Business Plan The Media Cataloger Project OWNERS Robert H. Konrath (President) Catalog Systems Inc. 1316 N.W 7 th Place
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Business Plan
The Media Cataloger Project
OWNERSRobert H. Konrath (President)Catalog Systems Inc.1316 N.W 7th PlaceMoore, Oklahoma 73107Telephone: (405)808-1533Fax:
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I. Table of Contents
I. Table of Contents....................................................................................2II. Executive Summary................................................................................3III. General Company Description................................................................5IV. Products and Services.............................................................................6V. Marketing Plan........................................................................................9VI. Operational Plan...................................................................................23VII. Management and Organization.............................................................26VIII. Personal Financial Statement...............................................................28IX. Startup Expenses and Capitalization....................................................30X. Appendices............................................................................................43
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II. Executive Summary
In 1999 I produced a Windows software package "The Media Cataloger V. 1.0", it sold on the internet and local computer stores within the Oklahoma City Metro Area but, as I didn't have the time or the funding to properly put into the software, it did not take off as I would have hoped. I am now working on the software again and plan for some exciting upgrades and additions that will combine all the facets and technologies available using the internet.
The software will be an upgrade from “The Media Cataloger V.1.0” © 1999. The New software upgrade will be considered the Flagship of the company.
Other online auction and selling sites charge fees for their services, however do not sell software to their users as an income making entity. Catalog Systems Inc. will be selling its software as income; therefore the online selling of an item will be fee free. An online store will have a fixed $30.00 monthly fee and the store size is irrelevant. This itself would generate interest and provide competition which would bring us many of the users of other online seller sites.
Catalog Systems Inc. a new startup will be a software sales and production company that will start as a business which will provide end users the ability to prove ownership of property and value to an insurance company after disaster occurs. This would give the business, home owner or renter the ability to secure the value paid to insurance companies and provide proof if needed in civil court. The software will also be used as a fun tool for the entire family as well as online buying and selling.
The company has long range plans to increase software product and selling to users online.
The first year of business the company will be involved in the programming and development of our software. The company upon startup will raise funds utilizing social media, sell pre-launch software of “The Media Cataloger V 2.0”, receive donations from the public and by bringing in investors.
The second year of business will start the sales of the “The Media Cataloger V 2.0”. Sales will be generated using social media marketing and Search Engine Marketing. With the hiring of sales staff we will take a ‘pick ‘n’ mix approach, test effectiveness & monitor results and licensed resellers will also provide marketing to their customers. The selling of licenses would allow for nation-wide sales.
The customer base for the business is:1. Home owners and renters as the individual end user.2. Small business with a single location.3. Small businesses with multiple locations as networked users.
The creation of one single product provides for various software packages.1.) Media Cataloger 2.0 PC & Mac2.) Media Cataloger 2.0 Pro (Network Version)
Page 5 of 713.) Media Cataloger 2.0 iPhone4.) Media Cataloger 2.0 iPad5.) Media Cataloger 2.0 iPad Pro (Network Version)6.) Media Cataloger 2.0 Andriod Phone7.) Media Cataloger 2.0 Andriod Tablet8.) Media Cataloger 2.0 Andriod Tablet Pro (Network Version)
The third year of business the company will create and maintain software for client businesses as well as government in a separate department. The company will also provide services to freelance programmers as a publishing company for their software products.
The fifth year of business will begin the selling of licenses which would allow for world-wide sales and the opening of offices in other areas of the world in order to sell licenses to foreign companies.
The Oklahoma City Metro Area is the perfect location for this business as it is centrally located within the United States and the company has excellent sources to new employees with the surrounding colleges and universities to draw from.
The company is seeking startup funding of One Million Dollars and the funds will be utilized to fund the equipment, operations and wages of employees for the first year. The company upon startup will raise funds utilizing social media, sell prelaunch software of “The Media Cataloger V 2.0” and during the first year the company will also raise funds using Kickstarter Internet sites and ask for donations through social media. Those that donate by use of any medium will receive a full version of our software at the time of launch. Those that have donated would also become some of our first paying end users as they would want to purchase the mobile apps that function with the computer software.
I am asking for an investment in order to fund the project and to help pay for needed office space, office supplies, computer equipment, employee payroll and the needed programming software. Below I describe the software but only to a limited degree as I need to protect the total functionality of the project. I will disclose the entire purpose and functionality of the software project once a non-infringement / non-disclosure agreement is signed by those involved.
I will use the funds to hire college juniors and seniors currently enrolled in our local universities. These will be students recommended by the computer science department of the university. I will hire those students that work as well as go to classes full time as to provide a better income for them while finishing school. The company will be open 24 hours a day and 7 days per week. This will help to accommodate those students that go to classes’ day or night and be open for those that will be working overtime. After an investor is acquired the company will open and start production about 30 to 60 days after office space and employees are acquired.
Most working students work for convenience stores or fast food restaurants or other entry level position jobs at just above or at minimum wage. I will hire them full time and pay just over their current pay if not better to start and upon graduation and sales of the software increase the pay. I will need to hire programmers for both Windows and Macintosh to upgrade and update the software as well as, app developers for mobile devices. Also, equipment such as computers, servers and office space will need to be purchased. Annual wage rates for Employees are below and are subject to change.
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Software Engineer: $49,759 - $56,573 ($25.91)Computer Programmer: $57,000 ($29.68 Hr.)Web Software Developer: $55,028 - $62,980 ($28.66 Hr.)Computer Network Technician: $40,000 (20.83 Hr.)Web designer: $48,000 ($25.00 Hr.)Customer Support Representative: $19,000 ($9.89 Hr.)
The company will also partner with local university computer science departments to provide extra credit towards student diplomas for work experience. As the student demonstrates initiative and the ability to keep their grades and work up, overtime will also be offered to the student employee, which would allow them to pay more towards books, tuition and bills. As students complete their junior year successfully a raise will be given and as seniors complete their degree a raise will be given. This will bring their pay up to the entry level of their work position. All employees will also have financial budgeting and checking account classes provided which will help the employee become and remain financially stable and debt free.
The employees will be involved in the production and sales of “The Media Cataloger V.2.0”. The employees will be involved in the selection of software purchases that would be used to complete the software. As the software is nearer to completion new employees will need to be hired into various positions in the company such as Sales, Marketing, and Customer service agents.
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III. General Company Description
Catalog Systems Inc. is a computer software and mobile app company. The company will produce software for the PC and the Mac as well as apps for iPhone and Android devices.
Mission Statement:It is widely held that computers are a great tool for the home or business and are used for entertainment and education as well. Catalog Systems Inc. will create software for the home and business. We want the user to enjoy the technology at home or work and have the ability to prove ownership of property and value to an insurance company as well as buy and sell online while making a larger profit.
Company Goals and Objectives:The new software will be considered the Flagship of the company. Catalog Systems Inc. a new startup will be a software sales, production and publishing company. The software will also function as a C2C online store. As the business grows with the sale of the software larger office space would need to be acquired. It is expected that with the software sales and the fact that the users will be able to buy, sell and trade online, the company will gain popularity in an exponential way. This itself would generate interest and provide competition which would bring us many of the users of other online seller sites. The software will also be multi lingual and will sell in other countries. The company will in the future be selling contracted software services to business and government in a separate department. Overseas sales offices in different countries will be established to allow for license sales to foreign businesses as the company grows and this is why the business will be successful.
Business Philosophy:To provide software and apps that the customer can use as a tool for their home or business which could save them time, effort and money. Catalog Systems Inc. believes that feeling secure and protected in the knowledge that when needed, our products will have provided for their needs.
Market:The company will be serving individual users, business and government.
The Industry:Accelerated by higher levels of disposable income and consumer's growing propensity to conduct services online, revenue for the E-Commerce and Online Auctions industry is expected to rise during the five years to 2021. As internet traffic increases and online shopping becomes more popular, retailers are expanding the products they carry to include common household goods such as DVDs, Blue-rays, books, clothing, footwear and even grocery and cleaning products. Hard-to-find niche products or products that are no longer being produced have also found a place in online markets. In the next five years, continued economic recovery is expected to drive the industry's strong growth.
Strengths and Competencies:The strengths of the business model are based on uniting buyers & sellers in an online marketplace. The advantages of this model include: unlimited variety of goods, zero inventory costs, the lack of intermediaries allows for lowered transaction costs. No item fee for buyers or sellers and as the service is not an online auction but a fixed price online store which provides
Page 8 of 71greater profit to a seller. These factors effectively allow Catalog Systems Inc. to add members/customers to its business model without adding significantly to its cost structure. My competency is derived from personal experiences in the military, as the owner of a private security and Investigations Company, my college education in computer repair and data processing and as the owner of Catalog Systems Inc. designing and producing “The Media Cataloger v.1.0” software package and selling it online as well as in computer stores in my local area.
Legal form of Ownership:Catalog Systems Inc. is a regular corporation. This type of incorporation was chosen to protect the principle owner, investors and employees from any unforeseen circumstances on a personal level and provides possibilities for unlimited growth. All software will be copyright protected and were applicable Patented.
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IV. Products and Services
. Sample files will be used:The sample files of the software will not be disclosed until a non-compete/non-disclosure statement is signed and agreed to. This is to protect the copyright and not limited to, any information, “know-how”, data, patent, copyright, trade secret, process, technique, program, design, formula, marketing, advertising, financial, commercial, sales or programming data, written materials, compositions, drawings, diagrams, computer or software programs, studies, work in progress, visual demonstrations, business plans, budgets, forecasts, customer data, ideas, concepts, characters, story outlines and other data, in oral, written, graphic, electronic, or any other form or medium whatsoever, which may be exchanged between the parties in pursuance of the Purpose or otherwise.
The software will have the following capabilities:The capabilities of the software will not be disclosed until a non-compete/non-disclosure statement is signed and agreed to. This is to protect the copyright and not limited to, any information, “know-how”, data, patent, copyright, trade secret, process, technique, program, design, formula, marketing, advertising, financial, commercial, sales or programming data, written materials, compositions, drawings, diagrams, computer or software programs, studies, work in progress, visual demonstrations, business plans, budgets, forecasts, customer data, ideas, concepts, characters, story outlines and other data, in oral, written, graphic, electronic, or any other form or medium whatsoever, which may be exchanged between the parties in pursuance of the Purpose or otherwise.
