€¦ · · 2017-07-18business plan . (a product of tweaks media) address: #5 tunji adegabi...
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Table of Contents
BUSINESS PLAN
WWW.UDiiT.COM (A product of Tweaks Media)
ADDRESS: #5 Tunji Adegabi crescent, Ifako-ijaye, Lagos, Nigeria.
TEL: 07013299999
EMAIL: [email protected]
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Table of Contents
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Table of Contents
1.0 Executive Summary ........................................................................................................ 1 Chart: Highlights .............................................................................................................. 1
1.1 Objectives ........................................................................................................................ 2 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 ....................................................................................................... 2
Table: Start-up .................................................................................................................. 3 Chart: Start-up ................................................................................................................. 3
3.0 Products ............................................................................................................................... 4 4.0 Market Analysis Summary ............................................................................................ 4
4.1 Market Segmentation ................................................................................................. 4 Table: Market Analysis ................................................................................................... 4 Chart: Market Analysis (Pie) ........................................................................................ 5
4.2 Target Market Segment Strategy .......................................................................... 5 4.3 Industry Analysis .......................................................................................................... 5
4.3.1 Competition and Buying Patterns .................................................................. 6 5.0 Web Plan Summary ......................................................................................................... 6
5.1 Website Marketing Strategy ..................................................................................... 6 5.2 Development Requirements ..................................................................................... 6
6.0 Strategy and Implementation Summary ................................................................ 6 6.1 SWOT Analysis .............................................................................................................. 6
6.1.1 Strengths ................................................................................................................. 7 6.1.2 Weaknesses ............................................................................................................ 7 6.1.3 Opportunities ......................................................................................................... 7 6.1.4 Threats ..................................................................................................................... 8
6.2 Competitive Edge ......................................................................................................... 8 6.3 Marketing Strategy ...................................................................................................... 8 6.4 Sales Strategy ............................................................................................................... 9
6.4.1 Sales Forecast ....................................................................................................... 9 Table: Sales Forecast ................................................................................................. 9 Chart: Sales Monthly ................................................................................................ 10 Chart: Sales by Year ................................................................................................. 10
6.5 Milestones ...................................................................................................................... 10 Table: Milestones ........................................................................................................... 11 Chart: Milestones ........................................................................................................... 11
7.0 Management Summary ................................................................................................ 11 7.1 Personnel Plan ............................................................................................................. 12
Table: Personnel ............................................................................................................. 12 8.0 Financial Plan ................................................................................................................... 13
8.1 Start-up Funding ........................................................................................................ 13 Table: Start-up Funding .............................................................................................. 13
8.2 Important Assumptions ........................................................................................... 14
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Table of Contents
8.3 Break-even Analysis .................................................................................................. 14 Table: Break-even Analysis ........................................................................................ 14 Chart: Break-even Analysis ....................................................................................... 14
8.4 Projected Profit and Loss ......................................................................................... 14 Table: Profit and Loss ................................................................................................... 15 Chart: Profit Monthly .................................................................................................... 15 Chart: Profit Yearly ........................................................................................................ 16 Chart: Gross Margin Monthly ..................................................................................... 16 Chart: Gross Margin Yearly ........................................................................................ 17
8.5 Projected Cash Flow .................................................................................................. 17 Table: Cash Flow ............................................................................................................ 17 Chart: Cash ...................................................................................................................... 18
8.6 Projected Balance Sheet .......................................................................................... 18 Table: Balance Sheet .................................................................................................... 18
8.7 Business Ratios ........................................................................................................... 19 Table: Ratios .................................................................................................................... 19
Table: Sales Forecast ............................................................................................................. 1 Table: Personnel ....................................................................................................................... 2 Table: Personnel ....................................................................................................................... 2 Table: Profit and Loss ............................................................................................................. 3 Table: Profit and Loss ............................................................................................................. 3 Table: Cash Flow ...................................................................................................................... 4 Table: Cash Flow ...................................................................................................................... 4 Table: Balance Sheet .............................................................................................................. 6 Table: Balance Sheet .............................................................................................................. 6
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1.0 Executive Summary
Introduction Udiit.com is an online platform with a vast collection of motivational, inspirational, therapy resource in a compressed audio format(mp3), from renowned life, management, business and career coaches around the world for downloads. The Company Udiit.com is a product of Tweaks Media, a duly registered business with the Corporate Affairs Commission(CAC) in Nigeria in November 2011. Tweaks media has it's base in Lagos, Nigeria. In December 2014, we started operation partly by developing online based products that would serve the needs of Africa at large in the areas of film-making(www.filmfacultyafrica.com), an business portal for African entrepreneurs(www.AfriBusinessHub.com) and creative media solutions(www.tweaksmall.com). After a relatively successful product testing, we are officially launching on the 1st of August 2015. The company currently exist as a sole-proprietorship. However, plans are ongoing to upgrade the company to a limited liability by the end of 2015. The Plan The objective of this business plan is to introduce Udiit.com and give an insight to what it stands for, where it's coming from and going to, and what steps it has taken to get there.
