.
Students and academics With the advent of Wi-fi technology, customers can now enjoy a fast connection without having to lay expensive cables since the signal is sent via radio waves. The targeted market segments are: students, professionals, techies.

4.1 Market Segmentation

The market can be segmented into three distinct groups:
•Students: these are people currently in academia and are accustomed to fast connections and are willing to pay for it. This group uses the Internet the most, whether they are trading MP3s or downloading videos.
•Professionals: this group conducts a fair amount of business over the Internet, whether banking, e-commerce, or communications.
•Techies: this group embraces technology as they enjoy challenging themselves with technology and the complexity it brings.
	
Other than the students, PowerLeads' customers are fairly affluent (household income of >$50,000) and spend their money on technology offerings, whether it is digital cable, cellular service, or broadband Internet connections. The target customers are also generally well educated with 65% having a college degree and 20% having a graduate degree. Combining several demographic factors, PowerLeads arrives at the following primary customer profile:
•Spends 10 hours a week on the Internet away from home.
•Has purchased something from a website at least once within the last two months.
•Educated with at least some coursework for an undergraduate degree.
•Household income of at least $50,000.

Table:  Market Analysis

Market Analysis								
Potential Customers	Growth	2003	2004	2005	2006	2007	CAGR	
Students	9%	54,000	58,860	64,157	69,931	76,225	9.00%	
Professionals	8%	34,000	36,720	39,658	42,831	46,257	8.00%	
Techies	11%	10,000	11,100	12,321	13,676	15,180	11.00%	
Total	8.87%	98,000	106,680	116,136	126,438	137,662	8.87%	

 

4.2 Target Market Segment Strategy

PowerLeads has chosen the three aforementioned target markets due to their adoption of broadband Internet technology. It is these three groups that are most likely to use a fast connection and the most willing to pay a premium for the connection.

4.3 Service Business Analysis

There are two main participants within the wireless consumer Internet market.
•Cellular Operators. A connection that utilizes the cellular infrastructure as the method of transmission. This technology can be devided into two different segments.Currently the cellular operators are usind 2G protocols (GPRS,1X and –to some degree- EDGE). 3G protocols and infrastructure (UMTS) are being deployed , expecting to be operational in Israel by Q3 2005.(See Apendix ??)
•Wi-Fi HotSpots . As of now (May 2005) there are no commercial HotSpots available in Israel. PowerLeads is planning to change that.

4.3.1 Competition and Buying Patterns

As mentioned in the previous section, cellular operators and (future) Wi-Fi public HotSpots competitors in the public wireless Internet  market. Consumer buying patterns are based on three factors:
•Price : Access fees are a very important factor. The cellular solution is by far more expensive than the HotSpot system.
•Bandwidth: Nearly all Israeli Internet users are – to date – connected via broadband access(500-2000 MBps). Once getting used to this size of bandwidth, a consumer will not tolerate a narrowband connection. Currently the only technology alllowing broadband public wireless connectivity is Wi-Fi.   
•Availability: As a public service , targeting roaming users, availability is a crucial buying factor . A large network offering a high availability , would atract many possible subscribers, not interested in a standalone hotspot.
•Convenience: this is often based on where the outlet cords are based in the house, whether the computer will be located closer to the cable TV or nearer to a phone jack.

5.0 Strategy and Implementation Summary

Simply put, PowerLeads' strategy is to offer a service, demanded by customers, at a price that undercuts the competition. This will be accomplished, not by accepting below-market margins, but by leveraging technology, to help drive PowerLeads' costs down. Awareness regarding PowerLeads' services will be generated effectively and inexpensively to the specific target segments that PowerLeads has focused on.