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Media Cataloger v.2.0 Screen Shot for Mac and PCThe screen shot image files of the software will not be disclosed until a non-compete/non-disclosure statement is signed and agreed to. This is to protect the copyright and not limited to, any information, “know-how”, data, patent, copyright, trade secret, process, technique, program, design, formula, marketing, advertising, financial, commercial, sales or programming data, written materials, compositions, drawings, diagrams, computer or software programs, studies, work in progress, visual demonstrations, business plans, budgets, forecasts, customer data, ideas, concepts, characters, story outlines and other data, in oral, written, graphic, electronic, or any other form or medium whatsoever, which may be exchanged between the parties in pursuance of the Purpose or otherwise.
Media Cataloger v.2.0 Software Operating Function for Mac and PCThe screen shot image files of the software will not be disclosed until a non-compete/non-disclosure statement is signed and agreed to. This is to protect the copyright and not limited to, any information, “know-how”, data, patent, copyright, trade secret, process, technique, program, design, formula, marketing, advertising, financial, commercial, sales or programming data, written materials, compositions, drawings, diagrams, computer or software programs, studies, work in progress, visual demonstrations, business plans, budgets, forecasts, customer data, ideas, concepts, characters, story outlines and other data, in oral, written, graphic, electronic, or any other form or medium whatsoever, which may be exchanged between the parties in pursuance of the Purpose or otherwise.
Screen Shot for Apple iPhone and iPad The screen shot image files of the software will not be disclosed until a non-compete/non-disclosure statement is signed and agreed to. This is to protect the copyright and not limited to, any information, “know-how”, data, patent, copyright, trade secret, process, technique, program, design, formula, marketing, advertising, financial, commercial, sales or programming data, written materials, compositions, drawings, diagrams, computer or software programs, studies, work in progress, visual demonstrations, business plans, budgets, forecasts, customer data, ideas, concepts, characters, story outlines and other data, in oral, written, graphic, electronic, or any other form or medium whatsoever, which may be exchanged between the parties in pursuance of the Purpose or otherwise.
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Screen Shot for Android Phone and TabletThe screen shot files of the software will not be disclosed until a non-compete/non-disclosure statement is signed and agreed to. This is to protect the copyright and not limited to, any information, “know-how”, data, patent, copyright, trade secret, process, technique, program, design, formula, marketing, advertising, financial, commercial, sales or programming data, written materials, compositions, drawings, diagrams, computer or software programs, studies, work in progress, visual demonstrations, business plans, budgets, forecasts, customer data, ideas, concepts, characters, story outlines and other data, in oral, written, graphic, electronic, or any other form or medium whatsoever, which may be exchanged between the parties in pursuance of the Purpose or otherwise.
Competitive advantages:Potential advantages are that the price for items are usually cheaper on the Web because warehouse and staff costs are lower and because online shops want to attract and keep customers. Also, convenience: shopping can be much easier on the internet. It can be done at home, at a convenient time and be very quick.You also have a varied choice as internet shopping allows you access to a wide range of shops all around the world, some of which do not exist on the street. Online shops also usually carry a much larger stock. Along with quick delivery, most internet sites are able to deliver within a few days. Other online auction and selling sites charge fees for their services, however do not sell software to their users as an income making entity. Catalog Systems Inc. will be selling its software as income; therefore the online selling of an item will be fee free.
The creation of one single product provides thirteen various avenues of revenue.1.) Media Cataloger 2.0 PC & Mac2.) Media Cataloger 2.0 Pro3.) Media Cataloger 2.0 iPhone4.) Media Cataloger 2.0 iPad5.) Media Cataloger 2.0 iPad Pro6.) Media Cataloger 2.0 Andriod Phone7.) Media Cataloger 2.0 Andriod Tablet8.) Media Cataloger 2.0 Andriod Tablet Pro9.) Monthly Online Store Subscription10.) Media Cataloger 2.0 Reseller Licensing11.) Media Cataloger 2.0 Licensee Royalties12.) Cash From Contracted Software Services13.) Commercial video advertising
Competitive disadvantages:There are also some disadvantages to buying online. Delivery option’s that many sites use. Such as traditional carriers that do not deliver at night or weekends. At times you end up having to go and pick up or deliver to a
Page 12 of 71depot. Costs and returns which add to shipping fees and, if buying from outside the United States, tax and customs, can often mean an item isn't as cheap as it seems. Returning a purchase often means having to package it and take it down to the post office. Cost of using the internet: although online access is getting cheaper, many internet providers still charge per minute. Browsing around a wide range of shops can take as long as a traditional shopping visit. Buying more, because everything is at the click of a mouse, it's very easy to buy and spend more than you intended to.
Pricing structure of (The Media Cataloger v.2.0):The selling of licenses to corporate businesses will provide customers by way of their advertising the software for sale on their web sites.
The selling of licenses would allow for world-wide sales and the opening of sales offices in other areas of the world in order to sell licenses to foreign companies.
Price points for the software:1. Windows PC’s and Macintosh software would sell to individual end users and small business for ($39.95)2. Apps on iTunes and Google Play Store home users ($6.00) and business users ($9.00)3. Windows PC’s and Macintosh Networking software limit 10 stations for ($300.00)4. Licenses to business resellers (Five Million Dollars – negotiable) and (12% Royalty per sale – negotiable)5. Online store monthly fee ($30.00)
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V. Marketing Plan
Market research - Why?Catalog Systems Inc. cannot succeed without effective marketing. And this begins with careful, systematic research.
Market research - How?We will put together a spreadsheet of our top competitors and research them to see how they are using digital marketing channels to reach customers. We will test whether our marketing campaigns are working by tracking our traffic, goals and conversions in Google Analytics and other metrics like Facebook Insights.A variety of digital channels & tactics will raise brand awareness & improve customer services such as social media marketing and Search Engine Marketing. We will take a ‘pick ‘n’ mix approach, test effectiveness & monitor results. Licensed resellers will also provide marketing to their customers.
Display Advertising Email Marketing Pay-Per-Click Advertising (PPC) Online Public Relations Search Engine Optimization
(SEO) Affiliate Marketing
Social Media Marketing Viral Content Campaigns Conversion Rate Optimization
(CRO) Blogging
Twitter advertising Facebook advertising Blogger outreach Video marketing Local search marketing Mobile marketing Groupon/offer sites Corporate website Free content (eBooks, white
papers, tools) Online communities/forums
Webinars Podcasts Crowdfunding campaigns
Economics What is the total size of your market?
Online sales accounted for more than a third of total retail sales growth in 2015, according to data released from the U.S. Commerce Department. When factoring out items not normally bought online such as fuel and automobiles, e-commerce accounted for more than 10% of all of retail sales.
There are 12-24 million ecommerce stores selling products on the internet around the world today. This sounds like a huge number and an incredibly competitive market, but surprisingly only a small subset, 650,000 stores, is selling more than $1,000 US annually. The vast majority of online stores are simply not generating any meaningful revenue, at least not yet.
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What percent share of the market will you have? It is expected that Catalog Systems Inc. will gain a 1% - 3% share of the market in the first year of sales.
Current demand in target market.E-commerce sales are expected to grow to more than $400 billion in the next several years, with Forrester Research estimating $414.0 billion in sales in 2018 and eMarketer estimating $491.5 billion in 2018.Source: eMarketer, Forrester Researchhttp://www.onlinemarketing-trends.com/2015/12/global-ecommerce-to-exceed-
400billion.html
Trends in target market.Online retailers and brands are becoming increasingly aware that low prices and speedy delivery are only part of the story. Driven by increasing competition from online-only giants like Amazon and eBay as well as a growing array of nimble startups, many companies are realizing that something else is needed to stand out in an increasingly crowed online ecosystem.(Exert: Doug Heise: Internetretailer.com)
E-commerce is shifting from an era dominated by Transactional Commerce to one harnessing Experiential Commerce. Transactional commerce is focused on price and efficiency — prioritizing tools that help shoppers zero in on a specific product and
Page 15 of 71convert quickly. In contrast, experiential commerce is more immersive, attempting to understand the shopper throughout their journey and develop an emotional connection that delights inspires and informs.(Exert: Doug Heise: Internetretailer.com)
Growth potential and opportunity for the business.The majority of e-commerce sites look remarkably similar: a mosaic of promotional banners that gives way to a basic product grid. Although this approach is effective for price-driven shoppers and people who know exactly what they’re looking for, it doesn’t do a great job of engaging socially connected, undecided or experience-driven shoppers. Unfortunately, most e-commerce platforms don’t give their customers many other options. But new platform and hybrid integration strategies are making it possible to deliver much more interesting and varied online shopping experiences. Expect to see more shopping sites in the coming year that replace or supplement the cookie-cutter product grid with engaging content, more fluid layouts, increased social interaction, rich media, and more. (Exert: Doug Heise Internetretailer.com)https://www.internetretailer.com/2016/01/07/4-e-commerce-predictions-2016
What barriers to entry do you faceo High capital costso High production costso High marketing costso Consumer acceptance and brand recognitiono Training and skillso Unique technology, copyrights and patentso Shipping costs, Tariff barriers and quotas
How will you overcome the barriers?o To keep capital costs down we would keep track of expenses, hire professionals
such as contact accountants, prioritize startup costs and calculate upfront deduction.
o To keep production costs down we would purchase at used prices for office furnishings.
o To keep marketing costs low we will use social media, licensed resellers advertising and word of mouth.
o To gain consumer acceptance and brand recognition we will use social media, mass e-mailing and promotional videos posted online.
o I will use the training and skills of hired college juniors and seniors currently enrolled in our local universities. These will be students recommended by the computer science department of the university.
o Our products keep up with newer technologies and will be copyright protected and were applicable Patented.
o The company does not hire union employees.o Shipping costs for items purchased as office equipment or supplies will be
determined as to which provider is reasonable in both cost and speed of delivery. The company has no shipping cost of its product as it is an online download. There will also be no Tariff barriers or quotas.
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How could the following affect your company?o Change in technology
The company would keep up with changing operating systems of all it products and would upgrade its products.
o Change in government regulationsThe company would keep abreast of government regulations.
o Change in the economyThe company would look to cost saving measures but avoid employee layoff by lowering the cost of the product and even gain customers doing so or offer sales to save customers money.
o Change in your industryWe would keep up with the change in the industry with customer feedback and supplier updates and upgrades.
