Up 2 Date Final (1)

8/3/2019 Up 2 Date Final (1)

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Up 2 Date Inc.“Up 2 Date”

BA 4308 EntrepreneurshipProfessor Madison Pedigo

Haris FazlaniAsra Rab

Bilal Muhammad

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Table of Contents

Nature of Business – 3

Statement of Confidentiality – 3

Executive Summary – 3

The Company and Opportunity – 4

The Problem or Unmet Need – 5

Product, Services & Technology – 8

Value Proposition and Business Model – 9

Industry and Market Overview – 10

The Marketing Plan – 12

The Operations Plan – 15

The Financial Plan – 17

Risk Factors – 19

Appendices – 21

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Nature of Business

Up 2 Date is an ambitious start-up software company dedicated to bringing a levelplaying field to the world of technology and social media. Our products focus on teachingconsumers how to effectively use technology and social media for their personal or

professional needs.

Statement of Confidentiality

This business plan is being disclosed to all who are present at this meeting. This isstrictly for your consideration. By being in this meeting room, you have agreed to adhereto all laws on trade and representation of this product(s). Theft of this product, or passingthis information to unauthorized persons is prohibited under due process of law. Violaterswill be prosecuted.

Executive Summary

Two-thirds of the world’s Internet population visit social networking or blogging

sites, accounting for almost 10% of all internet time, according to a new Nielsen report.While social networks started out among the younger audience, they’ve become more

mainstream with the passage of time. Not surprisingly the audience has become broaderand older. This shift has primarily been driven by Facebook whose greatest growth hascome from people aged 35-49 years of age (+24.1 million). Our team has researched this phenomenon of “social networking” and developed software targeted towards the userwhich isn’t necessarily “techy”. We believe our software will be able to bridge the gap of

knowledge and technology as we educate and empower every user.Our mission at Up 2 Date INC is simple

“To use our unique skills to provide uniform accessibility to the world . Createinformed users which further enrich the social network” .

Up 2 Date comes in a software bundle and molds a curriculum around the learningtendencies of the individual. Social networking outlets such has Facebook, Twitter,MySpace and LinkIn will be explained and taught from the very basic principle to themore complex actions. For our customer, our software will:

Provide class-room type environment in the comfort of their home. Large market

for older users who have trouble adjusting to changing technology. Offer people the opportunity to learn and understand the social media craze

sweeping the world.

Provide assistance to operate modern electronics such as computers, smart phonesand tablets with confidence and to the product’s potential.

Establish a unique style of teaching tailored around how the individual learns.

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Benefits of our products will be felt through the rise of socially aware and educatedusers. There is absolutely no reason why mature markets using social outlets should not be on the same level as those generations who grew up in the “technology era”.

Right now, our company predicts little competition; however, there are some products

on the market that incorporate the same concept, but these products still requirecustomers to attend local classes and have age requirements. Our point of differentiationlies in the customizability of each course to the requirement of the customer. Usingsimilar models as successful programs such as Rosetta Stone, we believe our model cansustain this advantage especially if proper time and money is dedicated to marketing andcreating brand awareness. As technology keeps evolving so will the gap between user knowledge and technology potential, this provides our company with a segment to target.

Our target market initially involves the domestic market of the United States usingdistribution outlets such as Barnes & Noble, Fry’s Electronics, and other media stores.

Once we have established our product on the market, we will expand our target market to

include the same mature segment but internationally.Our company is hoping to acquire 1.5 million in marketing and 100,000 units ininventory to establish our branding. Marketing will be essentially in establishing our company as the leading provider of education. Doing proper market research will allowus to create a program which is compatible to all types of learners and thus provide anexperience which is one of a kind. With your invested interest in this company, we can become the brand leader in social education around the world with expansion into ever-evolving technology.

After extensive financial research, we have projected sales for the first fiscal year ending and projected sales for years two and three. In all, the cost of creating the software(per unit) is $40, and if sold at our planned price of $100, we will be making a 60% grossmargin per software sold. With the help of investors and the determination of our team,Up 2 Date Inc. will deliver on our promise to level the technology and social media playing field.