5.1 Competitive Edge

PowerLeads' competitive edge is the effective and efficient use of Wi-fi technology. Wi-fi, while a fairly recent technology, has been adopted by several different service providers as well as used for home-based networks. Some of what provides PowerLeads with a competitive edge
1)	Time To Market(TTM) : Currently there are no comercial wi-fi hotspots avaiable in Israel. Considering the fact that all over the western world wi-fi hotspots are already abundant and successful, the first company to offer this service will have all the advantages of being first to the market , without the disadvantage of creating a new technology. Any WISP to try and enter this market , will have a difficurt time in both "stealing" captivated subscribers as well as finding adeqant hotspot locations.
2)	Rapid Deployment of a Large Network NationWide: PowerLeads intends to rapidly deploy a large amount of hotspots . Targeting roaming communities , such a network will create a strong apeal to users, compared a standalone hotspot , or a limited small network  of hotspots. Much of the possible success of PowerLeads depends on its capabilty to give its customers the feeling they can "access the Internet from just about anywhere in the country".Also, the larger the network , the lower the cost per hotspot , since the vast majority of the expences are fixed, regardless of the network size.
3)	Flexible User Plans: PowerLeads will offer many different user plans allowing every user to find a plan that suits him . Among these plans we will offer monthly fixed price , daily plans, hourly plans, and annual plans, as well as corporate plans.
4)	Competitive pricing : HotSpot technology makes it possible to offer prices much lower than any cellular technology (including EDGE, and future 3G UMTS.) 
5)	Focused  Marketing: Since potential users are mostly regular Internet users, aproaching them is relatively easy and cost effective through internet advertizing, namely – website banners on popular Israely websites.
6)	Top of the Line Equipment:
 is its efficient use of the technology. PowerLeads has developed a proprietary antenna that allows for signal transmission over great distances with less signal loss. Additionally, PowerLeads has significantly reduced administrative costs by having most administrative activities like marketing, sales, and service details administered via the Internet.

5.2 Marketing Strategy

As the name implies, PowerLeads will be using a PowerLeads approach to developing awareness of the offered services. PowerLeads will adopt a multi-pronged marketing approach:
•Advertising/postings with local retailers and commercial businesses. This will provide PowerLeads with great visibility in the exact community that it operates in.
•Mailings. PowerLeads will adopt a targeted mailing campaign to local residents.
•Website. PowerLeads will leverage its website as a comprehensive and efficient source of marketing/sales information.

5.3 Sales Strategy

The sales strategy that PowerLeads will adopt is based on developing an awareness of PowerLeads' service as a viable alternative to Cable and DSL within the community. The message used will be that you can receive broadband speed connections to your computer, wherever it may be, even your laptop on your front lawn, at a price that is a fraction of the current competitors'. This will be done with targeted advertising with local retail/commercial establishments in the area. Additionally, PowerLeads will rely on mailings to get the word out. Lastly, PowerLeads will have a website for marketing, sales, and administrative purposes.

5.3.1 Sales Forecast

PowerLeads has developed a conservative sales forecast. Adoption rates of customers are fairly steady from one month to the next. A conservative approach has been adopted to minimize any external variables that may effect future operations.
PowerLeads believes that it will experience extensive growth for several years for several reasons. The first is the general adoption of broadband connections which has been encouraging for the last several years. Another reason PowerLeads believes their forecast to be accurate is it offers a viable, less expensive alternative to current broadband connections.
Table:  Sales Forecast (In Thousands)
Sales Forecast	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales	 	מאי	יוני	יולי	אוגוסט	ספטמבר	אוקטובר	נובמבר	דצמבר	ינואר	פברואר	מרץ	אפריל	FY 2005	
Roaming Users	$0 	$0 	$0 	$1 	$1 	$1 	$1 	$1 	$2 	$2 	$2 	$2 	$12 	
Hour Users 	$0 	$2 	$6 	$10 	$15 	$19 	$23 	$27 	$31 	$35 	$40 	$44 	$252 	
Monthly Subscribers	$0 	$2 	$9 	$17 	$27 	$38 	$52 	$67 	$84 	$103 	$124 	$146 	$671 	
Total Sales	$0 	$5 	$15 	$28 	$42 	$58 	$76 	$96 	$117 	$140 	$165 	$192 	$935 	

Chart : Sales Growth FY 2005

 

Explanation for Sales Forecast Chart

The following table contains the assumptions used to generate the sales forecast:

No. Of HotSpots Installed Monthly	20	
Average Hours Used Per HotSpot/Day	4	
Average Hours Used Per HotSpot/Month	104	
Average Roaming Users Per HotSpot/Month	10	
Average Monthly Users Per HotSpot	15	
Power Of 10 Locations Network(1)	10%	
Hour Price ($)	$2.00	
Monthly Subscribers Fee	$15.00	
Roaming Conecting Fee 	$1.00	

(1) This assumption is based on the fact that the more hotspots available to users, subscribing to the ENTIRE network becomes much more atractive. In other words , while many potential users might not subscribe to a single hotspot (since one of the most important segmants of users are the roaming users) they still would be interested in access to an highly available hotspot network. The higher atractiveness of the larger network is represented in the above table as the percent of users subscribing per hotspot per every increase of 10 available access points .
 
In this table , the " Power Of 10 Locations" is assumed to be 10%. Meaning – if one hotspot can generate 15 subscribers , then 10 hotspots can generate ontop of the 150 users , another 10% per hotspot (1.5X10 = 15) of users whom are atracted to become subscribers due to the fact they can access the network roaming between 10 different locations.Hence the correct number of users per 10 hotspots would be 150 (15 users per hotspot X 10 hotspots ) + 15 (10% X 150) = 165 .

