Business Plan

<Business Name>

January 1, 2009

Business Plan

Table of Contents 1.Introduction.............................................................................................................................4 2.Executive Summary................................................................................................................4 .!ission, Strate"ies, etc. #$om%any, Strate"y and !ana"ement &eam'.................................( .1.)ision...............................................................................................................................( .2.!ission.............................................................................................................................( . .*+,ectives-.oa/s..............................................................................................................( .4.0eys to Success................................................................................................................( .(.Stren"t1s, 2ea3nesses, *%%ortunities and &1reats #S2*&s'.........................................4 .4.Strate"ies..........................................................................................................................5 4.6roducts and Services.............................................................................................................7 (.8evenue Sources.....................................................................................................................7 (.1.6aid 6er $/ic3 9dvertisin" : .oo"/e 9dSense................................................................7 (.2.9;;i/iate 6ro"ram : 9ma<on.com....................................................................................9 (. .9;;i/iate 6ro"ram : <9;;i/iate Name >............................................................................9 4.=uture .ro>t1 *%%ortunities................................................................................................10 4.1.?ive *n/ine &eac1ers.....................................................................................................10 4.2.$/assroom ?essons.........................................................................................................10 4. .)ideo ?essons................................................................................................................10 4.4.Boo3s : S1ort Stories.....................................................................................................10 4.(.6rinted ?esson !ateria/s................................................................................................10 5.!ar3etin" 6/an......................................................................................................................10 5.1.!ar3et 9na/ysis.............................................................................................................11 5.2.$om%etition....................................................................................................................11 5. .$ustomer 6ro;i/e............................................................................................................11 5.4.!ar3et Si<e, Sa/es @ S1are 6ro,ections........................................................................12 5.(.Strate"ies ;or reac1in" or exceedin" your tar"eted sa/es /eve/s....................................12 5.4.Sa/es Strate"y.................................................................................................................1 5.5.<2e+site 1>...................................................................................................................1 5.7.<2e+site 2>...................................................................................................................1 5.9.<2e+site >...................................................................................................................1 5.10.9dvertisin" and 6u+/ic 8e/ations.................................................................................1 7.*%erations 6/an.....................................................................................................................14 7.1.?ocation.........................................................................................................................14 7.2.6roduction......................................................................................................................14 9.!ana"ement @ 9dministration #*r"ani<ation 6/an'............................................................14 9.1.$om%any *>ners1i%.....................................................................................................1( 9.2.!ana"eria/ Sty/e............................................................................................................1( 9. .!ana"ement...................................................................................................................1( 9.4.9dministration...............................................................................................................14 10.=inancia/ 6/an......................................................................................................................15 6a"e 2

Business Plan

10.1.6ro,ected $as1 =/o>....................................................................................................15 10.2.StartAu% and *%eratin" Bud"ets...................................................................................15 10. .*%eratin" Bud"et.........................................................................................................17 10.4.9ccountin" and Inventory $ontro/ System..................................................................17 10.(.$as1 =/o> 6ro,ections.................................................................................................17 10.4.=undin" 8eBuirements.................................................................................................20

6a"e

1. Introduction
Introduce your +usiness 1ere and %rovide a 1i"1 /eve/ overvie>. ConDt "et into too muc1 detai/, rat1er t1in3 o; t1is section as an e/evator %itc1. 9ns>er Buestions suc1 as +usiness name, %ur%ose, tar"et mar3et, revenue source#s', structure #cor%oration ty%e, ??$, etc.', %1ysica/ /ocation and o>ners1i%. &1is section s1ou/d +e a ;e> %ara"ra%1s #a+out 1a/; a %a"e'. &1e %ur%ose o; <Business Name> is to esta+/is1 content +ased >e+sites ;or t1e %ur%ose o; "eneratin" revenues t1rou"1 advertisin". &1ese >e+sites >i// deve/o% a community o; users +y o;;erin" va/ueA+ased content ;ree o; c1ar"e. $ontent >i// vary accordin" to t1e >e+siteE /an"ua"e /essons, artic/es, %1otos, i//ustrations, o%en source a%%/ications, 1o>Ato artic/es, and ot1er yet to +e determined content. Initia//y, <Business Name> >i// esta+/is1 t1e ;o//o>in" >e+sitesF <2e+site G8? 1> 9 site >1ic1 o;;ers ;ree $1inese /an"ua"e /essons. <2e+site G8? 2> 9 site >1ic1 >i// o;;er an o%en source <9%%/ication Name> a/on" >it1 <&y%e o;> re/ated document tem%/ates. <2e+site G8? > 9 site >1ic1 >i// o;;er <Cescri%tion-&y%e> document tem%/ates. &1e +usiness is a su+c1a%ter S $or%oration, >1ic1 >as incor%orated on <Cate>. &1e cor%oration 1as one s1are1o/der, <S1are1o/der Name>. <Business Name> 1as <Num+er S%e//ed *ut> %rinci%a/s, eac1 s1arin" eBua/ interest in t1e cor%oration. &1ey are <S1are1o/der 1 Name>, <S1are1o/der 2 Name>, and <S1are1o/der Name>. <S1are1o/der 1 Name>is t1e 6resident, <S1are1o/der 2 Name> is t1e Secretary and &reasurer, <S1are1o/der Name> is t1e )ice 6resident. <Num+er> s1ares o; stoc3 >ere initia//y issues, >it1 eac1 %rinci%a/ receivin" <Num+er> s1ares. <Business Name> is %1ysica//y /ocated at, and o%erated ;rom <9ddress>.