Chart: Highlights
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1.1 Objectives
There are two major objectives to this business plan, which includes:
1. Create operations blueprint for smooth running of the company.
2. Clearly articulate the purpose of our existence and why we do what we do so that staff and
partners would understand where we are coming from and where we are headed.
1.2 Mission
To empower lives and raise pacesetters in our communities through audio podcast.
1.3 Keys to Success
1. Our ability to ensure that our content providers(mentors) are proven authorities in their respective fields; this will ensure top quality resource materials. 2. Ensuring that content provided are specifically tailored for Africans with the context of Africa's everyday reality. 3. Continually sensitizing people on the need to seek and get knowledge in other to adequately develop themselves, their businesses, their relationships and the society at large.
2.0 Company Summary
Udiit.com is an audio download platform; bringing together great teachings from renowned life & career coaches, first in Africa and then, beyond.
2.1 Company Ownership
Udiit.com is a product of Tweaks Media, a duly registered business with the Corporate Affairs Commission(CAC) in Nigeria in November 2011. Tweaks media has it's base in Lagos, Nigeria. The company didn't start operation up until December 2014, when it started operation partly by developing online based products that would serve the needs of Africa at large in the areas of film-making(www.filmfacultyafrica.com), Entrepreneurial connect between Africans(www.AfriBusinessHub.com) and creative media solutions(www.tweaksmall.com).
After a relatively successful product testing, we are officially launching on the 1st of August 2015.
The company currently exist as a sole-proprietorship however, plans are ongoing to upgrade the company to a limited liability by the end of 2015.
2.2 Start-up Summary
Our start-up costs come to $68,000, which is mostly web application development, promotion and expenses associated with opening our first office. The start-up costs are
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to be financed by direct owner investment together with a boost from financial awards gathered through business competitions.
Table: Start-up
Start-up Requirements Start-up Expenses Registration & Legal services $2,500 Corporate Office setup $15,000 Web hosting $6,000 Staff recruitment $9,000 Promotions $25,000 Mobile apps development (android & ios) $5,500 Total Start-up Expenses $63,000
Start-up Assets Cash Required $5,000 Other Current Assets $0 Long-term Assets $0 Total Assets $5,000
Total Requirements $68,000
Chart: Start-up
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3.0 Products
Udiit.com stocks the largest collection of motivational, inspirational, therapy resource in compressed audio format(mp3), from top life, management, business and career coaches around the world for downloads. The content(mp3 files) are provided by the individual mentors(vendors).
4.0 Market Analysis Summary
Udiit.com will focus on two basic market segments; 1. Vendors(mentors): These are renowned life, career, business,manaement coaches and therapist who are signed up to provide their audio product for sale. 2. Customers: These are knowlegde seekers ranging from Students (all levels), youths, entrepreneurs, leaders, etc.