The larger the network gets , this "network effect" becomes more and more important as every addition of 10 locations adds another 10% to calculation of subscribers per EACH hotspot. For example , as the network reaches 100 hotspots the " Power Of 10 Locations" will add 100% to the amount of subscribers per hotspot generating  3000 subscribers (100 hotspots X 15 subscribers per hotspot X 200%) rather than 1500.

 

5.4 Milestones

Milestones are a very important aspect of a business plan. They provide concrete, achievable, yet lofty goals that the business must concentrate on. By targeting lofty goals, PowerLeads ensures that it is aiming high, therefore it is more likely to achieve more. The milestones that PowerLeads has chosen are very specific to the company and will be embraced by all employees.

Table:  Milestones

Milestone	Start Date	End Date	Budget	Manager	
Business plan completion	1/05/04	1/06/04	$100 	Benny	
First HotSpot Installed 	1/05/04	15/06/04	$500 	Benny	
First 10 Subscribers	1/05/04	30/06/04	$2,000 	Benny	
Seed Fund Raising 	1/05/04	1/07/04	$5,000 	Benny	
Roaming Contracts 	1/05/04	31/07/04	$1,000 	Benny	
20 HotSpots Installed 	1/05/04	15/08/04	$10,000 	Benny	
Personnel Recruitment	1/05/04	30/09/04	$1,000 	Benny	
Second Funding Round	1/05/04	30/11/04	$10,000 	Benny	
2000 Subscribers	1/05/04	31/12/04	$25,000 	Benny	
200 HotSpots Deployed 	1/05/04	31/05/05	$50,000 	Benny	
8000 Subscribes 	1/05/04	31/05/05	$30,000 	Benny	
Totals	 	 	$134,600 	 	

 

6.0 Web Plan Summary

The website will be used for:
•Marketing/sales;
•Administrative functions.

6.1 Website Marketing Strategy

All of PowerLeads' marketing information will be present on the website for viewing and for downloading/printing. Awareness regarding the website will be accomplished by inclusion of the website address on all printed materials. Additionally, the website will have a comprehensive submission procedure to all of the popular search engines.

6.2 Development Requirements

The website will be developed in-house by leveraging interns.

7.0 Management Summary

Steve Teche, founder and president will be the anchor of the management team. Steve received his undergraduate degree in computer science from Loyola University. While Steve enjoyed the course work he recognized that it was not something that he was interested in pursuing as a career. Steve decided that it would be in his best interest to study for an MBA, however, he was not immediately ready to do this. So Steve headed off to Ghana with the Peace Corps to develop community-based trading systems. Steve's Peace Corp experience was invaluable, providing him with extensive project management experience as well as giving him confidence that he could accomplish anything he set his mind out to do.
After getting back to the States, Steve began the MBA program at the University of Chicago. Steve's course of study concentrated on entrepreneurial ventures, recognizing at some point his desire to start his own business. Near the end of his second year, Steve began to hear about Wi-fi technology. He became interested in what he saw was a strong market need for inexpensive broadband Internet connections transmitted wirelessly, thereby significantly decreasing delivery costs. Steve formed PowerLeads Wireless to fulfill this market need.

7.1 Personnel Plan

Employees will consist of the following positions:
•Technician: this position is responsible for the Physical installation and maintnance of the HotSpot locations. By the end of the first year of operating , PowerLeads will have 2 Technitians.
•SysAdmin: The system administrator will be resposible for running and maintaining the entire HotSpot network . smooth operation of the network, as well as problem foreseeing and solutions will depend on this position. By the end of the first year of operating , PowerLeads will have 2 SysAdmins.
•Secretary: Byond day to day secratarial work , during seed stages of the company the secretary will also operate as Support/Customer Care person.
•Support :
•Business Development:

7.2 Personnel Salary Guide Lines (By Position)

Salary Per Position 	 	
SysAdmin	$1,800	
Technitian	$1,800	
Secretary	$950	
Support	$1,100	
President	$2,000	
Business Development	$1,500	

