即時線上通訊系統創業企劃 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 即時線上通訊系統創業企劃 n. al. er. io. Business Plan for the Web Instant Messaging Service. Ch. engchi. i n U. v. Student: Ellie Hsu Advisor: Professor Chester Ho. 中華民國一○一年十一月 November 2012.

(2) 即時線上通訊系統創業企劃 Business Plan for the Web Instant Messaging Service. 研究生：徐世強. Student: Ellie Hsu. 指導教授：何小台. Advisor: Chester Ho. 學. ‧ 國. 立. 政治大國立政治大學. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfillment of the Requirements for the degree of Master in Business Administration. 中華民國一○一年十一月 November 2012.

(3) TABLE OF CONTENTS 1.. 2.. Executive Summary............................................................................................................ 1 1.1.. Objectives ................................................................................................................... 3. 1.2.. Mission ....................................................................................................................... 3. 1.3.. Keys to Success .......................................................................................................... 4. Company Summary ............................................................................................................ 5 2.1.. Company Ownership .................................................................................................. 5. 2.2.. Start-up Summary ....................................................................................................... 5. 3.. Services ............................................................................................................................... 7. 4.. Market Analysis Summary ................................................................................................. 9. 4.2.. Service Business Analysis ........................................................................................ 12. 4.3.1.. Web Plan Summary .......................................................................................................... 14 5.1.. Website Marketing Strategy ..................................................................................... 14. 5.2.. Development Requirements ..................................................................................... 14. sit. al. 6.1.3.. Opportunities .................................................................................................... 17. 6.1.4.. Threats .............................................................................................................. 18. n. 6.1.2.. v i n Ch Strengths ........................................................................................................... 16 engchi U Weaknesses ....................................................................................................... 17. SWOT Analysis ........................................................................................................ 16. 6.1.1.. 6.2.. Competitive Edge ..................................................................................................... 18. 6.3.. Marketing Strategy ................................................................................................... 19. 6.4.. Sales Strategy ........................................................................................................... 20. 6.4.1. 6.5.. Sales Forecast ................................................................................................... 20. Milestones................................................................................................................. 22. Management Summary ..................................................................................................... 24 7.1.. 8.. er. io. Strategy and Implementation Summary ........................................................................... 16 6.1.. 7.. y. Nat. 6.. Competition and Buying Patterns ..................................................................... 12. ‧. 5.. 學. 4.3.. Target Market Segment Strategy .............................................................................. 11. ‧ 國. 4.1.. 政治大 Market Segmentation .................................................................................................. 9 立. Personnel Plan .......................................................................................................... 25. Financial Plan ................................................................................................................... 26 i.

(4) 8.1.. Start-up Funding ....................................................................................................... 26. 8.2.. Break-even Analysis ................................................................................................. 27. 8.3.. Projected Profit and Loss .......................................................................................... 28. 8.4.. Projected Cash Flow ................................................................................................. 31. 8.5.. Projected Balance Sheet ........................................................................................... 33. 8.6.. Business Ratios ......................................................................................................... 34. Appendix .................................................................................................................................. 36. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. ii. i n U. v.

(5) 1. Executive Summary Currently SMS is the most popular one for text messaging market, and the traffic of SMS was 5.9 trillion messages in 2011 which occupies 64.1% of the global text market. According to the research from Informa, the market share of SMS will down to 42.1% in 2016. At the same time, global mobile instant messaging traffic will increase from 1.6 trillion messages in 2011 to 7.7 trillion messages in 2016, doubling its share of global messaging traffic from 17.1% in 2011 to 34.6% in 2016. The number of IM users in 2011 reaches 2.6 billion and there are various kinds of instant. 治政 different features to differentiate from other competitors.大 Some IM applications are focusing 立 or Skype and others are focusing on the mobile device users on the computer users like MSN messaging application available in market already. Each IM application tries to focus on the. ‧ 國. 學. like Whatsapp or Line. ChatInn provides a new way to help people to keep communication between different platforms.. ‧. Whatsapp, one of the major competitors of IM service provider, after reaching 1m users by. y. Nat. the end of 2009, Whatsapp’s downloads increased tenfold during 2010. The company does. al. er. io. sit. not reveal its current user numbers but analysts assume it is in the tens of millions.. n. ChatInn is a web base instant messaging service which can work on the computers and the. Ch. i n U. v. mobile devices. ChatInn’s goal is to provide a quick, simple and a safe way for person who. engchi. wants a quick short meeting or chatting. Not like other IM applications, ChatInn doesn’t require the installation or the complicated registration to be able to use this service. For the new user, the only required information is the username and password, no other personal information is needed. To host or start a short meeting or chatting, the user only needs to send out the meeting url link which is generated by ChatInn to the target contact. The target contact could just simply click on the link from the computer or mobile device to enter the meeting or chatting. ChatInn also provides the app for mobile device users which allow the user could be always contacted online just like other IM apps. ChatInn is expected to reach 100K users in 6 months and more than 1 million users in the 3rd year of operation. Advertising will be the major profit center, and it highly depends on the. 1.

(6) size of user base. There will be net profit in the end of 2nd year and will generate net profit of 5.29M. When the active users keep growing steadily, ChatInn would start global marketing promotion as well in order to keep expending the business scale.. 立. 政治大. ‧. ‧ 國. 學. n. ChatInn's Home page. Ch. i n U. Chart 1: Highlights. engchi. 2. er. io. sit. y. Nat. al. v.

(7) 1.1.. Objectives. To reach 1 million registered users on ChatInn service and average 100,000 active online meeting are being held each day in the first operation year with this service launched in English and Chinese. 1000% yearly growth rate should be reached in the second year with the major languages supporting globally. Another 1000% yearly growth rate ( about 100 million users) is expected in the third year and this service could be integrated or linked in major social network service, online auction and other commercial services site. There is no or very limited profit expected in the first operation year. Start from second year,. 政治大. the revenue will be generated from the paying end users and online advertising ( mainly from advertising since the goal is to reach quite amount of end users ASAP.) The anticipated break. 立. even will occur in the third operation year.. ‧ 國. 學. 1.2.. Mission. Due to the trend of the popularity of various mobile devices, there are more and more instant. ‧. messaging applications have been created to provide people the better way to communicate.. y. Nat. Email is another major way for people to communicate at work and in their daily life and so. io. sit. do those online meeting applications or services. However, all of those applications or. er. services have their disadvantages or the space needs to be improved. Most of the instant. al. n. v i n C h they can start using computer or the mobile device before e n g c h i U that service. After installed it, the messaging and online meeting applications need the users to install the application on the. user might also needs to add the person who he wants to communicate with to his contact list first. As for email, the sender won't be able to get the response immediately until the receiver check his inbox. There are many circumstances that the user might need to chat or have a quick meeting with someone who is not on his contact list and he is not willing to add even after the chat or meeting. ChatInn's mission is to provide the reliable, quick and easy to use instant online meeting service with simple, clean and user friendly user interface on both Web and mobile devices platforms. Unlike the other instant messaging services, the service ChatInn provides, users could receive chat or host meeting with anyone on any platform without requesting any installation on the receiver side as long as the web browser is available on the receiver's 3.