ProductCustomers’ point of view1. The average customer would like the ability to create new catalogs based on their needs as other similar software provides a database that they can only add items to, but it cannot create a new catalog as it is dedicated to only one or a few types of catalog categories.2. The customer would like the functions of the database as most do not know how to create their own database or want to learn, they just want that ready to go product.3. Customers would like the ability to catalog their household goods or business inventory and be able to back up their files and the software to a dvd, cd, or memory stick.4. Customers would like that the software automatically sums the column for price which gives them the correct value for insurance purposes.5. Customers would like the ability to use the software to prove value lost at the time of disaster or loss for an insurance claim. 6. Customers would like the ease and ability to scan a upc label and import found information for an item from the internet, they would also like the ability to edit the imported information.
Page 17 of 717. Customers would like the ability to scan a photo, document or receipt into a catalog item directly and not have to use other software to scan and place into a file folder then copy and paste the item.8. Customers will also like the option to drag and drop an item photo from a file folder to the catalog item.9. Customers would like the ability to search an item within a catalog using the name or title of the item.10. The customer would like the ability to drag and drop a catalog item into the store section for sale and have little editing to perform.11. The customer would like the ability to sell online without having to fill out item information for each item.12. The customer would like the fact that selling an item is fee free and as a seller they would make more money.13. The customer could start their own business selling items of any kind or even their unused items in the home. Brick and mortar business could sell their items and increase their bottom line with no item seller fees.14. Customers would like that the software provides sample catalog and item files of which they can add to or delete as needed.15. The customer would like the ability to use their mobile device to take photos and from within the mobile app, create catalogs and then later synchronize the mobile device with their computer.16. Customers would like the network capabilities for small business using multiple locations or networked stations. Networked businesses will be able to connect to multiple locations and control inventory.
Features and BenefitsThe Media Cataloger v.2.0 software and mobile apps
FeaturesThe ability to, catalog collections of any kind such as insurance information, documentation
or inventory.The ability to buy or sell online.The ability to, use your mobile device to create catalog items, take photos and scan upc
codes.The ability to synchronize your mobile device with your computer. BenefitsThe ability to back up the catalogs and items for insurance purposes.Fun for the entire family as children can add items to their catalogs such as Pokémon cards.The ability to buy or sell online and save money without having to pay item fees.The ability to video chat or text chat with other buyers or sellers.The ability to contact a buyer or seller with e-mail,The ability to set administrative password protection for households and business.The ability to access personal catalogs with an individual password.Protected accounts would give the administrator the ability to view and control individual account holders.
Page 18 of 71CustomersOur targeted customers are of three types:(1) Homes Owners, Renters and consumers with collections or online buyers and sellers(2) Licensed resellers(3) Business owners
The consumer description(1) Homes Owners, Renters, Small Business Owners with a single location and Consumers with collections or online buyers and sellers.
This is the most important group as it is the largest; this is also the group that licensed resellers will target.
Age – 21 and above Gender - Both Location – National and International Income level - $20,000 and above annually Social class and occupation – al l classes and occupations Education – High school and above price preferences – $39.95 to consumer and online store monthly fee - $30.00 (optional)
(2) Business owners with multiple locations This is the second most important group as it will use the network version of the software.
Industry – All businesses that have an inventory or office Location– National and International Size of firm – all sizes Price preferences - The selling of Windows PC’s and Macintosh Networking via the
internet and intranet limit 10 stations for ($300.00)
(3) Licensed resellers This is the third most important group as it will target customers selling through their channels.
Industry – Insurance companies and Finance companies Location– National and International Size of firm – all sizes Price preferences - The selling of reseller licenses to businesses (Five Million Dollars –
negotiable) and (12% Royalty per sale – negotiable)
CompetitionWhat products and companies will compete with you?Our competitors for online sales are Amazon, Alibaba, Ebay and Liberty Street Software.
Amazon.com Alibaba.com Group Ebay.com LibertyStreet.com410 Terry Avenue Alibaba (China) Co., Ltd: eBay Inc. 228 Park Ave S #26512North Seattle, 969 West Wen Yi Road 2065 Hamilton Ave New York, NYWA. 98109 Yu Hang District San Jose, CA 95125 10003-1502(206) 266-1000 Hangzhou 311121, China (408)376-7400 (347) 960-6466
Tel: (+86) 571-8502-2088
Page 19 of 71Will they compete with you across the board, or just for certain products, customers, or locations?My competitors will compete across the board.
Will you have important indirect competitors?I will have indirect competitors such as other cataloging software and online auction sites.
How will your products or services compare with the competition?Our product and its services will allow sellers to post items for sale and pay no item fees. Buyers will also be able to purchase with no added item fees. Small business would save by using the software for inventory and sell their products online due to the ability to avoid paying for a web site or a webmaster and pay no item fees. Online seller sites as well as software for home and business inventory companies do not combine the services into one easy to use format. Software companies sell multiple software packages in order to catalog various items, as our software does it all for one price.
Competitive Analysis by: http://www.forbes.com/sites/greatspeculations/2015/10/09/a-comparative-look-at-the-valuation-of-amazon-alibaba-and-ebay/#68f4cf4a747e
Table 1: Competitive Analysis
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FACTOR Catalog Systems Inc.
Strength
Weakness
Alibaba.com
Ebay.com
Libertystreet.com
Importance to
Customer rate 1-
5 1=least 5=great
est
Products
Selling cataloging/dat
abase and online selling software for
home or business
Various online sales
Various online sales
Selling of various
collection and Inventory software packages
5
Price
Home version and Network
version software packages starting at
$39.95 and No fees for online
selling
No Fee
Insertion Fee
and final selling fee per
item and monthly
store fees
Various prices per item 5
Quality
Ability to build collections or inventory lists and volume of transactions
plus price and selection of
goods
volume of transactio
ns plus price and selection of goods
volume of
transactions plus
selection of
goods
Ability to build collections or inventories
5
Selection
Indefinite types of
catalogs and inventories and various
categories for online selling
Various categories for online
selling
Various categori
es for online selling
Specific types of catalogs
and inventories
5
Service
Customer help via
phone/email/text or video
chat
Customer help via
phone/email/text or video chat
Customer help
via phone
or email
Customer help via
phone/email5
Reliability
Power and Internet system
reliability
Power and Internet system
reliability
Power and
Internet system
reliability
Power and Internet system
reliability4
Stability internet or mobile
application ease-of-use
and accessibility
internet or mobile application ease-of-use and
accessibility
internet or
mobile application ease-of-use and
internet or mobile
application ease-of-use
and accessibility
5
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FACTOR Catalog Systems Inc.
Strength
Weakness
Alibaba.com
Ebay.com
Libertystreet.com
Importance to
Customer rate 1-
5 1=least 5=great
estaccessib
ility
Expertise
trust in the software /
online seller and the
transaction
trust in the online seller and
the transactio
n
trust in the
online seller
and the transact
ion
trust in the software and
the transaction
5
Company Reputation
Customer service; and
brand recognition
Customer service;
and brand recognitio
n
Customer
service; and
brand recognit
ion
Customer service; and
brand recognition
4
LocationCentrally
located in the U.S. Oklahoma
Hangzhou, China
California New York, NY 5
Appearance
community cohesion,
interaction and size
community
cohesion, interaction and size
community
cohesion,
interaction and
size
community cohesion,
interaction4
Sales Method
Online and Business sales
calls Online
salesOnline sales Online sales 5
Credit Policies
Noncredit entity
Cash business unknown unknow
n unknown 5
Advertising A pick ‘n’ mix pick ‘n’
mixpick ‘n’
mix pick ‘n’ mix 3
Image
Protecting the home or
business with personal support,
product and Connecting
people, selling to people
Connecting people, selling to
people
Connecting
people, selling
to people
Protecting the home or
business with email or phone
support.
5
Our competitive advantages and disadvantages derive from the product “The Media Cataloger v.2.0” itself as well as the type of personal support provided. The company “Catalog Systems
Page 22 of 71Inc.” will in the future provide additional products and services which will also receive the same type of personal touch that our customers and clients will be able to rely upon.
NicheThe company provides a niche and a unique corner of the market by providing for the customers’ needs not only through affordability, but through creating software that is fun and easy to use by the entire family as well as business. Businesses as well as individuals that use the software will find that their ability to make or increase profits will significantly increase. The individual would be able to create a store selling collectables, found items or even repurposed furniture and pay zero item fees. This would make it possible for the individual to build a home business and earn an income. The business could create a store selling inventory and save on expenses by not having to pay annually for a web site or web hosting monthly and not having the need to pay for a webmaster as any employee could post items and fulfill orders with very little training.
StrategyOur marketing strategy is consistent with our niche. As we begin the company strategy into marketing, we will pursue the free social media and word of mouth avenues as well as the low cost of email marketing. As time goes by and profits increase we will adopt a pick ‘n’ mix strategy and put together a spreadsheet to track and monitor our progress.
PromotionThe company will get the word out to customers by advertising through the route of social media, using the corporate website, Twitter posts, Facebook posts, other social media sites, word of mouth and crowdfunding campaigns. This type of advertising will be conducted daily and the company employees will be involved spreading the word through their social media contacts as well. To start, this is a free form of advertising and will allow for a wide range of views and new customers. Later low cost of advertising methods such as Search Engine Optimization, Pay-Per-Click Advertising, Email Marketing and Affiliate Marketing will be used. The company wants to provide for the customers’ needs not only through affordability, but through creating software that is fun and easy to use by the entire family as well as business and that product support is always available. Graphic image support is also a great way to promote the business and product. Company logos will be used in social media posts, on the corporate website, in emails to customers and in email marketing. At the start of the business pre-launch software sales will also be sold for a reduced fee. The company will build an email list of customers to contact for future sales of product and to inform customers of software updates and upgrades.
Promotional BudgetBefore startup and on a continuous basis the company budget for social media, using the corporate website, Twitter posts, Facebook posts, other social media sites, word of mouth and crowdfunding campaigns will be free. The ongoing budget for promotions will increase as Search Engine Optimization, Pay-Per-Click Advertising, Email Marketing as well as when large enough the company can do annual television or radio advertising.
Page 23 of 71PricingIn the future the software would be available in four selling formats:1. Software on the company web site. Purchasers would pay with debit, credit card or e-check.2. Apps on iTunes and Google Play stores.3. Multi user licenses to Businesses.4. Licenses to businesses for a large fee plus royalties on the sales of the software. 5. An optional online store
The selling of licenses to corporate businesses will provide customers by way of their advertising the software for sale on their web sites. The selling of licenses would allow for world-wide sales and the opening of sales offices in other areas of the world in order to sell licenses to foreign companies.
