I. Executive Summary
[Company Name], headquartered at [insert location here] is a new, internet-basedretail storeselling e-books for travelers.Our productswill includecontent provided by a variety of print and internet publishers, all with a focus on articles, magazines, guides, and books that travelers may want to read for entertainment and to save space that physical books would require.
Products and Services
[Company Name]will offer a wide variety of books, magazine subscriptions or individual articles, and guides in downloadable format for use on E-readers, laptops, or smartphones. These products must fit the requirement of being of particular interest to travelers, whether they are related to travel, or are light reading that travelers are more comfortable with.
Services to sellers will include marketing, transaction processing services, and distribution through downloads from [Company Name]’s servers.
[Company Name] will primarily serve American travelers interested in saving space in their luggage, finding the latest travel-related guides and literature, and/or eliminating the waste associated with printing books and magazines. The demographics of these customers are as follows:
- Roughly 25 million Americans travel overseas each summer according to AAA
- Average income of $54,700
- 38.9% married
- 49.6% in Mgt./Professional occupations
- Median age: 34 years
[Company Name]is led by [Founder’s Name] who has been in the e-commerce business for 10 years. While [Founder] has never run an e-commerce portal himself, he was previously director of strategic development for an e-commerce site devoted to travel equipment. As such [Founder] has an in-depth knowledge of the e-commerce business as well as the needs of travelers, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
[Company Name] is uniquely qualified to succeed for the following reasons:
- There is currently no e-book seller devoted to travelers and their specific interests and needs. In addition, we have surveyed publishers of appropriate content and received extremely positive feedback saying that they explicitly want to sell their work through our business when launched.
- The management team has a track record of success in the e-commerce and consumer travel product business.
- The e-commerce business is a proven business and has succeeded throughout the world.
- Market trends,such as the growth in digital downloads of music and books, purchases of e-readers and netbooks, and the “green” movement favor this business.
Company Name is seeking a total funding of $430,000 to launch its business. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Website design/build and startup business expenses: approximately $120,000
- Working capital: approximately $310,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Income Tax Expense||$0||$0||$284,186||$641,754||$1,086,116|
|Number of orders||36,563||122,155||221,444||287,415||349,355|