(8) device. With the guarantee that no record will be saved on the server side once the meeting is over, we fully respect and protect user's privacy and also save the storage cost at the same time. ChatInn will be one of the major tools that people will choose for instant, reliable and safe communication.. 1.3.. Keys to Success. The key to success for ChatInn would have: 1. No Platform Limitation: Most of the instant messaging applications available in the market now usually are made for specific platform such like Windows, Mac or Linux. 政治大 devices. ChatInn’s instant messaging service doesn't require any specific platform as long 立. which are for personal computer and Symbian, Android, iOS or RIM which are for mobile. as there is the web browser running on the platform. So our target users won't need to. ‧ 國. 學. worry about what kind of platform or mobile devices that their friends or customers are using when they want to start a quick chat.. ‧. 2. Easy to start: Unlike the other instant messaging applications, ChatInn doesn't require the. Nat. sit. y. users to install the application on their computers or mobile devices. All the users need to. io. er. do is sending out the link to their contact(s) and the chat could be started as long as the receivers click the link to access the chat. All the participants of the online meetings do. n. al. Ch. i n U. v. not need to worry about any personal data or information leak while installing the. engchi. application since they don’t need to install anything.. 3. Easy to use: User will find ChatInn is quite easy to get familiar with the simple, clean and easy user interface design. No user registration required to use this service and easy to manage the new and existing meetings in the management system. 4. Quality: With the stable, reliable and fast connection, ChatInn will make sure to provide all the users the great and comfortable online chatting experience.. 4.

(9) 2. Company Summary ChatInn is a online instant chatting service provider, provide the stable, reliable, secure and quick chatting service for people who need to have a quick chat to someone or want to be located to chat by the others at anytime. With the convenience, instant and privacy protected platform, ChatInn ensure each user will have a great and comfortable online chatting experience with no worry about personal information leaking.. 2.1.. Company Ownership. The company, ChatInn is a limited liability company which is invested by Ellie Hsu and Enzo. 政治大 the Operation Director. This is a small company and there is no plan to incorporate with other 立 party in the first 2 years. However, further investment might be necessary upon to the rate and Yang. Mr. Enzo Yang will function as the General Manager and Mr. Ellie Hsu will work as. ‧ 國. 學. the amount of the service users.. Start-up Summary. ‧. 2.2.. The company founder Mr. Ellie Hsu will focus on product developing and the strategy. Nat. sit. y. planning and Mr. Enzo Yang will focus on the marketing and possible further fund raising.. er. io. It is estimated that the start up cost would be NTD $41,000 for the rent, office supplies. The. al. n. v i n C hand totaling NTD $U330,000 for the startup long term smart phones costing NTD $30,000 engchi asset.. long term assets are 8 laptop computers and one server costing NTD $300,000 and 3 android. ChatInn’s service will target on both personal computers and mobile devices. In the early stage of the service developing, ChatInn will focus on Android platform first, and step on the other platform (such as i-OS) in the future depends on the trend of the mobile device system. This application is a client-server application and the expense on server and the rent of the bandwidth will occur when the service goes online. The further expense on server and bandwidth will be adjusted according to the increasing rate of the service users. Additional cash amount of NTD $7,655,500 will be required as start-up assets. The start-up costs will be funded by the two major funders.. 5.

(10) Table 1: Start-up Start-up Requirements Start-up Expenses Legal Consultant Office Supply Rent Handset Computer Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements. 立. $32,000 $5,000 $36,000 $30,000 $240,000 $1,500 $344,500. 政治大. ‧. ‧ 國. 學. n. al. er. io. sit. y. Nat. Chart 2: Start-up. Ch. engchi. 6. i n U. v. $7,655,500 $0 $0 $7,655,500 $8,000,000.

(11) 3. Services ChatInn function as an instant online chatting service for people who want to have a quick chat or short meeting. When the users first start using ChatInn service, they will be asked to enter the user name and password. Unlike the other online services, this login page doesn’t require the user to register. The user name is the only data that will be saved on the server and the user can choose to use the previous user name to login or just create a new user name to login to use ChatInn’s service. There will be no difference for new or existing user to login and there is no other information will be required except for the user name and password. The server will verify the user is existed or new user depends on the username and password.. 政治大. Since there is personal data saved on the server at all, the users shouldn’t need to worry about. 立. the personal data leaking problem.. ‧ 國. 學. After login, the user simply can schedule the meeting or chat and decide how long that meeting will be available for the others to join. Once the time is set, the system will generate a. ‧. URL link and the user could send that link to the people who he / she would like to have meeting with. ChatInn is web base application which means as long as the platform has the. Nat. io. sit. y. browser; people could always join the meeting by clicking the URL link.. er. When there is someone requesting to join the meeting, there will a pop up message to inform. al. n. v i n C h multiple meetings those access requests. The host can host e n g c h i U the same time with multiple. the meeting host. The host could recognize the user from the user name and has the control of. participants in each meeting.. When the meeting is end, there will be a pop up message appear in each participant’s window and ask if they would like to send out the meeting history to their email. Once the meeting is done and terminated completely, all the meeting record will be removed from server as what ChatInn declared to the end users. No personal data and no chatting history or record will be saved on the server. The users also could add their friends (by using the ChatInn user ID or phone numbers) to the friend list and chat with the contacts as the other instant message services.. 7.

(12) ChatInn service will have the app version on mobile platform as well, such as Android and iOS. Users will receive the pop notification when someone wants to join one of the meetings. The ChatInn app will keep running in the background, so the user could always be notified when there is a new chat starting.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. ChatInn’s chatting page. 8. v.

(13) 4. Market Analysis Summary According to the study by study The Radicati Group, Inc, “Instant Messaging Market, 20112015”, there are over 2.5 billion Instant Messaging accounts worldwide in 2011, growing to 3.3 billion by 2015. The major leading market player including: Actiance, AOL, Bloomberg, Cisco, eBuddy, Facebook, Fring, Global Relay, Google, IBM, Meebo, Microsoft, Novell, Skype, Symantec, Tencent, Thomson Reuters, Yahoo!, and others. As for the mobile deive platform, the major players are NimBuzz, Fring, Viber, WhatsApp, eBuddy, Beejive, Line and etc.. 治政 between those accounts is huge. According to the report大 in October 2011, there are 1 billion 立per day, and it’s just one of the most popular IM applications messages sent with WhatsApp. Currently, there are 2.6 billion IM accounts worldwide and the amount of the communications. ‧ 國. 學. on mobile devices. There are 85% of handsets shipped globally in 2011 that included a web browser and the penetration of smartphone increases rapidly (currently it’s about 30%). From. platform communication service got great potential.. Nat. y. ‧. the data above, we can tell that the market for Instant Messaging is huge and the across. io. sit. Instant message surely is one of major ways for people to communicate and it is getting more. er. and more popular nowadays. Besides chatting with friends, there are many occasions that. al. n. v i n C h provides the greatUsolution for this kind of occasions the friend list or barely know. ChatInn engchi. people might need to have a quick short meeting or chatting with the person who is not from. and with no complicated steps to schedule and host the quick meeting.. 4.1.. Market Segmentation. The target market for instant messaging is anyone who uses the internet on pc or mobile devices and wants to connect with people in the world. Young people and kids use it to keep constant contact with their friends, arranging times to meet up, sharing information and etc. ChatInn’s service will focus on those market segments base on the purpose of meeting: 1. Faster Communication. Instead of frequently emails from customers or clients, instant messaging will be a good choice for better and faster communication. However, the customer or the client might not using the same IM application as you and you might not. 9.