Price points for the software:1. The software for Windows PC’s and Macintosh would sell for ($39.95)2. The selling of apps on iTunes and Google Play Store (home users $6.00) and (business users $9.00)3. The selling of Windows PC’s and Macintosh Networking via the internet and intranet limit 10 stations for ($300.00)4. The selling of reseller licenses to businesses (Five Million Dollars – negotiable) and (12% Royalty per sale – negotiable)5. The selling of an optional online store through the software on an monthly basis ($30.00)
The company methods of setting prices are an average price to customers as well as business and will compete on quality and service. Our pricing strategy fits with what was revealed in our competitive analysis.Comparing the company prices with those of the competition, the price for our software rate at about the same as the software of other online buying and selling sites. Our prices are free per item and a fixed monthly fee for a store. This would make it possible for the individual to build a home business and earn an income. The business could create a store selling inventory and save on expenses by not having to pay annually for a web site, web hosting monthly and not having the need to pay for a webmaster as any employee could post items and fulfill orders with very little training. Price is a very important competitive factor as individuals and business alike want the best that they can get for the amount of money they have to spend. Their budget is just as important as our company budget. The companies intended customers do make their purchase decisions based on price, but also on quality of product and service. Most customers try to purchase the best quality that their money can afford. The company customer service will be a help desk for technical support provided through the website contact email link, phone contact and video chat. The company credit policy for customers is to pay online with credit card, debit card, e-check or the use of PayPal. Sales to licensed business would be a noncredit entity or cash only payable at signing.
Proposed LocationThe company location is not important to individuals or small business customers as the internet is their access to the company for product and technical support.
The company location would be important to client business or government as the company being centrally located would be advantageous to the company and clients alike.
Page 24 of 71The company location would provide for less travel time to meet with a client at their location or for a client to meet at our company location. This would also convert to savings in travel costs The company location is consistent with the company image and some customers will expect it.
The competition is located at:Amazon.com Alibaba.com Group Ebay.com LibertyStreet.com410 Terry Avenue Alibaba (China) Co., Ltd: eBay Inc. 228 Park Ave S #26512North Seattle, 969 West Wen Yi Road 2065 Hamilton Ave New York, NYWA. 98109 Yu Hang District San Jose, CA 95125 10003-1502
Hangzhou 311121, China
Distribution ChannelsIn the future the software would be available in four selling formats:1. Software on the company web site. Purchasers would pay with debit, credit card or e-check.2. Apps on iTunes and Google Play stores.3. Multi user licenses to Businesses.4. Licenses to businesses for a large fee plus royalties on the sales of the software. 5. Company sales force setting appointments with clients.6. Sales/Marketing agents 7. Bid on contracts with business and government
Page 25 of 71
Sales Forecast
Page 26 of 71
Sale
s Fo
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rst y
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Page 27 of 713 Year Sales ForecastYear 1
Page 28 of 71
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Page 29 of 71
Page 30 of 71Year 3
Page 31 of 71
Page 32 of 71
VI. Operational Plan
Business OperationThe business is a computer software and mobile device applications production and publishing company. The company is located in the Oklahoma City Metro Area and is the perfect location for this business as it is centrally located within the United States and the company has excellent sources to new employees with the surrounding colleges and universities to draw from. The company would use desktop and laptop computers as well as routers and servers to create and maintain our products for our customers and clients.
Production Production techniques and costs are derived from overhead costs, programmer salary
and for client software from Lines of source code per programmer-month (LOC/pm). Quality control is derived from the IT Manager during production of software and
employees using the software to locate problem areas and correct problems as they arise as well as providing software updates to customers and clients.
Customer service is provided during the sale of the software and after the sale by Customer Support Representatives via video chat, phone and email. Service to clients is performed at the time of sale, installation and at the clients’ location by sales personnel as well as our IT Technicians after the sale.
Inventory is not required as software is downloaded from the company internet website or Licensee website. Client software is delivered via online download or on a single CD/DVD.
Product development is the process of computer programming, documenting, testing, and bug fixing involved in creating and maintaining applications and frameworks resulting in a software product. Software development is a process of writing and maintaining the source code, but in a broader sense it includes all that is involved between the conception of the desired software through to the final manifestation of the software, sometimes in a planned and structured process. Therefore, software development may include research, new development, prototyping, modification, reuse, re-engineering, maintenance, or any other activities that result in software products.
Location
Quality of the business locationPhysical requirements:
2000 square foot Brick Commercial Oklahoma Gas & Electric for Electricity, Oklahoma Natural Gas for Gas, City Water and
Cox Communications for Cable, internet, networking, television and Business Phone.
Access:
Page 33 of 71The company is located in the city suburb of Moore Oklahoma and is accessible from two major U.S. Interstate highways making travel to airports and by automobile ideal.
Business Hours:364 days per year – Closed on Christmas Day.Monday thru Friday with shift schedule 24 hours per daySaturday and Sunday with shift schedule 24 hours per day
Legal EnvironmentDescribe the following:
Filing as a corporation with the Office of the Secretary of State Account with the Oklahoma Tax Commission for withholding and remitting state income
taxes Account and withhold and remit state unemployment taxes from the earnings of the
employees to the Oklahoma Employment Security Commission. Accounts with the Internal Revenue Service to withhold and pay federal income and
Social Security taxes Workman’s Compensation Insurance, either through a general insurance agent or
through CompSource Oklahoma Permit to charge and collect taxes on sales to state customers and remit these taxes to
the Oklahoma Tax Commission Oklahoma OSHA Health, workplace, or environmental regulations Special regulations covering the computer software industry or profession Zoning or building code requirements Product liability and business liability insurance Existing Copyrights
TXu000930842 / 1999-10-21“The Media Cataloger V.1.0” © 1999 Robert H. KonrathTXu000197701/1985-05-15 “Home video movie indexing catalog for home video libraries” ©1985 Robert H. Konrath
Personnel 20 Employees at start up Computer Software Developers, Programmers and Network Techs ( professional) Accounting personnel Marketing and Sales personnel College juniors and seniors currently enrolled in our local universities Pay structure:
Software Engineer: $49,759 - $56,573 ($25.91)Computer Programmer: $57,000 ($29.68 Hr.)Web Software Developer: $55,028 - $62,980 ($28.66 Hr.)Computer Network Technician: $40,000 (20.83 Hr.)Web designer: $48,000 ($25.00 Hr.)Customer Support Representative: $19,000 ($9.89 Hr.)
Training methods are high school, college and on the job experience for computer programmers and support personnel.
Who does which tasks is described in employee job description.
Page 34 of 71 Work schedules are based upon employee school schedule as office hours are 24/7, 364
and written procedures are described in job descriptions. Job descriptions and standard operating procedures (SOP) for employees are presented
to each employee, read and signed by employee and employee receives a personal copy. Used to help with internal communications with employees.
Contract workers will not be utilized.
Inventory ZERO inventory as all products are executable computer files. Inventory investment is virtual and not physical. Rate of turnover not yet established. No seasonal buildups. Lead-time for ordering = Zero.
SuppliersIdentify key suppliers:
Suppliers for Office Furnishings, Computer Hardware and supplies. Cash purchases only - Credit will not be used. History and reliability We would have more than one supplier for critical items (as a backup). As there is no physical inventory, there should be no expected shortages or short-term
delivery problems. Supply costs would be steady as cost fluctuation for supplies from vendors remain steady
or even lessen as larger amounts of supplies are ordered. If fluctuating of costs does occur we would deal with changing costs by using and
comparing different supplier costs.
Credit Policies Sales on credit will be to customers online paying instantly with credit or debit card. Business Clients that purchase online will pay with credit card. Sales to business or government clients will be based on the work amount and payed
using incremental payments until completion of work project. Actual credit will not be extended to business or government clients. We will use DUNS reports to check a clients’ ability to pay. Terms for credit will not be offered.
Managing Your Accounts ReceivableA monthly receivables aging table to track how much money is tied up with slow payment problems.
Total Current 30 Days 60 Days 90 Days Over 90 Days
Accounts Receivable Aging
Total Account
Account Balance
Day 15Day 30
Day 45Day 60 Day 75 Over 90
Days
Page 35 of 71
Action $0.00 $0.00 Letter to client
Phone client
All work on Hold
All work on Indefinite
Hold
You will need a policy for dealing with slow-paying customers: A letter will be sent 15 days and 30 days after payments are due. Phone calls will be made 45days and 60 days after payment due date. An attorney to threaten the client will never be used, when payment is overdue, all work
on clients project halts.
Managing Your Accounts Payable
Total Current 30 Days 60 Days 90 Days Over 90 Days
Accounts Payable Aging
Total Account
Account Balance
Paid cash in full upon purchase
Action $0.00 $0.00 Zero Actions
Page 36 of 71
VII. Management and Organization
Organizational chart showing the management hierarchyCatalog Systems Inc.
Company Organizational Chart
Web User Interface Developer(Web Interface)
Programmer Analysts(Software Production)
IT Technician[Networking]
Sales & Marketing Manager(Marketing & Sales)
Software Engineer - Back End(Software Production)
Software Architect(Software Production)
Project Manager(Software Production)
Sr. Software Engineer(Software Production)
President & CEO
[Robert Konrath]
Web Designer Developer - Front End(Web Interface)
Web Interface Designer(Web Interface)
Computer Network Technichian[Networking]
Stratedy & Reaserch[Marketing & Sales]
Sales Representative[Marketing & Sales]
Social Media Marketer[Marketing & Sales]
[Marketing & Sales]
Accounting Manager(Receivables & Payables)
HR(Personnel)
Jr. Software Engineer(Software Production)
Quality Assurance Manager(Software Production)
Quality Assurance Supervisor(Software Production)
Quality Assurance Test Engineers (Software Production)
Investors[Advisors]
Advisors / Outsourcedservices[Advisors]
Mentors and key advisors[Advisors]
Certified Public Accountant[Advisors)
Office Supply Vendors[Advisors]
Network and Computer Systems Administrators(Networking)
Computer User Support(Networking)
Software End User Support Representative(Software Production & Web Interface)
Front End Skills :HTML / LSSBootstrapGraphic Design
Back End Skills :Database / API DevelopersRest: APIMerge DBExpress JSAngular JSNode JSGama ScriptFramework
Page 37 of 71
Position descriptions for key employees
President/CEOManage the business on a day-to-day basis. My experience is derived from personal experiences in the military as a supervisor, as the owner of a private security and an Investigations Company, my college education in computer repair and data processing and as the owner of Catalog Systems Inc. designing and producing “The Media Cataloger v.1.0” software package and selling it online and in many local computer stores in my local area.
Accounting Department Manager (Receivables and Payables)Accounting Manager is responsible for maintaining the accounting system, preparing financial reports, invoicing, AR/AP, and maintaining inventory.