7.2 Payroll Plan FY 2005

7.2.1 Payroll Tables May 2004 Through Apr. 2005 

Personnel Plan	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	מאי	יוני	יולי	אוגוסט	ספטמבר	אוקטובר	נובמבר	דצמבר	ינואר	פברואר	מרץ	אפריל	FY 2005	
President	$2,000 	$2,000 	$2,000 	$2,000 	$2,000 	$2,000 	$2,000 	$2,000 	$2,000 	$2,000 	$2,000 	$2,000 	$24,000 	
SysAdmin 1	$0 	$0 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$18,000 	
SysAdmin 1	$0 	$0 	$0 	$0 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$14,400 	
Technician	$0 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$1,800 	$19,800 	
Secretary	$0 	$950 	$950 	$950 	$950 	$950 	$950 	$950 	$950 	$950 	$950 	$950 	$10,450 	
Total People	 	1	3	4	4	5	5	5	5	5	5	5	5	5	
Total Payroll	 	$2,000 	$4,750 	$6,550 	$6,550 	$8,350 	$8,350 	$8,350 	$8,350 	$8,350 	$8,350 	$8,350 	$8,350 	$86,650 	

8.0 Financial Plan

The following sections outline important financial information.

8.1 Break-even Analysis

Average per-unit revenue(Monthly subscribers Only): based on the $15 subscriber's monthly fee. Revenue generated by Roaming/Hourly users is not included.
Estimated monthly fixed costs: Average total monthly expendeture for the first year.

 
Table:  Break-even Analysis

Break-even Analysis:	 	
Monthly Units Break-even	867	
Monthly Revenue Break-even	$13,008 	
 	 	
Assumptions:	 	
Average Per-Unit Revenue	$15.00 	
Average Per-Unit Variable Cost	$0.00 	
Estimated Monthly Fixed Cost	$13,008 	

8.2 Projected Profit and Loss

The following table and charts will indicate Projected Profit and Loss.

Table:  Profit and Loss

Pro Forma Profit & Loss 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	מאי	יוני	יולי	אוגוסט	ספטמבר	אוקטובר	נובמבר	דצמבר	ינואר	פברואר	מרץ	אפריל	FY 2005	
Sales		0.4	4.6	15.3	27.8	42.0	58.1	76.0	95.6	117.1	140.3	165.4	192.3	934.8	
Direct Cost of Sales		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	
Total Cost of Sales		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	
Gross Margin	 	0.4	4.6	15.3	27.8	42.0	58.1	76.0	95.6	117.1	140.3	165.4	192.3	934.8	
Advertising/Promotion		0.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	55.0	
Other Sales and Marketing Expenses		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	
Total Sales and Marketing Expenses	 	$0 	$5 	$5 	$5 	$5 	$5 	$5 	$5 	$5 	$5 	$5 	$5 	$55 	
Expenses:														 	
Payroll		2.0	4.8	6.6	6.6	8.4	8.4	8.4	8.4	8.4	8.4	8.4	8.4	$87 	
Sales and Marketing and Other Expenses		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	$0 	
Depreciation	3%	0.0	0.1	0.4	0.6	0.8	1.1	1.3	1.5	1.7	2.0	2.2	2.4	$14 	
Montly DSL Access (ISP+Telco) Per HotSpot		0.0	0.3	0.8	1.3	1.8	2.3	2.8	3.3	3.8	4.3	4.8	5.3	$30 	
Rent		0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	$6 	
Utilities		0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	0.8	$10 	
Office Supplies Etc.		1.5	1.5	1.5	1.5	1.5	1.5	1.5	1.5	1.5	1.5	1.5	1.5	$18 	
Payroll Taxes	30%	0.6	1.4	2.0	2.0	2.5	2.5	2.5	2.5	2.5	2.5	2.5	2.5	$26 	
Other		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	$0 	
Total Expense	 	5.4	9.4	12.4	13.2	16.2	17.0	17.7	18.4	19.1	19.9	20.6	21.3	190.6	
Total Operating Expenses	 	5.4	14.4	17.4	18.2	21.2	22.0	22.7	23.4	24.1	24.9	25.6	26.3	245.6	
Profit Before Interest and Taxes		5.0	9.8	2.1	9.6	20.8	36.1	53.3	72.2	92.9	115.5	139.8	165.9	689.2	
Taxes Incurred		1.8	3.5	0.8	3.5	7.5	13.0	19.2	26.0	33.5	41.6	50.3	59.7	248.1	
Net Profit	 	($3)	($6)	($1)	$6 	$13 	$23 	$34 	$46 	$59 	$74 	$89 	$106 	$441 	

 

 

8.3 Projected Cash Flow

The following table and chart will indicate Projected Cash Flow.