(14) want to add him / her to the friends list even he / she is using the same IM application. ChatInn will be a great solution for situation like this, the user could simply just send the link to the customer and start a short meeting in a minute. 2. Social Networking. With the popularity of those social networking services, more and more people are using it as one of the major way to keep in touch with their friends and relatives. Instead of phone call or email, it’s more efficient and convenient to use instant message service to chat with the target contacts. ChatInn’s service provides the possibilities to keep the users being reachable at all times. Users could simply post their ChatInn URL links at their home pages, profile pages or any social networking site, and. 政治大. the other people could easily contact the user via a simple click on the link.. 立. 3. Business Operations: For those B2C, C2C web business (such like online auction and. ‧ 國. 學. online shopping services), ChatInn’s quick chatting URL links could be easily implanted into the any web pages. The business owners could be easily reached and provide the. ‧. proper information and service to their target customers. With ChatInn’s instant chatting service, it takes only few seconds to setup and provide 24-7 instant online service for any. sit Table 2: Market Analysis. n. al. er. io. Market Analysis. y. Nat. company.. Ch. Year 1. i n U. eYear n g2c h iYear 3. v. Year 4. Year 5. Potential Growth CAGR Customers Fast 200% 150,000 450,000 1,350,000 4,050,000 12,150,000 200.00% Communication (IM ) Social 20% 30,000 36,000 43,200 51,840 62,208 20.00% Networking Business 20% 10,000 12,000 14,400 17,280 20,736 20.00% Purpose Total 183.27% 190,000 498,000 1,407,600 4,119,120 12,232,944 183.27%. 10.

(15) Chart 3: Market Analysis (Pie). 學. 4.2.. ‧ 國. 立. 政治大. Target Market Segment Strategy. The preliminary main market of ChatInn will be the people who are into those social. ‧. networking services or running the C2C web business. To approach those online target. sit. y. Nat. markets, online advertisings will be efficient in the early stage of the business. The major efforts will focus on the online ads on those mobile devices which means App store for. n. al. er. io. iphone and Google play for android phones. As for the promotion for ChatInn’s web chatting. i n U. v. service, the URL and the ads will be implemented in the mobile app and pops up at the proper timing.. Ch. engchi. Since all the target customers are web users, online advertising surely will be one of the major ways to reach them. For the application like the IM service, mouth of words is efficient and important. Once a small group of people become the regular users, it will effect and launch out a great amount of people in a very short time. To attract people’s attention and curiosity to start trying this app for chatting, those technical forum and blogs will be a good start for the marketing efforts. Providing the content with the introduction about ChatInn written by professional writers to those websites surely will get the proper attention and well exposure on the internet.. 11.

(16) 4.3.. Service Business Analysis. Due to the trend of the smart phone, instant messaging services are getting popular and become one of the major ways to keep connecting with friends, colleagues and families. Currently, the smart phone market is about 30% of the total mobile phone market in the world and we can expect the potential market for instant messaging is huge as well. However, for service like instant messaging, it is difficult to ask the user to pay for it since there are many similar services available on the market with no charge. Because of that, to make sure the service is reliable and increases the amount of regular users is quite critical in the beginning stage.. 政治大. 4.3.1. Competition and Buying Patterns. 立. There are quite many IM applications available on the market already, such as Gtalk, MSN,. ‧ 國. 學. E-buddy, Nimbuzz, Line, Whatsapp and etc. Those IM applications either provide the service to send out message to the user’s contacts from his private contacts list (SIM card or same. ‧. service users) or integrated from the social network services. Those IM service providers will. sit. Nat. send out text message to the contacts from the user’s SIM card.. y. be the competitors to some part of ChatInn’s business since we also provide the feature to. er. io. As for the quick instant chatting feature, there will be no direct competitor on the market yet.. al. n. v i n start chatting or sending out test C message h e nto gtheccontacts h i Uthat got the same application installed on their computers or mobile devices.. All the other similar service providers require the user to sign up their service and only could. ChatInn’s instant chatting service doesn’t require the target contact to have the application installed on his computer or mobile device to be able to start chatting or short meeting. As long as the device got the browser installed, with one single click on the link, the user will be able to reach the host of the meeting in few seconds. Currently, there is no other IM application provides the same or similar service as ChatInn. The following factors are the key elements which would affect the willingness of using this service.. 12.

(17) 1. Privacy. If there is a concern about privacy protection of the IM service, it surely will impact the willingness of using this service. Personal information, contact list or the chatting record, all require proper protection to avoid the possibilities of information leaking. 2. Stability. Continuously providing stable and reliable service is another key factor of a successful IM application. The users of the instant messaging service would like to be able to reach or be reached by their friends, relatives or customers whenever they need. If the IM service is unstable and often gets issues with the server or the connection, it will surely affect the loyalty of their service users.. 學. ‧ 國. 3.. 政治大 UI design. Simple and easy to use UI design would help the users get familiar with the IM 立 application in a very short time and attract the other IM users to switch the IM service. Nowadays there are quite many applications out there, once the user experience is not as expected, the users would change to the other alternative one soon.. ‧. 4. Functionality. Besides the basic texting service, there are other features that users are. sit. y. Nat. welcome to have it on their IM application, such as group chatting, icons, emotion icons. io. transferring.. n. al. er. (according to the research, there are more than 30% of users like this feature) and file. Ch. engchi. 13. i n U. v.

(18) 5. Web Plan Summary 5.1.. Website Marketing Strategy. ChatInn is a web base instant messaging service and naturally most of the marketing resource will focus on the web marketing. When the service launches, besides the advertising campaigns at those major application stores on the mobile platforms such as Apple’s AppStore or Android’s Play, the technical news sites, forums and blogs will be the other major target which we will spend the market resource on too. For instant messaging application, oftentimes word of mouth marketing could affect a huge. 政治大 quality of the service is crucial and provides proper content that is written by professional 立 writers to those technical news sites, forums and blogs to attract potential service users. Those amount of people in a short period and become regular users. Ensure the stability and the. 學. ‧ 國. campaigns on the technical news sites, forums and blogs will promote both ChatInn’s web service and the application for mobile devices in order to maximize the advertising affections. Development Requirements. sit. y. Nat. 5.2.. ‧. with limited marketing resources.. io. er. Instant messaging is the key function of ChatInn's service and it requires about 5 months with 5 developers to complete the software development. 3 engineers will focus on the server side. n. al. Ch. i n U. v. programming and the other 2 engineers will support the server development in the first 2. engchi. months. After 2 months, when the API of the server side has been properly defined, they could start working on the application side for the mobile device for another 3 months. ChatInn's service has following key features: 1. Simple UI: Simple and user friendly UI is always important for any software which will help the new users to get familiar with. 2. Simple Signup: ChatInn only requires user name and password to sign up and there will be no personal information leaking issue. 3. Link for Instant chatting/ meeting: ChatInn provides unique URL link for each chatting/ meeting, people can easily join the meeting by clicking the URL link.. 14.