Human Recourses Department Manager (Personnel)Plan and lead core human resources programs and services to maximize the strategic use of human resources.
Sales and Marketing Department ManagerDevelop comprehensive marketing plans for sales and marketing teams. Plan, direct, or coordinate marketing policies and programs.
Software Product Manager (Computer Software Developers and Information Systems)Research, create, design and test operating systems-level software, compilers, and network distribution software for medical, industrial, military, communications, aerospace, business, scientific, and general computing applications.
Web Designer/Developer Department ManagerExperience with designing and developing user interfaces from requirement gathering, GUI design, and human factorconsideration and implementation.
Network and Computer Systems AdministratorsInstall, configure, and support a local area network (LAN), wide area network (WAN), and Internet systems or a segment of a network system. Monitor network to ensure network availability to all system users and may perform necessary maintenance to support network availability.
Out sourced Suppliers and vendorsInvestors, Advisors, Mentors, Certified Public Accounting, Office supply vendors and deliverables.
Professional and Advisory Support
Time Management is an important skill and I will use my skills to delegate authority to the managers below me. I will also have managers train the employees below them to fill the managerial positions in the event that a manager is absent. Training and cross training are a valuable asset in order to fill the positions needed and for promotion to the next level.
Page 38 of 71Duties and tasks that need to be outsourced are business advisors, mentors, certified public accountant and vendors.
Outside vendors and services have been budgeted and planned and as the business grows, the budget may increase.
Deliverables are defined as office equipment, furniture, paper products, printer ink and services provided by outsourced services. Deliverables consist of quantity of items, delivery dates, and quality of items, the cost and completeness with no missing parts or pieces.
1. The company board is made up of the key employees 2. The management advisory board are key employees and 3. Attorney 4. Accountant 5. Insurance agent 6. Banker 7. Consultants 8. Mentors and Advisors
Page 39 of 71
VIII. Personal Financial Statement
Page 40 of 71
Personal Financial Statement of:Robert KonrathAs of 02/17/2018
Assets Amount in DollarsCash - checking accounts $0.00Cash - savings accounts $0.00Certificates of deposit $0.00Securities - stocks / bonds / mutual funds $0.00Notes & contracts receivable $0.00Life insurance (cash surrender value) $0.00Personal property (autos) $15,104.00
Retirement Funds (eg. IRAs, 401k) $0.00Real estate (market value) $139,317.00Other assets (specify) $0.00Other assets (specify) $0.00Total Assets $154,421.00
Liabilities Amount in DollarsCurrent Debt (Credit cards, Accounts) $0.00Notes payable (describe below) $5,029.60Taxes payable $0.00
Real estate mortgages (describe) $76,525.33Other liabilities (specify) $0.00Other liabilities (specify) $0.00Total Liabilities $81,554.93
Net Worth $72,866.07
Signature: Date:
2/17/2018____________________________ _____________________________________________________
Page 41 of 71
Personal Finance Statement of:Robert KonrathAs of 02/17/2018
Details
1. ASSETS - Details
Notes and Contracts held
From Whom Owing Balance Owing Original Amount Original DateMonthly Payment Maturity Date
$0.00 $0.00 $0.00
Securities: stocks / bonds / mutual funds
Name of SecurityNumber of
Shares Cost Market ValueDate of
Acquisition$0.00 $0.00
Stock in Privately Held Companies
Company Name No. of shares $ InvestedEst. Market
Value$0.00 $0.00
Real Estate
Description / Location Market Value Amount Owing Original Cost Purchase DateHouse / Original note / 1316 N.W. 7th Pl., Moore $79,732.54 $100,300.00 $205,140.39 3/23/1998House / Refinanced note / 1316 N.W. 7th Pl., Moore $129,267.00 $76,525.33 $100,300.00 4/1/2005
2. LIABILITIES - Details
Credit Card & Charge Card DebtName of Card / Creditor Amount DueSears Credit Card $0.00
Notes Payable (excluding monthly bills)
Name of Creditor Amount Owing Original AmountMonthly Payment Interest Rate
Secured by (Leine)
Service Finance Co. LLC. $5,029.60 $7,713.60 $64.28 7.99% Furnace
Mortgage / Real Estate Loans Payable
Name of Creditor Amount Owing Original AmountMonthly Payment Interest Rate
Secured by (Leine)
M&T Bank $76,525.33 $100,300.00 $941.07 5.75% Liene (House)
Page 42 of 71
IX. Startup Expenses and Capitalization
Page 43 of 71
Fixed Asset Puchase & Startup Expense List
Cost CommentsFixed Asset Description: Vehicles $0.00
Office Furniture10 Office desks L-shaped $5,489.90
1 Executive desk $410.99
10 Office chairs $999.90
1 Executive chair $155.89 Sub Total = $7056.68
Office Equipment
Dell Network Equipment Front & Back $19,462.99
10 Dell PC desktop computers $16,681.40
5 Apple desktop computers $5,165.00
3 Dell PC laptop computers w/3 USB Slim DVD RW DRIVES $4,065.47
3 Apple iMac computers $5,165.00
3 Apple MacBook Pro laptop computers $8,457.00
3 Apple iPad Pro tablets $2,937.00
3 Samsung Android tablets $1.499.97
2 wall mounted smart flat screen televisions $3,599.98
1 Brother mono laser all in one printer $699.99 Sub Total = $ 67,733.80
Office SuppliesPaper & Desk Supplies $1,819.04 Sub Total = $1,819.04
Computer Software
Programming Software $77,308.00 Sub Total = $77,308.00
Office SpaceLeased Office space 2000 Sq. ft $1,930.00
Leasehold Improvements $2,500.00
Remodel $2,376.77
Cable & Network Installation $1,106.00
Telephone $800.00
Utilities ( Elec, Gas, & Water ) $806.00 Sub Total = $9,518.77
Start-up Expenses Description:
Staff Expenses - Annual Payroll $877,824.00
Beginning Inventory - No Inventory Required $0.00
Initial Marketing & Promotion - Mixed Social Media and Marketing $0.00 Sub Total = $877,824.00
Legal/Organization CostsUmbrella Insurance $404.00
Business Liability Insurance $4.176.00
Worker Compensation Insurance $2,897.00
Licenses and Permits $90.00 Sub Total = $7,567.00
Total Fixed Asset and Start-up Expenses: $1,048,872.29
Contingencies: $209,765.45
Notes: Contingencies equal at least 20 percent of the total of all start-up expenses.
Explanation of research
Page 44 of 71
Economics Research
Current demand in target market.Source: eMarketer, Forrester Researchhttp://www.onlinemarketing-trends.com/2015/12/global-ecommerce-to-exceed-400billion.html
E-commerce and marketingGrowth potential and opportunity for the business. (Exert: Doug Heise Internetretailer.com)https://www.internetretailer.com/2016/01/07/4-e-commerce-predictions-2016
Competitive AnalysisCompetitive look at Amazon – Alibaba and ebay http://www.forbes.com/sites/greatspeculations/2015/10/09/a-comparative-look-at-the-valuation-of-amazon-alibaba-and-ebay/#68f4cf4a747e
Startup Expenses and CapitalizationFixed Asset Purchase & Startup Expenses (prices listed below are based upon individual items)
Office FurnitureDesksABC Office Furniture http://abcofficeok.com/used-furniture/ Stows Office Furniture http://www.stowsofficefurniture.com/pre-owned/desks/ Chairs Executive and desk – Executive Chair $151.89 Desk / Desk Chair $199.99http://www.staples.com/Flash-Furniture-High-Back-Fabric-Executive-Chair-Fixed-Arms-Black/product_201025http://www.staples.com/Staples-Carder-Mesh-Office-Chair-Black/product_136815
Office EquipmentDell Network Equipment – Price Quote for entire network system $19,462.99Dell Sonicwall T2500 http://www.dell.com/us/p/sonicwall-tz-series/pd?oc=&model_id=sonicwall-tz-series&l=en&s=bsdDell Smart UPS 3000RM http://accessories.dell.com/sna/productdetail.aspx?c=us&l=en&s=bsd&cs=04&sku=A7545502Dell APC Metered Pack PDU 2G http://pilot.search.dell.com/apc%20metered%20rack%20pdu%202g%20power%20distribution%20unit%201440%20vaDell Networking N1500 Series Switches http://pilot.search.dell.com/Dell%20Networking%20N1500%20Series%20SwitchesDell Netshelter SX 24U Rack http://pilot.search.dell.com/Dell%20Netshelter%20SX%2024U%20RackDell PowerEdge R630 http://pilot.search.dell.com/Dell%20PowerEdge%20R630Dell Sonicpoint AC1with POE Injector http://www.dell.com/us/p/sonicwall-clean-wireless-series/pd?oc=shared_11495&model_id=sonicwall-clean-wireless-series&l=en&s=bsd
Dell Desktop computer OptiPlex 7440 AIO - $1,543.62http://www.dell.com/us/p/optiplex-24-7000-aio/pd?oc=cto02ao7440aious&model_id=optiplex-24-7000-aio&l=en&s=bsd
Dell Laptop computer Inspiron 17 7000 Series - $1,189.00
Page 45 of 71http://www.dell.com/en-us/shop/productdetails/inspiron-17-7779-2-in-1-laptop/dncwscb6112h?oc=dncwscb6112h&l=en&s=dhs
Dell USB Slim DVD +/- RW – DW316 - $59.99http://www.dell.com/en-us/shop/dell-usb-slim-dvd-rw-drive-dw316/apd/429-aaux/storage-drives-media
Apple 21.5 inch iMac - $1,033.00 http://www.apple.com/imac/
Apple 15 inch MacBook Pro - $2,819.00 http://www.apple.com/macbook-pro/
Apple 12.9 inch iPad Pro with WiFi 128GB - $899.99 http://www.apple.com/ipad-pro/
Samsung Galaxy View 18.4 inch 32GB – $449.99 http://www.samsung.com/us/explore/galaxy-view-features-and-specs/
Brother MFC-L6900DW Monochrome AIO Printer - $699.99http://www.brother-usa.com/MFC/ModelDetail/4/mfcl6900dw/Overview
Office space for 2000 sq. ft. $1,930.00Cable Network installation $606.00Leasehold Improvements and Remodel $4,876.77Monthly Utility services &889.00Business and Employee Insurance $948.00
Employee payrollThe company will have 20 employees at startup and some employees will fill multiple positions until the business grows.Employee wages will vary with position and education. All employees will be current juniors and seniors from local colleges.Pay will start by hiring students that currently work and want to work in the positions that they are studying for. Wages will start just a little higher than their current employment and as the student rises in education and final graduation their pay will increase to the entry level for a graduate. Pay is derived using The United States Department of Labor Statistics. https://www.bls.gov/oes/current/oes_ok.htm
Promotions and TransfersIt is the policy of Catalog Systems to promote from within, when business and personal circumstances permit.Promotions depend on a variety of factors, including, among others, your qualifications and length of service. Among the qualifications taken into consideration are education, experience, merit, performance record, ability, character, skill, attendance and attitude. Promotions are at grade levels 2,3,4 and 5. Promotions can also be made by a change of position.
