ThePerfectPresent.com

Application and Web Site

Presented By:

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Business Plan

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Executive Summary:

Our business concept is to create an application used through mobile devices that will

allow users to accurately scan barcodes for “store-less” registering. Users can scan, type, or take

a picture of the good in interest, write in modifications about the good (size and color preference,

store location, aisle, etc.), and store scanned goods in personalized files within the application.

The files or single scans can be sent from the mobile device to selected contacts through text

messaging or email. Users can access files and scans online at the application’s web site. The

application will be affiliated with Google Search, and allow for products to be searched online

for price variations and store locations. Users will be able to use the application for free with

advertisements or without advertisements for a price. The advertisements will be a big source of

our revenue streams.

Mission Objective:

Our mission objective is to provide users the ability to scan, store and share items’

information through the application and joint website in order to compare prices, make shopping

lists, and purchase items.

The product is an application for the mobile device that will scan UPC codes using the

phone’s camera feature. The application records the scanned goods to create lists and registries

with items’ photos, price options from different stores and a product description. A

corresponding web site can be used to access lists and share with others through many outlets

including: email, Facebook, Myspace, and Twitter.

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Customers can use the website to search for the best product price using Google’s

product search located on our site. Customers can share lists with contacts on the application and

the web site.

Target Customers:

Our target customers include anyone trying to buy products at the best price offered.

Customers include: Bridal shower/baby shower attendees and recipients; housewarming;

birthday and holiday givers; people unsure of what to get others; relatives, cousins, parents, aunts

and uncles. Our customers are also not limited to personal shopping either; the application can be

used for endless applications, such as grocery lists, or inventory shopping for businesses. Our

target customers are people who have the desire to shop easier.

Barriers to Entry:

The company must establish a profitable relationship with Apple’s application store and

Google’s product search. Our application must be available within Apple’s application store.

Products must be searched using Google’s product search, the best search engine available. As

far as making the application’s for other smart phones other than the iPhone, we will still need

the Google product search, but there are minimal barriers to create an app for other phones.

Our Competitive Advantages:

Best scanning capabilities and technology available

Clear and organized application and web site

Affordable and accessible

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No ties to one store gives customers the best price available

Technology Adopted:

The application uses laser scanning to record UPC labels

The correspondence between website and mobile application

The mobile application

Google’s product search

Trend Analysis

Everyone is application crazy. We want to provide people with the latest and greatest

application for gifting. What is great about our company is that the startup cost is very low and

the price of the application is low considering it is comparable with our competitors’ prices. One

of the major trends that I have noticed, especially with the current conditions of the economy in

the United States and even others is that discretionary income has fallen short in consumer

spending. This is a great opportunity for our company because people have enough money to

purchase our application ($1.99) or use the free version that contains advertisements in order to

save money by buying exactly what they need.

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Table of Contents

Basic Details of the Business 8

Value Proposition 8

Revenue Model 8

Customers’ Needs 9

Major Features 9

Limitations 9

Supporting Information 10

Competitors’ Information 15

Research and Development 15

Costs 15

Time Requirements 15

Future Enhancements 16

Risks 16

Strategic Position 16

Risk Assessment 16

Porter’s Five Forces 17

Technology Adoption/Trend Analysis 18

Technology Threats 18

Technology Opportunities 18

Market Size 19

Target Market 19

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Market Share 21

Demographics & Behaviors of Customers 21

Marketing Strategy 21

Financials 21

Budget 22

Projections 23

Break Even Analysis 24

Social Impact 24

Structure & Form 25

Founders 25

Risk Assessment 26

Conclusion 26

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The Basic Details of the Business:

The business will generate revenue in a few fashions. First there is the sale of the

application. A version will be available for free for users but will have advertisements within the

application. We will sell advertisement space to stores/products/services that are related and

hopefully beneficial to our customers. So basically we will be selling ad space on the site and

application and selling the application.

The Value Proposition to the Customer:

Customers will be able to keep record, create lists, organize shopping, and search for the

location of the products with the best price available. On the giving side, customers will be able

to have confidence in their selection, getting people exactly what they want or need, knowing

that the gift isn’t already being given or that they already have it.

Revenue Model:

Customers will purchase the application for a flat $1.99 to use the application that is

advertisement free.

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Customers will use the free version of the application. We will receive income from

selling advertisement space.

No current funding is being provided. A loan will be acquired for the initial start up costs.