(19) 4. No chatting record saved on server side: Users could decide if they want to send the chatting record to their personal email and ChatInn will not save any data once the chatting is end. 5. Web base service: ChatInn's service could be access via any browser on any platform. 6. Sync up between server and app: The quick meeting URL links are connected to the app on mobile devices, so the user could be reached anytime and anywhere. 7. Keyword advertising: The advertising on ChatInn's web site will be keyword advertising,. 政治大. so the text or picture advertisings on the side of window will be varied according to the content of chatting.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 15. i n U. v.

(20) 6. Strategy and Implementation Summary The strategy and implementation summary for ChatInn are listed below: 1. Funding: Acquire the necessary funding for the star-up business. 2. Website and application for mobile devices development: ChatInn is a web base chatting service, so the development of the website is key factor for this business. The UI design and the quality of the website needs to make sure that all the users could get great and smooth user experience when they use this service at very first time. As for the application for the mobile device, it needs to align the design of the website and make sure the quality. 政治大. of the operation and connectivity is stable between the sever side and client side.. 立. 3. Setting up the operation and QA team: The QA team to ensure the quality and the. ‧ 國. 學. improvement of the service. The Operation team is responsible for task coordination and deal with the feedback from customers and users.. ‧. 4. Marketing: Establish the brand image and plan the marketing campaigns on the proper. n. al. er. io. 5. Sales: Generating the revenues from online advertising.. sit. y. Nat. media and platform to attract the target users.. i n U. v. 6. Business development: Find the potential partners that could align with ChatInn’s service. Ch. engchi. strategy and establish the relationship.. 7. Exit Strategy: When the user base is huge, there might be possible acquisition deal from bigger service provider.. 6.1.. SWOT Analysis. 6.1.1. Strengths 1. ChatInn's instant messaging service has unique design compare to the other competitors, it combines the ordinary IM feature and the web meeting capability together. 2. The process of signing up the service will not bother the new user any more. ChatInn's simple sign up only requires a user name and password.. 16.

(21) 3. The user could easily start a online conversation by sending the meeting link to the contact and don’t need to worry about which platform or device he or she is using. 4. ChatInn's web chatting service could be quite useful and handy for business propose and be implemented with other service easily. For example, conducting a quick meeting with the customer, posting the chatting link on any business web site as the contact information, implementing a instant 24/7 online service and etc. 5. The keyword related adverting (similar to Google's adword) for web instant messaging service is a brand new idea. The advertising on the active chatting page will depends on. 政治大 to the participants of the meeting. 立. the content of the conversation and it will try to display the ads which might be interested. ‧ 國. 學. 6.1.2. Weaknesses. 1. Product development for web and the application incurs High costs before the service start. spread globally and the expectation time is about 6 months.. Nat. y. ‧. collecting revenue. There will be no revenue being generated till the service is widely. sit. 2. As a startup web instant messaging service, the brand exposure and popularity are low. n. al. er. io. which will surely impact the revenue from online adverting. Therefore, it is important to. i n U. v. get the chance of media exposure via the marketing resource and attract more users to try. Ch. ChatInn’s server in the beginning stage.. engchi. 3. The revenues are unpredictable and depend on almost one single stream only in the early stage. To find more channels and business partners will be very important for ChatInn to generate the revenues.. 6.1.3. Opportunities 1. The potential market for instant messaging is huge and keeps growing. According to the research from Infoma Telecoms & Media, global mobile instant messaging traffic will increase from 1.6 trillion messages in 2011 to 7.7 trillion messages in 2016, doubling its share of global messaging traffic from 17.1% in 2011 to 34.6% in 2016.. 17.

(22) 2. ChatInn’s IM service is still new in the current market. The combination of the web instant messaging link and the IM application on the mobile device will provide the simple and convenient user experience to the customers. 3. ChatInn’s instant chatting link could easily embedded into any personal, business, or social network sites, which would be the other major channel for generating the revenue and get brand exposure. 4. Since ChatInn’s web instant chatting link could be embedded to almost any website which means it could penetrate the other online service as well. Once the population of ChatInn. 政治大. is big enough, this feature might attract some major web service companies interest of. 立. acquisition.. ‧ 國. 學. 6.1.4. Threats. 1. The existing competitors of IM service on the market might tend to provide similar. ‧. service soon which surely will impact the business.. y. Nat. 2. The expense of the cost for server and bandwidth might increase rapidly when the service. er. io. sit. is getting popular, so it is crucial to get enough funding and stable financial preparation. 3. The success of ChatInn depends on the user experience and quality of the service. It’s. n. al. Ch. i n U. v. easy for the users switch to other services once they got bad user experiences. To maintain. engchi. the great quality of service and keep improving the service according to the feedback from customers will be the key activities of ChatInn’s business.. 6.2.. Competitive Edge. ChatInn seeks to establish a competitive edge in its target market segment by providing an alternative way for communication with friends, families and customers. The simple and user friendly UI design of ChatInn’s web portal make it convenient for exiting users to continuous use this service and it surely will be easy for new users to start using it as well. The web instant chatting link gives the users a simple and quick way to contact or being contacted and the availability to be easily implanted into any website, provide a quick and low cost solution for the instant online service. With this new idea and technology, ChatInn will be able to. 18.

(23) differentiate its service and product to other competitors and occupy the market share at the early stage of product launch. Keep improving the technology and maintain the sustainable quality of service for users and customers will help to ensure the revenue generating for ChatInn.. 6.3.. Marketing Strategy. For a startup web IM service provider like ChatInn, it is important to the marketing strategy to develop an attractive image to the target users and customers. The goal is to attract as many users as possible in a short period of time with the feature of web instant chatting link which. 政治大. could be handy for online auction, small online business activities, and online dating service and so on. This can be done in a number of ways:. 立. 1. In-App Advertising: Games is always the most popular downloads in both iphone and. ‧ 國. 學. android platform and ChatInn will focus its marketing resources on that category. The CPM (Cost Per thousand views) is about NTD 200 on one app, so if the target is to show. ‧. the ads 1M times, it will cost about 200,000 NTD. In-App advertising is a great way for. y. Nat. promoting the new app, since the users could download the app and try it right after. er. io. sit. clicking the ads on their mobile devices.. 2. Google AdWords: Purchase Google AdWords with the keyword set as “ChatInn”, “IM”,. n. al. i n U. v. “Online Service” and “Chatting”. Monthly spending for Google AdWords is NTD 3,500. Ch. engchi. per month and plan to running it for the first 6 months.. 3. Online Advertising: Focus on the popular websites for 3C and mobile devices such like Mobil01 and Sogi with text advertising and it will cost NTD 40,000 for 5 days on each site. 4. Professional blogger marketing: Advertising on the technology news, 3C, applications or related web sites, blog and forum with the content provided by professional writer or blogger. Word of mouth advertising is quite efficient and powerful for app market, people are easily starting to try a new app if it’s been recommended by a friend or some web site. ChatInn needs to increase the number of active users as many as possible at the product. 19.

