Bulus Pet Social Network Business Plan

KULLIYAH OF INFORMATION AND COMMUNICATION TECHNOLOGY

DEPARTMENT OF INFORMATION SYSTEMSINFO 4504 TECHNOPRENEURSHIP

BULUS PET SOCIAL NETWORK SYSTEM

MUHAMMAD AKASHAH BIN AHAMAD1115681

MUHAMMAD AIDIL AZWAN BIN KHANAFI1112571

SUPERVISED BYJAMALUDIN BIN IBRAHIM

Table of Contents

1.0 Executive Summary......................................................................................................................1Chart: Highlights............................................................................................................................1

1.1 Objectives.....................................................................................................................................11.2 Mission...........................................................................................................................................11.3 Keys to Success..........................................................................................................................1

2.0 Company Summary......................................................................................................................22.1 Company Ownership................................................................................................................22.2 Start-up Summary.....................................................................................................................2

Table: Start-up...............................................................................................................................2Chart: Start-up...............................................................................................................................3

3.0 Products and Services.................................................................................................................34.0 Market Analysis Summary.........................................................................................................3

4.1 Market Segmentation..............................................................................................................3Table: Market Analysis................................................................................................................3Chart: Market Analysis (Pie)......................................................................................................4

4.2 Target Market Segment Strategy........................................................................................44.3 Service Business Analysis......................................................................................................4

4.3.1 Competition and Buying Patterns................................................................................45.0 Strategy and Implementation Summary..............................................................................4

5.1 Competitive Edge......................................................................................................................55.2 Marketing Strategy...................................................................................................................55.3 Sales Strategy.............................................................................................................................5

5.3.1 Sales Forecast.....................................................................................................................5Table: Sales Forecast...............................................................................................................5Chart: Sales Monthly................................................................................................................6Chart: Sales by Year.................................................................................................................6

5.4 Milestones....................................................................................................................................6Table: Milestones..........................................................................................................................7Chart: Milestones..........................................................................................................................7

6.0 Management Summary...............................................................................................................76.1 Personnel Plan............................................................................................................................7

Table: Personnel............................................................................................................................87.0 Financial Plan..................................................................................................................................8

7.1 Start-up Funding........................................................................................................................8Table: Start-up Funding..............................................................................................................8

7.2 Important Assumptions...........................................................................................................97.3 Break-even Analysis.................................................................................................................9

Table: Break-even Analysis.......................................................................................................9Chart: Break-even Analysis.....................................................................................................10

7.4 Projected Profit and Loss......................................................................................................10Table: Profit and Loss................................................................................................................10Chart: Profit Monthly..................................................................................................................11Chart: Profit Yearly.....................................................................................................................11Chart: Gross Margin Monthly..................................................................................................12Chart: Gross Margin Yearly......................................................................................................12

7.5 Projected Cash Flow...............................................................................................................12

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Table of Contents

Table: Cash Flow.........................................................................................................................13Chart: Cash....................................................................................................................................14

7.6 Projected Balance Sheet.......................................................................................................14Table: Balance Sheet.................................................................................................................14

7.7 Business Ratios........................................................................................................................15Table: Ratios.................................................................................................................................15

7.8 Long-term Plan.........................................................................................................................16Table: Sales Forecast...........................................................................................................................1Table: Personnel....................................................................................................................................2Table: Profit and Loss..........................................................................................................................3Table: Cash Flow...................................................................................................................................4Table: Balance Sheet...........................................................................................................................6

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Table of Contents

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Bulus Pet Social Network Business Plan

1.0 Executive Summary

Pets have become a common sight in many households. In fact, one would be hard pressed to find a household without pets such as fish, dogs, cats, rabbits, hamsters and even turtles. In Malaysia dogs and cats are the most common pets. However, many other people keep cats or dogs to control the mouse or to protect the house from thieve. Basically pets are human’s best friend and as the owner, we need to treat our “best friend” nicely. Due to this, proposing Pet Social Network and Monitoring System is the best approach. This is a new way of digital social interaction especially for pet lovers. It provides not only a new platform for pet lovers to interact and share their love globally like any other social network does, the elements of monitoring system is also implied here.