4.1 Market Segmentation
The market is quite broad but we are currently focused on Entrepreneurs, high school and college leavers because, we believe they have a major role to play in the growth of the society and also are the ones seeking to improve themselves the most.
Table: Market Analysis
Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Growth CAGR Vendors (mentors) 25% 120 150 188 235 294 25.11% Customers 50% 200,000 300,000 450,000 675,000 1,012,500 50.00% Total 49.99% 200,120 300,150 450,188 675,235 1,012,794 49.99%
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Chart: Market Analysis (Pie)
Vendors (mentors)
Customers
Market Analysis (Pie)
4.2 Target Market Segment Strategy
1. Developing strategy to sensitize people online (social media) and locally(Lagos, Nigeria for a start) of the need to get knowledge, guidance and mentoring in other to adequately develop themselves, their businesses, their relationships and the society at large. 2. By creating more awareness (locally & globally) as well as social campaigns that will involve both the knowledge providers and knowledge gainers/seekers, with the sole aim of building a complete leader out of people. 3. We are taking extra steps to ensure that our content providers are proven authorities in their respective fields. This is to ensure top quality resource materials (podcast). 4. By focusing on assembling content that are specifically tailored for Africans, with the context of Africa's everyday reality. In summary, we will develop our message, communicate it, and fulfill our commitment to adding value to the lives of people.
4.3 Industry Analysis
The human empowerment/personal development industry consists of many facilities or persons(coaches and therapist) that provide individual services. Udiit.com's direction is to establish itself as the largest collection of personal development resource materials(podcast) in a compressed audio format(mp3), from renowned life, management, business and career coaches from Africa and around the world for downloads.
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4.3.1 Competition and Buying Patterns
We understand that people pay more for their desires than their need, so we are providing them with a poll of products that will help them improve their personal value.
We also understand that we are up against a steep competition from the mentors(vendors) themselves as they individually provide these products on their websites. So we are in turn offering them - if they join us - more brand exposure, greater turnover with no direct cost on marketing, staffing and maintenance, and a chance to be a part of a greater goal - Empowering lives and raising pacesetters in Africa.
5.0 Web Plan Summary
• The Udiit.com will be the estore where all request and purchases are made. It is essential that visitors are able to preview each audio file before they purchase.
The signup and checkout processes has to be simplified. It will be of great value if visitors can register directly with their social media account.
• It needs to be a responsive, simple, yet elegant and well structured; a website that stays current with the latest trends and provides information /interacts with our customers and a portal to our products. The layout design should be such that visitors can at a glance access products.
• A site that is too flashy, or tries to use too much of the latest Shockwave of Flash technology can be overdone, and cause potential clients to look elsewhere for products or information.
5.1 Website Marketing Strategy
All our marketing strategy as discussed in earlier topics will be focus on attracting leads to our website because it is our marketplace, not ignoring the inclusion of the URL in all printed material, newsletters and online campaigns.
5.2 Development Requirements
All development processes and maintenance of our web platform will be managed internally by our team of developers.
6.0 Strategy and Implementation Summary
Our main strategy is to encourage and stir up in people the need to get knowledge and motivation through life empowering audio podcast, in order to develop themselves and be prepared for every level of their lives. We also seek to position ourselves as a worthy companion offering content that will sustain their growth.
6.1 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats being faced.
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6.1.1 Strengths
FOR VENDORS
• A well structured user dashboard to manage their store activities;
• A online real-time support service for inquires;
• Reasonable commission rate for each successful sales.
FOR CUSTOMERS
• A largest collection of audio podcast from most sought after coaches and therapist;
• A online wallet system to save up or store money for eventual purchases;
• Online payment gateway for easy transaction;
• Redeemable Points accumulation for items bought, customer loyalty and referral rewards.
6.1.2 Weaknesses
• A total dependence on technology to deliver services. This can be a problem when there are short of power, natural disaster that could affect internet service providers. • Lack of multi-language translation of products sold.
