Sample business plan for a home business
EXECUTIVE SUMMARY
GOAL: To get a XYZ Videoconferencing package in every Internet capable household in America, and then build sales around the world.
Market
A need exists for a convenient, inexpensive and above all easy way to communicate long distance utilizing videoconferencing and the free long-distance capabilities and power of the Internet. Many people are still afraid to fully utilize their computers. By using a combination of Netmeeting and the ILS Bytebeam.com, or by using a direct one to one connection, anyone can videoconference with our XYZ videoconferencing package. XYZ provides an EASY way to hookup to the Internet and videoconference FREE through the use of either an ILS site or direct one-to-one-conferencing.
Capital Request
Mr Smith is requesting a $100,000 venture capital grant to help expand the business. A portion of the business and the future earnings will go to the Venture Capital company.
STATEMENT OF PURPOSE
This business plan is prepared as a proposal and an operating and policy
guide for management.
Mr. Smith, the owner, is requesting Venture Capital in the amount of $100,000.00 on behalf of xyz . (D.B.A. xyz).
XYZ currently has the following assets:
Fixtures and Equipment $ 2,000.00
Inventory 150.00
Working Capital 2,500.00
Grand Total $4,650.00
MISSION & STRATEGY STATEMENT
XYZ sells high quality, easy to use and inexpensive video conferencing packages. The initial three target markets will be military personnel and their families, college students and their families and older people such as grandparents. In addition, the company plans to strongly market educational institutions with a focus on distance learning colleges who offer classes over the Internet.
During the first nine months, the company will sell one variety of computer cameras. Within two years, we will expand our operations to include additional choices of cameras and corresponding instructional videos. We will add additional merchandise, which will enhance or improve the quality of the xyz video conferencing experience. xyz will become a one-stop store for variety videoconferencing and Internet communication programs.
XYZ Networks Package Specs.
A XYZ. package consists of three parts: the IBM Camera, the instructional installation video and the informative booklet. (Camera Specs. Taken from the Xirlink Webpage. www. Xirlink.com)
The Camera
The IBM PC Camera is a high quality, compact and versatile digital PC camera that is easy to install and use. The camera provides users with instant
plug-and-play functionality by incorporating USB technology into the design. The IBM PC Camera is capable of achieving 30 frames per second at 352 x 288 pixels, setting the benchmark for today's superior PC cameras.
The IBM PC Camera supports a wide range of fixed or mobile applications for desktop and notebook computers. This camera offers the consumer the ability to capture excellent still image photos and high frame rate video through a user friendly software interface. Additionally, the IBM PC Camera provides users with an adjustable focus lens and an instant snapshot button.
The IBM PC Camera software offers a complete range of applications including video mail and a convenient photo album. This software enables users to visually communicate by turning ordinary e-mail into video mail and the superior video compression technology in this camera insures that the video file sizes are manageable. This PC camera solution is perfect for the user to stay in touch with colleagues, family and friends.
2. The Instructional Video
The Instructional video is the key to the simplicity of the xyz package. At approx 28 min in length it takes a client step-by-step, scene-by-scene, from opening the box to actually videoconferencing with relatives and friends.
The video makes it easy to set up the computer camera and videoconference. The key to the xyz package is the video and the rock solid camera. The video helps eliminate the fear factor involved with the use of computers and videoconferencing. Imagine being able to talk face to face to your loved ones free of charge! The xyz package allows you to do exactly that, within 30 minutes from start to finish you will be talking live to your family member or friend.
3. The Informative Booklet.
The informative booklet will describe exactly what an ILS site is. It will also give a brief history of Videoconferencing. Perhaps one of the key sections of the booklet will be the current up to date listing of all the various non-adult ILS sites which are available on the Internet. The booklet will describe what exactly is happening when you videoconference and how the future of videoconferencing will continue to grow. xyz will also discuss the benefits of businesses owning a xyz package.
WHY xyz WILL SUCCEED
Unlike the chain stores such as Office Max and Best Buys which sell you just the camera xyz leads you step by step, scene by scene, through the installation of your PC camera and the large variety of software which comes with it We hold your hand all the way through the process. xyz always will be owner managed and a family business helping other families stay in touch. We will constantly evaluate and adjust merchandise mix to meet customer demand and preferences. We will, within twelve months, provide several selections under one roof. One of the keys to our success will be to make Videoconferencing a less intimidating undertaking. XYZ will take all the fear and guesswork out of communicating live face to face via the Internet.
The company will always strive to carry and sell quality but inexpensive videoconferencing and Internet hardware and software. As the market demand grows XYZ will also increase not only our product line but also the instructional videos we provide. Adaptability to changing market needs and conditions will be one of the key factors in XYZ’s continued success.
To make it more convenient for our customers, we plan on accepting major credit cards in the near future to help increase sales. It is our policy to provide exceptional personal service and convenient 24-7 shopping hours to our customers via our website.
Because we provide a friendly and family-oriented environment, customers will be comfortable in buying our products and, by listening to their with feedback on the types of inventory they want to buy, we hope to instill in them a sense that we are a family business helping families and friends stay in touch not only easily but also affordably. By way of making our customers more comfortable, we are considering offering a free short initial videoconference with them to test their equipment and ask any questions they might have.
COMPETITION
XYZ has spent countless hours looking for competition on the Internet. To date XYZ has found various websites (Best Buy, Office Max) primarily larger retailers who do in fact sell a computer camera and camera bundles. The very positive news is that XYZ was unable to locate any retailer who sells a Videoconferencing package with a informative booklet and or a instructional video.
PRODUCT LIFECYCLE
XYZ believes that the viability for the market for low cost externally mounted PC cameras will last approximately three years at which point more and more retailers such as Dell and Gateway will begin to incorporate lower end computer cameras into their monitors. Due to the larger size of the higher end PC cameras XYZ believes it will be prudent to start offering them after approximately 18 months of marketing the initial XYZ package. XYZ will broaden their market mix as demand and demographics dictate.
FUTURE MARKETS
XYZ believes there are many more potential clients besides the four initial target markets.. These may include: Any business person who has to be on the road a lot. School children who are bedridden. Government officials, any business or person who needs to communicate with a regional office. As band width increases and data transmission rates become consistently faster through the use of cable modems and fiber optics XYZ will evolve with this trend by offering additional cameras and accessories. (Note) The initial camera offered in the XYZ package is fully capable of handling the maximum band width available today.
ADVERTISING
XYZ will use a variety of advertising methods to include:
Print Advertising
We will reach our customers primarily through the military newspapers: The Army Times, The Navy Times, The Marine Corp. Times and The Airforce Times. We will also be advertising through various College and University Newspapers. Additionally XYZ will be advertising in Modern Maturity magazine, which is owned and published by the American Association of Retired Persons. The follow are examples of the 4 line classifieds ads we will run:
Grandparents see your Grandchildren daily: Free Long-distance and Videoconferencing. In spite of distance, XYZ brings the generations together in a way that nothing else can! Use the power of the Internet.
Internet Advertisement
XYZ will also be developing a website that will be registered with all the major search engines, specifically under the sections of computer/Internet hardware and software and under the sub categories of video conferencing and communication. Website advertising is critical to the success of XYZ.
Although the initial costs of the webpage design and the incorporated “Shopping cart” capabilities will be large (Est. $1000.00) it is imperative to have a major presence on the Internet. The Internet will provide a 24/7 marketing opportunity and the site will also allow XYZ to go into details about the system which would be much to expensive to do via print advertisement on a consistent and repetitive basis.
XYZ will aggressively build additional free web pages, which are available from AOL, Geocities, Homestead.com and a large variety of other free homepage building sites. XYZ will build these free pages, and register them with all the major search engines.
It is imperative that when a person enters the words “Videoconferencing” into a search box on Yahoo for instance that the XYZ website comes up within the top ten list for matches. Although ensuring this happens will be difficult and costly it is crucial to XYZ’s long term success. The Internet is a 24/7 marketing machine on which XYZ plans to capitalize.
