TUNNEL VISION

Business Plan

Content

1. Executive summary 2. Company: 2.1 Objectives 2.2 Mission 2.3 Competitive Strategies 2.4 Growth Strategy 3. Management 4. Marketing Plan: 4.1 SWOT 4.2 The market 4.3 Current competitive situation 4.4 Threats, Opportunities & Key issues 4.5 Disadvantages or threats of the Tunnel Advertising 4.6 Target Market/Key Segments 4.7 Objectives 4.8 Marketing Strategy5. Operations 5.1 Action Programs 5.2 Controls6. Financial Summery 6.1 Start up costs 6.2 Recurring costs 6.3 Sales Forecast 6.4 Sales Forecast for 2011 6.5 Sales Forecast for 2012 6.6 Sales Forecast for 2013 6.7 Income Statement 6.8 Balance Sheet 6.9 Cash Flow

Appendices

1. Executive Summary

In recent years, technology and the digital age have helped revolutionize the advertising industry. LED flat screens, blue tooth, and digital technologies have replaced ink and paper as the primary resource platforms for companies to advertise through. From massive billboard sized screens along highways, to small motion censored advertisements along busy city streets, digital imaging advertisements can be seen all over the world. One area of our city that is the most heavily bombarded with advertisements is on the walls of our subways and busses, and along the walls of the platforms. One area that has not been taken advantage of however is that of the subway tunnels. There are kilometers of unused space that is viewed by millions of commuters everyday along those subway tunnel walls, and it is time to join the rest of the world in maximizing the value of this advertising medium. That is where our company Tunnel Vision comes in. All over the world, subway tunnels have been transformed into a platform for digital advertisements. From Tokyo to New York, commuters are shown a type of commercial through the windows of the subway as hundreds of screens lining the tunnel give passengers the perception that they are watching one screen, this is done by having the screens pre programmed to the timing of the train. The images displayed on the screens are timed to coincide with the passing train to give the perception of a video ad to the viewer. The screens are connected wirelessly to an external data centre that can managed remotely from anywhere, allowing the advertiser to update, change, fix or alter the campaign without ever having to actually go into the tunnels. This also allows for different videos and advertisements to be shown at different times, in accordance with the busier commuting times, or the various needs of the businesses that want to advertise. Now with the emergence of blue tooth technology as a popular norm for cell phone users, the technology can be combined offering commuters sound along with the images they see in the tunnel, and the possibilities for advertisements become endless. Signs placed along the entrances to subways, or radio adds can inform passengers to turn on their blue tooth as they enter the tunnel, and look for the new tunnel commercials for example; Tim Hortons, as they enter young and Bloor station. Raffles and prizes can be given away, for example every 100th rider may receive a coupon in the form of a text message on their cell phone for a free Tim Hortons Coffee. The possibilities with this technology and this concept are endless for advertisers, and businesses from all over the world will fight for the most populated subway stations, and the busiest

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time slots. Toronto and the TTC need to join the rest of the world in utilizing available technology, and advertising properties, to stay at the forefront of the advertising world.

2. Company

As a brand new innovative company we will be following an ethical business practice, by creating strong relationships with our clients, following the rules and regulations of our partners, being environmentally friendly, and most importantly bring a new form of advertisement to life.

2.1 Objectives

To become a leader in the digital advertising world by offering an advanced form of digital advertising in a rapidly growing and demanding market

To sell a unique, interactive, intelligent form of advertisement To help the companies who are advertising to reach their target

audience in a new fashioned and captivating way Increase sales for supporting companies by at least 20%

2.2 Mission

Our mission is to bring a new wave of technology to the forefront of the advertising world and share it with the city of Toronto by placing quality digital signage inside the TTC Tunnels. We strive for nothing but the best in customer service, and commit ourselves to delivering a sound return on the investment of our clients.

2.3 Competitive Strategy

Competitive Strategy: As we would be the first company to offer this service in Canada, price leadership would be fairly straightforward. There are companies which use in tunnel advertising in many American, European and Asian cities, so the Price charged per advertisement would be figured in relation to

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what these companies charge, but again, having no company in Canada currently using this form of advertising makes deciding on price much more flexible. Using the prices that CBS outdoor charges businesses to advertise on the walls of the subway platforms, or the walls of the subways and busses themselves, we can get a basis for what to charge. These prices are based on a Cost per thousand viewers rate, and therefore what we charge would be determined by the number of viewers our advertisement will reach every time a train passes.

