Be4em - Medical Application

Business Plan

MAY 6th, 2018

Cairo

1
Creating an extensive business plan is unnecessary for most businesses to get started. Keep it short when
you are getting started. You don’t have time to write a 50-page document and no one wants to read it
either. However, the exercise of creating a business plan offers you several benefits that more than
outweigh the investment of time:

 The process of thinking and writing the plan provides clarity to your business
 If capital is needed from beyond your savings, investors want to see a plan that demonstrates a solid
understanding and vision for your business
 The plan will help you to prioritize the tasks that are most important
 With growth, the plan offers a common understanding of the vision to new leaders
 It is something you should continually review and update over time

A simple business plan for a product or service company that is just forming, can be completed rather
quickly. Write it simply keeping in mind who the audience might be. It needs to be understandable,
readable, and realistic.

This template is organized into seven sub-plans or sections to be completed. It is recommended to

complete the Executive Summary last once the other sections have been completed. As you move from
the Company Overview to the Financial Plan, the writing should tell the story of your motivation, your
vision, why you will be successful, how you will achieve success, and how you will measure it.

It will be important to keep your plan up to date so you can see your progress, celebrate success, and
adjust where you missed the mark. This is best done on a quarterly, if not monthly basis.

2
EXECUTIVE SUMMARY
The Executive Summary should be written last after you have finished the remainder of the plan. It is an
overview (no more than one page long) of your business including the problem you think you aim to solve,
why your solution is different, your ideal customer, and the expected results. You should provide a high-
level and optimistic description of your company.

If you are seeking investment, include how much you want, where you will put it to use and how it will
make the business more profitable.

Think of this as the first thing a potential investor reads so it must capture their interest in the first five
minutes.

You may choose to organize it using some of the headings below.

 Opportunity: What problem are you going to solve?

 Mission: Identify what the company aims to do for customers, employees and owners.

 Your Solution: How will your product or service uniquely solve the problem identified?

 Market Focus: What market and ideal customers will you target?

 Expected Returns: What are the key milestones for revenue, profits, and customers?

3
COMPANY OVERVIEW
Be Group for Digital Solutions was established in 2009, showed a fast growing performance in the field
digital marketing and development. Company’s owners are planning to develop new application to
connect between digital and medical industry.

With over 10 years of management experience in the digital marketing, company’s owners are requesting
an investment to start its own new business, called Medical Application. The climate for a successful
integrated digital-medical business is perfect. Last year, the number of new applications increased by 45%.
Just last quarter, 2 new medical applications were established and gained up to 15% Egyptian medicine
market share over last year. We plan to reach them with focused marketing.

In addition, company’s owners have good working relationships with medical industry, that have indicated
they will refer its medical application to pharmaceutical companies. Two of our six local competitors have
already more than 9% market share, though they lack its marketing and management expertise. The
company is investing 1 Million L.E. from its savings, and requesting 9 Million L.E. investments from
investors. It guarantees three years to gain net profit sharing, using the cash flow of the business. Its
secondary source of repayment will be from making business partners.

Company History: Established in 2009 by 2 partners with a small office offering a digital marketing
solutions and management in Egyptian market which was a promising market and still. From 2009 to 2015
the company showed an incredible increase, performance and achievements by reaching up and pushing
the limits of its resources to double yearly its calibers, staff, sales, profits and products. From 2015 till the
end of 2018, managed to gradually increase in profits and services and also by obtaining a large market
share even with the outstanding competition in the market and finally became on the biggest 4 companies
nowadays in digital marketing business. Not only that but also it managed to attract new and best calibers
in the market, also became a Google-partner company form 2013 till now to be the oldest Egyptian
company that still maintaining its partnership with Google.

Furthermore, it offers a huge set of products such as: web design, mobile application, SEO, digital media
production, AdWords (Google-partner service), social media management and advertisement for
(Facebook, Instagram, Twitter, YouTube and LinkedIn), also digital marketing consultation.

Through its successful journey, it honorably offers its services and products to (DHL, Toyota, RadioShack,
Sarreguemines, PELICAN, Whity, BreadTalk, New Horizons, Siwa Water, Al-Ameen Accounting, Ministry of
Education of Egypt and Ministry of Municipal and Rural Affairs of Saudi Arabia, and etc...).

4
 Company Summary: Be Group for Digital Solutions has over 10 years of management experience in
digital marketing and development. It has more than 120 calibers to establish a new digital-medical
business that aims to gain more than 10% of medicines and drugs industry share by the end of 2022,
through developing an outstanding and massive network of pharmacies up to 1500 pharmacies and
pharmaceutical companies within 12 months.
 Mission Statement: Aims to develop new medical delivery application to serve more than 100 Million
Egyptians with extra benefits and offers.
 Markets and Products: According to statistics of Egyptian medicine market, there is a lack of
medicines itself and medicine delivery service. The new digital-medical application offers more than
service, it will be a market leader through a new set of features that allows user to simply search and
find the unavailable exact medicine and its alternatives through a huge database.
 Legal Structure and Ownership: A corporation structure consists of a CEO, an executive manager, a
board of directors and calibers who have already more than 10 years of experience in digital solutions
business. The stockholder is Be Group for Digital Solutions.
 Locations and Facilities The company expanded its business and achievements by opening new offices
in October City 2013, Maadi 2015, its main office Heliopolis 2016 and El-Haram 2017, also managed
to open new two branches in Kingdom of Saudi Arabia 2014 and finally in Canada 2018. After one
year of new business, it plans to expand more and open another office for the call center of its medical
application and a medical representative office for future integrated services.
 Management Team: Bassam Salah (founder), MBA international trade, chairman and the head of the
high-board management team, started his career life 10 years ago with his partners Ahmed Salah
(founder), vice chairman and one of the high-board member, and Hussein Hosny (co-founder), vice
chairman and one of the high-board member, they also own and manage 2 companies beside Be
Group for digital solutions which are Prime Italy and GBS.
Ahmed Salah is the general manager of October branch, Hussein Hosny is the sales director of main
office, Ahmed Osama is the HR consultant, Mohamed Badr is the executive manager and Hazem Ali is
the general manager of Kingdom of Saudi Arabia branch.
The next 3 figures show the organizational charts of Be Group company, also to be considered that
every name mentioned in it is a partner and a high-board member.