It is estimated that the cost to design and implement the site and application will be $20,000. An

additional $15,000 is being requested as well to cover any additional and unforeseen operating

costs.

Customer Needs:

Our customers need to give gifts their receivers want in the right size and color if

applicable, with confidence that they will not be duplicating gifts. The gift receivers need to

create lists with ease and comfort knowing that their givers will be able to buy from an organized

selection at the best price available. The application can also be used for personal lists, or for

business lists as well.

Major Features:

Scans items and can search for the best price for those items.

Benefits:

Finds the best price for the desired items

Limitations

Some specialized or handmade goods will not have a UPC code or store specific code

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Services will also not have a UPC code

Although some items might not have a UPC code to scan, the application will allow a

person to use photos and typed requests.

Supporting Information:

First, a customer would purchase the application or install the free version to their iPhone.

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Then the customer could scan goods they would like to have using the camera on the phone

along with the application.

The camera scans the UPC label and stores the items in lists created by the user.

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The user could go to the website to view and share their created lists.

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Users can easily navigate through the site to personalize their lists, naming and organizing

however they choose.

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Users can search to find their scanned product at the lowest price by using Google’s

Product Search within our site.

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Information of Competitors

There is one major competitor in the application department and that is RedLaser by

Occipital. RedLaser uses laser technology to scan UPC codes but doesn’t allow for list making.

RedLaser offers its’ SDK information to allow other application creators, such as ourselves, to

use their camera enhancement technology to create laser features for our application.

Another competitor online is myregistry.com. This site boasts any-store registering but

can only be accessed online. There is no application hosting this site for mobile devices, and

items cannot be scanned in stores and added to site lists.

Of course another major competitor lies within individual stores’ registry programs and

wish lists in stores or stores’ online sites. However you are bound to each individual store and

site and are unable to compare prices with ease.

Research and Development:

Costs:

The application could be created using Apple’s application development program. The

cost of using their program is $99 dollars a year along with 30% of the sales revenues. From my

research the average cost to create an application and site such as this is around $10,000 (200

hours at $50/hour).

Time Requirements:

We are allowing for one month of creation and launching of the site and application. The

first two weeks will be dedication to creating and developing the application and site. The third

week will serve as the trial period and advertisement space will be sold. The fourth week will be

the official launch of the application and will be made available to customers.

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Future Enhancements and Expansion:

Currently the official plans are to create an application to be used with the iPhone.

Hopefully over time the application will be able to be integrated to any mobile device with the

capabilities similar to the iPhone. Also future integrations involving using the application for in

home grocery shopping and for other software uses will be possible.

Risks:

The application is depending greatly on the success of iPhones and the Apple Company

as a whole. Therefore Apple needs to maintain a profitable and successful relationship with its

customers so that we may do the same. Other competition such as copycat applications could

propose a risk for our company as well.

Some external factors that could affect our company in the future are of course the

economic conditions of the country and our customers’ countries as well. The government could

put restrictions and taxes on businesses that could affect our company. As mentioned before, the

threat of competition is a reality, along with in-store registry systems and store site lists.

Strategic Position:

Looking at Porter’s Five Forces to determine our strategic position, I would say that

industry rivalry is quite high. However there isn’t a product exactly like ours on the market yet.

There is competition between apps. There will be competition against stores and their registry

systems. I think the company will sit nicely with the other different applications and will be

advancement to what already exists.

Risk Assessment:

“What-if” scenarios include the following:

Incredible amounts of competition

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No ad space sells

No applications sell

Porter’s Five Forces Model:

Potential Entrants (Threat of Mobility): The threat of new entrants is very high

considering the codes are available to anyone to create a laser scanner from the phone.

Buyers (Buyers’ Power): The amount and influence of buyers’ power to our company is

about average along side our competitors. We depend on buyers’ (both customers and

advertisers) in order to generate revenue.

Substitutes (Threat of Substitutes): The threat of substitutes is fairly low considering the

company is a “substitute” to other already existing methods of registering.

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Suppliers (Suppliers’ Power): We and the other application companies have a mediocre

suppliers’ power. In order to stay competitive we have to maintain fairly low prices for our

applications and Apple controls a great deal of our success within their iPhone.

Industry Rivalry: Considering the forces, I would say that industry rivalry is quite high.

However there isn’t a product exactly like ours on the market yet. There is competition between

apps. There will be competition against stores and their registry systems. I think the company

will sit nicely with the other different applications and will be an advancement to what already

exists.