EXAMPLE OF POTENTIAL XYZ WEBPAGE
FINALLY VIDEO CONFERENCING MADE EASY AND INEXPENSIVE.
FREE LONGDISTANCE UTILIZING THE INTERNET AND XYZ’s AWA RDWINNING IBM VIDEOCONFERENCING CAMERA INSTRUCTIONAL VIDEO AND INFORMATIONAL BOOK TITLED VIDEOCONFERENCING MADE EASY AND FUN.
Thank you for visiting our site. We are a family owned business created to help keep families closer through the use of video conferencing and the free long distance capabilities of the Internet.
What do you get?
When you order our XYZ videoconferencing package you receive everything you need to start videoconferencing with family and friends within 30 minutes.
The package includes the award winning IBM PC Videoconferencing camera. This camera is rock sold durable and extremely easy to operate. The camera has been through the XYZ torture test, which consisted of using the PC camera with my laptop and home computer daily for over six months of bumps bruises and bangs. The camera is small; light reliable and very easy to hookup to a larger home computer though powerful enough to use attached to a laptop via USB port, which provides the fastest data transfer available.
WHAT MAKES THE XYZ PACKAGE SO EASY TO USE???
THE KEY to ease of use of the XYZ camera package is the easy to understand and follow instructional video along with the booklet which takes you scene by scene through opening the XYZ box to videoconferencing free with a family member or friend via the power of the award winning IBM videoconferencing computer camera and XYZ’s easy to use simple to follow instructional video and booklet.
Thank you for visiting our site. We are a family owned business created to help keep families closer through the use of video conferencing and the free long distance capabilities of the Internet.
When you order our XYZ videoconferencing package you receive everything you need to start videoconferencing with family and friends within 30 minutes.
The package includes the award winning IBM PC Videoconferencing camera. Rated best overall videoconferencing camera for the money by PC Shopper, PC Today and various other computer magazines. This camera is rock sold durable and extremely easy to operate. The camera has been through the XYZ torture test, which consisted of using the PC camera with my laptop and home computer daily for over six months of bumps bruises and bangs. The camera is small; light reliable and very easy to hookup to a larger home computer and powerful enough to use attached to a laptop via USB port, which provides the fastest data transfer available.
Send a check for $99.95 plus shipping and handling of $5.05 for a total of $105.00 TAX INCLUDED. Or for just $179.99 you can purchase two complete packages one for you and one which we will ship the to your family member, significant other or friend.
From the first customer we will maintain a preferred customer list for future sales and Internet access to a 15% off coupon for another camera. We will also include this coupon in each XYZ videoconferencing package to encourage additional sales to existing clients and their family and friends.
Our current (and planned) line of selections supports military personnel, college customers and their families as well as Grandparents. The IBM camera itself is rugged durable and very light weight and small.
PRICING, PROFITABILITY, AND BREAKEVEN POINT.
The following analysis is based on a twelve month forecast. We have also taken into account standard industry practice. It shows that our business is viable.
Pricing
Currently, we will sell only one base camera with a street retail price of $49.99 (Office max and Best Buy). XYZ will be purchasing each camera for $33.00. The overall cost and profit for each package goes as follows.
Camera cost $33.00
Shipping /Postage Cost 4.00
Handling 2.50
Video Tape 3.00
Video tape reproduction 1.00
Booklet production 2.50
Misc. 1.00
Tax 5.00
Total Cost to XYZ $52.00
Net Profit per unit or Bundle for XYZ
Individual package 105.00
-52.00
Net base profit per package $53.00
Bundle 179.00
-104.00
Net base profit per bundle $75.00
Marketing Strategy
Note it is XYZ’s belief that the additional sales of the bundles at a lower profit margin will help fuel the popularity of videoconferencing among customers and friends and family of XYZ customers. This will help boost the “Word of mouth” sales. XYZ will give an additional incentive to purchase cameras packages by including a 10% off transferable coupon in every individual and bundle package. The coupon is meant to be passed on to a friend who will then also receive a 10% off coupon which they can then pass on to another person and so on. This pricing and marketing strategy is designed to build a “Virtual Network” of people. It is XYZ’s goal to use this multiplying or Domino effect to become highly profitable and allow future expansion into additional products and consulting in E commerce.
Break even Analysis
Our current monthly fixed costs are as follows:
Rent $ 75.00 Based on 20% of my monthly rent of $375.00
Utilities 21.00 Based on 20% 0f my monthly util. Of 101.00
Insurance 20.00
Advertising 600.00
Salaries 0.00
Loan Repayment 500.00
Web site-hosting 39.00
Web site maint. 50.00
Coupon expense TBD
Total monthly fixed expenses $ 1300.00
XYZ will have to sell 12.5 individual packages and 8.6 bundles per month to break even.
XYZ total fixed expenses per year will be $ 15,600.00 per year
In order to break even XYZ must sell
150 Individual packages and
104 Bundle packages
The expense for coupon redemption is estimated at an initial $ 400.00 per month both the Balance sheet and Income statement forecasts will be adjusted as coupons begin to be redeemed.
XYZ first years sales are estimated to be 10,000 units with an average
Profit margin of $63.50 per unit.
Our break even is (at an average profit margin of $63.50) is 246 units based on the predicted sales of 10000 units per year that produces a net profit of $635,000.00.
OPERATIONS
Merchandise
We purchase our merchandise from Xirlink Inc the distributor of the IBM camera. The price per camera is $33.00 based on 5000 units sold per year.
Initial Business startup costs
Military times
Four line ad 26 weeks 1568.00
Modern Maturity (Estimate)
Four line ad 26 weeks 1575.00
Dazzle hardware/SW/ 269.00
IBM cameras inventory 10 330.00
Webpage domain registration 75.00
Logo creation 100.00
Video production costs 200.00
Webpage design 1500.00
Business plan software 50.00
Printer HP 882c 249.99
Cartridges 29.99
And 35.99
Scanner hp 4200 199.99
Usb hub 4 59.99
Zip drive 100mb 99.99
10-pack zip disks 99.99
Webcommerce deluxe 74.99
Microsoft Publisher 99.99
RCA full VHS video camcorder 426.99
Total Startup expenses $7,069.90 Based on a 26 week advertising run
MARKET RESEARCH
Background
The retail industry in general has experienced steady and continuous growth in the past 10 years. On March 14, 2000 the Census Bureau of the U.S. Department of Commerce reported that advance estimates of U.S retail sales for February 2000 were $265.7 billion, an increase of 1.1 percent from the previous month and up 9.4 percent from February 1999.
According to the report, total sales for the December through February period were up 10 percent from the same period a year ago (the national economy has also experienced an unprecedented near decade of general economic growth).
The Internet is the major growth industry today. The use of the Internet as a communication device and an advertising medium will continue to increase, as computers become more user friendly. XYZ believes now is the time to enter the market of Videoconferencing on the Internet.
In 1998, there were an estimated 47 million Internet users in the U.S. according to eStats.com. This was an estimated 62% of the world Internet user population. According to Nielsen//NetRatings, in the month of June 1999, there were a total of 63.4 million total active Internet users in the U.S. and 105.4 million total U.S. users with Internet access. The average user visited 12 web sites and spent 7 hours, 38 minutes online that month.
Dateline: 07/02/2000 According to Nielsen//Netratings, in the month of June, 2000, the Internet user population was approximately:
130 million people in the U.S.
21.2 million people in Japan
18 million people in the United Kingdom
6.3 million people in Australia
1.7 million people in Singapore
XYZ will target all of potential 130 million U.S user by a aggressive email marketing campaign as well as aggressive print advertising and formal licensing agreements with Q.V.C. the HomeShopping Network and some of the very large retailers such as Wal-Mart and Kmart.
(Statistics taken from) http://www.internetstats.com/topic_template.php3?keyword=29
XYZ will have four initial target markets within the Internet community.
1. Military personnel:
2. College Student and their parents
3. Grandparents and their families
4. Distance learning colleges
On the following pages XYZ will discuss its marketing strategy for each target market along with listing various demographics about each.