5
 Bassam Salah
Chairman
Head of High-board

Hussein Hosny Ahmed Salah

Vice Chairman Vice Chairman
Sales Director GM October Branch

Ahmed Osama Mohamed Badr Hazem Ali

Fincance Manager Media Manager
HR Consultant Exeutive Manager GM KSA Branch

Accounting Manager

Hussein Honsy
Sales Director

Mohamed Saady Wael Abdel-Salam Amr Nasr

Maadi Sales Manager Heliopolis Sales Manager El-Haram Sales Manager

Mohamed Badr
Executive Manager

IT Legal Manager Software Digital Art Director SEO Manager

Business Unit Marketing
Manager Manager

Social Media Google Family

Manager Manager

6
PRODUCT DESCRIPTION
According to statistics, Egypt is one of the biggest markets in medicines, cosmetics and pharmaceutical
industry, has over 20 pharmaceutical companies that produces over 12,000 medicines and drugs, not only
that but also cosmetics sector’s sales in local market reaches over than 44 Billion L.E. every year and
gradually increases.

One the other hand, Egyptians find it difficult to get a particular medicine which may be rare and exists
only in a few cities all over Egypt. But with the help of this application that saves time and effort can
search, find and order though a massive database with only a 2 steps by any smartphone user.

This application and its delivery service allows user to order 24 hours per day and user can receive the
ordered packages free of charge immediately from nearest pharmacy located in the area, also receives
points which can be used in the ordering process to buy through application. Moreover, each user has 2
payment options (Doorstep Payment or Credit/Debit Cards) which can be selected once from application
menu and it can be changed later.

 Opportunity: According to statistics of the Egyptian market mentioned above, it shows this market is
a consumer market. Not only in food and fast moving items but also in medicines, drugs, supplements
and cosmetics. Specially the one who in need of medicines in midnights for the young siblings and
new comers.
 Product Overview: Simply used to find and order medicines, drugs, supplements and cosmetics in 2
steps by writing or selecting product name from different categories and scanning or uploading the
patient’s prescription, offers also promotions and points system to make the online purchasing
experience more reliable and consistence with the user needs. Also contains advanced features for
medical history to make the user’s life easier than before such as (blood pressure record, timing
reminder for medicines and drugs, calling ambulance for emergency cases form the nearest hospital
located in the area, medical reports, daily reports of the health conditions and how to maintain the
standard life health through related informative topics and etc.…).
 Key Participants: Pharmaceutical companies, hospitals, pharmacies, medical representatives,
programming team, design and motion graphics team, social media and SEO team, business
development unit and high-board managers and directors.
 Pricing: Offers a free application with free delivery service free of charge, promotions and offers each
user points for each single successful purchasing process.

7
 Basic Features:
1. Arabic and English languages.
2. Order in two steps.
3. Pictures of medicines, drugs, cosmetics and supplements are displayed for each item.
4. Contains categories and subcategories for every section specially for cosmetics.
5. Massive network specially with pharmaceutical companies.
6. Supermassive database for every single medicine, cosmetics and supplements.
7. Upload or scan your prescription.
8. Vouchers redemption.
9. Pharmacy directory.
10. Get your nearby pharmacy.
11. Rate and review your pharmacy after every purchasing process.
12. Recommend pharmacy.
13. Push notifications.
14. Re-order old orders from your history.
15. Call ambulance for emergency from nearest hospital in the located area.
16. Live support.
17. Call center.
 Advanced Features:
1. Drugs index with description in both languages.
2. Medicine description, indications, dosage and side effects.
3. Drugs reminder.
4. Blood pressure records
5. Historical records.
6. Genetic records
7. Medical reports.
8. Missing drug reports.
9. Case medicines and drugs that can be scheduled to be sent directly daily, weekly and monthly.
 Other Features:
1. Daily reports of health conditions.
2. Daily informative topics related for every case to maintain the patient’s life standard health.
3. Web version available to register as pharmacy and medical supplier.

8
 Technical Specification and Description: Pharmacy Delivery Application is a user-friendly app
enabling user to easily order any medicine online from your nearest pharmacy and get it immediately
delivered to your doorstep. user can do that by searching through a comprehensive, up-to-date,
online medical database or leave it up to the experts to decipher that hand-written prescription by
simply uploading images of your paper prescription or even medicine packaging. Also can receive
medical e-prescriptions from your doctor after visiting their clinic or hospital.
As for the cherry on top: this application even links up to your insurance provider online!
If your insurance provider is part of our partner network, we will submit a claim on your behalf every
time you order an eligible drug from our online medical store. Once your claim is approved, we send
your order immediately to the nearest pharmacy for pickup or delivery for a hassle-free ordering
experience. No more filing those annoying insurance claim papers!
 First Time Use: User can choose the option to link the application with Facebook or Gmail account or
just by signing up. Moreover, the application will ask for permissions (identity, contacts, camera,
media files (pictures), microphone, location, storage, network connection and phone call)
 Signing Up Process: User can register using (full name, e-mail, mobile number, gender, birth date
password) and must accept the conditions and terms. A short message is sent to the mobile number
that user entered contains the verification code. After registration, a guide tour appears to show a
new user how to use the application.
 Payment Method: User can choose between (doorstep payment when the delivery package arrives
or adding Credit/Debit card), also it can be changed later.
 Setting Up Address: User has to use auto locate service provided through Google Maps and also fill
(street, building, floor, apartment, landmark, delivery instructions and choose the area) only one time.
 Making an Order: User can order by writing the product name. If not possible, user can upload an e-
prescription or scan papered prescription. After choosing the suitable order type, user can choose a
pharmacy that appears in the pharmacies list located in the same area or can let the application search
and find for the nearest pharmacy, then check the medical cart and finally he has to confirm the order
to be processed.
 Swipe to View the Main Menu: Main menu contains a set of tabs (order now, promotions, profile,
addresses, order history, pervious uploads, medical cart, call ambulance, application settings, share
application, contact us and about us).