Within-Grade Step Increase (WGI)What are within-grade increases or step increases?Within-grade step increases are periodic increases in an employee's rate of basic pay from one step of the grade of his or her position to the next higher step of that grade. An employee's rate of basic pay is the rate of pay fixed by administrative action for the position held by the employee before any deductions and exclusive of additional pay of any kind. Time and experience earned 104 weeks (2 years) or 156 weeks (3 years).
Page 46 of 71-------------------------------------------------------------------------Quality Step Increase (QSI)What is a quality step increase (QSI) and how does it affect a within-grade increase? A (QSI) is a faster-than-normal pay increase used to reward employees at any pay grade level who display high quality performance and/or merit. To be eligible for a QSI, employees must: be below step 10 of their grade level; have received the highest rating available under their performance appraisal system; have demonstrated sustained performance of high quality; and have not received a QSI within the preceding 52 consecutive calendar weeks.
A QSI does not affect the timing of an employee's next regular WGI unless the QSI places the employee in step 4 or step 7 of his or her grade. In these cases, the employee becomes subject to the full waiting period for the new step--i.e., 104 weeks or 156 weeks, respectively--and the time an employee has already waited counts towards the next increase. The employee receives the full benefit of receiving a WGI at an earlier date and has not lost any time creditable towards his or her next WGI.An employee may become eligible for promotion in an area or department other than the one to which you are currently assigned. If an employee interested in such a promotion, the employee should mention theirinterest to their Supervisor/Manager or the Executive Director. He or she may then discuss with the employee ways in which the employee can prepare themselves for promotion and keep current on openings as they occur.
Page 47 of 71
Oklahoma Pay Scale By Percentile 10% 25% 50% 75% 90%
Grade 1 2 3 4 5
Promotion step points promo 1 promo 2 promo 3 promo 4
Position B/O Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 Step 12 Step 13
Custodian B $10.89 $11.13 $11.25 $11.62 $11.80 $11.98 $12.34 $12.52 $12.71 $13.07 $13.43 $13.80 $14.16O 16.33 16.60 16.87 17.43 17.70 17.97 18.51 18.78 19.06 19.60 20.14 20.70 21.24
Sales Specialist B 13.94 14.93 15.93 17.93 19.29 20.65 23.38 25.03 26.69 30.30 34.36 36.71 39.07O 20.91 22.40 23.89 26.89 28.93 30.97 35.07 37.55 40.03 45.45 51.41 55.06 58.60
Computer User Support Specialist B 13.94 14.93 15.93 17.93 19.29 20.65 23.38 25.03 26.69 30.30 34.36 36.71 39.07O 20.91 22.40 23.89 26.89 28.93 30.97 35.07 37.55 40.03 45.45 51.41 55.06 58.60
Web Designer B 16.71 18.13 19.55 22.40 24.60 26.81 31.23 34.17 37.11 43.00 49.53 52.79 56.07O 25.06 27.19 29.32 33.60 36.90 40.21 46.84 51.25 55.66 64.50 74.29 79.18 84.10
Web Software Developer B 16.71 18.13 19.55 22.40 24.60 26.81 31.23 34.17 37.11 43.00 49.53 52.79 56.07O 25.06 27.19 29.32 33.60 36.90 40.21 46.84 51.25 55.66 64.50 74.29 79.18 84.10
Web Designer/Devloper Manager B 16.71 18.13 19.55 22.40 24.60 26.81 31.23 34.17 37.11 43.00 49.53 52.79 56.07O 25.06 27.19 29.32 33.60 36.90 40.21 46.84 51.25 55.66 64.50 74.29 79.18 84.10
Computer Network Technician B 17.48 18.76 20.04 22.61 24.44 26.27 29.93 32.38 34.84 39.76 45.43 48.27 51.11O 26.22 28.14 30.06 33.91 36.65 39.40 44.89 48.57 52.26 59.64 68.14 72.40 76.66
Computer Network Support Tech B 17.48 18.76 20.04 22.61 24.44 26.27 29.93 32.38 34.84 39.76 45.43 48.27 51.11O 26.22 28.14 30.06 33.91 36.65 39.40 44.89 48.57 52.26 59.64 68.14 72.40 76.66
Computer Programmer I B 18.80 19.79 20.79 22.79 24.16 25.54 28.24 29.97 31.70 35.16 39.54 41.73 43.93O 28.20 29.69 31.18 34.18 36.24 38.31 42.36 44.95 47.55 52.74 59.31 62.59 65.89
Computer Programmer II B 21.37 23.27 25.17 28.97 31.28 33.60 38.24 41.12 44.01 49.79 56.34 59.61 62.89O 32.05 34.90 37.75 43.45 46.92 50.40 57.36 61.68 66.01 74.68 84.51 89.41 94.33
Database Administrator B 21.85 23.61 25.37 28.89 31.49 34.09 39.29 42.25 45.22 51.15 56.12 58.60 61.09O 32.77 35.40 38.05 43.33 47.23 51.13 58.93 63.38 67.83 76.72 84.18 87.90 91.63
Network and Computer Admin B 22.82 24.37 25.92 29.02 31.11 33.21 37.41 40.01 42.62 47.84 53.75 56.70 59.66O 34.23 36.55 38.88 43.53 46.67 49.81 56.11 60.02 63.93 71.76 80.62 85.05 89.49
Software Engineer / Sys Analyist B 24.96 26.69 28.42 31.89 34.23 36.57 41.25 44.06 46.88 52.51 58.81 61.96 65.12O 37.44 40.03 42.63 47.83 51.34 54.85 61.87 66.09 70.32 78.76 88.21 92.94 97.63
Human Resources Manager B 29.47 31.62 33.78 38.09 41.12 44.15 50.21 54.70 59.20 68.20 75.46 82.72 90.00O 44.20 47.43 50.67 57.13 61.67 66.22 75.31 82.05 88.80 102.30 113.19 124.08 135.00
Accounting Department Manager B 30.30 32.89 35.48 40.67 44.68 48.70 56.73 62.22 67.71 78.69 82.46 86.23 90.00O 45.45 49.33 53.22 61.00 67.02 73.05 85.09 93.32 101.56 118.03 123.69 129.34 135.00
Software Product Manager B 31.06 33.20 35.34 39.62 42.40 45.19 50.76 53.89 57.03 63.30 67.81 72.32 76.85O 46.59 49.80 53.01 59.43 63.60 67.78 76.14 80.84 85.54 94.95 101.71 108.48 115.27
Sales and Marketing Manager B 31.78 34.83 37.89 44.00 48.47 52.95 61.90 67.46 73.03 84.16 86.10 88.04 90.00O 47.67 52.24 56.83 66.00 72.71 79.42 92.85 101.19 109.54 126.24 129.15 132.06 135.00
IT and Comp-Systems Info Manager B 38.54 41.15 43.76 48.98 52.55 56.12 63.27 67.42 71.57 79.88 83.25 86.62 90.00O 57.81 61.72 65.64 73.47 78.82 84.18 94.90 101.12 107.35 119.82 124.87 129.93 135.00
SALARY/ WAGE TABLE 2017 Step Increases Based on Grade and Step Education level
Hourly Basic (B) Rates Work ExperienceOvertime (O) Rates Merit and Promotion
Investment into Catalog Systems Inc.Investors can invest in a number of ways. The investment will be used to fund the first year of operating expenses.A single investor can invest $1,000,000.00 for a 35% interest in the company2 investors can invest $500,000.00 each for a 17.5% interest in the company.
Page 48 of 714 investors can invest $250,000.00 each for an 8.75% interest in the company
Page 49 of 7112-Month Profit and Loss Projection
Page 50 of 71Year 1
Profi
t and
Loss
Proje
ction
(12 M
onths
)Ca
talog
Sys
tems I
nc.
First
year
of sa
les du
ring p
rodu
ction
of so
ftwar
e
Fisca
l Yea
r Beg
ins
Sale
s are
deriv
ed fro
m Pr
elaun
ch S
ales -
Kick
starte
r web
sites
and d
onati
ons a
re no
t sho
wnJa
n-18
Reve
nue (
Sales
)Me
dia C
atalog
er 2.
0 PC
& Ma
c21
010
0.069
010
0.01,5
0010
0.03,9
0010
0.06,0
9010
0.013
,500
100.0
15,18
010
0.021
,090
100.0
31,98
010
0.081
,000
100.0
120,0
0010
0.018
0,000
100.0
475,1
4010
0.0Me
dia C
atalog
er 2.
0 Pro
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Media
Cata
loger
2.0 i
Phon
e0.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0Me
dia C
atalog
er 2.
0 iPa
d0.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0Me
dia C
atalog
er 2.
0 iPa
d Pro
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Media
Cata
loger
2.0 A
ndro
id Ph
one
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Media
Cata
loger
2.0 A
ndro
id Ta
blet
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Media
Cata
loger
2.0 A
ndro
id T P
ro0.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0Mo
nthly
Onlin
e Stor
e Sub
scrip
tions
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Media
Cata
loger
2.0 R
esell
er Li
cens
ing0.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0Me
dia C
atalog
er 2.
