Business Plans

Last Modication: 6-18-10
. Dot Delivery, Inc Green
( Section, Page )
The Gist, Three The Business Model, Four The Marketing Plan, Five The Operation, Six The Game, Seven Possible Expansion, Eight Visuals, Nine
Green Dot Delivery, Inc Copyright 2011. All Rights Reserved.
PO BOX 2236, Venice, CA 90291 (310) 591-9707 GreenDotDelivery@Gmail.com
The idea that sparked Green Dot was a bicycle ride on Main St, Santa Monica. After some numbercrunching, it made more sense to go with electric vehicles instead of bicycles.
The Gist.
At a glance...
Asking Price: $290,000
(10% of $2.9M Valuation)
Competition & Marketplace

Over 50% of Westside residents are carless. For some, groceries are the only need for a vehicle. Green Dot clients will save money on car-related expenses and play a role in saving the environment.
Month 8 50% promotion orders, 5,700+ orders Month 9 40% promotion orders, 6,500+ orders Month 10 30% promotion orders, 7,700+ orders Month 11 20% promotion orders, 8,900+ orders Month 12 10% promotion orders, 10,000+ orders
Personnel
With over 15 years of combined start-up experience, web 2.0 entrepreneurs Sean Ganser and Simon George have teamed up to make Green Dot a reality.
Begin Date: Aug. 1, 2011
First Year Net Prot

Over $2M.
Business
Green Dot Delivery Inc will deliver the nest goods from Trader Joes and Whole Foods using an electric eet of vehicles. Orders are placed over the web and iOS/ Android apps.
Operations
Month 1 Marketing Month 2 90% promotion orders, 500+ orders Month 3 80% promotion orders, 900+ orders Month 4 70% promotion orders, 1,500+ orders Month 5 60% promotion orders, 3,000+ orders Month 6 70% promotion orders, 3,500+ orders Month 7 60% promotion orders, 4,300+ orders
Strategic Partnerships
Receiving updated inventory from local Trader Joes and Whole Foods locations are mission-critical. In addition, advertising for an EV manufacturer will reduce or eliminate vehicle expenses.
Marketing
In one year, every household on the westside will house a Green Dot mesh bag. Over 50% of orders in the rst year will be complimentary with the hope of word-of-mouth advertising.
Equity Split
45% Sean Ganser, 25% Simon George, 10% CFO, 10% fundraising. 5% Trader Joes, 5% Whole Foods.
Three
Green Dot Delivery is a deliverer of groceries from Trader Joe's and Whole Foods using all-electric cars and user-friendly apps with inventory updated daily.
The Business
If you talk to local Santa Monica resident about delivery grocery service, they might mention a company called Pink Dot, a grocery delivery service that was at the top a few years ago. Slowly, these green Honda Elements started emerging creepily and slowly. This eet of cars is owned by a company called Yummy.com, a company that was started by two previous Pink Dot employees. Pink Dot and Yummy each offer their own stand-alone convenient stores with delivery. Green Dot Delivery is an innovative new business that coexists with existing grocery delivery business models. Green Dots competitive advantage is superior products at less expensive prices. This is possible because Trader Joes and Whole Foods make it possible. Green Dot Delivery will get its inventory from two Green Giants so Green Dot doesnt actually have any inventory, refrigerators, or eggs anywhere. Instead, Green Dot lives in Cyber World, Upon approval, displaying local Trader Joes and Whole Foods deals and inventory through its iOS, Green Dot will Android and Web applications via requested mobile pop-up alerts, for example. Users are free to use the home-brewed platform for their own shopping needs. For a twenty exclusively percent convenience charge, a user can have their shopping cart delivered in one hour serve the by an all-electric vehicle. Our service will save signicant amounts of tree and signicantly impact pollution on Los Angeles westside while providing cost-savings Westside of LA. include reduced driving expenses and time. Trader Joe's and Whole Foods lead the grocery industry with leading state-of-the-art business practices and strategic partnerships. They do this and still manage to create small, environmentally conscious communities. Are they special? Yes and no. Yes because they are willing to try things other companies dont and no because anybody can do this. Inspired by this type of business practice, Green Dot offers to extend the efforts of these Green Giants into the homes and businesses of the Westside, effectively with a focus on customer experience and employee treatment. Our all-electric eet of vehicles covers all areas north of Sepulveda Boulevard, south of Sunset Boulevard and west of Overland Avenue (please refer to Possible Expansion for coverage map). Orders will be placed through Fax, iPad, iPhone, Android apps and online at greendotdelivery.com using Green Dot Helper, a simple application made to display up-to-date inventory of local Trader Joes and Whole Foods locations in the form of a clean interface. Green Dot Helper will also be used to showcase a electronic newspaper, The Local Green. TLC has sections such as The Garden Gnome, which is about a short guy with big gardening tips, Dan the Practical Man, an article dedicated to giving practical green tips for everyday living, and The Green Giant, a section that delivers highlights promotions for Trader Joes and Whole Foods. Other articles include topics like animal rights, world economy, and Ask A Neighbor where questions are submitted and answered by the same audience. As mentioned previously, users can use Green Dot Helper as a shopping list or as a one-hour deliverer of goods.
Four
The Marketing Plan

Coupon Flyer:
Medium-sized postcard-type yer will be dispersed among coffee shops, clothing stores, speciality shops, and more. Allows recipients to use a no-expiration coupon to receive their rst order free of service charges and to pass it along to a friend or family. Please refer to Visuals.
Reusable Bags:
Two varieties. Green and Inverse White. Material: 100% polypropylene. These bags will be given away free-of-charge at various locations including farmers markets and art shows. This will be used as an additional way to slowly brand ourselves. Please refer to Visuals.
Business-to-Business:
Various local businesses on the Westside can benet greatly from Green Dot Delivery. Many efforts will be spent informing concierges of various hotels and resorts on the Westside. Please see last section for a list of targeted businesses.
Person-to-Person-to-Person:
While other approaches will aid in the growth of Green Dot, our main focus will be placed on personal, real life interaction. Our goal as a company is to feel like a friend that you can trust and depend on. Setting customer dealings, expectations, and standards high will lead to local word-of-mouth advertising inperson and on the web. Please refer to The Operation and The Crew for more about customer experience.
Green Dot Helper App:

Green Dot Helper will soon be available on iOS, Android and the Internet. The app will allow its users to create shopping lists for Trader Joes and Whole Foods on-the-go. Regular use of this app will create recognition among its users and the next time they hear a friend mention Green Dot or see an advertisement somewhere, the next time they use the App, hopefully it will be for a delivery order.
Online:
MTV associate Michael Arevalo will oversee an Internet commercial series that will utilize Pandoras location-specic technology to advertised only to Westside residences.
Primary Target Market:

Mothers and fathers between 28 and 45 years-old who reside in the Westside of Los Angeles.
Secondary Target Markets:

The transportation-challenged and/or eco-conscious: guests of resorts and hotels, college students, art enthusiasts, animal rights activists.
Primary Strategic Partnerships: Whole Foods and Trader Joes for a ve-star customer experience. Secondary Strategic Partnerships: A manufacturer of electric vehicles for a discounted eet of electric
vehicles. A mobile phone provider to advertise on vehicles for the purpose of free telecommunications. Possible partners include independent Westside businesses and other green giants if denied partnership with Trader Joes or Whole Foods.
Five
The Operation
What an order looks like behind-the-scenes:
An order arrives in the inbox of the COO. The COO assigns a fellow Green Dotter a Client nearby, while providing order details. The Green Dotter immediately calls Client to conrm order, to give their name and to notify them that their order should be arriving within the hour. The Dotter then drives to Trader Joes or Whole Foods and begins loading our reusable cloth bags with groceries, while maintaining a relaxed, friendly, and inviting atmosphere. A Dotter is open to questions from the public and encouraged to answer to their best knowledge, whether the inquiry is about an app or the weather. The Green Dotter than delivers groceries to Client. Client is greeted with a smile and the Dotters name and Dotter asks where Client would like their groceries. Dotters are also expected to treat Clients with a similar openness during their communication. Credit card transactions are then conducted over a mobile device via Square and receipts are sent to Clients email address.
What an order looks like on center stage:

You add items into Green Dot Helpers shopping cart intermittently. Order is placed at your convenience, as long as your grocery store of choice is open. Within minutes, a phone call is received by Green Dot requesting your conrmation and informing you with the drivers name and that your order will be there within the hour. Less than an hour later, the driver arrives at your front door with a smile and asks where youd like your groceries. After groceries are dropped, the driver asks you if youll be paying with credit or cash. Youre deciding to pay with your card to you hand your card over to the driver and they swipe your card using mobile phone and a funny-looking square adapter. You nd it oddly satisfying to sign your signature with your index nger. The driver kindly alerts you that your receipt will be sent to the email that you signed up with. After the driver leaves, you nd an email that includes an itemized receipt of your most recent order.
Customer
Operating Ofcer
Green Dot HELPER

for iOS, Android, and Web.
Six
The Game
Fortunately for us, direct competitors are non-existent. A green delivery service for Trader Joes and / or Whole Foods does not exist. Green Dot is the rst of its kind, and because that is so, Green Dot will set the bar high.
Indirect Competitors: (source: Yelp!)

