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Entrepreneurship

:Assignment:
Title: “Make a Business Plan for your own”

To: Dr. Faisal Nawaz

Prepared By: Usama Khurram

Rgd No: 2014-EE-488
Dated: 15-3-17

Department of Electrical, Electronics and Communication Engineering

UET Lahore, Faisalabad Campus

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Table of Content

1.0 Executive Summary

1.1 Mission
2.0 Company Summary
2.1 Company History
3.0 Services
3.1 Future Analysis
4.0 Market Analysis Summary
4.1 Strategy and Implementation Summary

5.0 Management Summary

6.0 Financial Plan

6.1 Break-even Analysis

6.2 Funding Requirements and Uses

7.0 Appendix
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Internet Service Provider Business Plan

1 - Executive Summary:

Web Services Provider's key markets for DSL are small and medium businesses, nationwide.
Web Services Provider's key markets for Web hosting and resale accounts are Web design
firms, individuals, and small businesses with a need for space on a server. Web Services
Provider's key markets for dedicated servers are small to large companies where security and
speed are necessary. Web Services Provider's key market(s) for co-location include medium
and small businesses such as online trading, e-tailers, online information sites, and
entertainment Web companies.

Computer telephony integration (CTI) is the convergence of the telephone and computing
industries. Currently, the CTI market totals $4 billion and is growing at 30% a year, with many
segments growing at a rate of over 100% a year. The Washington-based MultiMedia
Telecommunications Association estimates that the CTI market will grow by nearly 70% in the
next year, and triple by the year 2000.

1.1 Mission:

The mission of Web Services Provider is to provide quality Internet services, Web hosting, and
DSL service to both large and small clients.
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2 - Company Summary:

Legal Business Description

Web Services Provider was founded in September 1993 in Richmond, Virginia as an Internet Service
Provider. The company is a Virginia Corporation with principal offices located in Richmond.

2.1 Company History

Web Services Provider began as a Web hosting company. The company
developed a highly-skilled engineering team dedicated to developing a system to
offer clients the greatest degree of reliability and bandwidth at a more
affordable price. Web Services Provider, with its in-depth knowledge of Web
hosting systems, is now evolving into a large, specialized, Web hosting service
provider.
Past Performance 1997 1998 1999
Sales $0 $0 $900,000
Gross Margin $0 $0 $700,000
Gross Margin % 0.00% 0.00% 77.78%
Operating Expenses $0 $0 $700,000
Collection Period (days) 0 0 3
Balance Sheet
1997 1998 1999
Current Assets
Cash $0 $0 $2,450
Accounts Receivable $0 $0 $14,200
Other Current Assets $0 $0 $1,050
Total Current Assets $0 $0 $17,700
Long-term Assets
Long-term Assets $0 $0 $5,250
Accumulated Depreciation $0 $0 $1,000
Total Long-term Assets $0 $0 $4,250
Total Assets $0 $0 $21,950
Current Liabilities
Accounts Payable $0 $0 $10,000
Current Borrowing $0 $0 $500
Other Current Liabilities (interest $0 $0 $10,900
free)
Total Current Liabilities $0 $0 $21,400
Long-term Liabilities $0 $0 $3,550
Total Liabilities $0 $0 $24,950
Paid-in Capital $0 $0 $100,000
Retained Earnings $0 $0 ($103,000)
Earnings $0 $0 $0
Total Capital $0 $0 ($3,000)
Total Capital and Liabilities $0 $0 $21,950
Other Inputs
Payment Days 0 0 30
Sales on Credit $0 $0 $900,000
Receivables Turnover 0.00 0.00 63.38
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3 - Services:

Main services provided by Web Services Provider are outlined below.

1. DSL. A Digital Subscriber Line (DSL) is high-speed Internet access that is an "on all the time"
connection and ranges in speed from 144k to 6Gb transfer rate.
2. Hosting. Web hosting clients generally have the company place a single, or several, website
on a server in our facility and pay for the amount of disk space that they need to operate
their site.
3. Dedicated Server. Clients seeking to maximize the speed of their site due to high traffic or
download will lease a dedicated server from Web Services Provider, leaving the maximum
capability of the server all to their own site.
4. Co-location. Co-location customers provide the hardware themselves and administer their
site or sites via the Internet.

When hosting and dedicated server clients are secured, orders will be processed immediately
and the customer can be up and running within a few minutes. Dedicated server clients can
be online within 1-2 hours unless a special server must be built.

3.1 Future Services:

Having already established the relationships and infrastructure, Web Services Provider will
continue to search for emerging and existing technologies to improve and expand lines of
business. As advances in technology continue, Web Services Provider will upgrade to meet
specific objectives of present and future clientele.

Web Services Provider plans to respond to market needs by keeping abreast of all new
technologies and updates to be first to market using its already established lines of business
as a market vehicle. Web Services Provider will move quickly on plans for next generation
products/services.

