2. Enchanted Plaza
A Computer
Automated
Virtual Reality
Shopping Website
3. Table of Contents
1. Executive Summary 10. Operating Cost Years 3 - 4
2. Company Overview / Advertising 11. Profit/Loss Cash Flow Years 3 - 4
12. 4 Years P/L % Summary
3. Management Team - Resumes
13. Competition
4. Company Proprietary Software
14. Notable eCommerce Companies
5. Capital Funding Methods
15. 2006 Global Internet Sales
6. Start-Up Use of Proceeds 16. Current Global Internet sales
7. 4 Years Sales Forecast 17. Global eCommerce Projected
18. Conclusion
8. Operating Cost Years 1 – 2
9. Profit/ Loss Cash Flow Years 1 – 2
4. Executive Summary
Pg. 1 Continued
advantage of internet retail sales however, is that the company does essentially nothing except
display the product and receives 20 to 30 % of the sale and because the sales and payments are
automatically processed by the automated merchant payment processing system the company
has received this income percentage while incurring very little cost.
Enchanted Plaza
1 Executive Introduction and Summary Our retail sales customer will have the option of us designing their retail “Point of Sales “ ( POS
) displays for a fee, or an increase in the discounted price of their products sold on our website.
Enchanted Plaza is a startup company formed and motivated by the apparent lack in the current internet
industry of a more attractive, less expensive method of internet advertising and retail sales display formats. What appears to be a disadvantage / advantage of internet advertising sales income is that
although100 % of the sale is billed and received it has also incurred the initial cost of making the
To capitalize on this deficiency our VP a computer wizard and his associates have developed a proprietary original sale, which by our 2nd year P/L accounting is about 27 % to 30 %, however these cost
technical engineering blueprint for the development of computer software that is capable of producing highly
are not recurring, once the sale has been made the company will continue to receive payments
attractive computer animated, audio – visual - virtual reality 3D displays for use in internet advertising and
for displaying the ad which incurs no additional cost, therefore if the ad is displayed for any
retail sales.
considerable period of time the cost of the sale will quickly be offset and the remaining payments
Because of these features our displays are not only a much more effective type of media and that they are to the company will be gross profit.
totally computer created can be offered at much less cost to our advertising customers, than that of the current
competition. Also because of the company’s very low overhead , due to our nearly completely computerized
business operations and the enormous search engine generated worldwide public exposure we
Some internet companies boast about the reason for their success is because of the number of visitors they have will be able to offer better advertising services at a much lower price than the competition and
to their site but in reality any website submitted to the massive search engine system can accumulate hundreds
still maintain a very high profit margin.
of millions of visitors in a very short time so these numbers are not of great importance, it is the number of the
visitors who purchase products or services from the site and become customers of the website company that is
important. The current annual global internet sales market is approximately $449 billion. We at
Enchanted Plaza are confident that after receipt of the initial startup capital noted in the “
It’s simple, if you have a more attractive and interesting website placed in front of millions of viewers you will Capital Funding “ page and with moderate future increases of operating capital as intended
have more visitors to your website and if the products offered are of the best quality at a lower price the site will within this business plan, the company could,
have more repeat customers and generate more sales, this is particularly true for advertising customers. in a relatively short period of time capture a minimum of .001 ( 1/10 th of 1 % ) of this market
or 449 million dollars in gross annual revenue and with the potential of obtaining a great deal
Global internet marketing studies and trends indicate that advertising sales will dominate retail sales by the more in the future.
ratio of 60 % advertising and 40 % retail sales in the near future.
The information detailed within this business plan as follows are about as complete as can be
Because of the dynamic capabilities of our displays produces an excellent retail shopping experience in a unique complied about the company at this juncture, but if we can provide further information for you
environment it is an excellent location for commercial advertising therefore we expect our major income please contact the company at the address or phone numbers appended on the conclusion /
income source will be in advertising display sales. Summation page at the end of this business plan.
The disadvantage of internet retail sales is that the revenue to the website is discounted from the retail sales Thank You for your review of our business plan
price, usually about 20 to 30 %. This means that the site has to sell one or a number of product for $ 250 to
receive $ 75. Sales for a directly shipped manufactures product is discounted typically 40% to 50 %. The Shawn Marie Lopez, President and Chief Executive Officer
5. Company Introduction
A unique and proprietary three dimensional (3D) virtual reality shopping
plaza
Animated Advertising
Customizable
The user controls everything
Imagine a world-wide virtual shopping experience
We will offer both nationally and internationally manufactured consumer
products
Vendors will have actual store images
Store displays will be customizable to the vendors
Everything will be completely computer automated
70% of income will come from advertising sales
Online Advertising
6. The Management Team
Shawn Marie Lopez: Shawn Marie is the President and CEO as well as the Director of
Marketing, Sales and Contract Negotiations for the company. She is the founder of the Enchanted
Plaza and is the principle corporate shareholder.