The Company and the Opportunity

Company Information

Up 2 Date was founded in early 2011, as a direct result of tremendous demandfor a product that would bring (and keep) the general population up to speedin regards to ever-changing technology

Up 2 Date’s first and most important product is a software application by the

same name. The software first gauges where an individual is in theirtechnological literacy and tailors itself to move at a pace that is comfortablefor each particular individual.

Our mission statement: “To use our unique skills to provide uniformaccessibility to the world”

Our goal: To make sure that those in need of a better way of understandtechnology receive it, and to thus close the gap between the technologyenthusiasts and the laymen.

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Product Information

Our product, “Up 2 Date” comes packaged as multiple software CD-ROMs.Although some may consider this format outdated, this is the most accessibleformat for our target market according to our research.

There will be three CD-ROMs in each package.

This will be our first flagship product and will establish our company identity,which stems from our goal and mission statement.

The product will come in a small 8 inch x 11 inch x 3 inch package that willbe sold in retail stores where CD-ROM software can be found like Best Buy,Fry’s Electronics, Barnes & Noble, Borders as well as online retailers such asAmazon.

As far as competition, there are small localities that have built modulesspecifically to teach technological literacy to a particular group, like teachers,students, or new employees. There is no software that tailors itself to theneeds of each individual consumer (generally elderly consumers), withvarying levels of demographics and levels of experience. Thus, we have a

great competitive advantage. Up 2 Date will cover mostly Internet based applications, such as Facebook

and Twitter. There will also be more basic programs based on mobile devicessuch as iPhones and iPads.

Research & Development costs will be high, but with an aggressive marketingplan and a strategic price points, the amount of units we move will hopefullyoffset that within a twenty-four month span.

Location

We will be based out of uptown Dallas, TX and will start in a small office tosave money on rent and utilities.

We will eventually expand to a bigger office space on the outskirts of northernDallas, because it is cheaper and more efficient to headquarter a corporationoutside of a city rather than inside.

Personnel

The company will start with Bilal Muhammad, CEO, Haris Fazlani, CFO, andAsra Rab, CMO in our three-office suite.

We plan on taking advantage of virtual assistants overseas and outsourcemenial tasks and research to save money and raise efficiency.

We will eventually after the second fiscal year and hire new managers to helpwith the workload.

The Problem or the Unmet Need

Americans are more likely to say computers (and knowledge of computers)widen the gap (45%) in income and opportunity between the haves and have-nots

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in society than to say computers narrow the gap (11%) or do not make much of adifference (39%) (NPR Online).

Americans over 60 are only half as likely to have ever used a computer asyounger people. In fact, so few older Americans have any experience at allwith the latest technological advances (only 22% have ever even used the

Internet) that overall attitudes are clearer when one looks at the under-60group. (NPR Online)

More than two-thirds (68%) of working Americans under 60 use a computerat work, and 84% of them say it is essential for their jobs. About one-third of working Americans under 60 (34%) have access to the Internet at work, andof those who do, 63% say it is essential for their jobs.

According to the chart on the next page, the amount of Internet users hasgrown exponentially and will continue to do so within the next few years.With internet usage come increased technology usage, and the majority of these users are in the “Generation – Y” category (ages 15 to 30).

It’s clear to see here that people over the age of 55 are falling behind in terms

of technology, and this is where Up 2 Date comes in. As of right now there isno active organization out there that addresses the technological needs of theprevious generation, thus leaving not only unable to use new technology, butsometimes even at a severe disadvantage when competing with younger, moretech-savvy individuals in today’s barren job market.

We plan on fully addressing the needs of this demographic and bringing themup to speed so that everyone is on a level playing field.

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Price

In terms of the price, our product is priced higher for the best quality, betterinstructions, and better implementation of user-friendly technology.

Product, Services, and Technology

Each Up 2 Date bundle comes with the 3 software disks, instructions, and warrantinformation.