3.2 Market Analysis Summary:

Web Services Provider's key markets for DSL are small and medium businesses, nationwide.
Web Services Provider's key markets for Web hosting and resale accounts are Web design
firms, individuals, and small businesses with a need for space on a server. Web Services
Provider's key markets for dedicated servers are small to large companies where security and
speed are necessary. Web Services Provider's key markets for co-location include medium
and small businesses such as online trading, e-tailers, online information sites, and
entertainment companies.

Within these markets, Web Services Provider focuses on the more lucrative dedicated server
and co-location clientele because they create less overhead and more profit than equal
revenue generating, smaller clients. Additionally, these markets require less service-intensive
efforts and create more profit. Its' margins are 40%-80% on larger and medium size clients.

Computer telephony integration (CTI) is the convergence of the telephone and computing
industries. Currently, the CTI market totals $4 billion and is growing at 30% a year, with many
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segments growing at a rate of over 100% a year. The Washington-based MultiMedia

Telecommunications Association estimates that the CTI market will grow by nearly 70% in the
next year, and triple by the year 2000.

Consumers improve their shopping experiences

In a relatively short period of time, the Internet has provided the savvy consumer with a
number of benefits, particularly convenience and information. Obviously, consumers who
shop online face a much different experience than they would in "real-world" retail. First and
foremost, a shopper need not leave the comfort of home or office in order to make a
purchase. The convenience of online shopping has proven to be a big attraction for many
consumers, particularly for goods that are not needed immediately, like books, CDs, or
apparel.

The information that is currently available online is another boon to consumers. It is relatively
easy to conduct research on various products over the Internet, giving consumers all the
information they need to help make an informed decision regarding a major purchase.
Consumers can thoroughly research big-ticket items like cars, electronics, or computers for
desired features, product performance, or price. The cost of a product has become simple to
research through many search engines. A consumer need only specify a product, type it in the
appropriate place on a comparison-oriented website, and then examine the resulting list of
prices, which contains links to the selling websites. While consumers do not always purchase
the lowest-priced item, the nature of the Internet makes comparison shopping so easy that
prices in many categories of goods will undoubtedly decline over time.

Strategy and Implementation Summary

4 - Marketing:

Web Services Provider markets its products as solutions to high traffic and bandwidth-
intensive Web companies whose online reliability and speed are critical to daily business.
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Target companies include online stock trading companies, e-tailers, and corporations with
graphics and/or streaming video.

Sales are made through Web Services Providers' national advertising campaign. The sales
process involves several steps which include:

1. The first contact when the perspective customers first impression is made while viewing one
the magazines in which we advertise.
2. At this point, the customer will call our sales line or go to our website.
3. The customer can then call the sales line where a trained representative will answer
questions and proceed with initiating service and billing. This approach will be used because
each customer's concerns and needs will be met immediately to capture the customer at
this point of contact.

The average sales cycle from first contact to closing the sale is between one and seven days.

5 - Management Summary:

The company's management philosophy is based on responsibility and mutual respect. Web
Services Provider has an environment and structure that encourages productivity and respect
for customers and fellow employees.

Officers and Key Employees

Web Services Provider's management is highly experienced and qualified. Key members of
the management team, their backgrounds, and responsibilities are as follows.

Michael Smith, President and CEO.

James Boyd, Vice President.

Personnel Plan 2000 2001 2002

Marketing and Sales $150,000 $198,000 $254,000
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Technical Services $150,000 $198,000 $254,000

Accounting $60,000 $99,000 $136,000
Administrative and HR $120,000 $132,000 $194,000
Total People 15 18 22

6 - Financial Plan:

6.1 Funding Requirements and Uses

The company is raising significant new investment for the purpose of growth and operations.
This funding will cover operating expenses and product development during this period.

Important Assumptions

The company operates as a Virginia Corporation. The following financial projection is based
on sales volume at the levels described in the revenue section and presents, to the best of
management's knowledge and belief, the company's expected assets, liabilities,
capital, revenues, and expenses. The projections reflect management's judgement of the
expected conditions and its expected course of action given the hypothetical assumptions.

The table below provides significant assumptions that drive the company's financial
projections.

General Assumptions 2000 2001 2002

Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest 10.00% 10.00% 10.00%
Rate
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0

6.2 Break-even Analysis

The following chart and table provide the Break-even Assumptions for Web Services
Provider.
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7 - Appendix:
Sales Forecast;
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
All Services $125,000 $125,000 $125,000 $125,00 $125,000 $125,000 $125,000 $125,000 $125,00 $125,000 $125,000 $125,
0 0 000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $125,000 $125,000 $125,000 $125,00 $125,000 $125,000 $125,000 $125,000 $125,00 $125,000 $125,000 $125,
0 0 000
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
All Services $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,33
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Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,33
of Sales 7

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