Business Plan by Joji Joseph_commentsph

7/29/2019 Business Plan by Joji Joseph_commentsph

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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?

BUSINESS PLAN

SHERIDAN COLLEGE

IRIS WEB DESIGNS INC.

JOJI JOSEPH

29th March, 2013


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_________________________________________________________________________________________


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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 strongopportunity 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 DATE NAME DESCRIPTION

1.0 17th March2013

Joji Joseph Initial Document Creation

1.1 27th March2013

Joji Joseph Changes made after marketanalysis

2.0 29th March2013

Joji Joseph 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 negotiationopportunities. 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 salesindicates 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.

Table 2: Startups Required

Comment [pa1]: What does this wor

what technical skills is a need to develop


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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 ofsubscribers 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.

Comment [pa2]: Lord clear what you

costing. Is there a business model or in o

diagram somewhere

Comment [pa3]: what website, what

really have no idea what you're talking asuppliers to Iris, or customers of Iris.


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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 EngineersTable 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,

Comment [pa4]: Sales of what? Shar


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before making its program fully available to online consumers. Based on conservative

financial projections, the company will become profitable from early Year 2. The pricingstrategy generates solid net income and nearly eliminates the downside risks. By Year 3-

end, $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.

Note Pro forma income statement needs to be worked on and thus also break even

analysis, because of lack ofinformation on of the companys financial history.

Conclusions and Recommendations

Comment [pa5]: Based on what?


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The company has no immediate plans for acquisitions. Neither has it a preferred listof 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 publicoffering. 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 throughcontinuing 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.

International Business Plan Sign-off

Comment [pa6]: how is it a first movare lots of web development companies,

of them outsource to subcontractors in I

other places.

Comment [pa7]: How will they becommarket leader?


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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-dedicated-server-cost/

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

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Business Plan by Joji Joseph_commentsph