9
MARKET ANALYSIS
Business Type: Software development, aims to ease the people’s life, saves their time and effort, reduces
worries and also maintains their standard life health through a well-developed and smart-integrated
medical mobile application.

Market Segmentation: According to international statistics of smartphone users number in Egypt is about
61.8 Million and expected to reach almost 65 Million by the end of 2018, also global medicine spending
distribution is expected to reach 65% for the developing countries share by the end of 2022. Moreover,
Ministry of Health of Egypt observes that over 40% of Egyptians need medicines daily which affects the
increase of medicine industry and scored 51.6 Billion L.E. Furthermore, only 20 pharmaceutical companies
who control over more than 62.4% of the medicine overall sales.

Overall Target Market Statistics

13%

48%

39%

TAM SAM Market Segment

 Total Available Market (TAM): All over Egypt which around 100 Million Egyptians through almost
65,000 pharmacies and over 200 medicine factory.
 Serviceable Available Market (SAM): Lower Egypt population which around 67 Million Egyptians and
after a year of business operation, upper Egypt will be covered and expected to reach almost 81
Million Egyptian, also the company will do its best to include the very far places in Egypt.
 Market Segments: All smartphone users who usually handle all kind of smartphone operations though
using different applications specially pharmacist and well-educated people whose age vary between
14 to 60 years with all genders.

10
Competitive Analysis

 Direct Competitors: 6 competitors are Yodawi, Belshifa, ELRoshetta, Dawaia.com, Roshetta App and iPharma but this analysis focuses on the
3 top medical service applications, also the big pharmacies chains that controls and monopolize the Egyptian market.
 Status Quo: Start programming and developing the new medical application as soon as possible using the ultimate available resources and
calibers with the aid of the medical industry relationships and the marketing distribution channels.
 Uniqueness: A smart integration service with the existing pharmaceutical companies, pharmacies, hospitals and medical insurance companies
all over Egypt which allows users to link all of his medical reports and records, offers them a great and outstanding medical experience by
getting rid of the papers era as all their data are stored on the application which can be accessed anytime through the case doctors in hospital
or scheduling medicine orders from the nearest pharmacy on an exact date weekly or month. Also every order from the application allows
users to get back around 5% from their total order price as points which used to buy medicines, supplements and cosmetics within a limited
time period through their collected points of every purchasing order.

Competitive Analysis
Importance to
Factor Be App Yodawi Belshifa ELRoshetta
Customer
Android Yes Yes Yes Yes 1
Android Application Size Less than 15 MB 19.96 MB 13.67 MB 9 MB 3
iOS Yes Yes Yes No 1
iOS Application Size 45 MB to 70 MB 45.3 MB 77.4 MB N/A 3
Web Application Yes Yes Yes No 2
Usage Simple and Easy to Use A bit Difficult Average Simple and Easy to Use 2
Medical Cart Yes Yes No No 1
Insurance Companies Yes Yes No No 2
Price Free Free Free Free 1
Poor
Pharmacies Network Huge Huge Large 1
Heliopolis and Nasr City Only
Delivery Service Excellent Excellent Excellent Excellent 1
Call Center Service Excellent Very Good Very Good Excellent 1
Medicine, Cosmetics and Medicine, Cosmetics and Medicine, Cosmetics and
Products Medicine, Cosmetics and Supplements 2
Supplements Supplements Supplements
Categories Yes and Subcategories Yes and Subcategories No No 2
Payment Method Doorstep and Credit Cards Doorstep Doorstep Doorstep 2
(1 = Critical, 2 = Not Critical but Important, 3 = Not Critical and Not Important)

11
Competitors Applications Review

Competitive Analysis
Application Pros Cons

Outstanding features and categories specially for each sections.

Available only in English.
Massive database contains all kind of medicines, cosmetics and
supplements
Some pictures of medicines, cosmetics and supplements are not displayed when
making an order.
Friendly user interface.
Yodawi
With its all products and categories doesn’t contain a filter which became a busy
Smooth animation specially in user interface.
application.
Contains a great number of pharmacies in the around area.
Doesn’t exist all around Egypt.
Share through what’s app which is very useful.
Easy to use and also can be more efficient in emergency cases.

Creative user interface.

Pictures of medicines, cosmetics and supplements are not displayed when
making an order.
Belshifa Smooth animation specially in user interface.
Available only in Greater Cairo, Alex and Tanta.
Contains a great number of pharmacies in the around area.

Call ambulance also available.

Outstanding super responses from pharmacies and call center.
There is no picture with the medicine which can be interrupted with another
Easy to use and also can be more efficient in emergency cases.
medicine.
ELRoshetta Super simple application.
There is no way to know where is the delivery man.
Contains the biggest drug index in Egypt.
Doesn’t exist all around Egypt, only in Heliopolis and Nasr City.
Every order has discount and free of charge on delivery service.

12
SWOT Analysis

SWOT Analysis
Strengths Weaknesses

Be Group is one of the biggest 4 companies which dominates a large market share,
has also

Be Group has strong geographical locations in Greater Cairo.

Be Group is a competitive organization, also has strong ethical values and ethical
mission statement.
Be Group has a reputation for new product
Be Group has its own resources and products. development and creativity. However, it
remains vulnerable to the possibility that its
Existence of 120 Be Group calibers planning efforts who offer several solutions. innovation may falter over time.

Experienced workforce dedicated to mission statement. Be Group does have a diversified range of digital marketing products. However, the
income of the business is still heavily dependent upon its share of the digital market.
Be Group has an outstanding medical relationships and community partners. This may leave it vulnerable if for any reason its market share erodes.

Be Group has 10 years of digital marketing and management experience. Failure to communicate formally and
informally, both cross-functionally and
Proactive management team. within departments.

High quality, well-oriented and well-designed marketing campaigns for the new Not sufficient continual evaluation and updating of
application. human resources practices and policies.