2. Executive Summary
2rite t1is section /ast as it is a 1i"1 /eve/ summary o; your entire +usiness %/an. &1is section is read +y 1i"1 /eve/ executives >1o 1ave a need to 3no> a+out your +usiness +ut donDt necessari/y 1ave t1e time to read a// t1e s%eci;ics. I; t1ey need s%eci;ics on any %articu/ar to%ic, t1ey >i// "o to t1at section o; t1e +usiness %/an. State t1e %ur%ose o; your +usiness. Identi;y *>ners1i% &ar"et !ar3et GniBue Se//in" 6ro%osition

.ro>t1 6/ans

3. Mission, Strategies, etc. (Company, Strategy and Management Team)

3.1. Vision
9 vision statement is >1ere you %resent a c/ear and de;ined descri%tion o; t1e desired outcome o; your +usiness. &1e ;irst sentence o; your vision statement s1ou/d +e a s1ort, yet %o>er;u/, sentence >1ic1 ca%tures t1e overa// s%irit o; t1e +usiness. &1e vision statement can +e one %ara"ra%1, or severa/ %ara"ra%1s. <Business Name>Ds vision is to +e an aut1oritative source o; ;ree in;ormation, %roducts and services on t1e >e+. 2e >i// earn our customersD trust, and ;o//o>in", +y o;;erin" on/y t1e 1i"1est Bua/ity in;ormation, %roducts and services : a// ;ree o; c1ar"e. <2e+site 1> >i//

3.2. Mission
&1e mission statement is a s1ort statement o; t1e %ur%ose o; t1e +usiness. &o deve/o% >e+sites >1ere %eo%/e can come ;or ;ree %roducts and services >1ic1 >i// 1e/% t1em to advance in t1eir %ro;essiona/ and %ersona/ /ives.

3.3. Objectives/Goals
&1e +usiness o+,ectives are statements de;inin" t1e tan"i+/e de/ivera+/es o; t1e +usiness and >1at t1ey are ex%ected to ac1ieve. &1e o+,ectives s1ou/d +e concise/y >ritten so t1ey can +e eva/uated at a /ater date to see >1et1er t1ey >ere ac1ieved and to t1e extent t1ey >ere ac1ieved. 21en >ritin" t1e o+,ectives +e sure t1at t1ey are s%eci;ic, measura+/e, attaina+/e, rea/istic and time +ound. Start out +y statin" t1e overreac1in" o+,ective o; t1e +usiness #t1e %rimary reason ;or c1arterin" t1e %ro,ect', t1en ;o//o> it u% >it1 t1e more s%eci;ic detai/ed o+,ectives o; t1e +usiness. Hou s1ou/d a/so inc/ude any o+,ectives >1ic1 are exc/uded ;rom t1e +usiness. =or exam%/e, someone may ex%ect t1at +y de%/oyin" a ne> 1e/%des3 system t1at t1e %roductivity o; t1e %eo%/e >or3in" t1e 1e/%des3 >i// increase, >1en in actua/ity it >i// not.

3.4. Keys to Success

In t1is section you need to identi;y t1e 3eys to success ;or your +usiness. 21at >i// ma3e your +usiness more /i3e/y to succeed t1an ot1er com%ara+/e +usinessesI 21at ma3es your +usiness s%ecia/I

0eys to success ;or <Business Name> areF High Quality Content. 9// >e+sites >i// em%1asise content >1ic1 is o; t1e 1i"1est Bua/ity to t1e tar"et audience. Value. 6eo%/e >i// on/y "o to >e+sites >1ic1 o;;er somet1in" o; va/ue. 9// o; our >e+sites >i// em%1asise va/ue in t1e content and services %rovided. Community. &1e success o; t1is +usiness de%ends "reat/y on t1e +ui/din" o; communities on t1e >e+. Because t1e revenue sources are ;rom advertisin" maximi<in" tra;;ic on t1e >e+sites is critica/ to its success. By +ui/din" communities around t1ese to%ic s%eci;ic >e+sites t1e sites >i// "enerate tra;;ic and /in3s ;rom ot1er sites. Credibility. Since t1e >e+sites +ein" deve/o%ed are in s%ecia/i<ed ;ie/ds and tar"eted to>ards %ro;essiona/s and students, credi+i/ity is a 3ey success ;actor. Reputation. &1e >e+sites need to "enerate or"anic tra;;ic on t1e Internet t1rou"1 re;erra/s and >ord o; mout1. Esta+/is1in" a re%utation as su+,ect matter ex%erts and %rovidin" 1i"1 Bua/ity services and %roducts is 3ey to t1e success o; t1is +usiness. Usability. 6rovidin" %roducts and services %eo%/e >ant, even i; itDs ;ree, on/y >or3s i; t1e users can easi/y ;ind >1at t1eyDre /oo3in" ;or. Ensurin" t1e usa+i/ity o; t1e >e+sites adds to t1e /i3e/i1ood o; success in t1e +usiness.