Minimum requirements to run softwareo Windows 2000, XP, Vista, 7 or MAC OSo Processor Speed: 500 MHz

o Available RAM: 128 MBo Available Hard Drive: 125 MBo Display Resolution: 800 X 600o Internet Connection required

$0

$50

$100

$150

$200

Price

Price

UP 2 DATE

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After the software installs the program launches and begins the self-assessment,which consists of the software learning how much the user already knows andthen adapt and tailoring a learning pace and curriculum meeting the needs of theindividual.

Here the user will select which application they want to learn and from there the

course will begin. Our main goal is to individualize the education for our customer and mimic a

classroom environment, which encourages the learning of new ideas.

The software will then begin to teach the basic foundations of each applicationand continue building towards complex actions like a staircase. In every step theuser will be encouraged to try what they are learning directly on their own profilesto solidify the lesson taught. In addition, each lesson will allow users to ask questions about specific topics which will be answered.

Value Proposition and Business Model

Our product is unique because it tailors the learning experience around eachunique individual. Rather than conforming to how everyone learns, the softwareallows for users to move at own pace allowing them a better opportunity tounderstand and use the technology around them. The true value proposition lies inthe ability to educate individuals about fast-evolving technology in order toimprove the quality of life. Continued advancements in technology will directlylead to the knowledge gap, which in turn will provide us with our target market.The incorporation of social media has pushed the need to adapt and learn to newtechnology to keep up with the competitive world.

Our company has evaluated that customers want to be educated at their own pacein the convenience of their own homes. Our company will push our products intomajor retailers; such as Barnes and Noble and Borders. Using social media outletswe will work to create product recognition and awareness using advertisementsand hosting events in local cities as part of the product launch. The ability to reachsuch a great number of people using Facebook or Twitter will allow our productto have brand awareness even before it reaches the major retailers. This will allowour product to drive in customers and thus keep a good relationship with ourdistribution channels. We will overcome other competitive products by focusingon quality and price by the changing market demand. Most importantly we willbrand our products by highlighting the customizability of our software and

developing a market theme with a consistent message of bridging the knowledgegap.

Short-terms goals include creating brand awareness, product awareness, andtargeting the correct segment. These will provide the company with guidance onits future expansion. Initially the company is targeting individuals in the U.SMarket with the ability to expand into future markets. With such a vast tech- usergroup, the United States provides an excellent foundation on which the companycan be built into a premiere brand. Long-term expansion into international

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markets pending the growth of domestic market will be in the form of licensingour software to companies around the world, which will provide the same qualityproduct but with adjustments of language, culture, and market needs. Thesoftware will start but will not be limited to social media, and will look toaggressively expand into technology areas in which there is gap of knowledge

between the users. Such as smart phones, tablets, and personal computers.

The Industry and Market Overview

Unmet Market Needs:

Americans over 60 are only half as likely to have ever used a computer asyounger people. In fact, so few older Americans have any experience at all withthe latest technological advances (only 22% have ever even used the Internet) thatoverall attitudes are clearer when one looks at the under-60 group. (NPR Online)

It’s clear to see here that people over the age of 55 are falling behind in terms of technology, and this is where Up 2 Date comes in. As of right now there is noactive organization out there that addresses the technological needs of theprevious generation, thus leaving not only unable to use new technology, butsometimes even at a severe disadvantage when competing with younger, moretech-savvy individuals in today’s barren job market.

We plan on fully addressing the needs of this demographic and bringing them upto speed so that everyone is on a level playing field.

Opportunities:

Up 2 Date can be used by anybody struggling with the technological aspect of

social media. A category which is open to many different customers, each withtheir own unique needs.

As technology advances and new products emerge, Up 2 Date will providepackage downloads online to upgrade the existing software.

Up 2 Date could also develop a way to receive suggestions from consumers fornew products to include in the next package.

Market Entry:

A large barrier to entry would be start-up costs, including the extensive R&D,promotion and marketing that would need to be done in order to penetrate themarket well.

As long as the marketing is done well, the anticipated response to the product isfavorable.

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Analysis of Competitors:

SeniorNet.Org: A non-profit organization aimed at providing technologyeducation for adults 50+. They have an online learning center as well as locallyoperated learning centers throughout the United States and internationally. An

advantage of this company over Up 2 Date is having a physical classroom setting.

Basic-Computer Skills: A website with specific tutorials for computer basics,such as Microsoft Office and Internet/Email. Its limitations are that it onlyprovides the basics.

The internet is one of the biggest competitors because it provides the customerwith abundant information and guidelines’ regarding all inquires.

Competitive Matrix:

Product Name Price All

Ages

Customer

Sets Pace

Computer

Basics/

Microsoft

Office

Internet/

Email

Social

Media

New

Technologies

Up 2 Date $100 Yes Yes Yes Yes Yes

SeniorNet

(online and Learning

centers)

$40annualfee forclassesor $199for

classesandonline

No(50+)

Yes(online)

No(classes)

Yes Yes No No

Basic-

computerskills.com

About$50 perclass

Yes Yes Yes Yes No No

Industry and Market Forecasts:

Future Outlook and Trends: There will always be a need for this product becausenew technological advances and upgrades are constantly being developed.

As new products come out, Up 2 Date will upload packages that can bedownloaded as upgrades to the existing software.

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Marketing PlanAt Up 2 Date we are committed to our product; we value the nature of our customer’s

peace of mind and confidence in the product we offer. This is why we ensure thesimplicity of our learning technique and back it 100%. In the beginning, marketpenetration will be difficult due to no prior brand awareness, however after the

consumers are aware of the product, Up 2 Date will emerge as a competitive force in thedeveloping market. To achieve this goal we have designed a marketing plan that willensure success through means of implementation, penetration, and continuation.

Brief Business Model

o Value addedo Our product is unique because it tailors the learning experience around

each unique individual. Rather than conforming to how everyone learns,the software allows for users to move at their own pace.

o Distribution Channels o The various distributions channels for Up 2 Date include numerous stores,

such as retail and specialized. Making the product available directly onlineis a future goal of the company; however current priority is centered ongetting the product physically into stores.

Current Business Situation

o Up 2 Date developed the specialized curriculum through a series of trial anderrors. As social media continued its speedy development, there was a gap in the

ability of the user and the ability of the media outlet. After recognizing the needfor a product that better linked the two, Up 2 date developed a learningcurriculum designed especially for each individual. The self-assessment feature inthe beginning will allow the program to recognize the user’s prior knowledge and

areas on which added emphasis is needed. Key features in the program include theability to apply what is learned directly onto the social media of choice and thecapability of the user to input direct questions into the program and be respondedwith an appropriate answer and guidelines.

o Currently there aren’t any major companies that are strictly targeting the socialmedia storm and thus provide our company with significant competitiveadvantage as we expand. Although the Internet provides the consumer with

information for free, its ability is only to the extent of the searcher. Just becausean individual may know what they are looking for doesn’t guarantee they willlook in the right place. Our job at Up 2 Date is to bring the technology to thecustomer’s doorstep. We designed a product that is easy to understand by themost tech-savvy individuals to people who have never used a computer before.

o The future of Up 2 Date solely depends on how well the product does on themarket. As a company we are well aware of the dangers of distributing a newproduct to the public, and once we have established brand awareness, we hope our

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product will take off. Once the customer realizes the benefit and easy to usefeatures of Up 2 Date, we have no doubt they will recommend it to other friendsand family.

Target Market

o The first obvious market for Up 2 Date to target is people struggling withsocial media applications. Rather than focusing on a certain age group only,we believe our product can help refine the skills of those individuals who arepart of the social media circle, and according to research that group iscomposed of many. For example, UTD student are just as fair of a targetmarket as Facebook users over the age of 40. The whole point of our softwareis to level the playing field for all tech-users.

o Another target market is businesses which choose to expand on the socialmedia front. Using our software they can better learn how to appeal to a wideraudience and use all the advantages of social media. For example, if a

company wants to be part of viral marketing, but doesn’t fully understand howgroups work or tagging people in Facebook, then they can use our tool tobetter achieve their marketing plan.

Market Segmentation

o Our market segment initially is focusing on updating the older generation andnon-tech savvy users into the upgraded realm. Over time this will change,because many users who are from the current generations will see the benefitsand acquire the product.

o Since our product is individual to the needs of the user, the software on itsown is segmented to target different customers.

o With Up 2 Date manufacturing and selling the product, we are cutting out themiddleman. Thus the prices our customers will receive will be minus the usualpercentage tacked on by retailers.

Market Focus

o Our strengths and point of differentiation the primary focus on our marketingstrategies. We know there isn’t a product out there that is designed solely for

the expansion of social media. With a program designed similar to those of Rosetta Stone, we want our learning method to become a trendsetter in themarket.

o After conducting surveys of 20 UTD students, we found the majority of ourfocus needs to be on older generations rather than the tech-savvy students.While a few of them mentioned they could improve their social media skills,most believed they had a full understanding of the topic. It is very importantthat we make it obvious to consumers how we are providing value into theirlives beyond the basic computation. Doing so, we plan on creating a

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marketing plan around the fact that at Up 2 Date we integrate technology andsocial media to enhance and simplify the consumer’s life.

Strategy and Tactics

o Our first step in advertising will consists of spreading brand awareness andhelping the customer desire a change of state. Through media blitz, Facebook,Twitter, bloggers, and other social networking platforms we will spread theword for Up 2 Date.

o Using technology based magazines such as Popular Science, InfoWorld, R&Dwe will further appeal to our segmented market. While many of the users mayalready be tech-savvy that read those subscriptions, we are hoping the productknowledge will help them recommend the product to others.

o Flyers will be inserted in the Sunday newspapers along with moreadvertisements being sent by mail. Coupons that will promote a free-trial of the software will help reel first-time users and eventually convert them to

loyal users.o Eventually infomercials will be created to show the ease of use of the software

and appeal to the older crowed which likes to order things from the phone line.o After product awareness is established and retail stores are carrying our

software, an online store will be launched to handle software upgrades as wellas future add-ons. Remember that social media is just the beginning for ourcompany as we believe we can design software to help level the playing fieldin all aspects of technology; including computers, smart phones, and tablets.

o After further market analysis, the first 6 months will be crucial on hitting themarket hard with advertisements and marketing ploys. Using guerillamarketing along with viral marketing we believe we can capture the market byusing the very platform (social media) on which our product is based.Although 6 months is nearly not enough time to establish a brand and aproduct, our goal is to first get our product out there, establish our name as aquality brand, and then proceed to take over the market. As sales increasemore money will be allotted for advertising and marketing. However the bulk of the money will be redirected to R&D.

Future Sales Forecast

o We forecast sales to be slow in the beginning due to the nature of thesoftware. However, once we execute our plans for advertising, promotions,and creating buzz we believe the consumer will realize the value of oursoftware. Due to the growth of social media, mastering this new science willbe pivotal in the upcoming years.

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The Operations Plan

Company’s operation

Up 2 Date will initially begin in Dallas, TX as a software manufacturing plant

with an adjacent headquarters office space. The product will be made locally and shippedto national and web-based retailers. Three partners, who will have positions on theexecutive board, will start our company. We will form a limited-liability company. Aninitial investment of $280,000 will be obtained from outside investors for a stake in thecompany of up to thirty percent.

Flow of orders and/or goods/services

Up 2 Date will send prototypes to different technological retailers and thenmanufacture the software based on order forms filled by these retailers.

Personnel, facilities and equipment

Main headquarters in Dallas, TX will be connected to warehouse that housesthe manufacturing plant, storage facility for inventory, and research anddevelopment area

o Advantages: quality control, low labor cost, low rent/land costs,product will be made in the USA

Equipment will consist of CD-ROMs, cardboard and plastic packaging,computers, printing stations for manuals, and miscellaneous office materials.

o Expenses: facility lease, office and storage equipment, utilities, taxes,payroll, raw materials

As the operation grows, the manufacturing and distribution processes may becontracted out to separate manufacturers for mass production.

o Multiple headquarter locations may be necessary if expandinginternationally

Labor will consist of the executive board, manufacturing and production team,distribution team and marketing team.