Kyra A. Liebert: Kyra Is the company’s Corporate CFO. Her principle responsibilities are the
supervision and management of the company’s non-technical office personnel, sales assistance and
customer service. She will also provide the company’s management of all phases of legal, general
accounting, corporate records / reporting and tax returns as required. Kyra is a co-founder of the
Enchanted Plaza and is a Corporate Officer and shareholder.
John Marler: John is VP and Chief Engineer of the company. His responsibility are on-going
development of the company’s and vendor’s current and future technical website software design
requirements as well as technical website sales solicitation. John is a co-founder of the Enchanted
Plaza and is a Corporate Officer and shareholder.
Jack Thatcher: Is an Independent Business Financial Consultant. Mr. Thatcher is not a corporate
officer although he is an important member of the management team and has full authority to
represent the company in matters of capital funding in concert with company management.
7. Software
Website copyright filed, software patent pending
Multifunctional fully animated, highly graphic virtual displays
3D Modeling and Animation w/ audio and video capabilities
Buildings
Interior- decorations, items for sale, and overall presentation, all updateable
Exterior- signs, advertisements, decorations
Landscapes
Multiple environments based on real life locations and fantasy worlds
Selectable dynamic animations such as: birds in the sky, cars driving by, etc
Water fountains
Changeable weather- rain, snow, wind, sun, clouds, etc…
People
Ability to update/modify appearance
Height, skin tone, hair color, hair length, change of clothing, etc
GUI
Interface is easily updateable
Provides statistics as you shop such as: money available, cost of item(s) or shopping cart, location, time, etc…
Fully integrated with all our clients store merchandise, cost, stock, description of items and shipping information
Ability to store credit card information to the users profile
Payment integration with PayPal, Chase Bank, and other automated services
9. Use of Proceeds
As follows In Dollars $
Capital Funding 1,000,000
Legal Fees for Misc. Corporate Documentation
Startup capital
PPM and SEC Reg D Associated Filing Cost 7,000
Promotional Cost and Consulting Fees 5,000
Initial Office Set-up Expense 4,500
( See detail below )
Initial and On-going Software Development 400,000
( Software Fund )
Amount Entered as Beginning Cash in the 350,000
Cash Flow, Profit / Loss Projection
Total 766,500
Office Expense Detail
Office Space Depos 800
Desk / chairs 3 ea. x ( 150, ea. set ) 500
Computers 3 ea. @ 500 2,000
Stationary and filing Cabinets and 400
Printer/Copier/Fax 500
Telephones 3 ea. land line / cell 400
Visitor furniture 200
Initial office supplies 200
Total 4,500
Total All 771,000
Working Capital Reserves 229,000
10. 4 Years Sales Forecast
In Thousands $ 000 To the
Nearest $ 100 ( .1 K )
4 Years Sales Forecast as Estimated and Projected
In Thousands $ 000 To the Nearest $ 100 ( .1 K )
• Note: Static Display Month 1 2 3 4 5 6 Total 7 8 9 10 11 12 Total
Ads Range from $ Year 1
20,000 to $ 50,000 per Sales 0 0 0 20 30 45 95 67.5 101.2 151.8 212 297 320 1149.5 1,244
Month
• Computer Animated or Year 2 Sales From Year 1 End to Year 2 End Up 395%
Video Display Ads Sales 336 352.8 370.4 389 400.7 412.6 2261.5 421 429.3 439 446.7 455.5 464.7 2656.2 4,927
Range from $ 50,000
to $ 150,000 per Year 3 Sales From Year 2 End to Year 3 End Up 129 %
Month and Up. Sales 474 483.4 494 503.8 514 527 2996.2 535 545.4 556.3 567.4 575.7 587.3 3367.1 6,363
• The Current Global
Year 4 Sales From Year 3 End to Year 4 End Up 136 %
Internet Sales Market
is Approximately $ 500 Sales 618 636.5 555.6 675.3 695.5 717.3 3898.2 738 760 783 806.4 830 855 4772.4 8,671
billion Note: Static Display Ads Range fron $ 20,000 to $ 50,000 per Month 4 Years Total 21205
•
Computer Animated or Vidio Display Ads Range from $ 50,000 to $ 150,000 per Month and Up.