3.5. Strengths !ea"nesses O##ortunities an$ %hreats &S!O%s'

=or many o; us entre%reneurs itDs di;;icu/t to identi;y t1eir stren"t1s and >ea3nessesE es%ecia//y our >ea3nesses. 2e /i3e to t1in3 t1at >e are ca%a+/e o; most anyt1in" >e %ut our minds to and t1at >eDre ex%erts on most everyt1in". Jo>ever, success;u/ entre%reneurs 1ave a common c1aracter >1ere t1ey are a+/e to o+,ective/y identi;y t1eir >ea3nesses and see3 outside 1e/% accordin"/y. By identi;yin" our >ea3nesses >e determine >1ere >e need to im%rove ourse/ves, +ut most im%ortant/y ;or >1at areas >e s1ou/d /oo3 to outsource to someone more Bua/i;ied. 8etros%ective/y, +y identi;yin" our stren"t1s >e t1en 3no> >1at can +e /evera"ed to +ui/d t1e +usiness and ensure success. Strengths: 6rinci%a/s 1ave a com+ined tota/ o; 9 years o; ex%erience in >e+site deve/o%ment and "eneratin" tra;;ic #J&!? $odin", 2e+site Cesi"n, SE*, ?in3 Bui/din" and 9rtic/e 2ritin" and Cistri+ution'.

Ex%erience and 3no>/ed"e in t1e su+,ect matters on >1ic1 t1e >e+sites >i// +e deve/o%ed. &1ese su+,ect matters areE <Su+,ect !atter 1>, <Su+,ect !atter 2> and <Su+,ect !atter >. &1e 6rinci%a/s 1o/d t1e ;o//o>in" certi;icationsE <$erti;ication 1>, <$erti;ication 2>, <$erti;ication > and <$erti;ication 4>.

ea!nesses =undin" is /imited ;or t1is startAu%. "pportunities &1ere are a /imited num+er o; >e+sites >1ic1 1ave simi/ar content. $ontent +ased >e+sites is sti// at its in;ancy, t1is is a "ro>in" ;ie/d in %ro;itin" ;rom t1e Internet. Threats ?ar"er and +etter ;unded com%anies can du%/icate our %roducts and services easi/y.

3.(. Strategies
&1e strate"ies section is >1ere you sit do>n and deve/o% a 1i"1 /eve/ ma% o; 1o> youDre "oin" to +ui/d your +usiness. &1e strate"ies s1ou/d +e deve/o%ed ;rom a 1(,000 ;oot vie>. HouD// use t1is section as your roadma% to +ui/din" t1e +usiness. In order ;ocus t1e deve/o%ment o; t1e +usiness, t1e ;o//o>in" strate"ies >i// +e ;o//o>ed. Ceve/o% >e+sites >it1 3ey searc1 terms in t1e G8?. Ceve/o% content ;or >e+sites. ?evera"e ;ree/ancers t1rou"1 sites suc1 as >>>.e/ance.com to deve/o% content. Bui/d /in3s t1rou"1 reci%roca/ /in3s, /in3+ui/din" cam%ai"ns, artic/e distri+ution, ne>s/etters and +/o" advertisin". *ne >ay in+ound /in3in" cam%ai"ns >i// +e sourced out t1rou"1 >>>.e/ance.com. B/o" /in3s >i// +e deve/o%ed t1rou"1 sites suc1 as >>>.smorty.com. 9rtic/es >1ic1 >e donDt >rite ourse/ves >i// +e outsourced t1rou"1 >>>.e/ance.com and >i// +e circu/ated t1rou"1 various artic/e distri+ution >e+sites and ne>s/etters. Bui/d o%tAin emai/ su+scri%tion /ists t1rou"1 enro/ments on eac1 o; t1e >e+sites and distri+ute mont1/y or Buarter/y ne>s/etters. $ontinua//y add ne> content. $ontinua//y add ne> services, ;eatures and %roducts.

. !roducts and Services

Every +usiness %roduces some sort o; %roduct or service. In t1is section you >i// identi;y and descri+e t1e %roduct and-or service your +usiness >i// %rovide. Since t1e +usiness mode/ is to "enerate advertisin" revenue ;rom >e+sites, <$om%any Name> >i// %rovide %roducts ;or ;ree. In order ;or t1ese ;ree %roducts to attract tra;;ic to t1e >e+site t1ey must +e o; t1e 1i"1est Bua/ity. &1e %roducts t1e +usiness >i// %rovide areF #o$ument Templates. Ji"1 Bua/ity tem%/ates ;or >ide/y >anted documents >1ic1 are easi/y understood and a%%/ied to t1e visitors needs and circumstances. &1e document tem%/ates >i// inc/ude instructions and ex%/anations, standard ver+ia"e and rea/A/i;e exam%/es. %anguage %essons. *ne o; t1e >e+sites >i// %rovide on/ine $1inese /essons. &1e /essons >i// inc/ude +ot1 audio and >ritten versions, %rinta+/e ;/as1 cards, on/ine %ractice %ro"ram and detai/ed +rea3do>n and ex%/anations o; t1e $1inese c1aracters. &1e uniBue a%%roac1 to t1ese /essons >i// +e to "ive t1e student +ot1 insi"1t into t1e /an"ua"e and t1e too/s t1ey need to /earn it. &rti$les. 9rtic/es >1ic1 o;;er advice and "uidance to users in re/evant to%ics. &1ese artic/es >i// +e /ocated on t1e >e+sites and distri+uted t1rou"1 means suc1 as ne>s/etters and artic/e distri+ution sites. Produ$t Re'ie(s. 8evie>s o; %roducts suc1 as +oo3s, too/s and ot1er %roducts >i// +e %rovided on t1e >e+sites.