0 Lice
nsee
Roy
alties
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Contr
act S
oftwa
re S
ervic
es0.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0Co
mm
ercia
l Vide
o Adv
ertis
ing0.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0To
tal Re
venu
e (Sa
les)
210
100.0
690
100.0
1,500
100.0
3,900
100.0
6,090
100.0
13,50
010
0.015
,180
100.0
21,09
010
0.031
,980
100.0
81,00
010
0.012
0,000
100.0
180,0
0010
0.047
5,140
100.0
Cost
of Sa
lesOf
fice F
urnit
ure
7056
.733
60.3
1,411
204.5
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
8,468
1.8Of
fice E
quipm
ent
67,73
4-
--
--
--
--
--
-67
,734
14.3
Prod
uctio
n Wag
es &
Sala
ry57
,600
-57
,600
-57
,600
-57
,600
-57
,600
-57
,600
-57
,600
-57
,600
-57
,600
-57
,600
-57
,600
-57
,600
-69
1,200
145.5
State
Tax =
$14.2
9 + 5%
of $5
6,471
.002,8
38-
2,838
-2,8
38-
2,838
-2,8
38-
2,838
-2,8
38-
2,838
-2,8
38-
2,838
-2,8
38-
2,838
-34
,056
7.2Fe
dera
l Tax
= SS
6.2%
+ Me
d 1.45
%8,8
13-
8,813
-8,8
13-
8,813
-8,8
13-
8,813
-8,8
13-
8,813
-8,8
13-
8,813
-8,8
13-
8,813
-10
5,756
22.3
Total
Cost
of Sa
les14
4,042
6859
1.370
,662
1024
0.969
,251
4616
.769
,251
1775
.769
,251
1137
.169
,251
513.0
69,25
145
6.269
,251
328.4
69,25
121
6.569
,251
85.5
69,25
157
.769
,251
38.5
907,2
1419
0.9
Gros
s Pro
fit-1
43,83
2-6
8491
.3-6
9,972
-101
40.9
-67,7
51-4
516.7
-65,3
51-1
675.7
-63,1
61-1
037.1
-55,7
51-4
13.0
-54,0
71-3
56.2
-48,1
61-2
28.4
-37,2
71-1
16.5
11,74
914
.550
,749
42.3
110,7
4961
.5-4
32,07
4-9
0.9
Expe
nses
Non P
rodu
ction
Wag
es &
Sala
ry0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
State
Inco
me T
ax13
6.041
6.090
6.023
46.0
365
6.081
06.0
911
6.01,2
656.0
1,919
6.04,8
606.0
7,200
6.010
,800
6.028
,508
6.0Fe
dera
l Inco
me T
ax32
15.0
104
15.0
225
15.0
585
15.0
914
15.0
2,025
15.0
2,277
15.0
3,164
15.0
4,797
0.012
,150
15.0
18,00
015
.027
,000
15.0
71,27
115
.0Ou
tside
servi
ces
00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0Su
pplie
s (off
ice an
d ope
ratin
g)79
,127
3767
9.50.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
79,12
716
.7Re
pairs
and m
ainten
ance
4,877
2322
.40.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
4,877
1.0Ad
vertis
ing0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Car, d
elive
ry an
d tra
vel
00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0Ac
coun
ting a
nd le
gal (C
PA)
0.00.0
503.3
0.00.0
500.4
0.00.0
500.2
0.00.0
300
0.245
00.1
Rent
& Re
lated
Cos
ts1,9
3091
9.01,9
3027
9.71,9
3012
8.71,9
3049
.51,9
3031
.71,9
3014
.31,9
3012
.71,9
309.2
1,930
6.01,9
302.4
1,930
1.61,9
301.1
23,16
04.9
Telep
hone
800
381.0
300
43.5
300
20.0
300
7.730
04.9
300
2.230
02.0
300
1.430
00.9
300
0.430
00.3
300
0.24,1
000.9
Utilit
ies - E
lec, G
as &
Wate
r80
638
3.830
644
.330
620
.430
67.8
306
5.030
62.3
306
2.030
61.5
306
1.030
60.4
306
0.330
60.2
4,172
0.9Um
brell
a Ins
uran
ce40
419
2.40.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
404
0.1Bu
sines
s Liab
ility I
nsur
ance
4,176
1988
.60.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
4,176
0.9W
orke
r Com
pens
ation
Insu
ranc
e2,8
9713
79.5
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.02,8
970.6
Taxe
s (re
al es
tate,
etc.)
00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00
0.0Int
eres
t0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Depr
eciat
ion0.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
40,32
422
.440
,324
8.5Ca
ble, In
terne
t & N
etwor
k1,1
0652
6.760
687
.860
640
.460
615
.560
610
.060
64.5
606
4.060
62.9
606
1.960
60.7
606
0.560
60.3
7,772
1.6Ro
yalty
Pay
men
ts (Q
uarte
rly)
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
0.00.0
00.0
Total
Expe
nses
96,16
745
793.9
3,287
476.4
3,507
233.8
3,961
101.6
4,421
72.6
6,027
44.6
6,330
41.7
7,571
35.9
9,908
31.0
20,15
224
.928
,342
23.6
81,56
645
.327
1,239
57.1
Net P
rofit
Befor
e Tax
es-1
31,74
2-6
2734
.3-4
8,402
-230
48.6
-43,9
02-2
0905
.7-4
0,152
-191
20.0
-36,4
02-1
7334
.3-3
2,052
-152
62.9
-26,6
52-1
2691
.4-7
,602
-362
0.022
,998
1095
1.497
,698
4652
2.919
3,848
9230
8.621
7,848
1037
37.1
165,4
8678
802.9
Incom
e Tax
es-2
7,666
-131
74.1
-101
64.4
-484
0.2-9
219.4
-439
0.2-8
431.9
-401
5.2-7
644.4
-364
0.2-6
730.9
-320
5.2-5
596.9
-266
5.2-1
596.4
-760
.248
29.6
2299
.820
516.6
9769
.840
708.1
1938
4.845
748.1
2178
4.824
822.9
1182
0.4Ne
t Ope
ratin
g Inc
ome
-212
,333
-101
111.1
-63,0
94-9
144.1
-62,0
39-4
135.9
-60,8
80-1
561.0
-59,9
37-9
84.2
-55,0
47-4
07.8
-54,8
04-3
61.0
-54,1
35-2
56.7
-52,0
08-1
62.6
-28,9
20-3
5.7-1
8,301
-15.3
-16,5
65-9
.2-7
28,13
5-1
53.2
Page 51 of 71Three-Year Profit Projection
Page 52 of 71
3 Ye
ar P
rofit
and
Los
s Pr
ojec
tion
Cat
alog
Sys
tem
s In
c.Fi
rst y
ear o
f sal
es d
urin
g pr
oduc
tion
of s
oftw
are
Sta
rting
yea
r 201
8
S
ales
are
der
ived
from
Pre
laun
ch S
ales
- K
icks
tarte
r web
site
s an
d do
natio
ns a
re n
ot s
how
n20
18%
2019
%20
20%
Sale
s47
5,14
0$
100.
00%
1,68
7,46
6$
100.
00%
3,18
4,09
7$
10
0.00
%C
ost/
Goo
ds S
old
(CO
GS
)90
9,15
8
191.
35%
857,
528
50.8
2%85
0,47
1
26.7
1%G
ross
Pro
fit(4
34,0
18)
$
-9
1.35
%82
9,93
8$
49
.18%
2,33
3,62
6$
73
.29%
Ope
ratin
g Ex
pens
esS
alar
y (O
ffice
& O
verh
ead)
691,
200
$
14
5.47
%69
1,20
0$
40
.96%
691,
200
$
21
.71%
Pay
roll
(taxe
s et
c.)
139,
808
29
.42%
139,
808
8.29
%13
9,80
8
4.39
%O
utsi
de S
ervic
es-
0.00
%-
0.00
%-
0.00
%O
ffice
Fur
nitu
re10
,419
2.
19%
-
0.
00%
-
0.
00%
Offi
ce E
quip
men
t28
,036
5.
90%
-
0.
00%
-
0.
00%
Sup
plie
s (o
ff an
d op
erat
ion)
1,81
9
0.
38%
500
0.03
%55
0
0.02
%R
epai
rs/ M
aint
enan
ce4,
877
1.03
%-
0.00
%-
0.00
%A
dver
tisin
g-
0.00
%-
0.00
%-
0.00
%C
ar, D
elive
ry a
nd T
rave
l-
0.00
%-
0.00
%-
0.00
%A
ccou
ntin
g an
d Le
gal (
CP
A)
450
0.
09%
450
0.03
%45
0
0.01
%R
ent &
Rel
ated
Cos
ts28
,036
5.
90%
23,1
60
1.37
%23
,160
0.
73%
Tele
phon
e4,
100
0.86
%3,
600
0.
21%
3,60
0
0.
11%
Util
ities
4,17
2
0.
88%
3,67
2
0.22
%3,
672
0.12
%In
sura
nce
7,48
6
1.
58%
7,48
6
0.44
%7,
486
0.24
%Ta
xes
(real
est
ate
etc.
)-
0.00
%-
0.00
%-
0.00
%In
tere
st-
0.00
%-
0.00
%-
0.00
%D
epre
ciat
ion
40,3
24
8.49
%40
,324
2.
39%
40,3
24
1.27
%R
oyal
ty P
aym
ents
-
0.
00%
-
0.
00%
-
0.
00%
Cab
le, I
nter
net &
Net
wor
k7,
772
1.64
%7,
272
0.
43%
7,27
2
0.
23%
Tota
l Exp
ense
s96
8,49
9$
203.