MILITARY PERSONNEL
When I was in the Army, from 1985 to 1989, I spent an average of $275.00 a month on my phone bill. Adjusted for inflation, this item remains a significant, but essential, expense for military personnel. For this reason,
XYZ believes that the military can potentially be a huge source of revenue.
In order to increase recruitment, it has recently been reported that the military services have felt the need to lower their educational standards for recruits. We believe that part of the reason for this is reluctance on the part of young people starting families to live away from family and extended family. The old sobriquet “Army Brat” refers in part to a child who grew up in a manufactured environment where the nuclear family was forced to rely only on its own resources for emotional support and companionship. With one of the parents away from even this isolated group for long periods, feelings of loneliness and disconnection often became intolerable. Children raised in such circumstances learned, to the detriment of their future relationships, to make no long-lasting commitments. Today people are becoming much more conscious of their need for extended family and long-term friendships. Means of fostering and strengthening these ties in spite of the need for mobility in military life are being sought by military personnel and recruitment specialists. A XYZ package could be used at all levels as an enlistment, reenlistment, new duty assignment or retirement bonus or gift.
Statistics Active duty US Military personnel
Year Army Airforce NAVY Marines Total
1999 473,595 363,449 370,343 172,369 1,379,756
* Info obtained at website (www.Infoplease.com) “Active Duty Military Personnel 1940-1999.”
GRANDPARENTS AND RETIREES
It’s a phenomenon familiar to almost every family. As children grow to adolescence and then young adulthood, they tend to define themselves by stepping away from their parents, often ideologically and emotionally as well as physically. This can create problems from both sides, but all is resolved, forgiven and healed when the first grandchild appears! The urge to share that experience with one another in whatever way best bridges limitations of cost and distance will always be an irresistible. In addition, the relationship between grandchildren and grandparents is often acknowledged by social researchers to be one of the most significant in life. Relieved from the parental fears about “spoiling” or over-disciplining, grandparents often provide the growing youngster with a true experience of unconditional love and acceptance. This closeness does not lessen as the child grows up and leaves for college. As the youngster breaks away from parental control, the older generation becomes the bridge which holds the family together.
Grandparents will be ideal clients of XYZ. Life expectancy rates continue to climb. The computer is becoming less intimidating to people of all ages. As computers become more user-friendly, more people of all age groups will want to utilize videoconferencing capabilities, particularly if travel becomes difficult.
Population Statistics by age in the United States in thousands. Info gathered from website (www.census.gov)
------------2000----------- ------------2025-----------
AGE TOTAL MALE FEMALE TOTAL MALE FEMALE
30-34 19,625 9,721 9,904 22,155 10,984 11,171
35-39 22,314 11,105 11,209 21,963 10,902 11,061
40-44 22,632 11,231 11,402 21,323 10,559 10,764
45-49 19,906 9,780 10,126 19,478 9,584 9,894
50-54 17,266 8,399 8,867 18,819 9,157 9,662
55-59 13,324 6,398 6,927 19,366 9,360 10,006
60-64 10,677 5,046 5,631 20,759 9,963 10,796
65-69 9,436 4,334 5,102 19,717 9,278 10,439
70-74 8,753 3,876 4,877 15,886 7,284 8,603
75-79 7,422 3,103 4,319 12,159 5,389 6,769
Total population in the Geographic Area: United States Info gathered from website (http://factfinder.census.gov)
United States
Total under 18 18-64 65+
Population
248,709,873 25.6 61.9 12.6
DISTANCE LEARNING AND TRADITIONAL COLLEGES. COLLEGE STUDENTS AND THERE PARENTS.
The Future of Distance Learning
XYZ is 100% dedicated to helping distance learning grow at all educational levels XYZ will initially focus on the distance learning and traditional colleges.
Experts estimate that one million students taking courses online in the United States alone, and that number is expected to double in one year.
According to the most recent National Center for Education Statistics survey, a third of the nation's traditional higher education institutions offered distance learning courses in 1995 and another quarter planned to have such courses in place by 1999. At the time of the survey, there were more than 750,000 students enrolled in an estimated 26,000 distance education courses at colleges and universities nationwide. And the numbers of both students and programs continue to skyrocket.
Explosion of Distance Learning in the United States.
The following is an excerpt from the 1998 Reauthorization of the Higher Education Act.
Promoting High-Quality Distance Education
"Valuable technologies also are important for opportunities in higher education at a time when college is becoming ever more crucial . . . making courses available at convenient locations; reducing time constraints for course-taking; making educational opportunities more affordable; and increasing the institution’s access to new audiences. This is why [we] proposed a number of changes to the Higher Education Act that will broaden learning opportunities . . ."
The Higher Education Amendments of 1998 significantly increase the number of students who can benefit from distance education by authorizing or adapting two administration initiatives: Distance Education Demonstration Programs and the Learning Anytime Anywhere Partnerships (LAAP) program. Distance education can help all Americans -- including workers, parents, people in rural communities and people with disabilities -- go to college by removing barriers of time and place through innovative uses of technology.
Only about one-third of all higher education institutions offered distance education in 1995, and they served fewer than one million students. While colleges and universities have been exploring the uses of technology, its capacity for increasing access to higher education has been limited because of restrictions on financial aid availability for distance learners.
Distance Education Demonstration Programs. The new law authorizes Demonstration Programs to increase student access to higher education and to determine the best way to deliver quality education through distance learning. Because the current eligibility requirements for higher education institutions do not address the special needs and circumstances of
distance learners, needy students are sometimes ineligible for financial aid. The Demonstration Programs will expand student aid eligibility for distance learners by allowing the Secretary of Education to waive specific statutory and regulatory student aid requirements for participating institutions. Among the requirements that may be waived are those regarding measures of an academic year, minimum hours spent in the classroom, and the percentage of an institution’s students who may be served by distance education. These changes will provide new flexibility for institutions to offer high-quality distance education programs. Up to 15 degree-granting institutions, consortia, or systems of institutions may participate in Distance Education Demonstration Programs during the first and second years, and up to 50 may participate in the third year.
Learning Anytime Anywhere Partnerships (LAAP). The new law authorizes the LAAP program, which will provide competitive grants to partnerships to ensure that high-quality learning opportunities are available to distance education students. The partnerships will develop and assess model distance education programs and educational software and find
innovative measures of student achievement that are appropriate for distance education. Eligible partnerships will include two or more independent organizations, such as: colleges, community-based organizations, technical institutes, adult education programs, school districts, and businesses. LAAP grants will encourage institutions and their partners to work together to provide high-quality distance education programs that challenge traditional geographic and institutional boundaries. The new law authorizes this program at $10 million in FY99, and the budget agreement provides $10 million in FY99 for this initiative.
The following is a partial list of Colleges and Universities, which offer distance learning courses. XYZ will market to purchase XYZ packages as part of a suggested REQUIRED course in Distance Learning and videoconferencing. As part of XYZ’s commitment to education and the further development of Distance education XYZ will donate 5% of the net profits from each institution back to the given institution in order to establish a fund/scholarship to encourage and develop distance learning at the institution. XYZ will intensely market EVERY COLLEGE AND UNIVERSITY on this list.
Amber University
American College -.
