InteliChild.com children's website business plan executive summary. InteliChild.com is an Internet-based start-up company focused on offering a bright and intelligent website where kids ages 8-12 can play and learn at the same time.
While we have plans to expand into international territory, our initial launch will target our most important market - the American upper class. We know that most of our clients drive BMW's and have very good taste - they spend money on their children because they can appreciate the technology that we have created. They also generally have high bandwidth connections, and are impressed by first-class design.
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.
Traffic, as measured in unique user sessions: 100,000 unique user sessions in June, Year 1; 450,000 in December, Year 1; 3.5 million in Year 2; and 5 million in Year 3.
Sell-through, as measured in dollar sales per unique visit: a high of $0.58 per unique visit in December of Year 1; increasing to $0.83 in Year 2; and $0.92 in Year 3.
Valuation, as measured in ability to bring in additional investment at economically feasible valuations. We need to attract moderate investment this year, and an additional large infusion in Year 2, with valuation performance that yields attractive internal rate of return (IRR) to investors. The financial section indicates IRR of more than 100% for all investors, with larger IRR for seed, declining slightly for first round and then second round.
Acquisition or Initial public offering (IPO) in Year 4, with a valuation of more than $20 million. This assumes of course the market valuations based on sales and earnings, which are relatively high as this plan is written.
We must retain the customers. The website has to be easy to use and quickly viewable. User satisfaction is an ultimate priority.
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.
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.
The e-commerce project should further establish InteliChild.com presence as a technology leader, not only returning traffic but actually bringing in new traffic.