(24) launch stage since it increase the capability and profitability for the service to find a business or advertising customers for ChatInn. 5. Global advertising: When the amount of active users reaches certain level (for example, 200K) in Taiwan, the marketing strategy will start focusing on the market overseas. The marketing resources will spend on the popular local media in different region and needs to be adjusted according to the local culture as well.. 6.4.. Sales Strategy. The sales strategy for ChatInn will be adjusted to focus on different target market at different stage after product launch:. 立. 政治大. 1. At the beginning stage: In the early stage after product launch, ChatInn?. sales resource. ‧ 國. 學. will focus on business purpose market, such like 24 hrs online services for small-middle size of business.. ‧. 2. The amount of users is big enough: Once the amount of the active users is above 200k,. sit. y. Nat. ChatInn will be able to attract the customers for the advertising. The advertising for app will be regular banners style on the top of the application and as for the advertising at. io. web portal, it will be key words advertising. Advertising is one of major. n. al. er. ChatInn?. i n U. v. channels for ChatInn to generate revenue and actually, it will be the main resource to keep. Ch. engchi. the business running and expending.. 6.4.1. Sales Forecast ChatInn's sales are highly depending on the size of user base and it's expected to have very low sales income in the early stage of product launch. Due to the characteristic of IM application, the user base will grow rapidly when it reaches the proper level (e.g., 100K). Once this service gets more and more popular, it will be attractive to the customers to buy the advertising and the price will be higher.. 20.

(25) Table 3: Sales Forecast Sales Forecast Sales Advertising Contracts Business Services Total Sales. Year 1. Year 2. Year 3. $1,670,000 $169,000 $0 $1,839,000. $7,500,000 $920,000 $0 $8,420,000. $14,600,000 $1,840,000 $0 $16,440,000. Year 1 $0 $0. Year 2 $0 $0. Year 3 $0 $0. Direct Cost of Sales Subtotal Direct Cost of Sales. 立. 治政大 Chart 4: Sales Monthly. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 21. i n U. v.

(26) Chart 5: Sales by Year. 立. ‧ 國. 學. 6.5.. 政治大. Milestones. The following table represents the important milestones with the detail information which. ‧. includes the dates, budget, person in charge, and the department for ChatInn. ChatInn is a web. y. Nat. instant messaging service provider, so the most important and key activity is the development. io. sit. for the tool. ChatInn provides both web portal and app for the mobile platform and the. er. synergy between server and client side on the mobile device makes ChatInn different with. al. n. v i n C quality structure forUthe software. To ensure that, not only plan and build up a stable, firm and h engchi other competitors. In the early stage of the web service development, it is important to well. focusing on the product research and development, but also the will be a lot of resource. spending on the QA work to make sure the user experience is well satisfied. ChatInn’s service provides 3 ways for instant messaging, web portal, app on the mobile device and between web and app. Web portal is the core function of those 3 methods, so it needs to be developed first, then the application for mobile device could get started after.. 22.

(27) Table 4: Milestones Start Date 7/1/2012 8/1/2012. End Date 8/1/2012 11/30/2012. Budget $30,000 $320,000. 10/1/2012. 11/30/2012. $160,000. Willy. App team. 12/1/2012. 12/31/2012. $55,000. Acton. Sever team. 12/1/2012. 12/31/2012. $35,000. Jimmy. QA team. 治 $30,000 政 1/31/2013 大. Ellie. Operation. Enzo. Marketing. 1/1/2013. Manager Department Ellie Operation Acton Sever team. 1/31/2013. $85,000. 2/1/2013. 3/1/2013. $85,000. Ellie. Operation. $0. Enzo. Marketing. ‧ 國. 立 1/1/2013. 學. 2/1/2013. ‧. io. sit. y. Nat. $800,000 Chart 6: Milestones. n. al. er. Milestones Milestone Web Portal Startup Web Portal Programming Mobile App Development Server & Connection Setup Service Trial period ChatInn Beta Launch First Promotion Phase Second Promotion Phase ChatInn Official Launch Totals. Ch. engchi. 23. i n U. v.

(28) 7. Management Summary There will be 5 members in the senior management team of ChatInn, and each member needs to achieve the goal of each department according to the milestones of the company. ChatInn will be composed of the following departments, Marketing & Sales, Server, App, QA and operation team. Each department will have one manager in charge and the possible employees in the future which depends on the business. The detail for each department is as below: Marketing & Sales Department: Manager Enzo Yang, CEO / Funder . In charge of production promotion & marketing.. . Approaching the potential customers for advertising and instant online service.. . Sales Revenue forecasting.. 立. 政治大. ‧ 國. 學. Server development Department: Manager Acton Chow, Acting CTO In charging of server software development.. . Service maintenance. . Product upgrade planning and schedule. . Product coordination for server and app.. ‧. . sit. y. Nat. er. io. App Development Department: Manager Willy Huang, Acting SW Director . In charging of app development on both Android and iOS platform.. . App product upgrade and maintenance.. n. al. Ch. engchi. i n U. v. QA Department: Manager Jimmy Yang . Ensure the quality of service on server and app side.. . Supporting server and app debugging.. . Taking feedback from customers.. Operation Department: Manager Ellie Hsu, Operation Director / Co-Funder . In charging of cost and budget control.. . Establish company strategy, goal and targets.. . Approach to the companies for possible partnership.. 24.

(29) 7.1.. Personnel Plan. ChatInn is a web service provider, therefore, in the stage before and 6 months after the official launch, most of the personnel resource will spend on the development for server software and the application After ChatInn’s official launch, the personnel plan will be adjusted according to the business operation, the amount of registered users, and the possible new features of the service. The manager of each department will responsible for possible hiring and recruiting for future expansion. Table 5: Personnel Personnel Plan. $5,400,000. $7,040,000. n. al. er. io. sit. y. $3,480,000. Nat. Total Payroll. Year 3 $1,190,000 $2,180,000 $1,680,000 $930,000 $1,060,000 16. ‧. $960,000 $840,000 $480,000 $600,000 8. ‧ 國. 立. Year 2 $1,080,000 $1,320,000 $1,200,000 $840,000 $960,000 13. 學. Sales Manager Server team App team QA team Operation Manager / Accountant Total People. 1 政治 Year 大 $600,000. Ch. engchi. 25. i n U. v.

(30) 8. Financial Plan 8.1.. Start-up Funding. The start up cost of ChatInn will include the company registration fee, office rent, office supplies and the legal consultant fee. Two investors will each invest NTD $4,000,000 totaling NTD $8,000,000 and there is no loan needed at the start-up stage. However, if there is the need for further cash investment, the 2 original investors will need to find other investors or apply the loan from the commercial bank to provide the necessary funding. The stock ownership will be adjusted according to the ratio of the investment.. 政治大. Table 6: Start-up Funding. ‧ 國. 立. 學. Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required. ‧. Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets. n. er. io. sit. y. Nat. al. Ch. Liabilities and Capital. engchi. Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Owner A Owner B Additional Investment Requirement Total Planned Investment. 26. i n U. $344,500 $7,655,500 $8,000,000. $0 $7,655,500 $0 $7,655,500 $7,655,500. v. $0 $0 $0 $0 $0. $4,000,000 $4,000,000 $0 $8,000,000.