Andrews University –
Antioch University -
Arapaho Community College –
Arizona State University -
Athabasca University -
Atlantic Union College -
Auburn University -
Azusa Pacific University -
Ball State University -
Bellevue University -
Bemidji State University -
Bethel Theological Seminary
Bluefield State College
Boise State University –
Brevard Community College -,
Brigham Young University -
Burlington College -
Caldwell College
California Institute Of Integral Studies -
California State University-Chico -
California State University-Dominguez Hills
California State University-Los Angeles -
California Virtual University –
Capella University (previously Graduate School of
America)
Capitol College -
Cardinal Stritch University -
Central Maine Technical College -
Central Michigan University -
Chadron State College -
Charter Oak College -
Chemeketa Community College
Christopher Newport University
City University -
Clarkson College -
Cogswell College -
College For Financial Planning
College Of Great Falls
College Of Saint Scholastica -
Colorado State University,
Columbia Union College
Columbia University
Columbia University -Teacher's
Concord College -
Concordia University -
Cornell University
Dallas Theological Seminary -
David N. Myers College -
Defiance College –
Duke University -
East Carolina University -
Eastern Oregon State College -
Eckerd College
Electronic University Network -
Elizabethtown College -
Embry-Riddle Aeronautical University -
Empire State College
Emporia State University –
Fairmont State College –
Fielding Institute
Florida Gulf Coast University
Florida State University -
George Washington University -
Georgia Institute Of Technology
Glenville State College –
Goddard
Golden Gate University -
Goucher College –
Governors State University
Graceland College -
Grand Canyon University –
Grand Rapids Baptist Seminary -
Grand Valley State University -
Hope International University -
Indiana Institute Of Technology -
Indiana State University -
Indiana University -
Indiana Wesleyan University –
International University –
Iowa State University
Jec College Connection –
John F. Kennedy University –
Johnson Bible College –
Johnson State College -
Judson College -
Kansas State University -
Keller Graduate School Of Management -
Lake Superior State University -
Lakehead University -
Lee University -
Lehigh University -
Lesley College The Graduate School -
Liberty University -
Loma Linda University -
Loyola University –
Marlboro College –
Marshall University –
Mary Baldwin College -
Marywood University -
Mercy College –
Michigan Technological University -
Mid-America Bible College -
Mind Extension University -
Mississippi State University -
Moody Bible Institute -
Moody Graduate School –
Morehead State University -
Mott Community College –
Mount Saint Vincent University -
Murray State University
National Fire Academy –
National Technological University -
National University –
National-Louis University -
New Hampshire College –
New Jersey Institute Of Technology -
New Mexico State University -
New School For Social Research -
New York Institute Of Technology -
New York University –
Newman University -
North Carolina State University
North Central Bible College -
Northeastern State University –
Northeastern University
Northwest College –
Northwood University -
Nova Southeastern University -
Ohio University -
Oklahoma City University –
Oklahoma State University -
Old Dominion University -
Oral Roberts University -
Oregon State University -
Ottawa University Kansas City -
Pennsylvania State University -
Portland State University -
Prescott College -
Purdue University
Reformed Theological Seminary -
Regent University
Regents College -
Regis University -
Rensselaer Polytechnic Institute -
Rochester Institute Of Technology -
Roger Williams University
Rogers University –
Saint Joseph's College -
Saint Leo College -
Saint Mary-Of-The-Woods College -
Salve Regina University -
Saybrook Graduate School
Seattle Central Community College –
Seton Hall University –
Shepherd College –
Skidmore College -
Sonoma State University -
Southern Christian University -
Southern Methodist University -
Southern Polytechnic State University -
Southwest Missouri State University -
Southwestern Adventist College –
Southwestern Assemblies Of God College -
Stanford University -
State Colleges Of West Virginia -
State University System Of Florida -
Stephens College
Suny-Enginet
Syracuse University -
Texas Tech University
Texas Woman's University -
The Graduate School Of America (now called
Capella University)
The Union Institute -
Trinity College-Connecticut
Trinity University –
Troy State University -
Tulane University –
Union Institute –
United States Sports Academy –
University Of South Florida –
University Of Alabama
University Of Arizona
University Of Bridgeport –
University Of Cincinnati1 –
University Of Colorado-Boulder -
University Of Colorado-Colorado Springs
University Of Colorado-Denver
University Of Dallas Graduate School Of Management
University Of Delaware -
University Of Denver -
University Of Florida -
University Of Great Falls
University Of Houston -
University Of Idaho Engineering Outreach -
University Of Illinois At Urbana-Champaign
University Of Iowa –
University Of Louisville -
University Of Maryland University College
University Of Massachusetts-Amherst -
University Of Memphis -
University Of Michigan -
University Of Minnesota -
University Of Missouri-Columbia -
University Of Missouri-St. Louis -
University Of Montana -
University Of Nebraska-Lincoln -
University Of Nevada –
University Of New England
University Of North Carolina At Chapel Hill -
University Of North Dakota -
University Of Northern Colorado
University Of Northern Iowa –
University Of Notre Dame –
University Of Oklahoma -
University Of Phoenix -
University Of Sarasota University Of South Florida –
University Of Southern Colorado -
University Of Tennessee Space Institute -
University Of Tennessee-Knoxville -
University Of Virginia-Charlottesville -
University Of Washington -
University Of Waterloo
University Of Wisconsin-Madison
University Of Wisconsin-Platteville -
University Of Wisconsin-Superior -
University Of Wisconsin-Whitewater -
Upper Iowa University -
Vermont College Of Norwich University -
Vincennes University -
Virginia Commonwealth University -
Virginia Polytechnic Institute And State
University -
Walden University
Warren Wilson College -
Washington State University -
Weber State University -
West Liberty State College –
West Virginia State College
West Virginia University -
Western Carolina University –
Western Illinois University -
Western Oregon State College –
Worcester Polytechnic Institute
By marketing both the Administration and Distance learning Departments and the students and their parents. The following tables show the steady increase in college enrollments in the future.
Marketing Statistics for College students.
Future college enrollments
In 1,000’s
No.253.School Enrollment:1965 to 2008
[In thousands (54,394 represents 54,394,000). As of fall]
Year Annual College Students
Public Private
1990 10,845 2,974
1991 11,310 3,049
1992 ......... ..... 11,385 3,103
1993 .............. 11,189 3,116
1994 .............. 11,134 3,145
1995 11,092 3,169
1996 ........... ... 11,090 3,210
1997, est. ........... 11,208 3,143
1998, proj. 11,395 3,194
1999, proj. .......... 11,525 3,233
2000, proj. .......... 11,626 3,263
2001, proj. .......... 11,705 3,287
2002, proj. .......... 11,751 3,303
2003, proj. .......... 11,849 3,335
2004, proj. .......... 11,975 3,374
2005, proj. .......... 12,101 3,415
2006, proj. .......... 12,242 3,461
2007, proj. .......... 12,378 3,502
2008, proj. .......... 12,534 3,549
Salary Expense
Total monthly payroll expense for the first year will be $ 0.00 no employee will draw a salary. Starting 1/2001 all employees will receive a BI yearly distribution of profits on 6/30 and 12/15. The majority stockholder has the right to reinvest the profits into the business for the first three years. This decision will be reviewed carefully by the board of directors.
CONTINGENCY PLANS
The following steps will be taken if business does not perform as planned:
All employees will continue to work without compensation indefinitely.
ADDITIONAL MARKETING OPPORTUNITIES
WALMART: Being the largest retailer in the world Wal-Mart is a logical and potentially very beneficial company with which to start a licensing and marketing/reseller agreement. Wal-Mart has a specific department for suppliers to contact, they also have a department for innovative new ideas and products under which XYZ would fall. The following is from the Wal-Mart webpage. (http://www.walmartstores.com/supplier/)
If XYZ is successful in passing the evaluation phase and goes to market in Wal-Mart stores the potential revenue could be astronomical.
What is the Purpose of Wal-Mart's Supplier
Proposal Guide?
The Supplier Development Department at Wal-Mart
Stores, Inc. designed this guide for suppliers who have
expressed an interest in doing business with Wal-Mart,
SAM'S Club and/or Wal-Mart Interactive. This
compilation of information introduces you to Wal-Mart
and gives you the basic facts about our business
philosophy and practices.
By having all potential suppliers utilize these
guidelines, Supplier Development is able to direct your
product or service more efficiently to the appropriate
area for review and evaluation. In addition, by complying
with Wal-Mart's requirements, which include basic retail
necessities such as UPC membership, you become
better prepared for not only Wal-Mart's marketplace but
for the retail world as a whole. A potential supplier who
submits a completed proposal packet is assured of a
reply by telephone or in writing from Wal-Mart within 90
days of receipt of the completed packet. By completing
the Supplier Proposal Packet, you are not guaranteed a
supplier number. All final decisions are made by the
authorized purchasing agent at the Wal-Mart Home
Office.