Focus: Our focus would initially be on large corporations with easily recognizable logos as well as those with large advertising firms at their disposal. Some Toronto based ad firms that we would focus on include Dentsu, or WPP. We would also focus on the holding companies that run advertising firms with large corporations as their clients. This is mainly because initially, with such a new form of advertising, larger corporations would be able to afford the prices, as well, logo’s like the Nike checkmark, or McDonalds golden arches are much easier to display through images that are being seen from a train going by at the speed of 60km/hr.

Differentiation: What defines us as a different from other advertising companies is that we are located within the Toronto Subway Tunnel system. We are a digital form of advertising that has not been done before in the city of Toronto, in this format. Being the only company that owns this type of advertising real estate in Toronto we can charge competitively. As well being in an era of great technological advances we have stumbled upon a type of advertising that can be turned into a totally interactive experience. With the use of Bluetooth we are now able to send messages to peoples phones. These messages may contain, promotional material, coupons, or even passwords for contests.

2.4 Growth StrategyPenetration: Penetration into the market can be completed in a number of ways.

A massive public relations campaign would be necessary in order to get our company name out and our idea out to advertising companies, holding companies, and corporations themselves.

Videos of the advertising in action can be posted on social networking websites like YouTube, MySpace, Facebook, Twitter, ect. These websites can also be used to gain support for this type of advertising to be used in the city of Toronto, even prior to talking with the TTC.

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When the systems have been installed a PR event will be held in the TTC after hours. Heads of advertising companies, holding companies, and heads of large corporations will be invited to a sort of Wine and cheese on a subway car its self, and taken through the tunnels to be given a preview of just how versatile and revolutionary this type of advertising is.

Once the systems are established, installed, and up and running in the tunnels, then a series of radio commercials, TV commercials, and internet based adds will be created informing and reminding commuters of which tunnels to look for the advertisements.

Posters and billboards can also be established along streets where there are entrances to the TTC, as well as along the walls of TTC stations.

Market Development: Once one or two companies use our services, we feel that the market will largely develop its self. Being viewed by millions of people per day, this is a form of advertising that we feel businesses will be fiercely competing for. Certain stations like the connecting station of Younge and Bloor at its peak hours for commuters (7-9am, 4-6pm) will be the basis for the competition.

Product Development: the development of our product will be largely up to the advertising companies, and their creative process. Through our programming, we can allow these advertising firms to display essentially any video or image for their clients that can be displayed on an average television screen. The product of the screens themselves will be updated and upgraded with the advancement of technology. For example if flatter, thinner screens become available, we would upgrade the screens in the tunnel. If a faster connection for the programming systems become available the system will be upgraded. As well newer technologies if applicable will be added i.e. Bluetooth. By having a Bluetooth system installed alongside the screens, we would be able to send messages to riders cell phones with deals coupons, websites, codes for websites ect.. By using this technology along side our visual advertising will increase interest from companies as well increase revenues for the companies.

3. Management

Five students at Humber College founded Tunnel Vision.

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Bryan Strasberg, Keith Geary, Amandeep Singh Sahota, Navpreet Kaur Thetti, and S.m. Anowarul Alam.

Bryan Strasberg is the CEO of the Tunnel Advertising with a background that includes strong leadership skills, organizational skills, and the ability to delegate people and jobs. The CEO’s job will include but will not be limited to oversee marketing, promotions, delivery and quality of programs, products and services.Keith Geary is the Vice-president with the ability to delegate orders, over sees staff and make sure jobs are properly delegated and completed. The Vice Presidents job will be to make sure that company’s employees are doing everything they can do to make sure the company is making money, over seeing customer service and coordinating business between Finance and Account Executives.

Amandeep Singh Sahota is going to be in charge of Finance. He will be in charge of delegating funds accordingly, making sure that the company has enough funds at all time to maintain operations, to collaborate with the Account Executives to establish pricing models and cost structures.

Navpreet Kaur Thetti and S.m. Anowarul Alam are both going to be Account Executives. They will be in charge of maintaining client relationships, making sure clients are pleased with our work and what they asked for, as well they will be in charge of creating partnerships with key clients and ad agencies.

There will be three people in charge of uploading the advertisements, maintaining the systems, and over all maintenance.

4. Marketing Plan 4.1 SWOT analysis is a way to help you realize where your firm stands compared to your competition.It takes four factors (strengths, weaknesses, opportunities and threats) and combines them in such a way that your firm can create a direction. Without an objective for the SWOT analysis, the process does not reveal much. The firm must decide why a SWOT analysis is necessary and what it will be used for. The critical SWOT analysis for our company Tunnel Vision is as follows: Strengths

Innovation and creativity: High level of innovation and creativity that makes a good and intelligent utilization of TTC

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tunnels empty spaces, which make it easy to achieve the goals of advertisers, and creates an enjoyable form of advertising.