Business Name Vons Yummy.com Pink Dot KCs Market & Bistro Thyme Cafe & Market Bagel Nosh Deli Panera Bread Green Dot Delivery Same Day Delivery Online Ordering X X X X X Mobile Apps X X X X X X X
Currently, the only major grocery store on the Westside that has a dedicated same-day delivery service is Vons, a company that can coexist peacefully with Green Dot Delivery because Trader Joes and Whole Foods caters to a different market. Yummy, Pink Dot, and other indirect competitors lack in ordering options and their selection is fractional of Trader Joes and Whole Foods. Green Dot Delivery is non-threatening to these businesses, everybody can live in harmony, and the Westside can have a greater GDP.
Hypothetical Nonsense. Lets assume that person A who shops at Vons does more than 75% of their grocery shopping at non-Trader Joes or non-Whole Foods stores on the Westside. Lets also assume that person B does more than 75% of their grocery shopping at Trader Joes or Whole Foods. Green Dot isnt concerned with convincing person A about anything, nor targeting any marketing efforts towards them.
Its safe to assume that person A and person B have a few contradicting philosophies.
Here are some fun and interesting (and imaginary) numbers. These imaginary statements are based on the notion that Green Dot delivered ALL groceries to EVERY household in the zip code of 90291, for A WHOLE YEAR. Ya, right. Like thats gonna happen. Green Dot could...
...avoid 3,088 tons of carbon dioxide entering the sky (1/5 of a gallon of gas per roundtrip) ...save 11,142 trees from being chopped down (5 bags per order & 700 bags per tree)
Marketplace
Green Dot is focusing its marketing efforts to the following type of potential buyer: mothers and fathers who live in the Westside between the ages of 25 and 50. The reason for this is that this buyer will have the highest average sale. Since it takes [almost] the same amount of company resources to send out small orders, it makes nancial sense to get more of these buyers to increase our [and the Green Giants] bottom line. To help reach sales goals, Green Dot will concentrate branding efforts to the carless population of the Westside. This secondary market cares alot about saving money (including car-related expenses, obviously). Theyre also concerned about their surrounding environment and are careful what they associate themselves with. Meanwhile, our primary market is more concerned with efficiency then image and because that is so, they will be reached using unique, efficient avenues (i.e., Maternity Stores).
Seven
Possible Expansion
Upon success in the, Green Dot will want to expand its business model, coverage area, and weekly magazine, The Local Green, along coastal cities of California. After Green Dot Delivery has been successfully multiplied locally, we are going national. San Francisco Bay, Manhattan, and Austin are our most desired locations of expansion to due local demographics. Though Green Dot wishes to be exclusive to Trader Joes and Whole Foods, we will be lling a niche regardless and going after other strategic partners and independent businesses within in our coverage area.
Current Coverage - Westside of LA
Future Coverage - Southern California Beach Cities
Green Dot SF Bay Coverage
Green Dot Austin Coverage
Green Dot Manhattan Coverage
Eight
Visuals
Reusable Mesh Bag. We pick these up from clients when we deliver an order. Oh, and were giving away 120,000 of these in our rst year.
Reusable recycled print advertisement. You can nd these at your local coffee shops.
Nine
StratoSync, Inc
Business Plan
StratoSync, Inc Business Plan
Table of Contents
TABLE OF CONTENTS
Confidentiality / Nondisclosure Agreement .................................................................................................... i Executive Summary................................................................................................................................ 40 I. Industry Analysis .................................................................................................................................. 1 II. Business Concept ................................................................................................................................ 5
Mission Statement...................................................................................................................................... 5 Business Goals ............................................................................................................................................ 6 Value Proposition....................................................................................................................................... 7 Business Models ......................................................................................................................................... 9 Products and Services ................................................................................................................................... 11
III. Market Analysis ............................................................................................................................... 18

Pricing Strategy ..................................................................................................................................... 22 Promotion Plan ..................................................................................................................................... 23 Distribution Plan .................................................................................................................................. 23 Demand Forecast ................................................................................................................................... 23
IV. Competitor Analysis ........................................................................................................................ 24

Direct Competitors................................................................................................................................. 24 Indirect Competitors .............................................................................................................................. 25 Future Competitors ................................................................................................................................ 26 Competitive Strategies ............................................................................................................................ 27
StratoSync, Inc 2008
Table of Contents
V. Operations ......................................................................................................................................... 28
Business Location ................................................................................................................................... 28 Operating Facilities and Equipment ....................................................................................................... 28 Production and Operating Procedures ..................................................................................................... 28 Purchasing Procedures ............................................................................................................................ 29 Inventory Management Procedures.......................................................................................................... 29 Quality Control Procedures .................................................................................................................... 29 Customer Service Procedures ................................................................................................................... 30 Organization Structure .......................................................................................................................... 31 Management Plan ................................................................................................................................. 31 Internal Salaries .................................................................................................................................... 31 Respective Candidates ............................................................................................................................ 32 Development............................................................................................................................................ 33 Product Development ............................................................................................................................. 33 Product Firmware Development ............................................................................................................. 33 User Software Development .................................................................................................................... 33 Website Development ............................................................................................................................. 33 Domain Names ..................................................................................................................................... 33
VI. Financial Statements ....................................................................................................................... 34