GOAL: To get a XYZ Videoconferencing package in every Internet capable household in America, and then build sales around the world.
Market
A need exists for a convenient, inexpensive and above all easy way to communicate long distance utilizing videoconferencing and the free long-distance capabilities and power of the Internet. Many people are still afraid to fully utilize their computers. By using a combination of Netmeeting and the ILS Bytebeam.com, or by using a direct one to one connection, anyone can videoconference with our XYZ videoconferencing package. XYZ provides an EASY way to hookup to the Internet and videoconference FREE through the use of either an ILS site or direct one-to-one-conferencing.
Capital Request
Mr Smith is requesting a $100,000 venture capital grant to help expand the business. A portion of the business and the future earnings will go to the Venture Capital company.
STATEMENT OF PURPOSE
This business plan is prepared as a proposal and an operating and policy
guide for management.
Mr. Smith, the owner, is requesting Venture Capital in the amount of $100,000.00 on behalf of xyz . (D.B.A. xyz).
XYZ currently has the following assets:
Fixtures and Equipment $ 2,000.00
Inventory 150.00
Working Capital 2,500.00
Grand Total $4,650.00
MISSION & STRATEGY STATEMENT
XYZ sells high quality, easy to use and inexpensive video conferencing packages. The initial three target markets will be military personnel and their families, college students and their families and older people such as grandparents. In addition, the company plans to strongly market educational institutions with a focus on distance learning colleges who offer classes over the Internet.
During the first nine months, the company will sell one variety of computer cameras. Within two years, we will expand our operations to include additional choices of cameras and corresponding instructional videos. We will add additional merchandise, which will enhance or improve the quality of the xyz video conferencing experience. xyz will become a one-stop store for variety videoconferencing and Internet communication programs.
XYZ Networks Package Specs.
A XYZ. package consists of three parts: the IBM Camera, the instructional installation video and the informative booklet. (Camera Specs. Taken from the Xirlink Webpage. www. Xirlink.com)
The Camera
The IBM PC Camera is a high quality, compact and versatile digital PC camera that is easy to install and use. The camera provides users with instant
plug-and-play functionality by incorporating USB technology into the design. The IBM PC Camera is capable of achieving 30 frames per second at 352 x 288 pixels, setting the benchmark for today's superior PC cameras.
The IBM PC Camera supports a wide range of fixed or mobile applications for desktop and notebook computers. This camera offers the consumer the ability to capture excellent still image photos and high frame rate video through a user friendly software interface. Additionally, the IBM PC Camera provides users with an adjustable focus lens and an instant snapshot button.
The IBM PC Camera software offers a complete range of applications including video mail and a convenient photo album. This software enables users to visually communicate by turning ordinary e-mail into video mail and the superior video compression technology in this camera insures that the video file sizes are manageable. This PC camera solution is perfect for the user to stay in touch with colleagues, family and friends.
2. The Instructional Video
The Instructional video is the key to the simplicity of the xyz package. At approx 28 min in length it takes a client step-by-step, scene-by-scene, from opening the box to actually videoconferencing with relatives and friends.
The video makes it easy to set up the computer camera and videoconference. The key to the xyz package is the video and the rock solid camera. The video helps eliminate the fear factor involved with the use of computers and videoconferencing. Imagine being able to talk face to face to your loved ones free of charge! The xyz package allows you to do exactly that, within 30 minutes from start to finish you will be talking live to your family member or friend.
3. The Informative Booklet.
The informative booklet will describe exactly what an ILS site is. It will also give a brief history of Videoconferencing. Perhaps one of the key sections of the booklet will be the current up to date listing of all the various non-adult ILS sites which are available on the Internet. The booklet will describe what exactly is happening when you videoconference and how the future of videoconferencing will continue to grow. xyz will also discuss the benefits of businesses owning a xyz package.
WHY xyz WILL SUCCEED
Unlike the chain stores such as Office Max and Best Buys which sell you just the camera xyz leads you step by step, scene by scene, through the installation of your PC camera and the large variety of software which comes with it We hold your hand all the way through the process. xyz always will be owner managed and a family business helping other families stay in touch. We will constantly evaluate and adjust merchandise mix to meet customer demand and preferences. We will, within twelve months, provide several selections under one roof. One of the keys to our success will be to make Videoconferencing a less intimidating undertaking. XYZ will take all the fear and guesswork out of communicating live face to face via the Internet.
The company will always strive to carry and sell quality but inexpensive videoconferencing and Internet hardware and software. As the market demand grows XYZ will also increase not only our product line but also the instructional videos we provide. Adaptability to changing market needs and conditions will be one of the key factors in XYZ’s continued success.
To make it more convenient for our customers, we plan on accepting major credit cards in the near future to help increase sales. It is our policy to provide exceptional personal service and convenient 24-7 shopping hours to our customers via our website.
Because we provide a friendly and family-oriented environment, customers will be comfortable in buying our products and, by listening to their with feedback on the types of inventory they want to buy, we hope to instill in them a sense that we are a family business helping families and friends stay in touch not only easily but also affordably. By way of making our customers more comfortable, we are considering offering a free short initial videoconference with them to test their equipment and ask any questions they might have.
COMPETITION
XYZ has spent countless hours looking for competition on the Internet. To date XYZ has found various websites (Best Buy, Office Max) primarily larger retailers who do in fact sell a computer camera and camera bundles. The very positive news is that XYZ was unable to locate any retailer who sells a Videoconferencing package with a informative booklet and or a instructional video.
PRODUCT LIFECYCLE
XYZ believes that the viability for the market for low cost externally mounted PC cameras will last approximately three years at which point more and more retailers such as Dell and Gateway will begin to incorporate lower end computer cameras into their monitors. Due to the larger size of the higher end PC cameras XYZ believes it will be prudent to start offering them after approximately 18 months of marketing the initial XYZ package. XYZ will broaden their market mix as demand and demographics dictate.
FUTURE MARKETS
XYZ believes there are many more potential clients besides the four initial target markets.. These may include: Any business person who has to be on the road a lot. School children who are bedridden. Government officials, any business or person who needs to communicate with a regional office. As band width increases and data transmission rates become consistently faster through the use of cable modems and fiber optics XYZ will evolve with this trend by offering additional cameras and accessories. (Note) The initial camera offered in the XYZ package is fully capable of handling the maximum band width available today.
ADVERTISING
XYZ will use a variety of advertising methods to include:
Print Advertising
We will reach our customers primarily through the military newspapers: The Army Times, The Navy Times, The Marine Corp. Times and The Airforce Times. We will also be advertising through various College and University Newspapers. Additionally XYZ will be advertising in Modern Maturity magazine, which is owned and published by the American Association of Retired Persons. The follow are examples of the 4 line classifieds ads we will run:
Grandparents see your Grandchildren daily: Free Long-distance and Videoconferencing. In spite of distance, XYZ brings the generations together in a way that nothing else can! Use the power of the Internet.
Internet Advertisement
XYZ will also be developing a website that will be registered with all the major search engines, specifically under the sections of computer/Internet hardware and software and under the sub categories of video conferencing and communication. Website advertising is critical to the success of XYZ.
Although the initial costs of the webpage design and the incorporated “Shopping cart” capabilities will be large (Est. $1000.00) it is imperative to have a major presence on the Internet. The Internet will provide a 24/7 marketing opportunity and the site will also allow XYZ to go into details about the system which would be much to expensive to do via print advertisement on a consistent and repetitive basis.
XYZ will aggressively build additional free web pages, which are available from AOL, Geocities, Homestead.com and a large variety of other free homepage building sites. XYZ will build these free pages, and register them with all the major search engines.
It is imperative that when a person enters the words “Videoconferencing” into a search box on Yahoo for instance that the XYZ website comes up within the top ten list for matches. Although ensuring this happens will be difficult and costly it is crucial to XYZ’s long term success. The Internet is a 24/7 marketing machine on which XYZ plans to capitalize.
EXAMPLE OF POTENTIAL XYZ WEBPAGE
FINALLY VIDEO CONFERENCING MADE EASY AND INEXPENSIVE.