Table:  Cash Flow

Pro Forma Cash Flow				
	2003	2004	2005	
				
Cash Received				
Cash from Operations: 				
Cash Sales	$36,584	$132,665	$211,443	
Cash from Receivables	$0	$0	$0	
   Subtotal Cash from Operations	$36,584	$132,665	$211,443	
				
Additional Cash Received				
Sales Tax, VAT, HST/GST Received	$0	$0	$0	
New Current Borrowing	$0	$0	$0	
New Other Liabilities (interest-free)	$0	$0	$0	
New Long-term Liabilities	$0	$0	$0	
Sales of Other Current Assets	$0	$0	$0	
Sales of Long-term Assets	$0	$0	$0	
New Investment Received	$0	$0	$0	
   Subtotal Cash Received	$36,584	$132,665	$211,443	
				
Expenditures	2003	2004	2005	
Expenditures from Operations:				
Cash Spending	$58,800	$75,600	$87,600	
Payment of Accounts Payable	$31,010	$42,419	$73,787	
   Subtotal Spent on Operations	$89,810	$118,019	$161,387	
				
Additional Cash Spent				
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0	
Principal Repayment of Current Borrowing	$0	$0	$0	
Other Liabilities Principal Repayment	$0	$0	$0	
Long-term Liabilities Principal Repayment	$0	$0	$0	
Purchase Other Current Assets	$0	$0	$0	
Purchase Long-term Assets	$0	$0	$0	
Dividends	$0	$0	$0	
   Subtotal Cash Spent	$89,810	$118,019	$161,387	
				
Net Cash Flow	($53,226)	$14,646	$50,056	
Cash Balance	$2,274	$16,919	$66,975	

 

8.4 Projected Balance Sheet

The following table will indicate the Projected Balance Sheet.

Table:  Balance Sheet

Pro Forma Balance Sheet				
				
Assets				
Current Assets	2003	2004	2005	
Cash	$2,274	$16,919	$66,975	
Other Current Assets	$0	$0	$0	
Total Current Assets	$2,274	$16,919	$66,975	
Long-term Assets				
Long-term Assets	$5,000	$5,000	$5,000	
Accumulated Depreciation	$996	$1,998	$3,000	
Total Long-term Assets	$4,004	$3,002	$2,000	
Total Assets	$6,278	$19,921	$68,975	
				
Liabilities and Capital				
Current Liabilities	2003	2004	2005	
Accounts Payable	$3,039	$11,020	$17,564	
Current Borrowing	$0	$0	$0	
Other Current Liabilities	$0	$0	$0	
Subtotal Current Liabilities	$3,039	$11,020	$17,564	
				
Long-term Liabilities	$0	$0	$0	
Total Liabilities	$3,039	$11,020	$17,564	
				
Paid-in Capital	$70,000	$70,000	$70,000	
Retained Earnings	($9,500)	($66,761)	($61,098)	
Earnings	($57,261)	$5,663	$42,510	
Total Capital	$3,239	$8,902	$51,412	
Total Liabilities and Capital	$6,278	$19,921	$68,975	
Net Worth	$3,239	$8,902	$51,412	

8.5 Business Ratios

The following table illustrates the different Business Ratios.

Table:  Ratios

Ratio Analysis					
	2003	2004	2005	Industry Profile	
Sales Growth	0.00%	262.63%	59.38%	10.27%	
					
Percent of Total Assets					
Accounts Receivable	0.00%	0.00%	0.00%	28.27%	
Inventory	5.15%	5.88%	2.71%	5.26%	
Other Current Assets	0.00%	0.00%	0.00%	44.32%	
Total Current Assets	36.22%	84.93%	97.10%	77.85%	
Long-term Assets	63.78%	15.07%	2.90%	22.15%	
Total Assets	100.00%	100.00%	100.00%	100.00%	
					
Current Liabilities	48.41%	55.32%	25.46%	35.88%	
Long-term Liabilities	0.00%	0.00%	0.00%	21.91%	
Total Liabilities	48.41%	55.32%	25.46%	57.79%	
Net Worth	51.59%	44.68%	74.54%	42.21%	
					
Percent of Sales					
Sales	100.00%	100.00%	100.00%	100.00%	
Gross Margin	95.00%	95.00%	95.00%	100.00%	
Selling, General & Administrative Expenses	251.52%	90.73%	74.90%	82.56%	
Advertising Expenses	0.00%	0.00%	0.00%	1.01%	
Profit Before Interest and Taxes	-156.52%	6.10%	28.72%	1.11%	
					
Main Ratios					
Current	0.75	1.54	3.81	1.68	
Quick	0.64	1.43	3.71	1.27	
Total Debt to Total Assets	48.41%	55.32%	25.46%	2.10%	
Pre-tax Return on Net Worth	-1767.98%	90.88%	118.12%	66.78%	
Pre-tax Return on Assets	-912.14%	40.61%	88.04%	6.31%	
					
