**** Comprehensive Site**** Comprehensive Site

Business PlanBusiness Plan

Executive Summary

HMR, Inc. is in process of being formed as a Corporation in ****.

• The Objectives:– to generate profit– to grow at a challenging and manageable rate– to be a good citizen and to help the country

• The Mission: to develop and maintain a portal called ICS to help **** business gain, and optimally benefit from online technology.

Executive Summary-Continued

• The key to success:- marketing and networking- responsiveness to customer needs- high quality, and generating repeat customers

• Sources of Income: The initial primary services offered will be charged based on monthly fees and subscriptions.

Executive Summary-Continued

• The Market:

- the market for this business is wide open in ****

- an **** Web Portal that offers a broad array of resources and services, such as e-mail, forums, search engines, news, and on-line shopping and links to other sites is missing.

- **** is among the few countries in the world that lacks such a domestic Web "supersite.”

Executive Summary-Continued

• Competition:

Several firms currently offer the similar but limited services to those planned by HMR, Inc. (1) www.****.com (2) www.****.org (3) www.****.net.

None of these firms are seen as a significant barrier to the success of HMR, Inc. because, as stated previously, the overall market comprises nearly every service business in the country. In fact, some of these organizations may be potential alliance partners to HMR, Inc.

Executive Summary-Continued

• Rapid Growth:

-$500,000.00

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

2007 2008 2009 2010 2011 2012

Revenue

Expenses

Net Profit

Services Provided• e-Learning

• Online Classes• Virtual Classes• Cyberschool

• e-Business• Credit Card Shopping• Debit Card Shopping

• e-Traveling• Web Mail

• Anti Spam System• Anti Virus System

• News• Local/Regional/National• Stock Market

Services Provided (Continued)

• Advertisement• Banners & buttons• Text links & search results• Multi-format sponsorships• Context-Sensitive Ads

• Web Shopping• Shopping Cart• Secure Server

• Web Hosting• Content Management• Personal Templates

Services Provided (Continued)

• Domain Hosting• Web Log• Chat & Forums

• ICP Messenger• Chat Rooms• Voice Chat & Video Chat• File transferring

Operational Phases

ICS will be designed and implemented in five phases in roughly thirty months @ total estimated cost of $2,382,000.

• Phase 1 - Preparation phase (September to December 2007) (four months)

• Recruitment of experts (mostly programmers) - $30,000• Securing of an office and a data center - $10,000• Purchasing of PCs for the office - $10,000• Purchasing of Bandwidth - $24,000• Purchasing of office furniture - $30,000

Total Cost: $104,000

Operational PhasesPhase 2 - Design phase (January to September 2008) (nine months)

• Expansion of Bandwidth to 5 megabytes - $30,000• Purchasing of more PCs for the office - $10,000• Purchasing of office equipment - $5,000• Recruitment of sales force - $40,000• Office Rent - $18,000• Marketing the ICS to individuals, companies, and government agencies - $20,000• Design and testing of the ICS prototype – $30,000• Design and testing of Farsi modules (including payroll) - $610,000

– E-mail– Web log– Personal web templates– Public and custom design news– Pictures and Videos– Search Engine – News and Views– Music Messengers– Stock Marker– Weather Information– Single Users Passport ID and User name for advance users– Banners & buttons – Text links & search results

Total Cost: $763,000

Operational PhasesPhase 3 - Connection phase (October 2008 to March 2009) (six

months)

• Expansion of Bandwidth to 10-30 megabytes - $21,000• Connection to Fiber Optic Network - $20,000• Purchasing of hardware and software for Data Center - $45,000• Office Rent - $10,000• Configuration of Secure Data Center and installation of hardware and

software - $90,000• Design and testing of Farsi modules (including payrolls) - $470,000

– e-Learning– e-Business– Cyberschool– Content Management

Total Cost: $656,000

Operational PhasesPhase 4 - Implementation phase (April to September 2009) (six months)• Marketing the ICS to individuals, companies, and government agencies - $40,000• Office Rent - $10,000• Recruitment of experts and technical staff - $150,000• Design and testing of Farsi modules (including Payroll) - $174,000

– Travel– Digital Locker/ Brief Case– Messengers– Stock Marker– Weather Information

Total Cost: $374,000

Operational PhasesPhase 5- Testing/Improvement phase (October 2009 to March

2010) (six months)

• Office Rent - $10,000

• Advertising and promotion – $139,000

• Testing and modifications of all modules - $126,000

• Design and testing of other modules as needed - $150,000

• Securing collaboration with other existing Farsi portals - $60,000

Total Cost: $485,000

Operational Expenses by Phases

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

Phase I PhaseII

PhaseIII

PhaseIV

PhaseV

Expeses

Client Target

Individuals:• e-mail, News, Web Log, Personal web templates, etc.