". #evenue Sources

&1e %rimary reason to start a +usiness is to ma3e money. In t1is section you >i// identi;y 1o> your +usiness >i// "enerate revenues. <Business Name> >i// "enerate revenues t1rou"1 advertisements on t1e >e+sites and in ne>s/etters. &1is section identi;ies t1e advertisin" sources a/on" >it1 an estimate o; t1e annua/ revenues "enerated +y eac1 advertisin" source. Based on t1e t1ree %rimary >e+sites identi;ied in t1is +usiness %/an, t1e tota/ ex%ected annua/ revenues startin" a;ter t1e ;irst year is K1(5,000. &1is %ro,ection is a rou"1 estimate and >i// de%end "reat/y on t1e e;;ectiveness o; +ui/din" tra;;ic to t1e t1ree >e+sites. 9dditiona/ revenue can +e "enerated in t1e ;uture as ot1er services and %roducts are deve/o%ed >1ic1 /evera"e t1e >e+sites.

5.1. )ai$ )er *lic" +$vertising , Google +$Sense

6ayA%erAc/ic3 advertisin" t1rou"1 .oo"/e 9dSense is ex%ected to "enerate a+out K127,000 %er year in revenues. 8e/evant ads are "enerated +y 9dSense +ased on

t1e content o; t1e >e+site. &1e +ids ;or re/evant ads vary accordin" to t1e to%ic. 2e 1ave +ased t1e ;o//o>in" revenue estimates +ased on a %i/ot o; eac1 o; t1e t1ree >e+sites and determinin" overa// tra;;ic on simi/ar >e+sites. &1e ca/cu/ations ;or $6! are +ased ;rom actua/ e;;ective $ost 6er &1ousand earnin"s as measured t1rou"1 test %a"es >it1 simi/ar content to >1at t1e /ive >e+sites >i// contain. <2e+site 1> 6a"e )ie>s %er CayF E;;ective $6!F &nnual Re'enue: <2e+site 2> 6a"e )ie>s %er CayF E;;ective $6!F &nnual Re'enue: <2e+site > 6a"e )ie>s %er CayF E;;ective $6!F &nnual Re'enue: 22,000 K2.(0 )*+,+++ 4,000 K27.5( )-*,+++ 10,000 K17.21 )..,+++

5.2. +--iliate )rogra. , +.a/on.co.

9ma<on is o;ten re;erred to as t1e ;ounder o; t1e on/ine a;;i/iate %ro"ram. &1ey deve/o%ed and %er;ected it at a time >1en on/ine retai/ >as at its in;ancy. *n eac1 o; t1e t1ree >e+sites >e >i// inc/ude a +oo3s section >1ere >e >i// %rovide +oo3 revie>s a/on" >it1 t1e o%%ortunity ;or %eo%/e to %urc1ase t1e +oo3s ;rom 9ma<on. 9s >e didnDt 1ave a met1od to create a %i/ot to determine %ro,ected revenues ;or 9ma<on, >e +ased our estimates on >1at ot1er %eo%/e 1ave measured ;rom t1eir >e+sites. *n avera"e, actua/ revenues >1ere 9ma<on.com a;;i/iate %ro"ram earns a+out 1-( o; .oo"/e 9dSense. Based on t1is >e %ro,ect 9ma<on revenues to +e a%%roximate/y K2(,000.

5.3. +--iliate )rogra. , 0+--iliate 1a.e 2

<9;;i/iate Name> 1as a "enerous a;;i/iate %ro"ram >it1 0 day coo3ies and 10L commissions on movies. $ommission ;or ot1er %roducts varyE 1o>ever, $1inese /an"ua"e C)CDs are >1at >e >i// +e %romotin". 8eadin" various +/o"s on/ine t1ere are some %eo%/e >1o c/aim t1at t1is is t1eir to% earnin" a;;i/iate %ro"ramE 1o>ever, >e donDt 1ave a +asis ;or an actua/ estimate. 2or3in" >it1 a conservative estimate >e ca/cu/ated an avera"e sa/e o; 40 C)CDs %er >ee3 at an avera"e cost o; K20 eac1. 2it1 a 10L commission t1is %ro,ects K4,000 in annua/ revenue ;or t1e $1inese /an"ua"e >e+site.

$. %uture &ro't( )pportunities

2e entre%reneurs 3no> t1at +usiness is dynamic and in order to succeed >e need to +e a+/e to ma3e c1an"es to t1e +usiness accordin" to mar3et demands. &1is section identi;ied areas >1ic1 t1e +usiness can ex%and into.

(.1. 3ive Online %eachers

6rovidin" on/ine /ive teac1ers ;or one on one sessions. &1e "oin" %rice ;or on/ine /ive teac1ers is K10 to K1( %er 1ourE >1ereas, t1e "oin" rate in t1e States is K40 %er 1our. &eac1ers >ou/d +e /ocated overseas in order to ta3e advanta"e o; t1e /o>er sa/aries. $oncern is >it1 time <ones, as I need to 1ave teac1ers avai/a+/e durin" 9merican and Euro%ean daytime and >ee3end 1ours.

(.2. *lassroo. 3essons

?evera"e t1e teac1ers ;rom t1e /ive on/ine /essons to %rovide c/assroom /essons to sma// "rou%s o; students. $/assrooms >ou/d +e /ocated in t1e country o; t1at /an"ua"e and >ou/d o;;er an immersion ex%erience. 6ossi+/y inc/ude tourist activities and-or trave//in".