Long lasting impression: Our advertising firm has the ability to catch the attention of the public easily, rate of impression frequency is very high and we have the ability to create a long period of impression.

Total Control: We are installing sensors that will record in real time the speed of passing train that will make it possible for us to take total control of image alignment.

Special effects: Tunnel Vision is the only system that allows special effects, for example animations can move left or right as desired.

Auto-Maintenance: Individual circuits, control boards and light boards are triggered precisely by the system. Any system failures are reported in real time to operator, where the operator will have a two way communication with the monitors and be able to fix them remotely

24/7 System Monitor - Our Company’s System is completely controlled and monitored via the Internet. So there are hardly any chances of breakdown.

Weakness: High start up cost: Because of the high start up costs we are

gong to have to take loans from banks, which will put us into financial debt, where we will be putting most of our revenue towards paying off the bank loans, and the equipment costs.

Networking Contacts: Because we are a brand new company we have to create relationships with companies and it might be hard to do at first and might take some time, gaining companies trust.

Opportunities: Competitors approved: Though more and more competitor’s

copy our innovative ideas and trend setting concept into their advertising plan, there is no competitor for in tunnel advertising concept in Toronto.

Wider reach for target audience: Our concept of tunnel advertising allows for much wider reach for target audiences due to the fact that a high volume of persons are being transported on TTC subways.

Monopoly in Toronto: As the concept is newly introduced in Toronto we have no competitors against us, so in this way we can create a monopoly in Tunnel Advertising in Toronto.

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Profitable business: Lower maintenance cost and high revenues combined with reduced hardware can make a profitable business for our company.

Helpful to clients: We can prove to be a great help to our clients for whose products we will be advertising. They can advertise their products in an entirely different manner and we can create a good customer relation.

Threats: Changes in the technological environment: The technology

is constantly changing, ever changing technology may pose a possible threat to our Tunnel Advertising concept as in the case the technology we are using is taken over by the advent of new technology.

Possible threat by competitors: Although our company has a monopoly in Toronto there are possibilities that competitors may enter into our market and capture our share of market.

Changes in the government regulations: There may be possibilities of changes in government regulations, which may not be in favor of our company, which can also be a possible threat to our company.

4.2 The Market

The market that we will be targeting is agencies and companies. They will be the ones who will be renting the space from us. The following facts are to show why they should advertise with us. The following are facts and figures of how many people use the subway, how much the subway makes on average in a day, how long the track is, what the busiest stations at peek time are and how many people go through them at those times.

Daily Trips

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Revenue passengers (Fares collected)-793,000 Sales and Transfer fare -1,176000. Of the 150 surface routes, 148 make 243 connections with the

Subway/ Scarborough RT system during the A.M rush period (Surface routes increased by 1 in 2008 – Mount Dennis).

Thursday, October 30, 2008: highest one day ridership- 1, 68600. Average Daily ridership 94,2600

Busiest Stations (Estimated passenger trips to and from trains daily)

Bloor (Younger- University- Spadina) – 191,800 Yonge (Bloor – Dan forth) – 188,600 St. George (Bloor – Dan forth) – 122,000 St George (Younge – University – Spadina) – 121,100 Union – 95,300 Number of Stations – 69 (subway interchange counted once) Number of escalators - 294 Number of Elevators – 76 Sytem length 68.3 kilometres(42.4mi)

2008 2007 Increase/ Decrease

Passesnger Trips

466,700,000 459,769,000 6,931,000

Number of Lines2008 2007 Increase/

DecreaseSubway Lines 3 3 -

Subway lengths2008 2007 Increase/

DecreaseYounge-University-Spadina

18.8 18.8 -

Bloor-Danforth 16.3 16.3 -Shepard 3.4 3.4 -Scarborough RT 4.0 4.0 -

Kilometers operated (In thousands)

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2008 2007 Increase/ Decrease

Subway 46,5444 46,310 234

·      Bloor (Younger- University- Spadina) 

·      Yonge (Bloor – Dan forth) 

·      St. George (Bloor – Dan forth)  

·      St George (Younge – University – Spadina)  

·      Union )

020,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

Number of passengers a day

 Number of passengers a day

4.3 Current Competitive Situation

There is currently one major player competing for the space in the subway tunnels; New York-based Sub media LLC. The company works with the cities, government, subway networks, and advertising companies to implement their systems in countries around the world. Currently Sub media have systems throughout the United States, as well as various European and Asian Countries. Sidetrack, who was based in Winnipeg, Manitoba was the first of its kind in Canada. Due to refusal to cooperate with the guidelines of the TTC they were not able to follow through with their idea of tunnel advertising. Due to too many complications with their management they no longer exist. By creating our company Tunnel Vision, we will be creating a monopoly in this industry within Canada. We plan on becoming partners with the city of Toronto on this project to give further assurances in our success. This

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will allow the city to make a profit off of our revenue, which can be put back into transportation or other government programs.

