Business Plan Competition December 6-7, Prison Entrepreneurship Program P.O. Box Houston, TX (832)

Transcription

1 Business Plan Competition December 6-7, 2018 Prison Entrepreneurship Program P.O. Box Houston, TX (832)

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3 Nonlinear Productions Dynamic content light speed Business Plan December 2018 Owner & Founder

4 TABLE OF CONTENTS EXECUTIVE SUMMARY...1 PERSONAL FIT...2 OPPORTUNITY...2 SOLUTION...3 CUSTOMERS...3 DIFFERENTIATORS...4 EXTRAS...6 MARKETING...6 FINANCIAL PROJECTIONS... ATTACHED

5 EXECUTIVE SUMMARY Opportunity Purpose Solution The purpose of this material is to enhance my client s ability to their target audience via search engine optimization, to establish thought leadership, and to retain more clients. Many business professionals do not have time and/or the specialized skills to create their own original, expressive, marketable content. Nonlinear Productions will provide dynamic writing services for business professionals, to use as their own, to attract clients. Customers Differentiators Extras Our target is: male, a web developer, a business consultant, or business coach who lack the necessary time and/or skills to produce their own material. NLP is unique because instead of just offering writing services, we will focus on each individual client as if we have serviced them for years. NLP has a standing relationship with several business consultants, business coaches, and a web developer who will use NLP for their creative content needs. Marketing Start-up Costs Financials & Extras NLP will aggressively advertise its services through third party freelancing websites, at business networking events, social media, and through its clients. Owner Inv. - (Cash) $ 15,000 Owner Investment (Equipment) $ - Vehicle/equipment Loan $ 20,000 Unsecured Debt/Loan $ 5,000 Equity Investment $ - Total start up costs: $ 40,000 Sales: $ 180, % COGS - 0% Gross profit 180, % Overhead 37,200 21% Pretax income 142,700 79% Tax expense 35,600 20% Owner withdrawals 44,000 24% Net income $ 63,000 35% Personal Fit is the founder of Nonlinear Productions. He is a highly skilled writer due to his great passion for his work, and a personally vested interest in his future as a writer. He brings over twenty years experience to the table, and has specifically been perfecting his craft through his life experiences. He has a deep sense of cause, and responsibility to his clients. He takes great pride in his work using long patience and application.

6 PERSONAL FIT Clinton is the founder, and owner of Nonlinear Productions. He oversees all aspects of the firm. He is a highly skilled writer due to his great passion for his work, and a personally vested interest in his future as a writer. He brings over twenty years of writing expertise, and has specifically been perfecting his craft through his life experiences. Clinton is proficient in Microsoft Word, Excel, and PowerPoint. He is looking forward to completing the Prison Entrepreneurship Program in December OPPORTUNITY Explanation: Many business professionals lack the time, skill, or resources to write their own original content. Can I solve the problem given my skills and personality? Writing is my passion, I bring over twenty years of writing experience to the table. Is the customer looking for a more holistic solution than his or her immediate complaint? My customers are looking for a holistic approach. Nonlinear Productions will provide this through collaboration with web developers, providing search engine optimization for clients while establishing their authority in the field to their target audience. Do I need to do all of the work myself or can I hire others to help me and still maintain quality? I will personally be doing all the work at Nonlinear Productions to ensure quality. As I grow, I plan to hire talented individuals who reflect the quality we are producing for our clients. Is there growth potential to expand my business, or is this a dying market? The growth potential to expand my business is high because of the constant, and growing demand for skilled writers. The greater my reputation becomes for being highly skilled in this field, the greater the demand becomes for these services. How soon can I get my business up and running? One month upon release, I will be taking on clients. Is this something that will take a lot of cash to get started or is it more of a question of hustle? A little cash, and a little hustle will be enough to get this business off and running. Is this something I would be proud to share with my family and parole officer? I would be proud to share my principles for success in this business to anyone. Is the opportunity (Activity and Start Date) consistent with potential parole restrictions? All the opportunities I consider will be consistent with my potential parole restrictions, and the moral code I follow. Would my business start as a part-time venture or need to be full time? I plan to make Nonlinear Productions a full time venture. Nonlinear Productions 2