83%
0.00
%91
7,52
2$
28.8
2%
Net P
rofit
Bef
ore
Taxe
s(1
,402
,517
)$
82
9,93
8
1,
416,
104
Inco
me
Taxe
s-
437,
485
527,
311
Ne
t Ope
ratin
g In
com
e(1
,402
,517
)
39
2,45
3
88
8,79
3
Page 53 of 71Projected Cash Flow
First year of sales during production of softw are Sales are derived from Prelaunch Sales - Kickstarter web sites and donations are not shown
Cash Flow (12 months) Catalog Systems Inc. Fiscal Year Begins: Jan-18Pre-Startup
EST Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18Total Item
ESTCash on Hand (beginning of month) Investor Funded
1,000,000 -205,204 -72,200 -143,958 -215,021 -283,826 -350,616 -410,639 -469,067 -522,057 -565,078 -562,951 -524,944 -205,204
CASH RECEIPTS
Cash Sales 0 210 690 1,500 3,900 6,090 13,500 15,180 21,090 31,980 81,000 120,000 180,000 475,140
Collections fm CR accounts 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Loan/ other cash inj. 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH RECEIPTS 0 210 690 1,500 3,900 6,090 13,500 15,180 21,090 31,980 81,000 120,000 180,000 475,140
Total Cash Available (before cash out)
0 210 -71,510 -142,458 -211,121 -277,736 -337,116 -395,459 -447,977 -490,077 -484,078 -442,951 -344,944 269,936
CASH PAID OUT
Office Furniture 7,057 0 0 0 0 0 0 0 0 0 0 0 0 7,057
Office Equipment 67,734 0 0 0 0 0 0 0 0 0 0 0 0 67,734
Office Supplies 1,819 0 0 0 0 0 0 0 0 0 0 0 0 1,819
Gross Wages (Exact Withdraw l 0 57,600 57,600 57,600 57,600 57,600 57,600 57,600 57,600 57,600 57,600 57,600 57,600 691,200
State Income Tax 0 2,838 2,838 2,838 2,838 2,838 2,838 2,838 2,838 2,838 2,838 2,838 2,838 34,056
Federal Income Tax 0 8,813 8,813 8,813 8,813 8,813 8,813 8,813 8,813 8,813 8,813 8,813 8,813 105,756
Accounting and Legal (CPA) 0 0 0 50 0 0 50 0 0 50 0 0 300 450
Computer Programming Sof tw are 77,308 0 0 0 0 0 0 0 0 0 0 0 0 77,308
Office Rent 1,930 1,930 1,930 1,930 1,930 1,930 1,930 1,930 1,930 1,930 1,930 1,930 1,930 25,090
Leasehold Improvements 2,500 0 0 0 0 0 0 0 0 0 0 0 0 2,500
Remodel 2,377 0 0 0 0 0 0 0 0 0 0 0 0 2,377
Cable & Netw irk Instalation 1,106 606 606 606 606 606 606 606 606 606 606 606 606 8,378
Telephone 800 300 300 300 300 300 300 300 300 300 300 300 300 4,400
Utilities ( Elec, Gas & Water ) 806 306 306 306 306 306 306 306 306 306 306 306 306 4,478
Umbrella Insurace 404 0 0 0 0 0 0 0 0 0 0 0 0 404
Business Liability Insurance 4,176 0 0 0 0 0 0 0 0 0 0 0 0 4,176
Worker Compensation Insurance 2,897 0 0 0 0 0 0 0 0 0 0 0 0 2,897
Licences and Permits 90 0 0 0 0 0 0 0 0 0 0 0 0 90
Startup Contingencies of 20 % 34,201 0 0 0 0 0 0 0 0 0 0 0 0 34,201
State Sales Taxes 0 17 55 120 312 487 1,080 1,214 1,687 2,558 6,480 9,600 14,400 38,011
Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0 0
SUBTOTAL 205,204 72,410 72,448 72,563 72,705 72,880 73,523 73,607 74,080 75,001 78,873 81,993 87,093 1,112,381
Loan principal payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Capital purchase (specify) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other startup costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Reserve and/or Escrow 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Ow ners' Withdraw al 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH PAID OUT 205,204 72,410 72,448 72,563 72,705 72,880 73,523 73,607 74,080 75,001 78,873 81,993 87,093 1,112,381
Cash Position (end of month) -205,204 -72,200 -143,958 -215,021 -283,826 -350,616 -410,639 -469,067 -522,057 -565,078 -562,951 -524,944 -432,037 -842,445
ESSENTIAL OPERATING DATA (non cash flow information)
Sales Volume (dollars) 0 210 690 1,500 3,900 6,090 13,500 15,180 21,090 31,980 81,000 120,000 180,000 475,140
Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Bad Debt (end of month) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Inventory on hand (eom) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accounts Payable (eom) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 40,324 40,324
Page 54 of 713 Year Projected Cash FlowYear 1
Page 55 of 71
3 Year Projected Cash Flow
Page 56 of 71Year 2
Page 57 of 713 Year Projected Cash Flow
Page 58 of 71Year 3
Page 59 of 713 Year Projected Cash Flow ProjectionYear 1 Year 2 Year 3
Page 60 of 71
Catal
og S
ystem
s Inc
.3-Y
EAR
CASH
FLO
W P
ROJE
CTIO
NMo
nth-1
Month
-2Mo
nth-3
Month
-4Mo
nth-5
Month
-6Mo
nth-7
Month
-8Mo
nth-9
Month
-10Mo
nth-11
Month
-12To
talJu
l-02
Aug-0
2Se
p-02
Oct-0
2No
v-02
Dec-0
2Ja
n-03
Feb-0
3Ma
r-03
Apr-0
3Ma
y-03
Jun-0
3Ye
ar-1
TOTA
L CAS
H IN
$212
$696
$1,51
2$3
,931
$6,13
9$1
3,608
$15,3
01$2
1,259
$32,2
36$8
1,648
$120
,960
$181
,440
$478
,942
TOTA
L CAS
H DI
SBUR
SEME
NT$4
47,03
6$1
49,08
0$1
45,94
7$1
46,42
0$1
46,89
8$1
48,56
3$1
48,87
9$1
50,16
8$1
52,59
2$1
92,36
8$2
22,78
0$2
50,56
0$2
,301,2
91Cl
osing
Cas
h Bala
nce (
Cumm
ulativ
e)($4
46,82
4)($1
48,38
4)($1
44,43
5)($1
42,48
9)($1
40,75
9)($1
34,95
5)($2
68,53
3)($3
97,44
2)($5
17,79
8)($6
28,51
8)($7
30,33
8)($7
99,45
8)($1
,822,3
49)
Mon
th-1
3M
onth
-14
Mon
th-1
5M
onth
-16
Mon
th-1
7M
onth
-18
Mon
th-1
9M
onth
-20
Mon
th-2
1M
onth
-22
Mon
th-2
3M
onth
-24
Tota
lJu
l-03
Aug-
03Se
p-03
Oct
-03
Nov-0
3De
c-03
Jan-
04Fe
b-04
Mar
-04
Apr-0
4M
ay-0
4Ju
n-04
Year
-2
$5,0
48$6
,619
$9,4
69$1
7,80
0$2
7,49
1$1
,043
,112
$58,
866
$70,
385
$92,
275
$103
,362
$117
,773
$155
,289
$1,7
07,4
89$1
50,3
94$1
44,2
40$1
43,8
97$1
45,6
19$1
47,6
79$6
82,6
61$1
67,9
98$1
71,1
73$1
92,3
94$2
10,2
75$2
23,7
43$2
41,6
13$2
,621
,685
($94
4,80
3)($
1,08
2,42
4)($
1,21
6,85
2)($
1,34
4,67
1)($
1,46
4,85
9)($
1,10
4,40
8)($
1,21
3,54
0)($
1,31
4,32
8)($
1,41
4,44
7)($
1,52
1,35
9)($
1,62
7,33
0)($
1,71
3,65
4)($
1,71
3,65
4)
Page 61 of 71
Mon
th-2
5M
onth
-26
Mon
th-2
7M
onth
-28
Mon
th-2
9M
onth
-30
Mon
th-3
1M
onth
-32
Mon
th-3
3M
onth
-34
Mon
th-3
5M
onth
-36
Tota
lJu
l-04
Aug-
04Se
p-04
Oct-0
4No
v-04
Dec-
04Ja
n-05
Feb-
05M
ar-0
5Ap
r-05
May
-05
Jun-
05Ye
ar-3
$15,
248
$18,
007
$53,
356
$47,
082
$59,
552
$1,1
11,3
12$8
7,21
9$1
15,8
28$1
90,2
73$1
69,2
24$1
,182
,483
$294
,801
$3,3
44,3
85$1
50,3
94$1
43,3
28$1
51,0
04$1
49,3
41$1
61,4
41$6
94,2
57$1
70,9
51$1
93,1
34$2
37,2
67$2
23,9
31$7
20,4
93$2
72,3
41$3
,267
,881
($1,
848,
799)
($1,
974,
121)
($2,
071,
768)
($2,
174,
027)
($2,
275,
916)
($1,
858,
860)
($1,
942,
593)
($2,
019,
899)
($2,
066,
892)
($2,
121,
600)
($1,
659,
610)
($1,
637,
150)
($1,
637,
150)
Page 62 of 71Opening Day Balance Sheet
Page 63 of 71
Balance Sheet (Projected)Catalog Systems Inc.
Beginning Projectedas of 01/31/2018 as of 12/31/2018
Assets
Current AssetsCash in bank $ - $475,140 Accounts receivable 210 475,140 Inventory - - Prepaid expenses - - Other current assets - - Total Current Assets $ 210 $950,280
Fixed AssetsMachinery & equipment $ 67,734 $ - Furniture & fixtures 7,057 - Leasehold improvements 2,500 - Land & buildings - - Other fixed assets - - (LESS accumulated - - Total Fixed Assets (net of $ 77,291 $ -
Other AssetsIntangibles $ - $ - Deposits - - Goodwill - - Other - - Total Other Assets $ - $ -
TOTAL Assets $ 77,501 $950,280
Liabilities and Equity
Current LiabilitiesAccounts payable $ - $ - Interest payable - - Taxes payable 44 99,779 Notes, short-term (due within - - Current part, long-term debt - - Other current liabilities - - Total Current Liabilities $ 44 $ 99,779
Long-term DebtBank loans payable $ - $ - Notes payable to stockholders - - LESS: Short-term portion - - Other long term debt - - Total Long-term Debt $ - $ -
Total Liabilities $ 44 $ 99,779
Owners' EquityInvested capital $ - $ - Retained earnings - beginning - - Retained earnings - current - - Total Owners' Equity $ - $ -
Total Liabilities & Equity $ 44 $ 99,779
Page 64 of 71Break-Even Analysis
Page 65 of 71
Breakeven AnalysisCatalog Systems Inc.
Cost Description Fixed Costs ($) Variable Costs (%)Variable CostsCost of Goods Sold 907,214$ 191.0%Inventory -$ 0.0%Raw Materials 831,012$ 0.0%Direct Labor (Includes Payroll Taxes) 0.0%
Fixed CostsSalaries (includes payroll taxes) 174.0%Supplies 79,127$ 17.0%Repairs & maintenance 4,877$ 1.0%Advertising -$ Car, delivery and travel -$ Accounting and legal 540$ 0.1%Rent 23,160$ 5.0%Telephone 4,100$ 0.9%Utilities 4,172$ 0.9%Insurance 7,477$ 1.6%Taxes (Real estate, etc.) -$ Interest -$ Depreciation 40,324$ 8.5%Other (specify) -$ Other (specify) -$ Miscellaneous expenses -$ Principal portion of debt payment -$ Owner's draw -$
Total Fixed Costs $ 163,777
Total Variable Costs 191%
Breakeven Sales level = -179975
Page 66 of 71
X. Appendices
Certificate of Incorporation 1993
Page 67 of 71
Certificate of Stock For Catalog Systems Inc.
Page 68 of 71
Certificate of Copyright 1985
Page 69 of 71
Page 70 of 71Certificate of Copyright 1999
Page 71 of 71
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