Cash Flow Statements ............................................................................................................................ 34 Income and Expense Statement ............................................................................................................... 36 Financial Ratios .................................................................................................................................... 39
I. Industry Analysis
Industry Analysis
Martin Gartner, Director of Wireless Intelligence, a mobile industry information provider, announced, "The cellular industry took 20 years to reach 1 billion connections, three years to reach 2 billion connections and is on target to reach its third billion in a period of just over two years. In less than one year, his prediction was exceeded by 300 million. Given the fresh company model, to compare StratoSync Inc with one industry would be lax, to say the least, as the company presents a new Industry model. Call it, the device synergy industry, and StratoSync plans to be the exclusive company in that market. Sounds ambitious, huh? Well StratoSync puts it together pretty well. Yahoo! Finance would categorize StratoSync under networking & communication devices. Not as catchy, I know, but as a first time start-up entrepreneur, Im learning that its the small sacrifices, like these, that count. With both feet in the networking & communication devices industry, StratoSync walks in the Information Technology sector. Taking this position, StratoSync is a footstep away from the following industries: data storage services, electronic payment services, and internet music distribution. These are the auxiliary industries involved in StratoSyncs capitalization of what has become to be known as the placeshifting industry, with the companys focal revenue generated through the sales of network and communication devices. To shed some light on a relatively new industry, the placeshifting industry was made evident by San Mateo, CA based company Sling Media Inc with the 2005 release of a device that allows a user to stream programming from their television set-top boxes to a mobile computer over an Internet connection, hence the term placeshifting. Todays technology does not limit the type of data to be shifted if that medium is in digital form, a concept that StratoSync capitalizes on.
Confidential
As proposed by a Morgan Stanley report in December 20061, Sling Media sold 100,000+ Slingbox units in the first six months of shipment in 2005. Sling Media was later sold to the owners of Dish Network, EchoStar, for $380 Million in Q3 of 2007. Due to the recent birth of the placeshifting industry, there is still much that is untapped. There is yet to be a company that has created a digital-based placeshifting device, as opposed to the analog technology that the Slingbox uses wherein the placeshifting is that of an analog signal (e.g., A/V out for Cable TV). The first company that utilizes digital technology on a placeshifting device, and does it right, holds the potential of unlocking a myriad of convenient uses, products, services, and consequently, the complimentary revenue. This would allow a company to tap into the placeshifting industry in ways that current analog-based technology can not, allowing for embedded support of auxiliary markets, including internet music distribution, data storage services, and electronic payment services. This is what StratoSync puts together so well. As mentioned in the introduction, the Director of Wireless Intelligence, Martin Gartner, announced that it took 20 years for the mobile industry to reach 1 billion connections, three years to reach 2 billion connections, and estimated that it would take just over two years to reach the third billion. In a period of less than one year, his quota exceeded by 300 Million, with the number of active mobile phone subscriptions totaling 3.3 Billion, according to research firm Informa2. Take the worlds population and cut that in half. The bigger piece represents the number of mobile phones in use, and in essence, the addressable market for StratoSync, Inc. Revenue that was spent by mobile users on non-voice mobile data services was $102.3 billion in 2005, $28.4 Billion for Q1 of 2006, with expected revenue of $189 Billion by 2009, according to research firm Informa3. This represents that a growing number of users are uniformly turning to their mobile phones for external uses such as music downloads, data services, and media subscriptions. John Kennedy, Chairman and CEO of the IFPI, a company that represents the recording industry worldwide, announced "Revenues [for digital music downloads] for 2006 doubled to about
1 http://www.morganstanley.com/views/perspectives/files/Global_Internet_Trends_121906_FINAL.pdf 2 http://investing.reuters.co.uk/news/articleinvesting.aspx?type=media&storyID=nL29172095 3 http://www.unstrung.com/document.asp?doc_id=99866&WT.svl=wire1_1
Confidential
$2 billion and by 2010 we expect at least one quarter of all music sales worldwide to be digital. With this and the previously mentioned statistics of mobile phone data use in mind, a worldwide demand for a mobile solution for accessing purchased media is only a matter of time. This is a prospect of the mobility effect, and StratoSync is the cure. Current data storage solutions do not offer much support for mobility or efficient pricing models. As proposed in a Wall Street Journal article4, Pioneer Google Inc has announced that its preparing a service that would enable users to store data from their personal hard drives on its computers. A data storage service that incorporates mobile access, a service that StratoSync plans to supply, can be the finishing touch that binds all the products and services that counteract the demands of the mobility effect. There are other likelihoods in relation to the mobility effect and here is a statistic to help prove my point. By 1996, US consumers had 1.4 billion credit cards5, with the average American carrying 4 credit cards6. 12 years later, technology advances, credit card usage continues to grow, we land a go-kart on Mars, but not much changed in the means we pay for things. Research and analysis firm, IDTechEx, proposes that the RFID market will rise from $2.8 Billion in 2006 to $12.4 Billion in 20107. RFID, an acronym for radio frequency identification, is used predominately by delivery services and drug companies to ID items such as medicines and packages. RFID is used by other companies to ID books, livestock, tires, ticketing, baggage, secure documents including passports and visas and much more. What the previously stated statistics do not anticipate is the use of RFID in mobile phones. The idea of RFID use in mobile phones started circulating in 2005, but never really caught on as the demand was evanescent. Based on a service that StratoSync will implement, putting the two (RFID and mobile devices) together, and creating a convenient and safe passport for a users credit card accounts could be desirable and potentially quite profitable. In 1998, a company called PayPal Inc was formed with an attempt to create a safer alternative to e-commerce, allowing a user to upload their credit card or bank account information to an online account. In 2002,
4 Google Plans Service To Users Data, The Wall Street Journal, November 27, 2007; Page B1 5 Credit Card, The Columbia Encyclopedia, Sixth Edition, 2007 6 http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/1In7AmericansCarries10CreditCards.aspx 7 http://www.idtechex.com/products/en/articles/00000409.asp
Confidential
auctioneer EBay Inc acquired PayPal Inc for $1.5 Billion to permanently embed the PayPal service into its own model. Placing the mobile RFID payment passport in every day uses yields an unlimited stream of profitability. As its nice to compare StratoSync alongside with these incredibly successful mentioned companies, its not very practical due to the unique style of StratoSyncs infiltration of these auxiliary industries using placeshifting technology, which is explained in-depth in this Plan. The whole motto behind StratoSync is why get it there if its already right here with me, literally, in the form of a phone, computer, or any electronic linked to the same infrastructure.
Just
Rock & Roll.

-Simon George Founder, StratoSync.
The motto behind my drive.
Confidential
II. Business Concept
Mission Statement
StratoSyncs exclusive objective is to enhance a users life experience by bringing any desired information under the sky directly to them, specifically personal data, in the most efficient, cost effective and convenient access. Desired information includes music, work and important documents, recreational documents, owned content, movies, data not possessed, accounts, and communication with others. User access includes electronic devices that are used persistently in life, including computers, mobile phones, vehicle dashboards, televisions, and public domains.
Confidential
Business Goals
Assemble a non-provisional patent of the ready technology through an intellectual property firm, to keep StratoSyncs infrastructure and delivery system exclusive and unique. Establish a partnership with all major distributors worldwide including electronic retailers, supercenters, mobile phone providers, and miscellaneous boutiques. Distribute the retail product worldwide. Provide exceptional online and phone support for users who will ultimately influence the amount of companys growth. Promote the company and brand to potential customers and companies. License the product protocols to external companies in expanding the synergy infrastructure, as the larger the license portfolio, the higher the market value held by StratoSync. Implement auxiliary services Create new products and enhanced editions of current hardware.
Confidential
Value Proposition
Essentially, StratoSyncs value comes centrally from its products application abilities. Additionally, value comes from its means of bringing devices together. Currently, solutions that will allow a user to administer the applications that StratoSyncs products and patented technology will do are non-existent. The companys feature product, the uCast, acts as the central tool that allows StratoSync to make the seamless sew of all the auxiliary services possible. Its main feature allows a user to dock an iPod and deliver its content away from a users home to any supported electronic inside the infrastructure, where at release will consist of mobile phones and internet-connected computers. StratoSyncs patent will allow the company to keep its technology, style of delivery, and quality control unique and state-of-the-art. Currently, price efficient and (or) mobile-exclusive data storage solutions are non-existent. StratoSync integrates data storage solutions using uDisk, a mobile-exclusive data storage solution with price plans that allow efficiency for the most contrasting persons, and a method of access that you cannot put a price on and much more administrative than available solutions, deeming use of service logical. StratoSync provides the most price efficient and innovative internet music store structure available to anybody. Period. Utilizing music copyright laws, StratoSync will offer free uDisk access of purchased content along with a CD album or a novelty vinyl (if available) with paid shipping for the price of a single album- an unmatched level of value to any music shopper, mobile or stationary, and a level of integrity that has not been seen in the music business since before the dot-com era, as
Confidential
uDisk limits playback to its supported devices while simultaneously offering music that you can not only hear, but touch. Through uWallet, StratoSync will introduce a technology that will allow a user to do things with their mobile devices that they have never done before. It consolidates bank and credit cards information onto a encrypted uCast at home and sends the users information to their mobile phone at the time of transaction. Airplane itineraries and club memberships will also be supported by uWallet. The competitive advantage over future imitators is that the security and organization uWallet delivers can only be reproduced with an additional user-owned device, a feature that will be included free of charge in StratoSyncs feature product, the uCast, which has an estimated retail price of $99.90.
If you cant fly, run; if you cant run, walk; if you cant walk, crawl; but by all means, keep moving.
-Dr. Martin Luther King, Jr
Confidential
Business Models
Internal
Product Licensing. The selling of a product usually involves the transfer of usage rights to the buyer, in accordance with a terms of user agreement, with ownership rights remaining with the manufacturer. StratoSync plans to allocate an equal amount of resources and time on growing a license portfolio. To extend the level of convenience available to a user, licensing various StratoSync protocols for use by for other companies and their products in accordance with quality control and hardware requirements, will consequently raise the value of StratoSync, its products, and its services. The value proposition revolves around extending support of product abilities, and a revenue model based on market demand. Transaction Broker. A transaction broker generally provides a third party payment mechanism for buyers and sellers to settle a transaction. As a future external model, StratoSyncs objective role in this internal model is to create a market demand through customer and third-party company awareness. The value proposition of uWallet lies in its requirement of the retail product, uCast (increase of Sales), and a revenue model based on market awareness.
The following is a snapshot taken from the uCast packaging showing one avenue that StratoSync will use in creating a market demand for third-party application.
Confidential
_
External
Product Manufacturer. A product manufacturer generally manufactures one or more products and ships them amongst the retail distributors that will sell the product. StratoSync intends to manufacture and ship its feature product to major product distributors worldwide including electronic retail chains, membership warehouses, supercenters, and mobile phone retail centers, where the product may be purchased in-store or online through the respective vendor. StratoSync revolves its value proposition around the products price-efficiency, patented abilities, and unique delivery, with a revenue model based on customer growth. A direct-to-consumer distribution may not be necessary, as it will aid in maintaining product exclusivity through the respective vendors. Bit Merchant. A bit vendor, or bit merchant, deals strictly in digital products and services in its purest form and conducts both sales and distribution over the web. StratoSync will be a virtual merchant of both digital media and leaser of e-space through mobile phones, computers, and any other devices hosting StratoSyncs software or protocol. StratoSync bases its value proposition on its unique delivery of content and competitive pricing, with a revenue model generally based on user-quantity and user-growth.
Confidential
10
Products and Services