6.1.3 Opportunities
1. Growing population of daily Internet users. The importance of the Internet cannot be over emphasized. It is fast becoming an integral part of our everyday life activities including our businesses. We intend to take advantage of this when planning our promotional strategies.
2. Social bonds fostered by the new Internet communities. The Internet is bringing people from across the world together unlike any other communication medium. Udiit.com being an internet based service provider will leverage on this to extend her reach, with a significant percentage of our target market still not knowing we exist.
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3. The New Africa. As the new Africa arises and more individuals are exposed to information technology, we will be able to convert them to customers by offering them a solution that will help them achieve their life goals efficiently.
4. Rapidly falling cost of Internet access. The cost of access to the Internet for home users is dropping rapidly. Internet access may become so cheap and affordable that more people in Africa can access it thus increase our target segment.
5. Online payment integration: As more countries and businesses in Africa are exposed to internet, online payment service providers will be open to them. We in turn will benefit from this development.
6.1.4 Threats
• Lack of Government partnership with the private sector in Africa to provide basic amenities - like power - for businesses to leverage on. This in turn would increase cost of production if the private sector has to do everything themselves. • Internet availability. • Website hackers and security threats.
6.2 Competitive Edge
Our competitive edge is that beyond sales and profit, we seeks to encourage and develop in people a learning culture through listening to empowering audio materials(podcast) that can help them become a better version of themselves. And because they want to always stay on top of their game, they'll see us a go-to place to refuel for the next level in their lives - they'll keep coming back. By building a better leader or better version of themselves, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients (not just mere customers) understand what we offer them and why they need it.
6.3 Marketing Strategy
The marketing strategy is the core of the main strategy: 1. Emphasize the need to become a better version of themselves. 2. Build a relationship business. 3. Focus on key target segment. 4. Satisfied customers (clients) are our best marketing tool. When they experience an improvement in their lives after using our product, they'll talk about it with their friends, and associates out of excitement - which most likely will attract more leads to us eventually be converted to customers
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6.4 Sales Strategy
Considering that our marketing strategy is developed around sensitizing and stiring up (in people) the need to be a better version of themselves, we will easily convert them to customers by;
1. Offering them a wide range of resource from a poll of award winning and proven mentors in the industry; through targeted advertising, direct mail, website optimization and direct sales.
2. An option to preview each item before purchase;
3. A fast loading website and an easy checkout system would encourage repeated visits;
4. A variety of discount and redeemable points accumulation from purchases and referrals.
Also, Sales will be targeted to Nigerian predominantly, then other english speakin African countries in the early stages as this market alone exceeds 7 million people in our target segment. Plans to expand into the European and Asia markets are scheduled for 2017 and beyond.
6.4.1 Sales Forecast
As indicated in the table, our sales are forecasted to increase rapidly - because we are focused on getting customers to come back with at least 2 of their friends - with an annual growth rate of approximately 15%.