The application offers a set of new features, includes high technology and smart Some missed deadlines and a lot of work on pending.
integration system and fair rewarding point system.
Uniformity across divisions.
Keeping costs of the application products below that of competitors.
Lack of professional identification.

Free application with free of charge delivery services, alongside high quality medical
services proportional to the international health standards.

Assets and sufficient funds are available to run the application through the longest
period of time without struggling.

13
 Opportunities
Be Group has the opportunity to expand its local and global operations through the
medical services and products.
Advanced technologies are available to foster more effective programming
activities.
Availability of information about best practices in the medical industry and
pharmacies chains.
Customers’ increasing knowledge about what they want in medical, cosmetics and
supplements sections.
Customers’ mindsets and mentality are oriented to order anything and it will arrive
on doorstep.
There are more than 1,6 million prescriptions are issued monthly.
High demand for medicines by the end of 2022, according to World Health
Organization which stated that more than 60% of the Egyptian patients will be
chronic diseases patients.
January 2018, the Egyptian parliament confirmed the law of medical insurance
which already allowed more than 50% medicines that only issued by the insurance
pharmacies to be handled and sold by the 3rd party pharmacies which indicated a
huge and massive demand by the end of 2022.
Increased community responsibility for delivery service.
A lot of planning going on and need to integrate all the medical services in Egypt.
Implementing artificial intelligence, machine learning and big data which offer a
great and incredible medical service experience, also to produce e-commerce
platform which supports medicine industry exists in the Egyptian market.
The new business is targeting All smartphone users who usually handle all kind of
smartphone operations though using different applications specially pharmacist and
well-educated people whose age vary between 14 to 60 years with all genders.
14
Threats
Law constraints imposed by the legislature on the medical industry specially the
pharmacists and pharmaceutical companies.
Changing of the international medical industry politics which affects the lack of
medicines in the Egyptian market.
A downturn in the economy and less spending budget on the medical industry.
The strong relationship with competitors with market leaders, government entities
and insurance companies.
Big pharmacies chains which called market leaders refused to integrate their services
which control medicine industry, the imported rare medicines and starting their own
application with the same feature.
Design of cost-effective services which don't meet user needs
Cost of and lack of accessible health care.
Causes of losing sales and network with the pharmacies and medical industry.
Security and privacy hacking, servers are downed and all the database were retrieved.
Lack of technology providers.
Lack and shortage of the pharmacies’ delivery services
A lot of competitors in the market with similar products, also the Egyptian market is
very competitive.
A new marketing campaign launched by competitors.
A competitor launched new features.
Staff turnover.
OPERATIONAL PLAN
Furthermore, you need to outline how you currently and will continue to develop and maintain a loyal
customer base. This will include management responsibilities with dates and budgets, and to make sure
results can be tracked. What are the envisioned phases for future growth and the capabilities that need
to be in place to realize growth?

The operating plan describes how your business works. Depending on the type of business you have,
important elements of this plan should include how you bring products or services to market and how you
support customers. It’s the logistics, technology, and basic blocking and tackling of your business.
Depending on the type of business you are starting, you may or may not need the following sections. Only
include what you need and remove everything else. Remember, try to keep your business plan as short
as possible, so too much detail here could easily make your plan much too long.

 Sourcing and Order Fulfillment: Based on the type of business you operate, describe if you are buying
finished products or components from vendors and include details on how these are delivered and
the contracts in place to acquire them. Also, describe your company’s procedures for delivering
products or services to your customers. If inventory of goods is an important part to your company’s
success, be sure to include a review of how you store, manage, and track key items.
 Payment: Describe your standard payment terms and the payment methods you accept. Describe the
pricing plans (one-time fixed, recurring, mixture, or other) and any impact on cash flow.
 Technology: If technology is critical to your business, whether it is part of the product offering or is
fundamental to delivering a product or service, describe the key technologies use that are proprietary.
If your business data (company or customer) might be at risk, describe the data security plan in place,
as well as any backup or recovery in the case of a disaster or outage.
 Key Customers: Identify any customers that are important to the success of your business, whether
because of a partnership, volume, or pathway to a new market. It might also be important to identify
any customers with more than 10% of revenues for your company.
 Key Employees and Organization: Describe any unique skills or experiences that are required of your
current team. If important, describe any proprietary recruiting or training processes in place. List any
key employees for success. Include any organization chart that would support this section.
 Facilities: Depending on the type of business, you may have leased, owned or shared business
premises. Provide a listing of them, their purpose and future plans for facilities.

15
MARKETING PLAN
Marketing Strategy

Company’s strategy is focus, involves focusing on all over Egypt specially the new cities in Greater Cairo,
also focuses on its area of expertise as we are true experts in introducing new products through the 10
years of digital marketing and management experience through channels of distributions.

It will focus on three geographical markets in the first 3 months; Cairo, Giza and Alexandria as each
pharmacy covers its own area. Moreover, the target customer is usually all smartphone users who usually
handle all kind of smartphone operations though using different applications specially pharmacist and
well-educated people whose age vary between 14 to 60 years with all genders.

Furthermore, leading the Egyptian market to a different era of medical services with an appropriate
technology and features, getting rid of the traditional and old-fashioned experience and also inspiring the
Egyptian people to request and modify the existing services to keep up and follow their needs.

 Strategic Objectives:
1. The biggest market share.
2. Quicker design-to-market times than rivals.
3. Lower costs relative to key competitors.
4. Broader or more attractive features than rivals.
5. A stronger reputation with customers than rivals.
6. Superior customer service.
7. Recognition as a leader in technology innovation.
8. Wider geographic locations coverage than rivals.
9. Higher levels of customer satisfaction than rivals.
10. Create and launch new features monthly.
11. Explore new market and customer segments.
12. Improve pharmacies’ owner relationships.
13. Expand sales to existing customers by using the reward point system.
14. Maintain all products and services to meet standard of excellence guidelines.
15. Execute and maintain a CRM process that is producing results
16. Develop and implement a promotional plan to drive increased business.
17. Establish one new strategic alliance annually.