4.4 Advantages and Opportunities of Tunnel Advertising

There are various advantages of using this new cutting edge medium of reaching consumers:

1) The motion picture like subway medium has the ability to reach a large number and a wide range of people. A single tunnel display can reach between one and three million riders a day depending on what city and between which subway stations it is placed in.

2) Subway lines can carry up to 15 times the traffic of a four-lane highway. This medium has also the ability to grab and hold people’s attention while riding on the subway. Many of subway riders are less distracted than pedestrians or automobile drivers are.

3) It has also been proven that this type of medium generates a high recall rate. Independent market research shows a high percentage of viewers recall the advertising content. It can differentiate the advertisers from other marketing mediums. The motion picture nature of the display and the new environment helps to differentiate the message from other city center advertisements.

4) Finally the tunnel advertising targets the audiences in the centre of the major cities. Major cities around the world host major subway systems in their key business, shopping, and residential districts.

4.5 Disadvantages and Threats of Tunnel Advertising

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There are of course a few disadvantages of using this technology. The screens used for in tunnel advertising are not typically 4:3 ratios compliant and may require some conversion of the media.

Because of the speed of the subway may vary the text/logos may be difficult to read. With the sidetrack system the riders see multiple frames. Train conductors can see a system, which could potentially present a threat to passenger/train safety. Some methods use advanced electronics that require a high level of calibration for each tunnel. Of course if the train fails to meet a minimum speed requirement the advertisement won’t be displayed properly and will lose its ability to inform consumers...

4.6 Target Market/Key Segments

This new medium provides access to a diverse audience. Although the image of a typical transit rider may be someone who cannot afford a car, does not have a need for a car because they live on a bus/subway line, or even park at the subway station to get to work, market research shows that many riders are above average in education and income. Therefore it is not surprising that some of the earliest adopters of the new technology have been auto manufacturers. Well-established brands such as these, or other manufacturer and service providers can use this medium to reiterate the message that they have already communicated for television and other mediums. This allows them to gain efficiencies in the production cost of creating advertisements, which can be spread over more media. Tunnel advertisements also provide a deeper connection with the younger generations, who are notoriously difficult and skeptical to reach. This market segment is much more likely to be engaged by these advertisements, and therefore advantageous for manufacturers of merchandise geared towards Teens & Gen Y- ers.

4.7 Objectives

Our company by investing in this medium of advertising expects our ads to reach a large number of people, grab and hold the attention of the potential consumers, generate a high recall, differentiate ourselves from the competition and finally target audiences in the centre of the large metropolitan cities. A single tunnel display can reach between one

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and three million riders a day, most of them less distracted than pedestrians or automobile drivers might be. Subway lines can carry up to 15 times the traffic of a four-lane highway. Market researchers have shown that 92% of subway riders see the advertisements. The motion picture nature of the display and the new environment helps to differentiate the message from other centre city advertisements as well as, help separate the company from the competitor’s promotional strategies. Major cities in the world host subway systems in their key business, shopping and residential districts, this allows the companies to capitalize on strategic positioning of the advertisements. Our company has taken notice of this cutting edge technology and taken advantage of this type of advertisement in our marketing plan. Our main objective is to do underground advertising in such a manner so that it catches the attention of the commuters in a way that it was never done before...

4.8 Marketing StrategyOur marketing strategy, keeping in view Kotler’s 4 P’s would be:

Product: We would be selling advertising real estate to ad agencies that have clients that would be interested in advertising their companies in side the Toronto Subway Tunnels. Strong PR before the release of the real estate will market the product idea. After we get a strong pull from media because of the PR the idea will start to market its self.

Place: With respect to place our marketing strategy, we would be introducing tunnel advertising to the busiest subway satiations of the TTC. By doing so we will help companies gain the attention of the maximum number of subway rider’s .The stations we will be targeting include:

Bloor (Younge- University- Spadina) – 191,800 Younge (Bloor – Dan forth) – 188,600 St. George (Bloor – Dan forth) – 122,000 St George (Younge – University – Spadina) – 121,100

Promotion: We will be promoting our services through various means such as: Radio, flyers, Newspapers, TV, Tradeshows, Public relation, magazines posters, as well as online You Tube videos and bill boards throughout Toronto.