Additional Ratios	2003	2004	2005		
Net Profit Margin	-156.52%	4.27%	20.10%	n.a	
Return on Equity	-1767.98%	63.62%	82.69%	n.a	
					
Activity Ratios					
Accounts Receivable Turnover	0.00	0.00	0.00	n.a	
Collection Days	0	0	0	n.a	
Inventory Turnover	0.00	0.00	0.00	n.a	
Accounts Payable Turnover	11.20	4.57	4.57	n.a	
Payment Days	28	40	65	n.a	
Total Asset Turnover	5.83	6.66	3.07	n.a	
					
Debt Ratios					
Debt to Net Worth	0.94	1.24	0.34	n.a	
Current Liab. to Liab.	1.00	1.00	1.00	n.a	
					
Liquidity Ratios					
Net Working Capital	($765)	$5,900	$49,412	n.a	
Interest Coverage	0.00	0.00	0.00	n.a	
					
Additional Ratios					
Assets to Sales	0.17	0.15	0.33	n.a	
Current Debt/Total Assets	48%	55%	25%	n.a	
Acid Test 	0.64	1.43	3.71	n.a	
Sales/Net Worth	11.30	14.90	4.11	n.a	
Dividend Payout	0.00	0.00	0.00	n.a	

  
Appendix Table:  Sales Forecast

Sales Forecast														
Sales		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
Monthly Internet Service		$0	$0	$1,200	$2,112	$2,544	$2,887	$3,543	$3,877	$4,322	$4,899	$5,323	$5,877	
Other		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Total Sales		$0	$0	$1,200	$2,112	$2,544	$2,887	$3,543	$3,877	$4,322	$4,899	$5,323	$5,877	
														
Direct Cost of Sales		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
Administrative costs		$0	$0	$60	$106	$127	$144	$177	$194	$216	$245	$266	$294	
Other		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Subtotal Direct Cost of Sales		$0	$0	$60	$106	$127	$144	$177	$194	$216	$245	$266	$294	

Appendix Table:  Personnel

Personnel Plan														
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
President		$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	$2,000	
Technician		$0	$1,800	$1,800	$1,800	$1,800	$1,800	$1,800	$1,800	$1,800	$1,800	$1,800	$1,800	
Administration		$0	$0	$1,500	$1,500	$1,500	$1,500	$1,500	$1,500	$1,500	$1,500	$1,500	$1,500	
Total People		1	2	3	3	3	3	3	3	3	3	3	3	
Total Payroll		$2,000	$3,800	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	

Appendix Table:  General Assumptions

General Assumptions														
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
Plan Month		1	2	3	4	5	6	7	8	9	10	11	12	
Current Interest Rate		10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	
Long-term Interest Rate		10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%	
Tax Rate		30.00%	30.00%	30.00%	30.00%	30.00%	30.00%	30.00%	30.00%	30.00%	30.00%	30.00%	30.00%	
Other		0	0	0	0	0	0	0	0	0	0	0	0	

Appendix Table:  Profit and Loss

Pro Forma Profit and Loss														
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
Sales		$0	$0	$1,200	$2,112	$2,544	$2,887	$3,543	$3,877	$4,322	$4,899	$5,323	$5,877	
Direct Cost of Sales		$0	$0	$60	$106	$127	$144	$177	$194	$216	$245	$266	$294	
Other Costs of Sales		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
		------------	------------	------------	------------	------------	------------	------------	------------	------------	------------	------------	------------	
Total Cost of Sales		$0	$0	$60	$106	$127	$144	$177	$194	$216	$245	$266	$294	
Gross Margin		$0	$0	$1,140	$2,006	$2,417	$2,743	$3,366	$3,683	$4,106	$4,654	$5,057	$5,583	
Gross Margin %		0.00%	0.00%	95.00%	95.00%	95.00%	95.00%	95.00%	95.00%	95.00%	95.00%	95.00%	95.00%	
Expenses:														
Payroll		$2,000	$3,800	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	
Sales and Marketing and Other Expenses		$200	$200	$200	$200	$200	$200	$200	$200	$200	$200	$200	$200	
Depreciation		$83	$83	$83	$83	$83	$83	$83	$83	$83	$83	$83	$83	
Rent		$200	$200	$200	$200	$200	$200	$200	$200	$200	$200	$200	$200	
Utilities		$800	$800	$800	$800	$800	$800	$800	$800	$800	$800	$800	$800	
Insurance		$250	$250	$250	$250	$250	$250	$250	$250	$250	$250	$250	$250	
Payroll Taxes	15%	$300	$570	$795	$795	$795	$795	$795	$795	$795	$795	$795	$795	
Other		$500	$500	$500	$500	$500	$500	$500	$500	$500	$500	$500	$500	
		------------	------------	------------	------------	------------	------------	------------	------------	------------	------------	------------	------------	
Total Operating Expenses		$4,333	$6,403	$8,128	$8,128	$8,128	$8,128	$8,128	$8,128	$8,128	$8,128	$8,128	$8,128	
Profit Before Interest and Taxes		($4,333)	($6,403)	($6,988)	($6,122)	($5,711)	($5,385)	($4,762)	($4,445)	($4,022)	($3,474)	($3,071)	($2,545)	
Interest Expense		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Taxes Incurred		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Net Profit		($4,333)	($6,403)	($6,988)	($6,122)	($5,711)	($5,385)	($4,762)	($4,445)	($4,022)	($3,474)	($3,071)	($2,545)	
Net Profit/Sales		0.00%	0.00%	-582.33%	-289.85%	-224.50%	-186.54%	-134.41%	-114.65%	-93.06%	-70.91%	-57.70%	-43.30%	