(31) 8.2.. Loss at Start-up (Start-up Expenses) Total Capital. ($344,500) $7,655,500. Total Capital and Liabilities. $7,655,500. Total Funding. $8,000,000. Break-even Analysis. The average monthly cost is NTD $406,852 and that will make the break-even occurs in the. 政治大 Table 7: Break-even Analysis 立 Break-even Analysis. middle of the second operation year.. ‧ 國. 學. Monthly Revenue Break-even. ‧. Assumptions: Average Percent Variable Cost. y. Nat. n. er. io. Chart: Break-even Analysis. Ch. engchi. 27. 10%. $366,167. sit. Estimated Monthly Fixed Cost. al. $406,852. i n U. v.

(32) 8.3.. Projected Profit and Loss. ChatInn’s projected profit and loss is summarized below and the detailed items for sales and expenses are listed in the following table. 1. ChatInn is a web instant messaging service provider and the revenue will only comes from the advertising and the business service contracts since the IM service is free for individual user. 2. There will be direct cost of sales since the advertising service will not cost any direct material, only labor cost and it’s been covered in the personnel cost.. 學. ‧ 國. 3.. 治政 The sales will be low in the first year since the business 大depends on the size of user base 立proper level in about 6 ~ 12 months. which is expected to reach. 4. Marketing/Promotion will maintain similar level and will be adjusted the target media according to the user base.. ‧. 5. Personnel will keep increasing according to the size of service user base. In order to serve. y. Nat. n. al. er. io. connection.. sit. more service users, ChatInn needs to expend the scale of servers and bandwidth of. i n U. v. 6. The increasing level of rent and utilities will correspond to the personnel.. Ch. engchi. Table 8: Profit and Loss Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales. Year 1 $1,839,000 $0 $207,000 $207,000. Year 2 $8,420,000 $0 $450,000 $450,000. Year 3 $16,440,000 $0 $550,000 $550,000. Gross Margin Gross Margin %. $1,632,000 88.74%. $7,970,000 94.66%. $15,890,000 96.65%. Expenses Payroll. $3,480,000. $5,400,000. $7,040,000. 28.

(33) Marketing/Promotion Depreciation Rent Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred. $460,000 $0 $504,000 $72,000 $0 $0 $36,000. $520,000 $0 $624,000 $92,000 $0 $0 $48,000. $4,394,000. $6,472,000. $8,324,000. ($2,762,000) ($2,762,000) $0 $0. $1,498,000 $1,498,000 $0 $449,400. $7,566,000 $7,566,000 $0 $2,269,800. ($2,762,000) -150.19%. $1,048,600 12.45%. $5,296,200 32.22%. 政治大. 學. Nat. io. sit. y. ‧. Chart 7: Profit Monthly. n. al. er. Net Profit Net Profit/Sales. ‧ 國. 立. $410,000 $0 $432,000 $48,000 $0 $0 $24,000. Ch. engchi. 29. i n U. v.

(34) Chart 8: Profit Yearly. 立. 政治大. Nat. n. al. er. io. sit. y. ‧. ‧ 國. 學 Chart 9: Gross Margin Monthly. Ch. engchi. 30. i n U. v.

(35) Chart 10: Gross Margin Yearly. 立. ‧ 國. 學. 8.4.. 政治大. Projected Cash Flow. ‧. ChatInn’s projected cash flow is presented in the table and chart below.. y. Nat. sit. Cash Flow: ChatInn is a pure web instant messaging and meeting service provider and the. er. io. major income will depends on the size of user base. The bigger size of the user base of. al. v i n be an expected negative cash flow Cinhthe first year, dueUto the development of software and e g c(100K). h i Start from 2nd year, the user base is the user base takes time to reach the targetnlevel n. ChatInn surely will attract the customers to buy more advertising with higher price. There will. expected to be increase rapidly, and the positive cash flow will jump as well. Cash Balance: As shown in the chart, ChatInn will have a negative growth till the end of the first year.. 31.

(36) Table 9: Cash Flow Pro Forma Cash Flow Year 1. Year 2. Year 3. Cash from Operations Cash Sales Subtotal Cash from Operations. $1,839,000 $1,839,000. $8,420,000 $8,420,000. $16,440,000 $16,440,000. Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received. $0 $0 $0 $0 $0 $0 $0 $1,839,000. $0 $0 $0 $0 $0 $0 $0 $8,420,000. $0 $0 $0 $0 $0 $0 $0 $16,440,000. Cash Received. ‧. Year 1. Year 3. $5,400,000 $1,914,734 $7,314,734. $7,040,000 $3,928,534 $10,968,534. n. Ch. Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent. $91,950 $0. $421,000 $0. $822,000 $0. $0 $0. $0 $0. $0 $0. $0 $0 $0 $4,587,583. $0 $75,000 $0 $7,810,734. $0 $45,000 $0 $11,835,534. ($2,748,583) $4,906,917. $609,266 $5,516,183. $4,604,466 $10,120,649. engchi. 32. sit. $3,480,000 $1,015,633 $4,495,633. er. io. al. Year 2. y. Nat. Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations. Net Cash Flow Cash Balance. 學. Expenditures. ‧ 國. 立. 政治大. i n U. v.

(37) Chart 11: Cash. 立. ‧ 國. 學. 8.5.. 政治大. Projected Balance Sheet. ‧. Table 10: Balance Sheet. n. al. Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets. y. Year 2. Year 3. $4,906,917. $5,516,183 $0 $5,516,183. $10,120,649 $0 $10,120,649. $0 $0 $0 $4,906,917. $75,000 $0 $75,000 $5,591,183. $120,000 $0 $120,000 $10,240,649. Year 1. Year 2. Year 3. $105,367 $0. $162,033 $0. $337,299 $0. sit. io Current Assets Cash Other Current Assets Total Current Assets. Year 1. er. Assets. Nat. Pro Forma Balance Sheet. i $4,906,917n Ch e n g c h i U$0. Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing. 33. v.

(38) Other Current Liabilities Subtotal Current Liabilities. ($91,950) $13,417. ($512,950) ($350,917). ($1,334,950) ($997,651). $0 $13,417. $0 ($350,917). $0 ($997,651). $8,000,000 ($344,500) ($2,762,000) $4,893,500 $4,906,917. $8,000,000 ($3,106,500) $1,048,600 $5,942,100 $5,591,183. $8,000,000 ($2,057,900) $5,296,200 $11,238,300 $10,240,649. $5,942,100. $11,238,300. Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth. Business Ratios. Table 11: Ratios. 0.00% 98.66% 1.34% 100.00%. 0.00% 98.83% 1.17% 100.00%. 100.00% 100.00% 0.00% 100.00%. Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and. 357.86%. 0.00% 100.00% 0.00% 100.00% 0.27% 0.00% 0.27% 99.73%. -6.28% 0.00% -6.28% 106.28%. -9.74% 0.00% -9.74% 109.74%. 0.00% 0.00% 0.00% 100.00%. 100.00% 88.74% 238.93%. 100.00% 94.66% 82.20%. 100.00% 96.65% 64.44%. 100.00% 0.00% 0.00%. 22.29% -150.19%. 5.46% 17.79%. 3.16% 46.02%. 0.00% 0.00%. y. n.a.. Year 3. sit. al. n. Current Liabilities Long-term Liabilities Total Liabilities Net Worth. Year 2. Ch. engchi. 34. er. io. Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets. Year 1. ‧. 95.25%. Industry Profile 0.00%. Nat. Sales Growth. 學. Ratio Analysis. 立. ‧ 國. 8.6.. $4,893,500 政治大. i n U. v.