16
 Marketing Objectives:
1. Increase the medical application awareness among the target audience by 30% in the first
year, and became the market leader by the end of the first year of launching life-cycle.
2. Inform the target audience about features and benefits of the application, also its competitive
advantages and its smart-integration services leading to increase in profit.
3. High impact experiential to break through the competitive clutter and high frequency
response tactics.
4. Build an effective and operational user database of at least 100,000 users and establish one
the best pharmacies networks in Egypt within the first 12 months.
5. Attract users to install the application and reach the first milestones of installations around
20,000 users in the first three months, and reaching 100,000 installations in the first year.
6. Increase our user retention to reach 90% monthly.
7. Maintain high traffics on social media and website, also develop well-designed and innovative
marketing campaigns which declaim our target audience of the health life standards.
8. Make advantage of medicine, drugs, cosmetics and supplements descriptions by making short
videos about each product alongside selling its videos to pharmaceutical companies.
9. Aim to gain more than 10% of the medicine, cosmetics and supplements industry of market
share by the end of 2020.
 Financial Objectives:
1. Obtain financing to open a new headquarter for the new sister company, continue developing
the application and increase the company distribution channels.
2. Wider profit margins and bigger cash flows.
3. Higher returns on invested capital.
4. Attractive and sustainable increases in market value added (MVA).
5. A more diversified revenue base.
6. Aim to achieve a 75% closing rate within three months’ time period.
7. Aim to have 50 Million sales in first year, 75 Million second year and 150 Million third year.
8. Achieve revenues by at least 50% each month in our first year.
9. Achieve net profit which equals to company’s expenses during its new business operation in
one year.
10. Grow shareholder values and earnings per share.
11. Manage appropriate financial leverage, ensure financial sustainability and obtain profitability.

17
Marketing Mix

 Product Strategy: The company offers a high quality, high-end and smart-integrated mobile
application that offers a lot of features which allow each user to search, find and buy medicines, drugs,
cosmetics and supplements in two simple steps and allow users to upload or scan prescriptions,
search for specific products through a huge database from the nearest pharmacy located in the area.
Over the next 3 years, the company plans to offer new medical insurance and medical purchasing
packages starting from 1000 L.E. to the public, getting rid of traditional and old-fashioned services and
methods, and changing the medical services identification.
 Distribution Strategy: Currently, the new application is marketed through Be Group for Marketing
Solutions company such as (SEO, social media, digital and media productions, etc…) using its ultimate
resource and workforce to achieve its strategic, marketing and financial objectives. Over the next 3
years, the new application company seeks to expand through the medical entities like hospitals, clinics
and pharmaceutical companies to be a part of its medical system in day to day usage. Regardless of
its expansion plan, the new company intends to monitor and maintain its strong relationships with its
distribution channels.
 Promotional Strategy: The new application’s company communicates with customers and medical
industry, also giving information and advices about the new application via the internet, direct
mailings, in person selling, media production, social media, TV and radio advertising and online
feedbacks. The firms’ promotional efforts also seek to differentiate our services and features from
those of its competitors. The company relies on personal contact with medical companies to establish
the application. This contact helps convey the company's message, demonstrate the market with its
unique services and build new relationships. Moreover, sales representatives visit each
pharmaceutical companies and pharmacies two or three times a month and offer training on the
features of the application for new users or for those who want a refresher. As distribution expands,
the company will adjust to meet greater demand by increasing sales staff, improving its call center
quality and its monthly and yearly promotional offers.
 Pricing Strategy: The company offers the new application without any fees for installation whether
on Google Play Store or App Store, introduces in-app purchasing services which are medical insurance
and medical packages starting from 1000 L.E entry package for 1150 L.E. price value and ensures
discounts and fair rewarding point system for each successful purchasing order through the mobile
application.

18
Marketing Image

 Name: Getting customers to remember your name is a mighty hurdle! Think about standing out. If
you repair computers, The Mouse Trap is a better choice than JB computer repair.
 Logo: The symbol or type treatment that represents your business should be memorable. choose
colors and use them consistently. Your logo belongs everywhere, from business cards to signage to
emails, and it can be used, unchanged, for years.
 Tagline: Your company tagline should be short, catchy and, in some cases, functional. If your company
is called Ocean State Restoration, it’s unclear what you restore. So a tagline like “New Life for Old
Boats” serves an important purpose. Your logo and tagline should be inseparable.
 Printed Material: If it’s on paper, it matters. Ads, direct mail and brochures represent your image, so
never compromise when it comes to being sure they look polished and professional. Even emails,
invoices and letters to your customers should be given attention.

Marketing Channels, Tactics and Activities

 Display Advertising: A program of display advertising has been chosen to increase application
awareness services and features.
The KPIs for our display advertising are:
o Click-through rate on display ads.
o Conversion to sale directly attributable to display ads.
o Traffic to the website and installation through Google Play Store and App Store.
With a limited budget of 10 Million L.E., we have to make our media pounds go further so we suggest
a series of highly targeted ads, both in content and impressions.
With the help of Google partnership, should venture into Google’s AdWords, AdSense, Search and
Display Networks. We would catch consumers as they search medicines delivery services, targeting
those who have a high propensity to buy. The best performing creative in terms of CTR would be
served over the less well performing ads. Appearing on Google’s AdWords, AdSense, Search and
Display Networks would be a pure application awareness exercise, contributing towards the
acquisition and marketing objectives.
With the help of Media Production division, we have the ability to advertise our promotional videos
on TV and radio campaigns, newspapers and magazines ads and outdoor billboards campaigns.
With the help of Sales division, we can put our fixed company’s signage on the pharmacies which
already joined our application network.

