05 Mar Children’s Website Business Plan

Introduction

InteliChild.com provides bright children a fun place to interact with educators and others on the Internet. It first generates traffic, then valuation for investors, then eventually commerce and profit. 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.

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

The Company

InteliChild.com, the current start-up, has four employees. The company was incorporated as a California C corporation owned by its principal founders, at 25% ownership each. (Name Omitted.) 50% of the company was acquired by capital partners. The company operates out of one office. The initial website is at www.citruscoolkids.com.

Our in-house knowledge is our competitive advantage. Our competitor spends five-ten times as much money outsourcing to large companies to perform services that we provide in-house. The same applies to InteliChild.com. Already have the SQL(tm), ColdFusion(tm), and Flash(tm), programming skills.

Products and Services

InteliChild plans to offer an ever-growing number of products across three lines.

• Toys and Games: carefully selected toys and games that appeal to the target market, the parents of the target market, and educators.
• books should include books that appeal to the parents or educators of the target market. These books can be ordered on this site by interested adults who are looking for books about their children. A selection of books can be ordered by the children and sent to them.
• Software – carefully selected software that appeals both to the target audience and to parents and educators.

The Internet reinvents itself approximately every three months. Therefore, the strategy for future growth is to maintain enough flexibility to adapt to new technologies, and quickly adapt to changing circumstances.

The Market

InteliChild.com’s market is growing exponentially thanks to technological advances in education and acceptance of technology teaching aids. Approval and support from school communities (including teachers, PTA, and special programs) will be crucial to our entry into this market.

These are our primary markets:

1. The kids.
2. Parents.
3. Education institutions for children from the upper classes
4. Self-teaching families.

While we are looking to expand international, our first launch will target the American upper class. We know that our clients are very fond of BMW’s and that they have a lot of money for their children. This is because they appreciate the technology we have made. High-quality design is what they love.

Financial Considerations

Our start-up costs are high because of our commitment to dominate the Internet market place.

The Breakeven Analysis shows us that we have achieved steady-state profitability in our first year.

Based on increasing website traffic, the sales forecast assumes that sales will increase per session. From Year 1 through Year 3, sales are expected increase exponentially. Traffic growth will be a key factor in the forecast. We anticipate losing money for at least three more years as we continue to build traffic and strengthen our position for a long-term future.

Objectives

• Traffic measured as unique user sessions. 100,000 unique session in June, Year 1. 450,000 in Dec, Year 1. 3.5Million in Year 2. 5 Million in year 3.
• In dollar sales per unique visitor, the sell-through was $0.58 at its highest in December 1, and then rose to $0.83 in year 2, and $0.92 in year 3.
• The ability to bring in additional investments at economically feasible valuations is what we call value. We must attract.

With moderate investment this year and an additional large Infusion in Year 2, the valuation performance will yield attractive internal rate returns (IRR). 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.

Mission

InteliChild.com gives bright children a safe place to connect with other bright kids, educators, and the web. It generates traffic first and then valuations for investors. Then, commerce and profits follow. It is a healthy place for kids to play, for parents and schools to buy, and a creative and fair work environment for employees.

Keys to Success

1. It is important to retain customers. The website has to be easy to use and quickly viewable. Satisfaction of users is the 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 doesn’t have the staff to handle more sales, so it must be simple and flexible to make sales.
4. The e-commerce project should further establish InteliChild.com presence as a technology leader, not only returning traffic but actually bringing in new traffic.