(39) Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets. 0.00 0.00 0.00% 0.00% 0.00%. Year 1 -150.19% -56.44%. Year 2 12.45% 17.65%. Year 3 32.22% 47.13%. n.a n.a. 10.64 27 0.37. 12.17 25 1.51. 12.17 22 1.61. n.a n.a n.a. 0.00 1.00. -0.06 0.00. -0.09 0.00. n.a n.a. $4,893,500 0.00. $5,867,100 0.00. v. $11,118,300 0.00. n.a n.a. 0.66 -6% 0.00 1.42 0.00. 0.62 -10% 0.00 1.46 0.00. n.a n.a n.a n.a n.a. 政治大. n. al. Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout. Ch. engchi 2.67 0% 365.73 0.38 0.00. 35. er. io. Liquidity Ratios Net Working Capital Interest Coverage. sit. Nat. Debt Ratios Debt to Net Worth Current Liab. to Liab.. ‧. ‧ 國. 立. -10.14 -10.14 -9.74% 67.32% 73.88%. 學. Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover. -15.72 -15.72 -6.28% 25.21% 26.79%. y. Additional Ratios Net Profit Margin Return on Equity. 365.73 365.73 0.27% -56.44% -56.29%. i n U.

(40) Appendix Table 12: Sales Forecast Sales Forecast Month 1. Month 2. Month 3. Month 4. Month 5. Sales $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. Month 1. Month 2. Month 3. $0. $0. $0. a l Month 5 Month 6 Month v7 i n Ch U i e $0 $0 n g c h $0 $0. $0. $0. $0. $0. Month 10 Month 11 Month 12. $120,000. $180,000. $250,000. $400,000. $520,000. $0. $0. $100,000. $100,000. $0. $10,000. $10,000. $10,000. $12,000. $12,000. $15,000. $30,000. $70,000. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $10,000. $110,000. $110,000. $132,000. $192,000. $265,000. $430,000. $590,000. y. sit er. n. Subtotal Direct Cost of Sales. Month 9. ‧. ‧ 國. $0. io. Direct Cost of Sales. Month 8. 政治大. $0. Nat. Total Sales. 立. Month 7. 學. Advertising Contracts Business Services. Month 6. Month 4. $0. $0. 36. $0. Month 8. Month 9 Month 10 Month 11 Month 12. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0.

(41) Table 13: Personnel Personnel Plan Month 1. Month 2. Month 3. Month 4. Month 5. Month 6. Month 7. Month 8. Month 9 Month 10. Sales Manager. $50,000. $50,000. $50,000. $50,000. $50,000. $50,000. $50,000. $50,000. $50,000. Server team. $80,000. $80,000. $80,000. $80,000. $80,000. 治 $80,000 政 $80,000 大. $80,000. App team. $70,000. $70,000. $70,000. $70,000. QA team. $40,000. $40,000. $40,000. $40,000. Operation Manager / Accountant Total People. $50,000. $50,000. $50,000. $50,000. 8. 8. 8. n. Total Payroll. $290,000 $290,000 $290,000 $290,000. $50,000. $50,000. $80,000. $80,000. $80,000. $80,000. $70,000. $70,000. $70,000. $70,000. $70,000. $70,000. $40,000. $40,000. $40,000. $40,000. $40,000. $40,000. $40,000. $40,000. $50,000. $50,000. $50,000. $50,000. $50,000. $50,000. $50,000. $50,000. 8. 8. 8. 8. 8. 8. 8. y. sit. 8. er. io. al. $50,000. ‧. Nat. 8. Month 12. $70,000. 學. ‧ 國. 立 $70,000. Month 11. iv n C $290,000 $290,000 h e n$290,000 gchi U. 37. $290,000 $290,000 $290,000 $290,000 $290,000.

(42) Table 14: Profit and Loss Pro Forma Profit and Loss Month 1. Month 2. Month 3. Month 4. Month 5. Month 6. Month 7. Month 8. Month 9. Month 10. Sales. $0. $0. $0. $0. $10,000. $110,000. $110,000. $132,000. $192,000. $265,000. $430,000. $590,000. Direct Cost of Sales Other Costs of Sales Total Cost of Sales. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $20,000. $0 $0 治政大 $20,000 $20,000 $20,000. $20,000. $22,000. $25,000. $28,000. $32,000. $0. $0. $0. $20,000. $20,000. $20,000. $20,000. $20,000. $22,000. $25,000. $28,000. $32,000. Gross Margin. $0. $0. $0. ($20,000). ($10,000). $90,000. $90,000. $112,000. $170,000. $240,000. $402,000. $558,000. 0.00%. 0.00%. 0.00%. 0.00%. -100.00%. 81.82%. 81.82%. 84.85%. 88.54%. 90.57%. 93.49%. 94.58%. $290,000. $290,000. $290,000. $290,000. $290,000. $290,000. Marketing/Promo tion Depreciation Rent. er. sit. y. ‧ 國. al. n. Payroll. ‧. io. Expenses. 學. Nat. Gross Margin %. 立. $0. Month 11 Month 12. Ch. eng $290,000 chi. i n U. v. $290,000. $290,000. $290,000. $290,000. $290,000. $0. $0. $0. $0. $100,000. $100,000. $35,000. $35,000. $35,000. $35,000. $35,000. $35,000. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $36,000. $36,000. $36,000. $36,000. $36,000. $36,000. $36,000. $36,000. $36,000. $36,000. $36,000. $36,000. 38.

(43) $4,000. $4,000. $4,000. $4,000. $4,000. $4,000. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $2,000. $2,000. $2,000. $2,000. $2,000. $2,000. $2,000. $2,000. $2,000. $2,000. $2,000. $2,000. $332,000. $332,000. $332,000. $332,000. $432,000. 治 $367,000 政 $432,000 大. $367,000. $367,000. $367,000. $367,000. $367,000. ($255,000 ). ($197,000 ). ($127,000 ). $35,000. $191,000. ($197,000 ) $0. ($127,000 ) $0. $35,000. $191,000. $0. $0. $0. $0. $0. $0. $0. ($255,000 ) -193.18%. ($197,000 ) -102.60%. ($127,000 ) -47.92%. $35,000. $191,000. 8.14%. 32.37%. 立 ($332,000 ). ($332,000 ). ($332,000 ). ($352,000 ). ($442,000 ). ($342,000 ). ($277,000 ). ($332,000 ) $0. ($332,000 ) $0. ($332,000 ) $0. ($352,000 ) $0. ($442,000 ) $0. ($342,000 ) $0. ($277,000 ) $0. $0. $0. $0. $0. $0. $0. $0. io. n. al. Net Profit Net Profit/Sales. ($332,000 ) 0.00%. ($332,000 ) 0.00%. ($332,000 ) 0.00%. ($352,000 ) 0.00%. ‧. Taxes Incurred. $4,000. Nat. Interest Expense. $4,000. 學. Profit Before Interest and Taxes EBITDA. $4,000. ($255,000 ) $0. y. Total Operating Expenses. $4,000. sit. Other. $4,000. er. Insurance. $4,000. ‧ 國. Utilities. iv n C h e n($342,000 ($442,000 ($277,000 gchi U. ) 4420.00%. ) -310.91%. 39. ) -251.82%.

