Our firm’s hallmark investment product will be the Vista Total Market Equity strategy and will be initially offered through a mutual fund that is registered by the U.S. Securities Exchange Commission (SEC). Technological advances also allow for economically viable distribution channels such as separate managed portfolios for large accounts. This plan also contains details about our investment products. It is worth noting that the Journal of Portfolio Management will publish a research article that supports our primary product offering. Ennis Knupp, an elite institution investment consulting firm published a study entitled, ‘Failure Of The Multiple-Specialist Strategy. Case for Whole Stock portfolios.’
VISTA INVESTORS is a partnership that will capitalize on the industry research conducted by Michael Douglas during his investment management research career. Douglas was a guest at over 30 firms’ investment offices last year. Douglas met hundreds of key investment professionals, either via phone or face-toface, with people all over the world. Douglas’s team presented this business plan to show how a successful investment management organisation should look as the industry changes.
VISTAINVESTORS will provide high net worth investors or ‘#8220’ angels the opportunity to take minority ownership positions in return for contributions to VISTAINVESTORS’’ operating capital and seed assets for the establishment of the investment products discussed herein. This document in its entirety does not constitute an offering of any kind. Risks associated with the VISTA INVESTORS’ business plan are not limited to those detailed in this document.
1.1 Objectives
VISTA INVESTORS exists to create value in the lives of owners, employees, investors and others by setting up an investment management organisation for the Third Generation. Merrill Lynch & Co., Inc., Barra Strategic Consulting Group defined the Third Generation of investors as a new phase in the industry that requires a particular set of skills for success. The study, as well as many others, and our own industry experience, have helped us to develop a plan that will ensure the success of VISTA INVESTORS.
1.2 Mission
Buy and sell decisions are implemented quickly and efficiently across all portfolios. If applicable, a trading routine is used to eliminate any type of systematic advantage and disadvantage that accounts may encounter. Our discipline is our only exception.
1.3 Keys for Success
Performance is perhaps the most important factor that determines success in the investment management industry. Morningstar, a respected organization in the mutual fund industry, is our primary goal. To be rated by Morningstar, funds must have a minimum performance history of three years.
The Center for Technology and Investment (“CTI”) is a company dedicated towards bringing technology investment to small rural businesses. This company was founded on the belief that rural small businesses are in dire need of technology consulting and experience. However, they don’t have the resources to hire large multinational companies to do the job.
CTI is a pioneering new force in rural Oregon. It will do this by utilizing innovative funding sources like grants and donations from the owner’s business and other individuals who are interested to support rural Oregon’s economic growth.
CTI’s Management Team consists of Bill Franklin. Mr. Franklin has developed technology in the Silicon Valley for over 35 years, and was one of the first Electrical Engineers to work at the Stanford Research Institute (SRI). Franklin is a leading expert on technological advancement. He owns multiple businesses and sold two of them for a profit.
The market for CTI’s services are not limited to rural Oregon, and if the business expands, it is likely to expand further into the rural West. In the Western United States, there are more than 45,000 rural “mom-and-pop” businesses. A large number of them don’t have any experience in high technology or know little about alternative funding sources.
This investment business plan helps formalize the strategy. This open credit is to provide cash flow management and a $10,000 loan to start with CTI.
1.1 Objectives
The Center for Technology and Investment will serve the needs of approximately 500 clients by Month 4 of Year 1. The Center for Technology Investment will serve the needs of approximately 500 clients by the fourth month. At least 50% will have bought one or more products, and 100% will purchase services.
Below are some financial goals:
Within the first year achieve a 25% contribution margin on books, software, academic materials, and other products.
Limit revenue costs to 20%
From Month 1 to Month 12, net revenue increased 350%
30 % net revenue margin in year 1, 35% in year 2.
1.2 Mission
The Center for Technology and Investment (a non-profit organization) was founded to assist rural small businesses in using technology more efficiently. The company’s charter was based on the fact that many rural small business owners don’t have access to the right resources and connections to make technology work for them. Our mission is to fill this gap through training and education of small business owners in how to use their resources effectively and to take advantage of technology available to improve the performance of their businesses.
The organization will have fulfilled its mission when all of its clients have achieved growth rates above 20% combined.
1.3 Keys of Success
Here are some key keys to success.
Concentrate on the target market. Dig down to several layers of demographics.
Intricate planning and execution. Quarterly seminars need to be thoroughly researched, with accurate costs understood and fresh content maintained.
Retainer Consulting must remain low-cost to rural business owners. This must be a small percentage from any SBA program or technology grants that are available to them. CTI should not be seen as a broker of SBA funding, or other funding. Instead, it must serve as a consultant with the expertise to help clients obtain high-level funding in technology.
Financials must be kept above the highest standards due to nonprofit status in a largely for-profit industry.
Staryoo.com, a groundbreaking concept, will offer a Web-based trading platform that allows Chinese institutions and investors to trade in securities and equities. Staryoo.com can change the way millions invest in China. Staryoo.com features investment options that are not currently available in China include: real-time stock market quotes, technical and foundation analysis, expert commentary on the market action and recommendation, investment forums, chat rooms, online banks transfers, remote notification and educational materials such as tapes and books. Users will have the ability to customize the platform’s intelligent graphic interface to suit their investment profile and level of experience.