Enchanted Plaza's The Current Global Internet Sales Market is Approximately $ 500 billion
Extremely Enchanted Plaza's Extremely Conservative 4 Year Projected Sales is $ 21 million This Amounts to .4 1/1000's of 1 % of the Global Internet Market
Conservative 4 Year
Projected Sales is $ 21
million This Amounts to
.4 1/1000's of 1 % of the
Global Internet Market
11. Salaries (Years 1-2)
Salaries ( Cost of Sales ), G&A and Selling Expense as Estimated and Projected
4 Semi-Annual Periods In Dollars to the Nearest $ 100.
Per Month Year 1 Total Year 2 Total
Salaries 1St 6 Mo / Mo 2nd 6 Mo 3rd 6 Mo 4 th 6 Mo
Corporate Officers 10,700 10,700 10,700 10,700
Office & Assistants 1 2,000 3 6,000 5 10,000 7 14,000
Cost of Sales per Month 12,700 16,700 20,700 24,700
Monthly Total x6 x6 x6 x6
Total Saleries 76,200 100,200 176,400 124,200 148,200 272,400
Number of employees 4 6 8 10
G & A Expense
Employer Tax Contrib 9,000 est 12 % 12,000 15,000 17,800
Workmans Comp 700 est 1.3 % 1,300 1,600 1,900
General Biz Insurance 200 200 200 200
Rent 400 400 1,000 1,000
Telephone 100 100 200 200
Utilities 200 200 300 300
Misc. Office Supplies 100 100 200 200
Cost of G/ A per Month 10,700 14,300 18,500 21,600
Monthly Total x6 x6 x6 x6
Total G / A 64,200 85,800 150,000 111,000 129,600 240,600
Selling Expense
Air Travel 4,000 4,000 4,000 4,000
Car Rental 800 800 800 800
Advertising 1,000 1,000 2,000 2,000
Selling Expence per Mo. 5,800 5,800 6,800 6,800
Monthly Total x6 x6 x6 x6
Total Selling Expense 34,800 34,800 69,600 40,800 40,800 81,600
396,000 594,600
Employer Contribution Taxes Federal, State, SSI, Medicare and UE Ins. Are added together and Estimated
Salaries Executive 4,000/ Mo Shawn Marie Lopez Pres, CEO Marketing and Sales Manager
4.000/ Mo Kyra Liebert CFO Chief Financial Officer
2,700/ Mo John Maler, VP, Chief Engineer, Software Development Manager and Sales Solicitation
Administrative 2,000 / Mo. Each Office Administrative Assistant, Customer Service, Software Assistant and Sales Associate
13. Salaries (Years 3-4)
Salaries ( Cost of Sales ), G&A and Selling Expense as Estimated and Projected
4 Semi-Annual Periods In Dollars to the nearest $ 100.
Per Month Year 3 Total Year 4
Salaries 1St 6 Mo 2nd 6 Mo 3rd 6 Mo 4 th 6 Mo
Corporate Officers 15,000 17,500 17,500 17,500
Office & Assistants 6 15,000 7 17,500 8 20,000 10 25,000
Cost of Sales per Month 30,000 35,000 37,500 42,500
Monthly Total x 6 x 6 x 6 x 6
Total Salaries 180,000 210,000 390,000 225,000 255,000 480,000
Number of employees 9 10 11 13
G & A Expense
Employer Tax Contrib 21,600 est 12 % 25,200 27,000 30,600
Workmans Comp 2,300 est 1.3 % 2,700 4,900 5,500
Insurance 600 600 600 600
Rent 1,000 1,000 1,000 1,000
Telephone 400 400 500 500
Utilities 300 300 300 300
Misc. Office Supplies 400 400 500 500
Cost of G/ A per Month 26,600 30,600 34,800 39,000
Monthly Total x 6 x 6 x 6 x 6
Total G / A 159,600 183,600 343,200 208,800 234,000 442,800
Selling Expense
Air Travel 4 trips /6 Mo. 6,000 6,000 6,000 6,000
Car Rental 1,000 1,000 1,000 1,000
Advertising 6,000 6,000 6,000 6,000
Selling Expense per Mo. 13,000 13,000 13,000 13,000
Monthly Total x 6 x 6 x 6 x 6
Total selling Expense 78,000 78,000 156,000 78,000 78,000 156,000
889,200 1,078,800
Salaries Executive 5,000 / Mo Shawn Marie Lopez Pres, and CEO
5,000 / Mo Kyra Liebert CFO Chief Financial Officer
5,000 / Mo. John Maler VP Chief Engineer