uCast
The uCast is the feature product of StratoSync. The device allows a user to dock their iPod and deliver the iPods content to a persons mobile phone, computer, or any other supported device in the infrastructure. The uCast also supports connectivity for other devices in a users home for information retrieval. Its other attractive feature is the Aura. It displays the current electricity rate on the uCast as a color-changing light in the front of the unit, by simply entering a zip code at setup. The Aura can host other fluctuating info including brokerage stock portfolios and weather forecasts as there are 3 lights in total. Some users may, and will, buy this product just for its aura.
Confidential
11
The iPod, as well as any other uSatellite supported devices connected to a wireless router, can be accessed by uCast. At the time of release, in-home supported devices will be limited to their docked iPod, a user will be able to access uCast through a downloaded software, and access clients will include mobile phones and internet connected computers. As time passes, the implementation of StratoSync protocols into other companies products of other companies will allow users to access multiple home-based devices on multiple remote devices, as a result, engaging a user in applications that were once not possible and turning the uCast into the central link of all their life-essential devices.
Packaging
MSRP $99.90 Estimated production cost including packaging: less than $30.
Confidential
12
uDisk
Through uCasts software, uSatellite (free to download via internet), StratoSync will offer a data storage solution, uDisk, which offers consumers an ultra-flexible price plan to store and access files on any device hosting the uSatellite software or built-in protocol, including mobile devices, computers, a vehicle dashboard- any device that chooses to host the uSatellite protocol. The uDisk service can be used for personal or business purposes alike as it will host a meticulous yet practical automatic organization system. The ultra-flexible price plan allows StratoSync to cater user requirements to the most contrasting of customers (i.e. casual use, aggressive use, small storage, large storage). Also, 1 GB will be free to everybody with the support of Googles AdWords.
7 / 1GB storage / no expiration $1 / 1GB storage / 30 days

$
Picture Source: Courtesy of Apple Inc and Microsoft Inc Edited by Simon George
Confidential
13
uSatellite Music Store