Internet investment and usage will rise rapidly as a result of China’s recent membership in the World Trade Organization. According to a recent report by the China Internet Information Center, there were 4.5 million Internet users in China as of June, 1999. This is twice the 1998 estimate, and it is expected to rise to 20 millions by 2000. 40 million of the 45 million Chinese investors are individual investors. It is expected that the trading volume of foreign equities markets, mainly the U.S. market, will grow tremendously when they are made available to individual investors. According to Mr. Pen Reng is the Vice President of Shanghai Securities Co. LTD.. The second largest brokerage company in China. It is expected that China will have 250 million investors by 2005. Staryoo.com has anticipated this trend and will be the first to support international trading.
In the last few years, the U.S. stock market for equity securities has experienced a significant increase. Due to a combination of historical market highs and increasing number of issuers on NASDAQ, the large increase in daily trading volume at NASDAQ is a result of both the growing number of issuers on NASDAQ and the historic market highs. At the same time, technology has advanced to the point where more investors are trading online. This has led to an entirely new set of self-reliant value-oriented investors who are more comfortable with electronic commerce. We believe that these same trends will develop in China and that we will be well positioned to take advantage of the significant market opportunity that will exist for faster, easier, more reliable, and less expensive trading systems.
Staryoo.com’s headquarters are in Shanghai, China. There is also a Sunnyvale office in California. Initial seed capital and technical support has been provided by Starmile Systems Engineering, Co. LTD. (Starmile) located in Shuzhou, China. Staryoo.com was established in the United States to serve two purposes. First, it will facilitate the transfer from the Chinese equities marketplace to one which allows access to U.S. equity markets. Second, Staryoo.com must be able to rapidly and efficiently go public in the U.S. to market and develop this trading platform. To reach the goals listed below, additional financing may be required for the fourth quarter (Q4).
1.1 Objectives
Alpha and Beta testing of Web platform, January 15, Year 1, and May 15, Years 1, respectively with strategic partners from China
Reach out to two large brokerage firms in order for the platform’s initial deployment by June 1, Year 1
Get your first round of funding before June 1, Year 1.
Staryoo.com available for individual investors beginning June 1, Year 1 (without online trading).
Staryoo.com online trading available starting September 15, Year 1
Staryoo.com offers U.S. equities market access in China for Q2 Year 2*.
By Year 1, you will have revenues of $300,000.
Sign up 18,000 members and 14 brokerages by Q4 Year 1.
Staryoo.com is now available as a trading site in the U.S. during Q3 Year 3.
Staryoo.com U.S. public company by Q4 Year 3.
* * * WTO Membership in Q4 Year 1.
1.2 Mission
Staryoo.com’s mission it to offer investors the most comprehensive Web trading platform. We will work tirelessly to ensure that this trading platform is constantly evolving. This means listening to users and continually improving the product range to suit their needs. Staryoo.com is dedicated to providing exceptional customer service that will earn investor trust and confidence.
As we strive for first class image, quality, service and fair profit, both investors and employees will see first-class results. Recognizing that our employees are our most valued resource, Staryoo.com will nurture and reward its’ employees as milestones are achieved, technologies are developed, and the company flourishes.
1.3 Keys for Success
To succeed in this business we must:
Staryoo.com’s Web-based trading platform is unique among all others. It offers investors more functionality and features that are required for advanced Internet trading.
Staryoo.com customer service and order transmission ensure 100% customer satisfaction.
Starmile’s technical knowledge and client base are leveraged to ensure that Staryoo.com equities trading platform is known and appreciated by all.
1.4 Strategic Advantage
Staryoo.com has a competitive advantage over other Web-based platform providers for trading because of these strategic reasons:
Starmile has extensive technical knowledge in the field of bank information processing. This includes transaction processing as well as account inquires and settlements.
Starmile has developed and is ISO9002 certified payment cryptography system.
Starmile has developed an online non-Web-based security trading system for China JiangQian Tide. This system includes most of the functionality being proposed for the Staryoo.com trading platform, including: transactions and trading of Shanghai A shares, statement of account transactions/balance, Windows NT based, online retrieval of market reviews and exchange information, downloading of historical data, input of stock symbol and lookup, network security/firewall implementation, and built-in analysis systems.
A diverse and experienced management team. With backgrounds in the technology, banking and securities industries.
A U.S. company that has a strong relationship with Starmile will have a lower barrier to market penetration in China. However, American companies will struggle to gain market share because of cultural preferences.
This sample plan was created for a hypothetical investment company that buys other companies as investments. This sample shows that the initial investment fund for a hypothetical Venture Capital firm is $20 million. In its early months of existence, it invests $5 million each in four companies. It receives a monthly management fee of two per cent (2%) of the fund’s value. It pays salaries to its associates and other employees. The management fee covers office expenses.
The cash flow table displays investments as longterm assets purchased. These assets are added to the balance sheet. These can be seen in this sample plan in the first few weeks.
Five million dollars is written off for failure if one of the target businesses fails in the third year. It will be clear that this resulted in a $5million sale of long-term cash assets and a balancing input of $5,000,000 in costs in profit and loss. This results in a tax deduction and the investment balance is increased to $15 millions.
One of the target businesses is transacted at $50,000,000 in the fifth fiscal year. You’ll see in the sample how that shows up as a $45 million equity appreciation in the sales forecast, plus a $5 million sale of long-term assets in the cash flow. The $45 million profit is now realized, while the long-term balance drops to $10 million.
This is an example. This business model holds long-term assets, and waits for their appreciation. It doesn’t show asset appreciation until they are sold and it doesn’t show write down of assets until they fail. Sales and cost are the appreciation or write-down of assets.
The explanation above has been broken down and copied into key topics in the outline that are linked to corresponding tables. These topics are: