Children’s Website Business Plan

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Introduction

InteliChild.com gives bright children a safe place to interact and have fun with other kids, educators, the web, and the wider world. It generates traffic first, valuation for investors, and eventually commerce and profits. It provides a safe environment for children to play and parents and schools to purchase, as well as a creative, fair, and healthy work environment for employees.

The InteliChild.com ecommerce project is the natural progression of the InteliChild.com Internet site. The site will promote and sell select toys, books and software products. It will also produce Web products and Web applications that will increase market share, promote name recognition, and maximize efficiency.

The Company

InteliChild.com, the current start-up, has four employees. The California C corporation was created by the principal founders at 25% ownership. (Name Omitted) Capital partners acquired 50% of the company. The company has only one office. The initial website is at www.citruscoolkids.com.

Our core competitive advantage is the knowledge base that we have created in-house. Our competitor spends five to ten times more money on outsourcing than we do to companies that can provide services that we offer in-house. The same applies to InteliChild.com. Already having the SQL(tm), ColdFusion() programming skills, we will now add Flash(tm).

Products and Services

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

• Toys and Games – carefully chosen toys and games that appeals to the target audience, their parents, and educators.
• Books: there should be a selection of books that appeal specifically to the parents and educators of the target market, so that these interested adults can go to this site and order books about their children. In addition, of course there is also a selection of books to be ordered by and for the kids to read.
• is carefully selected software to appeal specifically to the target market.

The Internet changes every three to six months, or faster. Therefore, our strategy for future development is to remain positioned with enough flexibility to adapt new technologies, and adapt to changes quickly.

The Market

InteliChild.com is experiencing an explosion in sales due to technology advancements in teaching fields and the acceptance technology as a teaching aid. We need to get approval from the school community, which includes teachers, PTAs, and special education programs, in order to enter the market.

These four areas are our primary targets:

1. The children themselves.
2. Parents.
3. Educational institutions for children of the upper class.
4. Self-teaching families.

We have plans to expand internationally, but our first launch will be in the US upper class. We know that the majority of our clients drive BMW&#8217s and have great taste. They spend more on their children than they do on their cars because they like the technology that we have built. They are also impressed by high-quality design and have high bandwidth connections.

Financial Considerations

Because we are determined to be the Internet’s dominant company, our start-up costs can be high.

The Breakeven Analysis indicates that we are at steady-state breakeven in the first one year.

The forecast for sales is based upon increasing website traffic and increasing the number of sales per session. From Year 1 through Year 3, sales are expected increase exponentially. The forecast obviously depends on traffic increase. We plan to lose money for at least three years while we build traffic and develop our position for the long-term future.

Objectives

• Traffic measured in unique sessions: 100,000 user sessions in June, Year 1, 450,000 in December Year 1, 3.5 million Year 2, and 5,000,000 in Year 3.
• Selling through, measured in dollar sales for each unique visit: December 1, 2012 saw a record high of $0.58; $0.83 in Year 2, and $0.92 the following year.
• Value is the ability to attract additional investment at economically viable valuations. We need to attract

Moderate investment in this year and an additional large injection in Year 2, with a valuation performance that yields attractive Internal Rate of Return (IRR) for investors. The financial section shows IRR of greater than 100% for all investors. However, IRR is lower for seed and slightly lower for the second round.

Acquisition (IPO) or Initial public offering in Year 4 at a valuation greater than $20 Million. This assumes that earnings and sales are the market values, which are very high at the time this plan is written.

Mission

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

Keys to Success

1. Customers must be retained. The website must be simple to use, and can be viewed quickly. User satisfaction is an ultimate priority.
2. If the project can capitalise on the traffic generated by InteliChild.com and convert the user sessions into dollars via the commerce site, it will succeed.
3. InteliChild isn’t ready to hire more people so the sales process must be simple to manage and flexible enough.
4. The e-commerce project will further establish InteliChild.com as a technology leader. It will not only bring in traffic, but also return traffic.

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