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5. Operations

Operational Plan:

For our critical path refer to 4.8

Equipment: The equipment that we will be using is supplied by NetX and consists of: Media player, CTLXO-P Control Device, DPPXV3C-P Data Pipe Server, DPPXC3-P Data pipe plant, DPPXV3c-M support data pipe server, DPPX3C-P Support data pipe client, XLKXC3-P XML Link, WPDXC2-P Web Pad, WPDXC2-M web pad support.

Location: We will secure a small office space, no more than 1000 square feet, at Yonge and Bloor, preferably within the HSC building. The purpose of this location is to be in closest possible proximity to the main tunnels we will initiate the advertising systems in (Yonge and Bloor station). This allows quick and easy maintenance should something go wrong with the systems or screens in the tunnel. Also, as the system has a wireless connection set up between the screens themselves in the tunnel, and the programming hub in our office space, this would greatly reduce the possibility that the signal between the two would be lost, as well as ensuring optimal speed.

Human Resources: Since much of the day to day operations are completed by programming, and computers most of the man power needed to keep Tunnel Vision operational can be found within our in

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house employees. Installation of the screens, programming devices, and the computer systems will be completed by our in house technicians, under supervision of TTC technicians qualified to work within the tunnels. Maintenance and up keep however must be completed by TTC employees themselves, and this would be stipulated within our partnership agreement.

Legal Requirements: The main legal concern involved would be that of the safety regulations in the TTC. Through our partnership agreement with the TTC we would strive to reach every regulation and requirement demanded by the Toronto Transit Commissions safety and regulations board. Our number one concern would be the safety of the TTC passengers, and the insurance that our systems would. Not disrupt service, or distract drivers and technicians. There are currently no City of Toronto Regulations that prohibit the displaying of digital images in subway tunnels, and we will meet all other requirements set out by the City of Toronto Signage Laws.

5.1 Action Programs

Objectives What is to be done Start Date Finish Date

Implementation of Marketing

Start with strong PR in order to get media coverage and get the publics interest.

16-Apr-10 18-Jun-10

Talk to the city of

Toronto Meet with the city of Toronto in order to get them on board and create a partnership.

19-Jun-10 27-Aug-10

Meet with Bank To secure and gain loan 30-Ag-10 30-Aug-11

Layout of screens in the tunnels

After talking to the city and getting the loan we will start to plan how everything will be laid out and installed inside the tunnels

30-Aug-1029-Oct-10

Have equipment installed

After getting the city of Toronto on board with us we would start installing the equipment into the subway tunnels

01-Nov-10 14-Nov-10

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Test Equipment

Before starting to advertise, the equipment would be thoroughly tested to make sure that there are no problems with the screens the computers and no interference with the trains

11-Nov-10 31-Dec-10

Launch advertising System

Once everything is in place then we will start advertising on the screens 01-Jan-11 N/A

5.2 ControlsThe controls that will be put in place will be tailored toward quality control.

When we partner up with the city of Toronto we will be able to implement a maintenance program that will take care of the screens and make sure they are cleaned and maintained. This would also create more jobs for the city of Toronto.

For program maintenance we would make sure the timing of the commercial is done correctly, the screen resolution is up to par with what the clients gave us and so that the advertisements will look as sharp as possible.

A long with quality assurance we would also have great customer service. We would create great customer service by making sure that the ads that we upload to the screens are working properly and to the specifications of the clients, we would do several tests on them before they get uploaded, and we would be in contact with the clients if we need anything or if something is not working properly.

To make sure that we maintain great relationships with our clients, we will be giving them a report that states how many times their ad was played and the times that it was played. By making this information available the clients will know that they are getting what they are paying for and will be able to see if they should advertise during other times and if their ad is working or not.

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6.0 Financial SummeryThe financial analysis includes projected income statement, for three years, cash flow statement and balance sheet, which show

1) For the first year start up cost we have taken a loan amount of $50,000 from bank and rest amount is raised from investors.

2) Our Company gives 25% of each years revenue to TTC as a partnership concern.

3) Indemnification insurance is taken for $10,000 to protect our company from any loss, which may be suffered during the performance of contract with TTC.

4) For the expansion of our tunnel vision advertising, in the first year we are operating in two tunnels, then in the second year we are operating in six tunnels likewise in the third year we are advertising in six tunnels.

5) So with the increase in the number of tunnels our revenue is also expected to increase by 100% in the first and the second year and an average growth of 50% is estimated in the upcoming third year.