The idea is specifically motivated from the cat lover’s activist in International Islamic University Malaysia called Kelab Pencinta Kucing UIAM. They suffer a conflict with the administration of the university on dealing with the uprising numbers of cats within the university compound where there are some of the measurements taken by the administration is perceived as inconsiderate even harsh sometimes. But then questions such as the direction to point at for the cat’s misconduct and financial issues becomes beyond their capacity if structured aid and start-up initiative are none. But with this system, the cat owner could be identified and financial issue is solved since it is a freemium system. Thus this idea is hopefully could be a public service effort of the idea besides generating business profit.

Chart: Highlights

Sales

Gross Margin

Net Profit

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

$240,000

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Highlights

1.1 Objectives

This business case is proposed with the objectives as follows: • To produce a social network system that able to integrate with the NFC and QR code pet tags and the social network platform itself.

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• To leverage customer obsession upon social network into a pet lover target group.• Pulls other business parties to promote their product in our platform.

1.2 Mission

This is a new way of digital social interaction especially for pet lovers. It provides not only a new platform for pet lovers to interact and share their love globally like any other social network does, the elements of monitoring system is also implied here.

1.3 Keys to Success

The most significant core competence owned by Bulus is as follows: • A new niche social network platform which allows interaction among animal lovers and with the animal itself. It has never been similarly invented before thus making it a blue ocean market opportunity.• An information repository for pet lovers.• Availability of social network application with navigation capacity for locating pets.• Shows the nearest veterinary centre to user’s location.• Able to read data from Near Field Communication (NFC) and Quick Response Code (QR)

2.0 Company Summary

The idea is specifically motivated from the cat lover’s activist in International Islamic University Malaysia called Kelab Pencinta Kucing UIAM. They suffer a conflict with the administration of the university on dealing with the uprising numbers of cats within the university compound where there are some of the measurements taken by the administration is perceived as inconsiderate even harsh sometimes. But then questions such as the direction to point at for the cat’s misconduct and financial issues becomes beyond their capacity if structured aid and start-up initiative are none. But with this system, the cat owner could be identified and financial issue is solved since it is a freemium system. Thus this idea is hopefully could be a public service effort of the idea besides generating business profit.

2.1 Company Ownership

This company is a small partnership company with shared ownership by Muhammad Akashah Bin Ahamad and Muhammad Aidil Azwan Bin Khanafi.

2.2 Start-up Summary

The initial initiative literately prospects the expectation of an investment. As Bulus displays its need for a proper establishment of server infrastructure, premises, insurance, legal entities, up-to-date machinery and last but not least sufficient budget for mass marketing strategies.

This is of course would request total favor from investors due to the liabilities of from-scratch start point.

Table: Start-up

Start-up

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Requirements

Start-up Expenses

Legal $2,300 Insurance $6,500 Premise Rent $8,600 Computer $4,500 Marketing Budget $2,400 Infrastructure $10,000 Others $2,000 Total Start-up Expenses $36,300

Start-up Assets

Cash Required $30,000 Other Current Assets $15,000 Long-term Assets $0 Total Assets $45,000

Total Requirements $81,300

Chart: Start-up

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$80,000

Expenses Assets Investment Loans

Start-up

3.0 Products and Services

Products provided was listed as follows: • Social network platform : User can add pet which creating the pets their own profile besides the user itself creating their own profile • Website : For users to interact outside Bulus Android application.• QR and NFC pet tags : This tags will be worn by the pets allowing them to • Android application : Bulus application can be downloaded through Google Play Store for free.

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4.0 Market Analysis Summary

Bulus is focusing on global market segment where anyone including the animal that have pet tag could be the potential customers.

4.1 Market Segmentation

Bulus will focus on various income, but mainly from ads fees from the retailers who wish to promote in Bulus and selling application's extension. Those who wish to globally interact with other pet lovers even wishing to experience a new feature of social network. Two years ago, doggie day care did not exist in Portland. Today, there are eight such centers complete with entrance requirements and waiting lists.