19
 On Spot and Events: Offers a chance to meet customers and introduce medical services of the
application before launching the application by a month, which gets leads and getting negative and
positive feedbacks. Networking with others in the medical industry and sharing information can
uncover unexpected insights and connections. Also offers a chance to contribute in medical events
and conferences which leads to increase the application awareness. With the synchronization of the
application launching and marketing campaigns, the company plans to establish an application booth
inside the high-traffic hospitals with the help of well-trained and talented doctors who already familiar
with the application technicalities and also making an introduction tour to customers inside hospitals.
 Paid Search (PPC): PPC, besides being an essential part of search marketing, has fantastic benefits for
any search marketing campaign, also paid search is highly trackable and the best digital marketing
channel for being able to measure ROI. Research has shown that “visitors coming to online websites
from a paid search ad are 50% more than visitors coming from an organic search result.
Our PPC KPIs are:
o Traffic to site from PPC ads.
o E-mail acquisition directly attributable to PPC ads.
o Cost per lead.
o Cost per sale.
o ROI.
 E-Mails and SMS Marketing: E-mail and SMS Marketing is an invaluable tool that the company has
yet to take advantage of. Surveys have shown that for companies that are aware of their ROI from e-
mail and SMS campaigns, the average ROI is 300% or more and can range to up to 500% and “73% of
people said they would make an online purchase as a result of receiving an e-mail or SMS offer”.
Regular e-mails and SMS will increase customer engagement with the company's application and will
increase positive word-of-mouth, which is one of the highest and most efficient sales channels.
Promo codes should be used with the SMS and e-mail offers to properly track sales attributable to
these channels.
Our KPIs for E-mail and SMS Marketing are:

o Size of the database.

o E-mail and SMS openings.
o CTR.
o Unsubscribe rate.
o Number of used and activated promo codes.

20
 Search Engine Optimization (SEO): The power of SEO cannot be underestimated. Even thinking of our
own search habits, it’s not surprising that Google's 2017 Search Attitudes Report found that 91% of
people polled prefer using natural search results when looking to buy a product or service online.
The new company should continue its investment with its specialist Be Group for Digital Solutions to
help give steer and advise on technical aspects of the website for improvement.
Our KPIs for SEO are:

o Traffic to site from search engines.

o Keyword traffic share.
o Search engine ranking for keywords appearing in display ads.
Optimized Keywords

We can optimize our new application's website for brand terms and names (L’Oréal, Clear, etc....), this
tactic means that the application's website will reach only those consumers who are closer to making
a purchase, but we are missing out on those consumers who are earlier in the search process. With
our application's unique price proposition, these consumers in the early, comparing stage of
purchasing could prove to be a lucrative market.

There is potential to optimize for more generic terms such as “discount name brand medicine or
cosmetic”. This keyword is currently not optimized by our competitors. There is room for the company
to capitalize on the absence of rivals.

Optimized Landing Pages

The homepage of the application's website is HTML, CSS, Java Script, React and Ruby dominated with
its use of inspiring imagery. We don’t want to lose the inspirational aspect of the homepage but this
design does mean the lack of text and links will make the homepage difficult to optimize. The best
tactic to counteract this would be to optimize the subpages of the website. Doing a quick search on
Google for “discount medicine or product name”, the website does not appear in the first 3 pages of
natural search results, nor in the PPC results. There is room for improvement here.

 Social Media Strategy: We are going to use social media to increase the application and medical
awareness, customer engagement and better application's reputation. As a low-cost option and
because the account is already set up, we’ll focus on Facebook, Twitter, Instagram and YouTube as
our prime activities in the social media sphere. We’ll also develop an onsite rating and review

21
capability so that consumers can interact on the website itself. Secondary attention will be paid to
Google Alerts.
Our KPIs for Social Media are:
o Likes and engagement on Facebook's page, posts and videos' view hits.
o Followers and engagement on Twitter.
o Followers on Instagram and videos' view hits.
o Uptake of onsite ratings and reviews.
o Google Alerts.
Facebook

Investing in paid ads on Facebook through promoted and boosted posts include photos and videos
posts which are widely used and flexible. Furthermore, daily postings every 1 hour or less and posting
FAQs section for how to use the application with its limited offers. Promoting our YouTube animation
introduction videos, weekly news and events participation. Besides, it is easier to aim at target
audience and measure the effectiveness of an ad. Also we are targeting to gain almost 50,000 installs
in the first year. Moreover, verifying our Facebook fan page at the beginning of launching application.

KPIs are:

o Likes – Number of fans that grow gradually per day.

o Results – Number of website clicks, or impressions, based on your objective.
o Reach – Number of people the ad reached.
o Frequency – Average number of times that each ad viewer viewed ads.
o Clicks – Number of clicks on ads.
o CTR – Number of clicks on ads over the number of times your ads were served.
o Comments, likes and messages received.
Twitter

Resource must be dedicated to tweeting at least every 5 hours to make it relevant. If possible, the
same person should be tasked with this to maintain the tone of voice and be available to answer
inquiries should consumers post them. Also using a promoted account and targeting by keywords,
followers, interests and our database. These are key to increasing customer engagement with the
application. This is also a great touch point with our web-savvy bargain hunters and aspirational
shoppers.

22
KPIs are:

o Followers – Number of followers that grow gradually per day.

o Impressions – Number of views of ads.
o Tweet engagements – Number of clicks, retweets, or favorites made on ads.
o Engagement rate – Number of Tweet engagements over number of impressions.
o Most engaged hashtags.
Instagram

According to the Instagram statistics, more than a million active users daily and the most frequent
users of Instagram are women between 18-29 and 13 percent of all social media users.
One of the best photo sharing social networks, a great way for companies to market themselves in a
low-cost and high quality environment that is highly targeted within consumers and competitively
advantageous. Also, becoming more effective as a tool for Search Engine Optimizing and the
popularity of them is highly increasing. There is 65 percent of the world’s top 100 brands that have
Instagram accounts and 57 percent of them are active and post pictures or videos at least once a
week. Our marketing campaigns must highlight our application that uses Instagram not as a sales
promotion tools but as an opportunity to show the applications with its services and the company
behind-the-scenes. We are targeting to reach 15,000 followers in our first year.

