Children’s Website Business Plan

Introduction

InteliChild.com provides bright children a fun place to interact with educators and others on the Internet. It generates first traffic and valuation for investors. Then it eventually produces commerce and profits. It is safe for kids to play, parents to buy from schools, and it provides fair work conditions for employees.

The InteliChild.com e-commerce project is the natural evolution for the InteliChild.com Internet presence. The site will market and sell selected toys, books, and software products. It will also create Web products and Web apps that will increase market share and name recognition and maximize efficiency.

The Company

InteliChild.com currently exists as a start-up with four full-time employees. The company was incorporated as a California C corporation owned by its principal founders, at 25% ownership each. (Name Omitted. 50% was purchased by Capital Partners. The company has only one office. The initial website is at www.citruscoolkids.com.

The in-house knowledge we have built is our key competitive advantage. Our competitor spends five-ten times as much money outsourcing to large companies to perform services that we provide in-house. The same applies to InteliChild.com. We already have the SQL(tm), ColdFusion, and programming expertise. Now we will add the Flash(tm).

Products and Services

InteliChild will be offering a steadily increasing mix of three lines of products:

• Toys and Games – carefully chosen toys and games that appeals to the target audience, their parents, and educators.
• Books: there should be a selection of books that appeal specifically to the parents and educators of the target market, so that these interested adults can go to this site and order books about their children. Additionally, there are books available to order by the kids and for them to read.
• is carefully selected software to appeal specifically to the target market.

The Internet is constantly reinventing itself, sometimes even every three months. Our strategy for the future is to have enough flexibility to adapt new technologies and to respond to rapid changes.

The Market

The InteliChild.com market has been expanding exponentially with the advances of technology in the teaching sectors and the acceptance of technology as a teaching aid. We need to get approval from the school community, which includes teachers, PTAs, and special education programs, in order to enter the market.

These four areas are our primary target markets

1. The kids.
2. Parents.
3. Higher education institutions for children
4. Self-teaching families.

While we have plans to expand into international territory, our initial launch will target our most important market – the American upper class. We know that many of our clients own BMW’s and are highly discerning. They also spend a lot on their children, as they understand the technology we have developed. High-quality design is what they love.

Financial Considerations

Our start-up costs are high because of our commitment to dominate the Internet market place.

The Break-even Analyse indicates that we will reach steady-state breakdown in the first year.

Based on increasing website traffic, the sales forecast assumes that sales will increase per session. Sales are projected to rise exponentially from Year 1 to Year 3. The forecast obviously depends on traffic increase. While we increase traffic and build our long-term position, we expect to lose money for at most three years.

Objectives

• Traffic as measured by unique user sessions: 100,000 unique sessions in June, year 1; 450,000 December, year 1; 3.5 Million in Year 2; 5 Million in Year 3.
• The measure of sell-through in dollars per unique visitor: A high of $0.58 in December 1st; an increase to $0.83 in 2nd; and $0.92 3rd.
• Valuation, as measured in ability to bring in additional investment at economically feasible valuations. Attracting investors is key.

This year’s investment is moderate, with an additional large infusion in Year 2. The valuation performance of the company yields attractive internal rates of return (IRR). The financial section indicates an IRR higher than 100% for investors. The IRR for seed is larger, while the IRR for second-round investments decreases slightly.

Mission

InteliChild.com offers bright children an entertaining place to interact with each other, the Web, educators, and the world in general. It generates traffic first and then valuations for investors. Then, commerce and profits follow. It’s a safe place for children to play, for parents to buy school supplies, and for employees to work in a fair and creative environment.

Keys to Success

1. We need to keep our customers. Websites must be easy to navigate and easily viewed. The ultimate goal is user satisfaction.
2. The project will succeed if InteliChild.com can generate traffic, and turn these user sessions into revenue through the commerce portal.
3. InteliChild isn’t ready to hire more people so the sales process must be simple to manage and flexible enough.
4. The ecommerce project should help InteliChild.com to be a technology leader by bringing in new traffic and returning traffic.