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this is our main idea of our course project which is (writing business plan). The business we have settled on is an online
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THe numbers provided below are solely for the purpose of explanation:

PROPOSED COMPANY OFFERING

* Desired Financing:

The total money required for the project in terms of finances is $50,000

$20,000 would be needed upfront for setting up initial team, and also for buying the books from various writers and sources, and also signing third party contracts with other vendors.(The first phase of project). This includes web development of the online application as well.

$10,000 would be needed in the second phase, for setting up logistics and delivery of the books to the door steps of the customers. This includes the complete supply chain.

$20,000 would be needed in the third phase, for marketing and promotion of the online application.

No additional cost involved, except for on an average $10,000 quarterly expenditure on delivery, which is variable depending on the number of orders.

No loans or overdraft will be needed.

* Offering:

In return the inverstors can expect a profit of $20,000 every quarter starting from the third quarter. The first two quarters after the application is live, would be enough to get the investment back. And third quarter would start generating profit for the investors.

After a period of 2 years we are looking to have almost 10 million shares out of which 50 % will be held by the investors, 25 % will be available for sale in the market and remaining 25% will be held for the employees of the company.

The estimated value of each share we are looking at by the end of 2 years is $8 per share.

* Capitalization:

If everything goes as per planned, and the marketing team is able pull out good numbers, we are expecting a market capitalization of $80 million in 2 years.

Where in we are expecting 10 million outstanding shares at a share price of $8 each.

Market capitalization = total shares of company in market * price of each share

Market capitalization = 10 million * $8

Market capitalization = $80 million(in 2 years from the launch of online application)

* Use of Funds:

Every Quarter 20 % of profit generated will be reinvested in marketing and application development.

10 % of profit generated will be used in hiring new resources for the company and infrastructure expansion.

20% will be used as working capital, while 20% will be reserved for variability factor.

The remaining 30% goes to the investors.

* Investor's Return:

The investor's can expect a healthy 15% return on investment by the end of fiscal year and this return on investment would remain constant for next 2 years.

Moreover, if the company undergoes any ventures in future the share percentage for all the investors would remain the same even after the venture. Also all the investors are free to liquidate their shares independantly at the market value whenever they wish to.

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