7 SOLUTION Explanation: I will write original, expressive, and informative content for business professionals, to use as their own material, to establish their authority in the field. Is what I am offering filling the customer s real need? Most business professionals outsource their original written content, either for lack of skill, or lack of time. What are the benefits (not features) that I am providing? I will enhance my client s ability towards their services, to their target audience by establishing their authority in the field, via search engine optimization, and retaining for them more clients. Why can I do this better than another business (competitor)? I will focus on each individual client as if I ve worked with them for years, giving them the feeling of being our only customer. How will I deliver this better idea to my customers? Through grassroots marketing strategies, and word of mouth, I will gain the clients I m looking to service. Is my delivery (retail store, home service, etc.) consistent with how I will produce the service (one-day delivery, hand-made products, etc.)? Clients will have 24 hour, instant access to all work done for them via the internet. Is my solution consistent with my passion for selling? I will do well for my clients through my passion for writing, and naturally I will retain more sales. Is the price of my solution equal to or less than the customer s pain? The invaluable skill and attention given to each individual project by far outweigh the price. Anyone can be a grammarian, but not anyone can be an artist. Is the approximate cost of my solution lower than the price? The costs of writing creatively doesn t have much to do with money. With this in mind my costs are much lower than the price. Do I need a fixed location (Storefront) or is this a mobile business? I do not have need of a storefront because I offer remote access via the internet. Do I offer a guaranty or return policy? I offer a guarantee on all my work. Clients won t pay for my services unless they are 100% satisfied. Happy clients are return clients. CUSTOMERS Explanation: Our target customers are male, business professionals who lack the time or skills to write their own original business plans. Demographics: Will my service have different appeal to men versus women? Nonlinear Productions 3

8 Market research shows my service will appeal to men. Men are less likely to write their own content. What is my ideal customer s age (children, young adult, middle aged, mature)? My ideal customer s age will be from years of age. Does my customer need to be married, single or does it matter? It does not matter. Do language or ethnicity differences improve or limit my ability to sell to my ideal customer? Language or ethnicity is not an issue because of the availability of the internet. What aspect of my ideal customer am I appealing to (outdoors person, health conscious, nerd, their personal image, environmental concerns, recreation, etc.)? I am appealing to their professional image, their need for monetary gain, lack of time and/or specialized skill. Income: Does my customer need a certain income (rich, middle class, poor)? My customers can be of any income level. Does my customer need to own specific assets (car, house, boat)? My customer preferably will be a business owner, but is not limited to business professionals alone. Location: Where will I sell to my customers (their home, their workplace, on the street, online, my store, an event like trades day)? I will sell my services by word of mouth, 3rd party freelancing websites, business networking events, and social media. Do I go to my customer (home service) or does my customer come to me? I will interface with my customer mostly via the internet. What neighborhood will my ideal customer live/work in (River Oaks/Highland park, a suburb, or small rural community)? It does not matter where my customer lives. How close are my customers geographically located (live close to each other or spread all over the city)? Time is money. This is not an issue for my company. I will use the internet for remote access. How easily can I find this customer (one at a time or they will provide referrals)? There is a very high likelihood of repeat clientele, because of the focus I will use with each individual. Other: Can I reach these individuals as a group or do I need to find and sell to them individually? I will reach them as a group, and I will reach out to them individually. Once I sell to a customer, what is the likelihood that they will buy from me again? We will be delivering excellent customer service so we anticipate repeat business. Nonlinear Productions 4

9 DIFFERENTIATORS My Competitors Direct or Indirect CNN Indirect Internet Various pricing Craigslist Indirect Internet Various pricing Promotion Price Their Advantages Their Disadvantages My Differentiators Convenience well known Convenience well known They don t know their customers They don t know their customers I focus on each individual client making them feel like our only client. I focus on each individual client making them feel like our only client. Do it yourself self (DIY) Direct They don t promote They don t sell their services. Personal Time specialized skill I focus on each individual client making them feel like our only client. Sesame Street Direct Osmoses Ridiculous They re very obscure and you must win a lottery to use their service. They can t read minds nor bilocate. I focus on each individual client making them feel like our only client. Nonlinear Productions 5

