BUSINESS PLAN

SHERIDAN COLLEGE
I am not really sure what this is. The hodgepodge of ideas that do not seem to relate to the other inputs. It is listed as the business plan but there are huge holes in it. If there are few financials coming from the principles, how many competitors have you analyzed to see what kind of margins, and what kind of startup profit curves exist in the industry?

IRIS WEB DESIGNS INC.

JOJI JOSEPH
29th March, 2013

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EXECUTIVE SUMMARY

too soon for an executive summary

Iris Web Designs Inc. is an e-commerce start-up company positioning itself to become the market leader in offering online features of websites, blogs and logo design and in offering consumers a uniform and trouble-free way to establish their business online. The company offers a business-to-business solution to online merchants of e-commerce products. The company utilizes a consolidation approach in handling all design processes that allows online merchants to instantly save bad sales, restore customer satisfaction and stimulate repeat sales, while offering consumers a convenient, centralized online location to reach broader aspect of consumers they target. By creating a new service category and utilizing the first-mover advantage, it positions itself for rapid growth and gains a strong opportunity to raise entry barriers for possible competition. Iris web designs just combines the site building products into one convenient interface. They create a perfect web presence without having to juggle through different log-ins, difficult navigation, and changing templates. They provide a user dashboard, where the client can create a seamless look-and-feel across your website, blog, and store. They provide with a readership and internet traffic services, which enables business looking for the services to easily locate the business and the facilities provided by it. If a website is intended to make money, they provide research affiliate programs, ad programs, and search engine optimization tools. The difference between Iris Web Designs and other business-oriented e-commerce websites is that they are focused only on small to medium scale business level as they tend to be not so aware of the potential power occupied by e-commerce and also they tend to opt for cost saving approach to broaden their business to further levels, which is the UVP of Iris Web Designs i.e. they provide their services at comparative minimal rates than their competitors. It is a new establishment and has the potential of gradually growing up to higher level of business scales, for which startup requirements are discussed below and further financials have been forecasted.

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If this were an actual executive summary, you must deliver some results of your analysis and you certainly must present your recommendations.

DOCUMENT STATUS

This document and its attachments/appendices represent the documented international business plan for: IRIS WEB DESIGNS INC. The purpose of this document is to enable management of the company to determine the next steps required to fulfill their objective of expansion to Canadian market. It focuses on decisions required and implementation if a decision is made to proceed. Clearly state if there are key steps remaining before a decision can be made.

Version History: VERSION

1.0 1.1 2.0

DATE
17th March 2013 27th March 2013 29th March 2013

NAME
Joji Joseph Joji Joseph Joji Joseph

DESCRIPTION
Initial Document Creation Changes made after market analysis Final Documentation

The business plan did not exist on 17 March

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Table of Contents
Executive Summary ______________________________________________________________________ Error! Bookmark not defined.1 Document Version _________________________________________________________________________ 2 Version History ____________________________________________________________________________ 2 Table of Contents __________________________________________________________________________ 3 Financial Analysis _________________________________________________________________________ 4 Startups Required _________________________________________________________________________ 5 Financial Forecast _________________________________________________________________________ 6 Personnel Plan _____________________________________________________________________________ 7 Profit Forecast _____________________________________________________________________________ 8 Conclusions and Recommendations _____________________________________________________ 10 Business Plan sign-off _____________________________________________________________________ 11 References _________________________________________________________________________________ 12

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FINANCIAL ANALYSIS

Table 1: Year 1 sales and profit

It focuses on providing better services at a price lower than the existing service costs of other providers. For example it provides website design at a price of $299 whereas, global graphics web design (Toronto) provides it for $399. The businesses are looking to expand and are ready to pay for the services. They do not look for any negotiation opportunities. Iris Web Designs is not well established as some of its competitors but the services provided by them are at a minimal price range. All the website building tools are outsourced from India, where the employment wages are at a much low level
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when compared to Canada. They are optimum for businesses looking to establish a website at a minimal price range, IWD is a good option in the GTA area. Year 1 sales indicates a sale of $36,500 and a gross profit of $3,500. The current technical supplies are less and the number of employees needed for a big contract is not sufficient.

