Programming Prep

Programming Prep

Introduction.

• ScienceS• TechnologyT• EngineeringE• MathematicsM

Focus on Programming

Problem.

Problem.

http://benelab.org/infographic.jpgPut full highlighted infographic

Service description.• What: Teach K-12 students programming in classes (1

class = 15 students)

• Who: Instructors are professionals from tech companies and teachers assistants are college graduates

• When: 6-8 hours a week for a full school year or trimesters (on Sat/Sun)

• Where: Bellevue (pilot program) national expansion program

• Agile Classroom (online)

Detailed service description.

Features• Level 1 – Video game

making programs

• Level 2 – Guido van Robot & Python

• Level 3 – C++ & JAVA

• Level 4 – Assembly Code

• Level 5 – Binary Machine Code

Benefit• Ability to compete in Video

Game competitions• Knowledge for web

development• Ability to compete in

“Hackathons”• Hardware specific software

development• Engineering

Value Proposition.

• Microsoft high school internships• F5 internships Employability

• Caltech• MITCollege

• Mobile applications• Video gamesFun

• Comprehensive, unlike school classes and summer programsLearning

Parents

Students

Traction.

• Student and parent surveys to be completed

• Webpage will be set up for preliminary student sign-ups and promotion

Pilot Market size (Bellevue, WA).

5 to 9 years 7,274 5.9%10 to 14 years 7,200 5.9%15 to 19 years 6,927 5.7%

Primary market

Secondary market

Income bracket population Percentage of total population

$75,000-$99,999 7,212 14.3%$100,000-$149,999 9,265 18.4%$150,000-$199,999 5,034 10.0%$200,000 or more 5,170 10.3%

Primary Customer Profile.

Secondary Customer Profile.

Promotion.

• Robotics: VEX and FIRST• StudentRND• Washington STEM• Partnership4Learning• Washington STEM Education

Network with STEM organizations

• Public programming competitions• First trimester free• Traditional advertisement mediums• Merchandising (during special events)

Company/service promotion

• Referrals = discounts

Parent/student referrals

Price.

• Prestige: convey the uniqueness and quality of our service

• Lead: prices comparable to other similar activities (Youth Orchestras, Select Sports, etc), with greater return on investment

Level Full price ($) Price per hour ($/hour)

Hours per week

1 2160 10 6

2 2808 13 6

3 3456 16 6

4 5472 19 8

5 6336 22 8

Partners.

Suppliers

• Hardware: HP, Dell, Toshiba

• Software: Microsoft, Jcreator, BlueJ, Eclipse

Local partners

• StudentRND• Redmond STEM

school• Robotics and

programming clubs

• Washington STEM (nonprofit)

National partners

• FIRST and VEX robotics

• Obama Administration

• Codeacademy• STEM Education

Coalition

Drive technology adoption by young generation

A reliable partner with dedicated focus on programming

Other programming classes.

• Offered at colleges and universities, not for K-12 students

Homeschool Programming, Inc.

• Purely online: no physical classroom• Provides programming learning materials for

children and teens

Summer programming camps.

• Several weeks long• Non-comprehensive, focus on single

elements of programming

Possible STEM high school.

• Proposed to open in Redmond 2012 • Use it to promote our company among

students already interested in STEM• STEM generalist

Competitive strategy.

Competitive rivalry

New entrants

Substitutes

Suppliers

Buyers

• Penetration: 3 month trial• Brand loyalty• Word-of-mouth marketing• Market with customer experiences• Avoid price wars• Low barriers to entry establish brand loyalty as soon as possible and use franchising to prevent entrants in some markets

Digital Symphony, Programming PrepForecasted Income Statement

For the year ended December 31, 2013SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG

Revenue:Fees 0 0 155280 0 0 0 0 0 0 0 0Laptop cost 37500 0 0 0 0 0 0 0 0 0 0 0Owner's equity 35000 0 0 0 0 0 0 0 0 0 0 0Loan capital 35000 0 0 0 0 0 0 0 0 0 0 0