Technology Adoption/Trend Analysis:

RedLaser

Application

Site

Google Product Search

Technology Threats:

New application/sites

Technology Opportunity:

Better scanning capabilities

iPhones offered to other cellular carries (spread from AT&T to Verizon and Sprint)

Trends:

People buy popular applications, even if they only use them once or twice.

One-time sales

Mobile applications are becoming the new way to purchase gadgets and tools to have in

one device to make people’s lives easier and organized, entertainment.

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Market Size:

The market size for this application alone is outrageous. The application for

PerfectPresent.com is available to anyone with a smart phone. Just in the last quarter or 2009, a

total of 1.13 billion mobile phones sales were recorded and of that number 175 million were

Smartphone sales. Integrating other uses and technology within this application will stretch this

market to almost anyone. With a possible integration of Groceries your Way, the market size is

stretched to anyone that is capable of using the Internet and ordering groceries or scanning

specific groceries while at a supermarket. With these two applications, another possible

integration of the software development for restaurants can help. This software can use both of

these applications to increase the value and simplicity of the software. With all of the possible

innovations combined, the market size is anyone that is capable of using the Internet.

Target Market:

Different marketing segments will be targeted with each innovation. For the application

using the website, a younger age market segment will be targeted. This segment will also include

people that love to shop or people that need to make registries such as a brides and grooms,

future mothers, and birthday boys or girls. They will also be computer savvy and will be very

familiar will the use of Smartphones. With future integrations the market segment will typically

be an older generation that is unable to get around easily. Eventually this segment can grow to

busy mothers and fathers, or just people that are busy in general and need more convenience in

their lives.

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Market Share:

The current market share for Smartphones that the application can be used on is divided

between RIM (Blackberry) with 41.6% in December 2009 and Apple with 25.3% in December

2009. Using the current market share, PerfectPresent.com and the website can take advantage of

the larger parts of their target market.

Demographics and Behaviors of Customers:

The demographics of our customers will be located anywhere in the United States that is

capable of getting the Internet and cell phone coverage. Also anywhere that has stores where a

customer can make a list. All of our customers will have one need in common with each other,

convenience. Today, anyone no matter how old or young wants and needs convenience in their

lives. These three technologies will be able to give our customers convenience in the different

ways that they may need it. A young college student may need to make a list of items for his or

her dorm room that a mother might need to buy. The easiest way to do this is go online and see

what he or she needs. An older couple may have a hard time getting to a grocery store. With

possible future integrations and the integrated website from PerfectPresent.com, this couple will

be able to pick out the groceries needed and have them delivered. Therefore, the behaviors of our

can be anywhere from unpredictable to spontaneous or even neediness.

Marketing Strategy:

The Perfect Present Company will have to have a very flexible and strong marketing

campaign. The key for our company is to keep marketing costs low, while trying to reach

everyone in our market. We will use different marketing venues, from traditional to modern.

Social media marketing has become a very affordable way to reach the masses, and includes

posting advertisements and updates on sites such as Facebook, Twitter, Four Square, and

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Myspace. In addition to these sites, our own site will be updated frequently, while remaining

consistent with all ads and representations of Perfect Present. Even “word of mouth” will play an

important role in marketing our company. The Perfect Present application should become a

trendy and helpful way to shop and create lists, something that we want everyone to know.

The Perfect Present Company should be able to maintain customers by offering a great

product and gain additional customers through our marketing efforts. Of course competition is

inevitable, so competitive pricing and consistency within our site, application, and marketing

should prove to override such threats.

Financials:

Key Assumptions:

The biggest assumption to make this product successful is that it will sell. The product

needs to be a hit, and spread around for download. If the product is unable to sell, then no

revenue will be earned. Another assumption is that the product and website will be stable enough

to support many users. Every time there is a glitch, or a bug in the program, it could mean lost

revenue. To be a profitable product, we are going to have to be able to reach a large sized

market. We are assuming that the product will spread around through word of mouth. Another

huge assumption is that we are assuming that companies are going to pay us to advertise for

them, if we are unable to get clients to do this, we will not be able to make any money off of the

free version.

Budget:

As listed previously, the proposed startup cost will be roughly $20,000. We will look to

borrow an additional $15,000 to pay for any additional operating costs that need to be covered

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until the actual cash flows start rolling in. The $20,000 should cover any computer and software

purchases.