Appendix Table:  Cash Flow

Pro Forma Cash Flow														
		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
														
Cash Received														
Cash from Operations: 														
Cash Sales		$0	$0	$1,200	$2,112	$2,544	$2,887	$3,543	$3,877	$4,322	$4,899	$5,323	$5,877	
Cash from Receivables		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
   Subtotal Cash from Operations		$0	$0	$1,200	$2,112	$2,544	$2,887	$3,543	$3,877	$4,322	$4,899	$5,323	$5,877	
														
Additional Cash Received														
Sales Tax, VAT, HST/GST Received	0.00%	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
New Current Borrowing		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
New Other Liabilities (interest-free)		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
New Long-term Liabilities		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Sales of Other Current Assets		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Sales of Long-term Assets		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
New Investment Received		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
   Subtotal Cash Received		$0	$0	$1,200	$2,112	$2,544	$2,887	$3,543	$3,877	$4,322	$4,899	$5,323	$5,877	
														
Expenditures		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
Expenditures from Operations:														
Cash Spending		$2,000	$3,800	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	$5,300	
Payment of Accounts Payable		$0	$2,250	$2,520	$2,805	$2,851	$2,872	$2,889	$2,922	$2,939	$2,961	$2,990	$3,011	
   Subtotal Spent on Operations		$2,000	$6,050	$7,820	$8,105	$8,151	$8,172	$8,189	$8,222	$8,239	$8,261	$8,290	$8,311	
														
Additional Cash Spent														
Sales Tax, VAT, HST/GST Paid Out		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Principal Repayment of Current Borrowing		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Other Liabilities Principal Repayment		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Long-term Liabilities Principal Repayment		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Purchase Other Current Assets		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Purchase Long-term Assets		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Dividends		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
   Subtotal Cash Spent		$2,000	$6,050	$7,820	$8,105	$8,151	$8,172	$8,189	$8,222	$8,239	$8,261	$8,290	$8,311	
														
Net Cash Flow		($2,000)	($6,050)	($6,620)	($5,993)	($5,607)	($5,285)	($4,646)	($4,345)	($3,917)	($3,362)	($2,967)	($2,434)	
Cash Balance		$53,500	$47,450	$40,830	$34,837	$29,230	$23,945	$19,299	$14,954	$11,037	$7,675	$4,708	$2,274	

Appendix Table:  Balance Sheet

Pro Forma Balance Sheet														
														
Assets														
Current Assets	Starting Balances	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
Cash	$55,500	$53,500	$47,450	$40,830	$34,837	$29,230	$23,945	$19,299	$14,954	$11,037	$7,675	$4,708	$2,274	
Other Current Assets	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Total Current Assets	$55,500	$53,500	$47,450	$40,830	$34,837	$29,230	$23,945	$19,299	$14,954	$11,037	$7,675	$4,708	$2,274	
Long-term Assets														
Long-term Assets	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	$5,000	
Accumulated Depreciation	$0	$83	$166	$249	$332	$415	$498	$581	$664	$747	$830	$913	$996	
Total Long-term Assets	$5,000	$4,917	$4,834	$4,751	$4,668	$4,585	$4,502	$4,419	$4,336	$4,253	$4,170	$4,087	$4,004	
Total Assets	$60,500	$58,417	$52,284	$45,581	$39,505	$33,815	$28,447	$23,718	$19,290	$15,290	$11,845	$8,795	$6,278	
														