Administrative 2,500 / Mo. Each Office Administrative Assistant, Customer Service, Software Assistant and Sales Associate
14. P/L Cash Flow (Years 3-4)
Cash Flow - Profit / Loss as Projected Years 3 - 4
Summary In Thous ands $ ( 000 )
Year 3 Cash Flow 6 Months 6 Months Totals
Beginning Cash 5,520 8,098
Sales/Gross Income 2,996 3,367 6,363
Total Cash 8,516 11,465
Total Cost -418 -472 -890
Ending Cash 8,098 10,993
Ending Profit/Loss 2,578 2,895 5,473
Ending Accumulated P/L 2,578 5,473 5,473
Year 4 Cash Flow 6 Months 6 Months Totals
Beginning Cash 10,993 14,378
Sales/Gross Income 3,898 4,772 8,670
Total Cash 14,891 19,150
Total Cost -512 -567 -1,079
Ending Cash 14,378 18,584
Ending Profit/Loss 3,386 4,205 7,591
Ending Accumulated P/L 3,386 7,591 7,591
15. Projected P/L
4 Years Proforma Profit / Loss as Projected
Approx. Summary, In Thousands $ 000
Year 1 Year 2
Sales / Income 1,244 Sales / Income 4,927
Cost of Sales ( Sal ) -176 14.00% Cost of Sales ( Sal ) -272 5.50%
G/A -150 12.00% G/A -241 4.90%
Selling Expense -70 5.60% Selling Expense -82 1.60%
All Cost -396 31.60% All Cost -595 12.00%
Gross Profit 848 68.40% Gross Profit 4,332 88.00%
Total % 100% Total % 100%
Net Operating Net Operating
Pre Tax Profit/Loss 848 44.00% Pre Tax Profit/Loss 4,322 88.00%
On Sales of 1,244 Profit was 848 or 44.% On Sales of 4,917 Profit was 4,322 or 88.%
Year 3 Year 4
Sales / Income 6,363 Sales / Income 8,671
Cost of Sales ( Sal ) -390 6.20% Cost of Sales ( Sal ) -480 5.50%
G/A -343 5.40% G/A -443 4.80%
Selling Expense -156 2.40% Selling Expense -156 1.80%
All Cost -889 14.00% All Cost -1079 12.10%
Gross Profit 5,474 86.00% Gross Profit 7,592 87.90%
Total % 100% Total % 100%
Net Operating Net Operating
Pre Tax Profit/Loss 5,474 86.00% Pre Tax Profit/Loss 7,592 87.90%
On Sales of 6,363 Profit was 5,474 or 86 % On Sales of 8,671 Profit was 7,593 or 87.90 %
Note: See Conclusion Page to Note Generally Inordinately High P&L
16. Competition and Market Share
A few American companies who’s primary income is from internet and advertising
sales:
Facebook- $3,000,000,000 of which 80% was in internet advertising
Expedia, inc.- $3,348,000,000- Advertising and travel
Priceline- $3,072,240,000- Advertising and travel
Groupon- $760,000,000- Retail referrals and advertising
Orbitz- $757,5000,000- Travel agent and advertising
Enchanted Plaza
Market Share
17. Notable eCommerce Companies
Amazon
The standout winner in e-commerce continues to be Amazon. Amazon’s revenues
rose 29 % in 2010 to $48.0 billion in 2011 and profits grew substantially as noted.
Amazon’s main source of income was from a very broad, diversified line of direct
and discounted customer retail sales, Internet advertising was estimated to be
about 30 % or 14.4 billion.
In billions
2011 2010 2009
Total Revenue 48,077,000 34,204,000 24,509,000
Cost of Revenue 37,288,000 26,561,000 18,978,000
Gross Profit 10,789,000 7,643,000 5,531,000
ecommerce internet technology market research - E-Commerce and ...
www.plunkettresearch.com/...internet.../industry-and-business-data
18. eCommerce cont’…
Yahoo
In thousands
Period Ending Dec 25, 2011 Dec 31, 2010 Dec 31, 2009
Total Revenue 2,323,401 2,393,463 2,440,439
Cost of Revenue 957,467 961,778 1,021,230
Gross Profit 1,365,934 1,431,685 1,419,209
Amount from advertising was unavailable
ecommerce internet technology market research - E-Commerce and ...
www.plunkettresearch.com/...internet.../industry-and-business-data
19. eCommerce cont”…
eBay, Inc.