FREE LONGDISTANCE UTILIZING THE INTERNET AND XYZ’s AWA RDWINNING IBM VIDEOCONFERENCING CAMERA INSTRUCTIONAL VIDEO AND INFORMATIONAL BOOK TITLED VIDEOCONFERENCING MADE EASY AND FUN.
Thank you for visiting our site. We are a family owned business created to help keep families closer through the use of video conferencing and the free long distance capabilities of the Internet.
What do you get?
When you order our XYZ videoconferencing package you receive everything you need to start videoconferencing with family and friends within 30 minutes.
The package includes the award winning IBM PC Videoconferencing camera. This camera is rock sold durable and extremely easy to operate. The camera has been through the XYZ torture test, which consisted of using the PC camera with my laptop and home computer daily for over six months of bumps bruises and bangs. The camera is small; light reliable and very easy to hookup to a larger home computer though powerful enough to use attached to a laptop via USB port, which provides the fastest data transfer available.
WHAT MAKES THE XYZ PACKAGE SO EASY TO USE???
THE KEY to ease of use of the XYZ camera package is the easy to understand and follow instructional video along with the booklet which takes you scene by scene through opening the XYZ box to videoconferencing free with a family member or friend via the power of the award winning IBM videoconferencing computer camera and XYZ’s easy to use simple to follow instructional video and booklet.
Thank you for visiting our site. We are a family owned business created to help keep families closer through the use of video conferencing and the free long distance capabilities of the Internet.
When you order our XYZ videoconferencing package you receive everything you need to start videoconferencing with family and friends within 30 minutes.
The package includes the award winning IBM PC Videoconferencing camera. Rated best overall videoconferencing camera for the money by PC Shopper, PC Today and various other computer magazines. This camera is rock sold durable and extremely easy to operate. The camera has been through the XYZ torture test, which consisted of using the PC camera with my laptop and home computer daily for over six months of bumps bruises and bangs. The camera is small; light reliable and very easy to hookup to a larger home computer and powerful enough to use attached to a laptop via USB port, which provides the fastest data transfer available.
Send a check for $99.95 plus shipping and handling of $5.05 for a total of $105.00 TAX INCLUDED. Or for just $179.99 you can purchase two complete packages one for you and one which we will ship the to your family member, significant other or friend.
From the first customer we will maintain a preferred customer list for future sales and Internet access to a 15% off coupon for another camera. We will also include this coupon in each XYZ videoconferencing package to encourage additional sales to existing clients and their family and friends.
Our current (and planned) line of selections supports military personnel, college customers and their families as well as Grandparents. The IBM camera itself is rugged durable and very light weight and small.
PRICING, PROFITABILITY, AND BREAKEVEN POINT.
The following analysis is based on a twelve month forecast. We have also taken into account standard industry practice. It shows that our business is viable.
Pricing
Currently, we will sell only one base camera with a street retail price of $49.99 (Office max and Best Buy). XYZ will be purchasing each camera for $33.00. The overall cost and profit for each package goes as follows.
Camera cost $33.00
Shipping /Postage Cost 4.00
Handling 2.50
Video Tape 3.00
Video tape reproduction 1.00
Booklet production 2.50
Misc. 1.00
Tax 5.00
Total Cost to XYZ $52.00
Net Profit per unit or Bundle for XYZ
Individual package 105.00
-52.00
Net base profit per package $53.00
Bundle 179.00
-104.00
Net base profit per bundle $75.00
Marketing Strategy
Note it is XYZ’s belief that the additional sales of the bundles at a lower profit margin will help fuel the popularity of videoconferencing among customers and friends and family of XYZ customers. This will help boost the “Word of mouth” sales. XYZ will give an additional incentive to purchase cameras packages by including a 10% off transferable coupon in every individual and bundle package. The coupon is meant to be passed on to a friend who will then also receive a 10% off coupon which they can then pass on to another person and so on. This pricing and marketing strategy is designed to build a “Virtual Network” of people. It is XYZ’s goal to use this multiplying or Domino effect to become highly profitable and allow future expansion into additional products and consulting in E commerce.
Break even Analysis
Our current monthly fixed costs are as follows:
Rent $ 75.00 Based on 20% of my monthly rent of $375.00
Utilities 21.00 Based on 20% 0f my monthly util. Of 101.00
Insurance 20.00
Advertising 600.00
Salaries 0.00
Loan Repayment 500.00
Web site-hosting 39.00
Web site maint. 50.00
Coupon expense TBD
Total monthly fixed expenses $ 1300.00
XYZ will have to sell 12.5 individual packages and 8.6 bundles per month to break even.
XYZ total fixed expenses per year will be $ 15,600.00 per year
In order to break even XYZ must sell
150 Individual packages and
104 Bundle packages
The expense for coupon redemption is estimated at an initial $ 400.00 per month both the Balance sheet and Income statement forecasts will be adjusted as coupons begin to be redeemed.
XYZ first years sales are estimated to be 10,000 units with an average
Profit margin of $63.50 per unit.
Our break even is (at an average profit margin of $63.50) is 246 units based on the predicted sales of 10000 units per year that produces a net profit of $635,000.00.
OPERATIONS
Merchandise
We purchase our merchandise from Xirlink Inc the distributor of the IBM camera. The price per camera is $33.00 based on 5000 units sold per year.
Initial Business startup costs
Military times
Four line ad 26 weeks 1568.00
Modern Maturity (Estimate)
Four line ad 26 weeks 1575.00
Dazzle hardware/SW/ 269.00
IBM cameras inventory 10 330.00
Webpage domain registration 75.00
Logo creation 100.00
Video production costs 200.00
Webpage design 1500.00
Business plan software 50.00
Printer HP 882c 249.99
Cartridges 29.99
And 35.99
Scanner hp 4200 199.99
Usb hub 4 59.99
Zip drive 100mb 99.99
10-pack zip disks 99.99
Webcommerce deluxe 74.99
Microsoft Publisher 99.99
RCA full VHS video camcorder 426.99
Total Startup expenses $7,069.90 Based on a 26 week advertising run
MARKET RESEARCH
Background
The retail industry in general has experienced steady and continuous growth in the past 10 years. On March 14, 2000 the Census Bureau of the U.S. Department of Commerce reported that advance estimates of U.S retail sales for February 2000 were $265.7 billion, an increase of 1.1 percent from the previous month and up 9.4 percent from February 1999.
According to the report, total sales for the December through February period were up 10 percent from the same period a year ago (the national economy has also experienced an unprecedented near decade of general economic growth).
The Internet is the major growth industry today. The use of the Internet as a communication device and an advertising medium will continue to increase, as computers become more user friendly. XYZ believes now is the time to enter the market of Videoconferencing on the Internet.
In 1998, there were an estimated 47 million Internet users in the U.S. according to eStats.com. This was an estimated 62% of the world Internet user population. According to Nielsen//NetRatings, in the month of June 1999, there were a total of 63.4 million total active Internet users in the U.S. and 105.4 million total U.S. users with Internet access. The average user visited 12 web sites and spent 7 hours, 38 minutes online that month.
Dateline: 07/02/2000 According to Nielsen//Netratings, in the month of June, 2000, the Internet user population was approximately:
130 million people in the U.S.
21.2 million people in Japan
18 million people in the United Kingdom
6.3 million people in Australia
1.7 million people in Singapore
XYZ will target all of potential 130 million U.S user by a aggressive email marketing campaign as well as aggressive print advertising and formal licensing agreements with Q.V.C. the HomeShopping Network and some of the very large retailers such as Wal-Mart and Kmart.
(Statistics taken from) http://www.internetstats.com/topic_template.php3?keyword=29
XYZ will have four initial target markets within the Internet community.
1. Military personnel:
2. College Student and their parents
3. Grandparents and their families
4. Distance learning colleges
On the following pages XYZ will discuss its marketing strategy for each target market along with listing various demographics about each.