Wherever there is there is the music store. The free uSatellite software incorporates an innovative and highly competitive pricing model. All downloads purchased through uSatellite will be uploaded onto their uDisk account free of charge, allocating an independent space for purchased media without allocating purchased uDisk storage space. Utilizing a loophole in music copyright laws as a bonus, StratoSync will give any user the choice of two purchase options when purchasing all of the songs in an album: a) 9.99 for an album, a DRM-free (copy protection-free) download, and instant uDisk access, wherever it may be, or b) 12.99 for an album, a DRM (copy protected) download, instant uDisk access, and a choice of the physical CD or vinyl record (if available) plus $3 for shipping a worthy amount of value for any music lover. More information is available upon request.
99 songs. uDisk storage and access with purchase. Physical album for $15 shipped with uDisk support.
Drawing by Simon George
Confidential
14
uVid
On any device that the uSatellite protocol is built-in, there is uVid. Through uVid, StratoSync introduces a long-awaited video conferencing solution that makes video conferencing available, worldwide, regardless of the service provider or line type (hard or wireless). When a uSatellite user dials the digits of another person whose phone is uSatellite supported, the receiving end is prompted with a choice of answering the call in video, or in the traditional audio-only method, with the incoming callers live video feed displayed on the receiving end until the call is accepted (or denied, for that matter). Along with home and office-grade telephones, screen / camera attachments will be made by StratoSync for connecting between an existing phone and phone line. Included in supported and licensed devices. $ - TBD by service providers; airtime usage is likely.
Simulation.
\ Picture Source: Courtesy of Apple Inc, Samsung Electronics Inc, and Giles Keyte Photography
Edited by Simon George
Confidential
15
uWallet
The pattern continues: wherever there is a built-in uSatellite protocol, there is uWallet, an account management solution that allows a user securely store bank and credit card accounts onto their uCast at home with 128-bit encryption. In return, a user can use any uSatellite-supported public ATM to make cash withdrawals, and use their mobile devices in payment transactions such as check stands and other point-of-sale places. Additionally, uWallet can be used in the organization of funds and transactions, as most credit and bank account transactions may pend for days before it posts onto an account, leaving the user more susceptible to overdraft fees, a $17.1 billion revenue stream for banks and credit unions in 2006 according to the NY Times and a 15% annual cost for me, personally. Though cell phone manufacturers have yet to catch up with RFID enabled devices, the uCast comes shipped with uWallet compatibility.
$ or % - TBD, if any. Requires a uCast. Information is 128-bit encrypted on the uCast, which conveniently is already protected by a users 128-bit encrypted home internet connection.
Drawing by Simon George
Simulation.
Photo Source: Courtesy of ViVOtech Inc, Nokia Coporation Inc. Edited by Simon George
Confidential
16
uContacts
As all uSatellite supported phones will have uVid support, they will have uContacts support. uContacts simply saves all contacts on a uSatellite-supported phone to a uSatellite account. So when a user changes phones or carriers, their contacts will port along with them.
uDrive
Wherever the conveniences of uSatellite take you, uDrive extends them to a vehicle dashboard. Using a new type of Bluetooth technology, a user will be able to listen to a home-docked iPod over a vehicle sound system and use the steering wheel mounted buttons for controls. All that is required is a uSatellite-supported phone and a uDrive-supported vehicle is required.
You may have noticed the reoccurring theme thus far: all that StratoSync really does is bring things together. So, the iPod, the music store, uDisk, and uWallet are accessible through uSatellite, not to mention the connecting video-communication technology of uVid, and the convenience of uContacts and uDrive. What else can we do? Because our mission is to deliver lifes important and joyous information onto as many devices as possible (including vehicle dashboards), we figured we might as well add Pandora Radio to our business model. Pandora Radio is a radio experience unlike another. This free service is owned by, and utilizes the Music Genome Project, which analyzes music on over 400 characteristics. This allows a user to enter the name of song or artists they like and automatically begin playing music in that same style. If it plays a song a user doesnt like, the thumbs-down option immediately changes tracks and never plays that song again. This is not an official part of StratoSyncs business plan and for good reason. Though we see this happening, the details have not been worked with Pandora as they may already be working on a vehicle playback solution that will give commuters the opportunity to listen to a new form of a noncorporate radio. We dont think the team at Pandora will be against working together in extending this enjoyable service to vehicle dashboards and many other device that uSatellite supports.
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Success, failure, its all an illusion.
Its about getting out there, and do what you do best: make the world a better place.
-Elizabeth Berkley Actress, Dancer.
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III. Market Analysis
Market Analysis
Potential Market: The total number of people who could buy from a business. 3.3 billion mobile phone subscribers.
Addressable Market: The group of individuals in the potential market who are likely to have an interest in what a business has to offer. Due to the nature range and nature of StratoSyncs products and service, all 3.3 Billion of the potential market is addressable.
Target Market: The group, or groups, of individuals in the addressable market that is likely to buy from a business. The opportune individual would be subscriber to a home broadband internet service, a mobile phone service with broadband speeds (major providers), and an owner of an iPod, as these are the requirements to take full advantage of the uCast and all of StratoSyncs services.
Market Share: The individuals in the target market who can be expected to make a purchase from a business. At release, it is expected that only those knowing of the products abilities and ease of use, such as tech-savvied individuals or retail employees, will be expected to purchase the product. Once the nonbroadband addressable market is aware of the products capabilities and uses of the uCast (that is why we have Best Buy and Circuit City) but do not have the requirements, they may feel inspired to purchase the required subscriptions or make the necessary upgrades in order to take advantage of StratoSyncs products and services, and as a result, making them part of the target market.
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Mobile Phone Subscribers (in billions) 2003 2004 2005 2006 2007 1.14 1.45 2.14 2.70 3.30
One Year Change + 14.00 % + 27.19 % + 47.59 % + 26.17 % + 22.22 %
World Penetration (per capita) 18.10 % 22.75 % 33.18 % 41.38 % 49.68 %
Users with Broadband* (in millions) 99.6 180.8 285.7 422.3 699.8
One Year Change + 165.60 % + 81.53 % + 58.02 % + 47.81 % + 58.67 %
World Broadband Penetration (per capita) 1.57 % 2.84 % 4.43 % 6.47 % 9.91 %
References: FCC, Reuters, US Census Bureau, Wireless Intelligence *high-end 3G or 4G networks; target market for StratoSync Supplemental Information: Even with a high penetration rate, the numbers show stability in user growth. With 4G technologies being launched by Verizon, Sprint and Google this year1, the growth in broadband mobile subscriptions should be piercingly substantial.
iPod Units* (in Millions) 2003 2004 2005 2006 2007 2.046 10.309 42.269 88.701 141.386
One Year Change + 335.32 % + 403.86 % + 310.02 % + 109.85 % + 59.37 %
World Penetration (per capita) 2.10 % 2.13 % 2.29 % 2.95 % 4.31%
US Penetration (per capita) n/a n/a 11%** 20%** 28%** **WSJ Online
References: Apple Inc, US Census Bureau *target market for StratoSync Inc
Supplemental Information: The statistics show the iPods growth is stable. Richard Siklos, editor-at-large for CNN, reports that Apple holds more than a 70% market share for portable music players2.
1 2
source: the companies. http://money.cnn.com/2007/10/08/technology/ipod_siklos.fortune/index.htm
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Internet Users (in millions) 2003 2004 2005 2006 2007 723 850 975 1,120 1,319
One Year Change + 16.61 % + 17.57 % + 14.71 % + 14.87 % + 15.98 %
World Penetration (per capita) 11.48 % 13.34 % 15.12 % 17.16 % 19.68 %
Users with Broadband* (in millions) 101 167 233 295 305
One Year Change n/a + 65.35 % + 39.52 % + 26.01 % + 13.56 %
World Broadband Penetration (per capita) 1.60 % 2.62 % 3.61 % 4.52 % 5.07 %
References: Morgan Stanley Research, US Census Bureau *target market for Stratosync Inc Graph Supplement Broadband internet makes up for 72% of total internet connections in the United States, with 53% of all US households having a broadband internet connection3. According to the same source, as of June 2007, 68% of all households with annual incomes over $50K have broadband and 39% of all households with annual incomes under $50K have broadband. Internet providers are becoming more competitive, and with services starting at $14.99 per month. As more products are requiring a broadband internet connection and as broadband becomes more affordable the penetration rate should increase appropriately. According to research firm Neilson, US broadband penetration was 87.49% in January 2008, and is expected to break 90% by mid-2008.
StratoSync Fact Though some variables may influence a company to tailor a product service, StratoSyncs target market is not limited to sex, gender, ethnicity or occupation as these products and services are universal and have various pricing options.
Target Age 13-75 Target Total Household Income 30K to Infinity
Online News network: Giga Omni Media. http://gigaom.com/2007/06/07/53-of-us-homes-have-broadband
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Pricing Strategy
uCast The retail estimate price is $99.90 for the device. (Cost-Plus Pricing = over 300%) There will be no price skimming at release or in the future. StratoSyncs strategy is to have its pricing to be as distinct as the products themselves. Future plans to release a premium edition with wireless connectivity and connectivity for USB storage device. (subject to change)
uSatellite Music Store Innovative pricing- 99 songs. CD or Vinyl for $15 shipped with uDisk playback. In the future, sales of other media will include movies and TV shows.
uDisk Competitive pricing: $1 / GB / 30 days or $7 / GB /no expiration. As mentioned before, StratoSyncs strategy is to have price plans for all its subsidiaries as unique and distinct as the products themselves.
uWallet Price is TBD, if any, as it requires the purchase of a uCast.
Free uSatellite software Penetration pricing: An easy-interfaced software is available to download for all broadband mobile users. The software will give a user access to the iPod when docked on the uCast as well as uDisk, uWallet, and the music store. For a user to access any one service, all services will be available for a users disposal. For example, in the case of a user who does not own a uCast, when accessing the uDisk service from the main menu, the main menu will be visible as the following: No iPod, Music Store, uDisk, uWallet, Settings, and Help. In the case the user is a uCast owner and had named their iPod TedPod when they first bought it, the main menu would be visible as the following: TedPod, Music Store, uDisk, uWallet, Settings, and Help. This easy setup heightens the level of convenience available to a user, and equally important, also makes it more likely for a customer of any one service to become a customer of another. In a sense, uSatellite becomes like an iTunes to mobile users.
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Promotion Plan
The product itself: Though its been said, many times by many companies, the packaging of the uCast, by itself, will provide the most awareness to Potential Customers And 3rd party Companies.
How the package is presented, specifically an iPod dock with a music symbol, which is also the company logo, and an empty outline of the iPod stating Your iPod Here should spark the curious Toms and Tammys to pick up and read the package, and as a result, finding out the products capabilities. What is presented on the package, specifically about the products future capabilities, will generate a degree of market demand for these proposed abilities including in-car dashboard playback / control and built-in phone playback. This will raise interest from the 3rd party companies to integrate support of the product to make these applications possible to their customers and future consumers. TV and media advertising would be selective as their sole objective would be for buzz, or customer awareness.
Distribution Plan
uSatellite software (free to download by all mobile phone users) Electronic retail distributors Supercenters (i.e., Wal-Mart) Major mobile phone providers
o This is significant because most mobile phone providers do not carry products other than their mobile phones and accessories, hence a product of this sort would be very distinct and stand out significantly.
Membership warehouses (targeted 5USD decrease in wholesale cost; 10USD in retail)
Demand Forecast
Estimated to sell over 500Thousand uCast units within the first year, based in comparison to Sling Medias product, price, sales figures, and the nature of the uCast, as well as other factors. Estimated to sell a minimum of 1Million songs within the first year of service release, due greatly to the innovative pricing structure (uDisk access + Album). Due to a flexible price plan that is suitable for business and consumer users alike, the uDisk service is expected to reach an exponential growth (no estimate in sales). A constant growth in all StratoSync services is expected due to the free software and the distinct pricing strategy of having the purchase of one product support the purchase of another.
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Confidential
StratoSync, Inc. Business Plan
IV. Competitor Analysis
Competitor Analysis
StratoSync doesnt have an absolute monopoly on life essential products and services. The level of competition is revealed in this section.
Direct Competitors
a) There are no direct competitors for 1) a device that enables a user to listen to their docked iPod over a internet connected mobile device or computer, 2) a data storage solution exclusive for mobile use, or 3) a point-of-transaction solution exclusive for mobile devices. b) Music stores available through major mobile phone providers: Most mobile service providers offer mobile phone playback and one PC download for purchased content. 1) US: Sprint / Nextel, Verizon, AT&T 2) Worldwide: China Mobile, China Unicom, Telefnica Mviles, Orange, and TeleNor . StratoSync Advantage Using an organized, clean, and easy-to-use software, user content is automatically uploaded to uDisk, creating user-access from any of their electronic devices inside the infrastructure, with a choice of PC download or a physical album.
In order to penetrate this market, StratoSync proposed a business model that embeds itself within the carriers own music store. In doing so, the carrier receives the greater portion of referred sales profit (approximately 55%) by giving the shopper the second option of purchasing the physical CD
with free uDisk support for 14.99USD with free shipping (retail for all of the music industry is 12.99USD for new titles and 3USD to cover shipping margin). This model leaves the carriers music store intact, while providing a non-labored profit and giving shoppers more options. As for the carriers independent business model and music store, uDisk support can be included for a nominal contractual fee of approximately 5% of direct profits, a fee mostly to cover operational costs, but more importantly, for building a relationship based on longevity as mobile carriers will play a major role in manufacturing uSatellite-supported handsets and extending uDrive support to vehicles.
Indirect Competitors
a) Orb Networks: This free service allows a users computer stored media on to be played on a mobile phone, PDA or another personal computer with an Internet connection. The service requires viewing of advertisements and a users home computer to be powered on and connected to the internet at all times. b) Apple Inc: Users can currently download songs and other mediums through an internetconnected computer or an iPhone using a WiFi connection. The iTunes store accounts for more than 70% of music downloads worldwide. c) Amazon.com: In the beginning of 2008, Amazon.com became the first major distributor of non-protected MP3 songs and albums, and remains the leader in distribution of this media. d) Current data storage service providers: Users can upload documents, media, and other files to these services and access them at a later time from another computer. Some will allow a user to edit files online. 1) Omnidrive.com, Box.net, Xdrive/AOL, Mozy, and IBackup StratoSync Advantage None carry built-in support for mobile devices, nor the convenient infrastructure that StratoSync will carry around its patented product.
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Future Competitors
a) Sling Media Inc: Though Sling Media took the TV route with its EchoStar acquisition in 2007, they may feel inspired to add another avenue of revenue as a result of StratoSyncs models. b) Apple Inc: It is my personal prediction that is only a matter of time before Apple Inc implements exclusive support of its music store on mobile devices, and might improve on an infrastructure to download directly to large-capacity devices, such as the iPhone or iPod. StratoSync Advantage No storage device can meet the non-metered comfort of uDisk, with purchases from the uSatellite Music Store. c) Google Inc: According to a Wall Street Journal article, Google plans to offer a free and paid service that allows files to be easily searchable through a search box and accessible directly from Windows this year. StratoSync Advantage StratoSync plans to extend file-access even further by taking them to mobile devices and making them applicable real life situations. In rhetoric to Google, StratoSync will implement an automated organization folder system that directs uDisk files to behave like other files on your computer. A free uSatellite player will be available as a web browser add-on.
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d) Current data storage service providers: These providers may implement dedicated mobile support and solutions as a response to StratoSyncs data storage service. 1) Omnidrive.com, Box.net, Xdrive/AOL, Mozy, and IBackup
StratoSync Fact The patents that StratoSync will hold will play a large role in what these companies will be allowed to implement and will not be allowed to implement, and incoherently, the main reason for an expedited capitalization of StratoSync. If synergy is desired by an external company, license purchases are available with hardware requirement and quality control guidelines.
Competitive Strategies
Cost Leader: StratoSync will be a low-cost producer of exclusive goods at low prices. A Different Company: StratoSync will use its product abilities, ease of application, and image to distinguish itself in the market place. Innovator: New ways of commerce have been introduced through StratoSync that will influence the nature of multiple industries. Seed of Opportunity: As it is its intention, StratoSync puts itself in a position with its products and services that will allow birth of other products and services. Ally: Third-party expansion will increase market value for StratoSync and its allied companies. Partnerships with prospective production and distribution companies will aid StratoSync in being price effective and time efficient. Clock-Basher: StratoSync will utilize users time in ways that other competitors arent, utilizing user-friendly navigation, on-demand customer service, and efficient order-todelivery strategies.
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V. Operations
Operations
The inputs, processes, procedures, and activities required to create what the business will sell.
Business Location
As an IT company, the central operating facility will be based out of the San Francisco Bay Area in California, also known as Silicon Valley. This includes storage of servers, IT support technicians, and a call center. Assembly and distribution depots are located externally as part of an efficient order-to-delivery strategy. More information is available upon request.
Operating Facilities and Equipment