Use of proceeds from financing

A $280,000 initial investment will be obtained and used for prototypes, marketingand facility maintenance. The money for the first two years will be divided as follows:

$80,000 for SG&A expenses, $120,000 for research and development, $60,000 forequipment and facility costs, and $20,000 for a safety buffer. After 1.5 years, thecompany is projected to break even, with the operating cash outflows equal to the cashinflows. After this point, the initial investment will be gradually paid back and thecompany’s profits used to finance the production. The cash flows will be sufficient to

fund our expansions starting in year 2 without taking additional loans or investments.

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Risk Assessment

SWOT:

Strengths Weaknesses

No direct competition

Strong unmet need

Strong management team

Made in the USA

Inexperienced

High initial marketing expenditures

High startup costs

Limited market (mostly elder people,according to initial research)

Opportunities Threats

Partnership opportunities with

senior centers and low-income

schools

Constant technological advances

create constant demand for product

Outsourcing

International expansion

Low barriers to entry

New entrants (possible competition)

Easily duplicated business plan

Potential customers may insteadprefer the Internet and other cost-freeways to improve their understandingof technology

80,000

120,000

60,000

20,000

Use of Proceeds from Finance

SG&A

R&D

Equipment &Facility

Safety Buffer

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Financial Plan

Cost of Goods Sold (per unit)Software development $30Packaging and hardware $ 5

Shipping $ 5Totals COGS $40

Since the retail cost of Up 2 Date will be $100 and the COGS Total is $40, wewill make a 60% gross-margin per unit sold.

First Year

Mo1. Mo2. Mo3. Mo4. Mo5. Mo6. Mo7. Mo8. Mo9. Mo10. Mo11. Mo12.

Sales 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000

Less: COGS 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000 34,000 36,000

Gross Profit 21,000 24,000 27,000 30,000 33,000 36,000 39,000 42,000 45,000 48,000 51,000 53,000

Less Operating

Salaries 0 0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Operating

supplies

2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500

Updates AdvertisingBad DebtsRentUtilitiesInsurance

5002,2005002,0001,000550

5002,5005002,0001,000550

5002,8005002,0001,000550

5003,0005002,0001,000550

5003,3005002,0001,000550

5003,6005002,0001,000550

5003,9005002,0001,000550

5004,2005002,0001,000550

5004,5005002,0001,000550

5004,8005002,0001,000550

5005,1005002,0001,000550

5005,4005002,0001,000550

Office 500 500 500 500 500 500 500 500 500 500 500 500

Licenses 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200

Depreciation 500 500 500 500 500 500 500 500 500 500 500 500

Total Operating 13,450 13,750 14,050 14,350 14,650 14,950 15,250 15,550 15,850 16,150 16,450 16,750

Profit (loss)

before taxes7,550 10,250 12,950 15,650 18,350 21,050 23,750 26,450 29,150 31,850 34,550 37,250

Less: Taxes

(30%)

0 0 0 0 0 0 0 0 0 0 0 0

Net Profit (loss)

7,550 10,250 12,950 15,650 18,350 21,050 23,750 26,450 29,150 31,850 34,550 37,250

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Second Year Third Year

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Sales 145,000 225,000 305,000 385,000 465,000 545,000 625,000 705,000

Less: COGS 48,000 66,000 84,000 102,000 120,000 138,000 156,000 174,000

Gross Profit 97,000 159,000 221,000 283,000 345,000 407,000 469,000 531,000

Less Operating

Salaries 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000

Operating

supplies

7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500

Updates AdvertisingBad DebtsRent

UtilitiesInsurance

1,50010,0001,5007,000

3,0001,650

1,50015,0001,5007,000

3,0001,650

1,50020,0001,5007,000

3,0001,650

1,50025,0001,5007,000

3,0001,650

1,50030,0001,5007,000

3,0001,650

1,50035,0001,5007,000

3,0001,650

1,50040,0001,5007,000

3,0001,650

1,50045,0001,5007,000

3,0001,650

Office 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

Licenses 12,600 12,600 12,600 12,600 12,600 12,600 12,600 12,600

Depreciation 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

Total Operating 89,750 99,750 109,750 119,750 129,750 139,750 149,750 159,750

Profit (loss)

before taxes7,250 69,250 111,250 163,250 215,250 267,250 319,250 371,250

Less: Taxes 0 0 0 0 0 0 0 0

Net Profit (loss)