Operations:

The overhead cost should not change much for the first 3 years. The estimated overhead costs are

listed below:

Rent- $700/month

Utilities- $500/month

Domain/server cost- $50/month

Apple fee- $.60 per sale (30% of $1.99)

Paypal charge- $.02 per sale (2% of $1.99)

Loan payments $972.25/month (assuming 35000/36months, with no interest)

Total monthly costs -2232.25

Total revenue per app sold -$1.37

Total revenue per ad. $100/month

So to break even, just selling apps, we would need to sell 1630 apps per month just to cover

overhead. From an advertising standpoint, we would have to have 23 clients to advertise for to

cover overhead. One advertisement is equal to selling about 75 apps. Advertising is clearly a

bigger portion of revenue. After covering the overhead cost, the salary cost of the executives will

need to be covered. Looking from the selling of apps, there will need to be either 157 thousand

apps sold yearly or 180 advertisement clients with a full year of advertisements to cover the

executive salaries, or a combination of the two. After all overhead and salary costs have been

covered, additional revenue will be reinvested into the company to develop new software

applications. All new applications and developments can help increase revenues for the

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company. An ideal revenue plan would be for half of the revenue to come from selling apps, and

the other half to come from the advertisement side of the company. We would like to have an

average revenue stream of $30,000 monthly. This would come from the sale of 1500

advertisements, and 10950 applications.

Break Even Analysis:

To break even, we will need to sell 2450 advertisements per year, or sell about 177000

applications. A much easier feat will be the sale of advertisements throughout the year. Once the

product takes off, it will be easier and easier to sell advertisements.

Social Impact Analysis, Organization, Risk Assessment

Social Impact:

Our Product has the potential to have a great social impact on the community. People

will fill better about buying gifts, and know they are getting someone exactly what they want.

Stores will have fewer returns because people will be getting exactly what they want. Everyone

who uses our product will have the ability to affect it and make it better. We will have updates

often to continuously make our product better. People will have the opportunity to write reviews

and tell us what they want to improve, what they like, and what they do not like. We want our

customers to be happy so we will try to do whatever we can to continue making our product

better. Because of this the community is directly part of the development process.

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Organization: Structure & Form:

Founders/Management Team

President: Mary Ross

Experience: Has owned several small businesses and run them successfully. Has a lot of knowledge on what it takes to get a business up and running. Has led a lot of projects

Education: B.S. in Management and Marketing and received an MBA. Duties: Will oversee the entire operation. Will work directly with each founder to make

sure the company is going in the right direction. Compensation: $ 65,000 Equity in Venture 35 %:

VP of MRKT: Kirby Thomas

Experience: Has worked on several large marketing projects. Worked with top marketing managers and has years of marketing experience.

Education: B.S in Marketing and received her MBA. Duties: Will handle all of advertising and public relations. Will make sure the company

keeps a good image and that everyone knows what we are and what we stand for. Compensation: $ 45,000 Equity in Venture 15 %

CFO: Mark Winebrener

Mary Ross

President

Kirby Thomas

VP of MRKT

Mark Winebrener

CFO

Kirkland Dayberry

COO

Public Relations Advertising Accounting Finance Production Sales

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Experience: Worked under CFO for a large company and worked as a CPA for an Accounting firm.

Education: B.S. in Accounting, received MBA, and is a CPA. Duties: Will handle all of the accounting and finance of the business. Will make sure

that the money is right for the business. Compensation: $ 50,000 Equity in Venture 20 %

COO: Kirkland Dayberry

Experience: Worked in production and sales positions for over five years. Worked directly with a COO at his last job who trained him to become a COO.

Education: B.S. in Management and received his MBA. Duties: Will be over the production and sales part of the operation. Will make sure that

our product is continuously up to date and that our sales are where they need to be. Compensation: $ 55,000 Equity in Venture 30 %

Risk Assessment:

Threat of Substitutes Economy situation could limit growth Technology could change People may not see all the benefits Technology Trend changes

.Conclusion:

I believe that our business plan is sound and should be granted funding for the business model

has been thoroughly reviewed and assessed for possible risks that would hinder revenues. We

need $20,000 to start the business and have enough funding to maintain its growth for the first

year, without income. From the $20,000, $10,000 will be the actual development costs and the

other $10,000 will be used to operate and maintain the application and site for an entire year if

there were no additional income generated. Our company is not trying to reinvent the wheel; we

are simply making a few technology advancements on an already existing profitable process.

Thank you for your valued time in reading our company’s business plan.

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