(.3. Vi$eo 3essons

$reate C)CDs ;or /esson "rou%s #i.e. ?esson 1 t1rou"1 10'. Eac1 C)C >ou/d +e a+out 40 minutes. C)CDs cou/d se// on/ine and a/so +e distri+uted to stores. &1is >ou/d reBuire a /ar"e u%;ront %roduction cost.

(.4. 4oo"s , Short Stories

Boo3s o; /esson materia/ can +e created a/on" >it1 s1ort story +oo3s ;or +e"inner readers. &1ere are no "ood +oo3s on t1e mar3et ;or +e"inner readers ot1er t1an c1i/drenDs +oo3s. *ne exam%/e o; suc1 a "ood +e"innerDs +oo3 is, M.raded $1inese 8eader 1N. &1is +oo3 inc/udes around 2000 >ords +ased on t1e 10 >ords o; ?eve/ 9 and some o; ?eve/ B ;rom t1e JS0 out/ine. *ur +oo3s >ou/d start >it1 s1ort stories >it1 >ords ;rom t1e ;irst 10 /essons and advance +y +/oc3s o; 10 /essons at a time.

(.5. )rinte$ 3esson Materials

Boo3s o; /esson materia/ can +e created a/on" >it1 1i"1 Bua/ity "/ossy ;/as1 cards. &1e +oo3s >ou/d inc/ude more "ra%1ics and content t1an t1e on/ine /essons.

*. Mar+eting !,an
!ar3etin" is 3ey to t1e success o; t1is +usiness. &1e com%anyDs o%erations >i// center around t1e mar3etin" and ima"e %/ans. &1rou"1 our mar3etin", >e >i// strive to +e

visi+/e. &1is >i// +e accom%/is1ed +y investin" in our ima"e and +ui/din" eBuity in it. &1e com%any >i// set standards >1ic1 >i// +e ad1ered to, t1rou"1 t1ese standards t1e com%any >i// +ecome credi+/e. Becomin" visi+/e and credi+/e are t1e t>o main "oa/s o; our mar3etin" %/an.

5.1. Mar"et +nalysis

9 mar3et ana/ysis 1as not +een %er;ormed, t1is is not reBuired initia//y since >e >i// +e se//in" %roducts >1ic1 are a/ready on t1e mar3et. 2e >i// %er;orm mar3et ana/ysis ;or ne> %roduct /ines >1ic1 >e >i// +e deve/o%in". !ar3et ana/ysis ;or t1ese %roducts >i// inc/ude surveyin" stores in our area, surveyin" consumers, and researc1in" demand ;or items t1rou"1 ot1er sources.

5.2. *o.#etition
9n ana/ysis o; t1e com%etition 1as not +een %er;ormed. Curin" t1e initia/ startAu% o; t1e +usiness, an ana/ysis o; t1e com%etition >i// +e %er;ormed. In;ormation to inc/ude in t1e ana/ysis inc/udesE Identi;y t1e ;ive nearest direct com%etitors. Jo> do t1ey advertiseI 21at are t1eir stren"t1s and >ea3nessesI Jo> does t1eir %roduct di;;er ;rom oursI

2e >i// maintain a ;i/e on eac1 o; t1e ;ive com%etitors. In t1is ;i/e >e >i// 3ee% co%ies o; t1eir advertisin" and %romotiona/ materia/s, t1eir %ricin" strate"y, and any ot1er in;ormation >1ic1 can +e co//ected.

5.3. *usto.er )ro-ile

Eac1 o; t1e t1ree >e+sites >i// tar"et a di;;erent customer >it1 no over/a%%in" o; customers +et>een t1e sites. Jere >e %rovide a 1i"1 /eve/ %ro;i/e o; t1e customers ;or eac1 o; t1e >e+sites. /(ebsite 01 &1is >e+site tar"ets t1ose >1o >ant to /earn $1inese. &1e tar"et customer isF &dults >1o are not students current/y enro//ed in sc1oo/ suc1 as 1i"1 sc1oo/ or co//e"e Business People >1o do +usiness in $1ina or >it1 $1inese s%ea3in" %eo%/e Tra'ellers %/annin" a tri% to $1ina

/(ebsite 01 &1is >e+site tar"ets %ro,ect mana"ers. &1e tar"et customer isF Pro2e$t 3anagers >1o are mana"in" %ro,ects accordin" to t1e 6!I 6!B*0 mode/ P3P Certified %ro,ect mana"ers Professionals >1ose ,o+ reBuires t1em to deve/o% a %ro,ect %/an and are /oo3in" ;or a startin" %oint to deve/o% t1e %ro,ect documents

/(ebsite 41 &1is >e+site tar"ets sma// to medium si<ed +usiness %ersons and mana"ers. &1e tar"et customer isF Start5up Business "(ners >1o are %/annin" to start a ne> +usiness 6stablished Business "(ners >1o o>n and o%erate sma// to medium si<ed +usinesses 3anagers +ot1 o; +usinesses and cor%orations

5.4. Mar"et Si/e Sales 6 Share )rojections

Cescri+e t1e si<e o; t1e mar3et in >1ic1 your +usiness >i// +e com%etin". &a/3 a+out sa/es and mar3et s1are %ro,ections ;or your com%any. &1e mar3et si<e ;or 1ome %roducts suc1 as %ictures and ot1er sma// ;urnis1in"s is virtua//y un/imited. In dea/in" >it1 items >1ic1 most %eo%/e 1ave in t1eir 1omes, >e are a//o>in" ;or /ar"e "ro>t1 over time. *ur mar3et s1are "ro>t1 >i// +e /imited +y t>o ;actorsE mar3et demand, and our a+i/ity to %rovide a 1i"1 /eve/ o; service to our customers.