10 EXTRAS External Extras: Do you have a connection with a supplier in your industry? It s a freelance writing firm, I have no need. Do you have access to a favorable location for your business? Remote access via the web. Are you going to be the first company of your type in your chosen area operations? I will be the first because of my niche market. Internal Extras: Do you have a new or cutting edge concept? I have a very innovative concept for this market. Will you be able to offer specialized or flexible scheduling that your competitors cannot match initially? I will offer specialized and flexible scheduling. Are you an especially charming or personable person? I am oh so charming, and personable, you can see this from a distance. MARKETING Message: What are three things your company name (with no other information provided) says about your company? That we provide original, expensive, and informative written context. What is your tagline? Dynamic freelance written services at light speed. How does your name and tagline make you different than your competitors? We provide solutions by thinking outside the box and seeing the bigger picture. Can your message be effectively conveyed through multiple types of media? Yes it can. Is your message effective across different demographics? Our message is effective across all demographics. Is your pricing consistent with the market for similar offerings? This is not a price driven industry. Pricing is not an issue for our customers. Is your pricing consistent with the degree of personalization? Our pricing is consistent with our level of personalization towards our client. If it is not, we don t have clients. Media What are three types of media you will use to reach your customers? Business networking events, social media, third party freelance websites. How many potential typical customers (not just total people) can you reach each month using the types listed above? Nonlinear Productions 6

11 We will reach hundreds per month. Once you ve reached your typical customer, how many will actually buy from you? I believe any customers I am reaching out to will use our services. For each of the three, what do you think the estimated cost will be? I could start up with $14,000 For each cost estimate, is this a one-time expense up front or a recurring monthly charge? There will be a monthly charge and one time fees as well. How will you collect customer reviews? Directly via the web and/or word of mouth. Nonlinear Productions 7

12 Owner's name Company name Industry Nonliner Productions Public Relations Firm Start-up Costs Year 1 Assumption 4 - Total Uses Paid or Non-Depreciable Costs contributed in 1 marketing, business cards, fliers 5,000 cell phone purchase 500 car/truck down payment, if leased permits supplies, office & misc. 500 Cash needed for start-up expenses 6,000 Depreciable Costs Paid or contributed in 1 Equipment Financing (Additional to amount paid) Depreciable Assets company car, truck or van ,000 20,500 company trailer - computer, printer, fax 5,000 5, building/office deposit N/A N/A beginning cash balance N/A N/A Cash needed for start-up assets 5,500 20,000 25, assumed life (months) 425 monthly depreciation Total start up cost 31,500 Assumption 5 - Total Sources Cash owner will contribute to the company 15,000 38% Value of owner's assets contributed to company 0% Vehicle loan and other equipment debt (see note 7 for financing) 20,000 50% Unsecured debt, if applicable (for example Kiva loan) 5,000 13% Outside equity investment, if applicable 0% Total start up cost, total sources 40, % START-UP COST