(NASDAQ: EBAY)
Fiscal year is January-December. In billions
2008 2009 2010 2011
Sales/Revenue 8.54 B 8.73 B 9.15 B 11.68 B
Gross Income 6.08B 5.96 B 6.39 B 7.95 B
Net Income 1.78 B 2.39 B 1.8 B 3.2 B
ecommerce internet technology market research - E-Commerce and ...
www.plunkettresearch.com/...internet.../industry-and-business-data
20. eCommerce cont’…
Google
Revenue Accounting ( summary )
In billions
Revenue: Year 2010 2011 2012 1st quarter
Gross Revenue 29.3 38. 10.6
Income from operations 10.4 11.7 3.4
Net Income 8.5 9.7 2.9
Advertising Revenue inclusive 28. 36. 10.
Internet Sales Revenue was 28/29 = 96.6 % of gross revenue
ecommerce internet technology market research - E-Commerce and ...
www.plunkettresearch.com/...internet.../industry-and-business-data
21. eCommerce cont’…
Google cont’…
The Top 10 Industries That Spent Big On Google AdWords In 2011
Finance & Insurance – $4.0 Billion (example keywords in this industry include: “self employed health
insurance”, “cheap car insurance”, “credit cards for bad credit”)
Retailers & General Merchandise – $2.8 Billion (example keywords in this industry include “zumba
dance dvd”, “proform treadmill”, “weber grill accessories”)
Travel & Tourism – $2.4 Billion (e.g. “new york hotels”, “plane tickets”, “rental car deals”)
Jobs & Education – $2.2 Billion (e.g. “accredited online college degrees”, “online certificate
programs”, “unemployment benefits”)
Home & Garden— $2.1 Billion (e.g. “replacement windows cost”, “appliance repair”, “cabinet
refacing”)
Computer & Consumer Electronics – $2.0 Billion (“ink cartridges discount”, “pc memory”, “online
video conferencing software”)
Vehicles – $2.0 Billion (e.g. “cheap hybrid cars”, “certified used cars”, “Bridgestone tires”)
Internet & Telecommunications – $1.7 Billion (“pre paid cell phones”, “domain registration”, “cable
internet providers”) ……
Business & Industrial – $1.6 Billion (“custom business cards”, “cheap office supplies”, “foam packing”)
Occasions & Gifts – $1.2 Billion ("funeral flowers arrangements", "flower delivery", "wedding gift
registry")
Advertising revenues for Google from these 10 industries accounted for 60% of Google’s 2011 revenues. The remaining balance was in advertiser revenues from other
industries than those noted above
(Just 4% of Google’s revenues came from non-advertising-related sources.)
23. Global Market
2010 2013 ( Rounded off to the even billion)
• U.S: 166, 235, 12.4%
• Europe: 195. 283. 13.2%
• Asia: 1 56, 323, 27.5%
• Rest of world: 56, 128, 29.7%
• Global: 473, 969, 19.4%
Overall Global Internet Traffic is growing at 29 % per year
www.internetretailer.com/.../global-e-commerce-sales-head-1-trillion-...
24. Global eCommerce
China’s e-commerce market is growing 130% a year, a U.K. e-
retail trade group says.
Topics: Aad Weening, Asia, Brazil, China, e-commerce spending, europe400, European Multi-channel
and Online Trade Association, France, IMRG, industry statistics, international e-
commerce, international marketing, Israel, Italy, Japan, Latin America, Mexico, Middle
East, Spain, UAE, United Kingdom
26. Company Contacts
ShawnMarie Lopez- President & CEO
5031 27th Ave NE
Rio Rancho, NM 87144
(505) 903-1706
(505) 752-9201
Email: sevenlopez@aol.com
John Marler, Vice President
3857 Montgomery Blvd. NE
Albuquerque, NM 87109
(505) 610-7421
Kyra A. Liebert, Chief Financial Officer
1921 Verbena Drive NE
Rio Rancho, NM 87144
(505) 450-2724
Email: kyra.liebert@gmail.com
Please Note: This business plan is not an offer or solicitation to invest, buy or sell any security at this time. If the intentions of the
company shall change in this regard at some future time, the company will in accordance with Federal SEC, State and local
laws/rules, file appropriate registration statements or exemptions therefrom.