Startups Required:

To expand itself, Iris We Designs needs to expand its employee number in India and its Technical specificities. Its current number of servers has to be increased by 3 more in order to meet future internet traffic expectations. Most entry level servers, like Liquid webs Webmaster Series, start around $149 / mo. and can go up to $400 depending on how many extras you add. Enterprise level servers start in the $400 / mo. range, but to really take advantage of their multiple processors and RAID configurations, youre going to need extra RAM and you can expect entry level prices to be around $600 / mo. (www.serverschool.com)1 I havent seen this requirement anywhere so Im not sure whether the costs fit into the plan or not.

Comment [pa1]: What does this word mean and what technical skills is a need to develop?

Table 2: Startups Required

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Is there any description of what this is?

Financial Forecast:
It is expected that the website will be used widely over time. With the increased number of subscribers and transactions, the revenue is built. The revenue is based on three main things. Supplier: Some percentage of the transaction is charged from suppliers once the order is placed in the Canada. But in India, it is charged less to the supplier since service in India is cheaper when compared. Compared to what? Logistics: 6% is charged from the logistics providers for providing business with such a large clientele. What kind of logistics provider are you talking about here? Advertising: Advertising on the website by the suppliers is based on the points system. Each webpage from the website is given a minimum number of points, from where bidding by the suppliers start, then whoever bids higher takes the advertising space on the specific webpage. Following table shows the estimated number of sales in year 1.
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Comment [pa3]: what website, what suppliers. I really have no idea what you're talking about suppliers to Iris, or customers of Iris. Comment [pa2]: Lord clear what you are costing. Is there a business model or in order to cash diagram somewhere

Table 3: Monthly Sales Forecast of Year 1

Following table shows the forecasted sales of three years

Table 4: 3 Year Sales Forecast

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Personnel Plan:
Iris Web Designs, in addition to its current employees, will recruit 5 person team in India. Average salary of a web developing engineer s $10,000 in India. 2 Operations Manager Marketing Manager 3 Website Engineers

Table 5: 3 Year Payroll Forecast

typically needs and resources ramp up over time. Why would they hire all staff in year one?

Profit Forecast:
Iris Web Designs Inc. is currently looking for early-stage funding and strategic partnerships to execute the program. The company plans to raise up to $15,000 in two rounds of sales during Year 1, along with securing access to additional cash for the cash flow purposes,
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Comment [pa4]: Sales of what? Shares? Bonds?

before making its program fully available to online consumers. Based on conservative financial projections, the company will become profitable from early Year 2. The pricing strategy generates solid net income and nearly eliminates the downside risks. By Year 3end, $28,000 of profit is expected to be raised, all internally generated. The company can go public as early as Year 2. Should an IPO be undertaken at Year 3-end, the financial standing of the company should support enough market capitalization.
Putting an IPO strategy under profit forecast does not make much sense. If one of their key strategies is to go public, this requires separate analysis and certainly a separate section.

Table 6: Year 1 Profit Forecast

Table 7: 3 Year Profit Forecast

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The figure and table above show the variations in the net income for Iris Web Designs Inc., for over three years. It can be observed that breakeven point occurs almost in the last quarter of first year 2013-14. First year incurs a profit of $15,000 followed by a substantial increase in profits. Although the revenue is high for years 2015 and 2016, the net income is less because of the investments made by the company for future development.

Comment [pa5]: Based on what?

Note Pro forma income statement needs to be worked on and thus also break even analysis, because of lack of information on of the companys financial history.

Conclusions and Recommendations

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The company has no immediate plans for acquisitions. Neither has it a preferred list of potential acquirers. Although all reasonable offers will be considered, the company should plan to utilize much more of the first-mover advantage to establish itself as the market leader and to remain a stand-along corporation for the foreseeable future. An exit strategy is required for the primary investors, who will be the initial public offering. According to the financial statements, however, the company is capable of supporting growth internally, as well as generating sizable cash flows. It may be prudent to go public when the company will have substantial revenues that should support enough market valuation. The funds raised during the IPO will be used to further strengthen the market leader position, raise entry barriers through continuing brand-building programs, establish a more bureaucratic corporate structure, fund expansion initiatives, and to retire any financial obligations created during the first two rounds of financing.

Comment [pa6]: how is it a first mover ? There are lots of web development companies, and many of them outsource to subcontractors in India and other places.

Comment [pa7]: How will they become a market leader?

International Business Plan Sign-off

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Company: Iris Web Designs Inc.

Company Representative: Mr. Gary Grewal

Signature:

Date:

References:

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1. http://www.serverschool.com/dedicated-servers/how-much-does-a-dedicatedserver-cost/ 2. https://www.staff.com/blog/web-developer-salaries-infographic/

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