The operation facility consists of a 2000-3000 ft2 commercial space, office furniture suitable for nine, 9 computers, 2 printers, an internal network and communication system, a central customer storage server and an entry-level vehicle for company use. More information is available upon request.
Production and Operating Procedures

The day-to-day operating procedure at StratoSync will be a continuous and evolving customer service and product support. This includes keeping retailers stocked with product, continuous support to new devices, and troubleshooting customers in need of assistance. More information is available upon request.
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V. Operations
Purchasing Procedures
Raw materials and components will be purchased from multiple manufacturers and sent to the assembler. The product assembler also packages, stores, and ships the finished product from their distribution depot to e retail distribution warehouses worldwide as part of an evolved order-todelivery strategy, where as being cost effective and having a reduced cycle time is the objective.
Inventory Management Procedures

StratoSync will receive daily updates from the assembler / warehouse depot on the status of in-progress and completed inventory ready for shipment. StratoSync will also receive inventory updates on a daily basis from retail distribution warehouses worldwide. Product will be shipped accordingly. More information is available upon request.
Quality Control Procedures

Quality control requirements and procedures will be set in manufacturing and shipping to ensure product quality and consistency. When licensing protocols, such as uVid for video communication, or built-in support of uSatellite for allowing third-parties companies to communicate the uCast, hardware requirements and quality control guidelines will also be set. More information is available upon request.
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V. Operations
Customer Service Procedures

Customer service and experience will be the elements that StratoSync will give much of its resources and attention to. A users mobile phone will be the opportune vessel for product support. Announcements and polls will appear on the startup of the free downloaded software to help determine our customers experience and expectations. In addition to aiding in service enhancement, a comment box will also be readily available for the opinioned customer. When a customer opens their uCast package, they are greeted with a petite booklet labeled Read Me. This includes installation instructions and other useful information. Located inside the booklets sleeve is a business card that lists the users unique product code and the companys web directory including Product Support. As the user enters the first part of installation on their mobile device, they are prompted with a choice of guidance in either video or text. To minimize or eliminate waiting time for a user to receive a uCast, the alternate element that StratoSync will allocate its resources and attention to will be to keep retail distribution warehouses appropriately stocked. To measure and guarantee efficiency of customer service operations, StratoSync will utilize communication through the software, as previously mentioned, as well as hold a seasonal meeting for customer relations. RSVP will include customers, programmers and field related personnel. StratoSync is helping customers serve themselves by using the online avenue as the suggested method of support, with phone contact exposed as a last resort. A user can access the Product Support web directory either on the internet or by scrolling down to the Help option on the main menu of the uSatellite software, as almost all inquiries will be due to lack of simple product or service knowledge. The personal and unique style in which StratoSyncs delivers customer service will give it a competitive advantage over future imitators.
More information is available upon request.
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V. Operations
Organization Structure
StratoSync will be formed as an elected corporation with a number of company shares listed in the Articles of Incorporation. An appropriate number of shares will be distributed to the capital investing individual(s) or company and to the founder of StratoSync, Simon George.
Management Plan
As founder, Simon George will play a central role in the establishment and operation of StratoSync. Responsibilities include the orchestration of inventory placement, troubleshooting technical issues, and active creation of company direction. The companys management structure shall remain elastic for the first year of operation. Simon George will be replaced by a qualified CEO as StratoSync gains momentum. More information is available upon request.
Internal Salaries
Embryonic Structure. Year 1 of Operation.
Chief Executive Officer 64K, plus company benefits IT Technicians (accumulative of 3 full-time technicians or 120 hours/week) 58K, plus company benefits Lead Customer Service Agent (full-time) 34K, plus company benefits Customer Service Agents (accumulative of 7 full-time agents or 280 hours/week) 31K, plus company benefits Administration (full-time) 29K, plus company benefits
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V. Operations
Respective Candidates
CEO: a leader with well-rounded experience, an IT background, with an intricate knowledge of business management and the financial management. IT Tech/Server Manager: a leading, well rounded IT technician for server management with intricate knowledge of website management, and program writing. IT Tech/Lead Programmer: a leading, well rounded IT technician for writing programs with intricate knowledge of server management, and website management. IT Tech/Web Master: a leading, well rounded IT technician for website management with intricate knowledge of programming and server management. Lead Customer Service Agent: a well spoken and friendly customer service representative, for customer troubleshooting and technical support, and to lead other agents. Customer Service Agents: well spoken and friendly customer service representatives for customer troubleshooting and technical support. Raw Material and Component Manufacturers: house the required material(s) and component(s), in abundance, and at low price. Product Manufacturer: A price-efficient assembler that is accompanied by a distribution depot and accommodates technical assembly requirements.
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V. Operations
Development
Product Development
Partnering development: A development firm will be hired to collaborate in building the feature product alongside Simon George. More information is available upon request.
Product Firmware Development