Industries:• Business-to-customer services, Business-to-business

services, especially (a) those with international operations (e.g. import/export firms, travel agencies, freight forwarders) and (b) other information-intensive services (e.g. law, accounting, and consulting practices, banks, financial services, brokers), and (c) major government agencies.

Size:• 50 to 5,000 employees

Client Target (Continued)

An estimated 100,000 businesses fit this profile. According to an industry magazine, only 30 percent of businesses with microcomputers have "online capability" (i.e. are equipped with a modern and telecommunications software). This implies a total market of 70,000 businesses (70 percent of 100,000) with no online capability, and an additional 30,000 businesses (30 percent) that have online capability. but may or may not be using it to their full advantage. It is the latter 30 percent that have the highest potential as HMR, Inc. customers.

Type of Customer

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Religion Individuals Private Bus. Government

Percet of Total

Estimated Revenue

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

2007 2008 2009 2010 2011 2112

Sales

5 Year Profit & Loss

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

2007 2008 2009 2010 2011 2012

Revenue

Expenses

Pre-tax Profit

Estimated RevenueEst. Sales 2007 2008 2009 2010 2011 2012

Advertisement 0 74,000 130,000 200,000 266,000 330,000

Web Hosting 0 110,000 200,000 280,000 410,000 495,000

Web Mail 0 120,000 250,000 360,000 537,000 660,000

Web Shopping 0 30,000 75,000 88,000 137,000 165,000

e_Learning 0 10,000 50,000 75,000 95,000 110,000

News 0 10,000 15,000 40,000 50,000 55,000

Web Log 0 0 15,000 50,000 60,000 65,000

Book Stores 0 20,000 20,000 24,000 28,000 32,000

Auctions 0 0 10,000 33,000 47,000 58,000

Total 0 374,000 765,000 1,150,000 1,630,000 1,970,000

Estimated Costs

Est. Costs 2007 2008 2009 2010 2011 2012

Payroll 50,000 400,000 250,000 150,000 250,000 200,000

Software Dev. 0 469,000 362,000 150,000 220,000 100,000

Advertising 0 100,000 150,000 80,000 80,000 100,000

Office Expenses 50,000 100,000 150,000 120,000 100,000 90,000

Supplies 2,000 12,000 17,000 22,000 27,000 31,000

Utilities 2,000 10,000 15,000 20,000 25,000 30,000

Total 104,000 1,091,000 944,000 542,000 702,000 551,000

Break-Even Analysis

Desc. 2007 2008 2009 2010 2011 2012

Cash-in 0 374,000 765,000 1,150,000 1,630,000 1,970,000

Cash-out 104,000 1,091,000 944,000 542,000 702,000 551,000

Balance -104,000 -717,000 -179,000 608,000 928,000 1,419,000

Total Profit -104,000 -821,000 -1,000,000 -392,000 536,000 1,955,000

B reak-E ven Analys is

-1,500,000

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2007 2008 2009 2010 2011 2012

US

$

C as h-in

C as h-out

B alanc e

Total P rofit

Mission/Strategy/Tactics

How does mission, strategies and tactics relate todecision making and distinctive competencies?

StrategyStrategy TacticsTacticsMissionMission

Strategy•Strategies

–Plans for achieving organizational goals

•Mission– The reason for existence for an organization

•Mission Statement– Answers the question “What business are we in?”

•Goals– Provide detail and scope of mission

•Tactics– The methods and actions taken to accomplish strategies

Planning and Decision Making

Mission

Goals

Organizational Strategies

Functional Goals

Finance Strategies

MarketingStrategies

OperationsStrategies

Tactics Tactics Tactics

Operatingprocedures

Operatingprocedures

Operatingprocedures

Strategy ExampleRita is a high school student. She would like to have a career in business, have a good job, and earn enough income to live comfortably

Mission: Live a good life•Goal: Successful career, good income

•Strategy: Obtain a college education

•Tactics: Select a college and a major

•Operations: Register, buy books, take courses, study, graduate, get job

Examples of Strategies

• Low cost• Specialization• Flexible operations• High quality• Service

Strategy and Tactics

• Distinctive Competencies

The special attributes or abilities that give anorganization a competitive edge.

– Price– Quality– Time– Flexibility– Service– Location

Banks, ATMsConvenienceLocationLocation

DisneylandNordstroms

Superior customer service

ServiceService

Burger KingSupermarkets

VarietyVolume

FlexibilityFlexibility

Express Mail, Fedex,One-hour photo, UPS

Rapid deliveryOn-time delivery

TimeTime

Sony TVLexus, CadillacPepsi, Kodak, Motorola

High-performance design or high quality Consistent quality

QualityQuality

U.S. first-class postageMotel-6, Red Roof Inns

Low CostPricePrice

Examples of Distinctive Competencies