6.1 Startup CostsStartup Costs

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 One Time costs Year 1 Year 2 Year 3

       IT EXPENSES      Computers and Accessories $2,440.76    DSPXP3-P Player software $1,575.00    DSPXD3-P Display Director $3,675.00    Installation and configuration $1,800.00    DSPXP3-M Support 1 year player $315.00    DSPXD3-M support 1 year director $735.00    Media player $1,236.00    CTLXO-P Control device 1-9 $158.00    DPPXV3C-P Data Pipe Server 1-9 $1,575.00    DPPXC3-P Data pipe plant $520.00    DPPXV3c-M support data pipe server $315.00    DPPX3C-P Support data pipe client $104.00    XLKXC3-P XML Link $1,575.00    XLKXC3-M Support XML Link $315.00    WPDXC2-P Web Pad $520.00    WPDXC2-M web pad support $104.00    32" NEC Commercial grade screen X 100 $67,900.00 $67,900.00 $67,900.00 Website $1,500.00    IT Expenses Total $86,362.76 $67,900.00 $67,900.00 Business Incorporation costs $1,500.00    Screen Mounts $34,000.00 $34,000.00 $34,000.00 Office Furniture $2,500.00     Marketing and Advertising For the Year $15,000.00 $18,000.00 $21,600.00 Indeminification insurance $10,000.00 $12,000.00 $14,400.00 Training $3,200.00    

Total $152,562.76 $131,900.00 $137,900.00

Equipments  Total Cost

Website

Business Incorporation costs

Office Furniture

 Marketing and Advertising For the Year

Indeminification insurance

Training 

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6.2 Recurring costsRecurring Costs Year 1 Year 2 Year 3

       Salaries $ 25,000 $ 27,500 $ 30,250 Office rent $ 2,800 $ 2,800 $ 2,800 Office supplies $ 300 $ 300 $ 300 IT maintenance $ 800 $ 1,200 $ 1,200 Telephone and Internet $ 175 $ 175 $ 175 Employee Insurance $ 300 $ 300 $ 300 Interest on Loan from Investors $ 787 $ 667  Interest on Loan from Bank $ 83.33 $ 83.33  Office maintenance $ 300 $ 300 $ 300        

Total Recurring Cost Per Month $ 30,545.33

$ 33,325.33

$ 35,325.00

Recurring Cost Per Year $ 366,543.96

$ 399,903.96

$ 423,900.00

       

Total Expenses $ 519,106.72

$ 531,803.96

$ 561,800.00

Salaries

Office rent

Office supplies

IT maintenance 

Telephone and Internet

Employee Insurance

Interest on Loan from Investors

Interest on Loan from Bank

Office maintenance

6.3 Sales Forecast

Per 1000 Viewers            

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Station# of

Passengers# per Hour

# of Hours

% of Views

# of Viewers

Cost per (k)

Bloor(Young-University-Spadina) 191800 10094 19hrs 0.40 4037.6 32Young (Bloor- Danforth) 188600 9926 19hrs 0.40 3970.4 32St. George (Bloor-Danforth) 1,22,000 6421 19hrs 0.40 2568.4 50St,George (Younge-University-Spadina) 1,21,100 6374 19hrs 0.40 2549.6 51

6.4 Sales Forecast for 2011Dollars per Thousand

  From two Tunnels

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 Tariff Hrs/Day Cost/Hr

Peak Hours (Week Days)    6:30am-10am

7hrs/day 130/hr3:30pm-7pm     General Hours (Week Days)    10am-3:30pm

12hrs/day 110/hr7pm-1:30am     Weekends    Saturday (6am-1:30am) 19hrs 30mins 110/hr/day 130/hr/eveningSunday(9am-1:30am) 16hrs 30mins 100/hr     Special Event rates    Toronto Maple Leaf Game

Event time specific

130/hrToronto Raptors Game 130/hrToronto Blue Jays 130/hrSummer Events 130/hrNew Years 150/hrConcert Nights 130/hr

                 

Year 1# Of

Clients Q1# Of

Clients Q2# Of

Clients Q3# Of

clients Q4Peak Hours 14 $120,120 14 $120,120 14 $120,120 14 $120,12General Hours 12 $87,120 12 $87,120 12 $87,120 12 $87,120Saturday Day 12 $15,840 12 $15,840 12 $15,840 12 $15,840Saturday Evening 8 $12,480 8 $12,480 8 $12,480 8 $12,480Sunday 6 $7,200 6 $7,200 6 $7,200 6 $7,200Special Event Cannot forecast first year                 Quarterly Revenue   $242,760.00   $242,760.00   $242,760.00   $242,760.00

                 Revenue for the year before tax   $971,040.00            

6.5 Forecast for 2012

  From Four Tunnels

                 