Partnering development: A firm will develop the hardwares firmware (the software on the uCast hardware) with collaboration of StratoSync employees. Management and further maintenance of the firmware will be carried out internally. More information is available upon request.
User Software Development

Partnering development: StratoSync employees will work alongside Simon George and a hired firm during development of the user software. Further development will be carried out internally. More information is available upon request.
Website Development
Partnering development: A web firm will develop and design websites during the development phase. Maintenance and further maintenance will be carried out internally. More information is available upon request.
Domain Names
StratoSync.com uSatellite.com uCast.com uDisk.com uWallet.com uVid.com uDrive.com uContacts.com
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VI. Financial Statements
Financial Statements
The resources and flows that will be required to carry out the business plan.
Total Capital Required: 3,126,771 USD

Stratosync, Inc. Cash Flow Statement Year 1 INFLOW Gross Receipts on Sales Dividend and Interest Income Invested Capital (est.) TOTAL FUNDS IN OUTFLOW Cost of Goods Produced Sales, General, and Administration 232,213 Buildings and Equipment 27,600 Other Expenses 20,000 Corporate Taxes TOTAL FUNDS OUT $279,813 Net Cash Flow Plus: Beginning Cash Balance Ending Cash Balance -$279,813 -$279,813 0 53,283 4,500 63,000 $120,783 ($120,783) -279,813 -$400,596 0 55,008 4,500 103,000 0 $162,508 ($162,508) -400,596 -$563,104 550,000 127,020 78,000 129,000 0 $884,020 ($884,020) -563,104 -$1,447,124
1st Quarter TBD $0
2nd Quarter TBD $0
3rd Quarter 0 TBD 0 $0
4th Quarter 0 TBD 0 $0
Total Year 1
$0
$1,447,124 -$1,447,124
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Stratosync, Inc. Cash Flow Statement Year 2 INFLOW Gross Receipts on Sales Dividend and Interest Income Invested Capital TOTAL FUNDS IN OUTFLOW
1st Quarter $2,625,000 TBD $ 2,625,000
2nd Quarter
3rd Quarter
4th Quarter
Total Year 2
$15,750,000 $15,750,000 $35,730,000 TBD TBD TBD $15,750,000 $ 15,750,000 $ 35,730,000 $
69,855,000
Cost of Goods Produced $4,075,000 $5,625,000 Sales, General, and Administration $149,647 $352,835 Buildings and Equipment 45,000 0 Other Expenses $35,000 $0 Corporate Taxes TOTAL FUNDS OUT $ 4,304,647 $ 5,977,835 $ Net Cash Flow Plus: Beginning Cash Balance Ending Cash Balance
$5,625,000 $280,042 162,500 $0
$10,950,000 $528,096 0 $100,000 27,928,120 41,926,880
6,067,542 $ 11,578,096 $
$ (1,679,647) $ 9,772,165 $ 9,682,458 $ 24,151,904 $ 673,184 (1,006,463) 8,765,702 18,448,160 $ (1,006,463) $ 8,765,702 $ 18,448,160 $ 42,600,064
At first glance it may be difficult to understand how the venture capital can generate such large numbers in short time. This is an exclusive result of the turnaround procedure, wherein the net profits are recycled into the expense accounts of the component manufactures, assembler and distribution warehouse, reproducing a multiplied number of product in the first months as a result.
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Stratosync, Inc Income and Expense Statement Year 1 INCOME Gross Receipts on Sales uCast uDrive uSatellite Music Store Other Products and Services Dividend and Interest Income TOTAL INCOME EXPENSES Cost of Goods Raw materials and supplies Facilities Total Cost of Goods General Operation & Admin Salaries and wages Taxes and 'load' @ 15% Rent and lease expenses Utilities Insurance (business and health) Office Furniture & Supplies Advertising Vehicle expenses Accounting and Legal services Total Sales, General, & Admin Buildings and Equipment Building renovations Office Equipment Computers Vehicles Total Buildings & Equip Other Expenses New product development User Software Development Web Acquisition & Development Other legal costs Total Other Expenses TOTAL OPERATING EXPENSES Operating Profit Before Taxes Less: corporate taxes @ 40% NET PROFIT 32,664 4,899 0 0 0 7,400 0 1,650 185,600 $232,213 0 2,000 10,000 15,600 $27,600 20,000 0 0 $20,000 $279,813 ($279,813) (279,813) 0 0 $0 41,247 6,186 0 0 0 3,600 0 1,650 600 $53,283 0 4,500 0 0 $4,500 53,000 10,000 0 $63,000 $120,783 ($120,783) (120,783) 0 0 $0 42,747 6,411 0 0 0 3,600 0 1,650 600 $55,008 0 4,500 0 0 $4,500 73,000 5,000 25,000 $103,000 $162,508 ($162,508) (162,508) Q1 $0 Q2 $0 Q3 0 0 $0
Q4 0 0 $0
Year 1 Total 0 0 $0
375,000 175,000 $550,000 54,496 8,174 10,500 2,000 3,800 32,400 0 2,450 13,200 $127,020 18,000 25,500 34,500 0 $78,000 104,000 10,000 15,000 $129,000 $884,020 ($884,020) (884,020)
375,000 175,000 $550,000 171,154 25,670 10,500 2,000 3,800 47,000 TBD 7,400 200,000 $467,524 18,000 36,500 44,500 15,600 $114,600 250,000 25,000 40,000 $315,000 $1,447,124 ($1,447,124) (1,447,124)
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Stratosync, Inc Income and Expense Statement Year 2 INCOME Gross Receipts on Sales uCast uDisk uSatelite Music Store Other Products and Services Dividend and Interest Income TOTAL INCOME EXPENSES Cost of Goods Raw materials and supplies Facilities Total Cost of Goods General Operation & Admin Salaries and wages Taxes and 'load' @ 15% Rent and lease expenses Utilities Insurance (bus & health) Office Furniture & Supplies Advertising Vehicle expenses Accounting and Legal services Total Sales, General, & Admin Buildings and Equipment Building renovations Office Equipment & Computers Vehicles Total Buildings & Equip Other Expenses New product development User Software Development Web Acquisition & Development Other legal costs Total Other Expenses 1,125,000 2,950,000 $4,075,000 83,997 12,600 15,000 8,000 8,900 1,650 19,500 $149,647 1,125,000 4,500,000 $5,625,000 160,248 24,037 15,000 12,000 11,100 1,650 128,800 $352,835 1,125,000 4,500,000 $5,625,000 180,254 27,038 15,000 15,000 12,300 1,650 28,800 $280,042 Q1 2,475,000 150,000 Q2 14,850,000 900,000 Q3 14,850,000 900,000
Q4 26,730,000 2,000,000 7,000,000 $35,730,000
Year 2 Total 58,905,000 3,950,000 7,000,000 0 0 $69,855,000
$2,625,000 $15,750,000 $15,750,000
2,100,000 8,850,000 $10,950,000 235,257 35,289 15,000 18,600 17,100 1,650 205,200 $528,096
5,475,000 20,800,000 $26,275,000 659,756 98,964 60,000 53,600 49,400 0 6,600 382,300 $1,310,620
45,000 $45,000 35,000 $35,000
0 $0 0 $0 $5,977,835 $9,772,165 $3,908,866 $5,863,299
162,500 0 $162,500 0 0 0 0 $0 $6,067,542 $9,682,458 $3,872,983 $5,809,475
0 0 $0 100,000 0 0 0 $100,000 $11,578,096 $24,151,904 $9,660,762 $14,491,142
207,500 0 $207,500 135,000 0 0 0 $135,000 $27,928,120 $41,926,880 $16,770,752 $25,156,128
TOTAL OPERATING EXPENSES $4,304,647 Operating Profit Before Taxes Less: corporate taxes @ 40% NET PROFIT -1,679,647 (1,679,647)
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Stratosync, Inc Income and Expense Statement Year 1 - Year 3 INCOME Gross Receipts on Sales uCast uDisk uSatellite Music Store Other Products and Services Dividend and Interest Income TOTAL INCOME EXPENSES Cost of Goods Raw materials and supplies Facilities Total Cost of Goods General Operation and Administration Salaries and wages (including taxes) Taxes and 'load' @ 15% Rent and lease expenses Utilities Insurance (business and health) Web site hosting (Internal) Office Furniture & Supplies Vehicle expenses Accounting and Legal services Total Sales, General, & Admin Buildings and Equipment Building renovations Office Equipment Computers Vehicles Total Buildings and Equipment Other Expenses New product development Web site acquisition and development Other legal costs (including patents and incorporation) Total Other Expenses TOTAL OPERATING EXPENSES Operating Profit Before Taxes Less: corporate taxes @ 40% NET PROFIT $375,000 $175,000 $550,000 $171,154 $25,670 $10,500 $2,000 $3,800 $0 $47,000 $7,400 $200,000 $467,524 $18,000 $36,500 $44,500 $15,600 $114,600 $250,000 $25,000 $15,000 $290,000 $1,422,124 ($1,447,124) (1,447,124) $5,475,000 $20,800,000 $26,275,000 $659,756 $98,964 $60,000 $53,600 $49,400 $0 $0 $6,600 $382,300 $1,310,620 $0 $207,500 $0 $0 $207,500 $135,000 $0 $0 $135,000 $27,928,120 $41,926,880 $16,770,752 $25,156,128
Year 1 End
Year 2 End
Year 3 End
$0 $0 $0 $0 $0 $0
$58,905,000 $3,950,000 $7,000,000 $0 $0 $69,855,000
$87,500,000 $15,200,000 $45,500,000 $40,000,000 $0 $188,200,000
$4,995,000 $27,625,000 $32,620,000 $1,142,688 $171,403 $60,000 $145,500 $119,200 $0 $0 $6,000 $79,200 $1,723,991 $0 272,500 $0 46,040 $318,540 $0 $0 $68,000 $68,000 $34,730,531 $153,469,469 $61,387,788 $92,081,681
Confidential
38
Ratios
Beginning with Year Two.
Return On Investment: net profit to total assets
1000% or 10:1
Return On Equity: net profit to equity (3-year average)
145% or 14:10
Net Profit Margin: net profit to gross revenue on sales
60.6% or 6:10
Debt To Equity: long-term liabilities to owners equity
0% or 0:0
Executive Summary
Executive Summary
The inspiration to start StratoSync came in the form of a NYC subway ride in June 2007. Since then, what was once an idea for a product has turned into a money making infrastructure of products and services to make peoples lives easier- an iTunes for mobile phones- a Google for mobile users. StratoSyncs objective is to make life more enjoyable by conveniently bringing all desired information under the sky directly to a user using innovative technology. StratoSync expects to accomplish this mission by using its highlight product, the uCast. All the products and services that StratoSync will deliver will revolve around this product. Its main feature enables user-access to their home-docked iPod on any supported electronic on the infrastructure, where at the time of release includes mobile phones and internet-connected computers. Future-supported electronics include vehicle dashboards, television sets, and many other mediums. Also in the future, those users who wish to listen to artists they do not have, a music store will be available to their disposal, working in conjunction with StratoSyncs mobile data storage solution, uDrive. The majority of company revenue will come from product manufacturing and distribution to various retailers including major electronic retailers and mobile phone providers. For the first year, StratoSync will not incorporate these extra services, as concentrating on market penetration is a key objective. Another reason for this decision is not to compete with mobile phone providers music services, as they will play a key element in product distribution and market demand. To expand connectivity to other devices, and consequently enhancing the level of convenience available to a user, StratoSync will take up product licensing as an internal business model. When StratoSync licenses support to third-party companies and their respective products so they can communicate with the uCast, hardware requirements and quality control guidelines will be in place.
Confidential
40
Executive Summary
The target market for StratoSync and its products and services include mobile phone subscribers with broadband network speeds, home broadband internet subscribers, and owners of the iPod. Currently there more than 500 million broadband mobile subscribers, more than 300 million broadband internet subscribers, and over 120 million iPod owners. StratoSync is at a slight disadvantage as far as selling media over a mobile medium. Apple Inc has over 70% market share of digital music downloads and most major providers of mobile phone service have music stores built in. In response, StratoSyncs competitive advantage includes an innovative pricing strategy and a patented method of delivery that revolves around its free software. Essentially, the value of StratoSync comes from its product abilities, specifically remote access of the iPod. Noteworthy, bringing a mobile-exclusive data storage service to the market will help gain reputability to StratoSyncs mission statement and open doors for other companies. Also the introduction of mobile payment transaction solution, uWallet, will help raise the value of StratoSync on a customer level as well as on a market level. The goals of the company include the following: assembly of a production-ready prototype of the uCast, submission of a non-provisional patent through a legal firm, establishing partnerships with major retailers worldwide, and establishing an operation facility with a customer support call center. Secondary goals include growing the license portfolio that extends uCast capabilities to other devices, implementing the auxiliary services into the company infrastructure, and create new products and services. The purpose of this plan is to propose the capitalization of StratoSync Inc and seek funding for the development of its feature product, the uCast.
Required Capital: 3.12 Million USD Recommended Capital: 3.12 to 5 Million USD
for additional padding and selective marketing.
Confidential
41