Table: Sales Forecast
Sales Forecast Year 1 Year 2 Year 3 Unit Sales Audio messages (podcast) 45,880 52,762 63,314 - 0 0 0 Total Unit Sales 45,880 52,762 63,314
Unit Prices Year 1 Year 2 Year 3 Audio messages (podcast) $1.00 $1.00 $1.00 - $0.00 $0.00 $0.00
Sales Audio messages (podcast) $45,880 $52,762 $63,314 - $0 $0 $0 Total Sales $45,880 $52,762 $63,314
Direct Unit Costs Year 1 Year 2 Year 3 Audio messages (podcast) $0.35 $0.35 $0.35 - $0.00 $0.00 $0.00
Direct Cost of Sales Audio messages (podcast) $16,058 $18,467 $22,160 - $0 $0 $0 Subtotal Direct Cost of Sales $16,058 $18,467 $22,160
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Chart: Sales Monthly
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Chart: Sales by Year
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6.5 Milestones
The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
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Table: Milestones
Milestones Milestone Start Date End Date Budget Manager Department Purchase VPS hosting 11/4/2015 12/31/2015 $6,000 ekemini Technical Enlist 1st batch of mentors 11/9/2015 12/31/2015 $0 martins Strategy & Marketing Company registration (LTD) 11/9/2015 12/31/2015 $400 legal partner legal Mobile app development (Android) 1/1/2016 2/29/2016 $0 ekemini Technical Corporate office rent(2yrs) & setup in Lagos
1/1/2016 2/29/2016 $15,000 ekemini Administration
Business brochure (content & design)
11/4/2015 12/4/2015 $0 jude Creatives
Vendor proposals (content & design)
11/4/2015 12/4/2015 $0 jude Creatives
Finalize deal with Jude, Martins & lawyer
11/4/2015 11/14/2015 $0 ekemini Administration
Migrate website to now VPS hosting 11/4/2015 12/31/2015 $0 ekemini Technical Research on Android app development
11/4/2015 12/4/2015 $0 ekemini Technical
Totals $21,400
Chart: Milestones
Nov `15 Dec Jan `16 Feb
Research on Android app development
Migrate website to now VPS hosting
Finalize deal with Jude, Martins & lawyer
Vendor proposals (content & design)
Business brochure (content & design)
Corporate office rent(2yrs) & setup in Lagos
Mobile app development (Android)
Company registration (LTD)
Enlist 1st batch of mentors
Purchase VPS hosting
Milestones
7.0 Management Summary
Our management philosophy is based on growth, responsibility and mutual respect. People who work at Udiit want to work at Udiit because we have an environment that encourages creativity, growth and achievement.
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7.1 Personnel Plan
The Personnel Plan chart reflects how we will utilize our people's assets. Most of them will be cross trained.
However, we will only be hiring the most needed hands at the initial phase of our operations between 1 - 3yrs.
Administrative/Research/HR
General Manager
Human Resource manager
Accountant/Secretary
Researchers and writers
Creatives/Technical
Designer team
Web team
Marketing/PR
Marketer
Business developer/Strategist
Table: Personnel
Personnel Plan Year 1 Year 2 Year 3 Administrative/Research/HR $3,000 $3,600 $3,900 Strategy/Marketing/PR $3,000 $3,600 $3,900 Creatives/Technical $6,000 $7,200 $7,500 Total People 5 7 7
Total Payroll $12,000 $14,400 $15,300
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8.0 Financial Plan
CAPITAL RAISING
The company intends to raise an am0ount of approximately $68,000 of seed capital from entering for grant competitions and awards within its first year.
8.1 Start-up Funding
The following table shows how these start-up costs will be funded by founder and grants accumulated from investors.
Table: Start-up Funding
Start-up Funding Start-up Expenses to Fund $63,000 Start-up Assets to Fund $5,000 Total Funding Required $68,000
Assets Non-cash Assets from Start-up $0 Cash Requirements from Start-up $5,000 Additional Cash Raised $0 Cash Balance on Starting Date $5,000 Total Assets $5,000
Liabilities and Capital Liabilities Current Borrowing $0 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $0
Capital Planned Investment Owner $0 Investor $0 Additional Investment Requirement $68,000 Total Planned Investment $68,000
Loss at Start-up (Start-up Expenses) ($63,000) Total Capital $5,000
Total Capital and Liabilities $5,000
Total Funding $68,000
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8.2 Important Assumptions
The table below presents the assumptions used in the financial calculations of this business plan.
8.3 Break-even Analysis
Our break-even analysis is based on our cost and price structure at present. As we grow, the fixed costs will grow in proportion to our employee numbers.
Table: Break-even Analysis
Break-even Analysis Monthly Units Break-even 2,582 Monthly Revenue Break-even $2,582
Assumptions: Average Per-Unit Revenue $1.00 Average Per-Unit Variable Cost $0.35 Estimated Monthly Fixed Cost $1,678
Chart: Break-even Analysis
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8.4 Projected Profit and Loss
The following table and charts show the projected profit and loss. Monthly projections are included in the appendix.