Year 2# Of Clients Q1

# Of Clients Q2

# Of Clients Q3

# Of clients Q4

Peak Hours 28 $240,240.00 28 $240,240.00 28 $240,240.00 28 $240,240

General Hours 24 $174,240.00 24 $174,240.00 24 $174,240.00 24 $174,240

Saturday Day 24 $31,680.00 24 $31,680.00 24 $31,680.00 24 $31,680

Saturday Evening 16 $24,960.00 16 $24,960.00 16 $24,960.00 16 $24,960

Sunday 12 $14,400.00 12 $14,400.00 12 $14,400.00 12 $14,400

Special Event Cannot forecast first year

                 

Quarterly Revenue   $485,520.00   $485,520.00   $485,520.00   $485,520.00

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                 Revenue for the year before tax   $1,942,080.00            

6.6 Forecast for 2013  From Six Tunnels                 

Year 3# Of Clients Q1

# Of Clients Q2

# Of Clients Q3

# Of clients Q4

Peak Hours 42 $360,360 42 $360,360 42 $360,360 42 $360,360General Hours 36 $261,360 36 $261,360 36 $261,360 36 $261,360Saturday Day 36 $47,520 36 $47,520 36 $47,520 36 $47,520Saturday Evening 24 $37,440 24 $37,440 24 $37,440 24 $37,440Sunday 18 $21,600 18 $21,600 18 $21,600 18 $21,600Special Event Cannot forecast first year                 Quarterly Revenue   $728,280   $728,280   $728,280   $728,280                 Revenue for the year before tax   $2,913,120            

6.7 Income Statement Income Statement

  Year 1 Year 2 Year 3               Revenues $971,040.00 $1,942,080.00 $2,913,120.00        Expenses       Payroll $300,000.00 $330,000.00 $363,000.00 Advertising and Marketing $15,000.00 $18,000.00 $21,600.00 Rent $33,600.00 $33,600.00 $33,600.00 Maintenance $3,600.00 $3,600.00 $3,600.00

22

Supplies $3,600.00 $3,600.00 $3,600.00 Health Insurance $3,600.00 $3,600.00 $3,600.00 Phone and Internet $2,100.00 $2,100.00 $2,100.00 Interest on loan $10,443.96 $9,000.00  25% Of revenues to TTC $242,760.00 $485,520.00 $728,280.00 Indeminification Insurance $10,000.00 $12,000.00 $14,400.00 Employee Training $3,200.00    I.T. Maintainance $9,600.00 $14,400.00 $14,400.00 Business Incorporation $1,500.00    Website $1,500.00    Depreciation $12,136.00 $21,126.60 $29,191.34         Total Operating Expense $652,639.96 $936,546.60 $1,217,371.34 Operating Revenue $318,400.04 $1,005,533.40 $1,695,748.66      Income Taxes $127,360.02 $402,213.36 $678,299.46

Net Profit $191,040.02 $603,320.04 $1,017,449.20

Year1 Year2 Year3

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

Total Revanue Operating Expenses Operating Revenue Net Profit

6.8 Balance SheetBalance Sheet for the year end

Assets Amount   Liabilities Amount             Current Asset       Current Liabilities    

Cash In Hand       Taxes Payable $127,360.0

2  

Total Current Assets   $728,27

9   Account Payable (Loan) $519,106.0

0  

        Total Current Liabilities   $646,46

6 Fixed Asset            

Equipments $118,862.7

6     Owner's Equity   $191,04

0

23

Furniture $2,500.00          

Sub Total $121,362.7

6          Less Depreciation @ 10 % $12,136.28          

Total Fixed Assets   $109,22

6                 

                          

Total Assets   $837,50

6   Total Liabilities   $837,50

6

6.9 12 Month Cash Flow  Month 1 Month 2 Month 3 Month 4 Month 5 Month 6             Cash Balance at the beginning

$519,106.00

$396,687.91

$426,832.58

$456,977.25

$487,121.92

$517,266.59

             Cash Inflow            From Advertisements             Peak hours (Weekdays)

$40,040.00

$40,040.00

$40,040.00

$40,040.00

$40,040.00

$40,040.00

General hours (Weekdays)

$29,040.00

$29,040.00

$29,040.00

$29,040.00

$29,040.00

$29,040.00

Saturday Daytime $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 Saturday Evening Time $4,160.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00 Sunday $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00              Total Cash Inflow

$80,920.00

$80,920.00

$80,920.00

$80,920.00

$80,920.00

$80,920.00

             Cash Outflow            Computers and Accessories $2,440.76 0 0 0 0 0DSPXP3-P Player software $1,575.00 0 0 0 0 0