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Green Dot Delivery, Inc Copyright 2011. All Rights Reserved.

PO BOX 2236, Venice, CA 90291 (310) 591-9707 GreenDotDelivery@Gmail.com

Competition & Marketplace

Begin Date: Aug. 1, 2011

First Year Net Prot

The Marketing Plan

Green Dot Helper App:

Primary Target Market:

Secondary Target Markets:

What an order looks like on center stage:

Green Dot HELPER

Indirect Competitors: (source: Yelp!)

Current Coverage - Westside of LA

Future Coverage - Southern California Beach Cities

Green Dot SF Bay Coverage

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StratoSync, Inc Business Plan

III. Market Analysis ............................................................................................................................... 18

IV. Competitor Analysis ........................................................................................................................ 24

StratoSync, Inc 2008

StratoSync, Inc Business Plan

VI. Financial Statements ....................................................................................................................... 34

StratoSync, Inc 2008

StratoSync, Inc Business Plan

StratoSync, Inc 2008

StratoSync, Inc Business Plan

1 http://www.morganstanley.com/views/perspectives/files/Global_Internet_Trends_121906_FINAL.pdf 2 http://investing.reuters.co.uk/news/articleinvesting.aspx?type=media&storyID=nL29172095 3 http://www.unstrung.com/document.asp?doc_id=99866&WT.svl=wire1_1

StratoSync, Inc 2008

StratoSync, Inc Business Plan

StratoSync, Inc 2008

StratoSync, Inc Business Plan

Rock & Roll.

The motto behind my drive.

StratoSync, Inc 2008

StratoSync, Inc Business Plan

II. Business Concept

StratoSync, Inc 2008

StratoSync, Inc Business Plan

II. Business Concept

StratoSync, Inc 2008

StratoSync, Inc Business Plan

II. Business Concept

StratoSync, Inc 2008

StratoSync, Inc Business Plan

II. Business Concept

StratoSync, Inc 2008

StratoSync, Inc Business Plan

II. Business Concept

StratoSync, Inc 2008

StratoSync, Inc Business Plan

II. Business Concept

StratoSync, Inc 2008

StratoSync, Inc Business Plan

II. Business Concept

Products and Services

StratoSync, Inc 2008

StratoSync, Inc Business Plan

II. Business Concept

StratoSync, Inc 2008

StratoSync, Inc Business Plan