MILITARY PERSONNEL
When I was in the Army, from 1985 to 1989, I spent an average of $275.00 a month on my phone bill. Adjusted for inflation, this item remains a significant, but essential, expense for military personnel. For this reason,
XYZ believes that the military can potentially be a huge source of revenue.
In order to increase recruitment, it has recently been reported that the military services have felt the need to lower their educational standards for recruits. We believe that part of the reason for this is reluctance on the part of young people starting families to live away from family and extended family. The old sobriquet “Army Brat” refers in part to a child who grew up in a manufactured environment where the nuclear family was forced to rely only on its own resources for emotional support and companionship. With one of the parents away from even this isolated group for long periods, feelings of loneliness and disconnection often became intolerable. Children raised in such circumstances learned, to the detriment of their future relationships, to make no long-lasting commitments. Today people are becoming much more conscious of their need for extended family and long-term friendships. Means of fostering and strengthening these ties in spite of the need for mobility in military life are being sought by military personnel and recruitment specialists. A XYZ package could be used at all levels as an enlistment, reenlistment, new duty assignment or retirement bonus or gift.
Statistics Active duty US Military personnel
Year Army Airforce NAVY Marines Total
1999 473,595 363,449 370,343 172,369 1,379,756
* Info obtained at website (www.Infoplease.com) “Active Duty Military Personnel 1940-1999.”
GRANDPARENTS AND RETIREES
It’s a phenomenon familiar to almost every family. As children grow to adolescence and then young adulthood, they tend to define themselves by stepping away from their parents, often ideologically and emotionally as well as physically. This can create problems from both sides, but all is resolved, forgiven and healed when the first grandchild appears! The urge to share that experience with one another in whatever way best bridges limitations of cost and distance will always be an irresistible. In addition, the relationship between grandchildren and grandparents is often acknowledged by social researchers to be one of the most significant in life. Relieved from the parental fears about “spoiling” or over-disciplining, grandparents often provide the growing youngster with a true experience of unconditional love and acceptance. This closeness does not lessen as the child grows up and leaves for college. As the youngster breaks away from parental control, the older generation becomes the bridge which holds the family together.
Grandparents will be ideal clients of XYZ. Life expectancy rates continue to climb. The computer is becoming less intimidating to people of all ages. As computers become more user-friendly, more people of all age groups will want to utilize videoconferencing capabilities, particularly if travel becomes difficult.
Population Statistics by age in the United States in thousands. Info gathered from website (www.census.gov)
------------2000----------- ------------2025-----------
AGE TOTAL MALE FEMALE TOTAL MALE FEMALE
30-34 19,625 9,721 9,904 22,155 10,984 11,171
35-39 22,314 11,105 11,209 21,963 10,902 11,061
40-44 22,632 11,231 11,402 21,323 10,559 10,764
45-49 19,906 9,780 10,126 19,478 9,584 9,894
50-54 17,266 8,399 8,867 18,819 9,157 9,662
55-59 13,324 6,398 6,927 19,366 9,360 10,006
60-64 10,677 5,046 5,631 20,759 9,963 10,796
65-69 9,436 4,334 5,102 19,717 9,278 10,439
70-74 8,753 3,876 4,877 15,886 7,284 8,603
75-79 7,422 3,103 4,319 12,159 5,389 6,769
Total population in the Geographic Area: United States Info gathered from website (http://factfinder.census.gov)
United States
Total under 18 18-64 65+
Population
248,709,873 25.6 61.9 12.6
DISTANCE LEARNING AND TRADITIONAL COLLEGES. COLLEGE STUDENTS AND THERE PARENTS.
The Future of Distance Learning
XYZ is 100% dedicated to helping distance learning grow at all educational levels XYZ will initially focus on the distance learning and traditional colleges.
Experts estimate that one million students taking courses online in the United States alone, and that number is expected to double in one year.
According to the most recent National Center for Education Statistics survey, a third of the nation's traditional higher education institutions offered distance learning courses in 1995 and another quarter planned to have such courses in place by 1999. At the time of the survey, there were more than 750,000 students enrolled in an estimated 26,000 distance education courses at colleges and universities nationwide. And the numbers of both students and programs continue to skyrocket.
Explosion of Distance Learning in the United States.
The following is an excerpt from the 1998 Reauthorization of the Higher Education Act.
Promoting High-Quality Distance Education
"Valuable technologies also are important for opportunities in higher education at a time when college is becoming ever more crucial . . . making courses available at convenient locations; reducing time constraints for course-taking; making educational opportunities more affordable; and increasing the institution’s access to new audiences. This is why [we] proposed a number of changes to the Higher Education Act that will broaden learning opportunities . . ."
The Higher Education Amendments of 1998 significantly increase the number of students who can benefit from distance education by authorizing or adapting two administration initiatives: Distance Education Demonstration Programs and the Learning Anytime Anywhere Partnerships (LAAP) program. Distance education can help all Americans -- including workers, parents, people in rural communities and people with disabilities -- go to college by removing barriers of time and place through innovative uses of technology.
Only about one-third of all higher education institutions offered distance education in 1995, and they served fewer than one million students. While colleges and universities have been exploring the uses of technology, its capacity for increasing access to higher education has been limited because of restrictions on financial aid availability for distance learners.
Distance Education Demonstration Programs. The new law authorizes Demonstration Programs to increase student access to higher education and to determine the best way to deliver quality education through distance learning. Because the current eligibility requirements for higher education institutions do not address the special needs and circumstances of
distance learners, needy students are sometimes ineligible for financial aid. The Demonstration Programs will expand student aid eligibility for distance learners by allowing the Secretary of Education to waive specific statutory and regulatory student aid requirements for participating institutions. Among the requirements that may be waived are those regarding measures of an academic year, minimum hours spent in the classroom, and the percentage of an institution’s students who may be served by distance education. These changes will provide new flexibility for institutions to offer high-quality distance education programs. Up to 15 degree-granting institutions, consortia, or systems of institutions may participate in Distance Education Demonstration Programs during the first and second years, and up to 50 may participate in the third year.
Learning Anytime Anywhere Partnerships (LAAP). The new law authorizes the LAAP program, which will provide competitive grants to partnerships to ensure that high-quality learning opportunities are available to distance education students. The partnerships will develop and assess model distance education programs and educational software and find
innovative measures of student achievement that are appropriate for distance education. Eligible partnerships will include two or more independent organizations, such as: colleges, community-based organizations, technical institutes, adult education programs, school districts, and businesses. LAAP grants will encourage institutions and their partners to work together to provide high-quality distance education programs that challenge traditional geographic and institutional boundaries. The new law authorizes this program at $10 million in FY99, and the budget agreement provides $10 million in FY99 for this initiative.
The following is a partial list of Colleges and Universities, which offer distance learning courses. XYZ will market to purchase XYZ packages as part of a suggested REQUIRED course in Distance Learning and videoconferencing. As part of XYZ’s commitment to education and the further development of Distance education XYZ will donate 5% of the net profits from each institution back to the given institution in order to establish a fund/scholarship to encourage and develop distance learning at the institution. XYZ will intensely market EVERY COLLEGE AND UNIVERSITY on this list.
Amber University
American College -.