Total revenue 107500 0 0 155280 0 0 0 0 0 0 0 0

Cost of Goods sold:Laptops 37500 0 0 0 0 0 0 0 0 0 0 0Software licenses 0 0 0 0 0 0 0 0 0 0 0 0

Total COGS 37500 0 0 0 0 0 0 0 0 0 0 0

Gross profit 70000 0 0 155280 0 0 0 0 0 0 0 0

Operating expenses:Rent 5600 5600 5600 5600 5600 5600 5600 5600 5600 0 0 0Payroll for instructors 9936 9936 9936 4968 4968 4968 4968 4968 4968 0 0 0Website hosting 100 100 100 100 100 100 100 100 100 100 100 100Equipment 10000 0 0 0 0 0 0 0 0 0 0 0Advertising 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Total operating expenses 26636 16636 16636 11668 11668 11668 11668 11668 11668 1100 1100 1100

Operating profit 43364 -16636 -16636 143612 -11668 -11668 -11668 -11668 -11668 -1100 -1100 -1100

Taxes* 1935 0 0 2795.04 0 0 0 0 0 0 0 0Debt and interest 2723 2674 2626 2577 2528 2480 2431 2382 2334 2285 2237 2188

Net income 38706 -19310 -19262 138240 -14196 -14148 -14099 -14050 -14002 -3385 -3337 -3288

Digital Symphony, Programming PrepForecasted Cash Flow Statement

For the year ended December 31, 2013SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG

Starting balance 0 40641 21331 2069 143104 128908 114760 100661 86610 72608 69223 65887

Cash inflowsFees 0 0 0 155280 0 0 0 0 0 0 0 0Owner's equity 35000 0 0 0 0 0 0 0 0 0 0 0Loan capital 35000 0 0 0 0 0 0 0 0 0 0 0

Total cash inflows 70000 0 0 155280 0 0 0 0 0 0 0 0

Cash outflowsRent 5600 5600 5600 5600 5600 5600 5600 5600 5600 0 0 0Payroll 9936 9936 9936 4968 4968 4968 4968 4968 4968 0 0 0Website hosting 100 100 100 100 100 100 100 100 100 100 100 100Equipment 10000 0 0 0 0 0 0 0 0 0 0 0Advertising 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Debt and interest 2723 2674 2626 2577 2528 2480 2431 2382 2334 2285 2237 2188

Total cash outflows 29359 19310 19262 14245 14196 14148 14099 14050 14002 3385 3337 3288

Ending balance 40641 21331 2069 143104 128908 114760 100661 86610 72608 69223 65887 62599

Financials- key points.

• Initial investment• $35 K share capital spread among five team

members

• $35 K loan capital

• 3-year fixed rate loan at 5% monthly compounding interest

• Gross profit margin: 85.7%• Operating profit margin: 35.0%• Net margin 22.0%

Company Strategy.

Bellevue pilot1• Establish relationships with schools and businesses• Coordinate in-class and online components• Refine curriculum

Expansion2• When: profitability, consistent and growing clientele• Locations must have: STEM interest, wealth, tech companies

Dual ownership-franchising3• Own in optimal markets• Franchise in riskier markets

Hiring.

• Tech companies• Parents of interested students

• People we know

• Post jobs on LinkedIn, Meeteor, Monster, and other job postings.

• Graduate studentso Major in CSo UW

Execution plan.

1. File articles of incorporation with the secretary of state to organize Digital Symphony as a limited liability company (LLC).

2. Obtain a federal employer identification number (EIN) by filing with the Internal Revenue Service (IRS)

3. Obtain necessary permits from Washington State Department of Secretary

4. File for appropriate business permits in Bellevue5. Hire necessary staff as seen in the organizational chart6. Recruit student ambassadors at local Bellevue schools

Goals• Profitability: $75 K in net income in 5 years• Cash position: $350 K in cash assets in 5 years• Customer base: 30 students per class 150 total clients

1. Do standard incorporation and filing processes with WA state and Bellevue

2. Start marketing and classes in Bellevue3. Begin expanding to other cities when we reach our

goals

Future plans.

Long-term ownershipVs.

SellingVs.

IPO

Why are we the Dream Team?