Table: Market Analysis

Market Analysis

2014 2015 2016 2017 2018

Potential Customers Growth CAGR

Pet Owner 15% 10,000 11,500 13,225 15,209 17,490 15.00% Animal Lover 10% 20,000 22,000 24,200 26,620 29,282 10.00% Retailer 5% 5,000 5,250 5,513 5,789 6,078 5.00% Teenagers 20% 6,000 7,200 8,640 10,368 12,442 20.00% Others 2% 3,000 3,060 3,121 3,183 3,247 2.00% Total 11.72% 44,000 49,010 54,699 61,169 68,539 11.72%

Chart: Market Analysis (Pie)

Pet Owner

Animal Lover

Retailer

Teenagers

Others

Market Analysis (Pie)

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4.2 Target Market Segment Strategy

Bulus's market strategy is marketing-based where we focus on introducing Bulus to as much people as possible and impprove the system itself in order to sustain them as our loyal customers.

4.3 Service Business Analysis

Bulus is a social network platform service provider initially drives the business through centered server and works for 24 hours.

4.3.1 Competition and Buying Patterns

The tendency expected to be seen will be in three streams, firstly from popularizing Bulus as a trend among teenagers and pet lovers, secondly to promote the usage of NFC and QR code tags and last but not least promoting the location navigation features in a social network system.

5.0 Strategy and Implementation Summary

The primary focus for Bulus’s marketing strategy is to reach as much people as possible for Bulus’s product to be known. Such optimists have its shine as we planned for product promotion through the internet and mass media such as television and radio.

5.1 Competitive Edge

The advantages of Bulus where it is unique social network platform which none had created before where social network, NFC and QR code tag, GPS navigation were combined in one.

5.2 Marketing Strategy

As Bulus plans for reaching as much people as possible, it will open for more public opinion as it would vastly boost our product’s reliability especially Bulus application to make it more compelling to customer’s need. While one would argue on the development cost, Bulus is purely an internal core competence meaning all the means we have all the source code and expertise.

5.3 Sales Strategy

Our main sales strategy is providing the best services for the customers which through ensuring user's satisfaction in using Bulus regardless through Bulus application or Bulus website. Besides that, we also make promotion through booth promotion and promotional videos through the net.

5.3.1 Sales Forecast

Table: Sales Forecast

Sales Forecast

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Sales

Bulus extension $21,379 $23,517 $25,869 $28,456 $31,302 Ads $32,095 $35,305 $38,836 $42,720 $46,991

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NFC and QR code tag sales $42,769 $47,046 $51,751 $56,926 $62,619 Android Application $64,146 $70,561 $77,617 $85,379 $93,917 Total Sales $160,389 $176,429 $194,073 $213,481 $234,829

Direct Cost of Sales FY 2015 FY 2016 FY 2017 FY 2018 FY 2019Bulus extension $2,143 $2,357 $2,594 $2,853 $3,138 Ads $2,143 $2,357 $2,594 $2,853 $3,138 NFC and QR code tag $8,550 $9,405 $10,346 $11,381 $12,519 Android application $2,143 $2,357 $2,594 $2,853 $3,138 Subtotal Direct Cost of Sales $14,979 $16,476 $18,128 $19,940 $21,933

Chart: Sales Monthly

Bulus extension

Ads

NFC and QR code tag sales

Android Application

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Sales Monthly

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Chart: Sales by Year

Bulus extension

Ads

NFC and QR code tag sales

Android Application

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

$240,000

FY 2015FY 2016

FY 2017FY 2018

FY 2019

Sales by Year

6.0 Management Summary

As simple but valuable the company is, it need around 2 manpower at least to mantain the system, 3 for tag sales and 3 marketing people who handles the promotion and videos.

6.1 Personnel Plan

There are currently two employees of Bulus Social Network. The growth of the company will be determined by how accurately and efficiently the company is able to implement the facets of this business plan.

Table: Personnel

Personnel Plan

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

CEO 1 $0 $0 $336 $747 $1,048 CEO 2 $0 $0 $336 $747 $1,048 IT Executive 1 $0 $0 $299 $664 $932 IT Executive 2 $0 $0 $299 $664 $932 Marketing executive 1 $0 $0 $261 $581 $815 Marketing executive 2 $0 $0 $261 $581 $815 Sales Executive 1 $0 $0 $224 $498 $699 Sales Executive 2 $0 $0 $224 $498 $699 Total People 8 8 8 8 8

Total Payroll $0 $0 $2,240 $4,980 $6,988

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7.0 Financial Plan

The following subtopics help present the financial plan for Bulus.

7.1 Start-up Funding

We wish to try avoiding any liabilities as focusing on the funding alone as capital for business process.

Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $36,300 Start-up Assets to Fund $45,000 Total Funding Required $81,300

Assets

Non-cash Assets from Start-up $15,000 Cash Requirements from Start-up $30,000 Additional Cash Raised $0 Cash Balance on Starting Date $30,000 Total Assets $45,000

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 $76,000 Additional Investment Requirement $5,300 Total Planned Investment $81,300

Loss at Start-up (Start-up Expenses) ($36,300)Total Capital $45,000

Total Capital and Liabilities $45,000

Total Funding $81,300

7.2 Important Assumptions

The table below presents the assumptions used in the financial calculations of this business plan.

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7.3 Break-even Analysis

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $9,308

Assumptions:

Average Percent Variable Cost 9% Estimated Monthly Fixed Cost $8,439

Chart: Break-even Analysis

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Break-even Analysis

7.4 Projected Profit and Loss

Table: Profit and Loss

Pro Forma Profit and Loss

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Sales $160,389 $176,429 $194,073 $213,481 $234,829 Direct Cost of Sales $14,979 $16,476 $18,128 $19,940 $21,933 Other Costs of Sales $0 $0 $0 $0 $0 Total Cost of Sales $14,979 $16,476 $18,128 $19,940 $21,933

Gross Margin $145,410 $159,953 $175,945 $193,541 $212,896 Gross Margin % 90.66% 90.66% 90.66% 90.66% 90.66%

Expenses

Payroll $0 $0 $2,240 $4,980 $6,988

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Marketing/Promotion $719 $791 $870 $957 $1,053 Depreciation $0 $0 $0 $0 $0 Premise Rent $14,978 $16,476 $18,124 $19,367 $21,304 Insurance $12,840 $14,124 $15,537 $17,091 $18,800 Payroll Taxes $0 $0 $0 $0 $0 Computer $17,118 $18,830 $20,713 $22,784 $25,063 Marketing $21,379 $23,517 $25,869 $28,456 $31,302 Legal $10,706 $11,777 $12,955 $14,251 $15,676 Infrastructure $17,118 $18,830 $20,713 $22,784 $25,062 Others $6,409 $7,050 $7,755 $8,531 $9,384

Total Operating Expenses $101,267 $111,395 $124,776 $139,201 $154,632

Profit Before Interest and Taxes $44,143 $48,558 $51,169 $54,340 $58,264 EBITDA $44,143 $48,558 $51,169 $54,340 $58,264 Interest Expense $0 $0 $0 $0 $0 Taxes Incurred $13,243 $14,567 $15,351 $16,302 $17,479

Net Profit $30,900 $33,991 $35,818 $38,038 $40,785 Net Profit/Sales 19.27% 19.27% 18.46% 17.82% 17.37%

Chart: Profit Monthly

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Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Profit Monthly

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Chart: Profit Yearly

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$28,000

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$40,000

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Profit Yearly

Chart: Gross Margin Monthly

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Chart: Gross Margin Yearly

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FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Gross Margin Yearly

7.5 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash Flow

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Cash Received

Cash from Operations

Cash Sales $160,389 $176,429 $194,073 $213,481 $234,829 Subtotal Cash from Operations $160,389 $176,429 $194,073 $213,481 $234,829

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 Sales of Other Current Assets $0 $0 $0 $0 $0 Sales of Long-term Assets $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 Subtotal Cash Received $160,389 $176,429 $194,073 $213,481 $234,829

Expenditures FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Expenditures from Operations

Cash Spending $0 $0 $2,240 $4,980 $6,988 Bill Payments $112,790 $147,430 $154,899 $169,275 $185,692 Subtotal Spent on Operations $112,790 $147,430 $157,139 $174,255 $192,680

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 $0 $0

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Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 Purchase Other Current Assets $0 $0 $0 $0 $0 Purchase Long-term Assets $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 Subtotal Cash Spent $112,790 $147,430 $157,139 $174,255 $192,680

Net Cash Flow $47,599 $28,999 $36,934 $39,226 $42,149 Cash Balance $77,599 $106,598 $143,532 $182,758 $224,906