Andrews University –
Antioch University -
Arapaho Community College –
Arizona State University -
Athabasca University -
Atlantic Union College -
Auburn University -
Azusa Pacific University -
Ball State University -
Bellevue University -
Bemidji State University -
Bethel Theological Seminary
Bluefield State College
Boise State University –
Brevard Community College -,
Brigham Young University -
Burlington College -
Caldwell College
California Institute Of Integral Studies -
California State University-Chico -
California State University-Dominguez Hills
California State University-Los Angeles -
California Virtual University –
Capella University (previously Graduate School of
America)
Capitol College -
Cardinal Stritch University -
Central Maine Technical College -
Central Michigan University -
Chadron State College -
Charter Oak College -
Chemeketa Community College
Christopher Newport University
City University -
Clarkson College -
Cogswell College -
College For Financial Planning
College Of Great Falls
College Of Saint Scholastica -
Colorado State University,
Columbia Union College
Columbia University
Columbia University -Teacher's
Concord College -
Concordia University -
Cornell University
Dallas Theological Seminary -
David N. Myers College -
Defiance College –
Duke University -
East Carolina University -
Eastern Oregon State College -
Eckerd College
Electronic University Network -
Elizabethtown College -
Embry-Riddle Aeronautical University -
Empire State College
Emporia State University –
Fairmont State College –
Fielding Institute
Florida Gulf Coast University
Florida State University -
George Washington University -
Georgia Institute Of Technology
Glenville State College –
Goddard
Golden Gate University -
Goucher College –
Governors State University
Graceland College -
Grand Canyon University –
Grand Rapids Baptist Seminary -
Grand Valley State University -
Hope International University -
Indiana Institute Of Technology -
Indiana State University -
Indiana University -
Indiana Wesleyan University –
International University –
Iowa State University
Jec College Connection –
John F. Kennedy University –
Johnson Bible College –
Johnson State College -
Judson College -
Kansas State University -
Keller Graduate School Of Management -
Lake Superior State University -
Lakehead University -
Lee University -
Lehigh University -
Lesley College The Graduate School -
Liberty University -
Loma Linda University -
Loyola University –
Marlboro College –
Marshall University –
Mary Baldwin College -
Marywood University -
Mercy College –
Michigan Technological University -
Mid-America Bible College -
Mind Extension University -
Mississippi State University -
Moody Bible Institute -
Moody Graduate School –
Morehead State University -
Mott Community College –
Mount Saint Vincent University -
Murray State University
National Fire Academy –
National Technological University -
National University –
National-Louis University -
New Hampshire College –
New Jersey Institute Of Technology -
New Mexico State University -
New School For Social Research -
New York Institute Of Technology -
New York University –
Newman University -
North Carolina State University
North Central Bible College -
Northeastern State University –
Northeastern University
Northwest College –
Northwood University -
Nova Southeastern University -
Ohio University -
Oklahoma City University –
Oklahoma State University -
Old Dominion University -
Oral Roberts University -
Oregon State University -
Ottawa University Kansas City -
Pennsylvania State University -
Portland State University -
Prescott College -
Purdue University
Reformed Theological Seminary -
Regent University
Regents College -
Regis University -
Rensselaer Polytechnic Institute -
Rochester Institute Of Technology -
Roger Williams University
Rogers University –
Saint Joseph's College -
Saint Leo College -
Saint Mary-Of-The-Woods College -
Salve Regina University -
Saybrook Graduate School
Seattle Central Community College –
Seton Hall University –
Shepherd College –
Skidmore College -
Sonoma State University -
Southern Christian University -
Southern Methodist University -
Southern Polytechnic State University -
Southwest Missouri State University -
Southwestern Adventist College –
Southwestern Assemblies Of God College -
Stanford University -
State Colleges Of West Virginia -
State University System Of Florida -
Stephens College
Suny-Enginet
Syracuse University -
Texas Tech University
Texas Woman's University -
The Graduate School Of America (now called
Capella University)
The Union Institute -
Trinity College-Connecticut
Trinity University –
Troy State University -
Tulane University –
Union Institute –
United States Sports Academy –
University Of South Florida –
University Of Alabama
University Of Arizona
University Of Bridgeport –
University Of Cincinnati1 –
University Of Colorado-Boulder -
University Of Colorado-Colorado Springs
University Of Colorado-Denver
University Of Dallas Graduate School Of Management
University Of Delaware -
University Of Denver -
University Of Florida -
University Of Great Falls
University Of Houston -
University Of Idaho Engineering Outreach -
University Of Illinois At Urbana-Champaign
University Of Iowa –
University Of Louisville -
University Of Maryland University College
University Of Massachusetts-Amherst -
University Of Memphis -
University Of Michigan -
University Of Minnesota -
University Of Missouri-Columbia -
University Of Missouri-St. Louis -
University Of Montana -
University Of Nebraska-Lincoln -
University Of Nevada –
University Of New England
University Of North Carolina At Chapel Hill -
University Of North Dakota -
University Of Northern Colorado
University Of Northern Iowa –
University Of Notre Dame –
University Of Oklahoma -
University Of Phoenix -
University Of Sarasota University Of South Florida –
University Of Southern Colorado -
University Of Tennessee Space Institute -
University Of Tennessee-Knoxville -
University Of Virginia-Charlottesville -
University Of Washington -
University Of Waterloo
University Of Wisconsin-Madison
University Of Wisconsin-Platteville -
University Of Wisconsin-Superior -
University Of Wisconsin-Whitewater -
Upper Iowa University -
Vermont College Of Norwich University -
Vincennes University -
Virginia Commonwealth University -
Virginia Polytechnic Institute And State
University -
Walden University
Warren Wilson College -
Washington State University -
Weber State University -
West Liberty State College –
West Virginia State College
West Virginia University -
Western Carolina University –
Western Illinois University -
Western Oregon State College –
Worcester Polytechnic Institute
By marketing both the Administration and Distance learning Departments and the students and their parents. The following tables show the steady increase in college enrollments in the future.
Marketing Statistics for College students.
Future college enrollments
In 1,000’s
No.253.School Enrollment:1965 to 2008
[In thousands (54,394 represents 54,394,000). As of fall]
Year Annual College Students
Public Private
1990 10,845 2,974
1991 11,310 3,049
1992 ......... ..... 11,385 3,103
1993 .............. 11,189 3,116
1994 .............. 11,134 3,145
1995 11,092 3,169
1996 ........... ... 11,090 3,210
1997, est. ........... 11,208 3,143
1998, proj. 11,395 3,194
1999, proj. .......... 11,525 3,233
2000, proj. .......... 11,626 3,263
2001, proj. .......... 11,705 3,287
2002, proj. .......... 11,751 3,303
2003, proj. .......... 11,849 3,335
2004, proj. .......... 11,975 3,374
2005, proj. .......... 12,101 3,415
2006, proj. .......... 12,242 3,461
2007, proj. .......... 12,378 3,502
2008, proj. .......... 12,534 3,549
Salary Expense
Total monthly payroll expense for the first year will be $ 0.00 no employee will draw a salary. Starting 1/2001 all employees will receive a BI yearly distribution of profits on 6/30 and 12/15. The majority stockholder has the right to reinvest the profits into the business for the first three years. This decision will be reviewed carefully by the board of directors.
CONTINGENCY PLANS
The following steps will be taken if business does not perform as planned:
All employees will continue to work without compensation indefinitely.
ADDITIONAL MARKETING OPPORTUNITIES
WALMART: Being the largest retailer in the world Wal-Mart is a logical and potentially very beneficial company with which to start a licensing and marketing/reseller agreement. Wal-Mart has a specific department for suppliers to contact, they also have a department for innovative new ideas and products under which XYZ would fall. The following is from the Wal-Mart webpage. (http://www.walmartstores.com/supplier/)
If XYZ is successful in passing the evaluation phase and goes to market in Wal-Mart stores the potential revenue could be astronomical.
What is the Purpose of Wal-Mart's Supplier
Proposal Guide?
The Supplier Development Department at Wal-Mart
Stores, Inc. designed this guide for suppliers who have
expressed an interest in doing business with Wal-Mart,
SAM'S Club and/or Wal-Mart Interactive. This
compilation of information introduces you to Wal-Mart
and gives you the basic facts about our business
philosophy and practices.
By having all potential suppliers utilize these
guidelines, Supplier Development is able to direct your
product or service more efficiently to the appropriate
area for review and evaluation. In addition, by complying
with Wal-Mart's requirements, which include basic retail
necessities such as UPC membership, you become
better prepared for not only Wal-Mart's marketplace but
for the retail world as a whole. A potential supplier who
submits a completed proposal packet is assured of a
reply by telephone or in writing from Wal-Mart within 90
days of receipt of the completed packet. By completing
the Supplier Proposal Packet, you are not guaranteed a
supplier number. All final decisions are made by the
authorized purchasing agent at the Wal-Mart Home
Office.
posted by sam @ 5:27 PM
0 Comments:
Post a Comment
<< Home