KPIs are:

o Engagement per followers.

o Most engaged hashtags.
o Reach and impressions.
o Taps back, taps forward and exit rate.
o Total social action per post or story.
o Click-through rate.
YouTube

One of the most powerful area of expertise through the 10 years of media production services.
YouTube is the second largest search engine with over one Billion unique users and visitors per month
which can’t be ignored. We are aiming to produce 2 introduction animation videos which will be
promoted in the first 3 months across YouTube Egypt and around 1,000 videos of medical application
services and pharmaceutical companies’ new products with the help of sales division, also we could

23
offer a benefit package for each pharmaceutical company to create a description video of its new
products and also promotional time period for its products inside our application’s promotion service.
We are targeting to reach more than 50,000 application’s installs in our first year.

KPIs are:

o Views.
o Subscribers.
o Drop-off point.
o Likes, dislikes and favorites.
o Comments and shares.
o Application mentions and search trends.
Onsite Ratings and Reviews

An easy way to increase customer interaction with the application and lend weight to online
reputation is to create an onsite ratings and review functionality on the application's website.
Research shows that “more than half of online customers say reviews are extremely or very important
in making an online purchase, and more than half say they have more trust and respect for brands,
services and applications that show product reviews”. On top of this, “65% of consumers read reviews
‘all’ or ‘most of’ the time. Of these users, 76% were more likely to shop on a website that offered user
reviews”. This could really give our website a leading edge on the market. If there is a concern about
the effect of negative reviews, “88% of Egyptian consumers gave ratings of 4 or 5 stars out of 5”.

Google Alerts

Google employs one of the easiest social media tracking methodologies known as Alerts. Available to
individual and business users, and accessible for free, Google Alerts certainly counts as one of today’s
leading social intelligence systems. All we need to do is to enter a search term or event, and we will
have alerts sent to our email in real time. The service is, of course, accessible only to Gmail users.
Google Alert’s core function is web monitoring. We can also use it to monitor relevant discussions,
YouTube videos, or mentions on news websites. Instead of receiving alerts in real time. As expected,
the product works in synergy with all GSuite products. Also, the system is web-based which can be
hosted in could and easy to use. Moreover, it contains a very large user community, partners and
contributors.

24
 Web Analytics and Onsite Conversion: Web analytics can be an invaluable tool for increasing onsite
conversion and lend insight to customer behavior and help with attribution modeling.
KPIs for web analytics:
o Onsite conversion rates.
o Attribution Modeling.
o Improving customer journey.
Many companies use both free and paid platforms for their web analytics to get more precise metrics,
with the free tool Google Analytics should be sufficient for our analytical needs.
Google Analytics can help with 4 aspects of the site:
o Website design – We can gain insight into the customer’s online journey by examining dwell
time, pages with most visits and views, clicks on a page and exit pages.
o Onsite conversion – By using funnel analysis, we can see at which point customers are
dropping off in the buying process and adjust site using customer journey insights.
o Attribution modeling – We can examine entry pages and referrers and, by linking up the PPC,
AdWords and AdSense, e-mail and social media campaigns with the website analytics, we will
be able to track the biggest traffic generators, e-mail acquisitions and sales converters.
o General reporting – Google Analytics will give us high-level traffic figures to help with our KPIs.

25
FINANCIAL PLAN
Creating a financial plan is where all of the business planning comes together. Up to this point you have
identified the target market and target customers, along with pricing. These items along with your
assumptions, will help you estimate your sales forecast. The other side of the business will be what
expenses you expect to incur. This is important on an ongoing basis to see when you are profitable. It is
also important as you start your business, to know what expenses you will need to fund before customer
sales or the cash they generate is received.

At a minimum, this section should include your estimated Start-Up Costs and Projected Profit and Loss,
along with a summary of the assumptions you are making with these projections. Assumptions should
include initial and ongoing sales, along with the timing of these in flows.

 Projected Start-Up Costs: The table below shows a sample of ongoing and one-time cost items that
you might need to open your business. Many businesses are paid on credit over time and don’t have
cash coming in immediately. It is important to estimate when cash will begin to flow into the company
by making an assumption about how many months of recurring items, in addition to one-time
expense, you will have to fund out of savings or an initial investment. There is a blank table in the
Appendix for you to complete your own start-up cost projections.

26
START-UP COSTS
Your Coffee Shop January 1, 2018
COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST

Advertising/Marketing 3 $300 $2,000 $2,900

Employee Salaries 4 $3,500 $2 $14,002
Employee Payroll Taxes and Benefits 4 $500 $2,000 $4,000
Rent/Lease Payments/Utilities 4 $750 $3,000 $6,000
Postage/Shipping 1 $25 $25 $50
Communication/Telephone 4 $70 $280 $560
Computer Equipment $0 $1,500 $1,500
Computer Software $0 $300 $300
Insurance $0 $0 $0
Interest Expense $0 $0 $0
Bank Service Charges $0 $0 $0
Supplies $0 $0 $0
Travel & Entertainment $0 $0 $0
Equipment $0 $5,000 $5,000
Furniture & Fixtures $0 $0 $0
Leasehold Improvements $0 $0 $0
Security Deposit(s) $0 $0 $0
Business Licenses/Permits/Fees $0 $0 $0
Professional Services - Legal, Accounting $0 $1,500 $1,500
Consultant(s) $0 $0 $0
Inventory $0 $0 $0
Cash-On-Hand (Working Capital) $0 $4,000 $4,000
Miscellaneous $0 $1,000 $1,000
ESTIMATED START-UP BUDGET $40,812