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Table: Profit and Loss
Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $45,880 $52,762 $63,314 Direct Cost of Sales $16,058 $18,467 $22,160 Other Costs of Sales $0 $0 $0 Total Cost of Sales $16,058 $18,467 $22,160
Gross Margin $29,822 $34,295 $41,154 Gross Margin % 65.00% 65.00% 65.00%
Expenses Payroll $12,000 $14,400 $15,300 Marketing/Promotion $3,600 $3,600 $3,600 Depreciation $0 $0 $0 Rent $2,500 $2,500 $2,500 Utilities $480 $480 $480 Internet $960 $960 $960 Payroll Taxes $0 $0 $0 Other $600 $600 $600
Total Operating Expenses $20,140 $22,540 $23,440
Profit Before Interest and Taxes $9,682 $11,755 $17,714 EBITDA $9,682 $11,755 $17,714 Interest Expense $0 $0 $0 Taxes Incurred $2,905 $3,527 $5,314
Net Profit $6,777 $8,229 $12,400 Net Profit/Sales 14.77% 15.60% 19.58%
Chart: Profit Monthly
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Chart: Profit Yearly
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Chart: Gross Margin Monthly
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Chart: Gross Margin Yearly
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8.5 Projected Cash Flow
The following table shows cash flow for the three years, and the chart illustrates monthly cash flow in the first year. Monthly cash flow projections are included in the appendix.
Table: Cash Flow
Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Received Cash from Operations Cash Sales $45,880 $52,762 $63,314 Subtotal Cash from Operations $45,880 $52,762 $63,314
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 $45,880 $52,762 $63,314
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations Cash Spending $12,000 $14,400 $15,300 Bill Payments $19,172 $35,587 $35,164 Subtotal Spent on Operations $31,172 $49,987 $50,464
Additional Cash Spent
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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 $31,172 $49,987 $50,464
Net Cash Flow $14,708 $2,775 $12,850 Cash Balance $19,708 $22,483 $35,333
Chart: Cash
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8.6 Projected Balance Sheet
The following table is the Projected Balance Sheet. The monthly estimates are included in the appendix.
Table: Balance Sheet
Pro Forma Balance Sheet Year 1 Year 2 Year 3 Assets Current Assets Cash $19,708 $22,483 $35,333 Other Current Assets $0 $0 $0 Total Current Assets $19,708 $22,483 $35,333
Long-term Assets Long-term Assets $0 $0 $0 Accumulated Depreciation $0 $0 $0
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Total Long-term Assets $0 $0 $0 Total Assets $19,708 $22,483 $35,333
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities Accounts Payable $7,931 $2,477 $2,927 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $7,931 $2,477 $2,927
Long-term Liabilities $0 $0 $0 Total Liabilities $7,931 $2,477 $2,927
Paid-in Capital $68,000 $68,000 $68,000 Retained Earnings ($63,000) ($56,223) ($47,994) Earnings $6,777 $8,229 $12,400 Total Capital $11,777 $20,006 $32,406 Total Liabilities and Capital $19,708 $22,483 $35,333
Net Worth $11,777 $20,006 $32,406
8.7 Business Ratios
The table shows projected business ratios.