Chart: Cash

Net Cash Flow

Cash Balance

$0

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$50,000

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$80,000

AprMay

JunJul

AugSep

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DecJan

FebMar

Cash

7.6 Projected Balance Sheet

Table: Balance Sheet

Pro Forma Balance Sheet

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Assets

Current Assets

Cash $77,599 $106,598 $143,532 $182,758 $224,906 Other Current Assets $15,000 $15,000 $15,000 $15,000 $15,000 Total Current Assets $92,599 $121,598 $158,532 $197,758 $239,906

Long-term Assets

Long-term Assets $0 $0 $0 $0 $0 Accumulated Depreciation $0 $0 $0 $0 $0 Total Long-term Assets $0 $0 $0 $0 $0 Total Assets $92,599 $121,598 $158,532 $197,758 $239,906

Liabilities and Capital FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Current Liabilities

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Accounts Payable $16,699 $11,707 $12,823 $14,011 $15,374 Current Borrowing $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 Subtotal Current Liabilities $16,699 $11,707 $12,823 $14,011 $15,374

Long-term Liabilities $0 $0 $0 $0 $0 Total Liabilities $16,699 $11,707 $12,823 $14,011 $15,374

Paid-in Capital $81,300 $81,300 $81,300 $81,300 $81,300 Retained Earnings ($36,300) ($5,400) $28,591 $64,409 $102,447 Earnings $30,900 $33,991 $35,818 $38,038 $40,785 Total Capital $75,900 $109,891 $145,709 $183,747 $224,532 Total Liabilities and Capital $92,599 $121,598 $158,532 $197,758 $239,906

Net Worth $75,900 $109,891 $145,709 $183,747 $224,532

7.7 Business Ratios

Table: Ratios

Ratio Analysis

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Industry Profile

Sales Growth n.a. 10.00% 10.00% 10.00% 10.00% 0.00%

Percent of Total Assets

Other Current Assets 16.20% 12.34% 9.46% 7.59% 6.25% 100.00% Total Current Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Long-term Assets 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 18.03% 9.63% 8.09% 7.08% 6.41% 0.00% Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Liabilities 18.03% 9.63% 8.09% 7.08% 6.41% 0.00% Net Worth 81.97% 90.37% 91.91% 92.92% 93.59% 100.00%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Gross Margin 90.66% 90.66% 90.66% 90.66% 90.66% 0.00% Selling, General & Administrative Expenses

71.40% 71.40% 72.20% 72.84% 73.29% 0.00%

Advertising Expenses 0.45% 0.45% 0.45% 0.45% 0.45% 0.00% Profit Before Interest and Taxes 27.52% 27.52% 26.37% 25.45% 24.81% 0.00%

Main Ratios

Current 5.55 10.39 12.36 14.11 15.60 0.00 Quick 5.55 10.39 12.36 14.11 15.60 0.00 Total Debt to Total Assets 18.03% 9.63% 8.09% 7.08% 6.41% 0.00% Pre-tax Return on Net Worth 58.16% 44.19% 35.12% 29.57% 25.95% 0.00% Pre-tax Return on Assets 47.67% 39.93% 32.28% 27.48% 24.29% 0.00%

Additional Ratios FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Net Profit Margin 19.27% 19.27% 18.46% 17.82% 17.37% n.aReturn on Equity 40.71% 30.93% 24.58% 20.70% 18.16% n.a

Activity Ratios

Accounts Payable Turnover 7.75 12.17 12.17 12.17 12.17 n.aPayment Days 27 36 29 29 29 n.aTotal Asset Turnover 1.73 1.45 1.22 1.08 0.98 n.a

Debt Ratios

Debt to Net Worth 0.22 0.11 0.09 0.08 0.07 n.aCurrent Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a

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Liquidity Ratios

Net Working Capital $75,900 $109,891 $145,709 $183,747 $224,532 n.aInterest Coverage 0.00 0.00 0.00 0.00 0.00 n.a

Additional Ratios

Assets to Sales 0.58 0.69 0.82 0.93 1.02 n.aCurrent Debt/Total Assets 18% 10% 8% 7% 6% n.aAcid Test 5.55 10.39 12.36 14.11 15.60 n.aSales/Net Worth 2.11 1.61 1.33 1.16 1.05 n.aDividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

7.8 Long-term Plan

As we refer to the net worth which subtracts assets and liabilities shows an expectation of 81.97% worth on year 1 with the increment of 8.4% of net worth on the next year. It follows with near mutual development throughout the year. Unfortunately in 5 year basis relying on the assets alone, Bulus will not achieve 100% of return in investment. This is the reason why we need to have an optimist sales and marketing progress to support the growth.