7,250 69,250 111,250 163,250 215,250 267,250 319,250 371,250

Funding and Investment Deal

We have an initial projection for investors:

$280,000 initially

These funds will be used for R&D and prototypes There will be immediate sales due to our aggressive marketing tactics, and we

will break even within the first 1.5 years.Our offer to investors:

In exchange for the initial investment of $280,000, we will give up partialownership to the investor(s) in the form of 30% of Up 2 Date

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Break-Even Analysis

Risk Factors

Technical Risk

As new technology comes out, it would be beneficial for the company because itallows new updates and options for Up 2 Date. The software will automatically check

for updates online and install packages and patches so that it can stay current.Although it is not a risk, it will be an expense for the company to ensure that the latesttechnology and operating systems are being taken into consideration.

Up 2 Date will patent its technology and software, as well as require a code toprevent consumers from burning their CDs to share or uploading the software ontotorrent and peer-to-peer sharing applications

Market Risk

Because this is a new product with virtually no competitors or substitutes, it may

be difficult to convince the consumers that the demand exists and that the product isnecessary. Extensive marketing and consumer awareness will help to diminish thisrisk. Another risk may be obtaining partnerships with different retailers, which will bethe primary distribution channel for the first few years. After this period, whenconsidering expansion, Up 2 Date may consider selling the product through their ownchannels, such as web and phone based orders, in order to mitigate the risk anddependency on the outside retailers.

0

50

100

150

200

250

300

350

400

0 6 Mo. 12 Mo. 18 Mo. 24 Mo. 30 Mo.

Total Cost

Total Revenue

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Financial, Managerial and Operational Risks

There is a risk of being unable to raise enough capital from outside investors tofund the prototypes and aggressive marketing techniques. Keeping manufacturingcosts low will be a crucial part in minimizing financial risk. Management risks are

low because the three founders each have experience in a particular businessdiscipline, including administration, finance, marketing and accounting, as well astechnology and social media. Production risks are moderate, as fluctuation in demandis likely, especially during the first few years of production. The biggest difficultywill be when making sales predictions for production in order to maintain a full stock at different retailers.

Timeline of Events & Milestones

Up 2 Date was established in June 2011 and plans to begin production in January2012. The timeline has been broken down into three sections: initial development,

production, and the future goals of Up 2 Date.

Initial Development – August 2011o Secure funding through investments and loanso Research and designo Hire employeeso Acquire office and warehouse spaceo Purchase equipmento Manufacture prototypes

Testing of prototypes and design modificationso Secure distribution channels

Production – January 2012

o Manufacture prototypeso Continued research and designo Develop packagingo Approach retailerso Begin marketing campaign

Set up website and social media Create advertisements and obtain promotional space

Product Launch and Future – August 2012o Launch of producto Continued marketing and promotiono

Anticipated break-even point: February 2014

8/3/2019 Up 2 Date Final (1)


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Appendices

Survey of UT Dallas College Students/Faculty

Would you be interested in a software that teaches you how to more effectively use

technology and social media? Give a reason if possible.

Age Interested? Why or why not?/Notes

17 Yes Sometimes run into trouble with Facebook.

17 Yes None Given

18 Yes New social networks popping up, hard to keep track.

58 Yes Want to learn more to stay in touch with family over SM.

46 Yes None Given

22 No Already adept with technology.

22 Yes Sounds like a good reference source.

23 No None Given21 No None Given

22 No None Given

21 No Already adept with technology/SM.

21 No None Given

21 No None Given

22 No None Given

Do you have any friends or family members that could benefit from this product?

What is their relation to you?

Age Interested? Relationship?

17 Yes Grandparents

17 Yes Grandparents

18 Yes Mother and Grandmother

58 Yes Friend

46 Yes Friend and Brother-In-Law

22 No None

22 Yes Grandparents

23 Yes Step-mother

21 Yes Grandparents22 No None

21 No None

21 Yes Parents and Grandparents

21 Yes Parents

22 Yes Parents

Up 2 Date Final (1)

Documents

Transcript of Up 2 Date Final (1)