Businnes Plan

Children’s Website Business Plan


Children


Introduction

InteliChild.com provides bright children a fun place to interact with educators and others on the Internet. It generates first traffic and valuation for investors. Then it eventually produces commerce and profits. It’s a safe place for children to play, for parents to buy school supplies, and for employees to work in a fair and creative environment.

The InteliChild.com ecommerce website is the next natural step in the InteliChild.com Internet business. It will sell and market selected toys, books, as well as software products. It will also produce Web applications and products that will increase market shares, name recognition, efficiency, and maximize profit.

The Company

InteliChild.com currently exists as a start-up with four full-time employees. The company was incorporated as a California C corporation owned by its principal founders, at 25% ownership each. (Name Obsolete) Capital partners bought 50% of this company. The company operates out of one office. The initial website is at www.citruscoolkids.com.

The in-house knowledge we have built is our key competitive advantage. Our competitor spends 5-10 times as much to outsource to high-end companies than we do for services we provide in house. This will also happen with InteliChild.com. We have already the SQL(tm), ColdFusion ™, and Flash(tm), programming expertise.

Products and Services

InteliChild will be offering a steadily increasing mix of three lines of products:

  • Toys and Games – carefully chosen toys and games that appeals to the target audience, their parents, and educators.
  • books should include books that appeal to the parents or educators of the target market. These books can be ordered on this site by interested adults who are looking for books about their children. There are also books that can be ordered for and by children.
  • Software: A carefully chosen software that appeals to the target market, target parents, and educators.

The Internet is constantly reinventing itself, sometimes even every three months. Our strategy for the future is to have enough flexibility to adapt new technologies and to respond to rapid changes.

The Market

InteliChild.com’s market is growing exponentially thanks to technological advances in education and acceptance of technology teaching aids. Our entry into the market will depend on the approval and support of the school communities, including teachers, PTA and special education programs.

These are our main target markets:

  1. The kids.
  2. Parents.
  3. For children of the upper classes, there are educational institutions.
  4. Self-teaching families.

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 many of our clients own BMW’s and are highly discerning. They also spend a lot on their children, as they understand the technology we have developed. High bandwidth connections are a common feature, and they appreciate first-class design.

Financial Considerations

Our start-up costs are high because of our commitment to dominate the Internet market place.

The Break-even Analysis shows that we have reached steady-state breakeven within the first year.

Sales forecasts are based on increased website traffic and more sales per user session. Sales are projected to rise exponentially from Year 1 to Year 3. Traffic growth will be a key factor in the forecast. We anticipate losing money for at least three more years as we continue to build traffic and strengthen our position for a long-term future.

Objectives

  • 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.
  • As measured in dollar sales per visit, sell-through: $0.58 per visit in December of Year 1, an increase of $0.83 per year 2 and $0.92 per year 3.
  • Value is the ability to attract additional investment at economically viable 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 displays an IRR of over 100% for all investors. IRR for seed is higher than for other investors. IRR for second round decreases slightly.

  • Acquisition (IPO) or Initial public offering in Year 4 at a valuation greater than $20 Million. This assumes of course the market valuations based on sales and earnings, which are relatively high as this plan is written.

    • Mission

    InteliChild.com provides bright children a fun place to interact with educators, other kids, and the wider world. It generates traffic first and then valuations for investors. Then, commerce and profits follow. It’s a safe place for children to play, for parents to buy school supplies, and for employees to work in a fair and creative environment.

    Keys to Success

    1. Customers should be kept happy. The website should be simple to use and quick to view. User satisfaction is an ultimate priority.
    2. If the project can capitalise on the traffic generated by InteliChild.com and convert the user sessions into dollars via the commerce site, it will succeed.
    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 ecommerce initiative will strengthen InteliChild.com’s position as a technology leader. This will include returning traffic as well as bringing in new visitors.