Liabilities and Capital														
Current Liabilities		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	
Accounts Payable	$0	$2,250	$2,520	$2,805	$2,851	$2,872	$2,889	$2,922	$2,939	$2,961	$2,990	$3,011	$3,039	
Current Borrowing	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Other Current Liabilities	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Subtotal Current Liabilities	$0	$2,250	$2,520	$2,805	$2,851	$2,872	$2,889	$2,922	$2,939	$2,961	$2,990	$3,011	$3,039	
														
Long-term Liabilities	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	
Total Liabilities	$0	$2,250	$2,520	$2,805	$2,851	$2,872	$2,889	$2,922	$2,939	$2,961	$2,990	$3,011	$3,039	
														
Paid-in Capital	$70,000	$70,000	$70,000	$70,000	$70,000	$70,000	$70,000	$70,000	$70,000	$70,000	$70,000	$70,000	$70,000	
Retained Earnings	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	($9,500)	
Earnings	$0	($4,333)	($10,736)	($17,724)	($23,846)	($29,557)	($34,942)	($39,704)	($44,149)	($48,171)	($51,645)	($54,716)	($57,261)	
Total Capital	$60,500	$56,167	$49,764	$42,776	$36,654	$30,943	$25,558	$20,796	$16,351	$12,329	$8,855	$5,784	$3,239	
Total Liabilities and Capital	$60,500	$58,417	$52,284	$45,581	$39,505	$33,815	$28,447	$23,718	$19,290	$15,290	$11,845	$8,795	$6,278	
Net Worth	$60,500	$56,167	$49,764	$42,776	$36,654	$30,943	$25,558	$20,796	$16,351	$12,329	$8,855	$5,784	$3,239	

	1.0	Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1	
	1.1	Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1	
	1.2	Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2	
	1.3	Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2	

	2.0	Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2	
	2.1	Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2	
	2.2	Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3	

	3.0	Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4	

	4.0	Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4	
	4.1	Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4	
	4.2	Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5	
	4.3	Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5	
	4.3.1	Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5	

	5.0	Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5	
	5.1	Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6	
	5.2	Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6	
	5.3	Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6	
	5.3.1	Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6	
	5.4	Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7	

	6.0	Web Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8	
	6.1	Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8	
	6.2	Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8	

	7.0	Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8	
	7.1	Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9	

	8.0	Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9	
	8.1	Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9	
	8.2	Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9	
	8.3	Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10	
	8.4	Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12	
	8.5	Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12	

		Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14	

January 2003

 

 

 

This sample business plan has been made available to users of Business Plan Pro®, business planning software published by Palo Alto Software. Names, locations and numbers may have been changed, and substantial portions of text may have been omitted from the original plan to preserve confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have permission to reproduce, publish, distribute or even copy this plan as it exists here.
Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For product information visit our Website: www.paloalto.com or call: 1-800-229-7526.
Copyright Palo Alto Software, Inc., 1995-2002

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _________________________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. 
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _________________________. 
Upon request, this document is to be immediately returned to _________________________. 
___________________ Signature 
___________________Name (typed or printed) 
___________________Date 
This is a business plan. It does not imply an offering of securities.

Survey finds 2.7 million adult Internet surfers in Israel	
The use of e-mail and visits to news sites have increased.	
Aviva Krull	
	
24 Jun 04   19:56	

	
The steady rise in Internet use in Israel continues. There are currently 2.7 million Internet users aged 13 or over, compared with 2.5 million in November 2003. 82% of users surf the Internet daily, compared with 74% in November 2003. 41% surf for more than ten hours a week, compared with 36% who reported they did so in November 2003. Among the Jewish population, 950 thousand households have Internet connections, with 86% of them (more than 800 thousand) having a high-speed Internet (broadband) connection. 
The current survey finds a clear rise in the use of news and newspaper sites and of e-mail. 82% of Internet users use e-mail, compared with 78% in November 2003, while 73% read newspapers online, compared with 67% in November. 
40% of Internet users in the current survey report that they regularly shop, or order products or services of some kind via the Internet. The figure is similar to the percentage in the November 2003 survey. 
56% of Israel's Internet surfers are male; 61% are below 40 years of age (compared with 46% in the adult population at large); 58% have higher education (compared with 47% in the general population); and 38% earn more than the average salary (compared with 31% in the general population.) 
The periodic survey was carried out among an updated, nationwide, representative sample of 844 private Internet users aged 13 and over in Jewish areas of Israel. It was done through telephone interviews from the TNS/Teleseker interview center in the Dan region. 
Published by Globes [online] - www.globes.co.il - on June 24, 2004