24

DSPXD3-P Display Director $3,675.00 0 0 0 0 0Installation and configuration $1,800.00 0 0 0 0 0DSPXP3-M Support 1 year player $315.00 0 0 0 0 0DSPXD3-M support 1 year director $735.00 0 0 0 0 0Media player $1,236.00 0 0 0 0 0CTLXO-P Control device 1-9 $158.00 0 0 0 0 0DPPXV3C-P Data Pipe Server 1-9 $1,575.00 0 0 0 0 0DPPXC3-P Data pipe plant $520.00 0 0 0 0 0DPPXV3c-M support data pipe server $315.00 0 0 0 0 0DPPX3C-P Support data pipe client $104.00 0 0 0 0 0XLKXC3-P XML Link $1,575.00 0 0 0 0 0XLKXC3-M Support XML Link $315.00 0 0 0 0 0WPDXC2-P Web Pad $520.00 0 0 0 0 0WPDXC2-M web pad support $104.00 0 0 0 0 032" NEC Commercial grade screen X 100

$67,900.00 0 0 0 0 0

Screen Mounts

$34,000.00 0 0 0 0 0

Website $1,500.00 0 0 0 0 0Business Incorporation costs $1,500.00 0 0 0 0 0Office Furniture $2,500.00 0 0 0 0 0 Marketing and Advertising For the Year

$15,000.00 0 0 0 0 0

Indeminificati $10,000.0 0 0 0 0 0

25

on insurance 0 Training $3,200.00 0 0 0 0 0

Salaries $25,000.0

0 $25,000.0

0 $25,000.0

0 $25,000.0

0 $25,000.0

0 $25,000.0

0 Office rent $2,800.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00 Office supplies $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 IT maintenance $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 Telephone and Internet $175.00 $175.00 $175.00 $175.00 $175.00 $175.00 Employee Insurance $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 Interest on Loan from Investors $787.00 $787.00 $787.00 $787.00 $787.00 $787.00 Interest on Loan from Bank $83.33 $83.33 $83.33 $83.33 $83.33 $83.33 Office maintenance $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 TTC Share @ 25% of revenue

$20,230.00

$20,230.00

$20,230.00

$20,230.00

$20,230.00

$20,230.00

Total Cash Outflow

$203,338.09

$50,775.33

$50,775.33

$50,775.33

$50,775.33

$50,775.33

                          

Surplus $396,687.

91 $426,832.

58 $456,977.

25 $487,121.

92 $517,266.

59 $547,411.

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Month 7 Month 8 Month 9 Month 10 Month 11 Month 12           

$547,411.26 $577,555.93 $607,700.60 $637,845.27 $667,989.94 $698,134.61                                  

$40,040.00 $40,040.00 $40,040.00 $40,040.00 $40,040.00 $40,040.00

26

$29,040.00 $29,040.00 $29,040.00 $29,040.00 $29,040.00 $29,040.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00 $4,160.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00

            $80,920.00 $80,920.00 $80,920.00 $80,920.00 $80,920.00 $80,920.00

                      

0 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 00 0 0 0 0 0

$25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00 $2,800.00

$300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 $175.00 $175.00 $175.00 $175.00 $175.00 $175.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $787.00 $787.00 $787.00 $787.00 $787.00 $787.00

$83.33 $83.33 $83.33 $83.33 $83.33 $83.33 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

$20,230.00 $20,230.00 $20,230.00 $20,230.00 $20,230.00 $20,230.00 $50,775.33 $50,775.33 $50,775.33 $50,775.33 $50,775.33 $50,775.33

$577,555.93 $607,700.60 $637,845.27 $667,989.94 $698,134.61 $728,279.28

Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5Total Cash Inflow 80920 80920 80920 80920 80920

27

Total Cash Outflow 203338.09 50775.33 50775.33 50775.33 50775.33Surplus 396687.91 426832.58 456977.25 487121.92 517266.59

28

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Total Cash Inflow 80920 80920 80920 80920 80920 80920 80920Total Cash Outflow 50775.33 50775.33 50775.33 50775.33 50775.33 50775.33 50775.33

Surplus 547411.26 577555.93 607700.6 637845.27 667989.94 698134.61 728279.28

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Cash Inflow Total Cash Outflow Surplus

Appendices

Information sourcesNetx.com- equipment supplierwww.tdcanadatrust.com- maximum amount for a loanCBSoutdoors.comMetrovista.comDentsu MarketingSidetrack.comHumber College Marketing DepartmentTTC.ca- statistics http://www.toronto.ca/legdocs/municode/1184_693.pdf- Toronto Signage LawsStatscanada.caSignarama32-px.smrthlink.com- ideas for screenswww.smvgroup.com Starcom Mediawww.digistoremedia.com

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