27
 Projected Profit and Loss Model: The model below shows a sample of the projections a small business is forecasting for their first 12 months
of operations. The top portion of the table shows projected sales and gross profit. This is a good place to begin creating your sales forecast.
The next section itemizes the recurring expenses you are projecting for the same months. These should be consistent with the estimated start-
up costs you completed in the prior section. At the bottom of this model, you will begin to see when you are becoming profitable and what
expense items are the most impactful to your profitability. There is a blank table in the Appendix for you to complete your own start-up cost
projections.
START-UP COSTS
Your Coffee Shop January 1, 2018
REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Estimated Product Sales $5,000 $13,000 $16,000 $7,000 $14,500 $16,400 $22,500 $23,125 $24,549 $22,000 $25,000 $27,349 $216,423
Less Sales Returns &
$0 ($350) $0 ($206) ($234) $0 $0 ($280) ($1,200) ($1,600) $0 ($2,400) ($6,270)
Discounts
Service Revenue $0 $0 $0 $0 $0 $250 $350 $100 $0 $0 $1,245 $1,360 $3,305
Other Revenue $0 $0 $0 $0 $0 $0 $0 $1,500 $0 $0 $0 $0 $1,500
Net Sales $5,000 $12,650 $16,000 $6,794 $14,266 $16,650 $22,850 $24,445 $23,349 $20,400 $26,245 $26,309 $214,958
Cost of Goods Sold $2,000 $5,200 $6,400 $2,800 $5,800 $6,560 $9,000 $9,250 $9,820 $8,800 $10,000 $10,940 $86,569
Gross Profit $3,000 $7,450 $9,600 $3,994 $8,466 $10,090 $13,850 $15,195 $13,529 $11,600 $16,245 $15,369 $128,389

EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
Salaries & Wages $2,500 $2,500 $3,500 $5,000 $5,000 $5,000 $8,000 $9,000 $9,000 $9,000 $9,000 $9,000 $76,500
Marketing/Advertising $400 $450 $450 $450 $900 $900 $900 $900 $900 $900 $1,200 $1,200 $9,550
Sales Commissions $250 $650 $800 $350 $725 $820 $1,125 $1,156 $1,227 $1,100 $1,250 $1,367 $10,821
Rent $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $15,000
Utilities $250 $150 $200 $200 $200 $250 $250 $250 $200 $200 $250 $250 $2,650
Website Expenses $175 $175 $175 $175 $175 $175 $175 $175 $175 $175 $225 $225 $2,200
Internet/Phone $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $1,320
Insurance $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $165 $1,980
Travel $100 $0 $0 $250 $0 $0 $0 $0 $675 $800 $0 $0 $1,825
Legal/Accounting $1,200 $0 $0 $450 $0 $500 $0 $0 $0 $0 $0 $250 $2,400
Office Supplies $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Expenses $6,525 $5,575 $6,775 $8,525 $8,650 $9,295 $12,100 $13,131 $13,827 $13,825 $13,575 $13,942 $125,746
Income Before Taxes ($3,525) $1,875 $2,825 ($4,531) ($184) $795 $1,750 $2,064 ($298) ($2,225) $2,670 $1,427 $2,643
Income Tax Expense ($529) $281 $424 ($680) ($28) $119 $263 $310 ($45) ($334) $401 $214 $396

NET INCOME ($2,996) $1,594 $2,401 ($3,851) ($156) $676 $1,488 $1,754 ($253) ($1,891) $2,270 $1,213 $2,246

28
APPENDIX

START-UP COSTS

Your Coffee Shop January 1, 2018

COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST

Advertising/Marketing $0
Employee Salaries $0
Employee Payroll Taxes and Benefits $0
Rent/Lease Payments/Utilities $0
Postage/Shipping $0
Communication/Telephone $0
Computer Equipment $0
Computer Software $0
Insurance $0
Interest Expense $0
Bank Service Charges $0
Supplies $0
Travel & Entertainment $0
Equipment $0
Furniture & Fixtures $0
Leasehold Improvements $0
Security Deposit(s) $0
Business Licenses/Permits/Fees $0
Professional Services - Legal, Accounting $0
Consultant(s) $0
Inventory $0
Cash-On-Hand (Working Capital) $0
Miscellaneous $0

ESTIMATED START-UP BUDGET $0

29
INSTRUCTIONS FOR GETTING STARTED WITH ESTIMATED START-UP COSTS
Determining a business's startup costs is critical to ensure enough cash is available to begin business
operations within the budgeted time frame as well as within the cost budget. Startup costs typically fall
within two categories, monthly costs and one-time costs. Monthly costs cover costs that occur each
month during the startup period and one-time costs are costs that will be incurred once during the startup
period.

Steps for Preparation:

Step 1: Enter your Company Name and the Date you are preparing this estimate.

Step 2: Enter the number of months and the monthly cost for each cost item that is recurring. For one-
time costs only, skip the monthly costs. If there are cost items that have both recurring and one-time
amounts, you can enter those as well. The total cost will calculate automatically in the far right column.

Step 3: Once you have completed entering all of the costs, review the individual items and total amount
to see where you might fine tune it or move something out into the future when you have more revenue
coming in.

30
START-UP COSTS
Your Coffee Shop January 1, 2018

REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD

Estimated Product Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Less Sales Returns &
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Discounts
Service Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cost of Goods Sold $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD

Salaries & Wages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Marketing/Advertising $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Commissions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Website Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Internet/Phone $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Travel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Legal/Accounting $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Office Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Expenses $0
Income Before Taxes $0
Income Tax Expense #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

NET INCOME #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

31
INSTRUCTIONS FOR GETTING STARTED ON PROFIT & LOSS PROJECTIONS
Completing projections for Profit and Loss of a new company is a good exercise to understand and
communicate when the company will begin to break-even and see how sales and profits will grow. The
top portion of the model to the left, Revenue, is a good way to forecast sales, month by month for the
first year. The lower portion then applies estimated expenses for the same period of time to derive the
business' profitability.

Steps for Preparation:

Step 1: Enter your Company Name and the Date you are preparing this projection.

Step 2: Enter for each month, beginning in January or whenever your estimate starts, what you expected
sales to be. This could be for products or services or multiple products. You can add lines to this model
for additional offerings. From this you should subtract any product returns or discounts that you want to
track (these should be shown as negative numbers, for instance -10). Below Net Sales, you would enter
the Cost of Goods Sold. These are the direct costs in selling a particular product, for instance the materials
costs, assembly labor, or if you purchased the product and resold it, it would be the wholesale cost.

Step 3: Enter for each month, the estimated salaries, marketing, utilities and other items you are
projecting.

Step 4: Once you have completed entering all of the costs, review the individual items and total amount
to see where you might fine tune it or move something out into the future when you have more revenue
coming in. The objective is to get to profitability and positive cash flow as quickly as possible.

32