5.5. Strategies -or reaching or e7cee$ing your targete$ sales levels

*ur %rimary met1od o; "ainin" ne> customers ;or >1o/esa/e sa/es >i// +e t1rou"1 trade s1o>s. Secondary met1ods to "ain ne> customers is t1rou"1 ma"a<ine c/assi;ied advertisin", net>or3in", >ord o; mout1, c1arity associations, and /oca/ c1am+er o; commerce. &1e %rimary met1od to "ain ne> retai/ customers >i// +e t1rou"1 t1e Internet usin" retai/ sites suc1 as 9ma<on, Ha1oo, and eBay, a/on" >it1 usin" searc1 en"ines /eadin" %otentia/ customers +ac3 to our >e+ site. 8e%eat >1o/esa/e +usiness >i// +e earned +y %rovidin" our customers >it1 exce//ent service, re%eated direct contact +et>een us and t1em, and direct

mar3etin". &o our existin" customers >e >i// continue to %/u" our name usin" %romotiona/ items suc1 as %osters, ca/endars, and tAs1irts, a// >it1 our com%any name and /o"o. 8e%eat retai/ +usiness >i// +e earned %rovidin" our customers >it1 exce//ent service, discount o;;ers, and direct mar3etin" #cata/o"s, +roc1ures, ;/iers, sa/e /etters'.

5.(. Sales Strategy

Sa/es Strate"y is >1ere >e discuss >1at met1ods >e are "oin" to use to reac1 c/ients, >1at resources >e 1ave avai/a+/e and >i// use, and our com%etitive ed"e over t1e com%etition. =or some it may +e di;;icu/t to t1in3 o; a sa/es strate"y in a content +ased >e+ service >1ere t1e +usiness mode/ is to %rovide ;ree content. Jo>ever, to ensure success o; t1is +usiness >e must t1in3 o; 1o> >eDre "oin" to se// %eo%/e on our ;ree content. Sa/es strate"y is t1e %/annin" o; sa/es activitiesF met1ods o; reac1in" c/ients, com%etitive di;;erences and resources avai/a+/e. &actics invo/ves t1e dayAtoAday se//in"F %ros%ectin", sa/es %rocess, and ;o//o>Au%.

5.5. 0!ebsite 12
&1is >e+site >i// "enerate t1e ma,ority o; its customers t1rou"1 >e+ searc1es. Jo>ever, it >i// a/so inc/ude tar"eted advertisin" on >e+sites >it1 simi/ar content.

5.8. 0!ebsite 22
&1is >e+site >i// "enerate t1e ma,ority o; its customers t1rou"1 >e+ searc1es. Jo>ever, it >i// a/so inc/ude tar"eted advertisin" on >e+sites >it1 simi/ar content.

5.9. 0!ebsite 32
&1is >e+site >i// "enerate t1e ma,ority o; its customers t1rou"1 >e+ searc1es. 9dditiona//y, it >i// tar"et customers t1rou"1 industry re/ated advertisements #trade ,ourna/s' and advertisin" on >e+sites >it1 simi/ar content and interest "rou%s.

5.1:. +$vertising an$ )ublic ;elations

&1e advertisin" +ud"et >i// +e >e// ;unded. 9dvertisin" >i// consist o; on/ine re"istration >it1 searc1 en"ines, emai/ and direct mai/ to esta+/is1ed customers, trade ma"a<ine advertisements,

-. )perations !,an
<$om%any Name> >i// o%erate out o; t1e 1ouse o; t>o o; t1e %rinci%a/s o; t1e cor%oration. &1is +ase o; o%erations is /ocated at <9ddress>. Since t1is is an on/ine +usiness, t1is ;aci/ity >i// 1ouse on/y t1e com%uter eBui%ment needed to reac1 t1e Internet and t1e com%any records.

8.1. 3ocation
Initia//y t1e +usiness >i// +e /ocated at <Business 9ddress>. It >i// +e /ocated in t1e residence o; t1e %rimary %rinci%a/, t1us minimi<in" t1e startu% costs. 9s t1e +usiness "ro>s, t1ere is no "eo"ra%1ic advanta"e to /ocatin" it at one /ocation over anot1er. &1is is +ecause t1e +usiness is a com%/ete/y on/ine +usiness >it1 no reBuirements to +e tied to a s%eci;ic %1ysica/ /ocation. 9s suc1, it can +e mana"ed and o%erated ;rom any "/o+a/ /ocation.

8.2. )ro$uction
Ex%/ain 1o> you >i// %roduce t1e %roduct or service your +usiness is %rovidin". In order to conserve ;unds, >1ere %ossi+/e >e >i// +e %roducin" our %roducts inA 1ouse. In areas >1ere >e 1ave /imited s3i//s, or >1ere it can +e %er;ormed more e;;icient/y e/se>1ere >e >i// outsource to ;ree/ancers. ebsite #e'elopment and Updates. J&!? +ased >e+sites >i// +e deve/o%ed inA1ouse, 6J6 +ased >e+sites >i// +e outsourced t1rou"1 E/ance. &1e $1inese /an"ua"e >e+site >i// +e 6J6 +asedE >1ereas, t1e ot1er t>o >e+sites >i// +e coded in J&!?. Sear$h 6ngine "ptimi7ation 8S6"9. 9// SE* activities >i// +e %er;ormed inA1ouse exce%t ;or /in3 +ui/din". ?in3 +ui/din" >i// +e outsourced t1rou"1 E/ance at a cost o; K200 %er (0 in+ound oneA>ay /in3s. Chinese %esson #e'elopment. &1e deve/o%ment o; t1e $1inese /an"ua"e /essons >i// +e outsourced at t1e cost o; K2,000 %er 10 /essons. &1is inc/udes t1e com%/ete /esson a/on" >it1 an audio version. ?essons >i// +e deve/o%ed at a rate o; ;ive /essons %er mont1. #o$ument Templates. 9// document tem%/ates >i// +e deve/o%ed inA1ouse. &rti$les. 9// artic/es >i// +e deve/o%ed inA1ouse.