Table: Ratios
Ratio Analysis Year 1 Year 2 Year 3 Industry Profile Sales Growth n.a. 15.00% 20.00% 2.91%
Percent of Total Assets Other Current Assets 0.00% 0.00% 0.00% 46.83% Total Current Assets 100.00% 100.00% 100.00% 72.99% Long-term Assets 0.00% 0.00% 0.00% 27.01% Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 40.24% 11.02% 8.28% 54.90% Long-term Liabilities 0.00% 0.00% 0.00% 31.83% Total Liabilities 40.24% 11.02% 8.28% 86.73% Net Worth 59.76% 88.98% 91.72% 13.27%
Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 65.00% 65.00% 65.00% 89.77% Selling, General & Administrative Expenses 50.23% 49.40% 45.42% 39.59% Advertising Expenses 7.85% 6.82% 5.69% 2.89% Profit Before Interest and Taxes 21.10% 22.28% 27.98% 14.31%
Main Ratios Current 2.49 9.08 12.07 1.12 Quick 2.49 9.08 12.07 1.10 Total Debt to Total Assets 40.24% 11.02% 8.28% 86.73% Pre-tax Return on Net Worth 82.21% 58.76% 54.66% 208.32% Pre-tax Return on Assets 49.13% 52.29% 50.13% 27.64%
Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin 14.77% 15.60% 19.58% n.a Return on Equity 57.55% 41.13% 38.26% n.a
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Udiit.com
Activity Ratios Accounts Payable Turnover 3.42 12.17 12.17 n.a Payment Days 27 63 28 n.a Total Asset Turnover 2.33 2.35 1.79 n.a
Debt Ratios Debt to Net Worth 0.67 0.12 0.09 n.a Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios Net Working Capital $11,777 $20,006 $32,406 n.a Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios Assets to Sales 0.43 0.43 0.56 n.a Current Debt/Total Assets 40% 11% 8% n.a Acid Test 2.49 9.08 12.07 n.a Sales/Net Worth 3.90 2.64 1.95 n.a Dividend Payout 0.00 0.00 0.00 n.a
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Appendix
Table: Sales Forecast
Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Unit Sales Audio messages (podcast) 280 480 840 1,120 1,400 1,680 2,940 3,360 3,780 6,000 9,000 15,000 - 0 0 0 0 0 0 0 0 0 0 0 0 Total Unit Sales 280 480 840 1,120 1,400 1,680 2,940 3,360 3,780 6,000 9,000 15,000
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Audio messages (podcast) $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Sales Audio messages (podcast) $280 $480 $840 $1,120 $1,400 $1,680 $2,940 $3,360 $3,780 $6,000 $9,000 $15,000 - $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Sales $280 $480 $840 $1,120 $1,400 $1,680 $2,940 $3,360 $3,780 $6,000 $9,000 $15,000
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Audio messages (podcast) 35.00% $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 - 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Direct Cost of Sales Audio messages (podcast) $98 $168 $294 $392 $490 $588 $1,029 $1,176 $1,323 $2,100 $3,150 $5,250 - $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Direct Cost of Sales $98 $168 $294 $392 $490 $588 $1,029 $1,176 $1,323 $2,100 $3,150 $5,250
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Appendix
Table: Personnel
Personnel Plan Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Administrative/Research/HR $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 Strategy/Marketing/PR $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 Creatives/Technical $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Total People 5 5 5 5 5 5 5 5 5 5 5 5
Total Payroll $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
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Appendix
Table: Profit and Loss
Pro Forma Profit and Loss Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales $280 $480 $840 $1,120 $1,400 $1,680 $2,940 $3,360 $3,780 $6,000 $9,000 $15,000 Direct Cost of Sales $98 $168 $294 $392 $490 $588 $1,029 $1,176 $1,323 $2,100 $3,150 $5,250 Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cost of Sales $98 $168 $294 $392 $490 $588 $1,029 $1,176 $1,323 $2,100 $3,150 $5,250
Gross Margin $182 $312 $546 $728 $910 $1,092 $1,911 $2,184 $2,457 $3,900 $5,850 $9,750 Gross Margin % 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%