(44) Table 15: Cash Flow Pro Forma Cash Flow Month 1. Month 2. Month 3. Month 4. Month 5. Month 6. Month 7. Month 8. Month 9. Month 10. Month 11. Month 12. Cash Received. Cash from Operations $0. Subtotal Cash from Operations. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $110,000. $132,000. $192,000. $265,000. $430,000. $590,000. $0. $10,000. $110,000. $110,000. $132,000. $192,000. $265,000. $430,000. $590,000. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. n. al. C$0 h. y. sit. io $0. $0. $0. er. ‧ 國. 0.00%. $110,000. ‧. $0. 學. $0. Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received. $10,000. Nat. 立. Cash Sales. 政治大. $0 $0 n engchi U. iv. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $10,000. $110,000. $110,000. $132,000. $192,000. $265,000. $430,000. $590,000. 40.

(45) Expenditures. Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations. Month 1. Month 2. Month 3. Month 4. Month 5. Month 6. Month 7. Month 8. Month 9. Month 10. Month 11. Month 12. $290,000. $290,000. $290,000. $290,000. $290,000. $290,000. $290,000. $290,000. $290,000. $290,000. $290,000. $290,000. $1,400. $42,000. $42,000. $42,667. $65,333. $162,000. $159,833. $97,000. $97,067. $99,100. $102,100. $105,133. $291,400. $332,000. $332,000. $332,667. $355,333. $452,000. $449,833. $387,000. $387,067. $389,100. $392,100. $395,133. 立. $500. $5,500. $5,500. 學. $6,600. $9,600. $13,250. $21,500. $29,500. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. io. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $291,400. $332,000. $332,000. $332,667. $355,833. $457,500. $455,333. $393,600. $396,667. $402,350. $413,600. $424,633. Net Cash Flow. ($291,400). ($332,000). ($332,000). ($332,667). ($345,833). ($347,500). ($345,333). ($261,600). ($204,667). ($137,350). $16,400. $165,367. Cash Balance. $7,364,100. $7,032,100. $6,700,100. $6,367,433. $6,021,600. $5,674,100. $5,328,767. $5,067,167. $4,862,500. $4,725,150. $4,741,550. $4,906,917. $0. $0. $0. $0. al. C$0 h. $0 eng c h i $0U. 41. y. $0. sit. $0. er. $0. n. Subtotal Cash Spent. 5%. ‧ 國. $0. Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends. ‧. $0. Nat. Additional Cash Spent. 政治大. v ni.

(46) Table 16: Balance Sheet Pro Forma Balance Sheet Month 1. Month 3. Month 4. Month 9. Month 10. Month 11. Month 12. 立. 政治大. $6,700,100. $6,367,433. $6,021,600. $5,674,100. $5,328,767. $5,067,167. $4,862,500. $4,725,150. $4,741,550. $4,906,917. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $7,655,500. $7,364,100. $7,032,100. $6,700,100. $6,367,433. $6,021,600. $5,674,100. $5,328,767. $5,067,167. $4,862,500. $4,725,150. $4,741,550. $4,906,917. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $7,655,500. $7,364,100. $7,032,100. $6,700,100. $5,067,167. $4,862,500. $4,725,150. $4,741,550. $4,906,917. Month 1. Month 2. Month 3. Month 8. Month 9. Month 10. Month 11. Month 12. y. $0. sit. ‧ 國. $7,032,100. ‧. $7,364,100. io. $0. $0 $0 a l$0 v $0 i n$5,328,767 $6,367,433C $6,021,600 U h e n g c$5,674,100 i h. n. Liabilities and Capital. Month 8. $7,655,500. Nat. Long-term Assets Long-term Assets Accumulated Depreciation Total Longterm Assets Total Assets. Month 7. 學. Other Current Assets Total Current Assets. Month 6. Starting Balances. Current Assets Cash. Month 5. er. Assets. Month 2. Month 4. Month 5. Current Liabilities. 42. Month 6. Month 7.

(47) Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities. $0. $40,600. $40,600. $40,600. $59,933. $156,600. $156,600. $93,767. $93,767. $95,700. $98,600. $101,500. $105,367. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. $0. ($500). ($6,000). ($11,500). ($18,100). ($27,700). ($40,950). ($62,450). ($91,950). $0. $40,600. $40,600. $40,600. $59,933. $156,100. $150,600. $82,267. $75,667. $68,000. $57,650. $39,050. $13,417. Long-term Liabilities Total Liabilities. $0. $0. $0. $0. $0. $40,600. $40,600. $40,600. Paid-in Capital. $8,000,000. $8,000,000. $8,000,000. Retained Earnings Earnings. ($344,500). ($344,500). $0. Total Capital. $0. $0. $0. $0. $0. $0. $59,933. $156,100. $150,600. $82,267. $75,667. $68,000. $57,650. $39,050. $13,417. $8,000,000. $8,000,000. $8,000,000. $8,000,000. $8,000,000. $8,000,000. $8,000,000. $8,000,000. $8,000,000. $8,000,000. ($344,500). ($344,500). ($344,500). ($344,500). ($344,500). ($344,500). ($344,500). ($344,500). ($344,500). ($344,500). ($344,500). ($332,000). ($664,000). ($996,000). $7,655,500. $7,323,500. $6,991,500. $6,659,500. ($1,790,000 ) $5,865,500. ($2,132,000 ) $5,523,500. ($2,409,000 ) $5,246,500. ($2,664,000 ) $4,991,500. ($2,861,000 ) $4,794,500. ($2,988,000 ) $4,667,500. ($2,953,000 ) $4,702,500. ($2,762,000 ) $4,893,500. Total Liabilities and Capital. $7,655,500. $7,364,100. $7,032,100. $6,700,100. $6,021,600. $5,674,100. $5,328,767. $5,067,167. $4,862,500. $4,725,150. $4,741,550. $4,906,917. Net Worth. $7,655,500. $4,991,500. $4,794,500. $4,667,500. $4,702,500. $4,893,500. al. n. $6,367,433. Ch. $6,307,500. y. sit. io. $6,659,500. ($1,348,000 ) $6,307,500. ‧. Nat. $6,991,500. ‧ 國. $0. $7,323,500. $0. 學. $0. er. 立. 政治大. n engchi U. $5,865,500. 43. $5,523,500. iv. $5,246,500.

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