.. Management / 0dministration ()rgani1ation !,an)

&1is section covers t1e o>ners1i% and mana"ement structure o; t1e com%any. It is o3ay to 1ave t1e same %erson ;i// mu/ti%/e ro/es as t1is is common >it1 many sma// +usinesses.

&1e mana"ement team consists o; t1e t>o %artners o; t1e +usinessE <Name 1> and <Name 2>. &1e mana"ement team ma3es u% t1e entire sta;; ;or t1e com%any. Cue to t1e nature o; t1e com%any, 1irin" additiona/ sta;; >i// not +e necessary. Curin" t1e initia/ startAu% %eriod ;or t1e com%any t1e o>ners >i// not receive sa/aries or +ene;its. Sa/aries >i// +e determined +ased on cas1 %ro;ita+i/ity and at no time >i// sa/aries exceed ;i;ty %ercent o; t1e com%anyDs %ro;it. &1e remainder o; t1e %ro;it >i// +e reinvested into t1e com%any and used to %ay o;; any outstandin" de+t. Sa/aries >i// +e eBua/ ;or a// o;;icers o; t1e com%any. Bene;its >i// +e eva/uated a;ter t1e com%any +ecomes %ro;ita+/e, t1is >i// /i3e/y +e outsourced to an Juman 8esource ty%e com%any.

9.1. *o.#any O<nershi#

&1e cor%oration is o>ned eBua//y +y t>o %ersonsE <Name 1> and <Name 2>. G%on initia/ incor%oration eac1 %erson >i// +e "ranted (,000 s1ares o; com%any stoc3 at a %ar va/ue o; K0.01 eac1. &rans;er o; o>ners1i% can +e made as eit1er a sa/e or "i;t. 9// costs associated >it1 trans;errin" o>ners1i% >i// +e incurred +y t1e %erson ;rom t1e o>ners1i% is +ein" trans;erred. =irst c1oice to %urc1ase o>ners1i% >i// +e "iven to existin" %rinci%a/s.

9.2. Managerial Style

#e$isions 3a!ing. <Name> >i// +e t1e ;ina/ decision ma3er ;or a// +usiness decisions. Pro2e$t 3anagement. 6ro,ect mana"ement >i// +e accordin" to t1e 6!I 6!B*0 standards and >i// ;o//o> t1at %rocess. .antt c1arts >i// +e used ;or sc1edu/e mana"ement. Re$ord :eeping. 2e >i// use Ouic3Boo3s to mana"e our ;inancia/ records. *t1er e/ectronic means >i// +e used to trac3 records >1ic1 cannot +e ca%tured in Ouic3Boo3s. 21enever %ossi+/e, a// records s1ou/d +e made >e+ accessi+/e. Communi$ation. $ommunication >it1in t1e com%any >i// +e %rimari/y ora/ or t1rou"1 emai/s. =or any communications ;or >1ic1 a record is desired >i// +e made t1rou"1 emai/s. $ommunication externa/ to t1e com%any >i// +e %rimari/y t1rou"1 emai/s.

9.3. Manage.ent
&1e mana"ement team consists o; t1e t>o %rinci%a/s o; t1e com%any. <Name 1> is t1e 6resident, Cirector o; =inance, Cirector o; !ar3etin" and Cirector o; In;ormation &ec1no/o"yE <Name 2> is t1e Cirector o; *%erations. &1e 6resident is res%onsi+/e ;or overseein" t1e overa// o%eration o; t1e com%any. &1e 6resident ensures t1at t1e com%anyDs vision is %ursued, t1at "oa/s are set and ;o//o>ed and t1e com%anyDs strate"y is ;o//o>ed. &1e 6resident revie>s t1e

Business 6/an %eriodica//y to con;irm t1at t1e %/an is current, sti// a%%/ies to t1e com%anyDs needs, and t1at t1e com%any is ;o//o>in" t1e %/an. &1e Cirector o; =inance is res%onsi+/e ;or maintainin" a// ;inancia/ records, ensurin" t1at t1e com%any com%/ies >it1 a// tax /a>s and %rovides ;inancia/ re%orts to mana"ement. &1e Cirector o; !ar3etin" is res%onsi+/e ;or t1e mar3etin" o; t1e com%any, itDs %roducts. !ar3etin" inc/udes %roduct deve/o%ment, creatin" and distri+utin" ne>s/etters, /in3 +ui/din" and any ot1er mar3etin" needs t1at arise. Cirector o; In;ormation &ec1no/o"y #I&' is res%onsi+/e ;or deve/o%in" and maintainin" a// I& systems inc/udin"E >e+site, des3to%-/a%to% com%uters, a%%/ications and searc1 en"ine o%timisation #SE*'. &1e Cirector o; *%erations is res%onsi+/e ;or t1e day to day o%erations o; t1e +usiness. &1is inc/udes ensurin" t1at inBuiries are ans>ered, content is maintained on t1e >e+sites and t1e overa// o%erations o; t1e +usiness continues in an or"ani<ed and %ro;icient manner.