Expenses Payroll $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Marketing/Promotion $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rent $2,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Utilities $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 Internet $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Total Operating Expenses $3,970 $1,470 $1,470 $1,470 $1,470 $1,470 $1,470 $1,470 $1,470 $1,470 $1,470 $1,470
Profit Before Interest and Taxes ($3,788) ($1,158) ($924) ($742) ($560) ($378) $441 $714 $987 $2,430 $4,380 $8,280 EBITDA ($3,788) ($1,158) ($924) ($742) ($560) ($378) $441 $714 $987 $2,430 $4,380 $8,280 Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Incurred ($1,136) ($347) ($277) ($223) ($168) ($113) $132 $214 $296 $729 $1,314 $2,484
Net Profit ($2,652) ($811) ($647) ($519) ($392) ($265) $309 $500 $691 $1,701 $3,066 $5,796 Net Profit/Sales -947.00% -168.88% -77.00% -46.38% -28.00% -15.75% 10.50% 14.88% 18.28% 28.35% 34.07% 38.64%
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Appendix
Table: Cash Flow
Pro Forma Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Received Cash from Operations Cash Sales $280 $480 $840 $1,120 $1,400 $1,680 $2,940 $3,360 $3,780 $6,000 $9,000 $15,000 Subtotal Cash from Operations $280 $480 $840 $1,120 $1,400 $1,680 $2,940 $3,360 $3,780 $6,000 $9,000 $15,000
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 $280 $480 $840 $1,120 $1,400 $1,680 $2,940 $3,360 $3,780 $6,000 $9,000 $15,000
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations Cash Spending $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Bill Payments $64 $1,877 $297 $492 $644 $797 $967 $1,639 $1,868 $2,129 $3,354 $5,043 Subtotal Spent on Operations $1,064 $2,877 $1,297 $1,492 $1,644 $1,797 $1,967 $2,639 $2,868 $3,129 $4,354 $6,043
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 $1,064 $2,877 $1,297 $1,492 $1,644 $1,797 $1,967 $2,639 $2,868 $3,129 $4,354 $6,043
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Appendix
Net Cash Flow ($784) ($2,397) ($457) ($372) ($244) ($117) $973 $721 $912 $2,871 $4,647 $8,957 Cash Balance $4,216 $1,819 $1,362 $990 $745 $628 $1,601 $2,322 $3,234 $6,104 $10,751 $19,708
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Appendix
Table: Balance Sheet
Pro Forma Balance Sheet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Assets Starting Balances Current Assets Cash $5,000 $4,216 $1,819 $1,362 $990 $745 $628 $1,601 $2,322 $3,234 $6,104 $10,751 $19,708 Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Current Assets $5,000 $4,216 $1,819 $1,362 $990 $745 $628 $1,601 $2,322 $3,234 $6,104 $10,751 $19,708
Long-term Assets Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Assets $5,000 $4,216 $1,819 $1,362 $990 $745 $628 $1,601 $2,322 $3,234 $6,104 $10,751 $19,708
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities Accounts Payable $0 $1,867 $281 $471 $618 $766 $913 $1,577 $1,798 $2,019 $3,189 $4,770 $7,931 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 $1,867 $281 $471 $618 $766 $913 $1,577 $1,798 $2,019 $3,189 $4,770 $7,931
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Liabilities $0 $1,867 $281 $471 $618 $766 $913 $1,577 $1,798 $2,019 $3,189 $4,770 $7,931
Paid-in Capital $68,000 $68,000 $68,000 $68,000 $68,000 $68,000 $68,000 $68,000 $68,000 $68,000 $68,000 $68,000 $68,000 Retained Earnings ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) ($63,000) Earnings $0 ($2,652) ($3,462) ($4,109) ($4,628) ($5,020) ($5,285) ($4,976) ($4,477) ($3,786) ($2,085) $981 $6,777 Total Capital $5,000 $2,348 $1,538 $891 $372 ($20) ($285) $24 $524 $1,214 $2,915 $5,981 $11,777 Total Liabilities and Capital $5,000 $4,216 $1,819 $1,362 $990 $745 $628 $1,601 $2,322 $3,234 $6,104 $10,751 $19,708
Net Worth $5,000 $2,348 $1,538 $891 $372 ($20) ($285) $24 $523 $1,214 $2,915 $5,981 $11,777
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