CHILDRENS WEBSITE BUSINESS PLAN
SUBMITTED BY
GOKUL. R VISHAL. E ASHWIN
17BC286 17BC413 17BC169
SEC J SEC J SEC I
PLAN OUTLINE:
• INTRODUCTION
• PRODUCTS AND SERVICES
• THE MARKET
• FINANCIAL CONSIDERATIONS
• MISSION
• KEYS TO SUCCESS
• MARKET SEGMENTATION
• ORGANISATIONAL STRUCTURE
• FINANCIAL PLAN
• IMPORTANT ASSUMPTIONS
Executive Summary
Introduction
This website offers bright children an entertaining place to
interact with each other, the Web, educators, and the world in
general. It generates traffic first, valuation for investors, and
eventually commerce and profits. It is a healthy place for kids to
play, for parents and schools to buy, and a creative and fair work
environment for employees.
The website e-commerce project is the natural evolution for the
website for Internet presence. The site will market and sell selected
toys, books, and software products. It will also produce Web
products and Web applications that will increase market share,
promote name recognition, and maximize efficiency.
Products and Services
Website will be offering a steadily increasing mix of three lines of products:
•Toys and Games: carefully selected toys and games that appeal to the target market,
the parents of the target market, and educators.
•Books: there should be a selection of books that appeal specifically to the parents and
educators of the target market, so that these interested adults can go to this site and
order books about their children. In addition, of course there is also a selection of books
to be ordered by and for the kids to read.
•Software: carefully selected software to appeal to the target market and target parents
and educators.
The Internet reinvents itself every three months, or even faster. Therefore, our strategy
for future development is to remain positioned with enough flexibility to adapt new
technologies, and adapt to changes quickly.
The Market
The InteliChild.com market has been expanding
exponentially with the advances of technology in the
teaching sectors and the acceptance of technology as a
teaching aid. The critical component to our entrance into
the market will be approval and support from the school
communities - including teachers, the PTA, and special
education programs.
Our primary target markets include these four areas:
1.The kids themselves.
2.Parents.
3.Educational institutions for children of the upper class.
4.Self-teaching families.
Financial Considerations
Our start-up costs are high because of our commitment to dominate the Internet
market place.
The Break-even Analysis indicates we reach steady-state break-even in this first
year.
The sales forecast is based on increasing website traffic and increasing sales
per unique user session. Sales are projected to rise exponentially from Year 1 to
Year 3.
The forecast obviously depends on traffic increase. We plan to lose money for
at least three years while we build traffic and develop our position for the long-
term future.
Mission
Intelikids.com offers bright children an entertaining place to interact with each
other, the Web, educators, and the world in general.
It generates traffic first, valuation for investors, and eventually commerce and
profits.
It is a healthy place for kids to play, for parents and schools to buy, and a
creative and fair work environment for employees.
Keys to Success
1.We must retain the customers. The website has to be
easy to use and quickly viewable. User satisfaction is an
ultimate priority.
2.The project will succeed if it can capitalize on the traffic
that InteliChild.com produces, and turn the user sessions
into dollars through the commerce site.
3.The sales process must be easy to administer and
flexible enough to accommodate the needs of InteliChild,
which is not ready to take on more employees to do so.
4.The e-commerce project should further establish
InteliChild.com presence as a technology leader, not only
returning traffic but actually bringing in new traffic.
Market Segmentation
Our primary target markets include these four areas:
1.The kids themselves. We include ages 5-9 and ages 10-14 in our market
statistics because these are the breakdowns available at www.census.gov,
and we include only 10% of the total in each category.
2.Parents. We include 10% of the parents, assuming that leads to an
average combined income above $100,000. Most of these people live in
suburban areas, but the urban upper class is also a major component. [Editor
note: details for this sample plan are not necessarily correct.]
3.Educational institutions for the children of the upper class. This
includes day care and private schools. Penetrating this market is
excellent because it generates leads to our other targets. We include
107,000 schools in the U.S. in our table.
4.Self-teaching families. There is an excellent group of established
customers who teach their children from home. The site will benefit
greatly from the time available from this target group.
Organizational Structure
We need an agile organizational structure that recognizes the need for a
smooth flow of ideas and implementation between sales, marketing, and
website development. We can't allow the team to think as if these were
separate functions.
On the surface, however, we have the president dealing with three direct
reports: admin/finance, sales/marketing, and web development. In fact we
are not going to manage with a strict hierarchy, because we need to
emphasize the team.
Still, particularly as we grow in size, structure is necessary. We will want to
preserve decision-making power, and the ability to act, rather than trying to do
everything by consensus.
Financial Plan
This is an Internet venture that, of course, depends on the developing
financial prospects of the growing Internet world. To make it work
financially, we need to increase valuation on schedule to bring in substantial
additional capital. The following table defines the investment offering for
investors. Specifically:
1.The exit strategy is acquisition in 2003, valuing the company at more than
$20 million.
2.Equity plan and valuations at time of exit are detailed in the section that
follows, "Exit Strategy." The plan assumes an ending valuation of $20
million based on market trends, with IRR of more than 100% for all
investors.
Important Assumptions
The general assumptions are listed in the following table. Obviously these are
detailed financial assumptions, trivial compared to the underlying critical
assumptions, which include:
1.Continued growth of Internet usage. We accept published forecasts that say
4% of the world's population presently uses the Internet, and that will grow to
11% by 2005. That's strong growth.
2.No e-commerce disaster scenarios. We'll have no huge problems with credit
card authorization, shipping, etc.
3.Continued support of financial markets, which means continued rise in
valuations of Internet companies, even Internet companies losing money. The
increase in valuation is critical to our financial strategy.