;igure <.0 Organizational Chart 9.4. +$.inistration

Since t1is +usiness is +ein" mana"ed and o%erated +y t>o %ersons, administrative res%onsi+i/ities >i// over/a%. 6rimary areas o; res%onsi+i/ity and associated too/s are /isted in ;i"ure 9.2, 9dministrative 8es%onsi+i/ities.

;igure <.* Administrative Responsibilities

9dministrative &as3 9ccountin" and Inventory. 6ayro// and &axes 6roduct Ceve/o%ment ?in3 Bui/din" 9dvertisin" 2e+ 6a"e Cesi"n 2e+ 6a"e Ceve/o%ment and G%dates 2e+ Server $ontent G%datin" on 2e+ Site Cay to Cay 9dministrative =unctions 9dministrator 6resident Cirector o; =inance Cirector o; !ar3etin" Cirector o; !ar3etin" Cirector o; !ar3etin" Cirector o; !ar3etin" Cirector o; In;ormation &ec1no/o"y #I&' Cirector o; In;ormation &ec1no/o"y #I&' Cirector o; *%erations Cirector o; *%erations &oo/s Ouic3Boo3s *utsourced !S 2ord E/ance .oo"/e 9d>ords Cream>eaver Cream>eaver @ 2SP=&6 N-9 N-9 N-9

12. %inancia, !,an

&1is ;inancia/ %/an conservative/y %ro,ects t1e overa// ;inances o; t1e cor%oration. 9/t1ou"1 many o; t1e %ro,ections are +ased o;; %i/ot %ro"rams and statistica/ avera"es, t1e %ro,ections are mere/y a%%roximations. &1e success o; t1is +usiness is determined +y its a+i/ity to o;;er enou"1 ;ree %roducts suc1 t1at t1e >e+sites "enerate enou"1 tra;;ic to resu/t in su+stantia/ advertisin" revenue.

1:.1. )rojecte$ *ash =lo<

&1e %ro,ected cas1 ;/o> is +ased on t1e assum%tion t1at t1ere are no sa/es in t1e ;irst 12 mont1s o; +usiness.

1:.2.

Start>u# an$ O#erating 4u$gets

&1e com%any >i// +e ;unded +y an initia/ /oan o; K20,000 ;rom t1e %rinci%a/, <Name>. &1e costs associated >it1 t1e startAu% o; t1e +usiness is /isted +e/o> in =i"ure 10.1, StartAu% Bud"et.

Item

$ate"ory

*ne &ime $ost

8ecurrin" $ost #%er mo.'

Business Incor%oration =i/in" 8e"ister Internet Comain Names #2 years' Ouic3Boo3s 9ccountin" So;t>are $or%orate Sea/ and Stoc3 $erts. 2e+ Jostin" 2e+site Cesi"n Services $ontent ;or <>e+site 1> A =irst 10 /essons >- ( /essons every six >ee3s ;o//o>in" ?in3 Bui/din" 6ro"rammin" #$1inese 2e+site'

?e"a/ !ar3etin" So;t>are ?e"a/ 2e+ Jostin" 2e+ Jostin" $ontent !ar3etin" I&

K200 K50 K200 K100 K400 K400 K2,000

K4

K400 K0 K445 K 00

K2,400

&ota/

K(,950

K1, 5

;igure 0+.0 Start-up Budget 1:.3. O#erating 4u$get

&1e mont1/y o%eratin" +ud"et is +ased on 3no>n o%eratin" ex%enses on a mont1/y +asis. &1e costs associated >it1 runnin" t1e +usiness is /isted +e/o> in =i"ure 10. , !ont1/y *%eratin" Bud"et.

1:.4. +ccounting an$ ?nventory *ontrol Syste.

2e >i// use Ouic3Boo3s 6ro;essiona/ accountin" so;t>are to maintain our accountin" and inventory records.

1:.5. *ash =lo< )rojections

$as1 ;/o> %ro,ections %resented 1ere are +ased on 3no>n startAu% and on"oin" ex%enses. &1e cas1 ;/o> %ro,ections does not %ro,ect sa/es and t1e cost o; t1e merc1andise so/d, rat1er it s1o>s t1e ;inancia/ o%erationa/ 1ea/t1 o; t1e com%any. Ex%ected cas1 ;/o> %ro,ections are %resented in "ra%1ica/ ;ormat in =i"ure 10.4, $as1 =/o> 6ro,ections.

12 Mont( %inancia, !ro3ection

$25,000

$20,000

$15,000

Revenue Expenses Cash Balance

$10,000

$5,000

$0 Startup 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

;igure 0+.- 12 Month Cash Flow ro!e"tion

3 4ear %inancia, !ro3ection

$250,000

$200,000

$150,000

Revenue Expenses Cash Balance

$100,000

$50,000

$0 Year 1 Year 2 Year 3

;igure 0+.- # $ear Cash Flow ro!e"tion 1:.(. =un$ing ;e@uire.ents

=undin" ;or t1e startAu% and ;irst year o; o%erations >i// +e %rovided +y t1e %rinci%a/s o; t1e cor%oration. Initia//y <Name> >i// %rovide t1e K20,000 ;or t1e initia/ startAu%. No additiona/ ;undin" >i// +e reBuired.