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Appendix

Table: Sales Forecast

Sales Forecast


Sales

Bulus extension $1,000 $1,100 $1,210 $1,331 $1,464 $1,610 $1,771 $1,948 $2,143 $2,357 $2,593 $2,852

Ads $1,500 $1,650 $1,815 $1,997 $2,197 $2,417 $2,659 $2,925 $3,218 $3,540 $3,894 $4,283

NFC and QR code tag sales $2,000 $2,200 $2,420 $2,662 $2,928 $3,221 $3,543 $3,897 $4,287 $4,716 $5,188 $5,707

Android Application $3,000 $3,300 $3,630 $3,993 $4,392 $4,831 $5,314 $5,845 $6,430 $7,073 $7,780 $8,558

Total Sales $7,500 $8,250 $9,075 $9,983 $10,981 $12,079 $13,287 $14,615 $16,078 $17,686 $19,455 $21,400

Direct Cost of Sales Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Bulus extension $100 $110 $121 $133 $146 $161 $177 $195 $215 $237 $261 $287

Ads $100 $110 $121 $133 $146 $161 $177 $195 $215 $237 $261 $287

NFC and QR code tag $400 $440 $484 $532 $585 $644 $708 $779 $857 $943 $1,037 $1,141

Android application $100 $110 $121 $133 $146 $161 $177 $195 $215 $237 $261 $287

Subtotal Direct Cost of Sales $700 $770 $847 $931 $1,023 $1,127 $1,239 $1,364 $1,502 $1,654 $1,820 $2,002

Table: Personnel

Personnel Plan


CEO 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CEO 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

IT Executive 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

IT Executive 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Marketing executive 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Marketing executive 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales Executive 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales Executive 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total People 8 8 8 8 8 8 8 8 8 8 8 8

Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Page 1

Appendix

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $7,500 $8,250 $9,075 $9,983 $10,981 $12,079 $13,287 $14,615 $16,078 $17,686 $19,455 $21,400

Direct Cost of Sales $700 $770 $847 $931 $1,023 $1,127 $1,239 $1,364 $1,502 $1,654 $1,820 $2,002

Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $700 $770 $847 $931 $1,023 $1,127 $1,239 $1,364 $1,502 $1,654 $1,820 $2,002

Gross Margin $6,800 $7,480 $8,228 $9,052 $9,958 $10,952 $12,048 $13,251 $14,576 $16,032 $17,635 $19,398

Gross Margin % 90.67% 90.67% 90.67% 90.67% 90.68% 90.67% 90.68% 90.67% 90.66% 90.65% 90.65% 90.64%

Expenses

Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Marketing/Promotion $40 $34 $46 $56 $49 $66 $58 $50 $78 $73 $83 $86

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Premise Rent $700 $770 $847 $932 $1,025 $1,128 $1,241 $1,365 $1,502 $1,652 $1,817 $1,999

Insurance 15% $600 $660 $726 $799 $879 $967 $1,064 $1,170 $1,287 $1,416 $1,558 $1,714 Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Computer 15% $800 $880 $968 $1,065 $1,172 $1,289 $1,418 $1,560 $1,716 $1,888 $2,077 $2,285 Marketing 15% $1,000 $1,100 $1,210 $1,331 $1,464 $1,610 $1,771 $1,948 $2,143 $2,357 $2,593 $2,852 Legal 15% $500 $550 $605 $666 $733 $806 $887 $976 $1,074 $1,181 $1,299 $1,429 Infrastructure 15% $800 $880 $968 $1,065 $1,172 $1,289 $1,418 $1,560 $1,716 $1,888 $2,077 $2,285 Others $300 $330 $363 $399 $439 $483 $531 $584 $642 $706 $777 $855

Total Operating Expenses $4,740 $5,204 $5,733 $6,313 $6,933 $7,638 $8,388 $9,213 $10,158 $11,161 $12,281 $13,505

Profit Before Interest and Taxes $2,060 $2,276 $2,495 $2,739 $3,025 $3,314 $3,660 $4,038 $4,418 $4,871 $5,354 $5,893