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14 dba Nonliner Productions EOU, Financing, and Payroll Assumptions Year 1 Assumption 6 - Revenue Model (Economics of One Unit) Product 1 Product 2 Product 3 Product name Product description 10 Blogs Average 10 Blogs with 5 hours of research Price per unit 2, % 0% 0% Cost of one unit hours rate hours rate hours rate Non-owner payroll exp. - 0% - 0% - 0% Non-owner payroll tax 9.0% - 0% - 0% - 0% cost 1 description 0% 0% 0% cost 2 description 0% 0% 0% cost 3 description 0% 0% 0% cost 4 description 0% 0% 0% Total variable costs - 0% - 0% - 0% Income statement gross profit per unit 2, % - 0% - 0% hours rate hours rate hours rate Owner's labor charge - 0% - 0% - 0% Pro forma gross profit 2, % - 0% - 0% Start-up Total Year 10 Blogs sold sold - sold - total revenue $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 180,000 total cost of sales $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - total income statement gross profit (excludes owner labor) $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 180,000 Owner's labor hours (time spent directly related to sales) Assumption 7 - Financing Total Year Equipment financing, see Start-up Costs sheet amortization schedule Amount borrowed $ 20,000 principal, beginning 20,000 19,244 18,481 17,712 16,937 16,155 15,367 14,572 13,771 12,963 12,148 Interest rate 10.0% interest expense ,478 Loan term (months) 24 principal payment (756) (763) (769) (775) (782) (788) (795) (801) (808) (815) (822) (8,674) ly payment 923 principal, ending 19,244 18,481 17,712 16,937 16,155 15,367 14,572 13,771 12,963 12,148 11,326 Start-up financing, see Start-up Costs sheet Amount borrowed $ 5,000 principal, beginning 5,000 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 Interest rate 0.0% interest expense Payback period (months) 24 principal payment (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (2,292) Grace period (months) - principal, ending 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 2,708 ly payment $ 208 Assumption 8 - Payroll, nondirect Total Year # of employees avg hours each employee(s) worked per month, not in EOU above average per hour wage salary expense, exclduing payroll taxes Assumption 9 - Equipment Purchases, after start-up Description Total Year FINANCIALS

15 dba Nonliner Productions Projected Income and Cash Flow Statements Year 1 Assumptions Start-up First Year % of Total Revenue Revenue 2 10 Blogs 6-10,000 10,000 10,000 10,000 20,000 20,000 20,000 20,000 20,000 20,000 20, , % line not used % line not used % Total revenue - 10,000 10,000 10,000 10,000 20,000 20,000 20,000 20,000 20,000 20,000 20, , % Cost of Goods Sold 2 10 Blogs % line not used % line not used % Total COGS % Gross profit - 10,000 10,000 10,000 10,000 20,000 20,000 20,000 20,000 20,000 20,000 20, , % Expenses 2 Auto or truck lease - - 0% Depreciation ,675 3% Gasoline & fuels ,650 1% Insurance - bonding - - 0% Insurance - vehicle ,650 1% Interest - equip & start up ,478 1% Marketing 5,000 1,000 1,000 1,000 1,000 1, ,200 6% Office - rent - 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 11,000 6% Office - insurance - - 0% Office - telephone - - 0% Office - utilities - - 0% Payroll - not owner and not in % COGS Payroll taxes (9%) 6 & % Permits - - 0% Supplies ,700 2% Tax service % Telephone - cellular ,150 1% Start-up expenses % - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% Total expenses 6,000 3,242 3,235 3,479 3,223 3,216 2,660 2,403 2,396 2,640 2,383 2,376 37,253 21% Taxable profit (loss) 1 (6,000) 6,758 6,765 6,521 6,777 16,784 17,340 17,597 17,604 17,360 17,617 17, ,747 79% Tax (expense) benefit 1 (1,881) (7,521) (13,135) (13,150) (35,687) -20% Owner's withdrawals 1 - (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (44,000) -24% Net profit (loss) (6,000) 2, ,521 2,777 5,263 13,340 13, ,360 13, ,060 35% Depreciation ,675 Equipment purchases 3 (25,500) (25,500) Principle, equipment loan 7 20,000 (756) (763) (769) (775) (782) (788) (795) (801) (808) (815) (822) 11,326 Repay debt financing 7 5,000 (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) 2,708 Owner contribution 3 15, ,000 Equity investor Net cash flow 8,500 2, ,969 2,219 4,698 12,769 13,019 (116) 12,769 13,019 (131) 71,270 Cash, period start - 8,500 10,719 11,057 13,026 15,244 19,943 32,711 45,730 45,614 58,382 71,401 - Cash, period end 8,500 10,719 11,057 13,026 15,244 19,943 32,711 45,730 45,614 58,382 71,401 71,270 71,270 The accompanying assumptions are an integral part of this financial statement.