EBITDA $2,060 $2,276 $2,495 $2,739 $3,025 $3,314 $3,660 $4,038 $4,418 $4,871 $5,354 $5,893

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Incurred $618 $683 $749 $822 $908 $994 $1,098 $1,211 $1,325 $1,461 $1,606 $1,768

Net Profit $1,442 $1,593 $1,747 $1,917 $2,118 $2,320 $2,562 $2,827 $3,093 $3,410 $3,748 $4,125

Net Profit/Sales 19.23% 19.31% 19.25% 19.21% 19.28% 19.21% 19.28% 19.34% 19.23% 19.28% 19.26% 19.28%

Page 2

Appendix

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $7,500 $8,250 $9,075 $9,983 $10,981 $12,079 $13,287 $14,615 $16,078 $17,686 $19,455 $21,400

Subtotal Cash from Operations $7,500 $8,250 $9,075 $9,983 $10,981 $12,079 $13,287 $14,615 $16,078 $17,686 $19,455 $21,400

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 $7,500 $8,250 $9,075 $9,983 $10,981 $12,079 $13,287 $14,615 $16,078 $17,686 $19,455 $21,400

Expenditures Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Expenditures from Operations

Cash Spending $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Bill Payments $202 $6,078 $6,679 $7,353 $8,092 $8,893 $9,791 $10,760 $11,828 $13,028 $14,324 $15,759

Subtotal Spent on Operations $202 $6,078 $6,679 $7,353 $8,092 $8,893 $9,791 $10,760 $11,828 $13,028 $14,324 $15,759

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 $202 $6,078 $6,679 $7,353 $8,092 $8,893 $9,791 $10,760 $11,828 $13,028 $14,324 $15,759

Net Cash Flow $7,298 $2,172 $2,396 $2,630 $2,889 $3,186 $3,496 $3,855 $4,250 $4,658 $5,131 $5,641

Cash Balance $37,298 $39,470 $41,866 $44,496 $47,385 $50,570 $54,066 $57,920 $62,170 $66,828 $71,959 $77,599

Page 3

Appendix

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Current Assets

Cash $30,000 $37,298 $39,470 $41,866 $44,496 $47,385 $50,570 $54,066 $57,920 $62,170 $66,828 $71,959 $77,599 Other Current Assets $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 Total Current Assets $45,000 $52,298 $54,470 $56,866 $59,496 $62,385 $65,570 $69,066 $72,920 $77,170 $81,828 $86,959 $92,599

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 $45,000 $52,298 $54,470 $56,866 $59,496 $62,385 $65,570 $69,066 $72,920 $77,170 $81,828 $86,959 $92,599

Liabilities and Capital Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Current Liabilities

Accounts Payable $0 $5,856 $6,435 $7,084 $7,797 $8,568 $9,434 $10,368 $11,395 $12,553 $13,800 $15,184 $16,699 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 $5,856 $6,435 $7,084 $7,797 $8,568 $9,434 $10,368 $11,395 $12,553 $13,800 $15,184 $16,699

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Liabilities $0 $5,856 $6,435 $7,084 $7,797 $8,568 $9,434 $10,368 $11,395 $12,553 $13,800 $15,184 $16,699

Paid-in Capital $81,300 $81,300 $81,300 $81,300 $81,300 $81,300 $81,300 $81,300 $81,300 $81,300 $81,300 $81,300 $81,300 Retained Earnings ($36,300) ($36,300) ($36,300) ($36,300) ($36,300) ($36,300) ($36,300) ($36,300) ($36,300) ($36,300) ($36,300) ($36,300) ($36,300)Earnings $0 $1,442 $3,035 $4,782 $6,699 $8,817 $11,136 $13,698 $16,525 $19,618 $23,027 $26,775 $30,900 Total Capital $45,000 $46,442 $48,035 $49,782 $51,699 $53,817 $56,136 $58,698 $61,525 $64,618 $68,027 $71,775 $75,900 Total Liabilities and Capital $45,000 $52,298 $54,470 $56,866 $59,496 $62,385 $65,570 $69,066 $72,920 $77,170 $81,828 $86,959 $92,599

Net Worth $45,000 $46,442 $48,035 $49,782 $51,699 $53,817 $56,136 $58,698 $61,525 $64,617 $68,027 $71,775 $75,900

Page 4

Documents

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